3-06_presentation_the future of quality-final

The Future of Quality: What's Next After Six Sigma?

Jessica Jenness Isa Nahmens

March 23, 2006

Agenda

• Motivation• Evolution of Quality, “survival of the fittest”

– SPC– Reengineering– TQM– Six Sigma

• What’s Next after Six Sigma • Educational Findings• Future of the Quality Profession

Motivation

• January 2006 issue of Quality Progress. After Six Sigma- What's next? By Søren Bisgaard and Jeroen De Mast.

• To hope quality management will go away is wishful thinking.

• The next step for quality professionals should be to broaden the scope to systematic innovation. – “We predict a scientific approach to problem solving will remain

the foundation of our profession” (Bisgaard & De Mast 2006)

Evolution of Quality Profession• Evolution relies on two fundamental mechanisms:

1. Variation (or change)2. The selection of the most favorable variant by the principle of

survival of the fittest.

• Current Six Sigma approach- incorporates a wide variety of ideas that originated from previous incarnations of quality management.

Some quality principles remain fit!!(principal of survival of the fittest)

Evolution of Quality

StatisticalQualityControl Total

QualityManagement

Six Sigma

BusinessProcess

Reengineering

FordProduction

System

ToyotaProduction

SystemLean

LeanSix Sigma

MRP,MRP II

Supply Chain

ERPCRM

Quality:

Productivity:

Information Technology:

JIT

LeanSix Sigma

Supply Chain

Source: Furterer 2004 (ASQ CQSDI)

Evolution of Quality

StatisticalQualityControl Total

QualityManagement

Six Sigma

BusinessProcess

Reengineering

FordProduction

System

ToyotaProduction

SystemLean

LeanSix Sigma

MRP,MRP II

Supply Chain

ERPCRM

Quality:

Productivity:

Information Technology:

JIT

LeanSix Sigma

Supply Chain

Source: Furterer 2004 (ASQ CQSDI)

Statistical Process Control• A methodology for monitoring a process to identify

special causes of variation and signal the need to take corrective action when appropriate.

• Seven tools:1. Control Charts. 2. Histogram. 3. Pareto Diagram.4. Cause-Effect Diagram.5. Check Sheets.6. Process Flow Diagram. 7. Scatter Diagram.

• Focus: quality control

SPC & Six Sigma

• Most Fitted Elements:– SPC tools- provided the foundation for understanding

and reducing variability through application of statistical theories.

• Least Fitted Elements:– Focus on quality control only.– Quality Control departments- main function was

inspection and control to specifications.

Evolution of Quality

StatisticalQualityControl Total

QualityManagement

Six Sigma

BusinessProcess

Reengineering

FordProduction

System

ToyotaProduction

SystemLean

LeanSix Sigma

MRP,MRP II

Supply Chain

ERPCRM

Quality:

Productivity:

Information Technology:

JIT

LeanSix Sigma

Supply Chain

Source: Furterer 2004 (ASQ CQSDI)

Business Process Reengineering

• The radical redesign of business processes for dramatic improvement.

• Mid- to Late-80’s: global competition.• Existing tools were no longer improving cost,

poor quality & bad service.• Good news and Bad news

– Far exceeded expectations– Unrecognizable

Business Process Reengineering & Six Sigma

• Most Fitted Elements:– Key word “process”: Focus on complete end-to-end

set of activities that together create value for a customer.

• Least Fitted Elements:– Key word “radical”: Scratch and start over

Evolution of Quality

StatisticalQualityControl Total

QualityManagement

Six Sigma

BusinessProcess

Reengineering

FordProduction

System

ToyotaProduction

SystemLean

LeanSix Sigma

MRP,MRP II

Supply Chain

ERPCRM

Quality:

Productivity:

Information Technology:

JIT

LeanSix Sigma

Supply Chain

Source: Furterer 2004 (ASQ CQSDI)

Total Quality Management

...is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future.

