MANAGING QUALITY IMPROVEMENT
Charles H. Fine *
David H. Bridge **
WP#1607-84
November 1984
ABSTRACT
The purpose of this paper is to provide a guide to managers and
academics who wish to explore the topic of managing quality improvement.
We begin by providing a brief overview and evaluation of three decision
tools for quality management: Cost of Quality, Direct Measures of Quality,
and Revenue and Cost of Quality.
Next we describe the philosophy and
techniques of the Japanese and the three quality management experts:
W. E. Deming, J
M. Juran, and P
B
Crosby.
Following this, we provide
a framework for evaluating the different approaches to quality management.
Finally, we suggest some guidelines for designing a program for managing
quality improvement.
*
Sloan School of Management, Massachusetts Institute of Technology
**
Packard Electric Division, General Motors Corporation
PRELIMINARY DRAFT.
COMMENTS WELCOME.
MANAGING QUALITY
Charles
H.
David H.
In
increasingly
improvement
companies
whose
the
has
and
become
their
survival
was
exceptional
emphasis
toward
companies
in
a
supplier,
services
is
an
a
less
to
complex
raise
and distributor
extremely
the
challenging
so difficult,
trying
to
improve
consequence,
past
M.
of
few
demand
travelled
B.
to
Japan
in
also
and
legions
past
have
as
few
W.
renewed
astute
pushing
every
for
employee,
of
the
goods
or
levels
maintaining quality
levels.
and
the
in
Deming,
a
among
the
Joseph
American
have
years
much
as
in
sizable
American managers
learn
a
education
Edwards
following
task of
As
dramatically
each developed
to
and
costs.
services
sizable
of
this
overwhelmed by
increased
firms
markets
led
been
quality
that
feel
such
of
maintaining quality
consulting
has
excellent
however,
virtually
the
quality
Initially,
Japan
reduce
Given
firms
Crosby
the
and
merely
experts
practice
In addition,
have
affect
management
Philip
in
Recently,
one.
of
globalization
made
where
of
objective
to world-competitive
for
Quality
consulting
managers.
_lllj____ll_____llILl____lsl.ll^l__l
and
many
quality
quality
years.
Juran,
quality
the
the
revenues
can
countries,
competitors.
products
task
is
area
of
by
environment
provided,
and
circumstances
levels
the
competent
quality.
dire
Bridge
industries
threatened
higher
Fine
top-priority
most
quality
improved quality
In
many
IMPROVEMENT
as
2
possible about quality management techniques
The purpose
of
this
paper
is
to
sift
in
that country.
through
the
various
quality management approaches mentioned above and provide a
to managers
and academics who wish
managing quality improvement.
overview and
rules
evaluation
of
the Japanese
"gurus" mentioned above.
for evaluating
Finally, we
1.
further
the
We begin by providing a
Next we
and the
topic of
brief
tools and decision
describe
three
Following
the different
the philosophy and
quality management
this, we provide
a
framework
approaches to quality management.
suggest some guidelines
managing quality
explore
several decision
for quality management.
techniques of
to
guide
for designing a program for
improvement.
DECISION TOOLS AND DECISION RULES FOR QUALITY MANAGEMENT
In
this section, we discuss
management:
quality
describe
cost of quality
(DMOQ),
three decision tools
(COQ),
direct
(physical) measures of
and revenue and cost of quality
each tool along with
with it and evaluate
the
for quality
(RACOQ).
We
the most natural decision rule
to go
strengths and weaknesses of each tool-
rule combination.
Cost of quality
tool
is a well-documented and widely-used decision
for quality management.
Feigenbaum
[1983]
and Juran
required knowledge
American Society
Disseminated by
[1974]
among
the
others,
works
of
COQ constitutes
for every quality engineer certified by the
for Quality Control
cost accounting system
for
(ASQC).
categorizing,
COQ is a managerial
tracking, and
aggregating
3
costs
related
acceptance
COQ
and
to
stems
partly
standard
The
costs,
the
of
costs
internal
retest,
cost
principal
appraisal
costs,
product
having
returned
as
the
quality
of
quality
labor,
improvement projects,
preventing
The
quality
decision
measurement
the
total
system
cost
associated
of
with
horizontal axis
the
percentage
vertical
axis
Lundvall
and
failure
and
rule used
is
to
and prevention
most
choose
quality.
items
adjustments,
failure
and
products
and
processes.
of
evaluating
costs
process,
costs
include
data
the
analysis,
activities
of
finished
They
the
goods,
costs
of
quality
related
expenses
1101.
quality
Exhibit
1.1
rule.
average
In
and
as
that
Juran
quality
must
1
be
(I
levels
that
is
are
cost
and
so
to
COQ
as
to
minimize
the
analysis
exhibit,
quality,
per
unit
to
and
of
[1980]
increased,
the
measured
defective,
Gryna
increased
_____
the
illustrates
product
the average
[1974]
decrease
frequently with
produced
represents
costs
external
problems.
represents
Juran
rework,
costs
training,
this decision
of
include
the
in
other
as
represent
These
scrap,
costs,
to
capital
work
any
of
relate
Prevention
planning,
between
failure
costs
products.
complaint
and
are
Failure
as well
firm's
materials,
fit
costs
costs
costs
the
equipment.
quality management
the
losses,
material,
incoming
and production
of
quality
defective
Appraisal
widespread
~philsohica!
costs.
claims,
Its
systems.
of
such as
warranty
the
include
produced
quality.
close
prevention
and yield
material.
appraising
the
accounting
costs,
downtime,
such
from
categories
and
failure
and process
reduce
the
good
claim
whereas
by
output.
that
appraisal
defect
rates.
4
COST OF QUALITY
TOTAL
QUALITY
COSTS
.-
FAILURE
COSTS
-
CD
e.
/
1
I
APPRAISAL &
PREVENTION COSTS
l
I
100% DEFECTIVE
CONFORMANCE
QUALITY
100% GOOD
OPTIMAL
CONFORMANCE
LEVEL
Exhibit 1.1
Determining the economic conformance level
(Source:
Juran and Gryna (1980), p. 27.)
Therefore,
there
is a cost-minimizing
economic conformance
that
zero defects
level,
as
level of quality, or
indicated
is clearly not
in
Exhibit
1.1.
Notice
the optimal conformance
level
in
this model.
Cost-of-quality accounting has
calculating
the
optimal
to
the
financial magnitude
estimate
activities.
numbers
Along
to call
importance of
conformance
this line,
the
of
the
over
COQ
First,
A
third use
time.
An attractive
in dollar units and are
from investments
to the
the
of COQ
feature
high
is as a yardstick
of COQ is
therefore
that all
easily comparable
For example,
can easily
other business
(physical)
second quality management decision
highly-developed or widely-acknowledged
Rather
a
be
activities
firm.
next explore direct
that COQ is.
COQ
financial
that have
in quality improvement
expected from
uncer consideration by
as a
used
improvement or measuring managerial
compared with payoffs
We
can be
firm's quality-related
with other outputs of cost accounting systems.
payoffs
it
to
can also be used to
improvement opportunities
for measuring quality
in addition
quality managers often use
quality function.
(dollar) payoff potential.
measures are
level.
top management's attention
identify quality
performance
several uses
it is a
measures of quality
tool.
is not a
decision tool
term that we
essentially all nonfinancial, physical,
DMOQ
(DMOQ)
in
the way
coined to denote
or statistical measures of
product or process quality that are used in quality management.
Examples
of these
are
throughput, process
___I·
defect rates,
variability,
machine uptime,
first pass yield,
I
product
material waste,
6
and absenteeism.
late deliveries, personnel turnover,
The decision
there are
achievable if
may be
possible
to achieve
higher rates
tolerated.
Such a
shortcoming of DMOQ relative
to COQ:
is
material waste
for
aggregated and used
However,
workers
improvement rather
of a category
providing a
of problems.
road map
quality experts
are
in
to some
this way,
(notably Deming
[1983])
as a basis for
claim
they cannot be
tradeoff analyses as COQ numbers can.
harmful
by factory
often provide
decisions
ignored by COQ or are
magnitude
thought of as
Finally, some
that direct measures
aggregated and used
Deming
believes
is a misleading
nearly
process
the
impossible
that
and potentially
exercise because many quality-related effects
profits are
activities
physical
DMOQ may be
improvement.
for quality
can.
relative to COQ.
than merely recording
In
superior precisely because
using COQ
COQ measures
for quality improvement
they usually direct attention
that needs
if more
DMOQ measures cannot be
Direct measures
information
it
illustrates one
are easily quantified and understood
immediately useful
because
some processes,
situation
some advantages
well as managers.
as
simultaneously
throughput
tradeoff analyses as
DMOQ does have
Direct measures
of
and
the process of
in
in
example,
For
various goals.
the
reaching
inherent
tradeoffs
be
may not
such objectives
course,
Of
uptime.
employee
throughput,
and absenteeism, and to maximize yield,
turnover,
is
defect
to minimize
tardiness,
delivery
variability, waste,
process
of quality
If each measure
objectives will be
then the
taken by itself,
rates,
irect measures
the specific measure being used.
on
depends
rule used with such
that impact
to identify
7
and quantify.
