The DemingDeming Philosophy y About Dr. W.

Edwards
y Ph.D. in Physics and Statistician y Taught quality control courses

during World War II y Taught statistical quality control in Japan y Also taught the importance of top management leadership, customer/supplier partnerships, and continuous improvement in product development and manufacturing processes y Union of Japanese Scientists and Engineers established Deming Application Prize

Deming s 14 Points
1. Create and publish to all employees a statement of the aims and purposes of the company or other organization. The management must demonstrate constantly their commitment to this statement. 2. Learn the new philosophy, top management and everybody 3. Understand the purpose of inspection, for improvement of process and reduction of cost 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

Deming s 14 Points
8. Drive out fear. Create trust. Create a climate for innovation. 9. Optimize toward aims and purposes for the company the effort of teams, groups, staff areas 10. Eliminate exhortations for the workforce 11. (a) Eliminate numerical quotas for production. Instead, learn and institute methods for improvement. (b) Eliminate MBO (management by objective). Instead, learn the capabilities of processes and how to improve them. 12. Remove barriers that rob people of pride of workmanship. 13. Encourage education and self-improvement for everyone. 14. Take action to accomplish the transformation.

The Juran Philosophy

y About Joseph Juran y Born in Romania and came to US in y y y y y

1912 Joined Western Electric in 1920s Did most of the writing, editing, and publishing of the Quality Control Handbook Like Deming, taught quality principles to the Japanese in 1950s Unlike Deming, did not propose major cultural change in the organization Languages that people understood:
y Top Management dollars y Workers things y Middle Management dollars and

things

Quality Trilogy
y Quality Planning

the process of preparing to meet

quality goals y Quality Control the process of meeting quality goals during operations y Quality Improvement the process of breaking through to unprecedented levels of performance.

The Crosby Philosophy

y About Philip B. Crosby y Corporate vice president

International Telephone and Telegraph (ITT) y Authored Quality Is Free. Sold about 1 million copies

Crosby s Absolutes of Quality Management:

1. 2. 3. 4. 5.

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; doing the job right 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)

Comparisons of Quality Philosophies

y Quality Competitiveness in international markets y Top management commitment is important y Quality management practices will SAVE not COST y y y y

MONEY Responsibility Management. Not workers Need for continuous improvement Important: Customers & Strong Management/Worker Partnerships Recognizes difficulties in changing

Other Quality Philosophers

V. Feigenbaum manager of worldwide manufacturing and quality control at General Electric. Three Steps to Quality 1. Quality Leadership - sound planning rather than reaction to failures 2. Modern Quality Technology Need for integration of office staff, engineers, shop floor workers, to continually evaluate and implement new techniques. 3. Organizational Commitment Continuous traning and motivation of the entire workforce and integration of quality in business planning.

Other Quality Philosophers

y Kaoru Ishikawa professor of engineering at Tokyo University 1. Quality begins with education and ends with education. 2. The first step in quality is to know the requirements of customers. 3. The ideal state of quality control occurs when inspection is no longer
4. 5. 6. 7. 8. 9. 10. 11.

necessary. Remove the root cause, not the symptoms. Quality control is the responsibility of all workers and all divisions. Do not confuse the means with the objectives. Put quality first and set your sights on long-term profits. Marketing is the entrance and exit of quality. Top management must not show anger when facts are presented by subordinates. Ninety-five percent of problems in a company can be solved with simple tools for analysis and problem solving. Data without dispersion information (i.e. variability) are false data.

Other Quality Philosophers

y Genichi Taguchi

Japanese Engineer whose philosophy was strongly advocated by Deming, explained the economic value of reducing variation.

Quality Management Awards and Frameworks

The Malcolm Baldridge National Quality Award (MBNQA) y Focus of the Program:
1.

2.

3.

Helping American companies improve quality and productivity while obtaining competitive edge through increased profits Recognizing achievements of companies that improve quality to provide as example Providing guidance for other American enterprises that wish to learn how to improve quality of their goods and services

Criteria for Performance Excellence

1. 2. 3. 4. 5. 6. 7.

