UNIT 3
QUALITY PHILOSOPHIES
AND PRINCIPLES
Unit Objectives
 Who are the quality gurus or philosophers
that have shaped quality thinking and
practices?
 What are the characteristics of contemporary
quality philosophies?
 How has the concept of quality changed and
evolved over the years?
 How quality principles evolve over the years?
The Quality Gurus or Philosophers
The Quality Gurus can be divided into four main periods:
1. The pioneer (Walter Shewhart)
2. The early Americans who took messages of quality
to the Japanese in the early 1950s (W Edwards
Deming, Joseph M Juran and Armand V
Feigenbaum).
3. The Japanese response from the late 1950s
onwards (Dr Kaoru Ishikawa, Dr Genichi Taguchi
and Shigeo Shingo).
4. The new Western wave concentrating on Quality
Awareness from the 1970s onwards (Philip Crosby,
Tom Peters and Claus Moller).
The Quality Philosophers/Gurus
Walter Shewhart (1891-1967)
 Western Electric & Bell
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Telephone Engineer
Father of Statistical
Quality Control (SQC)
Founder of the Control
Chart (e.g. X-bar R
chart)
Originator of PDCA
cycle
ASQC (American
Society for Quality) 1st
Honorary Member 1947
William Edwards Deming
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Studied under Shewhart at Bell
Laboratories (Awarded a Ph. d in
Mathematical Physics in 1928)
Western Electric Statistician
Advisor, Author, Teacher &
Consultant
ASQC Honorary member in 1970
Invited to Japan; Led the Japanese
Quality Movement
Deming introduced the statistical
quality-control element to Japanese
industry in the 1950s.
Founder, Third Wave of Industrial
Revolution
Bureau of Census Advisor in
Population Sampling
Popularized Shewhart PDCA cycle
(1900-1993)
PDCA CYCLE/DEMING CYCLE
Standardization
Future Plan
Monitoring
Comparing Against
TARGET
Problem identification
Problem selection
Problem analysis
Cause Verification
Target Setting
Propose intervention
Management Consent
Training
Implement
Counter measures
Joseph Moses Juran (1904-?)
 Joined Western Electric as
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an Industrial Engineer
Developed the western
Electric Statistical Quality
Control Handbook
Also well-known for helping
improve Japanese quality
Developed the Juran Trilogy
for managing quality
Enlightened the world on the
concept of the vital few,
trivial many which is the
foundation of pareto charts
Pareto Charts
Pareto Charts
 The Pareto effect even operates in quality
improvement: 80% of problems usually stem
from 20% of the causes.
 Pareto charts are used to display the Pareto
principle in action, arranging data so that the
few vital factors that are causing most of the
problems reveal themselves.
 Concentrating improvement efforts on these
few will have a greater impact and be more
cost-effective than undirected efforts.
Philip B. Crosby (1926-2001)
 Vice president, Quality
at International
Telephone & Telegraph
(ITT)
 Introduced the four
absolutes of quality
 Written the book “
Quality is Free” (1979)
Armand Vallin Feigenbaum (??)
 President/CEO, General
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Systems Company
Founder, International
Academy for Quality
ASQC President (1961-63)
US Army Material Command
Advisor of Quality Assurance
Stressed a systems
approach to quality
Cost of quality may be
separated into costs for
prevention, appraisal, and
failures (e.g., scrap,
warranty)
Kaoru Ishikawa (1915-1989)
 Ph. D in Engineering
 A university Professor
 Leader of the Japanese Quality
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Movement
Developed the Japanese
Quality Strategy
Developed concept of true and
substitute quality characteristics
Advocate the use of the 7 tools
(e.g., cause-and effect diagram,
pareto chart, etc.,)
Advanced the use of QCC
(Quality Control Circle)
Developed concept of Japanese
Total Quality Control/Companywide quality control (CWQC)
Genichi Taguchi (1924-?)
 Worked in Electrical Communication
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Laboratory of the Nippon Telephone and
Telegraph Co
A visiting Professor at the Indian
Statistical Institute & Visiting Research
Associate at Prince University
A Professor at Aoyama Gakuin U in
Tokyo
Director of the Japanese Academy of
Quality
Advisor at the Japanese Standard
Association
Introduced quality loss function
(deviation from target is a loss to
society)
Promoted the use of parameter design
Shigeo Shingo (1909 -1990)
 Graduated in Mechanical Engineering in
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1930
A professional management consultant,
manager, advisor and trainer
President of the Institute of Management
Improvement
Worked in Toyota Motor Co, Matsushita
Electrical Industrial Co
Advocated the replacement of (SPC)
with source inspection (controlling at
the source rather than through sampling
inspections)
Developed Poka-Yoke devices/system
(mistake proofing devices) such as
sensors and monitors to identify defects
at the point they occur
“Zero defect” approach because zero
defects is the ultimate goal
Tom Peters
 Educated in engineering & business
 Worked as a principal at Mckinsey &
Co when he wrote his book “In search
of Excellence” (1982) – excellent
performance within 43 large
American Companies
 Identified leadership as being central
to quality improvement process
 Best known for his customer
orientation
 Describe 12 attribute or traits of
quality revolution
Claus Moller
 European – a Danish business
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economist
Founded Time Manager
International (TMI) in 1975
TMI provide management training
in the Soviet Union & EEC
TMI also involved with quality
management training
His 1st book “Personal quality”
was published in 1988
The Shewhart Philosophy
 Shewhart was the pioneer and visionary of modern
quality control.