The
first of
of revenue
these
and cost
objections
of quality
quality management decision
a decision
it
is
the
a
tool
is
shortcomings
effects
in order
profitability.
maximize
Some
currently
effects
to measure
Thus,
the
stay
the impact
elements
effects
of quality,
out of a market
firm(s),
quality products,
basic
idea
of
well as
is
to
cost
to go
with RACOQ
into revenue
is
accounting
for higher quality goods,
the deterrence
of
of
(revenue minus costs).
that should go
because
not
Rather,
some
RACOQ
the
is
of quality on firm
of potential
market
entrants who
the quality position of
goodwill and reputation
and
RACOQ
in industry.
decision rule
quality profitability
of the
incumbent
The
the use
third
that might overcome
of quality as
obvious
the
knowledge,
being used
a tool
for quality are price premia
share
To our
of COQ and DMOQ.
the revenue
ameliorated by
(RACOQ) accounting,
tool.
conceptualization of
estimate
to
that
may be
lost revenue
effects
(opportunity
of
the
having high
costs)
due
to poor
quality.
The principal drawback of
is
the
near impossibility of measuring
mentioned
one
revenue
effects of quality.
must distinguish
short-run effects
view,
of
trying to
that
value
implement
it is
for
and make
on profits
impossible
to
accurately
A second
tradeoffs
of
implement an RACOQ system
between
the above-
difficulty
long-run and
improving quality.
get numbers
decision-making, weighs
is that
The Deming
accurate
heavily against
enough to be
attempting to
RACOQ.
Despite
these
shortcomings,
RACOQ
should not
______
be dismissed
8
immediately.
matter
are
how
zero
DMOQ,
Any
estimates
crude,
(as COO
RACOQ
must
does
forces
related
decisions
effects
that
are
be
revenue
superior
to
think
and pushes
to
effects
assuming
In
one
to
that
addition,
strategically
try
to
of
therefore,
tool,
extremely
Relative
crude.
quality
improvement
about
quantify
if
to
the
of
the
ought
(Deming
[1979,
vantage
section,
so
RACOQ
has
as
hide
to
to proceed.
quality
[1983],
describe
Juran,
our
[1974],
Obviously,
there
approach
to quality management.
sketch
taken
[1982],
we
may
approach
from
Garvin
-- i
-------
as
refer
though
Tsuda
to
of
and
the
"the"
there were
are
no
the
are
details
RACOQ's
of
of
how
advantage
there
is,
sources
[1980],
each
Japanese
example,
our
description
is
a
a
Deming
of
composite
[1981],
Schonberger
(For expository
Japanese approach
works
Crosby
for
(Hayes
single
For
their written
definitive
Therefore,
a
a
disadvantage
Japanese.
and Gryna
[1984]).
as
issues.
to quality management
variety
1983],
sometimes
management
a
COQ
quality management
sources
is
to quality management as
Japanese
the
Juran
approach
"the"
and
strategic
estimates
the
However,
strategic
Crosby,
"gurus",
Juran
1984]).
point on
we
of Deming,
three
effects
COQ
the
dominates
revenue-side
DMOQ,
information
strictly
APPROACHES TO MANAGING QUALITY IMPROVEMENT
approaches
its
even
RACOQ
2.
this
no
quality-
is
In
these
unlike
over DMOQ
FOUR
quality,
identified.
quality decision
quality
the
implicitly).
one
Conceptually,
aggregating
of
to
purposes,
quality
unified program authored
~ --x~^~-~-rr~-~=- ~ --~r---- --r- r-·-... ·-_-... _--r·7-i-~~ l.,.'--~-I .-.- ~
-- n
person.)
by a single
underlying philosophy of
recommended,
the approach
and
quality management
we
look
and
at each author's
is
how quality
to
be
decision
tools and decision
(SQC)
techniques.
recommended by
rules
attitude on
at each author's
look
tools and
in light of
author's program
each
Finally, we
program philosophy,
get at
should be
and what
To get at
quality program.
the
To
is
important,
the
objectives
on why quality
viewpoint
defined,
orchestrating
to implementing and
improvement.
techniques,
look at
we
for quality management.
We
the
examine
each program as well
the
also
statistical quality control
actions and activities
the recommended allocation
as
the
of quality management and improvement responsibilities among
employees of
firm.
.The Deming Approach to Quality Improvement
W.Edwards Deming was
He began
after
originally
end of World War II and
contributor to
control.
In recognition of
the Union of
instituted
to
the
the Japanese
precision
his
he is
Japanese Science
acknowledged as
a
the
Japanese
(JUSE)
awarded annually
the most advancement
and dependability of product.
__I____1I____XI______·1-·._1(1
shortly
in quality
and Engineering
Deming Prize,
that demonstrates
statistician.
in Japan
contribution to
highly prestigious
firm
control
the Japanese ascendancy
principal
economy,
trained as a
teaching statistical quality
the
of
Section One on
framework in
the
the
at
look
tools and techniques
the
author,
the
we
program,
each quality management
For
IIIII 1_._i.l____
of
10
Deming does
one
can
infer
of product
not give an
by
a definition
and service
process
achieve
leads
to earn
(Deming, p.
11).
validation
to
accept
for these
reducing
followed
sales,
test,
sales,
to higher
stay in business,
ensure
The
strength.
to protect
jobs and more
jobs"
firm, not quarterly
Improving quality provides
Deming
claims and expects
offers
little
and
his students
the
empirical
clients
fct.
them as
paraphrases
that the
Deming as
help of
(Juran and Gryna
top management
of
the
for improving quality.
the system.
system with the
and Juran
test and
manufacture,
and to
these goals.
overriding responsibility
the
"to
is paramount.
for meeting
managers work on
improvement
the
a never-ending cyclic
to long-term competitive
dividends,
Deming believes
1982b]
but
and manufacturing
Long-term survival of the
increases,
best path
advocates
manufacture,
firm should be
investment,
profit
on
specification by
that higher quality leads
productivity which
the
of quality,
infinitum.
Deming claims
of
he
and then redesign,
surveys
survey, ad
objective
to
focus
the design
in
this,
of product design,
by market
market
To
his
noting
conformance
uncertainty and variability
processes.
explicit definition
[1982a,
in a
system;
Workers work
job
of management
the workers.
[1980], pp.
to improve
is
Both Deming
315-316)
the
Tribus
follows:
The
firm has
(pp. 31,
believe
68)
that most
(approximately 80%) quality problems
are management-controllable,
not worker-controllable.
blaming quality problems
workers
who have no
Therefore,
power to change
and probably counterproductive.
the
system is
on
at best useless
11
Although Deming uses
reduces
he
costs
to argue
a basis
far
crude
too
capture
to
inventory reductions,
quality,
so
cost
of
that COQ
(e.g.
the benefits
of
morale effects)
of COQ will lead
use
the use
thinks
Deming
all
effects,
the
and
improved quality,
for
selection or measurement
the
for
projects.
quality improvement
of managing
accounting
cost-of-quality
rejects
justification as
is
in favor
improvement
that quality
idea
the
to severe
of
of
technology
revenue
side
improving
errors
in quality-
related decision-making.
Since
believes
Deming
improves
costs and
competitive
superfluous.
to be
accounting
optimizing direct measures
useful direct
use
in
employee
histograms,
Ishikawa
1976]
work
for
experts
in the
the decision
favors
e.g.,
for
Deming
To aid
these
firm should be
such as
sequential
Burr
1976],
treatment
the
~~_~ ________
---------1 _1___I~~ .~ 1__.·__~ __~~·~~~·
11_
____1_111_
techniques
proposes that
these
to analyze
Quality and
familiar with more
sampling,
and
Feigenbaum
sources
_
He
extensive
and scatter plots.
treatment of
analysis,
two
of
("fishbone")
Ishikawa
charts,
of these more
identifies
rule
familiar with elementary SQC
for an elementary
should use
cost
in developing
techniques.
analysis,
control
techniques
cusum charts,
[1980]
He
improvement opportunities.
statistical
(See,
he
of quality.
firm be
the
diagrams,
All employees
finds quality
position,
quality control
such as Pareto
techniques
quality always lowers
measures of quality, Deming advocates
of statistical
every
that improving
1983],
of
techniques.)
their own
statistics
advanced
distribution
design
(See
theory,
experiments.
Grant and Leavenworth
advanced techniques.)
of
improvement of
processes:
12
eliminating common
special
causes
causes of quality
that are
systemic.
problems.
Examples
products,
improper bills
programs,
and
only
of quality problems and
of
these are
of materials,
inhospitable working
be corrected by management.
are identifiable
or machine.
