1. Quality Management Philosophies
Chapter 3
Quality Management Philosophies
Slide 3.1 1

2. Leaders in the Quality Revolution
W. Edwards Deming
Joseph M. Juran
Philip B. Crosby
Slide 3.2 2

3. W. Edward Deming
Received a Ph.D. in physics and trained as a statistician
Worked for Western Electric in the 1920s and 30s
After World War II helped Japan implement his statistical quality control
Deming became known in 1980 when the broadcast program entitled If Japan Can…Why Can’t We?
Credited with having the greatest influence on quality management
Quality philosophy focused on reducing uncertainty and variability
Slide 3.3

4. W. Edward Deming cont… Deming:
stressed that the ultimate responsibility for quality improvement lies with top management
estimated that 85 to 95 % of variation results from the system
maintained that the majority of poor quality in a system is caused by management
claimed that higher levels of quality lead to higher levels of productivity
Slide 3.4

5. Deming Chain Reaction Improve quality Costs decrease because of
less rework and mistakes
Productivity improves
Capture market with better
quality and lower price
Stay in business and provide more jobs
Slide 3.5 3

6. Deming’s System of Profound Knowledge
Appreciation for a system
Understanding variation
Theory of knowledge
Psychology
Slide 3.6 4

7. Systems
A system is a set of functions or activities within an organization that work together for the aim of the organization.
Components must work together
Management must optimize the system
Every system must have a purpose
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8. Variation
Many sources of uncontrollable variation exist (common causes)
Special (assignable) causes of variation can be recognized and controlled
Failure to understand these differences can increase variation in a system
Taguchi philosophy seeks to minimize variation around a target value
Slide 3.8 6

9. Sources of Variation in Production Processes
Materials
Tools
Operators
Methods
Measurement
Instruments
Human
Inspection
Performance
Environment
Machines
INPUTS
PROCESS
OUTPUTS
Slide 3.9 7

10. Traditional View of Conformance to Specifications
Loss
No Loss
Loss
0.480
0.500
0.520
Tolerance
Slide 3.10 8

11. Theory of Knowledge Knowledge is not possible without theory
Experience alone does not establish a theory, it only describes
Theory shows a cause and effect relationship that can be used for prediction
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12. Psychology Sincere trust and belief in people
Understanding of how people work in systems
People are motivated intrinsically and extrinsically; intrinsic motivation is the most powerful
Fear is demotivating
Managers should develop pride and joy in work
Slide 3.12 10

13. Deming’s 14 Points (Abridged) (1 of 2)
1. Create and publish a company mission
statement and commit to it.
2. Learn the new philosophy.
- Customer driven continuous improvement
3. Understand the purpose of inspection.
- workers must be responsible for their work
4. End business practices driven by price alone.
- Price has no meaning without quality
5. Constantly improve system of production
and service.
6. Institute training.
- Job specific training
Slide 3.13 11

14. Deming’s 14 Points (2 of 2) 7. Teach and institute leadership.
8. Drive out fear and create trust.
9. Optimize team and individual efforts.
10. Eliminate exhortations for work force.
11. Eliminate numerical quotas and M.B.O.
Focus on improvement.
12. Remove barriers that rob people of pride
of workmanship.
13. Encourage education and self-improvement.
14. Take action to accomplish the transformation.
Slide 3.14 12

15. Deming Prize
Instituted 1951 by Union of Japanese Scientists and Engineers (JUSE) in Japan
Several categories including prizes for individuals, factories, small companies, and Deming application prize
American company winners
Florida Power & Light (first U.S. winner)
Slide 3.15 13

16. Joseph Juran Industrial Engineer Joined Western Electric in the 1920s
Authored The Quality Control Handbook which often referred to as the quality bible
Believed quality improvement should be achieved through projects
Focused on three major quality processes, called the Quality Trilogy
Slide 3.16

17. Juran’s Quality Trilogy
Quality planning
Preparing to meet quality goals
Quality control
Meeting quality goals during operations
Quality improvement
Reaching unprecedented levels
of performance
Q.P
Q.C.
Q.I.
Slide 3.17 14

18. Key Idea
Juran proposed a simple definition of quality: “fitness for use.”
This definition of quality suggests that it should be viewed from both external and internal perspectives; that is, quality is related to “(1) product performance that results in customer satisfaction; (2) freedom from product deficiencies, which avoids customer dissatisfaction.”
Slide 3.18

19. Philip B. Crosby Corporate V.P. for quality at International Telephone
Authored book entitled Quality is Free
Believed that zero defects is a realistic goal
Defined the cost of quality as:
Expense of nonconformance
Slide 3.19

20. Phillip B. Crosby Quality is free . . .
“Quality is free. It’s not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.”

21. Philip B. Crosby’s Philosophy
Absolutes of Quality Management:
quality means conformance to requirements
Requirements must be clearly stated so they can’t be misunderstood
problems are functional in nature
Problems must be identified by those individuals that cause them
Slide 3.20 15

22. Philip B. Crosby’s Philosophy cont…
there is no optimum level of defects
Doing the job right the first time is always cheaper
cost of quality is the only useful measurement
Quality cost data are useful to call problems to management’s attention
Crosby estimated that most companies spend 15 to 20 percent of their sales dollars on quality costs
zero defects is the only performance standard
Slide 3.21