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History of Quality

The origins of quality movement

Dr Joseph Juran

quality_management_history.pdf
..\1947.docx

The Quality Problem

TheThe Evolution of Qualityon of


Quality

Modern Importance of Quality


The first job we have is to turn out quality
merchandise that consumers will buy and keep on
buying. If we produce it efficiently and
economically, we will earn a profit, in which you will
share.
- William Cooper Procter

History of Quality Assurance


Skilled craftsmanship during Middle Ages
Interchangeable parts (H. Le Blanc, T. Jefferson
& E. Whitney)
Early 20th Century: scientific management
(Taylor), Henry Ford, Bell System (Western
Electric) (Hawthorne Effect, statistical methods
(Walter Shewhart, Deming,Harold Dodge, etc.))

Quality control during World War II:


MIL-STD.

History of Quality Assurance


Post-war Japan: evolution of quality
management
Kaizen: Continuous improvement
Deming Prize

History of Quality Assurance


Quality awareness in U.S. manufacturing
industry during 1980s: from Little Q to Big Q Total Quality Management
Malcolm Baldrige National Quality Award (1987)

History of Quality Assurance

European Foundation for Quality Management:


European Quality Award
ISO 9000 standard
Turkish Quality:
Turkish Center for Quality (KalDer)
(www.kalder.org)

History of Quality Assurance


Emergence of quality management in service
industries, government, health care, and
education
Evolution of Six Sigma
Current and future challenges:
A race without a finish line. David Kearns,
Xerox.

Contemporary Influences on Quality

Partnering
Learning systems
Adaptability and speed of change
Environmental sustainability
Globalization
Knowledge focus
Customization and differentiation
Shifting demographics

Definitions of Quality
Transcendent definition: excellence
Product-based definition: product
attributes/capabilities
User-based definition: fitness for intended use
Value-based definition: quality vs. price
Manufacturing-based definition: conformance to
specifications

Evolution
Earliest (On the eighth day of May [1382]) documented
evidence of quality concern
A merchant named John Welburgham of Canterbury was fined
six pence for selling two cooked fishes that were rotten and
stinking and unwholesome. The fined was imposed by the
Mayor of the town against the complaint by six citizens of the
town.
Biggest reason for concern for quality: scarcity of resources.
Food production/productivity was less and starvation was a real
possibility. Consumer goods, being handcrafted, were
extremely expensive.
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Evolution
Cost of thirteen quires of paper(was) six shillings and
eight pence, as against a penny for ten eggs.
Hence one bad quire of paper meant considerable loss.
Imagine the plight of the merchant if the whole consignment
was found lacking in quality!
Even today quality is equally important.
Loss of quality is invariably borne by the consumer, as the real
costs of a quality failure are often out of proportion to the
value of defective item.
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History of Quality: Early times


384-322 BCE-Aristotle and the birth
of peer review
854-931 Ethics of the Physician
by Ishap bin Ali Al Rahwi-first
documented description of peer
review in Medicine

Royal Society of London


Philosophical Transactions- Originally edited
by Henry Oldenburg

First peer
reviewed
journal
1665

Typewriter: the tool that fueled peer


review process
1890s

Quality control criteria of the past


Albert Einstein, 1905
His famous work,
Annus Mirabilis, was
not peer reviewed!

History of quality continued


19th century birth of
quality control discipline
1950 - W. Edwards
Deming and statistical
quality control
1970s- Total Quality
Management (TQM)

What is Quality
Doing the right thing right, right away
W. Edwards Deming, 1982
a measure of goodness that relates to the
intended use of a product and the
expectations customers have concerning
this product
Barkman, 1989

History of Quality

India

B.C. era structures in


and Egypt show evidence of
measurement and inspection. e.g. precisely cut stones for
pyramids, forts.
Quality of those structures was due to consistent use of welldeveloped methods and procedures and precise measurement
devices. Evidence of quality assurance.
Before Industrial Revolution, skilled craftsmen served both as
manufacturers and inspectors, building quality into their
products through their considerable pride in their
workmanship.
During this time, quality assurance was informal. Efforts were
directed to building quality into the final product.

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History of Quality
Industrial Revolution changed this basic concept to
interchangeable parts. Likes of Thomas Jefferson and F. W.
Taylor (scientific management fame) emphasized on
production efficiency and decomposed jobs into smaller work
tasks. Holistic nature of manufacturing rejected!
First recorded deviation from this production system was tried
by French gunsmith Honore Le Blanc (Eighteenth century)
he developed interchangeable parts for manufacturing muskets
to a standard pattern.
Thomas Jefferson brought this technology to US.

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History of Quality
Early twentieth century saw F.W. Taylors scientific
management philosophy applied to production processes.
Under this, the work was split into small `jobs and workforce
was trained to be master of those jobs.
Manufacturers were able to ship good parts, but at a very high
cost.
Defects were present, but were removed via inspection.
Birth of separate quality control department.
Assigning the responsibility for quality to inspection
department, the upper management focused instead on
quantity and efficiency.

