Chapter 2
Dr. Tahseen Al-Doori
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Late 1970’s
 The growth of consumerism
 The growth of litigation
 The growth of government over quality
 The Japanese quality revolution
Dr. Tahseen Al-Doori
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Deming’s Approach
According to Deming
 “The 14 points all have one aim: to make it possible for
people to work with joy.”
1. create constancy of purpose for the improvement of
product and service, with the aim to become
competitive, stay in Business, and provide jobs.
2. Adopt the new philosophy of cooperation (win-win)
in which everybody wins. Put it into practice and teach it
to employees, customers, and suppliers.
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Deming’s Approach
3. cease dependence on mass inspection to achieve
quality. Improve the process and build quality into the
product in the first place.
4. End the practice of awarding business on the basis of
price tag alone. Instead, minimize total cost in the long
run. Move toward a single supplier for any one item, on a
long term relationship of loyalty and trust.
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Deming’s Approach
5. Improve constantly and forever the system of
production, service, planning, or any activity. This will
improve quality and productivity and thus constantly
decrease costs.
6. Institute training for skills.
7. Adopt and institute leadership for the management of
people, reorganizing their different abilities, capabilities,
and aspirations. The aim of leadership should be to help
people, machines, and gadgets
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Deming’s Approach
8. Eliminate fear and build trust so that everyone can
work effectively.
9. Break down barriers between departments. Abolish
competition and build a win-win system of cooperation
within the organization. People in research, design,
sales, and production must work as a team to foresee
problems of production and use that might be
encountered with the product or service.
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Deming’s Approach
10. Eliminate slogans, exhortations, and targets asking
for zero defects or new levels of productivity. Such
exhortations only create adversarial relationships, as the
bulk of the causes of low quality and low productivity
belong to the system and thus lie beyond the power of
the workforce.
11. Eliminate numerical goals, numerical quotas, and
management by objectives. Substitute leadership.
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Deming’s Approach
12. Remove barriers that rob people of joy in their work.
This will mean abolishing the annual rating or merit
system that ranks people and creates competition and
conflict.
13. Institute a vigorous program of education and selfimprovement.
14. Put everyone in the company to work to accomplish
the transformation. The transformation is everybody’s
job.
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Deming
Deming also describe a system of “profound knowledge.”
It consist of 4 parts:
1. appreciation for a system.
A system is a network of independent components
that work together to accomplish the aim of the
system.
The greater the interdependence of the various
system components, the greater the need for
management.
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2. knowledge about variation.
Deming’s system of profound knowledge:
without knowledge of variation people are unable
to learn from experience.
There are two basic mistakes made when dealing with
variation:
A. reacting to an outcome as if it were produced
by a special cause; when it actually came from a
common cause.
B. reacting to an outcome as if it were produced by
a common cause, when it actually came from a
special cause.
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3. theory of knowledge
knowledge is reflected in new theory. Without
theory, there is nothing to revise, that is, there can
be no new knowledge, no learning.
Deming’s Plan-Do-Study-Act cycle.
4. psychology.
Psychology is the science that deals with mental
processes and behavior.
Deming’s system of profound knowledge:
Psychology is important because it provides a
theoretical framework for understanding the
difference between people, and provides guidance
in the proper ways to motivate them
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Total Quality Control in Japan
 TQC is a system of specialized quality control activities
initially developed by Feigenbaum.
The American used it and the Japanese improved on it
and used it for better results.
1. Quality first --- not short term first.
2. Consumer orientation – not producer orientation.
3. The next process is your customer – breaking down
the barrier of sectionalism.
4. Using facts and data to make presentations –
utilization of statistical methods.
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5. Respect for humanity as a management philosophy
–full participatory management.
When management decides to make company wide
quality its goal, it must standardize all processes and
procedures and then baldly delegate authority to
subordinates. (when you give a job to someone then
give him/her full authority to deal with the job).
6. Cross-functional management
From the perspective of companywide goals, the main
functions are Quality Assurance, Cost Control, Quality
Control, and personnel Control.
The company must establish cross-functional
committees to address these section-spanning issues.
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Kaizen
 Kaizen is a philosophy of continuous improvement, a
belief that all aspects of life should be constantly
improved.
 In Japan, where the concept of KAIZEN originated
applies to all aspects of life, not just the workplace.
