Deming's philosophy, kaizen, TQM principles, TQM gurus

1. Statistical Quality Control
Statistical Quality Control by- Grant and RS Leavenworth
Statistical Quality Control by- Douglas Montgomery
Total Quality Management by- Dale Besterfield
Statistical Quality Control by- Mahajan

2. Successful companies…..
Introduction
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Dept. of Mechanical
Engineering

3. Challenges before companies/Engineers…
Achieving PRODUCTIVITY
Introduction
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Dept. of Mechanical
Engineering
Achieving QUALITY

4. What is Quality ???
• Degree to which a set of inherent characteristics fulfils requirement [ISO 9000:2000]
• The American National Standards Institute (ANSI) and the American Society for
Quality (ASQ) define quality as: “The totality of features and characteristics of a
product or service that bears on its ability to satisfy given needs.”
• Quality means fitness for use
• Quality is inversely proportional to variability
• Fitness for use ……
Introduction
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Dept. of Mechanical
Engineering
QUALITY
Quality of
design
Quality of
conformance

5. What is Quality ???
 Perfection
 Consistency
 Eliminating waste
 Speed of delivery
 Compliance with policies
 Doing it right the first time
 Delighting or pleasing customers
 Service
• Suitability
• Reliability
• Durability
• Workability
• Affordability
• Maintainability
• Aesthetics
• Economical
• Versatility
• Satisfaction to customer
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5Introduction

6. Approaches of defining Quality ???
 Transcendent
 Product based
 User based
 Manufacturing based
 Value based
Introduction
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Dept. of Mechanical
Engineering

7. • Competition
• Changing customer
• Changing product mix
• Product complexity
• Higher levels of customer satisfaction
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Why Quality ???

8. • QC means observing the performance and comparing with standards and
take corrective measure if there is a deviation
• Quality improvement is the reduction of variability in processes and
products.
• Alternatively, quality improvement is also seen as “waste reduction”
• Quality control
▫ Establishing standards
▫ Ensuring conformance to the standards
▫ Corrective measures
▫ Preventive measures
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Engineering
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Quality control / Improvement

9. Quality Control / Improvement
• Quality Assurance
▫ This is the prevention of
defects before they happen
• Quality Control
▫ This is the detection of defects
after the event
Introduction
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Dept. of Mechanical
Engineering

10. What is Statistical Quality Control ???
• Statistical process control is a collection of tools that when used together
can result in process stability and variance reduction
Introduction
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Dept. of Mechanical
Engineering
 Designed to control quality standard of goods
produced for marketing.
 Exercise by the producers during production
to assess the quality of goods.
 Carried out with the help of certain statistical
tools like Mean Chart, Range Chart, P-Chart, C-
Chart etc.
 Designed to determine the variations in
quality of the goods & limits of tolerance.

11. Statistical Quality Control methods
• 100% inspection
• Acceptance sampling
• SQC (Control charts)
• Design of experiments
Introduction
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Dept. of Mechanical
Engineering

12. Different Quality Perspectives
Transcendent - “goodness of a product.” Shewhart’s transcendental definition of quality
– “absolute and universally recognizable, a mark of uncompromising standards and high
achievement.”
ExampleS: Rolex watches, Lexus cars.
Product based - “function of a specific, measurable variable and that differences in
quality reflect differences in quantity of some product attributes.”
Example: Quality and price perceived relationship.
User based - “fitness for intended use.”
Individuals have different needs and wants, and hence different quality standards.
Example – Nissan offering ‘dud’ models in US markets under the brand name Datson,
which the US customer didn’t prefer.
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Dept. of Mechanical
Engineering

13. Manufacturing based - “the desirable outcome of a engineering and manufacturing
practice, or conformance to specification.”. Engineering specifications are the key!
Example: Coca-cola – “quality is about manufacturing a product that people can depend
on every time they reach for it.”
Value based - “quality product is the one that is as useful as competing products and is
sold at a lesser price.”
US auto market – Incentives offered by the Big Three are perceived to be compensation
for lower quality.
Introduction
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Dept. of Mechanical
Engineering
Different Quality Perspectives

