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Unit III

APPROACHES TO TOTAL QUALITY
Primary approach

 Adaptation and deployment of a suitable quality
  improvement model, keeping in view the
  improvement needs and competition.
 Reason for adopting TQM - primarily to increase
  domestic and global competitiveness.
 There is need for clear, consistent and persistent
  leadership to introduce TQM principles.
 TQM can be implemented through a well-
  developed Total Quality system model.
Basic Elements of TQM strategy


 Concept of „customer-first‟ and     listening to
    customers.
   Customer-focused vision, and strategic goals
   Care for employees and trust-building
   Creation of a Learning Organization for change
    and continuous improvement
   Leadership to remove barriers to achieving TQ
   Plans and measurement of result.
Deming Management Philosophy

 Propounded by W. Edwards Deming
 Was a statistician at Western Electric in 1930s
 During World War II – he taught quality control courses
    as part of national defense effort
   Taught engineers but failed to reach top management
   1950s – he was invited to Japan to introduce statistical
    quality control concepts
   Mid 1970s – quality of Japanese products exceeded that
    of the West.
   He was practically unknown in the US till 1980.
Deming Management Philosophy

 He never really defined quality. “ a product or
  service possesses quality if it helps somebody and
  enjoys a good and sustainable market.”
 High quality      High productivity      long-term
  competitive strength
 Deming‟s Philosophy – “A System of Profound
  Knowledge” which consists of 4 parts;
  Appreciation for a system
  Understanding process variation
  Theory of knowledge
  Psychology
Deming‟s Philosophy

1.   Systems:
    A set of functions or activities that work together to
     achieve organizational goals
    A system must have an aim for everybody to gain
     over the long term– stockholders, employees,
     customers, community and environment
    Components of a system must work together for
     effectiveness
    Subsystems and people who work in them must be
     interrelated
    Management‟s job is to optimize the system.
    Systems require co-operation. Competition may be
     destructive
Deming‟s Philosophy

2. Understanding process variation:
 No two outputs from any production process are
  exactly alike.
 Variation may be due to difference in material, tools,
  machinery, settings, operators, etc. and are difficult to
  comprehend.
 Common causes of variation - Factors present as a
  natural part of the process (80-90%)
 Special causes of variation – arise from external
  sources, thus not inherent in the process (10-20%)
Deming‟s Philosophy

2. Understanding process variation:
 Common Causes of variation    Special Causes of variation
 ›Inherent in the process      ›External to the process
 ›Account for 80-90% of        ›Account for 10-20% of
 observed variations           observed variations
 ›Arise from variation in      ›Arise from variation in quality
 methods, machines, etc.       of material, poor training, etc.
 ›System governed only by      ›System governed by special
 common causes is stable       causes is unstable and disrupts
 and performance can be        predictable pattern
 predicted                     ›If management ignores them,
 ›If management tries to fix   they miss the opportunity to
 it, variation may increase.   improve.
Deming‟s Philosophy

2. Understanding process variation:
 Variation is the root cause of poor quality
 Variation increases the cost of doing business
 By minimizing variation, everybody benefits
 To reduce common cause variation – change
  technology of the process
 Pressurizing workers to perform at high quality
  can lead to frustration
 Special cause variation – can be corrected through
  training and management support
Deming‟s Philosophy

3. Theory of knowledge:
 Concerned with nature and scope of knowledge, its
    presuppositions, and general reliability of claims to
    knowledge.
   Deming was influenced by Irving Lewis who stated
    that there is no knowledge without interpretation, the
    latter being an activity of the mind subject to further
    experience.
   Management decisions must be driven by facts, data,
    and justifiable theories, not solely by opinions.
   Good theories supported by data can establish cause-
    effect relationship, used for prediction.
   Theory explains why things happen.
Deming‟s Philosophy

4. Psychology:
 It helps understand people, interactions between
  people and circumstances, between leaders and
  employees, etc.
 Psychology helps nurture and preserve people‟s
  positive innate attributes.
 Deming‟s contribution was in bringing together
  some basic concepts already developed by others in
  the field.
Deming – 14 Points for Management

Introduction:
 These points were devised during an era when
  organisations were ruled by autocratic managers,
  driven by short-term profits and little focus or
  interest in quality improvement.
 These points, even today, provide important
  insights for managers.
 Failure to heed them might lead to repetition of the
  mistakes made in the past.
Deming – 14 Points for Management