 Shewhart is most widely recognized for his control
chart development and statistical contributions
through Bell Laboratories.
 Indeed, the Shewhart charts (e.g., X-bar and R
charts) have become fundamental tools of quality
control; but, of wider impact, Shewhart published, in
1931, Economic Control of Quality of Manufactured
Product, a landmark book in modern quality control.
 His book was used by the Japanese after World War
II, with the aid of visiting consultants, to help shape
modern quality practice in Japan.
The Shewhart Philosophy
 Shewhart, using a literal definition of quality (Latin
qualitas, from qualis, meaning "how constituted"),
defined two common aspects of quality:
 (1) "objective quality," which deals with the
quality of a thing as an "objective reality" (of the
thing) independent of the existence of man and
 (2) "subjective quality," which deals with the
quality of a thing relative to what man thinks,
feels, or senses as a result of the "objective
reality."
The Shewhart Philosophy
 Shewhart linked the subjective quality property with
value and concluded "it is impossible to think of a
thing as having goodness independent of some
human want."
 This definition has been expanded by Ishikawa to
include "true" (customer-language based) and
"substitute" (technical-language-based) quality
characteristics which form the basis for modem
quality planning and quality function deployment.
The Shewhart Philosophy
 It is of great historical interest to point
out that the Shewhart postulates (lines
of reasoning) and general conclusions
published in 1931 laid the foundation for
modern quality theory and practice
throughout the industrial world.
The Shewhart Philosophy
His general conclusions are stated below:
It seems reasonable to believe that there is an objective state
of control, making possible the prediction of quality within
limits even though the causes of variability are
unknown....It has been pointed out that by securing this
state of control, we can secure the following advantages:
1. Reduction in the cost of inspection.
2. Reduction in the cost of rejection.
3. Attainment of maximum benefits from quantity production.
4. Attainment of uniform quality even though the inspection
test is destructive.
5. Reduction in tolerance limits where quality measurement
is indirect.
The Deming Quality Philosophy
 Deming's 14 points
 Deming’s seven deadly diseases
 Deming's Profound Knowledge
system
Deming's 14 points
1.
2.
3.
Create constancy of purpose toward improvement of
product and service, with the aim to become competitive
and to stay in business, and to provide jobs (create
vision and commitment).
Adopt/learn the new philosophy. We are in a new
economic age. Western management must awaken to
the challenge must learn their responsibilities, and take
on leadership for change.
Cease dependence on inspection to achieve quality.
Eliminate the need for inspection on a mass basis by
building quality into the product in the first place. (worker
must take responsibility for their work – understand
variation & seek to reduce the common causes)
Deming's 14 points
End the practice of awarding business on the
basis of price tag. Instead, minimize total cost.
Move toward a single supplier for any one item,
on a long-term relationship of loyalty and trust.
5. Improve constantly and forever the system of
production and service, to improve quality and
productivity, and thus constantly decrease costs.
6. Institute training on the job (both management &
workers – require proper tools & knowledge).
4.
Deming's 14 points
Institute leadership. The job of management is
leadership, not supervision – leadership means
providing guidance to help employees do their
job better with less effort.
8. Drive out fear. Create trust. Create a climate for
innovation so that everyone may work effectively
for the company.
9. Break down barriers between departments
(optimize the efforts of team).
7.
Deming's 14 points
10. Eliminate slogans, exhortations, and targets for the work
force asking for zero defects and new levels of
productivity (workers become frustrated when they
cannot improve or are penalized for defects) – overlook
the source the problems – the system.
11. A. Eliminate work standards on the factory floor
(Eliminate numerical quotas for production. Instead learn
and institute methods for improvement). b. Eliminate
management by objective – numbers without a method
to achieve them (Instead, learn the capabilities of
processes, and how to improve them). – Numbers have
no meaning without a method to achieve them.
Deming's 14 points
12. A. Remove barriers that rob the hourly worker of his right
to pride of workmanship. b. Remove barriers that rob
people in management and in engineering of their right to
pride of workmanship (Performance appraisal destroys
teamwork by promoting competition).
13. Institute a vigorous program of continuing education and
self-improvement.
14. Take action to accomplish the transformation. Put
everybody in the company to work to accomplish the
transformation. The transformation is everyone's job. – A
major cultural change
The seven deadly diseases that
obstruct the quest for quality:
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Lack of constancy of purpose to plan product and service that will have
a market and keep the company in business, and provide jobs.
Emphasis on short term profits – invest in research & development.
