1. Total Quality Management Instructor: Hank Sobah
Quality Theory
Juran, Crosby, Deming

2. Total Quality Management
Key concepts
The Cost of Quality
Tools and Techniques
Benefits
Implementation

3. Total Quality Management
Company Wide Quality Control
Quality measured in all areas of the firm
Whole operation
Involved
Quality strategy
Teamwork
Staff Empowerment
Customer Involvement
Supplier Involvement
Quality Assurance
Quality System
Quality Costing
Problem Solving
Quality Planning
Quality Control
Statistical Methods
Process Performance
Quality Standards
TQM Can be viewed as an extension of earlier approaches of quality management but differs in that it puts customers at the forefront of decision making.
Inspection aimed at screening out defects before they were noticed by customers
QC developed techniques for not only detecting defects but also treating quality problems.
QA widen the scope of of quality including other functions other than direct 0perations making use of statistical techniques and taking a longer term perspective on quality.
Company wide QC – Extending boundaries of QA to all areas of the company
TQM includes all of these techniques but has developed its own distinctive themes
Meeting expectations of customers
Covering all parts of the organisation
Including all people with the organisation
Examining all costs which are related to quality.
Designing for quality rather than inspecting for it.
Developing systems which support quality and its improvement.
Developing continued process improvement.
Error Detection
Rectification
Inspection

4. The Cost of Quality
Elements (prevention, detection, appraisal, internal and external failure, customer loyalty)
Kaizen TQM always involving everyone, always going forward, a ‘Way of Life’.
Cost is related to not doing something
Not just a manufacturing initiative

5. (obvious really isn’t it!)
Cost of Quality
The earlier in the process that quality is fixed the lower the overall cost.
(obvious really isn’t it!)
Prevention
Appraisal
Prevention
Internal failure
Appraisal
External failure
Internal failure
External failure

6. Quality Management Tools
Pareto principle 80/20
Visual presentation – histograms, scatter diagrams, control charts
Check sheets
SPC – Statistical Process Control
Cause and effect diagrams – Fishbone / Ishikawa diagram
Stratification

7. Beyond Tools to TQM Taguichi Quality Loss Function (QLF)
Quality circles
Kaizen

8. Company Wide Quality Control
Customer service
Quality of management
Quality of company
Quality of labour
Quality of Materials, techniques, equipment

9. TQM Implementation Top level strategy with management support
Steering Group
Group based improvement (quality circles)
Continuous improvement (Kaizen)
Success recognized
Training, lots of it & continuously
Examples of formats MBNQA, ISO 9001 / BS 5750

10. Benefits Shareholder wealth
Increased job satisfaction (by improved communication and involvement, better training, pride in work workmanship
Customer needs are better met
Improved supplier relationship
Corporate image improved
Longer term relationships – customer value

11. Without TQM Uninterested operators Increased defects in products
Drop in labor efficiency
No quality consciousness (why bother?)
Increased absenteeism
Increased labor turnover

12. TQM Requires Top management commitment Continuous improvement
All aspects of the business
Long-term commitment
v      Top Management Commitment
o       Setting the example in their commitment to quality
o       Making quality & TQM part of the company’s strategy
o       Willingness to invest in training & other important features of TQM
v      Continuous Improvements
o       The key to making improvements
o       Easier said than done
o       Measurements have to be made & recorded
o       People will resist being measured
o       Quality is a moving target. Objectives must continually be reassessed & sights reset on new the objectives
o       Quality circles of 5 – 10 people can be used to achieve this
o       C.I. is a journey of many (small) steps i.e. you don’t just arrive at the destination
o       A map is required with assessment & reviews to be carried out at every crossroads
o       Roadblocks will be encountered along the way
v      All Aspects of the Business
o       The Quality drive relates to all personnel within & without the firm
o       Covers ALL aspects of the supply chain
v      Long-term Commitment
o       TQM is not a “quick-fix”
o       Includes company-wide control
o       It is ideally an everlasting approach to managing quality

