1

Chapter 2: Quality Management Gurus

2

DR. WILLIAM EDWARDS DEMING

Biodata:

• 1900 – 1993

• Graduated from University of Wyoming, University of Colorado (Master in Maths & Physics), University of Yale (PhD in Mathematical Physics)

3

Philosophies: • “a predictable degree of uniformity & dependability at low cost & suited to the market”

• The product/service should “Delight the customer”

Ideas:He realized that teaching statistics only to engineers and factory workers would never solve the fundamental quality problems that manufacturing needed to address

4

The Deming Chain ReactionImprove quality

Capture the market with better quality and lower price

Costs decrease because of less rework, fewer mistakes, fewer

delays and snags, and better use of time and materials

Productivity improves

Stay in business

Provides jobs and more jobs

Deming’s Fourteen Points Summary1) Constancy of Purpose Define its values. Mission, and vision of the future to provide long-

term direction for its management and employees.

2) The New Philosophy Companies must take a customer-driven approach based on mutual

cooperation between labor and management and a never-ending cycle of improvement.

3) Cease Dependence on Mass Inspection Encourage workers to take responsibility for their work, rather than

leave the problems for someone else down the production line

5

6

4) End Lowest-Tender Contracts Constantly changing suppliers solely on the basis of price

increases the variation in the material supplied to production

5) Improve Every Process Improved designs of goods & services comes from

understanding customer needs and continual market surveys and other sources of feedback

6) Institute Training on the Job Not only does training result in improvements in quality

and productivity, but it adds to worker morale, and demonstrates to workers that the company is dedicated to helping them and investing in their future

7

7) Institute Leadership Providing guidance to help employees do their jobs better Help eliminate the element of fear from the job and encourage

teamwork

8) Drive Out Fear Fear is manifested in many ways: Fear of failure, fear of

unknown, fear of change, etc.

9) Break Down Barriers Internal competition for raises and performance ratings

contributes to building barriers

10) Eliminate Exhortations Exhortations do little to improve quality because they are not

supported by the “how” to achieve the goal

8

11) Eliminate Arbitrary Numerical Targets Standards and quotas are born of short-term perspectives and create

fear

12) Permit Pride of Workmanship There are many factors that deprive individuals : No understanding of

the goal of the organization, pressure to meet arbitrary target, unfair PA, etc

13) Encourage Education and Self-Improvement Organizations must invest in their people at all levels to ensure

success in the long-term

14) Top Management Commitment and Action Management needs to define what is meant by commitment and how

it can be actioned

9

A system of profound knowledge

1) Appreciation for a system & a theory of optimization.• A system is a set of functions or activities within an organization

that work together for the aim of the organization • Components must work together • Management must optimize the system • Every system must have a purpose

2) Knowledge of the theory of variation• Variation exists in any production and services process, generally

due to factors inherent in the design of the system, which cannot easily be controlled

• Modern technology has improved our ability to produce many physical parts with the very little variation

• Can be improved through techno, process design and training

10

3) Theory of Knowledge

• Knowledge is not possible without theory

• Experience alone does not establish a theory, it only describes

• Theory shows a cause and effect of relationship that can be used for prediction

4) Theory of Psychology

• Sincere, trust and belief in people

• Understanding of how people work in systems

• People are motivated intrinsically and extrinsically

• Fear is de-motivating

• Managers should develop pride and joy in work

The Deadly Diseases

• Lack of constancy of purpose• Emphasis on short term profits• Evaluation of performance• Mobility of management• Use of visible figures only

11

12

DR. JOSEPH JURAN

Biodata:

• Borned in Romania (1904)

•Corporate industrial engineer

•Published ‘Quality Control Handbook’

13

Philosophy:• “Fitness for use”.

