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Building on the experiences of scores of companies and hundreds of managers, J.M. Juran, the world-renowned quality pioneer, presents a new, exhaustively comprehensive approach to planning, setting, and reaching quality goals. Employing three case examples which encompass the three major sectors of the economy -- service, manufacturing, and support, he offers a practical plan for companies to achieve strategic, market-driven goals by following a structural approach to planning quality.
Quality, according to Juran, has become a prerequisite for business success. He cites the loss of market share, failure of products, and waste as results of poor quality planning. Juran provides a set of universal steps which can be used in the basic managerial process to establish quality goals, identify customers, determine customer needs, provide measurement, and develop process features and controls to improve business tactics.
The author gives new emphasis to setting quality goals, planning in "multifunctional" processes, establishing data bases for quality planning, motivating managers and the work force, and introducing quality planning into organizations.
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J. M. Juran is the founder and Chairman Emeritus of Juran Institute, Inc. He is the author of Juran on Planning for Quality and Juran on Leadership for Quality (both Free Press) and has received over thirty awards and medals for his innovations and contributions in quality control.Excerpt. © Reprinted by permission. All rights reserved.:
How to Think About Quality Planning
Purpose of This Chapter
This chapter explains why a book on quality planning is needed. It describes quality planning as a basic managerial process. It also shows the relationship of quality planning to the overall way in which companies manage for quality.
Why a Book on Quality Planning?
There are persuasive reasons for a book on quality planning. During the 1960s and 1970s many domestic U.S. companies lost their quality leadership to new, aggressive competition. The most obvious consequence was loss of market share. For example, here is a partial list of goods for which imports had gained a significant share of the North American market by 1980.
Color television sets
The reasons for the loss in share of market were related mainly to quality, in two respects:
The imports had quality features that were perceived as better meeting customer needs.
The imports did not fail in service as often as the domestic products.
All this is pertinent to "Why a book on Quality Planning." Product features and failure rates are largely determined during planning for quality.
Loss of market share is not the only reason behind a book on planning for quality. A second major force has been the phenomenon of "life behind the quality dikes." We have learned that living in a technological society puts us at the mercy of the continuing operation of the goods and services that make such a society possible. In turn, such continuing operation depends absolutely on the quality built into those goods and services. Without such quality we have failures of all sorts: power outages, interruptions in communication and transportation, inoperative appliances. At the least these failures involve annoyances and minor costs. At their worst they are terrifying -- Chernobyl, Bhopal.
A third major force has been the gathering awareness by companies that they have been enduring excessive costs due to chronic quality-related wastes. In the U.S.A. about a third of what we do consists of redoing work previously "done." This redoing consists of correcting errors, rewriting documents, scrapping or reprocessing factory goods, responding to customer complaints, and so on.
Some managers question that figure of one-third redoing as applied to their own companies. Of course, the figure varies widely among industries, companies, and processes. However, it is easy to be led astray.
In one company, 2.4 percent of the invoices were protested by customers. To placate those customers was taking about half the time of the sales force.
In some banks only about 1.0 percent of the checks (printed with magnetic ink) fail to be processed successfully by the automated equipment. Yet it takes as much human time to process that 1 percent by hand as to process the other 99 percent by machine.
Our Quality Problems Have Been Planned That Way
Numerous specific quality crises and problems have been traced to the way in which quality was planned in the first place. In a sense, we planned it that way. There is no implication that the planners were incompetent, malicious, or otherwise deficient. On the contrary, the planners have generally been quite experienced and dedicated. Instead they faced multiple obstacles: unrealistic schedules, tight budgets, inadequate data bases. However, none of these realities diminishes the validity of the assertion that "we planned it that way." Moreover, so long as the conditions of the past remain in effect, we will continue to plan it that way.
In the factories, many product designers developed new products, and then delivered the product specifications to the Manufacturing Department. This was known as "throwing the designs over the wall," since there had been no participation by the manufacturing managers. This practice unilaterally created severe crises for the manufacturing managers.
