Total Quality Management

Instructor: Hank Sobah

Quality Theory Juran, Crosby, Deming

Total Quality Management

Key concepts The Cost of Quality Tools and Techniques Benefits Implementation

Total Quality Management

Company Wide Quality Control
Whole operation Involved
Quality strategy Teamwork Quality measured in all areas of the firm

Quality Assurance
Quality System Quality Costing

Staff Empowerment
Customer Involvement Supplier Involvement

Quality Control
Problem Solving

Statistical Methods
Quality Planning Process Performance Quality Standards

Inspection
Error Detection Rectification

The Cost of Quality

Elements (prevention, detection, appraisal, internal and external failure, customer loyalty) Kaizen TQM always involving everyone, always going forward, a Way of Life. Cost is related to not doing something Not just a manufacturing initiative

Cost of Quality
The earlier in the process that quality is fixed the lower the overall cost. (obvious really isnt it!)
Prevention Appraisal Prevention Internal failure Appraisal External failure Internal failure External failure

Quality Management Tools

Pareto principle 80/20 Visual presentation histograms, scatter diagrams, control charts Check sheets SPC Statistical Process Control Cause and effect diagrams Fishbone / Ishikawa diagram Stratification

Beyond Tools to TQM

Taguichi Quality Loss Function (QLF) Quality circles Kaizen

Company Wide Quality Control

Customer service Quality of management Quality of company Quality of labour Quality of Materials, techniques, equipment

TQM Implementation
Top level strategy with management support Steering Group Group based improvement (quality circles) Continuous improvement (Kaizen) Success recognized Training, lots of it & continuously Examples of formats MBNQA, ISO 9001 / BS 5750

Benefits
Shareholder wealth Increased job satisfaction (by improved communication and involvement, better training, pride in work workmanship Customer needs are better met Improved supplier relationship Corporate image improved Longer term relationships customer value

Without TQM
Uninterested operators Increased defects in products Drop in labor efficiency No quality consciousness (why bother?) Increased absenteeism Increased labor turnover

TQM Requires
Top management commitment Continuous improvement All aspects of the business Long-term commitment

Eight attributes of quality

Performance Features Reliability Serviceability Durability Conformance Aesthetics

Perceived Quality

The difference between TQM and non TQM Companies

IBM in Ontario ordered a batch of components specifying an SQL of 3 defective parts per 1000. When the parts arrived from the Japanese manufacturer they were accompanied by a letter which expressed their bewilderment at being asked to supply defective parts as well as good ones. The letter explained that they had found it difficult to manufacture the defective parts , but indeed had. These 3 defective parts per 1000 had been included and were wrapped separately for the convenience of the customer.

Extra Slides

Ishikawa 4 Ms
Materials
Machines
Lack of maintenance

Effect

Manpower

Methods

Quality Circles

5-10 People usually drawn from the same operational area Meet regularly during work time Chaired by a deputy, or foreman Use of SQC methods and problem solving techniques Brainstorming and goal orientation Future problems - failure mode effects analysis Opportunity for development both formal and through creativity Management must act on recommendations from the group

Kaizen

KAIZEN is a Japanese word meaning gradual and orderly, continuous improvement. It is a business strategy involves everyone in an organisation working together to make improvements 'without large capital investments'. KAIZEN is a culture of sustained continuous improvement focusing on eliminating waste in all systems and processes of an organisation. KAIZEN strategy begins and ends with people. Involved leadership guides people to continuously improve their ability to meet expectations of high quality, low cost, and on-time delivery.
Source: www.kaizen-institute.com

Kaizen The Wet Blanket Approach

I am too busy to study it It's a good idea, but the timing is premature It is not in the budget Theory is different from practice Isn't there something else for you to do ? I think it doesn't match corporate policy It isn't our business; let someone else think about it Are you dissatisfied with your work ? It's not improvement, it's common sense I know the result, even if we don't do it I will not be held accountable for it Can't you think of a better idea ?

Source: www.kaizen-institute.com

Basic tips for Kaizen Activities

Discard conventional fixed ideas. Think of how to do it, not why it cannot be done. Do not make excuses. Start by questioning current practices. Do not seek perfection. Do it right away even if for only 50% of target. Correct it right away, if you make a mistake. Do not spend money for KAIZEN, use your wisdom. Wisdom is brought out when faced with hardship. Ask 'WHY?" five times and seek root causes. Seek the wisdom of ten people rather than the knowledge of one. KAIZEN ideas are infinite.

