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Lecture 3 – Global Issues. Global Supply Chain Quality International Standards Awards & Prizes. Multinational Supply Chains. Licensing Partnering Globalization. Japanese Quality. Japanese Quality. Postwar (WW II) activity Deming Prize Lean operations and quality

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Lecture 3 global issues

Lecture3 – Global Issues

Global Supply Chain Quality

International Standards

Awards & Prizes

SJSU Bus 142 - David Bentley


Multinational supply chains
Multinational Supply Chains

  • Licensing

  • Partnering

  • Globalization

SJSU Bus 142 - David Bentley


Japanese quality

Japanese Quality

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Japanese quality1
Japanese Quality

  • Postwar (WW II) activity

  • Deming Prize

  • Lean operations and quality

  • Shigeo Shingo (7 wastes)

  • The 5 S’s

SJSU Bus 142 - David Bentley


Postwar japan
Postwar Japan

  • Limited natural resources

  • Reduced production capacity

  • Strategy for developing international trade based on quality and efficient production

  • Assistance from U.S. occupation forces

  • Recognition of Deming’s contribution

SJSU Bus 142 - David Bentley


Deming prize background
Deming Prize Background

  • Awarded by Japan: Union of Japanese Scientists and Engineers (JUSE)

  • First awarded in 1951

  • Named after W. Edwards Deming

  • Categories

    • Deming Application Prize

      • Sub-categories abolished in 1995

      • For divisions (until 1994)

      • For small businesses (until 1994)

    • Deming Prize for Individuals

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Deming award areas
Deming Award Areas

  • Application Prize winners

    • Most winners before 2001 were Japanese

      • U.S. winners: Florida Power & Light (1989), AT&T Power Systems (1994),Sanden International (2006)

    • Most winners since 2001 Indian, Thai

  • Individual Prize winners

    • All Japanese

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Deming categories 1
Deming Categories – 1

  • Policy

  • Organization and operations

  • Collecting and using information

  • Analysis

  • Planning for the future

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Deming categories 2
Deming Categories – 2

  • Education and training

  • Quality assurance

  • Quality effects

  • Standardization

  • Control

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Lean operations
Lean Operations

  • Emphasis on value

  • Focus on elimination of waste

  • Development of tools and techniques over time

  • The Toyota Production System

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Toyota production system
Toyota Production System

  • Taiichi Ohno (1912 - 1990)

    • “Father of the Toyota Production System”

    • System also known as “Lean Manufacturing”

    • Toyota executive and consultant to suppliers

  • Shigeo Shingo (1902 – 1990)

    • External consultant to Toyota

    • Poka-Yoke (mistake proofing)

    • Setup reduction (SMED)

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Shingo s 7 wastes
Shingo’s 7 Wastes

  • Waste of overproduction

  • Waste of waiting

  • Waste of transportation

  • Waste of processing itself

  • Waste of stocks

  • Waste of motion

  • Waste of making defective products

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The 5 s s organizing eliminating waste
The 5 S’s(Organizing / Eliminating Waste)

  • Seiri(“Separating”): get rid of unnecessary

  • Seiton(“Sorting”): orderly workplace

  • Seiso(“Cleaning”): eliminate hidden problems

  • Seiketsu(“Standardizing”): locations and processes

  • Shetsuke(“Sustaining”): discipline in maintaining the other 4

SJSU Bus 142 - David Bentley


Other japanese characteristics
Other Japanese Characteristics

  • Involvement of all workers in the company

  • Quality Circles - Kaoru Ishikawa (1915-1989) (as implemented in the U.S.)

    • Limited authority

    • Focus within department

    • Often seen as added work

    • Ongoing

  • Preventive maintenance

  • Deming Individual Prize Winner (1952)

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American quality

American Quality

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American quality1
American Quality

  • Preoccupation with quantity for years

  • Reliance on inspection (“Quality Control”)

  • Effect of oil embargos in the 1970s

  • Malcolm Baldrige Award

  • President’s Quality Award (PQA) (???)

