Module 2

Philosophical frame work to TQM

Contribution of various gurus of TQM

Prominent contributors include H.E. Dodge, H. G. Romig Edwards Deming Joseph M. Juran, Kaoru Ishikawa Philip Crosby

The Big Man W. Edwards Deming

Ph.D. in Physics Western Electric in 1920s, 30s. WWII taught Quality Control for war effort Ignored after the war Japan wanted to learn from the US
Deming went to help with census Started teaching them quality control 1951 Deming Prize for high level of achievement in quality practices

1980 NBC If Japan CanWhy Cant We? US discovers

Interesting Facts
1900 - Born in Sioux City, Iowa 1925 - met Dr. Walter Shewhart, 1927 - received a Ph.D in Physics from Yale 1939 Head Mathematician National Bureau of Census During WW II worked with Shewhart on improvement of quality of production or weapons using statistical methods

 1946 - Statistics professor NY University 1947 invited by General MacArthur to come to Japan as part of his economic and scientific staff in rebuilding Japan 1950 invited to return to Japan by Japanese Union of Scientists and Mathematicians to teach methods for achievement of quality Jan. 1951 - began a series of lectures to every single top manager in Japan 1974 meeting with William Conway June 24, 1980 NBCs show If Japan Can Why Cant We? aired to 14 million people later became NBCs most requested video of all time

Basic message:
The cause of inefficiency and poor quality is the system, not the employees and it is managements responsibility to correct the system in order to achieve desired results.

Message to Japanese Management

1. Production must be seen as a system encompassing customers and suppliers in a win-win situation.
Customer is the most important part of the system Suppliers are partners

2. Quality is made in the boardroom never blame the workers. 3. Improving a process creates a chain reaction. 4. Continuous learning and improvement follow the PCDA (Shewhart) cycle. 5. There is a need for trust and cooperation between companies. Anything new learned in one company must be shared with all including competitors.

Reducing variability in production will improve quality. Two types of variation:

Common causes Special causes

Statistical control a process needs to be in a stable state with identifiable action limits

Key Deming Tools

Deming did not teach statistical tools he taught how to interpret them and their implications to the system.

Deming Chain Reaction PDCA Cycle Theory of Profound Knowledge & 14 Point Philosophy

The control chart is no substitute for the brain. Dr. Deming

Deming Chain Reaction

Quality improvement is not a costly business option but a strategic imperative that is essential to business survival

Quality

Cost

Productivity

Improve Quality

Chain Reaction

Costs decrease because of less rework, fewer mistakes, delays, better use of time & materials Productivity Improves

Capture market with better quality and price Stay in business

Provide jobs and more jobs

Conveys the sequential and continual nature

Plan
Do Check Act
Act

Plan
Do

Check

Demings 14 Points
1. Create a vision and demonstrate commitment 2. Learn the New Philosophy 3. Understand Inspection 4. Dont Buy on the Cost per Part Basis 5. Improve Constantly and Forever 6. Institute Training 7. Institute Leadership

8. Drive Out Fear 9. Optimize the Efforts of Teams 10. Eliminate Exhortations 11. Eliminate Numeric Quotas 12. Remove Barriers to Pride in Workmanship 13. Education & Self-Improvement 14. Take Action

Deadly sins
1. 2. 3. 4. 5. 6. 7. Lack of constancy of purpose. Emphasis on short-term profits. Evaluation of performance, merit rating, or annual review. Mobility of management. Running a company on visible figures alone. Excessive medical costs for employee health care. Excessive costs of warrantees.