1.Create and publish a statement of aims and
  purposes of the organisation and demonstrate
  management‟s commitment to it:
Conduct a thorough assessment to identify the
  need for change as well as the areas that
  demand      change,  and    follow  up   on
  opportunities. Without adequate commitment
  from management, change and improvement is
  not possible.
Deming – 14 Points for Management

2. Learn the new philosophy:
Old historical methods such as quota-driven
  production, work measurement, don‟t work.
  There should be new ways of thinking.
Organisations need to continually renew
  themselves to learn new approaches including
  the Baldrige framework and Six Sigma
Deming – 14 Points for Management

3. Understand the purpose of inspection:
It is essential for improvement of processes and
  reduction of cost.
Mid 20th Century – it was a principal means of
  quality control, which added little value to the
  product.
Deming suggested that inspection should be used
  wisely as an information-gathering tool for
  improvement.
Better understanding can eliminate unnecessary
  inspection or perform critical inspection to avoid
  expensive rework.
Deming – 14 Points for Management

4. End Price-tag Decisions:
Purchasing decisions have been conventionally
  driven by cost through competitive bidding.
Deming promoted the recognition of purchasing
  departments as „internal suppliers‟ to production.
He urged businesses to be loyal to few suppliers
  thereby enhancing opportunity for improvement.
Supply chains need to be established to develop
  stronger partnerships with suppliers.
Deming – 14 Points for Management

5. Improve Constantly:
Traditionally not a common practice, but currently
  an essential means to survival in competition.
Improvements are sought in design (through
  customer feedback and understanding customer
  needs)and operations (by reducing variation,
  encouraging innovation, etc.).
Use appropriate tools for improvement.
Deming – 14 Points for Management

6. Institute training:
People are the most valuable resource
Training, besides improving product/service quality;
 adds to worker morale by demonstrating that the
 company is interested in investing in their future.
Training should aim to identify, diagnose, analyze
 and solve performance problems.
Some provide excellent training for technology
 related to production, but fail to enrich ancillary
 skills of their workforce.
Deming – 14 Points for Management

7. Teach & Institute Leadership:
Management must lead and guide, not supervise and
  direct.
Supervision must provide a link between
  management and workforce. Leadership should
  help eliminate fear and instill teamwork.
Leadership gets challenging as new generations of
  managers replace those who have learned to lead.
Deming – 14 Points for Management

8. Drive out fear:
Fear in work – fear of failure, change, the unknown.
It encourages short-term selfish thinking and not
  long-term improvement.
Creating a culture without fear is a slow process.
It can happen through positive motivation and
  effective leadership & corporate policies.
Managers should be sensitive to the impact that fear
  can have on their organisations.
Deming – 14 Points for Management

9. Optimize Team Efforts:
Barriers between individuals and departments lead
  to poor quality. This is often a result of internal
  competition.
Teamwork helps break down barriers between
  internal customers and suppliers.
Focus should be on meeting customer needs and
  improving processes as a means to achieving
  corporate goals.
Deming – 14 Points for Management

10. Eliminate Exhortations:
Motivate through trust and leadership than slogans.
However, workers cannot improve solely from
  motivational methods without a system that
  enhances their performance.
Where the environment constrains their output, they
  become frustrated and perform badly.
Take the help of data-driven processes and better
  organizational design to drive improvement.
Deming – 14 Points for Management

11. Eliminate Quotas and MBO:
Numerical quotas encourage short-term behavior
  rather than long-term.
Deming – goals are useful, but numerical goals set
  without incorporating a method to reach there,
  generate frustration and resentment.
Where variations occur, strive to understand the
  reasons for variation, find means to improve rather
  than focus on short-term goals.
Deming – 14 Points for Management

12. Remove barriers to pride in workmanship:
Stop viewing workers as „commodities‟
Don‟t give them monotonous work with inferior
  machines, or material, or require them to report
  to supervisors who don‟t know the job.
Empower workers with a sense of ownership of
  their work processes and show higher self-
  esteem.
Deming – 14 Points for Management

13. Institute Education:
Where training refers to job skills, education refers
  to self-development.
Firms should develop value and self-worth of
  employees by investing in them.
It is an effective method to motivate employees and
  is found to return many benefits.
Educating employees must not be viewed as a cost.
Deming – 14 Points for Management

