UNIT 2 History of Quality Science Unit

UNIT 2 History of Quality Science

Unit Objectives After reading this unit, the students will be able: 1. to understand the history of USA quality science; 2. to understand the history of Japan’s quality movement; and 3. to understand the history of quality evolution in Malaysia

HISTORY OF USA QUALITY SCIENCE o The 1920’s are widely recognized as the dawn of quality science. o Bell Laboratories led the way by forming a quality department that emphasized quality, reliability, testing, and inspection.

Walter Shewhart Contribution o While with Bell Laboratories Walter Shewhart introduced the concept of control charting, and o H. F. Dodge and H. G. Romig perfected methods for acceptance sampling. o The methods developed during those early years were recognized and adopted by the War Department and the U. S. Army during the war effort of the 1940’s.

Control Charts, Sampling & SPC o Guidelines for the use of control charts, sampling inspection standards, and sampling techniques were adopted to aid manufacturing of war materials. o Training courses in statistical quality control (SQC) also began to emerge.

The Publications & Seminars o Much of what was learned in the U. S. during war time manufacturing was published and taught during the fifteen year period following WW II. o J. M. Juran and F. M. Gryna published the Quality Control Handbook (1957), and o both Juran and W. E. Deming were invited to Japan to give seminars on statistical methods and quality management.

The Japanese engineers and scientists & The Stagnant ERA o Japanese engineers and scientists also began developing methods for quality improvement such as Taguchi’s methods for experimental design, and Ishikawa’s introduction of the cause-and-effectdiagram. o However, it is interesting to note that after all that was gained during this time period, the growth of quality methodology during the 1960’s and much of the 1970’s was stagnant.

The Awareness o Something stalled the course of the quality movement in U. S. manufacturing between 1960 and 1980 when NBC televised W. Edwards Deming’s first white paper titled If Japan Can. . . Why Can’t We. o Many quality professionals believe that management gave up on the tools that lead to the successful advancement of traditional quality science here and abroad.

The Emergent of a new modern quality movement o Instead management concentrated on productivity and profits, and many blamed unfair trade practices for loss of market share. o However, a new modern quality movement emerged after Deming’s famous white paper, and with it came a new philosophy regarding quality and continuous improvement.

HISTORY OF JAPAN'S QUALITY MOVEMENT o The quality movement in Japan began in 1946 with the U. S. Occupation Force's mission to revive and restructure Japan's communications equipment industry. o General Douglas Mac. Arthur was committed to public education through radio.

Roles of Homer Sarasohn o Homer Sarasohn was recruited to spearhead the effort by repairing and installing equipment, making materials and parts available, restarting factories, establishing the equipment test laboratory (ETL), and n setting rigid quality standards for products (Tsurumi 1990). n n

Sarasohn Recommendations o Sarasohn recommended individuals for company presidencies, like Koji Kobayashi of NEC, and he established education for Japan's top executives in the management of quality. o Furthermore, upon Sarasohn's return to the United States, he recommended W. Edwards Deming to provide a seminar in Japan on statistical quality control (SQC).

Deming’s Contribution o Deming's 1950 lecture notes provided the basis for n a 30 -day seminar sponsored by the Union of Japanese Scientists and Engineers (JUSE) and n provided the criteria for Japan's famed Deming Prize. n The first Deming Prize was given to Koji Kobayashi (NEC) in 1952.

JUSE’s Role o Within a decade, JUSE (Japanese Scientists and Engineers) had trained nearly 20, 000 engineers in SQC (statistical quality control) methods. o Today Japan gives high rating to companies that win the Deming prize; o they number about ten large companies per year.

Impact of Deming's work has impacted industries such as those for o radios and parts, o transistors, o cameras, o binoculars, and o sewing machines.

Deming awarded the Second Order of the Sacred Treasure o In 1960, Deming was recognized for his contribution to Japan's reindustrialization when the Prime Minister awarded him the Second Order of the Sacred Treasure.

Role of Dr. Joseph M. Juran o In 1954, Dr. Joseph M. Juran of the United States raised the level of quality management from the factory to the total organization. o He stressed the importance of systems thinking that begins with n n product designs, prototype testing, proper equipment operations, and accurate process feedback.

