Quality Assurance & Quality Control { GNED 1405 }

LECTURE # 5 { Quality THEORY }

Leading Contributors to Quality Theory Demings 14 Points for Management Demings Deadly Diseases

QUALITY THEORY

Experience alone without theory, teaches

management nothing about what to do to improve quality and competitive position, nor how to do it.
- W. Edwards Deming

QUALITY THEORY
Several theories on quality improvement are in practice today. In this next segment of this course we will learn about the experts in the field, their theories, and how these theories have been put into practice by some of North Americas largest companies.

Leading Contributors to Quality Theory

In the early post-war years ; some imports from Japan were very substandard. Early Japanese cars were rust-buckets

By the late 1970s it was obvious that the quality of products from Japan was superior to those manufactured in North America.
How did this happen ? { one man played a key role in the development of Japanese quality }

W. Edwards Deming
The Japanese learned much of their quality management after WW II from Mr. Deming ; in fact the Japanese still use his original lectures today. He presented lectures on statistical quality control applications in Japan after World War II. An American; no one has had more influence in the area of Quality Management than Deming. GM, Ford , Proctor & Gamble used him in the 1980s to help them improve their quality record.

His name is a household word among corporate executives

 Deming believed that the more consumers demanded quality products and service; the more companies would aspire to higher levels of performance. Customers now expect high quality products at a reasonable price { unlike 20 years ago } Demings message or mantra was continual never-ending improvement

Deming Had 14 Points For Quality Management

The foundation of the 14 points was that : Poor quality was not the fault of workers But resulted from the management of the quality system up to the 1980s

The 14 points represent many of the key principles that form the basis of quality management today.

Demings 14 Points for Management

1. Create a consistency of purpose toward improvement of product and service with the aim to become competitive, stay in business and provide jobs
2. Adopt a new philosophy: We are in a new economic age

3. Cease dependence on mass inspections to improve quality

4. End the practice of awarding business on the basis of price tag alone.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

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Demings 14 Points for Management

5. Improve constantly and forever the system of production and service, to improve quality & productivity, & thus constantly decrease cost 6. Institute training on the job. 7. Improve 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 that ask for zero defects and new levels of productivity
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

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Demings 14 Points for Management

11. Eliminate work standards on the factory floor

12. Remove barriers that rob workers of their right to pride in the quality of their work
13. Institute a vigorous program of education and self improvement 14. Put everybody in the company to work to accomplish the transformation
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

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 1. Create constancy of purpose toward improvement of product and service with the aim to become competitive, stay in business and provide jobs Management must commit resources long term to achieve this objective. Japanese firms took 25 years Today it might take 10 years Few quick financial returns

 2. Adopt a new philosophy to fit the new economic age Planned obsolescence is largely in the past Cars are no longer worn out at 100,000 km Customer satisfaction now so very important

 3. Cease dependence on mass inspection to improve quality Build quality into products from the beginning Should not depend on final inspection system Quality at the source do it right the first time was Demings alternative

 4. End the practice of awarding business on the basis of price tag alone Move to a single supplier based on loyalty & trust North American system used to be based on competitiveness among many suppliers Many times led to variability in quality of components from the different suppliers Alternative is just-in-time purchasing (JIT)

 { JIT Continued } JIT minimizes the number of suppliers used Results in less variability in components Can develop & certify suppliers Certification often based on known standards E.g. ISO 9000:2008 international standard or Malcolm Baldridge National Award Criteria

 5. Improve constantly & forever the system of production and service, to improve quality & productivity, & thus constantly decrease cost Focuses on management of the production system; which includes: Product design, Process design

This system of production also includes: Proper Tools Proper Machines Process flows ( the assembly line ) Many other variables that affect service & production Mediocre performance is usually the result of poor management not the labour force

 6. Institute Training on the Job (or job related) Proper training & knowledge is necessary to do a job well Design of the training program is also important for quality improvement

 7. Improve Leadership { example of RIM } Supervision (&/or overhaul) of management may be more important as supervision of workers Individual workers can make small improvements to quality Widespread improvements can only be made or facilitated by management

 8. Drive out Fear so that everyone may work effectively for the company Create trust, create a climate for innovation Employees may be fearful of change or to admit that problems exist Employees that frequently report problems may be viewed as trouble makers Some may view improvements as disguises for layoffs Develop a no-layoff policy

 9. Break down barriers between departments People in research, design, sales & production groups must work together as a team to foresee problems Eliminate sequential or departmental approach to design { Honda vs Yamaha } Optimize the efforts of Teams.

 10. Eliminate slogans, exhortations & targets for the workforce that ask for zero defects and new levels of production

Slogans like get it right the first time or zero defects forever tend to pressure employees.
Can have the opposite of the intended effect

 Such factors can create adversarial relationships between individual or groups of workers Tends to result in higher production but lower quality Motivation can be better achieved from trust and leadership.

 11. Eliminate Work Quotas on the factory floor. Work standards based on quantity alone often leads to poorer quality { Lucy example } A more holistic leadership approach is required in quality management Holistic the whole is greater than the sum of their parts

 12. Remove barriers that rob workers of their right to pride in the quality of their work

Allow for progressive self-directed work teams { process of employee empowerment } You will not be turning the asylum over to the inmates

 13. Implement a program of education & self-improvement This refers to a more generalized education than Point # 6 Needs to go beyond learning the content of operations manuals Needs to be some reward for learning, { progression system for WSP operators } Hard to achieve in a traditional command & control management environment They do not understand what it takes to allow employees to achieve their best.

 14. Put everybody in the company to work to accomplish the transformation Take Action The change to quality management is everybodys job Total system improvement requires the involvement of everyone

Demings Philosophy

The Deming philosophy focuses on continual improvements in product and service quality by reducing uncertainty and variability in design, manufacturing, and service processes, driven by the leadership of top management.

Demings 7 Deadly Diseases

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 health care costs per employee 7. Excessive costs of warranties

Deming felt that the above Deadly Diseases could keep a country from achieving top quality and competitiveness in a global market.

W. Edwards Deming
Dr. Deming received Japans highest order, the Royal Order of the Sacred Treasure from the Emperor himself.

Died in 1993 at the age of 93.

He was asked once how he would like to be remembered, he said: as someone who spent most of his life trying to keep America from committing suicide .

END OF PRESENTATION