14. Take Action:
Cultural changes anywhere, starts with top
  management, and includes everyone.
Changing an organizational culture may be met with
  resistance in many firms.
This     normally     happens   when    traditional
  management practices are deeply ingrained into
  the organization's culture.
Nevertheless, take appropriate action to imbibe
  change.
The Juran Philosophy

 Joseph M Juran joined the Western Electric in 1920s
 Spent much of his tenure as a corporate industrial
  engineer
 1951 – wrote and published „Quality Control
  Handbook‟, one of the most comprehensive books on
  quality.
 1950s - He taught quality principles to Japanese, just
  after Deming
 He was a principle force in their quality
  reorganisation
The Juran Philosophy

 Juran viewed quality on two levels;
  i.  The mission of the firm as a whole is to achieve high product
      quality
  ii. The mission of each individual department in the firm is to
      achieve high production quality
 Senior management must play an active leadership
  role in quality management process.
 He believed that employees at different levels spoke
  different „languages‟.
 Thus, to get management‟s attention, quality issues
  must be addressed through analysis of quality costs.
The Juran Philosophy

 Focus on conformance to specifications through
  Elimination of defects and
  Support by statistical tools

 He defined quality as “fitness for use.” It consists of
 four parts
  Quality of design
  Quality of conformance

  Availability

  Field service
The Juran Philosophy

 Quality of design:
 Focuses on market research, product concept and
  design specifications
 Quality of conformance:
 Includes technology, manpower and management
 Availability:
 Focuses on reliability, maintainability and logistical
  support
 Field service:
 Includes promptness, competence and integrity
The Juran Philosophy

 Juran   prescribed   the   Juran   Quality   Trilogy
 consisting of

 Quality planning – the process for preparing to meet
                      quality goals
 Quality control – the process of meeting quality
                    goals during operations
 Quality improvement – the process for breaking
                           through to unprecedented
                           levels of performance.
The Juran Philosophy

 Adopted top-down approach. It is management‟s
   responsibility to achieve quality
 Emphasised on problem solving techniques
 He advocated 10 steps to quality improvement:
i. Build awareness of opportunities
ii. Set goals for improvement in all areas of work
iii. Organise to reach goals.
iv. Carry out improvement projects to solve problems
v. Provide training to people
The Juran Philosophy

vi. Give recognition for quality work
vii. Report progress
viii. Communicate results
ix. Keep the score
x. Maintain momentum of progress
Based on these principles, Juran propagated a concept
 “Managing Business Process quality” by cross-
 functional quality improvement programs
The Crosby Philosophy

 Advocated by Philip B. Crosby, who was corporate
  vice president at International Telephone &
  Telegraph for 14 years.
 He established the Philip Crosby Associates in 1979
  to develop and offer training programs.
 He authored several books, “quality without tears”,
  “quality is free”, etc that were easy for people to read.
 He popularized the idea of the "cost of poor quality",
  that is, figuring out how much it really costs to do
  things badly
The Crosby Philosophy


 He believed that zero defects is not something that
  originates on the assembly line
 Management must set the tone and atmosphere for
  employees to follow
 Benefit - 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
The Crosby Philosophy

 Crosby's response to the quality crisis was the principle
 of "doing it right the first time" (DRIFT) which
 included four important principles
 1) Quality is defined as conformance to requirements,
     not as 'goodness' or 'elegance'.
 2) The system for causing quality is prevention, not
     appraisal.
 3) The performance standard must be Zero Defects,
     not "that's close enough".
 4) The measurement of quality is the Price of Non-
     conformance.
The Crosby Philosophy

 Zero Defects (ZD) Performance standard:
  Theme   – do it right the first time
  Prevent defects, not find and fix them

  People are conditioned to believe that error is
   inevitable… they not only accept but anticipate it!
  Most human error is a result of lack of attention
   rather than lack of knowledge.
  ZD standard – help to eliminate waste due to rework,
   scrap and repair
The Crosby Philosophy


 Basic    elements of quality improvement:
  Determination, education and implementation.
 Emphasis on management and organisational
  processes for changing corporate culture.
 Crosby Philosophy fits well within existing
  organisational structures.
 Like Deming, Crosby has also prescribed his 14
  points of quality management, as follows;
The Crosby Philosophy

