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CHAPTER 3

Philosophies andFrameworks

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Leaders in the Quality

RevolutionW. Edwards Deming

Joseph M. Juran

Philip B. Crosby

Armand V. Feigenbaum

Kaoru IshikawaGenichi Taguchi

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Whos Who?

Deming ____

Juran ____

Crosby ____

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EDWARD DEMINGDr. W. Edwards Deming is known as thefather of the Japanese post-war industrial

revival and was regarded by many as theleading quality guru in the United States. Hepassed on in 1993. Dr. Deming helped Japanconstruct the global economic jargon that has

been emulated and copied around the world.In Japan today, there is no greater honourthan to be awarded the The Deming Prize.

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Demings work in Japan following World War II thatmade him famous, at least in Japan. In 1949 the Union ofJapanese Scientists and Engineers (JUSE) asked Deming

to come to Japan to help increase productivity. He went in1950 and gave eight lectures to 230 of Japans leadingindustrialists. (Eighty percent of Japans capital wascontrolled by the men in that room, Deming claims.)Ironically, it was the same course he had taught Americans

during the war. They asked Deming how long it wouldtake to shift the perception of the world from the existing

paradigm that Japan produced cheap, shoddy imitations toone of producing innovative quality products.

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He trained as a statistician, his expertise was used during

World War II to assist the United States in its effort to improvethe quality of war materials. Dr. Deming told the group that if

they would follow his directions, they could achieve the

desired outcome in five years. Few of the leaders believed

him. But they were ashamed to say so and would beembarrassed if they failed to follow his suggestions.

As Dr. Deming told it, "They surprised me and did it in four

years." He was invited back to Japan time after time where he

became a revered counsellor. For his efforts he was awarded

the Second Order of the Sacred Treasure by the former

Emperor Hirohito. In 1950 the annual Deming Prize(s) were

established by the Union of Japanese Scientists and EngineersJUSE .

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Deming Chain ReactionImprove quality

Costs decrease

Productivity improves

Increase market share with better quality and lower prices

Stay in business

Provide jobs and more jobs

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Key IdeaThe Deming philosophy focuses on continual

improvements in product and service quality by

reducing uncertainty and variability in design,manufacturing, and service processes, driven by

the leadership of top management.

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Demings Quality Circle

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The Deming Cycle

Act Plan

Study Do

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Plan (1 of 2)1. Define the process: its start, end, and what it does.

2. Describe the process: list the key tasks performed andsequence of steps, people involved, equipment used,

environmental conditions, work methods, and materialsused.

3. Describe the players: external and internal customersand suppliers, and process operators.

4. Define customer expectations: what the customer

wants, when, and where, for both external and internalcustomers.

5. Determine what historical data are available on processperformance, or what data need to be collected tobetter understand the process.

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Plan (2 of 2)6. Describe the perceived problems associated with

the process; for instance, failure to meet customerexpectations, excessive variation, long cycle times,

and so on.

7. Identify the primary causes of the problems andtheir impacts on process performance.

8. Develop potential changes or solutions to the

process, and evaluate how these changes orsolutions will address the primary causes.

9. Select the most promising solution(s).

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Do1. Conduct a pilot study or experiment to

test the impact of the potential

solution(s).2. Identify measures to understand how

any changes or solutions are

successful in addressing the perceivedproblems.

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Study1. Examine the results of the pilot study

or experiment.

2. Determine whether processperformance has improved.

3. Identify further experimentation that

may be necessary.

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Act1. Select the best change or solution.

2. Develop an implementation plan: what

needs to be done, who should be involved,and when the plan should be accomplished.

3. Standardize the solution, for example, bywriting new standard operating procedures.

4. Establish a process to monitor and controlprocess performance.

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Demings System

of Profound KnowledgeAppreciation for a system

Understanding variation

Theory of knowledge

Psychology

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The Deming Cycle

Act Plan

Study Do

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SystemsMost organizational processes arecross-functional

Parts of a system must worktogether

Every system must have a purpose

Management must optimize thesystem as a whole

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VariationMany sources of uncontrollable variationexist in any process

Excessive variation results in productfailures, unhappy customers, andunnecessary costs

Statistical methods can be used toidentify and quantify variation to helpunderstand it and lead to improvements

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Theory of KnowledgeKnowledge is not possible withouttheory

Experience alone does not establish atheory, it only describes

Theory shows cause-and-effectrelationships that can be used forprediction

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PsychologyPeople are motivated intrinsically(hakiki)and extrinsically(hariten)

Fear is demotivating

Managers should develop pride and

joy in work

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Demings 14 Points1.Create and publish a company mission

statement and commit to it.

