MAN 416 - Chapter 2 Philosophers)

8/8/2019 MAN 416 - Chapter 2 Philosophers)

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PHILOSOPHERS or GURUS

OF TQM

W.E. DEMING

J. JURAN P. CROSBY

A. FEIGENBAUM

K. ISHIKAWA G. TAGUCHI


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The initial success of the qualitymovement in Japan has been

attributed to two stages:

1. W. Edward Deming

2. Joseph Juran


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W. EDWARDS DEMING

Deming met Shewhart in 1927

Deming learned the basic concepts of

Statistical Quality Control.

Deming encouraged the Japanese to adopt asystematic approach to problem solving-

Deming Cycle

Deming cycle- Plan-Do-Check-Act Cycle However Deming referred to it as

Shewhart Cycle.

Check was changed with study


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Continued with Deming.

His greatest contribution to the Japanese is themessage regarding a typical business system:

The consumers are the most important part

of a production line

Meeting and exceeding the customers

requirements is the task that evryone within

an organisation needs to accomplish

The management system has to enableeveryone to be responsible for the quality of

his output to his internal customers


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Continued with Deming.

Demings thinking can be expressed asManagement by Positive Co-operation.

He talks about a new climate which

consists of three elements:1. Joy in work

2. Innovation

3. Co-operation He referred to new climate as WIN-WIN


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Demings 14 Ponts Deming produced his 14 points for

management, in order to help people

understand and implement the necessary

transformation.

They are applied to both small and large

organisations, and to service industries aswell as to manufacturing.


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Demings 14 Points continued...

1. Create consistency of purpose towards the improvement ofproducts and service.

2. Learn the new philosophy.

3. Cease dependence on inspection of the product to achieve

quality. But require statistical evidence of process controlalong with incoming critical parts.

4. Buy materials only if the supplier has a quality process.

End the practice of awarding business on the basis of the

price tag alone.

5. Use statistical methods to find troublespots and constantly

improve the system.

6. Institute modern aids to training on the job.

7. Institute modern methods of supervision.


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Demings 14 Points continued...

8. Drive out fear.

9. Break down barriers between departments.

10. Eliminate numerical goals.

11. Review work standards to account for quality.

12. Remove barriers that rob people of their pride of

workmanship.

13. Institute a vigorous program for training people in new

skills.

14. Create a structure in top management that will push the

above 13 points everyday.


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Demings Three Broad Philosophical

Categories

1. Constancy of Purpose

2. Continual Improvement

3. Co-operation between functions


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1. Consistency of Purpose

Management must not keep changing theirapproaches

Companies must build a long-term relationship

with suppliers.

Japanese built a relationship with suppliers- a

close knit organisation: Keiretsu.

Being committed to these suppliers develops a

cooperative relationship. These suupliers will help the buying company to

reduce costs by suggesting different parts of

alternative design.


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2. Continual Improvement

Several of the 14 points adress this issue.

Managers should learn the new philosophy means

they should learn to continually improve and not

accept the existing error rates. He proposes to determin existing causes using

statistical methods.

Education enables workers to monitor their work

and when defects are found, to determine thecauses.

Deming characterised these causes as common

and special causes.


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Common Causes: are evident in many operations

throughout the factory. They are a result of poor

product design, machines not capable ofperforming the work assigned etc. These causes

can be best fixed by management.

Special Causes: are specific to a situation.Typically

special causes are within control of the worker ordepartment and can be corrected without

management assistance.

3.Cooperation between Functions

Items 8 and 9 are directed to these. The first step is

to ensure that each peson knows what job they are

required to do.


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Demings Additional Theme- Profound

Knowledge

An appreciation for a system, the theory of variations, theory ofknowledge, psychology.

Four elements had to be learned for a complete knowledge:

1. By system: the collection of functions that worked together to

further the aims of the organisation.

2. Variation: refers to an understanding of statistical theory, bywhich he meant understanding the difference between common

and special causes and knowing how to distinguish them.

3. Theory of Knowledge:people need to understand the theory

before something can be copied. Managers must learn what

makes quality programs work before they initiated them in their

organisation.

4. Psychology: managers should learn psychology to understand

the basic motivations of people. This would give them the tools

needed to motivate employees and enable to enjoy their work.


