Contributors to Quality Theory

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    Quality Assurance & QualityControl { GNED 1405 }

    LECTURE # 5 { Quality THEORY }

    Leading Contributors to Quality Theory

    Demings 14 Points for Management

    Demings Deadly Diseases

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    QUALITY THEORY

    Experience alone without theory, teaches

    management nothing about what to do to

    improve quality and competitive position,

    nor how to do it.

    - W. Edwards Deming

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    QUALITY THEORY

    Several theorieson quality improvement arein practice today.

    In this next segment of this course we willlearn about the experts in the field, their

    theories, and how these theories have been

    put into practice by some of North Americaslargest companies.

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    Leading Contributors to Quality

    Theory

    In the early post-war years ; some imports fromJapan were very substandard.

    Early Japanese cars were rust-buckets

    By the late 1970s it was obvious that the quality

    of products from Japan was superior to thosemanufactured in North America.

    How did this happen ? { one man played akey role in the development of Japanese

    quality }

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    W. Edwards Deming The Japanese learned much of their quality

    management after WW II from Mr. Deming ; infact the Japanese still use his original lectures today.

    He presented lectures on statistical quality controlapplications in Japan after World War II.

    An American; no one has had more influence inthe area of Quality Management than Deming.

    GM, Ford , Proctor & Gamble used him in the1980s to help them improve their quality record.

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    His name is a household word

    among corporate executives

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    Deming believed that the more consumersdemanded quality products and service;

    the more companies would aspire to higherlevels of performance.

    Customers now expect high quality products ata reasonable price { unlike 20 years ago }

    Demings message or mantra was continual

    never-ending improvement

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    Deming Had 14 Points

    For Quality Management

    The foundation of the 14 pointswas that :

    Poor quality was not the fault of workers

    But resulted from the management of thequality system up to the 1980s

    The 14 points represent many of the key

    principles that form the basis of qualitymanagement today.

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    Copyright 2010 Pearson Education, Inc. Publishing as PrenticeHall.

    2 - 102 - 10

    Demings14 Points for Management

    1. Create a consistency of purposetowardimprovement of product and service with the

    aim to become competitive, stay in businessand provide jobs

    2. Adopt a new philosophy:We are in a new

    economic age

    3. Cease dependence on mass inspectionstoimprove quality

    4. End the practice of awarding business on

    the basis of price tag alone.

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    Copyright 2010 Pearson Education, Inc. Publishing as PrenticeHall.

    2 - 112 - 11

    Demings14 Points for Management

    5. Improve constantly and foreverthe system ofproduction and service, to improve quality &

    productivity, & thus constantly decrease cost

    6. Institute trainingon the job.

    7. Improve leadership

    8. Drive out fearso that everyone may work

    effectively for the company9. Break down barriersbetween departments10. Eliminate slogans, exhortations and targetsfor the workforce that ask for zero defects and

    new levels of productivity

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    Copyright 2010 Pearson Education, Inc. Publishing as PrenticeHall.

    2 - 122 - 12

    Demings14 Points for Management

    11.Eliminate work standardson the factory

    floor12.Remove barriersthat rob workers of theirright to pride in the quality of their work13. Institute a vigorous program of educationand self improvement

    14. Put everybody in the company to work toaccomplish the transformation

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    1.Create constancy of purpose towardimprovement of product and service withthe aim to become competitive, stay inbusiness and provide jobs

    Management must commit resources long termto achieve this objective.