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History of Quality
Statistical approaches to quality control started at Western
Electric with the separation of inspection division. Pioneers
like Walter Shewhart, George Edwards, W. Edwards Deming
and Joseph M. Juran were all employees of Western Electric.
During the Second World War, US military started using
statistical sampling and imposed stringent standards on
suppliers.
Tie-up between US War Production Board and Bell Labs.
Importance for statistical quality control rose and gradually
adopted throughout the manufacturing industry.

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History of Quality
Post-war period saw a massive shortage of consumer goods in
US and the emphasis shifted from quality to quantity. Quality
remained the area for the specialist, and managers started
thinking about productivity, efficiency.
After World War II, under General MacArthur's Japan
rebuilding plan, Deming and Juran went to Japan.
Deming and Juran introduced statistical quality control theory
to Japanese industry.
The difference between approaches to quality in USA and
Japan: Deming and Juran were able to convince the top
managers the importance of quality.
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History of Quality
World realizes the importance of quality - ISO standards
Created by International Organization for Standardization
(IOS) which was created in 1946 to standardize quality
requirement within the European market.
IOS initially composed of representatives from 91 countries:
probably most wide base for quality standards.
Adopted a series of written quality standards in 1987 (first
revised in 1994, and more recently (and significantly) in
2000).

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History of Quality

Slow moving giant: It took almost 20 years for Japanese


industry to overtake western manufacturer.

.summing up

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History of Quality
Top managers in USA focused on marketing, production
quantity and financial performance, Japanese managers
improved quality to an unprecedented level.
Market started preferring Japanese products and American
companies suffered immensely.

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History of Quality
The western world woke up to the quality revolution 1986
Challenger exploded killing all seven astronauts made
everyone aware of the importance of quality.
Ford Motor Company consulted Dr. Deming to help transform
its operations.
(By then, 80-year-old Deming was virtually unknown in USA.
Whereas Japanese government had instituted The Deming
Prize for Quality in 1950.)
The Xerox story - Leadership Through Quality.
1980 NBC telecast of a special program If Japan canwhy
cant we?
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History of Quality
Malcolm Baldrige award institutionalized in 1987 by US
government.
Managers started to realize that quality of management is
more important than management of quality. Birth of the
term Total Quality Management (TQM).
Florida Power and Light the first non-Japanese company to be
awarded Deming prize in 1989.
Early 1990s: Quality management principles started finding
their way in service industry. FedEx, The Ritz-Carton Hotel
Company were the quality leaders.
TQM recognized worldwide: Countries like Korea, India,
Spain and Brazil are mounting efforts to increase quality
awareness.
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During the first international quality

management conference in 1969, Feigenbaum


would first use the phrase Total Quality
Management. Feigenbaum, however, would not
meet the depth of understanding of the term
that Japanese attendee and speaker, Ishikawa
would. Ishikawa would indicate during the
conference that TQM should apply to all
employees within the organization from the
workers to the head management.

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The Western culture would soon catch up, however.


By the 1980s, the Western culture would take
notice of Japans success and start to set and adhere
to higher Total Quality Management guidelines. At

this time, however, it was unclear as to what exactly


TQM involved.
Today, companies all over the globe compete for
the hundreds of Excellence Awards now given. The
purpose of quality management, however, still
remains the same as it has, all through history to
ensure that customers receive an excellent, quality
product.

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Both aspects science and care about

peopleware have caused the worldwide image


of Carl Zeiss as a company that delivers optical
systems of highest quality

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HISTORY OF TOTAL QUALITY


MANAGEMENT

TQM involves methodology for continually

improving the quality of all processes, it draws


on a knowledge of the principles & practices
of:
The behavioural sciences
The analysis of quantitative & nonquantitative data
Economics theories
Process analysis

TQM TIMELINE
1920s: Some of the first seeds of quality management were planted
as the principles of scientific management swept through U.S.
industry.

1930s:Walter Shewhart developed the methods for statistical


analysis and control of quality.

1950s:
W. Edwards Deming taught methods for statistical analysis and
control of quality to Japanese engineers & executives
Joseph M. Juran taught the concepts of controlling quality and
managerial breakthrough
Armand V. Feigenbaums book Total Quality Control was published
Philip B. Crosbys promotion of zero defects paved the way for
quality improvement in many companies

1968: Kaoru Ishikawas synthesis of the philosophy contributed to


Japans ascendancy as a quality leader

Today:
TQM is the name for the philosophy of a broad and systemic
approach to managing organizational quality.
Quality standards such as the ISO 9000 Series
and quality award programs such as the Deming Prize and
the Malcolm Baldridge National Quality Awards specify principles
and processes that comprise TQM.
WALTER

SHEWHART
KAORU
ISHIKAWA

JOSEPH
JURAN

ARMAND F.

