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The Evolution of Quality Management

Total Quality Management – TQM Dr.-Ing. George Power

The Evolution of Quality Management

03/04/2013 2 Total Quality Management

Mass Inspection

Quality Control (Acceptance Sampling)

Quality Assurance

Total Quality Control

Company- wide Quality Control

Evolution of Quality Management

Mass Inspection Inspecting

Salvaging

Sorting

Grading

Rectifying

Rejecting

Quality Control Quality manuals

Product testing using SQC

Basic quality planning

Quality Assurance Emphasis on prevention

Proactive approach using SPC

Advance quality planning

Total Quality Control All aspects of quality of inputs

Testing equipment

Control on processes


Mass Inspection


Quality Assurance



Evolution of Quality Management (cont’d)

Company-wide Quality Control Measured in all functions

connected with production: R&D

Design

Engineering

Purchasing

Operations, etc.

Total Quality Management Measured in all aspects of

business

Top management commitment

Continuous improvement

Involvement & participation of employees


Mass Inspection


Quality Assurance



Scope of different quality concepts


Total Quality Management

Quality Assurance

Quality Control

Inspection


Evolution of quality concepts Im

pro

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ct q

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ity

1920 1940 1960 1980 2000

Inspection

Statistical Process Control

Statistical sampling

Improved designs

Quality through design

Integrated design and

manufacturing

Old concept of quality: Inspect for quality after production

New concept of quality: Build quality into the process. Identify and correct causes of

quality problems

Organizational quality focus

Customer-driven quality focus

Focus on profit and production quotas

Quality “Gurus” and their contribution

Name Main Contribution

Dr. Walter A. Shewhart • Contributed to understanding of process variability • Developed concept of statistical control charts

Dr. W. Edwards Deming • Stressed management’s responsibility for quality • Developed “14 points” to guide companies in quality

improvement

Dr. Joseph M. Juran • Defined quality as “fitness for use” • Developed concept of cost of quality

Dr. Armand V. Feigenbaum • Introduced concept of total quality control

Dr. Philip B. Crosby • Coined phrase “quality is free” • Introduced concept of zero defects

Dr. Kaoru Ishikawa • Developed cause-and-effect diagrams • Identified concept of internal customer

Dr. Genichi Taguchi • Focused on product design quality • Developed loss function


Walter A. Shewhart (1891 – 1967)

Often referred to as the “grandfather of quality control”

Worked as a statistician at Bell Labs during the 1920s and 1930s

Studied randomness and recognized that variability existed in all manufacturing processes

Developed quality control charts that are used to identify if the variability in the process is random or due to an assignable cause (operator, equipment, tools, etc.)

Also stressed that eliminating variability improves quality

His work created the foundation of today’s Statistical Process Control.


W. Edwards Deming (1900 – 1993)

Known as the “father of quality control”

Statistics professor at New York University in the 1940s

After Word War II he assisted many Japanese companies in improving quality

In recognition of his work, the Japanese established in 1951 the Deming Prize

Only 30 years later American companies began adopting Deming’s philosophy

He outlined his notions of quality in his famous 14 points

Deming stressed that quality problems are caused mainly by processes and systems, including poor management.


Deming’s “System of Profound Knowledge”

Appreciation of a system: Understanding the overall processes involving suppliers, producers, and customers (or recipients) of goods and services;

Knowledge of variation: The range and causes of variation in quality, and use of statistical sampling in measurements;

Theory of knowledge: The concepts explaining knowledge and the limits of what can be known;

Knowledge of psychology: Concepts of human nature.


Deming’s key principles (“14 Points”)


1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and stay in business, and to provide jobs.

2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.

3. Cease dependence on inspection to achieve quality. Eliminate the need for massive inspection by building quality into the product in the first place.

4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move towards a single supplier for any one item, on a long-term relationship of loyalty and trust.

5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.

6. Institute training on the job.

7. Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers.

Deming’s “14 Points” (cont’d)


8. Drive out fear, so that everyone may work effectively for the company.

9. Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service.

10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. The bulk of causes of low quality and low productivity belong to the system and thus lie beyond the work force.

11. Eliminate work standards (quotas) on the factory floor. Substitute leadership. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.

12. Remove barriers that rob the hourly worker, people in management and in engineering of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. Abolish the “annual or merit rating and management by objective.”

13. Institute a vigorous program of education and self-improvement.

14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.

Deming’s “Seven Deadly Diseases of Management”

1. Lack of constancy of purpose

2. Emphasis on short-term profits

3. Evaluation by performance, merit rating, or annual review of performance

4. Mobility of management

5. Running a company on visible figures alone

6. Excessive medical costs

7. Excessive costs of warranty, fueled by lawyers who work for contingency fees


“A Lesser Category of Obstacles”

Neglecting long-range planning

Relying on technology to solve problems

Seeking examples to follow rather than developing solutions

Excuses, such as "our problems are different"

Obsolescence in school that management skill can be taught in classes

Reliance on quality control departments rather than management, supervisors, managers of purchasing, and production workers

Placing blame on workforces who are only responsible for 15% of mistakes where the system desired by management is responsible for 85% of the unintended consequences

Relying on quality inspection rather than improving product quality.


