1. Chapter 2 Quality Theory S. Thomas Foster, Jr. Boise State University
PowerPoint
prepared by
Dave Magee
University of Kentucky
Lexington Community College
©2004 Prentice-Hall

2. Chapter Overview What is Theory?
Leading Contributors to Quality Theory
W. Edwards Deming, Joseph M. Juran, Kaoru Ishikawa, Armand Feigenbaum, Philip Crosby, Genichi Taguchi, The Rest of the Pack
Viewing Quality Theory From a Contingency Perspective
Resolving the Differences in Quality Approaches: An Integrative View
Theoretical Framework for Quality Management

3. What is Theory? Slide 1 of 6 Theory Defined Illustration of a Theory
Theory is a “coherent group of general propositions used as principles of explanation for a class of phenomena.”
Illustration of a Theory
For example, it might have been observed that many companies that have implemented quality improvements have experienced improved worker morale.

4. Testable Theoretical Model
What is Theory? Slide 2 of 6
Testable Theoretical Model
Figure 2.1
Independent Variable
Dependent Variable
Quality
Improvements
Worker
Morale
Causality

5. What is Theory? Slide 3 of 6 Four Elements of a Theory What How Why
The what of a theory involves which variables or factors are included in the model.
How
The how of a theoretical model involves the nature, direction, and extent of the relationship between the variables.
Why
The why or the theory is the theoretical glue that holds the model together.
Who-Where-When
The who-where-when aspect place contextual bounds on the theory.

6. Four Elements of a Complete Theory
What is Theory? Slide 4 of 6
Four Elements of a Complete Theory
What
Why
Where
Who-where-
when

7. What is Theory? Slide 5 of 6 Two Ways to Establish a Theory Induction
Deduction
The process of induction is useful bus is also subject to observer bias and misperception.
Using deduction, researchers propose a model based on prior research and design an experiment to test the theoretical model.

8. Inductive Versus Deductive Reasoning
What is Theory? Slide 6 of 6
Figure 2.2
Inductive Versus Deductive Reasoning
Induction
Data
Generalization
Deduction
Supported by Data
Generalization

9. A Theory of Quality Management? Slide 1 of 2
No Unified Theory
As yet, there is not a unified theory explaining quality improvement that is widely accepted by the quality community
Differing Approaches
The differing approaches to quality improvement represent competing philosophies that have sought their places in the marketplace of ideas.

10. A Theory of Quality Management? Slide 2 of 2
Managers Must Apply What Fits
As a result of the availability of competing philosophies of quality management, practicing quality managers must become familiar with these philosophies and apply those that are applicable to their particular situation.
The Most Successful Companies
The most successful companies have put their own stamp on quality campaigns, mounting their own massive training efforts internally.

11. Leading Contributors to Quality Theory
W. Edwards Deming
Joseph M. Juran
Kaoru Ishikawa
Armand Feigenbaum
Philip Crosby
Genichi Taguchi
The Rest of the Pack
Robert C. Camp
Tom Peters
Michael Hammer and James Champy

12. W. Edwards Deming Slide 1 of 12
Preeminent Authority
W. Edwards Deming was widely accepted as the world’s preeminent authority on quality management prior to his death on December 24, 1993.
Deming gained credibility because of his influence on Japanese and American industry.
Contributions
Fourteen Points for Management
The Seven Deadly Diseases
Emphasized “continual neverending improvement.”

13. W. Edwards Deming Slide 2 of 12
Deming’s 14 Points for Management
While Deming espoused the belief that theory was important to the understanding of quality improvement, the closest he ever came to expounding a theory was in his 14 points for management.
Taken as a whole, the 14 points represent many of the key principles that provide the basis for quality management in many organizations.

14. W. Edwards Deming Slide 3 of 12
Deming’s 14 Points for Management
1. Create constancy of purpose.
2. Adopt a new philosophy.
3. Cease mass inspection.
4. End awarding business on the basis of price tag.
5. Constantly improve the system.
6. Institute training on the job.
7. Improve leadership.
8. Drive out fear.
9. Break down barriers between departments.
10. Eliminate slogans.
11. Eliminate work standards.
12. Remove barriers to pride.
13. Institute education and self-improvement.
14. Put everybody to work.

15. W. Edwards Deming Slide 4 of 12
Point 1
Point 2
Create constancy of purpose
toward improvement of
product and service with the
aim to become competitive
and stay in business, and to
provide jobs.
Adopt a new philosophy. We
are in a new economic age.
Western management must
awaken to the challenge, must
learn its responsibilities, and
take on leadership of change.

