Gurus

Quality Management

What is Theory?What is Theory?Slide 1 of 5Slide 1 of 5

Theory Defined– Theory is a “coherent group of general

propositions used as principles of explanation for a class of phenomena.”

Illustration of a Theory– For example, it might have been observed that

many companies that have implemented quality improvements have experienced improved worker morale.


QualityImprovements

Worker Morale

Dependent Variable

Independent Variable

Causality

Testable Theoretical Model


Four Elements of a Complete Theory

WhatWhat

WhereWhere

WhyWhy

Who-where-when

Who-where-when


Two Ways to Establish a Theory– Induction– Deduction

Induction– The process of induction is useful bus is also

subject to observer bias and misperception. Deduction

– Using deduction, researchers propose a model based on prior research and design an experiment to test the theoretical model.


Inductive Versus Deductive Reasoning

Induction

Deduction

Data Generalization

Generalization Supported by Data

A Theory of Quality Management?A Theory of Quality Management?Slide of 2Slide of 2

No Unified Theory– As yet, there is not a unified theory explaining quality

improvement that is widely accepted by the quality community

Differing Approaches– The differing approaches to quality improvement

represent competing philosophies that have sought their places in the marketplace of ideas.

A Theory of Quality Management?A Theory of Quality Management?Slide 2 of 2Slide 2 of 2

Managers Must Apply What Fits– As a result of the availability of competing

philosophies of quality management, practicing quality managers must become familiar with these philosophies and apply those that are applicable to their particular situation.

The Most Successful Companies– The most successful companies have put their own

stamp on quality campaigns, mounting their own massive training efforts internally.

Leading Contributors to Quality Leading Contributors to Quality TheoryTheory

W. Edwards Deming Joseph M. Juran Kaoru Ishikawa Armand Feigenbaum Philip Crosby Genichi Taguchi Tom Peters

W. Edwards DemingW. Edwards DemingSlide 1 of 5Slide 1 of 5

Preeminent(Most Excellent) Authority– W. Edwards Deming was widely accepted as the

world’s preeminent authority on quality management prior to his death on December 24, 1993.

– Deming gained credibility because of his influence on Japanese and American industry.

Contributions– Fourteen Points for Management– The Seven Deadly Diseases– Emphasized “continual neverending improvement.”


Deming’s 14 Points for Management– While Deming espoused the belief that theory was

important to the understanding of quality improvement, the closest he ever came to expounding a theory was in his 14 points for management.

– Taken as a whole, the 14 points represent many of the key principles that provide the basis for quality management in many organizations.

1. Create constancy of purpose.

2. Adopt a new philosophy.3. Cease mass inspection.4. End awarding business on

the basis of price tag.5. Constantly improve the

system.6. Institute training on the job.7. Improve leadership.

8. Drive out fear.9. Break down barriers

between departments.10. Eliminate slogans.11. Eliminate work

standards.12. Remove barriers to pride.13. Institute education and

self-improvement.14. Put everybody to work.

Deming’s 14 Points for Management



1. Lack of constancy of purpose.

2. Emphasis on short-term profits.

3. Evaluation of performance, merit rating, or annual review.

4. Mobility of management.

5. Running a company on visible figures alone.

6. Excessive medical costs for employee health care.

7. Excessive costs of warrantees.

Deming’s 7 Deadly Diseases


Visionaryleadership

ProcessManagement

Customersatisfaction

Causal Direction Feedback Mechanisms

Internaland externalcooperation

Learning

Organizational

System

Continuousimprovement

Employeefulfillment

Process

Outcomes

Theoretical Model Underlying the Deming Method

Joseph M. JuranJoseph M. JuranSlide 1 of 5Slide 1 of 5

Juran’s Approach– Juran tends to take a more strategic and planning-

based approach to improvement than does Deming.

– Juran promotes the view that organizational quality problems are largely the result of insufficient and ineffective planning for quality.

Key Contributions– Juran Trilogy

– Control versus Breakthrough

– Project-by-Project Improvement

– Pareto Analysis


The Juran Trilogy:

Three basic processes that are essential for

managing to improve quality.

PlanningPlanning ImprovementImprovement

ControlControl


Control versus Breakthrough– According to Juran, control is a process-related

activity that ensures processes are stable and provides a relatively consistent outcome.