From SQC to TQC (total quality control) o Juran's seminar also became a part of JUSE's educational programs. o Juran provided the move from SQC to TQC (total quality control) in Japan. o This included company-wide activities and education in quality control (QC), QC circles and audits, and promotion of quality management principles.

The elements of TQC management: By 1968, Kaoru Ishikawa, one of the fathers of TQC in Japan, had outlined the elements of TQC management: n quality comes first, not short-term profits n the customer comes first, not the producer n customers are the next process with no organizational barriers n decisions are based on facts and data

The elements of TQC management: n management is participatory and respectful of all employees n management is driven by crossfunctional committees covering product planning, product design, production planning, purchasing, manufacturing, sales, and distribution (Ishikawa 1985)

JUSE and QCC o By 1991, JUSE (Japanese Scientists and Engineers) had registered over 331, 000 quality circles with over 2. 5 million participants in its activities. o Today, JUSE continues to provide over 200 courses per year, including five executive management courses, ten management courses, and a full range of technical training programs.

"Ishikawa" or "cause-and-effect" (Fishbone) diagram o One of the innovative TQC methodologies developed in Japan is referred to as the "Ishikawa" or "cause-and-effect" diagram (Fishbone). o After collecting statistical data, Ishikawa found that dispersion came from four common causes, as shown in Figure 1.

Figure 1. Cause-and-effect diagram (Ishikawa 1982, 13).

Materials & Machines o Materials often differ when sources of supply or size requirements vary. o Equipment or machines also function differently depending on variations in their own parts, and they operate optimally for only part of the time.

Process (Method) and measurement o Processes or work methods have even greater variations. o Finally, measurement also varies. o All of these variations affect a product's quality. o Ishikawa's diagram has lead Japanese firms to focus quality control attention on the improvement of materials, equipment, processes and measurement.

JTEC (Japanese Technology Evaluation Center) Observation o JTEC panelists observed statistical process control (SPC) charts, often with goal lines extending into 1995, in a few of the factories they visited in 1993. o For example, at Ibiden, process control was apparent in its laminated process board manufacture, where there was extensive use of drawings and descriptions of the processes necessary to do the job.

JTEC Observation o Companies that were competing for the Deming Prize made extensive use of such charts, and companies that had received ISO 9000 certification also posted the process information required for each machine. o However, the panel was surprised at the relatively limited use of SPC charts within the factories visited.

JTEC Observation o The Japanese believe that the greatest benefit occurs when defect detection is implemented within the manufacturing sequence, o thus minimizing the time required for detection, maximizing return on investment, and indirectly improving product reliability.

ISO 9000 Standards Certification o The concept of certification and standards, however, breaks down when global competitiveness is at stake. o Most recently, ISO 9000 certification has become a requirement for exports to Europe, and o Japan has been forced to obtain ISO certification, not because it is a quality issue, but because it is a way of increasing market share.

Company product standards VS QML (Qualified Manufacturers List) o The Japanese companies provide some of the highest-quality products, typically n using company product standards (best commercial practices) n rather than external standards like QML (Qualified Manufacturers List) or any U. S. military standards.

Role of The Japan Quality Association (JQA) o The Japan Quality Association (JQA) is responsible for ISO certification. o It was established in 1958 as the Japan Management Institute (JMI) under Japan's Ministry of International Trade and Industry (MITI) for the purpose of export inspection.

From JMI to JQA o In 1960, JMI moved from inspection to process certification, o and in October 1993, JMI was renamed JQA to more aptly identify its mission.

JQA & ISO 9000 Certification o JQA has provided ISO 9000 certification in Japan since 1990 after receiving training from the British Standards Institution's (BSI) quality assurance division, and o it has memoranda of understanding with both BSI and Underwriters Laboratory (UL) in the United States for reciprocal certification acceptance.

JQA & ISO 9000 Certification o By October of 1993, JQA had ISOcertified 300 firms in Japan, about 80% of which were electronics firms; the rest were chemical firms. o JQA expected to have about 540 companies certified by the end of 1994.

