Slide 3.1

Chapter 3

Quality Management Philosophies

Slide 3.2

Leaders in the Quality Revolution

W. Edwards Deming Joseph M. Juran Philip B. Crosby

W. Edward Deming Received a Ph.D. in physics and trained as a

statistician Worked for Western Electric in the 1920s and 30s After World War II helped Japan implement his

statistical quality control Deming became known in 1980 when the broadcast

program entitled If Japan Can…Why Can’t We? Credited with having the greatest influence on quality

management Quality philosophy focused on reducing uncertainty

and variability

Slide 3.3

W. Edward Deming cont…

Deming: stressed that the ultimate responsibility for

quality improvement lies with top management

estimated that 85 to 95 % of variation results from the system

maintained that the majority of poor quality in a system is caused by management

claimed that higher levels of quality lead to higher levels of productivity

Slide 3.4

Slide 3.5

Deming Chain Reaction

Improve quality

Costs decrease because of less rework and mistakes

Productivity improves

Capture market with better quality and lower price

Stay in business and provide more jobs

Slide 3.6

Deming’s System of Profound Knowledge

Appreciation for a system Understanding variation Theory of knowledge Psychology

Slide 3.7

Systems

A system is a set of functions or activities within an organization that work together for the aim of the organization.

Components must work together Management must optimize the system Every system must have a purpose

Slide 3.8

Variation Many sources of uncontrollable

variation exist (common causes) Special (assignable) causes of variation

can be recognized and controlled Failure to understand these differences

can increase variation in a system Taguchi philosophy seeks to minimize

variation around a target value

Slide 3.9

Sources of Variation in Production Processes

Materials

Tools

Operators Methods Measurement Instruments

HumanInspectionPerformance

EnvironmentMachines

INPUTS PROCESS OUTPUTS

Slide 3.10

Traditional View of Conformance to Specifications

No Loss LossLoss

Tolerance

0.500 0.5200.480

Slide 3.11

Theory of Knowledge

Knowledge is not possible without theory Experience alone does not establish a

theory, it only describes Theory shows a cause and effect

relationship that can be used for prediction

Slide 3.12

Psychology

Sincere trust and belief in people Understanding of how people work in

systems People are motivated intrinsically and

extrinsically; intrinsic motivation is the most powerful

Fear is demotivating Managers should develop pride and joy in

work

Slide 3.13

Deming’s 14 Points (Abridged) (1 of 2)

1. Create and publish a company mission statement and commit to it.2. Learn the new philosophy.

- Customer driven continuous improvement

3. Understand the purpose of inspection.- workers must be responsible for their work

4. End business practices driven by price alone.- Price has no meaning without quality

5. Constantly improve system of production and service.6. Institute training.

- Job specific training

Slide 3.14

Deming’s 14 Points (2 of 2)

7. Teach and institute leadership. 8. Drive out fear and create trust. 9. Optimize team and individual efforts.10. Eliminate exhortations for work force.11. Eliminate numerical quotas and M.B.O. Focus on improvement.12. Remove barriers that rob people of pride of workmanship.13. Encourage education and self-improvement.14. Take action to accomplish the transformation.

Slide 3.15

Deming Prize Instituted 1951 by Union of Japanese

Scientists and Engineers (JUSE) in Japan

Several categories including prizes for individuals, factories, small companies, and Deming application prize

American company winners– Florida Power & Light (first U.S. winner)

Joseph Juran

Industrial Engineer Joined Western Electric in the 1920s Authored The Quality Control Handbook

which often referred to as the quality bible Believed quality improvement should be

achieved through projects Focused on three major quality processes,

called the Quality Trilogy

Slide 3.16

Slide 3.17

Juran’s Quality Trilogy

Quality planning– Preparing to meet quality goals

Quality control– Meeting quality goals during operations

Quality improvement– Reaching unprecedented levels

of performance

Q.PQ.P

Q.C.Q.C. Q.I.Q.I.

Key Idea Juran proposed a simple definition of

quality: “fitness for use.” This definition of quality suggests that it

should be viewed from both external and internal perspectives; that is, quality is related to “(1) product performance that results in customer satisfaction; (2) freedom from product deficiencies, which avoids customer dissatisfaction.”

Slide 3.18

Philip B. Crosby

Corporate V.P. for quality at International Telephone

Authored book entitled Quality is Free Believed that zero defects is a realistic goal Defined the cost of quality as:

– Expense of nonconformance

Slide 3.19

Phillip B. Crosby

Quality is free . . .

“Quality is free. It’s not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.”

Slide 3.20

Philip B. Crosby’s Philosophy

Absolutes of Quality Management: quality means conformance to requirements

– Requirements must be clearly stated so they can’t be misunderstood

problems are functional in nature– Problems must be identified by those

individuals that cause them

Philip B. Crosby’s Philosophy cont…

there is no optimum level of defects– Doing the job right the first time is always cheaper

cost of quality is the only useful measurement– Quality cost data are useful to call problems to

management’s attention– Crosby estimated that most companies spend 15

to 20 percent of their sales dollars on quality costs

zero defects is the only performance standard

Slide 3.21