Quality

Topic : Dr. W. Edwards Deming

Introduction

Williams Edward s Deming, 1900 in US - 1993 Considered to be the founding father of the quality movement Doctorate in physics from Yale

Teached mathematics and statistics from 1930-1946

Statistician, worked for the US government for many years Was closely involved in post-war development of quality in Japan

Deming has been given a lot of the credit for transforming Japan into a modern industrial state Rose to prominence in Japan

Methods

Deming has Three principal methods:

1.Philosophy Statistical Process Control (SPC) PDCA cycle 2.The fourteen principles for transformation 3.The seven point action plan

Philosophy
1.

Initial approach: based on statistical methods

Use of quantitative method Management focus on causes of variability in manufacturing processes Identify special and common causes of quality problems

Special causes: relating to operators or machines Common causes: Arise from the operation of the system itself; responsibility of the management.

Belief: there are common and special causes of quality problems

Philosophy
Use of Statistical Process Control (SPC) to identify special and common causes

Brings the production process under control Aim: remove quality problems relating to special causes of failure Remaining quality problems are common causes: inherent in the design of the production process Eradication of special causes enables a shift in focus to common causes to improve quality further Belief: a quantitative approach to identifying and solving problems

Philosophy

Comments on use of SPC

The statistically approach brings its own problems Bendell (1989):

Lack of technical standards, limitations of data Human difficulties by employee resistance and management lack of understanding as to their roles in quality improvement

Demings approach reflects the machine view The value of Demings work could be obscured by our ability to interpret it.

Philosophy
2. Systematic approach to problem solving: the Deming, cycle Plan, Do, Check, Action
Plan
What we do as a response to the observed effect Identify improvements and identify ways to achieve the improvements

Action

Implement necessary actions to Do achieve improvement

Verify if the implemented changes results in improvements

Check

Philosophy
3.

Systematic approach to problem solving: the Deming, cycle Plan, Do, Check, Action
Frequently used in other methodologies (e.g. ISO 9000:2001, Oakland) Continuous cycle Do it all over again ((Kaizen) Belief 1: systematic, methodical approach Belief 2: continuous quality improvement action

14 Principles

Do you have clear goals for the organization communicated to all employees?

How can everyone be empowered, feel a sense of ownership and share in the companys success?
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With everyone participating our goals are to deliver perfect quality to our customers

We want to develop long term beneficial relationships with our suppliers.

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At all levels, everyone should be involved in continuous improvement activities every single day.

If all employees are learning and growing every day, competition will be only a figment of our imagination.
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The leaders select the music, set the tone and insure that everyone is on board at every moment.

Ask your associates what they fear and then do whatever is necessary to get rid of it.
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Find ways to open communications between suppliers, customers and all employees.

Value is placed on doing and demonstrating.

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The method is balancing technology with peoples needs and aspirations and eliminating those non-value adding wastes.

Why come to work if it is not joyous?

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Ask and plan now for an ongoing continuous educational process to help everyone become the best that they possibly can be.

Ask Dr. Shingo would always say, DO IT!

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The seven deadly sins

Fundamental beliefs about bad management

Are the cause to the poor condition of many organizations today Must be eliminated

1. 2. 3. 4.

5. 6. 7.

Sin 1: Lack of constancy Sin 2: Short-term profit focus Sin 3: Performance appraisal Sin 4: Job-hopping regular movement of management between jobs Sin 5: The use of visible figures only Sin 6: Excessive medical cost Sin 7: Excessive costs of liability (Erstatningskrav)
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Philosophy

Summary of Demings philosophy:

Quantitative, statistically valid, control systems Clear definitions of those aspects under the direct control of staff that is the special causes and those which are the responsibility of management the common causes (as high as 94%) A systematic, methodical approach Continuous improvement Constancy and determination

Quality should be designed into both product and process. (Deming and Crosby)

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Assumptions
1.

Management processes and attitudes must be transformed in order for sustained improvement to be achieved

The management is seen to be responsible and capable of undertaking the proposed transformation

Deming does not suggest , in organization design terms, how this should be achieved

2.

Statistical methods will provide quantitative evidence to support changes

At the same time he recognizes that some aspects cannot be easily measured

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Assumptions
3.

