Productivity and Quality Management


Submitted to
Faisal Shah

Submitted by
NamraAshfaq FA07-BBA-053


5th October, 2010

COMSATS Institute of Information Technology
M.A Jinnah Building, Lahore Campus

as well as supervision of production workers. We are in a new economic age. Institute training on the job. 6. during World War II. to improve quality and productivity. 5. . 1900. Instead.WILLAM EDWARD DEMING He born on October 14. on a long-term relationship of loyalty and trust. Supervision of management is in need of overhaul. and to provide jobs. 4. The aim of supervision should be to help people and machines and gadgets to do a better job. 3. 7. One of the principles he propounded was that to stop dependence on mass inspection if you want to achieve quality. and thus constantly decrease costs. must learn their responsibilities. He is well known for his work in Japanwhere he guided top management about the improvement indesign. End the practice of awarding business on the basis of price tag. He died on December 20 in the year 1993. Improve constantly and forever the system of production and service. minimize total cost. Western management must awaken to the challenge. and take on leadership for change. so that everyone may work effectively for the company. Create constancy of purpose toward improvement of product and service. Adopt the new philosophy. Key principles 1. 8. with the aim to become competitive and stay in business. Dr. Eliminate the need for massive inspection by building quality into the product in the first place. He also advocated institute training for the improvements of skill. Drive out fear. William Edward Deming had a profound effect on the improvement of production in the USA. Dr Deming propounded 14 principles for the effective of a business. It is better to improve the process and ingrain quality in the product at the first place. Institute leadership. Move towards a single supplier for any one item. Cease dependence on inspection to achieve quality. quality testing of a product and sales he was a contributor of significance in making Japan a nation which produces high quality of innovative products. 2.

Institute a vigorous program of education and self-improvement. Substitute leadership. Improve constantly and forever the system of production and service. not as bits and pieces. The responsibility of supervisors must be changed from sheer numbers to quality. 10. Edwards Deming has been summarized as follows: "Dr. People in research. Break down barriers between departments. 12.´ In the 1970s. organizations can increase quality and simultaneously reduce costs (by reducing waste. rework. Eliminate work standards (quotas) on the factory floor. b.9. Substitute leadership. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. design. Such exhortations only create adversarial relationships. and production must work as a team. Eliminate slogans. The transformation is everybody's job. numerical goals. This means. Remove barriers that rob the hourly worker of his right to pride of workmanship. Dr. staff attrition and litigation while increasing customer loyalty). Eliminate management by numbers. Edwards Deming taught that by adopting appropriate principles of management. 13. to improve quality and productivity. to foresee problems of production and in use that may be encountered with the product or service. Put everybody in the company to work to accomplish the transformation." abolishment of the annual or merit rating and of management by objective. a. 14. 11. Eliminate management by objective. . Deming philosophy synopsis The philosophy of W. sales. inter alia. Deming's philosophy was summarized by some of his Japanese proponents with the following 'a'-versus-'b' comparison: (a) When people and organizations focus primarily on quality. W. The key is to practice continual improvement and think of manufacturing as a system. and thus constantly decrease costs. defined by the following ratio. and targets for the work force asking for zero defects and new levels of productivity. as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force. exhortations. b.

The Quality Trilogy emphasizes the roles of quality planning. Juran's philosophy includes the Quality Trilogy and the Quality Planning Roadmap.Juran on Leadership for Quality(1989). Other books includeJuran on Planning for Quality(1988). 1904 in Braila. of Western Electric (a Bell manufacturing company) in 1924. In 1952. Edward Deming helped arrange the meeting that led to this invitation and his many years of work with Japanese companies. government during World War II and afterward became a quality consultant.Juran on Quality by Design(1992).Quality Planning and Analysis(1993). as well as to support Strategic Quality Management. In 1934. Juran founded the Juran Center for Quality Improvement at the University of Minnesota and the Juran Institute. published in 1951. Juran's teaching and consulting career spanned more than seventy years. Juran was invited to Japan. He moved to the United States in 1912 at the age of 8. Quality planning's purpose is to provide operators with the ability to produce . JOSEP JURAN (B. after completing his B. Juran joined the inspection branch of the Hawthorne Co. Selected Jurans Quality Theories Juran's concepts can be used to establish a traditional quality system. Among other things. Romania. Juran's Quality Trilogy.Architect of Quality(2004) is his autobiography. when people and organizations focus primarily on costs. Juran was born on December 24. (b) However. S. quality control. and quality improvement. A quality professional from the beginning of his career. Dr. he became a quality manager. known as one of the foremost experts on quality in the world. He worked with the U. His third book. costs tend to rise and quality declines over time. in Electrical Engineering. was translated into Japanese.Quality tends to increase and costs fall over time. 1904) Dr.S.Juran's Quality Control Handbook. andA History of Managing for Quality(1995). Dr. DR.