13. Eight attributes of quality
Performance
Features
Reliability
Serviceability
Durability
Conformance
Aesthetics
Perceived Quality
Eight attributes of quality
Performance: the primary operating capabilities of the product
Features: these are the bells and whistles attributes that are aimed at adding value over and above the basic performance variables above
Reliability: this is to do with failure, a facet important in all quality assessments but vital (literally life and death)
Serviceability: the speed and competence of repair: ideally this will be an attribute that is not required often
Durability: this may be specific to requirements; a product may be seen as a consumable rather than a durable. Laptops 12-month life cycle (previously they were expected to be used for 60 months)
Conformance: the is the extent to which a product meets its specifications – weight, width, power, and size
Aesthetics: This is a development of the features element and will not apply to all markets – it is quite subjective
Perceived Quality: Overall perception that a person has, this encompasses all attributes above and more. Includes Pre-purchase and post-usefulness.

14. The difference between TQM and non-TQM Companies
IBM in Ontario ordered a batch of components specifying an SQL of 3 defective parts per When the parts arrived from the Japanese manufacturer they were accompanied by a letter which expressed their bewilderment at being asked to supply defective parts as well as good ones. The letter explained that they had found it difficult to manufacture the defective parts , but indeed had. These 3 defective parts per 1000 had been included and were wrapped separately for the convenience of the customer.

15. Extra Slides

16. Ishikawa 4 M’s Machines Materials Effect Manpower Methods
Lack of maintenance

17. Quality Circles
5-10 People usually drawn from the same operational area
Meet regularly during work time
Chaired by a deputy, or foreman
Use of SQC methods and problem solving techniques - Brainstorming and goal orientation
Future problems - failure mode effects analysis
Opportunity for development both formal and through creativity
Management must act on recommendations from the group

18. Kaizen
KAIZEN is a Japanese word meaning gradual and orderly, continuous improvement.
It is a business strategy involves everyone in an organisation working together to make improvements 'without large capital investments'.
KAIZEN is a culture of sustained continuous improvement focusing on eliminating waste in all systems and processes of an organisation.
KAIZEN strategy begins and ends with people. Involved leadership guides people to continuously improve their ability to meet expectations of high quality, low cost, and on-time delivery.
Source:

19. Kaizen –The Wet Blanket Approach
I am too busy to study it
It's a good idea, but the timing is premature
It is not in the budget
Theory is different from practice
Isn't there something else for you to do ?
I think it doesn't match corporate policy
It isn't our business; let someone else think about it
Are you dissatisfied with your work ?
It's not improvement, it's common sense
I know the result, even if we don't do it
I will not be held accountable for it
Can't you think of a better idea ?
Source:

20. Basic tips for Kaizen Activities
Discard conventional fixed ideas.
Think of how to do it, not why it cannot be done.
Do not make excuses. Start by questioning current practices.
Do not seek perfection. Do it right away even if for only 50% of target.
Correct it right away, if you make a mistake.
Do not spend money for KAIZEN, use your wisdom.
Wisdom is brought out when faced with hardship.
Ask 'WHY?" five times and seek root causes.
Seek the wisdom of ten people rather than the knowledge of one.
KAIZEN ideas are infinite.
Source:

21. Pareto Diagrams Total Number of Problems
Class A factors are the 20% of recurring causes resulting in 80% of
all quality symptoms - these are critical and must be reduced.

22. Total Productive Maintenance
‘Prevention rather than cure’
Seri - Sorting
Seiton - Orderliness
Seiso - Cleaning
Seiketsu - Cleanliness

23. Taguchi Methods Approach pulls quality back to the design stage.
Recognizes quality as societal issue as well as an organizational one.
Strong on process control

24. Prophets of Quality Juran, Crosby, and Deming
All agree - it is management's responsibility to establish a culture where commitment to quality is the main focus
Mission of the organization must be clear to everyone,
Every management action must lead to fulfillment of that mission.
Requires commitment from the top of the organization.
Effective communication, cooperation, and teamwork throughout the organization are essential

