Quality Management Philosophies

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Total Quality Management

Chapter 3 Quality Management Philosophies

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Quality Management Philosophies

•Dr. W. Edwards Deming: (1900-1993) is considered to be the Father of Modern Quality•Dr. Deming preached that to achieve the highest level of performance requires more than a good philosophy the organization must change its behavior and adopt new ways of doing business.•Deming's approach were amply summed up in his famous 14 Points

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Deming’s 14points on managementPoint 1: Create constancy of purpose toward improvement of the product and service so as to become competitive, stay in business and provide jobs.Point 2: Adopt the new philosophy. We are in a new economic age. We no longer need live with commonly accepted levels of delay, mistake, defective material and defective workmanship.Point 3: Cease dependence on mass inspection; require, instead, statistical evidence that quality is built in.

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Deming’s 14points on management

Point 4: Improve the quality of incoming materials. End the practice of awarding business on the basis of a price alone. Instead, depend on meaningful measures of quality, along with price.Point 5: Find the problems; constantly improve the system of production and service. There should be continual reduction of waste and continual improvement of quality in every activity so as to yield a continual rise in productivity and a decrease in costs.

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Deming’s 14points on managementPoint 6: Institute modern methods of training and education for all. Modern methods of on-the-job training use control charts to determine whether a worker has been properly trained and is able to perform the job correctly. Statistical methods must be used to discover when training is complete.

Point 7: Institute modern methods of supervision. The emphasis of production supervisors must be to help people to do a better job. Improvement of quality will automatically improve productivity..

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Deming’s 14points on managementManagement must prepare to take immediate action on response from supervisors concerning problems such as inherited defects, lack of maintenance of machines, poor tools or fuzzy operational definitions.Point 8: Fear is a barrier to improvement so drive out fear by encouraging effective two-way communication and other mechanisms that will enable everybody to be part of change, and to belong to it.

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Fear can often be found at all levels in an organization: fear of change, fear of the fact that it may be necessary to learn a better way of working and fear that their positions might be usurped frequently affect middle and higher management, whilst on the shop-floor, workers can also fear the effects of change on their jobs.Point 9: Break down barriers between departments and staff areas. People in different areas such as research, design, sales, administration

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and production must work in teams to tackle problemsthat may be encountered with products or service.Point 10: Eliminate the use of slogans, posters and exhortations for the workforce, demanding zero defectand new levels of productivity without providing methods. Such exhortations only create adversarial relationships.Point 11: Eliminate work standards that prescribe numerical quotas for the workforce and numerical goals for people in management. Substitute aids and helpful leadership.

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Point 12: Remove the barriers that rob hourly workers, and people in management, of their right to pride of workmanship. This implies, abolition of the annual merit rating (appraisal of performance) and of management by objective.Point 13: Institute a vigorous program of education, and encourage self-improvement for everyone. What an organization needs is not just good people; it needs people that are improving with education.

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Point 14: Top management's permanent commitment to ever-improving quality and productivity must be clearly defined and a management structure created that will continuously take action to follow the preceding 13 points

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Quality Management Philosophies

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Deming on managementSystem of Profound Knowledge

"When the student is ready the teacher will come." K1: Appreciation for a system (people + process)

•a system is a network of interdependent components that work together to try to accomplish the aim of the system •interdependence, cooperation -- everyone must gain •obligation of a component is to contribute its best to the system •a system must have an aim, purpose, or mission -- a common goal

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Deming on management

The whole company, as a system, must be managed •Management of a system requires knowledge of the interrelationships between all the components within the system and the people that work in it •a manager understands and conveys to his people the meaning of the system (mission and vision) and how the group supports these aims •a manager helps his team see themselves as components of the system, working toward achievement of the mission

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Deming on managementK2: Knowledge about variation

•Statistical Theory should be applied to management of the system •need to determine if the "system" is stable or unstable •variation is predictable only in stable systems •need to set control limits to predict system behavior •control limits are calculated limits -- not specification limits, arbitrary goals, or quotas •a manager understands a stable system •each person's performance will reach a stable state •Half of the people are always above average, the other half are below average!