Quality planning must be integrated into every aspect of the organization's work. Activities can then focus on another part of the trilogy. the third element of the Trilogy. and delivery to the customer. Quality control is used to prevent things from getting worse. and make it an integral part of daily work for individuals and teams. Quality improvement encompasses improvement of fitness-for-use and error reduction. Chronic waste should be considered an opportunity for quality improvement. service and process designs. optimizing . operations. such as strategic plans. In this aspect of the Quality Trilogy. In the quality planning stage. Quality control is the inspection part of the Quality Trilogy where operators compare actual performance with plans and resolve the differences. an organization must determine who the customers are and what they need. While up-front quality planning is what organizations should be doing. If quality planning is deficient. then chronic waste occurs. it is normal for organizations to focus their first quality efforts on quality control. establishing measurements based on customer needs. activities include inspection to determine percent defective (or first pass yield) and deviations from quality standards. develop processes which are able to deliver those products and services. The Quality Trilogy is depicted below in Figure 2. product. quality improvement. and transfer the plans to the operating forces.goods and services that can meet customers' needs. Juran's Quality Planning Road Map can be used by individuals and teams throughout the world as a checklist for understanding customer requirements. and is attained by applying breakthrough thinking. JURAN'S QUALITY PLANNING ROAD MAP. seeks a new level of performance that is superior to any previous level. develop the product or service features that meet customers' needs.

Juran. New York. Juran's Quality Planning Roadmap . Juran on Planning for Quality.M.Quality Trilogy Source: J. pp. The Free Press. An infrastructure for Quality must be Dr. Juran's Quality Trilogy and Quality Roadmap are not enough. 11-12. Productdesign and developing a process that is capable of meeting customer requirements. The Quality Planning Roadmap is used for Product and Process Development and is shown in Figure 3.

He is well known as an author and consultant and has written many articles and books. 1988." the quality department was responsible for quality. Juran. and teams must work on improvement projects. He is probably best known for his book Quality is Free(1979) and concepts such as . began writing articles for various journals.Source: J. and started his speaking career. Indiana. quality should become an integral part of the strategic plan. In 1955. PHILIP CROSSBY (1926±2001) Philip Bayard Crosby was born in Wheeling. implementing his pragmatic management philosophy. During his eight years with Martin Marietta. As people identify areas with improvement potential. During his fourteen years with ITT. Big "Q" allow workers to regain pride in workmanship by assuming responsibility for quality. where his early concepts concerning Quality began to form. M. In 1957 he became a senior quality engineer with Martin Marietta Co. in Orlando. Juran on Planning for Quality. Crosby developed his "Zero Defects" concepts. Crosby worked with many of the world's largest industrial and service companies. In 1952 Crosby went to work for the Crosley Corp. he joined the Navy and became a hospital corpsman. West Virginia. as a reliability technician and quality engineer. Under the "Big Q" concept. In 1946 Crosby entered the Ohio College of Podiatric Medicine in Cleveland. The infrastructure should include a quality steering team with top management leading the effort. In the old era under the concept of "little q. they should team together to improve processes and produce quality products and services. as a junior electronic test technician. Developed. and all people should be involved. and found that it worked. He joined the American Society for Quality. this time he served as a Marine Medical Corpsman. In 1965 International Telephone and Telegraph (ITT) hired Crosby as vice president in charge of corporate quality. Florida. Crosby established the Crosby Quality College in Winter Park. all people and departments are responsible for quality. NY. After a number of years in industry. he went to work for Bendix Corp. He was recalled to military service during the Korean conflict. After graduation he returned to Wheeling and practiced podiatry with his father. in Richmond. After Crosby graduated from high school. in 1926. He investigated defects found by the test people and inspectors. Florida. The Free Press.

Quality means conformance to requirements. Crosby discusses Cost of Quality and Cost of Nonconformance or Cost of Non quality. To support his Four Absolutes of Quality Management. not goodness. Crosby sees the Quality Management Maturity Grid as a first step in moving an organization towards quality management." 4. After a company has located its position on the grid. Crosby espoused his basic theories about quality in four Absolutes of Quality Management as follows: 1. Management Commitment . The measurement of quality is the price of nonconformance. not indexes.hisAbsolutes of Quality Management. Attention to customer requirements and preventing defects is evident in Crosby's definitions of quality and "non-quality" as follows: "Quality is conformance to requirements. The performance standard must be zero defects. Crosby developed the Quality Management Maturity Grid and Fourteen Steps of Quality Improvement. 14 Quality Improvement Steps. In his book Quality Is Free. non-quality is nonconformance. Other books he has written include Quality Without Tears(1984) and Completeness(1994). 2. CROSBY'S FOUR ABSOLUTES OF QUALITY. not appraisal. not "that's close enough. Quality Management Maturity Grid. When an organization designs and builds an item right the first time (or provides a service without errors).andCost of Nonconformance. The system for causing quality is prevention. Cost of Quality. but it costs more money when quality is not achieved. Crosby makes the point that it costs money to achieve quality. quality is free. 3. Zero Defects. it implements a quality improvement system based on Crosby's Fourteen Steps of Quality Improvement Absolutes of Quality as below: Step 1. When an organization has to rework or scrap an item because of poor quality. it costs more." CROSBY'S COST OF QUALITY. It does not cost anything above what would have already been spent. The intention is spend more money on preventing defects and less on inspection and rework.

Crosby. 1979. Cost of Quality Evaluation Step 5. Quality Awareness Step 6. Zero Defects Step 10. Supervisory Training Step 9. Zero-Defects Planning Step 8. Quality Improvement Teams Step 3.Step 2. Error Cause Removal Step 12. Step 7. New York. Quality Measurement Step 4. McGraw-Hill Book Company. Quality Councils Step 14. Do It All Over Again . Goal Setting Step 11. Recognition Step 13. Quality Is Free. Corrective Action Crosby's Quality Management Maturity Grid Source: Philip B.

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