CORPUZ, ARGEL RAY T.

 Deming's Philosophy

We owe this transformative thinking to DR. W. Edwards Deming. A statistician who

went to Japan to help with the census after World War II, Deming also taught statistical process
control to leaders of prominent Japanese businesses. His message was this: By improving
quality, companies will decrease expenses as well as increase productivity and market share.

After applying Deming's techniques, Japanese businesses like Toyota, Fuji, and Sony saw
great success. Their quality was far superior to that of their global competitors, and their costs
were lower. The demand for Japanese products soared – and by the 1970s, many of these
companies dominated the global market. American and European companies realized that they
could no longer ignore the quality revolution.

So the business world developed a new appreciation for the effect of quality on
production and price. Although Deming didn't create the name Total Quality Management, he's
credited with starting the movement. He didn't receive much recognition for his work until 1982,
when he wrote the book now titled "Out of the Crisis." This book summarized his famous 14-
point management philosophy.

There's much to learn from these 14 points. Study after study of highly successful
companies shows that following the philosophy leads to significant improvements. That's why
these 14 points have become a standard reference for quality transformation.

Note:
Deming's points apply to any type and size of business. Service companies need to control
quality just as much as manufacturing companies. And the philosophy applies equally to large
multinational corporations, different divisions or departments within a company, and one-man
operations.

The 14 Points

1. Create a constant purpose toward improvement.

 Plan for quality in the long term.

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 Resist reacting with short-term solutions.

 Don't just do the same things better – find better things to do.

 Predict and prepare for future challenges, and always have the goal of getting better.

2. Adopt the new philosophy.

 Embrace quality throughout the organization.

 Put your customers' needs first, rather than react to competitive pressure – and design
products and services to meet those needs.

 Be prepared for a major change in the way business is done. It's about leading, not simply
managing.

 Create your quality vision, and implement it.

3. Stop depending on inspections.

 Inspections are costly and unreliable – and they don't improve quality, they merely find a
lack of quality.

 Build quality into the process from start to finish.

 Don't just find what you did wrong – eliminate the "wrongs" altogether.

 Use statistical control methods – not physical inspections alone – to prove that the process
is working.

4. Use a single supplier for any one item.

 Quality relies on consistency – the less variation you have in the input, the less variation
you'll have in the output.

 Look at suppliers as your partners in quality. Encourage them to spend time improving
their own quality – they shouldn't compete for your business based on price alone.

 Analyze the total cost to you, not just the initial cost of the product.

 Use quality statistics to ensure that suppliers meet your quality standards.

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5. Improve constantly and forever.

 Continuously improve your systems and processes. Deming promoted the Plan-Do-
Check-Act approach to process analysis and improvement.
 Emphasize training and education so everyone can do their jobs better.

 Use kaizen as a model to reduce waste and to improve productivity, effectiveness, and
safety.

6. Use training on the job.

 Train for consistency to help reduce variation.

 Build a foundation of common knowledge.

 Allow workers to understand their roles in the "big picture."

 Encourage staff to learn from one another, and provide a culture and environment for
effective teamwork.

7. Implement leadership.
 Expect your supervisors and managers to understand their workers and the processes they
use.

 Don't simply supervise – provide support and resources so that each staff member can do
his or her best. Be a coach instead of a policeman.

 Figure out what each person actually needs to do his or her best.

 Emphasize the importance of participative management and transformational leadership.

 Find ways to reach full potential, and don't just focus on meeting targets and quotas.

8. Eliminate fear.
 Allow people to perform at their best by ensuring that they're not afraid to express ideas
or concerns.

 Let everyone know that the goal is to achieve high quality by doing more things right –
and that you're not interested in blaming people when mistakes happen.

 Make workers feel valued, and encourage them to look for better ways to do things.

 Ensure that your leaders are approachable and that they work with teams to act in the
company's best interests.

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 Use open and honest communication to remove fear from the organization.

9. Break down barriers between departments.

 Build the "internal customer" concept – recognize that each department or function serves
other departments that use their output.

 Build a shared vision.

 Use cross-functional teamwork to build understanding and reduce adversarial

relationships.

 Focus on collaboration and consensus instead of compromise.

10. Get rid of unclear slogans.

 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."

