Quality Digest Magazine

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October 31, 2013

ISO 9000: Then and Now Process Improvement and Other Fair Ta!es

*ean Si; Si(ma

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Six Sigma vs. TQM

One Test, One "ccreditation## "ccepted $ver where %&a!it 'ana(ement

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b ./ 0ames .arrin(ton and Praveen 1&pta

At the most recent Quality Expo, industry leaders H. James Harrington and Praveen Gupta met in
front of a packed house to deliver a friendly, %&a!it -i(est -sponsored de ate on the virtues of total !uality management "#Q$% vs. &ix &igma. Harrington, a long-time proponent of #Q$ as 'ell as a &ix &igma Grand $aster (lack (elt, agreed to present the case for #Q$, 'hile Gupta, author of six ooks on &ix &igma, defended the &ix &igma methodology. )ollo'ing is a recap of the key points touched upon y Harrington and Gupta* the #Q$ portions are taken from Harrington+s presentation, and Gupta+s perspective is represented in the &ix &igma sections. ,n the end, it 'as clear that oth methods have something to offer industry* they have something to offer each other, as 'ell. -s one mem er of the audience succinctly put it in the !uestion-and-ans'er session follo'ing the de ate, .#hese topics shouldn+t e presented as mutually exclusive ecause certainly they are not.. /n that note, it+s important to mention that Harrington and Gupta each see the value of the opposing vie'point. #hey are, first and foremost, strong supporters of all the tools in the !uality manager+s toolkit. 0ou can listen to the entire de ate at http:,,reedshows/com,2&a!it a&dio/

TQM background--Harrington
Tota! 2&a!it mana(ement was an evo!&tionar rather than a revo!&tionar deve!opment/ It evo!ved over a h&ndred ears to be what it is toda / 3e need to !oo4 at that deve!opment and at how the methodo!o( started, evo!vin( )rom )air 2&a!it &p to a ver rob&st !eve! o) 2&a!it in prod&cts and services/ 3here5s it (oin( in the )&t&re6 I thin4 be ond T%' is tota! improvement mana(ement, which wi!! ta4e the concept even )&rther/ Terms chan(e, b&t methodo!o(ies don5t/ The 0&ran Instit&te points o&t that T%' is a set o) mana(ement processes that create de!i(hted c&stomers and empowered emp!o ees/ That5s what T%' is abo&t toda / 3here did it come )rom6 One on! need !oo4 at the Ford 'otor 7o/ at the be(innin( o) this past cent&r / Ford was ab!e to ta4e raw materia!s and t&rn them into a de!ivered car in )ive da s##the best 8&st#in#time 90IT: pro(ram that has ever been deve!oped an p!ace in the wor!d/ 'odern concepts s&ch as contin&o&s )!ow, !ean and error#proo)in( were a!! part o) that s&ccess/ The ne;t step )orward came in the period )rom the 1920s to the 19<0s, when the )oc&s was driven b "T=T/ .ere5s where we )irst saw statistica! process contro!, when 3a!ter "/ Shewhart deve!oped his contro! charts, and the p!an#do#chec4#act 9P-7": prob!em#so!vin( too!s came into e;istence/ "!! this he!ped estab!ish pro)essions s&ch as data ana! sts and 2&a!it en(ineers/ The period )rom the 19<0s to the 19+0s was driven b the (overnment and the 3or!d 3ar II/ This is when re!iabi!it en(ineerin( and samp!e p!ans came into the pict&re/ For operationa! 2&a!i)ications, the re2&irement at that time )rom the (overnment standpoint was that o& 2&a!i)ied o&r processes at a 7p4 o) 1/</ Trainin( and ed&cation )or ever one in the or(ani>ation, as we!! )ai!&re mode and e))ects ana! sis, a!! became part o) the 2&a!it discip!ine/

