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Evolution of the discipline “Quality”




                                        1
   Paradigm of “Quality” was different in different period
   Quality paradigms can be divided into 3 main
    categories:
      1. A pre-industrial paradigm of caveat emptor.
      2. An industrial paradigm of Quality Control.
      3. A post-industrial paradigm of Total Quality
         Management (TQM).


                                                          2
1800        1850        1900     1950         2000     2006 +



       Pre-industrial paradigm   Industrial   Post-industrial
                                 paradigm       paradigm




                                                                3
1. Pre-Industrial Paradigm of “caveat emptor”




                                                4
   The first paradigm of quality, starts from ancient times until industrial
    revolution; and is best described by “caveat emptor.”
   Caveat emptor is a principle; “that the buyer is responsible for checking
    the quality of goods he or she buys.”

   Primitive food gatherers learned with time which fruits were edible and
    which were poisonous.
   Primitive hunters learned with time which trees supplied the best wood
    for making bows or arrows.
   The resulting know how was then passed down from generation to
    generation.



                                                                                5
    According to 17 th centur y Economist Nicholas Barbon,

    “the qualities of goods are known by their colors, sound, smell, taste, make,
      or shape. The differences in qualities of goods are very difficultly
      distinguished; those organs that are proper judges of those differences, do
      very much disagree; some men have clearer eyes, some more have
      distinguishable ears, and others have nicer noses and tastes; and every
      man having a good opinion of his own faculties, it is hard to find a judge to
      determine which is best.”

          Quality was thought of as an instantaneous phenomena,
                       arising from the basic senses.

                                                                                      6
    Caveat emptor was not feasible in all situations. For more complex products
     it was not feasible for the consumer to observe quality prior to purchase.

    Mechanisms like : Punitive measures, trademarks and guilds were used to
     extend “caveat emptor” to situations where it was not feasible.

    Punitive actions were taken against those craftsmen or workers who
     produced poor quality work.

    For example: In Germany “ bakers who reduced the weight of bread, cakes,
     and pastry were punished by being locked up in a basket and lowered into
     the river in front of the whole town.”


                                                                              7
   “Myster y of Trade ”, became an important element in providing quality
    products. (Traders serves as an apprenticeship to learn the skills)
   The passing down of the procedural knowledge through an
    apprenticeship became a mainstream component.
   In many European countries Guilds were formed that formalized the
    profession and its embedded expertise.
   In China the names/marks of craftsmen, slaves, and officials were
    inscribed in weapons to ensure traceability of poor product.
   These marks became more than just tracers, however, they became a
    source of pride and when coupled with trades, they quite literally became
    “Trade marks” and were a source of great professional pride.




                                                                                8
2. Industrial Paradigm of “Quality Control”




                                              9
   Industrial revolution and the factory system gave rise to
    increased product and process complexity and hence
    difficulties with the Control of Quality .
   All aspects of organizational management evolved like: issues
    of complexity, control, motivation, separation of labor and
    management, piece pay compensation schemes, and
    eventually the system of scientific management system.




                                                                10
Scientific management

   Frederick W. Taylor father of scientific management.

   As Engineer with Midvale Steel in late 1800’s, he observed and
    identified following:
       1.   Problem of little standardization.
       2.   Unclear responsibilities.
       3.   No incentive/rewards for performance.
       4.   No training.




                                                                     11
       By 1911 he had developed these ideas into four key managerial
        principles:
          1.    Develop a science for each man’s work,
          2.    Train and develop the workman,
          3.    Hear tily cooperate with others, and
          4.    Divide work responsibility between labor and management.


       Taylor emphasized on :
           1.   Time study,
           2.   Standardization,
           3.   Compensation schemes, etc.