JQA & ISO 9000 Certification o Most firms seeking certification were electronics firms that depended on exports to Europe. o At the time of the JTEC visit, JQA was limited to about thirty assessments per month.

JQA & ISO 9000 Certification o It typically took companies one year to eighteen months to gain certification; most had little difficulty in obtaining ISO certification. o In addition to JQA certification, there were an equal number of firms obtaining ISO certification from non. Japanese auditors.

JTEC (Japanese Technology Evaluation Center) Panel Observation o When the JTEC panel visited Japan, Fujitsu, NEC, and Hitachi had the largest number of certified factories. o Yamagata Fujitsu became ISO 9002 certified in February 1993 and was applying for ISO 9001 certification for early 1994. o Fujitsu had over ten certified factories by the end of 1993. o Most of the factories visited by the panel had either received ISO certification or were in the process of certification.

QUALITY AND RELIABILITY REQUIREMENTS IN JAPAN o Quality is associated with the degree of conformance of the product to customer requirements, and thus, in a sense, with the degree of customer satisfaction. o Implicit in Japanese quality products is an acceptable amount of reliability; that is, the product performs its intended function over its intended life under normal environmental and operating conditions.

Reliability Assurance o Reliability assurance tasks such as qualification are conducted n (1) during the product design phase using analytical simulation methods and design-for-assembly software, and n (2) during development using prototype or pilot hardware.

Quality conformance o Quality conformance for qualified products is accomplished through monitoring and control of critical parameters within the acceptable variations already established, perhaps during qualification. o Quality conformance, therefore, helps to increase product yield and consequently to lower product cost.

Automation and its impact on quality o The Japanese have determined that manual labor leads to poor-quality output and that automation leads to higher-quality output. o Quality has, therefore, become a key driver for factory automation in Japan. o In addition, factory automation also adds the benefits of improving productivity and improving flexibility in scheduling the production or changeover of product types.

Inspection and screening o Incoming inspection was negligible at most of the companies that the JTEC panel visited, because of the view that the quality of suppliers' products could be trusted. o Since the 1950 s, the Japanese government has set quality requirements for any company that exports products from Japan.

o Suppliers have progressed in status from being fully inspected by their customers to being fully accepted. o Qualified suppliers (Qualified Manufacturers List) are now the standard for Japan, and most problems come from non-Japanese suppliers

Dealing with Reliability Problems in Electronic Sector (JTEC Observation) o o Assessment methods Infrastructure Training The factory

Assessment methods for improvement o Japanese firms identify the areas that need improvement for competitive reasons and target those areas for improvement. o They don't try to fix everything; they are very specific (very focus).

Assessment methods o They continuously design products for reduced size and cost and use new technologies only when performance problems arise. o As a result, most known technologies have predictable reliability characteristics.

Infrastructure o The incorporation of suppliers and customers early in the product development cycle o This has given Japanese companies an advantage in rapid development of components and in effective design of products.

Training o The Japanese view of training is best exemplified by Nippondenso. o The company runs its own two-year college to train production workers.

Training o Managers tend to hold four-year degrees from university engineering programs. o Practical training in areas such as equipment design takes place almost entirely within the company.

The factory o Japanese factories pay attention n n to to running equipment well, continuous improvement, cost reduction, and waste elimination.

Total preventive maintenance (TPM) o TPM is a methodology to ensure that n equipment operates at its most efficient level, and n that facilities are kept clean o so as not to contribute to reliability problems.

Total preventive maintenance (TPM) o In fact, the Japan Management Association gives annual TPM (Total preventive maintenance) awards with prestige similar to the Deming Prize. o receipt of those awards is considered a required step for companies that wish to attain the Japan Quality Prize. [Similar to Malaysian Quality Management Excellence Award (QMEA)]

Quality Improvement through Comprehensive Waste Reduction o Fundamental improvement means working to eliminate wastes that can negatively affect product quality, cost, and delivery time. o The Japan Management Association published a book describing the activities of Canon Corporation, Canon Production System: Creative Involvement of the Total Workforce, that outlined a number of approaches to improve quality and reliability through "waste reduction" strategies (JMA 1987, 19 -22).

