Quality Management Philosophies

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In this presentation, we will discuss quality management philosophies like Deming, Juran’s approach, Deming’s cycle, TQM triangle, Crosby’s philosophy, Kaizen’s philosophy, Taguchi’s Loss functions, Shigeo Shingo, Walter Shewhart.
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Quality Management Philosophies

  1. 1. Total Quality Management Chapter 3 Quality Management Philosophies Chapter3 1
  2. 2. Quality ManagementPhilosophies•Dr. W. Edwards Deming: (1900-1993) isconsidered to be the Father of Modern Quality•Dr. Deming preached that to achieve the highestlevel of performance requires more than a goodphilosophy the organization must change itsbehavior and adopt new ways of doing business.•Demings approach were amply summed up in hisfamous 14 Points Chapter3 2
  3. 3. Deming’s 14points onmanagementPoint 1: Create constancy of purpose towardimprovement of the product and service so as tobecome competitive, stay in business and providejobs.Point 2: Adopt the new philosophy. We are in anew economic age. We no longer need live withcommonly accepted levels of delay, mistake,defective material and defective workmanship.Point 3: Cease dependence on mass inspection;require, instead, statistical evidence that quality isbuilt in. Chapter3 3
  4. 4. Deming’s 14points onmanagementPoint 4: Improve the quality of incoming materials.End the practice of awarding business on the basisof a price alone. Instead, depend on meaningfulmeasures of quality, along with price.Point 5: Find the problems; constantly improve thesystem of production and service. There should becontinual reduction of waste and continualimprovement of quality in every activity so as toyield a continual rise in productivity and a decreasein costs. Chapter3 4
  5. 5. Deming’s 14points onmanagementPoint 6: Institute modern methods of training andeducation for all. Modern methods of on-the-jobtraining use control charts to determine whether aworker has been properly trained and is able toperform the job correctly. Statistical methods mustbe used to discover when training is complete. Point 7: Institute modern methods of supervision.The emphasis of production supervisors must be tohelp people to do a better job. Improvement ofquality will automatically improve productivity.. Chapter3 5
  6. 6. Deming’s 14points onmanagementManagement must prepare to take immediate actionon response from supervisors concerning problemssuch as inherited defects, lack of maintenance ofmachines, poor tools or fuzzy operationaldefinitions.Point 8: Fear is a barrier to improvement so driveout fear by encouraging effective two-waycommunication and other mechanisms that willenable everybody to be part of change, and tobelong to it. Chapter3 6
  7. 7. Deming’s 14points onmanagementFear can often be found at all levels in anorganization: fear of change, fear of the fact that itmay be necessary to learn a better way of workingand fear that their positions might be usurpedfrequently affect middle and higher management,whilst on the shop-floor, workers can also fear theeffects of change on their jobs.Point 9: Break down barriers between departmentsand staff areas. People in different areas such asresearch, design, sales, administration Chapter3 7
  8. 8. Deming’s 14points on managementand production must work in teams to tackle problemsthat may be encountered with products or service.Point 10: Eliminate the use of slogans, posters andexhortations for the workforce, demanding zero defectand new levels of productivity without providingmethods. Such exhortations only create adversarialrelationships.Point 11: Eliminate work standards that prescribenumerical quotas for the workforce and numericalgoals for people in management. Substitute aids andhelpful leadership. Chapter3 8
  9. 9. Deming’s 14points on managementPoint 12: Remove the barriers that rob hourlyworkers, and people in management, of their right topride of workmanship. This implies, abolition of theannual merit rating (appraisal of performance) and ofmanagement by objective.Point 13: Institute a vigorous program of education,and encourage self-improvement for everyone. Whatan organization needs is not just good people; itneeds people that are improving with education. Chapter3 9
  10. 10. Deming’s 14points onmanagementPoint 14: Top managements permanentcommitment to ever-improving quality andproductivity must be clearly defined and amanagement structure created that willcontinuously take action to follow the preceding13 points Chapter3 10
