Advancing Performance Excellence

www.asq.org MAY 2007

MAKE THE
CASE FOR
QUALITY
Quality Diet p. 21
Financial Control p. 26
Reach Out to CEOs p. 32

PLUS:
Cigna’s Six Sigma p. 43

Reviving the
Process Map p. 59
There’s statgraphics …
®

then there is
EVERYTHING else.
Think you are using the best
statistical software because it calls
itself the leader?
Think Again.
The most widely used product is not always
the superior one. It may simply have a
bigger advertising budget.

At StatPoint, we produce a superior

product, not superior hype. So our
software is superior, not our ad budget.

lets
you perform advanced
routines effortlessly,
without sacrificing
reliability. It gives you
functionality absent in
other stat programs.

Choose the software that lets you create

TRUE QUALITY… CHOOSE statgraphics
®

Refine Processes.
Enhance Performance.
Improve Quality.
©2007 StatPoint, Inc.
Increase Profit. STATGRAPHICS is a registered trademark of StatPoint, Inc.
STATGRAPHICS Centurion is a trademark of StatPoint, Inc.
Contents MAY 2007 I VOLUME 40 NUMBER 5

F E AT U R E S
ECONOMIC CASE FOR QUALITY

21 The Quality Diet: Building a Healthy Business

Like a dietician consulting an overweight and unhealthy client, a quality
practitioner can shape up an organization with the right approach,
commitment and follow-through.
TIMOTHY J. FOLKERTS, physics instructor, Barton County Community College, Great Bend, KS.

26 Financial Control and Quality

Understanding the critical financial measures of quality will help an
organization’s leaders identify anomalies, causes and trends.
WILLIAM STIMSON, management consultant, SCI Associates, Charlottesville, VA

TOM DLUGOPOLSKI, president, Thomas Business Solutions Inc., Cloverdale, VA

32 Reaching Out to CEOs

Convincing executives to choose quality proved challenging for ASQ’s
Pittsburgh section, which participated in a pilot project of the Economic
Case for Quality.
BRIEN PALMER, managing partner, InterLINK Management Consulting, Export, PA

BEST PRACTICES

38 Reach for the STARS

An Australian software company developed training to help its employees
visualize their role in creating a quality culture within the organization.
HAN VAN LOON, management consultant, Walchwil, Switzerland

SIX SIGMA

43 Six Sigma at Cigna

Six Sigma methods and thorough strategic planning strengthened insurer
C H E C K O U T T H E Cigna Corp.’s vital signs.
ASQ website! SUSAN E. DANIELS, editor at large

www.asq.org ECONOMIC CASE FOR QUALITY

• Web Watch.
• Author guidelines.
• Searchable database of ASQ
abstracts.
• Index of back issues.
49 Quantifying Machinery Availability Loss
Look beyond simply reducing scheduled machinery downtime. Quantify the
financial impact of unscheduled losses.
MATTHEW PARKS, principal, Rodion Parks LLC, Baton Rouge, LA

For ASQ members only:

PROCESS IMPROVEMENT
• Salary surveys from 1995 to 2006.
• Complete feature articles
since 1995.
54 Benchmarking Goes to School
One Canadian university used benchmarking techniques and solicited student
• QP Discussion Board. feedback to improve the way it assigned on-campus housing.
• Back to Basics in Spanish.
MICHAEL J. ARMSTRONG, associate professor, Carleton University’s Sprott School of Business,
Ottawa, Ontario
D E PA R T M E N T S QualityProgress
6 Up Front TABLE OF CONTACTS
Quantifying quality. Mail
Quality Progress/ASQ

8 QP Mailbag
600 N. Plankinton Ave.
Milwaukee, WI 53203
Misinterpreting SOX ... ‘First
Telephone Fax
Person’ inspiring ... Affinity
800-248-1946 414-272-1734
diagram overlooked 414-272-8575
too often ... more.
FDA seeks stronger panel E-mail
guidelines p. 12 Follow protocol of first initial and full last name
8 Mr. Pareto Head followed by @asq.org (for example, vfunk@
asq.org).

12 Keeping Current Article Submissions

Quality Progress is a peer-reviewed publication
FDA seeks stronger panel guide- with 85% of its feature articles written by quali-
lines ... Car seat testing adjusted
... Baldrige bill ... more.
76 Standards Outlook
ty professionals. For information about submit-
ting an article, call Valerie Funk at 800-248-1946
Six lessons learned from QS-9000. x7373, or e-mail manuscripts@asq.org.

Free QP Live
59 3.4 per Million If you’d like a preview of the next issue of

Reviving the process map. 79 QP Toolbox Quality Progress, subscribe to our free electronic
newsletter, QP Live, a summary of contents.
Visit www.asq.org/keepintouch.html, or contact
ASQ customer care at help@asq.org.
66 Quality in the First 80 QP Reviews Photocopying Authorization
Person Authorization to photocopy items for internal or
personal use or the internal or personal use of
5S for families.
82 QP Calendar specific clients is granted by Quality Progress pro-
vided the fee of $1 per copy is paid to ASQ or the
Copyright Clearance Center, 222 Rosewood Dr.,
68 Career Corner Danvers, MA 01923, 978-750-8400. Copying for

The making of a knowledge 88 Back to Basics other purposes requires the express permission
of Quality Progress. For permission, write Alice
worker. It’s just paperwork? Haley, PO Box 3005, Milwaukee, WI 53201-3005,
call 414-272-8575 x7406, fax 414-272-1734 or
e-mail ahaley@asq.org.

70 Statistics Roundtable Next Month: Photocopies, Reprints

Turning Shewhart’s challenge
Basic Quality And Microform
Article photocopies are available from ASQ at
into opportunity. 800-248-1946. To purchase bulk reprints (more
than 100), contact Barbara Mitrovic at ASQ,
800-248-1946. For microform, contact ProQuest
Information and Learning, 300 N. Zeeb Road,
Ann Arbor, MI 48106, 800-521-0600 x2888, inter-
COVER PHOTO: PAUL GAERTNER; PHOTO ILLUSTRATION: MATT ZUMBO national 734-761-4700, www.il.proquest.com.

Membership and Subscriptions

ASQ’s Vision • By making quality a global priority, an organizational imperative and For more than 60 years, ASQ has been the
a personal ethic, the American Society for Quality becomes the community for everyone worldwide provider of information and learning
who seeks quality technology, concepts or tools to improve themselves and their world. opportunities related to quality. In addition, ASQ
membership offers information, networking, cer-
Student, Associate, Canadian includes tification and educational opportunities to help
ANNUAL SUBSCRIPTION and Forum/Division Forum/Division Forum/Division first-class delivery. quality professionals obtain practical solutions to
Members Members Members International includes air-
RATES Nonmembers Institutional PRINT ELECTRONIC ONLY PRINT & ELECTRONIC the many problems they face each day. Sub-
mail delivery. Quality
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International $110 $130 $90 $55 $110 tronic access are includ- benefits of ASQ membership. To join, call 800-
$130 ed with a regular ASQ 248-1946 or see the application on p. 65.
Canadian $110 $90 $55 $110
membership, $119.

List Rentals
Quality Progress (ISSN 0033-524X) is published monthly by the American Society for Quality, 600 N. Plankinton Ave., Milwaukee, WI 53203.
Orders for ASQ’s member and nonmember
Editorial and advertising offices: 414-272-8575. Periodicals postage paid at Milwaukee, WI, and at additional mailing offices. Institutional sub-
buyer lists can be purchased by contacting Rose
scriptions are held in the name of a company, corporation, government agency or library. Requests for back issues must be prepaid and are
based on availability: ASQ members $15 per copy; nonmembers $23 per copy. Canadian GST #128717618, Canadian Publications Mail
DeLuca at the Walter Karl List Management Co.,
Agreement #40030175, Returns: 4960-2 Walker Road, Windsor, ON N9A 6J3. Prices are subject to change without prior notification. © 2007 845-732-7019 or fax 845-620-1885.
by ASQ. No claim for missing issues will be accepted after three months following the month of publication of the issue for domestic
addresses and six months for Canadian and international addresses.
Postmaster: Please send address changes to the American Society for Quality, PO Box 3005, Milwaukee, WI 53201-3005. Printed in USA.

4 I MAY 2007 I www.asq.org

 Still waiting for a quality
management solution?
7ITH#!437EB‡/N$EMAND0RE #ON½GURED3OLUTIONSYOU´LLGETUPANDRUNNINGWITHINDAYSNOTMONTHS
.OWAITINGFOR)4STAFFNOHARDWARETOPURCHASENOSOFTWARETOINSTALLMAINTAINORBACKUP7EDOITALLFOR
YOU7ITHOUR¾EXIBLEPAYMENTOPTIONSMONTHLYQUARTERLYORYEARLY YOU´LLHAVESECUREACCESSTOYOUR
QUALITYSYSTEMUSINGANYBROWSERANDCOMPUTERWITHAN)NTERNETORINTRANETCONNECTION  

#ALLTODAYGETSTARTEDTOMORROW

3 No software 3 No IT staff Quality and Compliance OnDemand

3 No hardware 3 No waiting VALIDATED
#!0! !UDIT SECURE
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4OSIGNUPFORYOURFREETRIALVISIT
3UPPLIER1UALITY 3UPPORT WWWASSURXCOMONDEMAND
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UPFRONT
QualityProgress
Quantifying Quality Publisher
WILLIAM A. TONY

A t ASQ’s world headquarters, quality surrounds us—literally.

“Quality quotes” line the walls, a complement to the building’s
décor and a constant reminder of why we’re here. One of my favorite quotes
Editor
SEICHE SANDERS

Associate Editor
MARK EDMUND
comes from Philip B. Crosby, who wrote in his classic book: “Quality is free.
Assistant Editor
It’s not a gift, but it’s free. The ‘unquality’ things are what cost money.” DAVE NELSEN
Crosby got people thinking about quality in dollars-and-cents terms. Manuscript Coordinator
Today, we refer to this view as “The Economic Case VALERIE FUNK

for Quality,” this month’s cover theme and a phrase Editor at Large
SUSAN E. DANIELS
that recently became a registered trademark of ASQ.
Copy Editor
For those in the profession, quality’s economic via- JOANNA DUPUIS
bility is readily apparent. Unfortunately, not everyone
Art Director
sees it as clearly. Superiors, colleagues and society at MARY UTTECH
large—most people need to be schooled in how quali- Graphic Designer
ty benefits the bottom line. SANDY WYSS

The cost of quality—or the cost of poor quality, as Production

CATHY SCHNACKENBERG
the case may be—is ruled by the maxim that preven-
Advertising Production
tion of errors costs exponentially less than dealing with errors once they exist. BARBARA MITROVIC
One popular example used to illustrate this relationship goes something like Digital Production Specialists
this: It costs $1 to prevent a problem, $10 to find it, and $100 and up to fix it. ERIC BERNA, LAURA FRANCESCHI

The equation doesn’t even touch on the less tangible costs associated with
Senior Account Executive
poor quality. PHILIP C. EDMUNDS
Communicating what quality costs—or doesn’t cost—to executives is the Account Executives
quality professional’s greatest challenge. As a quality champion, you must ANGELA M. MITCHELL
MITCHELL PEZANOSKI
learn what approaches are most effective in appealing to top management.
Classified/Recruitment Advertising
Whether it’s comparing quality to eating right and exercising, as in “The
RAMONA GARCIA
Quality Diet: Building a Healthy Business,” (p. 21), or focusing on materiality
Marketing Administrator
and liability costs, “Financial Control and Quality,” (p. 26), find and speak the MATT MEINHOLZ
language that clarifies these issues for executives. Editorial and Advertising Offices
According to Stimson and Dlugopolski, authors of the latter article, the 414-272-8575 fax 414-272-1734

economic case for quality should be an easy one to make: “Quality brings a ASQ ADMINISTRATION
distinct financial advantage to those who practice it diligently as opposed to Executive Director
PAUL E. BORAWSKI
those who don’t.”
Managing Directors
For many, however, getting that buy-in will take quite a bit of time and ef- CHRISTOPHER D. BAUMAN
PEGGY LARSON
fort. Just keep knocking at that door.
BRIAN J. LEHOUILLIER
MICHELLE MASON

To promote discussion of issues in the field of quality and ensure

coverage of all responsible points of view, Quality Progress pub-
lishes articles representing conflicting and minority views.
Opinions expressed are those of the authors and not necessarily
of ASQ or Quality Progress. Use of the ASQ logo in advertisements
does not necessarily constitute endorsement of that particular
product or service by ASQ.

Seiche Sanders
Editor

6 I MAY 2007 I www.asq.org

Achieve Your Organizational Goals
Six Sigma Solutions for Manufacturing

Whether you are preparing for an ASQ Six Sigma education or expanding your Six Sigma knowledge base, ASQ makes
learning the methodology simple. Through programs designed specifically for the manufacturing industry, ASQ provides the most
comprehensive and relevant training, certification preparation, books, and journals in the Six Sigma arena.

Certification
ASQ certification demonstrates your knowledge and proficiency
in the manufacturing industry. Certifications help you address
the challenges of your current position while expanding your
professional opportunities. ASQ offers Six Sigma Green Belt
and Six Sigma Black Belt certification.
Training
Achieve your organizational goals with ASQ training.
ASQ offers the most comprehensive Six Sigma training options
including on-site training, classroom- and Web-based courses,
certification preparation programs, and open enrollment
public courses.
Books/Journals
Quality Press is the world’s largest publisher of quality-related
products, offering basic to advanced resources for quality
professionals, including Six Sigma resources, and Six Sigma
Forum Magazine.
Membership
If you are seeking solutions to advance yourself or your
organization, answer your toughest questions, and connect
you to success, join us today. We offer a network and a forum
dedicated to Six Sigma, linking you to some
of the leading Six Sigma methodology
experts. ASQ members also save money on
certification, books, training, and conferences.
Join today by completing the online
application at www.asq.org/join.

FOR MORE INFORMATION ON SIX SIGMA TOOLS, VISIT www.asq.org AND CLICK ON MANUFACTURING
OR CALL 800-248-1946.
 QP
MAILBAG
Great Customer Service
Training = Great Service
our article “Deliver Great Service
Y by Listening and Adapting”
(John Goodman and Crystal D. Collier,
March 2007, p. 22) reinforced my cur-
rent belief that a great service organiza-
tion is built on the training of its
first-line customer service personnel.
After all, a service person’s ability to
adapt is contingent on his or her ability
to judge how best to satisfy a customer
need and then execute on that judgment.
In my line of work (consulting), I
cannot be effective unless I am able to
listen to my customer describe the
problem, assess the situation and craft
a solution to best suit my customer’s
needs. I might use standard business
processes to reach my conclusions,
but I cannot be effective without ade-
quate training in the area in which I
consult, which allows me to make the
necessary judgments of my cus-
tomer’s situation.
I would like to see future articles
that perform a cost-of-quality analysis
to determine how training, including
training on so-called “soft skills,” such
as listening and judgment, impacts the
bottom line. I think service sector exec-
utives wish this information was more
readily available so they could better
manage their employees’ training.
R EGINA F ULLIN
Pharmtech Inc.
Libertyville, IL
rmfullin@pharmtechinc.com
Mr. Pareto Head
8 I MAY 2007 I www.asq.org
Sarbanes-Oxley: The
Universal Reason?
hile reading Goodman and
W Collier’s article, I was struck
by a specific comment they made.
On p. 25, the authors say: “But you
can’t empower every [customer ser-
vice representative] to break rules at
will. Rule breaking … is counter to
the Sarbanes-Oxley Act, which
addresses corporate financial
accountability.”
I have seen this act being referenced
to apply to a number of sins and
actions, and I am dumbfounded. Do
people just think they can blame any-
thing they do or don’t do on this act,
or is the act really all-encompassing?
Either the act is all-powerful or com-
panies are just using it to cover what-
ever they want.
Clarification would be greatly
appreciated. Perhaps a short article on
what this act is and why companies
should fear it (or why they shouldn’t)
would be a great help to your readers.
At least it would help me.
N ORM E NNIS
Columbia Scientific Balloon Facility
Palestine, TX
asfound2010@yahoo.com
Author’s Response
I do not disagree that Sarbanes-
Oxley is out of control and should not
hinder rational actions. However,
compliance and legal officers in many
financial institutions (with the sup-
port of overzealous accountants and
consultants) have interpreted it to
limit any deviation from a specified
micro-process.
What my co-author and I are sug-
gesting is this: Rather than fight the
broad battle, which would require
reinterpretation of the law by
Congress and others, the decision
process should be defined at the
broader general issue level rather
than an isolated transaction level. This
allows flexibility while still complying
with the process.
J OHN G OODMAN
TARP Worldwide
Arlington, VA
jgoodman@tarp.com
‘First Person’ Inspirational
was inspired by “Quality Control
I and Brain Damage” (“Quality in
the First Person,” Howard Lee, March
2007, p. 63). I will use it as a training
message to new and existing quality
professionals.
Lee was faced with very difficult
situations and setbacks, but he
endured them all, whereas most peo-
ple would have given up. His spirit to
keep pressing on to reach his goals is
inspiring.
by Mike Crossen
 ASQ is a great organization that Equation 2:
offers programs for those who want to
further their passion for quality. I’m
proud to be a member. CHAIR OF THE BOARD
e
K ATHY Y ANEZ C* = 1 –
Σ i =1(ti3 – t i) Jerry J. Mairani, Beutler Corp.

PRESIDENT
Trazar Corp. nT3 – nT
Ronald D. Atkinson, General Motors
Santa Clara, CA
kyanez@trazar.com PRESIDENT-ELECT
Michael D. Nichols
In which: VICE PRESIDENT
e = the number of different Grace L. Duffy, Management and Performance Systems
observations in the samples
‘Back to Basics’ Exposes TREASURER
Overlooked Tool
ti = the number of observations Hope Gonzales, Abbott Laboratories
tied with the ith observation
PARLIAMENTARIAN
in size
agree with Craig Plain’s “Back to
I Basics” column (“Build an Affinity
for K-J Method,” March 2007, p. 88).
nT = the total number of responses
in all samples
James J. Rooney Jr., ABS Consulting

DIRECTORS
Jochen Amelsberg, Juran Institute
An affinity diagram is a simple but Belinda Chavez, United Space Alliance
There was also an error in
powerful tool that is often overlooked. Brenda M. Fisk, Software Quality Solutions
“Assessing the Effectiveness of
I frequently use it as a way to get an Richard A. Gould
Controls Under Uncertainty” (Joe Kamla P. Gupta, Continuous Improvement Technology
Ishikawa session started. It gives
Conklin, March 2007, p. 64). The first Clayburn W. Hodges, Virginia Plastics
everyone a chance to think first and
equation under “Continuous Control Jad GB Jadunath
provides an easy way to find natural Gary L. Johnson, U.S. Environmental Protection Agency
Conditions” (p. 66) should have been:
categories. I transfer the results of the Roger J. Keller, Keller Quality Consultants
affinity groupings to the fishbone dia- Kay A. Kendall
p(x) = ey / (1 + ey).
gram and continue from there as Robert E. King, Goal/QPC
usual. Jeffery I. Lackey, Vistakon
William H. LaFollette
J EANNE S AWYER Lou Ann Lathrop
The Sawyer Partnership David B. Levy, Levy Quality Consulting
San Jose, CA Richard A. Litts, Litts Quality Technologies
jsawyer@sawyerpartnership.com Matthew J. Maio, Raytheon IDS
Richard F. McKeever, D2 Quality Associates
Aimee H. Siegler, Benchmark Electronics
Donald C. Singer, GlaxoSmithKline
Steven E. Wilson, U.S. Department of Commerce
Corrections Seafood Inspection Program

QP EDITORIAL REVIEW BOARD

There were errors in the two equa- Contact ‘QP’ Randy Brull, chair
tions on p. 31 of the March 2007 issue Administrative Committee
We welcome your letters. Send them
(“Using Statistics to Improve Roger Berger, Brady Boggs, Randy Brull, Jane Camp-

Satisfaction,” Sheldon D. Goldstein). to EDITOR, ASQ/QUALITY PROGRESS, anizzi, Larry Haugh, Jim Jaquess, Gary MacLean,
Christine Robinson, Richard Stump
The correct equations are as follows. 600 N. PLANKINTON AVE., MILWAU-
Reviewers
KEE, WI 53203-3005; or e-mail them to I. Elaine Allen, Andy Barnett, David Bonyuet, John
Equation 1: Brown, Bernie Carpenter, Ken Cogan, Linda Cubalchini-
editor@asq.org. Please include address,
Travis, Ahmad Elshennawy, Tim Folkerts, Eric Furness,
k 2
Ri
daytime phone number and e-mail Mark Gavoor, Kunita Gear, Lynne Hare, Ron Kenett, Ray
12
W=
nT(nT + 1) Σ – 3(nT + 1) address. You also can post your com-
Klotz, Tom Kubiak, William LaFollette, Shin Ta Liu,
Pradip Mehta, Gene Placzkowski, Paul Plsek, Tony
i = 1 ni ment on the QP Discussion Board at Polito, Peter Pylipow, Philip Ramsey, R. Dan Reid,
Wayne Reynolds, John Richards, James Rooney, Anil
www.asq.org. We reserve the right Sengupta, Sunil Thawani, Joe Tunner, John Vaks, Manu
In which: Vora, Jack Westfall, James Zurn
to edit letters for space and clarity.
k = the number of attribute samples
ni = the number of responses in Opinions expressed are those of the
sample i writers and not necessarily of ASQ or
nT = the total number of responses
Quality Progress.
in all samples
Ri = the sum of the ranks for
sample i

QUALITY PROGRESS I MAY 2007 I 9

KEEPING
CURRENT
PHARMACEUTICAL

FDA Seeks Stricter Guidelines

For Advisory Approval Panels
The U.S. Food and Drug Administration (FDA) has
proposed guidelines intended to reduce conflicts of inter-
est among the people who approve drugs and medical
devices.
The new rules would disqualify doctors and scientific
researchers from serving on FDA advisory panels if they
have received financial benefits exceeding $50,000 from
drug and medical device companies over the course of a
year. Members of Congress and consumer groups have
been pressuring the FDA to curb the drug industry’s
influence over drug approvals and product labeling in
the wake of media reports of gifts showered on doctors
and scientists by drug and medical device makers.
Advisory panels have the power to help potentially
life saving products achieve FDA approval, and those
approvals, in turn, can lead to billions of dollars in rev-
enue for the companies that manufacture the products.
Such panels also advise the FDA on product safety and
suggest wording for warning labels on prescriptions.
Generosity from drug and medical device makers to
doctors and researchers has come in the form of ski and
resort trips, as well as five-figure unrestricted educational
grants. The FDA also cited other potential sources of con-
flict, including stock ownership and consulting arrange-
ments.
In one high profile example, an analysis by the Center
for Science in the Public Interest in Washington found in
February 2005 that most of the FDA’s advisers who had
been partly responsible for keeping Merck & Co.’s Vioxx
painkiller on the market two years ago had various finan-
cial ties to drug makers.
Merck withdrew the drug in September 2004
because of heart related risks.
Under the FDA’s proposal, only individuals
with no potential conflicts of interest would be
eligible to fully participate in advisory panel
meetings as voting members. Panelists who
received gifts worth less than $50,000 from
manufacturers could receive waivers from the
conflict rules, but only if they have unique
qualifications or if it is difficult to find experts
without financial ties. Committee members
with financial interests exceeding $50,000 could be
cleared by the FDA commissioner to participate in limit-
ed cases.
“The leadership at the FDA is now acting in the public
interest,” said U.S. Rep. Maurice Hinchey, who has been
pushing legislation in Congress to curtail FDA advisory
panelists’ conflicts of interest.
“By ending the practice of allowing FDA advisory
boards to be filled with voting members who have finan-
cial conflicts of interest, the agency is taking an important
step toward ensuring that the only interest advisory
board members have when voting to approve a drug or
device is that of the health and safety of American con-
sumers,” Hinchey said.
The FDA says it already screens prospective advisory
committee members, but the proposed guidelines would
bring consistency to its process.
The Pharmaceutical Research and Manufacturers of
America, a drug industry lobby group, said it plans “to
respond in depth” to the proposal but has only begun
reviewing it.
Consumer group Public Citizen, long a critic of the
FDA and its relationship with industry, said the agency’s
new draft guidance is an admission that its drug approval
process is “tainted,” said Peter Lurie, deputy director of
Public Citizen’s health research group.

12 I MAY 2007 I www.asq.org

TESTING
Faulty Car Seat Tests
Prompt Magazine Response
Following a botched report on infant car seats that
prompted a public apology, Consumer Reports announced
it is changing some internal procedures and policies.
In early January, the magazine released crash test
results that said 10 out of 12 infant car safety seats pro-
vided inadequate protection in side impacts. Consumer
Reports later received information from the federal gov-
ernment’s National Highway Traffic Safety Administration
(NHTSA) that called its infant seat tests into question.
On Jan. 18, two weeks after announcing the test results,
Consumer Reports said the side impact test had been per-
formed incorrectly. The
magazine announced it was
suspending ratings on the
seats and would conduct a
review to find out what had
caused the problem.
In a March announce-
ment, Consumer Reports
blamed a “series of misjudg-
ments” and “miscommuni-
cation with an outside lab.”
In the statement, the
magazine said the decision
to develop its own side impact test without extensive con-
sultation caused most of the problems. Consumer
Reports has had a long-standing policy of limiting contact
with industry and government officials as a way to pro-
tect the independent judgment of its staff.
From now on, Consumer Reports said, it will confer
more regularly with outside experts when developing
such complex tests. Representatives from the magazine
said they will also refine procedures for working with out-
side laboratories. While the magazine performs most of
its own tests, 11% of the tests it ran last year involved out-
side labs with special equipment or expertise.
In some situations, outside consultants with special
expertise in the subject area in question will be hired to
review outside labs’ tests and results, the representives
said. Tests will be rerun at a separate lab if deemed nec-
essary, and the magazine will prominently disclose
whenever tests are performed by outside laboratories.
(continued on p. 16)
W h o ’s
Name: Gail Mora
QWho in
Residence: Tajique, NM
Education: Bachelor’s degree in behavioral
psychology from
Central Connecticut
University in New
Britain, CT
Current job: Quality
director for the Amer-
ican Society of Radio-
logic Technologists in
Albuquerque, NM
First job in quality: Quality manager for
Excel Staffing Cos. in Albuquerque
Previous job: Membership sales director
for the Greater Albuquerque Chamber of
Commerce. Mora says, “I made the jump to
quality back in the early ‘90s when I real-
ized quality was the missing link between
outside sales and inside operations, which
always seemed to be at odds.”
ASQ activities: Senior member, certified
quality auditor and manager of quality/
organizational excellence
Other activities: Member of the 2007 board
of examiners for the Malcolm Baldrige
National Quality Award, current chair of
the Quality New Mexico board of directors,
Quality New Mexico judge since 2006,
member of the Quality New Mexico board
of examiners since 2000
Personal: One son
Favorite ways to relax: Spending time on
the ranch with her horses, dogs, cats and
birds. Mora says she is “awestruck by
nature” and “can’t live without music.”
Quality quote: It’s not so much the mis-
takes you make; it’s what you do next that
really matters.
QUALITY PROGRESS I MAY 2007 I 13
 “I’m not a
statistics genius.
I just know where
to find the answers.”
I N T R O D U C I N G Q UA L I TY T R A I N E R BY M I N I TA B™

Improvement projects come through my door regularly. That

makes me one busy guy. Fortunately, I have Quality Trainer by

Minitab. When I need help with statistical analysis, I rely on Quality

Trainer for the right information. It’s a self-paced e-learning service,

so I can spend as much time as I need and continue my project

when I’m ready. Best part is…I don’t have to interrupt others to ask

questions; I can look up the answers whenever and wherever I

want. Even after I put the kids to bed. Visit minitab.com today or

call 1.800.448.3555 (US/Canada/Mexico).

MINITAB® and all other trademarks and logos for the Company’s products and services are the exclusive property of Minitab Inc.
All other marks referenced remain the property of their respective owners. See minitab.com for more information.
KEEPING
CURRENT
(continued from p. 13)

Kenneth Digges, a former director of Vehicle Safety Research for

NHTSA, and Brian O’Neill, former president of the Insurance Institute
for Highway Safety, conducted the review to determine the problems
ASQ News
with Consumer Reports’ tests. The two reviewed documents and
communications regarding the test and interviewed staff at Con-
sumer Reports and the laboratory in which the tests were run.
Consumer Reports said it does not plan to perform further side-
impact seat tests until there is greater consensus among experts as
to how they should be conducted.