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•workers work within a system that -- try as they might -- is beyond their control •Need to separate [even in your own measurement system]: •special causes of variation •those variations that are not part of the system of common causes •identify if it can reoccur and eliminate it •can be assigned to a specific cause (rather than random variation)

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•usually corrected by someone who is directly connected with the process •show up on control charts as points outside the control limits •common causes of variation •do not want to react to common causes (only makes the system unstable) •react only to a minimum of 30 points outside the control limits on a control chart •a fault of the system, usually has to be corrected by management, but often identified by others

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•variations inside the limits on control charts •Improvement of the Process... •should only occur after statistical control is achieved in a stable system (with no indication of the existence of a special cause, over a long period of time)•change the process in attempt to: •narrow the variation •change is tested on a sample (statistics) •move the average closer to the optimum level or both,

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Deming on managementK3: Theory of knowledge

management = prediction •knowledge is built on theory, build an hypothesis which: •predict a future outcome •identifies risk of being wrong (confidence level) •must fit, without failure, with the observations of the past •without theory, we have nothing to revise, nothing to learn •there is no true value, effected by

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•K4: Psychology •People are different from one another •A manager of people must be aware of these differences •People learn in different ways and at different speeds •You can over reward and remove dignity •Rewarding only a few creates competition, rather than cooperation •abolish the merit system in your company; study the capability of the system

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Deming on Quality

1. Create constancy of purpose• Old way

• no long-range plans ,insecurity • reactive rather than proactive • focus on quarter returns, profit

• New way• a business' role is not to make money, but

to stay in business for the years to come • aim to become competitive, to stay in

business, and to provide jobs by continual improvement of product and service

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Deming on Quality

1. continuous improvement of the right products (and/or the right type of service) in the right market

• constancy of purpose means: innovate --spend resources for long term planning vs. quick profits; no decisions about innovation will be made without a plan to answer the following what materials will be required, at what cost?

• what will be the new method of production?

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Deming on Quality

• what new people will have to be hired?

• what change in equipment will be required?

• what new skills will be required, and for how many people?,how will current employees be trained in these new skills? ,how will supervisors be trained?

• what will be the cost of production?

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Deming on Quality

• what will be the cost of marketing? • what will be the cost and methods of

service? • how will the product or service be used by

the customer?,how will the company know if the customer is satisfied?

1. invest in research and education • customer research is an integral part of

production • find out what the user thinks of it • why the non-users have not bought it

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Deming on Quality

• establish -- knowing what to do • maintain -- doing your best to do it

only top management can establish the constancy of purpose necessary to know and meet/exceed customers' expectations • make policy ,establish a set of core values

• adopt and publish the mission • set the long-term course

• leadership [Quadrant II],fire prevention vs. fire fighting

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Deming on Quality

1. Adopt the new philosophy• Old way• a good manager is one who sets up a system,

directs the work through subordinates, develops a basis to set standards of performance, and makes crisp and unambiguous assignments,in a monopoly, management can have greater earnings in spite of inefficiencies, therefore "supporting"

• Management's belief that it knows how to run the business and make money -- this bears no relation to reality

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Deming on Quality

• instead of improvement, there is a preoccupation with watching each other (comparing oneself againsanother)

• assume a step function model of loss• New way

• customer-centric• looks after the need of the customers • don't accept poor quality, poor workmanship, or

sullen service,negativism is unacceptable • sets a pattern of continuing improvement • creating operational definitions,use measurement

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Deming on Quality

• recognize that there is an economic loss for any deviation from target value• quality must become the new "religion" • we must believe in quality as we once believed in

progress

• defects are not free,customers don't often complain, they just switch ,customers who boast about the products bring in new business

• transformation of management -- existing structures have to be dismantled

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Deming on Quality

• Management must awaken to the challenge, must learn their responsibilities, and take on leadership for change

1. Cease dependence on mass inspectionOld way

• inspect after the product is complete • difficult to determine where in the process the

defect was produced • excessive waste (scrap, downgrading, rework)

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Deming on Quality

• New way ,measurable• depend on small samples of product for control

charts to achieve or to maintain statistical control • realize the process, the system • realize the variation in the system, and

outcomes will vary even if all inputs are constant

• realize that over control can increase variance and can be costly • do not manage the outcome by detecting

defects

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Deming Wheel

The Deming Wheel or Deming Cycle which is also known as PDCA cycle is a problem solving process adopted by the firms engaged in continuous improvements.

