This Month in News Digest

Juran Honors Japanese Quality at His 100th Birthday Event

The United States faces losing its status as an economic superpower unless it improves the quality of its products and services, according to Joseph M. Juran, a pioneer in the quality management movement. Juran, who recently spoke at a celebration in honor of his 100th birthday, also outlined his vision of how world-class organizations achieve quality excellence.

“Japan used revolutionary improvements in quality to become an economic superpower,” he said. “Unless the United States improves the quality of its products and services, it could lose its status as an economic superpower.”

Juran outlined what steps Japanese organizations took to become quality leaders, including:

Directing the quality revolution from the senior management level

Training the entire managerial hierarchy in quality principles

Striving to improve quality at a revolutionary rate

Reporting progress on quality goals to executive levels

Involving the workforce in quality through the use of quality control circles

Revising the reward and recognition structure to include quality

Management in U.S. organizations relies more on trade barriers than improving quality and on slogans and banners rather than investing in quality improvement, claims Juran.

“We’re at an impasse,” he says. “We know what to do, but most companies aren’t doing it.” Juran recommends that organizations adopt the following model:

Form a corporate quality committee consisting of senior executives.

Give the corporate quality committee the same level of authority and responsibility as the corporate finance committee.

Have the vice president of quality act as the secretary of the corporate quality committee.

Develop quality goals as business goals.

Audit the goals and report the outcome directly to senior management.

Juran’s Legacy

Although Juran’s 100th birthday isn’t until Dec. 24, the Juran Institute decided to jointly honor him, the Institute’s 25th anniversary and the 50th anniversary of Juran’s first trip to Japan. The celebration took place on May 6, in Stamford, Connecticut. Juran’s life and work were honored by dozens of speakers from around the world.

After accepting an invitation from Japanese business leaders and government agencies, he was integral in restructuring Japanese quality processes and marked a turning point in Japan’s economic development.

“We thank Juran for his unsurpassed contributions to the field of quality and for his continued support and leadership,” notes Joseph A. De Feo, president and CEO of Juran Institute.

Juran’s memoirs, Architect of Quality: The Autobiography of Dr. Joseph M. Juran (McGraw-Hill, 2003), is available through the Juran Institute Web site at www.juran.com.

Quality Digest Editor in Chief Scott Paton discusses his personal experience at Juran’s birthday celebration and other meetings with the quality leader in First Word of this issue.

ISO Offers Free ISO 9001:2000 Auditing Kit

Twenty guidance modules on specific aspects of auditing ISO 9001:2000 quality management systems are now available from the International Organization for Standardization, and another three are being developed.

The guidance modules that compose the auditing kit adopt a practical approach for examining quality management systems. They have been developed mainly for registrar personnel carrying out quality system audits for organizations seeking ISO 9001:2000 registration as independent confirmation of their implementation of the standard.

The kit may also be useful to staff carrying out internal audits to provide assurance to managers about their quality management system’s performance, as well as to consultants and trainers.

The modules are being developed by the ISO 9001:2000 Auditing Practices Group established by ISO and the International Accreditation Forum, the grouping of national accreditation bodies that verify the competence of certification bodies.

The guidance modules aren’t endorsed by ISO and aren’t a product of its standards-development processes. They’re intended to provide additional assistance to ISO 9001:2000 users without modifying any of the requirements of the standard.

The 20 documents already developed by the APG address the following issues in ISO 9001:2000 auditing:

The need for a two-stage approach to auditing

Measuring QMS effectiveness and improvements

Process identification

Understanding the process approach

Determination of “where appropriate” processes

Auditing the “where appropriate” requirements

Demonstrating conformity to the standard

Linking an audit of a particular task, activity or process to the overall system

Auditing continual improvement

Auditing a QMS that has minimum documentation

Auditing top management processes

Defining the scope of ISO 9001:2000 QMSs and registration

Software Engineering Finds Quality With ISO/IEC 90003:2004

Given the presence of information technology in virtually every business sector, the International Organization for Standardization sees huge potential in applying the ISO 9001:2000 quality management standard to software engineering.