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The 19+0s thro&(h the 19@0s was a period o) intensive c&stomer )oc&s, !ed b 1enera! $!ectric/ .ere we saw 2&a!it )rom womb to tomb/ 7onc&rrent en(ineerin( become part o) the practice/ 7ost o) poor 2&a!it became a ver important meas&rement/ Phi! 7rosb 5s concept o) >ero de)ects became preva!ent at that time as we!!/ This methodo!o( said that we can ma4e per)ect prod&cts, so >ero de)ects m&st be the &!timate meas&rement/ The evo!&tion )rom 2&a!it ass&rance to tota! 2&a!it contro! event&a!! !ed to tota! 2&a!it mana(ement/ In !oo4in( at the period )rom the 19@0s &nti! toda , o& see a bi( )oc&s on teamwor4/ Ideas s&ch as reen(ineerin(, redesi(n and benchmar4in( became part o) the 2&a!it practitioner5s s4i!! set/ $mp!o ee invo!vement became a ma8or part o) the 2&a!it movement/ Ownership and se!)#mana(ed wor4 teams p!a ed a !ar(e ro!e in T%' activities/ The )oc&s was on mana(in( b )act, not (&ess/ 0apanese man&)act&rers and en(ineers were havin( (reat s&ccess with !ean, as e;emp!i)ied b the To ota Prod&ction S stem, which set new standards )or e;ce!!ence and 2&a!it / "!! o) that ro!!ed into the T%' s stem/ ISO 9001 came o&t and set &p some o) the basic (ro&nd r&!es o) 2&a!it as it now operates toda / So, when we ta!4 abo&t T%', it5s not somethin( new##it5s a b&i!din( o) ideas and concepts/ 3ith each (eneration, thro&(h each period, somethin( new comes a!on( and adds to it/ T%' provides a tota! pict&re o) the evo!&tion in 2&a!it over the !ast h&ndred ears/

Six Sigma background--Gupta

3hen Si; Si(ma was deve!oped in 19@+, we were tired o) improvin( 2&a!it b &sin( traditiona! methods/ 'ana(ers spent time preparin( charts showin( 2&a!it per)ormance, b&t the c&stomers never saw an res&!t, and the emp!o ees never saw an improvement/ In m opinion, T%' rea!! is a!! ta!4 and no wa!4/ This is beca&se peop!e don5t 4now what it is/ It can5t be ever thin(##it has to be somethin( that5s meanin()&!/ That5s wh T%' is obso!ete toda / One wa to !oo4 at Si; Si(ma and T%' is that T%' is !i4e wa!4in( and Si; Si(ma is !i4e r&nnin(/ In this techno!o( , in this (!oba! econom , in the virt&a! pro)essions, we can5t a))ord to wa!4##we have to r&n/ 3e have a race to win/ ' ob8ective is to c!ari) Si; Si(ma, beca&se there5s a !ot o) mis&nderstandin( abo&t it, and to review Si; Si(ma vs/ T%' to show the di))erences/ In an 2&a!it pro(ram, o& don5t imp!ement T%', Si; Si(ma, contro! charts, SP7 or an thin( e!se &n!ess it ma4es economic sense/ To achieve this re2&ires the too!s o) Si; Si(ma, !eadership, pro)essiona!ism, a s&pportive corporate c&!t&re and per)ormance mana(ement/ A&t Si; Si(ma is on! s&itab!e to companies that want to achieve ind&str !eadership##companies that wi!! not or cannot a))ord Bacceptab!eB per)ormance beca&se acceptabi!it &sin( inspections, chec4s and P-7" isn5t (ood eno&(h in toda 5s econom and (!oba! environment/ For those who have to be the best, innovation itse!) isn5t eno&(hC The 2&estion is how to acce!erate innovation/ $ver compan and co&ntr is improvin(, so how do o& di))erentiate o&rse!) compared to other improvin( mana(ement s stems6 A brin(in( a bottom#!ine sense to improvement and 2&a!it , and re!atin( it to the bottom#!ine n&mbers/ 3e have to do thin(s that have bottom#!ine and top#!ine e))ects/ Si; Si(ma corresponds to virt&a! per)ection/ I thin4 that >ero de)ects pro(rams have done dama(e beca&se peop!e rea!! rebe!!ed a(ainst the idea o) per)ection as the standard/ 3e have to brin( some rea!it to what we do/ So what is Si; Si(ma6 I thin4 a !ot o) peop!e identi) A!ac4 Ae!ts and 1reen Ae!ts with Si; Si(ma/ Interestin(! , when I )irst wor4ed with Si; Si(ma at 'otoro!a )rom 19@D to 1992, there were no Ae!ts, period/ 3e too4 a common#sense technica! approach/ Si; Si(ma was deve!oped in the mid#19@0s, and it was intended to acce!erate improvement/ I was in the semicond&ctor ind&str , and the )irst memor chips were made in 19@1 or 19@2/ 3e co&!dn5t ma4e mone on o&r )irst (eneration o) chips, at !east not eno&(h/ The chips man&)act&red b o&r 0apanese competitors had )ar (reater ie!d/ .ow did we improve eno&(h to compete6 3e acce!erated improvement/ Si; Si(ma does two thin(s: It creates a !ot o) improvement, and it does it ver )ast/ I) o& have a moderate (oa! )or o&rse!)##sa , o& want to increase o&r sa!ar b 10 percent this ear## o& mi(ht as4 o&r boss )or a raise, ma be wor4 10 percent more overtime or somethin( e!se/ A&t i) o& want to improve o&r income b E0 percent or +0 percent, that ma4es o& thin4/ Now o& rea!! have to stretch/