C A P I TA L Q TAG AWARD: Palmes (left), with

Voorhees, shows off his award.

MEMBER WINS TAG AWARD

Technical advisory group (TAG) 176,

Bill Would Ease Baldrige the body responsible for writing the
ISO 9000 series of standards, has

Award Limits given its outstanding professional

achievement award to ASQ member
A bill recently introduced in the U.S. House of Representatives Paul Palmes for his contributions to
the group. Palmes is the vice chair of
would ease restrictions on the number of Malcolm Baldrige
TAG 176. Wayne Voorhees, president
National Quality Awards that can be given in a year. Congress-
of Northern Pipe Products, Palmes’
woman Eddie Bernice Johnson is sponsoring the bill. former employer, received TAG 176’s
Currently, a maximum of three awards can be given in each of outstanding sponsor award.
Baldrige’s six categories: manufacturing, small business, service,
healthcare, education and the new nonprofit category. Johnson’s
INTERNATIONAL MEMBER
bill proposes a maximum of 15 total awards, without any caps for
EARNS CENTURY CLUB AWARD
individual categories. Evandro G. Lorentz, an ASQ member
The number 15 was agreed on by Baldrige program director since 1994, is the latest to join ASQ’s
Harry Hertz and the House Committee on Science and Technology, Century Club.
which helped introduce the bill along with Sellery and Associates, ASQ members
become part of
the firm that represents ASQ in Washington. That agreement was
the Century Club
made before the nonprofit category was approved. According to
by recruiting 100
Sellery’s Amy Kimball, if the bill moves forward, its proponents plan new members.
to increase the number to 18 to account for the nonprofit category. He will receive a
The reason for the bill, according to Kimball, is that deserving crystal award.
organizations have been denied Baldrige awards because of the With the addition
of Lorentz, the
category caps. The number of applicants in the healthcare and edu-
Century Club has 54 members.
cation categories has seen a significant increase in recent years, and
Lorentz lives in Belo Horizonte,
the category caps have led to applicants’ “competing within cate- Brazil, and has worked at Usiminas
gories rather than for the award,” she says. Group, a steel manufacturer, since
Kimball says there is no word yet on whether the bill will get a 1979. For more information about
hearing. the program, go to www.asq.org/
eoro/index.html.

16 I MAY 2007 I www.asq.org

short
runs
THE CENTER FOR STUDYING HEALTH SYSTEM
CHANGE (HSC) says consumer tolerance for inaccurate physi-
cian performance ratings varies widely. However, more than one-
third of Americans believe such ratings should be no more than
5% inaccurate. The HSC measured consumer acceptance for
measurement error in physician performance ratings for four
applications. The study’s findings are detailed in Consumer
Tolerance for Inaccuracy in Physician Performance Ratings: One
Size Fits None, available at www.hschange.org/CONTENT/921
(case sensitive).

RABQSA HAS REMOVED the witness audit requirements from its four main qualification based
auditor certification schemes (environment, quality, food safety and occupational health and safety).
The recertification criteria have also been revised to reflect the current three-year cycle. For details, go
to www.rabqsa.com.

CONSUMERS ADVANCING PATIENT SAFETY has launched a website, www.patientsafety.org,

that allows patients and healthcare providers to share information. The site includes a discussion board
to facilitate networking, a shared file repository, articles, reports, a book list, and links to other patient
safety organizations.

UNDERWRITERS LABORATORIES (UL) will provide Automotive

Industry Action Group (AIAG) gap assessment services to automotive
parts and accessories manufacturers in China to facilitate North American
market access for these suppliers. In addition to performing gap analysis,
UL will provide training in problem solving and heat treatment process
control. For more information, go to www.aiag.org.

ACCORDING TO A REPORT BY THE JOINT COMMISSION, U.S.

hospitals have significantly improved the quality of care provided for patients suffering from heart
attacks, heart failure or pneumonia over the past four years. The report details the performance of
accredited hospitals against standardized national perfor-
mance measures and the Joint Commission’s National Patient
Safety Goals. Visit www.jointcommissionreport.org to view
Improving America’s Hospitals: A Report on Quality and Safety.

A CAMPAIGN TO REDUCE DEATHS and injuries from

medical errors in Canadian hospitals is producing “promising
results,” says the campaign’s chair. The Safer Healthcare
Now initiative is reducing the number of hospital born infec-
tions, preventing deaths from heart attacks in hospitals, and ➤

QUALITY PROGRESS I MAY 2007 I 17

KEEPING
CURRENT

lowering hospitals’ overall death rates. The campaign, which centers on saving lives in
six medical areas, began two years ago and involves nearly 600 healthcare teams in 180
hospital systems. For more information, go to www.saferhealthcarenow.ca.

THE AMERICAN SOCIETY FOR NONDESTRUCTIVE TESTING (ASNT) has

released four new publications related to personnel qualification and certification. The
publications cover guidelines for employers to establish in-house certification programs,
ASNT’s standard and updated training for certification, and the body of knowledge to be
used to train and qualify nondestructive testing personnel. For information, go to
www.asnt.org/latestnews/docs2007.htm.

Web Watch
This month’s Web Watch focuses on the Malcolm Baldrige National Quality
Award. For more quality related websites, visit www.asq.org/links.

www.baldrige.nist.gov
The Baldrige National Quality Program’s (BNQP)
official website is full of resources. Visitors can find
the Baldrige criteria (in PDF format), award applica-
tion forms, answers to frequently asked questions,
a calendar of deadlines and training opportunities,
contact information and BNQP history. The site
also includes profiles of Baldrige award recipients
dating back to 1988, when the first award was
given.
www.baldrigeplus.com
This site from New Zealand presents a library of
case studies and best practice examples from orga-
nizations that have improved using the Malcolm
Baldrige National Quality Award Criteria for
Performance Excellence. Also on the site are a
Baldrige primer, tips on writing an award applica-
tion, worksheets and a PowerPoint on how to do a
self-assessment.
www.networkforexcellence.org
This site, maintained by the Alliance for
Performance Excellence, provides a directory of
state awards that are based on the Baldrige crite-
ria. These are meant as starting points for organi-
zations that plan to someday apply for the Baldrige
award.
More websites. Links to and descriptions of these
sites and past Web Watch sites can be found in the
cumulative Web Watch listing online. Click on the
Quality Progress link at www.asq.org.
Found an interesting quality site? If you
come across a noncommercial site that
could be useful to other quality profes-
sionals, e-mail it to dnelsen@asq.org.

18 I MAY 2007 I www.asq.org

ASQ

ASQ Team Offers

SOX Comments
A team from ASQ’s Sarbanes-Oxley (SOX)
Community has responded to calls from the
Securities and Exchange Commission (SEC) and
the Public Company Accounting Oversight Board
(PCAOB) for comments on proposed management
guidance rules and accounting standards. The rules
and standards cover ways in which public compa-
nies are required to exert internal control over
financial reporting.
The ASQ team was headed by ASQ Fellow
Sandy Liebesman and includes Paul Palmes, John
Walz, Donna Spencer and Marty Jaeger.
The proposed SEC rules and PCAOB standards
arose from attempts to deal with issues affecting
the financial community and U.S. management
since passage of the SOX law, which imposed
stringent requirements on management for verify-
ing the accuracy of financial reporting.
The requirement that organizations must demon-
strate an effective system of control led the ASQ
SOX team to research various methods of providing SOX support. After reviewing the Malcolm Baldrige National
Quality Award criteria, Six Sigma methodology, ISO 9001 and ISO 14001, the team recommended use of ISO 9000
and ISO 14000.
The structures of ISO 9000 and ISO 14000 are similar to the guidance of the Committee of Sponsoring Organizations
of the Treadway Commission (COSO),1 which is used by most organizations to ensure an effective system of internal
control. The team also noted that many public companies are registered to ISO 9001, ISO 14001 or both.
SEC and PCAOB are attempting to refocus SOX responses to a risk based, top-down approach, concentrating on
the key controls that can indicate the possibility of financial material misstatements. Liebesman says this will reduce
the cost of compliance and allow organizations to focus on important business processes. It will also foster the use
of quality improvement tools to create more effective operations.
The SOX team looked for ways to build quality methods into the development of financial reports. Review of the
SEC and PCAOB guidance publications gave the SOX team an opportunity to specifically include the following key
practices of the quality and environmental communities:
• Continual improvement techniques
• The use of data analysis to identify and correct potential risks
• Methodology for ensuring personnel competence
• Controls to manage an organization’s documentation and records
• Clarification of management’s roles and responsibilities
The SEC and PCAOB documents and ASQ’s comments can be viewed at www.asq.org/communities/
sarbanes-oxley/abstracts/team-comments.html.

Note
1. COSO guidance describes five elements of a system of internal control: control environment, information and communica-
tion, risk assessment, monitoring and control activities. For the relationship between the COSO guidance and ISO 9001 and ISO
14001 see Sandford Liebesman, “Mitigate SOX Risk with ISO 9001 and 14001,” Quality Progress, September 2005, 91-93. QP

QUALITY PROGRESS I MAY 2007 I 19

Make the World
Your Classroom
ASQ Web-based courses fit into your schedule regardless of your time constraints. All courses are self-paced,
available on any computer with Internet access, and offer the most current and credible information.
You don’t have to leave your world for a great education – Learn virtually with ASQ.

Six Sigma topics include:

• Lean Six Sigma Black Belt – Financial Services Version
• Lean Six Sigma Green Belt – Financial Services Version
• Six Sigma Black Belt – Financial Services Version
• Six Sigma Green Belt – Financial Services Version
• Six Sigma Yellow Belt – Financial Services Version
• Introduction to Six Sigma

FOR MORE INFORMATION ON ASQ'S WEB-BASED TRAINING PORTFOLIO, INCLUDING COURSE

DESCRIPTIONS AND PRICING, VISIT www.asq.org/services OR CALL 800-248-1946.

Priority Code SVAAC97

ECONOMIC CASE FOR QUALITY

The Quality
Diet: Building
A Healthy
Business by
by Timothy
Timothy J.
J. Folkerts
Folkerts

L
et’s face it—quality is not always an easy quality improvement is like succeeding with a diet.
sell. Explaining the principles and tech- No analogy is perfect, but this one provides many
niques to people outside the field can be strong parallels. The challenges facing a dietitian try-
challenging. Convincing management to invest in ing to help a client are similar to the challenges facing
the effort can require considerable perseverance. a quality professional trying to help a company. Once
Sacrificing the hard cash you’ll get from today’s the analogy is recognized, new insights into quality
shipment for future good will is the sort of delayed improvement are revealed.
gratification businesses aren’t always ready to
accept. At every turn there is pressure to cut cor- Quality Pros/Corporate Dietitians
ners, hide problems and just go along. Quality professionals could be called corporate
When facing such challenges, it is helpful to dietitians—there to guide businesses to healthier
remember one simple analogy: Succeeding with lifestyles.
In the eyes of the law, a cor-
poration is much like a per-
son. Indeed, the very word
In 50 Words “corporation” comes from the
Or Less
Latin corpus, meaning body.
Not only do corporations
• Succeeding with quality improvement is like succeeding with a diet. enjoy many of the same sorts
of rights that people do, but
• This powerful analogy relates to something everyone—from line corporations also suffer from
workers to the top boss—can understand. many of the same sorts of ail-
ments. Even a cursory check
shows that many bodies, both
• Quality professionals can plan a course of action, get support from
human and corporate, are
management and motivate co-workers by applying this analogy. badly out of shape.
A poor diet leaves a person

QUALITY PROGRESS I MAY 2007 I 21

ECONOMIC CASE FOR QUALITY
vulnerable. Carrying around extra weight makes
everything just a little more difficult and time con-
suming. Chronic problems like diabetes are aggra-
vated by obesity. Hidden problems like high
cholesterol caused by too much saturated fat or
high blood pressure caused by too much dietary
sodium can lead to sudden, life-threatening heart
Quality professionals could be
called corporate dietitians—
there to guide businesses to
healthier lifestyles.
attacks. Of course, better nutrition isn’t a cure-all
for these problems, but it certainly can limit the
risks.
Similarly, poor quality leaves a company vulnera-
ble. Inefficient procedures and management make
everything just a little more difficult and time con-
suming. Chronic cost overruns due to poor quality
of incoming materials and supplies sap competitive-
ness. Hidden problems in the quality of outgoing
products can lead to sudden, bankrupting product
recalls or lawsuits. Better quality isn’t a cure-all for
these problems, but it certainly limits the risks.
With people, survival of the fittest has been miti-
gated somewhat. We have tamed the world around
us and eliminated many natural hazards. We have
family and friends to support us when we are sick
or weak.
The corporate world is not so forgiving. When
times are good, it is possible for a poorly perform-
ing company to survive. When times are bad, the
wolves will descend, culling many of the weak and
inefficient.
Potential Gains
Many people don’t realize that the primary pur-
pose of a diet should not be to lose weight. Instead,
the primary purpose should be to improve health.
Weight loss is just a pleasant, visible side effect.
22 I MAY 2007 I www.asq.org
In fact, the original motivation for the diet could
be something besides weight loss—it could be
reducing sodium, fat and cholesterol, for example.
Concentrating simply on one facet of the diet can
lead to poor nutrition—insufficient vitamins, min-
erals or protein for proper health. Taken to an
extreme, concentrating exclusively on weight loss
can lead to anorexia—a life-threatening condition.
For a corporation, the primary goal of a quality
improvement initiative is improved corporate
health. A single-minded effort aimed at cutting
costs won’t do. Neither will efforts aimed solely at
increasing quarterly profits, eliminating defects or
pushing more products out the door.
While costs, quarterly profits, defects and produc-
tion all are important, pursuing any one too aggres-
sively will only lead to problems. Excessive cost
cutting will leave a company anemic. Relentless
pursuit of short-term profits often simply delays
problems, as Enron learned. Reducing defects signif-
icantly is often possible, but making the products
perfect becomes cost-prohibitive. Raising produc-
tion without improving or at least maintaining qual-
ity can lead to loss of customer loyalty and sales.
For the more image conscious, dieting and quality
improvement efforts are about improving appear-
ances. But as they say, “Beauty is only skin deep.”
Some companies might pursue ISO 9000 registra-
tion or other outward signs of quality merely to
impress customers, with no real goal of actual sys-
temwide improvement. This façade might work for
a while, but eventually auditors or customers will
recognize there is no wizard behind the curtain.
Quality is not just about reducing fat, but about
improving the true viability of a company.
Choosing an Approach
The potential approaches to dieting and weight
loss are almost limitless: low fat, low carb, vegetar-
ian, replacing meals with diet shakes, skipping
dessert, eating lots of grapefruit, using diet pills
advertised on late-night television, proprietary
programs like Jenny Craig and Weight Watchers,
fasting, gastric surgery and liposuction.
Many approaches can be quite effective at both
weight loss and improved health, some are mildly
helpful, but a few are actually dangerous. You can
go it alone or join a group. You can sign up for a
brand name plan or create your own. You can mix
and match several different approaches. You can
get advice from an expert or buy a book or simply
jump on the latest bandwagon.
Of course, different approaches work differently
for different people. People have distinct budgets,
lifestyles, timelines and goals. Choose wisely, and
better health awaits; choose poorly, and you could
end up with further deterioration of health.
Ideally, a person interested in improved health
should work with a dietitian or nutritionist to devel-
op the right plan. The expert can ensure the diet will
help achieve desired goals while still providing the
balanced nutrition required to maintain health.
Similarly, a company interested in quality
improvement ideally should use quality profes-
sionals to develop the plan that is right for that
company because quality improvement choices
are as varied as diets: total quality management,
plan-do-check or study-act, statistical process
control, design of experiments, acceptance sam-
pling, multi-vari plots, ISO 9001, TS 16949, lean,
Six Sigma, lean Six Sigma, Dorian Shanin’s Red
X, W. Edwards Deming’s 14 points, Joseph M.
Juran’s quality trilogy and Philip Crosby’s zero
defects, to name several.
Quality professionals study the strengths and
weaknesses of the approaches. They contemplate
how various approaches might complement one
other. They analyze different plans in the context of
the specific needs of a specific organization in a
specific industry at a specific time.
The right method (or combination of methods) will
improve the viability of an organization by improv-
ing products and processes. The wrong approach
could actually weaken an organization by diverting
resources to the wrong problems. Occasionally, steps
as drastic as liposuction might be warranted, but any
such corporate surgery carries its own risks.
A trained professional is invaluable in selecting
the proper methods to drive improvement without
sacrificing other aspects of corporate health.
Implementing the Plan
Even after a plan of attack has been chosen, suc-
cess is still a long way off, and that success cannot
be achieved by the dietitian. The dietitian can edu-
cate the client about nutrition issues. The dietitian
can encourage the cli-
ent to develop a sup-
port network. The
dietitian can provide
forms to track progress.
The dietitian can
applaud success and
watch for backsliding. The dietitian can set up
weekly or monthly meetings to provide in-person
feedback.
Ultimately, though, no matter how well crafted
the plan, it won’t succeed unless the client acts on
the plan. The client needs to be committed to im-
proved health.
Quality professionals face the same sort of chal-
lenge. Corporate leaders might say they want
improvement but not carry through with appropri-
ate action. It is important to educate and encour-
age. It is helpful to get suppliers and customers on
board. It is valuable to track progress—anything to
provide motivation and keep focused on the ulti-
mate goals. The quality professional provides his
or her support, but without leadership buy-in to
quality improvement, it can’t and won’t happen.
Quality professionals can help only when corporate
leadership is committed to improvement.
Potential Pitfalls
Quality improvement and dieting can encounter
similar pitfalls. Once you recognize the following
five potential pitfalls, you improve your chances of
overcoming them, allowing you to lead your organi-
zation to quality improvement and business health:
1. Lack of tact
2. Not understanding the system
3. Focusing on the short term
4. Yo-yo quality
5. False economy
Lack of tact: People don’t like to be told they are
fat, and bosses don’t like to be told they are run-
ning a poor-quality operation. Getting people on
board for either weight loss or quality improve-
ment requires quality processionals to understand
personalities, interpersonal relationships and the
current corporate climate.
With a receptive boss, a direct approach might
work best, but make sure you have a plan before
you start pointing out problems. Even though a
QUALITY PROGRESS I MAY 2007 I 23
ECONOMIC CASE FOR QUALITY
wise leader will acknowledge the truth and recog-
nize that something must be done, he or she must
be approached tactfully. Issues with suppliers or
customers can often provide an opening to broach
the subject.
At other times a stealth quality approach might
be better. This is the equivalent of not telling your
overweight spouse that you are now buying low
fat ground beef and diet desserts. After gains have
been realized in small ways, the boss might be
Whether it is miscalculation,
miscommunication,
miscalibration or any number
of other mistakes, quality
plans have the potential to
misfire if key ideas about the
system are not understood.
more receptive to learning about bigger improve-
ment opportunities.
Not understanding the system: Weight Watchers
uses a point system to monitor food intake. For
example, one large apple is two points. If you aren’t
careful, it is easy to miscount points. If you make
the mistake of counting one apple as one point sev-
eral times, the diet will fail.
Similarly, small misunderstandings can lead to
the failure of quality improvement initiatives.
Whether it is miscalculation, miscommunication,
miscalibration or any number of other mistakes,
quality plans have the potential to misfire if key
ideas about the system are not understood.
Focusing on the short term: It is not uncommon
to lose an unusually large amount of weight dur-
ing the first week of a diet. This can set up unreal-
istic expectations and lead to later discouragement.
It is also quite possible to stick faithfully to a plan,
but see different amounts of weight loss each
24 I MAY 2007 I www.asq.org
week. The dieter might be tempted to restrict calo-
rie intake even more following a week of poor per-
formance or to ease up after a week of exceptional
performance.
This is exactly the situation Deming preached
1
through his well-known red bead experiment.
Some variation is inevitable. Reacting to each short-
term change just makes the situation worse. Focus
on the long-term goals and accomplishments to
achieve true improvement.
Yo-yo quality: Many managers don’t seem to
have time to do things right the first time, but they
always seem to have time to fix things later. This is
the equivalent of yo-yo dieting. You overeat and
exercise too little for a couple months, and then
you discover you’ve put on 20 pounds. For the
next two months, you have to work three times as
hard to lose those pounds and get back in shape.
Maintaining steady progress all along is much
easier overall than reacting to fix self-created prob-
lems.
False economy: Skipping lunch but then eating
three candy bars in the afternoon because you are
starving is not effective for dieting. Bragging about
all the lunches you’ve skipped won’t change the
fact that you are still gaining weight.
Similarly, cutting costs in one division but pass-
ing along equal or greater costs to other divisions
is not a viable business plan. The manager or vice
president of the cost cutting division might be able
to brag about improvements, but the improve-
ments don’t prevent the business from losing more
money than before.
Lasting Success
Quality can’t be temporary. Quality can’t be just
a slogan. Quality can’t be the job of just one person
or one department. Quality can’t be subordinate to
today’s production quotas.
Ultimately, success means a fundamental change
in corporate lifestyle. As long as the mentality is,
“We just need to do this until we reach our goals,”
or, “We just need to do this until the boss gets a
new pet project,” then failure is never far away.
When the pressure is removed, the old habits
will creep back in. A culture of corporate quality
must be ingrained into the very fabric of the busi-
ness if lasting success is to be achieved.
So, the next time you have one minute to explain
what quality professionals do, tell them you are the a doctorate in physics
corporate dietitian. You have the plans to make the from the University of
company healthier by eliminating poor habits that California at Davis.
sap profits. You champion improvements that make Folkerts is a member of
everyone look better. You study and educate and ASQ and a certified quali-
encourage and implement to make those improve-
ty engineer and reliability
ments a reality. And you would be happy to share
engineer.
that knowledge with them anytime they want to
know more.

NOTE

1. The conclusion of W. Edwards Deming’s red bead

experiment was that performance differences must be attrib-
uted to the system, not to employees. For details, go to Basic
Concepts at www.asq.org/glossary/r.html.
TIMOTHY J. FOLKERTS is a physics instructor at Barton
County Community College in Great Bend, KS. He earned
Please
comment
If you would like to comment on this article, please post
your remarks on the Quality Progress Discussion Board at
www.asq.org, or e-mail them to editor@asq.org.

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QUALITY PROGRESS I MAY 2007 I 25

ECONOMIC CASE FOR QUALITY

Financial Control
And Quality
by William Stimson and Tom Dlugopolski

ver the years there have been many qual-

O ity strategies, but Six Sigma has gotten

the most attention from top manage-
ment. ASQ has examined the Six Sigma phenome-
non and understands that Six Sigma’s success is
based on its attention to the corporate bottom line.
As a result, ASQ has undertaken a major program,
“The Economic Case for Quality.”1
The case should be easy to make. Quality brings
a distinct financial advantage to those who practice
it diligently as opposed to those who don’t.2
However, we believe the case for quality is not at
all obvious to the top floor. Regardless, top man- agement must be aware of and control its corpora-
tion’s finances to comply with the Sarbanes-Oxley
Act (SOX).
There are two aspects to measuring financial
In 50 Words control: materiality and liability. When quality is
Or Less expressed in these terms, its value should be clear
to executive management. The goal of this article is
to measure the cost of quality in materiality and
• There are two aspects in measuring financial control:
liability because they are critical financial measures
materiality and liability. for any company.

• Every CEO can understand the financial measures of
quality in terms of the strategic goals of the company.
• Knowing the true costs of quality enables effective
management reviews and helps identify anomalies,
causes and trends.
Rationale for Financial Metrics
In the era of mass production, many companies
can no longer ensure the quality of their products.
In-stead, producer and consumer risks are accept-
ed and product or service quality becomes prob-
lematic. Top management determines an
acceptable level of a producer’s risk. Through war-
ranty or marketing ploys, management compen-
sates for that increased consumer risk. Why would

26 I MAY 2007 I www.asq.org


top management choose to accept poor quality if
this option was really poor economic strategy? In
reality, the cost of quality is expressed by a large
variety of metrics, many of which are obscure to
many top executives.
There are financial measures of quality in terms
that every CEO and CFO can understand, relating
to the company’s strategic goals. Moreover, the
measures can help ensure compliance with SOX.
The time is ripe for quality to reassert its impor-
tance by fusing with finance to show management
that quality, too, is a strategic choice.
Reporting the cost of quality in terms of materi-
ality attracts the attention of management because
these are the metrics taught in business schools.
Moreover, materiality reveals the true weight of
quality on operations.
Two aspects pertain to the cost of quality: the
cost of conformance and the cost of nonconfor-
mance. The former is the cost required to make
things right the first time, from competent manage-
ment and operators to top-of-the-line equipment.
Knowing the true costs of quality enables effective
management reviews and helps identify anom-
alies, causes and trends.
Expressed as strategic goals of the company,
quality shows top management it is not a pie-in-
the-sky luxury, but is the critical appraisal of how
well the company does what it does. If you can tie
quality to market value, then SOX becomes the
best ally that quality ever had.
Sarbanes-Oxley Act
SOX is divided into 11 titles that mandate strict
requirements for the financial accounting of public
companies.3 Only two are needed to develop a
rationale for financial metrics in quality: Title III—
corporate responsibility and Title IV—enhanced
financial disclosures.
Title III—corporate responsibility: Section 302
requires the CEO and CFO of every company filing
periodic financial reports under the Securities
Exchange Act of 1934 to certify the reports are true
and that they represent the company’s true finan-
cial condition and the results of its operations. This
protects the investor. It concerns quality profes-
sionals because if the cost of quality is material,
then it must be accurately reported. There is only
one way to know if this cost is material: Measure it
in financial terms.
QUALITY PROGRESS I MAY 2007 I 27
ECONOMIC CASE FOR QUALITY

FIGURE 1 IT Governance Institute of operations, reliable records and reports and

System of IT Performance compliance with standards.4 The definition is con-
sidered practical. When internal control is correctly
Company implemented, it is process oriented and conforms
IT level controls to traditional engineering notions of system effec-
tiveness and stability.
Plan and Acquire and Deliver and Internal control implies a controlling structure, as
organize implement support
well as a process to be controlled. For example, the
IT Governance Institute (ITGI) lays out a system of
General Applications
performance as shown in Figure 1. The system
controls Monitor and controls
includes four types of processes and 34 controls.5
evaluate
Each process addresses a subset of the 34 controls
provided by the ITGI standard control objectives for
Title IV—enhanced financial disclosures: information and related technology (CobIT). The
Section 404 requires that top management verify controls of planning and organization are shown in
the effectiveness of internal controls in the areas of Figure 2. These controls are obviously about man-
finance and operations. What is not yet resolved is agement performance and are strikingly similar to
the extent of operations that must be verified. At the requirements of clauses 4 and 5 of ISO 9001.6
this time, the consensus is that IT controls must be The control framework for operations and ser-
verified because much financial data resides in the vice is similar to that of IT, as shown in Figure 3,
IT system. The prudent CEO will anticipate a which is a business process model with various
requirement for effective controls in any activity activities assigned to each block. You can easily
that could affect the market value of the company. derive a list of internal controls for quality from
this model. For example, Figure 2 shows a few
Internal Control requirements from clause 4 of ISO 9001, in which
The definition of internal control used by the the clause numbers are removed so they can be
Securities and Exchange Commission (SEC) comes considered objectively. They are virtually the same
from the Committee of Sponsoring Organizations as those in CobIT. ISO 9001 requirements are effec-
of the Treadway Commission (COSO). It says inter- tively a list of quality internal controls that meet
nal control is a process to ensure the effectiveness SOX control criteria.
To meet SOX compliance,
management must come up
FIGURE 2 Comparison of CobIT and ISO 9001 Clause 4 with a set of internal controls
for finance and IT. This
CobIT list of internal controls requirement will extend to
ISO 9001 requirements, clause 4 other processes identified as
for planning and organization
Define strategic IT plan. Identify processes for the quality management system. material. Rather than use
Define information architecture. Define organization and relationships. diverse metrics, command and
decision can be eased with a
Determine technological direction. Ensure availability of resources.
common system of gover-
Define IT organization and relationships. Establish documentation system.
nance—for instance, the opera-
Manage IT investment. Define strategic quality plan. tional framework of ISO 9001.
Communicate IT aims and direction. Communicate aims and direction. Integration is achieved simply
Manage HR. Manage HR. by mapping CobIT, ISO 14001
Ensure compliance to external requirements. Ensure compliance to external requirements. and other standard require-
Assess risks. Assess risks. ments into the appropriate
Manage projects. compartments of ISO 9001 in
terms of policies, procedures,
Manage quality.
controls, audits and practices.
CobIT: control objectives for information and related technology

