Total Quality Management

Case Study 1

A Note on Quality: The views of Deming, Juran and Crosby

Team MembersAdrien Sicard

Gautam Virdi

Mohammad Ali

Xizhi Ma

Guess who is he?

Crosby

Crosby

Oriented 'motivation'

Quality is 'FREE'.

  Cost of prevention is less than the cost of detection.

  The approach on individual improvement projects.

  Management maturity grid

  Emphasizes the motivation and planning.

  Approach (too) connected to leadership and

motivation, and does not rely enough on more accurate measurements.

Guess who is he?

Deming

Deming

Oriented 'production' (Making high volume products).

Statistical control of processes (identification of amount of defects → trends).

Problem Solving = Workers.

Model based on process improvement

Guess who is he?

Juran

Juran

Oriented 'costs'.

Incorporates the ideas of the client.

Quality pays by itself.

Ready to measure quantitatively but not by

technique.

Approach that emphasizes on people (Workers).

Model 'Cost Of Quality'. What to do with this model when the customer

expects anexpensivequality product?

1 a How does each define quality? Which view makes the most sense to

you? Why?

Deming Juran Crosby

Amount of defects Quantity of variations

'Fitness For Use "Design; Compliance; Security; Using in the

field. Incorporates the

customer’s point of view.

Meets requirements. Industry standards.

1c. Evaluation

SPC is a powerful tool to optimize the amount of information needed for use in making management decisions.

An excellent Cost of Quality (COQ) system can help point out the remaining improvement opportunities.

An effective Maturity Model helps to map current capabilities, create a baseline for measuring improvement, foster a culture of excellence and set the stage for organizational change

1c. Why are these techniques applied so seldom?

Lack of commitment from senior management

Lack of training and education in these techniques

Lack of awareness of the potential benefits of these techniques

Lack of knowledge on what to measure and how to measure in a certain process

Inadequate measurement system in place

1 d What management philosophy is implied by each approach?

Deming Juran CrosbyQuality initiatives must come from

senior management. Workers will produce

quality products.

The overall approach is emphasis on

process improvement.

Identify goals achieved by the

workers. Attitude Shift is

critical to improve quality.

The overall approach is emphasis on

people

Based on systems, and techniques and resolution measures

problems.Very little mention of

workers.

The overall approach is emphasis on

projects individual improvement

1f. Links among SPC, Breakthrough Projects, Control Sequence, annual quality

planning and COQ

• All require top management intervention

• All concentrate on bringing down the defects to least

possible figure

• All tools except the management maturity grid,

employ statistical approach and thus require its clear

understanding by the workers

Why doesn’t Crosby push SPC as hard as Deming or Juran?

• Crosby believed that the key to quality improvements

was changing top management’s thinking

• He emphasized prevention over detection and focused

on changing corporate culture rather than on analytical

or statistical tools.

Why doesn’t Deming argue for COQ measures?

• Deming’s perspective is customer driven

• Laid more stress on the statistical approach to get down the number of defects.

• Focused more on improving the quality of the product and customer services rather than financial aspect related to quality improvement

1 g How is improvement measured in each approach?

Deming Juran Crosby

Statistical control of processes ('Statistical

Process Control "- SPC) as a

troubleshooting problem tool.

Prepare to measured and quantify any of

Compliance risk injuries due to hazards of the product, up to

the cost of quality.

More interested in motivation instead of measures. However, it supports the need for a system measure of

quality.

1h. In what setting is each approach likely to be successful?

Management’s commitment towards quality improvement. Quality improvement team formation Instituting modern methods of training Quality measurement using SPC effectively. Cost of quality evaluation. Implementing corrective action. Zero defects planning. Individual improvement goal setting. Error-cause removal. Appraisal and recognition. Continuous and good communication between quality

personnel, team chairpersons and management. Continuous quality improvement.

1 i How is improvement measured in each approach?

The 3 experts propose plans that are difficult to implement

The leadership of senior management is essential

The inspection is never the answer to superior quality

1j. What type of Companies?

Slow rate of improvement

Low or no profitability

Bureaucracy or complexity of business processes continue to get worse and worse

Changes in one area tend to have disastrous effects in other areas

Management is running out of ideas on where to cut costs any further

2b. Why do all three experts regard top management leadership as so essential?

Implementing quality improvement involves large

investment in terms of money, expertise and money

2b. Is quality improvement different in fundamental

ways from other types of manufacturing improvement?

Yes, It is different!

It involves not just manufacturing improvement but also an improvement in industry’s working strategy and work ethics of all employees

2c. Why do all three experts reject inspection as a means of securing

superior quality?

They feel that inspection is equivalent to planning for defects. It comes too late and is ineffective and costly. Instead the processes should improve.

100% testing was inefficient, sampling techniques had been developed to provide a scientific basis on which to accept or reject production lots based on a limited number of units.

2c. Why is the idea of “quality as policeman” so hard to change?

Management must change from a preoccupation with short run to building for the long run.

There is a resistance to change and lack of awareness for other methods of improving quality. They do not realize that the need for inspection can be forgone.

2 d What are the blind-spots or weaknesses of each approach? The

strengths?

• Strengths and weaknesses each approach

Deming Juran Crosby

Excluded: Points on the market

ustomer needs Little attention to design

a product that will attract customers

Demonstrates an understandable

approach, except that company with products upscale (Mercedes) uses his COQ model ("Cost Of

Quality ')?

His approach is very (too) related to leadership and

motivation, and does not rely enough on more accurate measurements.

2 d What are the blind-spots or weaknesses of each approach? The

strengths?

Deming Juran Crosby

Control charts: When data techniques can

be recorded on products which are

produced in very large quantities

Cost of Quality ignores lost sales due to quality or porous competitors. Also, it

rarely included hidden costs

(inventory excessive capacity additional

production)

Management maturity grid is useful to establish a Project Quality Management to undertake. The grid invites general terms

and subjective answers.

• Values and limitations each of their approaches