Total Quality Management

Deming 14 Points
MGT 408

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 The Deming Management Philosophy

• W Edwards Deming was an American statistician who was credited with the rise of Japan as a
manufacturing nation, and with the invention of Total Quality Management (TQM).
• Deming was trained as statistician and worked for Western Electric during its pioneering era
of statistical quality control development in the 1920s and 1930s.
• During World War II he taught quality control courses as part of the national defense effort.
Although Deming taught many engineers in theUnited States, he was not able to reach higher
management.
• After the battle, Deming was invited to Japan to teach statistical quality control concepts. Top
managers there were willing to learnits philosophy .
• They(Japan) embraced Deming’s message and transformed their industries. By the mid-
1970s, the quality of Japanese products exceeded that of Western manufacturers, and
Japanese companies had made significant penetration into Western markets.
• Deming taught quality to Japanese Instead of Americans did not listen to Deming as
carefully as Japanese did and took his a fatherof quality.

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 Continuous--------------

• Deming was almost unknown in the United States until 1980 where NBC aired a white paper
entitled
• “If Japan Can . . . Why Can’t We?” This program made Deming a household name among
corporate
• executives, and companies such as Ford invited him to assist them in revolutionizing their
quality
• Approaches.

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 Deming’s Fourteen Points of TQM

• These are in next coming slides.

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 1.Create & publish the aims & purposes of the organization/Manangement
commitment

• Management must reveal constantly their commitment to the statement. Includes investors,
cms, suppliers and employees.

• Businesses ought to not exist simply for profit; their basic purpose should be to serve their
customers and employees. To do this, they must take a long-term view and invest in
innovation, training, and research. Thus, an organization needs a clear mission and statement
of purpose.

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 2.Learn the New Philosophy

• Top management and everyone must learn new philosophy.

• Everyone, from the boardroom to the stockroom, must learn the new philosophy.
• Supplier also.
• Customer satisfaction should be the priority .
• The organization must concentrate on defect prevention rather than defect detection.

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 3. Understand the purpose of Inspection

• Management must understand the purpose of inspection is to improve the process and
reduce its cost.
• Mass inspection is costly.
• Workers must take responsibility for their own work and be able to take appropriate action to
assure good quality.
• Routine inspection acknowledges defects but does not add value to the product.
• Develop quality assurance system.
• Inspection should be used as information-gathering tools for improvement, not as an end in
itself.

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 Mass Inspection

• In mass inspection Parts come into final inspection department. Dedicated inspectors 100%
inspect these parts. They sort the parts between good and bad. Because the inspectors sort
the parts, senior management thinks the customer is receiving good parts.
• There are many problems with this scenario. Scrap is expensive. The company dedicated
resources, time and money to producing scrap

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 4. Move toward a single supplier for any one item/ End the practice of awarding
business on the basis of price tag

• The purchasing department is a supplier to the production department and must understand
its new role.
• Don't change supplier on daily basis be prevent it.
• Goal is to have single supplier for each item .
• To develop long term relation with suppliers of loyalty and trust.
• Tell the supplier about your quality standards in the organization and same expect from
suppliers.
• Show your whole business to suppliers.
• They must provide quality material through out the entire life cycle because they themselves
are part of the whole system.

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 5. Improve constantly & forever the system

• Improved design results from understanding customer needs and from continual market
surveys and other sources of feedback.
• Improved production is achieved by reducing the causes of variation in order to establish a
stable, expected production process.
• Responsibility assigned to team to remove the causes of problems and continuously improve
the process.
• Make a mindset for forever quality improvement. Management focus is on preventing
problem before its happen

Source: CIA(2013)

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 6. Institute Training

• Employees need the proper tools and knowledge to do a good job, and it is management’s
responsibility to provide these.
• all employees should be trained in statistical tools for quality problem solving and continuous
improvement.
• Train your employees about job related skills.
• Training not only improves quality and productivity, but also enhances workers’ morale by
showing them that the company is dedicated to helping them and is investing in their future.
• Deming notes that in Japan, entry-level managers spend 4 to 12 years on the factory floor
and in other activities to learn the problems of production

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 7.Institute Leadership

• The job of management is leadership and guidance rather than supervision and work
direction.
• The aim of supervision should be to help people .
• Let the people charge to take care process.
• Supervisors should be coaches, not policemen.
• Supervision should provide the link between management and the workforce.
• Leadership can help to remove fear and encourage teamwork.

