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RD-525 Principles of Quality Management

Dr. Harvey Hoffman



Email Contact: hhoffman@fairfield.edu

Introduction Quality Gurus

Fairfield University
Qualitys
Foundation
What is Quality
FEIGENBAUM (1983) DEFINED QUALITY AS FOLLOWS
Quality is a customer determination which is based on the customers actual experience
with the product or service, measured against his or her requirementsstated or
unstated, conscious or merely sensed, technically operational or entirely subjective
always representing a moving target in a competitive market.
Quality is total composite product (goods and services) characteristics, through which
the product in use will meet the needs and expectations of the customers.
Concept of quality must start with identification of customer quality requirements and
must end only when the finished product is placed into the hands of the customer who
remains satisfied through various stages of relationship with the seller
American Society of Quality Control (ASQC) and American National Standard Institute (ANSI)
defined
Quality is totality of features and characteristics of product (goods and services) that
bears on its ability to satisfy given needs
Approaches to Define Quality
Transcendent Approach
Quality is absolute and universally recognisable.
It is common notion used by laymen
There is no subjective judgement and is estimated by looking at the product
Product Based Approach
Attributes of a particular product in a specific category
These attributes are accepted as bench of quality by the industry
Others in the same industry try to produce close to this quality
Approaches to Define Quality
User Based Approach
Defined as Fitness for use
Viewed from users perspective and is dependent on how well does the product meet
needs of the consumer.
Also known as Customer Oriented Approach
Production Based Approach
An outcome of engineering or operational excellence and is measured in terms of
quality of conformance
The producer has specifications and produces the product as per the specifications
Attributes of Quality
Durability
Length of time a product can be used before it deteriorates or becomes non functional
Serviceability
Speed, competence & courtesy of providing ASS
Aesthetics
Look, feel sound, taste, smell
Perceived Quality
Resulting from advertisement, image, brand name, earlier use, hearsay
Evolution of Total Quality Management
Evolution of Quality Management
Mass Inspection
Inspecting
Salvaging
Sorting
Grading
Rectifying
Rejecting
Quality Control
Quality manuals
Product testing using SQC
Basic quality planning
Quality Assurance
Emphasis on prevention
Proactive approach using SPC
Advance quality planning
Total Quality Control
All aspects of quality of inputs
Testing equipments
Control on processes
Evolution of Quality Management
Company wide Quality Control
Measured in all functions connected with production such as
R&D
Design
Engineering
Purchasing,
Operations etc
Total Quality Management
Measured in all aspects of business,
Top management commitment
Continuous improvement
Involvement & participation of employees
Evolution of Quality Management
Quality
Evolution
1930s
Shewart Cycle
1950s
Deming in Japan
1980
Productivity / Quality Circles
1985
Deming/Crosby/Juran
Late 1980s
Total Quality Mgmt
1990s
Baldrige Criteria
Current
Six Sigma
Lean Management
Evolution of Quality Management
Quality Assurance vs. Quality Control
True Value vs. Measured Value
True Value
The known, accepted value of a quantifiable property
Measured Value
The result of an individuals measurement of a quantifiable property
Accuracy vs. Precision
Accuracy
How well a measurement agrees with an accepted value
Precision
How well a series of measurements agree with each other
Accuracy vs. Precision
Systematic vs.
Random Errors
Systematic Error
Avoidable error due to controllable variables in a measurement.
Random Errors
Unavoidable errors that are always present in any measurement. Impossible to eliminate
Quality Basics
Processes and Process Improvement
A process takes inputs and performs value-added activities on those inputs to create an
output.
Quality Basics
Variation:
Variation is present in any natural process, no two products or occurrences are exactly
alike.
Specifications:
Specifications state product or service characteristics in terms of a desired target value
or dimension.
Tolerance Limits:
Tolerance limits show the permissible changes in the dimension of a quality
characteristic.
Quality Basics
History of Quality
Pre-history
Tarxien and Hagar Qim Temples in Malta
3200 2500 B.C.E.
China
Decree on standards for materials
Romans
Road building specifications
Greeks
Temple design requirements
Middle Ages
Cathedral design requirements
Statistical Approaches to Quality
Western Electric 1920s
Quality Pioneers
Walter Shewhart
W. Edwards Deming
Joseph M. Juran
Harold Dodge - originating acceptance sampling plans for putting inspection operations
on a scientific basis in terms of controllable risks.
George Edwards- first president of American Society for Quality Control
Quality Basics
The Evolution of Modern Quality
Inspection refers to those activities designed to detect or find non-conformances
existing in already completed products or services.