 14 principles for quality improvement – Crosby:


i.     Commitment of top management to quality
ii.    Team approach to quality improvement
iii.   Measure quality to identify improvement areas
iv.    System for measuring cost of quality
v.     Initiating corrective actions
vi.    Promoting quality awareness in the company
vii.   Planning „zero defect‟ programme
The Crosby Philosophy

viii. Organizing supervisory training for all levels
ix. Setting goals for improvement
x.      Promoting work systems for performing error-free
        work
xi.     Observe zero-defects day to stress quality standards
xii.    Recognize those who meet their quality goals
xiii.   Constitute „quality councils‟ of quality professionals
        to share experiences, problems and solutions
xiv.    „Do it all over again‟ for improvement.
Armand Feigenbaum‟s Philosophy

 1950s      – He recognized the importance of
    comprehensive approach to Quality
   Coined the term “Total Quality Control”
   Japanese adopted his concept and renamed it
    Company-wide Quality Control
   Defines Total Quality as excellence-driven rather than
    a defect-driven concept
   He viewed quality as a strategic business tool that
    requires involvement from everyone, and promoted
    the use of quality costs to measure and evaluate
    quality.
Armand Feigenbaum‟s Philosophy

 He believed that TQM is based on three core
 principles: customer focus, participation and
 teamwork, continuous improvement.
                        Practices




                         Principles


 Infrastructure   Participation & Teamwork   Tools & techniques
Armand Feigenbaum‟s Philosophy

 He observed that quality is directly influenced by 9 M‟s
1.   Markets
2.   Money
3.   Management
4.   Men
5.   Materials
6.   Machines
7.   Modern information methods
8.   Mounting product requirements
9.   Motivation
Armand Feigenbaum‟s Philosophy

 Focus on TQM should be:
  Satisfy customers better than competitors do
  Compensate for weaknesses inherent in the culture

  Use facilitation, mediate structure to imbibe change

  Benchmark against best-of-breed companies

  Use scientific methods, not opinion or gut-feel

  All dealings to be based on sincerity and trust

  Use customers and competitors to drive all decisions

  Get the workforce to manage itself
Armand Feigenbaum‟s Philosophy

 Focus on TQM should be:
  Build  on continuous learning and improvement
   processes
  Use technology effectively
  Measure key parameters for all activities
  Get people to perform mundane activities with a
   focus on quality
  Emphasize process more than product
  Turn employees from skill hoarders to disseminators
  Use cross-functional teams
Armand Feigenbaum‟s Philosophy

 Key elements of quality control:
a) Total quality control is a system for quality development
b) The „control‟ aspect involves setting standards, appraising
   performance and taking corrective action
c) Factors that affect quality can be divided into two categories;
   viz., technology and human
d) Operating quality costs can be divided into four parts;
   prevention costs, appraisal costs, internal failure costs and
   external failure costs
e) It is important to control quality at the source.
Shewhart‟s Philosophy

 Walter A Shewhart – Father of Quality
 Deming learned „at the feet‟ of Shewhart.
 Credit for TQM philosophy goes to two people,
  Shewhart, and his student, Deming.
 Shewhart introduced the concept of Statistical Process
  Control which became the cornerstone for process
  control.
 Statistical Process Control involves the use of a system
  to chart separately common causes and special causes
  of variation, and then remedy it
Shewhart‟s Philosophy

 For SPC to work effectively, the common cause
  variation needs to be really small relative to
  specification limits.
 Control processes are hampered greatly by lack of
  information. SPC will aid managers to make scientific,
  efficient and economical decisions.
 He developed          Shewhart Cycle Learning and
  Improvement Cycle, combining creative thinking with
  statistical analysis.
 The cycle contains 4 continuous steps: Plan, do, study,
  act. (The PDSA Cycle)
Shewhart‟s Philosophy


 The major contribution made by Shewhart is the PDSA
 cycle of management.
  Plan   what you want to do
  Do    what is planned
  Study   the results
  Act   – make corrections
  Plan   for improvements (start the cycle again)
Shewhart‟s Philosophy

 Another of his noteworthy contributions includes
 control charts; which is a fundamental tool of SPC.
 Control chart is the graphical device which helps in
 identifying the variation in characteristics for
 improvement. It is the line chart with control limits
 It helps to identify whether processes are operating
 consistently. Control charts have 3 components:
   A centerline (the mathematical average of samples)

   Upper and lower control limits defining constraints
   Performance data plotted over time
Shewhart‟s Philosophy

Control charts – applications
 To establish a state of statistical control
 To monitor a process and signal when it goes out of
  control
 To determine process capability
The American Society for Quality presents a Shewhart
  Medal – for outstanding contribution to the science
  and techniques of quality control or for
  demonstrating leadership in the field of QC.