Common
inadequate
conditions.
Special
Statistical quality control
distinguishing between common
causes and
providing
eliminate
how
to
causes are
problems
poorly designed
training
Common
causes
with a specific individual,
insight into
eliminating
are
batch
the
problems
that
of materials,
techniques
special
causes can
are
useful
causes,
causes
and
for
for
of quality
problems.
How does
Deming's
one
excellence according
14 point program constitutes
recommendations
and
achieve quality
to management.
then discuss
1.
Create
and service,
business.
We will
core of
his
summarize
the
constancy of purpose
to become
toward
and inspirational
This
statement
statement of purpose
suppliers,
shareholders,
understand what
to expect from
guide employees
in
the
improvement
competitive
Top management must articulate
organization,
14 points
them.
with a plan
operational,
customers,
the
to Deming?
their day-to-day
to stay
a consistent,
of purpose
for
should allow
lenders,
firm.
and
and
of product
the
credible,
the
employees,
public to
The statement
tasks as well as
in
should
their long-
term projects.
2.
Adopt
---'-'-'^"1-1`--
the
1`-1-"--1'"I'-----------'-
ew
philosophy:
Poor quality
--····-------··-·--··-·-
is
intolerable.
13
3.
late,
Cease
costly,
evidence
that
inspection
4.
on
End
price
tag.
along
with
single
a mass
6.
for
modern
in
workers.
the
inculcate
a
The
need
for
of
modern
basis
qualify
managers
the
of
of quality,
cannot
with
must
advantages
longer
system
culture
training
beneficial
job
the
learn
of
a
of production
that
quo
stresses
should
never
basics
caused
clearly
its
of
on
job.
Every
statistical quality
until
by
the
lack
statistical
of
methods
training.
expectations
on
what
performance.
methods
of
responsibility
be
or process.
is
no
on
status
the
quality
Foremens'
improve
product
communicate
Institute
too
relationships.
in
are
7.
that
trained
defects
high
is
statistical
measures
recognizing
methods
show
constitutes
business
Purchasing
improvement.
training
must
eliminate
suppliers
must
Further
Management
Inspection
instead,
meaningful
forever
control.
that
on
long-term
and
be
to
awarding
vendors,
satisfactory
should
in,
quality.
Management
Institute
employee
of
with
striving
considered
of
depend
evidence
and
inspection.
Require,
built
Eliminate
Constantly
constant
is
practice
price.
service.
mass
basis.
Instead,
sourcing
on
ineffective.
quality
together
5.
and
and
the
statistical
to work
dependence
supervision of
must
be
focused
production
on
quality
III
14
automatically
to
take
that
improve productivity.
immediate
action on
restrict workers
workmanship must
8.
Drive
without
out
fear.
Every
asking
top
between
have
Goals
intended.
purchasing,
for
effects exactly
such as
they do nothing to help
job.
between
check to
the
see
the
research and development
the
of a
for
opposite
frustration
of
first
and resentment because
job.
quotas.
and numerical
of a system to help a
met.
those
it right the
or "Do
erects an adversarial
is
Goals set
road map on how to
person who must meet the quota and
the quota
force.
the work
employee do a better
trace
Quota setting
that
for
Top management,
is a prerequisite
"zero defects,"
Eliminate work standards
standard includes even a
better
This
goals
time" do nothing but generate
11.
questions, asking
departments.
management without the provision
goals
to work
improvement.
Eliminate numerical
meet the
able
or reporting quality problems.
production,
excellence in quality
by
Conditions
jobs with pride of
employee must be
must all -learn to work as a team.
10.
be prepared
to quality work.
their
ideas,
Break down barriers
sales,
must
be eliminated.
further instructions,
marketing,
Management
barriers
from doing
fear of expressing
9.
Quality improvement will
not accounting numbers.
performance,
No work
person do a
relationship
the person who will
Such relationships
are not
15
conducive
12.
his
to
Remove barriers
right
pride
in
cooperation
to
pride
13.
that rob
work, and
Institute
a vigorous
jobs will need more people,
will help people
14.
day
on
the above
perpetual
some
job.
and retraining.
of education
less.
jobs.
that some
and
training
departments
Everyone must learn
the
theory and application.
structure
13
Education
Quality control
responsibilities.
of statistical
Create a
program
fit into new
must adjust to new
rudiments
remove systems,
through quality improvement will mean
Productivity gains
to take
hourly worker of his rights
the
do a good
to
allowed
priority and
Management must
benefit.
of his
be proud
the hourly worker and
If workers are
workmanship.
and procedures
policies,
that stand between
then quality will have
their work,
productivity will
to
of
for quality improvement.
in
points.
top
that will
management
A mentality
for
push
every
constant and
quality improvement must be engraved
into
the management
system.
Deming's
approach to quality management places much of
direct responsibility
the
management
system to enhance
managers must be
_-111-01__
little
is expected to lead
a management
improvement on management and
for quality
line workers and very
·_
on quality professionals.
the push
the
involved in all
___
the
Top
for quality and to develop
improvement process.
stages of
Top
the quality improvement
16
process.
Every line worker
quality
of his
trained
in SQC so
they
responsible
or her own work.
that they may
Machine
focus
to
give up
Quality professionals
the methods of
changes
firms,
on the
the organization,
responsibilities
to
the
be
system
for improvement.
the
Quality
should
workforce and
should concentrate
change
the
for quality assurance,
and undertake
Deming demands
that a major
organization.
Considering
organization is
The
discard COQ accounting,
relationships,
on
improving
changes.
on how
His
but give
incentive
structure
cultivate
intolerance
of
training programs.
in the
radically different a Deming
organizations
today,
Deming gives
to implement and orchestrate
describe how
assistance
on how
he
thinks
to
get
such
firms
ought
there.
The Juran Approach to Quality Improvement
Joseph M.
fields
Juran has
made
significant contributions
of quality control and management.
Handbook is widely
for
supplier
cultural upheaval take place
how
to throw
reallocate
significant new
14 points
little
firm would have
change policies for
from most U.S.
very little guidance
run,
for
organization.
defective materials and work,
to be
are
adopting Deming's program would force
numerical goals and quotas,
massive
operators
defect prevention.
For most U.S.
radical
insuring the
the policing function and
on education and consulting
management.
for
monitor and control
work in and discover opportunities
professionals are
out
is
His
in the
Quality Control
read by quality professionals
and he
has
17
co-authored 10
authored or
development of
Juran also played a
Dr.
hundreds of articles.
Juran defines quality as
down
and field
availability,
importance
the
on
the
the
of
phrase
"life
brings
this
and service
the
of
(Juran
[1974],
making
does
While
a
not.
importance
between
the
factory
The
the world.
4-2)
p.
[1974],
of
to adopt his
In fact,
Although he
shows
accounting for
key
Juran
terms of dollars
floor
is
in
of-quality system
from any
change
is designed to
The
in decision-
organization
states
whereas
gap is
that will
the
or
to develop a
translate
the
that the
of physical units
fit
Juran
easily into
cost-of-quality
to understanding
in
approach to bridging this
these effects
approach to quality management,
two approaches.
terms
of quality
in his program.
management culture.
the
and
level of
a high
revenue effects
the
Juran's program
system is
goals:
two
to specifications
is
management
(Juran
in
conformance
demands radical
Deming
traditional U.S.
measurement
4),
Chap.
not play a role
that chooses
does
of quality.
the cost
awareness
justifying
In
his quality management program on
increasing product
reducing
this
message across quite vividly.
focuses
Juran
breaks
of conformance,
produced
dikes"
the quality
behind
in
humanity's dependence
he emphasizes
and services
and
Exhibit 2.1.)
(See
service.
topic,
quality of goods
for use,"
"fitness
design, quality
into quality of
further
significant role
in quality.
Japanese competence
the
and
Gryna)
M4.
-with F.
[1980]
Planning and Analysis
.Quality
the popular text,
(including
books
difference
language of
language
of
"things."
the
Juran's
comprehensive
cost-
important quality-related
RFARCH
OF MARKFT
QUALITY
MARK......T RESEAR&
... A....TY O
(11AI
TTY
OF DES
IGN
QUALTTY OF CONCEPT
QUALITY OF SPECIFICATION
TECHNOLOGY
QUALITY OF CONFORMANCE
MANPOWER
MANAGEMENT
FITNESS
FOR USE
RELIABILITY
AVAILABI LITY
I -'.__.___- . .