  11. 11. Quality ManagementPhilosophies Chapter3 11
  12. 12. Deming on management System of Profound Knowledge"When the student is ready the teacher will come."K1: Appreciation for a system (people + process) •a system is a network of interdependent components that work together to try to accomplish the aim of the system •interdependence, cooperation -- everyone must gain •obligation of a component is to contribute its best to the system •a system must have an aim, purpose, or mission -- a common goal Chapter3 12
  13. 13. Deming on managementThe whole company, as a system, must be managed •Management of a system requires knowledge of the interrelationships between all the components within the system and the people that work in it •a manager understands and conveys to his people the meaning of the system (mission and vision) and how the group supports these aims •a manager helps his team see themselves as components of the system, working toward achievement of the mission Chapter3 13
  14. 14. Deming on management K2: Knowledge about variation•Statistical Theory should be applied to managementof the system•need to determine if the "system" is stable or unstable•variation is predictable only in stable systems•need to set control limits to predict system behavior•control limits are calculated limits -- not specificationlimits, arbitrary goals, or quotas•a manager understands a stable system•each persons performance will reach a stable state•Half of the people are always above average, the otherhalf are below average! Chapter3 14
  15. 15. Deming on management•workers work within a system that -- try as theymight -- is beyond their control•Need to separate [even in your own measurementsystem]:•special causes of variation•those variations that are not part of the system ofcommon causes•identify if it can reoccur and eliminate it•can be assigned to a specific cause (rather thanrandom variation) Chapter3 15
  16. 16. Deming on management•usually corrected by someone who is directlyconnected with the process•show up on control charts as points outside thecontrol limits•common causes of variation•do not want to react to common causes (only makesthe system unstable)•react only to a minimum of 30 points outside thecontrol limits on a control chart•a fault of the system, usually has to be corrected bymanagement, but often identified by others Chapter3 16
  17. 17. Deming on management•variations inside the limits on control charts•Improvement of the Process...•should only occur after statistical control isachieved in a stable system (with no indication ofthe existence of a special cause, over a long periodof time)•change the process in attempt to:•narrow the variation•change is tested on a sample (statistics)•move the average closer to the optimum level orboth, Chapter3 17
  18. 18. Deming on management K3: Theory of knowledgemanagement = prediction•knowledge is built on theory, build an hypothesiswhich:•predict a future outcome•identifies risk of being wrong (confidence level)•must fit, without failure, with the observations ofthe past•without theory, we have nothing to revise, nothingto learn•there is no true value, effected by Chapter3 18
  19. 19. Deming on management•K4: Psychology•People are different from one another•A manager of people must be aware of thesedifferences•People learn in different ways and at differentspeeds•You can over reward and remove dignity•Rewarding only a few creates competition, ratherthan cooperation•abolish the merit system in your company; studythe capability of the system Chapter3 19
  20. 20. Deming on Quality1. Create constancy of purpose • Old way • no long-range plans ,insecurity • reactive rather than proactive • focus on quarter returns, profit • New way • a business role is not to make money, but to stay in business for the years to come • aim to become competitive, to stay in business, and to provide jobs by continual improvement of Chapter3 product and service 20
  21. 21. Deming on Quality1. continuous improvement of the right products (and/or the right type of service) in the right market• constancy of purpose means: innovate -- spend resources for long term planning vs. quick profits; no decisions about innovation will be made without a plan to answer the following what materials will be required, at what cost? • what will be the new method of production? Chapter3 21
  22. 22. Deming on Quality • what new people will have to be hired? • what change in equipment will be required? • what new skills will be required, and for how many people?,how will current employees be trained in these new skills? ,how will supervisors be trained? • what will be the cost of production? Chapter3 22
