1. Compare and contrast Lean thinking and Quality Management Theory Can they be complemented to achieve business success ?
Group: QRMS1202_Team5 :
Jainwit Tongbai ID:
Zeyd Bohurler ID:
Mathews John ID:
Thomas Oliphant ID:
Apoorva Ravikrishnan ID:
Vasileios Zisis ID:

2. CONTENTS : Evolution of Quality Management Theory Deming Philosophy
Deming Cycle by Dr. Shewhart
Ishikawa Quality Theory
Total Quality Management
Six Sigma
Lean Thinking
Compare and Contrast : Fit for business success

3. Quality Management Theory
Evolution of
Quality Management Theory
Early 1950’s Americans who took the messages of quality to Japan
Late 1950’s Japanese who developed new concepts in response to the Americans
1970’s-1980’s Western gurus who followed the Japanese industrial success

4. Quality Management Theory
Deming Philosophy :
Quality Management Theory
Management is to be responsible for 94% of quality problems.
Place the importance and responsibility both individual level and company level.
14 points of philosophy
Small , large organisation ; public , private or service sectors.

5. Quality Management Theory
Deming’s Quotes
Quality Management Theory
“It is not enough to do your best, you must know what to do, and then do your best.”
W. Edwards Deming
“If you do not know how to ask the right question, you discover nothing.”
W. Edwards Deming
“ Hold everybody accountable ?
Ridiculous ! ”
W. Edwards Deming
“Quality is everyone's responsibility. ”
W. Edwards Deming
“ Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them.”
W. Edwards Deming
“ You should not ask questions without knowledge. ”
W. Edwards Deming
“Lack of knowledge... that is the problem. ”
W. Edwards Deming

6. Deming 14 Points Edwards Deming Philosophy
1 Create constancy of purpose towards improvement of product and service
2 Adopt the new philosophy. We can no longer live with commonly accepted levels of delay,
mistakes and defective workmanship
3 Cease dependence on mass inspection. Instead, require statistical evidence that quality is built in
4 End the practice of awarding business on the basis of price
5 Find problems. It is management’s job to work continually on the system
6 Institute modern methods of training on the job
7 Institute modern methods of supervision of production workers,
The responsibility of foremen must be changed from numbers to quality
8 Drive out fear, so that everyone may work effectively for the company
9 Break down barriers between departments
10 Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing methods
11 Eliminate work standards that prescribe numerical quotas
12 Remove barriers that stand between the hourly worker and their right to pride of workmanship
13 Institute a vigorous programme of education and retraining
14 Create a structure in top management that will push on the above points every day

7. Deming 14 Points 2. The new Philosophy : 1. Constancy of purpose:
4. End lowest tender contracts :
3. Cease mass production inspection:

8. Deming 14 Points 5. Improve every process
6. Institute training on the job :
7. Institute leadership of people
8. Drive out fear

9. Deming 14 Points 9. Breakdown barriers
10. Eliminate slogans / Do it right first time
11. Eliminate arbitrary numerical targets:
12. Permit pride of workmanships

10. Deming 14 Points 13. Encourage education
14. Top management commitment and actions :
Institute a vigorous programme of education
and self-improvement.
Put everybody in organisation to work to accomplish the change.

11. Deming Cycle by Dr. Shewhart
Systematic Approach :
Deming Cycle by Dr. Shewhart
Father of Gurus
Quality Process is
Under Control
Continious Improvement
Control Charts

12. Quality Management Theory
Dr. Ishikawa – 7 QC Tools :
Quality Management Theory
Late 1950’s Japanese developed new concepts in response to the Americans
Management of
Quality
7 Quality Tools
Customer
Orientation
Managing the Quality
Customer Orientation
Japanese Way of Quality
7 Quality Tools

13. Dr. Ishikawa – 7 QC Tools
Late 1950’s Japanese developed new concepts in response to the Americans
7 Tools :
• Pareto analysis  Which are the big problems?
• Cause and effect diagrams  What causes the problems?
• Stratification  How is the data made up?
• Check sheets  How often it occurs or is done?
• Histograms  What do overall variations look like?
• Scatter charts  What are the relationships between factors?
• Process control charts  Which variations to control and how?

14. Dr. Ishikawa – 7 QC Tools
Late 1950’s Japanese developed new concepts in response to the Americans
7 Tools :
• Pareto analysis  Which are the big problems?
• Cause and effect diagrams  What causes the problems?
• Stratification  How is the data made up?
• Check sheets  How often it occurs or is done?
• Histograms  What do overall variations look like?
• Scatter charts  What are the relationships between factors?
• Process control charts  Which variations to control and how?

15. Total Quality Management : Concepts
At its core, total quality management (TQM) is a management approach to long– term success through customer satisfaction.
In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work.