• Control involves gathering data about a process to ensure that the process is consistent.

– Breakthrough improvement implies that the process has been studied and some major improvement has resulted in large, nonrandom improvement to the process.

– It is important to understand that control and breakthrough-related activities should occur simultaneously.


Project-by-Project Improvement– Juran teaches that improvement in organizations is

accomplished on a project-by-project basis “and in no other way.”

– The project-to-project approach advocated by Juran is a planning-based approach to quality improvement.

– Managers must prioritize which project will be undertaken first based on financial return.

– This means that analysts must use the language of management, that is, money, in order to help determine which projects should be undertaken.


Pareto Analysis– Joseph Juran identified an economic concept that

he applied to quality problems.– The economic concept is called Pareto’s law or

the 80/20 rule.– Using Pareto’s law, we see that the majority of

quality problems are caused by relatively few causes.

Kaoru IshikawaKaoru IshikawaSlide 1 of 2Slide 1 of 2

Ishikawa’s Primary Contributions– Perhaps Ishikawa’s greatest achievement was the

development and dissemination of the basic seven tools of quality (B7).

– As the developer of these tools, Ishikawa is credited with democratizing statistics.

– Ishikawa felt that to be successful, firms must make everyone responsible for statistical analysis and interpretation.

Kaoru IshikawaKaoru IshikawaSlide 2 of 2Slide 2 of 2

Ishikawa’s Quality Philosophy– Ishikawa spent his life working to improve quality

in Japan.– His ideas were synthesized into 11 points that

made up his quality philosophy.– Ishikawa is often overlooked in the U.S.; however,

every firm that pursues quality improvement will use his tools.

Armand FeigenbaumArmand FeigenbaumSlide 1 of 3Slide 1 of 3

Feigenbaum’s primary contribution to quality thinking in America was his assertion that the entire organization should be involved in improving quality.

He was the first in the U.S. to move quality from the offices of the specialists back to operating workers. This occurred in the 1950s.

Contributions– Three-step process to improving quality.

– Four deadly sins that impede quality improvement.

– Nineteen steps for improving quality.


Feigenbaum proposes a three-step process

to improving quality.

QualityImprovement

QualityImprovement

OrganizationalCommitment

OrganizationalCommitment

QualityTechnology

QualityTechnology

Motivated by leadershipIncludes statistics

and machinery thatcan improve quality

Includes everyonein the quality struggle


Four Deadly Sins (Major Impediments to Improving Quality)– Hothouse quality refers to those quality programs that

receive a lot of hoopla and no follow-through.

– Wishful thinking occurs with those who would pursue protectionism to keep American firms from having to compete on quality.

– Producing overseas is a panacea(cure) sometimes undertaken by managers who wish that out of sight, out of mind could solve quality related problems.

– Confining quality to the factory means that quality has historically just been viewed as a shop floor concern.

Philip CrosbyPhilip Crosby

Crosby became very well known for his authorship of the book Quality is Free.– The primary thesis of this book was that quality, as a

managed process, can be a source of profit for an organization.

Crosby specifies a quality improvement program consisting of fourteen steps.– These steps underlie the Crosby zero defects

approach to quality improvement.

– His approach emphasizes the behavioral and motivational aspects of quality improvement rather than statistical approaches.

Genichi TaguchiGenichi TaguchiSlide 1 of 3Slide 1 of 3

The Taguchi method was first introduced by Dr. Genichi Taguchi to AT&T Bell Labs in 1980.

Due to its increased acceptance and utilization, the Taguchi method for improving quality is now commonly viewed to be comparable in importance to the Deming approach, and the Ishikawa concept of total quality management.

Unique Aspects of the Taguchi Method– Definition of quality

– Quality loss function

– Robust design


The Taguchi Method Provides

1. A basis for determining the functional relationship between controllable product or service design factors and the outcomes of a process.

2. A method for adjusting the mean of a process by optimizing controllable variables.

3. A procedure for examining the relationship between random noise in the process and product or service variability.


Definition of Quality– In Taguchi’s terms, “ideal quality” refers to a reference point for

determining the quality level of a product or service.

Quality Loss Function– Normally, when specifications are set, a target is specified with

some allowance for variation.

– Taguchi states that any deviation from target specs results in loss to society produced.

Robust Design– Products and services should be designed so that they are

inherently defect free and of high quality.