25. Juran, Crosby and Deming All agree
Customer-focused quality is a long-term process that will not produce results overnight.
Long term improvements include reduced costs and ability to anticipate and avoid problems
Don’t view quality as improvement in final products
Don’t believe inspection/QC processes productive or cost effective means of managing quality

26. Joseph Juran
“It is most important that top management be Quality-Minded. In the absences of sincere manifestation of interest at the top, little will happen below.” 1945

27. Joseph Juran
Bell Engineer 1924, began working with Shewart and Deming on SPC
Author of Western Electric Statistical Quality Control Handbook and the Juran Quality Control Handbook
Strategic and Structured Quality Approach
Principal of the Vital Few and Trivial Many
Developed a course, MANAGING FOR QUALITY in 1940’s and taught it for approximately 30 years to over 100,000 people in over 40 countries
Emphasized the role of management in quality.
By 1960’s began teaching US the new quality ideas coming out of Japan

28. Joseph Juran Main Concepts: Top Management Involvement
Pareto Principle
Need for widespread training in Quality
Definition of Quality as Fitness for Use
Project by project approach to Quality Improvement
SPC and Process Analysis
Cultural patterns root of resistance to change
Great need to communicate

29. Joseph Juran
Proposes a strategic and structured (i.e., project- by-project) approach to achieving quality. His concepts include:
the Spiral of Progress in Quality,
the Breakthrough Sequence,
the Project-by-Project Approach,
the Juran Trilogy, and
the principle of the Vital Few and Trivial Many

30. Juran –Project by project approach
Two types of teams to analyze projects – the steering arm and the diagnostic arm
Projects and teams selected by management
Members required to develop skills in team leadership, team participation and problem solving tools.
All employees need to participate in the improvement process

31. Juran’s Journey
Process of analyzing problems is a journey from symptom to cause
Emphasizes root cause removal
Symptom is indication that there is a problem
Once the cause is discovered, the team comes up with the solution

32. Juran’s Trilogy
Systematic approach to carrying out Juran s methodology for managing for quality.
Active leadership, starting at the top, is essential
Consists of three interrelated quality-oriented processes—
quality planning,
quality control, and
quality improvement

33. Juran Trilogy – Relevant Activites
Identifying customers,
Establishing measurements, and
Diagnosing causes.
Juran compares the activities of the trilogy with those of financial operations. Money is the language of management and, in his terms, quality planning is analogous to budgeting, quality control to cost control, and quality improvement to cost reduction.

34. Philip Crosby
“Quality can’t be delegated. The who and why must be understood by top management before the what and how can be launched.”
“Quality is Free” and “Zero Defects”

35. Phillip Crosby
Noted Quality Consultant, Lecturer and Author of many books translated into over 10 languages
Author of QUALITY IS FREE, 1979 Best Seller
Recognized Business Philosopher, Innovator and Quality Guru
Philip Crosby Associates is world’s largest management consultant and teaching firm
Promoted the concept of “Zero Defects” originally at Martin Marietta where he worked 1960’s
Quality attitude, commitment to quality performance, zero defects first time every time
Defined Quality as CONFORMANCE TO REQUIREMENTS
Prevention rather than detection and correction

36. Phillip Crosby Main Concepts:
Management must understand the issues and take responsibility to improve
Management must remove barriers to quality
Must understand organization and process capabilities
Management must continually measure quality by measuring the cost of doing things wrong
Quality Pays and Pays Handsomely, Quality does NOT cost more per conventional wisdom
Cost of Quality Analysis (COQ = Price of Non-Conformance + Price of Conformance)

37. Phillip Crosby Four Absolutes of Quality
Quality is Conformance to Requirements
Eliminate Errors before the Occur
Do it right the first time
The Measurement of Quality is the Price of Non-Conformance
Six “C’s” of Quality – Comprehension of Q, Commitment to Q, Competence via education and training, Communication, Correction (prevention and performance) and Continuance
Quality Vaccine = Education, Determination and Implementation

38. Phillip Crosby
Stressed the way to manage quality is by prevention, not detection and testing.
Addresses the need to change perceptions and attitudes about quality.
Avoid the common attitude that error is inevitable; it is a normal part of business life, and one needs to cope with it.
Ultimate goal of quality improvement is Zero Defects or defect-free" products and services.
Zero Defects is an attitude and commitment to prevention.
Zero Defects does not mean that the product has to be perfect.