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 8.Drive out Fear

• Fear in work manifests in many ways: fear of reprisal, fear of failure, fear of change.
• Many workers fear punishment or reprisals for not meeting sales target.
• Driving fear out of workplace involves managing for success.
• Fear encourages short-term, selfish thinking, not long-term improvement for the benefit of
all.
• When people are treated with self-respect, fear could be eliminated and people will work
for general good of the organization.
• Ultimately in this climate they will provide ideas for improvement.

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9.Optimize the efforts of team, groups and staff areas/ Break down barriers between
departments

• People in research, design, sales, and production departments must work as a team, to
foresee problems of production as well as consumer difficulties. People need to understand
how departments interact and affect each other.
Barriers between individuals and departments lead to poor quality, because “customers” do
not receive what they need from their “suppliers.”
• Design department is the cm of MKT research department.
• Production department is the cm of design department.
• Quality control is the cm of production department.
• Focus should be on meeting customer needs and improving processes.
• Teamwork is an important means of achieving a company’s goals.

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 10. Eliminate unclear slogans, exhortation and targets.

• Let people know exactly what you want – don't make them guess. "Excellence in service" is
short and memorable, but what does it mean? How is it achieved? The message is clearer in
a slogan like "You can do better if you try.
• Management asking for 'Do it right the first time'; 'Zero defects is our aim';
• They don't produce better product or services because workers are limited by the system.
• Goals should be set that are achievable and are committed to the long-term success of the
organization.
• Workers cannot improve solely through motivational methods when the system in which
they work limits their performance.
• Such exhortations only create adversarial relationships; the bulk of the causes of low
quality and low productivity belong to the system and thus lie beyond the power of the
workforce
• Improvement is the process cannot be made unless tools and methods are available.
• Only management can improve the system.

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 11 eliminate numerical quotas for the workforce and numerical goals for
management/Eliminate management by quotas and objectives

• Look at how the process is carried out, not just numerical targets. Deming said that
production targets encourage high output and low quality.
• Where Out put refer to the quantity of goods or services produced in a given time period, by
a firm, industry, or country.
• Provide support and resources so that production levels and quality are high and achievable.
• Measure the process rather than the people behind the process.
• The typical American MBO system focuses on results, not process, and encourages short-
term behavior.
• MBO is a management practice which aims to increase organizational performance by
aligning goals and subordinate objectives throughout the organization.
• Management must understand the system and the variation within it and seek to improve it
in the long term.
• Internal goal set by the management without a method are burlesque.

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 12.Remove Barriers to Pride in Workmanship

• Deming believed that one of the biggest barriers to pride in workmanship is performance
appraisal.
• Loss of pride in workmanship exist in an organization when Workers donot know
organizations mission
• They are being blamed for system problem
• Insufficient training is provided to employees.
• Insufficient or ineffective equipment is provided for performing the required work.
• Deming said management provide the proper tools and meterials to employees,give them
proper training.
• By restoring pride every one in the organization will be work for the common goal.

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 13. Increase education & self improvement for everyone

• Education refers to self development.

• Firms have a responsibility to develop the value and self-worth of the individual.
• Deming 14 points and the firm mission should be the foundation of the education
programme.
• Every one should be retrained as the organization requirements change to meet the changing
environment.
• Investing in people is a powerful motivation method.

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 14. Take Action to accomplish the transformation

• The transformation is everybody's job and management must create a vision and program to
include and inspire every employee.
• Management has to accept the primary responsibility for the never ending improvement of
the process.
• The TQM philosophy is a major cultural change and many firms find it difficult.
• Top management must establishment the process and include everyone in it.

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• Thanks

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