Total Quality Management

Source: Besterfield 2000

TQM & Six Sigma

• Most Fitted Elements:– Focus on quality

improvement.– Firm management of

projects and the attention to change management theory and approaches.

• Least Fitted Elements:– Measurement of success in

terms of activities.

Evolution of Quality

StatisticalQualityControl Total

QualityManagement

Six Sigma

BusinessProcess

Reengineering

FordProduction

System

ToyotaProduction

SystemLean

LeanSix Sigma

MRP,MRP II

Supply Chain

ERPCRM

Quality:

Productivity:

Information Technology:

JIT

LeanSix Sigma

Supply Chain

Source: Furterer 2004 (ASQ CQSDI)

Six Sigma• Is both a quality management philosophy and a

methodology that focuses on:1. Reducing variation2. Measuring defects3. Improving quality of processes, products, and services4. Instilling a philosophy of continuous improvement

• Incorporates a wide variety of ideas that originated from previous incarnations of quality management.

• Phases:

Define

Measure

Analyze

Improve

Control

Design for Six Sigma

DMAIC• Define the project goals and

customer (internal and external) requirements.

• Measure the process to determine current performance.

• Analyze and determine the root cause(s) of the defects.

• Improve the process by eliminating defect root causes.

• Control future process performance.

DMADV• Define the project goals and

customer (internal and external) requirements.

• Measure and determine customer needs and specifications; benchmark competitors and industry.

• Analyze the process options to meet the customer needs.

• Design (detailed) the process to meet the customer needs.

• Verify the design performance and ability to meet customer needs.

DFSS is used to design or re-design a product or service.

The world keeps changing….• Quality management will therefore always

need to be improved and adapted to the changing circumstances.

America’s Imperative• U.S. Council on Competitiveness, Dec. 2004

“Innovate America: Thriving in a World of Challenge and Change”

• Challenge to long-term global economic leadership

• Resolved: Innovation will be the single most important factor in determining America’s success through the 21st century

• America’s Task: For the past 25 years, we have optimized our organizations for efficiency and quality. Over the next quarter century, we must optimize our entire society for innovation.

Good News, Bad News• Bad News: The Council believes, “the manufacturing

strategies introduced over the past two decades of lean, Six Sigma-esque continuous productivity and quality improvement are no longer a source of meaningful competitive advantage.”

What?!• Good News: We know better than that.• Unfortunately, the image of our work is our problem.• Broadening our focus and using more appropriate terms

that better reflect what we do will put quality professionals in a better position to be part of the solution.

Six Sigma vs. Systematic Innovation • Six Sigma: focuses on more than just quality

– Six Sigma applications have evolved to focus on increasing productivity, reducing cycle time, etc.

• Economists call applications “innovations”• Not directly related to defect reduction

– Think broader, what we are really doing is improving an organization’s competitive position, better satisfying our customers and reducing costs→ INNOVATION!

• Quality improvement is about process and product innovation.– It is about improving anything: product designs, process designs,

radical changes, incremental changes or even new ways of managing.

Innovation• Innovation as an economic concept includes

development of new:– Products and services– Methods of production or provision– Methods of transportation or service delivery– Business models– Markets– Forms of organization

• Stereotypically innovation is considered a product of genius, a flash of light

• Innovation can be systematically planned and organized

Systematic Innovation

• The scientific approach to problem solving has been with us since Shewhart’s days– Foundation for the quality profession

• Six Sigma body of knowledge can, with minor adjustments to scope and terminology, be applied to systematize the innovation process

• Guides upper management to realize the strategic importance of our work, leading to better recognition

Economic Focus

• Ultimate quality award is improved bottom line profitability (Bisgaard & Freiesleben 2004)

• More than defects and operations management

• Transition from TQM to Six Sigma:– Evaluate cost of poor quality– Project savings

Preparing for theFuture of Quality

Engineer 2020

• National Academy of Engineering began a study in 2001 to prepare for the future of engineering– “What will or should engineering be like in the year 2020?”– “How can engineers best be educated to be leaders, able to balance

the gains afforded by new technologies with the vulnerabilities created by their byproducts without compromising the well-being of society and humanity?”

