xxxi
Introduction
The world of quality has been involved with quality ideas since prehistoric
times, from primitive approaches to craftsmanship, to MIL-STDs, to gen-
eral industry standards, to international standards, and to specic industry
standards.
However, none of them has been successful enough to say with a sense
of certainty that quality has overcome its nemesis of timing and price. (We
purposely mention price because that is the cost per unit on which most
organizations focus. Organizations should focus instead on the lifecycle cost
for a best estimate for the true cost.) To be sure, quality has evolved to levels
of unprecedented magnitude, but we still have a long way to go.
In fact, for years we have been conditioned to think that a successful orga-
nization is one that will have a good product and a fast way to bring it to
market. It may have worked in the past for some. However, in the world of
today, the options of price, time, delivery accuracy, and dependability from
both OEMs (customers) and suppliers may be summarized in three catego-
ries. They are
1. Good and fast delivery of a nished product: This implies quality
and expensive product or service. In everyday language, we think
of this option as a way to bring all resources together with top prior-
ity. This means we will not cut corners but rather we will encourage
and use human and technological resources to ensure the product is
completed on time and will be of the highest quality. The cost may
be high up front, but in the end it will be more cost-effective and it
will gain favorability from the ultimate customer. This option is by
far the best!
2. Good and cheap delivery of a nished product: This implies slow and
mass production of a product or service. In everyday language, we
think of this option as a potential discounted product and as a conse-
quence, we give it less priority and certainly less human and technol-
ogy resources. The result of this option is that the quality is going to
be acceptable; however, it will take a long time to accomplish based on
delays in design or manufacturing, and/or delivery concerns.
3. Fast and cheap delivery of a nished product: This implies inferior
product or service. In everyday language, we think of this option as
you get what you pay. Obviously, this option is lacking in many ways,
but predominantly in lower priority and fewer allocated resources.
Its purpose is to deliver it at all costs on time regardless of quality.
This is the worst option.
xxxii Introduction
Unfortunately, many organizations follow Option 2 or 3. How else can we
explain major mishaps in so many industries and in some cases fatalities
because of lack of quality? The latest disasters in the automotive industry
because of some fundamental mistakes (oversights?) prove the point. They are
• Power steering failures
• Accelerator problems (unintentional acceleration)
• Transmission gear jumps from park to reverse
• Ignition issues (re incidents)
• Wiring issues (re incidents)
• Brake issues (unusual corrosion)
• Nondeployment of air bags
These failures include automakers from United States, Germany, France,
Sweden, and Japan, and involve millions of recalls in a variety of models
over the last 10 years. What is interesting about these failures is the fact that
all of the failures have occurred to critical or essential items in the automo-
bile. In fact, after over 100 years of producing these cars, one would think
that they would have perfected the items in question. Obviously, they have
not. The question is why? There are many reasons for it, but we believe the
primary reasons are the desire to cut costs and to shrink the time from devel-
opment to Job 1 (the production date). Furthermore, articial due dates end
up in failures—quite often in fatalities—due to the tendency to compromise
(cut corners) the standards, procedures, and practices that dene the quality
of the products/services.
It is interesting to note here that even compliance with international stan-
dards, recipients of the Malcolm Baldrige National Quality Award or strong
followers of the Six Sigma methodology have not prevented catastrophic
failures. The reason is that systems exist for fundamental improvement of
quality, but a strong strategy for its implementation and sustainability is
lacking. We must note here that even the certication to international and/
or industry standards is not a guarantee that failures will not occur.
This book is focused on doing things right the rst time including the launch-
ing requirements for a awless implementation of a program and/or ser-
vice. We have addressed some generic issues, especially from the automotive
industry, which we believe transcend industries and may in fact be equally
applied to service organizations with minor modications.
In a sense, we have tried to summarize this effort in the following
principles:
• More service. More service means real-time problem solving by
experienced and dedicated customer service groups that are on site
at each facility.
xxxiiiIntroduction
• More reliability. More reliability means strategically located produc-
tion facilities that offer the same exibility, quality, and service every
time everywhere.
• More quality. More quality means quality management systems are
in place that, coupled with state-of-the-art appropriate and applica-
ble processes and unparalleled attention to detail, will ensure that a
product meets the highest standards.
• More exibility. More exibility means a lean organization with
the ability to quickly adapt to instantly changing business environ-
ments and production design requirements.
We also have recognized that the engines of change in both OEMs (cus-
tomers) and suppliers are the leaders of management. It is management’s role
to direct and inuence the organization. This leadership must be displayed
on a daily basis through commitment and behaviors. Without management’s
commitment, there is no do it right the rst time. The necessary behaviors for
strong leadership are
• Integrity (does the right thing)
• Exemplies honesty and maintains trustworthiness
• Exercises principled judgment, especially on the tough calls
• Keeps one’s word despite the consequences
• Courage (takes action in the face of challenge)
• Offers new ideas that question the status quo
• Takes risks in championing better ideas
• Demonstrates judgment and self-condence, even in stressful
situations
• Teamwork (collaborates to achieve results)
• Values team members with different ideas, points of view, and
backgrounds
• Acts to break down barriers and chimneys (silos) to innovative
team ideas
• Demands team-oriented behavior and insists on personal
accountability for such behavior
• Durability (perseveres despite hardship)
• Maintains originality and creativity in staying the course to
achieve agreed upon objectives
• Shows tenacity and boldness in securing and using resources
• Maintains inspiration, focus, intensity, and persistence, even
under adversity
xxxiv Introduction
• Communication (exchanges information and ideas that impact and
inuence others)
• Listens completely, and then condently speaks up on the issues
• Provides concise, compelling, and innovative evidence to sup-
port positions
• Demonstrates sensitivity to language and cultural communica-
tion requirements
• Systemic thinking (sees beyond the details)
• Thinks cross-functionally about ideas that impact the business
• Boldly pursues ways to improve processes and incorporate new
ideas
• Inspires systemic change efforts that make a difference
• People development (teaches, develops, and motivates people)
• Values and condently promotes a diversity of new ideas and a
diverse workforce
• Acts to enhance the creativity and professional development of
self and others
• Treats everyone with fairness and respect regardless of position
or social status
• Desire to serve (demonstrates personal commitment)
• Seeks new ways to ensure ultimate customer enthusiasm
• Determined to achieve the organization’s objectives and act in
the organization’s best interests.
• Accepts willingly the challenge of different functional and geo-
graphical assignments
• Drive for results (gets the job done)
• Develops challenging, innovative objectives and accepts per-
sonal responsibility for accomplishing them
• Prioritizes resources, inspires performance, and measures
outcomes
• Negotiates agreements that move the business forward
• Focuses on prevention rather than detection methods to
improvement
• Innovation (applies learning for competitive advantage)
• Demonstrates adaptability and exibility in evaluating creative
ideas
• Applies lessons learned from successes as well as failures to
inspire new ideas
• Dares to dream about and implement new ways of doing business
xxxvIntroduction
• Business acumen (understands the essential requirements of our
business)
• Knows the organization’s business operations and the global
business context in which the organization operates
• Knows the basic business principles used to achieve quality, cus-
tomer, and prot outcomes in a global competitive environment
• Demonstrates functional and technical prociency
• Quality methods (understands what it takes to do quality work)
• Shows passion for achieving quality
• Measures and monitors quality on an ongoing basis
• Demonstrates resolve for meeting the ultimate customer’s qual-
ity requirements
Hopefully, the reader will agree with our approach.
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