28 I MAY 2007 I www.asq.org

Materiality
The International Accounting Standards
Board (IASB) defines materiality in this way:
“Information is material if its omission or mis-
statement could influence the economic deci-
sions of users taken on the basis of financial
statements.”7
Materiality is a financial issue. So how does
this affect quality? Financial statements are
about the costs of doing business. They include
the costs associated with quality. When the cost of
quality is expressed in terms of the general ledger,
its materiality is transparent and might be impor-
tant. If the cost of quality is not identified, it is an
omission in the financial statement. If the cost is
large enough, then it becomes material and its
omission is a federal crime.
Materiality is not a science. A rule of thumb says if
the financial error is greater than 5%, the cost is mate-
rial. But 5% of what? References might be net income,
gross profit, total assets, total revenue or percentage
of equity. The law is not settled on this and eventual-
ly a convention will need to be agreed upon.
Materiality has never been an issue with quality.
So why now? There are several reasons. We’ve
already discussed the first: The cost of quality has
long been neglected simply because it is not fully
understood in the executive suite. The second rea-
son is SOX, which criminalizes gross materiality.
The third reason relates to an increasing ethical
awareness in industry. Corporate responsibility
issues are a growing part of annual financial
reports and go well beyond the bottom line—they
get to the heart of the business, the impact on peo-
ple, the environment or company values.8
Mapping Operations to Finance
There is a continuum of related financial events
and operations in the corporate life cycle. The task
is to match them to balance the books. This task
might be tedious, but it is not difficult: Go through
a list of quality issues and simply match each ele-
ment to a factor in the general ledger, which tracks
assets, liabilities, incomes and expenses. The gener-
al ledger—tracking the current year transactions,
beginning and ending balances, and net income—
becomes a key document for audit trails.
The general ledger is initiated every year, which
means some accounts are still outstanding; For
FIGURE 3 A Generalized Control Framework
For Operations and Service
Resource Management Product/service
management responsibility realization
Customer requirements Measurement,
and satisfaction analysis, improvement
example, an outstanding account might include a
purchase paid for but not yet delivered or a pur-
chase delivered but not yet paid for. Even without
integration, the accounting trail is difficult because
it extends over several ledgers. But if other depart-
ments participate, the task might become easier. A
strategic picture would involve each department
agreeing on the assignment of a cost. This would
reduce redundancy, prevent omissions, identify the
status of each purchase and payment, and simplify
accounting.
Say, for example, you receive a large noncon-
forming shipment, partially paid for in advance.
Only the end user is aware of the nonconformance
and will insist that its status be identified. This will
force your organization’s purchasing, production,
quality, finance and tax departments to agree on
how such an item will be accounted for. The sys-
tem of governance will eventually streamline to
easy-to-audit uniform policies, procedures and
accounting.
To match operations to finance, the costs of
quality must be expressed in terms of the general
ledger. Poor quality is to blame for many of these
costs, but it isn’t the sole factor in the cost of quali-
ty. In a very good company, it might be a small
part. Capable managers, operators and equipment
are expensive, so strategic quality is not free.
Figure 4 (p. 30) details a partial list of the costs
of quality. You could easily think of more costs,
and that’s the problem. Not only can this vast
array of costs confuse most CEOs, but the list can
also scatter the effect. Many small costs are not
obvious, but they add up. The many measures of
quality must be mapped to just a few items in the
general ledger to focus on their true cost.
This mapping in Figure 4 contains an arbitrary
convention. Any cost incurred through operations
is an operational cost—ipso facto. But it’s not quite
QUALITY PROGRESS I MAY 2007 I 29
ECONOMIC CASE FOR QUALITY

that simple. Some costs of operations come from good product line and millions of dollars in assets.
the expense of running the show, which is neces- But critics claim otherwise.
sary. Other costs are the result of poor quality, • Cem Kaner estimates the cost of quality as
which is unnecessary. So we distinguish between varying from 20% to 40% of sales.9
the expense of operations, which you must have to • Don Mills estimates the cost of quality as
stay in business, and the cost of operations due to varying from 15% to 30% of operating costs.10
unnecessary work. • The Eagle Group estimates the cost of quality
The reason for distinguishing costs from expens- as varying between 25% and 40% of rev-
es is that net income is proportional to net sales enues.11
less operating costs. Too many executives take the These estimates indicate that the cost of quality
chainsaw approach: “Aha! To get more net income, is material, using the IASB definition of materiality.
we have to cut operating expenses. Start firing peo-
ple and sell off stuff until we get in the black The Liability of Quality
again.” If executives amputate the sources of quali- Armand Feigenbaum once said quality is what
ty, they’ll never get in the black. the customer says it is.12 But sometimes quality is
Losses can come in the form of cancelled orders what the jury says it is. Limiting the cost of quality
and unpaid invoices due to poor quality. Accounts to the cost of correction is an inadequate portrayal
receivable is money coming in; loss is money not of its value.
coming in. Total assets are proportional to accounts Strategically, the cost of quality is related to lia-
receivable, so a lesser account reduces cash flow. bility. This liability extends beyond injury or prod-
The point of this lesson in losses is to show exec- uct failure. A company is liable to achieve the
utive management the cost of quality is material to terms of its contracts. If those terms include the
profitability and to the market value of the compa- promise of an adequate system of internal controls,
ny. The cost of quality is within the purview of the then this system is a part of its liability per section
law. Forced to consider the cost of quality, the pru- 404 of SOX.
dent CEO will see how quality can affect the bot- Buyers of large volumes purchase more than the
tom line and SOX compliance. products or services of a company; they buy a share
It might be difficult to imagine that quality is of its production system, too. This is easy to show
material to the value of a major corporation with a by simply considering the unit cost of products. All
company costs are included: fixed costs, vari-
able costs, overhead, amortization and capi-
FIGURE 4 The Costs of Quality talization. The sum of these costs is prorated
over the number of units purchased.
Category Measures of quality Mapping of quality costs Therefore, the volume buyer pays for the
(partial list) (item of general ledger)
entire production system—prorated—in force
Failure Scrap, rework, labor, • Operating costs during the period of performance and for all
sorting,downtime, • Operating expenses (labor) corporate costs embedded in the cost per
slowdowns, complaints, • Variable expenses
unit. This viewpoint, surely to be tested in the
investigations, travel, recall, • Losses
unpaid invoices, lost sales judicial system as SOX matures, will increase
the potential liability of the company.
Appraisal Receiving, in-process, and final • Operating expenses
inspection, test equipment, test • Fixed expenses Every company has an average opera-
technicians, special tests, lab • Depreciated assets (equipment) tional cost of quality. Average means what it
maintenance, quality control, • Fixed assets (technicians) says—sometimes the operational cost will
QC overhead increase, perhaps into the range of materiali-
Prevention Quality planning, design • Operating expenses ty. You cannot know without tracking it. The
tolerances, training, house- • Fixed expenses cost of quality might even drift into the range
keeping, packaging, special • Variable assets (cash flow) of probable liability. Each of us must estimate
sourcing, life cycle tests, field • Inventory our own potential personal liability when we
tests, pre-production tests, shelf buy home and auto insurance. Likewise, a
tests, inventories, cash flow

30 I MAY 2007 I www.asq.org

company must be realistic about its potential liabil-
ity and whether this liability can be affected by the
corporate cost of quality.
Recommendations
In the global economy, companies are using activ-
ity based accounting more often. It is increasingly
difficult to separate the notions of production, ser-
vice, quality and market value. The prudent CEO
must know what’s going on at all levels in the com-
pany. This task is not difficult and can be realized
with a few easy-to-implement recommendations:
1. Set up financial, operations and IT systems
that conform to ISO 9001. Get everything
under one tent—into a single system of inter-
nal controls with uniform policies, proce-
dures, reports, measurement and analysis.
2. Identify key internal controls. Top manage-
ment might balk at assuming responsibility
for a companywide set of internal controls,
but it is not difficult. Every system has a few
key indicators of its status. You need only to
determine an effective level of aggregation of
the set of processes and then learn those few
key indicators. For example, top management
at the TABC (a Toyota subsidiary in Long
Beach, CA) looks at a single key metric on the
production line—first pass yield.13
3. Determine the materiality and variability of
the cost of quality in your company. Know
the threshold of materiality for quality and
flag it for special cause. Let this be one of your
key control indicators. Once you’ve identified
and understand the key indicators, you are in
control of your company within the meaning
of SOX.
ACKNOWLEDGEMENT
The authors thank Janet Crider of Mission Viejo, CA, for
her technical advice and counsel in accounting measures and
considerations of the corporate general ledger.
REFERENCES
1. John Ryan, “Making the Economic Case for Quality,”
white paper, ASQ, 2004.
2. Kevin Hendricks and Vinod Singhal, “Don’t Count
TQM Out,” Quality Progress, April 1999, pp. 35-42.
3. H.R. 3763, The Sarbanes-Oxley Act of 2002, 107th
Congress of the United States of America, Washington, DC,
Jan. 23, 2002.
4. Enterprise Risk Management Framework, the Committee
of Sponsoring Organizations of the Treadway Commission,
reprinted with permission of the American Institute of
Certified Public Accountants, 1994.
5. Framework of Control Objectives for Information Technology
(CobIT), IT Governance Institute and the Information Systems
Audit Foundation, Rolling Meadows IL, July 2000.
6. ANSI/ISO/ASQ Q9001-2000: Quality Management
Systems—Requirements, ASQ Quality Press, 2000.
7. Framework for the Preparation and Presentation of Financial
Statements, International Accounting Standard Board, April
2001.
8. Judy Kuszewski, “Materiality,” SustainAbility Consult-
ancy, Dec. 23, 2004.
9. Cem Kaner, “Quality Costs Analysis: Benefits and
Risks,” Software QA, January 1996.
10. Don Mills, “Cost of Quality,” iSixSigma LLC, www.
iSixSigma.com, 2000-2006.
11. “Cost of Quality Workshop,” The Eagle Group,
www.eaglegroupusa.com, 2006.
12. Armand V. Feigenbaum, Total Quality Control,
McGraw-Hill, 1991.
13. Jerry Le Leux, senior quality engineer, TABC, inter-
view and facility tour, Long Beach, CA, 2002.
WILLIAM STIMSON is a management
consultant at SCI Associates in
Charlottesville, VA. He earned a
doctorate in systems engineering at the
University of Virginia at Charlottesville.
Stimson is a senior member of ASQ and
a certified quality auditor.
TOM DLUGOPOLSKI is the president
of Thomas Business Solutions Inc. in
Cloverdale, VA. He earned an MBA at
Averrett University in Danville, VA.
Dlugopolski is a senior member of ASQ.
He is an RAB certified lead assessor.
Please
comment
If you would like to comment on this article,
please post your remarks on the Quality Progress
Discussion Board at www.asq.org, or e-mail
them to editor@asq.org.
QUALITY PROGRESS I MAY 2007 I 31
 ECONOMIC CASE FOR QUALITY
Reaching Out
To CEOs
by Brien Palmer
T
he Pittsburgh section has been a stalwart in
ASQ. It was one of the first sections creat-
ed, helping bring ASQ to life in the 1940s.
Because of the concentration of manufacturing in
the region, it has always been home to many ASQ
members. Westinghouse Nuclear Fuels Division in
nearby Blairsville was one of the first recipients of
the Malcolm Baldrige National Quality Award
(1988). Medrad, in Indianola, is one of the more
recent Baldrige recipients (2003).
A few years ago, ASQ asked our local section chair
In 50 Words
Or Less
• As part of ASQ’s Economic Case for Quality project,
the Pittsburgh section interviewed local corporate
officers to find out how they view the bottom-line
value of quality efforts.
• The efforts led to positive results, but the Pittsburgh
team says there is still work to be done.
32 I MAY 2007 I www.asq.org
about our interest in a pilot run of something called
the Economic Case for Quality (ECQ). ASQ was
interested in promoting quality as an agent of profit
and prosperity and wanted to initiate some pilot runs
of this strategy before rolling it out nationally.
The Origin of ECQ
In May 2003, ASQ’s board of directors approved
a new essential activity called “making the econom-
ic case for quality.” It was developed in response to
numerous member requests for assistance in trying
to convince their organizations’ executives that
implementing quality would contribute positively
to the bottom line.
ASQ’s staff executives, along with the board of
directors, recognized the importance of such an
activity, particularly during a time when quality
was not enjoying a prominent position in many
companies. The halcyon days of the 1980s and
early 1990s that witnessed a quality boom were
definitely over. While many organizations still
practiced quality in one form or another, it was
often in an isolated manner, with the quality
department housed in a secluded office some-
where. Likewise, many companies were experienc-
ing quality dispersion, with bosses expecting
everyone in the organization to practice quality in
the course of doing their jobs.
 While it is true that many quality gurus, such as
Philip Crosby, had clearly made the point that quali-
ty pays, anecdotal evidence seemed to indicate this
was not resonating anymore with C-level executives.
Many such executives were seeing quality initiatives,
at best, as a cost of doing business and, at worst, as
something to be avoided. These same executives
rarely measured the impact of quality on their bot-
tom lines.
With these thoughts in mind, ASQ decided the
time had arrived for executives to be reminded of just
how significant implementing quality management
could be, especially in terms of increased profitability
and competitiveness. Accordingly, ASQ chartered two
activities. First was a nationwide survey of some 600
executives regarding their attitudes toward quality.
This effort was reported on in a May 2004 article in
Quality Progress.1 Intriguingly, the respondents over-
whelmingly reported a strong belief in the ECQ.
Second, ASQ asked several local sections to par-
ticipate in a pilot run program.
Pittsburgh’s Response
After debating the pros and cons of responding
to ASQ’s request, the Pittsburgh section’s board of
directors decided to submit an application. We
were pleased we were able to assemble quite a
team of volunteers. This team included the section
chair, seven former chairs, two ASQ fellows, two
Quality Press book authors, an ASQ division chair,
and five college level professors and instructors.
One of our main reasons for participating was to
generate some excitement around an initiative of real
national impact. We found that just the act of submit-
ting an application had the desired effect—so many
people were signing up to participate that we had
more than we could handle. In the end, about 16 vol-
unteers stuck through the whole project.2
ASQ selected the Pittsburgh and Milwaukee sec-
tions to participate in the pilot run. Milwaukee served
as a control group to test hypotheses about how to
reach executives, while Pittsburgh used a more
advanced marketing approach, as described later.
Planning and Training
We worked closely with Greg Weiler of ASQ
headquarters to prepare for the effort. Part of this
included a two-day training session in which we
learned the history and goals of the ECQ. We also
did our initial project planning and set up a com-
puter database to support the project.
The overall goal of the ECQ is, of course, to
demonstrate that quality adds value to the bottom
line. The goal of the pilot run was to determine the
best way to make personal contact with business
leaders and persuasively deliver our case. For the
QUALITY PROGRESS I MAY 2007 I 33
ECONOMIC CASE FOR QUALITY
purposes of the pilot run, we focused on regional
companies with $50 million to $500 million in rev-
enue. We wanted to approach companies with
enough resources to have been exposed to formal
quality processes, but we didn’t want mega-corpo-
rations, which might be too hard to approach at the
senior level.
Also, we wanted to meet only with C-level offi-
cers, such as CEOs, CFOs and chief technology
officers (CTOs). We wanted to avoid meeting with
quality managers, because we expected them to
already be convinced of the economic value of
quality. We wanted to hear from those outside the
quality profession who had senior leadership roles
in for-profit companies. Using these and other cri-
teria, we developed a list of 60 target firms.
As the project team, we determined there were
three key contact phases for each person we would
speak to:
1. Approach: What is the best way to get a meet-
ing with a CEO?
2. Dialogue: What is the best way to convince a
CEO about the ECQ?
3. Follow-up: How can we close the effort in a way
that leaves the CEO open to further efforts?
Accordingly, we made plans around each of
these phases.
Approaching CEOs
We used several approaches to gain access to
CEOs. Most notably, ASQ brought in a marketing
agency to develop customized materials designed to
get management’s attention. These took the form of
two different CD sized mailers, each containing sto-
ries about quality practices. The clever design and
unique shape were intended to make the materials
stand out from the mass of daily mail a CEO receives.
The stories included in both mailers were con-
sidered likely to be of interest to a CEO. They also
asserted the importance of quality to the bottom
line and stated our intention to call on the execu-
tive for a more detailed conversation on the topic.
We made it clear that we were not selling anything;
rather, we were interested in sharing observations
on how quality contributed to the economic bot-
tom line.
Later in the project, we used another, somewhat
more dramatic, approach. In an attempt to reach a
handful of executives who seemed to be wavering in
their decisions to meet with us, ASQ and the market-
34 I MAY 2007 I www.asq.org
ing agency sent out digital cameras without memory
cards. We compared quality to the memory card—
essential to effective operation. We promised to bring
the camera’s memory card to an interview with the
CEO, leaving the completed camera as a gift.
In one other approach, we tried contacting ASQ
members who worked for the targeted organiza-
tions and asked them to help us contact and set up
interviews with their senior executives.
The Milwaukee section did not use the direct
mail strategy to gain appointments with CEOs.
This way, it served as the control and Pittsburgh
served as the variable in the pilot run experiment.
Results of Marketing Efforts
The marketing efforts resulted in both good
news and bad news. The good news was that we
were able to make definite conclusions about the
efficacy of using direct mailing to set up meetings
with CEOs. The bad news was that the conclusions
were negative: We did not have a single case in
which the mailing led to a meeting. In fact, the
great majority of officers we interviewed did not
remember seeing the mailed packages.
As one CEO stated, “I get thousands of pieces of
mail. I wouldn’t have any idea whether I got your
piece or not.”
In another case, the interviewer actually spotted
one on the executive’s desk, partially buried under
some papers.
We did get responses about the cameras, but
those responses were also negative. In two cases,
the recipients called us and demanded we take the
cameras back. They seemed indignant about the
process, and we quickly stopped doing it.
Trying to contact ASQ members who worked
inside organizations did not work out as well as we
had anticipated, which surprised many of us. There
are probably numerous explanations for this, includ-
ing uncertainty about allowing an outsider access to
one’s organization, an instinct for picking your bat-
tles with your bosses, and general social distance
between typical employees and senior officers.
Meeting With CEOs
This part of the project—setting up appointments
and then meeting with the CEOs—took by far the
greatest effort on the part of section volunteers.
Early on, we set the schedules for mailings, fol-
low-up telephone calls and meetings. While
 Sample Interview Script
Here is the
basic script the
Pittsburgh sec-
tion representa-
tives used when
conducting
interviews with
senior managers.
Hello, my name is ___________.
I am a member of the American
Society for Quality, which has
chosen companies in Pittsburgh
to pilot an initiative that raises
awareness of the economic bene-
fits of quality. For the next few
minutes, we will discuss what we
are calling the Economic Case for
Quality—the idea that quality pro-
grams contribute directly to the
bottom line.
We’d like to establish your
frame of reference for quality.
We have a few questions. Let me
start by asking what the term
quality means to you?
[Listen to and record execu-
tive’s comments.]
What has been your experience
with quality initiatives and their
impact on your bottom line?
[If the executive describes a high
level of belief that quality improves
the bottom line]: Can you describe
some of your organization’s suc-
cesses?
[Listen to and record a sum-
mary of executive’s comments.]
Thanks for your input. It’s clear
that you see the economic bene-
fit of quality programs.
I’d like to invite you to a lun-
cheon we are arranging with
peer executives in this area.
[Describe details.] Would you like
to attend?
[Record executive’s response.]
[If executive responds positive-
ly]: We’ll send you an invitation.
[If not already discussed]: Is
your organization implementing
or planning to implement any
new quality initiatives in the next
year?
[Listen to and record a sum-
mary of executive’s comments.]
Why did you agree to this
interview?
[Listen and record.]
Did you receive any mailings
from our organization, ASQ?
[If yes]: Which ones? Did the
mailings have any bearing on
your willingness to meet with us?
Do you have any suggestions
for getting this message to other
executives?
[Listen and record.]
Do you have any questions for
us?
[At the end]: Thank you very
much for sharing your time and
ideas with us. Goodbye.
QUALITY PROGRESS I MAY 2007 I 35
ECONOMIC CASE FOR QUALITY
materials were being delivered, we planned our
approach and practiced the meetings.
We decided right away to use teams of two “qual-
ity ambassadors.” One person would take the lead
in the meeting, and the other would take notes. We
developed scripts to ensure we all addressed the
same topics while allowing for anticipated diver-
gence (see “Sample Interview Script,” p. 35). After
covering the scripted items, we would go wherever
the conversation went naturally. We decided to ask
for at least 15 minutes but allow for as much time as
the executive needed to complete the discussion.
After developing the scripts, we practiced them
rigorously, in pairs and in front of all the volun-
teers. This developed self confidence for the am-
bassadors and allowed the natural lead person in
each pair to emerge. This process—the role playing
and selection of lead interviewers—might have
been the single most important action we took.
Everybody came through the project feeling they
had gained confidence in talking to senior leaders.
We were able to establish several successful
interviews by adapting our methods as we went.
For example, as stated earlier, we found we were
seldom able to refer to the mailers. In many of
these cases, we were able to re-mail them and
strike up a telephone dialogue about them.
In other cases, we were not able to generate inter-
est by marketing, but we found we had some inside
contacts in our volunteer group. Using existing
relationships proved to be by far the most effective
method to set up appointments with CEOs.
The second-best method proved to be working
with executive assistants. In many cases, we
dropped everything else we were doing and just
made a direct, personal appeal to the executive
assistant, and he or she would set up the meeting.
This reinforced our opinions about the value of
executive assistants in achieving the day-to-day
business of an organization.
In the end, we completed interviews with execu-
tives in 18 of the 60 companies we approached, for a
completion rate of 30%. All together, we interviewed
chief executives of organizations with collective rev-
enues of more than $3.3 billion.
We consider this a great success in this era of
relentless advertising and overwork. One of our
sponsors initially estimated we would interview
fewer than 5% of our targeted companies.
36 I MAY 2007 I www.asq.org
What They Said
We were greatly encouraged by our interviews.
That is, virtually all of the senior executives we spoke
to already believed in quality as a driver of economic
gain. On the one hand, this validates the findings
ASQ got from its initial survey, which is good. On the
other hand, we suspect (but don’t know for sure) that
we failed to get meetings with other senior executives
less convinced of quality’s relation to the bottom line.
All of our interviewees were pleasant, gracious
and quite convinced of the strategic value of quali-
ty. One of them said, “Of course it makes economic
sense! Why would anyone do it unless it did?”
Other leaders noted that quality had contributed
directly to their bottom lines. Two said that their
companies were able to charge a premium on their
products just because of their reputation for achiev-
ing superior quality. One of these executives seemed
mildly surprised at this turn of events—clearly he
did not set out to gain a tactical price advantage, but
rather to use quality as a beneficial business strate-
gy. Gaining a price advantage seemed like an extra
benefit.
One business leader reported that quality increased
profits in two ways. First, using quality processes in
sales, marketing and new product development helps
increase top line revenue. Second, applying lean prac-
tices in production helps cut costs, which has bottom-
line impact. He said the latter applications were more
mature than the former in his organization.
Another general manager, this one a business
unit president, used to work at AT&T. He said high-
potential employees were assigned to the quality
department to groom their overall business skills.
We were surprised to find a sophisticated quality
program at a multimillion-dollar law firm, com-
plete with benchmarking, internal metrics, team
building programs and a quality officer. The offi-
cers seemed pleased at the business results they
had achieved by the innovative application of
quality practices and anxious to show it off to the
ASQ section volunteers.
Closing Ceremony
Early on, we decided to close the project with some
sort of event to thank our executive interviewees and
celebrate the successful conclusion of the effort. We
had designed a system to interview CEOs, but we
also wanted to design some sort of end point to thank
the participants and set the stage for possible follow-
up actions while adding some value for them.
We set up a luncheon at the prestigious
Duquesne Club, featuring a guest from Medrad
who spoke about the company’s experience receiv-
ing the Baldrige award. We decided to invite only
C-level executives (as well as the interviewers who
had volunteered their time) because the executives
told us they listened best to peer executives. We
invited executives from several industries, includ-
ing manufacturing, healthcare, higher education
and utilities, to create a unique opportunity for
executives to meet peers from other lines of work.
Twenty-three executives accepted our invitations,
and we had a friendly luncheon with an informative
talk by Joseph Havrilla, CTO of Medrad. Guests lin-
gered afterward to chat and exchange contact infor-
mation. Responses to surveys sent later indicated
extremely high satisfaction with the event.
What We Learned
The Pittsburgh section took away many lessons
from this project.
We learned traditional marketing did not work
when setting up the type of meetings we were seek-
ing. There is too much advertising going on already,
and executives are too busy to look at all if it.
Nevertheless, we learned that CEOs will respond
to business critical issues after enough persistence in
trying to set up meetings. We were universally im-
pressed with the high regard our interviewees held
for quality principles. Our efforts reinforced what
the earlier survey had shown: CEOs really do
believe quality has a bottom-line impact.
However, we suspect we were preaching to the
choir. In other words, the people who agreed to
meet with us were already believers in quality.
Likewise, we think the nonbelievers simply did not
agree to meet. Because of this, we didn’t get to test
our ability to convince skeptical CEOs.
We learned that CEOs will listen to other CEOs;
in fact, this was the best avenue for reaching them.
We were pleased to see they would take time out of
their busy schedules to attend events centered on
quality. We also believe the exclusivity of the guest
list helped.
We learned that regular quality professionals in
our section could hold their own with senior exec-
utives. The effort provided a noticeable increase in
our self-confidence with executives.
We discovered the value of having a project the
whole section could focus on. This gave us an oppor-
tunity to work closely together toward something
with a benefit to all of us, which energized the sec-
tion. We also appreciated the opportunity to work
with ASQ headquarters and make some meaningful
and lasting connections between our groups.
We discovered we could engage CEOs in quality
related activities—something we were not confident
of previously. In fact, we planned to follow up by
developing an ongoing CEO focus group in the sec-
tion. Unfortunately, we have not yet carried this out.
All in all, it was a worthwhile project, and we
would definitely recommend it to other sections.
We’ve completed a project that helped give the
section a bit more unity and cohesion and we’ve
added something of value to the quality field.
REFERENCE AND NOTE
1. Greg Weiler, “What Do CEOs Think About Quality?”
Quality Progress, May 2004.
2. Core team members were: John Bauer, Kathi Bretcko,
James Creiman, Paul Degonish, Gregory Garland, Douglas
Hagy, Sailesh Kapadia, Elliott Levenson, Hal Morgans,
Bradley Nelson, Brien Palmer, Richard Pensak, Warwick
Powell, William Rushmore, Richard Veseley and Casimir
Welch.
BRIEN PALMER is managing partner of
InterLINK Management Consulting in
Export, PA. He is a senior member of
ASQ, past chair of the Pittsburgh sec-
tion and team leader for the Pittsburgh
pilot run of the Economic Case for
Quality program. Palmer wrote Making
Change Work: Practical Tools for Overcoming Human
Resistance to Change (Quality Press, 2004). He has bach-
elor’s degree from Ohio Wesleyan College.
Please
comment
If you would like to comment on this article,
please post your remarks on the Quality Progress
Discussion Board at www.asq.org, or e-mail
them to editor@asq.org.
QUALITY PROGRESS I MAY 2007 I 37
BEST PRACTICES
Reach for the
STARS
by Han van Loon
V
arious quality related factors can propel
any organization to new levels of pro-
ductivity and customer retention.
That’s what we discovered several years ago
when we first looked at motivating new staff at
CelsiusTech Australia, a systems and software
supplier.1 The company started in 1990 with fewer
than 12 people. Since then, it has grown to about
300 employees and has become a leading high quali-
ty supplier in its three industry segments: maritime,
defense and intelligent transport systems.
In 50 Words
Or Less
• People, processes and products are three factors that can
create a successful quality culture in any organization.
• STARS is an innovative approach to help people
visualize their role in creating a quality culture.
• One of STARS’ eight themes—personal—involves
setting goals, thinking, acting, reviewing and
supplying improvements.
38 I MAY 2007 I www.asq.org
In large part, CelsiusTech Australia’s growth result-
ed from the commitment and execution of quality
embedded in its corporate culture. CelsiusTech
Australia had a quality system certified to ISO 9001.
However, the company strived to achieve a standard
of quality beyond ISO 9001 conformance. This was
evidenced by never having a nonconformance in an
external audit and winning numerous quality awards.
We believed there was always room for improve-
ment, and in the late 1990s we wanted to show new
employees, particularly those familiar with ISO 9001,
the importance of our quality culture. This culture
leveraged the three elements that determine quality:
people, processes and products (See Figure 1).
People: People decide how well a quality system
operates and the caliber of the products that result.
In particular, it is people who develop the quality
software that becomes highly competitive in the
market.
Processes: Normally when people work togeth-
er, they commit to implement processes. In a strong
quality culture, people educate one another about
best practices and continually improve those
processes.
Products: People use and develop products,
including the technology and tools used to
improve quality results. People want to make
things easier and do things quicker to develop the
products (including products to automate process-
es). These software products include requirements,
configuration, development and testing tools. FIGURE 1 People, Process and Product Model
Quality processes guide and control production,
and measure the process and product quality. Commit to
Develop
When people, processes and products integrate Educate about
People and use
Implement
with each other, they create a synergy with impact
Improve
beyond what any one can achieve on its own.
Process Product
Quality Challenge
CelsiusTech Australia faced a challenge many
other companies face: attracting and retaining the Produce
best people. This is especially important in the soft- Measure
ware business since the best software people can Control
Automate
increase a company’s productivity much more than
an average developer.
Productivity in the software business is deter- • Understand how we worked individually and
mined by two factors: the rate of software creation in teams to ensure high quality outcomes.
and the quality of the software in terms of bugs. • Embrace continual quality improvement.
Bugs result in time and resources spent correcting Therefore, we invested in our new employees
the errors during production and maintenance. We through induction training, including how our
pursued a high quality culture to enhance produc- quality management culture made the tacit notion
tivity and maintain a strong reputation for quality of culture into something practical and easy for
with our customers. Higher productivity and qual- them to follow.
ity lead to better profits, high customer retention
and new business activity. Seeing STARS
At CelsiusTech Australia, we wanted to achieve Most quality people are aware of Walter
a lot with our new employees right off the bat. We Shewhart’s plan-do-check-act (PDCA) cycle.2 We
wanted them to: wanted to individualize this cycle to help new
• Understand our quality culture, particularly employees visualize our quality management cul-
the corporate management vision, norms and ture. We decided to create a simple, improved
values. approach with a memorable acronym for our new

