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‡ Introduced the Zero Defects program at Martin-

Marietta in the early 1970s
‡ Published |

 in 1979 after fourteen
years as a vice president at International
Telephone & Telegraph (ITT)
‡ Started the management consulting group Philip
Crosby Associates, Inc. (PCA) in 1979
 ÿ
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|uality Concepts and Principles

|uality Management Maturity Grid
Fourteen-Step |uality Improvement Program
Real-Life Example
Hands-On Exercise
 ÿ
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+ 
,

‡ A quality program can save a company more

money than it costs to implement
‡ Profitability is best accomplished by reducing the
cost of poor quality and preventing defects
‡ Cost savings include prevention, appraisal, and
failure costs.
  
- )
+

‡ Management participation and attitude

‡ Professional quality management
‡ Original programs
‡ Recognition
   '.

  
‡ |uality means goodness, ‡ |

 

 
elegance   

‡ |
 
 
‡ |uality is intangible, not   


 


measurable ‡ 
  

‡ The ³economics of quality´  
are prohibitive, not relevant ‡    


‡ |uality problems originate 




  

with the workers ‡ |


‡ |uality is the responsibility 




 

of the quality department
 .



|




‡ Listening ‡ Implementing
‡ Cooperating ‡ Learning
‡ Helping ‡ Leading
‡ Transmitting ‡ Following
‡ Creating ‡ Pretending


/  ,

‡ Evaluate your organization¶s position on the

|uality Management Maturity Grid
‡ Implement the fourteen-step |uality
Improvement Program
 |


 


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‡ Five stages of an organization¶s maturity

‡ Six measurement categories
± Management understanding and attitude
± |uality organization status
± Problem handling
± Cost of quality as a percent of sales
± |uality improvement actions
± Characteristic statement
 


(-
01



‡ |uality is the responsibility of the quality department

‡ |uality is hidden within manufacturing or engineering;
no inspection
‡ Problems are fought as they occur.
‡ The cost of quality is unknown. In reality it is about
20%.
‡ There are no organized quality improvement activities.
‡ ³We don¶t know why we have problems with quality.´
 


(-
0


‡ While quality management may be valuable, the

organization is not willing to commit resources.
‡ A quality leader is appointed, but the emphasis is on
appraisal and moving the product.
‡ Teams address major problems, but long-range
solutions are not solicited.
‡ The cost of quality is reported at 3%, but is actually
18%.
‡ Activities are limited to short-range, motivational
efforts.
‡ ³Why do we always have problems with quality?´



(-
0.  

‡ Management adopts a supportive and helpful stance.

‡ |uality is elevated to a functional level equivalent to
engineering, marketing, etc.
‡ Problems are resolved openly and in an orderly way.
‡ The cost of quality is reported as 8%, though it is
really about 12% of sales.
‡ The fourteen-step quality improvement program is
implemented.
‡ ³We are identifying and resolving our problems.´
 


(-
20ÿ(

‡ Top management participates in and understands

quality.
‡ The quality manager is an officer of the company.
‡ Problems are identified in early development.
‡ The cost of quality is reported as 6.5%. It may be 8%.
‡ The quality improvement program is continual and
accompanied by follow-up training.
‡ ³Defect prevention is a routine part of our operation.´
 


(-
20



‡ |uality is an essential part of the organization.

‡ A quality manager serves on the board of directors.
‡ Problems are prevented.
‡ The cost of quality is reported as 2.5%, which is what
it really is.
‡ |uality improvement is normal and continual.
‡ ³We know why we do not have problems with
quality.´


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(
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‡ ³Improvement itself is never the real difficulty.

Once individuals recognize and agree on their
position, it is never difficult to improve.´
‡ ³What works in one industry to improve quality
will work in others²if you take the time to
understand quality and its content.´
 |
3

4

-
 

‡ ³A lot of problems will be avoided if you lay out

a clear policy covering the entire quality
operation«Keep it simple, and you will have the
reasonable expectation of having someone read
it.´
‡ ³|uality operations should always report at the
same level as those departments they are charged
with evaluating.´
 
(
 

‡ ³Operations that truly want to handle problems,

for the purpose of solving them must create an
open society within their walls that is imbued
with the basic concepts of integrity and
objectivity.´
‡ ³Objectivity comes with not placing the blame for
problems on individuals. Aim the questions and
probing at the job.´
 |
53|6

‡ ³|uality is free, but no one is ever going to know

it if there isn¶t some sort of agreed-on system of
measurement.´
‡ ³The purpose of calculating CO| is really only to
get management¶s attention and to provide a
measurement base for seeing how quality
improvement is doing.´
 |
 
' '

‡ ³Real improvement just plain takes a while to

accomplish.´
‡ |uality management is ballet, not hockey. ³A
ballet is deliberately designed, discussed,
planned, examined, and programmed in detail
before it is performed.´
 
-|
 
' 

1. Management commitment with an emphasis on

defect prevention and visibility
2. |uality improvement teams composed on
members of each department or function²all
the necessary tools
3. |uality measurement to monitor the status and
improvement of activities
 
-|
 
' 

o. Cost of quality evaluation by the comptroller

for accurate figures
5. |uality awareness by communicating the cost
of quality, encouraging discussion
6. Corrective action to ingrain a habit of
identifying problems and correcting them
 
-|
 
' 

7. An ad hoc committee to advocate ³zero defects´

8. Supervisor training so that all managers
understand the programs and can explain it
9. Zero Defects Day to establish ³zero defects´ as
the organizational standard
10. Goal setting as teams, specific and measurable
 
-|
 
' 

11. Removing the causes of defects, as described by

individual workers, so that the people know
their problems are heard and answered
12. Genuine recognition for achievement
13. |uality councils of quality professionals and
team chairs for status information and ideas
1o. Do it over again²repetition makes the program
perpetual
 7
ÿ
(.8


‡ Alberto Wisbeck took the job of top manager at

Siemens¶ worst factory in Jinan, China.
‡ Production capacity was low and the cost of raw
materials was 67% of sales.
‡ If efficiency did not improve, the factory would
be closed.
 ÿ
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‡ Wisbeck focused on improving quality and

meeting customer needs
‡ Following the 1o-step quality improvement
program, he encouraged workers and supervisors
to identify the processes and procedures that were
causing problems.
‡ Following training, top managers implemented
projects in their own work areas
 ÿ

 
 ,

‡ By focusing on faulty work processes, the

managers avoided reprimanding their workers²a
critical cultural requirement.
‡ Over 300 projects saved the company $60o,000
annually and the plant rose to rank as Siemen¶s
#2 plant.
 

.8


‡ Cost of quality is a necessary measurement

± To persuade management to address quality issues
± To monitor the progress of improvement programs
‡ Do you know the cost of quality in your unit or
division? Can you calculate it as a percentage of
sales?
 

.8


‡ Remember, the cost of quality includes

prevention, appraisal, and failures.
‡ If your organizations does not currently measure
and report cost of quality, it may actually equal
20% of sales
 -



‡ |uality is free, but it is not a gift. It is hard work.

‡ |uality improvement has as much to do with
converting people as solving problems.
‡ Managers can use Crosby¶s |uality Management
Maturity Grid and 1o-Step |uality Improvement
Program to help their people prevent and
eliminate defects.
  
 

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