Quality Control refers to the use of specifications and inspection of completed parts,
subassemblies, and products to design, produce, review, sustain, and improve the
quality of a product or service.
Quality Basics
The Evolution of Modern Quality
Statistical Quality Control involves collecting statistical data, analyzing it, and
interpreting it to solve problems.
Statistical Process Control prevents defects by applying statistical methods to control
the processes making products or providing services.
Quality Basics
The Evolution of Modern Quality
Total Quality Management is a management approach that places emphasis on
continuous process and system improvement as a means of achieving customer
satisfaction to ensure long-term company success.
Continuous Improvement focuses on improving processes in order to enable companies
to give customers what they want the first time, every time.
Modern Importance of Quality
The first job we have is to turn out quality merchandise that consumers will buy and keep on buying.
If we produce it efficiently and economically, we will earn a profit, in which you will share.
- William Cooper Procter
Key Idea
Quality Assurance
...is any action directed toward providing customers with goods and services of appropriate quality.
History of Quality Assurance
(1 of 3)
Skilled craftsmanship during Middle Ages
Industrial Revolution: rise of inspection and separate quality departments
Early 20
th
Century: statistical methods at Bell System
Quality control during World War II
Post-war Japan: evolution of quality management
History of Quality Assurance
(2 of 3)
Quality awareness in U.S. manufacturing industry during 1980s: from Little Q to Big Q - Total
Quality Management
Big Q versus Little q
q = the products in manufacturing
Q = ALL processes in all industries
Malcolm Baldrige National Quality Award (1987)
Disappointments and criticism
Key Idea
History of Quality Assurance
(3 of 3)
Emergence of quality management in service industries, government, health care, and
education
Evolution of quality to performance excellence
Deming Award
Baldrige Award
ISO
Growth and adoption of Six Sigma
Current and future challenge: continue to apply the principles of quality and performance
excellence. Quality is a race without a finish line.
Contemporary Influences on Quality
Globalization
Innovation/creativity/change
Outsourcing
Consumer sophistication
Value creation
Accreditation
Legislations
Changes in quality expectations
Key Idea
Customer-Driven Quality
Meeting or exceeding customer expectations
Customers can be...
Consumers
External customers
Internal customers
Total Quality
People-focused management system
Focus on increasing customer satisfaction and reducing costs
A systems approach that integrates organizational functions and the entire supply chain
Stresses learning and adaptation to change
Based on the scientific method
Principles of Total Quality
Customer and stakeholder focus
Participation and teamwork
Process focus supported by continuous improvement and learning
Customer and Stakeholder Focus
Customer is principal judge of quality
Organizations must first understand customers needs and expectations in order to meet and
exceed them
Organizations must build relationships with customers
Customers include employees and society at large
Key Idea
Participation and Teamwork
Employees know their jobs best and therefore, how to improve them
Management must develop the systems and procedures that foster participation and teamwork
Empowerment better serves customers, and creates trust and motivation
Teamwork and partnerships must exist both horizontally and vertically
Key Idea
Process Focus and Continuous Improvement
A process is how work creates value for customers
Processes transform inputs (facilities, materials, capital, equipment, people, and energy) into
outputs (goods and services)
Most processes are cross-functional
Key Idea
Continuous Improvement
Enhancing value through new products and services
Reducing errors, defects, waste, and costs
Increasing productivity and effectiveness
Improving responsiveness and cycle time performance
Key Idea
Demings View of a
Production System
Learning
The foundation for improvement Understanding why changes are successful through
feedback between practices and results, which leads to new goals and approaches
Learning cycle:
Planning
Execution of plans
Assessment of progress
Revision of plans based on assessment findings
Infrastructure, Practices, and Tools
TQ Infrastructure
Customer relationship management
Leadership and strategic planning
Human resources management
Process management
Information and knowledge management
Competitive Advantage
Is driven by customer wants and needs
Makes significant contribution to business success
Matches organizations unique resources with opportunities
Is durable and lasting
Provides basis for further improvement
Provides direction and motivation
Quality and Profitability
Key Idea
Three Levels of Quality
Organizational level: meeting external customer requirements
Process level: linking external and internal customer requirements
Performer/job level: meeting internal customer requirements
Quality and Personal Values
Personal initiative has a positive impact on business success
Quality-focused individuals often exceed customer expectations
Quality begins with personal attitudes
Attitudes can be changed through awareness and effort (e.g., personal quality checklists)
Unless quality is internalized at the personal level, it will never become rooted in the culture of
an organization. Thus, quality must begin at a personal level (and that means you!).