Evaluation of performance, merit rating, or annual review (annual
appraisal) – destroy teamwork.
Mobility of management; job hopping (personal career advancement is
placed ahead of welfare of the organization).
Management by use only of visible figures, with little or no
consideration of figures that are unknown or unknowable.
Excessive medical costs – bad for long-term competitiveness.
Excessive costs of liability/warranty, fueled by lawyers who work on the
basis of contingency fees. – proliferation of lawsuits and multimillion
dollars judgments.
The System of Profound Knowledge
 The system of profound knowledge is made
up of four areas:
 (1) appreciation for a system,
 (2) knowledge about variation,
 (3) theory of knowledge, and
 (4) psychology.
System of Profound Knowledge:
Appreciation of a system
 A system is a set of functions or activities
within an organization that work together for
the aim of the organization.
 A production system is composed of many
smaller, interacting subsystems.
 These subsystems are linked together as
internal customers and suppliers.
 The components of any system must work
together if the system is to be effective.
System of Profound Knowledge:
Appreciation of a system
 Management's job is to optimize the system.
 Sub-optimization results in losses to
everybody in the system.
 All the people who work within a system can
contribute to improvement, which will
enhance their joy in work.
System of Profound Knowledge:
knowledge about variation
 The second part of Profound Knowledge is a
basic understanding of statistical theory and
variation.
 We see variation everywhere & variation
exists in production processes.
 Actually, a production process contains many
sources of variation
System of Profound Knowledge:
Causes of Variation
 Product manufacturing was measured and
where variations occurred in manufacture the
cause was traced back to either (1) special
causes or (2) common causes.
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(1) Special causes are easily identifiable and
solvable at a local level - for example a
change in operator, shift of procedure.
(2) A common cause is due to the design or
process of the system and is the responsibility
of management to solve.
System of Profound Knowledge:
Proportion of Variation
 Common causes of variation generally
account for about 80 to 90 percent of the
observed variation in a production process.
 The remaining 10 to 20 percent are the result
of special causes of variation, often called
assignable causes.
System of Profound Knowledge:
Theory of knowledge
 The third part of profound knowledge is the
theory of knowledge, the branch of
philosophy concerned with the nature and
scope of knowledge, its presupposition and
basis, and the general reliability of claims to
knowledge
System of Profound Knowledge:
Theory of knowledge
 Deming emphasized that knowledge is not
possible without theory, and experience alone
does not establish a theory.
 Any rational plan, however simple, requires
prediction concerning conditions, behavior,
and comparison of performance.
System of Profound Knowledge:
Theory of knowledge
 A statement devoid of prediction or
explanation of past events conveys no
knowledge.
 Experience only describes-it cannot be tested
or validated-and alone is no help in
management.
 Theory , on the other hand, shows a cause
and effect relationship that can be used for
prediction.
system of Profound Knowledge:
PSYCHOLOGY
 Psychology helps us understand
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people,
interactions between people and
circumstances,
interactions between leaders and employees,
and
any system of management.
system of Profound Knowledge
PSYCHOLOGY
 Much of Deming's philosophy is based on
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understanding human behavior and treating people
fairly.
People differ from one another.
A leader must be aware of these differences and
work toward optimizing everybody's abilities and
preferences.
Most managers operate under the assumption that all
people are alike.
However, a true leader understands that people learn
in different ways and at different speeds, and
manages the system accordingly.
Concluding remark on the system of
profound knowledge
 A leader of transformation, and managers
involved, need to learn the psychology of
individuals, the psychology of a group, the
psychology of society, and the psychology of
change.
 Some understanding of variation
 Including appreciation of a stable system, and
some understanding of special causes and
common causes of variation, are essential for
management of a system, including
management of people.
The Juran Philosophy
Juran defined quality as
(I) product performance that results in
customer satisfaction;
(2) freedom from product deficiencies, which
avoids customer dissatisfaction-- simply
summarized as "fitness for use."
The Juran Philosophy
 This definition can be broken down into four
categories:
 (1) quality of design,
 (2) quality of conformance,
 (3) availability and
 (4) field service.
The Juran Philosophy
 Quality of design concentrates on market
research, the product concept, and design
specifications.
 Quality of conformance includes technology,
manpower, and management.
 Availability focuses on reliability,
maintainability, and logistical support.
 Field service quality comprises promptness,
competence, and integrity.
The Juran Philosophy
The pursuit of quality is viewed on two levels:
 (l) The mission of the firm as a whole is to
achieve high product quality; and
 (2) The mission of each department in the
firm is to achieve high production quality.
The Juran Philosophy
Juran's prescriptions focus on three major
quality processes, called the Quality Trilogy:
 (1) quality planning --the process of preparing
to meet quality goals;
 (2) quality control-- the process of meeting
quality goals during operations; and
 (3) quality improvement --the process of
breaking through to unprecedented levels of
performance.
The Juran Quality Trilogy® Diagram
Quality planning begins with
 (1) identifying customers, both external and internal,
 (2) determining their needs and
 (3) developing product features that respond to those
needs at a minimum combined cost.