ISO/IEC 90003:2004, Software engineering--Guidelines for the application of ISO 9001:2000 to computer software, covers development, supply, acquisition, operation and maintenance of computer software.

“In addition to providing guidance on how to implement the highly successful ISO 9001:2000 approach in a software environment, the publication of ISO 90003 heralds an important event for the software engineering world,” says Victoria Hailey, convener of the group that wrote ISO/IEC 90003:2004. “It brings unity to what has been an increasingly fragmented approach, given the sheer number of software engineering standards being developed.”

ISO/IEC 90003:2004 is applicable to software that’s part of a commer-cial contract with another organiza-tion, products available for market sectors, those used to support the organ-izational processes, hardware-embedded applications or those related to software services. ISO/IEC 90003:2004 is not in itself a certification standard and is intended to be a useful guide whether or not the organization seeks ISO 9001:2000 registration.

ISO/IEC 90003:2004 is available from ISO national member institutes. For more information, visit www.iso.org.

JetBlue Ranks No. 1 in Quality

The annual Airline Quality Rating has ranked JetBlue the highest-quality airline in the industry. This year marks the first time JetBlue was large enough to be eligible for the study, having at least 1 percent domestic passenger volume during the calendar year.

The AQR is a weighted average of criteria deemed most important to customers, including on-time flights, denied boardings, mishandled baggage and customer complaints, (e.g., discrimination, customer service, in-flight problems, fares and refunds).

JetBlue topped the declined boardings criterion with zero per 10,000 passengers. US Airways, which ranked No. 1 last year, dropped to fifth, and Alaska Airlines remained at No. 2.

The 14 airlines studied were ranked as follows:

1. JetBlue Airways

2. Alaska Airlines

3. Southwest Airlines

4. America West

5. US Airways

6. Northwest Airlines

7. Continental Airlines

8. AirTran

9. United Airlines

10. ATA

11. American Airlines

12. Delta Airlines

13. American Eagle

14. Atlantic Southeast

“The AQR score shows an industry that is improving in quality relative to customer performance criteria,” states the report, prepared by Brent D. Bowen of the University of Nebraska at Omaha Aviation Institute and Dean E. Headley of the Wichita State University W. Frank Barton School of Business. “Of the carriers rated in both 2002 and 2003, only American Airlines and US Airways show declines in their overall AQR scores for 2003.”

The report goes on to state that 2003’s overall industry score was slightly better than in 2002, despite the decreased percentage of on-time arrival (82% in 2003 from 82.1% in 2002). Involuntary denied boardings per passenger increased from 0.72 per 10,000 passengers in 2002 to 0.86 per 10,000 passengers in 2003. Mishandled baggage rates increased, but consumer complaint rates improved.

For the entire report, visit www.unomaha.edu/~unoai.

Comet AG Acquires Feinfocus

Feinfocus, a global supplier of microfocus X-ray inspection systems and tube technology, has been acquired by Switzerland’s Comet AG, a supplier of conventional X-ray tubes for nondestructive testing, security, analytics, food inspection and irradiation, and semiconductor applications.

The combined companies will market complete X-ray technology and products, focusing on smaller feature sizes and 3-D computed-tomography applications.

“With more than 50 years of experience in high-voltage, high-vacuum X-ray tube manufacturing, Comet’s proprietary know-how will accelerate Feinfocus’ development of next-generation microfocus and nanofocus X-ray technology,” notes Lance A. Scott, CEO of Feinfocus.

Learn more at www.feinfocus.com.

Multimedia Presentations Feature Baldrige Success Stories

The seven recipients of the 2003 Malcolm Baldrige National Quality Award have shared their success stories in a new set of audiovisual materials showcasing the strategies each company used to earn the nation’s highest quality achievement.