  23. 23. Deming on Quality • what will be the cost of marketing? • what will be the cost and methods of service? • how will the product or service be used by the customer?,how will the company know if the customer is satisfied?1. invest in research and education • customer research is an integral part of production • find out what the user thinks of it • why the non-users have not bought it Chapter3 23
  24. 24. Deming on Quality• establish -- knowing what to do• maintain -- doing your best to do it only top management can establish theconstancy of purpose necessary to know andmeet/exceed customers expectations• make policy ,establish a set of core values • adopt and publish the mission• set the long-term course • leadership [Quadrant II],fire prevention vs. fire fighting Chapter3 24
  25. 25. Deming on Quality 1. Adopt the new philosophy• Old way• a good manager is one who sets up a system, directs the work through subordinates, develops a basis to set standards of performance, and makes crisp and unambiguous assignments,in a monopoly, management can have greater earnings in spite of inefficiencies, therefore "supporting"• Managements belief that it knows how to run the business and make money -- this bears no relation to reality Chapter3 25
  26. 26. Deming on Quality • instead of improvement, there is a preoccupation with watching each other (comparing oneself agains another) • assume a step function model of loss• New way • customer-centric • looks after the need of the customers • dont accept poor quality, poor workmanship, or sullen service,negativism is unacceptable • sets a pattern of continuing improvement • creating operational definitions,use measurement 26 Chapter3
  27. 27. Deming on Quality• recognize that there is an economic loss for any deviation from target value • quality must become the new "religion" • we must believe in quality as we once believed in progress • defects are not free,customers dont often complain, they just switch ,customers who boast about the products bring in new business• transformation of management -- existing structures have to be dismantled Chapter3 27
  28. 28. Deming on Quality• Management must awaken to the challenge, must learn their responsibilities, and take on leadership for change1. Cease dependence on mass inspection Old way • inspect after the product is complete • difficult to determine where in the process the defect was produced • excessive waste (scrap, downgrading, rework) Chapter3 28
  29. 29. Deming on Quality• New way ,measurable • depend on small samples of product for control charts to achieve or to maintain statistical control • realize the process, the system • realize the variation in the system, and outcomes will vary even if all inputs are constant • realize that over control can increase variance and can be costly • do not manage the outcome by detecting defects Chapter3 29
  30. 30. Deming WheelThe Deming Wheel or Deming Cycle which is also knownas PDCA cycle is a problem solving process adopted bythe firms engaged in continuous improvements. Ne ve r en din g Im pro Act ve me Plan nt Check Do Chapter3 30
  31. 31. TQM Triangle The TQM needs three fundamental characteristics CommitmentInvolvement Chapter3 Scientific Knowledge 31
  32. 32. Juran’s ten step QualityImprovements Build Awareness for the need or opportunity Set goals for opportunity Organize people to reach goals Provide training throughout the organization Carry out projects to solve problems Report progress Give recognition Communicate results Keep score Maintain momentum Chapter3 32
  33. 33. Juran’s Definition of Quality Product performance that result in customer satisfaction Freedom from product deficiencies, summarized as fitness to useFitness for use result from five major product traitQuality of design Quality of ConformanceAvailability SafetyField use Chapter3 33
  34. 34. Juran’s Quality Trilogy process Quality Panning : Quality does not happen by accident, It needs proper planning Quality Control :determine what to control , establishing unit of measurements Quality Improvements :While Quality pursues the goal of maintaining existing level of quality habit pushes the firm onward to next higher level of quality Chapter3 34
  35. 35. Juran’s Quality Trilogy process Quality Panning Quality Quality implementation Control Chapter3 35
  36. 36. Universal Breakthrough SequenceJapans Universal Breakthrough Sequence identifies a set of actions directed towards achieving major leaps in quality. These steps are listed as follows Proof of need Project Identification Organization for improvements Diagnostic journey Remedial action Resistance to change Holding on to gain Chapter3 36