Comprehensive Waste Reduction o These include the elimination of waste associated with n n n n defective products, systems planning, work-in-process, human resources, equipment, expenses, and excessive startup time for new products. o Most Japanese electronics firms now incorporate waste reduction as a central part of their TQM programs.

HISTORY OF QUALITY EVOLUTION IN MALAYSIA o Several crucial historical events played very important roles in the history of quality evolution in Malaysia. o The first one was the launching of the Malaysian look east policy in the early 1980’s, and

PMQA and QMEA o the second event happened very much later in the early 1990’s when two quality awards namely n Prime Minister Quality Award (PMQA) and n Quality Management Excellence Award (QMEA)

PMQA and QMEA o These two awards were introduced to encourage quality excellence among the public and private sector.

The Look East Policy (LEP) o In July 1981, Prime Minister Dato' Seri Dr. Mahathir bin Mohamad became the Prime Minister of Malaysia. o After six months in his office, he announced an initiative to learn from the experiences of Japan (and Korea) in the nation-building of Malaysia.

The Look East Policy (LEP) o He considered that the secret of Japanese success and its remarkable development lies in its n labor ethics, n morale, and n management capability

The LEP o He felt a program enabling the young Malaysians to learn in Japan would contribute to the economic and social development of Malaysia. o For this purpose, Malaysia decided to dispatch their students to Japan, to study not only academics and technical know-how but also to learn labor ethics and discipline of the Japanese people.

LEP Programs o This initiative is called "Look East Policy. " The program consists of two parts. 1. The first is to send Malaysian students to Japanese universities and institutes of technology. 2. The second is to send trainees to Japanese industries and training institutes.

LEP Programs o These programs are funded by n the Government of Malaysia, and n the Government of Japan supports these programs by sending Japanese teachers to Malaysia and also by sharing a part of its costs.

Rationale of LEP o This policy is designed to emulate the ways of the developed countries in the East such as Japan, and South Korea. o Dr. Mahathir bin Mohamad considered that the secret of the Japanese success and its remarkable development lies in its labor ethics, morale, and management capability.

Rationale of LEP o The ‘Look East’ was a framework for learning from successful Japanese and South Koreans, and adapting some of the applicable values into Malaysian needs.

Objective of LEP o The main objective of this policy is to increase the quality of management among the workers as well as o creating a community with good value and positive working ethics with the aim of accelerating Malaysia’s development.

Implementation of LEP o The programs arranged can be divided into three categories. 1. Change in Structure – Advocate in the use of punch cards, nametags, table files, and manual on work procedures among workers and also implementing counter service. 2. Change in Behaviors – Implementation of ‘Clean, Efficient, and Trustworthy’ concept, ‘Leadership through Example’ slogan, and the establishment of Quality Control Circle (QCC). 3. Courses and Trainings – Programs such as technical and academic studies and intensive training for the executive staff and entrepreneur.

The details of the Look East Policy programs are as follows: 1. ACADEMIC EDUCATION PROGRAM (AEP) 2. TECHNICAL EDUCATION PROGRAM (TEP) 3. JAPANESE LANGUAGE PROGRAM FOR MALAYSIAN TEACHERS (JLPMT) 4. INDUSTRIAL AND TECHNICAL (IN-PLANT) TRAINING PROGRAM (ITTP) 5. SHORT TERM TRAINING FOR MALAYSIAN EXECUTIVES (STME) 6. BUSINESS MANAGEMENT TRAINING AND ATTACHMENT PROGRAMME WITH JAPANESE COMPANIES (BMT)

Continuity of LEP o At the Twelfth Annual Meeting on the Look East Policy held in May 1995, Malaysia reaffirmed that the Program will continue until the year 2000. o In January 1997, when Prime Minister Mr. Hashimoto visited Malaysia, Prime Minister Dato' Seri Dr. Mahathir bin Mohamad stated that the Program will continue beyond the year 2000.

The Prime Minister Quality Award (PMQA) and Quality Management Excellence Award (QMEA) o There are two awards of quality excellence in Malaysia: 1. The awards are the Prime Minister Quality Award (PMQA) and 2. Quality Management Excellence Award (QMEA).