The set of three CDs contains in-depth information about the winners’ management practices, including interviews with their chief executives and others. Also included are PowerPoint presentations from the March Quest for Excellence Conference and summaries of each winner’s Baldrige application.

The presentation can be ordered on videocassette, as well.

The 2003 recipients of the Baldrige Award are Medrad Inc., Boeing Aerospace Support, Caterpillar Financial Services Corp., Stoner Inc., Community Consolidated School District 15, Baptist

Hospital Inc. and Saint Luke’s Hospital of Kansas City.

The materials are available from the American Society for Quality, P.O. Box 3066, Milwaukee, WI 53201.

The CD-ROM costs $35, and the videocassette version costs $20. To order, or for product details, visit www.asq.org.

QMI Undergoes Branding Transformation

North American standards registrar QMI has developed a new corporate identity and branding theme dubbed “Advancing Business Excellence.”

“The QMI brand has evolved to include a wide range of ISO and industry standards,” explains Wendy Tilford, president of QMI. “Our new mark and positioning theme line symbolize how we’ve grown and changed to meet the higher expectations customers have. Today, customers believe their registrar should do more to help them improve productivity, efficiency and profitability.”

Part of the QMI rebranding effort is an ongoing design of the company’s Web site, featuring an enhanced warehouse of information on quality and environmental standards, industry trends, the registration process, registration best practices and case studies.

“Our goal is to evolve our Web site into the most helpful self-serve reference point in the field of operational excellence,” says Tilford. “Although an expensive and time-consuming process, this is an essential step in living our brand promise of ‘Advancing Business Excellence.’”

Learn more by visiting www.qmi.com.

ASQ Restructures Membership

The American Society for Quality has implemented the first phase of its Living Community Model, the organiz-ation’s reinvention of its membership, including new flexible options, benefits and dues structures.

The Living Community Model’s membership categories now include regular, associate, forum, student, organization, corporate and sponsor. The new dues associated with each level of membership will take effect July 1. “The beauty of the model--and the reason it is called ‘living,’ in alignment with ASQ’s Living Strategy--is its flexibility and adaptability,” says ASQ President Ken Case.

The new structure better suits ASQ’s diverse members. “The Living Community Model provides value to individuals from all backgrounds and occupations who profess an interest in quality--offering them flexible choices of involvement and affiliation with the organization and the quality movement,” explains Case.

Most individuals who consider themselves quality professionals or practitioners will fit into the regular member category. Benefits include a subscription to Quality Progress, electronic topic-specific article selections, ASQ news updates, one section membership, one forum or division membership, quality information search access and support, leisure and affinity benefits such as a Kinko’s card, participation in the annual salary survey, discounts on ASQ products and Web-based ASQ information. Annual dues are $109 for renewing members and $119 for new members.

The associate membership category is for those interested in quality tools and techniques such as continuous improvement or customer satisfaction, although quality management may not be their primary function. Benefits of the $69 annual membership include electronic versions of Quality Progress, online discussion boards, ASQ news updates, electronic section membership, ASQ general public content, access to the salary survey, affinity benefits, society newsletters, and discounts on ASQ products and services.

Forum members are individuals who have an interest in quality focused within a specific industry or topic, as represented by a forum or division. Most benefits to this $29 annual membership are electronic, although some face-to-face networking opportunities are available. ASQ’s Six Sigma Forum, Koalaty Kid, and the Association for Quality and Participation are considered forums and divisions.

Annual dues for student members are $25. Individuals currently pursuing a degree at an accredited university or college full-time are eligible to receive electronic versions of Quality Progress, student branch membership, access to ASQ awards and scholarships, society newsletters and other benefits.

The second phase of the Living Community Model is scheduled to roll out later this year. It will focus on group, organization, and corporate memberships and sponsorships. Phase three is planned for January through July 2005 and will include implementation of benefits across member types, along with an assessment of the model. Both phases are subject to board approval.