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Unit iii

  • 1. Unit III APPROACHES TO TOTAL QUALITY
  • 2. Primary approach  Adaptation and deployment of a suitable quality improvement model, keeping in view the improvement needs and competition.  Reason for adopting TQM - primarily to increase domestic and global competitiveness.  There is need for clear, consistent and persistent leadership to introduce TQM principles.  TQM can be implemented through a well- developed Total Quality system model.
  • 3. Basic Elements of TQM strategy  Concept of „customer-first‟ and listening to customers.  Customer-focused vision, and strategic goals  Care for employees and trust-building  Creation of a Learning Organization for change and continuous improvement  Leadership to remove barriers to achieving TQ  Plans and measurement of result.
  • 4. Deming Management Philosophy  Propounded by W. Edwards Deming  Was a statistician at Western Electric in 1930s  During World War II – he taught quality control courses as part of national defense effort  Taught engineers but failed to reach top management  1950s – he was invited to Japan to introduce statistical quality control concepts  Mid 1970s – quality of Japanese products exceeded that of the West.  He was practically unknown in the US till 1980.
  • 5. Deming Management Philosophy  He never really defined quality. “ a product or service possesses quality if it helps somebody and enjoys a good and sustainable market.”  High quality High productivity long-term competitive strength  Deming‟s Philosophy – “A System of Profound Knowledge” which consists of 4 parts;  Appreciation for a system  Understanding process variation  Theory of knowledge  Psychology
  • 6. Deming‟s Philosophy 1. Systems:  A set of functions or activities that work together to achieve organizational goals  A system must have an aim for everybody to gain over the long term– stockholders, employees, customers, community and environment  Components of a system must work together for effectiveness  Subsystems and people who work in them must be interrelated  Management‟s job is to optimize the system.  Systems require co-operation. Competition may be destructive
  • 7. Deming‟s Philosophy 2. Understanding process variation:  No two outputs from any production process are exactly alike.  Variation may be due to difference in material, tools, machinery, settings, operators, etc. and are difficult to comprehend.  Common causes of variation - Factors present as a natural part of the process (80-90%)  Special causes of variation – arise from external sources, thus not inherent in the process (10-20%)
  • 8. Deming‟s Philosophy 2. Understanding process variation: Common Causes of variation Special Causes of variation ›Inherent in the process ›External to the process ›Account for 80-90% of ›Account for 10-20% of observed variations observed variations ›Arise from variation in ›Arise from variation in quality methods, machines, etc. of material, poor training, etc. ›System governed only by ›System governed by special common causes is stable causes is unstable and disrupts and performance can be predictable pattern predicted ›If management ignores them, ›If management tries to fix they miss the opportunity to it, variation may increase. improve.
  • 9. Deming‟s Philosophy 2. Understanding process variation:  Variation is the root cause of poor quality  Variation increases the cost of doing business  By minimizing variation, everybody benefits  To reduce common cause variation – change technology of the process  Pressurizing workers to perform at high quality can lead to frustration  Special cause variation – can be corrected through training and management support
  • 10. Deming‟s Philosophy 3. Theory of knowledge:  Concerned with nature and scope of knowledge, its presuppositions, and general reliability of claims to knowledge.  Deming was influenced by Irving Lewis who stated that there is no knowledge without interpretation, the latter being an activity of the mind subject to further experience.  Management decisions must be driven by facts, data, and justifiable theories, not solely by opinions.  Good theories supported by data can establish cause- effect relationship, used for prediction.  Theory explains why things happen.
  • 11. Deming‟s Philosophy 4. Psychology:  It helps understand people, interactions between people and circumstances, between leaders and employees, etc.  Psychology helps nurture and preserve people‟s positive innate attributes.  Deming‟s contribution was in bringing together some basic concepts already developed by others in the field.
  • 12. Deming – 14 Points for Management Introduction:  These points were devised during an era when organisations were ruled by autocratic managers, driven by short-term profits and little focus or interest in quality improvement.  These points, even today, provide important insights for managers.  Failure to heed them might lead to repetition of the mistakes made in the past.