In the offices electronic data processing opened up opportunities for processing information more promptly, and with fewer errors. However, many companies proceeded to convert their manual systems directly into electronic systems without first getting rid of the deficiencies in the manual systems. As a result, their manual mess became an automated mess.
Quality Planning Has Been Done by Amateurs
Some of those obstacles faced by the planners are beyond their control. One major obstacle, however, stems from a deficiency which the planners can remedy. That obstacle is "quality planning by amateurs," which is also a major reason for writing this book.
The question "Who does the quality planning?" has relevance to every step on the quality planning road map. What is critical is that most quality planning has been clone by amateurs -- by people who have not been trained in the use of the "quality disciplines."
All planners are faced with meeting multiple goals: a budget, a schedule, a quality specification, a mandated procedure, a government regulation, and so on. The functional planners (such as product developers) are generally experts in their function, but they lack expertise in the "quality disciplines" -- the methodology, skills, and tools required to plan for quality. Yet the planners do engage in quality planning since their goals include quality goals. Lacking expertise in the quality disciplines, they are amateurs in the best sense of that word.
Many companies have tried to deal with this problem by making quality specialists (quality engineers, reliability engineers) available to the planners as consultants. It hasn't worked very well. What has worked much better has been to train the planners themselves in use of the quality disciplines -- to train the amateurs to become professionals at quality planning.
A major decision to be made by upper managers relates to this matter of "quality planning by amateurs." The principal options are
(a) Provide the amateurs with consulting service, or
(b) Train the amateurs to become professionals.
In the experience of the authors, companies which have adopted option (b) have outperformed those who have followed option (a). The decision faced by upper managers is whether to mandate training the amateurs to become professionals.
The Mission of This Book
The mission of this book is to assist companies to achieve quality leadership through mastery of how to plan for quality. To carry out this mission, the book is organized as follows:
Chapter 1 (this chapter) defines quality planning as a universal series of steps and shows the relationship of that series to the overall way in which we manage for quality.
Chapters 2 through 8 examine that universal series in detail, step by step.
Chapters 9 through 11 show how to implement that universal series into the various levels of the company hierarchy.
The remaining chapters present supporting methodologies and case examples of planning for quality.
The Epilogue includes a discussion on "What should I do on my return?"
Figure 1-1 shows graphically how the book is organized.
The Need for Unity of Language
Managing for quality has, over the years, undergone some profound changes, especially during the 20th century. Figure 1-2 lists many of the major forces that have emerged over the years, along with the responsive strategies adopted by the impacted organizations. Inevitably such forces and responses have required revisions in language as well. For this reason we shall define key words and phrases as we go along. A good starting place is with the word "product."
A product is the output of any process. The economist defines "products" as goods and services. That is also the definition adopted by this book. The term "product" includes various subclassifications:
Goods are physical things -- pencils, color television sets.
Service is work performed for someone else. Entire industries are established to provide services in such forms as central energy, transportation, communication, entertainment, and so on. Service also includes work performed for someone else within companies, e.g., payroll preparation, recruitment of new employees, plant maintenance. Such services are often called support services.
Software has more than one meaning. A major meaning is instruction programs for computers. Another major meaning is information generally: reports, plans, instructions, advice, commands.
A product feature is a property possessed by a product that is intended to meet certain customer needs and thereby provide customer satisfaction. Product features may be technological in nature: fuel consumption of a vehicle, dimension of a mechanical component, uniformity of voltage of an electric power supply, a spelling check dictionary on an electronic typewriter. Product features may also take other forms: promptness of delivery, ease of maintenance, courtesy of service. A more technical definition of product feature is "quality characteristic."
Customer Satisfaction; Product Satisfaction
Customer satisfaction is a result achieved when product features respond to customer needs. It is generally synonymous with product satisfaction. Product satisfaction is a stimulus to product salability. The major impact is on share of market, and thereby on sales income.
A product deficiency is a product failure that results in product dissatisfaction. Product deficiencies take such forms as power outages, failures to meet delivery dates, inoperable goods, blemished appearance, or nonconformance to specification. The major impact is on the costs incurred to redo prior work, to respond to customer complaints, and so on.
