management of building production (uemc2433) topic 8: the wisdom of quality gurus mr. chia fah choy...

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Topic 8: Topic 8: The Wisdom of Quality GurusThe Wisdom of Quality Gurus

Mr. Chia Fah Choy B. App. Sc. (Hons), M. [email protected]

http://www.utar.edu.my/TheEmblem.htm

Copyright © 2006 by Chia Fah Choy, Faculty of Engineering & Science, UTAR. All rights reserved.

Who are the Quality Guru?

• W. Edwards Deming

• Joseph M. Juran

• Philip B. Crosby

• Armand V. Feigenbaum

• Kaoru Ishikawa

• Genichi Taguchi


Guru

• A respected and influential teacher or authority (Oxford Dictionary)


Quality Guru

• A charismatic individual whose concept and approach to quality within business and life, has made a major and lasting impact


Who’s Who?

a

b

cDeming ____

Juran ____

Crosby ____


The Americans who brought the messages of quality to Japan and the world

• W. Edwards Deming– Deming cycle– the 14 points of management – The system of profound knowledge

www.deming.org



• Philip Crosby– Four absolutes of quality– 14 steps of quality improvement

www.philipcrosby.com



• Joseph M. Juran– Quality trilogy

• Quality planning• Quality control• Quality improvement


W. Edwards Deming

• 1900-1993

• Believes quality is 85% the responsibility of management and 15% the responsibility of employee

www.deming.org


A System of Profound Knowledge

• Appreciation for a system

• Understanding variation

• Theory of knowledge

• Psychology



“Profound knowledge come from outside the system.” (p. 92)

“A system cannot understand itself.” (p.101)

“The various segments of the system pf profound knowledge cannot be separated. They interact with each other…”(p. 93)



• “Knowledge of psychology is incomplete without knowledge of variation.” (p. 93)

• “A manager of people needs to understand that all people are different. This is not ranking people. He needs to understand that the performance of anyone is governed largely by the system that the works in, the responsibility of management.” (p. 94)



• “The theory of knowledge helps us to understand that management in any form is prediction.” (p. 101)

• “Rational prediction requires theory and builds knowledge through systematic revision and extension of theory based on comparison of prediction with observation.” (p. 102)


A System of Profound KnowledgeThe barnyard rooster Chanticleer

had a theory. He crowed every morning, putting forth all his energy, flapped his wings. The sun came up. The connexion was clear: His crowing caused the sun to come up. There was no question about his importance. There came a snag. He forgot one morning to crow. The sun came up anyhow. Crestfallen, he saw his theory in need of revision…



• “…it is extension of application that discloses inadequacy of a theory, and need for revision, or even new theory. Again without theory, there is nothing to revise. Without theory, experience has no meaning. Without theory, one has no question to ask. Hence without theory, there is no learning.” (p. 103)



• “Theory is a window into the world…” (p. 103)


Appreciation for the Systems

• When every part of a system is working in support of another part, ‘optimization' occurs

• How?– Elimination of

• Internal competition• Numerical ratings• rankings


Deming’s View of a Production System

Suppliers ofmaterials and equipment

Receipt and test of materials

Design and Redesign

Consumer research

ABCD

Production, assembly inspection

Tests of processes, machines, methods

Distribution

Consumers

INPUTS PROCESSES OUTPUTS


Deming Chain ReactionImprove quality

Costs decrease

Productivity improves

Increase market share with better quality and lower prices

Stay in business

Provide jobs and more jobs


“I am filling a glass of water.”


A cloud masses, the sky darkens, leaves twist upward, and we know that it will rain.We also know that after the storm, the runoff will feed into groundwater miles away, and the sky will glow clear tomorrow


All these events are distant in time and space, and yet they are all connected within the same pattern. Each has an influence on the rest, an influence that is usually hidden from views. You can only understand the system of a rainstorm by contemplating the whole, not any individual parts of the pattern.