  • 13. Deming – 14 Points for Management 1.Create and publish a statement of aims and purposes of the organisation and demonstrate management‟s commitment to it: Conduct a thorough assessment to identify the need for change as well as the areas that demand change, and follow up on opportunities. Without adequate commitment from management, change and improvement is not possible.
  • 14. Deming – 14 Points for Management 2. Learn the new philosophy: Old historical methods such as quota-driven production, work measurement, don‟t work. There should be new ways of thinking. Organisations need to continually renew themselves to learn new approaches including the Baldrige framework and Six Sigma
  • 15. Deming – 14 Points for Management 3. Understand the purpose of inspection: It is essential for improvement of processes and reduction of cost. Mid 20th Century – it was a principal means of quality control, which added little value to the product. Deming suggested that inspection should be used wisely as an information-gathering tool for improvement. Better understanding can eliminate unnecessary inspection or perform critical inspection to avoid expensive rework.
  • 16. Deming – 14 Points for Management 4. End Price-tag Decisions: Purchasing decisions have been conventionally driven by cost through competitive bidding. Deming promoted the recognition of purchasing departments as „internal suppliers‟ to production. He urged businesses to be loyal to few suppliers thereby enhancing opportunity for improvement. Supply chains need to be established to develop stronger partnerships with suppliers.
  • 17. Deming – 14 Points for Management 5. Improve Constantly: Traditionally not a common practice, but currently an essential means to survival in competition. Improvements are sought in design (through customer feedback and understanding customer needs)and operations (by reducing variation, encouraging innovation, etc.). Use appropriate tools for improvement.
  • 18. Deming – 14 Points for Management 6. Institute training: People are the most valuable resource Training, besides improving product/service quality; adds to worker morale by demonstrating that the company is interested in investing in their future. Training should aim to identify, diagnose, analyze and solve performance problems. Some provide excellent training for technology related to production, but fail to enrich ancillary skills of their workforce.
  • 19. Deming – 14 Points for Management 7. Teach & Institute Leadership: Management must lead and guide, not supervise and direct. Supervision must provide a link between management and workforce. Leadership should help eliminate fear and instill teamwork. Leadership gets challenging as new generations of managers replace those who have learned to lead.
  • 20. Deming – 14 Points for Management 8. Drive out fear: Fear in work – fear of failure, change, the unknown. It encourages short-term selfish thinking and not long-term improvement. Creating a culture without fear is a slow process. It can happen through positive motivation and effective leadership & corporate policies. Managers should be sensitive to the impact that fear can have on their organisations.
  • 21. Deming – 14 Points for Management 9. Optimize Team Efforts: Barriers between individuals and departments lead to poor quality. This is often a result of internal competition. Teamwork helps break down barriers between internal customers and suppliers. Focus should be on meeting customer needs and improving processes as a means to achieving corporate goals.
  • 22. Deming – 14 Points for Management 10. Eliminate Exhortations: Motivate through trust and leadership than slogans. However, workers cannot improve solely from motivational methods without a system that enhances their performance. Where the environment constrains their output, they become frustrated and perform badly. Take the help of data-driven processes and better organizational design to drive improvement.
  • 23. Deming – 14 Points for Management 11. Eliminate Quotas and MBO: Numerical quotas encourage short-term behavior rather than long-term. Deming – goals are useful, but numerical goals set without incorporating a method to reach there, generate frustration and resentment. Where variations occur, strive to understand the reasons for variation, find means to improve rather than focus on short-term goals.
  • 24. Deming – 14 Points for Management 12. Remove barriers to pride in workmanship: Stop viewing workers as „commodities‟ Don‟t give them monotonous work with inferior machines, or material, or require them to report to supervisors who don‟t know the job. Empower workers with a sense of ownership of their work processes and show higher self- esteem.
  • 25. Deming – 14 Points for Management 13. Institute Education: Where training refers to job skills, education refers to self-development. Firms should develop value and self-worth of employees by investing in them. It is an effective method to motivate employees and is found to return many benefits. Educating employees must not be viewed as a cost.