Gurus/Advocates of Quality
Gurus/Advocates of Quality
Gurus/Advocates of Quality
Shewhart, Deming and Juran The Quality Dream Team
Juran and Deming started at Western Electrics Hawthorne plant in Chicago
Juran and Deming were Influenced by Walter Shewhart, a pioneer in statistical methods.
Both received an invitation to work in Japan from the Union of Japanese Scientists and
Engineers.
Deming taught Japanese engineers and management statistical methods and how to view
production as a system that included suppliers and consumers.
Juran delivered lectures in Japan about managing for quality.
Quality Advocates
Dr. Walter Shewhart (1891-1967)
Father of Statistical Process Control
Control of Quality of Manufactured Product
Van Nostrand Reinhold, 1931
Defined two aspects of quality
What the customer wants (subjective)
What the physical properties are (objective)
Quality Advocates
Dr. Shewhart was the first person to encourage the use of easy-to-use statistics to remove
variation
common cause variation normal process fluctuations
special cause variation uncontrolled influence
Quality Advocates
Dr. Shewhart proposed that controlled and uncontrolled variation exists.
A phenomenon will be said to be controlled when, through the use of past experience,
we can predict, at least within limits, how the phenomenon may be expected to vary in
the future. Here it is understood that prediction within limits means that we can state,
at least approximately, the probability that the observed phenomenon will fall within
the given limits.
Quality Advocates
Dr. Walter Shewhart proposed:
Common (Chance) Causes
Controlled variation that is present in a process due to the very nature of the
process.
Special (Assignable) Causes
Uncontrolled variation caused by something that is not normally part of the
process.
Quality Advocates
Dr. Shewhart: Inventor of Control Charts
Statistical Process Control (SPC) charts were originally called Shewhart charts!
Regular plotting of data on an SPC chart will tell if the process is out-of-control
(subject to special causes)
Quality Advocates
Dr. Shewhart originated the PLAN, DO, STUDY, ACT cycle for analysis of problems
Frequently called Dr. Demings Plan-Do-Study-Act Cycle
Deming
Joseph M. Juran
Defines quality as a composition of two different, though related concepts:
One form of quality is income-oriented, and consists of those features of the product which
meet customer needs and thereby produce income; in this sense, higher quality usually costs
more
A second form of quality is cost-oriented and consists of freedom from failures and deficiencies;
in this sense, higher quality usually costs less
Management of quality, according to Juran, involves the elements of quality planning, quality
control, and quality improvement; these form Jurans so-called Trilogy. To support this triad,
Juran has formulated a list of nine nondelegatable responsibilities for upper managers:
Responsibilities for Upper Managers
Create awareness of the need and opportunity for improvement.
Mandate quality improvement; make it a part of every job description.
Create the infrastructure: establish a quality council; select projects for improvement; appoint
teams; provide facilitators.
Provide training in how to improve quality.
Review progress regularly.
Give recognition to the winning teams
Propagandize the results.
Revise the reward system to enforce the rate of improvement.
Maintain the momentum by enlarging the business plan to include goals for quality
improvement.
Jurans Quality Planning Process
Identify the customers; anyone who will be impacted is a customer, whether internal or
external.
Determine the customers needs.
Create product features which can meet the customers needs.
Create processes which are capable of producing the product features under operating
conditions.
Transfer the processes to the operating forces
Jurans Feedback Loop Approach to Quality Control
Evaluate actual performance levels.
Compare actual performance levels to targeted performance levels.
Take action to close or eliminate the gap between these two levels.
Quality becomes a part of each upper management agenda.
Quality goals enter the business plan.
Stretch goals are derived from benchmarking; focus is on the customer and on meeting
competition; there are goals for annual quality improvement
Juran & Continuous Improvement
Total Quality Management
Goals are deployed to the action levels
Training is done at all levels.
Measurement is established throughout.
Upper managers regularly review progress against goals.
Recognition is given for superior performance.
The reward system is revised
Dr. Jurans Views
Dr. Juran believes that self-directed teams will ultimately become a major successor to Taylorism.
Some of Dr. Jurans other views include the following:
FIRST, the product development cycle should be shortened through use of participative planning,
concurrent engineering, and the like.
SECOND, supplier relations should be such that a minimal number of suppliers are used; teamwork
between a company and its suppliers would be based on mutual trust and contracts should be
greater duration.
THIRD, training should be results-oriented rather than tool-oriented; what is desired is related more
toward behavior change than toward education.

Philip B. Crosby (1926-2001):
Zero Defects
Effectively this concept implies that poor or high quality has little or no meaning and that in fact
it is either conformance or non- conformance to customer/product requirements which is of central
importance. Quality management equates to defect prevention.