QUALITY PROGRESS I MAY 2007 I 39

BEST PRACTICES
employees to understand our culture and their
roles. STARS combines a personal approach to
quality, teamwork and continual improvement.
STARS initially focuses on how each person should
personally embrace quality (see Figure 2).
Set goals. We wanted to inspire people to focus
on doing the right job and doing the job right. We
focused on a small set of goals to quickly achieve
success.
Think. We strived
FIGURE 2 Personal STARS to present the com-
Theme pany’s quality cul-
Set goals ture as a practical
approach to work.
Supply We considered how
improvements Think to present and dis-
cuss this concept at
employee work-
shops.
Act. At orienta-
tions and induction
Review Act workshops, we
asked employees
how they defined quality, what made a product
superior and what characteristics made a work-
place successful. We wrote their responses in the
shape of a star, and presented the STARS concept.
Review. We reviewed the workshops with the HR
manager, training specialist and participants. We
learned the basic concept was sound but we could
improve it.
Supply improvements. Feedback went toward
improving the concept. At future workshops, we
asked employees how they achieved good results at
work, the advantages of working on a team and
what they defined as a good product. Similar
responses were grouped into topics, and teams were
formed to add ideas to each topic.
We asked the new employees to look at the data
collected and identify any common themes. The
employees offered ideas on themes such as serving
customer needs, assessing alternatives and striving
for excellence.
We recorded these themes using the STARS dia-
gram. We added the employees’ suggestions to
each of the points of the star, then explained the
STARS concept and possible roadblocks—time
pressure, apathy, misunderstanding, lack of com-
munication and uncooperative individuals.
After discussing the presentation with the new
employees, we found our model offered a simple
40 I MAY 2007 I www.asq.org
but powerful view of our quality culture. They
learned the company’s goals and how the compa-
ny looked to improve. New employees then could
assimilate more quickly into the company and
become productive much sooner.
During the next two years, we refined the team,
improvement and customer themes. This quality
approach became the preferred way to describe
and discuss quality within CelsiusTech Australia.
STARS Expansion
Today, the concept has matured into a holistic
leadership and management method comprising
eight themes (personal, team, customer, product,
culture, systems, environment and improvement).
STARS encompasses the qualities of successful
people and relates individuals to star types, such as
white stars, yellow stars, red giants, brown dwarfs,
pulsars and black holes. For example, a yellow star is
synonymous with a person who is positive, warm
and friendly. People usually like to associate with
yellow stars.
The fundamental philosophy is that people are
free willed and ultimately determine how to
embrace quality. The foundation to achieve quality
is based on the STARS personal perspective, which
expands into teams, systems and organization cul-
tures, and combines with customer, project, envi-
ronment and improvement perspectives. A person
focuses on what to improve personally and how to
build and work in high performance teams and sat-
isfy customers through the STARS method.
During workshops on STARS, people are chal-
lenged to describe individual means to achieve
quality outcomes in a variety of new, innovative
and personal ways. Participants learn:
• To use various thinking modes, such as creative
thinking to generate ideas and innovations, lat-
eral thinking to spot opportunities and systems
thinking to understand systemic interactions
• To recognize when they are using reactive
thinking (reaction and pre-learned responses),
judgmental thinking, or even worse, prejudi-
cial thinking
People learn to use 12 thinking modes, each with
its own benefits and drawbacks. For example, judg-
mental thinking is good for assessing the quality of
outcomes but can discourage new ideas and squash
creativity. The twelfth mode is metacognition—lit-
erally “thinking about thinking” and is used to
summarize the lessons learned in the workshop.
STARS Team Approach
The STARS team theme describes how teams can
be a vital and powerful force to achieve quality.
The theme describes the difference between groups
of people and real teams. A real team achieves syn-
ergy and creates results greater than that of indi-
vidual contributions from team members.
The STARS team theme comprises synergy,
teamwork, authority assignment, responsibility
and commitment, and supply of support.
The teamwork stage describes methods for build-
ing teams and fostering teamwork. It uses an inno-
vative technique to create team balance and foster
teamwork essential for team synergy. The technique
determines team, individual, management, enter-
prise and work (TIMEW) goals and needs.
The way to collect, prioritize and reconcile these
five sets of goals and needs is called the TIME-
Whirlpool technique (see Figure 3). Through this
approach, the major common goals and needs are
gathered into a central focus, just like a whirlpool
pulls things to its center.
In a team building workshop, each participant
makes a list of goals that he or she believes impor-
tant. These lists become the basis for team discus-
sion and decision making. For example, in a project
startup team workshop, each participant will list
goals according to:
• Team: His or her desired goals for the project
team
• Individual: The individual goals he or she
wants to achieve
• Management: The important project manage-
ment goals
• Enterprise: The enterprise goals the project
should fulfill
• Work: The project work goals
Each person writes the goals on sticky notes and
sorts them into one or more of the five TIMEW cat-
egories. The categories are shown as a set of map
areas on a meeting room wall. For example, a map
area is created for the goals that fulfill team, indi-
vidual and management categories.
Each participant places his or her goals in the
TIMEWhirlpool map areas. The participants dis-
cuss and recategorize the goals as needed.
Participants can negotiate with each other to com-
bine goals. In the process miniteams can be formed
that support combined goals. In this way a miniteam
can create a combined goal that meets more cate-
gories. Goals that meet more categories become part
of the central focus in the TIMEWhirlpool. In gener-
al, the most important goals are those meeting all
five categories, followed by those that fit four
categories, and so on.
In Figure 3, goal five meets all five categories,
goal four meets four categories, and goal six meets
three categories. Action and planning on the goals
should be considered in that order of importance.
Individuals and miniteams accept a responsibili-
ty and commit to achieving one or more goals with
defined resources and within a timeframe. The
team leader or manager allocates authority to the
people who assume the responsibility to achieve
the goals. As needed, the leader and organization
managers supply support—additional resources or
time to perform the required tasks—to the individ-
uals and miniteams.
The TIMEWhirlpool effectively builds teamwork
because team members are aware of each other’s
goals, tasks and expected interdependencies and
interactions. Miniteams can form to achieve goals
in priority of agreed performance. When the team
acts on a limited number of goals, it can usually be
completed within a short time.
This technique helps create early success and moti-
vates the team to perform well in the future. Building
and reinforcing motivation is part of the STARS cul-
tural theme. Common goals and early success help
create team synergy. As goals are achieved, the team
revisits the TIMEWhirlpool to take on new goals.
FIGURE 3 TIMEWhirlpool
QUALITY PROGRESS I MAY 2007 I 41
BEST PRACTICES

Combining the STARS team FIGURE 4 STARS’ Layered Knowledge Model

theme with the STARS personal
theme can create a reinforcing,
positive team spirit and lay the
foundation for a success oriented
quality culture in any organization.

Using the Method

And Program
People require different levels
of detailed explicit knowledge to
do their work. For example, an
expert in a subject needs very
little detailed instruction because
he or she has internalized most of
the required knowledge. A newcomer to a subject
needs a great deal of guidance and direction.
In the STARS model, these differences are recog-
nized by classifying knowledge into four layers of
increasing detail, as seen in Figure 4.
The top layer comprises the eight themes, which
together can be interpreted as an upward spiral
toward excellence. Each theme of five stages
describes a holistic view of an important subject.
Each theme is supported in the second layer by a
number of suggestions for performing each stage
(suggestions encourage people to make free-willed
choices). The suggestions are supported in a third
layer by a process model. Finally, the process model
is supported by an information layer.
When using STARS, a person, team or enterprise
can:
• Choose one or more STARS themes or one or
more stages in the top layer.
• Choose one or more STARS suggestions from
the second layer.
• Choose to follow a process model in the third
layer to help with the activity details.
• Choose to use checklists, templates and vari-
ous sources of data and information, such as
the internet, from the fourth layer.
In STARS, a person can choose to use all or part
of the information and knowledge from any layer
as needed to achieve the desired quality outcomes.
STARS provides a wealth of concepts, methods and
practices with practical applications in the manner
of a toolbox.
ter a human approach to quality and achieve a
culture of excellence within a company. People
who strive for excellence can achieve success in
their personal and working lives. These people
are the stars who make life better, not only for
themselves, but also for others.
REFERENCES
1. Han van Loon, “STARS of Quality Management,”
Quality Progress, Vol. 33, No. 9, 2000, p. 136.
2. Walter Shewhart, Statistical Method From the Viewpoint of
Quality Control, Courier Dover Publications, 1939.
NOTES
The diagrams (© Han van Loon, 2000-2006) are used with
permission.
© Han van Loon, 2000-07. Used with permission.
HAN VAN LOON is a management con-
sultant based in Switzerland. He is a vis-
iting professor at the Nottingham Trent
University in England and teaches MBA
courses in Geneva. He has a bachelor’s
degree in electrical engineering from the
University of Melbourne and an MBA
from Latrobe University in Victoria, Australia. Van Loon is
a member of ASQ.
Please
comment
If you would like to comment on this article,
please post your remarks on the Quality Progress

STARS and Beyond Discussion Board at www.asq.org, or e-mail

them to editor@asq.org.
The STARS approach grew from a desire to fos-

42 I MAY 2007 I www.asq.org

SIX SIGMA

Six Sigma
At Cigna
by Susan E. Daniels, editor at large

A
t Cigna Corp., a 28,000-employee
provider of employee healthcare and
related insurance benefits, the vice presi-
dent of Six Sigma business excellence is just two
levels below the CEO on the organizational chart.
The woman who holds this title, Leslie Behnke,
In 50 Words
Or Less
• Cigna Corp., a provider of employee benefits,
used Six Sigma to adapt to dramatic changes
in the healthcare industry.
• A Motorola veteran came on board to ensure a
holistic approach using best in class methods.
• Six Sigma initiatives at Cigna are pervasive and
fully integrated with other improvement efforts.
reports directly to a
member of the corpo-
ration’s management
team. This simple fact
helps to explain the
rapid growth, holistic
use and impressive
THE FIRST: CEO E. Edward Hanway
results of Six Sigma
was the first at Cigna to receive a
at Cigna.
certificate from Leslie Behnke for
In 2002, Cigna
completing Cigna’s executive blue
leadership initiated
belt training.
a grass-roots driven
quality program
based on Six Sigma.
“We recognized that we could not continue to get
by as gatekeepers in a marketplace in which dra-
matic changes were moving on the horizon,”
explains E. Edward Hanway, CEO. “We recognized
that we had to listen more closely to the voice of
the employee consumer and not just to that of our
employer customers.”
One of Cigna’s first big steps on the road to
bringing best in class Six Sigma methods to the
healthcare industry was to hire Behnke, an ASQ
member and 25-year veteran of Motorola, where
Six Sigma was started. Behnke had led Motorola’s
Six Sigma activities for more than a decade.
When Behnke arrived at Cigna, her department

QUALITY PROGRESS I MAY 2007 I 43

SIX SIGMA
had a mere two employees; today, there are more
than 20. The first class of Black Belts (BBs) graduat-
ed in summer of 2003.
Today, there are more than 165 BBs in the organi-
zation, along with more than 250 Green Belts.
Another couple thousand employees are trained as
yellow belts to serve on improvement teams.
“We recognized that we had
to listen more closely to
the voice of the employee
consumer and not just to that
of our employer customers.”
Cigna chose Forrest Breyfogle and his consulting
firm, Smarter Solutions, to conduct the training it
needed to build a Six Sigma infrastructure within
the company and to set up a method of integrating
and aligning lean Six Sigma with business strategy
and customer needs.
Leadership and Strategic Planning
Cigna has five strategic imperatives:
1. Establish a meaningful cost advantage relative
to the competition.
2. Help improve the health and well-being of
Cigna by the Numbers
• Net income of $1.2 billion in 2006 compared to $1.6 billion in
2005 (lower in 2006 because 2005 included $349 million from
discontinued operations)
• Income per share of $10.50 in 2006, compared with $10.02 per
share in 2005
• Share price up 18% in 2006, outperforming both the Standard
& Poor’s 500 and all its major competitors
44 I MAY 2007 I www.asq.org
members and the people Cigna insures.
3. Bring innovative products and services to
market.
4. Become the partner of choice to its customers.
5. Create a winning environment in the organi-
zation.
“Our fifth imperative is arguably the most impor-
tant in that we can’t fulfill the other four without it,”
Hanway says. He stresses the importance of top
leadership in creating and sustaining a culture in
which continuous improvement is a way of life—
not just another ad hoc initiative.
“Essentially, we strive at every level to give our
employees the resources they need to succeed,”
Hanway adds. “We work hard to help our people
understand implicitly that when Cigna succeeds,
they succeed—that their success is tied inextricably
to the company’s success.”
Notably, Cigna has blue belt training, in which
executives and managers learn the basics of Six
Sigma, lean, kaizen and the basics of design for Six
Sigma (DFSS). Hanway was the first graduate of
the blue belt course.
Managers also learn what behaviors are required
to ensure the following:
• There is continuous improvement.
• The right projects are selected with the right
people to lead them.
• There is ongoing assessment of projects.
• People have time to serve on projects.
• Managers ask the right questions during each
phase of a project.
Hanway says strategic planning is an absolute
necessity in a company like Cigna that
competes in a tough, volatile market-
place. “You implement your strategic
plan to make your vision a reality,” he
says.
“Six Sigma is a means to that end,”
he adds. “It gives us the wherewithal
to execute effectively on our strategic
plan and to do so in a way that
enhances quality, reduces costs and
makes us a stronger competitor.”
Strategic planning has become
increasingly important as Six Sigma
has matured at Cigna, Behnke adds.
She wants to link quality, Six Sigma,
DFSS and kaizen to strategy so that
they’re impacting things of the FIGURE 1 Cigna’s Holistic Six Sigma Model
most strategic importance. “This
will enable us to reach our strate- Voice of the customer
gic goals,” she explains.

Communication
Six Sigma High level define,
Cigna puts a premium on can- methods and measure and analyze
did, forthright and assertive com- tools to translate Strategic (DMA) to select
munications, according to Hanway. high level analysis target area
“It’s also worth noting that com- business goals
into specific Six Sigma
munication at Cigna is not a top- improvement Metrics alignment, methods and
down process,” he says. “It’s all target areas quality assurance, tools to hit those
Operational targets, driving
about give and take and the standard operating
governance continuous
procedures, change
healthy exchange of ideas and management improvement and
information. achievement of
“Ultimately,” Hanway adds, business goals
“two-way communication generates Tactical execution Specific
projects
enthusiasm and confidence and Define, measure, Design for or events
helps employees understand in spe- improve, analyze Six Sigma Kaizen
cific terms how they contribute to and control (DMAIC) (DFSS)
our success.”
DMAIC solves root cause problems to optimize existing processes.
At the more practical level, Behnke DFSS helps design and test new products, services and technology.
uses a multipronged approach to Kaizen is an accelerated process streamlining event.
communicate with employees:
• Monthly or quarterly business
group town hall type meetings
that always include training
and success stories FIGURE 2 Improving Claims Handling
• An internal website that is live
all the time for messaging Voice of the customer Improve service, especially claims handling.
training and success stories.
• A Cigna Central intranet
where employees can access Improve the loading of hospital and doctor
contracts data, which has a high impact
tools, news and monthly sto- Strategic on claims accuracy and timeliness.
ries about quality and Six analysis

Sigma
• Events where successes are cel- Monitor data loading in more detail.
Operational
ebrated governance Launch teams to address specific
improvement opportunities found.
Cost of Quality
When Six Sigma was launched at Tactical execution Specific projects launched.
Cigna, leadership made it clear the One project’s results:
Define, measure,
Design for
approach would be holistic (see improve, analyze Kaizen • A fivefold improvement in the accuracy
Six Sigma
and control of hospital data loading
Figure 1). “We specifically said it
would not just be productivity • Improved on-time completion of hospital
improvement but would require contract loading from less than 70% to
more than 90%
behavioral changes and a focus on
customers,” says Behnke. “While • $36 million per year of financial benefit
there was a cost cutting component,

QUALITY PROGRESS I MAY 2007 I 45

SIX SIGMA

early projects were very customer specific.”
One such project involved one of Cigna’s largest
clients, which was dissatisfied with errors and how
long it was taking to pay claims accurately. This
customer got its own BBs to work with Cigna. “The
resulting cross business Six Sigma project exceeded
the customers’ expectations from both timeliness
and quality standpoints,” says Behnke. “In fact, the
customer was so satisfied, it gave us additional
business.”
Cigna looks at the cost of doing nothing differ-
ently, figures how much improvement it can make

Major Success Story

Cigna achieved a 49% decrease in total inpatient case
costs following one Six Sigma project.
Background
To better meet the needs of clients with more com-
plex problems, Cigna Behavioral Health (CBH) devel-
oped an intensive case management (ICM) program.
The program’s purpose was to assign personal ICM
care managers to improve patients’ ability to engage and
stay compliant with their medications and outpatient
treatment recommendations. It was hoped this would
reduce re-admission rates for problems such as sub-
stance abuse.
These rates were high and increasing, despite ICM
activities, which included care manager contact with the
patient, assistance with educating patients on their illness
and medications, working with the patient’s family, coor-
dination of treatment plans with mental health and med-
ical providers, and assistance in managing the patient’s
available benefits.
Findings
Analysis revealed some interesting facts, including:
• Re-admission metrics were misleading—in fact,
understated—because they did not include subse-
quent admissions and treatments of problems other
than those related to the original diagnosis and
treatment.
• Identification or engagement of patients at high risk
was inadequate.
• Follow-up discharge plans and use of outpatient
treatment were inadequate.
• Follow-up communication was not effective (too
much and too confusing).
Improvements Implemented
Actions taken included five improvements:
1. Redefine a more comprehensive, customer focused
re-admission metric.
2. Improve discharge and follow-up planning.

Problem 250%
Despite all these activities, re-admission rates for cer- 225% ICM group
200%
tain types of mental illness and substance abuse were Control group
150%
increasing.
100%
Approach
50%
CBH launched a define, measure, analyze, improve and 11%
0%
control project to identify potential causes of the gap -49% -53%
between perceived performance and goals for readmis- -50%
sion under the ICM program and to implement improve- -100%
Total inpatient costs Inpatient adm its
ments and monitor long-term results.
ICM = intensive case m anagem ent

46 I MAY 2007 I www.asq.org

and then comes up with a dollar differential. “The
amount is usually huge, and presenting that num-
ber initially ends up making it easier to get man-
agers to free up people to serve on the process
improvement teams,” Behnke explains. “A 0.1%
improvement can save millions.”
3. Provide automatic ICM enrollment to
providers and patients.
4. Consolidate patient communications, and
improve delivery.
5. Implement protocols, templates and training for
all care coordinators, including employee assis-
tance programs and nonclinical services, while
emphasizing the importance of a comprehen-
sive, holistic approach to care.
Control Phase
A full-year study was designed using 286 patients
enrolled in the ICM program compared with 517
patients with similar problems in a control group.
Results
Results were impressive:
• A 53% decrease in re-admissions
• Savings of about $3,000 per patient and the
previously mentioned 49% decrease in total
in-patient care costs
• A 14.9% improvement in the rate of patients
taking medications as prescribed
Along with the impressive cost savings in outpa-
tient care, Cigna saw even more significant savings
for patients in the ICM inpatient care program:
• The total number of admissions in the ICM
group decreased 53% vs. increasing 11% in the
control group.
• The total cost for inpatient care decreased by
49% in the ICM group vs. an increase of 225%
in the control group (see figure at left).
FIGURE 3 Dramatic Claims Processing
Improvements
• 90% productivity gain in number of claims
processed per hour
• 49% reduction in rework (claims adjustments)
• 75% reduction in held claims
Upper control limit
Number Average
of claims Lower control limit
being held
0
Weeks
• 70% reduction in processing time to add a new doctor
to Cigna’s network
Figure 2 (p. 45) shows the dramatic improve-
ments in claims processing productivity and time-
liness that were achieved early at one Cigna
location following a Six Sigma project. Figure 3
shows the improvements in claims processing
productivity and timeliness in a later Six Sigma
project using a kaizen approach.
Hanway believes Six Sigma has become the
catalyst for creating synergy throughout Cigna,
with cross functional teams building stronger
communications across divisions.
“Everyone shares statistical tools and metrics
and uses a common approach and language,”
Hanway explains. “Altogether, the initiative
demonstrates that if an organization focuses only
on cost, its quality may decline, but if instead it
focuses on quality, its costs are generally lower.”
Cigna’s Way
Before Six Sigma, another fact of life at Cigna
was that a history of mergers, acquisitions and
decentralization had left Cigna with a prolifera-
tion of processes and systems. Rather than run-
ning Six Sigma initiatives parallel to other
process improvement initiatives, at Cigna the
method is integrated with DFSS, kaizen, hoshin
kanri, behavioral performance management and
other efforts.
“To gain maximum flexibility and results,
QUALITY PROGRESS I MAY 2007 I 47
SIX SIGMA

we’ve included every tool ever invented in our

Six Sigma toolbox,” says Leonard C. Javinett,
operations director, business excellence. “But
we include all of these in a common, logical
framework.”
While initial concentration was on efforts
that would bring quick and significant results,
in the last two years as Six Sigma at Cigna has
matured, it has increasingly focused on impact-
ing goals of the most strategic importance to
the organization.
Some business units have used and fully
integrated these tools. Cigna’s program is flex-
ible, with Six Sigma practitioners free to use
anything in the toolbox as long as the focus is
on the voice of the customer (VOC) and the NEQC AWARD: The North East Quality Council (NEQC),
drivers are VOC and business results. The representing a group of ASQ sections in the northeast
skills of knowing which tools to use and how United States, recently gave an annual award for quality
to apply them—and being flexible in their excellence to Cigna. Pictured (left to right) are Paul
application—are combined with consistent Williams, director, network operations; Srinivas Sarathy,
training, methods and measurement, accord- Black Belt (BB), business excellence; Leslie Behnke;
ing to Behnke. LaWanda Miller, BB, business excellence; Leonard C.
And, while the focus has to be on the cus- Javinett, operations director, business excellence; John
tomer, lean methods must be looked at in Watson, Master BB, business excellence; and Rau Cheser,
everything. “Even when using DMAIC, lean Mike Fontana, Shane Gerson and Darryl Grafton, all BBs,
tools are considered, and integration is total.” business excellence.
Behnke adds.

Healthcare’s Big Picture

The challenges of the huge cost of care and
quality of care facing U.S. healthcare have led
Hanway to wonder whether Cigna could extend its
improvement methodology to the industry as a
whole.
Hanway notes rapid changes in the U.S. health-
care marketplace, including:
• A shift away from cost based models of
healthcare toward a value based system
• Medical care cost inflation
• Demographic changes that necessitate the
need for more care availability
• Inconsistent quality of care
• The growing number of Americans who use
emergency rooms for primary care because
they lack health insurance
• Rising consumer expectations fueled by
greater transparency of quality
“Six Sigma is about quality, continuous improve-
ment and sustained excellence—all of which should
be basic to the mission of every organization that’s
in the business of providing access to healthcare,”
concludes Hanway. “At Cigna, we knew that if we
wanted to strengthen our leadership position, we
had to offer consumers meaningful choices in bene-
fits, care and providers and become trusted advis-
ers, coaches and enablers—true health advocates.”
Please
comment
If you would like to comment on this article,
please post your remarks on the Quality Progress
Discussion Board at www.asq.org, or e-mail
them to editor@asq.org.