                                                                           12
   Organizational structures changed as a result of division of labor and
    management.
   Inspectors worked along with workers under Production Foreman.
   Since productivity was the first priority of the production foreman, quality
    suffered.
   Blame for poor quality was likely to go from the production foreman, and
    back to workers, thus making inspection an enemy of production.
   Much unfit material was delivered to military customers during World war I
    because of this structure, and many firms took the inspectors out of
    production’s control and put them under inspection foreman and a chief
    inspector.
          This was the beginning of the Quality Control department

                                                                 JURAN,1980
                                                                              13
   These revolutionary changes in the work environment led to a
    new paradigm of the “Quality discipline”- Paradigm of Quality
    Control.


   And the responsibility for controlling quality characteristics
    shifted from the consumer back to the producer, and it became
    systematized and functionalized.




                                                                     14
   The inception of Inspection Engineering department at Western
    Electric’s Bell Telephone Laboratories (Hawthorne Works) in 1924
    marked the beginning of a new era in the management of Quality.
   Among the department members were Walter Shewhart, Harold Dodge,
    George Edwards, Joseph Juran, and Harry Romig.
   This group gave following contributions to the practice of quality control
    and management:
      1.   Acceptance sampling,
      2.   Statistical Process control,
      3.   Responsibility of Management. (Edwards Coined the term
           “Quality Assurance” and advocated quality as par t of
           management's responsibility ).



                                                                             15
1929 to 1946


1929   Shewhart began the Joint Committee for the development of
       Statistical Applications in Engineering and Manufacturing.
1930   American Society for Testing Materials (ASTM) formed a
       committee on “Interpretation and presentation of data.”
1931   British Standards Institution was formed.
1935   British Standards Number 600 entitled “Application of
       Statistical methods to industrial standardization and Quality
       Control.”
1938   U.S Food, Drugs, and Cosmetics Act.
1941   Guide for Quality Control (Z1.1-1941), Control Charts
        methods for analyzing data (Z1.2-1941).
1942   Control Charts methods for controlling quality during production
       (Z1.3-1942), MIL-STD-105D                                      16
1929 to 1946


1943   Courses were established to teach military suppliers.
       A Stanford professor and key instructors in the program,
       estimated 7553 people for training ( 409,000 hours of
       instruction).
       31,000 students went through statistical quality control training.
1946   Formation of the American Society of Quality Control.
       (gathering of quality professionals)




                                                                      17
   The great influx of newly trained quality practitioners changed once again
    the organization structure designed to managed quality.

   New procedures, quality control manuals, in house statistical
    trainings, quality data systems, formal problem solving
    approaches, measurement standards, quality audits and
    quality reports.
   The carrying out of these new functions became the task of
    the “Quality Engineer”, and associated quality control
    department.




                                                                             18
      The Quality control department eventually gave way to the Quality
       Assurance department, which typically had elevated status and reported
       directly to the Vice President of manufacturing.

      One must cer tainly question why such wide-spread training
       and application of modern statistical methods did not have
       more impact on industr y?



“The Top Executives could usually not afford to attend an
    Eight day course on Statistics…”         Wareham and Stratton, 1991


                                                                            19
   W.Edwards Deming; student of Walter Shewhart, also
    observed the relative ineffectiveness of wartime training, and
    this became a theme in his later trainings.
   Juran states several reasons for the decline of Statistical
    quality Control in the 1950`s:
         The Control Chart applications were not appealing to upper
          management.
         When recession came, companies down sized their quality Control
          groups, which had been previously funded.




                                                                        20
Unfortunately,


     When the discipline began to evolve beyond
         the paradigm of Quality Control, the
     business Environment was not suppor tive of
           or ready for such development.
                                            JURAN




                                                   21
It's most impor tant that top-management be
statistics minded .

In the absence of sincere manifestations of
interest at the top, little will happen below……
                    JURAN




                                                  22
    There was also realization that the management of Quality
     of manufactured products require Quality Control of all
     functional areas of the organization.


