Prof G R C Nair

Philosophy of TQM

Prof G R C Nair

Prof G R C Nair

History of Quality Management

• Frederick W. Taylor wrote “Principles of Scientific Management” in 1911.

• Walter A. Shewhart used statistics in quality control and inspection, and showed that productivity improves when variation is reduced (1924)

• He wrote “Economic Control of Manufactured Product” in 1931.

In the late ‘70’s and early ‘80’s:

W. Edwards Deming and Joseph M. Juran, students of Shewhart, went to Japan and began transformation from “shoddy” to “world class” goods.

Deming wrote “Out of the Crisis”, and began his famous 4-day seminars on quality in the United States

Philp Crosby wrote “Quality is Free” and “Quality without Tears”

NBC ran “If Japan can do it, why can’t we?”

Motorola began 6 Sigma

Prof G R C Nair

W. Edwards Deming• Father of the quality revolution• 1970s energy crisis• Common cause versus special variation• 14 points• System of profound knowledge

– Appreciation for a system– Knowledge about variation– Theory of knowledge– Knowledge of psychology

Prof G R C Nair

Deming’s Paradigms

1. Intrinsic & extrinsic motivation2. Management needs to improve and

innovate processes to create results3. Optimize the system toward its aim4. Cooperation is better than competition

Prof G R C Nair

1. Create constancy of purpose for improvement 2. Adopt a new philosophy 3. Cease dependence on mass

inspection 4. Do not award business on price

alone 5. Work continually on the system of

production and service 6. Institute modern methods of

training

Deming’s 14 Points

7. Institute modern methods of supervision of workers 8. Drive out fear 9. Break down barriers between departments10. Eliminate slogans, exhortations, and

targets for the work force11. Eliminate numerical quotas12. Remove barriers preventing pride of workmanship13. Institute a vigorous program of education

and retraining14. Take action to accomplish the

transformation

Prof G R C Nair

Deming Wheel: PDCA Cycle

1. PlanIdentify problem and develop plan for improvement.

2. Do Implement plan on a test basis.

3. CheckAssess plan; is it working?

4. ActInstitutionalize improvement; continue cycle.

Prof G R C Nair

“On the assembly line at the Ford Company in 1923, the workers were illiterate- were unable to plan, problem-solve, and make decisions. Hence MBAs and Industrial Engineers were needed to do this work.

Today the workforce is educated.

Workers know what is needed to improve their jobs. Companies that do not tap into this significant source of knowledge will be at a competitive disadvantage.”

Dr Joseph M.Juran’s Philosophy

Prof G R C Nair

Quality is an attitude:- Zero Defects- Doing right the first time- Continuous Improvement

Quality is a measurement:- Price of Conformance, plus- Price of Non conformance

(defects)

Phil Crosby’s Philosophy

Quality is Free - Costs of poor quality far outweigh

the cost of preventing poor quality

Dr Genichi TaguchiReduce Variation Improve engineering approaches to product Design

Address Quality problems in Design Stage itself

Prof G R C Nair

A Quality Management System Is…

• A belief in the employee’s ability to solve problems

• A belief that people doing the work are best able to improve it

• A belief that everyone is responsible for quality

Prof G R C Nair

Costs of Quality

External Failure Costs

Appraisal Costs

Prevention Costs

Internal FailureCosts

Costs ofQuality

Prof G R C Nair

Costs Of Quality • Scrap and rework with in the company • Defective products in the hands of customer • Detecting defects : Cost of

inspection ,testing and other quality control activities

• Preventing defects : Cost of training , charting of quality performance to study trends, revising product designs , making changes to design/material/production processes.

Other Awards for Quality• USA national

individual awards– Armand V.

Feigenbaum Medal– E. Jack Lancaster

Medal– Edwards Medal– Shewart Medal– Ishikawa Medal

• International awards– European Quality

Award– Canadian Quality

Award– Australian

Business Excellence Award

• Thailand National Awards

Prof G R C Nair

Point Values