 Don't let words and nice-sounding phrases replace effective leadership. Outline your
expectations, and then praise people face-to-face for doing good work.

11. Eliminate management by objectives.

 Look at how the process is carried out, not just numerical targets. Deming said that
production targets encourage high output and low quality.

 Provide support and resources so that production levels and quality are high and
achievable.

 Measure the process rather than the people behind the process.

Tip:
There are situations in which approaches like Management By Objectives are appropriate, for
example, in motivating sales-people. As Deming points out, however, there are many situations
where a focus on objectives can lead people to cut corners with quality. You'll need to decide for
yourself whether or not to use these approaches. If you do, make sure that you think through the
behaviors that your objectives will motivate.

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12. Remove barriers to pride of workmanship.

 Allow everyone to take pride in their work without being rated or compared.

 Treat workers the same, and don't make them compete with other workers for monetary or
other rewards. Over time, the quality system will naturally raise the level of everyone's
work to an equally high level.

13. Implement education and self-improvement.

 Improve the current skills of workers.

 Encourage people to learn new skills to prepare for future changes and challenges.

 Build skills to make your workforce more adaptable to change, and better able to find and
achieve improvements.

14. Make "transformation" everyone's job.

 Improve your overall organization by having each person take a step toward quality.

 Analyze each small step, and understand how it fits into the larger picture.

 Use effective change management principles to introduce the new philosophy and ideas in
Deming's 14 points.

 The Juran’s Philosophy

Juran was a great Founding Father of quality, and was responsible for the famous Juran
Trilogy concept. Juran’s approach to quality control had Japanese roots. While Japan was price-
competitive with the rest of the world, the quality of product did not measure up. This quality
philosophy consists of three steps: Quality Planning, Quality Control and Quality
Improvement.

Quality Planning

The quality planning phase is the activity of developing products and processes to meet
customers’ needs involves building an awareness of the need to improve, setting goals and
planning for ways goals can be reached. This begins with management’s commitment to planned
change. It also requires a highly trained and qualified staff. It deals with setting goals and

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establishing the means required to reach the goals. Below are the steps in the quality planning
process:

 Establish quality goals

 Identify the customers: those who will be impacted by the efforts to meet the goals
 Determine the customer’s needs
 Develop processes that can produce the product to satisfy customers’ needs and meet
quality goals under operating conditions.
 Establish process controls, and transfer the resulting plans to the operating forces

Quality Control

This process deals with the execution of plans and it includes monitoring operations so as to
detect differences between actual performance and goals. means to develop ways to test products
and services for quality. Any deviation from the standard will require changes and
improvements. It is outlined with three steps:

 Evaluate actual quality performance

 Compare actual performance to quality goals
 Act on the difference

Quality Improvement

It is a continuous pursuit toward perfection. Management analyses processes and systems

and reports back with praise and recognition when things are done right This is the process is for
obtaining breakthrough in quality performance, and it consists of several steps:

 Establish the infrastructure needed to secure annual quality improvement

 Identify the specific needs for improvement- the improvement projects
 Establish project teams with clear responsibility for bringing the project to a successful
conclusion
 Provide the resources, motivation, and training needed by the teams to- diagnose the
cause, stimulate establishment of remedies, and establish controls to hold the gains.

Three Steps to Progress

Juran also introduced the Three Basic Steps to Progress, which, in his opinion, companies
must implement if they are to achieve high quality.

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1. Accomplish improvements that are structured on a regular basis with commitment and a sense
of urgency.

2. Build an extensive training program.

3. Cultivate commitment and leadership at the higher echelons of management.

Ten Steps to Quality

Juran devised ten steps for organizations to follow to attain better quality.

1. Establish awareness for the need to improve and the opportunities for improvement.

2. Set goals for improvement.

3. Organize to meet the goals that have been set.

4. Provide training.

5. Implement projects aimed at solving problems.

6. Report progress.

7. Give recognition.

8. Communicate results.

9. Keep score.

10. Maintain momentum by building improvement into the company's regular systems.

 CROSBY PHILOSOPHY

Philip B. Crosby

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Who Was He?

