Deming's 14 Points on management philosophy focus on continuous improvement. The points emphasize constancy of purpose, adopting a new philosophy centered around customers, ceasing dependence on mass inspection and instead using statistical data to drive quality, improving processes and reducing waste. Deming saw management as prediction based on theory and understanding variation and human psychology. Juran emphasized quality planning, control and continual improvement. Crosby defined quality as conformance to requirements and advocated prevention and zero defects. Total Quality Management integrates philosophies like Kaizen which focuses on continuous incremental improvement through worker participation.

1. Total Quality Management
Chapter3 1
Chapter 3
Quality Management
Philosophies

2. Quality Management
Philosophies
Chapter3 2
•Dr. W. Edwards Deming: (1900-1993) is
considered to be the Father of Modern Quality
•Dr. Deming preached that to achieve the highest
level of performance requires more than a good
philosophy the organization must change its
behavior and adopt new ways of doing business.
•Deming's approach were amply summed up in his
famous 14 Points

3. Chapter3 3
Deming’s 14points on
management
Point 1: Create constancy of purpose toward
improvement of the product and service so as to
become competitive, stay in business and provide
jobs.
Point 2: Adopt the new philosophy. We are in a
new economic age. We no longer need live with
commonly accepted levels of delay, mistake,
defective material and defective workmanship.
Point 3: Cease dependence on mass inspection;
require, instead, statistical evidence that quality is
built in.

4. Deming’s 14points on
management
Chapter3 4
Point 4: Improve the quality of incoming materials.
End the practice of awarding business on the basis
of a price alone. Instead, depend on meaningful
measures of quality, along with price.
Point 5: Find the problems; constantly improve the
system of production and service. There should be
continual reduction of waste and continual
improvement of quality in every activity so as to
yield a continual rise in productivity and a decrease
in costs.

5. Deming’s 14points on
management
Chapter3 5
Point 6: Institute modern methods of training and
education for all. Modern methods of on-the-job
training use control charts to determine whether a
worker has been properly trained and is able to
perform the job correctly. Statistical methods must
be used to discover when training is complete.
Point 7: Institute modern methods of supervision.
The emphasis of production supervisors must be to
help people to do a better job. Improvement of
quality will automatically improve productivity..

6. Deming’s 14points on
management
belong to it.
Chapter3 6
Management must prepare to take immediate action
on response from supervisors concerning problems
such as inherited defects, lack of maintenance of
machines, poor tools or fuzzy operational
definitions.
Point 8: Fear is a barrier to improvement so drive
out fear by encouraging effective two-way
communication and other mechanisms that will
enable everybody to be part of change, and to

7. Deming’s 14points on
management
research, design, sales, administration
Chapter3 7
Fear can often be found at all levels in an
organization: fear of change, fear of the fact that it
may be necessary to learn a better way of working
and fear that their positions might be usurped
frequently affect middle and higher management,
whilst on the shop-floor, workers can also fear the
effects of change on their jobs.
Point 9: Break down barriers between departments
and staff areas. People in different areas such as

8. Chapter3 8
Deming’s 14points on
management
and production must work in teams to tackle problems
that may be encountered with products or service.
Point 10: Eliminate the use of slogans, posters and
exhortations for the workforce, demanding zero defec
and new levels of productivity without providing
methods. Such exhortations only create adversarial
relationships.
Point 11: Eliminate work standards that prescribe
numerical quotas for the workforce and numerical
goals for people in management. Substitute aids and
helpful leadership.

9. Deming’s 14points on
management
Chapter3 9
Point 12: Remove the barriers that rob hourly
workers, and people in management, of their right to
pride of workmanship. This implies, abolition of the
annual merit rating (appraisal of performance) and of
management by objective.
Point 13: 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.

10. Deming’s 14points on
management
Chapter3 10
Point 14: Top management's permanent
commitment to ever-improving quality and
productivity must be clearly defined and a
management structure created that will
continuously take action to follow the preceding
13 points

11. Quality Management
Philosophies
Chapter3 11

12. Deming on management
System of Profound Knowledge
Chapter3 12
"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

13. Deming on management
Chapter3 13
The 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

14. Chapter3 14
Deming on management
K2: Knowledge about variation
•Statistical Theory should be applied to management
of 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 specification
limits, arbitrary goals, or quotas
•a manager understands a stable system
•each person's performance will reach a stable state
•Half of the people are always above average, the other
half are below average!