Business and other human endeavors are also system…

Senge M. P. (1990) The Fifth Discipline, Currency Doubleday, NY


System Thinking…

• is a discipline for seeing…– whole– interrelationships rather than linear cause-

effect chains – processes of changes rather than snapshots

• dynamic complexity v detail complexity

System thinking simplifies life by helping us see the System thinking simplifies life by helping us see the deeper patterns lying behind the events and the details deeper patterns lying behind the events and the details


Theory of Variation

• Errors and inconsistencies will always exist• People apply the ‘wrong’ corrective action when

something goes wrong• Recommends

– Applying Shewhart/Deming cycle to analyze a problem

– Use Shewhart’s control chart to tack activity


Averages vs Variation

Days early(-6)

Customer Expectations: 8 day order delivery cycleCustomer Expectations: 8 day order delivery cycle

Internal LookInternal Look Customer LookCustomer Look

Existing ProcessesExisting ProcessesDelivery CyclesDelivery Cycles

(days)(days)2020151530301010 551616

Average cycleAverage cycle

After ConventionalAfter ConventionalImprovementsImprovements

(days)(days)1717 22 551212 44 88

Average cycleAverage cycle

15 Days Span

Days late(+9)

8Customer want date

2 17Internal Celebration Internal Celebration 50% improvement50% improvement

Customer feels Customer feels nothingnothing


Customer Expectations: 8 day order delivery cycleCustomer Expectations: 8 day order delivery cycle

6 Sigma Internal 6 Sigma Internal ProcessProcess(days)(days)

779999887788

Internal looks sameInternal looks same

2 Days Span

Days lateDays late

(+1)(+1)

Customer feels Customer feels Six SigmaSix Sigma

8Customer want date

2 177 9

Days earlyDays early

(-1)(-1)

Averages vs Variation


A statistician once illustrated the point: ‘if I have one foot in bucket of ice and the other foot in a bucket of boiling water, on average, I’m OK!’

Is s/he ?


PlanPlan

DoDo

StudyStudy

ActAct

DemingDemingWheelWheel


The Deming Wheel (or PDSA Cycle)

1. PlanIdentify the problem and develop the plan for improvement.

2. DoImplement the plan on a test basis.

3. Study/CheckAssess the plan; is it working?

4. ActInstitutionalize improvement; continue the cycle.


Theory of Knowledge

• Knowledge comes from theory• Without theory there is no learning• An organization cannot ‘copy’ another

company’s success in total quality improvement or formulate a ‘total quality plan’; it is a process that each company must develop on its own


Psychology

• People are motivated intrinsically and extrinsically

• Fear is demotivating • Managers should develop pride and joy in

work• Train the people to measure ‘thing’ will keep

them pushing their own standards higher to ‘beat’ themselves


Deming’s 14 Points

1. Create constancy of purpose for improvement of product and service

2. Adopt the new philosophy3. Stop depending on mass inspection4. End the practice of awarding business on the

price tag alone5. Constantly improve the system of production

and service6. Institute training7. Institute leadership


Deming’s 14 Points

8. Drive up fear9. Breakdown barriers between staff areas10.Eliminate slogans, exhortations and targets for

the workforce11.Eliminate numerical quotas12.Remove barriers to pride workmanship13. Institute a vigorous program of training and

retaining14.Take action to accomplish the transformation


Beads Experiment

Six person take part in a simple experiment. Each person will stir a mixture of red and white beads (4000), 20% red, draw blindfolded his sample of 50 beads, then return to the mixture for the next person. The aim is to produce white beads: our customer will not accept red beads.


