The Juran Institute

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The Juran Institute. Topics that will be covered. History of the Juran Institute Main focuses What can be learned through following practices of the Juran Institute Impact of Juran Institute. What is Quality?. Quality is an idea that changes with time. Joseph M. Juran. Grew up in Romania - PowerPoint PPT Presentation

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  • The Juran Institute

  • Topics that will be coveredHistory of the Juran InstituteMain focusesWhat can be learned through following practices of the Juran InstituteImpact of Juran Institute

  • What is Quality?Quality is an idea that changes with time

  • Joseph M. JuranGrew up in RomaniaImmigrated to the U.S. at the age of 7Went to the University of MinnesotaStudied electrical engineering

  • History of the Juran Instituteearly yearsJoseph M. Juran 31 years of independent consultingFounded Juran Enterprises in 1979Juran on Quality Improvement was available one year later on the market

  • History of the Juran Institutecontinued1982 Juran Enterprises changed its name to Juran Institute1988 Juran Institute goes international to the Netherlands, Toronto, Madrid, and North Sydney.

  • Main Focuses of the Juran InstituteReducing defect and failure ratesWhy is it important?Competing in costs in a global market

  • Main Focuses of the Juran InstituteCosts of poor qualityCosts are often more than you originally estimateBy cutting costs, you can greatly improve your company

  • Main Focuses of the Juran InstituteUpper management buy-inWhy is this important?Becoming a champion of Quality Improvement instead of delegating

  • Brainstorming Exercise:How can the practices of the Juran Institute be used in your organization?

  • What can be learned through the Practices of the Juran InstituteQuality is the key to success in organizationsStrategic quality planning as a means to an end, not the goal itself

  • A Juran ExampleJuran 1920sInspectors were scrapping 15% of circuit breakers producedJuran improved resistance in wire coil used in production, and increased resistance by adding more length.Defects dropped to almost zero.They increased production by 15 percent, without having to add machines, materials, or labor.Improvement through improving the process

  • Other examples1970s - Xeroxs market share was 85%Early 1980s Xerox market share had dropped to around 15%Why? Quality management

  • Other examplesRitz Carlton HotelsGoes above and beyondTakes note of customer preferencesDazzles customers with high qualityCreates customer loyalty

  • Other examplesBaystate Medical Center Used the Juran Quality Improvement Model to examine Neuromuscular Blocking Agents (NMBAs) in critical care unitsResults: Average Daily Cost reduction of $147 per patient.Annual cost reduction of $38,808

  • ExerciseExamine one area in your company that could be improved using the Juran Institutes Quality Improvement Model.Identify chief causes for low quality.Work with your co-workers to improve this process.Were your results significant?

  • SummaryQuality is key to success in todays marketThe Juran Institute was founded under principles of high quality practices.Quality improvements can be made in any industry, no just manufacturingHigher quality creates loyal customers, and decreases costs.

  • Readings ListBlackiston, Howland. Juran institute: A Barometer of Trend in Quality Management. National Productivity Review. Pg. 15. 1996.Giuliano, Karen K.; Goerdt, Paul; Higgigns, Thomas; Elliot, Sheila; Anderson, Terri; Circeo, Lori; McGee, William. Using the Juran Quality Improvement Model to Improve the Management and Reduce Costs in Patient on Neuromuscular Blocking Agents (NMBS) in the Intensive Care Unit. Critical Care Medicine. Vol 26. p 88A. 1998.

  • Readings ListcontinuedButman, John. Juran, A Lifetime of Influence. John Wiley & Sons. 1997.Juran, Joseph M. Architect of Quality. McGrawHill. 2004.Juran, J.M. A call to action: the summit. Carlson School of Management, University of Minnesota-Minneapolis, Minnesota. 26 June 2002.

    Customers define the quality of a product. Because of this, quality improvement planning needs to be customer-focused. Companies say that they are customer-driven, but what transparency do companies have to their customers? More and more, today, customers expect higher quality products at lower costs. This can only be achieved through quality management.Joseph M. Juran was a prodigy at math and science. He immigrate to the United States from Romania at the age of seven. After living a fairly poor life with his family in Minneapolis, his high school physics teacher suggested that he enter the electrical engineering program at the University of Minnesota. He was 15 years old as a freshman, having skipped two grades in elementary school.