48 I MAY 2007 I www.asq.org

ECONOMIC CASE FOR QUALITY
Quantifying
Machinery
Availability Loss
by Matthew Parks
M
achine availability is possibly the most
misunderstood and abused metric in
performance based manufacturing today.
Many numerical indicators are taken for granted
in the quest for management by noncompliance
to the standard measures of performance set to
achieve profitability goals among facilities, depart-
ments and divisions. Some of the most common
In 50 Words
Or Less
• When examining quality, performance, costs
and cycle time improvements, we assume that
any performance metrics take into account a
machine’s availability to perform certain tasks.
• Organizations often initially focus only on
reducing scheduled downtime. Instead, they
should focus on quantifying the financial
impact of unscheduled losses.
metrics are arbitrarily considered values that lead
to the grand prize of latent profits within an exist-
ing operation.
If a machine, system or process is not available
to perform a task, no product is produced. We
don’t take availability into account because every-
one surely knows a machine must be available to
operate when called on to do so.
When examining quality, performance, costs
and cycle time improvements, we rightly assume
that any performance metrics take into account a
machine’s readiness and availability to perform
certain tasks in the name of cost reduction and
lean operations.
As a performance metric, if availability improves
from 95 to 99%, the resultant value increase is 4.21%.
By most standards, this is a notable but generally
insignificant value because it is less than 5%. In fact,
many manufacturing operations consider 95% avail-
ability to be world-class performance and choose not
to pursue improvement beyond this figure.
In contrast, improvement campaigns that only
seek to achieve the highest value possible without
understanding the financial reward are not direct-
ed properly and often push a project into diminish-
ing returns.
By quantifying the production results associated
QUALITY PROGRESS I MAY 2007 I 49
ECONOMIC CASE FOR QUALITY
with availability improvement efforts, a knowledge
driven organization can achieve true world-class
performance by calculating returns and focusing
resources for maximum profitability.
Initial Focus
Many organizations initially choose to focus on
reducing scheduled downtime to increase the effec-
tive capacity of a production operation. These ini-
tiatives generally include single minute change of
die procedures, poka-yoke implementations and
operator break time rotations. Such efforts are often
found easier to improve short term than reducing
the frequency of unscheduled events would be.
Availability loss in the form
of machine breakdown or
waiting on parts might very
well be the primary culprit
in profit erosion.
But, when all fiscally responsible gains are
achieved, focus should be directed at quantifying
the financial impact of unscheduled losses so tar-
geted improvement projects can be executed in
these areas.
In this article, availability is defined as the degree
to which an entity is in the operable and commit-
table state when called on to function, or the per-
centage of time an entity operates when requested
to perform.
It is important to note that machine unavailabili-
ty related to scheduled downtime activities, such
as maintenance, product changeover and break
time, is not considered lost time because availabili-
ty is the ability to execute when scheduled to do so.
Any noncompliance—such as waiting on parts,
operator idle time or machine failure during the
scheduled runtime—is considered availability loss.
50 I MAY 2007 I www.asq.org
Availability Constant
Using the base definition of inherent availability
to comply with the definition in the previous sec-
tion, availability is defined as:
MTBE
A = ______________
MTBE + MTTR
In which:
MTBE = mean time between events,
and
MTTR = mean time to recover.
This mathematical formula is widely considered
when determining the numerical value of availabil-
ity.1 The relative terms are primarily used by main-
tenance and reliability support personnel.
To transform the terms of the equation into an
operational viewpoint, MTBE is referred to as the
average successful runtime duration and MTTR as
the average duration of a downtime event. To cal-
culate the successful runtime required to achieve a
stated availability, we solve the first equation for
MTBE resulting in:
Runtime required
(Ax ) (average downtime
to achieve x% = _______ ×
(1 – Ax ) duration)
availability
In reviewing the second equation, we see that
the resultant value is the product of a constant and
a variable. The constant is dependant on only the
specified availability value; therefore, we formulate
the availability constant in the next equation.
(Ax )
A cx% = _______
(1 – Ax )
In which:
Acx% = availability constant for x% availability
(nondimensional),
and
Ax = relative x% availability in decimal form.
Using the third equation, we can now determine
the availability constant for any percentage value.
Assuming companies that can compete in a world
market will operate in the 90 to 99% availability
range, we construct the availability constant refer-
ence (shown in Table 1).
Example One TABLE 1 Availability Constant Reference
An operations manager determines that over the
last six months, the average downtime duration of A% Availability constant
line one is 30 minutes. How long, on average, must 99 99.00
the line run without incident to achieve an avail-
98 49.00
ability of 94% based on the six-month history?
Solution—Combining the second and third 97 32.33
equations and referencing Table 1: 96 24.00
95 19.00
Runtime required average
availability 94 15.67
to achieve 94% = × downtime
constant 94% 93 13.29
availability duration,
or 92 11.50
Runtime required 91 10.11
= 15.67 × 0.5 hours.
(94% availability)
90 9.00

Line one must experience an average successful

runtime of 7 hours and 50 minutes to achieve 94%
availability if the average downtime event lasts 30
minutes. To better understand the relationship of
the availability constant to the corresponding avail-
ability, a graphic representation of the table is given
in Figure 1.
The slope of the function in Figure 1 transforms
from a generally horizontal direction to a vertical
path as the availability approaches 100%. The dif-
ference in the 98% and 99% values represents a
102% increase. In other words, to move an opera-
tion from 98% to 99% availability will require a
102% increase in successful runtime duration.
Doubling the average runtime duration prior
to experiencing an unscheduled event is not
impossible, but for most organizations it would
require a costly amount of resources. What is the
resulting reward? The availability metric would
report a 1% gain. To understand the improve-
ment required to achieve greater availability, we
construct Table 2.
Table 2 tells us all availability gains are not creat-
ed equal. In fact, the higher you go, the more diffi-
cult it becomes to capture a 1% gain. You could say
it is like a dog chasing its tail.
An operation currently running at 90% availabili-
TABLE 2 Availability Gains

Availability gap Percentage change in runtime required

FIGURE 1 Availability Constant 98-99 102%
Versus Availability
97-98 52%
120 96-97 35%
Availability constant

100 95-96 26%

80
94-95 21%
60
40 93-94 18%

20 92-93 16%
0 91-92 14%
89 90 91 92 93 94 95 96 97 98 99 100
Availability 90-91 12%

QUALITY PROGRESS I MAY 2007 I 51

ECONOMIC CASE FOR QUALITY

ty that we want to achieve 91% will have to increase FIGURE 2 99% Availability Operation
its average successful runtime by only 12% (from 1
hour, to 1 hour, 7 minutes and 12 seconds). The Beginning of 90 hours Total
same operation at 96% wishing to move to 97% runtime = 0 success elapsed
would have to increase by 35% (from 1 hour to 1 time =
hour and 21 minutes). 90 hours

What’s the Real Difference?

To understand the true difference between a 95% FIGURE 3 95% Availability Operation
and 99% availability operation, we must quantify
the additional losses and demonstrate the variation
90 hours
graphically. As noted earlier, the corresponding success
metric will yield a 4.21% improvement, which
might be considered too insignificant to allocate Beginning of Total
runtime = 0 19 hours 14 hours elapsed
the funds needed to capture profits. time
For ease of quantification, we construct a fourth 94 hours
equation using the availability constant (Ac) to 1 hour down 1 hour down
compare each value and determine the number of
additional downtime events incurred by an opera-
tion of inferior performance:

Additional
A cx desired
operational = ________
A cx existing
events
Using Table 1 (p. 51) and the fourth equation, we
see the ratio of events will be (Ac99 : Ac95), result-
ing in a value of 5.21 (99/19). To interpret, a 95%
operation will experience 5.21 downtime events for
every one event experienced by a 99% achiever—
in other words, 4.21 additional events during the
same duration. To better understand the gravity of
this difference, here’s another example:
Example Two
TDF Corp. has received an order for 9,000 parts
to run on line two. The current tooling allows an
achievable performance of 100 parts per hour call-
ing for a 90-hour production run. The average
duration of a production downtime event on line
two per the performance management software is
one hour. Figure 2 and Figure 3 show how a 99%
availability operation performs compared to a 95%
achiever.
For the 95% operation, every 20 hours has, on
average, one hour down. Experienced manufactur-
ers know the strain placed on performance and
quality when an operation is stopped and started
repeatedly.
This example demonstrates that seemingly high
achievers have multiple opportunities for noncom-
pliance and call for both human and material
resources beyond what is actually required to fill
an order. Four additional hours of resources—cost
overruns for human resources (generally overtime
rates), energy and scrap from multiple startups—
are required to run at 95% availability.
Application
When planning a production run, management
frequently considers the quantity required multi-
plied by the achievable performance rate as the
scheduled runtime to fill an order. Innate to this
figure is an expectation of x% availability.
If the availability percentage is not achieved, it
is the responsibility of maintenance or some other
function to take the blame for cost overruns for
the production duration. Availability loss in the
form of machine breakdown or waiting on parts
might very well be the primary culprit of profit
erosion.
The developers of the Toyota Production
System understood this principle and worked to
suppress it by including autonomous operator
maintenance and point kaizen blitz events in their
operational structure.
If an organization determines the calculated
MTTR from these events has a significant variance

52 I MAY 2007 I www.asq.org

or chooses to focus initially on reducing the mean MATTHEW PARKS is a principal with Rodion Parks LLC
recovery time, equivalent or expanded gains in in Baton Rouge, LA. He earned a bachelor’s degree in
availability can be achieved. mechanical engineering from Louisiana State University
Reducing the time it takes to recover from loss and is an ASQ certified reliability engineer.
of machine function or part flow
might prove to be the most prac-
tical approach to increasing
availability. Activities such as
standardized maintenance re-
sponse, documented trou-
bleshooting procedures, and
organized and prepped part
stores all contribute to improving
the response time.
When referring to this mea-
FRESH
sure, remember that MTTR rep-
resents the average response
time. If the 90% confidence inter-
SPC charts
val of MTTR is broad, efficiency
improvements in the way of
Instantly
recovery time should prove a from any data
practical first step.
Many managers start improve- source
ment projects without under-
standing the difficulty or true
financial impact of achieving the
stated goals. The knowledge dri- Point, click, chart
ven organization understands
principles such as this one: To
move a manufacturing opera-
Download a 30-day trial at www.pqsystems.com
tion’s availability from 98% to CHARTrunner is SPC software that fetches data from Excel, Access,
99% will require a successful Oracle, SQL Server, and other databases to generate up-to-the-minute
runtime improvement of 102%. charts. It is the only process charting software that always provides
Properly quantifying improve- fresh charts with no
ment efforts with strategic plan-
importing, exporting,
ning and execution of such
copying, or pasting.
principles is the timeless key to
world-class performance. Use of You’ve really got to
the availability constant method see it to believe it.
will allow for quick and easy
estimates of what to expect in
terms of extended operational
run time, and will provide a
knowledge based estimate for
unscheduled loss events.

REFERENCE

1. Robert Dovich and Bill Wortman, North and South America Australia and Asia Europe and Africa
Call 800-777-3020 800-777-3020 03-9770-1960 01704-871465
CRE Primer, Quality Council of Indiana,
2002.

QUALITY PROGRESS I MAY 2007 I 53

PROCESS IMPROVEMENT
Benchmarking
Goes to School
by Michael J. Armstrong
A
s the saying goes, “Be it ever so humble,
there’s no place like home.” For several
thousand students at Carleton University
each year, their home away from home is in on-
campus housing. In fall 2004, Carleton started a
benchmarking project to improve the quality of its
housing allocation service.
The project consisted of nine main stages:
1. Evaluating current process performance.
2. Forming a multi-functional improvement team.
3. Mapping the existing process.
4. Listening to the voice of the customer.
In 50 Words
Or Less
• Carleton University used benchmarking, customer
feedback and gaps analyses to improve its process for
assigning on-campus housing.
• Carleton’s efforts reduced cycle time and vacancy
rates and increased student and staff satisfaction.
54 I MAY 2007 I www.asq.org
5. Finding best-in-class partners.
6. Analyzing gaps.
7. Recommending improvements.
8. Implementing changes.
9. Measuring results.
Evaluating Current
Process Performance
Carleton is a public university in Canada’s capital
city of Ottawa. Carleton’s on-campus residences con-
tain spaces for 2,600 students in single and double
rooms. These are spread across nine buildings that
offer various room layouts and amenity options.
Three quarters of these spaces are reserved for new
first-year students (freshmen), and the remainder are
for other undergraduate and graduate students.
In most years, the number of new students
applying for residence exceeds the number of
spaces available. In spite of this, at any given time,
some rooms are empty due to cancellations by the
students. For example, the residence vacancy rate
was 3.4% in September 2004, the first month of the
academic year. This was similar to the average
vacancy rate in the Ottawa region (see Figure 1)
and at other universities.
If the vacancy rate was 3.4%, then the yield on the
university’s residence application and assignment
process was 96.6%, because 96.6% of rooms were
successfully filled. The vacancy rate is a key perfor- FIGURE 1 Average Vacancy Rates for Residences
mance measure for the university’s accommoda-
5%
tions services office, as each vacant room represents Surrounding city of Ottawa
a loss of revenue for the university and deficient ser- Carleton University
vice for a student who could have lived in it. 4%
Another challenge involving the residences is the
large amount of seasonal work needed to process 3%
students’ housing applications. Adding to the work-
load, construction projects over the last five years 2%
have increased the number of residence spaces by
57%. Employees in accommodations services often
1%
work overtime in the summer to process all of the
applications on time. This adds to the system’s cost
of quality in the form of increased labor costs for the 0%
September December September December September
university and increased stress for the employees. 2004 2004 2005 2005 2006

Forming a Multi-Functional Team

In fall 2004, the department of housing and confer-
ence services began its project to improve the process
by which students apply for and are assigned hous-
ing. This project had three main goals:
1. Reduce residence vacancy rates to below 1%.
2. Improve student satisfaction levels.
3. Make the best possible use of employee time
and effort.
The assistant director of residence life services
was appointed to lead the improvement project.
Her team included three other accommodations
services workers, one employee from the under-
graduate recruitment office and one representative
from the students’ residence association. Two facil-
itators from the university’s office of quality initia-
tives also participated.1
Accommodations services chose benchmarking as
the basis for the improvement project, realizing sev-
eral other universities already had better processes
Carleton could learn from. Benchmarking would
allow them to improve performance more quickly
than what could be expected from continuous

QUALITY PROGRESS I MAY 2007 I 55

PROCESS IMPROVEMENT

improvement, without the need to reinvent the
wheel by re-engineering the process from scratch.
The proposed project was one of eight submitted
to a review committee chaired by the university’s
vice president of administration. The committee
evaluated the proposals based on their potential to
improve the quality of service provided to students
and approved the proposal from accommodations
services. Management approved the project charter
in November 2004. The first task was for the facili-
tators to provide training on benchmarking tech-
niques to the other team members.
Mapping the Existing Process
The team began its work by mapping the existing
residence application process to establish a baseline.
The team focused most of its attention on the process
used by new first-year students, as illustrated on the
left side of Figure 2.
Beginning in February of each year, Carleton’s
admission office mailed acceptance letters to first-
FIGURE 2 Main Process Steps Before
And After Benchmarking
Mail offer Mail offer
February
to student to student
Potential response times
year student applicants. The university enclosed
accommodation offers to those students who had
indicated interest in on-campus residence on their
university application forms.
To accept the accommodation offer, a student
needed to mail the accommodation form, along
with a $600 deposit, back to Carleton by June. The
university guaranteed space in on-campus residence
to all high school students entering first-year studies
who applied by this June deadline. When the form
and deposit arrived at Carleton’s accommodations
services office, an employee would immediately
send an e-mail acknowledgement to the student.
Students who had not originally indicated an
interest in on-campus housing could also apply for
residence. Accommodations services held a lottery
in June to randomly position these applicants on a
waiting list for whatever rooms remained.
Accommodations services assigned students to
specific buildings and rooms in one large batch
effort in July. This time consuming work involved
locating students based on factors such as building
and room preferences (single vs. double), personal
information (smoker vs. nonsmoker) and academic
program (arts vs. sciences). By the end of July, stu-
dents were told what types of buildings and rooms
they had been assigned to. Room assignment
rework continued into August as some students
cancelled their reservations or requested changes.

The process officially ended each year during

March Student returns Labor Day weekend, when students moved into
form with deposit
residence. This is when students first saw their
Assign student to
specific rooms and learned who their roommates
April building and room would be. Accommodations services continued to
Student returns work during the academic year to fill vacancies that
form with deposit came up whenever students moved out. A vacancy
Re-assign student could occur because a student had withdrawn from
May as required
his or her degree program or because he or she had
decided to move off-campus.
June Listening to the Voice
Of the Customer
Assign student to
After the process mapping, the project team con-
July ducted two focus group exercises with students
building and room
living in residence. The students were asked to
describe their expectations of the assignment ser-
Re-assign student
August
as required
vice process, their perceptions of the services they
actually received and any gaps between the two.2
The team learned that the main critical to quality
September Student moves in Student moves in attribute for the students was the speed with which
they found out specifically which residence build-

56 I MAY 2007 I www.asq.org

ings and rooms they would be assigned to. As it was,
a student might accept an initial offer for residence in
February but not learn until early August whether
she had gotten the type of room she wanted. This
meant the response time, or cycle time, from submis-
sion of housing application until confirmation of
room assignment, could be as long as six months.
This drawn-out process meant students were in
no rush to accept a housing offer, because they
could wait until just before the June deadline with-
out suffering any disadvantage. It also implied that
if they did not like the assigned room type, they
could cancel as late as August. This left Carleton
with little time to fill the empty space.
Finding Best-in-Class Partners
External benchmarking started with a review of
websites of housing offices at 24 universities in
Canada, the United States and Australia. The team
found many universities had moved their residence
application systems online. The website search was
followed by a telephone survey of 12 of these hous-
ing offices to find out more about their systems and
to ask them to collaborate in the benchmarking effort.
The team conducted site visits to four universi-
ties that were seen as leaders in dealing with resi-
dence applications and that made different uses of
computer software for automating their processes:
1. McGill University in Montréal, which used
housing software that interfaced with the
same administrative software Carleton used.
2. The University of Guelph in Ontario, which
used a different commercial software package.
3. The University of Western Ontario, which had
developed its own software.
4. The University of Ottawa, which still relied on
a manual assignment system.
On each campus, team members met with hous-
ing staff to learn about their current processes and
discuss the relative advantages and disadvantages
of each one.
Analyzing Gaps, Recommending
Improvements
The team presented its benchmarking report to
management in April 2005. The report described
the best practices seen at other universities and
suggested adapting many of them for Carleton.
The team recommended Carleton assign specific
residence spaces to new students on a first-come,
first-served basis, instead of waiting to assign them
all at once in July. Cycle times for responding to
their applications would be reduced by several
months, as illustrated on the right side of Figure 2.
This would provide advantages both to the uni-
versity and students. Students would benefit by
finding out sooner whether they had received their
preferred room and building types, thus helping
them to confidently make their housing plans.
Carleton would benefit, as students would have
more incentive to immediately accept admission
and accommodation offers. The university would
know sooner how many students were accepting
and could react appropriately to increase the ulti-
mate yield of the assignment process. The revised
process would also spread the room assignment
workload for accommodations services more even-
ly over a longer period, reducing overtime work.
The team’s other main recommendation was to
move the residence application process to the web.
Students would fill out an online application form
and make their residence deposits by credit card.
The system could automatically send an e-mail
acknowledgement to students and capture their
room preferences in an electronic database. This
would reduce administrative work for employees
and give the students faster responses to their
applications. This would particularly appeal to
students applying from overseas.
The team also recommended accommodations
services develop a marketing plan for promoting
residences to students who were living off campus.
This would be especially useful for filling vacan-
cies that arose during the academic year.
Implementing Changes,
Measuring Results
Carleton implemented many of the recom-
mended changes and is seeing the benefits. As
Figure 1 shows (p. 55), the vacancy rate was only
0.4% in September 2005 and 0.6% in September
2006, implying a corresponding average yield of
99.5% for the application and assignment process
in those two years. This meant about 78 more stu-
dents had been accommodated initially on campus.
The reduced vacancy rate translated into the
university receiving an estimated $400,000 in extra
(incremental) gross revenue over the academic
year. Meanwhile, housing staff were able to reduce
the amount of overtime they needed to work, and
students reported they were very pleased with the
improved process.
QUALITY PROGRESS I MAY 2007 I 57
PROCESS IMPROVEMENT
The residence marketing study is also underway.
Accommodations services is gathering data on stu-
dent application behavior for future analysis with
respect to take-up rates and cancellations. This will
provide ongoing feedback for controlling and fur-
ther improving the process.
58 I MAY 2007 I www.asq.org
The office is redesigning its website to provide
more relevant information to student applicants
while reducing the need for printed brochures.
Also, a representative from the housing office now
attends many of the university’s recruiting talks
and orientation day events. These communication
efforts should help align student
expectations and perceptions of
housing services, thereby enabling
students to make more informed
choices about living on campus.
Work is still underway on the
benchmarking team’s recommenda-
tion for web based applications. A
prototype online system entered
operation in February 2006 and suc-
cessfully handled applications from
guaranteed first-year students for the
2006-2007 academic year. Extensions
of the online system to include other
residence applications are ongoing.
ACKNOWLEDGEMENTS AND NOTE
The author thanks Lynn Burritt, Louise
McDonald and David Sterritt for their
assistance in preparing this article. A
shorter version of this article originally
appeared in the May 2005 issue of the ASQ
Section 407 (Ottawa Valley) newsletter.
REFERENCES
1. To learn about other benchmarking
projects at Carleton University, go to
www.carleton.ca/qualityinitiatives.
2. For more information on the gaps
model of service quality, see Valarie A.
Zeithaml, Delivering Quality Service:
Balancing Customer Perceptions and
Expectations, Free Press, 1990.
MICHAEL ARMSTRONG is an associate
professor in Carleton University’s Sprott
School of Business in Ottawa, Ontario. He
has a doctorate in business with a focus in
operations research from the University of
British Columbia. Armstrong is a senior
member of ASQ and is a certified quality
manager, reliability engineer and Six
Sigma Black Belt.
3.4 PER
MILLION
Reviving the Process Map
R
ecently, I was conducting a
series of project reviews at a
client site. Several Green Belt
(GB) teams, their project Black Belts
(BBs) and Champions, and two
Master Black Belts (MBBs) participat-
ed in the reviews.
Toward the end of the reviews, I qui-
etly leaned over to one MBB and asked
why the teams were using basic flow-
charts instead of process maps. The
MBB nonchalantly replied that process
mapping took too much time and basic
flowcharts were much easier to use
and understand for all concerned.
Imagine my surprise! Here was an
MBB essentially discounting the use of
one of Six Sigma’s most fundamental
tools. Concerned by this, I spoke with
several different colleagues later that
same week only to find they have
noticed the same alarming trend.
They, too, were being told that:
• Flowcharts are easier to build.
• Process maps take longer to com-
plete. The delays hamper the
ability to show results quickly.
• Teams don’t like all the details
associated with process maps. The
process maps seemed cluttered.
After reflecting on this input, my
initial reaction was to conclude that I
was drawing too fine a distinction
between flowcharts and process
maps. Should I really care? After all,
didn’t they both use the same sym-
bols? Didn’t both depict the flow of
the process and define the decisions
that have to be made? The answer, of
course, was a resounding yes.
Still unsettled and uncomfortable
with pushing my concern aside so
quickly, I continued to ponder the
issue. Process maps reveal much more
about a process than flowcharts do,
and they provide the GB team and
project BB with more guidance.
Process maps address the key founda-
tional concept of Six Sigma: the con-
cept of Y = f(X), or simply, outputs are
a function of inputs.
You’re saying to yourself, “Hey, we
all know this. Let’s move on.” At
some cognitive level, this might be
true. Perhaps the basic concept of
by T.M. Kubiak
process maps has not been sufficient-
ly internalized by practitioners,
allowing it to become an underused
tool, perceived as being inefficient
Often overlooked,
this tool is essential
for any Six Sigma
project.
and cumbersome. Instead, it should
be the foundational concept.
Categorizing and Classifying
Process Input Variables
Let’s explore the basic anatomy of
a process map, as shown in Figure 1.
Input variables, the X’s, flow into a
transform function called a process.
One or more desired outputs flow
from the process.
Notice the inputs appear below the
flow line while outputs appear
above the flow line. This is simply a
matter of aesthetics.
Otherwise, inputs and outputs
appearing on the same line would
significantly clutter the map, partic-
FIGURE 1 Demonstrating the Y = f(X) Concept
Inputs (X’s)
Inputs are typically
placed below the
process flow line.
• Machines
• Manpower
• Materials
• Measurements
• Methods
• Mother Nature
Don’t forget
to classify the
input variables.
ularly when multiple process blocks
appear adjacent to one another. This
setup isn’t earth-shattering, but elim-
inating it is helpful.
Notice the list of input variables.
They should be familiar, because
they represent the typical categories
(also known as the 6Ms) of the main
bones in a fishbone diagram.
You’ll note some authors include
management as another category
and call the list the 7Ms. Using the
6M’s as a structured approach pro-
vides some assurance that few
inputs will be overlooked.
Table 1 (p. 60) identifies each of the
M’s, along with alternative terminol-
ogy that might be used in service or
transaction based industries, for
example. Commentary and insight
about each M also has been included.
One important aspect regarding
input variables not visible in Figure
1 is their classification. Classifying
input variables helps practitioners
focus on those inputs that are con-
trollable and guides practitioners
away from spending time and ener-
gy on those that are not.
An example of a common classifica-
tion scheme is shown in Table 2 (p. 61).
(continued on p. 62)
Transform function Outputs (Y’s)
• Y1
• Y2
.
.
.
Any • Yn
process
Outputs are typically
placed above the
process flow line.
QUALITY PROGRESS I MAY 2007 I 59
3.4 PER
MILLION

TABLE 1 The 6Ms: Useful Categories When Thinking About Input Variables

Alternate
Input (X) Comment
Terminology
Machines Equipment Machines or equipment do not need to be costly or even high-tech. Don’t overlook the basics.
For example, service and transactional based processes might include the use of simple
devices such as a stapler or a highlighter. When considering input variables of this nature, it
is often helpful to develop a list of tools required.
Manpower People Human type resources might take various forms such as skilled technicians, engineers or
administrative personnel. Even highly automated processes occasionally might call for human
support when preventive or corrective maintenance or actions are required.
Materials Materials Materials might include raw materials or even intermediate subassemblies. Materials are often
consumed or transformed during the execution of a process.
Measurements Measurements Always remember to ensure the measurement system is capable. If a measurement system is
considered capable when it isn’t, erroneous results might occur. This might include overlooking
true critical input variables or concluding some variables are critical when they are not.
Methods Processes Processes come in all shapes and sizes. They might be well defined or very loosely defined. In
the context of a manufacturing environment, there is a category of processes known as special
processes.
Mother Environment Variables in this category can be associated with an internal or external environment. This is an
Nature important distinction, particularly when determining whether such variables are noise variables.
For example, temperature and humidity would likely be considered controllable variables when
the underlying process takes place in a clean room environment. However, if process is con-
ducted outdoors, temperature and humidity might be considered noise variables. They might be
impossible or too costly to control.

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60 I MAY 2007 I www.asq.org

 TABLE 2 Classifying Input Variables

Variable Type of
Comment
Designation Variable
C Controllable The process owner has control of these variables, regardless of whether control is exercised.
Characteristics or values of controllable variables can be set or manipulated to drive one or more
output variables (Y’s) in a desired direction.
N Noise Noise variables cannot be controlled or might be too expensive to control. It is important that such
variables be defined so the Green Belt team or project Black Belt knows which variables should
not be addressed. Attempts to control noise variables often result in frustrated teams and failed
projects.
SOP Standard An SOP is a unique and predefined way of performing a process. For example, it might be an
operating instruction document for assembling a bicycle or preparing an expense report. Just because an
procedure input variable is defined as an SOP, no inference should be made regarding the quality of the
(SOP) process encompassed by the procedure. SOP variables are a subset of controllable variables.
Designating an input variable as an SOP does not exclude it from the process owner’s control.
However, an SOP does suggest that minimal variation is probably associated with it.

X Critical
Critical input variables are another subset of controllable variables. These are variables that have
been determined to have a significant impact on one or more output variables (Y’s). Significance
might be demonstrated through statistical tools such as design of experiments or regression. Early
in the define, measure, analyze, improve and control process—and particularly before the comple-
tion of the analyze phase—use of this designation should be considered tentative at best. Only
after the analyze phase is complete can it be determined with some degree of certainty that a vari-
able is a critical input. Be careful not to confuse this classification of variable with the X used in
the equation Y = f (X).

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QUALITY PROGRESS I MAY 2007 I 61

3.4 PER
MILLION

(continued from p. 59) nation in parentheses. When counseling teams, I have

Properly classifying input variables
requires recognizing the need to fully
understand a process in relation to the
culture and business needs of the orga-
nization.
Let’s assume a technician represents
the manpower required to perform a
given process. What classification or
variable designation from Table 2 (p.
61) should a GB team assign it?
• If the team determines the skill
and experience level of the
assigned technician can be appro-
priate to the needs of the process,
then the team would classify the
technician as a controllable input
variable. It would appear in the
process input list as “technician
(C).” The input variable is fol-
lowed by the classification desig-
• If the team determines manage-
ment will never invest in training
technicians and the technician
assigned to the process is fixed,
the team might consider classify-
ing the technician as a noise input
variable. If this is the case, then it
would appear in the process input
list as “technician (N).”
This example illustrates the need to
revisit processes periodically because
organizations continually change and
evolve. New and insightful manage-
ment might recognize the need to
grow and improve the skill level of
its technicians. Hence, input vari-
ables previously classified as noise
might now be considered to be con-
trollable. Likewise, the opposite
might become true.
generally found it more effective to
focus on addressing whether an
input variable can be controlled
instead of trying to determine
whether it will ever be controlled.
This avoids the complications of
having a team second guess manage-
ment.
Gaining Insights
From Process Maps
Figure 1 (p. 59) demonstrates the
basic architecture and components of
the process map. If we expand
Figure 1 to represent a series of
linked processes or even subprocess-
es, we obtain something such as the
map in Figure 2.
Though still simple in nature,
Figure 2 depicts a representation of

TABLE 3 Identifying Potential Issues With Inputs and Outputs

Variable Comment
Input to processes 1, 2 and 3. However, it was not an output from any of the processes within the scope of the project at hand.
A
If it is output from a process outside the scope, the project team should find its source to ensure its availability when required.