    This gave Concept of “Total Quality Control” or TQC i.e.,
    “QUALIT Y IS EVERYBODY`S JOB IN A BUSSINESS ”



                                                                 23
3. Post-Industrial Paradigm of “TQM”




                                       24
   It was in Japan, where the seeds of the next paradigm
    were sewn most strongly.

   After World War II ,Japan's industry had to be built from
    the ground up.

   In 1950, JUSE(Japanese Union of Statistics and
    Engineer's) Managing Director “Kenichi Koyanagi”
    requested Deming, who had been in Japan
    several years, to deliver lectures concerning
    quality control methods and Statistical techniques.



                                                                25
   Deming's Courses included:

    1.   Training of Q.C Engineers and Statisticians in
         industry.
    2.   Several lectures for Top Management on the
         importance of Decision Making based on factual
         data.




                                                          26
It was here that Deming told them:


   “… You could Capture markets of the world over within 5
    years”.

              And as a result

    “they beat that prediction; and with in 4 years, buyers
    all over the world were screaming for Japanese
    products”.
                                                   WALTON,198
                                                   6

                                                              27
   Deming donated the royalties from publications of his
    Japanese lectures back to JUSE,where they were used to
    initiate the Deming prize in 1951.

   The purpose of Deming prize was to recognize those
    Companies that have successfully applied TQC based on
    Statistical Quality Control.
   JURAN was subsequently invited to Japan in 1954 , where he
    taught Managers, Engineers and Professors; the organizational
    structures and functions for management of quality.



                                                                28
   In 1962,the phenomena of “Quality Circles”
     which began in Japan is considered as an
     impor tant step in the revolution towards a new
    “Paradigm of Quality”




                                                       29
The purpose of “Quality Circles” was to gather a small
group of departmental workers together to spend time
solving departmental Quality problems.




                                                         30
In Japan, by 1966 there were 8000 registered Quality
Circles (QC) and some 200,000 by 1984

                                            JUSE;1985




                                                        31
   Japanese TQC was responsible for innovations like:
         Kanban system

         Just in time (JIT) manufacturing

         Zero Defects (ZD).

         Quality Function Deployment (QFD)

         Management By Objectives (MBO)




                                                         32
Japanese TQC represents the
third Paradigm of quality
discipline.




                              33
The rise of consumerism, and thus higher quality
requirements, began in the late 1960`s and had a profound
impact on the management of quality from the customer
Perspective.

                                             JURAN,1970




                                                            34
   Many companies found competitive success when
    quality dimensions were brought into consideration
    during the strategic planning process.
    Example in 1970`s, Xerox's share of the U.S copier market
    fell from 96% to 46 % due to Japanese Competitors.




                                                                35
       A new emphasis on benchmarking Competitors
        performance, attending to customer satisfaction, and focus
        on new product development helped regain Xerox's status
        as an industry leader.
       Thus, the new emphasis on “Strategic Quality Management”
        placed new demands on the organization in terms of:
         Market research
         Bench marking
         Life cycle costing
         Measurement of customer satisfaction.




                                                                36
As a nation we are just beginning to understand the power
 of “Quality as a competitive weapon”.

We are just beginning to fully realize that we are faced with never-
 ending spiral of increased competition and heightened customer
 expectation.
                                                    DAVID KEARNS
                                                      (XEROX)




                                                                       37
   An important event which crystallized Quality as a organizational
    strategy was the inception of Malcolm Baldrige National Quality Award
    (MBNQA) in USA and the subsequent development of National awards in
    Australia,France,Canada,Great Britain & Mexico.

   In 1988,the MBNQA has had several hundred corporate applicants, tens
    of thousands of companies have requested the application guidelines.

   Organizational “Quality Practices” become the benchmark
    requirement for supplier certification, star ted by Ford
    with the Q101 program and made famous by Motorola's
    request that all supplier's make plans for pursuing the
    MBNQA.


                                                                       38
   European Economic Community set forth organizational
    Quality system Standards which must be met in order for
    firms to access EEC’s markets.


