W Edward Deming

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Dr.W.EDWARDDr.W.EDWARD DEMINGDEMING

Presented by,

Preethy Sara John,

S3 MBA



Quality: definitionQuality: definition

Bergman andBergman and KlefsjöKlefsjö, 1994), 1994)

´The quality of a product

(article or service)

is its ability to satisfy

the needs and expectations

of the customersµ



Quality: definitionQuality: definition

(ISO 8402/ISO 9000)(ISO 8402/ISO 9000)

´Quality is the totality of

features and characteristics

of a product or service

that bear on its ability to

satisfy stated or implied needsµ



Principles of Total QualityPrinciples of Total Quality1. A focus on customers and stakeholders,

2. A process focus supported by continuous

improvement and learning, and

3. Participation and teamwork by everyone in the

organization



Quality GurusQuality Gurus

yW Edwards Deming

y

Joseph Jurany Philip Crosby

y Shigeo Shingo

y

Kaoru Ishikaway Yoshio Kondo

y Taiichi Ohno



W Edwards DemingW Edwards Deming (1900(1900--1993)1993)

the key to quality: reducing variationthe key to quality: reducing variation

considered to be the Father of Modern Quality



W Edwards DemingW Edwards Deming

y Electrical Engineering,University of Wyoming,

1921

y PhD, Yale University

y US census statistician, 1939/40

y Teaching Shewhart methods, 1942




y invited to Japan after the war ....

y Quality,Productivity and Competitive Position, 1982

y Out of the Crisis, 1982-86

y British DemingAssociation, Salisbury




y regarded by the Japanese as the chief architect

of their industrial success

y ´all processes are vulnerable to loss of quality

through variation: if levels of variation are

managed, they can be decreased and quality

raisedµ

y quality is about people, not products




y Core element is the ́ management circleµ

planning

do/implementation

check /study

action

PDCA (or PISA) cycle

y Continuous improvement (Kaizen) teamwork and competence in problem

solving




y Out of the Crisis (1984)

having a satisfied customer is not enough

profit in business comes from

x repeat customers

x

customers that boast about your product and servicex customers that bring friends with them

necessary to anticipate customer needs



Deming philosophy synopsisDeming philosophy synopsis

y ´Dr. W. Edwards Deming taught that by adopting appropriate principles of

management, organizations can increase quality and simultaneously reduce costs.The

key is to practice continual improvement and think of manufacturing as a system, not

as bits and pieces.µ

y Dr.Deming's philosophy was summarized with the following 'a'-versus-'b'

comparison:

Quality = Results of work efforts

Total Costs

y (a)When people and organizations focus primarily on quality, defined by the

following ratio, quality tends to increase and costs fall over time.

y (b)When people and organizations focus primarily on costs, costs tend to rise and

quality declines over time.



The Deming System of ProfoundThe Deming System of Profound

KnowledgeKnowledge

System of Profound Knowledge, consisting of fourparts:

y Appreciation of a system: understanding theoverall processes involving suppliers, producers,

and customers (or recipients) of goods andservices

y K nowledge of variation: the range and causes of variation in quality, and use of statistical samplingin measurements

y Theory of knowledge: the concepts explainingknowledge and the limits of what can be known

y K nowledge of psychology : concepts of humannature.



Dr. W. Edwards Deming·sDr. W. Edwards Deming·s14 Points14 Points



Point 1:Create constancy of purposePoint 1:Create constancy of purpose

for continual improvement of products and servicefor continual improvement of products and service

Do you have clear goals for the organization communicated

to all employees?



Point 2:adopt the new philosophy created inPoint 2:adopt the new philosophy created in

Japan Japan

y How can everyone be empowered, feel a sense of

ownership and share in the company¶s success?



Point 3:cease dependence on mass inspectionPoint 3:cease dependence on mass inspection

build quality into the productbuild quality into the product

y With everyone participating our goals are to deliver perfect

quality to our customers



Point 4:end lowest tender contract:Point 4:end lowest tender contract:

require meaningful quality along with pricerequire meaningful quality along with price

y We want to develop long term beneficial

relationships with our suppliers.



Point 5:improve constantly and forever everyPoint 5:improve constantly and forever every

process for planning, production and serviceprocess for planning, production and service

y At all levels, everyone should be involved in continuous

improvement activities every single day.



Point 6:institute modern methods of training on the jobPoint 6:institute modern methods of training on the job

for all, including managementfor all, including management

y If all employees are learning and growing every day,

competition will be only a figment of our imagination.



Point7:adopt and institute leadership aimed at helpingPoint7:adopt and institute leadership aimed at helping

people do a better jobpeople do a better job

y The leaders select the music, set the tone and insure that

everyone is on board at every moment.



Point 8:drive out fear encourage effective twoPoint 8:drive out fear encourage effective two--way communicationway communication

y Ask your associates what they fear and then do whatever is

necessary to get rid of it.



Point 9:break down barriers between departments and staff Point 9:break down barriers between departments and staff

areas relationshipsareas relationships

y Find ways to open communications between suppliers,

customers and all employees.



