Total Quality Management
Instructor: Hank Sobah
Quality Theory
Juran, Crosby, Deming
Total Quality Management
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Key concepts
The Cost of Quality
Tools and Techniques
Benefits
Implementation
Total Quality Management
Company Wide Quality Control
Whole operation
Involved
Quality strategy
Quality measured in all areas of the firm
Quality Assurance
Teamwork
Quality System
Staff Empowerment
Quality Costing
Customer Involvement
Quality Control
Problem Solving
Statistical Methods
Supplier Involvement
Quality Planning
Process Performance
Quality Standards
Inspection
Error Detection
Rectification
The Cost of Quality
• Elements (prevention, detection, appraisal, internal
and external failure, customer loyalty)
• Kaizen TQM always involving everyone, always
going forward, a ‘Way of Life’.
• Cost is related to not doing something
• Not just a manufacturing initiative
Cost of Quality
The earlier in the process that quality is fixed
the lower the overall cost.
(obvious really isn’t it!)
Prevention
Appraisal
Prevention
Internal failure
Appraisal
External failure
Internal failure
External failure
Quality Management Tools
• Pareto principle 80/20
• Visual presentation – histograms, scatter diagrams,
control charts
• Check sheets
• SPC – Statistical Process Control
• Cause and effect diagrams – Fishbone / Ishikawa
diagram
• Stratification
Beyond Tools to TQM
• Taguichi Quality Loss Function (QLF)
• Quality circles
• Kaizen
Company Wide Quality Control
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Customer service
Quality of management
Quality of company
Quality of labour
Quality of Materials, techniques, equipment
TQM Implementation
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Top level strategy with management support
Steering Group
Group based improvement (quality circles)
Continuous improvement (Kaizen)
Success recognized
Training, lots of it & continuously
Examples of formats MBNQA, ISO 9001 / BS 5750
Benefits
• Shareholder wealth
• Increased job satisfaction (by improved
communication and involvement, better training, pride
in work workmanship
• Customer needs are better met
• Improved supplier relationship
• Corporate image improved
• Longer term relationships – customer value
Without TQM
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Uninterested operators
Increased defects in products
Drop in labor efficiency
No quality consciousness (why bother?)
Increased absenteeism
Increased labor turnover
TQM Requires
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Top management commitment
Continuous improvement
All aspects of the business
Long-term commitment
Eight attributes of quality
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Performance
Features
Reliability
Serviceability
Durability
Conformance
Aesthetics
• Perceived Quality
The difference between TQM
and non-TQM Companies
• IBM in Ontario ordered a batch of components specifying an
SQL of 3 defective parts per 1000. When the parts arrived from
the Japanese manufacturer they were accompanied by a letter
which expressed their bewilderment at being asked to supply
defective parts as well as good ones. The letter explained that
they had found it difficult to manufacture the defective parts , but
indeed had. These 3 defective parts per 1000 had been
included and were wrapped separately for the convenience of
the customer.
Extra Slides
Ishikawa 4 M’s
Materials
Machines
Lack of maintenance
Effect
Manpower
Methods
Quality Circles
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5-10 People usually drawn from the same operational area
Meet regularly during work time
Chaired by a deputy, or foreman
Use of SQC methods and problem solving techniques Brainstorming and goal orientation
• Future problems - failure mode effects analysis
• Opportunity for development both formal and through creativity
• Management must act on recommendations from the group
Kaizen
• KAIZEN is a Japanese word meaning gradual and orderly,
continuous improvement.
• It is a business strategy involves everyone in an organisation
working together to make improvements 'without large capital
investments'.
• KAIZEN is a culture of sustained continuous improvement
focusing on eliminating waste in all systems and processes of
an organisation.
• KAIZEN strategy begins and ends with people. Involved
leadership guides people to continuously improve their ability to
meet expectations of high quality, low cost, and on-time delivery.
Source: www.kaizen-institute.com
Kaizen –The Wet Blanket Approach
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I am too busy to study it
It's a good idea, but the timing is premature
It is not in the budget
Theory is different from practice
Isn't there something else for you to do ?