Act

Check Do

Plan

Never ending Improvement

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TQM Triangle

The TQM needs three fundamental characteristics

Commitment

Scientific KnowledgeInvolvement

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Juran’s ten step Quality Improvements

Build Awareness for the need or opportunitySet goals for opportunityOrganize people to reach goalsProvide training throughout the organizationCarry out projects to solve problemsReport progressGive recognitionCommunicate resultsKeep scoreMaintain momentum

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Juran’s Definition of Quality

Product performance that result in customer satisfactionFreedom from product deficiencies, summarized as fitness to use

Fitness for use result from five major product traitQuality of design Quality of ConformanceAvailability Safety Field use

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Juran’s Quality Trilogy process

Quality Panning : Quality does not happen by accident, It needs proper planningQuality Control :determine what to control , establishing unit of measurementsQuality Improvements :While Quality pursues the goal of maintaining existing level of quality habit pushes the firm onward to next higher level of quality

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Juran’s Quality Trilogy process

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Quality Control

Quality Panning

Quality implementation

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Universal Breakthrough Sequence

Japans Universal Breakthrough Sequence identifies a set of actions directed towards achieving major leaps in quality. These steps are listed as followsProof of needProject IdentificationOrganization for improvementsDiagnostic journey

Remedial actionResistance to changeHolding on to gain 36

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Crosby’s Philosophy

Quality means conformance to requirements not eleganceThere is no such thing as a quality problemThere is no such thing as the economics of quality. It is always cheaper to do the job right the first timeThe only performance measure is the cost of qualityThe only performance standard is zero defects 37

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Crosby provides a holistic view of quality. The roots of his philosophy can be found in the following five absolutes of quality management:Quality means conformance to requirement and not elegance; There is no such thing as quality problem;It is always cheaper to do things right the first time; The only performance measurement is the cost of quality

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The only performance standard is zero defects.He has laid emphasis on prevention and zero defects as the only performance standards. He has put forth the 14 steps of implementing quality programs in an organization.To operationally the 14 steps program he has provided number of tools like Quality maturity grid' `Make Certain Program' `Management Style Evaluation‘ and `Quality V i '

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Crosby's 14 steps to Quality are: Management Commitment Form Quality Improvement TeamManagement Perspective Determine Quality Measures Evaluate the Cost of QualityQuality Awareness Corrective Action Ad hoc Committees and Zero Defect Programs

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Training of Supervisors and Managers Zero Defect DayGoal SettingError cause removal Recognition Quality Councils Do it over again

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Major Components of Crosby’s quality Vaccine(Crosby Triangle)

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Integrity,Policies

Communication Systems ,operations

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Strengths &weakness of Crosby’s Philosophy

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•Crosby’s approach is cleaner than those of Deming and Juran and is supported by number of tools•Work participation is recognized as having value•The Idea of Quality problem is rejectedWeakness•The philosophy implies that workers are to be blamed for quality problems.•Zero defect is often misunderstood to mean avoidance of risk and hence may have a negative effect on creativity

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Understanding Kaizen Philosophy

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What is TQM Concept in Japan?TQM, also known as Total Quality Control

(TQC), is a management tool for improving total performance.TQC means organized Kaizen activities involving

everyone in a company managers and workers in a totally systemic and integrated effort toward improving performance at every level.It is to lead to increased customer satisfaction

through satisfying such corporate cross-functional goals as quality, cost, scheduling, manpower development,

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and new product development.In Japan, TQC activities are not limited to quality control only. Elaborate system of Kaizen strategies has been developed as management tools within the TQC approach.TQC in Kaizen is a movement aimed at improvement of managerial performance at all levels.According to the Japan Industrial Standards, "implementing quality control effectively necessitates the cooperation of all people

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in the company, including top management, managers, supervisors, and workers in all areas of corporate activities such as market research and development, product planning, design, preparation for production, purchasing, vendor management, manufacturing, inspection, sales and after-sale services, as well as financial control, personnel administration, and training & education.