   The ISO 9000 Series embodied comprehensive Quality
    Management concepts and guidance




                                                              39
Future of QUALITY? …What's
    Next??
   The constant improvement of Quality in a particular market segment
    makes it increasingly difficult for a firm to create new value with its
    products. In order to enhance competitive stance, companies have to
    focus on getting better at understanding the unarticulated needs of
    their customers, and develop solutions aimed at total value creation.

   Another way is “to broaden its scope and focus on the
    community/Society i.e., Green manufacturing efforts, and other
    Environmental health and safety programs/standards.”




                                                                              40

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Quality paradigm

  • 1. Evolution of the discipline “Quality” 1
  • 2. Paradigm of “Quality” was different in different period  Quality paradigms can be divided into 3 main categories: 1. A pre-industrial paradigm of caveat emptor. 2. An industrial paradigm of Quality Control. 3. A post-industrial paradigm of Total Quality Management (TQM). 2
  • 3. 1800 1850 1900 1950 2000 2006 + Pre-industrial paradigm Industrial Post-industrial paradigm paradigm 3
  • 4. 1. Pre-Industrial Paradigm of “caveat emptor” 4
  • 5. The first paradigm of quality, starts from ancient times until industrial revolution; and is best described by “caveat emptor.”  Caveat emptor is a principle; “that the buyer is responsible for checking the quality of goods he or she buys.”  Primitive food gatherers learned with time which fruits were edible and which were poisonous.  Primitive hunters learned with time which trees supplied the best wood for making bows or arrows.  The resulting know how was then passed down from generation to generation. 5
  • 6. According to 17 th centur y Economist Nicholas Barbon, “the qualities of goods are known by their colors, sound, smell, taste, make, or shape. The differences in qualities of goods are very difficultly distinguished; those organs that are proper judges of those differences, do very much disagree; some men have clearer eyes, some more have distinguishable ears, and others have nicer noses and tastes; and every man having a good opinion of his own faculties, it is hard to find a judge to determine which is best.” Quality was thought of as an instantaneous phenomena, arising from the basic senses. 6
  • 7. Caveat emptor was not feasible in all situations. For more complex products it was not feasible for the consumer to observe quality prior to purchase.  Mechanisms like : Punitive measures, trademarks and guilds were used to extend “caveat emptor” to situations where it was not feasible.  Punitive actions were taken against those craftsmen or workers who produced poor quality work. For example: In Germany “ bakers who reduced the weight of bread, cakes, and pastry were punished by being locked up in a basket and lowered into the river in front of the whole town.” 7
  • 8. “Myster y of Trade ”, became an important element in providing quality products. (Traders serves as an apprenticeship to learn the skills)  The passing down of the procedural knowledge through an apprenticeship became a mainstream component.  In many European countries Guilds were formed that formalized the profession and its embedded expertise.  In China the names/marks of craftsmen, slaves, and officials were inscribed in weapons to ensure traceability of poor product.  These marks became more than just tracers, however, they became a source of pride and when coupled with trades, they quite literally became “Trade marks” and were a source of great professional pride. 8
  • 9. 2. Industrial Paradigm of “Quality Control” 9
  • 10. Industrial revolution and the factory system gave rise to increased product and process complexity and hence difficulties with the Control of Quality .  All aspects of organizational management evolved like: issues of complexity, control, motivation, separation of labor and management, piece pay compensation schemes, and eventually the system of scientific management system. 10
  • 11. Scientific management  Frederick W. Taylor father of scientific management.  As Engineer with Midvale Steel in late 1800’s, he observed and identified following: 1. Problem of little standardization. 2. Unclear responsibilities. 3. No incentive/rewards for performance. 4. No training. 11
  • 12. By 1911 he had developed these ideas into four key managerial principles: 1. Develop a science for each man’s work, 2. Train and develop the workman, 3. Hear tily cooperate with others, and 4. Divide work responsibility between labor and management.  Taylor emphasized on : 1. Time study, 2. Standardization, 3. Compensation schemes, etc. 12