  • Six Sigma

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Malcolm baldrige award
Malcolm Baldrige Award

  • Awarded by US Department of Commerce (National Institute of Standards and Technology)

  • 1987 legislation

  • Named after Malcolm Baldrige (Howard Malcolm “Mac” Baldrige - American industrialist and former Secretary of Commerce)

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Baldrige award areas
Baldrige Award Areas

  • Original award areas: Manufacturing, Service, Small Business

  • Education added in 2001

  • Health care added in 2002

  • Non-profit added in 2007

  • Local winners

    • Granite Rock (1992)

    • Solectron Corp. (1991, 1997)

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Baldrige award categories
Baldrige Award Categories

  • Leadership

  • Strategic planning

  • Customer and market focus

  • Information and analysis

  • Human resource focus

  • Process management

  • Business results

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Six sigma quality 1
Six Sigma Quality - 1

  • Latest popular approach to Quality

  • Overall objective is to find and eliminate causes of defects in manufacturing and service processes

  • ± 6 standard deviations (6) from the process mean = 0.0003% defects

  • Represents a goal 6 ….. 6 ….. 6 

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Six sigma quality 2
Six Sigma Quality - 2

  • Concept developed at Motorola by Bill Smith

  • Best in class = General Electric

  • Certification from ASQ on processes to support Six Sigma

  • Many consulting and training firms on how to implement Six Sigma

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Six sigma at ge
Six Sigma at GE

  • “The central idea behind Six Sigma is that if you can measure how many ‘defects’ you have in a process, you can systematically figure out how to eliminate them and get as close to ‘zero defects’ as possible.”

    Making Customers Feel Six Sigma Quality

SJSU Bus 142 - David Bentley


Other awards prizes
Other Awards & Prizes

  • President’s Quality Award [PQA] (US) (???)

  • European Foundation for Quality Management (Europe) (see next slide)

  • National Quality Institute (Canada)

  • Business Excellence Award (Australia)

  • Etc., etc., etc.

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European quality award
European Quality Award

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Value of awards prizes
“Value” of Awards & Prizes

  • Shows effort

  • May largely be dependent on money spent

  • Used in advertising (e.g., Cadillac – 1990)

  • Might not reflect customer view

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Chinese quality

Chinese Quality

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Chinese quality1
Chinese Quality

  • Historic high quality of porcelain, silk, etc.

  • Rapid change in manufacturing in last 15 years

  • Little infrastructure for appraising and certifying quality of subcontractors and suppliers

  • Recent recalls: pet food, toys, tires, toothpaste, etc.

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Iso standards

ISO Standards

International Organization for Standardization (ISO)

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Iso basics
ISO Basics

  • Network of national standards bodies in 162 countries

  • Based in Geneva, Switzerland

  • Seeks consensus for international standards

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Old iso 9000 standards
“Old” ISO 9000 Standards

  • ISO 9000 (series)

  • ISO 9001(design, develop, produce, install, service)

  • ISO 9002 (no design and development)

  • ISO 9003 (final inspection and testing)

  • ISO 9004 (QMS application guidelines)

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Current iso standards
Current ISO Standards

  • ISO 9000 family – “Quality management”

    • ISO 9001:2008 (QMS - Requirements)

  • ISO 14000 family – “Environmental management”

    • ISO 14001:2004 (EMS - Requirements)

  • ISO 19011:2002 (Guidelines on Quality and/or Environmental Management Systems Auditing)

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Related iso standards
Related ISO Standards

  • ISO 10005:2005 (Quality management – Guidelines for quality plans)

  • ISO 10006:2003 (Quality management – Guidelines to quality in project management)

  • ISO 10007:2003 (Quality management – Guidelines for configuration management)

  • ISO/DIS 10012:2003 (Quality assurance requirements for measuringequipment)

  • ISO 10014:2006 (Guidelines for managing the economics of quality)

  • ISO 10015:1999 (Guidelines for training)

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Iso 9000 principles
ISO 9000 Principles

  • Customer focus

  • Leadership

  • Involvement of people

  • The process approach

  • A systems approach to management

  • Continual improvement

  • Factual approach to decision making

  • Mutually beneficial supplier relationship

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Iso registration process
ISO Registration Process

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Automotive industry
Automotive Industry

  • QS-9000 (through 2006)

    • Common supplier quality standard

    • Used by Ford, GM, Chrysler

    • Based on ISO 9001:1994

  • ISO/TS 16949:2009

    • Quality systems – Automotive suppliers – Particular requirements for the application of ISO 9001:2008

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Iso registration certification
ISO Registration (Certification)

  • What’s been good

    • Focus on quality

    • Demonstrates effort

  • What was bad (mostly fixed in ISO 9000:2000)

    • Became mechanical

    • Emphasized conformance to documentation, not meeting QUALITY

    • Didn’t include customer view

SJSU Bus 142 - David Bentley


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