Source: www.kaizen-institute.com

Pareto Diagrams

Total Number of Problems

Class A

Class B

Class C

Class 'n'

Causes of failure

Class A factors are the 20% of recurring causes resulting in 80% of all quality symptoms - these are critical and must be reduced.

Total Productive Maintenance

Prevention rather than cure Seri - Sorting Seiton - Orderliness Seiso - Cleaning Seiketsu - Cleanliness

Taguchi Methods
Approach pulls quality back to the design stage. Recognizes quality as societal issue as well as an organizational one. Strong on process control

Prophets of Quality Juran, Crosby, and Deming

All agree - it is management's responsibility to establish a culture where commitment to quality is the main focus Mission of the organization must be clear to everyone, Every management action must lead to fulfillment of that mission. Requires commitment from the top of the organization. Effective communication, cooperation, and teamwork throughout the organization are essential

Juran, Crosby and Deming All agree

Customer-focused quality is a long-term process that will not produce results overnight. Long term improvements include reduced costs and ability to anticipate and avoid problems Dont view quality as improvement in final products Dont believe inspection/QC processes productive or cost effective means of managing quality

Joseph Juran
It is most important that top management be Quality-Minded. In the absences of sincere manifestation of interest at the top, little will happen below. 1945

Joseph Juran
Bell Engineer 1924, began working with Shewart and Deming on SPC Author of Western Electric Statistical Quality Control Handbook and the Juran Quality Control Handbook Strategic and Structured Quality Approach Principal of the Vital Few and Trivial Many Developed a course, MANAGING FOR QUALITY in 1940s and taught it for approximately 30 years to over 100,000 people in over 40 countries Emphasized the role of management in quality. By 1960s began teaching US the new quality ideas coming out of Japan

Joseph Juran
Main Concepts: Top Management Involvement Pareto Principle Need for widespread training in Quality Definition of Quality as Fitness for Use Project by project approach to Quality Improvement SPC and Process Analysis Cultural patterns root of resistance to change Great need to communicate

Joseph Juran
Proposes a strategic and structured (i.e., project- byproject) approach to achieving quality. His concepts include: 1. the Spiral of Progress in Quality, 2. the Breakthrough Sequence, 3. the Project-by-Project Approach, 4. the Juran Trilogy, and 5. the principle of the Vital Few and Trivial Many

Juran Project by project approach

Two types of teams to analyze projects the steering arm and the diagnostic arm Projects and teams selected by management Members required to develop skills in team leadership, team participation and problem solving tools. All employees need to participate in the improvement process

Jurans Journey
Process of analyzing problems is a journey from symptom to cause Emphasizes root cause removal Symptom is indication that there is a problem Once the cause is discovered, the team comes up with the solution

Jurans Trilogy
Systematic approach to carrying out Juran s methodology for managing for quality. Active leadership, starting at the top, is essential Consists of three interrelated qualityoriented processes
quality planning, quality control, and quality improvement

Juran Trilogy Relevant Activites

Identifying customers, Establishing measurements, and Diagnosing causes. Juran compares the activities of the trilogy with those of financial operations. Money is the language of management and, in his terms, quality planning is analogous to budgeting, quality control to cost control, and quality improvement to cost reduction.

Philip Crosby
Quality cant be delegated. The who and why must be understood by top management before the what and how can be launched.
Quality is Free and Zero Defects

Phillip Crosby
Noted Quality Consultant, Lecturer and Author of many books translated into over 10 languages Author of QUALITY IS FREE, 1979 Best Seller Recognized Business Philosopher, Innovator and Quality Guru Philip Crosby Associates is worlds largest management consultant and teaching firm Promoted the concept of Zero Defects originally at Martin Marietta where he worked 1960s Quality attitude, commitment to quality performance, zero defects first time every time Defined Quality as CONFORMANCE TO REQUIREMENTS Prevention rather than detection and correction

Phillip Crosby
Main Concepts: Management must understand the issues and take responsibility to improve Management must remove barriers to quality Must understand organization and process capabilities Management must continually measure quality by measuring the cost of doing things wrong Quality Pays and Pays Handsomely, Quality does NOT cost more per conventional wisdom Cost of Quality Analysis (COQ = Price of NonConformance + Price of Conformance)

