Philip B.

Crosby
Quality Control Guru
By Michael Roberts Joe Prather Blas Tenorio Andrew Peterson Andrew Sizelove

Summary
History Philosophy Acknowledgements Case Study

History
Was born in Wheeling, West Virginia on June 18, 1926 Crosby is a graduate of the Western Reserve University One early experience was as quality manager on the first Pershing missile programme Crosby began his career as a quality professional in 1952 after serving in World War II and the Korea War. Crosby was the corporate Vice president for the international Telephone Telegraph, world-wide responsibilities for quality .

History
1979, he founded Winter Park-based Philip Crosby Associates, Inc. Helped to counsel organization and corporations prevent problems rather than fix them, through quality processes. In 1991, he retired from PCA and founded Career IV, Inc., provided training for executives In 1997, he purchased the assets of PCA and established Philip Crosby Associates II, Inc. http://www.philipcrosby.com/pca/index.html

History
Crosby wrote 13 books, all of which were bestsellers. Quality is Free, Quality Without Tears, Running Things, The Eternally Successful Organization and Leading: The Art of Becoming An Executive, Zero Defects, His first business book, Quality is Free has been credited with beginning the quality revolution in the US and Europe. It sold over 2.5 million copies and was translated into 15 languages. He is the creator of the zero defects concept of quality management.

Crosby
Quality is not only free, its an honest to everything profit maker. Every penny you dont spend on doing things wrong, over, or instead of, becomes half a penny right on the bottom line. In these days of Who knows what is going to happen to our business tomorrow, there arent many ways to make a profit improvement. If you concentrate on making quality certain, you can probably increase your profit by an amount equal to 5% to 10% of you sales. Thats a lot of money for free.

 Crosby advocated the "zero-defects" program adopted by the US federal government defining quality as "conformance to requirements". He emphasized prevention rather than inspection (audits) and promoted a definition of quality as "meeting the customers requirements the first time and every time"

Crosby's Quality Improvement Process is based upon the...

Four Absolutes of Quality Management: 1. Quality is defined as conformance to requirements, not as 'goodness' nor 'elegance'. 2. The system for causing quality is prevention, not appraisal. 3. The performance standard must be Zero Defects, not 'that's close enough'. 4. The measurement of quality is the Price of Non-conformance, not indices.
http://www.simplesystemsintl.com/quality_gurus/P_B_Crosby.htm#23

TQM
Total Quality Management (TQM) is a participative management style that stresses total staff commitment to "customer" satisfaction. It is a holistic approach to managing complex organizations and replaces topdown management with decentralized customer-driven decision making. Total Quality Management is an integrated management system for creating and implementing a continuous improvement process -eventually producing results that exceed customer expectations. It is based on the assumption that 90 percent of problems are a result of process, not employees.

TQM page 2
The development of TQM can be traced to several consultants including Deming, Juran and Crosby. TQM is a process and strategy that in certain situations can improve an organization's effectiveness and efficiency.

TQM page 3
TQM places responsibility for quality problems with management rather than on the workers. A principal concept of TQM is the management of process variation which seeks to identify special and common needs. The objective of TQM is the continual improvement of processes, achieved through a shift in focus from outcomes (or products) to the processes that produce them. TQM achieves its objective through data collection and analysis, flow charts, cause and effect diagrams, and other tools which are used to understand and improve processes.

Crosbys Philosophy
1.
The 5 Absolutes of Quality Quality is defined as conformance to requirements, not as elegance or goodness There is no such thing as a quality problem It is always cheaper to do it right the first time The only performance measure is the cost of quality The only performance standard is zero defects

2. 3. 4. 5.

14 Steps to Improvement
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Establish management commitment Form a quality team Establish quality measures for each activity Evaluate cost of quality and indicate where corrective actions will lead to profit gains Create awareness in employees by training supervisors with appropriate materials Instigate action by encouraging employees to fix defects or ntify someoine who can fix them Designate a committee to find how to implement zero defects program Train employees and supervisors so they understand the steps Hold a ZD day to demonstrate company commitment Employees set goals on a 30, 60 or 90 day schedule Identify the causes of errors and remove them from processes Initiate award programs to award employees who meet their goals Establish Quality Councils and hold regular meetings Do it all over again.