  • 13. Organizational structures changed as a result of division of labor and management.  Inspectors worked along with workers under Production Foreman.  Since productivity was the first priority of the production foreman, quality suffered.  Blame for poor quality was likely to go from the production foreman, and back to workers, thus making inspection an enemy of production.  Much unfit material was delivered to military customers during World war I because of this structure, and many firms took the inspectors out of production’s control and put them under inspection foreman and a chief inspector. This was the beginning of the Quality Control department JURAN,1980 13
  • 14. These revolutionary changes in the work environment led to a new paradigm of the “Quality discipline”- Paradigm of Quality Control.  And the responsibility for controlling quality characteristics shifted from the consumer back to the producer, and it became systematized and functionalized. 14
  • 15. The inception of Inspection Engineering department at Western Electric’s Bell Telephone Laboratories (Hawthorne Works) in 1924 marked the beginning of a new era in the management of Quality.  Among the department members were Walter Shewhart, Harold Dodge, George Edwards, Joseph Juran, and Harry Romig.  This group gave following contributions to the practice of quality control and management: 1. Acceptance sampling, 2. Statistical Process control, 3. Responsibility of Management. (Edwards Coined the term “Quality Assurance” and advocated quality as par t of management's responsibility ). 15
  • 16. 1929 to 1946 1929 Shewhart began the Joint Committee for the development of Statistical Applications in Engineering and Manufacturing. 1930 American Society for Testing Materials (ASTM) formed a committee on “Interpretation and presentation of data.” 1931 British Standards Institution was formed. 1935 British Standards Number 600 entitled “Application of Statistical methods to industrial standardization and Quality Control.” 1938 U.S Food, Drugs, and Cosmetics Act. 1941 Guide for Quality Control (Z1.1-1941), Control Charts methods for analyzing data (Z1.2-1941). 1942 Control Charts methods for controlling quality during production (Z1.3-1942), MIL-STD-105D 16
  • 17. 1929 to 1946 1943 Courses were established to teach military suppliers. A Stanford professor and key instructors in the program, estimated 7553 people for training ( 409,000 hours of instruction). 31,000 students went through statistical quality control training. 1946 Formation of the American Society of Quality Control. (gathering of quality professionals) 17
  • 18. The great influx of newly trained quality practitioners changed once again the organization structure designed to managed quality.  New procedures, quality control manuals, in house statistical trainings, quality data systems, formal problem solving approaches, measurement standards, quality audits and quality reports.  The carrying out of these new functions became the task of the “Quality Engineer”, and associated quality control department. 18
  • 19. The Quality control department eventually gave way to the Quality Assurance department, which typically had elevated status and reported directly to the Vice President of manufacturing.  One must cer tainly question why such wide-spread training and application of modern statistical methods did not have more impact on industr y? “The Top Executives could usually not afford to attend an Eight day course on Statistics…” Wareham and Stratton, 1991 19
  • 20. W.Edwards Deming; student of Walter Shewhart, also observed the relative ineffectiveness of wartime training, and this became a theme in his later trainings.  Juran states several reasons for the decline of Statistical quality Control in the 1950`s:  The Control Chart applications were not appealing to upper management.  When recession came, companies down sized their quality Control groups, which had been previously funded. 20
  • 21. Unfortunately, When the discipline began to evolve beyond the paradigm of Quality Control, the business Environment was not suppor tive of or ready for such development. JURAN 21
  • 22. It's most impor tant that top-management be statistics minded . In the absence of sincere manifestations of interest at the top, little will happen below…… JURAN 22
  • 23. There was also realization that the management of Quality of manufactured products require Quality Control of all functional areas of the organization.  This gave Concept of “Total Quality Control” or TQC i.e., “QUALIT Y IS EVERYBODY`S JOB IN A BUSSINESS ” 23