Customer Dissatisfaction; Product Dissatisfaction
Product deficiencies are in all cases sources of customer dissatisfaction. This may in turn lead to specific customer reactions: complaints, returns, unfavorable publicity, lawsuits, and so on.
Product deficiencies may also cause the customer to avoid buying the product in the future despite its superior features. In this way, product salability is influenced in two ways:
The first sale to a customer is heavily influenced by the product features. At the time, the customer does not know what the product deficiencies will be.
Subsequent sales to that customer are heavily influenced by the extent of deficiencies encountered during use of the product, and by the service rendered with respect to those deficiencies.
Product Satisfaction and Product Dissatisfaction Are Not Opposites
Product satisfaction has its origin in product features and is why clients buy the product. Product dissatisfaction has its origin in non-conformances and is why customers complain. There are many products that give little or no dissatisfaction; they do what the supplier said they would do. Yet the products are not salable if some competing product provides greater product satisfaction.
For many years the copying of documents was done by use of carbon paper, "ditto" ink, "mimeograph" stencils, and so forth. The xerographic copier made all those methods obsolete because of its feature of copying documents direct from an original. Today, if someone produced a mimeograph process that was absolutely free from field failures, it would be unsalable because of its inability to copy direct from an original document.
A customer is anyone who is impacted by the product or process. Customers may be external or internal.
EXTERNAL CUSTOMERS. These are impacted by the product but are not members of the company that produces the product. External customers include clients who buy the product, government regulatory bodies, and the public (which may be impacted due to unsafe products or damage to the environment).
INTERNAL CUSTOMERS. They are impacted by the product, and are also members of the company that produces the product. They are often called "customers" despite the fact that they are not customers in the dictionary sense, that is, they are not clients.
The Meanings of Quality
The dictionary offers about a dozen definitions of the word "quality." Two of them are of major importance to managers.
Product features is one of these definitions. In the eyes of customers, the better the product features, the higher the quality.
Freedom from deficiencies is the other major definition of quality. In the eyes of customers, the fewer the deficiencies the better the quality.
Some customers, especially consumers, do not necessarily recognize that there are two rather different kinds of quality. Their vagueness may give rise to such comments as "I know it when I see it." Managers must recognize this distinction, however, since the respective impacts are on matters as diverse as salability and costs.
Figure 1-3 sets out the two definitions in more detailed form. The main lessons for the manager are:
Product features impact sales. As to this kind of quality, higher quality usually costs more.
Product deficiencies impact costs. As to this kind of quality, higher quality usually costs less.
Despite the differences in these two kinds of quality, it would be convenient to have a short, simple phrase to describe them together. To date there has been no consensus on adoption of such a phrase. The phrase "fitness for use" has gained some followers, as have some other phrases. It is unlikely that two concepts so different can be encompassed in one terse phrase.
The above definitions of quality do not meet with universal acceptance. Many companies have arrived at other definitions which they feel are consistent with the needs of their industry and with their own dialect. Their definitions often extend to the "subsets" -- the detailed ingredients contained in the broad definitions. As to these subsets there are divergent views. Figure 1-4 classifies the more usual ingredients to show how widely they are included or excluded in company definitions of quality.
There is no possibility of adoption of universal definitions until a glossary, sponsored by a recognized standardization body, has been evolved.
Big Q and Little Q
The main reason for all that inconsistency in terminology is the fact that the terminology has been changing. The change has its origin in the quality crisis, and has been so profound as to give rise to the concept of "Big Q and little Q." Figure 1-5 shows this concept in tabular form.
Until the 1980s managers generally associated quality with factories, manufactured goods, and production processes. During the 1980s there emerged a wide trend to broaden the definition of quality to include the contents shown in Figure 1-5. The willingness to accept this trend has varied. Those most willing have been the quality managers and the upper managers. Those most reluctant have been managers in the technological areas and in certain staff functions, such as finance and human relations.
The Conformance Definition: Limitations and Merits
Some companies have defined quality in terms such as conformance to specification, or conformance to standards. These are dangerous definitions when applied at mana...
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