39. Phillip Crosby The system of quality is prevention
Training, discipline, example, and leadership produce prevention
Inspection and correction does not prevent errors.
Prevention involves thinking, planning, and analyzing processes to anticipate where errors could occur, and then taking action to keep them from occurring.
Problems usually arise because product or service requirements are either lacking or in error.

40. Phillip Crosby Prevention begins by:
Establishing product or service requirement,
Developing the product or service,
Gathering data, comparing the data to the requirement, and
Taking action on the result.
This is a continuous activity.

41. Why, Dr. W. Edwards Deming, of course!
Which Quality Guru was a key player, a mastermind in Total Quality Management programs?
Why, Dr. W. Edwards Deming, of course!

42. “everything is the fault (or credit)
W. Edwards Deming
“everything is the fault (or credit)
of top management.”

43. W. Edwards Deming High Prophet of Quality Control and TQM
Advisor, consultant, author, teacher to most influential business leaders and organizations in the world.
PhD. Physicist in 1928, worked with Shewart and Juran on SPC
Founder of the THIRD WAVE OF INDUSTRIAL REVOLUTION
1938 applied SPC concepts to U.S. Bureau of Cencus for sampling techniques
1942 Served as consultant to the Secretary of War on using SPC to strengthen the war effort

44. W. Edwards Deming
Assisted in the re-vitalization of post WWII Japan by applying SPC and QC techniques to agricultural and manufacturing issues
Japanese Union of Scientists and Engineers contracted Deming to teach statistical methods to Japanese industry, naming their national quality award – The Deming Award – after him
Pursued similar mission in USA
Gained and almost Cult Status for his philosophies
1980 NBC Special, “IF JAPAN CAN WHY CAN’T WE” launched US Quality Movement
Life long demand as Lecturer and Consultant

45. W. Edwards Deming
Takes a systems and leadership approach to quality. Concepts associated with his approach include:
14 Points
7 Deadly Diseases
Theory of Systems
Theory of Knowledge
Theory of Variation
Plan-do-check-act
Quality improvement by process improvement

46. W. Edwards Deming Deming chain reaction: improve quality,
costs decrease and
productivity improves.
Creates a greater potential for increased market share.

47. DR. W. EDWARDS DEMING
His philosophy treats individuals as fellow members of a system.
His system leads to a GOOD chain reaction, involving….
Improve quality  decrease costs  productivity improves  capture the market with better quality/price stay in business  provide employment

48. W. Edwards Deming
Some of Deming's economic beliefs gained from his philosophies and applications:
Reduction of the economic burden
Expansion of the markets
Survival of organizations that serve customers

49. THE DEMING METHOD = MANAGEMENT METHOD
The Quality Method, defined by Dr. Deming, is a MANAGEMENT method. It requires change in our managers. It is NOT a method that is built upon inciting or demanding quality from workers as we incited and demanded QUANTITY of production. Putting up posters that tell workers to produce quality, or creating clever slogans that exhort workers to produce quality is not part of a Deming Quality process and only illustrate how little we have learned about the Method.
QUANTITY  QUALITY

50. QUANTITY  QUALITY Quality is the job of management.
The Deming method of Quality is a management process.
It assumes that the worker is a craftsman and that he will produce quality, if he/she is only given a chance (and the proper resources).
The Deming method further assumes that well trained workers will produce quality products, if managers do their jobs correctly and provide the proper resources, organizational structure, and environment.
Dr. Deming was very confident about how to motivate employees
Allow them to build quality products (or perform top quality services).
Dr. Deming was also very confident about how NOT to motivate employees….eliminate 
Quota systems
Annual performance reviews
Any form of pay for performance systems
These systems, Dr. Deming felt, were just a waste of the company’s money and a manager’s time – money and time that would be much better spent on solving production or process problems, that will allow the workers to produce better quality.