I think it doesn't match corporate policy
It isn't our business; let someone else think about it
Are you dissatisfied with your work ?
It's not improvement, it's common sense
I know the result, even if we don't do it
I will not be held accountable for it
Can't you think of a better idea ?
Source: www.kaizen-institute.com
Basic tips for Kaizen Activities
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Discard conventional fixed ideas.
Think of how to do it, not why it cannot be done.
Do not make excuses. Start by questioning current practices.
Do not seek perfection. Do it right away even if for only 50% of
target.
Correct it right away, if you make a mistake.
Do not spend money for KAIZEN, use your wisdom.
Wisdom is brought out when faced with hardship.
Ask 'WHY?" five times and seek root causes.
Seek the wisdom of ten people rather than the knowledge of
one.
KAIZEN ideas are infinite.
Source: www.kaizen-institute.com
Pareto Diagrams
Total
Number
of Problems
Class A
Class B
Class C
Class 'n'
Causes of failure
Class A factors are the 20% of recurring causes resulting in 80% of
all quality symptoms - these are critical and must be reduced.
Total Productive Maintenance
‘Prevention rather than cure’
• Seri - Sorting
• Seiton - Orderliness
• Seiso - Cleaning
• Seiketsu - Cleanliness
Taguchi Methods
• Approach pulls quality back to the design stage.
• Recognizes quality as societal issue as well as an
organizational one.
• Strong on process control
Prophets of Quality
Juran, Crosby, and Deming
• All agree - it is management's responsibility to
establish a culture where commitment to quality is the
main focus
• Mission of the organization must be clear to everyone,
• Every management action must lead to fulfillment of
that mission.
• Requires commitment from the top of the organization.
• Effective communication, cooperation, and teamwork
throughout the organization are essential
Juran, Crosby and Deming
All agree
• Customer-focused quality is a long-term process
that will not produce results overnight.
• Long term improvements include reduced costs
and ability to anticipate and avoid problems
• Don’t view quality as improvement in final
products
• Don’t believe inspection/QC processes productive
or cost effective means of managing quality
Joseph Juran
“It is most important that top management be
Quality-Minded. In the absences of sincere
manifestation of interest at the top, little will
happen below.” 1945
Joseph Juran
• Bell Engineer 1924, began working with Shewart and
Deming on SPC
• Author of Western Electric Statistical Quality Control
Handbook and the Juran Quality Control Handbook
• Strategic and Structured Quality Approach
• Principal of the Vital Few and Trivial Many
• Developed a course, MANAGING FOR QUALITY in
1940’s and taught it for approximately 30 years to over
100,000 people in over 40 countries
• Emphasized the role of management in quality.
• By 1960’s began teaching US the new quality ideas
coming out of Japan
Joseph Juran
Main Concepts:
• Top Management Involvement
• Pareto Principle
• Need for widespread training in Quality
• Definition of Quality as Fitness for Use
• Project by project approach to Quality Improvement
• SPC and Process Analysis
• Cultural patterns root of resistance to change
• Great need to communicate
Joseph Juran
Proposes a strategic and structured (i.e., project- byproject) approach to achieving quality. His
concepts include:
1. the Spiral of Progress in Quality,
2. the Breakthrough Sequence,
3. the Project-by-Project Approach,
4. the Juran Trilogy, and
5. the principle of the Vital Few and Trivial Many
Juran –Project by project approach
• Two types of teams to analyze projects – the
steering arm and the diagnostic arm
• Projects and teams selected by management
• Members required to develop skills in team
leadership, team participation and problem
solving tools.
• All employees need to participate in the
improvement process
Juran’s Journey
• Process of analyzing problems is a journey
from symptom to cause
• Emphasizes root cause removal
• Symptom is indication that there is a
problem
• Once the cause is discovered, the team
comes up with the solution
Juran’s Trilogy
• Systematic approach to carrying out Juran s
methodology for managing for quality.