Crosbys 14 Steps
to Quality Improvement
Make it clear that management is committed to quality
Form quality improvement teams with representatives from each department
Determine how to measure where current and potential quality problems exist
Evaluate the cost of quality and explain its use as a management tool
Raise the quality awareness and personal concern of all employees
Take formal actions to correct problems identified through previous steps
Establish a committee for the zero defects program
Train all employees to actively carry out their part of the quality improvement program
Hold a zero defects day to let all employees realize there has been a change
Encourage individuals to establish improvement goals for themselves and their groups
Encourage employees to communicate to management the obstacles they face in attaining their
improvement
Recognize and appreciate those who participate
Establish quality councils to communicate on a regular basis
Do it all over again to emphasize that the quality improvement program never ends
Crosbys Absolutes
Quality means conformance to requirements if you intend to do it right the first time, then
everyone must know what it is
Quality comes from prevention. Vaccination is the way to prevent organizational disease.
Prevention comes from training, discipline, example, leadership, and so forth
Quality performance standard is zero defects errors should not be tolerated
Quality measurement is the price of nonconformance
Armand V. Feigenbaum
Three Steps to Quality
Quality leadership
Modern quality technology
Commitment of the organization
Armand V. Feigenbaum Four Deadly Sins
Hothouse quality
Wishful thinking
Producing overseas
Confining quality to the factory
Nineteen Steps
to Quality Improvement
TQC is defined as:
An effective system for integrating the quality maintenance and quality improvement efforts of
the various sectors of an organization so as to enable marketing, engineering, production, and
service at the most economic levels which will allow for full customer satisfaction.
Quality vs. quality. Q refers to luxurious quality, whereas q refers to high quality, not
necessarily luxury. Regardless of organizational niche, q must be closely maintained and
improved.
The C or control in TQC represents a management tool:
Setting quality standards
Acting when standards are exceeded
Planning for improvements in the standards
Appraising conformance to those standards
INTEGRATION: QC requires integration of typically un- coordinated activities into a framework.
This framework should assign responsibility for customer-driven quality efforts across all
activities of the organization.
Quality increases profits. Properly carried out, TQC programs are highly cost effective since they
result in improved levels of customer satisfaction, reduced operating losses and field service
costs, and improved use of resources. Without quality, customers will not return. Without
repeat business, no business will survive.
Quality is an expectation, not a desire. In Demings terms, quality begets quality; as one
supplier becomes quality oriented, others must follow suit.
The greatest quality improvements are likely to come from people improving the process, not
through adding machines.
TQC applies to all products and services no person, process, or department is exempt.
Quality is a total life-cycle consideration. QC enters into all phases of a production process,
starting with customer specifications, through design engineering and assembly, to shipment,
installation, and field service.
Control the process through control of new designs, incoming material, product, and process.
A total quality system is the agreed company-wide and plant-wide operating work structure,
documented in effective, integrated technical and managerial procedures, for guiding the
coordinated actions of all resources including people, machines, and information in the best
and most practical ways to assure customer quality satisfaction and economical costs of
quality. The quality system provides integrated and continuous control to all key activities,
making it truly organizational in scope.
Benefits accruing from TQC programs tend to include improvement in product quality and
design, reduced operating costs and losses, improved employee morale, and reduction of
production line bottlenecks.
Quality costs are a means for measuring and optimizing TQC activities. Operating costs are
divided into four different categories: prevention costs, appraisal costs, internal failure costs,
and external failure costs.
The tenet that quality is everybodys job must be clearly demonstrated. Every organizational
component has a quality-related responsibility. This must be explicit and visible.
Organizations need quality facilitators who can disseminate information, provide training and so
forth not quality police.
TQC is not a temporary quality improvement plan, it is guiding an ongoing practice and
philosophy.
Statistical methods should be used whenever and wherever they are useful, but they are only
one part of TQC and are not TQC itself.
The best people-oriented activities should be implemented before resorting to automation,
which is not a cure-all and can provide the stuff of which implementation nightmares are made.
Control quality at its source quality should be an upstream and everywhere in the stream
concept and practice, not merely downstream as has too often been the case.
Deming
Basic philosophy
Continual improvement through lifelong learning.
System of Profound Knowledge
Deming advocated a new approach to management.
1) Appreciation for a system.
2) Knowledge about variation.
3) Theory of knowledge.
4) Psychology.
Fourteen Points
W. Edwards Deming (1900-1993)
Dr. W. Edwards Deming:
A System of Profound Knowledge
Dr. Deming (1900-1993) Developed a Four-Part System of Profound Knowledge that he felt
should be a fundamental management concept. These four elements of Dr. Demings system
are:
Appreciation for a System;
Theory of Variation (Statistical Theory);
Theory of Knowledge;
Knowledge of Psychology.
