Evolution of Total Quality

Principles and

Other Quality Gurus

Dr. W. Edwards Deming• Dr. W. Edwards Deming is

known as the father of the Japanese post-war industrial revival and was regarded by many as the leading quality guru in the United States.

• Trained as a statistician, his expertise was used during World War II to assist the United States in its effort to improve the quality of war materials.

"We have learned to live in a world of mistakes and defective products as if they were necessary to life. It is time to adopt a new philosophy in America.“ (Deming)

Deming’s System of Profound Knowledge

• The prevailing style of management must undergo transformation. A system cannot understand itself. The transformation requires a view from outside.

• The first step is transformation of the individual. This transformation is discontinuous. It comes from understanding of the system of profound knowledge. The individual, transformed, will perceive new meaning to his life, to events, to numbers, to interactions between people.

• Once the individual understands the system of profound knowledge, he will apply its principles in every kind of relationship with other people. He will have a basis for judgment of his own decisions and for transformation of the organizations that he belongs to.

• The individual, once transformed, will:– Set an example;– Be a good listener, but will not

compromise;– Continually teach other people;

and– Help people to pull away from

their current practices and beliefs and move into the new philosophy without a feeling of guilt about the past

• Deming advocated that all managers need to have what he called a System of Profound Knowledge, consisting of four parts:– Appreciation of a system:

understanding the overall processes involving suppliers, producers, and customers (or recipients) of goods and services.

– Knowledge of variation: the range and causes of variation in quality, and use of statistical sampling in measurements;

– Theory of knowledge: the concepts explaining knowledge and the limits of what can be known;

– Knowledge of psychology: concepts of human nature.

Deming’s 14 Points• Constancy of purpose

Create constancy of purpose for continual improvement of products and service to society, allocating resources to provide for long range needs rather than only short term profitability, with a plan to become competitive, to stay in business, and to provide jobs.

• The new philosophy

Adopt the new philosophy. We are in a new economic age, created in Japan. We can no longer live with commonly accepted levels of delays, mistakes, defective materials, and defective workmanship. Transformation of Western management style is necessary to halt the continued decline of business and industry.

• Cease dependence on mass inspection

Eliminate the need for mass inspection as the way of life to achieve quality by building quality into the product in the first place. Require statistical evidence of built in quality in both manufacturing and purchasing functions.

• End lowest tender contractsEnd the practice of awarding business solely on the basis of price tag. Instead require meaningful measures of quality along with price. Reduce the number of suppliers for the same item by eliminating those that do not qualify with statistical

and other evidence of quality. The aim is to minimize total cost, not merely initial cost, by minimizing variation. This may

be achieved by moving toward a single supplier for any one item, on a long term relationship of loyalty and trust. Purchasing managers have a new job, and must learn it.

• Improve every process

Improve constantly and forever every process for planning, production, and service. Search continually for problems in order to improve every activity in the company, to improve quality and productivity, and thus to constantly decrease costs. Institute innovation and constant improvement of product, service, and process. It is management's job to work continually on the system (design, incoming materials, maintenance, improvement of machines, supervision, training, retraining).

• Institute training on the job

Institute modern methods of training on the job for all, including management, to make better use of every employee. New skills are required to keep up with changes in materials, methods, product and service design, machinery, techniques, and service.

•  Institute leadershipAdopt and institute leadership aimed at helping people do a better job. The responsibility of managers and supervisors must be changed from sheer numbers to quality. Improvement of quality will automatically improve productivity. Management must ensure that immediate action is taken on reports of inherited defects, maintenance requirements, poor tools, fuzzy operational definitions, and all conditions detrimental to quality.

• Drive out fear

Encourage effective two way communication and other means to drive out fear throughout the organization so that everybody may work effectively and more productively for the company.

• Break down barriers

Break down barriers between departments and staff areas. People in different areas, such as Leasing, Maintenance, Administration, must work in teams to tackle problems that may be encountered with products or service.

• Eliminate exhortations

Eliminate the use of slogans, posters and exhortations for the work force, demanding Zero Defects and new levels of productivity, without providing methods. Such exhortations only create adversarial relationships; the bulk of the causes of low quality and low productivity belong to the system, and thus lie beyond the power of the work force.