• Active leadership, starting at the top, is
essential
• Consists of three interrelated qualityoriented processes—
– quality planning,
– quality control, and
– quality improvement
Juran Trilogy – Relevant Activites
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Identifying customers,
Establishing measurements, and
Diagnosing causes.
Juran compares the activities of the trilogy
with those of financial operations. Money
is the language of management and, in his
terms, quality planning is analogous to
budgeting, quality control to cost control,
and quality improvement to cost reduction.
Philip Crosby
“Quality can’t be delegated. The who and
why must be understood by top management
before the what and how can be launched.”
“Quality is Free” and “Zero Defects”
Phillip Crosby
• Noted Quality Consultant, Lecturer and Author of many books
translated into over 10 languages
• Author of QUALITY IS FREE, 1979 Best Seller
• Recognized Business Philosopher, Innovator and Quality Guru
• Philip Crosby Associates is world’s largest management consultant and
teaching firm
• Promoted the concept of “Zero Defects” originally at Martin Marietta
where he worked 1960’s
• Quality attitude, commitment to quality performance, zero defects first
time every time
• Defined Quality as CONFORMANCE TO REQUIREMENTS
• Prevention rather than detection and correction
Phillip Crosby
Main Concepts:
• Management must understand the issues and take
responsibility to improve
• Management must remove barriers to quality
• Must understand organization and process
capabilities
• Management must continually measure quality by
measuring the cost of doing things wrong
• Quality Pays and Pays Handsomely, Quality does
NOT cost more per conventional wisdom
• Cost of Quality Analysis (COQ = Price of NonConformance + Price of Conformance)
Phillip Crosby
• Four Absolutes of Quality
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Quality is Conformance to Requirements
Eliminate Errors before the Occur
Do it right the first time
The Measurement of Quality is the Price of NonConformance
• Six “C’s” of Quality – Comprehension of Q,
Commitment to Q, Competence via education and
training, Communication, Correction (prevention
and performance) and Continuance
• Quality Vaccine = Education, Determination and
Implementation
Phillip Crosby
• Stressed the way to manage quality is by prevention, not
detection and testing.
• Addresses the need to change perceptions and attitudes
about quality.
• Avoid the common attitude that error is inevitable; it is a
normal part of business life, and one needs to cope with it.
• Ultimate goal of quality improvement is Zero Defects or
defect-free" products and services.
• Zero Defects is an attitude and commitment to prevention.
• Zero Defects does not mean that the product has to be
perfect.
Phillip Crosby
• The system of quality is prevention
• Training, discipline, example, and leadership
produce prevention
• Inspection and correction does not prevent errors.
• Prevention involves thinking, planning, and
analyzing processes to anticipate where errors
could occur, and then taking action to keep them
from occurring.
• Problems usually arise because product or service
requirements are either lacking or in error.
Phillip Crosby
Prevention begins by:
• Establishing product or service requirement,
• Developing the product or service,
• Gathering data, comparing the data to the
requirement, and
• Taking action on the result.
This is a continuous activity.
Which Quality Guru was a key player, a
mastermind in Total Quality Management
programs?
Why, Dr. W. Edwards Deming, of course!
W. Edwards Deming
“everything is the fault (or credit)
of top management.”
W. Edwards Deming
• High Prophet of Quality Control and TQM
• Advisor, consultant, author, teacher to most influential
business leaders and organizations in the world.