Tom PetersTom PetersSlide 1 of 3Slide 1 of 3

Tom Peters is a noted author, consultant, and speaker who is widely recognized.

Peters co-authored the book In Search Of Excellence.

– The research for the book involved a case study of several firms and resulted in eight basic practices found in excellent firms.

The eight practices identified with excellent firms include a bias for action, getting close to the customer, promoting entrepreneurship, productivity through people, value-driven management, sticking to the core competencies, lean staff, and implementing appropriate amounts of supervision and empowerment.

Actively create a quality revolution Put the customer first in everything you do Listen actively to all stakeholders Invest in people, training, education and

recruitment Openly reward, recognize and support

productivity innovation Openly support failures where people have tried

to improve Involve everyone in everything at all times


Setup simple and understandable measures Fight against bureaucracy and inflexibility Look through a different mirror: step outside the

company and look at it from a different perspective Teamwork and trust: develop strong interpersonal

and team skills Work on attitudes and attention to detail: get things

done Be consistent and strive for improvements in all

areas


Viewing Quality From a Contingency Viewing Quality From a Contingency PerspectivePerspective

There is a great deal of contradictory information about how firms should improve quality.

A variety of approaches can work to improve quality. The successful firms adopt aspects of each of the various

approaches that help them improve. The keys to the contingency approach are an understanding

of quality approaches, an understanding of the business, and the creative application of these approaches to the business.

Resolving the Differences in QualityResolving the Differences in QualityApproaches, An Integrative ViewApproaches, An Integrative View

Resolving the Differences– There are many differences between the

approaches to quality management proposed by the “Gurus”

– However, rather than focusing on differences, it is instructional to review the literature to identify common themes and messages.

A Categorization of Quality A Categorization of Quality Management Content VariablesManagement Content Variables

Outer RingEnvironmental characteristics

Quality breakthrough

Inner RingData gathering

Strategic planning

Quality department focusTeam Approach

CoreLeadership

Employee improvementQuality assurance

Customer rolePhilosophy

Quality Management Content VariablesQuality Management Content VariablesSlide 1 of 5Slide 1 of 5

Core Variables– Leadership– Employee

Improvement– Quality Assurance– Customer Focus– Quality Philosophy– Breakthrough

Inner and Outer Ring Variables– Information Analysis– Strategic Planning– Environment or

Infrastructure– Team Approach– Focus of the Quality

Department


Leadership– The role of the leader in being the champion and

major force behind quality improvement is critical. Employee Improvement

– Once the leader is enlightened and motivated to go forward in the quality effort, employees must be trained and developed.

Quality Assurance– Quality experts agree that quality can be assured only

during the design phase. Therefore, effort must be invested in designing products, services, and processes so that they are consistently of high quality.


Customer Focus– An understanding of the customer is key to quality

management efforts. Quality Philosophy

– Adoption of a philosophy toward quality improvement is also important. Establishing a clear message provides a company with a map to follow during their quest for improvement.


Information Analysis– Fact-based improvement refers to an approach that

favors information gathering and analysis Strategic Planning

– This provides a framework for a rational quality strategy that will provide alignment with key business factors.

Environment or Infrastructure– Quality environment or infrastructure must be created

that supports quality management efforts. Team Approach

– One of the contemporary approaches to quality management learned from the Japanese is teamwork.


Role of the Quality Department– As a result of the dispersion of responsibility for

quality, the role of the quality department has changed significantly.

– Rather than performing the policing function, these departments are filling more of a coaching role.

Breakthrough– The need to make large improvements is not

precluded by continuous improvement.

– Firms must find ways to achieve radical improvements.

Theoretical Framework for Quality Theoretical Framework for Quality ManagementManagement

Quality management begins with leadership. The quality philosophy influences decision making

concerning quality strategy, quality assurance, and employee improvement.

The customer is the focus of all activities of the firm. Major activities forming the quality system

– Breakthrough improvement

– Team building

– Data gathering

– Strategic planning

– Quality department coaching

Theoretical Framework for Quality Theoretical Framework for Quality ManagementManagement

Leadership

Employee Improvement

Philosophy Development

Quality Assurance

Customer FocusTeam

Building

StrategicPlanning

QualityDept. Role

InformationAnalysis

Breakthrough

Figure 2.8

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Gurus