15. Deming on management
Chapter3 15
•workers work within a system that -- try as they
might -- is beyond their control
•Need to separate [even in your own measurement
system]:
•special causes of variation
•those variations that are not part of the system of
common causes
•identify if it can reoccur and eliminate it
•can be assigned to a specific cause (rather than
random variation)

16. Deming on management
Chapter3 16
•usually corrected by someone who is directly
connected with the process
•show up on control charts as points outside the
control limits
•common causes of variation
•do not want to react to common causes (only makes
the system unstable)
•react only to a minimum of 30 points outside the
control limits on a control chart
•a fault of the system, usually has to be corrected by
management, but often identified by others

17. Chapter3 17
Deming on management
•variations inside the limits on control charts
•Improvement of the Process...
•should only occur after statistical control is
achieved in a stable system (with no indication of
the existence of a special cause, over a long period
of 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 or
both,

18. Deming on management
K3: Theory of knowledge
Chapter3 18
management = prediction
•knowledge is built on theory, build an hypothesis
which:
•predict a future outcome
•identifies risk of being wrong (confidence level)
•must fit, without failure, with the observations of
the past
•without theory, we have nothing to revise, nothing
to learn
•there is no true value, effected by

19. Deming on management
Chapter3 19
•K4: Psychology
•People are different from one another
•A manager of people must be aware of these
differences
•People learn in different ways and at different
speeds
•You can over reward and remove dignity
•Rewarding only a few creates competition, rather
than cooperation
•abolish the merit system in your company; study
the capability of the system

20. 20
Deming on Quality
1. 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 ofC
p
ha
rpo
terd
3 uct and service

21. Chapter3 21
Deming on Quality
1. 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?

22. Deming on Quality
Chapter3 22
• 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?

23. Deming on Quality
Chapter3 23
• 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

24. Deming on Quality
Chapter3 24
• establish -- knowing what to do
• maintain -- doing your best to do it
only top management can establish the
constancy of purpose necessary to know and
meet/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

25. Deming on Quality
Chapter3 25
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"
• Management's belief that it knows how to run the
business and make money -- this bears no relation
to reality

26. Deming on Quality
Chapter3 26
• instead of improvement, there is a preoccupation
with watching each other (comparing oneself again
another)
• assume a step function model of loss
• New way
• customer-centric
• looks after the need of the customers
• don't accept poor quality, poor workmanship, or
sullen service,negativism is unacceptable
• sets a pattern of continuing improvement
• creating operational definitions,use measurement

27. Deming on Quality
Chapter3 27
• 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 don't often
complain, they just switch ,customers who boast
about the products bring in new business
• transformation of management -- existing
structures have to be dismantled

28. Deming on Quality
Chapter3 28
• Management must awaken to the challenge, must
learn their responsibilities, and take on leadership for
change
1. 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)

29. Deming on Quality
Chapter3 29
• 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

30. Deming Wheel
The Deming Wheel or Deming Cycle which is also known
as PDCA cycle is a problem solving process adopted by
the firms engaged in continuous improvements.
Act
Check Do
Plan
Chapter3 30

31. Chapter3 31
TQM Triangle
The TQM needs three fundamental characteristics
Commitment
Scientific Knowledge
Involvement

32. Juran’s ten step Quality
Improvements
Chapter3 32
 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

33. Juran’s Definition of Quality
Chapter3 33
Product performance that result in customer
satisfaction
Freedom from product deficiencies, summarized
as fitness to use
Fitness for use result from five major product trait
Quality of Conformance
Safety
Quality of design
Availability
Field use

34. Juran’s Quality Trilogy process
Chapter3 34

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

35. Juran’s Quality Trilogy process
Quality Panning
Quality Quality
implementation Control
Chapter3 35

36. Universal Breakthrough Sequence
Japans 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. 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
defects Chapter3 37

38. Crosby’s Philosophy
Crosby provides a holistic view of quality. The
roots of his philosophy can be found in the
following five absolutes of quality management:
Quality means conformance to requirement and
not elegance;
There is no such thing as quality problem;
It is always cheaper to do things right the first
time; The only performance measurement is the
cost of quality
Chapter3 38

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 StyleCha
Epte
vr3
aluation‘ and `Quality39

40. Crosby’s Philosophy
Chapter3 40
Crosby's 14 steps to Quality are:
Management Commitment
Form Quality Improvement Team
Management Perspective
Determine Quality Measures
Evaluate the Cost of Quality
Quality Awareness
Corrective Action
Ad hoc Committees and Zero Defect Programs

41. Crosby’s Philosophy
Chapter3 41
Training of Supervisors and Managers
Zero Defect Day
Goal Setting
Error cause removal
Recognition
Quality Councils
Do it over again

42. Crosby’s Philosophy
Major Components of Crosby’s quality
Vaccine(Crosby Triangle)
Integrity,Policies
Chapter3 42
Communication Systems ,operations

43. Strengths &weakness of
Crosby’s Philosophy
Chapter3 43
•Crosby’s approach is cleaner than those of Deming
and Juran and is supported by number of tools
•Work participation is recognized as having value
•The Idea of Quality problem is rejected
Weakness
•The philosophy implies that workers are to be
blamed for quality problems.
•Zero defect is often misunderstood to mean
avoidance of risk and hence may have a negative
effect on creativity