Phillip Crosby
Four Absolutes of Quality
Quality is Conformance to Requirements Eliminate Errors before the Occur Do it right the first time The Measurement of Quality is the Price of NonConformance

Six Cs of Quality Comprehension of Q, Commitment to Q, Competence via education and training, Communication, Correction (prevention and performance) and Continuance Quality Vaccine = Education, Determination and Implementation

Phillip Crosby
Stressed the way to manage quality is by prevention, not detection and testing. Addresses the need to change perceptions and attitudes about quality. Avoid the common attitude that error is inevitable; it is a normal part of business life, and one needs to cope with it. Ultimate goal of quality improvement is Zero Defects or defect-free" products and services. Zero Defects is an attitude and commitment to prevention. Zero Defects does not mean that the product has to be perfect.

Phillip Crosby
The system of quality is prevention Training, discipline, example, and leadership produce prevention Inspection and correction does not prevent errors. Prevention involves thinking, planning, and analyzing processes to anticipate where errors could occur, and then taking action to keep them from occurring. Problems usually arise because product or service requirements are either lacking or in error.

Phillip Crosby
Prevention begins by: Establishing product or service requirement, Developing the product or service, Gathering data, comparing the data to the requirement, and Taking action on the result. This is a continuous activity.

Which Quality Guru was a key player, a mastermind in Total Quality Management programs?
Why, Dr. W. Edwards Deming, of course!

W. Edwards Deming
everything is the fault (or credit) of top management.

W. Edwards Deming
High Prophet of Quality Control and TQM Advisor, consultant, author, teacher to most influential business leaders and organizations in the world. PhD. Physicist in 1928, worked with Shewart and Juran on SPC Founder of the THIRD WAVE OF INDUSTRIAL REVOLUTION 1938 applied SPC concepts to U.S. Bureau of Cencus for sampling techniques 1942 Served as consultant to the Secretary of War on using SPC to strengthen the war effort

W. Edwards Deming
Assisted in the re-vitalization of post WWII Japan by applying SPC and QC techniques to agricultural and manufacturing issues Japanese Union of Scientists and Engineers contracted Deming to teach statistical methods to Japanese industry, naming their national quality award The Deming Award after him Pursued similar mission in USA Gained and almost Cult Status for his philosophies 1980 NBC Special, IF JAPAN CAN WHY CANT WE launched US Quality Movement Life long demand as Lecturer and Consultant

W. Edwards Deming
Takes a systems and leadership approach to quality. Concepts associated with his approach include:
14 Points 7 Deadly Diseases Theory of Systems Theory of Knowledge Theory of Variation Plan-do-check-act Quality improvement by process improvement

W. Edwards Deming
Deming chain reaction: improve quality, costs decrease and productivity improves. Creates a greater potential for increased market share.

Deming 7 Deadly Diseases

7 Reasons TQM Fails
Lack of a clear shared model of quality that the entire organization embraces. Lack of shared values and vision for the organization Focusing on COMPLIANCE (to standards, procedures, goals), rather than COMMITMENT as the driving force of the program Departmental barriers, walls or concrete silos that are tough to break A non-systematic approach to TQM implementation taking it willy nilly instead of following some plan. Senior managers who cannot or will not drive the transformational process. Having an organizational culture that does not collectively learn and follow the process needed.

W. Edwards Deming
His philosophy treats individuals as fellow members of a system. His system leads to a GOOD chain reaction, involving. Improve quality decrease costs productivity improves capture the market with better quality/price stay in business provide employment

W. Edwards Deming
Some of Deming's economic beliefs gained from his philosophies and applications:
Reduction of the economic burden Expansion of the markets Survival of organizations that serve customers

THE DEMING METHOD = MANAGEMENT METHOD

The Quality Method, defined by Dr. Deming, is a MANAGEMENT method. It requires change in our managers. It is NOT a method that is built upon inciting or demanding quality from workers as we incited and demanded QUANTITY of production. Putting up posters that tell workers to produce quality, or creating clever slogans that exhort workers to produce quality is not part of a Deming Quality process and only illustrate how little we have learned about the Method. QUANTITY QUALITY

Deming - Quality is the job of management.

It is a management process. It assumes that the worker is a craftsman and that he will produce quality, if he/she is only given a chance (and the proper resources). The Deming method further assumes that well trained workers will produce quality products, if managers do their jobs correctly and provide the proper resources, organizational structure, and environment.

