3. Deming Philosophy
Dr. W. Edwards Deming
1900-1993
Ph. D., (Physics)
Work: Taught Statistical Quality Control
USA/ Japan
Top management leadership
Customer supplier partnership
Continuous improvement
- Chain reaction theory (see Fig 3.1 Page 94)
1980: “If Japan Can Why Can’t We”
4. Philosophy of reducing variability
A System of Profound Knowledge
Basis of Deming’s 14 Points
1. Appreciation for a system
2. Understanding of variation
3. Theory of knowledge
4. Psychology
5. First Pillar of Deming Philosophy
System
When subsystems are interacting, parts of the system
can’t be managed in isolation.
Cross functional nature of processes should be
understood
All the processes should be aligned towards a
common vision and goal.
In the long run every stakeholder should be a
beneficiary of the system.
6. First Pillar of Deming Philosophy
Internal cooperation is the key to the
optimization of over all performance.
Performance of the individual
depends on many factors including
The training received
The information and resources provided
The leadership of supervisors and managers
Disruption on the job
Management policies and practices
The aim of any
system should
be for all
stakeholders-
stockholders,
employees,
customers,
community, and
the environment
- to benefit over
the long term.
7. 2nd Pillar of Deming Philosophy
Variation
Sources
Technology
Human behavior
Performance
Understanding
Reducing/ SQC
Higher productivity &
Customer satisfaction
8. 3rd Pillar of Deming Philosophy
Theory of Knowledge
No knowledge is possible without theory
Understanding the assumptions and theory
behind SQC tools is vital to applying
them correctly.
Using cook book approach, self-help books
and jumping on latest popular
approaches without understanding may
lead to disaster.
9. 4th Pillar of Deming Philosophy
Psychology
People differ from one another,
But all need love, dignity and esteem
Psychology helps us to understand people
People can be motivated extrinsically or intrinsically. The later
being more powerful.
Pay and fear are not the motivators.
10. Peter Scholtes on Impacts of knowledge
When people don’t understand systems
See events as individual incidents Ignore interactions and
interdependency
See symptoms Fail to understand deep rooted causes
Expect reaction only in a subsystem Can’t foresee the havoc generated in
another section
Blame Individuals Individuals have little or no ability
“It takes a whole village to raise a child”
11. Peter Scholtes on Impacts of knowledge
When people don’t understand variation
Fail to see trends
See trends where there are none
Have unrealistic expectations
Can’t make best of experiences
Can’t differentiate between prediction, forecasting and guessing
Credit/ blame non-deserving people
Cant differentiate between fact and opinion.
12. Peter Scholtes on Impacts of knowledge
When people don’t understand psychology
Don’t understand why people do what they do.
Fail to motivate and impair the relationships
Don’t understand the process of change and resistance
Revert to coercive approach
Create cynicism, demotivation guilt, resentment.
13. Peter Scholtes on Impacts of knowledge
When people don’t understand Theory of
Knowledge
Can’t plan, accomplish and improve.
Can’t differentiate improvement and change
Problems remain unsolved
14. Deming’s 14 Points
Point 1: Create vision, demonstrate commitment
Point 2: Learn new philosophy (customer satisfaction)
Point 3: Understand inspection
Point 4: Stop making decisions on the basis of cost
Point 5: Improve constantly and forever
Point 6: Institute training
Point 7: Institute leadership (guidance)
15. Deming Philosophy
Point 8: Drive out fear
Point 9: Optimize the effect of teams
Point 10: Eliminate exhortations
Point 11: Eliminate numerical quotas and MBO*
Point 12: Remove barriers to pride in workmanship
Point 13: Encourage education and self-Improvement
Point 14: Take action (change organizational culture)
*MBO: Management by Objectives
17. Dr. Joseph Juran
(1904- )
Industrial Engineer
Quality: Fitness for use
Improving quality by working
within the system
Conformance
(Customer satisfaction)
Using SQC
18. Juran Philosophy
Quality Trilogy
Quality planning: High design quality
- Identifying customers, (external & internal)
Quality control: meeting goals during operations
- reducing variation, establishing standards
Quality improvement: unprecedented levels of performance
- data analysis and action
19. Focusing on Customers
What to control?
1. Identifying & reducing sources of variation.
2. Establishing standards of performance.
3. Interpreting and taking action.
Juran gave a specified and detailed program
Fear can bring out the best in the people
20. PHILIP B CROSBY
PHILIP B CROSBY
(1926-2001)
Book: Quality is Free
Work: ITT
Philosophy
Absolutes of Quality Management
Basic elements of Improvement
21. CROSBY Philosophy
Absolutes of Quality Management
Quality means conformance, not elegance.
There is no such thing as quality problem.
- problems originate at functional departments not in quality department.
