Enabling Excellence Also available from ASQ Quality Press: Making Change Work: Practical Tools for Overcoming Human Resistance to Change Brien Palmer Lean Kaizen: A Simplified Approach to Process Improvements George Alukal and Anthony Manos The Quality Improvement Handbook, Second Edition ASQ Quality Management Division; John E. Bauer, Grace L. Duffy, and Russell T. Westcott, editors Leadership For Results: Removing Barriers to Success for People, Projects, and Processes Tom Barker Avoiding the Corporate Death Spiral: Recognizing and Eliminating the Signs of Decline Gregg Stocker The Executive Guide to Improvement and Change G. Dennis Beecroft, Grace L. Duffy, John W. Moran Root Cause Analysis: Simplified Tools and Techniques, Second Edition Bjørn Andersen and Tom Fagerhaug The Magic of Self-Directed Work Teams: A Case Study in Courage and Culture Change Paul C. Palmes Quality management — Guidelines for realizing financial and economic benefits ANSI/ISO/ASQ Q10014-2006 Effective Writing for the Quality Professional: Creating Useful Letters, Reports, and Procedures Jane Campanizzi The Quality Toolbox, Second Edition Nancy R. Tague To request a complimentary catalog of ASQ Quality Press publications, call 800-248-1946, or visit our Web site at http://qualitypress.asq.org. Enabling Excellence The Seven Elements Essential to Achieving Competitive Advantage Timothy A. Pine ASQ Quality Press Milwaukee, Wisconsin American Society for Quality, Quality Press, Milwaukee 53203 © 2007 by American Society for Quality All rights reserved. Published 2007 Printed in the United States of America 12 11 10 09 08 07 5 4 3 2 1 Library of Congress Cataloging-in-Publication Data Pine, Timothy A., 1949– Enabling excellence : the seven elements essential to achieving competitive advantage / Timothy A. Pine. p. cm. ISBN-13: 978-0-87389-714-3 (hard cover : alk. paper) 1. Organizational effectiveness. 2. Excellence. 3. Quality control. 4. Management. I. Title. HD58.9.P56 2007 658.3′124—dc22 2007002924 No part of this book may be reproduced in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Publisher: William A. Tony Acquisitions Editor: Matt Meinholz Project Editor: Paul O’Mara Production Administrator: Randall Benson ASQ Mission: The American Society for Quality advances individual, organiza- tional, and community excellence worldwide through learning, quality improve- ment, and knowledge exchange. Attention Bookstores, Wholesalers, Schools, and Corporations: ASQ Quality Press books, videotapes, audiotapes, and software are available at quantity discounts with bulk purchases for business, educational, or instructional use. For information, please contact ASQ Quality Press at 800-248-1946, or write to ASQ Quality Press, P.O. Box 3005, Milwaukee, WI 53201-3005. To place orders or to request a free copy of the ASQ Quality Press Publications Catalog, including ASQ membership information, call 800-248-1946. Visit our Web site at www.asq.org or http://qualitypress.asq.org. Printed on acid-free paper To Karl Wojahn—leader, humanitarian, motivator, friend, and mentor par excellence! Contents List of Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv Chapter 1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . 1 Cut Through the Clutter and Focus ....... 2 State of the Art vs. Perfection ........... 2 Comprehension vs. Commitment ........ 2 Mistakes vs. Errors ................... 3 The Foundation for Excellence .......... 3 The Seven Vital Elements .............. 4 Chapter 2 Prevention . . . . . . . . . . . . . . . . . . . . . . . . . 7 The Prevention Concept ............... 8 Play Offense, Not Defense ............. 10 Prepare for Error-Free Performance ...... 11 The Two Root Causes of Most Errors ..... 12 Anticipate and Eliminate Potential Failures ......................... 14 Rely on Certifications .... ............ . 17 Develop Strategic Partnerships .......... 18 Avoid Inspection ..................... 20 vii viii Contents Words of Caution .................... 21 Arm Yourself with Performance Metrics ......................... 23 Chapter 3 Consumer Focus . . . . . . . . . . . . . . . . . . . . 25 Earn and Keep Consumer Loyalty ....... 26 Understand Foreseeable Use ........... . 27 Build Brands, Not Commodities ......... 30 High Quality Means High Profitability .... 31 Drive Effective Supplier–Customer Communication ................... 33 Chapter 4 Process Capability . . . . . . . . . . . . . . . . . . . 35 Require Capable Processes Before Production Starts ........... ....... 36 Define and Document the Process ....... 36 Test to Failure, Not to Specification ...... 37 Pitching the Normal Curve ............. 39 Measure and Verify Process Capability ... 41 Significance of Cpk ................ ... 43 Control Accuracy and Precision ......... 45 The Precision of Numbers ............. 47 Apply Factors of Safety ............... 48 Chapter 5 Process Control . . . . . . . . . . . . . . . . . . . . . 51 Avoid Type 1 and Type 2 Errors ......... 52 Avoid Tampering and Neglect ........... 53 Identify Critical Process Characteristics ... 53 Enforce Precontrol and Positrol ......... 54 Use Three-Dimensional Standards ....... 58 Chapter 6 Variation Reduction . . . . . . . . . . . . . . . . . 61 Recognize the Evil of Variation ......... 62 Change Is Good; Variation Is Bad ........ 62 Contents ix Don’t Play the Doghouse vs. Penthouse Game ........................... 62 Move from Zero Defects to Zero Variation . 64 Remember Dr. Taguchi ................ 65 Chapter 7 The Pareto Principle . . . . . . . . . . . . . . . . . 69 Not All Problems Are Created Equal ..... 70 From Symptoms to Causes ............. 70 From Causes to Vital Root Causes ....... 71 Place Importance over Urgency ......... 72 Convert Data into Wisdom ............. 73 Less Is More ........................ 74 Perform Strategic Auditing ............. 75 Chapter 8 Breakthrough Improvement . . . . . . . . . . 77 If It Ain’t Broke, Fix It ................ 78 Drive Breakthrough Improvement Through Continuous Innovation ............. 79 Benefit from Benchmarking ............ 80 Serve on Standards Development Committees ...................... 81 Cultivate Relationships with Regulatory Bodies .......................... 81 Connect with Outside Technical Resources ....................... 82 Evaluate Your Competition ............. 83 Keep a Clear and Sound Vision and Strategy ......................... 83 Chapter 9 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . 85 Inspire the Organization ............... 86 Ostracize the Three Big Evils ........... 87 Create Masterpieces .................. 88 Enable Excellence .................... 88 x Contents Appendix A Ten Questions to Test Your Excellence Savvy . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Appendix B Answers to the Quiz . . . . . . . . . . . . . . . 95 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99