The PDCA cycle

The Plan-Do-Check-Act (PDCA) cycle is a four-step management process used in business.

It is also known as the Deming (or Shewhart) circle, cycle or wheel, or Plan-Do-Study-Act (PDSA).


The PDCA management process

PLAN

Establish the objectives and processes necessary to deliver results in accordance with the expected output (the target or goals).

DO

Implement the new processes, often on a small scale if possible, to test possible effects. Collect data for charting and analysis for the following "CHECK" step.

CHECK

Measure the new processes and compare the results (collected in "DO" above) against the expected results (targets or goals from the "PLAN") to ascertain any differences. Charting data can make this much easier to see trends in order to convert the collected data into information needed for the next step "ACT".

ACT

Analyze the differences to determine their cause. Each will be part of either one or more of the P-D-C-A steps. Determine where to apply changes that will include improvement. When a pass through these four steps does not result in the need to improve, refine the scope to which PDCA is applied until there is a plan that involves improvement.


Joseph M. Juran (1904 – 2008)

20th century management consultant and author remembered as a preacher for quality and quality management

He developed the idea of trilogy:

Quality Planning

Quality Improvement

Quality Control

He stressed that conformance to specifications is necessary but not sufficient requirement of a product

The fitness for use by the consumer of the targeted market segment is an essential requirement in addition to conformance.


Juran’s Trilogy


Juran’s 10 Points

1. Build awareness of need and opportunities for improvement

2. Set goals for improvement

3. Organize the overall improvement program

4. Provide the training

5. Solve problems through project methodology

6. Report progress

7. Give recognition

8. Communicate results

9. Keep score

10. Institutionalize the improvement process


Armand V. Feigenbaum (b. 1922)

Quality control expert and businessman.

He devised the concept of Total Quality Control, later known as Total Quality Management (TQM), as an “effective system for integrating the quality development, quality maintenance, and quality improvement efforts of the various groups in an organization to achieve full customer satisfaction."

He also developed the concept of a "hidden" plant—the idea that so much extra work is performed in correcting mistakes that there is effectively a hidden plant within any factory.

Accountability for quality: Because quality is everybody's job, it may become nobody's job—the idea that quality must be actively managed from the highest levels of management.


Philip B. Crosby (1926 – 2001)

Businessman, consultant and author who contributed to management theory and quality management practices

He initiated the Zero Defects program at the Martin Company Orlando, Florida, plant

Crosby's response to the quality crisis was the principle of “doing it right the first time” (DIRFT). He would also include four major principles:

the definition of quality is conformance to requirements (requirements meaning both the product specifications and the customer's requirements)

the system of quality is prevention

the performance standard is zero defects

the measurement of quality is the price of nonconformance


Crosby’s quality points

Do it right the first time

Zero Defects

Quality is defined as conformance to requirements, not as 'goodness' or 'elegance'

The system for causing quality is prevention, not appraisal – Quality is Free

The performance standard must be Zero Defects, not “that's close enough”

The measurement of quality is the Price of Non-conformance, not indices.

Cost of quality is only the measure of operational performance

Management commitment

Quality improvement team

Quality measurement

Evaluation of cost of quality

Quality awareness

Corrective action

Establish committee for zero defect planning

Supervisor training

Zero Defect Day

Goal Setting

Error cause removal

Recognition


Kaoru Ishikawa (1915 – 1989)

Japanese university professor and influential quality management innovator best known for his cause-and-effect diagrams (also Ishikawa or “Fish Bone” diagrams)

Simplified statistical techniques for QC

Stressed the implementation of company-wide quality control, quality circles and shared vision

“Quality does not only mean the quality of product, but also of after sales service, quality of management, the company itself and the human life.”


Ishikawa’s Cause-and-Effect-Diagram


Ishikawa’s three sets of causes

8 M’s (in manufacturing)

Machine

Method

Materials

Man Power

Mother Nature

Measurement

Maintenance

Management

8 P’s (in services)

Price

Promotion

Process

Place/Plant

Policies

Procedures

Product (or Service)

4 S’s (in services)

Surroundings

Suppliers

Systems

Skills


Genichi Taguchi (b. 1924)

Japanese engineer and statistician. From the 1950s onwards, he developed a methodology for applying statistics to improve the quality of manufactured goods.

Key elements of his quality philosophy include:

Loss function, used to measure financial loss to society resulting from poor quality;

The philosophy of off-line quality control, designing products and processes so that they are insensitive (“robust”) to parameters outside the design engineer’s control; and

Innovations in the statistical design of experiments, notably the use of an outer array for factors that are uncontrollable in real life, but are systematically varied in the experiment.


Taguchi’s Loss Function

A quality product is a product that causes a minimal loss (expressed in money!) to society during it's entire life

The relation between this loss and the technical characteristics is expressed by the loss function


Traditional and Taguchi’s view of non-conformance

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