Beads Experiment

Statistical Theory

Avg. no. of red beads/worker = 51/6 = 8.5

Average proportion red

= 51/(6 x 50) = 0.17

Limits of variation attribute to the system =

= 16 and 1

Actual results follow:

Mike 9

Peter 5

Terry 15

Jack 4

Louise 10

Gary 8

TOTAL 51

pxx 13


Deming’s Seven Deadly Diseases

1. Lack of constancy of purpose2. Emphasis on short-term profits3. Evaluation of performance by merit rating or

annual review performance4. Mobility of management5. Running a company on visible figures alone6. Excessive medical costs for employee health

care that increase the final costs of goods and services

7. Excessive costs of warranty, fueled by lawyers who work on the basis of contingency fees


Deming’s Obstacles

• ‘we want overnight success’• ‘investing in new technology will transform our

industry’• ‘give us a road map’• ‘our problems are different’• ‘our quality control department takes care of all

our problems of quality’• ‘we installed quality control’• ‘it is necessary only to meet specifications’


Quality is free . . . “Quality is free. It’s not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.”

Phillip B. Crosby

www.philipcrosby.com


“The problem on quality management is not what people don’t know about it. The problem is what they think they do know.”

Phillip B. Crosby


“Corrective action: It isn’t what you find, it’s what you do about what you find.”

Phillip B. Crosby


Four Absolutes of Quality Management

• The definition of quality is conformance to requirements

• The system for causing quality is prevention

• The performance standard for quality is Zero

• The measurement of quality is the price of nonconformance


Acceptable Quality Level: 99.9%

• 18 airplanes crash daily• 17,600 mail mix-ups hourly• 3,700 bad drugs dispensed daily• 10 dropped babies daily• $24.8 million mischarged hourly in banks• 500 bad surgeries weekly


Crosby’s 14 points

1. Management commitment

2. Quality improvement team

3. Measurement

4. Cost of quality

5. Quality awareness

6. Corrective action

7. Zero defects planning


Crosby’s 14 points

8. Employee education

9. Zero defects day

10.Goal setting

11.Error cause removal

12.Recognition

13.Quality councils

14.Do it all over again


Juran

• Defines quality as ‘fitness for use’.• His approaches focus on:

– to attack sporadic problems– to attack chronic problems– annual quality programme

• Major kinds of quality management:– breakthrough: occurrence of good things – attack

chronic problems– control: preventing occurrence of bad things – attack

sporadic problems

www.juran.com


Improvement Process

Symptom Cause Remedy

Diagnosis Improvement


Juran’s Quality Trilogy

• Quality planning

• Quality control

• Quality improvement


Quality Planning

• Establish quality goals• Identify customers• Determine customers’ needs• Develop services corresponding to

customers’ needs• Develop processes which can create

those services• Establish process controls


Quality Control

• Evaluate actual quality performance

• Compare performance to quality goals

• Act on the difference


Quality Improvement

• Establish infrastructure needed to secure annual quality improvement

• Identify improvement projects

• Establish teams to effect improvement projects

• Provide resources, motivation and training to teams


Juran’s 10 Steps to Quality Improvement

1. Build awareness for the need and opportunity for improvement

2. Set goals for improvement3. Organize people to reach the goals4. Provide training throughout the

organization5. Carry out projects to solve problems


Juran’s 10 Steps to Quality Improvement

6. Report progress7. Give recognition8. Communicate results9. Keep score10.Maintain momentum by making annual

improvement part of the regular systems and processes of the company


A.V. Feigenbaum

• Three Steps to Quality– Quality Leadership, with a strong focus on

planning– Modern Quality Technology, involving the

entire work force– Organizational Commitment, supported by

continuous training and motivation


Kaoru Ishikawa

• Instrumental in developing Japanese quality strategy

• Influenced participative approaches involving all workers

• Advocated the use of simple visual tools and statistical techniques


Genichi Taguchi

• Pioneered a new perspective on quality based on the economic value of being on target and reducing variation and dispelling the traditional view of conformance to specifications:

No Loss LossLoss

Tolerance

0.500 0.5200.480

management of building production (uemc2433) topic 8: the wisdom of quality gurus mr. chia fah choy...

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