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The Deming Philosophy

1. Create constancy of purpose

Towards improvement of P&S

To become competitive and to stay inbusiness

Replace short-term reaction with long-termplanning

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2. Adopt the new philosophy

Management should actually adopt this

philosophy, rather than merely expecting theworkforce to do so

Customer satisfaction needs priority

Focus on defect prevention than defect detection

Involve everyone in this quality journey

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3."Cease dependence on inspection" If variation is reduced, no need to inspect

manufactured items for defects, because

there won't be any Mass inspection is costly and unreliable

Mass inspection is managing for failures

and defect prevention is managing forsuccess

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4.Stop awarding business based on pricealone

Based on the low bid related with Q

Goal is to move towards a single supplier forany one item

Ensures a long-term relationship of loyalty and

trust

Multiple suppliers mean variation between

feed stocks

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The Deming Philosophy

5."Improve constantly and forever"

Necessary in both design and operations

Management must take more responsibilitycontinually and permanently

Constantly strive to reduce variation

Focus is to prevent problems before they occur

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6."Institute training on the job

If people are inadequately trained, they

will not all work the same way, and this willintroduce variation

Management must allocate resources to

train employees Train in statistical methods, and monitor to

know further needs

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7."Institute leadership"

Deming makes a distinction betweenleadership and mere supervision

Then whats the job of mgt?

Should not focus on negative, fault-findingatmosphere

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8."Drive out fear

Management by fear as counter-

productive in the long term - preventsworkers from acting in the organization's

best interests

Forms?

Treat people with dignity

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9."Break down barriers between departments

Teamwork helps to break down barrier betweenindividuals and department

Internal customer', that each department servesnot the management, but the other departmentsthat use its outputs

Management must optimize the efforts

Change attitudeOpen communication channels

Organize project team

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10."Eliminate exhortations/slogans"

Another central TQM idea is that it's

not people who make most mistakes -it's the process they are workingwithin

Right techniques pointed towardswrong people may frustrate

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Harassing the workforce withoutimproving the processes they use iscounter-productive

Trust, Leadership, Statistical thinking andtraining, not slogans are the best routesto motivate for improving quality

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11."Eliminate numerical quotas andManagement by Objectives

Production targets are encouraging

the delivery of poor-quality goods

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12."Remove barriers to pride of workmanship"Barriers are

Viewing workers as commodity

Performance appraisal destroys team work by

promoting competition for limited resources

Number driven objectives

Poor system

Inadequate training

The aforesaid factors reduce worker satisfaction

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13."Institute education and self-improvement"

14."The transformation is everyone'sjob"

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Benchmarking

We cannot become what wewant to be by remaining what

we are

A shift from the original status isneeded

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Benchmarking

A process of comparison of two ormore products, services, processes

or organizational practices

Dictionary meaning: standard or a

point of reference

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Benchmarking

A systematic method by whichorganizations search for industry best

practices that facilitate comparison

and lead to superior performance Process of borrowing ideas and

adapting them to gain competitive

advantage

Tool for continuous improvement

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Benchmarking

Measuring your performance againstthat of best-in-class companies,

determining how the best-in-class

achieve those performance levels,and using the information as a basis

for your own companys target,

strategies, and superior performance

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It is the process of

- Identifying

- Understanding and

- Adopting outstanding practices &

processes

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Not ethical to benchmark a productwith another. Then what else to

benchmark?

Process It is not copying

Not a time bound event

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Benchmarking Concept

What is our performance

level?

How do we do it?

What are others

Performance levels?

How did they get there?

Creative

Adaptation

Breakthrough Performance

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Elements of benchmarking

Measuring performance needsmetrics

Requires managers to understandwhy their performance differs? Procs

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Benchmarking partner

Refers to the role model who could beimitated or benchmarked with

Extensive study is needed to select therole model

Chosen role model is known as

benchmarking partner Ex. Xerox adopted L L Bean

Texas instruments referred more than six

firms to finalize its order preparation

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Reasons for Benchmarking

Eliminates re-inventing the wheelwith associated wasted time and

resources (imit&Adapt)

Helps to identify performance gaps leading to develop realistic goals

Inspire managers to compete

Ensures continuous innovation (scan ext envt)

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Triggers of benchmarking

Problem based benchmarking Process based benchmarking

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Problem based benchmarking

Arises out of a problem faced by theorganization

Adverse feedback from customers Increasing quality costs

Alarming error rates

(Reactive approach)

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Process based benchmarking

As a part of process improvementstrategy

Defined mission

Defined objectives

Defined priorities

(proactive benchmarking)

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Sources of benchmarking

Internal External

Within their business

Same location

Other location

With main competitor

Same location

Other location

Different businessbut same company

With similar industries Different companies

Any location

Best Practice

any process

any company

any industry

any location

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Pitfalls/criticism of benchmarking

Nature itself if it is not prepared toinnovate then how superiority?

Not a substitute for innovation

Lack of commitment doesnt lead to

immediate profit. Sponsorship of top mgtand acceptance of process owners is

needed

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Pitfalls/criticism of benchmarking

Wrong selection of process Wrong selection of team members

Underestimation of required time

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Types of benchmarking

Competitive benchmarking

Involves studying competitors

products, processes, businessperformance in the same industry

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Process benchmarking

Identifies the most effective

practices in companies that performsimilar functions no matter in what

industry (Dist, order entry, recruitment, training)

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Strategic benchmarking

Examines the winning strategies of

companies that lead to competitiveadvantage and market success

Analysis is made with reference tostrategic intent, core competency,

product line, strategic alliance,

technology

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Product benchmarking

It is comparing the performance,

features and customer acceptanceof competing products

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Cooperative benchmarking

Organizations invite best-in-class

firms to share knowledge

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Collaborative benchmarking

Both entities study each other and

work together to improve

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Process of benchmarking

Decide what to benchmark Understand current performance

Plan

Study others

Learn from the data

Use the findings

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Quality circles

A type of team to focus specifically onquality

Concept was developed by kaoru

Ishikawa Its a structured, voluntary group

activity

Effectiveness depends on

commitment of top, following the

rules, and rewarding system

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Every Q Circle will have a leader,Deputy leader

For every 3/4 Q circle there will be a

facilitator whose job is to coordinate Monitored by high level committee

consisting of CEO and other two

senior members

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Objectives of Q circles

To develop individuals skill To maintain harmony at work place

To create problem solving capacity

To reduce errors on job

To increase productivity

To have synergistic effect To improve communication flow

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Functions of Q circles

Identify Analyze and

Solve

Quality and productivity problem

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Problem solving functions of team

9.

Implement

Solution and

monitor

Develop

follow-up

Plan

Pick bestSolutions

Develop

solutionsFind causes

Focusattention

Collect data

2.

Pick

problems

1.

Develop list

of problems

Identify

Analyze

solve

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Structure of Q CirclesExecutive committee

Steering committee

Facilitator

Leader

Deputy Leader

Member Member

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Black Belts and

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Black Belts andGreen Belts

Black Belt

project leader

Master Black Belt

a teacher and mentorfor Black Belts

Green Belts

project team

members

Si Si DMAIC

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3.4 DPMO3.4 DPMO

67,000 DPMO

cost = 25% of

sales

67,000 DPMO

cost = 25% of

sales

DEFINEDEFINE CONTROLCONTROLIMPROVEIMPROVEANALYZEANALYZEMEASUREMEASURE

Six Sigma: DMAIC

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tqm 2 part

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