 (4) the process that can produce the product to
satisfy customers' needs and meet quality goals
under operating conditions must be designed.
 (5) compares results with previous plans, and
meshes the plans with other corporate strategic
objectives.
The Quality Planning Process
The Quality Planning Process
Existing product
and process
Identify
Customers
List of customers
Discover
Customer's needs
Customer's needs
(in their language)
Customer's needs
(in units of measure)
Develop
product
Product features
Optimize
product design
Product goals
Translate
Customer's needs
(in our language)
Establish
units of measure
Units of measure
Establish
measurement
Customer's needs
(in units of measure)
Develop
process
Process features
Optimize: prove
process capability
Process ready
to transfer
Transfer to
operation
Process ready
to produce
Quality control involves
 (1) determining what to control,
 (2) establishing units of measurement to
evaluate data objectively,
 (3) establishing standards of performance,
 (4) measuring actual performance,
 (5) interpreting the difference between actual
performance and the standard and
 (6)taking action on the difference.
Quality improvement program
involves
 (1) proving the need for improvement,
 (2) identifying specific projects for
improvement,
 (3) organizing support for the projects,
 (4) diagnosing the causes,
 (5) providing remedies for the causes,
 (6) proving that the remedies are effective
under operating conditions and
 (7) providing control to maintain
The Feigenbaum Philosophy
 Traditionally (pre-1970s) in the United States, quality
assurance was widely associated with establishing
and measuring conformance to technical
specifications on the shop floor and in inspection
departments.
 The evolution which has occurred in transforming this
narrow, reactive view of quality to its current broad
companywide, approach in the United States can
be credited to Feigenbaum.
 He has had a great impact on this transformation
through his total quality control concept and
strategies
The Feigenbaum Philosophy
 Feigenbaum define total quality control as an
effective system for integrating the qualitydevelopment, quality-maintenance, and
quality-improvement efforts of various
groups in an organization so as to enable
marketing, engineering, production, and
service at the most economical levels which
allow for full customer satisfaction
Customer
Total quality control
VERTICAL ORGANIZATIONAL RESPONSIBILITY
Customer
Installation and service
Shipping
Mechanical inspection
and functional test
Manufacturing supervision
and shop operations
Manufacturing engineering
Purchasing
Engineering
Marketing
Feigenbaum's horizontal scope of total
quality control
The Feigenbaum Philosophy
 Feigenbaum stresses a systems approach to
quality through the definition of a quality
system
The Feigenbaum Philosophy
 A quality system is the agreed on, company-
wide and plant-wide operating work structure,
documented in effective, integrated technical
and managerial procedures, for guiding the
coordinated actions of the work force, the
machines, and the information of the
company and plant in the best and most
practical ways to assure customer quality
satisfaction and economical costs of quality.
The Feigenbaum Philosophy
Feigenbaum's philosophy is summarized in his
Three Steps to Quality:
1. Quality Leadership
2. Modern Quality Technology
3. Organizational Commitment
Quality Leadership
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A continuous management emphasis is
grounded on sound planning rather than
reaction to failures. Management must
maintain a constant focus and lead the
quality effort.
Modern Quality Technology
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The traditional quality department cannot
resolve 80 to 90 percent of quality
problems.
This task requires the integration of office
staff as well as engineers and shop- floor
workers in the process who continually
evaluate and implement new techniques to
satisfy customers in the future.
Organizational Commitment
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Continuous training and motivation of the entire
workforce as well as an integration of quality in
business planning indicate the importance of
quality and provide the means for including it in all
aspects of the firm's activities.
The Japanese latched on to this concept of total
quality control as the foundation for their practice
called Company- Wide Quality Control (CWQC),
which began in the 1960s.
Feigenbaum's ideas also have become important
elements of the Malcolm Baldrige National Quality
Award Criteria.
Ishikawa Philosophy
 Ishikawa provided a great deal of leadership
in shaping the Japanese quality movement
through his vision and activities associated
with the Union of Japanese Scientists and
Engineers (JUSE).
 By 1967 Japanese quality control could, be
distinguished from that practiced in the West
Six characteristics of Japanese Quality
Control
1.
2.
3.
4.
5.
6.
Company-wide quality control; participation
by all members of the organization in quality
control.
Education and training in quality control.
Quality control circle activities.
Quality control audits (for effectiveness).
Utilization of statistical methods.
Nationwide quality control promotion
(including training) activities.
 Ishikawa's impact on quality control practices
has been extensive.
 Ishikawa developed the concept of true and
of substitute quality characteristics.
“True” VS “Substitute” quality
characteristics
 The "true" quality characteristics are the
customer's view of product performance,
expressed in the customer's vocabulary.
 "Substitute" quality characteristics are the
producer's view of product performance
expressed in the producer's technical
vocabulary.
 The degree of match between true and
substitute quality characteristics ultimately
determines customer satisfaction.
“True” VS “Substitute” quality
characteristics
Ishikawa proposes three steps which are the basis of
quality-planning and quality function-deployment
techniques.