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JOSEPH JURAN Juran expressed his approach to quality in

the form of Quality Trilogy.

These three aspects of company-wide

strategic quality planning are further broken

down in Jurans Quality Planning Road

Map, into following key elements:


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J. Juran Continued...

1. Quality Planning

Identify who are the customers

Determine the needs of those customers

Translate those needs into our language

Develop a product that can respond to those needs.

Optimise the product features so as to meet our

needs and customer needs.


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2. Quality Control

Develop a process which is able to produce the

product.

Optimise the process.


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Jurans Quality TrilogyThe relationship among the three processes is shown in the

quality trilogy. At the beginning is Quality Planning. When the product

and the process design is completed, the operations

become responsible.

The errors made during the initial planning result in ahigher cost which Juran labled chronic waste.

At the beginning the process stays within the control

limits.

Occasionally, a spike, which meant as Demings specialcauses, occurs and is addressed and brought under control.

At some point management recognises the cost of the

chronic waste.

Finally, a new quality control zone is then established.


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In Jurans view, TQM involves several steps:1. A quality planning council consisting of senior managers

establish policies, set quality goals, provide the resources

to carry out the plans, and change the performance review

system to include attainment of the quality goals.

2. The goals should not be based on historical performance.

Instead, external customers goals should be based on

benchmarks. Internal customers goals should be aimed at

getting rid of waste.

3. The organisation infrastructure may need to be altered to

meet the organisations quality goals.

4. Resources need to be made available to carry out the

plans. In this regard, one obvious area is training.


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PHILIP CROSBY

Crosbys name is best known in relations to the concept

Do It Right The First Time and Zero Defects.

He defines quality as; Assurance to the requirements

which the company itself has established for its products

based directly on its customers needs.

He does not believe that workers should take the prime

responsibility for the poor quality; the reality, he says is

that you have to get the management straight.

Zero defects means that the companys objective is

doing things right first time.

This will not prevent people from making mistakes, but

will encourage everyone to improve continuously.


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Crosby continued... The ultimate goal is to train all the staff and

give them the tools for quality imprvement,

to apply the basic precept of prevention

management in every area.


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Crosbys View of QualityFour Absolutes of Quality Management:

1. Quality means conformance to requirements.

Requirements needed to be clearly specified so

that everyone knew what was expected of them.

2. Quality comes from prevention. And prevention

was a result of training, discipline, example,

leadership and more.

3. Quality performance standard is zero defects.Errors should not be tolerated.

4. Quality measurement is the price of

nonconformnace.


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Corsbys 14 Steps to Improvement

1. Make it clear that management is committed to quality.2. Form quality improvement teams with representatives form

each department.

3. Determine where current and potential quality problems

lie.4. Evaluate the cost of quality and explain its use as a

management tool.

5. Raise the quality awareness and personal concern of all

employees.6. Take actions to correct problems identified through

previous steps.

7. Establish a committee for the zero defects programme.


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Corsbys 14 Steps to Improvement

continued...

8. Train supervisors to actively carry out their part of the

quality improvement programme.

9. Hold a zero defects day to let all employees realize that

there has ben a change.

10. Encourage individuals to establish improvement goals forthemselves and their groups.

11. Encourage employees to communicate to management the

obstacles they face in attaining their improvement goals.

12. Recognize and appreciate those who participate.13. Establish quality councils to communicate on a regular

basis.

14. Do it all over again to emphasize that the quality

improvement programme never ends.


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Quality Management Maturity

Grid (Exhibit. 2.6) In the first stage: management fails to see quality

as a tool; problems are handled by firefighting

and are rarley resolved; there are no organizedquality improvement activities.

By the last stage, the company is convinced that

quality is essential to the companys success;

problems are generally prevented; and qualityimprovement activities are regular and continuing.


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A. FEIGENBAUM

Feigenbaum defines quality as an

excellent-driven rather than a defect-

driven concept.

In his view quality is defined by the

customer, and in this regard he is similar to

Juran.

In order to persuade management to adopt a

quality strategy, he also used the cost-of-

quality approach.


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Feigenbaum continued...

Feigenbaums 19 steps to quality improvementemphasize an integrated systematic approach to

improving quality that is driven by top management.