Continuous improvement is possible and desirable

If the needs of the customer is fully met and understood, where is the benefit in further improvement?

Long-term view and continuous improvement may not be enough Maybe organizations must be built for sudden, catastrophic, change.

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Quotations and concepts of William Edwards Deming

"There is no substitute for knowledge. "The most important things cannot be measured." "Experience by itself teaches nothing. "You can expect what you inspect." "Special Causes and Common Causes" Acceptable Defects. Knowledge is theory. What is a system?

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Demings seven-point action plan

An action plan to implement the principles

What to do, not how to do it

1.

Management must agree on the meaning of the quality program, its implications and the direction to take Top management must accept and adopt the new philosophy Top management must communicate the plan and the necessity for it to the people in the organization

2. 3.

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Demings seven-point action plan

4.

Every activity must be recognized as a step in a process and the customers of that process identified; the customers are responsible for the next stage of the process

Process based work flow, the processes are divided into stages

At every stage there are customers that must be identified and satisfied

5.

Each stage must adopt the Deming-Shewart cycle PDCA as the basis of quality improvement
Continuous improvement of every stage through the PDCA cycle Acceptance of responsibility of the process and authority to develop and implement changes

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Demings seven-point action plan

6.

Team working must be created and encouraged to improve inputs and outputs; everyone must be enabled to contribute to this process

Participation in team work can be seen in several levels:

1. 2. 3.

A team culture within each process Changes in one area may have implications in another: Team culture must be engendered between process owners Sharing and developing improvements across processes

7.

An organization for quality must be constructed with the support of knowledgeable statisticians

Build an organization which reflects and nurtures the achievement of quality Deming suggests the use of statisticians

Multidiscipline team shows the collaborate nature of achieving quality

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Successes and failures

Overall Deming can be said to have been successful Substantial success in Japanese industry After Japanese success he was able to turn his attention to America
Here

he met strong workforce resistance: Deming had to revise his methods

Emphasis from quantitative to qualitative approach Coded the Seven Deadly Sins
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Successes and failures

Flood (1993) acknowledges the principal strengths of Deming:

1. 2. 3. 4. 5.

The systemic logic, particularly the idea of internal customer-supplier relationships Management before technology Emphasis on management leadership The sound statistical approach Awareness of different socio-cultural approach
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Successes and failures

Comments on Floods principal strengths: 1. The systemic and logical approach is seen through the PDCA cycle

Both personal and organizational improvement

2.

Prioritization of management before technology represents a reversal of attitudes of many managers

Many look for external rather than internal factors as responsible for failures (94% belongs to managers)

3.

Recognition of the importance of good leadership and motivation can be seen to reflect human relations theory
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Successes and failures

Comments on Floods principal strengths: 4. A strong quantitative base is fundamental to achievement of quality

Do better How much?/When We must know when success is achieved Target orientation is motivational

5.

Recognition of different cultural contexts is a vital strength

Essential in achieving success

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Successes and failures

Flood (1993) weaknesses:

1. 2. 3.

Lack of well-defined methodology The work is not adequately grounded in human relations theory The approach will not help in an organization with a biased power structure

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Successes and failures

Comments on Floods weaknesses:

1.

Deming suggests what to do without indicating how

May be empowering Encourages experimentation and debate within each context

3.

Deming is criticized for saying nothing about intervention in political and coercive situations

The second principle and the first three point in the action plan call on management to accept their responsibility for quality and productivity and to embrace the new philosophy Demings approach rests on the attitude of the management

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The Deming Prize

The Deming Prize was created in 1951 by the Japanese Union of Scientist and Engineers. For commemorating Dr. Deming and recognizing those with outstanding quality management. Winners of the Deming Prize for individuals have been Japanese as of 1999 Majority of Deming Application Prize winners also Japanese firms until the last decade. U.S. winners: AT&T Power Systems Lucent Technology Power Systems

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Books written by Edward Deming

Sample Design in Business Research

Some Theory of Sampling Statistical Adjustment of Data On Errors in Surveys Quality Productivity and Competitive Position

The New Economics: : For Industry, Government, Education

Out of the Crisis
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