14. History of Quality methodology
To know the future, know the past!
• F. W. Taylor (Father of scientific management) emphasized on production efficiency and
decomposed jobs into smaller work tasks. Holistic nature of manufacturing is rejected!
• SQC was pioneered by Walter A. Shewhart at Bell Laboratories in the early 1920.
• 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.
• After World War II, under General MacArthur's Japan rebuilding plan, Deming and Juran
went to Japan.
• Deming and Juran introduced statistical quality control theory to Japanese industry (1940).
• The difference between approaches to quality in USA and Japan: Deming and Juran were
able to convince the top managers the importance of quality.
Introduction
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Dept. of Mechanical
Engineering

15. History of Quality methodology
• Next 20 odd years, when top managers in USA focused on marketing, production quantity
and financial performance, Japanese managers improved quality at an unprecedented rate.
• Market started preferring Japanese products and American companies suffered
immensely.
• America woke up to the quality revolution in early 1980s. Ford Motor Company consulted
Dr. Deming to help transform its operations.
(By then, 80-year-old Deming was virtually unknown in USA. Whereas Japanese government
had instituted The Deming Prize for Quality in 1950.)
• Today we are at Six Sigma conforming age ( 3.2 defect per million parts..!!!)
Introduction
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Dept. of Mechanical
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16. Total Quality Management
• It is the application of quantitative
methods and human resources to
improve all the processes within an
organization and exceed customer
needs now and in future.
Total Quality Management
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Dept. of Mechanical
Engineering

17. Total Quality Management
• It is the application of quantitative methods to
and human resources to improve all the
processes within an organization and exceed
customer needs now and in future.
• Principles and Practices
√ Management WILLINGNESS to
yield
√ Internal/ external customer FIRST
√ Human resource INVOLVEMENT
√ Continuously IMPROVE……..
√ 40-50% stake on SUPPLIERS
√ Uptime, absenteeism, customer
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Dept. of Mechanical
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TOTAL
QUALITY
MANAGEMENT
MANAGEMENT
INVOLVEMENT
&
LEADERSHIP
FOCUS ON
CUSTOME
R
EFFECTIVE
INVOLVEMENT
OF HUMAN
RESOURCES
CONTINOUOS
IMPROVEMENT
TREATING
SUPPLIERS
AS
PARTNERS
ESTABLISH
PERFORMANC
E MEASURES
Total Quality Management

18. Gurus of Quality Management
• Walter Shewhart, developed control chart theory, PDSA cycle theory. In 1931 he wrote a
book “Economic control of quality of manufactured product”
• W Edwards Deming, the best known of the “early” pioneers, is credited with popularizing
quality control in Japan in early 1950s. Today, he is regarded as a national hero in that
country and is the world’s best known quality expert.
• Joseph M Juran, like Deming was invited to Japan in 1954 by the union of Japanese
Scientists and engineers. Juran defines quality as fitness for use in terms of design,
conformance, availability, safety and field use. He focuses on top-down management and
technical methods rather than worker pride and satisfaction. In 1951 he published book
“Juran’s quality control handbook”
• Armand Feiganbaum urged QC is necessary to achieve productivity. He emphasized on
worker involvement and companywide QC
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Dept. of Mechanical
Engineering
Total Quality Management

19. • Philip Crosby: author of popular book “Quality is Free”. He argued “doing right at
the first time” is less expensive than cost of detecting and correcting
nonconformity. He focused on prevention of nonconformance.
• Kaoru Ishikawa, studied under Deming, Juran and Feigenbaum. Adopted TQM to
Japanese. Developed Cause and effect chain diagram and Quality circle concepts.
• Genichi Taguchi, developed Loss function concept. His philosophy built on
simplification and use of traditional Design of Experiments.
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Dept. of Mechanical
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Total Quality Management
Gurus of Quality Management

20. Benefits of TQM
• Greater customer loyalty
• Market share improvement
• Higher stock prices
• Reduced service calls
• Greater productivity
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Dept. of Mechanical
Engineering
Total Quality Management

21. Leadership
• “Leader is not ‘me’ but ‘we’ ; mission, not my show; vision not division; and
community, not domicile” -Bob eaten
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Dept. of Mechanical
Engineering
Leadership

22. Deming’s Philosophy
• Definition of quality, “A product or a service possesses quality if it helps
somebody and enjoys a good and sustainable market.”
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Dept. of Mechanical
Engineering
Improve quality Decrease cost
because of less
rework, fewer
mistakes.
Productivity improves
Capture the market
with better quality
and reduced cost.
Stay in
business
Long-term
competitive
strength
Leadership

