Deming Quality Management Approach (1)

7/31/2019 Deming Quality Management Approach (1)

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Aclan, Minna Minerva

De Juras, Jose Mari

Delos Santos, Kenneth Allen

Dolojan, Mary Anne S.


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Whos Deming?

American Statistician,Professor, Author, Lecturer, andConsultant.

As a census consultant undergeneral Douglas MacArthur

taught statistical controlmethods to Japanese businessleaders

taught Japanese engineers andmanagers statistical process

controls the message:improving quality will reduceexpenses while increasingproductivity and market share.


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Deming Philosophy

by adopting appropriate principles of management,organizations can increase quality andsimultaneously reduce costs .

The key is to practice continual improvement andthink of manufacturing as a system, not as bits and

pieces. Dr. Demings philosophy was summarized by some

of his Japanese proponents with the following : When people and organizations focus primarily on quality,

defined by the following ratio: Results of Work Efforts

QUALITY = Total Costs. when people and organizations focus primarily on costs,costs tend to rise and quality declines over time.


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Deming System of ProfoundKnowledge "The prevailing style of management must undergo

transformation. A system cannot understand itself. Thetransformation requires a view from outside.

The individual, transformed, will perceive new meaning to

his life, to events, to numbers, to interactions betweenpeople.

The individual, once transformed, will: Set an example Be a good listener, but will not compromise Continually teach other people Help people to pull away from their current practice and beliefs

and move into the new philosophy without a feeling of guilt aboutthe past


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Deming System of ProfoundKnowledge

System of Profound Knowledge Appreciation of a system: understanding the overall

processes involving suppliers, producers, andcustomers (or recipients) of goods and services.

Knowledge of variation: the range and causes ofvariation in quality, and use of statistical sampling inmeasurements;

Theory of knowledge: the concepts explainingknowledge and the limits of what can be known;

Knowledge of psychology: concepts of human nature.


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Demings 14 Key principles

The System of Profound Knowledge isthe basis for application of Demings

famous 14 Points for Management.

Deming offered fourteen key principlesfor management for transformingbusiness effectiveness.


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1. Constancy of Purpose

Deming suggested that a company's principal rolewas to stay in business, in order to provide jobs. Itaccomplishes this through innovation, research,constant improvement and self-maintenance.

Create constancy of purpose for continual

improvement of products and service to society,allocating resources to provide for long range needsrather than only short Term profitability, with a plan tobecome competitive, to stay in business, and toprovide jobs. Developing the organizations goals andphilosophy

Long term view Self examination where are we

Making the Mission Statement a Living document


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2. Adopt the new philosophy

We are in a new economic age, created in Japan.We can no longer live with commonly acceptedlevels of delays, mistakes, defective materials, anddefective workmanship. Transformation of Western

management style is necessary to halt thecontinued decline of business and industry.Understanding the Philosophy of never-EndingImprovement.

Customer satisfaction Managing for success instead of failure

Get everyone involved in the quality journey

Identify and remove barriers to achieving quality


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3. Cease the need for massinspection Eliminate the need for mass inspection as the way of

life to achieve quality by building quality into theproduct in the first place. Require statistical evidenceof built in quality in both manufacturing andpurchasing functions. Replacing mass inspection

with Never-Ending improvement Develop a plan that minimizes the total cost of

incoming materials and final product

Commit to examining the process over time

Inspect all or none rule

Eliminate the need for mass inspection to achievequality by building quality into the product in the firstplace. Instead, monitor consumer satisfaction.


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4. End lowest tender contracts

Price has no meaning without ameasure of quality being purchaseddo not make cost the sole decision

factor Move from multiple to single source

relationships

Long term relationship between the

vendor and buyer The lowest price or bidd er means

poorer quality


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5. Improve every process

Improve constantly and forever every process forplanning, production, and service. Searchcontinually for problems in order to improve everyactivity in the company, to improve quality andproductivity, and thus to constantly decreasecosts. Institute innovation and constant

improvement of product, service, and process. Management has responsibility for the system Continual reduction of waste

Continual improvement in quality in every activity Use of Control Charts, flow Charts, Check Sheets,

Pareto Diagrams, Brainstorming, Fishbone (causeand Effect), Histograms, Scatter Diagrams formanaging quality


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6. Institute training on thejob New skills are required to keep up with changes in

materials, methods, product and service design,machinery, techniques, and service.

Institute modern methods of training on the job for all,including management, to make better use of every

employee. On-going integrated approach to an employees growth Learn how to perform the job

Realize that training is part of everyonesjobAllemployees should learn Dr. Demings 14 points

Use statistical methods to determine workers capability Training that offers employees a share in the overall

philosophy and goals for the organization


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7. Institute leadership Instituteleadership The job of a supervisor is not to tell people what to do nor

to punish them, but to help people to do a better job andto learn. Improvement of quality will automatically improveproductivity if immediate action is taken on reports ofinherent defects, maintenance requirements, poor tools,fuzzy operational definitions, and all conditionsdetrimental to quality.