• PhD. Physicist in 1928, worked with Shewart and Juran on
SPC
• Founder of the THIRD WAVE OF INDUSTRIAL
REVOLUTION
• 1938 applied SPC concepts to U.S. Bureau of Cencus for
sampling techniques
• 1942 Served as consultant to the Secretary of War on using
SPC to strengthen the war effort
W. Edwards Deming
• Assisted in the re-vitalization of post WWII Japan by
applying SPC and QC techniques to agricultural and
manufacturing issues
• Japanese Union of Scientists and Engineers contracted
Deming to teach statistical methods to Japanese industry,
naming their national quality award – The Deming Award
– after him
• Pursued similar mission in USA
• Gained and almost Cult Status for his philosophies
• 1980 NBC Special, “IF JAPAN CAN WHY CAN’T WE”
launched US Quality Movement
• Life long demand as Lecturer and Consultant
W. Edwards Deming
• Takes a systems and leadership approach to
quality. Concepts associated with his
approach include:
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14 Points
7 Deadly Diseases
Theory of Systems
Theory of Knowledge
Theory of Variation
Plan-do-check-act
Quality improvement by process improvement
W. Edwards Deming
Deming chain reaction:
• improve quality,
• costs decrease and
• productivity improves.
• Creates a greater potential for increased
market share.
DR. W. EDWARDS DEMING
• His philosophy treats individuals as fellow
members of a system.
• His system leads to a GOOD chain reaction,
involving….
Improve quality  decrease costs  productivity
improves  capture the market with better
quality/price stay in business  provide
employment
W. Edwards Deming
• Some of Deming's economic beliefs gained
from his philosophies and applications:
– Reduction of the economic burden
– Expansion of the markets
– Survival of organizations that serve customers
THE DEMING METHOD =
MANAGEMENT METHOD
The Quality Method, defined by Dr. Deming, is a
MANAGEMENT method. It requires change in our
managers. It is NOT a method that is built upon
inciting or demanding quality from workers as we
incited and demanded QUANTITY of production.
Putting up posters that tell workers to produce quality,
or creating clever slogans that exhort workers to
produce quality is not part of a Deming Quality
process and only illustrate how little we have learned
about the Method.
QUANTITY  QUALITY
QUANTITY  QUALITY
• Quality is the job of management.
• The Deming method of Quality is a management process.
– It assumes that the worker is a craftsman and that he will produce quality, if
he/she is only given a chance (and the proper resources).
– The Deming method further assumes that well trained workers will produce
quality products, if managers do their jobs correctly and provide the proper
resources, organizational structure, and environment.
• Dr. Deming was very confident about how to motivate employees
– Allow them to build quality products (or perform top quality services).
• Dr. Deming was also very confident about how NOT to motivate
employees….eliminate
– Quota systems
– Annual performance reviews
– Any form of pay for performance systems
• These systems, Dr. Deming felt, were just a waste of the company’s money
and a manager’s time – money and time that would be much better spent on
solving production or process problems, that will allow the workers to
produce better quality.
Deming - Quality is the
job of management.
It is a management process.
It assumes that the worker is a craftsman and that
he will produce quality, if he/she is only given a
chance (and the proper resources). The Deming
method further assumes that well trained workers
will produce quality products, if managers do their
jobs correctly and provide the proper resources,
organizational structure, and environment.
W. Edwards Deming
• Dr. Deming was very confident about how
to motivate employees – simply allow them
to build quality products (or perform top
quality services, in today’s economy). Dr.
W. Edwards Deming
• Deming was also very confident about how NOT
to motivate employees….eliminate:
– Quota systems
– Annual performance reviews
– Any form of pay for performance systems
• These are a waste of the company’s money and a
manager’s time – money and time that would be
much better spent on solving production or
process problems, that will allow the workers to
produce better quality.
Deming – 7 Deadly Diseases
7 Reasons TQM Fails
• Lack of a clear “shared model” of quality that the entire
organization embraces.
• Lack of “shared” values and vision for the organization
• Focusing on COMPLIANCE (to standards, procedures,
goals), rather than COMMITMENT as the driving force of
the program
• Departmental barriers, walls or “concrete silos” that are
tough to break
• A non-systematic approach to TQM implementation –
taking it “willy nilly” instead of following some plan.
• Senior managers who cannot or will not drive the
transformational process.
• Having an organizational culture that does not
collectively learn and follow the process needed.