1. Understand true quality characteristics.
2. Determine methods of measuring and testing true
quality characteristics.
3. Discover substitute quality characteristics, and
have a correct understanding of the relationship
between true quality characteristics and substitute
quality characteristics.
Seven Quality Tools
Ishikawa has been associated with the development
and advocacy of universal education in the seven
"indispensable" or fundamental tools (of quality
control):
1. Cause-effect (Ishikawa) diagram.
2. Stratification.
3. Check sheet.
4. Histogram.
5. Scatter diagram.
6. Pareto chart (vital few, trivial many).
7. Graphs and statistical control charts.
Seven Tools of Quality
Some key elements of his philosophy
are summarized here
 1. Quality begins with education and ends
with education.
 2. The first step in quality is to know the
requirements of customers.
 3. The ideal state of quality control occurs
when inspection is no longer necessary.
 4. Remove the root cause, not the symptoms.
 5. Quality control is the responsibility of all
workers and all divisions.
Some key elements of his philosophy
are summarized here
 6. Do not confuse the means with the objectives.
 7. Put quality first and set your sights on long-term
profits.
 8. Marketing is the entrance and exit of quality.
 9. Top management must not show anger when
facts are presented by subordinates.
 10. Ninety-five percent of problems in a company
can be solved with simple tools for analysis and
problem solving.
 11. Data without dispersion information (i.e.,
variability) is false data.
Genichi Taguchi
 Taguchi emphasizes an engineering
approach to quality.
 He stresses producing to target goals or
requirements with minimal product
performance variation in the customer's
environment.
 Variation is termed noise (interference).
Taguchi identifies three distinct types
of noise
External noise - variables in the environment
or conditions of use that disturb product
functions (e.g., temperature, humidity, and
dust).
2. Deterioration noise or internal noise changes that occur as a result of wear or
storage.
3. Unit-to-unit noise - differences between
individual products that are manufactured to
the same specifications.
1.
Taguchi focuses on design for quality by
defining three design levels
1. System design (primary) - functional design
focused on pertinent technology or
architectures.
2. Parameter design (secondary) - a means of
both reducing cost and improving performance
without removing causes of variation.
3. Tolerance design (tertiary) - a means of
reducing variation by controlling causes, but at
an increased cost.
Taguchi’s Loss Function
 Genichi Taguchi developed a "loss function"
based on the idea that loss to society occurs
whenever there is a deviation from the most
desirable value
 Taguchi believes that the customer becomes
increasingly dissatisfied as performance
departs farther away from the target.
Taguchi Loss Function
 He suggests a quadratic curve to represent a
customer's dissatisfaction with a product's
performance.
 The curve is centered on the target value,
which provides the best performance in the
eyes of the customer.
 Identifying the best value is not an easy
task.
 Targets are sometimes the designer's best
guess.
Taguchi Loss Function
Taguchi Loss Function
Taguchi Loss Function
 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.
 Your organization's particular circumstance will
shape how you define consumer tolerance for a
product.
Taguchi’s Loss Function
 The larger the deviation from the desired
value the greater the loss to society.
 These losses occur regardless of whether or
not the specifications have been met.
 Any reduction in variation will lead to a
corresponding reduction in loss.
Shingo Philosophy
 A true "zero defects" level of quality is the
ultimate level of conformance to specification.
 Zero defects (ZD) implies that each and every item
built conforms to specification.
 Shingo maintains that statistical-based quality
control is not conducive to zero defects.
 He states that statistical quality control can lower,
but not eliminate, defects. Shingo proposes the
poka-yoke (mistake-proofing) system to totally
eliminate defects.
Shingo Philosophy
 The mistake-proofing concept is a human-
or machine-sensor-based series of 100
percent
1.
2.
3.
source inspections,
self-checks, or
successive checks
 to detect abnormalities when or as they
occur and to correct them on the current unit
of production as well as system wide.
The Shingo Zero Quality Control System
consists of four fundamental principles
Use source inspection –the application of control
functions at the stages where defects originate.
2. Always use 100 percent source inspections
(rather than sampling inspections).
3. Minimize the time to carry out corrective action
when abnormalities appear.
4. Set up poka-yoke (mistake-proofing) devices,
such as sensors and monitors, according to product
and process requirements.
1.
Crosby Philosophy
 Crosby, in his classic book Quality Is Free,
provides a high level of public visibility for
quality issues.
 The Crosby "Quality Management Maturity
Grid," traces corporate quality awareness
and a quality maturation from a level of
uncertainty to one of certainty.
 His grid addresses quality understanding,
organization, problem handling, cost, and
improvement.
Crosby's quality management maturity
grid
QUALITY MANAGEMENT MATURITY GRID
Rater__________________________ Unit_________________________________
Measurement
Categories
Stage I:
Uncertainty
Stage 11:
Awakening
Stage III:
Enlightenment
Stage IV:
Wisdom
Stage V:
Certainty
Management
understanding
and attitude
No
comprehension of
quality as a
management tool.