TQM benefits--Harrington
"s T%' deve!oped, a n&mber o) di))erent improvement c c!es )oc&sin( on P-7" and its modi)ications became pop&!ar/ -orian Shainin5s statistica! en(ineerin( became a ver important part o) how we treat statistics/ 1enichi Ta(&chi5s !oss )&nction became part o) it/ Stretch (oa!s became a standard thin(/ Ten times the improvement was the tar(et, )irst )rom .ew!ett#Pac4ard, which tar(eted a ten)o!d improvement in ten ears/ 'otoro!a needed more improvement )aster, so it aimed )or a ten)o!d improvement in )ive ears/ Stretch (oa!s were part o) the T%' e))ort then and are part o) the T%' methodo!o( toda / The bi( )oc&s is that top mana(ement m&st !ead##it5s not a bottom#&p movementC it5s a top#down movement/ I) o& don5t have top mana(ement invo!vement, )or(et abo&t it/ Fo& cannot sweep o&r stairs startin( at the bottom and sweepin( &pC o&5ve (ot to start at the top and sweep down/ That5s what we5ve seen in T%' s stems/ T%' sets error#)ree per)ormance standards, )oc&sin( on the re!iabi!it o) o&r prod&cts not on! in man&)act&rin( processes, b&t a!so as the 5re de!ivered to the c&stomer/ The )oc&s is on re!iabi!it and !on(#ran(e strate(ic p!ans##not deve!opin( short#term p!ans b&t )i(&rin( o&t how o&5re (oin( to r&n o&r trans)ormation pro(ram over )ive to 10 ears/ T%' embraces severa! important discip!ines/ For e;amp!e, pro8ect mana(ement became a ver important part o) T%'/ 7han(e mana(ement, which is a!! abo&t chan(in( behaviora! patterns, is another/ " ver important part o) T%' pro(rams are s&((estion s stems/ 3ith T%', ever emp!o ee sho&!d t&rn in a minim&m o) two s&((estions per month/ "nother e!ement is creativit

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trainin(/ The 2&estion o) how o& inspire creativit became part o) T%'/ $ven in)ormation techno!o( 9IT: so!&tions became an important part beca&se o& cannot reen(ineer or redesi(n a process witho&t (ettin( into the IT so!&tion areas/ T%' is (rowin( to the point where 4now!ed(e mana(ement, ris4 mana(ement, theor o) constraints, tota! prod&ctivit , maintenance and rob&st desi(n are a!! part o) the e2&ation/