Deming’s Quality Approach
UNDERLYING PRINCIPLES
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Variation
Theory of Knowledge
Theory of a System
Psychology
Deming Theory of Variation
This is his basis for SPC and treatment of people
• Two causes of variation
– common errors
– special causes
• Two costly errors
– Treating common causes as special
– Treating special causes as common
Theory of Knowledge
? How do we know things ?
SOME WAYS THAT WE CAN “KNOW” THINGS…..
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Statistics properly used for MEASUREABLES (characteristics, things,
service quality)
Having Theories and Predictions are crucial to understanding the knowledge
The things that are most important ARE NOT MEASUREABLE
For example, How do you measure…….
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An employee’s happiness
The true cost of poor quality
Lack of customer goodwill
Lack of supplier goodwill
Poor communication in the organization
Theory of System
This applies to a COMPLETE system - suppliers to customers
Suppliers
YOU or YOUR
ORGANIZATION
Customers
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Common Causes of Variation are built into the system
naturally
• Management maintains SOLE responsibility for the system.
• Leadership is Required.
– The system will only be as good as it is led to be.
• Special causes are outside the system, and are everyone’s
responsibility.
• Internal competition is destructive.
Psychology
• Employees CANNOT be evaluated apart from the system.
• Employees ARE the system
– they will only be a good as the system (and leadership) allows.
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Money is NOT a motivator.
– Money only works a short-term stopgap.
– “Give me more money and I will like better what I do –“ NOT!
– All money as a short-term solution does is give me a fatter paycheck
with which to “enjoy” my misery!
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EVERYONE in the organization is responsible for
improvement.
– Overall improvement cannot be handled by one person or one
department
– everyone is important.
• People are most productive in cooperative teams.
– “We are all experts and idiots – just in different things.”
– “All of us are smarter than one of us
Deming tells us…
“…the majority of a worker’s effectiveness is
determined by the worker’s environment,
and only minimally by his own attitudes,
work ethics, behaviors.”
DEMING SYSTEM OF
PROFOUND KNOWLEDGE
• Dr. Deming based his business philosophy on cooperation
- to determine its own potential, an organization must
harness the power of every worker in its employment.
• In order to promote cooperation, Deming discusses his
System of Profound Knowledge. Profound knowledge
involves expanded views and an understanding of the
individual yet truly interdependent element that compose
the larger system – every worker have nearly unlimited
potential if placed in an environment that supports,
educates, and nurtures senses of pride and responsibility.
• Deming tells us that the majority of a worker’s
effectiveness is determined by the worker’s environment,
and only minimally by his own attitudes, work ethics,
behaviors.
DEMING SYSTEM OF
PROFOUND KNOWLEDGE
To effectively implement the System of Profound Knowledge, a
manager must….
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Employ an understanding of psychology of groups and of individuals
Eliminate tools such as production quotas and slogans – these only
alienate workers and supervisors – no gap bridging here – and breeds
intense competition between the workers themselves – I can do better
than you.
Form the company correctly – Make the organization into a large team
divided into sub-teams all working on different levels of the same goal
– barriers between departments often give rise to conflicting objectives
and unnecessary competition.
Share the wealth – spread the profits among the teams
Eliminate fear, anger, envy, and revenge from the workplace.
Employ sensible methods such as rigorous on-the-job-training
programs.
DEMING SYSTEM OF
PROFOUND KNOWLEDGE
• In this “effectively implemented system” organization, the
workers better understand their jobs
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the specific task
the technological relationships
they value themselves higher
they are stimulated and empowered and show overall better
performance.
• Dr. Deming has noted that upwards of 94% of all problems
in organization – and their solutions – stem from the
SYSTEM and the PEOPLE.
• Concentrate on understanding the system and how you
might adjust to make the organization operate more
productively and positively.
Deming tells us…
Upwards of 94% of all problems in
organization – and their solutions – stem from
the SYSTEM and the PEOPLE.
Concentrate on understanding the system and
how you might adjust to make the organization
operate more productively and positively.
The ideas of Dr. Deming may seem common or
obvious now, but have not always been practiced
in our culture of work.