 In America the term is usually applied to work
processes.
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KAIZEN
 The KAIZEN approach focuses on ongoing
incremental improvement that involves all of
stakeholders.
 Over the time these small improvements produce
changes every bit as dramatic as the “big project”
approach.
 KAIZEN does not concern itself with changing
fundamental systems, but seeks to optimize existing
systems.
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KAIZEN
 All employees in an organization have responsibilities
for two aspects of quality:
 Process improvement and
 Process control
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Taiichi Ohno of Toyota
Five types of waste:
1. Errors requiring rework. (Rework refers to any
activity required to fix or repair the results of another
process step. In service processes, management
intervention to resolve a customer complaint may be
considered rework.)
2. Work with no immediate customer, either internal or
external, resulting in work in progress or finished goods
inventory.
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Taiichi Ohno of Toyota
3. Unnecessary process steps.
4. Unnecessary movement of personnel or materials.
5. Waiting by employees as unfinished work in an
upstream process is completed.
6. Design of product or processes that do not meet the
customer’s needs.
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Value is the opposite of waste
This should be identified by considering the following:
1. Is this something the customer is willing to pay for?
2. Does the step change form, fit, or function of the
product? Stated differently, does it convert input to
output?
If the answer for both is “no”, then it’s likely the activity
does not create value in the customer’s eyes, even if it is
necessary to ensure quality in the current process.
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ISO 9000
 The best know system of quality standards and
published by the ISO (International Organization for
Standardization).
 The use of ISO 9000 is extremely widespread, KIC uses
it for standards. 86% of registration is in Europe and
the far east.
 ISO 9000 registration is achieved by third party
registrar audits. Audits are not preformed by
customers but by specially trained, independent, third
party auditors.
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ISO 9000
 While ISO 9000 applies to any organization and to all
product categories, it does not specify how the
requirements are to be implemented.
 ISO 9000 does not replace product, safety, or
regulatory requirements or standards.
 The concept that underlies the ISO 9000 standards is
that consistently high quality is best achieved by a
combination if technical product specifications and
management system standards. ISO 9000 standards
provide only the management systems standards.
 IT SHOULD BE NOTED THAT ISO 9000 IS
DESIGNED AS A MINIMAL QUALITY STANDARDS.
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Stapp summarization of the
issues with pre-2000 standards
 Ebook page 44
 10 points to be discussed.
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Deming Prize
 The Deming Prize for individual person is awarded to
an individual who shows significant achievement in
the theory or application of quality control.
 The Deming application Prize is awarded to an
enterprise that achieves the most distinctive
improvement of performance through the application
of statistical quality control. This award is further
broken down into the Deming Application Prize for
small enterprises and the Deming Application Prize
for Division.
 The Deming Application Prize for overseas Companies
is awarded to an overseas company that displays the
meritorious implementation of TQM.
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Deming Prize
 Areas examined by the subcommittee members for
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TQM are:
Policy
Organizational design
Education/ training
Information
Analysis
Standardization
Control
Quality assurance
Effectiveness
Future plans
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Total Quality Management TQM
 There are four basic components:
Put customers first
2. Make continuous improvements
3. Aim for zero defects
4. Training and development.
1.
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Put Customers First
 A quality product or service satisfies customer’s needs
and expectations. If customers are not put first, then
customer expectations will be difficult to satisfy and
consequently quality will not be achieved. Customers
can be put first through a variety of initiatives
including:
1. undertaking market research
2. Looking after all customers whether internal or
external.
3. Listening to customer views and opinions
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Make continuous improvement
The Japanese term “Kaizen” believes that there are no
limits to continuous improvement. This means that a
TQM organization will continuously strive to improve
their product / service and increase the quality
standards.
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Aim for Zero Defects
There are a number of reasons behind the aim to
eradicate defects.
* Defects are expensive because they will lower the
customer’s confidence in the product.
* It is more expensive to rectify defects than it is to
prevent them occurring in the first place.
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Training and Improvement
An organization will need to train their employees to
ensure that they understand the principles of TQM.
In a TQM organization, employees will need to
understand how TQM is to be achieved or maintained
and how they as an employee will ensure that the
organization emulates TQM.
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Six Sigma
 Lean six sigma
 http://www.youtube.com/watch?v=k6-GafaZC1E
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