CAOYONG, MICHAEL ANGELO // MORATA, LEILA P.

M-F 10:40-12:20
review questions
review questions
1. How does Deming’s definition of quality -- “A product or a service possesses quality if
it helps somebody and enjoys a good and sustainable market” -- compare with the
definitions discussed in Chapter 1.
Deming’s define quality the same as the six (6)-perspective definition of quality, being suitable
for its intended purpose (fitness to use) while satisfying customer’s expectation. We can say that
a product is a quality product if it met all the requirements expected by the consumer, while
sustaining market through utilizing society's natural, human, and cultural resources responsibly
to ensure a better quality of life now and for future generations to come.

2. Explain the Deming chain reaction.

W. Edwards Deming offers a primary way for organizations to find meaning in their work, and for
employees to take meaningful roles in the work of the organization. His “Chain Reaction” of
quality offers a clue to this approach:

1. Improve quality of products and services—a step that will in itself begin to instill pride in
workers who contribute to an organization’s quality improvement.
2. Costs will decrease as a result of this emphasis on quality rather than quantity.
3. Productivity in fact will increase as workers see meaning in their efforts.
4. Organizations can expand their market share by increasing productivity.
5. This will allow them to stay in business.
6. This will also expand the opportunities for workers by adding jobs and improving training.

While this chain reaction can affect a single organization’s outlook and improve worker
engagement in that organization, it also applies to companies whose mission is to help other
companies improve quality. The chain reaction lets you reward workers as the company
prospers, instead of seeking to prosper on the backs of workers. Flipping the means and the
ends does not work. Reducing costs as the result of process improvement is effective
management. Reducing costs based on a spreadsheet sent down by executives and then
hoping that the cuts don’t damage the value provide to the customer too much is a recipe for
disaster.
3. Summarize Deming’s 14 points. How does each point relate to the four components of
Profound Knowledge?
His 14-point approach to business leadership directed business owners to think about quality
improvement as a means of reducing waste and increasing productivity and sales. Deming's 14
points have become a standard pathway to quality control around the world and are equally
relevant to small and large businesses.

1. Create constancy of purpose toward improvement of product and service with the aim to
become competitive, to stay in business, and to provide jobs.
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on the basis of price tag.
5. Improve constantly and forever the system of production and service, to improve quality
and productivity, and thus constantly decrease costs
6. Institute training on the job.
7. Institute leadership.
8. Drive out fear so that everyone may work effectively for the company.
9. Break down barriers between departments..
10. Eliminate slogans, exhortations, and targets for the workforce asking for zero defects
and new levels of productivity.
11. Eliminate work standards (quotas) on the factory floor.
12. Remove barriers that rob the hourly worker of the right to pride of workmanship.
13. Institute a vigorous program of education and self-improvement.
14. Put everyone in the company to work to accomplish the transformation

Deming is best known for his Fourteen Points for Quality Improvement and for his System of
Profound Knowledge. The four parts of Deming’s theory tie into his fourteen points. The reason
that Deming believed his theory of profound knowledge was so important was that it would help
individuals to transform within their organizations, which would, in turn, improve the outcomes in
quality improvement efforts. Understanding and applying the four parts of Deming’s theory, he
believes, will create a better leadership culture. Each part of Deming’s Theory of Profound
Knowledge corresponds to several of his fourteen points.
4. Summarize the four components of Profound Knowledge. How do they mutually
support each other?
Appreciation for a system. It is more than just considering the system as beautifully complex but
as well seeing it as a leader having a vision to understand it thoroughly and looking for ways to
improve it as well. Having an effective system is essential since this determines the way an
organization work. Employees must have a clear understanding as to what department they
belong to avoid interference with other departments which might cause chaos.
Understanding variation. It is fundamental for a manager to know reasons for variation that
typify each cases in an organization and through that you can be able to undertake quality
improvement efforts that will eliminate variations since these hamper productivity and best
results.
Theory of Knowledge. Managers must be more keen and sensitive to every decision they make
since whatever they do has an effect to an organization. They must understand the basics and
on to the complex ones. They must both consider theory and experience and use them hand-in-
hand to produce the appropriate management decisions
Psychology. Psychology helps us understand people and how the way they behave tells a lot
about them. It is also about human interactions and emotions. It is essential to develop a
healthy workplace that promotes employee satisfaction and well-being. It is said that monetary
rewards do not necessarily motivate an employee and are only a way out for managers who do
not understand how to manage intrinsic motivation.

These four components of Profound Knowledge have already been proven to be helpful to
organizations. Each of them provide their own part to the holistic success of the organization.
This may appeal intimidating to start-up businesses due to its complexity but once you get the
gist of it, everything will flow naturally. Results may not be seen on their individual aspects but it
wholly improves the organization when viewed on the bigger picture.

4. What is a system? Why is “systems thinking” important to quality management?

A system is a set of functions or activities within an organization that work together for the aim of
the organization and is composed of many smaller, interacting subsystems. Systems thinking
focuses on the bigger picture of situations and larger interactions instead of looking on every
individual aspect which may not be necessarily effective when applying it to large organizations.
With this, it helps achieve an effective system to help with the development and success of the
organization and by success, it means cutting down costs for inspections, rework, unnecessary
training, and many more which could instead be used for improving quality.

8. Explain Juran’s Quality Trilogy.

Juran’s Quality Trilogy is an improvement cycle that is meant to reduce the cost of poor quality
by planning quality into the product/process. It is composed of quality planning, quality control,
and quality improvement. Quality planning is where you define who your customers are and find
out their needs so you’ll be able to develop it into plans and later on to results. Quality control is
the process of meeting goals during operations. This is where you determine the data needed to
know if your process is working effectively by measuring the gap between the actual
performance and the goal. According to Michigan Tech, there four different strategies to quality
improvement that could be applied during this phase: repair, refinement, renovation, and
reinvention. These four are vital in improving quality because this fixes whatever is broken and
improves whatever is already working well.