• Eliminate arbitrary numerical targets

Eliminate work standards that prescribe quotas for the work force and numerical goals for people in management. Substitute aids and helpful leadership in order to achieve continual improvement of quality and productivity.

• Permit pride of workmanship

Remove the barriers that rob hourly workers, and people in management, of their right to pride of workmanship. This implies, among other things, abolition of the annual merit rating (appraisal of performance) and of Management by Objective. Again, the responsibility of managers, supervisors, foremen must be changed from sheer numbers to quality.

• Encourage education

Institute a vigorous program of education, and encourage self improvement for everyone. What an organization needs is not just good people; it needs people that are improving with education. Advances in competitive position will have their roots in knowledge.

• Top management commitment and action

Clearly define top management's permanent commitment to ever improving quality and productivity, and their obligation to implement all of these principles. Indeed, it is not enough that top management commit themselves for life to quality and productivity.

Joseph M. Juran• His major contribution to society

was in the field of quality management and he is often called the "father" of quality. Perhaps most importantly, he is recognized as the person who added the managerial dimension to quality—broadening it from its statistical origins.

• In 1937, Dr. Juran created the "Pareto principle," which millions of managers rely on to help separate the "vital few" from the "useful many" in their activities. This is commonly referred to as the 80-20 principle. Its universal application makes it one of the most useful concepts and tools of modern-day management. This is now referred to as Juran's Pareto Principle.

• Joseph M. Juran developed the "Juran's trilogy," an approach to cross-functional management that is composed of three managerial processes: quality planning, quality control and quality improvement.

• This Trilogy shows how an organization can improve every aspect by better understanding of the relationship between processes that plan, control and improve quality as well as business results.

• Quality Planning --- To determine customer needs and develop processes and products required to meet and exceed those of the customer needs. The processes are called Design for Six Sigma or Concurrent Engineering. This can be particularly challenging for a planning team, because customers are not always consistent with what they say they want. The challenge for quality planning is to identify the most important needs from all the needs expressed by the customer.

– Identify who are the customers. – Determine the needs of those

customers. – Translate those needs into our

language. – Develop a product that can

respond to those needs. – Optimize the product features

so as to meet our needs and customer needs.

• Quality Control --- The purposes of quality control is to ensure the process is running in optimal effectiveness, or to ensure that any level of chronic waste inherent in the process does not get worst. Chronic waste, which is a cost of poor quality that can exist in any process, may exist due to various factors including deficiencies in the original planning. It could cost a lot of money to the company, from rework time to scrap product to overdue receivables.

• If the waste does get worst (sporadic spike), a corrective action team is brought in to determine the cause or causes of this abnormal variation. Once the cause or causes had been determined and corrected, the process again falls into the zone defined by the “quality control” limits.– Prove that the process can produce

the product under operating conditions with minimal inspection.

– Transfer the process to operations.

• Quality Improvement --- Eliminate waste, defects and rework that improves processes and reduces the cost of poor quality. The processes have to be constantly challenged and continuously improved. Such an improvement does not happen of its own accord. It results from purposeful Quality Improvement or “Breakthrough.”– Develop a process which is able to

produce the product. – Optimize the process.

Juran’s Ten Steps to Quality Improvement• Build awareness of the need and

opportunity for improvement• Set goals for improvement• Organize to reach the goals• Provide training• Carry out projects to solve problems• Report progress• Give recognition• Communicate results• Keep score• Maintain momentum by making annual

improvement part of the regular systems and processes of the company

Strengths of Juran’s Trilogy• The methodology searches a

continuous improvement of quality in every aspects of the organization, because if the implementation of the methodology does not give the desire results it is possible to start all over again.

Strengths of Juran’s Trilogy• The methodology allows the use

different quality tools to cover the steps of Juran’s Trilogy. It allows a better understanding of the relationships of every stage of the company.

• The methodology is well structured and allows the companies that implement it, an easy understanding and application.

Weaknesses of Juran’s Trilogy• To have quality control it is

necessary to have a trained person with knowledge in statistical processes or train a special person to be in charge of quality. The program is focus in the company process and not in labor force.