Joseph Juran
Joined Western Electric in 1920s. 1951 Quality contol handbook Taught quality principles to Japanese in 1950s
Quality directed by senior management Train whole mgt hierarchy in quality Strive for evolutionary changes in Quality Report progress to executive levels Involve the workforce in quality Quality part of reward/recognition structure

Views of Quality Fitness for Use

Quality is related to:
Product performance that results in customer satisfaction Freedom from product deficiencies, which avoids customer dissatisfaction

The mission of the firm is to:

Achieve high design quality

The mission of each department is to:

Achieve high conformance quality

Quality Trilogy
Quality Planning
Preparing to meet quality goals

Quality control
Meeting quality goals during operations

Quality improvement
Breaking through to unprecedented levels of performance

Jurans Detailed Program

Prove the need for improvement Identify projects for improvement Organize support for the projects Diagnose the causes Provide remedies for the causes Prove remedies are effective under operating conditions Provide control to maintain improvements

Joseph M. Juran
Jurans Approach
Juran tends to take a more strategic and planningbased approach to improvement than does Deming. Juran promotes the view that organizational quality problems are largely the result of insufficient and ineffective planning for quality.

Key Contributions
Juran Trilogy Control versus Breakthrough Project-by-Project Improvement Pareto Analysis

Joseph M. Juran
The Juran Trilogy:
Three basic processes that are essential for managing to improve quality.

Planning

Improvement

Control

Joseph M. Juran
Control versus Breakthrough
According to Juran, control is a process-related activity that ensures processes are stable and provides a relatively consistent outcome.
Control involves gathering data about a process to ensure that the process is consistent.

Breakthrough improvement implies that the process has been studied and some major improvement has resulted in large, nonrandom improvement to the process. It is important to understand that control and breakthrough-related activities should occur simultaneously.

Joseph M. Juran
Project-by-Project Improvement
Juran teaches that improvement in organizations is accomplished on a project-by-project basis and in no other way. The project-to-project approach advocated by Juran is a planning-based approach to quality improvement. Managers must prioritize which project will be undertaken first based on financial return. This means that analysts must use the language of management, that is, money, in order to help determine which projects should be undertaken.

Joseph M. Juran
Pareto Analysis
Joseph Juran identified an economic concept that he applied to quality problems. The economic concept is called Paretos law or the 80/20 rule. Using Paretos law, we see that the majority of quality problems are caused by relatively few causes.

Kaoru Ishikawa
Ishikawas Primary Contributions
Perhaps Ishikawas greatest achievement was the development and dissemination of the basic seven tools of quality (B7). As the developer of these tools, Ishikawa is credited with democratizing statistics. Ishikawa felt that to be successful, firms must make everyone responsible for statistical analysis and interpretation.

Kaoru Ishikawa
Ishikawas Quality Philosophy
Ishikawa spent his life working to improve quality in Japan. His ideas were synthesized into 11 points that made up his quality philosophy. Ishikawa is often overlooked in the U.S.; however, every firm that pursues quality improvement will use his tools.

Genichi Taguchi
The Taguchi method was first introduced by Dr. Genichi Taguchi to AT&T Bell Labs in 1980. Due to its increased acceptance and utilization, the Taguchi method for improving quality is now commonly viewed to be comparable in importance to the Deming approach, and the Ishikawa concept of total quality management. Unique Aspects of the Taguchi Method
Definition of quality Quality loss function Robust design

Genichi Taguchi
The Taguchi Method Provides 1.

A basis for determining the functional relationship between controllable product or service design factors and the outcomes of a process.

2.

A method for adjusting the mean of a process by optimizing controllable variables.

3.

A procedure for examining the relationship between random noise in the process and product or service variability.

Genichi Taguchi
Definition of Quality
In Taguchis terms, ideal quality refers to a reference point for determining the quality level of a product or service.

Quality Loss Function

Normally, when specifications are set, a target is specified with some allowance for variation. Taguchi states that any deviation from target specs results in loss to society produced.

Robust Design
Products and services should be designed so that they are inherently defect free and of high quality.

 Quality is free
What costs money are the unquality things
All the actions that involve not doing job right the first time

What does quality is free mean?

A quality program can save a company more money than it costs to implement Profitability is best accomplished by reducing the cost of poor quality and preventing defects Cost savings include prevention, appraisal, and failure costs.

Thank you