Deming and Quality

Rajiv Gupta
BITS Pilani

Agenda
Module 1
Introduction to Dr. W.E. Deming
The System of Profound Knowledge

Module 2
Appreciation of a system

Module 3
Theory of Knowledge

Module 4
Knowledge of Variation

Module 5
Psychology of Individuals, Society, and Change

Module 6
Demings 14 Points

 Begin Module 1
Introduction to Dr. W.Edwards. Deming
The System of Profound Knowledge

Introduction to Dr. W. Edwards Deming

Dr. Deming was a statistician, a quality expert and a
management guru.
He was a student of Walter Shewhart, a statistician at Bell
Labs. The now famous Deming cycle has its origins as the
Shewhart cycle.
He taught Statistical Quality Control in the US in the 1940s,
and was in great demand overseas as well. He also visited
India in 1947 before continuing on to Japan.
In the period following the WW II, quality took a back seat
to production numbers in the US
He learned from this that management involvement in
quality was key to sustaining the quality effort.

Introduction to Dr. W. Edwards Deming

In 1947 he was recruited by the Supreme Command of
the Allied Powers to help prepare for the 1951
Japanese census.
The Union of Japanese Scientists and Engineers (JUSE)
were taken with Shewharts Statistical Quality Control
theories. They invited Deming to work with them teach
these techniques to Japanese research workers, plant
managers and engineers.
He conducted several training sessions, which were
very popular in Japan
He insisted on getting the commitment from the top
executives
5

Introduction to Dr. W. Edwards Deming

He did not accept any fees for his lectures in Japan. He
donated the fees toward what became known as the
Deming Prize for quality, one of the most coveted
recognitions in the world for quality.
Back in the US, he became an unknown. He continued
to do work, including teach at New York University
He was re-discoverd in the US at the age of 80, when
NBC produced a show If Japan Can .. Why Cant
We? in 1980
He continued to work with US companies and
conducted his famous 4 day seminars until he passed
away at the age of 94
6

DEMINGS SYSTEM OF PROFOUND KNOWLEDGE

Appreciation for a
System

Theory of
Knowledge

Knowledge about
Variation

Psychology of
Individuals, Society
And Change

THE SYSTEM OF PROFOUND KNOWLEDGE AS A LENS

 End of Module 1

 Begin Module 2
Appreciation of a System

10

Appreciation of a System

1
Design it

3
Make it

Try to sell it

The Old Way

11

The New Way

1. Design the product (with appropriate

tests
2. Make it, test it in the production line
and in the laboratory
3. Put it on the market
4. Test it in service, through market
research, find out what the user thinks
of it, and why the non-user has not
bought it
5. Redesign the product in light of the
customer reactions to quality and price
Continue around and around the cycle

12

The Deming Chain Reaction

Improve
Quality

Provide jobs
and more jobs

Costs decrease because of

less rework, fewer mistakes,
fewer delays, snags, better
use of machine time and
materials

Stay in
business

Productivity
improves

Capture the market

with better quality
and lower prices

13

THE DEMING FLOW DIAGRAM

Stage 0
Generation of ideas

Design and
Redesign

Suppliers of materials
Consumer feedback
and equipment
Receipt and test
Consumers
Of materials
Production, Assembly, Inspection

Tests of processes, machines,

methods, costs

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Fishermen

Salmon

15

Linear Non-Systemic View

Fishermen

Sea Otters

Salmon

16

Systemic View

Fishermen

Fry

Salmon

Sea Otters

Kelp

Sea Urchins
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 End of Module 2

18

 Begin Module 3
Theory of Knowledge

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Theory of Knowledge
The theory of knowledge teaches us that a
statement, if it contains knowledge, predicts
future outcomes, with risk of being wrong,
and that it fits without failure observations of
the past
Rational predictions require theory and builds
knowledge through systematic revision and
extension of theory based on comparison of
prediction with observation
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Chantecleer the rooster

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PDSA Cycle Learning Cycle

ACT

STUDY

PLAN

DO

22

PDCA Cycle Improvement Cycle

ACT

CHECK

PLAN

DO

23

 End of Module 3

24

 Begin Module 4
Knowledge of Variation

25

Knowledge About Variation

x Out of control
point
x
x

Upper
Control
Limit
X bar

Time

Lower
Control
Limit

26

Lack of Understanding of Variation

We have a penchant to probe the reasons for every change
examples are traders and journalists offering reasons why the
stock market went up or down. Often the same reason is
given for opposite reactions from the market
People focus on average, above average, and below average
performance. How would you get a class of students with
everyone being above average?
We try to reward people for exceptional performance in one
period, not realizing that performance varies over time
The Red Bead Experiment and the Funnel Experiment
http://www.youtube.com/watch?v=O0QrEiE5MG4
Link to the Funnel Experiment Video
27