Input to processes 1 and 3. However, it was not an output from any of the processes within the scope of the project at hand. If it
B
is output from another process outside the scope, the project team should find its source to ensure its availability when required.

Input to processes 1 and 4. However, it was not an output from any of the processes within the scope of the project at hand. If it
C
is output from another process outside the scope, the project team should find its source to ensure its availability when required.

Input to process 1. However, it was not an output from any of the processes within the scope of the project at hand. If it is out-
D
put from another process outside the scope, the project team should find its source to ensure its availability when required.

Input to processes 1, 2, 3 and 4. However, it was not an output from any of the processes within the scope of the project at
E hand. If it is output from another process outside the scope, the project team should find its source to ensure its availability
when required.
F Output from process 1 and input to processes 2 and 3.
G Output from process 1 and input to process 2.
H Output from process 1 and input to process 3.

Output from process 2. This variable is no longer found in the remainder of the process map. It might be an extraneous output
I that is no longer needed, and process 2 was never changed to eliminate its production. Alternately, it could be used in another
process beyond the scope of the project at hand. Either way, action is required.

J Output from process 2 and input to process 4.

K Output from process 3 and input to process 4.
L Output from process 4. It might be used in another process.
M Output from process 4. It might be used in another process.

Input to process 4. However, it was not an output from any of the processes within the scope of the project at hand. If it is out-
N
put from another process outside the scope, the project team should find its source to ensure its availability when required.

Input to process 4. However, it was not an output from any of the processes within the scope of the project at hand. If it is out-
O
put from another process outside the scope, the project team should find its source to ensure its availability when required.

62 I MAY 2007 I www.asq.org

 FIGURE 2 Analyzing Inputs and Outputs process map—or the preferred use of
a flowchart—has delayed, or in some
cases, caused a project to fail. And
Outputs F I K L
I’ll bet you have seen it, too.
(Y’s) G J M
A well-developed process map can
Process H Process Process Process
help avert these failures. It can serve
A 1 A 2 A 3 C 4
Inputs as an effective communication tool
(X’s) B E B E and be a constant reminder of where a
C F E J team should focus its time and energy.
D G F K
E H N BIBLIOGRAPHY
O
Benbow, Donald W., and T.M. Kubiak,
The Certified Six Sigma Black Belt Hand-
The process book, ASQ Quality Press, 2005.
boundary scopes Galloway, Diane, Mapping Work Processes,
the process map. ASQ Quality Press, 1994.

T.M. KUBIAK is an
independent consultant
processes we are more likely to classification scheme was suggested. in Charlotte, NC, and
encounter in any organization. For The process map was reconnected to the co-author of The
the sake of convenience, inputs and the fundamental equation of Six Certified Six Sigma
Black Belt Handbook.
outputs in Figure 2 have been Sigma: Y = f(X). Additionally, input
Kubiak serves on many
defined simply as letters. Since input and output variables identified on a ASQ boards and is the
variable classifications are not the process map were analyzed in the immediate past chair of
focus of this section, they have been context of a bounded process. the Publication Management Board. He is a
omitted. I have seen where the absence of a senior member of ASQ.
Upon reviewing Figure 2, several
immediate observations can be
made, including:
• Processes should have bound-
aries. Define them.
• Identical inputs might be re- What does an Electrical
quired for different processes.
• Multiple process outputs might
Engineer and a Fortune
occur. 500 CEO have in common?
• Outputs of one process might
become inputs of another pro-
cess.
• Some outputs might be linked to
They both use SAI Global
processes outside the process
boundaries.
Table 3 summarizes these observa-
ADD VALUE IN THE DISTRIBUTION OF
tions to each of the variables in STANDARDS & TECHNICAL INFORMATION
Figure 2. Note that some of the com-
ments in Table 3 are essentially DELIVER AWARENESS, COMMUNICATION &
statements of fact, while others MONITORING SOLUTIONS FOR TECHNICAL &
demand action, seek information or LEGISLATIVE REQUIREMENTS
require further investigation.
ENHANCE YOUR PEOPLE THROUGH TRAINING &
Summary PROFESSIONAL SERVICES

Perhaps this column has provided ASSURE SYSTEMS THROUGH INDEPENDENT

motivation and a call to action for REGISTRATION
the Six Sigma practitioner to revive
the process map and use this simple
qualitative tool to extract informa- Find out what your organization has in
tion and guidance not present in a common with SAI Global –
basic flowchart. Visit www.saiglobal.com
A set of starting categories useful
for identifying input variables was
presented, and an input variable

QUALITY PROGRESS I MAY 2007 I 63

Professional Networking
Through Each One Reach One
Achieve Relationships
Michael Dreikorn
Joined ASQ in 1993 Ryan Nowosielski
Certified Quality Engineer, Quality Technician, and Mechanical Inspector Joined ASQ in 2005
ASQ Senior member and Quality Press author Upgraded to Senior membership in 2006
Active participant in the Each One Reach One referral program Recruited by Michael Dreikorn

“For every part of ASQ it is important to find new

and emerging leaders, and that’s what I found in Ryan.”
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geographic sections, forums and divisions, and communities of practice, we have created unique
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QUALITY IN THE
FIRST PERSON
5S for Families
M
any articles have been writ-
ten about 5S programs and
their applications in the busi-
ness environment.1 As a quality pro-
fessional, I have been involved with
teaching, implementing, supporting,
improving or revitalizing such pro-
grams in several manufacturing and
service organizations.
When I started, it didn’t occur to me
that these principles would one day
have such a significant impact on my
personal life.
My son was born four years ago,
and because he didn’t come with an
instruction manual, the last four years
have been challenging for my hus-
band and me. We had to get used to
our new roles as parents while
remaining full-time working profes-
sionals.
As our son grew, so did his needs
and space requirements. One of the
biggest challenges we faced was the
increasing clutter in our house that
came with our son’s growing assort-
ment of toys, books, games and what-
ever else he decided to collect. As the
toys became bigger and bulkier every
66 I MAY 2007 I www.asq.org
by Davorka Filipusic
year, and because some of them were
dangerous to step on, they started to
present a home safety hazard in addi-
tion to an aesthetic problem.
Explaining the importance of good
Teaching quality
to a 4-year-old
housekeeping, organization, safety
and recycling to a 4-year-old child
isn’t easy. However, I realized it was
something that should be taught to
children at just that age.
A solution was desperately needed,
so some decisions had to be made
quickly. At the time, I was successful-
ly teaching and implementing a 5S
program in a business environment.
This gave me an idea: Why not apply
the same principles at home and take
back control of my house, while
ingraining these fundamentals into
my son’s daily routine?
Define and Develop
The first thing I had to do was define
and develop a 5S program for our fam-
ily in terms my 4-year-old son could
easily understand and respond to.
The next step was to provide desig-
nated areas in the house, as well as
tools, for organizing and storing
items. This was probably the most
challenging part. While thousands of
storage solutions are on the market
today, our challenge was to find stor-
age elements that would fit well in
our home, have an acceptable appear-
ance, and be functional and child
friendly.
After we settled on the first three
S’s—sort, set in order and shine—it
was time to decide as a family how
we were going to standardize (fourth
S) and sustain (fifth S) activities on a
daily basis. To standardize, we coop-
erated to develop our family’s 5S poli-
cy. We also decided it would apply to
each family member.
The focus of our 5S program was to
quickly identify unneeded items
(clothes, toys, books, CDs, DVDs,
mail, magazines) and process them to
5S IN YOUR
CORNER: A corner
of the author’s
house reorganized
by 5S. Note the
process maps on
the door and the
status board on
the wall.
 FIGURE 1 5S for Kids and Parents
1S: Sort
their designated places while consid-
ering recycling or reusing options. All
5S activities were to be implemented no no Do you
Reuse or
Trash need and
continuously in all areas of the house. recycle?
want it?
Our objectives were to improve the
appearance of our home, contribute to yes yes
the personal safety of all family mem- Recycle or
bers, and improve our mental and 2S: Set in
give as gift order
physical well-being while teaching
our child valuable life lessons. To
measure and sustain our 5S activities,
Find and Everything
we decided that at the end of each no
identify has a place?
day, we would rate our individual 5S
place(s)
efforts with smiling or frowning face
magnets on a special magnetic board. yes no
For children our son’s age, using
face symbols for feedback is very
effective. Our son is very competitive, Everything
so he is willing to do anything to in its place
and safe?
avoid being rated with the dreaded
frowning face.
yes
Back in Contol 3S: Shine
Shortly after implementing 5S, I
regained control of the house, and
everybody in the family, including Call mom or no Cleaning no Clean and yes Reuse or yes Recycle or
me, is doing his or her share of daily dad for help or repair working? recycle? give as gift
5S activities. My son now applies 5S done?
steps in whatever he does without
yes no
any extra effort. It has become part of
4S: Standardize
his daily routine. When someone in
the house says “5S,” everybody
understands what it means and Make 5S a daily task for everyone
knows what needs to be done. in the family to help maintain a
Implementing 5S in your family is clean, safe and healthy environment
an amazing learning experience for
kids and parents. To succeed, all fami- 5S: Sustain
ly members must be involved, but
parent participation and guidance are
especially important. Parents must yes Did we no
lead by example. In my case, this was do 5S well Try again
easy because my husband also is a today?
quality professional and he supported
the idea from the beginning.
5S is a lot more than a cleanup pro-
ject. It is important that both children
and adults have fun while doing it
and at the same time learn important
habits and behaviors at home. The Please
orderly appearance of your home will DAVORKA FILIPUSIC is comment
a quality manager for
improve the quality of your life, and If you would like to comment on
Hafele America in
the lessons learned will remain with Archdale, NC. She earned this article, please post your remarks
your children for years to come. a master’s degree in on the Quality Progress Discussion
industrial engineering
Board at www.asq.org, or e-mail
REFERENCE from the University of
1. For a definition of 5S, see ASQ’s glossary at Zagreb in Croatia and is them to editor@asq.org.
www.asq.org/glossary/f.html. a senior member of ASQ.

QUALITY PROGRESS I MAY 2007 I 67

CAREER
CORNER
The Making of a Knowledge Worker
by Greg Hutchins
his is the story of Dan Sawyer.
T Sawyer is an expert in the
emerging areas of engineering
and technology governance and the
application of the Sarbanes-Oxley Act
to technology.
Sawyer is a new type of worker—a
knowledge worker. Pundits now think
most of us will have to eventually
mature into knowledge workers.
These people are usually paid the
most because they add the most value
to organizations through the ideas
they develop and the ideas they help
monetize.
How did Sawyer, a technology geek,
get to where he is today? I recently
interviewed him as he was engaged as
an IT governance expert for the state of
Oregon legislature. I was intrigued by
how a former software quality engi-
neer had made so many career changes
to eventually become a technology
governance guru.
If Sawyer could transition from
technical software quality expert to IT
governance expert, his story could
offer lessons to QP readers.
Hutchins: First tell me a little about
yourself.
Sawyer: I started as an electrical
engineer. I spent most of my first 20
working years with large companies,
such as Sperry/Unisys and Sequent/
IBM. I followed a career arc of continu-
ous career and technical development,
starting as a programmer for enterprise
mainframe systems, and gradually rose
to director of software, systems design.
Those were the good old days. But
things changed.
Hutchins: How did things change?
Sawyer: A number of eye popping
changes occurred. The business model
for most of the technology sectors
changed from designing and manufac-
turing large mainframes to desktop
computers. Computing speed doubled
every 24 months—Moore’s Law in
action. There was lots more competi-
tion—first domestically, then global-
ly—all of which led to dramatic
changes at Sperry and, inevitably,
affected my career.
Hutchins: What did these changes
mean to your career?
68 I MAY 2007 I www.asq.org
Sawyer: If I was going to be mar-
ketable as a technology person, I had
to adapt, period. I also knew that my
employer wouldn’t look out for my
family and me. I had to take charge
and look out for myself.
This change in mind-set was trau-
matic and dramatic. I had to change
how I saw my self worth as well as
change how others saw my value con-
tribution. I moved into expert based
contracting and started positioning
myself as an itinerant and indispens-
able knowledge worker.
Hutchins: What do you mean by an
Add value, become
indispensable, be
willing to be itinerant,
and you will prosper.
“itinerant and indispensable knowl-
edge worker”?
Sawyer: One of the hard things to
personally acknowledge in today’s
consulting market is that I had to go
where the work was. Work is no
longer location specific. That’s a reali-
ty in today’s global economy. That
was a tough reality for my family.
Second, I wanted to be indispens-
able to my client. This can mean differ-
ent things. I’m brought to the table for
executive decision making. I’m on the
same side of the table working with
my client as a trusted advisor to solve
enterprise technical problems and to
mediate solutions. In some cases, I
might provide peace of mind on gov-
ernance. I might issue a professional
opinion to the board of directors.
Finally, I’m a knowledge worker. I
add demonstrable, doable and applic-
able value in many technology spaces.
I made a conscious decision not to be
in commodity hell.
Hutchins: Commodity hell. That’s a
fairly harsh concept. Do you want to
elaborate?
Sawyer: It’s fairly straightforward.
Commodity hell is low paid, low
Dan Sawyer
value added work. It is routine work
that can be standardized and ulti-
mately outsourced. It might pay well
at first, but in time—sometimes quick-
ly—it is going to be outsourced. It’s
bad business as well as a bad personal
business decision to spend much time
in a commodity business.
Commodity business can be out-
sourced and, in the process, so can I.
Also, there are the pricing pressures
due to outsourcing. If others can
duplicate your work offshore, out-
sourcing will be done quickly. How
quickly is a real revelation.
Hutchins: “Adding value” seems to
be your favorite expression. What do
you mean by this?
Sawyer: Organizational value does
not rest in property, plant and equip-
ment any more. It rests with highly
value added competencies. Once the
ideas are deployed and monetized,
they add intellectual property value
to the company. I’m valued and paid
to the extent I can add demonstrable
value.
Hutchins: Another favorite phrase
is “knowledge worker.” What do you
mean by this?
Sawyer: Knowledge workers are
responsible for innovation and contin-
uous improvement. It’s estimated the
knowledge worker class of worker is
the fastest growing segment of the
population. In general, knowledge
work is the future of consulting.
For example, I have value added
and differentiable knowledge, skills
and abilities. I think for a living. I
solve technical problems. Knowledge
workers are usually paid the most

