The Face of QualityName: Grace L. Duffy.
Residence: Tavares, FL.
Education: Master's degree in business administration, Georgia State University (her bachelor's degree is in anthropology).
First job related to quality: Software maintenance and corrective action, which involved gathering data, analyzing error indicators, suggesting resolutions and documenting problems for IBM and its customers.
Current job: Private consultant specializing in organizational improvement, leadership, quality, communication, customer service and teamwork.
Current ASQ activities: Senior Member; chair of the Quality Management Division and Society Bylaws Committee; ASQ certified quality manager, quality auditor and quality improvement associate. (Duffy says she had used quality techniques and concepts for 20 years before hearing of ASQ. "What a delight to find an organization where I can share my thoughts and ideas with such competent professionals.")
Published works: Co-editor of The Quality Improvement Handbook and co-author of The Executive Guide to Improvement and Change, both published by ASQ Quality Press.
Personal: Married for 23 years to John G. Duffy.
Favorite ways to relax: Riding a 2002 Harley-Davidson Road King with her husband, volunteering with ASQ and reading "Star Trek" books.
Quality quote: Quality is part of everything we do. Every part of our lives can be improved by using the techniques and tools of quality. We benefit most from quality when we integrate it into not only our professional lives, but our personal and community lives as well.
ISO Says 8 of 10 Cars To "Run" on ISO 9001:2000
The International Organization for Standardization, known as ISO, says as many as eight of every 10 cars and trucks produced around the world will contain parts or components designed, manufactured and sold under an ISO 9001:2000 based quality management system.
Henry Gryn of DaimlerChrysler made this prediction in an article in the May-June issue of ISO Management Systems. Gryn is delegation leader representing the International Automotive Task Force, an ad hoc group of auto manufacturers that formed a partnership with ISO Technical Committee 176 and the Japanese Automobile Manufacturers Assn. to develop ISO Technical Specification (TS) 16949:2002 to harmonize quality management requirements for the automotive sector worldwide.
According to Gryn, auto manufacturers who plan to migrate their suppliers to the new requirements by December 2006 account for 80% of vehicle sales worldwide. More than 30,000 supplier companies worldwide will be affected.
To date, companies that will be affected by ISO/TS 16949:2002 are primarily direct manufacturing suppliers to BMW, DaimlerChrysler, Fiat, Ford Motor Co., General Motors Corp., PSA Peugeot Citroën, Renault and Volkswagen.
ISO published the technical specification in March 2002. It incorporates the text of ISO 9001:2000 verbatim, adding specific automotive sector requirements.
Satisfaction Index Up One Percent; Travel Industry a Factor
Customer satisfaction rose a significant 1.2% in the last quarter, according to the American Customer Satisfaction Index (ACSI). It now stands at 73.8 on a 100-point scale.
Improvement in the travel sector, including airlines and hotels, contributed greatly to this increase. Satisfaction with the former went to 67, up 1.5% since last year's quarterly measurement of the sector. American Airlines (AMR) saw the biggest increase--6.3% to a score of 67. Southwest Airlines topped the list of major carriers with a 75, just above the composite 74 for smaller airlines classified under "all others."
"In view of the weakening demand and the financial woes facing most airlines, the improvement in passenger satisfaction may come as a surprise to some, but it is quite consistent with what one would expect," said Claes Fornell, director of the University of Michigan Business School's National Quality Research Center, which compiles and analyzes the ACSI data. "Companies confronted by falling revenues, and low job security for employees as a result, are compelled to try harder. More-over, they have fewer remaining customers to service, and under such circumstances, customer satisfaction often improves."
Hotel satisfaction rose 2.8% to 73 for the same period, with Starwood Hotels & Resorts seeing a 5.8% increase to a score of 73. Hyatt Corp. had the highest score--77--with its 2.7% increase.
In the beleaguered telecom sector, smaller carriers classified as "all others" saw their scores jump 11% to 81. They bested all the major carriers.
No overall sector scores except that for the U.S. Postal Service declined during the period. The post office score went down 1.4%, to 72, although its package delivery service went up 2.5% to 75. Cable's dismal score was a main factor in the cable/satellite sector's having the lowest ranking in the ACSI with a score of 61. Other sectors measured during the quarter were parcel delivery, local telecom, broadcasting-TV, energy utilities, gas and electric service, newspaper publishing, hospitals and motion pictures.
The index is a partnership of the business school, ASQ and the CFI Group and is supported in part by Market Strategies Inc., a corporate contributor, and ForeSee Results, an e-commerce corporate sponsor.
For complete information on the ACSI and its results, visit www.asq.org or www.theacsi.org.