Ideas:• He sought to improve quality by working

within the system familiar to managers• To fit into a company’s current strategic

business planning with minimal risk of rejection

14

Juran Triology

• Quality Planning:– Determine who the customers are.– Determine the needs of the customers.– Develop product features that respond to

customer’s needs.– Develop processes that are able to produce those

product features.

15

• Quality Control:– Evaluate actual Quality Performance.– Compare actual performance to quality goals.– Act on differences

• Quality Improvement:– Establish the infrastructure needed to secure annual

quality improvement.– Optimize the process in all possible ways.– Identify specific needs for improvement – the

improvement projects.– Provide the resources, motivation, and training to teams.

16

PHILIP CROSBY

Biodata:

(1926 – 2001)

A Corporate VP of International Telephone and Telegraph (ITT) for 14 years

1st book: ‘Quality is Free’

17

Philosophy:• “Quality is free, but it is not a gift”

Idea:• Doing the job right the first time is always cheaper.

Quality is free.• What costs money are all actions that involve not

doing jobs right the first time. • Companies has to incur failure costs (internal and

external) of poor quality products are produced

18

Crosby’s Absolutes of Quality Management

• Quality means conformance to requirements, not elegance

• There is no such things as a quality problem

• Doing the job right the first time is always cheaper

• The only performance measurement is the cost of quality, which is the expense of non-conformance

• The only performance standard is “Zero Defects (ZD)”

19

The Crosby’s Quality Vaccine

• Determination – top management must take quality improvement seriously.

• Education – everyone should understand the absolutes that can be accomplished through education.

• Implementation – every member of the management team must understand the implementation process.

The 14 Steps of Crosby’s Quality Improvement

20

1. Make it clear that management is committed to quality for the long term.

2. Form cross-departmental quality teams

3. Identify where current and potential problems exist

4. Assess the cost of quality and explain how it is used as a mgt tool.

5. Increase the quality awareness and personal commitment of all employees

6. Take immediate action to correct problems identified

7. Establish a zero defects program

21

8. Train supervisors to carry out their responsibilities in the quality program

9. Hold a Zero Defects Day to ensure all employees are aware there is a new direction

10. Encourage individuals and teams to establish both personal and team improvement goals

11. Encourage employees to tell management about obstacles they face in trying to meet quality goals

12. Recognize employees who participate

13. Implement quality councils to promote continual communication

14. Repeat everything to illustrate that quality improvement is a never-ending process

22

Zero Defect Concept

• Crosby consider zero defect as a performance standard.

• The theme of zero defect is to do it right the first time and preventing defects rather than just finding or fixing.

23

KAORU ISHIKAWA

Biodata:

Death in 1989

A professor of engineering at Tokyo University

1st book: ‘Quality is Free’

24

Ideas:• Contributed the term “Seven Tools of Quality”

- Histograms

- Cause and effect diagrams

- Check sheets

- Pareto diagrams

- Control chart

- Graphs

- Scatter diagrams

*although he did not developed those tools but he put them into a wide used.

25

Philosophy

1) Quality begins with education and ends with education

2) The first step in quality is to know the requirements of customers

3) The ideal state of quality control occurs when inspection is no longer necessary

4) Remove the root cause, not the symptoms

5) Quality control is the responsibility of all workers and all divisions

6) Do not confuse the means with the objectives

7) Put quality first and set your sights on long-term profits

26

8) Marketing is the entrance and exit of quality

9) Top management must not show anger when facts are presented by subordinates

10) 95% of problems in a company can be solved with simple tools for analysis and problem-solving

11) Data without dispersion information (i.e. variability) are false data

Comparison between Quality Gurus

27

28

29

30

Similarities of The Quality Gurus’ Approaches

• Requires strong top management commitment.• Shows that quality management practices will

save and not cost money.• Emphasizes that quality improvement is a never

ending process.• Demand that training and education be

provided.• Emphasizes everybody should get involved in

the quality improvement activities.

31

Past Sem. QuestionsJAN 2013

JUNE 2013

32

April 2011