and have the most impact on an orga-
nization. Companies with the greatest
number of knowledge workers tend
to be the fastest growing.
Hutchins: What are tips to becom-
ing a successful knowledge worker?
Sawyer: I guess there are two pieces
to the puzzle. The first is your techni-
cal and hard knowledge skills, and
the second is your soft knowledge
and maturity. Let me talk about these.
The first thing is having some
knowledge that someone wants. The
knowledge should solve an urgent
problem. The problem can be at the
enterprise/governance level or at a
commodity level. Understand the
implications of the problem and how
it will impact you.
The second is personal and emo-
tional maturity quotient. In some
ways, this is tougher than simply hav-
ing the technical knowledge.
From a work habit perspective, I’d
say that other critical assets include
the ability to self-manage work. Good
work habits are essential. Say what
you mean, and do what you say.
Hutchins: You mentioned that you
anticipated several value migrations
and positioned yourself accordingly.
Sawyer: This is really critical. I per-
sonally experienced several pivotal
migrations.
There is a value hierarchy migration.
Data is at the lowest level, then infor-
mation and then knowledge is at the
highest value level. I started my career
working for large organizations that
built computers and IT systems that
captured data and later stored infor-
mation. Now, due to the internet and
globalization, harvesting data and
understanding information are com-
modities.
Competition is in applying and
monetizing knowledge. That’s why I
made a conscious decision to know
how to translate and apply technology
to business decision making. I aimed
to be at the very top of the knowledge
worker pyramid, specifically in the
technology governance space.
Hutchins: So there are different
types of consultants?
Sawyer: I consciously positioned
myself to be a high end technology
consultant. What does that mean?
There are basically three types of tech-
nical consultants. The lower ones
work on technical problems and are
Quality Results
paid accordingly. Middle level consul-
begin with
tants work on process and project
level problems and do fairly well.
Quality Solutions
High end consultants work on enter-
Quality Solutions has been serving
prise and system level issues. companies internationally since
After more than 30 years in busi- 1990. We are committed to helping
ness, I’ve positioned myself in the every client achieve their goals and
governance space, consulting with top objectives through our dedicated
execs on engineering and technology professional services.
governance.
Hutchins: What do you see as the
next big thing? In other words, is
there such a thing as recession proof
employment?
Sawyer: Good question. Nothing is
really recession proof. Because of my
work in IT and engineering gover-
nance, I’ve been in quality land on
and off for 30 years, mainly providing
Capability Maturity Model software
assessments over the last 15 years. I
think that the next big thing will be INTEGRATED CONSULTING
risk management. SERVICES FOR COMPANIES
I’ve been doing technology and SEEKING A COMPETITIVE
Sarbanes-Oxley work over the last four ADVANTAGE
years. Both deal with managing uncer-
tainty and variance—in other words,
risk. Quality and risk have an inverse ISO 9001:2000
relationship. The logic goes something
like this: Consistency is the hallmark of TS 16949
quality. Risk, as an uncertainty, is the
opposite of quality. I believe quality Customer Satisfaction
professionals should rebrand them- Surveys
selves, learn the language of risk man-
agement and add risk to their quality
Lean Management
toolkits. It’s only smart business.
Systems
Hutchins: What final tip can you
give our readers?
Sawyer: Be resilient. That’s proba- Six Sigma
bly the hardest thing that I’ve had to
do. I’m an engineer. I believe in cause Customer Relationship
and effect. My biggest challenge is Management
that in today’s chaotic job market,
there is little visible cause and effect. Balanced Scorecard
Most work and job factors are beyond
our direct control. Strategic Planning
GREG HUTCHINS is an engineering principal Baldrige Assessments
with Quality Plus Engineering and Lean SCM
in Portland, OR. He is a member of ASQ. International
Benchmarking
Please
comment Customized Services designed
If you would like to comment on for Performance Excellence
this article, please post your remarks
on the Quality Progress Discussion
Quality Solutions, Inc.®
Board at www.asq.org, or e-mail
800-471-1646
them to editor@asq.org.
www.qualitysolutions.com
QUALITY PROGRESS I MAY 2007 I 69
STATISTICS
ROUNDTABLE
Turning Shewhart’s Challenge
Into Opportunity
early 70 years ago, quality
N pioneer Walter Shewhart
threw down the gauntlet:
“The long-range contribution of statis-
tics depends not so much on getting a
lot of highly trained statisticians into
industry as it does in creating a statis-
tically minded generation of physi-
cists, chemists, engineers and others
who will in any way have a hand in
developing and directing the produc-
tive processes of tomorrow.”1
To that list of technically oriented
people, he should have added leaders
and managers. Although statistics has
made some headway in technical func-
tions, we still have not created a gener-
ation of statistically minded leaders.
After all, leaders are the ones who
have the ultimate responsibility for
“directing the productive processes.”
As it becomes ever clearer that leaders
are not going to become statistically
minded on their own, it falls to statisti-
cians to help show them the way.
The Opportunity
On the surface, it looks like an easy
sell. Under the pressures of global
competition and relentless technologi-
cal advances accelerating the speed of
business, the need for significant, mea-
surable and continuous improvement
has never been more obvious.
Companies across industries face
imperatives to:
• Get to market faster with new
products.
TABLE 1 E vo l u t i o n o f S t a t i s t i c s i n I n d u s t r y
Decade Driving force
1940 World War II
1950 Post World War II
1960 Sputnik, Food and Drug Act
and the computer
1970 Environmental Protection
Agency
1980 Global competition
1990 Global competition, IT
2000 Global competition, IT
70 I MAY 2007 I www.asq.org
by Ronald D. Snee
• Achieve more compliant processes.
• Provide on-time and in-full cus-
tomer delivery.
• Improve throughput, cost per unit
and margins.
• Improve yields with fewer defects,
rework and scrap.
• Increase equipment uptime and
plant and capacity usage.
Statisticians must
step forward and lead
management to
become more
statistically minded.
Statistically based improvement
methods like statistical quality control
(SQC), statistical process control
(SPC), Six Sigma and lean have been
demonstrably effective in improving
performance. 2, 3 Statistical thinking
and methods also address variation,
which has been found to affect all
measures of process performance—
quality, cost, delivery and customer
satisfaction.4, 5 Moreover, widely avail-
able, easy-to-use software puts the
ability to do sophisticated calculations
at virtually anyone’s fingertips.
And, as if all those factors aren’t
persuasive enough, a number of com-
panies have made statistical thinking
a requirement for their leaders and an
Focus
Statistical quality control
Increased production
Research, development and
manufacturing
Biopharmaceutical, statistical computing
and environmetrics
Total quality management
Six Sigma
Six Sigma and lean manufacturing
integral part of their operations. These
companies include Motorola, Allied-
Signal/Honeywell, General Electric,
Home Depot, DuPont, Bank of
America, 3M and W.R. Grace.
Despite these notable examples and
the availability of methods and soft-
ware, legions of today’s leaders remain
blissfully unaware that by empower-
ing nonstatisticians with statistical
thinking and tools, they could dramati-
cally improve performance and make
far better business decisions.
Meanwhile, many statisticians and
quality professionals have remained
stuck in their now rapidly diminish-
ing consultative roles of analyzing
data, designing experiments, teaching
statistical tools and consulting on
other people’s projects while having
little leadership responsibility and less
accountability.6
This impasse offers statisticians and
quality professionals a golden oppor-
tunity to step forward and make the
case to leadership for creating the
generation of statistically minded
leaders that could take their organiza-
tions to the next level of continuous,
sustainable improvement. As Table 1
shows, throughout the past century
we’ve seen steadily increasing impor-
tance placed on statistics.
In addition, many statisticians and
quality professionals have migrated
from traditional consultative roles to
new leadership roles in improvement
efforts, as shown in Table 2. Today,
those statisticians and quality profes-
sionals are in position to complete the
changeover.
What would success look like? In
statistically minded organizations,
you would find employees of all types
working in teams, using statistical
thinking and methods and other prob-
lem solving tools in combination with
process knowledge and understand-
ing to solve problems and improve
processes. George Box has pointed out
that the ingredients for achieving this
success are ready in hand:7
• Simple, but powerful, problem
solving tools
 • Human resources to apply them
However, Box also points out that
breakthroughs cannot happen until
top management realizes the enor-
mous potential of these ingredients
and resolves to empower the work-
force to apply improvement tools in
all operations on projects likely to
save money.
Starting the Revolution
We’ve learned repeatedly that man-
agement must lead any culture change
if it is to be successful in the long term.
Statisticians can begin this revolution
by showing leadership the power and
potential power of a statistically mind-
ed organization—that only results
from a carefully designed program
based on these eight principles:
1. Keep a focus on the bottom line.
Too often, statisticians and quality
professionals take the attitude that
“show me the data” is their para-
mount responsibility. In fact, it should
be “show me the money.” In propos-
ing pilot projects in Six Sigma or some
other statistically based improvement
method, make it clear to leadership
that the principle of project selection
will be bottom-line impact.
No project will be approved unless
that bottom-line benefit has been
identified and validated by the
finance department. In my experience,
such projects typically yield annual
savings of $50,000 to $250,000 and
even more.
2. Provide a small number of tools
linked and sequenced in an overall
improvement framework. Exposing
people to a wide variety of tools “cafe-
teria style” and expecting them to select
the right ones and figure out how to use
them is a low-yield strategy. Instead,
provide a small set of tools integrated
with a problem solving framework that
is sequenced and linked together. The
user will know how the output of each
tool is used as the input for one or more
other tools.
The five-phase define, measure, ana-
lyze, improve and control (DMAIC)
improvement process has proven to be
a highly effective improvement frame-
work. The broad use of DMAIC for
improving existing processes adds pre-
dictability, discipline and repeatability
to projects and provides a straightfor-
ward vehicle for promoting the wide-
TABLE 2 N ew E x p a n d e d R o l e o f S t a t i s t i c i a n s
A n d Q u a l i t y P r o fe s s i o n a l s
Old role: consultative
Analyze data and design experiments.
Teach statistical tools.
Work with technical people.
Consult on other people’s projects.
Narrow expertise and accountability.
React.
spread use of statistical and quality
techniques.
Through DMAIC you can link and
sequence the required tools regardless
of their source, including lean (which
seeks to eliminate various forms of
waste through such approaches as
just-in-time manufacturing), total
quality management, which seeks to
integrate all organizational functions
to meet customer needs and organiza-
tional objectives) and other improve-
ment tool sets.
The key, however, is to confine the
set to a few tools and make sure each
tool generates outputs that become
inputs for the next tool in the
sequence.
3. Provide easy-to-use software.
Widely available, easy-to-use software
has let the statistical genie out of the
bottle. Statisticians no longer have the
market cornered for calculating statis-
tics and applying statistical tools.
Instead of resisting such software,
make it available to people through-
out the organization and teach them
how to use it effectively.
Don’t worry about the software
replacing you. It will make you obso-
lete only if you cling to your old role
as a reactive statistical services
provider responding to other people’s
projects instead of a proactive leader
of improvement.
4. Provide how to, project based
training. Leaders often hesitate to
embark on full-scale improvement pro-
grams based on unfamiliar methods
because of the great investment of time
in training and the long lag time
between that training and concrete
results. You can overcome this objec-
tion by combining training with live
projects. Project based training not
only produces immediate financial
business results, but it also makes for
New, expanded role: leadership
Determine the appropriate strategy and approach.
Design training systems, coach and mentor.
Work with managers and technical personnel.
Lead cross functional projects.
Broaden expertise and accountability.
Lead.
far better training because participants
will take real-world projects more seri-
ously than classroom exercises.8
5. Use a comprehensive training
success model. All too often, training
evaluation forms only ask whether
the participants liked the training and
learned the material. Project based
training demands a more robust
model of training success. Certainly
find out if participants liked the train-
ing, using session surveys and end-of-
day feedback forms. Use mentoring,
project reviews and certification
exams to determine whether they
learned the method.
But add two more dimensions to the
evaluation. First, did they use the
methodology? For example, how many
of the tools, on how many completed
projects and in what period of time?
Second, did they get results, measured
by improvements in process perfor-
mance and in bottom-line results?
6. Create supporting infrastructure.
As management begins to understand
the power of statistically based
improvement, and projects begin to
proliferate, stress the need for dedicat-
ed personnel and management systems
and the need for a permanent cadre of
improvement leaders. Management
systems should be created to embody
the new way of thinking in the entire
organization and sustained over time—
creating, in short, a new culture.
Those management systems include:
a project selection process, career plan-
ning for improvement leaders, training
capability, a project review process, a
project reporting and tracking system,
an audit system for previously closed
projects, a reward and recognition plan
and a communications plan.
Also, stress to management that an
infrastructure of quality conscious peo-
ple—permanent change agents who
QUALITY PROGRESS I MAY 2007 I 71
STATISTICS
ROUNDTABLE
FIGURE 1 The Expanding World of Statistics
Organizational
impact
Organizational
improvement
Product and process
improvement
Problem
solving
Time
lead, deploy and implement improve-
ment projects—provides the organiza-
tion with a significant advantage over
competitors with a less rigorous and
systematic approach to improvement
and organizational change.
7. Use top talent. Significant
improvement is too important and
difficult to be left to anyone other
than top talent. Help leadership
understand that the clearest message
it can send about how seriously it
regards an improvement initiative
comes when it announces the names
of people taking key roles. Rank and
file employees know their colleagues
well. They will judge immediately
whether the effort has been staffed
with top talent or people simply avail-
able or unable to do anything else.
8. Harvest the low hanging fruit.
The more quickly you can produce
tangible results from statistically
based improvement projects, the easi-
er it will be to convince management
of their value and to win the alle-
giance of participants. In the early
stages of improvement, project teams
should look for quick wins, such as:9
• Correcting obvious problems with
a process
• Fixing broken measurement sys-
tems
• Ensuring the consistency of
process inputs, whether raw mate-
rials in manufacturing or data in
nonmanufacturing processes
Work should also be streamlined
through the reduction of complexity,
waste and nonvalue added work.
The later stages of improvement can
focus on optimizing and controlling
processes by improving value added
72 I MAY 2007 I www.asq.org
The way we think
work steps, shifting the process aver-
age and reducing variation around it,
improving process flow and reducing
cycle time. But first, gain some trac-
tion for the program. Remember, one
of the strongest spurs to maintaining
momentum and sustaining gains
comes from the effect that achieving
of significant, measurable benefits has
on the culture.
People like to succeed. When they
see tangible results, they are eager to
repeat the process. So is management.
Expanding Roles
Now more than ever, statisticians
and quality professionals have oppor-
tunities to influence how organiza-
tions run their operations. To be
successful in this new role, statisti-
cians and quality professionals must
recognize that they are in the culture
change business, which requires that
they first help change leadership’s
thinking through the kind of carefully
structured initiatives and principles
described here.
As the world of statisticians and
quality professionals expands from
problem solving to process improve-
ment to organizational improvement,
the ultimate culture change—chang-
ing how people think—will follow.
This is illustrated in Figure 1.
Becoming a leader is not as daunt-
ing a task as it might seem. The essen-
tial principles of leadership are
simple. As a leader, you should:10
• Provide direction: Leaders show
the way.
• Communicate: Leaders develop
understanding and hope.
• Enable, coach, counsel and pro-
vide resources: Leaders set people
up for success.
• Recognize results and reinforce
desired behavior: Leaders catch
people doing things right.
For statisticians and quality profes-
sionals, precipitating change in man-
agement thinking will be the first test
of leadership. Lead the leaders and
you become one yourself.
© Ronald D. Snee, 2007
REFERENCES
1. W.A. Shewhart, Statistical Methods From the
Viewpoint of Quality Control, Graduate School of
the U.S. Department of Agriculture, 1939.
2. R.D. Snee and R.W. Hoerl, Leading Six
Sigma—A Step-by-Step Guide Based on Experience
With GE and Other Six Sigma Companies, Financial
Times Prentice Hall, 2003.
3. R.D. Snee and R.W. Hoerl, Six Sigma Beyond
the Factory Floor—Deployment Strategies for
Financial Services, Health Care—and the Rest of the
Real Economy, Financial Times Prentice Hall, 2005.
4. R.W. Hoerl and R.D. Snee, Statistical
Thinking—Improving Business Performance,
Duxbury Press, 2002.
5. R.D. Snee, “Making Another World: A Holistic
Approach to Performance Improvement,” Deming
Lecture, Joint Statistical Meetings, Seattle, Aug. 8,
2006.
6. R.D. Snee and R. W. Hoerl, “Statistical
Leadership—As Traditional Workplace Roles
Change, Learn to Transition From Consultant to
Leader,” Quality Progress, October 2004, pp. 83-85.
7. G.E.P. Box, “The Missing Ingredient,” Six
Sigma Forum Magazine, February 2006, pp. 20-21.
8. R.D. Snee, “Make the View Worth the
Climb—Focus Training on Delivering Better
Business Results,” Quality Progress, November
2001, pp. 58-61.
9. John P. Kotter, Leading Change, Harvard
Business School Press, 1997.
10. Snee and Hoerl, “Statistical Leadership—
As Traditional Workplace Roles Change, Learn
to Transition From Consultant to Leader,” see
reference 6.
RONALD D. SNEE is
principal of performance
excellence and lean Six
Sigma initiative leader at
Tunnell Consulting in
King of Prussia, PA. He
has a doctorate in applied
and mathematical statis-
tics from Rutgers Uni-
versity in New Brunswick, NJ. Snee has
received the ASQ Shewhart and Grant Medals
and is an ASQ fellow.
Please
comment
If you would like to comment on this
article, please post your remarks on
the Quality Progress Discussion
Board at www.asq.org, or e-mail
them to editor@asq.org.
ASQ Sustaining and Organizational Members
These organizations have pledged their commitment to quality by becoming ASQ Sustaining or Organizational members. Learn more about these
membership levels, and the benefits, by visiting www.asq.org/membership.
Organizational Members
Abbott
Alcoa
Boeing
Cummins
DuPont
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Ratheon
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Sustaining Members
2AM Group LLC
3M Company
AAI Corporation
Abbott Laboratories
ABB Xiamen Switchgear Co., Ltd.
Absolute Technologies, Inc.
Accellent
Accenture
The Accreditation Council of
Trinidad & Tobago
Accurate Laboratories
Aditya Birla Management
Corporation Ltd.
Advanced Acoustic Concepts
Aeronautical Systems, Inc.
AeroVironment, Inc.
Affinia Canada Corp.
AFLAC
AFPSL/Bionetics
AGS Automotive Systems
AIB International
AIB-Vincotte USA Inc.
Albridge Solutions
Alcan Packaging
Alcon Laboratories, Inc.
Allcast, Inc.
Alliant Techsystems
Altman Browning and Company
AMC, Inc.
American Airlines
American Family Insurance
American Red Cross Tennessee
Valley Region
American Society of Radiologic
Technologists
American Technical Ceramics
AMI Semiconductor, Inc.
AMSEC
Ana G. Mendez University
System
Analogic Corp.
Andersen Corporation
Angio Dynamics
Antares Management Solutions
Anteon Corporation
Apple Computer Inc.
Appleton
AQS Management Systems
Arcelik A.S. Eskisehir
Compressor Plant
Arcor SAIC
Arctic Cat Inc.
Argus Health Systems Inc.
Army Continuing Education
System
ASAIE
Asco Valve Manufacturing
ASC Process Systems
ASI DataMyte
AssurX Inc.
Atlas Copco Tools and Assembly
Atomic Energy of Canada Ltd.
Auto Club Insurance Association
Avionics Specialties, Inc.
Avnet Technology Solutions
Banco Central de Costa Rica
BankMuscat
Barr Systems, Inc.
Bartush-Schnitzius Foods Co.
Battelle Memorial Institute,
ESH & Q
Baxter Healthcare
Baxter Healthcare Corporation
BD Diagnostic-Accu-Glass
Beacon Converters, Inc.
BeautiControl, Inc.
Bechtel SAIC Co., LLC
Becton Dickinson Critical Care
Systems
Beutler Corporation
Bharat Electronics Limited
Bibb and Associates Inc.
Bimba Manufacturing Co.
Binatone Electronics International
Ltd.
BJC Health Care
Blood Center of Wisconsin
Blue Water Automotive Systems,
Inc.
BlueCross BlueShield of Florida
Bodine Aluminum, Inc.
Bombardier Aerospace
Bonfils Blood Center
Booz Allen Hamilton
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Boston Scientific
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Botswana Bureau of Standards
Botswana National Productivity
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Boyce and Bynum Pathology
Labs
Brigham Young University
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BSI Management Systems
Bulk Molding Compounds
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BWX Technologies, Inc.
Calhoon MEBA Engineering
School
California Service Center
Cardinal Health Jacksonville
Facility
Cardinal Health Medical
Products Manufacturing
Cargill, Inc.
Caterpillar, Inc.
Caterpillar Inc. DTF
Caterpillar Logistics Inc.
Celestica International Inc.
Cementos Lima S.A.
Center Quality Office
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Central Missouri State University
Centro Nacional de
Productividad
Ceridian
Cerveceria Polar Los Cortijos
C.A.
Charlotte Pipe and Foundry
Company
Checkfree Corporation
Checkpoint Caribbean Ltd.
Chiquita Brands International
Christian Brothers University
Ciba Vision Corporation
Cincinnati Precision Instruments,
Inc.
Citizenship and Immigration
Services
Clairson Plastics
Clarkson University Library
Click Bond Inc.
Coloplast Manufacturing US LLC
Colorado Springs Utilities
Compuware Corporation
ConAgra Foods
CONEXIS
Consolidated Diesel Company
Contract Management GSA/FSS
Cooper Nuclear Station
Cooper Standard Automotive
County of Chester Dept. of
Emergency Svc.
Covansys
Credit Suisse
CryoTech Inc.
CSA Group
CSA, Ltd.
Custom Processing Services, Inc.
Czech Society for Quality
Dallas County Community
College District
D.A. Stuart Company
Dayton-Granger, Inc.
Dearborn Precision Tubular
Products, Inc.
Decoma Nascote Industries
Deere & Company
Delaware Department of Natural
Resources
Dell WWP ASEQ
Department of Housing &
Community Development
Department of National Defence,
Canada
Detroit Diesel Corp.
Detroit Medical Center
Deya Elevator Service, Inc.
Dey L.P.
Digene Corporation
Display Pack, Inc.
DNP Electronics America LLC
Dominos Inc.
DQS German American
Registrar
DRS Tactical Systems, Inc.
DST Output–East Operations
Center
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Dynacraft
DynMcDermott Petroleum
Operations Co.
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Eastman Chemical Company
East Penn Manufacturing Co., Inc.
Eaton Corporation
Eaton Ltda. Transmission Division
Edwards Lifesciences
EESUS
EHD Technologies LLC
Eli Lilly & Co.
Eli Lilly Australia Pty. Ltd.
El Paso Community College
El Tronic Precision, Inc.
EMCOR Corporation
EMCOR Group, Inc.
EMI Industries
Energy & Environmental Res. Ctr.
EnerSys
Envirocare of Utah LLC
Erickson Air Crane
ESC Lille
European Centre for TQM
QUALITY PROGRESS I MAY 2007 I 73
ASQ Sustaining and Organizational Members
Evans Capacitor Company The Harrington Group, Inc. Korea Hydro & Nuclear Power Co. MTC Technologies, Inc.
Evans Consoles Corporation Harvard Custom Manufacturing Korean Air Mt. Lebanon School District
Eveready Battery Co. HDR Architecture, Inc. Korean Foundation for Quality Mutual of Omaha Insurance Co.
Excel Partnership, Inc. Health Quality Partners Korean Standards Association MVA Scientific Consultants
Exeltech Heico Corporation KraftMaid Cabinetry Nalco Co.
Exsilon Data & Statistical Solutions Hendrickson International Krenz & Company, Inc. Naperville Park District
E-Z-EM Inc. Heraeus Tenevo, Inc. KSM Electronics, Inc. National Center for Biomedical
FAA DOT Hertzler Systems, Inc. L-3 Communications Integrated Research and Training
FAA Logistics Center Hill Phoenix Systems National Centre for Quality Mgmt.
Fairchild Semiconductor Hindustan Aeronautics Limited L-3 Communications MAS National Firearms and Tactical
Fansteel Wellman Dynamics Hitachi Computer Products (Canada) Inc. Train Unit/DHS
Federal Bureau of Investigation (America) Laboratorios PISA S.A. de C.V. National Graduate School
Fermi National Accelerator HNC for EOQ LAM Research Corporation National Institute of Standards &
Laboratory Honeywell Landoll Corporation Technology
FHWA Corporate Management Honeywell Inc. CAS Learjet Inc. National Quality Review
Fidelity Investments Hospira Lee Hecht Harrison National Seafood Inspection Lab
First Technology Control Devices Hospira, Inc. Lemcon Networks Ltd. National Security Technologies
Fite Fire & Safety Hotels & Resorts of Halekulani Letterkenny Army Depot National Semiconductor
FL Department of Health HSI Services Division Lifestar Naval Air Depot North Island
Flexfab Division of FHI Huitt-Zollars, Inc. Lloyd’s Register Quality Naval Aviation
Humana, Inc. Assurance, Inc. Depot–Jacksonville
Fluor Corporation
Humphrey Products LMSSC Astronautics Operations Naval Facilities Engineering
FMF Cape Scott (HMC)
Husky Injection Molding Systems Lockheed Martin Command
Dockyard
Ltd. Logistics Company, Inc. Naval Under Sea Warfare
Force Techie Ltd.
Hutchinson Technology Center
Ford Motor Company L’Oreal USA
Hyundai Engineer/Construction NB Power Nuclear
Fort Hays State University Lozier Corporation
IdaTech NCCI Holdings Inc.
Freedman Seating Company Malaysia Airlines
Illinois Central College The Nebraska Medical Center
Freightliner Custom Chassis Co. Manpower
IMSM Inc. Nebraska Service Center
FT Interactive Data Manzi Metals, Inc.
Infonet Services Corp. Neptune Technology Group Inc.
Fundacion Navarra Para La Market Probe, Inc.
Infor NetJets Inc.
Calidad Materus
InfoSENTRY Services, Inc. New Mexico Dept. of
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Institute of Technology Sligo Transportation
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Integrated Project Management Ngee Ann Polytechnic Library
FUNDECE Mayo Clinic
Co., Inc. Nike, Inc.
Furukawa Mexico S.A. de C.V. McAlester Army Ammunition
Integration Technologies Group, Nisshinbo Automotive
GA Services Private Limited Plant
Inc. Corporation
GECOM Corporation Measurement Canada
Intelemedia Communication Inc. Nobel Biocare
GE Healthcare MedCentral Health System
Intellisys Technology LLC Nokia
GenCorp Aerojet Med Exec International
Interactive Data (Europe) Nokia Investment Co., Ltd.
General Chem. MedImmune Inc.
Intimate Fashions India Private Ltd. Nordam Group Inc.
General Dynamics MedImmune Vaccines Inc.
ISIK Universities Nordstrom, Inc.
General Dynamics C4 Systems MEDRAD, Inc.
Jackson State Community Norfolk Naval Shipyard
General Systems Company College Medtronic Diabetes Norlen, Inc.
Gennum Corporation Jacobs Technology Medtronic Inc. Novartis Vaccines and
Genworth Financial The Jay Group Mercedes Homes, Inc. Diagnostics
Genzyme JDS Uniphase Corp. Mercy Memorial Hospital Novaxa Consulting
Gerber Products Co. Jeppesen Metagenics Novo Nordisk Pharmaceutical
Goldilocks Bakeshop Inc. JHM R&D, Inc. Mettler Toledo Industry Inc.
Goodrich Corp-AIP-Propulsion JHM Research and Development, Milliken & Co. NSF International
Systems Inc. Mine Safety Appliances Co. OAI Electronics
Goodrich Landing Gear Jones Packaging Inc. Minitab Inc. ODL, Inc.
Gopher Resource Corporation JPS Health Network Minntech Corporation Office of the Comptroller
Greene Tweed & Co. JTI Systems, Inc. Misr Compressors Manufacturing (Puerto Rico)
GTECH Corporation KalDer Co. Office of the Comptroller
Guidon Performance Solutions LLC Kamehameha Schools Missouri Enterprise of the Currency (USA)
Gulfstream Karl Schmidt Unisia Inc. MITRE Corp. OFS
Hach Company Kellogg Canada Inc. London Mittal Steel Indiana Harbour OMNEX
Hammond Company Plant ModusLink Oracle Corporation
Hamriyah Free Zone KGS Electronics Moore Norman Technology Orchid Cellmark
Hardigg Industries, Inc. Kitchen Craft of Canada Center Orion Development Group
Harland Kohler Company Morgan AM&T SM Site Orthodyne Electronics

