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History of Quality The origins of quality movement
Evolution <ul><li>Earliest (“On the eighth day of May [1382]”) documented evidence of quality concern –  </li></ul><ul><li...
Evolution <ul><li>Cost of “thirteen quires of paper…(was)… six shillings and eight pence, as against a penny for ten eggs....
History of Quality <ul><li>B.C. era structures in India and Egypt show evidence of measurement and inspection. e.g. precis...
History of Quality <ul><li>Industrial Revolution changed this basic concept to  interchangeable parts . Likes of Thomas Je...
History of Quality <ul><li>Whitney disaster </li></ul><ul><li>In 1798, the US government awarded a two-year contract of su...
History of Quality <ul><li>Early twentieth century saw F.W. Taylor’s “scientific management” philosophy applied to product...
History of Quality <ul><li>The Bell story </li></ul><ul><li>Started an inspection department in its Western Electric Compa...
History of Quality <ul><li>Statistical approaches to quality control  started at Western Electric with the separation of i...
History of Quality <ul><li>Post-war period saw a massive shortage of consumer goods in US and the emphasis shifted from qu...
History of Quality <ul><li>World realizes the importance of quality -  ISO standards </li></ul><ul><li>Created by  Interna...
History of Quality <ul><li>“ The book” </li></ul><ul><li>Western managers did not focus on the “total quality” approach…. ...
History of Quality <ul><li>Slow moving giant: It took almost 20 years for Japanese industry to overtake western manufactur...
History of Quality <ul><li>Top managers in USA focused on marketing, production quantity and financial performance,  Japan...
History of Quality <ul><li>The western world woke up to the quality revolution – 1986 Challenger exploded killing all seve...
History of Quality <ul><li>Malcolm Baldrige award institutionalized in 1987 by US government. </li></ul><ul><li>Managers s...
Current and future challenges <ul><li>Current challenge: To ensure that managers don’t lose sight of the basic principles ...
Future challenges <ul><li>Partnerships </li></ul><ul><li>Learning systems </li></ul><ul><li>Adaptability and speed of chan...
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02 History Quality