• How they performed the study:– Scenario-based planning was used that eliminated the need to gain

consensus on a single view of the future. – The study provided multiple opportunities that can help devise

strategies that can adapt to changing conditions.

Engineer 2020

• Results reveals some implications to Engineering Education:

– Broadly educated engineers who view themselves as global citizens.

– Leaders in business and public service.– Ethically grounded.– Five or six year professional degree.– Case histories incorporated into the curriculum.

Attributes of Future Engineers System Perspective Strong Analytical Skills Practical Ingenuity Creativity to Synthesize Mutual respect Social context / global citizen Customer focus Case-based learning

Attributes of Future Engineers Communication Team work, multi-disciplinary teams Leadership Ethical Professional Agility, Resilience, Flexibility, Receptive to change Lifelong learning

Departmental Reform Grant

• UCF is currently working on a departmental reform grant from NSF

• Three-round Delphi study to identify…– desired characteristics of an IE having

completed undergraduate education– emerging topic areas that should be

incorporated into the reengineered curriculum

Desired Characteristics Adaptable problem solving Quantitative/analytical abilities Creative and critical thinking Interpersonal skills/presence Teamwork skills Holistic problem solving Technical writing ability Computer skills Process evaluation/analyses

Decision making ability Project management Human dimension of management Global perspectives General engineering Diversity sensitivity Leadership awareness

Emerging Topics Ethical Behavior Lean Enterprise Performance Management/Measurement Six Sigma / Design for Six Sigma Team Building and Facilitation Statistical Methods for Service and Transaction-based

entities Leadership Service Enterprise/Systems Knowledge Management Object-Oriented Simulation Enterprise Resource Management Human-Integrated Systems/Usability

Preparing for the FutureEngineers’ Attributes TQI Course Component

Problem Solving DMAIC problem solving, case studies

System perspective System, process, statistical knowledge

Teamwork Team building, projects, project management, brainstorming

Flexibility DMAIC, projects, team work

Leadership, management Responsibility Matrix, Accountability, Change management, culture change, commitment, communication plan

Working together Team ground rules, team work, empowerment, reward, recognition, celebration

Professionalism ASQ Community Good Works Initiative focus

Technical Voice of Customer, QFD, benchmarking, measurement

Preparing for the FutureEngineers’ Attributes TQI Course Component

Strong analytical skills Problem solving, quality and lean tools, statistical knowledge, process and system focus

Practical ingenuity QFD, DOE, best practices, problem solving

Creativity to synthesize Critical to Quality, process orientation, project and team building

Communication, team work Team work, team building, reports and presentations, mentoring

Ethical Quality principles, ground rules

Professional Association with ASQ, all students must be members

Agility, Resilience, Flexibility Practical application on real life problems

Future of the Quality Profession

Systematic InnovatorsCode name: Black Belt

• Organizations should decentralize quality departments

• Instead, quality initiatives will be delegated to innovation agents, namely black belts and green belts throughout the organization

• Innovation should be seen as an integral part of everyone’s task rather than the responsibility of a separate department and a few specialists

Core Competencies

• Organizational structure designed to cultivate an experimental and risk taking attitude

• It is no longer sufficient to be an expert manager, marketing professional, or engineer.– Competitors in low-cost countries increasingly also

have experts who are more inexpensive• In addition to being an expert, professionals

must be well-trained and experienced in Six Sigma type systematic innovation skills– Emphasis on scientific approach to problem solving

Opportunity• Scientific approach to problem solving…

This is our thing!• Embrace the idea of being systematic

innovators• We will be the leading professionals of the

future knowledge economy

Questions or Comments?