Point 10:eliminate exhortations for the workforce they onlyPoint 10:eliminate exhortations for the workforce they only

create adversarialcreate adversarial

y Value is placed on doing and demonstrating.



Point 11: eliminate quotas and numerical targets substitute aidPoint 11: eliminate quotas and numerical targets substitute aid

and helpful leadershipand helpful leadership

y The method is balancing technology with people¶s needs and

aspirations and eliminating those non-value adding wastes.



Point 12: remove barriers to pride of workmanship includingPoint 12: remove barriers to pride of workmanship including

annual appraisals and management by objectivesannual appraisals and management by objectives

y Why come to work if it is not joyous?



Point 13:encourage education and self improvement forPoint 13:encourage education and self improvement for

everyone principleseveryone principles

y Ask and plan now for an ongoing continuous educational process to

help everyone become the best that they possibly can be.



Point 14:define top management permanent commitment to everPoint 14:define top management permanent commitment to ever

improving quality and productivity and their obligation toimproving quality and productivity and their obligation to

implement all theseimplement all these

y Ask Dr. Shingo would always say,

³DO IT!´



Seven Deadly DiseasesSeven Deadly Diseases

y Deming identifies seven deadly diseases that cause the decline of American

industry.

y The "Seven Deadly Diseases" include:-

y Lack of constancy of purpose

y Emphasis on short-term profits

y Evaluation by performance, merit rating, or annual review of performance

y Mobility of management

y Running a company on visible figures alone

y Excessive medical costs

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



The Deming CycleThe Deming Cycle



The Deming CycleThe Deming Cycle

y The Deming cycle, or PDSA cycle, is a continuous

quality improvement model consisting of a logical

sequence of four repetitive steps for continuous

improvement and learning: Plan, Do, Study (Check)

andAct.

y

TheP

DCA

cycle is also known as the DemingCycle, or as the DemingWheel or as the

Continuous Improvement Spiral.



PlanPlan

y The Plan stage is where it all begins. Prior to

implementing a change you must understand

both the nature of your current problem and

how your process failed to meet a customer

requirement.



DoDo

y The Do stage is the implementation of the

change. Identify the people affected by the change

and inform them that you·re adapting their

process due to customer complaints, multiple

failures, continual improvement opportunity,

whatever the reason, it is important to let them

know about the change.



StudyStudy

y The Study stage is where you·ll perform analysis

of the data you collected during the Do stage.

Measure the new processes and compare the

results against the expected results to ascertain

any differences.



ActAct

y The answers from the Study stage define your

tasks for theAct stage.

y Analyze the differences to determine their

cause.



Benefits of the PDCA cycleBenefits of the PDCA cycle

y daily routine management-for the individual and/or the team,

y problem-solving process,

y

project management,

y continuous development,

y vendor development,

y human resources development,

y new product development, and

y process trials.



Deming's achievementsDeming's achievementsContributions to Sampling

y Wrote one of the first books on survey sampling in 1950,

y One of the earliest writers to consider multiple factors that mightaffect the quality of survey estimates

y Quality in sample surveys draws on many ideas from Deming's

work on quality improvementStatistical Contributions to Business and Industry

y He was the leading analyst of data in the transportation industry.

y Deming was a powerful and tireless advocate for the use of statistical methods and thinking for quality improvement in businessand industry.

Contributions to Managementy Developed and disseminated a theory of management (i.e., System

of Profound Knowledge) that contributed materially to improvedperformance of enterprises in many countries,.



Deming PrizeDeming Prize

y The Deming Application Prize

Given to companies or divisions of companies that have achieved distinctive

performance improvement through the application of TQM in a designated year.

y The Deming Prize for Individuals

Given to individuals who have made outstanding contributions to the study of TQM

or statistical methods used for TQM, or individuals who have made outstanding

contributions in the dissemination of TQM.

y The Quality Control Award for Operations Business Units

Given to operations business units of a company that have achieved distinctive

performance improvement through the application of quality control/management in

the pursuit of TQM in a designated year.



CurrentWinnerCurrentWinner -- 20102010

Brent C. James, Institute for Health Care

Delivery Research, "Better: Dr.Deming

Consults on Quality for SirWilliam Osler"



Awards andAwards and HonoursHonours

y In 1960, the Emperor of Japan bestow on Dr.Deming the

Second Order Medal of the Sacred Treasure.

y In 1956, American Society for Quality Control awarded

him the Shewhart Medal

y In 1983, Dr.Deming received the Samuel S. WilksAward

from theAmerican StatisticalAssociation and election to

the NationalAcademy of Engineering.

y In 1987, President Reagan honored him with the NationalMedal of Technology.

y In 1988, the NationalAcademy of Sciences lauded him with

the Distinguished Career in Science award.

y In 1991, he was inducted into theAutomotive Hall of Fame.



"By what method?...Only the method counts."

-W.Edward Deming.

W Edward Deming

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