  • 26. Deming – 14 Points for Management 14. Take Action: Cultural changes anywhere, starts with top management, and includes everyone. Changing an organizational culture may be met with resistance in many firms. This normally happens when traditional management practices are deeply ingrained into the organization's culture. Nevertheless, take appropriate action to imbibe change.
  • 27. The Juran Philosophy  Joseph M Juran joined the Western Electric in 1920s  Spent much of his tenure as a corporate industrial engineer  1951 – wrote and published „Quality Control Handbook‟, one of the most comprehensive books on quality.  1950s - He taught quality principles to Japanese, just after Deming  He was a principle force in their quality reorganisation
  • 28. The Juran Philosophy  Juran viewed quality on two levels; i. The mission of the firm as a whole is to achieve high product quality ii. The mission of each individual department in the firm is to achieve high production quality  Senior management must play an active leadership role in quality management process.  He believed that employees at different levels spoke different „languages‟.  Thus, to get management‟s attention, quality issues must be addressed through analysis of quality costs.
  • 29. The Juran Philosophy  Focus on conformance to specifications through  Elimination of defects and  Support by statistical tools  He defined quality as “fitness for use.” It consists of four parts  Quality of design  Quality of conformance  Availability  Field service
  • 30. The Juran Philosophy  Quality of design:  Focuses on market research, product concept and design specifications  Quality of conformance:  Includes technology, manpower and management  Availability:  Focuses on reliability, maintainability and logistical support  Field service:  Includes promptness, competence and integrity
  • 31. The Juran Philosophy  Juran prescribed the Juran Quality Trilogy consisting of  Quality planning – the process for preparing to meet quality goals  Quality control – the process of meeting quality goals during operations  Quality improvement – the process for breaking through to unprecedented levels of performance.
  • 32. The Juran Philosophy  Adopted top-down approach. It is management‟s responsibility to achieve quality  Emphasised on problem solving techniques  He advocated 10 steps to quality improvement: i. Build awareness of opportunities ii. Set goals for improvement in all areas of work iii. Organise to reach goals. iv. Carry out improvement projects to solve problems v. Provide training to people
  • 33. The Juran Philosophy vi. Give recognition for quality work vii. Report progress viii. Communicate results ix. Keep the score x. Maintain momentum of progress Based on these principles, Juran propagated a concept “Managing Business Process quality” by cross- functional quality improvement programs
  • 34. The Crosby Philosophy  Advocated by Philip B. Crosby, who was corporate vice president at International Telephone & Telegraph for 14 years.  He established the Philip Crosby Associates in 1979 to develop and offer training programs.  He authored several books, “quality without tears”, “quality is free”, etc that were easy for people to read.  He popularized the idea of the "cost of poor quality", that is, figuring out how much it really costs to do things badly
  • 35. The Crosby Philosophy  He believed that zero defects is not something that originates on the assembly line  Management must set the tone and atmosphere for employees to follow  Benefit - 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
  • 36. The Crosby Philosophy  Crosby's response to the quality crisis was the principle of "doing it right the first time" (DRIFT) which included four important principles 1) Quality is defined as conformance to requirements, not as 'goodness' or 'elegance'. 2) The system for causing quality is prevention, not appraisal. 3) The performance standard must be Zero Defects, not "that's close enough". 4) The measurement of quality is the Price of Non- conformance.
  • 37. The Crosby Philosophy  Zero Defects (ZD) Performance standard:  Theme – do it right the first time  Prevent defects, not find and fix them  People are conditioned to believe that error is inevitable… they not only accept but anticipate it!  Most human error is a result of lack of attention rather than lack of knowledge.  ZD standard – help to eliminate waste due to rework, scrap and repair
  • 38. The Crosby Philosophy  Basic elements of quality improvement: Determination, education and implementation.  Emphasis on management and organisational processes for changing corporate culture.  Crosby Philosophy fits well within existing organisational structures.  Like Deming, Crosby has also prescribed his 14 points of quality management, as follows;