Six Sigma benefits--Gupta

0im mentioned sweepin( stairs )rom the top down beca&se o& can5t sweep )rom the bottom &p/ This is tr&eC however, o& can vac&&m stairs )rom the bottom &p/ I don5t sweep m stairs an more, b&t I do vac&&m them and when I do, I vac&&m )rom the bottom step &p, and it wor4s 8&st )ine/ 3e have to be innovative, and we have to thin4 di))erent! / 3e rea!! don5t have to 4eep doin( the same thin(s in the same wa / It5s interestin( to consider the va!&e proposition o) Si; Si(ma/ The thirt companies on the -ow Ind&stria!s Inde; avera(e abo&t 3/+2 si(ma in their processes/ Three si(ma means an error rate o) abo&t ++,@0D PP', or abo&t +/D percent/ Fo&r si(ma means 0/E percent/ 7ost o) 2&a!it is presented as a meas&rement in terms o) percent o) sa!es, which is a waste/ 3e sho&!d instead !oo4 at cost o) 2&a!it as a percent o) pro)it/ 7ompanies s&))er not beca&se the don5t se!! eno&(h##1enera! 'otors had sa!es o) a!most G200 bi!!ion !ast ear##b&t beca&se o) how m&ch 9or !itt!e: pro)it the ma4e/ "(ain, the chie) bene)it o) Si; Si(ma is acce!erated improvement/ 3ith ever si(ma !eve! o& can improve o&r income b 10 percent, net/ Those are prett bi( n&mbers/ Si; Si(ma, in the ri(ht conte;t, !eads to acce!erated improvement and ver )ast chan(e/ It5s not a !&;&r C it5s a re2&irement/ Improvin( )rom the three si(ma !eve! o) per)ormance to the si; si(ma !eve! o) per)ormance re2&ires an improvement )actor o) appro;imate! 20,000/ I don5t thin4 that the H/S/ a&to ind&str is aware that it has to improve b a )actor o) 20,000/ It5s h&(e/ I) )&e! e))icienc wo&!d improve at the same rate, o& wo&!d be ab!e to drive )rom San Francisco to New For4 on one teaspoon o) (as/ 3e m&st !oo4 at rapid! improvin( o&r per)ormance, and the Si; Si(ma methodo!o( )or doin( so is ver c!ear: de)ine, meas&re, ana! >e, improve and contro!/

TQM summary--Harrington
*et me sa that I !i4e Si; Si(ma/ It5s a methodo!o( )or 2&a!it that mana(ement is !istenin( to ri(ht now/ It provides a (ood )ramewor4 with a ver (ood basis/ 3hat I don5t !i4e abo&t it is that it estab!ishes a separate (ro&p/ I don5t !i4e A!ac4 Ae!ts and 1reen Ae!tsC I want ever bod to be prob!em so!vers/ I !i4e the 2&a!it circ!e ideaC !et5s brin( ever bod &p so that the can so!ve prob!ems to(ether/ Si; Si(ma has a )inancia! )oc&s, not a c&stomer )oc&s/ Si; Si(ma sho&!d be r&n b the chie) )inancia! o))icer, not b 2&a!it personne!, beca&se the methodo!o( is )oc&sed on red&cin( cost, not improvin( c&stomer satis)action/ Si; Si(ma practitioners have been throwin( T%' activities into the mi;##the tossed in !ean, and the tossed in reen(ineerin( and redesi(n and ca!!ed it desi(n )or Si; Si(ma/ In rea!it , a!! o) this is 8&st process stream!inin(/ I predict that b the end o) 2020, we5!! have Si; Si(ma &p to the point that it is (ood as T%' is toda / Si; Si(ma rea!! )oc&ses on variation and statistics rather than the behaviora! chan(es that are re2&ired to brin( abo&t a c&!t&ra! shi)t within a compan / Si; Si(ma5s ob8ective is to improve c&stomer satis)action b red&cin( variation/ 7ertain! we want to red&ce variation##!et5s (et the variation down to E0 percent o) the speci)ication/ That5s rea!! (ood )or man&)act&rin(, b&t ma be it5s m&ch better to chan(e the center !ine and red&ce the c c!e time/ 3hen o& start )oc&sin( on 8&st variation, o& are )oc&sin( on the wron( thin(/ *oo4 at 'otoro!a and 1enera! $!ectric/ Aoth c!aimed mi!!ions in savin(s )rom Si; Si(ma, b&t when o& start !oo4in( at the e;amp!es, ver !itt!e concerns variation red&ction/ The 5re a!! ta!4in( abo&t process simp!i)ication and red&cin( nonva!&e# added activities/ Process redesi(n and process reen(ineerin( is where the saved most o) their do!!ars/ So what happened6 'otoro!a co&!dn5t !ive with the basic p&rpose o) Si; Si(ma and be(an o&tso&rcin(/ In 19EE, 'otoro!a had +0 percent o) its mar4etC as o) 2003, it had 1E percent/ 'otoro!a5s operatin( mar(in toda is E0 percent o) its competitors5/ "s )or 1$, )ormer 7$O 0ac4 3e!ch spo4e abo&t &sin( Si; Si(ma to save GE3,000 per pro8ect over a period o) time, b&t the compan a!so p!anned to o&tso&rce D0 percent o) its man&)act&rin( overseas to increase pro)its/ 7&stomer satis)action at 1$ was hi(her be)ore it started Si; Si(ma, and the compan never (ot bac4 to that same !eve! &sin( the methodo!o( / 3hen 0ac4 3e!ch !e)t the compan , so did Si; Si(ma/ 'eanwhi!e, more than +0 percent o) the companies in the Hnited States are now &sin( T%', and (reater than @0 percent are )ami!iar with the concept/ T%' is the No/ 1 approach to winnin( the Aa!dri(e "ward, which sets the nationa! standard )or e;ce!!ence in the Hnited States/ "s Tom Peters points o&t, a!most a!! improvement comes b simp!i) in( desi(n, man&)act&rin(, !a o&t, and processes and proced&res, not )rom red&cin( variations/ T%' is the best too! to accomp!ish this/