W. Edwards Deming
Dr. Deming was very confident about how to motivate employees simply allow them to build quality products (or perform top quality services, in todays economy). Dr.

W. Edwards Deming
Deming was also very confident about how NOT to motivate employees.eliminate:
Quota systems Annual performance reviews Any form of pay for performance systems

These are a waste of the companys money and a managers time money and time that would be much better spent on solving production or process problems, that will allow the workers to produce better quality.

Demings Quality Approach

UNDERLYING PRINCIPLES Variation Theory of Knowledge Theory of a System Psychology

Deming Theory of Variation

This is his basis for SPC and treatment of people Two causes of variation common and special causes Two costly errors
Treating common causes as special Treating special causes as common

Deming Theory of Knowledge

How do we know things?
Statistics needed and properly used for MEASUREABLES (characteristics, things, service quality) Having Theories and Predictions are crucial to understanding the knowledge The things that are most important ARE NOT MEASUREABLE How do you measure.
An employees happiness The true cost of poor quality Lack of customer goodwill Lack of supplier goodwill Poor communication in the organization

Deming Theory of Systems

This applies to a COMPLETE system - suppliers to customersYOU or YOUR ORGANIZATION Suppliers You/Your Organization Customers Common Causes of Variation are built into the system naturally Management maintains SOLE responsibility for the system. Leadership is Required. The system will only be as good as it is led to be. Special causes are outside the system, and are everyones responsibility. Internal competition is destructive.

Deming Quality Phsychology

Employees CANNOT be evaluated apart from the system. Employees ARE the system they will only be a good as the system (and leadership) allows. Money is NOT a motivator. Money only works a short-term stopgap. Give me more money and I will like better what I do NOT! All money as a short-term solution does is give me a fatter paycheck with which to enjoy my misery! EVERYONE in the organization is responsible for improvement. Overall improvement cannot be handled by one person or one department everyone is important. People are most productive in cooperative teams. We are all experts and idiots just in different things. All of us are smarter than one of us.

System of Profound Knowledege

Dr. Deming based his business philosophy on cooperation - to determine its own potential, an organization must harness the power of every worker in its employment. In order to promote cooperation, Deming discusses his System of Profound Knowledge. Profound knowledge involves expanded views and an understanding of the individual yet truly interdependent element that compose the larger system every worker have nearly unlimited potential if placed in an environment that supports, educates, and nurtures senses of pride and responsibility.

Deming tells us
the majority of a workers effectiveness is determined by the workers environment, and only minimally by his own attitudes, work ethics, behaviors.

To effectively implement a System of Profound Knowledge:

Management must -Employ an understanding of psychology of groups and of individuals Eliminate tools such as production quotas and slogans these only alienate workers and supervisors no gap bridging here and breeds intense competition between the workers themselves I can do better than you. Form the company correctly Make the organization into a large team divided into sub-teams all working on different levels of the same goal barriers between departments often give rise to conflicting objectives and unnecessary competition. Share the wealth spread the profits among the teams Eliminate fear, anger, envy, and revenge from the workplace. Employ sensible methods such as rigorous on-the-jobtraining programs.

Implemented Profound Knowledge

In this effectively implemented system organization, the workers better understand their jobs the specific task, the technological relationships, they value themselves higher thus they are stimulated and empowered and show overall better performance.

Deming tells us
Upwards of 94% of all problems in organization and their solutions stem from the SYSTEM and the PEOPLE. Concentrate on understanding the system and how you might adjust to make the organization operate more productively and positively.

Demings Old Fashioned Ideas

The ideas of Dr. Deming may seem common or obvious now, but have not always been practiced in our culture of work. Dr. Demings ideas and personal examples of hard work, sincerity, and personal responsibility have forever changed the world of management. It is not enough to just work hard. You must know what to work on. If you are not having fun, then you are doing something wrong.

4 Pillars of Profound Knowledge

Appreciation for a system: Organizations are interactive systems, and must be managed as systems. Managements role is to strive toward organization of the enterprise as a whole. Theory of variation: Variation is always present. The key is not in measuring it, but in understanding what is causing it; not to judge or blame individuals, but to improve the system. Theory of knowledge: Managements job is prediction. Prediction is based on knowledge. Knowledge is built on theory. Experience without theory teaches nothing. Some Psychology: Knowledge of individual and group psychology is needed to nurture and preserve innate desires of people to learn, to create, to contribute, and to take pride in work.

Demings 14 Points
1.
2. 3. 4. 5.