51. Deming - Quality is the job of management.
It is a management process.
It assumes that the worker is a craftsman and that he will produce quality, if he/she is only given a chance (and the proper resources). The Deming method further assumes that well trained workers will produce quality products, if managers do their jobs correctly and provide the proper resources, organizational structure, and environment.

52. W. Edwards Deming
Dr. Deming was very confident about how to motivate employees – simply allow them to build quality products (or perform top quality services, in today’s economy). Dr.

53. W. Edwards Deming
Deming was also very confident about how NOT to motivate employees….eliminate:
Quota systems
Annual performance reviews
Any form of pay for performance systems
These are a waste of the company’s money and a manager’s time – money and time that would be much better spent on solving production or process problems, that will allow the workers to produce better quality.

54. Deming – 7 Deadly Diseases 7 Reasons TQM Fails
Lack of a clear “shared model” of quality that the entire organization embraces.
Lack of “shared” values and vision for the organization
Focusing on COMPLIANCE (to standards, procedures, goals), rather than COMMITMENT as the driving force of the program
Departmental barriers, walls or “concrete silos” that are tough to break
A non-systematic approach to TQM implementation – taking it “willy nilly” instead of following some plan.
Senior managers who cannot or will not drive the transformational process.
Having an organizational culture that does not collectively learn and follow the process needed.

55. Deming’s Quality Approach UNDERLYING PRINCIPLES
Variation
Theory of Knowledge
Theory of a System
Psychology

56. Deming Theory of Variation
This is his basis for SPC and treatment of people
Two causes of variation
common errors
special causes
Two costly errors
Treating common causes as special
Treating special causes as common

57. Theory of Knowledge ? How do we know things ?
SOME WAYS THAT WE CAN “KNOW” THINGS…..
Statistics properly used for MEASUREABLES (characteristics, things, service quality)
Having Theories and Predictions are crucial to understanding the knowledge
The things that are most important ARE NOT MEASUREABLE
For example, How do you measure…….
 An employee’s happiness
The true cost of poor quality
Lack of customer goodwill
Lack of supplier goodwill
Poor communication in the organization

58. This applies to a COMPLETE system - suppliers to customers
Theory of System
This applies to a COMPLETE system - suppliers to customers
YOU or YOUR
ORGANIZATION
Suppliers
Customers
 Common Causes of Variation are built into the system naturally
Management maintains SOLE responsibility for the system.
Leadership is Required.
The system will only be as good as it is led to be.
Special causes are outside the system, and are everyone’s responsibility.
Internal competition is destructive.

59. Psychology Employees CANNOT be evaluated apart from the system.
Employees ARE the system
they will only be a good as the system (and leadership) allows.
Money is NOT a motivator.
Money only works a short-term stopgap.
“Give me more money and I will like better what I do –“ NOT!
All money as a short-term solution does is give me a fatter paycheck with which to “enjoy” my misery!
EVERYONE in the organization is responsible for improvement.
Overall improvement cannot be handled by one person or one department
everyone is important.
People are most productive in cooperative teams.
“We are all experts and idiots – just in different things.”
“All of us are smarter than one of us

60. Deming tells us…
“…the majority of a worker’s effectiveness is determined by the worker’s environment, and only minimally by his own attitudes, work ethics, behaviors.”

61. DEMING SYSTEM OF PROFOUND KNOWLEDGE
Dr. Deming based his business philosophy on cooperation - to determine its own potential, an organization must harness the power of every worker in its employment.
In order to promote cooperation, Deming discusses his System of Profound Knowledge. Profound knowledge involves expanded views and an understanding of the individual yet truly interdependent element that compose the larger system – every worker have nearly unlimited potential if placed in an environment that supports, educates, and nurtures senses of pride and responsibility.
Deming tells us that the majority of a worker’s effectiveness is determined by the worker’s environment, and only minimally by his own attitudes, work ethics, behaviors.