Six Sigma summary--Gupta

-e)inin( a prob!em is the most critica! part o) the Si; Si(ma methodo!o( / " prob!em de)ined is a prob!em ha!)#so!ved/ Fo& can dance aro&nd a prob!em as m&ch as o& want, b&t i) o& don5t de)ine it proper! , o& wi!! r&n aro&nd in circ!es, writin( corrective action reports and wor4in( on 4eepin( peop!e b&s / The distinctive )eat&re o) Si; Si(ma is its inte(rated approach/ 0im has said that T%' has evo!ved/ Si; Si(ma ta4es a!! those too!s that have been deve!oped and inte(rates them into a str&ct&red approach/ Fo& can &se a!! those too!s and de)ine it as a methodo!o( and c!ari) the intent/ Si; Si(ma re2&ires a((ressive (oa! settin(/ Si; Si(ma is abo&t innovation beca&se we m&st !earn to be inte!!ect&a!! en(a(ed with o&r processes/ "(ain, Si; Si(ma is !i4e r&nnin(, and T%' is !i4e wa!4in(/ Si; Si(ma is res&!ts#oriented and !earnab!e, and T%' is i!!#de)ined, phi!osoph #driven and, overa!!, ver 2&estionab!e/ The

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methodo!o( sti!! needs to )ind a wa to simp!i) and c!ari) its approach so that peop!e can do somethin( with it/ 3e need s stems that are per)ormance#driven/ I thin4 that the )&ndamenta! di))erence is the intent/ T%' is )or incrementa! and contin&a! chan(e, and Si; Si(ma represents rapid, radica! and dramatic chan(e thro&(h innovation/ It5s not abo&t behaviora! or c&!t&ra! chan(eC it5s abo&t inte!!ect&a! en(a(ement/ The 2&estion is, how do o& (et peop!e inte!!ect&a!! invo!ved to drive dramatic improvement6 0im mentioned Tom Peters ear!ier/ Peters said that it5s not di))ic&!t to !earn new thin(sC what5s di))ic&!t is )or(ettin( o!d thin(s/ I) o&5re havin( di))ic&!t )or(ettin( the o!d method o) T%', then move be ond T%' to Si; Si(ma/ Si; Si(ma wor4sC T%' has not wor4ed/ To s&mmari>e, Si; Si(ma is a T%' base!ine s stem powered b a new approach/ Si; Si(ma has been the most s&ccess)&! methodo!o( to date in introd&cin( corporate improvement/ Si; Si(ma provides )oc&sed, rea!#wor!d res&!ts/

About the authors

H. James Harrington is 1E/ of the Harrington ,nstitute ,nc. and chairman of the oard of Harrington Group. He has more than 22 years of experience as a !uality professional and is the author of 34 ooks. 5isit his 6e site at www/harrin(ton#instit&te/com/ Praveen Gupta, president of -ccelper 1onsulting, consults 'ith organi7ations in the fundamental usiness strategy of sustained, profita le gro'th. He has co-authored several ooks, and teaches usiness innovation at the ,llinois ,nstitute of #echnology. 5isit his 6e site at www/acce!per/com/

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