(clockwise from top left) Section Affairs Committee: Brenda Fisk, Timothy Surratt, Jim Spichiger, Jane Martin and Barbara Fisk at the Section Affairs Committee meeting at AQC. Two More WorldPartner Agreements Signed: WorldPartner agreements between ASQ and two other organizations--the National Quality Institute (NQI) from Canada and the German Society for Quality (Deutsche Gesellschaft für Qualität e.V or DGQ)--were signed during the Annual Quality Congress (AQC). About 200 international attendees from 27 countries were at AQC, with the largest delegations from Korea and Brazil. The photo shows (l to r) Juergen Varwig, president of DGQ; Elizabeth Keim, then president of ASQ; and Dan Corbett, president and CEO of NQI. Exhibit Hall Activity: A Microsoft representative tells a large crowd about the new quality software it introduced at AQC. Varoom: Keynoter Steve Phillips, vice president, quality, reliability and technical service for Harley Davidson Motor Co., lets then ASQ president Liz Keim get the feel of a "hog." Run for Health: About 50 exercise enthusiasts participated in AQC's first Run for Health sponsored by ASQ's Health Care Division and Juran Institute. Participants included ASQ's president and other volunteer leaders and attendees from as far away as Belgium and Finland. Proceeds from the 1- to 6-mile run/walk were contributed to Kansas City's Children's Mercy Hospital.
FIRST TIME IN NINE YEARS--S&P Beats Baldrige Index
For the first time since the study began in 1995, the fictitious Baldrige Index has underperformed the Standard & Poors (S&P) 500. The former is made up of publicly traded U.S. companies that received the Malcolm Baldrige National Quality Award (MBNQA) between 1992 and 2001.
Throughout the nine years of the study, the Baldrige Index outperformed the S&P by as much as 6 to 1. "This past year has been a particularly tough one for technology stocks, which are a very significant component of the Baldrige portfolio," says Harry Hertz, director of the National Institute of Standards and Technology (NIST) National Quality Program, which manages the MBNQA.
In the latest study, NIST "invested" $1,000 in the two whole company winners--Eastman Chemical Co. and Solectron--and the parent companies of 19 subsidiary winners. Another hypothetical $1,000 was invested in the S&P for the same period.
The investment was tracked from the first business day of the month following the announcement of the Baldrige Award recipients (or the date when they began public trading) through Dec. 2, 2002.
The two whole company winners underperformed the S&P by about -0.71 to 1, with a -34.19% return compared to a 48.02% return for the S&P. The 19 subsidiaries underperformed the S&P by -0.53 to 1, with a -23.74% return compared to a 45.16% return for the S&P.
In last year's study, the same two whole company winners outperformed the S&P by about 4.5 to 1, while the parent companies of subsidiaries outperformed the S&P by about 3 to 1.
More information on all nine Baldrige Index studies is available at http://baldrige.nist.gov/Stock_Studies.htm.
Purchasing and Supply Execs Expect Recovery To Continue
Economic growth will continue in the second half of 2003 according to the 65th semiannual forecast of the Institute for Supply Management (ISM) released May 20.
In the manufacturing sector, the executives surveyed by ISM expect revenues to grow modestly (about 2%) from 2002, with the greatest improvement expected in paper, chemicals, food, transportation and equipment, wood and wood products, electronic components and equipment, textiles, instruments and photographic equipment, and rubber and plastic products sectors.
Purchasers report operating at 79% of their normal capacity, down slightly from just 79.2% reported in December 2002. But they are more optimistic with regard to the economy and see improvement in their prospects for the balance of 2003.
In nonmanufacturing, 58% of the execs predict revenues to be greater in 2003 than in 2002. They currently expect a 5.4% net increase in overall revenues compared to a less than 1% increase reported for 2002. Nonmanufacturing industries expecting the greatest improvement over 2002 are real estate, transportation, business services, insurance, finance and banking, and retail sales.
Nonmanufacturing execs report operating at 84.2% of their normal capacity, slightly above the 83.9% reported in December 2002. But they are less optimistic about the next 12 months than in either May or December 2002.
IAR Offers Phased Transition Program to Revised Standard
Under its new phased transition program, the International Accreditation Registry (IAR), which accredits ISO 9000 certification bodies, will continue to recognize accredited certificates of registration to the 1994 editions of ISO 9001, 9002 and 9003 until Dec. 31, 2004. The previous deadline had been Dec. 31, 2003.
The transition to ISO 9001:2000 has been much slower than anticipated largely due to a series of unforeseen economic and political events, according to Marisol Valenzuela, executive director of Miami based IAR. "The drafters of ISO 9001:2000 could not have foreseen the collapse of the telecommunications and high-tech markets and 9-11," she explains, blaming economic and political events for the slower than expected transition to the revised standard.
The phased transition program is open to clients of certification bodies holding accreditation through IAR, which was established in 2001. Eligible organizations must have an approved transition plan to ISO 9001:2000 with an anticipated completion date of no later than Dec. 31, 2004.
"This program does not excuse companies from transitioning... it actually encourages them to set attainable milestones to accomplish their transition in a slightly more flexible timeframe," says Valenzuela.
Bob King, CEO of ANSI-RAB (American National Standards Institute-Registrar Accreditation Board), says it's unlikely the International Accreditation Forum, of which ANSI-RAB is a member, will extend its deadline from Dec. 31, 2003.
"At the IAF executive committee meeting this April, there was no discussion of any extension. We support this decision," King says.