16. W. Edwards Deming Slide 5 of 12
Point 3
Point 4
Cease dependence on mass
inspection to improve quality.
Eliminate the need for
inspection on a mass basis by
building quality into the product
in the first place.
End the practice of awarding
business on the basis of price
tag alone. Instead, minimize
total cost. Move toward a single
supplier for any one item, based
on a long-term relationship of
loyalty and trust.

17. W. Edwards Deming Slide 6 of 12
Point 5
Point 6
Institute training on
the job. People must have the necessary training and knowledge to do their job.
Improve constantly and
forever the system of
production and service, to
improve quality and
productivity, and thus constantly
decrease cost.

18. W. Edwards Deming Slide 7 of 12
Point 7
Drive out fear, so everyone
may work effectively
for the company.
Point 8
Improve leadership. The aim
of supervision should be to
help people, machines, and
gadgets to do a better job.
Supervision of management
is in need of overhaul as well
as supervision of
production workers.

19. W. Edwards Deming Slide 8 of 12
Point 9
Point 10
Break down barriers between
departments. People in
research, design, sales, and
production must work as a team
to foresee problems of
production and use that may be
encountered with the product or
service.
Eliminate slogans, exhortations,
and targets for the workforce
asking for zero defects and new
levels of productivity. Such
exportations only create
adversarial relationships, as the
bulk of the causes of low
quality and low productivity
belong to the system and thus
lie beyond the power of
the workforce.

20. W. Edwards Deming Slide 9 of 12
Point 11
Point 12
Eliminate work standards
on the factory floor. Eliminate
management by objectives.
Eliminate management by
numbers and numeric goals.
Substitute leadership.
Remove barriers to rob
workers of their right to pride
in the quality of their work. The responsibility of supervisors must be changed from sheer numbers to quality.

21. W. Edwards Deming Slide 10 of 12
Point 13
Point 14
Put everybody in the company
to work to accomplish the
transformation. The
transformation is
everybody’s job.
Institute a vigorous program of education and self-improvement. This is a more generalized education than training on the job. Organizational learning requires a structure that reinforces and rewards learning.

22. W. Edwards Deming Slide 11 of 12
Deming’s 7 Deadly Diseases
1. Lack of constancy of purpose.
2. Emphasis on short-term profits.
3. Evaluation of performance, merit rating, or annual review.
4. Mobility of management.
5. Running a company on visible figures alone.
6. Excessive medical costs for employee health care.
7. Excessive costs of warrantees.

23. Joseph M. Juran Slide 1 of 5 Juran’s Approach Key Contributions
Juran tends to take a more strategic and planning-based 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

24. Joseph M. Juran Slide 2 of 5 The Juran Trilogy:
Three basic processes that are essential for
managing to improve quality.
Planning
Improvement
Control

25. Joseph M. Juran Slide 3 of 5 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.

26. Joseph M. Juran Slide 4 of 5 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.

27. Joseph M. Juran Slide 5 of 5 Pareto Analysis
Joseph Juran identified an economic concept that he applied to quality problems.
The economic concept is called Pareto’s law or the 80/20 rule.
Using Pareto’s law, we see that the majority of quality problems are caused by relatively few causes.

28. Kaoru Ishikawa Slide 1 of 2
Ishikawa’s Primary Contributions
Perhaps Ishikawa’s 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.

29. Kaoru Ishikawa Slide 2 of 2
Ishikawa’s 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.

30. Armand Feigenbaum Slide 1 of 3
Feigenbaum’s primary contribution to quality thinking in America was his assertion that the entire organization should be involved in improving quality.
He was the first in the U.S. to move quality from the offices of the specialists back to operating workers. This occurred in the 1950s.
Contributions
Three-step process to improving quality.
Four deadly sins that impede quality improvement.
Nineteen steps for improving quality.

31. Armand Feigenbaum Slide 2 of 3
Feigenbaum proposes a three-step process
to improving quality.
Quality
Improvement
Quality
Technology
Organizational
Commitment
Motivated by leadership
Includes statistics
and machinery that
can improve quality
Includes everyone
in the quality struggle

32. Armand Feigenbaum Slide 3 of 3
Four Deadly Sins (Major Impediments to Improving Quality)
Hothouse quality refers to those quality programs that receive a lot of hoopla and no follow-through.
Wishful thinking occurs with those who would pursue protectionism to keep American firms from having to compete on quality.
Producing overseas is a panacea sometimes undertaken by managers who wish that out of sight, out of mind could solve quality related problems.
Confining quality to the factory means that quality has historically just been viewed as a shop floor concern.