MAINTAINABILITY
I
LOGISTICAL SUPPORT
PROMPTNESS
FIELD SERVICE
COMPETENCE
Ir INTEGRTTY
··--·--·
Exhibit 2.1
Juran's Definition of Quality
(Source:
Juran (1974), p. 2-9)
18
information
.managers.
managers
take on
This
learn
philosophies
the
tools of physical
COQ
system delivers
form they are
to
can use
used
make decisions
finanacial
In this
requires
that
"things,"
of quality
and
will have
impacts.
or operating modes.
considerations
decisions.
sharply with Deming, who
improving direct measures
Juran's
in
that can be easily understood by
the language and
financial
Since
managers
contrasts
faith that
favorable
managers
into monetary terms
way,
relevant quality data
to,
they need
not change
their
Just as
they use
financial
in other
areas of
the
considerations
Juran's approach
to
firm,
to make quality-related
and COQ
fit
into
the
traditional managerial decision-making framework and culture.
Furthermore,
top managers do not have
quality as a
"new religion" as advocated by Deming.
can
base
their quality-related decisions
provided by accountants
According
of bad changes
to Juran
(Juran
(control).
the breakthrough sequence,
is
[1964]),
of
they
facts
all managerial activity
the
approach to
control sequence,
and the annual quality program.
to attack
special
is
(breakthrough) or prevention
of three parts:
designed
(analogous to Deming's
Rather,
financial
Consequently, Juran's
quality management consists
sequence
on the
importance
and quality professionals.
directed at creation of good changes
control
to accept the
causes),
The
sporadic problems
the
breakthrough sequence
attacks
chronic problems
program
institutionalizes managerial control and review over
(common causes),
and the
annual quality
the
quality management process.
Juran states
__1______11______I_·______
that sporadic problems must be attacked through
_--_-_- --------11
l---Larsrus_l...I
.._ __
19
the quality control process.
Quality
process
through
which we measure
compare
it with
standard,
Gryna,
as
p.
The
any other
control
1.
3).
the
is defined as
actual quality
and act
on the
in a quality
feedback loop control
sequence,
Choose
steps
control
performance,
difference"
(Juran and
control process are
process.
"the
These
steps,
the
same
the
are:
control
subject:
i.e.,
choose
what we
intend
to
regulate.
2.
Choose
3.
Set a standard or goal
4.
Choose a sensing device
in
a unit of measure.
terms of
Measure
6.
Interpret the
7.
Take action
reviews,
as
for
that can
difference
(if any)
The program
the breakthrough
longstanding
between
on the
the
control
subject
include
tolerance
and
control
sequence.
Reduction of
favorable
__ - _
embarking on
_____, - 1-1--_-I -1__
chronic problems,
breakthrough
is
comprised of
followed by a
process
that a breakthrough
for
is called
requires a managerial
The entire breakthrough
Prove
such
charts.
for attacking chronic quality problems
a breakthrough in attitudes,
__
__
standard.
difference.
histograms,
This managerial
Step 1.
actual and
and standard statistical process aids
adverse situations,
breakthrough.
attitude
subject.
measure
attacking sporadic problems
foolprQofing,
knowledge.
control
actual performance.
frequency distributions,
parts:
the
the unit of measure.
5.
Tools
for
two
breakthrough in
is outlined below.
is needed and
create an
an improvement program.
- , -,_ __" - 11_.
·
--- _--
·- ·-..-RI -11I ----- ; -·-I
- ---,
·-I
-- -----I I ----1...--...--
_-._'_1_----`-_
__'~-_'
20
Factual
actual
information
or potential
product quality of
management
with
information also
improvement
for
the
terms,
the
f
extent of
shows
2.
These
analysis
of
the
Step 3.
Organize
to
is
delivery parameters,
due
to
the
be
resources
expressed
the vital
few projects.
(financially)
the most
for a managerial
representatives
In
causes
of
advice
on overcoming
of
the problem,
this
the
arm.
proposing new approaches,
and action
to change
on
a
conducted
be aided by
The
steering arm
involved
in
definition and agreement
improvement program,
resistance
step,
important.
authority to experiment,
the
is
from various departments
The steering arm provides
specific aims
requested
breakthrough in knowledge.
is
the
from an
in monetary
chronic quality problem areas
steering arm and a diagnostic
the program.
This
of upper management.
investigation of a chronic quality problem can
formed of
the
familiarize
the benefits possible
justify
or
quality problems.
organizing a
on
to quality,
collected
firm's
benefits should
language
Identify
the
or
income
firms
management
program and helps
universal
cost,
ales
competitive
to determine which are
The
=
loss
the
program.
Step
pareto
on quality,
ideas on
possible
information and
inherent in
implementing
the
solution
to the problem.
The diagnostic arm is brought together
causes,
not the
comprised
also do
_11
remedies,
of professional
diagnosis.
_·______1_1111·1___IX_I.___.
The
of a problem.
specialists,
to determine
The group
is usually
although line
diagnostic arm provides
the
the
supervisors
manpower
21
required
for the
objectivity
Step
4.
Conduct the analysis
diagnostic
skills,
and
the
to
determine
the cause
of
the
a remedy.
diagnostic
defects,
the
of analysis.
problem and
The
investigation,
arm studies
hypothesizes on
the
the
symptoms
causes of
surrounding
these
symptoms,
the
and tests
the hypotheses.
Step
people
The
"art"
establishing
important
gain agreement on
Step 6.
institute
Step
7.
performance.
terms
that are
on both
aspects of
the
than on
includes
ideas
change,
and
(c)
the
trying to
change.
This
departments
step involves action
of management for
Second,
the
to take action
in
two parts.
instituting the
built
solution
around a
solution
factual
is installed
(and
in a way
effective.
Institute
The
to change
to
(b) using participation to get
Convince the necessary
it
resistance
the
of
the changes.
that will make
on
basis
the
involved rather
in
changes
the
social
approach.
the
resistance
the change
gained with a presentation
monetary)
of proposed
to overcome
the need for
First, the approval
must be
effect
of dealing with
change,
technical and
the
find ways
to the people
logic of the
the
Determine
involved and
change.
(a)
5.
controls
last step of
1.II__________ICI-^__X_1____1_1--
to
the
hold
the new
level of
breakthrough process
_._
-ril__*;
- .11-1.l1r.l.
----^
-
is
to
to
22
follow
are
resolved.
quality program is a
The annual
vehicle
short-term quality policies and
term and
needed.
and modified as
A
by the quality department
for
report
top
to
management
Each year,
long-
are reviewed
objectives
top management
is prepared
of
the quality accomplishments
show
are
These accomplishments
past year.
for
improvement process.
the quality
in
involvement
the
the
that unforeseen problems
and
be effective
to
solution continues
that
to assure
the problem solution
progress on
the
compared with
the
previously-set objectives.
most striking point about this
The
to be
is supposed
the quality area,
the vehicle
the reports
This
is
approval.
of
characteristic
responsibility
with
The
role
the entire
for
the
Active
functioning of
proposed activities
are
present-value projects).
reduce
costs
The
Juran program.
and
cost-justified
Management
is
professionals prefer
is
use.ful,
(i.e.,
needs
to make
Quality professionals play a dominant
(This
one.
primary
rests
but not
the quality programs because all
increase profits
improvement process.
the
support and participation of
top management for quality improvement
essential
is a passive
for quality management and quality control
the quality department.
in
for management's
top management
of
that it
exclusively by
it is carried out almost
but
is
involvement
for top management
quality professionals who prepare
review and
annual program
one
only to be
motivated
to
the Juran program work.
role
in
the quality
reason why most quality
the Juran approach.)
-111·____~~~~~~~~~~----_1___·~~~~~~~~~~~~_1_1__1_1_~~~~~~~~~~~~~___
positive net-
Juran describes
23
detailed
responsibilities
assurance,
In
inspection,
for quality control engineering,
reliability, and
contrast, hourly workers
quality management
the
control
middle
To
process.
sequence are
managers
full control
Both the
staffed,
and
in Juran's
and
implemented by
Sporadic problems
whereas chronic problems
management
involvement
objectives.
COQ accounting plays
identifying,
selecting,
improvement projects.
to play
breakthrough sequence
in attitudes and knowledge.
program allows
role
quality groups.
professionals.
the Juran program:
sequence,
breakthroughs
formal
coordinated,
and quality
summarize
have no
corporate
quality
an
monitoring,
The
require
the
require managerial
annual quality
in quality policies and
important
role
in
and controlling quality
Quality professionals
are
the
champions of
quality improvement.
The Crosby
Approach to Quality Improvement
Philip B.
Without Tears,
Crosby,
developed
Crosby Quality College
vice
the
in Winter Park,
According
costs and
Deming
to Crosby, quality
for fourteen years,
Over
corporate
after
15,000 executives
is important because
The goal
the firm's profits
and unlike Juran,
He was
College.
increase profits.
and increase
and Quality
program and founded the
Florida.
up from line inspector.
attended his Quality
is Free
Zero Defects
president for quality at ITT
working his way
have
author of Quality
of
through
Crosby believes
his program
is
it reduces
to control
improved quality.
Like
that increasing quality
24
always reduces costs.
Crosby insists
to requirements.
tconformance
operational,
This
that quality be defined as
definition
is
concrete,
and quantifiable.