Tend to blame
quality
department for
"quality
problems."
Recognizing that
quality
management may
be of value but
not willing to
provide money or
time to make it
all happen.
While going
through quality
improvement
program learn
more about
quality
management;
becoming
supportive and
helpful.
Participating.
Understand
absolutes of
quality
management.
Recognize their
personal role in
continuing
emphasis.
Consider quality
management as
essential part of
company system.
Quality
organization
status
Quality is hidden
in manufacturing
of engineering
departments.
Inspection
probably not part
of organization.
Emphasis on
appraisal and
sorting.
A stronger
quality leader is
appointed but
main emphasis is
still on appraisal
and moving the
product. Still part
of manufacturing
or other.
Quality
department
reports to top
management, all
appraisal is
incorporated and
manager has role
in management of
company.
Quality manager
is an officer of
company;
effective status
reporting and
preventive action.
Involved with
consumer affairs
and special
assignments.
Quality manager
on board of
directors.
Prevention is
main concern.
Quality is a
thought leader.
Crosby's quality management maturity
grid
Measurement
Categories
Stage I:
Uncertainty
Stage 11:
Awakening
Stage III:
Enlightenment
Stage IV:
Wisdom
Stage V:
Certainty
Problem
Handling
Problems are
fought as they
occur; no
resolution;
inadequate
definition; lots
of yelling and
accusations.
Teams are set
up to attack
major problems.
Long-range
solutions are
not solicited.
Corrective action
communication
established.
Problems are
faced openly and
resolved in an
orderly way.
Problems are
identified early
in their
development.
All functions
are open to
suggestion
and
improvement.
Except in the
most unusual
cases, problems
are prevented.
Cost of quality
as % of sales
Reported:
unknown
Actual: 20%
Reported: 3%
Actual: 18%
Reported: 8%
Actual: 12%
Reported: 6.5%
Actual: 8%
Reported: 2.5%
Actual: 2.5%
Crosby's quality management maturity
grid
Measurement
Categories
Stage I:
Uncertainty
Stage 11:
Awakening
Stage III:
Enlightenment
Stage IV:
Wisdom
Stage V:
Certainty
Quality
improvement
actions
No organized
activities. No
understanding
of such
activities
Trying obvious
"motivational"
short-range
efforts.
Implementation of
the 14-step
program with
thorough
understanding and
establishment of
each step.
Continuing
the14-step
program and
starting Make
Certain.
Quality
improvement is
a normal and
continued
activity.
Summation of
company
quality posture
"We don't know
why we have
problems with
quality."
"Is it absolutely
necessary to
always have
problems with
quality?"
"Through
management
commitment and
quality
improvement we
are identifying
and resolving our
problems."
"Defect
prevention is a
routine part of
our operation."
"We know why
we do not have
problems with
quality."
Crosby Philosophy
 Crosby is best known for the concepts Do It
Right First Time and Zero Defects.
 He does not believe workers are responsible
for poor quality - you have to get the
management straight.
The essence of Crosby's quality
philosophy
The essence of Crosby's quality
philosophy is embodied in what he
calls
 (l) the "Absolutes of Quality
Management" and
 (2) the "Basic Elements of
Improvement."
The Crosby four absolutes of Quality
Management are
1. Quality is defined as conformance to
requirements, not as 'goodness' or
'elegance'.
2. The system for causing quality is
prevention, not appraisal.
3. The performance standard must be Zero
Defects, not 'that's close enough'.
4. The measurement of quality is the Price of
Non-conformance, not indices.
The fourteen basic elements of Quality
Improvement are:
1. Make it clear that management is
committed to quality.
2. Form quality improvement teams with
senior representatives from each
department.
3. Measure processes to determine where
current and potential quality problems lie.
4. Evaluate the cost of quality and explain its
use as a management tool.
The fourteen basic elements to Quality
Improvement are:
5. Raise the quality awareness and personal
concern of all employees.
6. Take actions to correct problems
identified through previous steps.
7. Establish process monitoring for the
improvement process.
8. Train supervisors to actively carry out their
part of the quality improvement program.
The fourteen basic elements to Quality
Improvement are:
9. Hold a Zero Defect Day to let everyone
realize that there has been a change and
reaffirm management commitment.
10. Encourage individuals to establish
improvement goals for themselves and
their groups.
11. Encourage employees to communicate to
management the obstacles they face in
attaining their improvement goals.
The fourteen basic elements to Quality
Improvement are:
12. Recognize and appreciate those who
participate.
13. Establish quality councils to communicate
on a regular basis.
14. Do it all over again to emphasize that the
quality improvement program never ends.
Tom Peters Philosophy
 Peters' identified leadership as being
central to the Quality Improvement Process.
 He considered that 'management' should be
discarded in favor of 'leadership' - the new
role being that of a cheerleader and
facilitator.