Dr. Deming’s ideas and personal examples of
hard work, sincerity, and personal responsibility
have forever changed the world of management.
“It is not enough to just work hard.
You must know what to work on.”
If you are not having fun, then you’re doing something wrong
4 Pillars of Profound Knowledge
• Appreciation for a system: Organizations are interactive
systems, and must be managed as systems. Management’s
role is to strive toward organization of the enterprise as a
whole.
• Theory of variation: Variation is always present. The key is
not in measuring it, but in understanding what is causing it;
not to judge or blame individuals, but to improve the
system.
• Theory of knowledge: Management’s job is prediction.
Prediction is based on knowledge. Knowledge is built on
theory. Experience without theory teaches nothing.
• Some Psychology: Knowledge of individual and group
psychology is needed to nurture and preserve innate
desires of people to learn, to create, to contribute, and to
take pride in work.
Deming’s 14 Points
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Create constancy of purpose for improvement of
products and service
Adopt a new philosophy; we are in a new economic age
Cease dependence upon inspection as a way to achieve
quality
End the practice of awarding business based on price
tag
Constantly improve planning, production and service
process, INCLUDING PEOPLE!
Institute training on the job
Institute improved leadership
Deming’s 14 Points
8. Drive out fear
9. Break down departmental barriers
10. Eliminate slogans/targets asking for increased
productivity without providing methods
11. Eliminate numerical quotas
12. Remove barriers that stand in the way of workers and
their pride of workmanship - both hourly and salaried.
13. Institute programs for education and re-training
14. Put all the emphasis to work to accomplish the
transformation
#1 Create constancy of purpose for
improvement of products and service
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Management is charged with re-defining
continual improvement, in a way that best fits
the organization’s goals and purposes. The
organization has to strive to survive, compete
globally and constantly replenish its resources
for growth and improvement. How? Through
improvement and research.
#2 Adopt a new philosophy;
we are in a new economic age
Consider what is best for the organization as
a whole. We can no longer assume that our
customers will be loyal to us because they
like us. If the organization cannot be
profitable, in dollars, quality, and proper
treatment of people – then what’s the point?
#3 Cease dependence upon inspection
as a way to achieve quality
Quality cannot be inspected into a product
or process. Erase the philosophy of “the
inspector (or QC department) will catch
any problems before the product is
shipped. Let’s keep going.” Instead, adopt
the philosophy of “develop a system with
sound processes that can make quality
products. Do it right the first time, and the
system will improve itself.”
#4 End the practice of awarding
business based on price tag
Does your organization award business to
suppliers and other vendors, solely on the price
tag? Point four specifically warns against this!
Why? By awarding business strictly on price,
the organization often (but not always) gets
lower quality. If, however, an organization
established loyalty agreements or good working
relationships with suppliers/vendor, perhaps
even long term contracts, higher quality is
obtained, as often is better pricing.
#5 Constantly improve - planning, production
and service process, INCLUDING PEOPLE!
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Dr. Deming states here that only a commitment to a
PROCESS of continual improvement will not alone
bring results. We cannot ignite and spread a quality
revolution that will lead to constant continual
improvement by just having a process and commitment.
Instead, we need an “evolutionary philosophy” that
prevents stagnation of the company. Part of the
“evolutionary” mentality is to abandon practices that are
obviously only short-term benefits, as these ultimately
detract from overall organizational effectiveness.
#6 Institute on-the-job Training
NEVER assume that the newly hired
person, or transferred individual from
another division, will know everything they
need to do. Even the most experienced,
talented, and qualified worker needs to
adapt and learn the systems and processes
of a new organization/new department.
#7 Institute Improved Leadership
• Just having a “leader,” “supervisor,” or “manager” title
does not make you a good leader – or even a leader at all.
Very few managers have been formally trained to manage,
or to be a leader. Many “leaders” are not even familiar with
Deming principles at all.
• Management is not “self-evident” – it requires skill, ability,
practice, and training. Unless managers are trained to
manage and to be leaders in the Deming world, we will
continue to hurt ourselves with “gross miscalculations”
like re-engineering and downsizing.