Fourteen Points for Management:
Dr. Demings System
of Profound Knowledge
Profound Knowledge:
Appreciation of a System
Managing a system is action based on rational prediction.
Rational prediction requires systematic learning and comparing predictions of short-term and
long-term results from possible alternative courses of action.
What is a System?
A system is a series of functions or activities (subprocesses, stages - that is, components) within
an organization that work together for the aim of the organization.
In almost all systems there is system interdependence between components and the greater
this interdependence, the greater the need for communication & cooperation between these
components - and this includes people!
The components need not all be clearly defined & documented: people may merely do what
needs to be done. Managing a system requires knowledge of these interrelationships.
The aim of the system must be clear to everyone in the system. Lacking aim - there is no system!
The aim is a value judgement.
Dr. Deming proposed an aim for every organization -- for everyone to gain -- stockholders,
employees, suppliers, customers, community, the environment - over the long-term.
System Optimization:
Simply stated - this is accomplishment of the aim, so that everyone in the system can benefit.
Failure to optimize causes loss to everybody in the system.
Optimization requires management of the system so that the responsibility of an organizations
leadership is to strive toward optimization of the system, keeping it optimized over time.
Additionally, leadership should be ready to push the envelope of the system to better serve the
aim.
If the aim, size or boundary of the organization changes, then the functions of the components
will change for optimization of the new system. Time brings changes that must be managed
to achieve optimization. Every system requires guidance.
The performance of any component is to be judged in terms of its contribution to the aim of the
system, not for its individual production or profit, nor for any other competitive measure. Some
components may operate at a loss to themselves, for optimization of the whole system,
including the components that take the loss.
Any system that results in a win-lose structure is suboptimized!
Suboptimization in the Management of People: Causing Losses Unknown & Unknowable
The merit system -- a destroyer of intrinsic motivation with emphasis on rank - not on work.
Grading in school - from youth through university.
MBO (Management by Objective) and MBIR (Management by Imposition of Results).
Incentive pay.
Business plans - each division with its own business plan, not coordinated toward an aim.
Work standards for production & quotas for sales -- quotas for accidents and breakdowns.
Competition for market share.
Barriers to trade.
Profound Knowledge:
Statistical Theory of Variation
Some understanding of variation, including appreciation of a stable system, and some
understanding of special causes and common causes of variation, is essential for managing -
including leading people.
There will always be variation: between people, output, service, product. What is the variation
trying to tell us about a process and about the people that work in it?
Understanding the capability of a process: When do data indicate that a process is stable? The
distribution of output of a stable system is predictable with a high degree of confidence. A
process that is stable (in a state of statistical control) has a definable capability.
The leadership of people (manager, leader, supervisor, teacher) is entirely different in two
states: stable & unstable. Confusing the two states can lead to calamity.
Profound Knowledge:
Statistical Theory of Variation
Knowledge about different sources of uncertainty in the system of measurement: Is the
measurement system stable, in statistical control?
There are two costly mistakes in attempts to improve a process:
To treat as a special cause any outcome, fault, complaint, mistake, breakdown, accident,
shortage, when actually it came from common causes -- this is called tampering.
Conversely, to attribute all of these to common causes, when in fact it may be a
special or assignable cause -- the ostrich approach.
Knowledge of procedures aimed at minimum economic loss from these two mistakes --
Shewhart control charts.
Knowledge about interaction of forces. Interaction may reinforce efforts, or it may nullify
efforts.
Profound Knowledge:
Statistical Theory of Variation
Understanding the distinction between enumerative studies and analytical problems.
An enumerative study produces information about a frame. The theory of sampling and
design of experiments are for enumerative studies -- the U.S. Census is an enumerative
study. Another example is a shipload of iron ore -- both buyer & seller need to know
how much iron is on board.
The interpretation of results of a test or experiment is something else -- it is prediction
that a specific change in a process or procedure will be a wise choice, or that no change
would be better. Either way the choice is a prediction. This is referred to as an analytical
problem.
Knowledge about loss functions in relation to system performance optimization. Which
quality characteristic has the steepest loss function, and is hence most critical for
leadership to work on?
Profound Knowledge:
Statistical Theory of Variation
Knowledge about the losses that come from unfortunate successive application of random
forces or random changes that may individually be unimportant. Examples include:
Working training worker training worker, in succession.
Executives working with best efforts on policy, but without guidance of profound
knowledge.
Enlargement of a committee does not necessarily improve the results of the efforts of the
committee. Enlargement of a committee is not a way to acquire profound knowledge.