More information is available at www.asq.org.

S&P 500 Outperforms Baldrige, Again

After eight winning years, the Baldrige Index--a fictitious stock fund made up of publicly traded U.S. companies that have received the Malcolm Baldrige National Quality Award--has found itself outperformed by the Standard and Poor’s 500 for the second year in a row.

In the past, the Baldrige Index has beaten the S&P 500 by as much as 6-to-1.

The comparison works by the National Institute of Standards and Technology investing a hypothetical sum in each of the 1993-2003 publicly traded Baldrige Award recipients’ common stock in the year each applied for the award. The investment was tracked from the first business day of the month following the announcement of the award recipients, (or the date when they began publicly trading, if it’s later) through Dec. 1, 2003. One thousand dollars was invested in each whole company, and for subsidiaries the sum invested was $1,000 multiplied by the percentage of the whole company’s employee base, the subunit represented at the time of its application. The same total dollar amount was hypothetically invested in the S&P 500 on the same day. If a subunit was sold to another parent company, or if a company divested or merged, it was the subunit whose progress was followed, not the parent company’s progress. The value of the original stock at the time of sale was determined and that dollar amount was reinvested in the new parent company.

Adjusting for stock splits, the value on Dec. 1, 2003, was calculated. Information is reported two ways: all publicly traded award recipients and only whole company Baldrige Award recipients. The 16 publicly traded award recipients, as a group, underperformed the S&P 500 by approximately -0.49-to-1, with a -28.04 percent return--compared to a 57.74 percent return for the S&P 500. The two publicly traded whole company award recipients underperformed the S&P 500 by about -0.44-to-1, with a -30.76 percent return--compared to a 69.49 percent return for the S&P 500.

For details, visit http://baldrige.nist.gov/Stock_Studies.htm.

Six Sigma Practitioners Can Register Online

Six Sigma Management Institute, a consulting and training organization associated with the Ira A. Fulton School of Engineering at Arizona State University, and IdealHire, a provider of human resource services, have created an online registry for Six Sigma practitioners.

The Web site, www.sixsigmaregistry.com, will help provide standards for registry, assessment, training, qualification and certification, as well as access to consulting services for enterprises of any size.

The registry focuses on Six Sigma Generation III. Its three key elements include value creation, training delivered to the masses online and affordability. The Six Sigma Generation III courses and the Global Registry assessment tests were developed jointly by Mikel J. Harry, chairman of the board and president of Six Sigma Management Institute, and the Ira A. Fulton School of Engineering.

“The registry will drive Six Sigma Generation III by establishing a global standard for measuring and certifying knowledge and experience levels of practitioners based on Arizona State’s curriculum,” says Harry. “The online affordability and accessibility of the Six Sigma Global Registry will drive profitability at a wider cross-section of companies. Small companies will benefit with an affordable means of using Six Sigma, and large companies will be able to quickly spread Six Sigma profit, driving practices into everyday processes.”

Cost for membership depends on the level of activity at which the user chooses to participate. Declared membership is $25; Assessed membership is $125; Qualified membership is $175; and Certified membership is $250. To learn more about the levels of membership, visit the Web site.

Intertek Acquires Entela Inc.

The Intertek Group has acquired 100 percent of the issued share capital of Entela Inc., a leader in automotive components testing and certification. Entela will be part of Intertek’s ETL Semko division, which offers global clients testing and certification services, specifically comprehensive in automotive components testing and certification, as well as management systems registration.

“The addition of Entela’s automotive expertise to our existing electrical safety, EMC and performance testing means that Intertek can provide faster and more cost-effective global market access to automotive components manufacturers,” comments Gregg Tiemann, president of Intertek.

Entela, founded in 1974, is led by Kim Phillipi. The company’s management team will continue to run the business under Intertek.

For more details, visit www.intertek.com.