W.E. DEMING
PHILIP CROSBY

MALCOLM BALDRIGE NATIONAL


QUALITY AWARD
The Malcolm Baldrige National Quality

Award recognizes U.S. organizations in the


business, health care, education, and nonprofit
sectors for performance excellence. The Baldrige
Award is the only formal recognition of the
performance excellence of both public and private
U.S. organizations given by the President of the
United States.
The award promotes awareness of performance
excellence as an increasingly important element in
competitiveness. It also promotes the sharing of
successful performance strategies and the
benefits derived from using these strategies.

DEMINGS 14 POINTS ON TQM

STEPS IN IMPLEMENTING TQM


OBTAIN CEO COMMITMENT
EDUCATE UPPER-LEVEL MGT
CREATE STEERING COMMITTEE
OUTLINE THE VISION STATEMENT, MISSION
STATEMENT & GUIDING PRINCIPLES

PREPARE A FLOW DIAGRAM OF COMPANY


PROCESSES
FOCUS ON THE OWNER/CUSTOMER &
SURVEYS

CONSIDER THE EMPLOYEE AS AN


INTERNAL OWNER/CUSTOMER

PROVIDE A QUALITY TRAINING PROGRAM


ESTABLISH QUALITY IMPROVEMENT
TEAMS

IMPLEMENT PROCESS IMPROVEMENTS

USE THE TOOLS OF TQM

KNOW THE BENEFITS OF TQM

BENEFITS OF TQM
IMPROVE QUALITY
EMPLOYEE PARTICIPATION &

SATISFACTION
TEAMWORK & WORKING RELATIONSHIPS
PROFITABILITY & MARKET SHARE
PRODUCTIVITY
COMMUNICATION

OBSTACLES TO TQM
LACK OF MANAGEMENT COMMITMENT
LACK OF EMPLOYEE MOTIVATION
INABILITY TO CHANGE ORGANISATION

CULTURE
IMPROPER PLANNING
LACK OF CONTINUOUS TRAINING &
EDUCATION
INADEQUATE USE OF EMPOWERMENT &
TEAMWORK

TQM TODAY
Characterized differently by each company
that practices it
The primary philosophy

Continuous improvement to exceed the


customer expectations
Identify and correct issues at the earliest

stage
Incorporate quality into the final product

GROWTH OF TQM
Japanese industries followed the path &
guidance of Joseph Juran & Edward Deming

for TQM, and by mid-1970s became a world


leader in most industries & consumer product
segments, for eg., Sony in Consumer
Electronics, Toyota & Honda in 4-wheeler
automobile industry, Honda & Yamaha in 2
wheeler industry etc.
Gradually TQM spread to most of the worlds
industries in Korea, Europe and USA and it was
accepted as universal mantra for world class
performance and excelling in individual fields
of operations

Current and future challenges


Current challenge: To ensure that managers dont lose sight of
the basic principles on which quality management and
performance excellence are based.
Former Xerox president David Kearns quality is a race
without a finish line.
A key challenge is to allocate the necessary resources to
maintain a focus on quality, particularly in times of economic
downturns.
Increasing awareness of quality will only increase the level of
competition in the future.

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Future challenges
1.

2.
3.
4.
5.

6.
7.
8.

Partnerships
Learning systems
Adaptability and speed of change
Environmental sustainability
Globalization
Knowledge focus
Customization and differentiation
Shifting demographics.

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The effect of HRM practices on the implementation of TQM show that

the greatest influence on the implementation of TQM was the practice


of training and education, followed by such practices as incentive
compensation, employeedevelopment, and recruiting and selection. In

the implementation of many TQM programs such as the adoption of


new quality concepts, the set-up and practiceof customer satisfaction
systems, the use of Statistical Quality Control (SQC), a change in
culture, and Quality Control Circle (QCC) employee training and
education was fundamental. TQM emphasizes employee involvement
and
teamwork, and this was encouraged by a good incentive system. The
effect of implementation of HRM on quality performance depicted that
performing HRM practices can have significant effects on employee
satisfaction and customer satisfaction.

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HRM also positively affects employees quality awareness and company


image which were also key factors in performing TQM and attracting
customers. The author concluded the study as the practices of training
and
education, incentive compensation, and employee development
produced the
greatest influences on TQM. The HRM implementation significantly
affected the
TQM practices of culture change and development, customer
satisfaction
management, and statistical quality control to a greater extent than the
other
TQM practices. The study also analyzed the effects of HRM and TQM on
quality
performance. Both HRM and TQM significantly affected these quality
performances, especially with regard to customer satisfaction and
employee
satisfaction.
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EVOLUTION OF EMPLOYEE EMPOWERMENT


AND INVOLVEMENT

..\quality circle.pdf
PPSWP_QMSbeyondprod.pdf

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Quality Cerifications

ISO 9000
ISO 9001
ISO 9002
ISO 14000
ISO 14001
TS 16949

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Innovation - 2013 - YouTube.mp4
..\..\Evolution of Quality Innovation - 2013
- YouTube.mp4
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since 1987.mp4
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