#8 Drive out Fear
“Many employees are afraid to ask questions, or to take a
position, even when they do not understand what the job is
or what is right or wrong. People will continue to do things
the wrong way, or not to do them at all. The economic loss
from fear is appalling. It is necessary to better quality and
productivity that people feel secure, “ Dr Deming once
wrote. He wrote this long before the age of re-engineering
and downsizing – two key reasons why fear exists in the
work place. Bert Petersen, human resources consultant
specializing in employee relations implication of the
Deming Quality Principles, is of the opinion that FEAR is
likely the largest source of waste in the American
enterprise.
#9 Break Down
Departmental Barriers
• All employees and departments are part of the
organization, but it is often an “us versus them”
scenario. The organization as a whole needs to
understand that each individual and entity are part
of the whole picture.
• Management is responsible for making this
happen. Only management can help workers
understand this. How? By example – showing how
all departments/divisions work as one entity; don’t
pit the groups against each other.
#10 Eliminate slogans/targets - don’t ask for
increased productivity without providing methods
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Don’t rely on posters displayed throughout the
organization as the only vehicle for increased
productivity/quality. We do not need elementary
school level posters to encourage employees to
do “good work.”
In some organizational cultures, use of these
posters is actually embarrassing to management
and employees. Let the employees work with
managers to develop their own slogans or targets
– this is the core group that does the work.
#11 Eliminate Numerical Quotas
“Quotas take into account only numbers, not
quality or method. They are usually a guarantee of
inefficiency and high cost. A person to hold a job,
meets a quota at an cost, without regard to damage
to the company,” Dr. Deming wrote.
Workers make quotas at the expense of quality.
Managers accept lack of quality, because it is the
price of the quota system. Quotas make a quality
system impossible to implement.
#12 Remove barriers – don’t stand in the
way of workers and their pride of workmanship
People, in general, are eager to do a good
job. The truly good and caring workers get
distressed when cannot perform their
functions to the best of their ability. Too
often, misguided supervisors, faulty or nonexistent equipment, and defective materials
stand in the way.
#13 Institute programs for
education and re-training
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The results of this training must drive home a
philosophy throughout the organization that
“production problems are PROCESS
problems, not PEOPLE problems.”
Think about a situation you were in – what fixed
the problems more quickly? Your boss
screaming at you to make it happen, or
management (or you) studying the process to
find the deficiencies?
#14 Put all the emphasis to work to
accomplish the transformation
Everyone in the organization needs to
work together to accomplish the
goal/mission/vision as well as the Total
Quality Management movement.
Plan-Do-Check-Act
Plan
Act
Do
Check
Plan-Do-Check-Act
•
•
•
•
Decide what you want to do – write a plan
Carry out the tasks at hand on your plan
Do the plan and the action taken match?
Check your work!
Take action on the differences,
improvements, and modifications.
7 Deadly Diseases
1.
2.
3.
4.
5.
6.
7.
Lack of constancy of purpose to plan a marketable
product to keep the company in business and provide
jobs.
Emphasis on short term profits
Personal evaluation appraisal, by whatever name, for
people in management, for effects, which are
devastating.
Mobility of management; job hopping.
Use of visible figures for management, with little or no
consideration of figures that are unknown
Excessive medical costs
Excessive warranty costs, fueled by lawyers working on
contingency fees.
#1 Lack of constancy of purpose:
plan a marketable product to keep the
company in business and provide jobs.
•
•
•
Changing plans/missions/visions/focus
frequently without a solid business reason only
confuses employees, customers, and suppliers.
Can the product be marketed/sold, i.e., will
people want it? Is the product offered at a fair
price? Does the product need modified/reinvented, to please the “market?”
Can the company remain in business AND be
profitable, with the current products/product
plan/systems in place?
#2 Emphasis on short term profits
Short-term profits only get the
organization through the immediate time
period (usually less than 1 year). Focusing
on longer-term profit allows for
expansion, growth, and continual
business.