62. DEMING SYSTEM OF PROFOUND KNOWLEDGE
To effectively implement the System of Profound Knowledge, a manager must….
 Employ an understanding of psychology of groups and of individuals
Eliminate tools such as production quotas and slogans – these only alienate workers and supervisors – no gap bridging here – and breeds intense competition between the workers themselves – I can do better than you.
Form the company correctly – Make the organization into a large team divided into sub-teams all working on different levels of the same goal – barriers between departments often give rise to conflicting objectives and unnecessary competition.
Share the wealth – spread the profits among the teams
Eliminate fear, anger, envy, and revenge from the workplace.
Employ sensible methods such as rigorous on-the-job-training programs.

63. DEMING SYSTEM OF PROFOUND KNOWLEDGE
In this “effectively implemented system” organization, the workers better understand their jobs
the specific task
the technological relationships
they value themselves higher
they are stimulated and empowered and show overall better performance.
Dr. Deming has noted that upwards of 94% of all problems in organization – and their solutions – stem from the SYSTEM and the PEOPLE.
Concentrate on understanding the system and how you might adjust to make the organization operate more productively and positively.

64. Deming tells us…
Upwards of 94% of all problems in organization – and their solutions – stem from the SYSTEM and the PEOPLE.
Concentrate on understanding the system and how you might adjust to make the organization operate more productively and positively.

65. “It is not enough to just work hard. You must know what to work on.”
The ideas of Dr. Deming may seem common or obvious now, but have not always been practiced in our culture of work.
Dr. Deming’s ideas and personal examples of hard work, sincerity, and personal responsibility have forever changed the world of management.
“It is not enough to just work hard.
You must know what to work on.”
If you are not having fun, then you’re doing something wrong

66. 4 Pillars of Profound Knowledge
Appreciation for a system: Organizations are interactive systems, and must be managed as systems. Management’s role is to strive toward organization of the enterprise as a whole.
Theory of variation: Variation is always present. The key is not in measuring it, but in understanding what is causing it; not to judge or blame individuals, but to improve the system.
Theory of knowledge: Management’s job is prediction. Prediction is based on knowledge. Knowledge is built on theory. Experience without theory teaches nothing.
Some Psychology: Knowledge of individual and group psychology is needed to nurture and preserve innate desires of people to learn, to create, to contribute, and to take pride in work.

67. Deming’s 14 Points
Create constancy of purpose for improvement of products and service
Adopt a new philosophy; we are in a new economic age
Cease dependence upon inspection as a way to achieve quality
End the practice of awarding business based on price tag
Constantly improve planning, production and service process, INCLUDING PEOPLE!
Institute training on the job
Institute improved leadership

68. Deming’s 14 Points Drive out fear Break down departmental barriers
Eliminate slogans/targets asking for increased productivity without providing methods
Eliminate numerical quotas
Remove barriers that stand in the way of workers and their pride of workmanship - both hourly and salaried.
Institute programs for education and re-training
Put all the emphasis to work to accomplish the transformation

69. #1 Create constancy of purpose for improvement of products and service
Management is charged with re-defining continual improvement, in a way that best fits the organization’s goals and purposes. The organization has to strive to survive, compete globally and constantly replenish its resources for growth and improvement. How? Through improvement and research.

70. #2 Adopt a new philosophy; we are in a new economic age
Consider what is best for the organization as a whole. We can no longer assume that our customers will be loyal to us because they like us. If the organization cannot be profitable, in dollars, quality, and proper treatment of people – then what’s the point?

71. #3 Cease dependence upon inspection as a way to achieve quality
Quality cannot be inspected into a product or process. Erase the philosophy of “the inspector (or QC department) will catch any problems before the product is shipped. Let’s keep going.” Instead, adopt the philosophy of “develop a system with sound processes that can make quality products. Do it right the first time, and the system will improve itself.”

72. #4 End the practice of awarding business based on price tag
Does your organization award business to suppliers and other vendors, solely on the price tag? Point four specifically warns against this! Why? By awarding business strictly on price, the organization often (but not always) gets lower quality. If, however, an organization established loyalty agreements or good working relationships with suppliers/vendor, perhaps even long term contracts, higher quality is obtained, as often is better pricing.