Strengths
Approach is very clear and creative, and is supported by several tools that are easy to grasp Emphasizes worker participation (not just management), worker recognition Strong motivator Leadership

Weaknesses
Considered by some to be gimmicky Can be conceived as putting the blame on workers, which may lead to negative attitudes can mislead supervisors to think they have little impact 14 step plan is criticized for being too management and goal oriented Zero Defects can be misleading Requires the organization to accept and welcome changes

Crosby Acknowledgements
Vice President, Quality at International Telephone & Telegraph (ITT) Philip B. Crosby has written numerous books on quality management and has had many years of experience in this field. He is considered to be a leading Guru in quality management. His systems have been successfully introduced in many organizations, e.g. at ITT which saved $720 million as a result of implementing his quality process program, and at HPA Corporation Appliance Division.

Crosby Acknowledgements (cont)

Established Crosby College to train business people about his version of Quality. Famous for coining expression such as "zero defects" and "do it right the first time" Crosby has synthesized his views on Quality in a 14-point declaration. Strongly humanistic in his views, Crosby tells us that we should "always assume that people are vitally interested in the quality improvement process" He then assures us that people will act to fulfill our conviction. "Assume the best and that is usually what happens" he encourages us.

Crosby Acknowledgements (cont)

Phillip Crosby has also played an important role in popularizing the quality approach. He developed what was named the Quality College in 1980, where an estimated five million people eve attended courses (Lewis and Smith 1994). More than 40 years as the developer and innovator of the principles of Quality Management He is considered the Father of Zero Defects. Some of Crosbys own proverbs about quality are: 1. Supervisors are always right. The supervised are always wrong, even when theyre right. 2.When only a few know, nothing will ever get finished. 3.Theres nothing like a serious illness to stimulate the creative process.

Crosby Acknowledgements (cont)

Crosbys book Quality is Free has been written with the intention of convincing the reader that quality can be achieved with time, patience, hard work, determination and putting the right systems in place. Crosby considers himself to be a professional manager who communicates through writing and other means. Throughout this book he explains that total quality management (TQM) is one of the most important ways of increasing the bottom line (profits) of a company and that a companys target in quality should be to achieve Zero Defects. In the first part of his book, Making Quality Certain, he dealt with the aspect of peoples (particularly top management) paradigms in relation to quality and communicating with them so that these can be altered.

Crosby Acknowledgements (cont)

Crosbys concept was developed to help managers of small businesses or large organizations see how well quality control can work.

The Quality Management Maturity Grid is used so that we know where our organization is at and as a means to move from disbelief and doubt to the conviction that quality is imperative to the success of our organization The three systems used by Crosby in his quality program are: 1. Quality Management Maturity Grid - measures present systems and pinpoints areas needing improvements 2. Quality Improvement Program - a fourteen-step procedure that was established through his work at the ITT Corporation 3. Make Certain Program - a person-to-person, white-collaroriented improvement program to prevent defects

Crosby Acknowledgements (cont)

Crosby states that, when establishing a quality improvement process, the requirements would be: Management participation Establishment of a professional quality team Quality improvement through prevention of defects Empowerment of all staff and recognition of all involved in this achievement

Nelson Nameplate Co.

Location: Los Angeles, CA Employment: Over 300 Industry: Nameplates, graphic overlays

Company Motto

Every employee of the company must have a complete education in the understanding of quality and what it means to him or her and the company

QIP
Quality Improvement Process was begun in 1990 based on Crosbys concepts Why QIP?
Appraisal-based Prevention/continuous improvement based quality system

ECR
Error Cause Removal System
Any employee can identify and easily report:
Problems Errors Waste Opportunity Other concerns

Impact of QIP Over the Past Decade

Revenue tripled Cost of quality decreased from 30% to 18% of sales Employee turnover dropped fourfold
Average employment period is now over 10 years

Increased business for suppliers Enabled Nelson to move to a state-of-the-art 117,000 square foot facility in the fall of 1999.

Nelson Today
ISO 9002 certified AS 9100 (pursuing) QIP leaders changed every two years Open book management Profit sharing based on team performance

Any Questions???