Chapter 3
Quality Management
Philosophies
Slide 3.1
Leaders in the Quality Revolution
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Slide 3.2
W. Edwards Deming
Joseph M. Juran
Philip B. Crosby
W. Edward Deming
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Slide 3.3
Received a Ph.D. in physics and trained as a
statistician
Worked for Western Electric in the 1920s and 30s
After World War II helped Japan implement his
statistical quality control
Deming became known in 1980 when the broadcast
program entitled If Japan Can…Why Can’t We?
Credited with having the greatest influence on quality
management
Quality philosophy focused on reducing uncertainty
and variability
W. Edward Deming cont…
Deming:
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Slide 3.4
stressed that the ultimate responsibility for
quality improvement lies with top
management
estimated that 85 to 95 % of variation
results from the system
maintained that the majority of poor quality
in a system is caused by management
claimed that higher levels of quality lead to
higher levels of productivity
Deming Chain Reaction
Improve quality
Costs decrease because of
less rework and mistakes
Productivity improves
Capture market with better
quality and lower price
Stay in business and provide more jobs
Slide 3.5
Deming’s System of Profound
Knowledge
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Slide 3.6
Appreciation for a system
Understanding variation
Theory of knowledge
Psychology
Systems
A system is a set of functions or activities
within an organization that work
together for the aim of the organization.
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Components must work together
Management must optimize the system
Every system must have a purpose
Slide 3.7
Variation
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Slide 3.8
Many sources of uncontrollable
variation exist (common causes)
Special (assignable) causes of variation
can be recognized and controlled
Failure to understand these differences
can increase variation in a system
Taguchi philosophy seeks to minimize
variation around a target value
Sources of Variation in
Production Processes
Materials
INPUTS
Operators
Measurement
Instruments
Methods
PROCESS
OUTPUTS
Tools
Machines
Slide 3.9
Environment
Human
Inspection
Performance
Traditional View of
Conformance to Specifications
Loss
No Loss
0.480
0.500
Tolerance
Slide 3.10
Loss
0.520
Theory of Knowledge
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Slide 3.11
Knowledge is not possible without theory
Experience alone does not establish a
theory, it only describes
Theory shows a cause and effect
relationship that can be used for
prediction
Psychology
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Slide 3.12
Sincere trust and belief in people
Understanding of how people work in
systems
People are motivated intrinsically and
extrinsically; intrinsic motivation is the
most powerful
Fear is demotivating
Managers should develop pride and joy in
work
Deming’s 14 Points (Abridged) (1 of 2)
1. Create and publish a company mission
statement and commit to it.
2. Learn the new philosophy.
- Customer driven continuous improvement
3. Understand the purpose of inspection.
- workers must be responsible for their work
4. End business practices driven by price alone.
- Price has no meaning without quality
5. Constantly improve system of production
and service.
6. Institute training.
- Job specific training
Slide 3.13
Deming’s 14 Points (2 of 2)
7. Teach and institute leadership.
8. Drive out fear and create trust.
9. Optimize team and individual efforts.
10. Eliminate exhortations for work force.
11. Eliminate numerical quotas and M.B.O.
Focus on improvement.
12. Remove barriers that rob people of pride
of workmanship.
13. Encourage education and self-improvement.
14. Take action to accomplish the transformation.
Slide 3.14
Deming Prize
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Instituted 1951 by Union of Japanese
Scientists and Engineers (JUSE) in
Japan
Several categories including prizes for
individuals, factories, small companies,
and Deming application prize
American company winners
– Florida Power & Light (first U.S. winner)
Slide 3.15
Joseph Juran
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Slide 3.16
Industrial Engineer
Joined Western Electric in the 1920s
Authored The Quality Control Handbook
which often referred to as the quality bible
Believed quality improvement should be
achieved through projects
Focused on three major quality processes,
called the Quality Trilogy
Juran’s Quality Trilogy
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Quality planning
– Preparing to meet quality goals
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Quality control
– Meeting quality goals during operations
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Q.P
Quality improvement
– Reaching unprecedented levels
of performance
Slide 3.17
Q.C.
Q.I.
Key Idea
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Slide 3.18
Juran proposed a simple definition of
quality: “fitness for use.”
This definition of quality suggests that it
should be viewed from both external and
internal perspectives; that is, quality is
related to “(1) product performance that
results in customer satisfaction; (2)
freedom from product deficiencies, which
avoids customer dissatisfaction.”
Philip B. Crosby
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Corporate V.P. for quality at International
Telephone
Authored book entitled Quality is Free
Believed that zero defects is a realistic goal
Defined the cost of quality as:
– Expense of nonconformance
Slide 3.19
Phillip B. Crosby
Quality is free . . .
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“Quality is free. It’s not a gift, but it is free.
What costs money are the unquality things -all the actions that involve not doing jobs right
the first time.”
Philip B. Crosby’s Philosophy
Absolutes of Quality Management:
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quality means conformance to requirements
– Requirements must be clearly stated so they
can’t be misunderstood
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problems are functional in nature
– Problems must be identified by those
individuals that cause them
Slide 3.20
Philip B. Crosby’s Philosophy cont…
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there is no optimum level of defects
– Doing the job right the first time is always cheaper
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cost of quality is the only useful
measurement
– Quality cost data are useful to call problems to
management’s attention
– Crosby estimated that most companies spend 15
to 20 percent of their sales dollars on quality costs
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Slide 3.21
zero defects is the only performance
standard