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Quality control carried out in this manner is called company-wide quality control or total quality control (TQC)." Quality control in Japan deals with quality of people. It is the fundamental concept of the Kaizen-style TQC. Building quality into its people brings a company a half-way towards producing quality products.

.

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Case in Point Kaizen Time at CanonIn some Canon plants, the foremen are told to set

aside the half-hour as Kaizen time time to do nothing but thinking improvement in the workshop. The foremen use this period to identify problems and work on Kaizen programsFactories are advised not to hold meetings during this 30-minute period, and foremen should not even answer the telephone then...

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Case in Point 14 TQM Slogans at PentelPentel is a Japanese firm manufacturing stationary

products. The following is a list of 14 Pentel's slogans for explaining Total Quality Management (TQM) and Quick and Easy Kaizenphilosophy to its employees.

• Build quality in upstream... Three Stages of the Suggestion System

1. Encouragement. In the first stage, management should make every effort to help the workers provide suggestions, no matter how primitive

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Education and Training• As a natural follow-up to the concept of building

quality into people, TQC starts with education and training of managers and workers. The major aim of these awareness and training programs is to implant TQC thinking in all employees.

• TQC education and training is a continuous process. Separate courses for different organizational levels are organized to reach everyone in the company

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Main Differences between TQMPractices in Japan the West

Japan: •deals with quality of people •customer-oriented •upstream •process-oriented, aimed at improving the total performance •company-wide, everybody's responsibility

The West: •deals with quality of products •manufacturer-oriented •downstream •product-oriented, aimed at detecting and eliminating defective parts •responsibility of quality control managers

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The Seven Main Features of the TQC Movement in Japan

1.Company-wide TQC, involving all employees, organization, hardware, and software 2.Emphasis on education and training for top management, middle management and workers 3.Quality control (QC) circle activities by small groups of volunteers 4.TQC audits5.Application of statistical methods6.Constant revision and upgrading of standards7.Nation-wide TQC promotion

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Taguchi's Loss Function

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Genichi Taguchi's impact upon North American product design and manufacturing processes began in November 1981.

Ford Motor Company requested that Dr. Taguchi make a presentation.

A different method of measuring quality is central to Taguchi's approach to design. Loss functionmeasures quality.

The loss function establishes a financial measure of the user dissatisfaction with a product's performance as it deviates from a target value.

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Thus, both average performance and variation are critical measures of quality. Selecting a product designor a manufacturing process that is insensitive to uncontrolled sources of variation improves quality.

Dr. Taguchi calls these uncontrolled sources of variation noise factors. This term comes from early applications of his methods in the communications industry.

Applying Taguchi's concept entails evaluating both the variance and the average for the technical bench marking in QFD.

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The loss function provides a single metric for comparison.How to Measure QualityTraditionally, quality is viewed as a step function as shown by the heavy line graph in the figure 1. A product is either good or bad. This view assumes a product is uniformly good between the specifications (LS the lower specification and US the upper specification). The vertical axis represents the degree of displeasure the customer has with the product's performance.

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Curves A and B represent the frequencies of performance of two designs during a certain time period. B has a higher fraction of "bad" performance and therefore is less desirable than A. figure 1

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Sometimes traditional decision makers and those using Taguchi's loss function will make the same judgments.

If organizations consider both the position of the average and the variance, and if the averages are equal and/or the variances are equal, then the traditional decision maker and one using Taguchi's loss function will make the same decision.

However, the traditional decision-maker calculates the percent defective over time when both the average and variance are different.

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Taguchi believes that the customer becomes increasingly dissatisfied as performance departs farther away from the target.

He suggests a quadratic curve to represent a customer's dissatisfaction with a product's performance.

The quadratic curve is the first term when the first derivative of a Taylor Series expansion about the target is set equal to zero.

The curve is centered on the target value, which provides the best performance in the eyes of the customer.