74 I MAY 2007 I www.asq.org

ASQ Sustaining and Organizational Members
PACCAR Inc.
Pacific Southwest Container
Packages Limited
Pall Corporation
Palmetto GBA
Palo Alto College
Panduit Corp.
Pantech & Curitel
Communications, Inc.
Paradigm Manufacturing Partners
Parker Hannifin Corp.
Paychex
Pearson Educational
Measurement
Pella Corporation
Pentron Clinical Technologies LLC
Perfecseal
PerotSystems Government
Services
Petrobras America Inc.
Petroleum Helicopters
Petropars Ltd.
Pfizer-Groton
Pfizer, Inc.
Pharma Tech Industries
PharmEng Technology Inc.
Phoenix Marine
Photon Dynamics Inc.
Physicians’ Clinic of Iowa P.C.
Pilot Chemical Company
Placon
Plastic Dress-Up Company
Pontificia Univ. Catolica Peru
PredictionProbe Inc.
Premier Bankcard
Premiere Global Services
Premier Health Partners
Prince William County Public
Schools
Procter & Gamble Company
Product Action International
Productivity Quality Systems
Purdue University TAP
Qatargas Operating Company Ltd.
QMI
Quality Assurance Directorate
Quality Bolt & Screw Company
Qualiware Inc.
Quinco Tool Products RCI
Racine Unified School District
RAE Ingenieros SA
Ramallo Bros. Printing, Inc.
Rand E. Winters Group, Inc.
Rauland-Borg Corp.
Raytheon
Raytheon Company
RCM Technologies
ReedHycalog LP
Regeneration Technologies, Inc.
Reliance Industries Limited
Republic Polytechnic
Rescar Companies
Retractable Technologies, Inc.
Rhodes State College
RIT/CQAS
Rochling Automotive Duncan, LLP
Rockford Health System
Rockwell Automation
Rohmann Services
Ross Memorial Hospital
Rush-Copley Medical Center
Rutland Mental Health
Services, Inc.
Saab Barracuda LLC
Sail Bhilai Steel Plant
Saint-Gobain Vetrotex America,
Inc.
Sanofi Pasteur
Sanofi Pasteur Limited
SAS Institute, Inc.
Saskatchewan Research Council
SaskWater
Sauder Woodworking
Saudi Cable Co.
Saudi Electricity Company
SC Dept. of Health & Envir. Control
SC Johnson & Son Ltd.
SC Johnson Europlant B.V.
Schaller Anderson of Tennessee
LLC
Schauer Independent Insurance
Corp.
Schering-Plough
Schering-Plough Healthcare
Products Inc.
Schering-Plough Products LLC
Schering-Plough Research
Institute
Schlage Lock Company
Schleifring Medical Systems
The School District of Lee County
SED Systems
Sentara Virginia Beach
General Hospital
Serigraph Inc.
SGS
Shaw E&I Inc.
Siast Wascana Campus
Sid Richardson Carbon Co.
Siemens Business Services, Inc.
Siemens Medical Solutions
USA Inc.
Sil Pro
Silvex, Inc.
Singapore Quality Institute
Sloan Valve Co.
Smurfit-Stone
Social Security Administration
Sorenson BioScience
Southern California Edison
Southern Polytechnic State
University
South Texas Veterans Health
Care System
Space & Naval Warfare
Systems Center
Span International
Span Packaging Services LLC
Spectra-Physics
Spellman High Voltage
Sprint
Standards Council of Canada
STAT-A-MATRIX
Stat-Ease Inc.
Sterlite Optical Technologies, Ltd.
Strategic Solutions, Inc.
Stryker Instruments
Sullair Corporation
Talley Defense Systems
TALX Corporation
TATA Consultancy Services
TBS Shipping Services Inc.
Technicolor Mexicana S.
de R.L. de C.V.
Tektronix Inc.
Teledyne Imaging Sensors
Telmar Network Technology, Inc.
Telrepco, Inc.
Tenneco
TEQ GmbH
Texas Service Center
Thai German Specialty Glass
Co., Ltd.
Thayer Medical
ThyssenKrupp
The Timken Company
Tobyhanna Army Depot
Toronto Public Health
TQM Consulting Group Inc.
(TQMCG)
TQM Network
Traex
TrailBlazer Health Enterprises
Transcontinental Direct
Transport Canada
Trinidad & Tobago Bureau of
Standards
TriWest Healthcare Alliance
T & S Brass and Bronze
TSTC Harlingen
Tube Supply, Inc.
UAB Center for Biophysical
Sciences and Engineering
UCSF
UL-CCIC Company Ltd.
Ulticom, Inc.
Union Pacific Railroad
Unisia of Georgia Corp.
Unisia Steering Systems Inc.
United Grinding Technologies, Inc.
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URS
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U.S. Mint
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Yokosuka Japan
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Vansco Electronics, Ltd.
Vasogen Inc.
VBCPS Organizational
Development
Ventana Medical Systems
Veridian Homes
Verify, Inc.
Vertex Pharmaceuticals
Incorporated
Vertis, Inc.
VIPS
VIP Tooling Inc.
Viracon
Vought Aircraft Industries, Inc.
Wackenhut Services, Inc.
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Group Inc.
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WR Grace
W.W. Grainger, Inc.
Xandex Inc.
XICOM Technology
Yoder Die Casting Corp.
Yuma Regional Medical Center
Yusa Corporation
Zippo Manufacturing Co.
Zust Bachmeier International, Inc.
QUALITY PROGRESS I MAY 2007 I 75
STANDARDS
OUTLOOK
Six Lessons Learned From QS-9000
by R. Dan Reid
y version of the old joke goes:
M “When’s your birthday?”
“Dec. 15.” “What year?”
“Every year, so far.”
Last year’s birthday was especially
memorable for me because QS-9000,
which I helped write, expired that day
after a more than 12-year run. The
occasion provided a good chance to
reflect.
It started in 1990. I had just been
assigned to manage supplier develop-
ment for (at that time) General Motors
(GM) purchasing activities. My boss
told me GM had started to work with
Ford and Chrysler on common sup-
plier quality requirements.
In the beginning, expectations sur-
rounding automotive quality require-
ments harmonization were humble. A
small original equipment manufactur-
er (OEM) task force had been assem-
bled and given direction: “Keep it
small, keep it focused and don’t
spend a lot of money.”
There had never before been a com-
mon supplier quality document in the
domestic automotive industry. Ford
had Q101, on which its Q1 supplier
recognition program was based.
Chrysler had its supplier quality
assurance manual. GM had standard-
ized its North American supplier
quality requirements in 1984 in
Targets for Excellence (TFE), a full
business standard with requirements
for quality as well as cost, leadership,
technology and delivery. TFE stan-
dardized more than 20 GM divisional
supplier quality manuals.
As I recall, each OEM was satisfied
with its own company specific
approach at the time.
There was a June 1988 ASQ
Automotive Division conference at
which the then three purchasing vice
presidents, Don Pais (GM), Clint Lauer
(Ford) and Tom Stallkamp (Chrysler),
heard from several tier one suppliers.
These supplier participants con-
firmed what supplier surveys of the
76 I MAY 2007 I www.asq.org
day told us: that the supply base
wanted a common quality standard
from the Big Three. However, that
would come in the future. First, there
would be a series of common quality
manuals: Production Part Approval
The sun sets on
QS-9000, the U.S.
automotive standard.
Process, Measurement Systems Analysis,
Statistical Process Control, Potential
Failure Mode and Effects Analysis, and
Advanced Product Quality Planning
(APQP).
We began discussing what a
common industry quality standard
might look like. At the time, it was
rumored that to do business in
Europe in the near future, an ISO 9001
certificate would be required. We
examined the content of the then cur-
rent ISO 9001:1987 standard and
found it lacking many automotive
quality requirements. But nothing in it
was particularly objectionable.
Given the concern about the
rumored European requirement, we
began mapping the OEM require-
ments against ISO 9001 to prepare for
an eventual decision to pursue the
common standard.
Lesson learned 1: A small,
focused drafting committee
with a wide iterative review and
comment process is a very effec-
tive standards development
method when committee mem-
bers have the confidence of
their organizations.
Abrupt Change in Direction
Lauer had predicted there would
likely never be a common quality
standard in the domestic automotive
industry. He retired shortly thereafter
and was replaced by Norm Ehlers,
who declared we would have one
within the year, given the prework
completed.
The initial draft of the standard was
done in a few months time and circu-
lated for comment within the OEMs.
A small supplier council assembled
under the Automotive Industry
Action Group. After several iterations
of review, comment and revision, the
domestic auto industry was about to
see the first domestic quality stan-
dard bearing more than one company
logo.
Lesson learned 2: When the
voice of the executive and the
voice of the customer are
aligned, meeting or exceeding
customer expectations is possi-
ble, sometimes with game
changing results.
Delivering the Automotive
Industry to ISO 9000
I remember task force members
meeting with the late Larry Eicher
and his International Organization for
Standardization (ISO) headquarters
staff in Geneva, Switzerland, to dis-
cuss a royalty agreement for use of
ISO 9000.
ISO staff had quoted us a price for
up to 5,000 copies, which at that time
was the maximum number on its sales
literature. We asked for a quote on
100,000 to an unlimited number of
copies. Their body language alone led
us to believe the ISO 9000 ship had
come in that day.
A key advantage to the OEMs in
migrating to ISO 9000 was the ability
to use third parties for quality system
assessments , which allowed the OEMs
to redeploy internal resources to more
value added work, such as APQP
activities with suppliers.
A key advantage for tier one suppli-
ers was that a single assessment
would now be recognized by most of
their customers, avoiding multiple
and largely redundant audits of sup-
plier locations.
The bigger benefit was the subse-
quent migration of thousands of tier
one supplier requirements from com-
pany specific ones to the common
industry requirements, giving the
supply chain a common language for
quality and a largely common set of
fundamental requirements. Other
industrial sectors would soon also see
the introduction of sector specific ISO
9000 based supplier requirements.
Lesson learned 3: The best
deal is a win-win-win deal.
Some things are just worth
standardizing.
There’s No Place Like
Home for Sectors
There has been a fair amount of crit-
icism of ISO 9000 over the years—
some deserved. What must be re-
membered is that ISO 9000 is a con-
sensus standard adopted by many
countries, some of which make com-
pliance mandatory.
As with any consensus document,
ISO 9001 is the lowest common
denominator agreement of all parties.
It contains only requirements that all
parties can live with rather than being
a stretch tool to drive world class
improvement. Sector specific docu-
ments, such as QS-9000, can fill this
need more effectively because there
are fewer players involved in reaching
consensus.
Also, what we discovered in later
developmental work with the
European OEMs on TS 16949, the
international automotive technical
specification document that replaced
QS-9000, is that the automotive busi-
ness has a lot of similarity at the fun-
damental quality system level.
Competitive advantage seems to be
more dependent on deployment and
implementation.
Lesson learned 4: Sector
specific standards are, and will
continue to be, an integral part
of the global ISO 9000 portfolio
going forward if the ISO 9000
series is to continue to grow.
What to Call It
We decided early on that an agree-
able label for the automotive standard
would be “quality system require-
ments.” The draft was tentatively
called “QSR” for short, but we soon
discovered that acronym was already
taken. Initial launch was delayed until
the ISO 9000:1994 version was avail-
able. Given that it was based on ISO
9000, we agreed on the name
“QS-9000.”
The label “quality system require-
ments” fit well because most GM TFE
cost, leadership and technology
requirements were deleted. They
remained largely absent from OEM
requirements until last year when GM
revised its potential supplier assess-
ment, which returned some full busi-
ness assessment criteria to the
traditional quality system require-
ments.
The loss of the equity in the QS-9000
name, now recognized globally across
sectors, may be the biggest short-term
loss resulting from the migration to an
ISO document, but there is a bigger
trade-off.
Going Global
No sooner than QS-9000 hit the
streets in August 1994 than the OEMs
became interested in applying the
new standard to their European oper-
ations. Another version was quickly
prepared and released for global dis-
tribution six months later.
The Chrysler, Ford and GM logos
were removed from the cover and
inside pages so suppliers and other
OEM divisions such as Holdens and
Opel could use it with their suppliers.
Changing QS-9000 requirements
involved significant education and
coordination among a number of
trainers, certification and accredita-
tion bodies, and suppliers in a num-
ber of languages. So the OEMs made a
concerted effort to limit QS-9000 revi-
sions going forward.
Instead, sanctioned interpretations
were implemented to address com-
mon questions during the QS-9000
launch and to minimize variation in
interpretations by auditors and certifi-
cation bodies—a concern from the
beginning.
The QS-9000 third (and final) edi-
tion was not released until 1998. It
incorporated the sanctioned interpre-
tations issued to date and provided
for reciprocal recognition between the
Big Three and the European OEMs for
the first time as an interim step on the
way to the release of ISO TS 16949.
Lesson learned 5: The third-
party conformity assessment
system alone cannot provide
customers with adequate assur-
ances of consistent product
quality from certified organiza-
tions, but it can still be a good
entry requirement for potential
new suppliers. Automotive
OEMs need additional mea-
sures to ensure suppliers are
meeting expectations.
Collateral Damage
One of the common QS-9000
deliverables was the tooling and
equipment (TE) supplement. Many
processes are tooling dominant,
meaning the quality is in the tool.
This document is also obsolete.
QUALITY PROGRESS I MAY 2007 I 77
STANDARDS
OUTLOOK
Tooling suppliers now have to use
ISO 9001:2000 or a company specific
standard. Going forward, it is hoped
the TE learnings from the last decade
or so will be captured for organiza-
tional memory by a significant num-
ber of those suppliers.
Another problem with the migra-
tion from QS-9000 to an ISO docu-
ment was the customer specific
requirements. ISO does not make pro-
vision for company requirements in
its documents. Hence, many of these
were migrated to the customer-sup-
plier quality websites, which now
have to be consulted in association
with an ISO TS 16949 certification.
Back to the Future
I have read with curiosity articles
contrasting QS-9000 with ISO TS
16949. Many cite the process approach
adopted by ISO 9001:2000 as a major
change. Clearly this represents a
change in the way requirements are
organized in the manual.
It is less clear that it represents a
fundamental change in how an audit
should be carried out. While there
was a QSA document, or sanctioned
checklist, which was mandatory for
third-party certification to be a recog-
nized process, there was no expecta-
tion that the order of the audit had to
follow the order of the checklist.
Effective auditing has always re-
quired an understanding of the man-
agement system and its processes.
Efficient auditing has always been done
by covering all applicable require-
ments while in an area instead of
jumping around to follow a checklist.
A subset of the quality system audit
is the control plan audit, which is a
process audit. OEMs have performed
control plan audits for years and used
similar methodology for system
audits.
The use of the QSA checklist was
mandated to drive a consistency in
the breadth of all the audits to reduce
auditor variation and ensure a mini-
mum scope for all audits.
Another frequently mentioned dif-
ference is the new focus on customer
satisfaction. QS-9000 clause 4.1.6
clearly established this from the
beginning and included all cus-
tomers—internal, external and final.
The initial version of ISO TS 16949
78 I MAY 2007 I www.asq.org
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was drafted using QS-9000, third edi- R. DAN REID, an ASQ
tion, as the starting point. Much text fellow and certified
remained intact or largely unchanged quality engineer, is a
in the initial ISO TS 16949 version. purchasing manager
The second revision to ISO TS 16949 a t General Motors
involved a cut and paste exercise to Powertrain. He is co-
relocate the additional automotive author of the three edi-
requirements to align with the new tions of QS-9000 and
ISO/TS 16949; the
ISO 9001:2000 outline. Some editing
Chrysler, Ford, GM Advanced Product
was also incorporated. Quality Planning With Control Plan;
The more revolutionary change has Production Part Approval Process and
been in third-party auditing, driven Potential Failure Modes and Effects
by changes in auditor training intend- Analysis manuals; ISO 9001:2000; and
ed to make the intent of the require- ISO IWA 1. Reid also was the first delega-
ments more explicit. tion leader of the International Automotive
Task Force.
Lesson learned 6: The con-
tent and intent of the require-
ments has been largely stable
and consistent from 1994 to the
present, at least for the domestic
automotive industry.
The sun has set on QS-9000, but the Please
bulk of its requirements are likely to comment
see a second decade or to never
become obsolete. For me, that just If you would like to comment on this
makes every Dec. 15 what I call a article, please post your remarks on
Washington, DC, birthday. Like much the Quality Progress Discussion
that happens in our nation’s capital, if Board at www.asq.org, or e-mail
anyone notices the event, I lie about it, them to editor@asq.org.
cover it up and pretend it never hap-
pened.
 QP
TOOLBOX
SEMTest Assesses
Semiconductors, Modules
▼
Intepro Systems has introduced
SEMTest, a configurable stress screening
system able to perform accelerated lifetime
testing of power semiconductors and mod-
ules.
SEMTest is ideal for manufacturers of
power semiconductors who want to assess
commercial off-the-shelf devices for use in
high reliability applications found in auto-
motive, transportation, aerospace, defense,
industrial and medical systems.
Standard systems can be configured in
20 to 1,000 test cells. Each cell features its
own local controller to set and monitor.
Each cell also provides measurement
units for temperature, current, voltage
and timing. This makes it possible for
characterization and production tests to
accelerate failure mechanisms of individ-
ual devices and determine functional
operating limits.
Call: 714-743-5670; visit: www.
inteproate.com.
Maintenance Master Board
Schedules Year of Work
Magnatag Visible Systems’ Mainten-
ance Master Board displays and schedules
a full year of preventative maintenance
actions for each machine, vehicle and
equipment item in a facility. Managers and
employees are alerted to maintenance
work for the entire year with color coded
magnets.
The Maintenance Master Board comes
in three sizes allowing 52 weeks of sched-
uling for 66, 90 or 180 line items. Each
system includes write-on tools and hun-
dreds of multicolored magnets.
An optional visible file aligned with the
board holds a two-year daily maintenance
history card on each line item.
Call: 800-624-4154; visit: www.
magnatag.com.
Tension Controller Provides
Precision Measurements
Hardy Instruments’ HI 3300 tension
controller incorporates an automatic
closed loop process to provide precision
measurements. The controller uses either
a single or dual sensor input to allow for
tension measurements on either web rolls
or strand pulleys. The standard output
from the HI 3300 is 0-10V/4-20ma, which
can be directed to a brake or drive.
Because the actual product tension is
being measured, this type of precision
Intepro’s SEMTest assesses off-the-shelf
commercial devices.
control helps eliminate common prob-
lems found in web and strand processes
including feathering, breakage, telescop-
ing, wrinkling and blocking.
Call: 800-821-5831; visit: www.
hardyinstruments.com.
Borescope’s Cable Maintains
Position Until Readjusted
Titan Tool Supply has added the ES7-
1350 borescope to its product line. The ES7-
1350 features a cable length of 1350mm,
making it capable of reaching deep into
walls, drains, vents and engine blocks. The
cable also maintains a fixed position until
readjusted. A built-in LED light provides
clear viewing in dark locations.
The ES7-1350 is an ideal inspection tool
for applications such as aircraft and auto-
motive maintenance, plumbing, electrical,
building construction inspection and qual-
ity control at manufacturing plants.
Call: 716-873-9998; e-mail: menza@
titantoolsupply.com.
3000M Discovers Leaks
On Operating Machinery
Kernco’s 3000M ultrasonic leak detector
kit discovers leaks by checking machinery
while it is operating. Leaks and other vibra-
tion sources produce a broadband of ultra-
sonic noise. Experiments have shown that
peak amplitudes for problem areas are
around 45KHz. The 3000M will translate
the ultrasonic frequencies between 30 and
50KHz into an audible output. Also, the 90°
taut-band meter provides visual indication
of signal strength.
Two individual probes are included: a
contact probe for detecting ultrasonic
sound transmitted along the surface of a
rigid structure; and an air probe for detect-
ing airborne ultrasonic signals in a 22°
angle from its tuned directional cone while
ignoring all sonic background frequencies.
Call: 815-852-3375; visit: www.kerncoinstr.
com.
SafeCheck 5S Tests
Electrical Safety of Tools
Clare Instruments’ SafeCheck 5S is an
automatic or manual instrument designed
specifically to test the electrical safety of
power tools and extension cords. It is
ideal for construction, service and rental
industries. The SafeCheck 5S walks the
operator through the test and provides
clear pass/fail indications.
The SafeCheck 5S performs tests like
ground bond, short test, leakage, and con-
tinuity and polarity of power cords.
Call: 813-886-2775; e-mail: usa@
clareinstruments.com.
Vibration Systems Simulate
Range of Conditions
Thermotron’s Electrodynamic vibration
systems provide a testing environment
for transportation simulation, mechanical
shock, mission profile and environmental
stress screening. Dynamic vibration fac-
tors such as displacement, velocity, accel-
eration and force are controlled to
accurately simulate a wide range of condi-
tions that can work to improve quality for
products found in the electronics, auto-
motive, aerospace and military markets.
Thermotron manufactures the ele-
ments for a turnkey vibration test system
including the amplifier, vibration control
system, sliptables, head expanders and
fixturing.
Call: 616-392-1491; e-mail: info@
thermotron.com. QP
QUALITY PROGRESS I MAY 2007 I 79
 QP
REVIEWS
The Nun and
The Bureaucrat
Louis M. Savary and Clare Crawford-
Mason, CC-M Productions, 2006, 272 pp.,
$24.95 (book).
Authors Savary and Crawford-
Mason provide a handy companion to
the one-hour PBS documentary
“Good News…How Hospitals Heal
Themselves,” that aired in Spring/
Summer 2006. The Nun and the
Bureaucrat: How They Found an
Unlikely Cure for America’s Sick
Hospitals focuses on how the Toyota
principle of systems thinking was
applied in two complex American
healthcare systems: SSM Health Care
and the Pittsburgh Regional Health
care Initiative (PRHI).
SSM Health Care, headquartered in
St. Louis, is one of the largest Catholic
based hospital systems in the United
States and the first healthcare organi-
zation to receive the Malcolm Baldrige
National Quality Award. PRHI is a col-
laborative effort, including hundreds
of clinicians, 40 hospitals, four major
insurers, dozens of major and small
business purchasers, corporate and
civic leaders and Pennsylvania’s attor-
ney general.
The book’s material is organized into
chapters summarizing the major prob-
lems in today’s healthcare industry,
including unnecessarily complex orga-
nizational hierarchies, waste, misplac-
ing patients and the blaming of
personnel for systems failures. The sec-
ond part of the book shows how sys-
tems thinking and continual process
improvement have enabled these two
healthcare organizations to focus on
the needs of customers, reduce noso-
comial infections and medication
errors, reduce wait times in critical
areas and reduce deaths.
The numerous frank statements and
comments from physicians, staff and
leadership personnel from both orga-
nizations further strengthen the value
of this important contribution to
healthcare quality. The book clearly
describes the kind of leadership essen-
tial for making U.S. hospitals safe and
patient friendly, while at the same time
cutting costs by driving out waste.
With today’s rising clamor over the
many problems facing American
healthcare, this book nicely summa-
rizes the frontline experiences in the
industry. I highly recommend it for all
staff involved in healthcare quality
improvement, as well as all healthcare
80 I MAY 2007 I www.asq.org
leadership, especially those few
remaining administrators who think
the Joint Commission on Accredita-
tion of Healthcare Organizations stan-
dards are all that are needed to define
quality in their hospital.
Dale Farris
Groves, TX
The Elegant Solution
Mathew E. May, Free Press Division of
Simon and Schuster, 2007, 256 pp., $26
(book).
Two timely topics of interest—inno-
vation and Toyota—are addressed in
this easy to read, energetic and inspi-
rational book. The Elegant Solution:
Toyota’s Formula for Mastering
Innovation , provide insights into
Toyota’s success in achieving break-
throughs that enable it to consistently
outperform the competition.
The author examines Toyota’s philos-
ophy, culture and leadership, in addi-
tion to the tools used, such as idea
loops. The three principles and 10 prac-
tices guiding the Toyota journey toward
elegant solutions, or successful busi-
ness innovation, are discussed along
with examples of implementation,
punctuated with inspirational quotes.
The book consists of three parts:
principles, practices and protocol. Each
chapter ends with questions for reflec-
tion. This helps the reader consider
how to adapt these tools and philoso-
phies to their own organization.
A case study relating to how the Los
Angeles Police Department implement-
ed the principles and practices success-
fully into their own situation creates a
nice capstone to the book. The book
ends with notes of encouragement to
get you started on your own journey.
Denis Leonard
Veridian Homes
Madison, WI
Effective Implementation
Of ISO 14001
Marilyn R. Block, ASQ Quality Press, 2006,
384 pp., $57 member, $95 list (book).
Effective Implementation of ISO
14001 gives the reader a clear and
understandable description of the
revised standard, its requirements and
how it compares to the original
ISO14001:1996 standard. Block certain-
ly has the qualifications to address
these changes—she was one of
the U.S. experts for the ISO/TC207
subcommittee on environmental man-
agement principles, systems and sup-
porting techniques. She also
contributed to the development of ISO
14001 and ISO 14004, and she partici-
pated in the process of revising those
standards.
The book is organized so that initial
chapters each correspond to the 18
numbered clauses and subclauses of
the standard. Therefore, a person does
not need to read the book cover to
cover but can refer to the applicable
clauses or subclauses to gain an
understanding. In addition, each chap-
ter has the following format:
• The ISO 14001:2004 text and the
ISO 14001:1996 text assist the
reader in comparing the two
standards side by side.
• Significant changes in the word-
ing are discussed.
• The intent of ISO14001:2004 and
applicable approaches to imple-
mentation are offered.
• It includes real life examples of
documented procedures and
details how a particular clause
has been implemented by other
organizations.
The book concludes with a brief
chapter on the future of environmental
management and a glossary of terms.
I would recommend this book to all
organizations with an environmental
management system that need a
clearer understanding of the differ-
ences between ISO 14001:2004 and
ISO14001:1996, as well as those strug-
gling with implementation of the new
standard.
Wayne Sander
Consultant/engineer
Dousman, WI
Five Key Principles
Bob Paladino, John Wiley & Sons, 2007,
400 pp., $45 (book).
Five Key Principles of Corporate
Performance Management is a must
read for any top level executive inter-
ested in the real-world application of
corporate performance management
(CPM). While the book might seem
daunting at 400 pages, readers can
easily select specific chapters, each of
which offer in-depth explanations of
one of the five key principles.
 Opening chapters highlight the grow- and cons are addressed and examples improving customers’ experiences.
ing interest in CPM, and the need for of applications are provided. There’s much valuable insight packed
companies to establish a specific CPM The stage is set with multiple discus- into this text. The book is a worthwhile
office and executive to handle the task sions about brand image, customers’ read.
of accelerated implementation of CPM perceptions and emotions resulting
best practices. An analysis of why com- from interactions with service person- Russ Westcott
panies fail to effectively implement nel, a summary of basic human needs, R.T. Westcott & Associates
strategy and why CPM is not always security issues, the role of empathy Old Saybrook, CT
successful is also provided. and the shopping environment (includ-
The five key principles of CPM are ing e-commerce). These discussions
identified as: establish and deploy a about customer experiences are
R E C E N T R E L E A S E S
CPM office and CPM officer, refresh capped off with a review of marketing
and communicate strategy, cascade communications designed to increase
and manage strategy, improve perfor- customer loyalty.
mance, and manage and leverage
All That Matters About Quality I
Wilburn addresses obstacles, pitfalls
knowledge. None of these principles and potential problems caused by mis- Learned in Joe’s Garage, William
are new to the business world. interpreting the collected data, as well B. Miller and Vicki Schenk, Bayrock
Additionally, all the principles use as issues of accuracy in measurement
tools currently being used by many techniques. Segmentation of the cus- Press, 2006, 176 pp., $11.95 (book).
successful organizations. However, tomer base and its impact on the mea-
this book takes the unique approach of surement of customer loyalty is
treating CPM as a specific department, discussed. The issues of research costs Reliability, Life Testing and
fully staffed and entirely focused on are also explored. The book concludes Prediction of Service Lives for
driving strategy practices—at an accel- with a review of customer value analy- Engineers and Scientists, Sam C.
erated rate—throughout all levels of a sis and looks at other influences on
company. repurchase behavior. Saunders, Springer, 2007, 310 pp., $79.95
Paladino describes nine real-world It is encouraging to learn sincere (book).
businesses actually implementing the efforts are being made to isolate and
principles. Subsequent chapters follow attend to factors and attributes influ-
the organizations’ experiences with a encing customer retention and the Environmental Management
key principle, including best practice decision to repurchase. These efforts
highlights and detailed graphics of
Quick and Easy: Creating an
are focused on guiding senior man-
tools and methods used. agement in improving organizations’ Effective ISO 14001 EMS in Half
This book assumes the reader’s performance. The challenge for the the Time, Joe Kausek, ASQ Quality
company has top management willing reader is how to fashion a suitable
to staff and support the CPM process. research program to meet the strate- Press, 2007, 296 pp., $45 member, $75
It makes for interesting and thought gic needs of his or her organization in list (book). QP
provoking reading, whether
Paladino’s experiences are ultimately
achievable by most organizations.
ADVERTISERS INDEX
Linda Cubalchini-Travis
Simi Valley, CA ADVERTISER PAGE PHONE WEB
AIAG 58 248-358-3570 www.aiag.com
AssurX, Inc. 5 408-778-1376 www.assurx.com
Managing the Dyadem International, Ltd. 2 905-762-2558 www.dyadem.com
Customer Experience EtQ, Inc. 1 516-293-0949 www.etq.com
Manufacturing, ASQ 7 414-272-8575 www.asq.org
Morris Wilburn, ASQ Quality Press, 2007,
Membership, ASQ 64, 65, 73-75 414-272-8575 www.asq.org
128 pp., $27 member, $45 list (book).
Minitab, Inc. 14, 15 814-238-3280 www.minitab.com
Organizations have struggled for PQ Systems, Inc. 53 800-777-3020 www.pqsystems.com
years with how to determine customer
Quality Council of Indiana 10, 11 812-533-4215 www.qualitycouncil.com
satisfaction and its relationship to cus-
Quality Solutions, Inc. 69 440-933-9946 www.qualitysolutions.com
tomer retention and intention to repur-
chase. Managing the Customer SAI Global 63 800-374-3818 www.xlp.com
Experience: A Measurement-Based Service, ASQ 20 414-272-8575 www.asq.org
Approach delves into the mysteries of Southern Polytechnic State University 60 800-635-3204 www.msqa.edu
research methods that lead to a better Statistical Process Controls 89 865-584-5005 www.spcpress.com
understanding and management of StatPoint IFC 800-232-7828 www.statgraphics.com
customers’ experiences. While the StatSoft, Inc. 90 918-749-1119 www.statsoft.com
book spares the statistically chal-
Upper Iowa University 25 800-603-3756 www.uiu.edu
lenged reader the technical details, it
does capture the essence of each Recruitment Advertisers
Insight Technology, Inc. 60 603-626-4800 www.insightlights.com
method in plain language. The pros
Eminent Services Corporation 61 240-629-1972 www.emiserv.com

QUALITY PROGRESS I MAY 2007 I 81

 QP
CALENDAR
To receive information or to register for ASQ
Education Courses and Conferences, contact
Learning Offerings, ASQ, 600 N. Plankinton
Ave., Milwaukee, WI 53203, 800-248-1946,
414-272-8575, fax 414-272-1734, website
www.asq.org.
J U N E
4-6 ASQ Education Course. Certified
Manager of Quality/Organizational Excel-
lence Refresher. Baltimore.
4-8 ASQ Education Course. Black Belt/
Quality Engineering Statistics. Baltimore.
4-8 ASQ Education Course. Introduction
to Quality Management. Baltimore.
4-8 ASQ Education Course. ISO 9001:
2000 Lead Auditor Training (RABQSA
International). Baltimore.
5-7 Lean Six Sigma Conference.
Louisville, KY. Call Clemson University at
864-656-2200 or visit www.clemson.edu/
success.
6-8 ASQ Education Course. Implement-
ing and Auditing an ISO 9000:2000 Quality
System. Baltimore.
6-8 ASQ Education Course. Root Cause
Analysis. Baltimore.
8 Sarbanes-Oxley Workshop. Atlanta.
Call American Management Assn. at 800-
262-9699 or visit www.amaseminars.org.
11-12 Americas Competitiveness
Forum (ACF). Atlanta. Call ACF at 202-482-
0543 or e-mail acf@mail.doc.gov.
12-14 Six Sigma in the Retail and
Service Industries. Chicago. Call the World
Conventions and Business Forums at 800-
959-6549 or visit www.wcbf.com/quality/
5071.
82 I MAY 2007 I www.asq.org
13-15 Statistical Analysis for Process J U L Y
Improvement Using Minitab. San Fran-
cisco. Call Exsilon Data and Statistical
Solutions at 800-930-8528 or visit www.
10-11 Comprehensive Halt & Hass.
Pretoria, South Africa. Call Hobbs Engi-
exsilondata.com.
neering at 303-465-5988 or visit www.
15 Food Safety for Maintenace Per- hobbsengr.com.
sonnel. Guelph, Ontario. Call Guelph Food
12-13 Supply Chain Strategy and
Technology Center at 519-821-1246 or visit
Management. Cambridge, MA. Call the
www.gftc.ca.
MIT Sloan School of Management at 781-
239-1111 or visit http://mitsloan.mit.edu/
18-19 ASQ Education Leadership
execed.
Summit for Superintendents. Denver.
18-19 Green Belt Certificate Course. 14-18 8th International Conference of
Quality Managers. Tehran, Iran. Visit www.
Princeton, NJ. Call the Quality Function
qm-conference.com or e-mail harefkashfi@
Deployment Institute at 734-995-0847 or
neda.net.
visit www.qfdi.org.
16-20 ASQ Education Course. Facili-
18-20 Basic Auditing in the Aviation tating Continuous Improvement in Edu-
Industry: The Federal Aviation Admin-
cation. Milwaukee.
istration Course. Anaheim, CA. Call the
Integrated Performance Leadership Group 16-20 23rd Annual Coordinate Metro-
at 239-283-2839 or e-mail training@ logy Systems Conference (CMSC). Reno, NV.
theiplgroup.com. E-mail the CMSC Society at seminars@cmsc.
org or visit www.cmsc.org.
18-20 Quality Management and
Organizational Development Conference.
Helsingborg, Sweden. Call 46-0-42-35-6500
or visit www.ch.lu.se/qmod.
18-21 Better Software Conference
and Exposition. Las Vegas. Call Software
Quality Engineering at 888-268-8770 or
visit www.sqe.com/bscereg.
Have an event you’d like
21-22 ASQ Education Course. Lean
Enterprise. Calgary, Canada. included in “QP Calendar”?
Submit information at least
24-26 North American Manufacturing three months in advance to
Technology Summit. Los Cabos, Mexico.
Call the Society of Manufacturing Engi- vfunk@asq.org. Non-ASQ
neers at 313-271-1500 or visit www. organizations may list one
namtechsummit.com. event per issue.
28 Lean Purchasing. Nashua, NH. Call
the Assn. for Manufacturing Excellence at
224-232-5980 or visit www.ame.org.
 For information on placing an ad,

Professional Services contact Ramona Garcia at 800-248-1946,

or 414-272-8575, or e-mail rgarcia@asq.org

What does earning a degree mean to you?

Career advancement? Greater opportunities? Personal development?
With distance learning, all these things are within your reach.
California National University for Advanced Studies (CNU) is an accredited distance-learning university designed for technical and business
professionals. The CNU College of Quality and Engineering Management includes a Bachelor of Quality Assurance Science and a Master of
Engineering Management. Combining distance learning with one-on-one instruction, CNU degree programs provide maximum flexibility for maximum
growth. The Bachelor of Quality Assurance Science prepares the individual to be able to manage, plan, procure, design, and maintain an effective
Quality Assurance Program within a company. The Master of Engineering Management provides the individual with the breadth of knowledge required
for succesful project management, and with the ability to integrate knowledge from diverse disciplines.
CNU also offers seven other degree programs and courses by extension for those who prefer to begin their continued education gradually.

Let CNU help you take it to the next level.

Contact one of our admissions representatives at 800-782-2422 or e-mail cnuadms@mail.cnuas.edu.

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For sterile products, packages & processes
Kailash S. Purohit, Ph. D.
www.processtek.net
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James Highlands,
RLA, CQA
• Audits-Training • Consulting
• Management Reviews
• Quality Program Development
ISO 9000, ISO 14000, NQA-1, ASME III,
jhighl@aol.com
www.ManagementSystemsAnalysis.com
Management & Quality Consultants
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QualityQuest, Inc.
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PH: 847-870-0822, Fax: 847-870-0872
mike@mikemick.com; www.mikemick.com
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QUALITY PROGRESS I MAY 2007 I 83

 For information on placing an ad,

Professional Services contact Ramona Garcia at 800-248-1946,

or 414-272-8575, or e-mail rgarcia@asq.org

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Introduction to N C M
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86 I MAY 2007 I www.asq.org


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The Department of Engineering Management and Systems Engineering (EMSE) at the University
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QUALITY PROGRESS I MAY 2007 I 87
BACK TO
BASICS
It’s Just Paperwork?
hen I was a teenager, my
W mother gave me a diary and
a bit of advice: “Say what
you think, but be careful what you
write.”
She was referring to the perma-
nence of written words and the harm
we can cause by careless writing. I
was reminded of this incident the
other day when I overheard a com-
ment that stopped me in my tracks:
“It’s just paperwork.”
Just paperwork? Then why do we
bother to put things in writing? Why
does ISO 9001 require a procedure to
control documentation and data?
Why, for that matter, did mankind
develop written languages?
Understanding the need for docu-
ment control begins with understand-
ing the need for documents. We put
things into writing for many reasons.
Here are some of them:
To inform: Some of the earliest
“documents” weren’t written on
paper but on stone, and pictographs
formed early written languages.
“Buffalo pass through canyon in that
direction,” marked in graphic sym-
bols, told other hunters where to find
food.
In medieval Europe, as trade in vil-
lage marketplaces grew, signs depict-
ing food or beverages informed
travelers where they could eat and
rest. During the Renaissance, when
commoners began learning to read
and write, town criers were replaced
with posters and eventually newspa-
pers. From the beginning, documents
have been used to impart information.
To formalize: Kings and popes
issued proclamations in writing, giv-
ing them greater credence. Religious
rites were standardized when they
were documented. Contracts and
peace agreements were put into writ-
ing, making them official. Today, reg-
ulations, standards, governmental
policies and procedures are docu-
mented in print.
To certify: Along these lines, docu-
ments are used to grant authenticity
and truth to specific events or to pro-
vide assurance that certain standards
have been met. Letters of introduc-
tion serving as references once
88 I MAY 2007 I www.asq.org
by Carol Mahoney
accompanied callers and jobseekers.
Marriage certificates signify new
legal relationships. Food sanitation
certificates show that restaurants
have passed inspection. Diplomas
certify the attainment of certain edu-
cational levels.
To remember: The development of
writing allowed mankind to record its
oral history. The Bible, for instance,
contains a lengthy genealogy of Jesus,
Understanding the
need for document
control
establishing that he came from the
house of David. Every culture has oral
traditions, myths, folklore and songs
that were put into writing to be
passed on to future generations.
Today, doctors and hospitals keep
medical records to preserve important
patient information. Project managers
write reports on what they did and
learned, providing a future reference
that becomes part of their organiza-
tion’s history. Meeting minutes, lists,
tables, experiment and test results,
and lecture notes are written for the
purpose of remembering.
To prove: We record titles to docu-
ment ownership of property, such as
real estate and cars. We keep receipts
and other financial records to prove
purchases, warrantees, tax deduc-
tions, annual reports and regulatory
compliance. We carry passports and
drivers’ licenses to prove our identity.
We carry cards that prove we have
insurance, membership in organiza-
tions, voter registration or CPR train-
ing. At work we complete checklists
and other forms that become records,
providing evidence that we did what
was required.
To plan: Military battles, emergency
preparedness, business strategies and
itineraries are just a few of the things
we document in advance. Writing as
we plan helps us think. Writing our
plans helps make them real and moti-
vates us to take action to reach our
goals. Whole occupational fields, such
as financial planning, wedding plan-
ning and even funeral planning, have
arisen to help us document what it is
we want to achieve and how we hope
to accomplish it.
To instruct: With the invention of
the printing press came catechisms
large and small for the purpose of
providing religious indoctrination to
laypeople and their children. Before
public education was available in this
country, in the absence of textbooks
and primers, children often learned to
read using Bibles, Torahs, hymnals or
prayer books. Borrowing from the
military, business managers today
often write standard operating proce-
dures, or work instructions, to train
their employees on the preferred
methods for completing their
assigned tasks.
Understanding how we use docu-
ments—and why—helps us view
them as information, not just paper-
work. Documents provide informa-
tion that builds knowledge if they are
managed well. Documents can also
lead to misunderstanding and some-
times costly mistakes if they aren’t
managed well. The knowledge base of
an organization is a valuable asset,
but its worth depends on the quality
of the information contained in its
documents.
Controlling documents throughout
their life cycle, as required by ISO
9001, creates accountability and
responsibility for maintaining the
accuracy of that information.
“Just paperwork?” Say what you
think. But the next time you’re wait-
ing in the airport check-in line to
receive your boarding pass, remember
it might be more than just paperwork
standing between you and that air-
plane. And be glad you’ve got it in
writing.
CAROL MAHONEY is an ISO 9001 manage-
ment representative and certified Six Sigma
Green Belt at a Midwest manufacturing facili-
ty; she is also a member of ASQ. She holds a
bachelor’s degree in education from the
University of Minnesota and taught in a large
suburban district for several years. She cur-
rently coordinates her company’s ISO 9001
quality management system and conducts Six
Sigma improvement projects.
 Dr. Donald J. Wheeler
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