quality of management and the pdsa cycle. - · pdf filequality of management and the pdsa...

Quality of Management and the PDSA Cycle.

Adler Yu. P., Shper V. L.Moscow Institute of Steel &

Alloys, RF,[email protected]

Adler Yu, Shper V. EOQ, Tallinn, 2013 1

It is shown how more thorough look at the well-known Shewhart-Deming cycle let us understand

- such sharp problems of the current management as the gap between "gemba" and top management;

- how this gap leads to a creation of the so-called "managerial factory" with all consequences that result from this.

The remedy though not panacea is suggested and discussed along with the goals for quality movement and its future.


Adler Yu, Shper V. EOQ, Tallinn, 2013

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It is well-known that Shewhart created the cycle Specification-Production-Inspection

because these steps are not independent and because these three steps correspond to the three steps in a dynamic scientific process of acquiring knowledge

W. Shewhart. Statistical Methods from the Viewpoint of Quality Control


Specification Production Inspection


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W.E. Deming added a “Study quadrant”to Shewhart cycle and the mankind became acquainted with the famous Shewhart-Deming cycle

PDSA or PDCA


This is a cycle of continual improvement (Kaizen) and continual

growing of our knowledge

PLAN

DOStudy

ACT

Statistical ThinkingAdler Yu, Shper V. EOQ, Tallinn,

20137

Note that without STATISTICAL THINKINGshown in the previous slidethe stage STUDY may fail to be useful for decision

making in our world full of variability


Cycle PDSA can take different images -an example of one of the most widely-

known is the DMAIC – cycle used in Six Sigma Approach -

But whatever it looks like its conceptual essence does not change

This is always a cycle of our learning and improvement


But what occurs when the PDSA cycle clashes against the traditional hierarchic structure of businesses


In this case:Tops create plans

Operators make the workMiddles analyze results and sent

reports to TopsTops make decisions about

corrections and changesOperators implement

changes into their procedures and do

the work again, and so forth…


Everything was going well until a new generation of managers came to the stage

The thing is that the old generation of top managers consisted of the individuals grown up within their organizations and experienced in many jobs at different levels of a company


The new generation possesses remarkable CV’s and deep knowledge of money flows

But very often they don’t have enough knowledge of value-adding processes and of how these processes run along the mainstream of the organization (in gemba)


In fact all levels are running along their own cycles but …


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The links between tops and doers have disappearedThe Wall between tops and middles have appeared

Tops started to speak in different language

DC(S)

A PTop level

Middle levelDC(S)

A P

DC(S)

A P

Doers level

Semipermeable Wall


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Thus a gap have appeared between top managers and all gemba levels of an organization

Particularly wide this gap is between those tops who are in so-called “white houses”

Such as remote headquarter, ministry departments and so forth…


Feeling this gap and understanding that it threatens their power

These guys start trying to increase their control over everything

Just this is how “The Managerial Factory”

emerges


As a result we have something like the following situation



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The main problem is thatAll those people are working

very hard -But their work does not

produce any valuable for all other people

John Seddon called it “Managerial Factory”


Our suggestions for a remedy

The world should refuse fromPursuit for profits, Manipulation of people and Pursuit for numbers and indices And change all those forPursuit for something valuable for

peopleUnderstanding of peopleUnderstanding of system and variability


By other wordsWe need to refuse from - Assessing the firm performance by

money - Command and control style of

managementTop managers should possess a

“domain knowledge”, i.e. a profound understanding of technology and business of their company


All people should possess profound knowledge of

what is known as system and statistical thinking


As a first step on this way we suggest

To prohibit all superior organs from demanding more than five listed below indicators:

- money;- quality;- time;- variability;- people.


As an additional preliminary step we suggest to refuse from such non-value-adding activity as ISO 9001 certification


Technically it is very simple:

The requirements should be excluded from ISO 9001 standard and it has to get a status of recommendations

We think that if the world quality community showed such an example of

responsible behavior it would facilitate quality

movement all over the world


LiteratureW. Shewhart. Statistical Methods from the

Viewpoint of Quality Control. – N.Y., 1986.W.E. Deming. Out of the Crisis. – The MIT Press,

1982.K. Hopper, W. Hopper. The Puritan Gift. – I.B.

Tauris & Co., 2007.J. Seddon Freedom from Command & Control. –

Productivity Press, 2005.Adler Y., Shper V. The Future of ISO 9001

Standard through the Lens of the System of Profound Knowledge. – 10th ANQ Congress, Hong Kong, 2012


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