According to Tom Peters
Leadership is the centre of
 Care of Customers
 Constant Innovation
 People
The twelve traits of a quality
revolution are:
1. Management obsession with quality
2. Passionate systems
3. Measurement of quality
4. Quality is rewarded
5. Everyone is trained for quality
6. Multi-function teams
The twelve traits of a quality
revolution are:
7. Small is beautiful
8. Create endless 'Hawthorne' effects
9. Parallel organizational structure devoted
to quality improvement
10. Everyone is involved
11. When quality goes up, costs go down
12. Quality improvement is a never-ending
journey
Claus Moller Philosophy
 Moller sees Personal Quality as the basis of
all other types of quality.
 It is the people who produce the goods who
must be inspired to do their best, and this
will only be mastered by improving the
personal development of the individual.
 This will lead to increased competence in
Productivity, Relations and Quality.
The Moller twelve golden philosophies to
improve personal quality are
1. Set personal quality goals
2. Establish your own personal quality
3.
4.
5.
6.
account
Check how satisfied others are with your
efforts
Regard the next link as a valued customer
Avoid errors
Perform tasks more efficiently
The Moller twelve golden philosophies to
improve personal quality are
7. Utilize resources well
8. Be committed
9. Learn to finish what you start - strengthen
your self-discipline
10. Control your stress
11. Be ethical - maintain your integrity
12. Demand quality
Moller two simple techniques for raising
personal quality
In addition Moller has developed two
simple techniques for raising personal
quality
1.
2.
To do/check system (continuous selfchecking the quality of performance)
The quality business card (devise a
card which is a personal guarantee of
quality of work).
Concerning company quality Moller lists
17 hallmarks of a quality company
1. Focus on quality development
2. Management participation in the
quality process
3. Satisfied customers/users
4. Committed employees
5. Long-term quality development
Concerning company quality Moller lists
17 hallmarks of a quality company
6. Clearly-defined quality goals
7. Quality performance rewarded
8. Quality control perceived positively
9. Next person in work process is a valued
customer
10. Investments in personnel training and
development
11. Prevention/reduction of mistakes
Concerning company quality Moller lists
17 hallmarks of a quality company
12. Appropriate decision level
13. Direct route to end users
14. Emphasis on both technical and human
quality
15. Company actions directed towards
customer needs
16. Ongoing value analysis
17. Company recognition of its role in society
Evolution of Quality Principles
(Summers, 1997, P:8)
ERA
Middle
Ages
Quality
Principles Artisan
Industrial
Revolution
Inspection
1940's
1950's
1980's
1990's
Quality
Control
Statistical
Quality
Control
Statistical
Process
Control
Total
Quality
Management
2000's
FUTURE
ISO
Artisan
 Up until the advent of mass production,
artisans completed individual products
and inspected the quality of their own
work or that of an apprentice before
providing the product to the customer.
 If the customers experienced any
dissatisfaction with the product, he or
she dealt directly with the artisan.
Inspection
 As the variety of items being mass-
produced grew, so did the need for
monitoring the quality of the parts produced
by these processes.
 Industries saw a need to ensure that the
customer received a quality product
 At 1st, inspection was the primary method of
ensuring quality product or services
Inspection
 Refers to those activities designed to
detect or find nonconformances existing in
already completed products and services.
 Inspection, the detection of defects, is a
regulatory process.
Inspection
 It involves the measuring, examining,
testing, or gauging of one or more
characteristics of a product or service.
 This result is compared with established
standards to determine whether or not the
product or service conforms
Inspection
 Inspection occurring only after the part or
assembly has been completed can be
costly.
 If a large number of defective products has
been produced and the problem has gone
unnoticed, then scarp or rework costs will
be high.
Inspection
 The same is true in a service environment.
 If the service has been incorrectly
provided, the customer receiving the
service must spend additional time in the
system having the problem corrected.
Quality Control (QC)
 QC refers to the use of specifications and
inspection of completed parts,
subassemblies, and products to design,
produce, review, sustain, and improve the
quality of a product or service.
Quality control goes beyond inspection
by
 1. Establishing standards for the product or
service, based on the customer needs,
requirement, and expectations.
 2. Ensuring conformance to these
standards. Poor quality is evaluated to
determine the reasons why the parts or
services provided are incorrect.
Quality control goes beyond inspection
by
 3. Taking action if there is a lack of
conformance to the standards. These actions
may include sorting the product to find the
defectives. In service industries, actions may
include contacting the customer and
correcting the situation.
 4. Implementing plans to prevent future
nonconformance. These plans may include
design or manufacturing changes; in a
service industry they may include procedural
changes
Statistical Quality Control (SQC)
 Building on the four tenets of QC, statistics
were added to map the results of part
inspection.
 The use of statistical methods of production
monitoring and part inspection became
known as statistical quality control (SQC),
wherein statistical data are collected,
analyzed, and interpreted to solve quality
problems.
Statistical Quality Control (SQC)
 The primary concern of individuals
involved in quality is monitoring and
control of variation in the product being
produced or service being provided.
Statistical Process Control (SPC)
 The prevention of defects by applying
statistical methods to control the
process is known as statistical process
control (SPC).
