Philip Bayard "Phil" Crosby, (June 18, 1926 - August 18,

2001)

• businessman and author who contributed to management theory & quality management practices.

• Crosby initiated the zero defects program, Crosby was credited with a 25 percent reduction in the overall rejection rate and a 30 percent reduction in scrap costs

William Edwards Deming (October 14, 1900 – December

20, 1993)

• American, Statistician, author, lecturer and consultant.

• best known for his work in Japan. There, from 1950 onward, he taught top management how to improve design ,product quality, testing and sales .

• responded 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

• advocated that all managers need to have what he called a System of Profound Knowledge, consisting of four parts:

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

• 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.

14-steps for effective quality organization

1. Management is committed to quality. conforming products and services at the optimum price

2. Create quality improvement teams – with representatives from all workgroups and functions: These teams run the quality improvement program

3. Measure processes to determine current and potential quality issues: Communicate current and potential nonconformance problems in a manner that permits objective evaluation and corrective action.

• 1."Create constancy of purpose towards improvement". Replace short-term reaction with long-term planning.

2."Adopt the new philosophy". The implication is that management should actually adopt his philosophy, rather than merely expect the workforce to do so.

3."Cease dependence on inspection". If variation is reduced, there is no need to inspect manufactured items for defects, because there won't be any.

4."Move towards a single supplier for any one item." Multiple suppliers mean variation between feedstock's.

4. Calculate the cost of (poor) quality: Define the ingredients of the COQ and explain its use as a management tool.5. Raise quality awareness of all employees: Provide a method of raising the personal concern felt by all personnel in the company toward the conformance of the product or service and the quality reputation of the company. •6. Take actions to correct quality issues: Provide a systematic method of permanently resolving the problems

5."Improve constantly and forever". Constantly strive to reduce variation.

6."Institute training on the job".

If people are inadequately trained, they will not all work the same way, and this will introduce variation.

7."Institute leadership". Deming makes a distinction between leadership and mere supervision. The latter is quota- and target-based.

8."Drive out fear". Deming sees management by fear as

counter- productive in the long term, because it prevents workers from acting in the organization's best interests.

7. Monitor progress of quality improvement establish a zero defects committee

8. Train supervisors in quality improvement9. Hold zero defects days: Create an event that will let all employees realize through personal experience, that there has been a change. Zero Defects is a revelation to all involved that they are embarking on a new way of corporate life. Working under this discipline requires personal commitments and understanding. •10. Encourage employees to create their own quality improvement goals•11. Encourage employee communication with management about obstacles to quality (Error-Cause Removal

• 9."Break down barriers between departments". Another idea central to TQM is the concept of the 'internal customer', that each department serves not the management, but the other departments that use its outputs.

10."Eliminate slogans". Another central TQM idea is that it's not people who make most mistakes - it's the process they are working within. Harassing the workforce without improving the processes they use is counter-productive.

•12. Recognize participants’ effort: Appreciate those who participate•13. Create quality council•14. Do it all over again – quality improvement does not end: Emphasize that the quality improvement program never ends. There is always a great sign of relief when goals are reached. If care is not taken, the entire program will end at that moment. It is necessary to construct a new quality improvement team, and to let them begin again and create their own communications.

11."Eliminate management by objectives". Deming saw production targets as encouraging the delivery of poor-quality goods.

12."Remove barriers to pride of workmanship". Many of the other problems outlined reduce worker satisfaction.

13."Institute education and self-improvement".

14."The transformation is everyone's job".

Quality

• is conformance to requirements , not as goodness or elegance.

• It is management's job to set the requirements and communicate to employees.

• Quality is measured in monetary terms

• “the price of non- conformance

• Meeting and exceeding the customer's need and expectations and then continuing to improve.

• Continuous Improvement Deming Cycle

(Plan, Do, Study/Check, Act)

prevention as a means to achieving quality

• strategic planning • statistical analysis

Degree of Senior management involvement

• Quality improvement starts from the top.

• -Senior management is 100 percent responsible for the problems with Quality and their continuance.

• Quality is made in the board room.

Performance standard / Goal setting

• Performance standard must be zero defect, not that's close enough.

• Encourage individuals to establish improvement goals for themselves and their groups.

• Eliminate management by numbers , numerical goals. Substitute leadership

General approach

• The system for causing Quality is prevention , not appraisal.

• (The secret of prevention is to look at the process and identify opportunities for error)

Improvement basis

• Quality improvement is built on getting everyone to do it right the first time (DIRFT)

• -Quality improvement is

a process ,not a program , and it takes a long time for it to become a normal part of the scene.

• Put everyone in the company to work to accomplish the transformation. The transformation is every body's job.

• Repeated use of PDSA cycle.

Team work

• Create quality improvement teams – with representatives from all workgroups and functions

• Management must break down barriers between departments. Each department must see other department as internal customer , when this is practiced the barriers begin to fall.

Single sourcing of supply

• There should be a single supplier for any one item , on a long term relationship of loyalty and trust.

Cost of quality

• - Measurement of quality is the price of non conformance , not indexes.

• - Price of non conformance is by counting every thing

• that is spent if every thing was not done right the first time.

• Companies should look at the total cost of product or service provided by others , and not just the purchase price.

• Accepting the lowest bid does not guarantee the lowest total cost.

Training

• Orientation to the concepts and procedures of quality

• -Direct skill improvement

• -Continual quality data communications.

• Training should be given on the job.

• -Every one should be trained in basic statistical methods.

• - Training boosts morale because it provides workers with a greater sense of security and value and a lower stress level.

Quality awareness

• Share with employees the measurement of what nonconformity is costing to the company.

• Management must eliminate slogans , exhortations and targets asking for zero defects and new levels of productivity from the work force.

Recognition

• Individual recognition for those who meet their goals or perform outstanding acts.

• Abolish the annual merit or rating system. Instead leader should learn who is in need of individual help , whose work processes show extra good performance. Improve the system and shrink the difference between the people that belong to the system.

Company culture

•The culture of the company is going to

change only when all employees absorb the common language of

quality and begin to understand their

individual roles in making quality

improvement happen.

•Leadership must be instituted. The aim of

leadership should be to help people and

machines do a better job.•Drive out the fear so that

everyone may work effectively for the

company .

Inspection / defect control

• Two factors cause defects or mistakes : Lack of knowledge and lack of attention.

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

• Deming has been criticized for putting forward a set of goals without providing any tools for managers to use to reach those goals