  37. 37. Crosby’s Philosophy Quality means conformance to requirements not elegance There is no such thing as a quality problem There is no such thing as the economics of quality. It is always cheaper to do the job right the first time The only performance measure is the cost of quality The only performance standard is zero Chapter3 37 defects
  38. 38. Crosby’s PhilosophyCrosby provides a holistic view of quality. Theroots of his philosophy can be found in thefollowing five absolutes of quality management:Quality means conformance to requirement andnot elegance;There is no such thing as quality problem;It is always cheaper to do things right the firsttime; The only performance measurement is thecost of quality Chapter3 38
  39. 39. Crosby’s Philosophy The only performance standard is zero defects.He has laid emphasis on prevention and zero defects as the only performance standards. He has put forth the 14 steps of implementing quality programs in an organization. To operationally the 14 steps program he has provided number of tools like Quality maturity grid `Make Certain Program `Management Style Evaluation‘ and `Quality39 Chapter3
  40. 40. Crosby’s PhilosophyCrosbys 14 steps to Quality are:Management CommitmentForm Quality Improvement TeamManagement PerspectiveDetermine Quality MeasuresEvaluate the Cost of QualityQuality AwarenessCorrective ActionAd hoc Committees and Zero Defect Programs Chapter3 40
  41. 41. Crosby’s PhilosophyTraining of Supervisors and ManagersZero Defect DayGoal SettingError cause removalRecognitionQuality CouncilsDo it over again Chapter3 41
  42. 42. Crosby’s PhilosophyMajor Components of Crosby’s quality Vaccine(Crosby Triangle) Integrity,PoliciesCommunication Systems ,operations Chapter3 42
  43. 43. Strengths &weakness ofCrosby’s Philosophy•Crosby’s approach is cleaner than those of Demingand Juran and is supported by number of tools•Work participation is recognized as having value•The Idea of Quality problem is rejectedWeakness•The philosophy implies that workers are to beblamed for quality problems.•Zero defect is often misunderstood to meanavoidance of risk and hence may have a negativeeffect on creativity Chapter3 43
  44. 44. Understanding Kaizen PhilosophyWhat is TQM Concept in Japan? TQM, also known as Total Quality Control(TQC), is a management tool for improving totalperformance. TQC means organized Kaizen activities involvingeveryone in a company managers and workers in atotally systemic and integrated effort towardimproving performance at every level. It is to lead to increased customer satisfactionthrough satisfying such corporate cross-functionalgoals as quality, cost, scheduling, manpower Chapter3 44development,
  45. 45. Understanding KaizenPhilosophyand new product development.In Japan, TQC activities are not limited to qualitycontrol only. Elaborate system of Kaizen strategieshas been developed as management tools within theTQC approach.TQC in Kaizen is a movement aimed atimprovement of managerial performance at alllevels.According to the Japan Industrial Standards,"implementing quality control effectivelynecessitates the cooperation of all people Chapter3 45
  46. 46. Understanding KaizenPhilosophy in the company, including top management, managers, supervisors, and workers in all areas of corporate activities such as market research and development, product planning, design, preparation for production, purchasing, vendor management, manufacturing, inspection, sales and after-sale services, as well as financial control, personnel administration, and training & education. Chapter3 46
  47. 47. Understanding KaizenPhilosophy Quality control carried out in this manner is called company-wide quality control or total quality control (TQC)." Quality control in Japan deals with quality of people. It is the fundamental concept of the Kaizen-style TQC. Building quality into its people brings a company a half-way towards producing quality products.. Chapter3 47
  48. 48. Understanding KaizenPhilosophyCase in Point Kaizen Time at CanonIn some Canon plants, the foremen are told to set aside the half-hour as Kaizen time time to do nothing but thinking improvement in the workshop. The foremen use this period to identify problems and work on Kaizen programs Factories are advised not to hold meetings during this 30-minute period, and foremen should not even answer the telephone then... Chapter3 48