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02 History Quality

  1. 1. History of Quality The origins of quality movement
  2. 2. Evolution <ul><li>Earliest (“On the eighth day of May [1382]”) documented evidence of quality concern – </li></ul><ul><li>A merchant named John Welburgham of Canterbury was fined six pence for selling two cooked fishes that were “rotten and stinking and unwholesome.” The fined was imposed by the Mayor of the town against the complaint by six citizens of the town. </li></ul><ul><li>Biggest reason for concern for quality: scarcity of resources. </li></ul><ul><li>Food production/productivity was less and starvation was a real possibility. Consumer goods, being handcrafted, were extremely expensive. </li></ul>
  3. 3. Evolution <ul><li>Cost of “thirteen quires of paper…(was)… six shillings and eight pence, as against a penny for ten eggs.” </li></ul><ul><li>Hence one bad quire of paper meant considerable loss. Imagine the plight of the merchant if the whole consignment was found lacking in quality! </li></ul><ul><li>Even today quality is equally important. </li></ul><ul><li>Loss of quality is invariably borne by the consumer, as the real costs of a quality failure are often out of proportion to the value of defective item. </li></ul>
  4. 4. History of Quality <ul><li>B.C. era structures in India and Egypt show evidence of measurement and inspection. e.g. precisely cut stones for pyramids, forts. </li></ul><ul><li>“ Quality” of those structures was due to consistent use of well-developed methods and procedures and precise measurement devices. Evidence of quality assurance . </li></ul><ul><li>Before Industrial Revolution, skilled craftsmen served both as manufacturers and inspectors, building quality into their products through their considerable pride in their workmanship . </li></ul><ul><li>During this time, quality assurance was informal. Efforts were directed to building quality into the final product. </li></ul>
  5. 5. History of Quality <ul><li>Industrial Revolution changed this basic concept to interchangeable parts . Likes of Thomas Jefferson and F. W. Taylor (“scientific management” fame) emphasized on production efficiency and decomposed jobs into smaller work tasks. Holistic nature of manufacturing rejected! </li></ul><ul><li>First recorded deviation from this production system was tried by French gunsmith Honore’ Le Blanc (Eighteenth century) – he developed interchangeable parts for manufacturing muskets to a standard pattern. </li></ul><ul><li>Thomas Jefferson brought this technology to US. </li></ul>
  6. 6. History of Quality <ul><li>Whitney disaster </li></ul><ul><li>In 1798, the US government awarded a two-year contract of supplying 10,000 muskets to Eli Whitney. </li></ul><ul><li>Whitney designed special machine tools and trained workers to make parts following a fixed design. </li></ul><ul><li>He underestimated the process variation. </li></ul><ul><li>It took him more than 10 years to supply the muskets! </li></ul>
  7. 7. History of Quality <ul><li>Early twentieth century saw F.W. Taylor’s “scientific management” philosophy applied to production processes. Under this, the work was split into small `jobs’ and workforce was trained to be master of those jobs. </li></ul><ul><li>Manufacturers were able to ship good parts, but at a very high cost. </li></ul><ul><li>Defects were present, but were removed via inspection. </li></ul><ul><li>Birth of separate “quality control” department. </li></ul><ul><li>Assigning the responsibility for quality to inspection department, the upper management focused instead on quantity and efficiency. </li></ul>
  8. 8. History of Quality <ul><li>The Bell story </li></ul><ul><li>Started an inspection department in its Western Electric Company in early 1900s to support Bell operating companies. </li></ul><ul><li>Through massive inspection efforts, achieved its reputation in the field of quality. </li></ul><ul><li>Employees of Western Electric were transferred to Bell Telephone Laboratories in 1920s. </li></ul><ul><li>Their goal – develop theories and methods for improving and maintaining quality. </li></ul>
  9. 9. History of Quality <ul><li>Statistical approaches to quality control started at Western Electric with the separation of inspection division. Pioneers like Walter Shewhart, George Edwards, W. Edwards Deming and Joseph M. Juran were all employees of Western Electric. </li></ul><ul><li>During the Second World War, US military started using statistical sampling and imposed stringent standards on suppliers. </li></ul><ul><li>Tie-up between US War Production Board and Bell Labs. </li></ul><ul><li>Importance for statistical quality control rose and gradually adopted throughout the manufacturing industry. </li></ul>
  10. 10. History of Quality <ul><li>Post-war period saw a massive shortage of consumer goods in US and the emphasis shifted from quality to quantity. Quality remained the area for the specialist, and managers started thinking about productivity, efficiency. </li></ul><ul><li>After World War II, under General MacArthur's Japan rebuilding plan, Deming and Juran went to Japan. </li></ul><ul><li>Deming and Juran introduced statistical quality control theory to Japanese industry. </li></ul><ul><li>The difference between approaches to quality in USA and Japan: Deming and Juran were able to convince the top managers the importance of quality . </li></ul>
  11. 11. History of Quality <ul><li>World realizes the importance of quality - ISO standards </li></ul><ul><li>Created by International Organization for Standardization (IOS) which was created in 1946 to standardize quality requirement within the European market. </li></ul><ul><li>IOS initially composed of representatives from 91 countries: probably most wide base for quality standards. </li></ul><ul><li>Adopted a series of written quality standards in 1987 (first revised in 1994, and more recently (and significantly) in 2000 ). </li></ul>
  12. 12. History of Quality <ul><li>“ The book” </li></ul><ul><li>Western managers did not focus on the “total quality” approach…. Almost all! </li></ul><ul><li>When Ford executives visited Japan in 1982, the Japanese managers told them that they learned the total quality principles from “the book.” </li></ul><ul><li>Turned out, the book was My Life and Work written by Henry Ford and Samuel Crowther in 1926. </li></ul><ul><li>Where Ford missed out, Japanese industry capitalized! </li></ul>
  13. 13. History of Quality <ul><li>Slow moving giant: It took almost 20 years for Japanese industry to overtake western manufacturer. </li></ul><ul><li>Widely reported cases </li></ul><ul><li>Hewlett-Packard report in 1980 about RAM chips from US and Japanese manufacturer. </li></ul><ul><li>Business Week report in 1987 on automobile industry – failure data per car. </li></ul><ul><li>Steel and banking industry realized the growing clout of Japanese manufacturers in the quality aspect. </li></ul>
  14. 14. History of Quality <ul><li>Top managers in USA focused on marketing, production quantity and financial performance, Japanese managers improved quality to an unprecedented level. </li></ul><ul><li>Market started preferring Japanese products and American companies suffered immensely. </li></ul>
  15. 15. History of Quality <ul><li>The western world woke up to the quality revolution – 1986 Challenger exploded killing all seven astronauts made everyone aware of the importance of quality. </li></ul><ul><li>Ford Motor Company consulted Dr. Deming to help transform its operations. </li></ul><ul><li>(By then, 80-year-old Deming was virtually unknown in USA. Whereas Japanese government had instituted The Deming Prize for Quality in 1950.) </li></ul><ul><li>The Xerox story - “Leadership Through Quality.” </li></ul><ul><li>1980 NBC telecast of a special program “If Japan can…why can’t we?” </li></ul>
  16. 16. History of Quality <ul><li>Malcolm Baldrige award institutionalized in 1987 by US government. </li></ul><ul><li>Managers started to realize that “quality of management” is more important than “management of quality.” Birth of the term Total Quality Management (TQM) . </li></ul><ul><li>Florida Power and Light the first non-Japanese company to be awarded Deming prize in 1989. </li></ul><ul><li>Early 1990s: Quality management principles started finding their way in service industry . FedEx, The Ritz-Carton Hotel Company were the quality leaders. </li></ul><ul><li>TQM recognized worldwide : Countries like Korea, India, Spain and Brazil are mounting efforts to increase quality awareness. </li></ul>
  17. 17. Current and future challenges <ul><li>Current challenge: To ensure that managers don’t lose sight of the basic principles on which quality management and performance excellence are based. </li></ul><ul><li>Former Xerox president David Kearns – “quality is a race without a finish line.” </li></ul><ul><li>A key challenge is to allocate the necessary resources to maintain a focus on quality, particularly in times of economic downturns. </li></ul><ul><li>Increasing awareness of quality will only increase the level of competition in the future. </li></ul>
  18. 18. Future challenges <ul><li>Partnerships </li></ul><ul><li>Learning systems </li></ul><ul><li>Adaptability and speed of change </li></ul><ul><li>Environmental sustainability </li></ul><ul><li>Globalization </li></ul><ul><li>Knowledge focus </li></ul><ul><li>Customization and differentiation </li></ul><ul><li>Shifting demographics. </li></ul>

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