There is no such thing as economics of quality
-doing the things right first time is always cheaper
The only performance measurement is the cost of quality:
- which is the expense of non-conformance
The only performance standard is “Zero Defects (ZD)”
22. CROSBY Philosophy
ZD is not a motivational program.
- it is a performance standard.
Do it right the first time!
People are conditioned to believe that error is inevitable.
Most human errors are caused by lack of attention.
(Juran & Deming disagree on being perfect!)
Determination, education and implementation!
24. A.V. Feigenbaum
Dr. A.V. Feigenbaum
Book: Quality Control: Principles,
Practices and Administration
Work: General Electric
Philosophy: Total Quality Control
Quality is a Strategic business tool that requires
involvement from everyone in the organization.
25. Feigenbaum Philosophy
Total Quality Control
“… an effective system for integrating the quality
development, quality maintenance, and quality
improvement efforts of the various groups in the
organization so as to enable production and services
at the most economical levels which allow full
customer satisfaction”
‘Cost of quality’ should be used as a tool for
measurement and evaluation of quality.
26. Feigenbaum Philosophy
Three Steps to Quality
1. Quality Leadership
- sound planning, constant focus
2. Modern Quality Technology
- integration of modern technology
3. Organizational Commitments
- continuous training and motivation
27. Kaora Ishikawa
Kaora Ishikawa
( 1915 -1989)
Foremost figure in Japanese Quality
Professor of Engineering, Tokyo University
Editor: Quality Control for Foremen
Philosophy
Factual data, visual tools, statistical
tools are foundations of implementing
total quality.
28. Ishikawa Philosophy
1. Quality begins with Education and ends with
education
2. The first step in quality is to know the
requirements of the customers
3. The ideal state of Quality Control occurs when
inspection is no longer necessary
4. Remove the root cause and not the symptoms
5. Quality Control is the responsibility of all
workers and all divisions.
29. Kaora Ishikawa
6. Do not confuse means with the objectives
7. Put quality first and set your sights on long-term
profits
8. Marketing is the entrance and exit of quality
9. Top management must not show anger when facts
are presented by subordinates
10. 95% of problems in a company can be solved
with simple tools for analysis and problem
solving
11. Data without dispersion information are false
data.
31. Taguchi Philosophy
Taguchi Loss Function
“… that estimates the quality loss, expressed monetarily, that
results when quality characteristics deviate from the target values.
The cost of this deviation increases quadratically as the
characteristic moves farther from the target value”.
- Ducan, William, Total Quality Key Terms. p. 171
32.
33. .
Quality Gurus
Review
1. Which areas are vague?
2. Where is it unrealistic?
3. Is it a comprehensive model?
4. What are the strongest and most
useful aspects of the philosophy?
5. Similarities and differences
34.
35. Quality Management Awards
The Malcolm Baldrige National Quality Award
Stimulate American companies to improve quality
and productivity
Recognize the achievements
Establish guidelines and criteria
Provide specific guidance for high quality
36. The Criteria for Performance Excellence
Hierarchical set of categories
Hierarchical set of categories
1. Leadership
2. Strategic planning
3. Customer and market focus
4. Measurement, Analysis, & Knowledge Management
5. Human Resource Focus
6. Process Management
7. Business Results
39. Criteria Evolution
From To
Quality assurance, strategic
quality planning
Process management, overall
strategic planning
Current customers Current & future customers
Human resource utilization Human resource development
Supplier quality Supplier partnerships
Quality improvement activities Improvements in all key areas
Data analysis of quality efforts Integrated review of company
Financial performance (Business + customer +
financial + strategic)
Performance
40. ISO 9000: 2000
ISO 9000 Fundamentals/ vocabulary
ISO 9001 Requirements to obtain a third party certification
1. Management responsibility
2. Resource management
3. Product realization
4. Measurement, analysis, improvement
ISO 9004 Guidelines for performance improvement
Areas: Electronics, chemicals, health care, banking ….
41. ISO 9000: 2000
New Standards
1. Customer focus
2. Leadership
3. Involvement of people
4. Process approach
5. System approach to management
6. Continual improvement
7. Factual approach to decision making
8. Mutually beneficial supplier relationships
42. Six Sigma
Key Business processes
Focus on overall strategic objectives
Quantifiable measures defects/ million opportunities
Identify crucial metrics
Extensive training
Create highly qualified process improvement experts
Set stretch objectives for improvements
(Personal basis for champions)
43. Focusing on Customers
Potential areas
Waste reduction, solve equipment problems, create
capacity
Reduce cycle time in HR hiring
Improve forecast reliability, pricing strategies &
variation
Better understanding of customer needs
44. Focusing on Customers
Is it comprehensive?
Where is it vague?
Where is it unrealistic?
What are the strongest and most useful aspects of the philosophy?
Similarities and Differences with …
ISO 9000:2000 Standards