16. Total Quality Management
The primary elements can be classified as:
Customer-focused.
Total employee involvement.
Process-centered.
Integrated system.
Strategic and systematic approach.
Continual improvement.
Fact-based decision making.
Communications.
Total quality management can be summarized as a management system
for a customer focused organization that involves all employees in continual
improvement.
It uses strategy, data, and effective communications to integrate the quality discipline into the culture and activities of the organization.

17. Total Quality Management
Total Quality Management has few short-term advantages. Most of its benefits are
long-term and come into effect only after it is running smoothly.
Advantages of Total Quality Management:
Improves reputation- faults and problems are spotted and sorted quicker (zero defects)
Higher employee morale– workers motivated by extra responsibility, team work and involvement in decisions of TQM
Lower costs – Decrease waste as fewer defective products and no need for separate
Quality Control inspectors
Disadvantages of Total Quality Management:
Initial introduction costs- training workers and disrupting current production whilst being implemented
Benefits may not be seen for several years
Workers may be resistant to change – may feel less secure in jobs
By focusing too much on the customers, the production based method might have a cheaper and more faster way of doing business and this method is rejected.
Also the costs of inspection of processes as well as Research and development projects might be too costly.

18. Motorola developed six sigma in 1987
Similar to other quality management techniques but represents an organizational approach to improvement
Ford, Honeywell- famous organizations to have implemented six sigma

19. Definition
“Business process that allows companies to drastically improve their bottom line by designing and monitoring everyday activities in ways that minimize wastes and resources while increasing customer satisfaction”
-Harry and Schroeder

20. Advantages of Six Sigma
Achieve maximum customer satisfaction and minimize the defects
Profitability increases and Costs reduce
Can be implemented in any business
Targets Variation in the processes and focuses on the process improvement rather than final outcome
Focuses on prevention on defects rather than fixing it

21. Disadvantages of Six Sigma
Emphasis on the rigidity of the process which contradicts innovation and creativity
Require skilled man force
A lot of real time barriers need to be resolved
Immediate results are not seen

22. Lean Thinking Concept

23. Lean Principles
Lean Principles
There are five Principles that help us seek lean:
Specify Value
Identify the value stream
Make the value flow
Let the customer pull
Pursue perfection

24. Lean Enablers
There are four lean enablers:
Value Stream Mapping
Visual Management
Standardisation
5 S (sort, segregate, shine, standardise, sustain)

25. Lean Techniques
We can use six lean techniques (especially during NPI)
Project Management
Integrated Product Team
Knowledge Management
Risk Assessment
Requirements Capture
Core Competence

26. Six Sigma Business Advantages
It focuses on the customer
It gives clear objectives and goals to aim for
3.14 dpmo
It’s a systematic approach
Its Measurable and quantifiable
It uses well-proven statistical tools
It gives a change in culture
Inspired by Deming’s Plan, Do, Check, Act cycle
Through reducing variation it improves quality

27. TQM Business Advantages
It focuses on the customer
Improves and unifies processes
It gives employees moral through involvement in decisions
By reducing “waste” is reduces costs
Improves reputation through improved quality
Uses analytical and statistical tools

28. Lean Manufacturing Business Advantages
It focuses on the customer
Gives clear objectives and goals
By reducing “waste” you also reduce costs and increase quality
Reduces lead time
Improves flow in processes
Can be applied to all aspects of the business
Increases employee knowledge, become experts in their field
Improves cross-functional communication
Builds customer and supplier relations
Reduces effect of hierarchy

29. How can these tools be complemented to achieve business success?
All came about from the Japanese quality evolution
All inspired from Deming's work
All work towards reducing “waste” to maximise process utilization
These tools naturally complement themselves
Lean thinking moves towards JIT and zero “waste”
TQM focuses on the customer
Six Sigma focuses on reduction in variation
To successfully implement a mixture of these depends entirely on the business application
The mixture of techniques depends on what aspect the business would best benefit from focusing on

30. References
ECTI (Electrical Engineering/Electronics, Computer, Telecommunications and Information Technology Association), th Annual International Conference of Electrical Engineering/Electronics, Computer, Telecommunications and Information Technology Association. Bangkok, Thailand May Bangkok: Thailand
Rahmere, R. , Top 50 EMS providers cross $150 billion mark , Electronics Manufacturing Asia, [online] Available at:< billionmark-Asia.html> [Accessed 29 July 2012]
SVI Plc., The milestones, annual report , Bangkok, Thailand: SVI Plc.
Whiteman, A. L., Project Management Challenges In The Global Economy, Project Management Solution, [online] Available at:< Project-Management-Challenges-In-The-download-w9119.pdf> [Accessed 28 July 2012]

31. THANK YOU