  • 24. 3. Post-Industrial Paradigm of “TQM” 24
  • 25. It was in Japan, where the seeds of the next paradigm were sewn most strongly.  After World War II ,Japan's industry had to be built from the ground up.  In 1950, JUSE(Japanese Union of Statistics and Engineer's) Managing Director “Kenichi Koyanagi” requested Deming, who had been in Japan several years, to deliver lectures concerning quality control methods and Statistical techniques. 25
  • 26. Deming's Courses included: 1. Training of Q.C Engineers and Statisticians in industry. 2. Several lectures for Top Management on the importance of Decision Making based on factual data. 26
  • 27. It was here that Deming told them: “… You could Capture markets of the world over within 5 years”. And as a result “they beat that prediction; and with in 4 years, buyers all over the world were screaming for Japanese products”. WALTON,198 6 27
  • 28. Deming donated the royalties from publications of his Japanese lectures back to JUSE,where they were used to initiate the Deming prize in 1951.  The purpose of Deming prize was to recognize those Companies that have successfully applied TQC based on Statistical Quality Control.  JURAN was subsequently invited to Japan in 1954 , where he taught Managers, Engineers and Professors; the organizational structures and functions for management of quality. 28
  • 29. In 1962,the phenomena of “Quality Circles” which began in Japan is considered as an impor tant step in the revolution towards a new “Paradigm of Quality” 29
  • 30. The purpose of “Quality Circles” was to gather a small group of departmental workers together to spend time solving departmental Quality problems. 30
  • 31. In Japan, by 1966 there were 8000 registered Quality Circles (QC) and some 200,000 by 1984 JUSE;1985 31
  • 32. Japanese TQC was responsible for innovations like:  Kanban system  Just in time (JIT) manufacturing  Zero Defects (ZD).  Quality Function Deployment (QFD)  Management By Objectives (MBO) 32
  • 33. Japanese TQC represents the third Paradigm of quality discipline. 33
  • 34. The rise of consumerism, and thus higher quality requirements, began in the late 1960`s and had a profound impact on the management of quality from the customer Perspective. JURAN,1970 34
  • 35. Many companies found competitive success when quality dimensions were brought into consideration during the strategic planning process. Example in 1970`s, Xerox's share of the U.S copier market fell from 96% to 46 % due to Japanese Competitors. 35
  • 36. A new emphasis on benchmarking Competitors performance, attending to customer satisfaction, and focus on new product development helped regain Xerox's status as an industry leader.  Thus, the new emphasis on “Strategic Quality Management” placed new demands on the organization in terms of:  Market research  Bench marking  Life cycle costing  Measurement of customer satisfaction. 36
  • 37. As a nation we are just beginning to understand the power of “Quality as a competitive weapon”. We are just beginning to fully realize that we are faced with never- ending spiral of increased competition and heightened customer expectation. DAVID KEARNS (XEROX) 37
  • 38. An important event which crystallized Quality as a organizational strategy was the inception of Malcolm Baldrige National Quality Award (MBNQA) in USA and the subsequent development of National awards in Australia,France,Canada,Great Britain & Mexico.  In 1988,the MBNQA has had several hundred corporate applicants, tens of thousands of companies have requested the application guidelines.  Organizational “Quality Practices” become the benchmark requirement for supplier certification, star ted by Ford with the Q101 program and made famous by Motorola's request that all supplier's make plans for pursuing the MBNQA. 38
  • 39. European Economic Community set forth organizational Quality system Standards which must be met in order for firms to access EEC’s markets.  The ISO 9000 Series embodied comprehensive Quality Management concepts and guidance 39
  • 40. Future of QUALITY? …What's Next??  The constant improvement of Quality in a particular market segment makes it increasingly difficult for a firm to create new value with its products. In order to enhance competitive stance, companies have to focus on getting better at understanding the unarticulated needs of their customers, and develop solutions aimed at total value creation.  Another way is “to broaden its scope and focus on the community/Society i.e., Green manufacturing efforts, and other Environmental health and safety programs/standards.” 40