As a good rule, profound knowledge must come from the outside and by invitation. Profound
knowledge cannot be forced onto anyone.
Profound Knowledge:
Theory of Knowledge
Any rational plan, however simple, requires prediction concerning conditions, behavior,
comparison of performance of each of two procedures or materials.
A statement devoid of prediction or explanation of past events is no help in management of a
system.
Without theory, there is nothing to modify or to learn by comparison with experience.
Interpretation of data from a test or experiment is prediction -- what will happen on application
of the conclusions or recommendations that are drawn from a test or experiment? This
prediction will depend largely on knowledge of the subject matter. It is only in the state of
statistical control that statistical theory aids prediction.
Profound Knowledge:
Theory of Knowledge
An example is no help in management unless studied with the aid of theory. Copying a
successful example, without understanding it with the aid of theory, may lead to disaster.
Communication and negotiation requires operational definitions to achieve optimization.
No number of examples establishes a theory, yet a single unexplained failure of a theory
requires modification or even abandonment of a theory.
There is no true value of any characteristic, state, or condition that is defined in terms of
measurement or observation. Change of procedure for measurement or observation produces a
new number.
There is no such thing as a fact concerning an empirical observation. Any two people may have
different ideas about what is important.
Profound Knowledge:
Knowledge of Psychology
Psychology may help us understand people and interactions between people and circumstances.
People are different from one another. A leader must be aware of these differences, and use
them to optimize everybodys abilities and inclinations. Management of industry, education and
government operated today under the supposition that all people are alike.
People learn in different ways and at different speeds. Some learn best by reading, some by
listening, some by watching pictures - still or moving, some by observation, others by doing.
By virtue of her authority, a leader is obligated to make changes in the system of management
that will bring improvement.
Profound Knowledge:
Knowledge of Psychology - Motivation
There is intrinsic motivation, extrinsic motivation, and over-justification.
People are born with a need for relationships with other people, and with the need to be loved
and esteemed by others. There is an innate need for self-esteem and respect.
Circumstances provide some people with dignity & self-esteem while denying others these
advantages. Management that denies their employees dignity & self-esteem will smother
intrinsic motivation.
Some extrinsic motivators rob employees of dignity and self-esteem. If for higher pay or for a
higher performance evaluation, I do what I know to be wrong, then I am robbed of dignity &
self-esteem.
Profound Knowledge:
Knowledge of Psychology - Motivation
Extrinsic motivation is submission to external forces that neutralize intrinsic motivation -- one is
ruled by these forces. Extrinsic motivation is a zero-defect mentality.
Removal of a demotivator does not create motivation.
Overjustification is a result of faulty reward systems -- it is resignation to outside forces.
Dr. W. Edwards Deming
14 Points for Management


Create Constancy of Purpose for
Product & Service Improvement
This implies: Faith in the future.
Create Constancy of Purpose for Product and Service Improvement
Continuous improvement of product and service: Obligation to the customer never ceases.
Status quo will not do.
Invest in the maintenance of equipment, furniture, and fixtures, and in new aids to production
in the office and in the plant.
Learn & Adopt the New Philosophy:
Both Executive Leadership & the Workforce
The cost of living depends inversely on the cost of goods and services that a given amount of
money will buy.
Reliable service reduces costs. Delays & mistakes raise costs.
Customers dont complain. They merely switch brands.
In earlier times virtually any system of management
would have been successful since there was little competition. In a competitive environment
quality must be pre-eminent.
Cease Dependence on
Mass Inspection
Quality comes not from inspection, but from improvement of the process.
The old way: Inspect bad quality out.
The new way: Build good quality in.
End the Practice of Awarding Business on Price Tag Alone
This leads to a proliferation of suppliers and hence an increase in the variability of materials and,
ultimately, the variability in the end product.
This leads to vendor hopping and reliance on specifications each of which is an obstacle to
continuous improvement.
Defects beget defects.
Good quality begets good
quality.
Price has no meaning without reference to the
quality that is being purchased.
Improve Constantly and Forever the System of Production & Service
Everyone and every department must devote themselves to constant improvement.
Management must lead the way.
The focus must be on improvement and not merely fire-fighting.
Institute Training & Retraining
Workers often learn duties and how to perform them from other employees who didnt know
how to perform them in the first place.
Similarly, workers often learn these things from unintelligible
instruction sets.
All employees will have to have some training in the importance
of variation and must be taught the basics of control charts.
When new equipment is purchased or new processes are brought on line, there must be
appropriate training/retraining.
Teach & Institute Leadership
Leadership is managements job.
Most managers/supervisors do not truly know (how to perform) the duties of the employees
they supervise.