The Prime Minister Quality Award (PMQA) and Quality Management Excellence Award (QMEA) These two awards have one thing in common: o they emphasize quality excellence among the public and private sector.

The Prime Minister Quality Award (PMQA) o The Prime Minister Quality Award (Private Sector) was first introduced on 9 th November 1990. o This annual national quality award is given to organizations in private sector in recognition for their excellent achievement in quality management. o Winning the award is a prestigious accomplishment, as the Prime Minister Quality Award is a proof of Organizational Excellence.

Objectives of PMQA 1. Promote Quality Awareness among various organizations in the private sector category. 2. Promote the adoption of Quality values in organizations. 3. Encourage healthy competition among organizations towards continuous improvement of quality. 4. Encourage Information Sharing on successful performance strategies and the benefits derived from using these strategies.

The PMQA Recipient's Responsibilities and Contributions o The Award recipient is required to share information of its successful performance and quality strategies with other Malaysian organizations. o However, the recipient is not required to share proprietary information even if such information is part of the award application.

Incentives of PMQA o The recipient of the Award will receive and enjoy the following benefits: 1. The Prime Minister Quality Award (PMQA) Trophy. 2. Cash prize of RM 30, 000. 3. Certificate of Appreciation. 4. Eligible to use the Q Symbol for publicity purposes for three years from the date of receiving the award.

Past Winners of Prime Minister Quality Award (PMQA) 2004 Tioxide (Malaysia) Sdn Bhd Teluk Kalung, Terengganu 2003 Subang Jaya Medical Centre Sdn. Bhd. - Petaling Jaya, Selangor 2002 Infineon Technologies (M) Sdn. Bhd - Melaka 2001 Samsung SDI(M) Bhd. – Seremban, Negeri Sembilan 2000 Intel Technology Sdn. Bhd. - Bayan Lepas, Pulau Pinang 1999 Asean Bintulu Fertilizer Sdn. Bhd. - Petaling Jaya, Selangor 1998 Subang Jaya Medical Centre Sdn. Bhd. - Petaling Jaya, Selangor 1997 Shangri-La Hotel Kuala Lumpur - Kuala Lumpur 1996 Selectron Technology Sdn. Bhd. – Prai, Pulau Pinang 1995 Projek Lebuhraya Utara Selatan Bhd. (PLUS) - Kuala Lumpur 1994 Siemens Semiconductor Sdn. Bhd. – Bayan Lepas, Pulau Pinang 1993 SGS-Thompson Micro Electronics Sdn. Bhd. – Muar, Johor 1992 Matsushita Industrial Corporation Sdn. Bhd. - Petaling Jaya, Selangor 1991 Motorola Malaysia Sdn. Bhd. - Petaling Jaya, Selangor 1990 Intel Technology Sdn. Bhd. - Bayan Lepas, Pulau Pinang

Quality Management Excellent Award (QMEA) o Ministry of International and Industry (MITI), Malaysia, has introduced the Industry Excellence Award in 1990. o NPC (National Productivity Corporation) is appointed by MITI as the secretariat for the QMEA.

Objectives of QMEA 1. To give due recognition to excellent organizations. 2. To enhance quality awareness and practices in management of excellence. 3. To encourage the production of quality products or services. 4. To promote information sharing on successful performance strategies and strategy implementation benefits.

Categories of Participation in QMEA

The QMEA Recipient's Responsibilities and Contributions o The Award recipient is required to share information of its successful performance and quality strategies with other Malaysian organizations. o However, the recipient is not required to share proprietary information even if such information is part of the award application.

Incentives of QMEA o A trophy and a certificate o Eligible to use the logo of the Award for publicity purposes for three (3) years from the date of receiving the award. o To be featured in MATRADE's Publication and given space to advertise company product/services in MATRADE's export directory. o To be nominated for the Prime Minister's Quality Award (PMQA) (with exception of the Export Excellence Award Services). o 20% discount on any program organized by NPC;

Past Winners of QMEA

THE END OF UNIT 2 THANK YOU FOR YOUR ATTENTION