2. Learn the new philosophy of TQM.

3. Use inspection to improve design & processes.

4. End business practices driven by price alone.

5. Constantly improve system of production

and service.

6. Institute training.

7. Teach and institute quality leadership (guidance).

8. Drive out fear and create trust.

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9.Optimize team and individual efforts.10. Eliminate exhortations for work force

Work to improve the system.11. Eliminate numerical quotas and Managementby objective

Focus on improvement.

12. Remove barriers that rob people of prideof workmanship.13. Encourage education and self-improvement.14. Take action to accomplish the transformation

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Jurans Quality TrilogyQuality planning

Quality control

Quality improvement

http://www.juran.com/main.html

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Key IdeaJuran proposed a simple definition of quality:

fitness for use. This definition of quality

suggests that it should be viewed from bothexternal 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.

Joseph Juran follows W Edward Deming at least

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Joseph Juran follows W Edward Deming, at leastin time, as one of the major Quality Gurus. Indeed,he followed Deming to Japan where his name is

just as illustrious as that of Deming. Juran wasawarded the Order of the Sacred Treasure by theEmperor for his work in the development ofquality in Japan.

The difference between Juran and Deming isreally no more than emphasis. While the core ofDeming's work is his use of statistical tools toidentify quality problems and their causes, Jurancentres upon the role of employees in quality

management - indeed their involvement andempowerment. Juran would not deny the utility ofstatistical techniques any more than Demingwould deny the importance of employee

empowerment.

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Juran's 'Quality Planning Road Map' consists of the following

steps:

1.Identify who are the customers.

2.Determine the needs of those customers.

3.Translate those needs into our language.

4.Develop a product that can respond to those needs.

5.Optimize the product features so as to meet our needs aswell as customer needs.

6.Develop a process which is able to produce the product.

7.Optimize the process.

8.Prove that the process can produce the product underoperating conditions.

9.Transfer the process to Operations.

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Phillip B. CrosbyQuali ty is free . . . :

Quality is free. Its 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.

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Philip Crosby who is recognised as one of the topgurus of quality. Crosby is best known for conceptslikeDo It Right the First Time, and Zero Defects.

Crosby is also recognized as a lecturer, an author,and a businessman whose had over forty years ofhands on management experience. In his lecturershe describes how it is the manager role to make surethat the company, employees, and themselves are

successful. He relates his lectures back to real lifesituation that has happened to him. As an author hehas written and edited thirteen books, all that havebeen best sellers. His first book is the one he is

probably most famous for as an author. The name ofthat book was Quality is Free. In 1996, he came outwith a book that was named Quality is Still Free.

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Philip B. CrosbyAbsolutes of Quality Management:

Quality means conformance to requirements

Problems are functional in natureDo the job right the first time

Cost of quality is the only useful measurement

Zero defects is the only performance standard

http://www.philipcrosby.com/

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A.V. FeigenbaumFeigenbaum's ideas are contained in his nowfamous book Total Quality Control, first

published in 1951 under the title QualityControl: Principles, Practice, andAdministration, and based on his earlierarticles and program installations in the field.

The book has been translated into more thana score of languages, including Japanese,Chinese, French, and Spanish.

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Feigenbaum is recognized as aninnovator in the area of quality cost

management. His was the first text tocharacterize quality costs as the costsof prevention, appraisal, and internal

and external failure.

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A.V. FeigenbaumThree Steps to Quality

Quality Leadership, with a strong

focus on planningModern Quality Technology, involvingthe entire work force

Organizational Commitment,supported by continuous training andmotivation

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Kaoru IshikawaHe has been awarded the Deming Prizeand the Nihon Keizen Press Prize, the

Industrial Standardisation Prize for hiswritings on Quality Control, and theGrant Award in 1971 from the American

Society for Quality Control for hiseducation programme on QualityControl.

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the early origins of the now famous QualityCircles can be traced to the United States in

the 1950s, Professor Ishikawa is best knownas a pioneer of the Quality Circle movementin Japan in the early 1960s, which has nowbeen re-exported to the West. In a speech to

mark the 1000th quality circle convention inJapan in 1981, he described how his worktook him in this direction.

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Kaoru IshikawaInstrumental in developingJapanese quality strategy

Influenced participative approachesinvolving all workers

Advocated the use of simple visualtools and statistical techniques

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At the simplest technical level, his work hasemphasised good data collection and presentation,the use of Cause-and-Effect (or Ishikawa orFishbone) Diagrams.