44. Chapter3
Understanding Kaizen
Philosophy
44
What is TQM Concept in Japan?
 TQM, also known as Total Quality Control
(TQC), is a management tool for improving total
performance.
 TQC means organized Kaizen activities involving
everyone in a company managers and workers in a
totally systemic and integrated effort toward
improving performance at every level.
 It is to lead to increased customer satisfaction
through satisfying such corporate cross-functional
goals as quality, cost, scheduling, manpower
development,

45. Understanding Kaizen
Philosophy
Chapter3 45
 and new product development.
In Japan, TQC activities are not limited to quality
control only. Elaborate system of Kaizen strategies
has been developed as management tools within the
TQC approach.
 TQC in Kaizen is a movement aimed at
improvement of managerial performance at all
levels.
 According to the Japan Industrial Standards,
"implementing quality control effectively
necessitates the cooperation of all people

46. Understanding Kaizen
Philosophy
Chapter3 46
 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.

47. Understanding Kaizen
Philosophy
Chapter3 47
 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.
.

48. Understanding Kaizen
Philosophy
Chapter3 48
Case in Point Kaizen Time at Canon
In some Canon plants, the foremen are told to set
aside the half-hour as Kaizen time time to do
workshop. The foremen use this period
nothing but thinking improvement in the
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...

49. Understanding Kaizen
Philosophy
Case in Point 14 TQM Slogans at Pentel
Pentel is a Japanese firm manufacturing stationary
products. The following is a list of 14 Pentel's
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 System
1. Encouragement. In the first stage, management
should make every effort to help the workers
provide suggestions,C
n
ha
o
pter
m
3 atter how primitive 49

50. Understanding Kaizen
Philosophy
Chapter3 50
Education 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

51. Understanding Kaizen
Philosophy
Main Differences between TQM
Practices in Japan the West
Japan:
•deals with quality of
people
•customer-oriented
•upstream
•process-oriented, aimed at
improving the total
performance
•company-wide,
everybody's responsibility
The West:
•deals with quality of
products
•manufacturer-oriented
•downstream
•product-oriented, aimed
at detecting and
eliminating defective
parts
•responsibility of quality
control managers
Chapter3 51

52. Understanding Kaizen
Philosophy
Chapter3
5
2
5
2
The Seven Main Features of the TQC Movement in Japan
1.Company-wide TQC, involving all employees, organization,
hardware, and software
2.Emphasis on education and training for top management, middle
management and workers
3.Quality control (QC) circle activities by small groups of
volunteers
4.TQC audits
5.Application of statistical methods
6.Constant revision and upgrading of standards
7.Nation-wide TQC promotion

53. Taguchi's Loss Function
Chapter3 53
Genichi Taguchi's impact upon North American
product design and manufacturing processes began
in November 1981.
Ford Motor Company requested that Dr. Taguchi
make a presentation.
A different method of measuring quality is central
to Taguchi's approach to design. Loss function
measures quality.
The loss function establishes a financial measure
of the user dissatisfaction with a product's
performance as it deviates from a target value.

54. Taguchi's Loss Function
Chapter3 54
Thus, both average performance and variation are
critical measures of quality. Selecting a product desig
or a manufacturing process that is insensitive to
uncontrolled sources of variation improves quality.
Dr. Taguchi calls these uncontrolled sources of
variation noise factors. This term comes from early
applications of his methods in the communications
industry.
Applying Taguchi's concept entails evaluating both
the variance and the average for the technical bench
marking in QFD.

55. Taguchi's Loss Function
Chapter3 55
The loss function provides a single metric for
comparison.
How to Measure Quality
Traditionally, quality is viewed as a step function as
shown by the heavy line graph in the figure 1. A
product is either good or bad.
This view assumes a product is uniformly good
between the specifications (LS the lower specification
and US the upper specification). The vertical axis
represents the degree of displeasure the customer has
with the product's performance.

56. Taguchi's Loss Function
Curves A and B represent the frequencies of performance of
two designs during a certain time period. B has a higher
fraction of "bad" performance and therefore is less desirable
than A. figure 1
Chapter3 56

57. Taguchi's Loss Function
Chapter3 57
Sometimes traditional decision makers and those
using Taguchi's loss function will make the same
judgments.
If organizations consider both the position of the
average and the variance, and if the averages are
equal and/or the variances are equal, then the
traditional decision maker and one using Taguchi's
loss function will make the same decision.
However, the traditional decision-maker calculates
the percent defective over time when both the average
and variance are different.

58. Taguchi's Loss Function
Chapter3 58

59. Chapter3
Taguchi's Loss Function
59
Taguchi believes that the customer becomes
increasingly dissatisfied as performance departs
farther away from the target.
He suggests a quadratic curve to represent a
customer's dissatisfaction with a product's
performance.
The quadratic curve is the first term when the first
derivative of a Taylor Series expansion about the
target is set equal to zero.
The curve is centered on the target value, which
provides the best performance in the eyes of the
customer.