Six New Juran Fellows Named by Center for Leadership
The six 2003 Juran Fellows have been announced by the Juran Center for Leadership in Quality at the Carlson School of Management at the University of Minnesota. The new fellows, doctoral candidates doing research in quality related areas, are:
- Hoi-Ming Chi, Purdue University--"Factories of the Future: Toward Automated Intelligent Manufacturing Systems."
- Ann H. Dodd, Penn State University--"Examining the Relationship Between Communication and the Use of Quality Management Practices in Academic Departments."
- Amer Kaissi, University of Minnesota--"The Effects of Culture and Structure on Patient Safety in Medical Group Practices."
- Nicholas L. Ball, University of Minnesota--"The Effect of Information Systems Infrastructure on the Performance of the Information Systems Function."
- Margo A. Halm, University of Minnesota--"Health-Related Quality of Life of Coronary Artery Bypass Patients and Their Spouses at Six Months to One Year."
- Enno Siemsen, University of North Carolina, Chapel Hill--"Why Do Workers Hoard Knowledge?"
The first three listed each received a $10,000 grant; the latter three, $5,000 each.
World Standards Day Paper Competition
The Standards Engineering Society (SES), in conjunction with the World Standards Day planning committee, has announced that this year's paper competition topic will be "Building Global Security Through Standards."
The competition is open only to United States based organizations and individuals. The theme covers such areas as information security, better communications, physical security, threat detection and protection, strengthened building construction, fire safety, law enforcement tools and improved emergency response.
Winners will receive their awards during World Standards Day ceremonies Sept. 30 in Washington, DC.
Winners will receive $2,500, $2,000 and $500 for first, second and third place, respectively, and their papers will be published in SES' Standards Engineering. The first place winning paper will also be published in the ANSI Reporter, published by the American National Standards Institute.
Two Divisional Conferences Planned On Sept. 15, the Energy and Environmental and Design and Construction Divisions will sponsor their joint Energy and Environmental Annual Conference in Las Vegas. The Chemical and Process Industries and Statistics Divisions will hold their combined 47th Annual Fall Technical Conference Oct. 16-17 in El Paso, TX.
New Fellows Honored ASQ's newest Fellows were honored at the Annual Quality Congress (AQC) May 19-21 in Kansas City, MO. They are Sue McGrath Carroll, Wendy H. Dressler-Finnerty, James E. Duarte, Traci V.A. Edwards, Linda D. Feres, Gregory S. Gay, Randall L. Goodden, Douglas H. Hoffman, Franklin D. Knight Jr., Mary C. Lutz, Carl D. Nocera, Carla Traci Preston, Mark J. Schoenlein, John M. Sharp, Alexander Slawuta, Paula B. Sommer, John R. Trubiano and C.F. Jeff Wu.
13 Divisions Get McDermond Award Thirteen ASQ divisions were recognized for providing value to members during AQC. Attaining top achiever status awards in the J.S. McDermond Division Management Program were the following: automotive, aviation/space & defense, biomedical, chemical and process industries, customer-supplier, energy and environmental, food/drug and cosmetic, healthcare, inspection, quality management, reliability, service quality and statistics.
43 Sections Honored Also honored at AQC were 43 sections that received the Section Management Process Total Quality Award for serving local members and their communities. The sections recognized were 203, 205, 210, 300, 304, 305, 308, 309, 505, 508, 510, 605, 607, 627, 700, 701, 706, 801, 802, 903, 904, 915, 917, 1104, 1128, 1206, 1300, 1301, 1303, 1306, 1308, 1310, 1312, 1313, 1314, 1400, 1402, 1407, 1416, 1509, 1510, 1512 and 1523.
Auditing Courses Scheduled ASQ's auditing and standards courses have recently been reviewed and updated to benefit the organizations relying on internal and lead auditing skills of staff. To make it easier for attendees to take more than one course, several have been scheduled in the same cities at about the same time. For more information on the courses and schedules, check out the "QP Calendar" on p. 97 of this issue of Quality Progress or visit our training area and click on "auditing and supplier quality" and "standards/compliance."
THE QUALITY EXCELLENCE FOR SUPPLIERS OF TELECOMMUNICATIONS (QuEST) Forum's Asian/Pacific Conference will be held Nov. 5-6 in Hong Kong, not Sept. 23-24 as reported incorrectly in last month's issue. The annual QuEST Forum Best Practices Conference is the one slated to be held Sept. 23-24 in Schaumberg, IL. For more information on either event, go to http://questforum.asq.org or e-mail email@example.com.
THE ADVANCED MEDICAL TECHNOLOGY ASSN. has issued reports on points to consider when preparing for a U.S. Food and Drug Administration inspection. The reports cover management controls, design controls, corrective and preventive actions and production and process controls. Additional information and the reports can be found at www.advamed.org/mtli.
THE NATIONAL GOVERNORS ASSOCIATION CENTER FOR BEST PRACTICES has issued a report on the achievement gap between minority and disadvantaged students and their white counterparts. The study explores the history and nature of the problem, state efforts to close the gap, possible state level strategies and solutions, and potential pitfalls.