Ishikawa sees the cause-and-effect diagram, likeother tools, as a device to assist groups or qualitycircles in quality improvement. As such, heemphasises open group communication as criticalto the construction of the diagrams. Ishikawadiagrams are useful as systematic tools for finding,

sorting out and documenting the causes ofvariation of quality in production and organisingmutual relationships between them.

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Cause and Effect Diagrams

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Thus Ishikawa sees the Company-wide QualityControl movement as implying that quality does

not only mean the quality of product, but also ofafter sales service, quality of management, thecompany itself and the human being. This has theeffect that:

1. Product quality is improved and becomesuniform. Defects are reduced.

2. Reliability of goods is improved.

3. Cost is reduced.

4. Quantity of production is increased, and itbecomes possible to make rational productionschedules.

5. Wasteful work and rework are reduced.

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1. Technique is established and improved.

2. Expenses for inspection and testing are reduced.

3. Contracts between vendor and vendee arerationalised.

4. The sales market is enlarged.

5. Better relationships are established between

departments.6. False data and reports are reduced.

7. Discussions are carried out more freely anddemocratically.

8. Meetings are operated more smoothly.9. Repairs and installation of equipment and facilitiesare done more rationally.

10. Human relations are improved.

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Quality Circles

One major characteristic of Japanese Company-

Wide Quality Control is the Quality Control Circle

Movement started in 1962, with the first circlebeing registered with the Nippon Telegraph and

Telephone Public Corporation. Starting in industry

in Japan, these have now spread to banks and

retailing, and been exported world-wide. Successin the West has not been so extensive as in Japan.

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Quality CirclesThe nature and role of quality circles varies betweencompanies. In Japan a quality circle is a typically voluntarygroup of some 5-10 workers from the same workshop, who

meet regularly and are led by a foreman, assistant foreman,work leader or one of the workers. The aims of the qualitycircle activities are:

1. To contribute to the improvement and developmentof the enterprise.

2. To respect human relations and build a happyworkshop offering job satisfaction.

3. To deploy human capabilities fully and draw outinfinite potential.

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Quality CirclesThe members of the circle have mastered statistical qualitycontrol and related methods and all utilise them to achievesignificant results in quality improvement, cost reduction,

productivity and safety. The seven tools of quality controlare taught to all employees:

1. Pareto charts

2. Cause and effects diagrams

3. Stratification

4. Check sheets

5. Histograms

6. Scatter diagrams

7. Shewhart's control charts and graphs.

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All members of the circle are continuously

engaged in self-and-mutual development,

control and improvement wheneverpossible, the circles implement solutions

themselves, otherwise they put strong

pressure on management to introduce them.Since management are already committed to

the circles, it is ready to listen or act. Circle

members receive no direct financial reward

for their improvements.

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Genichi TaguchiIn the early 1970s Taguchi developed theconcept of the Quality Loss Function. He

published two other books in the 1970s andthe third (current) edition of Design ofExperiments. By the late 1970s Taguchi hadan impressive record in Japan having won

the Deming application prize in 1960 andDeming awards for literature on quality in1951 and 1953.

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Genichi TaguchiTaguchi breaks down off-line quality

control into three stages:

v System design.

v Parameter design.

v Tolerance design.

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Following his 1980 visit to the UnitedStates, more and more American

manufacturers implemented Taguchi'smethodology. Despite an adverse reactionamong American statisticians at themethods, and possibly at the way they were

being marketed, major US companiesbecame involved in the methods includingXerox, Ford and ITT.

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Taguchi methodology is concerned with the

routine optimisation of product and process priorto manufacture, rather than emphasising the

achievement of quality through inspection. Instead

concepts of quality and reliability are pushed back

to the design stage where they really belong. Themethod provides an efficient technique to design

product tests prior to entering the manufacturing

phase. However, it can also be used as a trouble-

shooting methodology to sort out pressing

manufacturing problems.

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LOSS FUNCTION

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Deming PrizeInstituted 1951 by Union of JapaneseScientists and Engineers (JUSE)

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

American company winners include:

Florida Power & Light, and

AT&T Power Systems Division

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Malcolm Baldrige

National Quality Award

Help improve quality in U.S. companies

Recognize achievements of excellent firmsand provide examples to others

Establish criteria for evaluating quality

effortsProvide guidance for other U.S. companies

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Criteria for Performance

ExcellenceLeadership

Strategic Planning

Customer and Market FocusInformation and Analysis

Human Resource Focus

Process Management

Business Results

http://localhost/var/www/apps/QualityManagement/ppt/mbnqa10.mov