    Japanese firms took 25 years

    Today it might take 10 years

    Few quick financial returns

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    2. Adopt a new philosophy to fit the

    new economic age

    Planned obsolescence is largely in the past

    Cars are no longer worn out at 100,000 km

    Customer satisfaction now so very important

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    3.Cease dependence on mass inspection

    to improve quality

    Build quality into products from the beginning

    Should not depend on final inspection system

    Quality at the sourcedo it right the firsttimewas Demings alternative

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    4. End the practice of awarding business onthe basis of price tag alone

    Move to a single supplier based on loyalty &trust

    North American system used to be based oncompetitiveness among many suppliers

    Many times led to variability in quality ofcomponents from the different suppliers

    Alternative is just-in-time purchasing (JIT)

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    { JITContinued }

    JIT minimizes the number of suppliers used

    Results in less variability in components

    Can develop & certify suppliers

    Certification often based on known standards

    E.g. ISO 9000:2008 international standard or

    Malcolm Baldridge National Award Criteria

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    5. Improve constantly & forever the system

    of production and service, to improve quality

    & productivity, & thus constantly decreasecost

    Focuses on management of the productionsystem; which includes:

    Product design,

    Process design

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    This system of production also includes:

    Proper Tools

    Proper Machines Process flows ( the assembly line )

    Many other variables that affect service &production

    Mediocre performance is usually the result ofpoor management not the labour force

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    6. Institute Training on the Job

    (or job related)

    Proper training & knowledge is necessary todo a job well

    Design of the training program is alsoimportant for quality improvement

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    7. Improve Leadership { example of RIM }

    Supervision (&/or overhaul) of managementmay be more important as supervision of

    workers

    Individual workers can make small

    improvements to quality

    Widespread improvements can only be made

    or facilitated by management

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    8. Drive out Fear so that everyone maywork effectively for the company

    Create trust, create a climate for innovation Employees may be fearful of change or to

    admit that problems exist

    Employees that frequently report problemsmay be viewed as trouble makers

    Some may view improvements as disguises for

    layoffs Develop a no-layoff policy

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    9. Break down barriers between

    departments

    People in research, design, sales & productiongroups must work together as a team toforesee problems

    Eliminate sequential or departmentalapproach to design { Honda vs Yamaha }

    Optimize the efforts of Teams.

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    10. Eliminate slogans, exhortations &targets for the workforce that ask for zero

    defects and new levels of production

    Slogans like get it right the first time or zero defects forever tend to pressure

    employees.

    Can have the opposite of the intended effect

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    Such factors can create adversarial relationshipsbetween individual or groups of workers

    Tends to result in higher production but lower

    quality

    Motivation can be better achieved from trust

    and leadership.

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    11. Eliminate Work Quotas on the factoryfloor.

    Work standards based on quantity alone oftenleads to poorer quality { Lucy example }

    A more holistic leadership approach is requiredin quality management

    Holisticthe whole is greater than the sum oftheir parts

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    12. Remove barriers that rob workers oftheir right to pride in the quality of their

    work

    Allow for progressive self-directed work

    teams { process of employee empowerment }

    You will not be turning the asylum over to

    the inmates

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    13. Implement a program of education &self-improvement

    This refers to a more generalized education

    than Point # 6 Needs to go beyond learning the content ofoperations manuals

    Needs to be some reward for learning,{ progression system for WSP operators }

    Hard to achieve in a traditional command &control management environment

    They do not understand what it takes to allow

    employees to achieve their best.

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    14. Put everybody in the company to work

    to accomplish the transformation

    Take Action

    The change to quality management is

    everybodys job Total system improvement requires the

    involvement of everyone

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    Demings Philosophy

    The Deming philosophy focuses on continualimprovements in product and service quality

    by reducing uncertainty and variability in

    design, manufacturing, and service processes,driven by the leadership of top management.

    D i 7 D dl Di

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    Demings 7 Deadly Diseases

    1. Lack of constancy of purpose

    2. Emphasis on short-term profits

    3. Evaluation of performance, merit rating, orannual review

    4. Mobility of management

    5. Running a company on visible figuresalone

    6. Excessive health care costs per employee

    7. Excessive costs of warranties

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    Deming felt that the above Deadly Diseases

    could keep a country from achieving topquality and competitiveness in a global

    market.

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    W. Edwards Deming

    Dr. Deming received Japans highest order, theRoyal Order of the Sacred Treasure from theEmperor himself.

    Died in 1993 at the age of 93.

    He was asked once how he would like to beremembered, he said: as someone who

    spent most of his life trying to keep Americafrom committing suicide .

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    END OF PRESENTATION