  • 39. The Crosby Philosophy  14 principles for quality improvement – Crosby: i. Commitment of top management to quality ii. Team approach to quality improvement iii. Measure quality to identify improvement areas iv. System for measuring cost of quality v. Initiating corrective actions vi. Promoting quality awareness in the company vii. Planning „zero defect‟ programme
  • 40. The Crosby Philosophy viii. Organizing supervisory training for all levels ix. Setting goals for improvement x. Promoting work systems for performing error-free work xi. Observe zero-defects day to stress quality standards xii. Recognize those who meet their quality goals xiii. Constitute „quality councils‟ of quality professionals to share experiences, problems and solutions xiv. „Do it all over again‟ for improvement.
  • 41. Armand Feigenbaum‟s Philosophy  1950s – He recognized the importance of comprehensive approach to Quality  Coined the term “Total Quality Control”  Japanese adopted his concept and renamed it Company-wide Quality Control  Defines Total Quality as excellence-driven rather than a defect-driven concept  He viewed quality as a strategic business tool that requires involvement from everyone, and promoted the use of quality costs to measure and evaluate quality.
  • 42. Armand Feigenbaum‟s Philosophy  He believed that TQM is based on three core principles: customer focus, participation and teamwork, continuous improvement. Practices Principles Infrastructure Participation & Teamwork Tools & techniques
  • 43. Armand Feigenbaum‟s Philosophy  He observed that quality is directly influenced by 9 M‟s 1. Markets 2. Money 3. Management 4. Men 5. Materials 6. Machines 7. Modern information methods 8. Mounting product requirements 9. Motivation
  • 44. Armand Feigenbaum‟s Philosophy  Focus on TQM should be:  Satisfy customers better than competitors do  Compensate for weaknesses inherent in the culture  Use facilitation, mediate structure to imbibe change  Benchmark against best-of-breed companies  Use scientific methods, not opinion or gut-feel  All dealings to be based on sincerity and trust  Use customers and competitors to drive all decisions  Get the workforce to manage itself
  • 45. Armand Feigenbaum‟s Philosophy  Focus on TQM should be:  Build on continuous learning and improvement processes  Use technology effectively  Measure key parameters for all activities  Get people to perform mundane activities with a focus on quality  Emphasize process more than product  Turn employees from skill hoarders to disseminators  Use cross-functional teams
  • 46. Armand Feigenbaum‟s Philosophy  Key elements of quality control: a) Total quality control is a system for quality development b) The „control‟ aspect involves setting standards, appraising performance and taking corrective action c) Factors that affect quality can be divided into two categories; viz., technology and human d) Operating quality costs can be divided into four parts; prevention costs, appraisal costs, internal failure costs and external failure costs e) It is important to control quality at the source.
  • 47. Shewhart‟s Philosophy  Walter A Shewhart – Father of Quality  Deming learned „at the feet‟ of Shewhart.  Credit for TQM philosophy goes to two people, Shewhart, and his student, Deming.  Shewhart introduced the concept of Statistical Process Control which became the cornerstone for process control.  Statistical Process Control involves the use of a system to chart separately common causes and special causes of variation, and then remedy it
  • 48. Shewhart‟s Philosophy  For SPC to work effectively, the common cause variation needs to be really small relative to specification limits.  Control processes are hampered greatly by lack of information. SPC will aid managers to make scientific, efficient and economical decisions.  He developed Shewhart Cycle Learning and Improvement Cycle, combining creative thinking with statistical analysis.  The cycle contains 4 continuous steps: Plan, do, study, act. (The PDSA Cycle)
  • 49. Shewhart‟s Philosophy  The major contribution made by Shewhart is the PDSA cycle of management.  Plan what you want to do  Do what is planned  Study the results  Act – make corrections  Plan for improvements (start the cycle again)
  • 50. Shewhart‟s Philosophy  Another of his noteworthy contributions includes control charts; which is a fundamental tool of SPC.  Control chart is the graphical device which helps in identifying the variation in characteristics for improvement. It is the line chart with control limits  It helps to identify whether processes are operating consistently. Control charts have 3 components:  A centerline (the mathematical average of samples)  Upper and lower control limits defining constraints  Performance data plotted over time
  • 51. Shewhart‟s Philosophy Control charts – applications  To establish a state of statistical control  To monitor a process and signal when it goes out of control  To determine process capability The American Society for Quality presents a Shewhart Medal – for outstanding contribution to the science and techniques of quality control or for demonstrating leadership in the field of QC.