Knowledge About Variation

Demings causes of variation
Common causes
Special causes
85 % of the problems are caused by the system
(management) and 15% by the workers

Common causes cannot be explained. This is the

inherent variation in a process. Only management can
take action to change the system.
Trying to adjust to common causes may increase
variation
Special causes need to be investigated and corrective
action taken
28

Knowledge About Variation

We need to only ask for reasons when a special cause
is observed. Once we identify and remove the special
cause, the system should come back under statistical
control
The performance of a system under statistical control
can be predicted. This means that if the conditions
remain as they are when the system is in control, the
system will vary between the control limits.
This judgment is subject to being wrong (theory) and is
not a statistical judgment, but a subject matter
judgment
29

Knowledge About Variation

A system under statistical control can only be changed
by studying the system as a whole, i.e., by investigating
why the system behaves in a given manner. Only
management has the authority to bring about changes
that improve systemic performance.
For example, there are usually policy issues that affect
the quality of incoming product or the production
readiness of manufacturing equipment. Admonishing
and exhorting workers to work harder cannot solve the
problems caused by such situations

30

 End of Module 4

31

 Begin Module 5
Psychology of Individuals, Society and Change

32

Psychology of Individuals, Society and

Change

Positive Innate Attributes of People

Intrinsic and Extrinsic Sources of Motivation
Overjustification
Motivation and Motion (Hertzberg)
One inherits the right to enjoy his/her work

33

The Forces of Destruction

Beginning
of life

End of
life

These forces cause humiliation, fear, self-defense, competition for gold

star, grades, high rating on the job. They lead anyone to play to win, not
for fun. They crush out joy in learning, joy on the job, innovation.
One is born with
Extrinsic motivation (complete resignation to external pressures)
intrinsic motivation,
gradually replaces intrinsic motivation, self-esteem, dignity
self-esteem, dignity,
co-operation, curiosity, joy
in learning. These attributes are
high at the beginning of life, but are
gradually crushed by the forces of destruction
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 End of Module 5

35

 Begin Module 6
Demings 14 Points

36

Demings 14 Points
1. Create constancy of purpose toward improvement of product
and service, with the aim to become competitive and to stay
in business, and to provide jobs.
2. Adopt the new philosophy. We are in a new economic age.
Western management must awaken to the challenge, must
learn their responsibilities, and take on leadership for change.
3. Cease dependence on inspection to achieve quality. Eliminate
the need for inspection on a mass basis by building quality
into the product in the first place.

37

Demings 14 Points
4. End the practice of awarding business on the basis of price
tag. Instead, minimize total cost. Move toward a single
supplier for any one item, on a long-term relationship of
loyalty and trust.

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.

38

Demings 14 Points
7. Institute leadership. The aim of supervision should be to help
people and machines and gadgets to do a better job.
Supervision of management is in need of overhaul, as well as
supervision of production workers.
8. Drive out fear, so that everyone may work effectively for the
company.
9. Break down barriers between departments. People in
research, design, sales, and production must work as a team,
to foresee problems of production and in use that may be
encountered with the product or service.
39

Demings 14 Points
10. Eliminate slogans, exhortations, and targets for the work force
asking for zero defects and new levels of productivity. Such
exhortations only create adversarial relationships, 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.
Eliminate work standards (quotas) on the factory floor. Substitute
leadership.
Eliminate management by objective. Eliminate management by
numbers, numerical goals. Substitute leadership.

40

Demings 14 Points
11. Remove barriers that rob the hourly worker of his right to
pride of workmanship. The responsibility of supervisors must
be changed from sheer numbers to quality.
12. Remove barriers that rob people in management and in
engineering of their right to pride of workmanship. This
means, inter alia, abolishment of the annual or merit rating
and of management by objective.

41

Demings 14 Points
13. Institute a vigorous program of education and selfimprovement.
14. Put everybody in the company to work to accomplish the
transformation. The transformation is everybody's job.

42

 End of module 6

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