Statistical Quality Control (SQC)
 To manufacture products within
specifications, the processes producing the
parts need to be stable and predictable.
 A process is considered to be under
control, when the variability from one part to
another or from one service to another is
stable and predictable.
Predictions Based on Stable and
Unstable Processes
Statistical Process Control (SPC)
 Statistical process control emphasizes the
prevention of defects.
 Prevention refers to those activities
designed to prevent defects, defectives,
and nonconformance in products and
services.
Statistical Process Control (SPC)
 The most significant difference between
prevention and inspection is that with
prevention, the process – rather than solely the
product- is monitored, controlled, and adjusted
to ensure correct performance.
 By using key indicators of product performance
and statistical methods, those monitoring the
process are able to identify changes that affect
the quality of the product and adjust the
process accordingly.
Statistical Process Control (SPC)
 Emphasis shifts away from inspecting
quality into a completed product or service
toward designing and manufacturing quality
into the product or service.
 The responsibility for quality moves from
the inspectors to the design and
manufacturing departments.
Statistical Process Control (SPC)
 Statistical process control also seeks to limit the
variation present in the item being produced or
the service being provided.
 While it once was considered acceptable to
produce parts that fell somewhere between the
specification limits,
 statistical process control seeks to produce
parts as close to the nominal dimension as
possible and to provide services of consistent
quality from customer to customer.
Statistical process control can be used to
help a company meet the following goals:
 To create products and services that will
consistently meet customer expectations
and product specifications
 To reduce the variability between products
or services so that the results match the
desired design quality
 To achieve process stability that allows
predictions to be made about future
products or services
Statistical process control can be used to
help a company meet the following goals:
 To allow for experimentation to improve the
process and to know the results of changes to the
process quickly and reliably
 To further the long-term philosophy of continual
improvement
 To minimize production costs by eliminating the
costs associated with scrapping or reworking outof-specification products
 To place the emphasis on problem solving and
statistics
Statistical process control can be used to
help a company meet the following goals:
 To support decisions with statistical
information concerning the process
 To give those closest to the process
immediate feedback concerning current
production
 To assist with the problem-solving process
 To increase profits
 To increase productivity
Positive Results of Statistical Process
Control
 Uniformity of Output
 Reduced Rework
 Fewer Defective Products
 Increased Output
 Increased Profit
 Lower Average Cost
 Fewer Errors
Positive Results of Statistical Process
Control
 Predictable, Consistent Quality Output
 Less Scrap
 Less Machine Downtime
 Less Waste in Production Labor Hours
 Increased Job Satisfaction
 Improved Competitive Position
Positive Results of Statistical Process
Control
 More Jobs
 Factual Information for Decision Making
 Increased Customer Satisfaction
 Increased Understanding of the Process
 Future Design Improvements
Total Quality Management (TQM)
What is
TQM?
Total quality management (TQM)
 TQM is a management approach that
places emphasis on continuous process
and system improvement as a means of
achieving customer satisfaction to
ensure long-term company success.
Total quality management (TQM)
 TQM utilizes the strengths and
expertise of all the employees of a
company as well as the statistical
problem-solving and charting methods
of statistical process control (SPC).
Total quality management (TQM)
 TQM is based on and relies on the
participation of all members of an
organization to continuously improve
the processes, products, and
services their company provides as
well as the culture they work in.
The Objective, and Principles TQM
CONTINUOUS
IMPROVEMENT
OBJECTIVE
PRINCIPLES
Customer
Focus
Process
Improvement
Total
Involvement
Objective of TQM: Continual
Improvement
 the notion that the performance
standard to reach is
 perfection
or “zero defect” to coin Phillip
Crosby
 or “picking the last grain of rice” in
Japanese

 involves incremental improvement &
breakthroughs
Principles of TQM: Customer Focus
 the notion that all work is performed for
a “customer” and
 it is the customer who determines its
value
Principles of TQM: Process
Improvement
 The concept of continuous improvement is
built on the premise that work is a result of a
series of interrelated steps and activities that
result in an output.
 Continuous attention to each of these steps in
the work process is necessary to reduce the
variability of the output and improve the
reliability of the process
Principles of TQM: Process
Improvement
 The 1st goal of continuous improvement is
processes that are reliable – reliable in the
sense that they produce the desired output
each time with no variation.
 If variability has been minimized and the
results are still unacceptable, the second goal
of process improvement is to redesign the
process to produce an output that is better
able to meet the customer’s requirement.
Principles of TQM: Total Participation
(TP)
 the idea that work has an additional
dimension
 In traditional organization, the worker
expects to be told what to do and how
satisfactory performance will be measured
Principles of TQM: Total Participation
(TP)
 TP implies that the person closest to the
task is most qualified to suggest improved
ways of doing the job
 He/she suggests ways to make
improvements aimed at enhancing
productivity & value to the customer
Implication for Managers
 Managers need to understand the
differences and similarities in the
leading quality philosophies and
develop a quality management
approach tailored to their organization.
THE END
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