  49. 49. Understanding KaizenPhilosophyCase in Point 14 TQM Slogans at PentelPentel is a Japanese firm manufacturing stationary products. The following is a list of 14 Pentels slogans for explaining Total Quality Management (TQM) and Quick and Easy Kaizen philosophy to its employees.• Build quality in upstream... Three Stages of the Suggestion System1. Encouragement. In the first stage, management should make every effort to help the workers provide suggestions, Chapter3 no matter how primitive 49
  50. 50. Understanding KaizenPhilosophyEducation and Training• As a natural follow-up to the concept of building quality into people, TQC starts with education and training of managers and workers. The major aim of these awareness and training programs is to implant TQC thinking in all employees.• TQC education and training is a continuous process. Separate courses for different organizational levels are organized to reach everyone in the company Chapter3 50
  51. 51. Understanding KaizenPhilosophy Main Differences between TQM Practices in Japan the WestJapan: The West: •deals with quality of •deals with quality of people products •customer-oriented •manufacturer-oriented •upstream •downstream •process-oriented, aimed at •product-oriented, aimed improving the total at detecting and performance eliminating defective •company-wide, parts everybodys responsibility •responsibility of quality control managers Chapter3 51
  52. 52. Understanding Kaizen Philosophy The Seven Main Features of the TQC Movement in Japan1.Company-wide TQC, involving all employees, organization,hardware, and software2.Emphasis on education and training for top management, middlemanagement and workers3.Quality control (QC) circle activities by small groups ofvolunteers4.TQC audits5.Application of statistical methods6.Constant revision and upgrading Chapter3 of standards 527.Nation-wide TQC promotion
  53. 53. Taguchis Loss Function Genichi Taguchis impact upon North Americanproduct design and manufacturing processes beganin November 1981. Ford Motor Company requested that Dr. Taguchimake a presentation. A different method of measuring quality is centralto Taguchis approach to design. Loss functionmeasures quality. The loss function establishes a financial measureof the user dissatisfaction with a productsperformance as it deviates from a target value. Chapter3 53
  54. 54. Taguchis Loss Function Thus, both average performance and variation arecritical measures of quality. Selecting a product designor a manufacturing process that is insensitive touncontrolled sources of variation improves quality. Dr. Taguchi calls these uncontrolled sources ofvariation noise factors. This term comes from earlyapplications of his methods in the communicationsindustry. Applying Taguchis concept entails evaluating boththe variance and the average for the technical benchmarking in QFD. Chapter3 54
  55. 55. Taguchis Loss Function The loss function provides a single metric forcomparison.How to Measure QualityTraditionally, quality is viewed as a step function asshown by the heavy line graph in the figure 1. Aproduct is either good or bad.This view assumes a product is uniformly goodbetween the specifications (LS the lower specificationand US the upper specification). The vertical axisrepresents the degree of displeasure the customer haswith the products performance. Chapter3 55
  56. 56. Taguchis Loss FunctionCurves A and B represent the frequencies of performance oftwo designs during a certain time period. B has a higherfraction of "bad" performance and therefore is less desirablethan A. figure 1 Chapter3 56
  57. 57. Taguchis Loss Function Sometimes traditional decision makers and thoseusing Taguchis loss function will make the samejudgments. If organizations consider both the position of theaverage and the variance, and if the averages areequal and/or the variances are equal, then thetraditional decision maker and one using Taguchisloss function will make the same decision. However, the traditional decision-maker calculatesthe percent defective over time when both the averageand variance are different. Chapter3 57
  58. 58. Taguchis Loss Function Chapter3 58
  59. 59. Taguchis Loss Function Taguchi believes that the customer becomesincreasingly dissatisfied as performance departsfarther away from the target. He suggests a quadratic curve to represent acustomers dissatisfaction with a productsperformance. The quadratic curve is the first term when the firstderivative of a Taylor Series expansion about thetarget is set equal to zero. The curve is centered on the target value, whichprovides the best performance in the eyes of the Chapter3 59customer.