    He wasnt the top of this class, because of work and a love of chess that he developed, but he was continually focused on improving his mind. After graduating from college, he got a job with Western Electric Company. He worked at their Hawthorne Works facility in Chicago, which was one of the largest industrial plants in the world. He got put into the Inspection Branch at the plant. He viewed this job a s a challenge, since it was their responsibility to put inspection stamps on every product. No products would move unless they had these stamps. He viewed the challenge with excitement, and applied the strategy he learned playing chess to his career. This was the first place he had hands-on experience with quality improvement.As an independent consultant, Juran gave lectures on quality that were scheduled and and sponsored by the American Management Association. There was increasing interest in the United States for training in quality. Dr. Juran felt strongly that there was a need to widely spread his knowledge in this field among American companies in order for them to be more competitive in the international market. In order to be effective, it would need to be through a broader means than his lectures. Because of this, he developed a plan with his granddaughters boyfriend, who had experience in recording color video cassettes, to create a video-based series to train entire management teams in companies. In order to do this, he founded Juran Enterprises in 1979. One year later his videos, Juran on Quality Improvement, were available on the market.

    During the development on the videos, the company started sponsoring courses in quality management. By 1982, the company had hired Dr. Frank Gryna, former dean of the college of engineering and technology at Bradley University, and the companys first quality professional employee. 1982 was also the year that Juran Enterprises changed its name to Juran Institute to better fit it educational focus. Fifteen years later the company had grown to 50 employees, causing them to move to Wilton, Connecticut. They also opened Juran Institute;s overseas offices in the Netherlands, Toronto, Madrid, and North Sydney.

    When organizing the subject matter for the Video Cassettes (VCs), Juran followed the sequence he had used during many consulting projects: reduce defect and failure rates. He used many examples, mainly in the area of manufacturing. He not only prepared a script for the VCs, but a workbook for the users of his tapes, and a larger leaders manual for the trainers using his videos.

    Worldwide focus has turned to Quality management in order to reduce defect and failure rates. This is, in large part, due to the fact that the international market is becoming more competitive. Companies today have to compete internationally, and in order to do this they must reduce their costs. As companies try to reduce costs, many realize that they are spending a lot of money on defects and failure rates. By reducing these, a company is able to improve quality and reduce costs.

    Another thing that Juran was realizing as companies started implementing quality control programs was the costs of quality are unimaginably high. Hewlett-Packard had started investing in quality improvement programs and analyzing their costs of quality in 1980. At that time, they estimated that their costs of poor quality were about 25 percent of sales revenue. About ten years later, after making many efforts to improve quality, they found that the cost of poor quality was still around 25 percent. This was not because their efforts had failed, but because their understanding of the costs of poor quality had increased.

    As mentioned before, as a company improves quality, costs significantly decrease. Initially, a company not focused on quality management will not realize the costs associated with poor quality. Through learning more about quality, a company can more accurately assess what their costs of poor quality are, and focus on cutting those costs. Another big focus that Juran has found in the failure of implementing quality control programs, is that often upper management will delegate the task of improving quality, rather than becoming a champion of quality improvement in their organization. One big reason for this is that quality improvement takes years. Japanese companies became competitive in quality in the mid-1970s. Because of this, Juran estimates that it took them almost 35 years to become leaders in quality management. Upper management today does not often have the patience for this type of quality improvement commitment. Because of this, often the cause of failure in Total Quality Management is the CEO. They believe that they do not have to change, and do not set an example for their subordinates in the company. Juran on Quality Improvement focused on bringing whole corporations in-line with quality improvement.

    In what areas does your company use a lot of resources? Where are costs high?

    By focusing in areas that utilize a lot of company resources, you can begin to pinpoint areas where quality can be improved to reduce costs and improve quality. By doing this, your company can become a bigger competitor in your industry.Organizations that compete in quality are leading organizations nationally. This is because the