73. #5 Constantly improve - planning, production and service process, INCLUDING PEOPLE!
Dr. Deming states here that only a commitment to a PROCESS of continual improvement will not alone bring results. We cannot ignite and spread a quality revolution that will lead to constant continual improvement by just having a process and commitment.
Instead, we need an “evolutionary philosophy” that prevents stagnation of the company. Part of the “evolutionary” mentality is to abandon practices that are obviously only short-term benefits, as these ultimately detract from overall organizational effectiveness.

74. #6 Institute on-the-job Training
NEVER assume that the newly hired person, or transferred individual from another division, will know everything they need to do. Even the most experienced, talented, and qualified worker needs to adapt and learn the systems and processes of a new organization/new department.

75. #7 Institute Improved Leadership
Just having a “leader,” “supervisor,” or “manager” title does not make you a good leader – or even a leader at all. Very few managers have been formally trained to manage, or to be a leader. Many “leaders” are not even familiar with Deming principles at all.
Management is not “self-evident” – it requires skill, ability, practice, and training. Unless managers are trained to manage and to be leaders in the Deming world, we will continue to hurt ourselves with “gross miscalculations” like re-engineering and downsizing.

76. #8 Drive out Fear
“Many employees are afraid to ask questions, or to take a position, even when they do not understand what the job is or what is right or wrong. People will continue to do things the wrong way, or not to do them at all. The economic loss from fear is appalling. It is necessary to better quality and productivity that people feel secure, “ Dr Deming once wrote. He wrote this long before the age of re-engineering and downsizing – two key reasons why fear exists in the work place. Bert Petersen, human resources consultant specializing in employee relations implication of the Deming Quality Principles, is of the opinion that FEAR is likely the largest source of waste in the American enterprise.

77. #9 Break Down Departmental Barriers
All employees and departments are part of the organization, but it is often an “us versus them” scenario. The organization as a whole needs to understand that each individual and entity are part of the whole picture.
Management is responsible for making this happen. Only management can help workers understand this. How? By example – showing how all departments/divisions work as one entity; don’t pit the groups against each other.

78. #10 Eliminate slogans/targets - don’t ask for increased productivity without providing methods
Don’t rely on posters displayed throughout the organization as the only vehicle for increased productivity/quality. We do not need elementary school level posters to encourage employees to do “good work.”
In some organizational cultures, use of these posters is actually embarrassing to management and employees. Let the employees work with managers to develop their own slogans or targets – this is the core group that does the work.

79. #11 Eliminate Numerical Quotas
“Quotas take into account only numbers, not quality or method. They are usually a guarantee of inefficiency and high cost. A person to hold a job, meets a quota at an cost, without regard to damage to the company,” Dr. Deming wrote.
Workers make quotas at the expense of quality. Managers accept lack of quality, because it is the price of the quota system. Quotas make a quality system impossible to implement.

80. #12 Remove barriers – don’t stand in the way of workers and their pride of workmanship
People, in general, are eager to do a good job. The truly good and caring workers get distressed when cannot perform their functions to the best of their ability. Too often, misguided supervisors, faulty or non-existent equipment, and defective materials stand in the way.

81. #13 Institute programs for education and re-training
The results of this training must drive home a philosophy throughout the organization that “production problems are PROCESS problems, not PEOPLE problems.”
Think about a situation you were in – what fixed the problems more quickly? Your boss screaming at you to make it happen, or management (or you) studying the process to find the deficiencies?

82. #14 Put all the emphasis to work to accomplish the transformation
Everyone in the organization needs to work together to accomplish the goal/mission/vision as well as the Total Quality Management movement.

83. Plan-Do-Check-Act
Plan
Act Do
Check

84. Plan-Do-Check-Act Decide what you want to do – write a plan
Carry out the tasks at hand on your plan
Do the plan and the action taken match? Check your work!
Take action on the differences, improvements, and modifications.