Crosby's
program relies
heavily on
both cost-of-quality
accounting
and direct measures of quality.
COQ
management
the magnitude
costs and
profitable opportunities
of quality-related
for corrective action.
used to identify quality improvement
measure actual accomplishments. The
of quality
defects
is
the defect rate.
in all operations an
(Crosby
1984],
stages of maturity:
direct measure
"absolute of quality management"
uncertainty, awakening,
is
the quality
This grid has
enlightenment,
and six measurement categories:
quality organization
status,
cost of quality, quality improvement actions,
summation
of company quality posture.
measure progress in
is opportunity
for
it
and a
it can
improvement of quality management;
to be a useful
problem
tool for evaluating
help
and it can
Many managers
the
state
of
their quality management operation.
The
14
heart of Crosby's
approach to quality management is his
step Quality Improvement Program.
111____
to
can convince
improvement;
provide guidance on what areas need improvement.
the grid
wisdom,
This grid, which is easy
can be used for several purposes:
that there
five
management
handling,
find
to
the goal of zero
(See Exhibit 2.2.)
understanding and attitude,
managers
also
as well as
most important
for measuring quality progress
management maturity grid.
understand,
identify
DMOQ are
opportunities
Crosby calls
to
show
Chapter 8.).
Another tool
and certainty;
is used to
This program outlines a
11
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Exhibit
2.2
Crosbys Quality Management Maturity Grid
(Source: Crosby (1979), pp. 32-33.)
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E
C
E
I
onY
I
C
= ES
0 E
0,on
3
.
.
IE
=
w
W-
Qw 0O
_-
25
process
for
quality.
.Wqe
Step
step is
increasing quality management maturity and
outline
1.
the
Management
to convince
steps
o
the program below.
Commitment
top management
improvement.
Top managers must
commitment to
participation in
improving
The
of
first
the
realize
and most
need for
that
the program
important
quality
their
personal
is essential
for
success.
Top management should issue
everyone
cause
is
the
expected to
requirement
customer really
a quality policy
"perform exactly like
to be
need."
officially
Likewise,
changed
is a practical way to
improvement
cost reduction.
Step 2.
Quality Improvement Team.
department are
Team.
This
brought
together to
team coordinates
the
3.
performance
Quality Measurement.
throughout the
measuring improvement,
developed
to
and
to
the
that
achieve profit
Improvement
step program.
this team
from each
The
on an as
basis.
Step
used
what we
the Quality
fourteen
that
requirement or
Representatives
form
quality department provides assistance
needed
to
states
top management must believe
quality improvement
through
the
that
for
firm and provide
to monitor quality
a baseline
direct measures of quality
every part
of
document areas where
corrective
In order
the
firm.
must be
These quality measures are
improvement
action is necessary.
for
is possible and
26
Step
4.
Cost of
all
defect-related
The
quality
the
classification
areas
for
Quality
Quality
costs
improvement
of
profitable
are
5.
and
costs.
the
of
cost-of-quality measurements.
quality
see
6.
brought
this purpose.
the
ladder.
Step
for
7.
concern
will
be
to
forces
Establish
that
selected
to
investigate
how
concept
from
entire
used
an Ad
of
This
in
assist
in
indicate
input
for
the
the
to
Hoc
team learns
the quality manager.
come
the
to
to
the
results
credibly
The
new
firm.
all
employees
quality
light
in
problems.
previous
during meetings
resolved are
for
passed on
up
necessary.
Committee
apply
must
step allows
where
quality
employees
improvement.
attention
be
all
communicate
response
have
cannot
are
few members
The
that
supervisors'
A
company.
taken
of
Management
quality
Action.
Program.
the
and provide
supervisors
for
correction
Problems
Task
measurements
of
office.
department
is publicized widely within
that action
are
Trained
Corrective
Opportunities
steps
new
attitude
Step
to
its
quality
cost
estimates
comptroller's
Involvement
at
demonstrate
Initial
Grid.
begins
the
the
action
Awareness.
stage.
by
These
corrective
Quality
this
made
team
Management Maturity
Step
Evaluation.
for
the
improvement
the
Zero
about
the
Zero
team
Defects
Defects
are
program at
Zero Defects
27
Step 8.
Supervisor Training.
-quality improvement
management.
program by
program is
A
conducted
Managers must demonstrate
explaining it to others.
time-sequenced nature of
supervisor
formal
the
with all
levels of
the
step deviates from the
steps.
the
training should have been
the
their understanding of
(This
rest of
orientation to
Crosby
occurring at
states
every
that
step in
the program.)
Step
9.
Zero Defects
establishes
Zero Defects
By making a
special day of
attitude"
Step
meet goals
goals
receives
10.
Day.
as
single day,
the performance
it,
it
the
standard
is ensured that
firm
for
the
everyone.
"new
the appropriate emphasis and is remembered.
Goal Setting.
and
In a
To get
to accomplish tasks
for themselves.
These
30-,
employees to
as a
60-,
team,
learn to
employees
set and
establish
and 90-day goals are
specific and achievable.
Step
simple
11.
Error Cause
one-page
forms
to
are
acknowledge
responsible
employees to
encourages
see
Employees are
report any problems
from performing error-free
must
Removal.
work.
for developing an
answer.
This
suggestion program;
future problems.
and they
system allows
their problems and
(Note: This
it is a problem reporting program.)
1---1___1_·11_1_11__I__
them
functional group
twenty-four hours,
immediate response taken to
the reporting of
that prevent
The appropriate
the problem within
asked to use
is not
a
28
The
prizes
for
recognition.
support
the
individuals,
receive
rewards.
reward
employees
Deming
believes
statistically
for
nothing
a
on
based
award
developing
against
outstanding
who make
since
firm,
random
to
receive
awards will
efforts
towards
improving
fail
Step
Quality
need
to
upgrade
Step
to
situations
steps.
employees
will
learn
brought
and
14.
Team
eighteen
will
It
chairpersons
regularly
the
Over
some
quality
quality,
a
do
are
attempt
but
their
of
to
Since
Again.
to
employees
implement,
the
discuss
the
education
that quality
sure
new
quality
attitudes
are
actions
necessary
installed.
being
program
typical
turnover
and
divisions
from different
programs
to make
and
to
seek
awards
and reduce
Quality department
Therefore,
perpetual,
who
firms
quality.)
months
erase
that
employees
become discouraged
together
improve
Do
worst,
Councils.
Quality
Improvement
to be
twelve
13.
a
At
on
system will
such
selection.
improve
individuals
best,
At
random basis.
the
to
efforts
reward
programs
most
that
may
management
While
programs.
as
cautions
Deming
contrast,
(In
they,
not
or
whether
program
to
employees
encourages
program
recognition
A
performance.
of
recognition
appreciate
People
it.
on
tag
price
a
not
but
noisy,
and
public
work
people
that
believes
be
should
Recognition
having
by
demeaned
Crosby
acts.
outstanding
perform
or
goals
their
financial.
not
are
meet
who
those
recognize
to
developed
are
programs
Awards
Recognition.
12.
Step
and
effort
of
changing
the
improvement
ingrained
in
takes
all
early
is
29
employees,
the
Relative
on
His
program should be
to Deming and Juran,
the process
14
places
of changing
attitude
in
little emphasis
relative
to
the
Crosby places
the corporate
step program gives clear
improvement
repeated indefinitely.
guidance
culture
and attitudes.
Conversely,
on statistical quality
Crosby
strong emphasis
for building a quality
organization.
Deming and Juran.
a
control
is much more
Crosby
techniques
people- and
organization-oriented than tool-oriented.
With respect
organization,
recommends
necessary
for the
to
the role of quality professionals
Crosby
that
falls
the quality
to ensure
between Deming and Juran.
organization exist
met and to
for each operation are achieved"
pp.
Quality departments
prevention,
of the
demand corrective
job
Crosby
233).
the conscience
However,
for others.
responsible
marketing or management
emphasizes
[1979],
encourage defect
the quality
Crosby cautions
the quality organization becoming involved in
creation, production,
Finally,
the
p.
cost of
"measure and report
improvement,
(Crosby [1979,
organization should not do
against
should
the
(Crosby
teach quality improvement, and act as
operation."
the degree
ensure that
quality goals
conformance,
Crosby
that the acceptance and performance standards
firm's products are
56-57.).
"to
in the
of a
the
firm's product.
that the quality organization
for quality problems;
the departments
is not
that made
the
I
mistakes are.
Active
- program.
top management participation
Believing
I
that workers'
is
crucial
performance
to Crosby's
reflects
1(___1___1_^________
the
30
attitudes
Crosby demands
of management,
their attitude
towards quality.
affirmative
steps
to ensure
that
what we
does not give
He believes
his program.
the
attitudes of
should be
workers
a large
that
[1979], p.