33. Philip Crosby
Crosby became very well known for his authorship of the book Quality is Free.
The primary thesis of this book was that quality, as a managed process, can be a source of profit for an organization.
Crosby specifies a quality improvement program consisting of fourteen steps.
These steps underlie the Crosby zero defects approach to quality improvement.
His approach emphasizes the behavioral and motivational aspects of quality improvement rather than statistical approaches.

34. Genichi Taguchi Slide 1 of 3
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

35. Genichi Taguchi Slide 2 of 3
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.

36. Genichi Taguchi Slide 3 of 3
Definition of Quality
In Taguchi’s 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.

37. The Rest of the Pack Slide 1 of 3
Robert C. Camp
The principle pioneer of benchmarking.
Benchmarking is the sharing of information between companies so that both can improve.

38. The Rest of the Pack Slide 2 of 3
Tom Peters
Tom Peters is a noted author, consultant, and speaker who is widely recognized.
Peters co-authored the book In Search Of Excellence.
The research for the book involved a case study of several firms and resulted in eight basic practices found in excellent firms.
The eight practices identified with excellent firms include a bias for action, getting close to the customer, promoting entrepreneurship, productivity through people, value-driven management, sticking to the core competencies, lean staff, and implementing appropriate amounts of supervision and empowerment.

39. Resolving the Differences in Quality Approaches, An Integrative View
There are many differences between the approaches to quality management espoused by the experts mentioned in this chapter.
However, rather than focusing on differences, it is instructional to review the literature to identify common themes and messages.

40. A Categorization of Quality Management Content Variables
Outer Ring
Environmental characteristics
Quality breakthrough
Figure 2.7
Inner Ring
Data gathering
Strategic planning
Core
Leadership
Employee improvement
Quality assurance
Customer role
Philosophy
Quality department focus Team Approach

41. Quality Management Content Variables Slide 1 of 5
Core Variables
Leadership
Employee Improvement
Quality Assurance
Customer Focus
Quality Philosophy
Breakthrough
Inner and Outer Ring Variables
Information Analysis
Strategic Planning
Environment or Infrastructure
Team Approach
Focus of the Quality Department

42. Quality Management Content Variables Slide 2 of 5
Leadership
The role of the leader in being the champion and major force behind quality improvement is critical.
Employee Improvement
Once the leader is enlightened and motivated to go forward in the quality effort, employees must be trained and developed.
Quality Assurance
Quality experts agree that quality can be assured only during the design phase. Therefore, effort must be invested in designing products, services, and processes so that they are consistently of high quality.

43. Quality Management Content Variables Slide 3 of 5
Customer Focus
An understanding of the customer is key to quality management efforts.
Quality Philosophy
Adoption of a philosophy toward quality improvement is also important. Establishing a clear message provides a company with a map to follow during their quest for improvement.

44. Quality Management Content Variables Slide 4 of 5
Information Analysis
Fact-based improvement refers to an approach that favors information gathering and analysis
Strategic Planning
This provides a framework for a rational quality strategy that will provide alignment with key business factors.
Environment or Infrastructure
Quality environment or infrastructure must be created that supports quality management efforts.
Team Approach
One of the contemporary approaches to quality management learned from the Japanese is teamwork.

45. Quality Management Content Variables Slide 5 of 5
Role of the Quality Department
As a result of the dispersion of responsibility for quality, the role of the quality department has changed significantly.
Rather than performing the policing function, these departments are filling more of a coaching role.
Breakthrough
The need to make large improvements is not precluded by continuous improvement.
Firms must find ways to achieve radical improvements.

46. Theoretical Framework for Quality Management
Quality management begins with leadership.
The quality philosophy influences decision making concerning quality strategy, quality assurance, and employee improvement.
The customer is the focus of all activities of the firm.
Major activities forming the quality system
Breakthrough improvement
Team building
Data gathering
Strategic planning
Quality department coaching

47. Theoretical Framework for Quality Management
Figure 2.8
Customer Focus
Information Analysis
Team Building
Employee Improvement
Quality Assurance
Leadership
Breakthrough
Philosophy Development
Strategic Planning
Quality Dept. Role

48. Chapter Summary What is Theory? Leading Contributors to Quality Theory
W. Edwards Deming, Joseph M. Juran, Kaoru Ishikawa, Armand Feigenbaum, Philip Crosby, Genichi Taguchi, The Rest of the Pack
Viewing Quality Theory From a Contingency Perspective
Resolving the Differences in Quality Approaches: An Integrative View
Theoretical Framework for Quality Management