85. 7 Deadly Diseases
Lack of constancy of purpose to plan a marketable product to keep the company in business and provide jobs.
Emphasis on short term profits
Personal evaluation appraisal, by whatever name, for people in management, for effects, which are devastating.
Mobility of management; job hopping.
Use of visible figures for management, with little or no consideration of figures that are unknown
Excessive medical costs
Excessive warranty costs, fueled by lawyers working on contingency fees.

86. #1 Lack of constancy of purpose: plan a marketable product to keep the company in business and provide jobs.
Changing plans/missions/visions/focus frequently without a solid business reason only confuses employees, customers, and suppliers.
Can the product be marketed/sold, i.e., will people want it? Is the product offered at a fair price? Does the product need modified/re-invented, to please the “market?”
Can the company remain in business AND be profitable, with the current products/product plan/systems in place?

87. #2 Emphasis on short term profits
Short-term profits only get the organization through the immediate time period (usually less than 1 year). Focusing on longer-term profit allows for expansion, growth, and continual business.

88. #3 Personal evaluation appraisal, by whatever name, effects, are devastating.
Dr Deming called performance appraisals “worse than a waste of time.” Deming recommends this alternative:
MANAGE ON A DAILY BASIS
Talk to employees about strengths and weaknesses every day, instead of once a year. Plan and discuss training needs as part of the daily routine
Make it a point to ask questions then cover your mouth and open your ears

89. #3 Personal evaluation….
Pose challenges and problems to those under your management, and let THEM come up with responses. Prepare to be amazed at the input you receive.
See who has mistakes (regularly) and find out why. Is training the answer? Do they need the proper tools? Do they need encouragement or a pat on the back?
See who is habitually late or absent – this can be a warning that there may be a work problem. Perhaps you can determine what the problem is and help the employee solve it.
Managers get more response when the HELP rather than HINDER.

90. #3 Personal evaluation….
Management is not a “zero sum” game. Dr. Deming says that less than 5% of employees are just not right for the job. The 95% need some assistance or guidance. Dr. Deming also says that any failure of an employee is a failure for the manager – view it that way, and don’t let the performance appraisal process influence your decisions……pay for performance does nothing.

91. #4 Mobility of Job Hopping Managers
Management styles change each time management personnel change- thus losing stability in the organization’s operations, theories, principles, and processes in place.
When upper management personnel leave (voluntarily), workers start to worry that the “worst is yet to come.”

92. #5 Use of visible figures for management, with little or no consideration of what’s unknown
The tangible costs of doing business (labor, materials, equipment) are just as important as the intangible costs (customer goodwill, employee loyalty, supplier relationships).
Focusing only on the “numbers” – the visible measurements – is not the answer.
Accounting and statistics alone do not make the organization a success.

93. #6 Excessive Medical Costs
Has the employees’ medical costs increased dramatically (not due to inflation or increased premium costs – BUT due instead to more health care usage)? What are the reasons the health care usage increased? Age? Prevention care?
Many organizations have such a high stress level that the employees’ health is affected. Could this be the reason for the increased costs?

94. #7 Excessive warranty costs, fueled by lawyers working on contingency fees.
Examine why warranty costs are high (or higher than normal). Is product quality to blame? Are these “true” complaints – e.g., there really is a traceable problem to the product or processes? Or, are your customers just not happy overall?
If the problem is product quality related, are there safety/health/environmental issues associated with it? Are lawyers driving the process – is the legal profession advertising that your product/service could cause the user detriment/harm?

95. References Used for This Presentation
1.)    “Dr. W. Edwards Deming: The Father of the Quality Evolution,” SkyMark, 7300 Penn Avenue, Pittsburgh, PA 15208;
2.)    “Manager and Leadership Training,” Bert Peterson,
3.)    “A Deming View of Employee Relations,” Bert Peterson,
4.)    “Performance Appraisals – Why Are We Still Doing This?,” Bert Peterson,
5.)    “Fear – A Management Style,” Bet Petersen,
6.)    “Employee Motivation – the Latest Holy Grail of Employee Relations,” Bert Peterson,
7.)    CQE Primer, Quality Council of Indiana, 1999
8.)    “Ideas that Change Everything,” presented by Council on Realizing Excellence in Management (CoREM), 1999.