Leadership Strategic Planning Customer and Market Focus Measurement, Analysis, and Knowledge Management Human Resource Focus Process Management Business Results

Using the Baldrige Criteria

y The Baldrige Award criteria form a model for business

excellence in any organization manufacturing or service, large or small. y Companies use the Baldrige Criteria in different ways for self-assessment or internal recognition programs, even if they do not intend to apply for the award.

Impacts of the Baldrige Program

y The true benefactors are the customers and other

stakeholders who received better products and services.

International Quality Award Programs

y A. The Deming Prize y B. European Quality Award y C. Canadian Awards for Business y D. Excellence Australian Business Excellence Award y E. ISO 9000:2000

ISO 9000:2000 Quality Management Principles 1. Customer Focus

Leadership Involvement of People Process Approach System Approach to Management 6. Continual Improvement 7. Factual Approach to Decision Making 8. Mutually Beneficial Supplier Relationships
2. 3. 4. 5.

Implementation and Registration

y The ISO 9000 standards

originally were intended to be advisory in nature and to be used for two-party contractual situations (between customer and supplier) and for internal auditing. However, they quickly evolved into criteria for companies who wished to certify their quality management or achieve registration through a third-party auditor, usually a laboratory or some other accreditation agency. three years.

y Recertification is required every

Benefits of ISO 9000

y Using ISO 9000 as a

basis for quality system can improve productivity, decrease costs, and increase customer satisfaction.

Six Sigma
y The term Six Sigma is based

on a statistical measure that equates to 3.4 or fewer errors or defects per million opportunities. y This concept is facilitated through use of basic and advanced quality improvement and control tools by teams whose members are trained to provide fact-based decisionmaking information.

Evolution of Six Sigma

y Motorola pioneered the

concept of Six sigma as an approach to measuring product and service quality. Bill Smith, reliability engineer, originated the concept in the mid 1980s.

Motorola set the following goal in 1987:

y Improve product and services quality ten times by 1989,

and at least one hundred fold by 1991. Achieve six-sigma capability by 1992. With a deep sense of urgency, spread dedication to quality to every facet of the corporation, and achieve a culture of continual improvement to assure total customer satisfaction. There is only one goal: zero defects in everything we do.

Core philosophy of Six Sigma

1. 2. 3. 4. 5. 6. 7.

Think in terms of key business processes and customer requirements with a clear focus on overall strategic objectives. Focus on corporate sponsors responsible for championing projects, support team activities, help to overcome resistance to change, and obtain resources. Emphasize such quantifiable measures as defects per million opportunities (dpmo) that can be applied to all parts of an organization: manufacturing, engineering, administrative, software, and so on. Ensure that appropriate metrics are identified early in the process and that they focus on business results, thereby providing incentives and accountability. Provide extensive training followed by project team deployment to improve profitability, reduce non-value-added activities, and achieve cycle time reduction. Create highly qualified process improvement experts ( Green belts, black belts , and master black belts who can apply improvement tools and lead teams. Set stretch objectives for improvement.

y The efforts by General Electric brought significant media attention to y 1. 2. 3. 4.

the concept and made Six Sigma a popular approach to quality improvement. One of the key learnings GE discovered was that Six Sigma is not only for engineers. Welch observed the following: Plant Managers can use Six Sigma to reduce waste, improve product consistency, solve equipment problems, or create capacity Human resource managers need it to reduce cycle time for hiring employees Regional sales manager can use it to improve forecast reliability, pricing strategies, or pricing variation. Plumbers, car mechanics, gardeners can use it to better understand their customers needs and tailor their service offerings to meet customer wants.

Six Sigma as a Quality Framework

y In many ways, Six Sigma is the realization of many fundamental

concepts of total quality management . However, some of the contrasting features include: 1. TQM is based largely on worker empowerment and teams; Six Sigma is owned by business leader champions. 2. TQM activities generally occur within function, process or individual workplace 3. TQM training is generally limited to simple improvement tools and concepts; Six Sigma focuses on a more rigorous and advanced set of statistical methods and a structured problemsolving methodology DMAIC define, measure, analyze, improve, and control 4. TQM is focused on improvement with little financial accountability; Six Sigma requires a verifiable return on investment and focus on bottomline.