(Crosby
The only
to fill
describing problems that prevent
work
the
changed to
p.
[1979],
hourly work
57).
force
in
improvement program
a quality
directed at management.
program is
the
the
since worker performance reflects
the management,
in Crosby's
(Crosby
to
"take
like
to be officially
role
their
understand that
'perform exactly
to
and our customer really need'"
Crosby
become
should
Top management
the requirement
cause
must
the employees
is
quality policy of the company
requirement or
Zero Defects
of conformance.
personal standard
managers revise
that top
out
role
for hourly
simple
one-page
forms
them from performing error-free
117).
The Japanese Approach to Quality Improvement
The
success of
competition
et al
made
and
[1983],
Garvin
to Japan.
tastes,
in quality since
1949 when Deming
suit their own
firms,
, .-
from both the
have quality
Deming program and
Although quality policies vary significantly
program.
among Japanese
have
the Japanese have
so that most Japanese companies
that differ
Abernathy,
The Japanese
[1980].)
Naturally,
e.g.,
(See,
they learned from Deming and Juran to
improvement programs
the Juran
fact.
Robinson
towards excellence
his first trip
adapted what
needs
is now a well-documented
[1981],
been working
Japanese manufacturers in worldwide quality
I----'
there do
_--
seem to be
-
---'
------
some common practices
----- --- ---- --
-
- --
-------- -
-
------- - - '-'
31
and philosophical beliefs.
elements
here.
Schonberger
Our
rests
treatment
summarize
relies
Schonberger
the
department
makers
of
should have
with
the
(p.
52)
variable,
is,
that
to
develop
of reducing
for
the quality
is
the
goals
in
of
and sustain a
These
of quality:
goals
conformance
habit of
fit well
uniformity around
(Sullivan
[1984])
rejects
to requirements
is measured as
and improving uniformity around
ongoing process
production
the principal
definition of quality
Instead, quality
quality
this precept
and to work toward perfection.
This
the
for
and Deming.
states
the yes-or-no character of
definition.
on Chapter 3 in
responsibility
That
the Japanese working definition
target.
common
a key precept of
Philosophically,
quality management are
improvement
those
the primary responsibility
complete agreement with Crosby
Schonberger
"The
the part."
of manufactured products.
Japanese
heavil'y
(pp. 48-49.)
quality management is:
with
some of
1982].
According to
Japanese
We
a continuous
the
variability and
target requires an
tightening
frequency
distributions.
Schonberger
identifies
facilitating concepts,
the
core
of Japanese
and
seven
five
basic principles,
techniques
and
aids
five
that
compose
total quality control.
Basic Principles
1.
process
Process
as work
they occur.
__III
IUB
Control.
Process
is being done
Processes
so
that are
as
control
to
means
checking the
detect problems
in control produce
___
as
soon as
products
that
32
inspection.
need no
quality factors are
what the
awards
current quality
the
3.
of quality
frequently
control inspectors
manufacturing
4.
are
line
in order
performs
the
customers
firms,
quality
that do not fully
in Japanese
tell
firms
first and output second.
to
authority
the
stop
the
gives
This
line workers.
Own Errors.
In a major
from
departure
the worker or work group that made bad parts
rework
to correct errors.
worker responsibility
This practice emphasizes
for quality and allows workers
to
learn
from
their errors.
6.
of
items,
100%
Check.
Inspection
to
is applied rigidly
feasible,
to component parts.
policy of
having every
7.
-
from
to correct quality problems.
to the
Correcting One's
Western practice,
to
is
inspectors,
to pressure
in
Each worker has
quality responsibility
5.
is,
not accepted.
Line Stop.
production
who has won
subassemblies
comes
that quality
items
Defective
are,
In many Western
Top managers
meet quality standards.
manufacturing
give
parts and
to pass
performance
improvement.
on Compliance.
Insistence
recent
this practice
of
The purpose
everyone - managers, workers,
and rate
state
the
what
improvement projects
etc.
for quality,
document for
measured,
visitors
and
customers,
management,
workers,
tell
display boards
what
Physical plant arrangement and
Easy-to-See Quality.
2.
worker
Project-by-Project
of every
item, not
finished goods
This practice
is
just a
sample
and, where
aided by
the
check his own work.
Improvement.
Japanese
employees
are
33
The
improvement projects.
instill
the habit of
Facilitating
1.
Quality
keeps
see
to
purchasing
staff
coordinates
complex
or
2.
for
QC
3.
QC
help
department,
has
of defect
the removal
accomplishments, monitors
It may
joins
followed,
the
and
to monitor supplier plant procedures,
also perform some
of
the
lot sizes are
only
more
inspections.
Lot Sizes.
Small
but they are
not
vital
the
key
for assuring
that
are discovered early.
Japanese
Housekeeping.
factories
helps provide an
improved work habits,
quality,
for quality -
responsibility
janitorial
the
are
equipment,
to
of facilitites.
with those who
foremen and
have
workers,
not a
staff.
Less-Than-Full-Capacity Scheduling.
it easier
neat and clean.
environment conducive
and care
Housekeeping responsibility resides
to meet daily
and makes it
schedules,
feasible
problems.
11_·11_
The
that standard procedures are
training.
Good housekeeping
4.
to
is
improvement.
for quality, promotes
just-in-time production,
problems
practice
the production department
because
of quality
technical
Small
this
as a Facilitator.
Control
track
operations
behind
Concepts
primary responsibility
causes,
idea
constant and perpetual
in size,
much reduced
ongoing quality
a set of
constantly maintain
to
expected
11_1_
___
to
reduces
stop
This
practice makes
strain on
the
line
workers
for quality
and
W11
34
5.
tend
to
Daily Machine Checking.
abuse
their equipment,
their machines.
This results
While Western manufactureres
production workers
Japanese
in long-lived,
pamper
trouble-free,
productive equipment.
Techniques
1.
Exposure
of Problems.
possible.
Management and workers look
of trouble,
is evidence
stress
the
mistakes,
systems
system for
N = 2.
processes, 'it is assumed
the
first and
costly
last items
Tools
frequency
diagrams.
good.
stable
Exposed problems
the production
are
process control
Supervisors and workers are
in
defect
and
charts,
trained
run.
analyzed by
of measured quality variables,
trends,
if
sampling may be more
Random
of Analysis.
rates and
likely errors.
remained stable
has
make
production
the most
representative of
frequency distributions
before
will always
inspection of
that the process
are
early as
causes
design
be fully
and may not
4.
firms
many of
this approach to
In
for problem
human beings
Japanese
to automatically eliminate
3.
problems as
identify and
of exposing problems.
Because
whenever possible,
to
and management may deliberately
the purpose
Foolproof Devices.
2.
The Japanese want
current or potential
causes of
eliminate
there
and Aids
Ishikawa
the use
of
these
tools.
5.
Quality Control
employees who volunteer
quality
improvement.
(QC)
Circles.
QC
to meet regularly
These
circles
circles
to
should be
are
discuss
groups
of
means of
considered
as a good
35
-way of wringing some
of
the
last defects out of a production
system.
These principles,
foundation
for
the
concepts,
nd
techniques
provide
smooth-running quality operations
Japanese
firms.
Japanese
appear
That is,
final objectives and goals are expressed in
With respect
to follow
direct measures,
e.g.,
to
the
(Garvin
zero defects
analyses,
Tsuda
-analysis.
2.3)
He uses
difficult
The
the
is wary of
the
relying
have
not use
too
is
19841.
improvements
of quality
diagram shows
to work
in product
Deming's,
but
cost
formal COQ system.
costs"
to refer
to costs
that
This scheme
the
management responsibilities
among
(Exhibit
managementos
i.e.,
Secondarily,
they
improvement activities.
to improvement,
for breakthroughs
are
top
for breakthroughs,
routine
Line workers
but expresses
responsibilities
or process.
maintaining quality performance but
responsibilities.
a
themselves primarily
responsibilities
levels.
of
61-62.])
summed up succinctly by a diagram
The
managers devote
some
terms
heavily on a COQ-type
term "uncountable
responsibilities for more
Middle
pp.
the
closely.
Although they do use quality
primary responsibilities are
have
[1981,
tools,
to quantify.
firm's employees
drastic
(Hayes
allocation of quality management
of Tsuda
decision
many
to select quality improvement
the Japanese probably do
1984]
that are
1984]).
of
Crosby philosophy most
quality cost analysis is used
projects
the use
in
a
and
for maintenance
primarily responsible
have some
idea of allocation
than
for
improvement
probably matches
much better
but
most closely
with
of quality
Crosby,
Juran,
or
Deming.
I
I
III
36
TOP MANAGEMENT
DIVISION HEAD
SECTION HEAD
SUPERVISOR
FOREMAN
WORKER
|'
AMOUNT OF RESPONSIBILITY.