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Identifying the best value is not an easy task. Targets are sometimes the designer's best guess.

LCT represents lower consumer tolerance and UCT represents upper consumer tolerance.

This is a customer- driven design rather than an engineers specification. Experts often define the consumer tolerance as the performance level where 50% of the consumers are dissatisfied.

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Your organization's particular circumstance will shape how you define consumer tolerance for a product. The equation for the target-is-best loss function uses both the average and the variance for selecting the best design. The equation for average loss is:

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Calculating the average loss permits a design team to consider the cost benefit analysis of alternate designs with different costs yielding different average losses.

As seen in figure 2, there is some financial loss incurred at the upper consumer tolerance. This could be a warranty charge to the organization or a repair expense.

Most applications of the loss function in QFD can use a value of 1 for k since the constant would be the same for all competitors as it relates to the customer.

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If two products have the same variance but different averages, then the product with the average that is closer to the target (A) has better quality figure 3

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Figure 4What if both average and variance are different? Calculating the average loss assumes you agree with the concept of the loss function

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Taguchi’s approach can be broken down into a few different steps.These steps include problem formulation, experimental planning, experimental results and confirmation of the improvement.This is essentially a closed loop process as shown in figure 2.If the objective is not met, the procedure must begin again with modified parameters.

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Shigeo Shingo and TQM

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In terms of quality, Shingo's paramount contribution was his development in the 1960s of Poka-Yoke and source inspection systems.

These developed gradually as he realised that statistical quality control methods would not automatically reduce defects to zero.

The basic idea is to stop the process whenever a defect occurs, define the cause and prevent the recurring source of the defect. This is the principle of the JIT production system.

No statistical sampling is therefore necessary.

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A key part of this procedure is that source inspection is employed as an active part of production to identify errors before they become defects. Error detection either stops production until the error is corrected, or it carries adjustment to prevent the error from becoming a defect.

This occurs at every stage of the process by monitoring potential error sources. Thus defects are detected and corrected at source, rather than at a later stage.

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Following a visit to Yamada Electric in 1961, Shingo started to introduce simple, mechanical devices into assembly operations, which prevented parts from being assembled incorrectly and immediately signaled when a worker had forgotten one of the parts.

These mistake-proofing or 'Poka-Yoke' devices had the effect of reducing defects to zero.

In 1967 Shingo further refined his work by introducing source inspections and improved Poka-Yoke systems

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which actually prevented the worker from making errors so that defects could not occur.and that workers were more free to concentrate on more valuable activities such as identifying potential error sources.

Having learned about and made considerable use of statistical QC in his 40s, it was some 20 years later, in 1977, that Shingo observed that the Shizuoko plant of Matsushita's Washing Machine

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Division had succeeded continuously for one month with zero defects on a drain pipe assembly line with involvement of 23 workers. He realisedthat statistical QC is not needed for zero-defect operations.

This was achieved principally through the installation of Poka-Yoke devices to correct defects and source inspection to prevent defects occurring. Together these techniques constitute Zero Quality Control.

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Walter Shewhart Walter Shewhart -- The Grandfather of Total The Grandfather of Total Quality ManagementQuality Management

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The original notions of Total Quality Management and continuous improvement trace back to a former Bell Telephone employee named Walter Shewhart.

One of W. Edwards Deming's teachers, he preached the importance of adapting management processes to create profitable situations for both businesses and consumers, promoting the utilization of his own creation -- the SPC control chart.

Dr. Shewhart believed that lack of information greatly hampered the efforts of control and management processes in a production environment.

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Walter Shewhart - The Grandfather of Total Quality Management

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In order to aid a manager in making scientific, efficient, economical decisions,he developed Statistical Process Control methods. Many of the modern ideas regarding quality owe their inspiration to Dr. Shewhart.

He also developed the Shewhart Cycle Learning and Improvement cycle, combining both creative management thinking with statistical analysis.

This cycle contains four continuous steps: Plan, Do, Study and Act. These steps (commonly referred to as the PDSA cycle), Shewhart believed, ultimately lead to total quality improvement.

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Total Quality Management

End Of

Chapter 3

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