Born in 1926, Philip B. Crosby was an author and businessman who contributed to
management theory and quality management practices. He started his career in quality much
later than Deming and Juran. He founded Philip Crosby and Associates, which was an
international consulting firm on quality improvement.

His Philosophy/Theory

Crosby's principle, Doing It Right the First Time, was his answer to the quality crisis. He
defined quality as full and perfect conformance to the customers' requirements. The essence of
his philosophy is expressed in what he called the Absolutes of Quality Management and the
Basic Elements of Improvement.

The Absolutes of Quality Management

Crosby defined Four Absolutes of Quality Management, which are

1. The First Absolute: The definition of quality is conformance to requirements

2. The Next Absolute: The system of quality is prevention

3. The Third Absolute: The performance standard is zero defects

4. The Final Absolute: The measurement of quality is the price of non-conformance

Zero Defects

Crosby's Zero Defects is a performance method and standard that states that people
should commit themselves too closely monitoring details and avoid errors. By doing this, they
move closer to the zero defects goal. According to Crosby, zero defects was not just a
manufacturing principle but was an all-pervading philosophy that ought to influence every
decision that we make. Managerial notions of defects being unacceptable and everyone doing
‘things right the first time’ are reinforced.

The Fourteen Steps to Quality Improvement

1. Make it clear that management is committed to quality for the long term.

2. Form cross-departmental quality teams.

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3. Identify where current and potential problems exist.

4. Assess the cost of quality and explain how it is used as a management tool.

5. Improve the quality awareness and personal commitment of all employees.

6. Take immediate action to correct the problems identified.

7. Establish a zero-defect program.

8. Train supervisors to carry out their responsibilities in the quality program.

9. Hold a Zero Defects Day to ensure all employees are aware there is a new direction.

10. Encourage individuals and teams to establish both personal and team improvements.

11. Encourage employees to tell management about obstacles they face in trying to meet quality
goals.

12. Recognize employees who participate.

13. Implement quality controls to promote continual communication.

14. Repeat everything to illustrate that quality improvement is a never-ending process.

The Quality Vaccine

Crosby explained that this vaccination was the medicine for organizations to prevent poor
quality.

1. Integrity: Quality must be taken seriously throughout the entire organization, from the highest
levels to the lowest. The company's future will be judged by the quality it delivers.

2. Systems: The right measures and systems are necessary for quality costs, performance,
education, improvement, review, and customer satisfaction.

3. Communication: Communication is a very important factor in an organization. It is required

to communicate the specifications, requirements and improvement opportunities of the
organization. Listening to customers and operatives intently and incorporating feedback will
give the organization an edge over the competition.

4. Operations: a culture of improvement should be the norm in any organization, and the process
should be solid.

5. Policies: policies that are implemented should be consistent and clear throughout the
organization.

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CASE STUDY
A local delivery service has 40 drivers. Occasionally, drivers make mistakes such as
entering the wrong package number on a shipping document, failing to get a signature and so on.
A total of 200 mistakes were made in a year. The Manager-in charge has issued disciplinary
citation to drivers for each mistake.

Q1: What is your opinion of the manager’s approach?

- My opinion in simple terms about the manager’s approach is good. Every

manager needs to discipline his employees in order for them to avoid commit
mistakes. Although there is a chance that the employees will be afraid to work
fast in order not to do anything wrong, it is still better than letting your workers
go away with their mistakes. It will help them boost their performance while
under pressure about the disciplinary citation.

Q2: How does it compare with The Deming Philosophy?

- An organization is said to have to earn regular and high profit efficiently only
when the business provides with quality goods and services. Due to this, quality
has become an important factor for the business. Different person has a different
view on quality.

Quality can be understood differently by different people depending upon their

grade of perception. Quality is the subjective and conditional feature of an
organization. Quality being the common element of the business refers to the
range of an organization by which the product or service meets the customer’s
satisfaction.

In order to achieve this quality and customer’s satisfaction, the manager in charge
must Implement Leadership. The quality management are focus on quality people
at each level: continuous improvement and customer focus. The quality focus
with the LEADERSHIP who are responsible for setting the strategic direction of
the company and support and communicate the values and expectation through
reviewing performance. They are also responsible for the regular interaction with
team members and customers and recognizing the achievement of team members.

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