23. 1. Create and publish to all employees a statement of the aims and
purposes of the company. The management must demonstrate their
commitment to this statement.
2. Learn the new philosophy.
3. Understand the purpose of inspection – to reduce the cost and improve
the processes.
4. End the practice of awarding business on the basis of price tag alone.
5. Improve constantly and forever the system of production and service.
6. Institute training
7. Teach and institute leadership.
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Dept. of Mechanical
Engineering
Leadership
Deming’s 14 point Philosophy

24. 8. Drive out fear. Create an environment of innovation.
9. Optimize the team efforts towards the aims and purposes of the
company.
10. Eliminate possesses for the workforce.
11. Eliminate numerical quotas for production.
12. Remove the barriers that rob pride of workmanship.
13. Encourage learning and self-improvement.
14. Take action to accomplish the transformation.
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Dept. of Mechanical
Engineering
Leadership
Deming’s 14 point Philosophy

25. 1. Lack of constancy of purpose
2. Emphasis on short-term profits
3. Evaluation of performance, merit rating, and annual reviews of performance
4. Mobility of top management
5. Running a company on visible figures alone
6. Excessive medical costs
7. Excessive legal damage awards
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Dept. of Mechanical
Engineering
Leadership
Deming’s Seven Deadly Diseases of Management

26. Customers’ perception of Quality
• Customers’ perception of quality
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Dept. of Mechanical
Engineering
Customers’ satisfaction
CUSTOMER
Frontline
representatives
Functional
operational areas
Senior
managers
CEO
CUSTOMERS’
NEED
(EXPECTATION)
Company offer

27. • Performance
• Features
• Service
• Warranty
• Price
• Reputation
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Dept. of Mechanical
Engineering
Customers’ satisfaction
Customers’ perception of Quality

28. Feedback
• Comment card
• Customer questionnaire
• Toll free telephone number
• Employee feedback
• Customer care
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Dept. of Mechanical
Engineering
Customers’ satisfaction

29. Maslow’s Hierarchy of needs
Self actualization
Esteem
Social
Security
Survival
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Dept. of Mechanical
Engineering
Employee involvement

30. Quality circle
• Teams of workers and supervisors that meet regularly to address work-related
problems involving quality and productivity.
• Developed by Kaoru Ishikawa at University of Tokyo.
• Became immediately popular in Japan as well as USA.
• Lockheed Missiles and Space Division was the leader in implementing Quality
circles in USA in 1973 (after their visit to Japan to study the same).
• Typically small day-to-day problems are given to quality circles. Since workers
are most familiar with the routine tasks, they are asked to identify, analyze and
solve quality problems in the routine processes.
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Dept. of Mechanical
Engineering
Employee involvement

31. Continuous Improvement
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Dept. of Mechanical
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Continuous Improvement

32. Pursue quality on two levels,
1. The mission of the firm as a whole is to achieve high product quality.
 Quality should be talked about in a language senior management
understands. money (cost of poor quality)
2. The mission of each individual department is to achieve high production
quality.
 At operational level, focus should be on conformance to specifications
through elimination of defects- use of statistical methods
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Dept. of Mechanical
Engineering
Leadership
Juran’s Trilogy

33.  Quality planning: Process of
preparing to meet quality goals.
Involves understanding customer
needs and developing product
features.
 Quality control: Process of meeting
quality goals during operations.
Control parameters. Measuring the
deviation and taking action.
 Quality improvement: Process for
breaking through to unprecedented
levels of performance. Identify
areas of improvement and get the
right people to bring about the
change.
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Dept. of Mechanical
Engineering
Leadership
Juran’s Trilogy

34. PDSA cycle
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Dept. of Mechanical
Engineering
Continuous Improvement

35. Kaizen
• Value added and non- value added work
• Muda(waste)  over production, delay, transportation, processing, inventory,
waste motion and defective parts
• Motion study and cell technology
• One piece flow
• Documentation
• 5-S  seiko - arrangement, seiton- orderliness, seiketso- personal cleanliness,
seiso- cleanup , and shitsuke- discipline
• Andon display boards
• Just In Time
• Poka- yoke
• Team dynamics
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Dept. of Mechanical
Engineering
Continuous Improvement