6. 7.

Create constancy of purpose for improvement of products and service Adopt a new philosophy; we are in a new economic age Cease dependence upon inspection as a way to achieve quality End the practice of awarding business based on price tag Constantly improve planning, production and service process, INCLUDING PEOPLE! Institute training on the job Institute improved leadership

Demings 14 Points
8. Drive out fear 9. Break down departmental barriers 10. Eliminate slogans/targets asking for increased productivity without providing methods 11. Eliminate numerical quotas 12. Remove barriers that stand in the way of workers and their pride of workmanship - both hourly and salaried. 13. Institute programs for education and re-training 14. Put all the emphasis to work to accomplish the transformation

Create constancy of purpose for improvement of products and service

Management is charged with re-defining continual improvement, in a way that best fits the organizations goals and purposes. The organization has to strive to survive, compete globally and constantly replenish its resources for growth and improvement. How? Through improvement and research.

Adopt a new philosophy; we are in a new economic age

Consider what is best for the organization as a whole. We can no longer assume that our customers will be loyal to us because they like us. If the organization cannot be profitable, in dollars, quality, and proper treatment of people then whats the point?

Cease dependence upon inspection as a way to achieve quality

Quality cannot be inspected into a product or process. Erase the philosophy of the inspector (or QC department) will catch any problems before the product is shipped. Lets keep going. Instead, adopt the philosophy of develop a system with sound processes that can make quality products. Do it right the first time, and the system will improve itself.

End the practice of awarding business based on price tag

Does your organization award business to suppliers and other vendors, solely on the price tag? Point four specifically warns against this! Why? By awarding business strictly on price, the organization often (but not always) gets lower quality. If, however, an organization established loyalty agreements or good working relationships with suppliers/vendor, perhaps even long term contracts, higher quality is obtained, as often is better pricing.

Constantly improve planning, production and service process, INCLUDING PEOPLE!

Dr. Deming states here that only a commitment to a PROCESS of continual improvement will not alone bring results. We cannot ignite and spread a quality revolution that will lead to constant continual improvement by just having a process and commitment. Instead, we need an evolutionary philosophy that prevents stagnation of the company. Part of the evolutionary mentality is to abandon practices that are obviously only short-term benefits, as these ultimately detract from overall organizational effectiveness.

Institute on-the-job Training

NEVER assume that the newly hired person, or transferred individual from another division, will know everything they need to do. Even the most experienced, talented, and qualified worker needs to adapt and learn the systems and processes of a new organization/new department.

Institute Improved Leadership

Just having a leader, supervisor, or manager title does not make you a good leader or even a leader at all. Very few managers have been formally trained to manage, or to be a leader. Many leaders are not even familiar with Deming principles at all. Management is not self-evident it requires skill, ability, practice, and training. Unless managers are trained to manage and to be leaders in the Deming world, we will continue to hurt ourselves with gross miscalculations like re-engineering and downsizing.

Drive out Fear

Many employees are afraid to ask questions, or to take a position, even when they do not understand what the job is or what is right or wrong. People will continue to do things the wrong way, or not to do them at all. The economic loss from fear is appalling. It is necessary to better quality and productivity that people feel secure, Dr Deming once wrote. He wrote this long before the age of re-engineering and downsizing two key reasons why fear exists in the work place. Bert Petersen, human resources consultant specializing in employee relations implication of the Deming Quality Principles, is of the opinion that FEAR is likely the largest source of waste in the American enterprise.

Break Down Departmental Barriers

All employees and departments are part of the organization, but it is often an us versus them scenario. The organization as a whole needs to understand that each individual and entity are part of the whole picture. Management is responsible for making this happen. Only management can help workers understand this. How? By example showing how all departments/divisions work as one entity; dont pit the groups against each other.

Eliminate slogans/targets asking for increased productivity without providing methods

Dont rely on posters displayed throughout the organization as the only vehicle for increased productivity/quality. We do not need elementary school level posters to encourage employees to do good work. In some organizational cultures, use of these posters is actually embarrassing to management and employees. Let the employees work with managers to develop their own slogans or targets this is the core group that does the work.

Eliminate Numerical Quotas

Quotas take into account only numbers, not quality or method. They are usually a guarantee of inefficiency and high cost. A person to hold a job, meets a quota at an cost, without regard to damage to the company, Dr. Deming wrote. Workers make quotas at the expense of quality. Managers accept lack of quality, because it is the price of the quota system. Quotas make a quality system impossible to implement.