Exhibit 2.3
responsibilities
Japanese allocation of quality management and improvement
(Source:
Tsuda (1984))
37
We
conclude
this
of the key points
of
section with Exhibit
each of
the
2.4,
a
synopsis of some
four approaches to quality
management.
tension
DEMING
JURAN
CROSBY
JAPANESE
:inition of
1lity
Conformance
to Specif.
Conformance
to Specif.
Conformance
to Specif.
Uniformity
around target
Competitive
Position
Profits
Quality
Profits
Quality
of Life
Improve Compet.
Position
Decrease
COQ
Decrease
Costs
Continual
Improvement
:lity Goal
Zero
Minimize
COQ
Zero
Defects
Zero Defects
7 Select
Cost
Cost
Analysis
Cost Analysis
,jects
Pareto Analysis
Defects
z Measure
Drovement
Direct
Measurements
COQ
:e of
t.
Low
.e of Top
iagement
Worry
)ut Quality
*1 of
Progam
Defects
of
Life
i
Analysis
COQ data &
Direct Meas.&
Maturity Grid
Direct
Measurements
Extensive
Moderate
Low
Leadership,
Participation
Varied
Must Stress
Zero Defects
Breakthroughs
& Improvement
le of
:kers
Maintenance
Improvement
Little
Little
Maintenance
Improvement
2 Emphasis
None
Very high
moderate
low
atistical
High use
For lower
Management
Mixed
High use
QC
&
alysis
data
EXHIBIT
Synopsis
of
the
Four
2.4
Approaches
_11__1______111____.
to
Quality
Improvement
&
38
3.
A FRAMEWORK FOR EVALUATING AND SELECTING A
QUALITY
IMPROVEMENT PROGRAM
We
have
found
compare quality
three
dimensions
improvement programs:
rules, managerial
style,
of
the
In
it is useful
decision
and management of
excellent quality management.
where each
on which
this
tools
the
decision
transition
section we
four quality management
and
to
briefly review
approaches
each of these dimensions and propose guidelines
to
for
stands on
selecting
from
among the approaches.
With
believes
of COQ;
respect to quality management
in
the exclusive use
and Crosby
and the
in
realistically
the relationship
captures
minimizing COQ is
the
reduces
costs
(i.e.,
"quality
models
of
that
is
that Exhibit
is
If
1.1
then
optimizing direct
for the
firm.
increasing quality always
free"),
activities
direct measures of quality
Ideally,
is management's
be globally optimal
if one believes
and
determining factor
logical decision rule and
of quality improvement
no
crucial
cost-quality relationship,
measures of quality will not
the other hand,
selecting quality
between quality and costs.
firm believes
the
Deming
for setting quality objectives
In our opinion, a
top management of a
rules,
makes extensive use
COQ for
choosing quality management decision rules
belief regarding
the
Juran
Japanese use
improvement projects and DMOQ
measuring progress.
of DMOQ;
tools and
then cost
justification
superfluous and optimizing
is a sensible approach.
one would like
to reconcile these
the relationship between
empirical work that addresses
cost
two conflicting
and quality.
this question.
We know of
However, Fine
On
39
presents some yet-to-be-empirically-validated
(1984]
-work that reconciles the two views.
1.1
theoretical
That work posits that Exhibit
is an accurate model of the static quality optimization
problem, but that quality
improvement enhances
production process and affects
defects
the
learning about
the cost structure so
that zero
is the long-run cost-minimizing quality level.
In the absence of conclusive evidence that the
conflicting world views meet "in
following:
two
the long run," we recommend
the
If the senior management of the firm believes that
improving quality always reduces costs,
then use the DMOQ system.
This system is straightforward and easily
employees.
implementable by all
If the top management does not hold the belief that
"quality is free,"
then all quality improvement projects should be
cost-justified and COQ is the decision tool to use.
In this latter
attempts to implement even the rudiments of an RACOQ system
case,
could improve quality decision-making significantly.
Managerial style is the second dimension on which we wish to
compare
the four approaches to quality management.
We define
managerial style as the philosophy behind the management of human
the firm.
resources of
Much has been written on this subject, but
we will confine ourselves to a very simple model that allows only
two fundamental managerial styles:
authoritarian and
We view the authoritarian style as being closely
participative.
aligned with the
Theory X style of McGregor
rational-economic assumptions of Schein
hand,
Exhibit 3.1
_·11_
1980].
and the
On the other
the participative style of management is aligned with Theory
Y of McGregor and the self-actualization
Bridge
[1960],
assumptions of Schein.
briefly summarizes the Schein and McGregor works.
[1984]
for more on these constructs.)
__IX·_l
__
(See
40
THEORY
X
ASSUMPTIONS
People are inherently lazy and must,
motivated by outside incentives.
therefore,
be
People's natural goals run counter to those of those of
the organization, hence they must be controlled by
external forces to ensure that they work toward
organizational goals.
Because of their irrational feelings, people are
basically incapable of self-discipline and self
control.
People can, however, be divided roughly into two groups
- those who fit the assumptions outlined above and
those who are self-motivated, self-controlled, and less
dominated by their feelings.
This latter group must
assume the management responsibilities for all the
others.
THEORY
Y
ASSUMPTIONS
Human motives fall into a hierarchy of categories.
Beginning with the most basic, they are (1) basic
physiological needs; (2) needs for survival, safely,
and security; (3) social and affiliative needs; (4)
ego-satisfaction and self-esteem needs; (5) needs for
self-actualization, that is, making maximum use of all
one's talents and resources.
As the most basic needs
(for food, drink, sleep) are satisfied, they release
energy for satisfaction of the higher level needs.
Even someone we might consider "untalented" seeks a
sense of meaning and accomplishment in his or her work
if other needs are more or less fulfilled.
The individual seeks to be mature on the job and is
capable of being so, in the sense of exercising of a
certain amount of autonomy and independence, adopting a
long range time perspective, developing special
capacities and skills, and exercising greater
flexibility in adapting to circumstances.
People are primarily self-motivated and selfcontrolled; externally imposed incentives and controls
are likely to be threatening and to reduce the person
to a less mature adjustment.
There is no inherent conflict between selfactualization and more effective organizational
performance.
If given a chance, employees will
voluntarily integrate their own goals with those of the
organization.
McGregor's
(Source:
Assumptions
Exhibit 3.1a
Schein [1980],
p.
53)
41
RATIONAL-ECONOMIC MODEL
Employees are primarily motivated by economic
incentives and will do whatever affords them the
greatest economic gain.
Since economic incentives are under the control of the
organization, the employee is essentially a passive
agent to be manipulated, motivated, and controlled by
the organization.
Feelings are, by definition, irrational and, therefore,
must be prevented from interfering with a person's
rational calculation of self-interest.
Organizations can and must be designed in such a way as
to neutraize and control people's feelings and,
therefore, their unpredictable traits.
SELF-ACTUALIZATION
as
(same
McGregor's
Schein's
(Source:
MODEL
"Theory
Y")
Assumptions
Exhibit 3.lb
1980],
Schein
____
pp.
53,68)
Ill
42
manaTgment
Zeming's procram is designed for a participative
Deming stresses management's duty to give employees
style.
meaningful work that gives them a sense of pride and self-esteem.
viewed
People are
Deming's
controlled.
Theory
Y assumptions
fits McGregor's description
viewpoint
and
conflict between self-actualization
I
:
voluntarily
integrate
organization"
(Schein
The need for
their own
goals
with those
the
of
p.68).
a participative
management
style
in Deming's
firms to
for many
it difficult
Firms with authoritarian management styles
approach.
their assumptions
needs
for change
nature
about human
in their managerial
to adopt
they try
when
style
program.
Deming's
Deming's
emphasis on
overwhelm
of
the need for a
management style
participative)
several
inherent
employees will
chance,
the
[1980],
of
efficient
given
will encounter dramatic
and
more
If
quality improvement program makes
adopt his
is no
"There
about human nature:
organizational performance.
self-
being self-motivated and
as primarily
the quality aspects
the points
Improvement are
of
program.
in his Fourteen Points
towards
goals
Eliminate numerical
#11.
Eliminate work standards
#12.
Remove
times,
to
example,
for Quality
the participative
for the work
and numerical
barriers that stand between
to pride
For
at
(Examples include:
#10.
his right
his
oriented primarily
management style.
firm seems,
a
for
(i.e.