  60. 60. Taguchis Loss Function Identifying the best value is not an easytask. Targets are sometimes the designers bestguess. LCT represents lower consumer tolerance andUCT represents upper consumer tolerance. This is a customer- driven design rather than anengineers specification. Experts often define theconsumer tolerance as the performance level where50% of the consumers are dissatisfied. Chapter3 60
  61. 61. Taguchis Loss Function Your organizations particular circumstance willshape how you define consumer tolerance for aproduct.The equation for the target-is-best loss function usesboth the average and the variance for selecting thebest design. The equation for average loss is: Chapter3 61
  62. 62. Taguchis Loss Function Calculating the average loss permits a design teamto consider the cost benefit analysis of alternatedesigns with different costs yielding different averagelosses. As seen in figure 2, there is some financial lossincurred at the upper consumer tolerance. This couldbe a warranty charge to the organization or a repairexpense. Most applications of the loss function in QFD canuse a value of 1 for k since the constant would be thesame for all competitors as it relates to the customer. Chapter3 62
  63. 63. Taguchis Loss FunctionIf two products have the same variance but differentaverages, then the product with the average that iscloser to the target (A) has better quality figure 3 Chapter3 63
  64. 64. Taguchis Loss FunctionFigure 4What if both average and variance aredifferent? Calculating the average loss assumes youagree with the concept of the loss function Chapter3 64
  65. 65. Taguchis Loss Function Taguchi’s approach can be broken down into a few different steps. These steps include problem formulation, experimental planning, experimental results and confirmation of the improvement. This is essentially a closed loop process as shown in figure 2. If the objective is not met, the procedure must begin again with modified parameters. Chapter3 65
  66. 66. Shigeo Shingo and TQM In terms of quality, Shingos paramountcontribution was his development in the 1960s ofPoka-Yoke and source inspection systems. These developed gradually as he realised thatstatistical quality control methods would notautomatically reduce defects to zero. The basic idea is to stop the process whenever adefect occurs, define the cause and prevent therecurring source of the defect. This is the principle ofthe JIT production system. No statistical sampling is therefore necessary. Chapter3 66
  67. 67. Shigeo Shingo and TQM A key part of this procedure is that sourceinspection is employed as an active part ofproduction to identify errors before they becomedefects. Error detection either stops production untilthe error is corrected, or it carries adjustment toprevent the error from becoming a defect. This occurs at every stage of the process bymonitoring potential error sources. Thus defects aredetected and corrected at source, rather than at a laterstage. Chapter3 67
  68. 68. Shigeo Shingo and TQM Following a visit to Yamada Electric in 1961,Shingo started to introduce simple, mechanicaldevices into assembly operations, which preventedparts from being assembled incorrectly andimmediately signaled when a worker had forgottenone of the parts. These mistake-proofing or Poka-Yoke deviceshad the effect of reducing defects to zero. In 1967 Shingo further refined his work byintroducing source inspections and improved Poka-Yoke systems Chapter3 68
  69. 69. Shigeo Shingo and TQM which actually prevented the worker from makingerrors so that defects could not occur.and thatworkers were more free to concentrate on morevaluable activities such as identifying potential errorsources. Having learned about and made considerable useof statistical QC in his 40s, it was some 20 yearslater, in 1977, that Shingo observed that theShizuoko plant of Matsushitas Washing Machine Chapter3 69
  70. 70. Shigeo Shingo and TQM Division had succeeded continuously for onemonth with zero defects on a drain pipe assemblyline with involvement of 23 workers. He realisedthat statistical QC is not needed for zero-defectoperations. This was achieved principally through theinstallation of Poka-Yoke devices to correct defectsand source inspection to prevent defects occurring.Together these techniques constitute Zero QualityControl. Chapter3 70
  71. 71. Walter Shewhart - The Grandfather of Total Quality Management The original notions of Total Quality Managementand continuous improvement trace back to a formerBell Telephone employee named Walter Shewhart. One of W. Edwards Demings teachers, he preachedthe importance of adapting management processes tocreate profitable situations for both businesses andconsumers, promoting the utilization of his owncreation -- the SPC control chart. Dr. Shewhart believed that lack of informationgreatly hampered the efforts of control andmanagement processes in Chapter3 a production environment. 71
  72. 72. Walter Shewhart - The Grandfather of Total Quality Management In order to aid a manager in making scientific,efficient, economical decisions,he developed StatisticalProcess Control methods. Many of the modern ideasregarding quality owe their inspiration to Dr.Shewhart. He also developed the Shewhart Cycle Learning andImprovement cycle, combining both creativemanagement thinking with statistical analysis. This cycle contains four continuous steps: Plan, Do,Study and Act. These steps (commonly referred to asthe PDSA cycle), Shewhart believed, ultimately lead to Chapter3 72total quality improvement.
  73. 73. Total Quality Management End Of Chapter 3 Chapter3 73
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