Remove barriers that stand in the way of workers and their pride of workmanship - both hourly and salaried.
People, in general, are eager to do a good job. The truly good and caring workers get distressed when cannot perform their functions to the best of their ability. Too often, misguided supervisors, faulty or nonexistent equipment, and defective materials stand in the way.

Institute programs for education and re-training

The results of this training must drive home a philosophy throughout the organization that production problems are PROCESS problems, not PEOPLE problems. Think about a situation you were in what fixed the problems more quickly? Your boss screaming at you to make it happen, or management (or you) studying the process to find the deficiencies?

Put all the emphasis to work to accomplish the transformation

Everyone in the organization needs to work together to accomplish the goal/mission/vision as well as the Total Quality Management movement.

Plan-Do-Check-Act
Plan Act Do Check

Plan-Do-Check-Act

Decide what you want to do write a plan Carry out the tasks at hand on your plan Do the plan and the action taken match? Check your work! Take action on the differences, improvements, and modifications.

7 Deadly Diseases
1.
2. 3. 4. 5. 6. 7.

Lack of constancy of purpose to plan a marketable product to keep the company in business and provide jobs. Emphasis on short term profits Personal evaluation appraisal, by whatever name, for people in management, for effects, which are devastating. Mobility of management; job hopping. Use of visible figures for management, with little or no consideration of figures that are unknown Excessive medical costs Excessive warranty costs, fueled by lawyers working on contingency fees.

Lack of constancy of purpose to plan a marketable product to keep the company in business and provide jobs.
Changing plans/missions/visions/focus frequently without a solid business reason only confuses employees, customers, and suppliers. Can the product be marketed/sold, i.e., will people want it? Is the product offered at a fair price? Does the product need modified/reinvented, to please the market? Can the company remain in business AND be profitable, with the current products/product plan/systems in place?

Emphasis on short term profits

Short-term profits only get the organization through the immediate time period (usually less than 1 year). Focusing on longer-term profit allows for expansion, growth, and continual business.

Personal evaluation appraisal, by whatever name, for people in management, for effects, which are devastating.
Dr Deming called performance appraisals worse than a waste of time. Deming recommends this alternative: MANAGE ON A DAILY BASIS
Talk to employees about strengths and weaknesses every day, instead of once a year. Plan and discuss training needs as part of the daily routine Make it a point to ask questions then cover your mouth and open your ears

Personal evaluation.
Pose challenges and problems to those under your management, and let THEM come up with responses. Prepare to be amazed at the input you receive. See who has mistakes (regularly) and find out why. Is training the answer? Do they need the proper tools? Do they need encouragement or a pat on the back? See who is habitually late or absent this can be a warning that there may be a work problem. Perhaps you can determine what the problem is and help the employee solve it. Managers get more response when the HELP rather than HINDER.

Personal evaluation.
Management is not a zero sum game. Dr. Deming says that less than 5% of employees are just not right for the job. The 95% need some assistance or guidance. Dr. Deming also says that any failure of an employee is a failure for the manager view it that way, and dont let the performance appraisal process influence your decisionspay for performance does nothing.

Mobility of Job Hopping Managers

Management styles change each time management personnel change- thus losing stability in the organizations operations, theories, principles, and processes in place. When upper management personnel leave (voluntarily), workers start to worry that the worst is yet to come.

Use of visible figures for management, with little or no consideration of figures that are unknown
The tangible costs of doing business (labor, materials, equipment) are just as important as the intangible costs (customer goodwill, employee loyalty, supplier relationships). Focusing only on the numbers the visible measurements is not the answer. Accounting and statistics alone do not make the organization a success.

Excessive Medical Costs

Has the employees medical costs increased dramatically (not due to inflation or increased premium costs BUT due instead to more health care usage)? What are the reasons the health care usage increased? Age? Prevention care? Many organizations have such a high stress level that the employees health is affected. Could this be the reason for the increased costs?

Excessive warranty costs, fueled by lawyers working on contingency fees.

Examine why warranty costs are high (or higher than normal). Is product quality to blame? Are these true complaints e.g., there really is a traceable problem to the product or processes? Or, are your customers just not happy overall? If the problem is product quality related, are there safety/health/environmental issues associated with it? Are lawyers driving the process is the legal profession advertising that your product/service could cause the user detriment/harm?