"new"
of workmanship.)
their management tools but not
difficulty accepting Deming's
Juran's program
Firms
the
force,
quotas,
hourly worker and
that wish to
their management
style
program for quality
embodies elements
and
of both
the
change
have
improvement.
authoritarian
-J
and
styles.
participative
that
*style in
economic
rewards
by
the
of
management
Annual
is
employees
A
fits
employees
that
on
Juran's
of
In
efficient
task
Schein
such
as
firms
and
department
the
are
Juran's
very
of
emphasizes
This
the
mix
On
to
of
of
these
the
objectives
The
set
emphasis
primary
morale
that
around
five
of
five
the
of
principal
(3)
Annual
the
style
managerial
the
organizing,
staffing,
Quality
quality
principles.
also
program
caused
by
nature
want
He
claims
a
that
operator-controllable,
operator are
the
do a
to
can
some
exhibits
style.
defects are
management
authoritarian
summarizes
management
all
by
the
organization
improvement
closest
expected
to
authoritarian and
basis
improvement
of
good
improve
not willful.
job
and de-
worker performance
Juran's
quality program
them
obstacles
from
presents
style.
that prevent
lower
style,
management
to
adaptable
no
firm
almost
should
find
styles
any
it
quality program.
("Zero Defects"),
expected
participative
program
management
an quthoritarian
of
management
of
implement
Crosby's
_I
He
Both
people
idea
of
gives
controlling.
that are
quality
the
difficult
of
the
performance.
(2)
participative
that
Juran's
firm.
the
by
improving motivation.
through
make
meet
addition,
(1) planning,
examples
those
believes
authoritarian
motivated
be
they
being built
hierarchical
small proportion
and most
He
(5)
quality
of a
elements
and
(p.54)
very well.
program
directing,
Program
to
if
rogra.
functions of managing:
(4)
result
the
fits
secondary.
description
strategy
expected
are
will
uality
is
program
The
a
All
management
employees
and the
only
level employees
workers
_
from
meeting
_
style
are
input
is
that
is
told what
to
identification
top management's
is
demands.
that worker performance
emphasizes
Crosby
organization
employee
"The
Emphasis
the
on
characteristic of
the
rather
group,
Japan
those who meet
for
than individual,
is awarded
performance.
for team effort
should not have difficulty
style
management
accomodate a range
style because
its
the strength of
management decision tools
prescribes.
attention
quality
The
nor
to managing
consciousness;
the
a
group,
in
or perform
their goals
emphasis on
Deming Prize
The
of
the
styles
The
crucial element.
of management styles.
firm with a participative
his program is neither
style
of Crosby's program
the
transition of
on management
emphasis
in
firm.)
the
management
management
the
principal strength
it gives
53).
implementing his quality program.
His program could be adapted easily by a
management
p.
is also evident
of Crosby's program is not its
Crosby's program will
manipulated,
an authoritarian
with participative
firms
the
by all members
Although Crosby's program embodies
managerial style,
be
with Deming's
(This contrasts
outstanding acts.
style,
authoritarian
programs
Crosby's awards
than
rather
individual
held in an
organization"(Schein,
the
and controlled by
motivated,
agent to
essentially a passive
is
its
changes
rational-economic world view:
the
to
that adheres
assumption
of an
description
perfectly with Schein's
to
belief matches
This
change.
worker performance will
attitudes,
top management
that if
and
top management attitudes,
tied directly
is
is
firm
style
it
that
the
to
is
secondary.
The Japanese
The
practices
their
-1--
to use
------
primarily
is
of permitting workers
discretion,
-__--
management style
statistical
to
stop
participative.
the production line
techniques
to control
at
and
- - ··----··----··----· ·--·----_ _··----· ·-,- --- -__·
------_, __--.
-·. ..1-- - __-,... - _-..__
------ __..___._._._.
45
improve
the
select
and
operations
projects
through
participative
style
employees
expected
are
objectives
of
independent,
the
and
However,
stressing
the
is
A
Mere
align
are
implementability
any
of
of
management.
workers must
is
not
the
of
managerial
be
successful
may
that
in
change,
The
third
take
the
pressured
to
approach
converting
the
this practice
improve
the
have
some
changed
firm
different
approaches
to
the
style
Juran
firms
trouble
that
adapting
change
is
firms
to
in
a
Japanese
are
However, a
is
of
a
are
to
the
more
style
approach
Deming
not
to
or Japanese
impossible.
likely
to
when
clear
may be
distinguishing
not
predominantly
to
a
threat
the
commitment
sufficient.
among
the
We
be
bankrupt
top management
threat,
the
would
or Crosby
threatening
strong
on
quality
issues
obviously
managerial
competition
for
closely with
only be
style
absence
of
to quality
managerial
their
practice
time.
adopting
dimension
more
of
a
the
Underlying
can usually
that
effects
Such
changing
in
so
authoritarian
present.
even
Japanese
However,
have
high quality
is
mature,
firm would probably
that managerial
from
styles.
hypothesize
the
enough.
cultures
the
think
quality management.
(e.g.,
the
manner
firm
authoritarian
be
fits
that
evaluating
preclude
to
defects,
enthusiasm
we
expected
objectives with
to discover
Corporate
management,
personal
the
Japanese
system,
management would
In
fit perfectly with
Japanese
style
evolutionary
quality
establish priorities
circles
their
they
to
the
implementing
management.
firm)
to
and
In addition,
predominantly authoritarian
difficulty
slow
quality
management.
element
system
assumption
system.
on,
flexible.
authoritarian
an
of
firm and
one
the
they work
four
to
46
approaches
to quality
transition
to
of
the quality
organizational
difficlt, and it
quite
provides
for helping
Deming provides
firm's
transition
Deming
is
major
changes,
should
state
Achieving
is useful
is a
Juran
to
program has
program is
suited
decision system
fits well with
the
His
manage
fourteen
for managing
the
of
the
the
of
that
the
he
how
the
For
Deming's
firm
transition
1977]
in
transition
state
the firm.
His
and the
the
program,
COQ managerial
accounting-
firms.
transition
state
the
lack of
significant
or decision
systems
for planning
likely
that a
viewed as being a
(See Bridge
firm
could
further guidance.
1984]
step program meets almost every
organizations.
the
by most
program without
transition.
Beckhard and Harris
of
cost-minimizing,
it quite
Crosby's program could be
to
author
describes.
rules,
a description
on managing
style
controlling quality make
of how
each
to manage
and decision
traditionally used
in either managerial
successfully undertake
can be
this criticism because
not demand great change
would definitely benefit Juran's
and
how
company he
the management
Although more direction
change
on
to all management styles,
systems
change
deficiency.
does not address
but he does
discussed
been implemented.
of a road map
very well,
firm's
system.
what guidance
type of
14 points are
significant
based decision
advice
in management style
absence
see
such
the
implementation.
to becoming the
Deming 0 s
the
to
virtually no
look after his
program,
change.
this
of
improvement programs
especially vulnerable
prescribes.
the management
having a well-run quality management
Implementing any
requires
improvement is
classic example
for
more on
criterion
for managing complex changes
this.)
set by
in
47
Crosby's program starts with a plan and strategy for gaining
top management commitment.
The thoroughness of this plan is
demonstrated by Crosby's development of prepared speeches and
tapes
that can be used to gain this
Throughout
top
management
the entire program, Crosby is sensitive
maintaining top management commitment.
quality measurements are
commitment.
to building and
For example, cost-of-
introduced as a tool to gain support for
the program.
Besides the commitment of top management, Crosby seeks the
commitment of union representatives,
the controller's
manufacturing and engineering personnel,
office,
and many others.
He
presents much advice for winning the commitment of each of the
groups.
Crosby's mechanism for managing the transition state
explicit.
is very
Representatives from each department are brought
together to form a Quality Improvement Team that will, with
guidance from the quality department, manage the transition.
The
process or activity plan that is outlined by Crosby is extremely
thorough, and it is very difficult to fault the attention Crosby
gives to managing the transition state.
Managing the transition to a Japanese quality management
system would probably be as difficult as managing the transition
to becoming a Deming organization.
the relevant issues
Ouchi
[1981]
for managing such a change.
treats some of
To our knowledge,
there is no Japanese tutorial on how to change one's
to be like a Japanese organization.
III_
--__l_-_-LII_I.I_
X1-_
·._I1_III
^·.
organization
48
4.
Conclusions
As
to
a
guidelines
improvement
First,
for
not
is
DMOQ
quality
do
that
of
probably
face
management
that
quality
changes
to
wish
attitudes.
for
probably
the
approaches
several potentially
among
tools
decision
to
Second,
or
threat
will
managing
the
have
the
reduces
with
do
should avoid
quality
adopt
top
if
essential
quality
to
not
or
is
a
to
these
new
If
top
choosing
important.
that
Japanese
supplement
transition
to
Finally,
achievement
for
then
hypothesis,
very
have
programs
style.
Deming
is
rules
management
costs.
respect
style
managerial
in management
high
and
quality-reduces-costs
program,
severe
a
management
processes
four
selecting
improving quality
commitment
transition
Firms
and
decision
superior.
improvement
significant
the
that
to
is
COQ
believe
does
not
the
exploring
developed
evaluating
respect
with
believe
management
have
of
programs.
quality management,
does
exercise
t.e
management, we
quality
useful
of
result
high
a
Firms
levels
require
management of
crucial
activity.
approach to
programs
quality
with
practices
and
49
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3790 JOS
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