A deaf ear is often turned to the voice of the employee. Often an employee knows not only
what the problem is, but also how to solve it.
Drive Out Fear - Create Trust:
Create a Climate for Innovation
Most people on the job do not know how to properly perform their duties (including managers)
and are afraid to ask for fear of being viewed as incompetent, or of punitive measures being
taken, or of dismissal.
People must feel secure in their positions so that they can be effective improvement agents.

Optimize toward the aims and purposes of the company, the efforts of teams, groups & staff
areas.
Communication is vital to being
competitive via company-wide improvement.
Break Down Barriers Between Staff Areas


132 sl
Eliminate Slogans, Exhortation, and Targets for the Workforce
Numerical targets are useless unless methods for achieving them are


in place and the worker is performing within a stable system. Slogans generate frustration and
resentment -- implying the worker is intentionally holding back.
Eliminate Numerical Quotas
Quotas are an impediment to quality since they induce the worker to pass on work that is
substandard in an effort to meet the quota. This is a case of haste makes waste.
Piecework is demeaning.
A proper work standard defines what is and what is not acceptable in terms of quality.
Encourage Education & Self-Improvement for Everyone
It is not enough to have good people in your organization. They must continually
acquire new knowledge and skills in order to properly deal with new materials and methods and
to function as an agent for continuous improvement.
A company must make it clear that no one will lose their job due to productivity improvement.

In the Spirit of Continuous Improvement
What is the Next Turn in the Revolution?

Model for Quality Improvement - PDSA (Plan-Do-Study-Act)
PDSA, PDCA, the Deming Cycle, the Shewhart Cycle... it's all the same thing
Developed by Walter Shewhart during the 1930's. Promoted from the 1950s on by W. Edwards
Deming (Shewharts mentee).
Model for Quality Improvement - PDSA (Plan-Do-Study-Act)
1: Setting Aims: Ask What are we trying to accomplish? It may be reducing the clinic wait-time or
increasing beta-blocker use among patients with an acute myocardial infarction (AMI). The aim should
be time-specific and measurable, and define the population that will be affected.
2: Establish measures: Ask How will we know that a change is an improvement? Measures help the
team determine if a change leads to quantitative improvement.
3: Selecting Changes: Ask What changes can we make that will result in improvement? Improvement
requires change, but all change does not lead to improvement. It is the expertise of the team that will
determine which changes will lead to an improvement.
Sources: The Improvement Guide: A Practical Approach to Enhancing Organizational Performance.
Langley GL, Nolan KM, Nolan TW, Norman CL, Provost LP. San Francisco, California, USA: Jossey-Bass
Publishers; 1996.
Institute for Healthcare Improvement. Available at:
Http://www.ihi.org/IHI/Topics/Improvement/ImprovementMethods/HowToImprove/
Model for Improvement using PDSA (Plan-Do-Study-Act)
PDSA -Plan, Do, Study, Act - provides a way of testing ideas by starting small and building on the results.
With each cycle you gather more knowledge to help make the next improvement. By keeping the PDSA
activity small and simple, the organization can measure the effect of change over time.
(Plan-Do-Study-Act)
4: Testing Change: Ask How can we make changes in the real world setting?
Plan - answering the questions in the first three steps above setting aims, establishing measures, and
selecting changes.
Do - implementing the changes. It happens when nurses and physicians receive professional
development and patients are educated. It happens when the organization use evidence-based
interventions that help in providing consistency of care.
Study - evaluating the pilot change to see if it produced the desired effect.
Act - to adopt, reject or modify the change plan, so that the next cycle can begin.
The PDSA cycle offers a route for improvement in a systematic manner. Often the desired improvement
is not achieved in one cycle, and so the cycle is repeated. Even if the desired aim is achieved, new aims
and goals arise and the process begins with step one.
Model for Improvement using PDSA (Plan-Do-Study-Act)
5: Implementing changes: Ask We know this works what do we do now? After several successful
PDSA cycles the organization may wish to implement the change on a broader scale. For example, it will
move the new way of doing things from one floor to the entire hospital, or from one clinic to all the
clinics.
6: Spreading changes: Ask How can we help others bring about change? Share the changes with other
departments or organizations and spread best practices.
IT Strategy Using PDCA
Defining an Approach to Change
Will the team target all patients in the inpatient bell curve, or just a sub-group considered at-
risk (depicted in the outlying tail)? Is the quality of inpatient care which is not in the tail somehow
acceptable?
