QUALITY, QUALITY A$SijRANCE, RELIABILITY AND ISO 9000 357,

I APPENDIXII
Winning with Quality
Management guru W. Edward Deming is finally being heard in America, the land of his birth.
Japan's prestigious international award for quality, a Deming Prize has been given to Florida
Power and Light Company (FPl), which is Miami-based and one of the fastest growing electrical
utilities. The Deming judges relied on massive documentation and on-site inspections and spent
18 months with FPl's management processes'and its delivery of services before awarding the prize
to the company in November 1989. Only since, 1988 non-Japenese companies have been allowed
to compete for the prize. It is a rediscovery of W.E. Deming in America.
Deming first convinced Japanese - in 1950 - about the importanceof quality in products.
For several years, American businessmen had ignored Deming, even though he taught a popular
course in statistics at New York Universityand had a thriving consultancy in sampling. Incidentally,
Government of India had hired Deming as a consultant in 1947, 1951 and in 1971. He devised
an efficient sampling technique for u.s. Bureau of Census. During World War II,he helped American
defence industries apply SQC.
American industry', complacent in its prosperity, had no use of Deming and his 14-point QC
programme. He was invited by Japanese Scientistsand Engineersto talk about quality and convinced
that Japan would accept quality consciousness, he stayed on to become a hero there, making Japan
invade the world market by superior quality and productivity. America woke up to his genius 30
years after Japan had begun using Deming's line. Deming was hired by Ford in 1983 to effect
tU,rnaround. For more than a decade now, Deming is spreaning his quality mission in American
industries like GM, Ford, AT & T, Western Electric, Nashua.
Deming has now expired at the age of 93 on Dec. 20, 1993.

W. Edwards Deming
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358 PRODUCTION AND OPEfiATIONS MANAGEMENT

Deming is against numerical quotas, against exhorting workers to improve quality (because
most of the things that contribute to quality are not in theJr contro!), against quality control by
inspection which the terms as criminal. ,-
'--
The heart of Deming's method for achieving quality is statistical.

~ A Deming Checklist
. Buildquality into the process. Don't rely on inspection.
'. Fosterteamwork.
. Establishlong-termties with select suppliers.No contracts on price tag alone.
. Train workersand managersfor participatingin the improvementprocess.
" Top management'scommitmentto improveproductsand services.
Quality leads to customerloyaltywho gets a reliableproduct which lasts longer.The most
impprtantdimensionof quality is, howeverthe reduced variabilityor increased uniformity.This
comesaboutby improvingthe processor the system.Thequalityproblems(85per cent)are related
to the systemand only'a few are related to individuals(15 per cent). Deming's continuation is
to have established quality as tool to competitive success. '

, ,./ THE14 POINTS

~
I I

developed .the following 14 points to improve management of quality. These are

taken from The Deming Management Method ,by Ma~ Waiton (Perigree Books, N.Y. 1986).
"

1. Create constancy of purpose for improvement of product/service.

2. Adopt a new philosophy which does not accept poor workmanship and sullen service.
3. Cease dependence of mass inspection. Quality comes not -from inspection but from
improvement
. of the process. '

4. End ,t~e practice of awarding business on price tag alone. Purchases from the lowest-
priced 'vendor may lead to low quality purchases.
5. Improve constantly and forever the system of production and service.
6. Industrial training,
7. Institute leadership.
8. Drive out fear.
9. Break down barrier between staff areas.
10. Eliminate slogans, exhortations, and targets for the work force.
11. Eliminate numerical quotas.,
. 12. f?emove barriers to pride of workmanship.
13. Institut~ various programmes of education and retraining.
14. Take action to accomplish the transformation.
Sundaram Clayton, this Indian company recently won the prestigious Deming Prize, the highest
, award for quality instituted by a Japanese institution.
 QUALITY, QUALITY ASSURANCE. RELIABILITY AND ISO 9000 359 -

JOSEPHM. JURAN .,.,

. , \.
The two founding fathers of quality are'the late W. Edwards Deming and the living legend
Joseph Juran who became 90 on Dec. 24, 1994. Juran
sparked off quality revolu~ion in Japan in 1954. He is the
founder and chairman emeritus of the exalted Juran Institute..
In '1987,' Japan's emperor Hirohito conferred on him the
Order of the SacredT.c:a:>uic for the 'development of quality
control' in Japan and the 'facilitation of US Japanese
friendship.' In 1997, US President George Bush presented
him with the 'National Medal of Technology' for his life-
time work of providing the key principles and methods
by which enterprises manage the quality of their products
and services.He is the world's greatestauthority on quality.
His books Quality Control Handbook and Quality p'lanning
Road Map are great works on the subject of quality. He
advocates total quality where business plans have annual
quality goals. These goals must be met. According to him,
ISO certification is no guaranteeof a world-class company.
Joseph M. Juran It is only a systemfor control. The company has to bring
. . about a beneficial change. ISO systemis limited to control.
It is a m4rketing requiremen't. The company has to go beyond it. His another best-selling title is
Juran On Planning For Quality. He is Connecticut-US-based. He developed Pareto Principle in
Qualjty Control. Dr. Juran appeared live in India in a satellite downlink at 22.00 hours 1STduring
the Qimpro Convention 1997 on Wed., Oct. 22, 1997. At 93, this may well have been his last
public appearance. .

PHILIPCROSBY
The. holy trinity of quality. consists of three persons - W.Edwards Deming, Joseph M. Juran
and Philip Crosby who is now 70 years old. He is now Florida-based. His seminal work is Quality
Is Free. He is busy writing a sequel to it. Quality, according to
him, means getting it right the first time rather than merely laying
down acceptable standardsof quality. Companies must price their
product on this proposition, and then quality costs no more. It is
. virtually free. The key to quality is conformance to requirements. \

It is the first absolute on quality. He laid emphasis on prevention

of dpfects. He advocated quality has a performance standard of
. zero defects - in other words 'do it right - the first time.' He is
of the opinion that quality should be measured by the price of
nor-conformance. He dropped his fifth absolute on economics of
quality as it is inter-woven in the above four postulates. He is not
satisfied with QC or quality control in manufacturing which puts
emphasis on detection. He advocates quality management - QM
which putsemphasison prevention. He ridicules TQM: Total Quality
Management asTrivialising Quality Management. TQM is activity-
Philip Crosby
360 PRODUCTION AND OPERATIONS MANAGEMENT

based, and is a substitute for running the show properly by handing over the responsibility of
managing quality from man<!gementto some other group. Quality to him is not goodness. It is
doing what we promised to do. Customers want what they have been promised. He is fascinated
by the lunch-box distribution system in Mumbai and feels that the people who can work out such
a system are capable of doing great things. Indian industry should be guided by the motto 'we
shall deliver defect-free products and services to our customers and co-workers on time.'
Hp.established Quality College at Florida, USA.
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