BS1036 Quality Management in the Public Sector 3: TQM Gurus [1] W.Edwards Deming

• Crucial site:www.dti.gov.uk/mbp/bpgt/m9ja00001/m9ja000011.html

• The ‘TQM gurus’ are studied because…• Business Survival depends on quality• Quality ideals are not always realised• Quality costs are often high and unquantified• TQM implies a top management led approach

focusing on (a) prevention (b) customer orientation and teamwork

BS1036 Quality Management in the Public Sector3: TQM Gurus [1] W.Edwards Deming

• Pre-war rooted in Statistical Process Control (particularly work of Shewhart)

• Sources of variation (in manufacturing AND in non-manufacturing) should distinguish:

• Special causes (e.g. change of operator)

• Common causes (e.g. design of the system itself)

• Engineers understood his method – but Deming was concerned that managements understood

BS1036 Quality Management in the Public Sector3: TQM Gurus [1] W.Edwards Deming

BS1036 Quality Management in the Public Sector3: TQM Gurus [1] W.Edwards Deming

• 'Everyone doing his best is not the answer. It is first necessary that people know what to do. Drastic changes are required. The first step in the transformation is to learn how to change... Long term commitment to new learning and new philosophy is required of any management that seeks transformation. The timid and the faint-hearted, and people that expect quick results are doomed to disappointment.'

BS1036 Quality Management in the Public Sector3: TQM Gurus [1] W.Edwards Deming

• Whilst the introduction of statistical problem solving and quality techniques and computerisation and robotisation have a part to play, this is not the solution: 'Solving problems, big problems and little problems, will not halt the decline of American industry, nor will expansion in use of computers, gadgets, and robotic machinery. Benefits from massive expansion of new machinery also constitute a vain hope. Massive immediate expansion in the teaching of statistical methods to production workers is not the answer either, nor wholesale flashes of quality control circles. All these activities make their contribution, but they only prolong the life of the patient, they can not halt the decline'.

BS1036 Quality Management in the Public Sector3: TQM Gurus [1] W.Edwards Deming

• Deming's 14 Points

1. Create constancy of purpose to improve product and service.

2. Adopt new philosophy for new economic age by management learning responsibilities and taking leadership for change.

3. Cease dependence on inspection to achieve quality; eliminate the need for mass inspection by building quality into the product.

BS1036 Quality Management in the Public Sector3: TQM Gurus [1] W.Edwards Deming

• Deming's 14 Points

4. End awarding business on price; instead minimise total cost and move towards single suppliers for items.

5. Improve constantly and forever the system of production and service to improve quality and productivity and to decrease costs.

6. Institute training on the job.

BS1036 Quality Management in the Public Sector3: TQM Gurus [1] W.Edwards Deming

• Deming's 14 Points

7. Institute leadership; supervision should be to help do a better job; overhaul supervision of management and production workers.

8. Drive out fear so that all may work effectively for the organisation.

9. Break down barriers between departments; research, design, sales and production must work together to foresee problems in production and use.

BS1036 Quality Management in the Public Sector3: TQM Gurus [1] W.Edwards Deming

• Deming's 14 Points

10. Eliminate slogans, exhortations and numerical targets for the workforce, such as 'zero defects' or new productivity levels. Such exhortations are diversory as the bulk of the problems belong to the system and are beyond the power of the workforce.

11. Eliminate quotas or work standards, and management by objectives or numerical goals; substitute leadership.

BS1036 Quality Management in the Public Sector3: TQM Gurus [1] W.Edwards Deming

• Deming's 14 Points

12. Remove barriers that rob people of their right to pride of workmanship; hourly workers, management and engineering; eliminate annual or merit ratings and management by objective.

13. Institute a vigorous education and self-improvement programme.

14. Put everyone in the company to work to accomplish the transformation.

BS1036 Quality Management in the Public Sector3: TQM Gurus [1] W.Edwards Deming

• Deming's Seven Deadly Diseases

1. Lack of constancy of purpose

2. Emphasis on short-term profits

3. Evaluation of performance, merit rating, or annual review

4. Mobility of top management

5. Running a company on visible figures alone ("counting the money")

6. Excessive medical costs

7. Excessive costs of warranty, fueled by lawyers that work on contingency fees

BS1036 Quality Management in the Public Sector3: TQM Gurus [1] W.Edwards Deming

• Deming's Obstacles

1. Neglect of long-range planning and transformation

2. The supposition that solving problems, automation, gadgets, and new machinery will transform industry

3. Search for examples

4. Our problems are different

5. Obsolescence in schools

6. Reliance on quality control departments

7. Blaming the workforce for problems

BS1036 Quality Management in the Public Sector3: TQM Gurus [1] W.Edwards Deming

• Deming's Obstacles

8. Quality by inspection

9. False starts

10. The unmanned computer

11. Meeting specifications

12. Inadequate testing of prototypes

13. "Anyone that comes to try to help us must understand all about our business"

BS1036 Quality Management in the Public Sector3: TQM Gurus [1] W.Edwards Deming

• Deming’s Action Plan

1. Management struggle over 14 points, 7 Deadly Diseases, Obstacles

2. Management takes pride and develops courage for new direction

3. Management explain to personnel in the company why change is necessary

4. Divide every company into stages identifying the next stage as ‘the customer’

BS1036 Quality Management in the Public Sector3: TQM Gurus [1] W.Edwards Deming

• Deming’s Action Plan

5. Start an organisation to guide quality control (using Deming Cycle)

6. Everyone can take part in a team to improve input and output at any stage

7. Embark on construction of organisation for quality (involving knowledgeable statisticians)

BS1036 Quality Management in the Public Sector3: TQM Gurus [1] W.Edwards Deming

Deming’s System of Profound Knowledge

1. Appreciation for a system

2. Knowledge of statistical theory

3. Theory of Knowledge

4. Knowledge of Psychology

BS1036 Quality Management in the Public Sector 4: TQM Gurus [2]

Joseph JURAN

• Quality just not just happen but has to be planned

• Trilogy of– Quality Planning– Quality Control– Quality Improvement

BS1036 Quality Management in the Public Sector 4: TQM Gurus [2]

Joseph JURANQuality PLANNING consists of:• Identifying customers and their needs• Establishing optimum quality goals• Creating measurements of quality• Plan to meet quality goals under operating

conditions• Produce continuing results

BS1036 Quality Management in the Public Sector 4: TQM Gurus [2]

Joseph JURAN• Emphasises the importance of internal as well as

external customers• Concept of ‘fitness for use’ to be applied to the

interim product for all internal customers• Actions should consist of

– 90% substance, – 10% exhortation

(not the reverse)

BS1036 Quality Management in the Public Sector3: TQM Gurus [2]

For each theorist, working as a whole group:

1. Which of Deming’s ’14 points’ apply most to (a)schools/colleges (b) work organisations

2. Which of Deming’s ‘Seven Deadly Diseases’ apply most to:(a)schools/colleges (b) work organisations

3. Which core ideas of Juran apply most to(a) schools/colleges (b) work organisations

4. Each individual in the group reports back…

BS1036 Quality Management in the Public Sector 4: TQM Gurus [2]

Evaluation of the Gurus…• What remains of enduring value ?• Are they culturally specific ?• Were their writings designed to meet particular

problems in a historical time scale• How applicable are concepts to service industries

such as education, health, social services ? • Who IS the customer ?