This approach requires that management have an

understanding of what quality means and the benefitsto be obtained as it relates to the companys

profitability.

Feigenbaum believed that the jobs of the quality

inspectors should be redefined and that they should actas internal consultants promoting new methods and

techniques.

The organisations focus should be on improving

quality as defined by the customer.


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Feigenbaum continued...

Feigenbaums ideas include elements of the ideasdescribed by Deming, Juran and Crosby.

He argues that quality be part of the employee

culture as an ethic that supports the constant

improvement of performance. However, more than any of the others Feigenbaum

adopts a user-based approach to quality.

If you want to find out about your quality, go out

and ask your customer.

The methods he developed were based primarily

on statistics.


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K. ISHIKAWA

Ishikawas First Concept:

Ishikawa believed that all the divisions and

all employees in the organisation should be

involved in studying and promoting qualitycontrol by learning statistical tools.

One of these tools was created by him; the

cause-and-effect diagram, also known asIshikawa diagram.


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Ishikawa continued...

Ishikawas Second Concept:

The customer is primarily defining quality.

He defined the customer as the next person

in the line, the person who gets your work,

or anybody who relies on you.

The customer is not only the person who

paid for the final product, but also included

co-workers.


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Ishikawas Third Concept: Quality Control circles, which invloves

putting workers into teams to solve quality

problems.

Other than technical contributions to quality,

Ishikawa is associated with the Company-wide

Quality Control (CWQC).

He sees the CWQC as implying that quality doesnot only mean the quality of product, but also of

after sales service, quality of management, the

company itself and the human life.


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Ishikawa continued... The outcomes of such an approach are;

1. Product quality is improved and becomes uniform. Defects

are reduced.

2. Reliability of goods is improved.

3. Cost is reduced.

4. Quantity of prodcution is increased, and it becomes

possible to make rational production schedules.

5. Wasteful work and rework are reduced.

6. Technique is established and improved.

7. Expenses for inspection and testing are reduced.

8. Contracts between vendor and vendee are rationalised.

9. The sales market is enlarged.


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10. Better relationships are established between department.

11. False data and reports are reduced.

12. Discussions are carried out more friendly and

democratically.

13. Meetings are operated more smoothly.

14. Repairs and installation of equipment and facilities are

done more rationally.

15. Human relations are improved.


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G. TAGUCHI

His prime focus was in making statisticspractical.

Taguchi viewed quality as an issue for the

entire company and focused on the use ofstatistical methods to improve quality,

particularly in the area of product design.

Two of his concepts are significant:

The loss function

Design Characteristics and noise


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Taguchi continued...

The Loss Function:

This attempts to provide a formal process for

computing the cost of deviation from the target value.

The cost measured in this case is a social cost.

Social cost: if a part is made and it meets the targetdimensions exactly, the cost is very low. This is

because people buying the product will be happy that

the product is precisely as specified.

However, if the dimension of a part deviates from thetarget, some people become unhappy.

As the deviation increases, more people become

unhappy and the social cost increases- Taguchi terms

this social cost the loss.


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TheD

esign Characteristics and Noise: This is related to the design of products.

He postulated two causes for variations in

products: design charac. And noise.

Online activities such as statistical control charts

to check for defects control only some of this

noise.

The more significant causes of noise are outernoise and inner noise.


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Outer Noise. Is the result of variations in the

operating environment and human errors and these

are generally factors that cannot be controlled.Inner Noise: Is the variation due to controllable

factors such as deterioration. Both kinds of noise

are more significantly impacted by off-line

activities.


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Taguchi continued...Inner Noise Off-line Activities:

A. System Design: involves designing a product to satisfy the

customers requirements. Besides functionality, Taguchi

suggested additional criteria. He used QFD to establish the

cutomers requirements and convert them to design

characteristics.B. Parameter Design:invloves identifying key process

variables that affect variation and then establishing levels

for these parameters that will minimise the variation.

C. Tolerance Design: identifies the components that

contribute most to variations in the final product and then

sets appropriate tolerances for these components. The

object is to identify the most significant components and

tighten tolerances only for those instead of all components.

MAN 416 - Chapter 2 Philosophers)

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