#3 Personal evaluation appraisal,
by whatever name, effects, are devastating.
•
•
Dr Deming called performance appraisals
“worse than a waste of time.” Deming
recommends this alternative:
MANAGE ON A DAILY BASIS
–
–
Talk to employees about strengths and weaknesses
every day, instead of once a year. Plan and discuss
training needs as part of the daily routine
Make it a point to ask questions then cover your
mouth and open your ears
#3 Personal evaluation….
• Pose challenges and problems to those under your
management, and let THEM come up with responses. Prepare
to be amazed at the input you receive.
• See who has mistakes (regularly) and find out why. Is training
the answer? Do they need the proper tools? Do they need
encouragement or a pat on the back?
• See who is habitually late or absent – this can be a warning
that there may be a work problem. Perhaps you can determine
what the problem is and help the employee solve it.
• Managers get more response when the HELP rather than
HINDER.
#3 Personal evaluation….
Management is not a “zero sum” game. Dr.
Deming says that less than 5% of employees are
just not right for the job. The 95% need some
assistance or guidance. Dr. Deming also says that
any failure of an employee is a failure for the
manager – view it that way, and don’t let the
performance appraisal process influence your
decisions……pay for performance does nothing.
#4 Mobility of Job Hopping Managers
• Management styles change each time
management personnel change- thus losing
stability in the organization’s operations,
theories, principles, and processes in place.
• When upper management personnel leave
(voluntarily), workers start to worry that the
“worst is yet to come.”
#5 Use of visible figures for management, with
little or no consideration of what’s unknown
•
•
•
The tangible costs of doing business (labor,
materials, equipment) are just as important as
the intangible costs (customer goodwill,
employee loyalty, supplier relationships).
Focusing only on the “numbers” – the visible
measurements – is not the answer.
Accounting and statistics alone do not make the
organization a success.
#6 Excessive Medical Costs
• Has the employees’ medical costs increased
dramatically (not due to inflation or increased
premium costs – BUT due instead to more health
care usage)? What are the reasons the health care
usage increased? Age? Prevention care?
• Many organizations have such a high stress level
that the employees’ health is affected. Could this
be the reason for the increased costs?
#7 Excessive warranty costs, fueled by
lawyers working on contingency fees.
• Examine why warranty costs are high (or higher
than normal). Is product quality to blame? Are
these “true” complaints – e.g., there really is a
traceable problem to the product or processes? Or,
are your customers just not happy overall?
• If the problem is product quality related, are there
safety/health/environmental issues associated with
it? Are lawyers driving the process – is the legal
profession advertising that your product/service
could cause the user detriment/harm?
References Used for This Presentation
•
1.) “Dr. W. Edwards Deming: The Father of the Quality Evolution,” SkyMark, 7300 Penn Avenue,
Pittsburgh, PA 15208; 1-800-826-7284 @1997-2002.
http://www.skymark.com/resources/leaders/deming.asp
•
2.) “Manager and Leadership Training,” Bert Peterson, brpeterson@cableone.net;
http://www.cableone.net/brpetersen/Training.htm
•
3.) “A Deming View of Employee Relations,” Bert Peterson, brpeterson@cableone.net;
http://www.cableone.net/brpeterson/paper.htm
•
4.) “Performance Appraisals – Why Are We Still Doing This?,” Bert Peterson,
brpeterson@cableone.net; http://www.cableone.net/brpeterson/pa.htm
•
5.) “Fear – A Management Style,” Bet Petersen, brpeterson@cableone.net;
http://www.cableone.net/brpeterson/Fear.htm
•
6.) “Employee Motivation – the Latest Holy Grail of Employee Relations,” Bert Peterson,
brpeterson@cableone.net; http://www.cableonet.net/brpeterson.motivatn.htm
•
7.) CQE Primer, Quality Council of Indiana, 1999
•
8.) “Ideas that Change Everything,” presented by Council on Realizing Excellence in Management
(CoREM), 1999.