Module 2Philosophical frame work to TQM

Contribution of various gurus of TQM

Prominent contributors includeH.E. Dodge,H. G. RomigEdwards DemingJoseph M. Juran, Kaoru IshikawaPhilip Crosby

The Big ManW. Edwards Deming

Ph.D. in PhysicsWestern Electric in 1920’s, 30’s.WWII taught Quality Control for war effortIgnored after the warJapan wanted to learn from the US

Deming went to help with censusStarted teaching them quality control1951 Deming Prize for high level of achievement in quality

practices1980 NBC “If Japan Can…Why Can’t We?” US discovers

Interesting Facts

• 1900 - Born in Sioux City, Iowa• 1925 - met Dr. Walter Shewhart, • 1927 - received a Ph.D in Physics from Yale• 1939 – Head Mathematician – National Bureau

of Census• During WW II worked with Shewhart on

improvement of quality of production or weapons using statistical methods

• 1946 - Statistics professor – NY University • 1947 – invited by General MacArthur to come to

Japan as part of his economic and scientific staff in rebuilding Japan

• 1950 – invited to return to Japan by Japanese Union of Scientists and Mathematicians to teach methods for achievement of quality

• Jan. 1951 - began a series of lectures to every single top manager in Japan

• 1974 – meeting with William Conway• June 24, 1980 – NBC’s show If Japan Can… Why

Can’t We? aired to 14 million people – later became NBC’s most requested video of all time

Basic message:

• The cause of inefficiency and poor quality is the system, not the employees and it is management’s responsibility to correct the system in order to achieve desired results.

Message to Japanese Management

1. Production must be seen as a system encompassing customers and suppliers in a win-win situation.

– Customer is the most important part of the system– Suppliers are partners

2. Quality is made in the boardroom – never blame the workers.

3. Improving a process creates a chain reaction.4. Continuous learning and improvement follow the PCDA

(Shewhart) cycle.5. There is a need for trust and cooperation between

companies. Anything new learned in one company must be shared with all including competitors.

Reducing variability in production will improve quality.

• Two types of variation:– Common causes – Special causes

• Statistical control – a process needs to be in a stable state with identifiable action limits

Key Deming ToolsDeming did not teach statistical tools – he

taught how to interpret them and their implications to the system.

• Deming Chain Reaction• PDCA Cycle • Theory of Profound Knowledge & 14

Point Philosophy

“The control chart is no substitute for the brain.” – Dr. Deming

Deming Chain Reaction

“Quality improvement is not a costly business option but a strategic imperative that is essential to business survival”

Quality Cost Productivity

Chain ReactionImprove Quality

Provide jobs and more jobs

Costs decrease because of less rework, fewer mistakes, delays, better use of time &

materials

Productivity Improves

Stay in business

Capture market with better quality and price

Conveys the sequential and continual nature

Plan

Do

Check

Act

Plan

Do

Check

Act

Deming’s 14 Points

1. Create a vision and demonstrate commitment

2. Learn the New Philosophy3. Understand Inspection4. Don’t Buy on the Cost per Part Basis5. Improve Constantly and Forever6. Institute Training7. Institute Leadership

8. Drive Out Fear9. Optimize the Efforts of Teams10. Eliminate Exhortations11. Eliminate Numeric Quotas12. Remove Barriers to Pride in Workmanship13. Education & Self-Improvement14. Take Action

Deadly sins

1. Lack of constancy of purpose.2. Emphasis on short-term profits.3. Evaluation of performance, merit rating, or annual review.4. Mobility of management.5. Running a company on visible figures alone.6. Excessive medical costs for employee health care.7. Excessive costs of warrantees.