Weaknesses of Juran’s Trilogy• Analyzing the requirements of

the program we found that the companies who apply the program have a complex level of organization. This kind of methodologies show results in a long term; this represents a risk for the company because the implementation of the quality program can be a waste of time, money and resources.

Philip Crosby• Dr. Deming and Dr. Juran were

the great brains of the quality revolution. Where Phil Crosby excelled was in finding a terminology for quality that mere mortals could understand. His books, "Quality Without Tears" and "Quality is Free" were easy to read, so people read them. He popularized the idea of the "cost of poor quality", that is, figuring out how much it really costs to do things badly.

• Like Frederick Taylor, Philip Crosby's ideas came from his experience on an assembly line. He focused on zero defects, not unlike the focus of the modern Six Sigma Quality movement. Mr. Crosby was quick to point out, however, that zero defects is not something that originates on the assembly line.

• To create a manufacturing process that has zero defects management must set the tone and atmosphere for employees to follow. If management does not create a system by which zero defects are clearly the objective then employees are not to blame when things go astray and defects occur. The benefit for companies of such a system is a dramatic decrease in wasted resources and time spent producing goods that consumer's do not want.

• Mr. Crosby defined quality as a conformity to certain specifications set forth by management and not some vague concept of "goodness." These specifications are not arbitrary either; they must be set according to customer needs and wants.

ASSIGNMENT• DR. H. JAMES HARRINGTON• DR. KAORU ISHIKAWA • DR. WALTER A. SHEWHART • SHIGEO SHINGO • FREDERICK TAYLOR• DR. GENICHI TAGUCHI

Crosby's 14 Steps to Quality Improvement• Management is committed to

quality – and this is clear to all• Create quality improvement

teams – with (senior) representatives from all departments.

• Measure processes to determine current and potential quality issues.

• Calculate the cost of (poor) quality

Crosby's 14 Steps to Quality Improvement• Raise quality awareness of all

employees• Take action to correct quality

issues• Monitor progress of quality

improvement – establish a zero defects committee.

• Train supervisors in quality improvement

Crosby's 14 Steps to Quality Improvement• Hold “zero defects” days• Encourage employees to create

their own quality improvement goals

• Encourage employee communication with management about obstacles to quality

• Recognize participants’ effort• Create quality councils• Do it all over again – quality

improvement does not end

Five characteristics of an “Eternally Successful Organization”

• People routinely do things right first time

• Change is anticipated and used to advantage

• Growth is consistent and profitable

• New products and services appear when needed

• Everyone is happy to work there

• The foundation of Crosby's approach is prevention. His approach to quality is best described by the following concepts: (1) Do It Right the First Time; (2) Zero Defects and Zero Defects Day; ; (3) the Four Absolutes of Quality; (4) the Prevention Process; (5) the Quality Vaccine; and (6) the Six C's.

Four Absolutes of Quality Management • Quality is defined as

conformance to requirements, not as 'goodness' or 'elegance'.

• The system for causing quality is prevention, not appraisal.

• The performance standard must be Zero Defects, not "that's close enough".

• The measurement of quality is the Price of Nonconformance, not indices.

Four Absolutes• Quality is conformance to the

requirements: All the actions necessary to run an organization, produce a product and or service, and deal with customers must be met and agreed. If management wants people to do it right the first time, they must clearly communicate what it is and help them achieve it through leadership, training, and fostering a climate of cooperation.

• The system of quality is prevention: The system that produces quality is prevention (i.e., eliminating errors before they occur). To Crosby, training, discipline, example, and leadership produce prevention. Management must consciously commit themselves to a prevention-oriented work environment.

• The performance standard is Zero Defects ( Do it right the first time ): The attitude of close enough is not tolerated in Crosby s approach. Errors are too costly to ignore. Leaders must help others in their pursuit of conforming to requirements by allocating resources for training, providing time, tools, etc., to all employees.

• The measurement of quality is the price of nonconformance: Nonconformance is a management tool for diagnosing an organization's effectiveness and efficiency.

Six C’s• Comprehension• Commitment• Competence• Communication• Correction• Continuance