Graphs
Defining an Approach to Change
If the team can identify and define an inpatient sub-group at-risk, then improvement efforts could
conceivably focus just on these at-risk patients - this is similar to traditional Quality Assurance. Note
that even if tail events are eliminated, the quality of care for the rest of the inpatient population
(depicted by the unchanged position and shape of the bell curve) does not improve at all. While the
mean does move toward better care, this is due only to eliminating statistical outliers.

Defining an Approach to Change
If the team identifies a performance gap applicable to a wider patient population, the team may design
changes in processes with the potential for dramatic effect: improvement and standardization in
processes reduces variation (narrows the curve) and raises quality of care for all (shifts entire curve
toward better care). This radical change is what defines Quality Improvement.

Take Action to Accomplish the Transformation
sPlan: What could be the most important accomplishment of this team? What changes might
be desired? What data are available? Are new observations needed? If yes, plan a change or
test. Decide how you will use the observations.
Do: Search for data on hand that could answer the question put forth in the P stage. Or, carry
out the change or test decided upon, preferable on a small scale. This is often a Reduced
Implementation.
Study the effects of the change or test.
Standardize the approach with an eye toward portability of solution.
Act: What actions should be taken? Often this implies implementation on a broader scale.
Hold the Gain: Prove the gain to be sustainable. This may be concurrent with the next planning
stage of this repetitive cycle.
Demings Seven Deadly Diseases:
Quality Cancers
Lack of constancy of purpose
Demings Seven Deadly Diseases:
Quality Cancers
Demings Obstacles
Neglect of long-range planning and transformation
Supposition that problem solving, automation, gadgets and new machines will transform
industry
Search for examples that can be copied
Obsolete schools of Business
The misconceptions that, Anyone who comes to try to help us must understand all about our
business.
Blaming the workforce for problems
False starts
Meeting specifications
Our problems are different
Reliance on QC departments
Quality by inspection
The unmanned computer
Inadequate testing of prototypes.
Deming believed: Export anything to
a friendly country, except







American Management.
Deming Award
Establish in 1950 originally for Japanese companies for major advances in quality improvement
Deming award is given under jurisdiction of Japanese Union of Scientists & Engineers
Today the Deming award is awarded to non Japanese companies and even individuals
Other Major Contributors to Quality in the past 35 years
Genichi Taguchi
Kaoru Ishikawa
Masaaki Imai
Shigeo Shingo
Yoshio Kondo
Genichi Taguchi
His methodologies held ensure customer satisfaction
Taguchis Loss Function
Taguchi Method Design of Experiments
Taguchis Loss Function
A quality product is a product that causes a minimal loss (expressed in money!) to society during
it's entire life. The relation between this loss and the technical characteristics is expressed by
the loss function
Taguchi loss function
A way to show how each non-perfect part produced, results in a loss for the company.
Deming states that it shows "a minimal loss at the nominal value, and an ever-increasing loss
with departure either way from the nominal value." - W. Edwards Deming Out of the Crisis.
p.141
A technical definition is:
A parabolic representation that estimates the quality loss, expressed monetarily, that results when
quality characteristics deviate from the target values. The cost of this deviation increases quadratically
as the characteristic moves farther from the target value. - Ducan, William Total Quality Key Terms. p.
171
Genichi Taguchi
Pioneered a new perspective on quality based on the economic value of being on target and
reducing variation and dispelling the traditional view of conformance to specifications:
Taguchis Loss Function
Kaoru Ishikawa
Simplified statistical techniques for QC
Cause and Effect diagrams (Ishikawa Diagrams or Fish Bone Diagrams)
Company wide quality control
quality does not only mean the quality of product, but also of after sales service, quality
of management, the company itself and the human life
Kaoru Ishikawa
Dr. Ishikawa promoted the use of quality circles
Dr. Ishikawa focused on four areas to influence quality:
Market-in Quality
Worker Involvement
Quality Begins and Ends with Education
Selfless Personal Commitment
Ishikawa Diagram
Ishikawa Diagram
Diagrams which show the causes of a certain event
Three sets of causes
6 Ms
Machine
Method
Maintenance
Man
Mother Nature
Ishikawa Diagram
8 Ps
Price
Promotion
Process
Place/Plant
Policies
Procedures
Product (or Service)
4 Ss
Surroundings
Suppliers
Systems
Skills
Masaaki Imai
Introduced the concept of Kaizen or continuous improvement. Expanded work started by Juran
and Deming.
Shigeo Shingo
Fool-Proofing or Poke-Yoke
Source Inspection systems
No statistical sampling is necessary
Zero defects through good engineering and process investigation rather than slogans and
exhortations
Yoshio Kondo
Emphasized inter-relationship between quality and people
Creativity joy of thinking
Physical activity joy of working
Sociality joy of sharing pleasure and pain with colleagues