Joseph Juran

• Joined Western Electric in 1920s.• 1951 – Quality contol handbook• Taught quality principles to Japanese in 1950s

– Quality directed by senior management– Train whole mgt hierarchy in quality– Strive for evolutionary changes in Quality– Report progress to executive levels– Involve the workforce in quality– Quality part of reward/recognition structure

Views of Quality “Fitness for Use”

• Quality is related to:– Product performance that results in customer

satisfaction– Freedom from product deficiencies, which avoids

customer dissatisfaction• The mission of the firm is to:

– Achieve high design quality• The mission of each department is to:

– Achieve high conformance quality

Quality Trilogy

• Quality Planning – Preparing to meet quality goals

• Quality control– Meeting quality goals during operations

• Quality improvement– Breaking through to unprecedented levels of

performance

Juran’s Detailed Program

• Prove the need for improvement• Identify projects for improvement• Organize support for the projects• Diagnose the causes• Provide remedies for the causes• Prove remedies are effective under operating

conditions• Provide control to maintain improvements

Joseph M. Juran

• Juran’s Approach– Juran tends to take a more strategic and planning-

based approach to improvement than does Deming. – Juran promotes the view that organizational quality

problems are largely the result of insufficient and ineffective planning for quality.

• Key Contributions– Juran Trilogy– Control versus Breakthrough– Project-by-Project Improvement– Pareto Analysis

Joseph M. Juran

The Juran Trilogy:Three basic processes that are essential formanaging to improve quality.

Planning Improvement

Control

Joseph M. Juran

• Control versus Breakthrough– According to Juran, control is a process-related activity

that ensures processes are stable and provides a relatively consistent outcome.

• Control involves gathering data about a process to ensure that the process is consistent.

– Breakthrough improvement implies that the process has been studied and some major improvement has resulted in large, nonrandom improvement to the process.

– It is important to understand that control and breakthrough-related activities should occur simultaneously.

Joseph M. Juran

• Project-by-Project Improvement– Juran teaches that improvement in organizations is

accomplished on a project-by-project basis “and in no other way.”

– The project-to-project approach advocated by Juran is a planning-based approach to quality improvement.

– Managers must prioritize which project will be undertaken first based on financial return.

– This means that analysts must use the language of management, that is, money, in order to help determine which projects should be undertaken.

Joseph M. Juran

• Pareto Analysis– Joseph Juran identified an economic concept that he

applied to quality problems.– The economic concept is called Pareto’s law or the

80/20 rule.– Using Pareto’s law, we see that the majority of quality

problems are caused by relatively few causes.

Kaoru Ishikawa

• Ishikawa’s Primary Contributions– Perhaps Ishikawa’s greatest achievement was the

development and dissemination of the basic seven tools of quality (B7).

– As the developer of these tools, Ishikawa is credited with democratizing statistics.

– Ishikawa felt that to be successful, firms must make everyone responsible for statistical analysis and interpretation.

Kaoru Ishikawa

• Ishikawa’s Quality Philosophy– Ishikawa spent his life working to improve quality in Japan.– His ideas were synthesized into 11 points that made up his

quality philosophy.– Ishikawa is often overlooked in the U.S.; however, every

firm that pursues quality improvement will use his tools.

Genichi Taguchi

• The Taguchi method was first introduced by Dr. Genichi Taguchi to AT&T Bell Labs in 1980.

• Due to its increased acceptance and utilization, the Taguchi method for improving quality is now commonly viewed to be comparable in importance to the Deming approach, and the Ishikawa concept of total quality management.

• Unique Aspects of the Taguchi Method– Definition of quality– Quality loss function– Robust design

Genichi TaguchiThe Taguchi Method Provides

1.A basis for determining the functional relationship between controllable product or service design factors and the outcomes of a process.

2. A method for adjusting the mean of a process by optimizing controllable variables.

3.A procedure for examining the relationship between random noise in the process and product or service variability.

Genichi Taguchi• Definition of Quality

– In Taguchi’s terms, “ideal quality” refers to a reference point for determining the quality level of a product or service.

• Quality Loss Function– Normally, when specifications are set, a target is specified

with some allowance for variation. – Taguchi states that any deviation from target specs results in

loss to society produced.• Robust Design

– Products and services should be designed so that they are inherently defect free and of high quality.

• Quality is free– What costs money are the unquality things

• All the actions that involve not doing job right the first time

What does “quality is free” mean?

• A quality program can save a company more money than it costs to implement

• Profitability is best accomplished by reducing the cost of poor quality and preventing defects

• Cost savings include prevention, appraisal, and failure costs.

Thank you