60. Taguchi's Loss Function
Chapter3 60
Identifying the best value is not an easy
task. Targets are sometimes the designer's best
guess.
LCT represents lower consumer tolerance and
UCT represents upper consumer tolerance.
This is a customer- driven design rather than an
engineers specification. Experts often define the
consumer tolerance as the performance level where
50% of the consumers are dissatisfied.

61. Taguchi's Loss Function
Your organization's particular circumstance will
shape how you define consumer tolerance for a
product.
The equation for the target-is-best loss function uses
both the average and the variance for selecting the
best design. The equation for average loss is:
Chapter3 61

62. Taguchi's Loss Function
Chapter3 62
Calculating the average loss permits a design team
to consider the cost benefit analysis of alternate
designs with different costs yielding different average
losses.
As seen in figure 2, there is some financial loss
incurred at the upper consumer tolerance. This could
be a warranty charge to the organization or a repair
expense.
Most applications of the loss function in QFD can
use a value of 1 for k since the constant would be the
same for all competitors as it relates to the customer.

63. Taguchi's Loss Function
If two products have the same variance but different
averages, then the product with the average that is
closer to the target (A) has better quality figure 3
Chapter3 63

64. Taguchi's Loss Function
Figure 4
What if both average and variance are
different? Calculating the average loss assumes you
agree with the concept of the loss function
Chapter3 64

65. Taguchi's 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. Shigeo Shingo and TQM
Chapter3 66
In terms of quality, Shingo's paramount
contribution was his development in the 1960s of
Poka-Yoke and source inspection systems.
These developed gradually as he realised that
statistical quality control methods would not
automatically reduce defects to zero.
The basic idea is to stop the process whenever a
defect occurs, define the cause and prevent the
recurring source of the defect. This is the principle of
the JIT production system.
 No statistical sampling is therefore necessary.

67. Shigeo Shingo and TQM
stage.
Chapter3 67
A key part of this procedure is that source
inspection is employed as an active part of
production to identify errors before they become
defects. Error detection either stops production until
the error is corrected, or it carries adjustment to
prevent the error from becoming a defect.
This occurs at every stage of the process by
monitoring potential error sources. Thus defects are
detected and corrected at source, rather than at a later

68. Chapter3
Shigeo Shingo and TQM
68
Following a visit to Yamada Electric in 1961,
Shingo started to introduce simple, mechanical
devices into assembly operations, which prevented
parts from being assembled incorrectly and
immediately signaled when a worker had forgotten
one of the parts.
These mistake-proofing or 'Poka-Yoke' devices
had the effect of reducing defects to zero.
In 1967 Shingo further refined his work by
introducing source inspections and improved Poka-
Yoke systems

69. Shigeo Shingo and TQM
Chapter3 69
which actually prevented the worker from making
errors so that defects could not occur.and that
workers were more free to concentrate on more
valuable activities such as identifying potential error
sources.
Having learned about and made considerable use
of statistical QC in his 40s, it was some 20 years
later, in 1977, that Shingo observed that the
Shizuoko plant of Matsushita's Washing Machine

70. Shigeo Shingo and TQM
Chapter3 70
Division had succeeded continuously for one
month with zero defects on a drain pipe assembly
line with involvement of 23 workers. He realised
that statistical QC is not needed for zero-defect
operations.
This was achieved principally through the
installation of Poka-Yoke devices to correct defects
and source inspection to prevent defects occurring.
Together these techniques constitute Zero Quality
Control.

71. Walter Shewhart - The Grandfather of Total
Quality Management
The original notions of Total Quality Management
and continuous improvement trace back to a former
Bell Telephone employee named Walter Shewhart.
 One of W. Edwards Deming's teachers, he preached
the importance of adapting management processes to
create profitable situations for both businesses and
consumers, promoting the utilization of his own
creation -- the SPC control chart.
Dr. Shewhart believed that lack of information
greatly hampered the efforts of control and
management processes in a production environment.
Chapter3 71

72. Walter Shewhart - The Grandfather of Total Quality
Management
72
In order to aid a manager in making scientific,
efficient, economical decisions,he developed Statistical
Process Control methods. Many of the modern ideas
regarding quality owe their inspiration to Dr.
Shewhart.
He also developed the Shewhart Cycle Learning and
Improvement cycle, combining both creative
management thinking with statistical analysis.
This cycle contains four continuous steps: Plan, Do,
Study and Act. These steps (commonly referred to as
the PDSA cycle), Shewhart believed, ultimately lead to
total quality improvement.
Chapter3

73. Chapter3 73
Total Quality Management
End Of
Chapter 3

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