Management should remove causes for system variation People are penalized for things beyond their control Create a positive supportive atmosphere

Eliminate fear and mistrust

Encourage coaching Extract feedback

Workers have to give new systems a chance


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8. Drive out fear

Fear is a barrier to improvement so drive out fear byencouraging effective two-way communication and othermechanisms that will enable everybody to be part of change,and to belong to it.

Encourage effective two way communication and othermeans to drive out fear throughout the organization so thateverybody may work effectively and more productively forthe company. Driving out fear

Do not use as a motivator get people to work in teams

Interaction with the organization Training in companygoals.

What is the job, is acceptable, what is not acceptableReward teamwork, quality, and creativity


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9. Breakdown barriers betweendepartments and individuals People inresearch, design, sales, and

production must work as ateam, to foreseeproblems of production and in use thatmaybe encountered with the product or service.

Breaking down organizational barriers: Employees roles become functional Problems in competition, communication and

fear arise Customer and employee surveys should be

done Improve communication upwards and

downwards Eliminate performance appraisals

10 Eli i t th f


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10. Eliminate the use ofslogans, Posters, and

exhortations Eliminate slogans, exhortations, and targets for thework force asking for zero defects and new levels ofproductivity. Such exhortations only createadversarial relationships, as the bulk of the causes oflow quality and low productivity belong to the system

and thus lie beyond the power of the work force. Change to system to help employees achieve goals Identify problems/barriers that are causing goals not to be

met and eliminate them get rid of management byobjectives

Goals must be focused on the companys mission in the

future Goals must have an organizational purpose and aligned

with the job


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11. Eliminate arbitrarynumerical targets Eliminate work standards (quotas) on the factory floor.

Substitute leadership. Eliminate management byobjective.

Eliminate management by numbers, Numerical goals.Substitute aids and helpful leadership in order to achieve

continual improvement of quality and productivity. Replacemanagement by numbers with Never-EndingImprovement

Quotas and standards focus on quantity not quality Replace with statistical methods, leadership and training

Identify process improvements

By focusing on quality through the use of statisticalmethods, management provides a roadmap for never-ending improvement


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12. Permit pride inworkmanship Remove barriers that rob the hourly worker

of his right to pride of workmanship.Promoting pride of workmanship: The responsibility of supervisors must be

changed from sheer numbers to quality. This means, inter alia," abolishment of the

annual or merit rating and of management byobjectives

Involve employees at all levels of process

improvement Operationally define job descriptions Meet basic work-related needs of employees


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13. Encourage education

Institute a vigorous program of education and self-improvement,. What an organization needs is not just goodpeople; it needs people that are improving with education.Educating and retraining everyone:

Should develop employees for changes in their currentjobs

In the organizations mission and goals

Statistical training

View training as long term for the individual

In fields related to the employees current job The employees personal improvement

Failure to do this creates loss of resources in the future


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14. Top managementcommitment to action Put everybody in the company to work to accomplish

the transformation. The transformation iseverybodys job.

Clearly define top managements permanentcommitment to ever improving quality and

productivity, and their obligation to implement all ofthese principles.

They must know what it is that they are committedtothat is, what they must do.

Create a structure in top management that will push

every day on the preceding 13 Points, and takeaction in order to accomplish the transformation.Support is not enough: action is required!


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Deming's 7 Deadly Diseases ofManagement The "Seven Deadly Diseases" include: Lack of constancy of purpose

Emphasis on short-term profits

Evaluation by performance, merit rating, orannual review of performance

Mobility of management

Running a company on visible figures alone

Excessive medical costs Excessive costs of warranty, fueled by

lawyers who work for contingency fees


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Deming Quality Managementapproach on Civil Engineering

Problem:

A study carried out by Shrivastav andDhingra (2001) revealed that the limited

capacity of public road transport has ledto an enormous increase in the use ofprivate and intermediate transport

services in India.

D i Q lit M t


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(cont.) Moreover, in many instances, public

transport services are not coordinatedwith other modes, resulting in commuterdissatisfaction due to delays, longerjourney times, poor levels of service,high vehicle operating costs, and

environmental pollution.

D i Q lit M t


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(cont.) Solution: Total Quality Transportation (TQT) is the

used term instead of TQM to shift attention

away from preconceived notions of TQM.

to focus on the commitment to providequality transport service, promote learning

skills, and encourage pride in workersefforts to deliver service

D i Q lit M t


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(cont.) Philosophy on Continuous Improvement: commitment to meet or exceed customer

requirements,

participation by critical mass of stakeholders,

using statistical tools for analysis, continuous review of processes,

exercising strong quality leadership,

providing training and retraining programs,

safety improvement, analysis of current performance,

green transport system, and

meeting local needs and regulations


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D i Q lit M t


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(cont.) Conclusion:

Total Quality Transportation (TQT) has been defined andDemings 14- point model has been presented for aidingTQT implementation. The model is designed to guide top

management in adopting TQT in their organizations.

TQT is a powerful strategy for improving quality. In thenear future, competitiveness will increase the demand fordelivery of quality service in the transportation industry

because of World Trade Organization agreements

Transportation organizations are at a crucial phase, andadopting TQT is critical in helping organizations surviveand compete in the growing international transport market.


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Deming Quality Management Approach (1)