ITM 8 QUALITY CONTROL MODULE 3

MODULE 3

QUALITY MANAGEMENT PHILOSOPHIES IN THEIR

IMPACT
E. Deming’s Philosophy
Dr. W. Edwards Deming: (1900-1993) is considered to be the Father of Modern
Quality. Dr. Deming preached that to achieve the highest level of performance requires
more than a good philosophy the organization must change its behavior and adopt new
ways of doing business. Deming’s approach was amply summed up in his famous 14
Points
Point 1: Create constancy of purpose toward improvement of the product and service so
as to become competitive, stay in business and provide jobs.
Point 2: Adopt the new philosophy. We are in anew economic age. We no longer need
live with commonly accepted levels of delay, mistake, defective material and
defective workmanship.
Point 3: Cease dependence on mass inspection require, instead, statistical evidence that
quality is built in.
Point 4: Improve the quality of incoming materials. End the practice of awarding business
on the basis of a price alone. Instead, depend on meaningful measures of quality,
along with price.
Point 5: Find the problems; constantly improve the system of production and service.
There should be continual reduction of waste and continual improvement of
quality in every activity so as to yield a continual rise in productivity and a
decrease in costs.
Point 6: Institute modern methods of training and education for all. Modern methods of
on-the-job training use control charts to determine whether a worker has been
properly trained and is able to perform the job correctly. Statistical methods
must be used to discover when training is complete.
Point 7: Institute modern methods of supervision. The emphasis of production
supervisors must be to help people to do a better job. Improvement of quality
will automatically improve productivity. On management must prepare to take
immediate action on response from supervisors concerning problems such as
inherited defects, lack of maintenance of machines, poor tools or fuzzy
operational definitions.
Point 8: Fear is a barrier to improvement so drive out fear by encouraging effective two-
way communication and other mechanisms that will enable everybody to be part
of change, and to belong to it. On management Fear can often be found at all

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levels in an organization: fear of change, fear of the fact that it may be necessary
to learn a better way of working and fear that their positions might be usurped
frequently affect middle and higher management, whilst on the shop-floor,
workers can also fear the effects of change on their jobs.
Point 9: Break down barriers between departments and staff areas. People in different
areas such as research, design, sales, administration. On management and
production must work in teams to tackle problems that may be encountered with
products or service.
Point 10: Eliminate the use of slogans, posters and exhortations for the workforce,
demanding zero defect and new levels of productivity without providing
methods. Such exhortations only create adversarial relationships.
Point 11: Eliminate work standards that prescribe numerical quotas for the workforce and
numerical goals for people in management. Substitute aids and helpful
leadership.
Point 12: Remove the barriers that rob hourly workers, and people in management, of
their right top ride of workmanship. This implies, abolition of the annual merit
rating (appraisal of performance) and of management by objective.
Point 13: Institute a vigorous program of education and encourage self-improvement for
everyone. What an organization needs is not just good people; it needs people
that are improving with education. Chapter3 9
Point 14: Top managements permanent commitment to ever-improving quality and
productivity must be clearly defined and a management structure created that
will continuously take action to follow.

Philip B. Crosby’s Philosophies

Crosby's approach to quality is unambiguous. In his view, good, bad, high and low
quality are meaningless concepts, and the meaning of quality is conformance to
requirements. Non-conforming products are ones that management has failed to specify or
control.

Joseph Duran Philosophies

The primary focus of every business, during Juran's time, was the quality of the end
product, which is what Deming stressed upon. Juran shifted track to focus instead on the human
dimension of Quality management. He laid emphasis on the importance of educating and training
managers. For Juran, the root cause of quality issues was the resistance to change, and human
relations problems.

The Juran Quality Trilogy

One of the first to write about the cost of poor quality, Juran developed an approach for cross-
functional management that comprises three legislative processes:
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1. Quality Planning:

This is a process that involves creating awareness of the necessity to improve, setting
certain goals and planning ways to reach those goals. This process has its roots in the
management's commitment to planned change that requires trained and qualified staff.

2. Quality Control
This is a process to develop the methods to test the products for their quality. Deviation
from the standard will require change and improvement.

3. Quality Improvement
This is a process that involves the constant drive to perfection. Quality improvements need
to be continuously introduced. Problems must be diagnosed to the root causes to develop
solutions. The Management must analyze the processes and the systems and report back
with recognition and praise when things are done right.

Deming emphasizes statistical quality control and shop-floor

involvement; Juran focuses on breakthrough projects, measurement and control,
and quality planning; and Crosby emphasizes zero defects, motivation and attitude
change, and cost of quality reporting.
W.Edwards Deming, Joseph Juran, and Philip Crosby are three of American’s
leading quality experts. Each has developed a distinctive approach to quality
management. Deming emphasizes statistical quality control, and shop -floor involvement;
Juran focuses on breakthrough projects, measurements and control, and quality planning;
and Crosby emphasizes zero defects, motivation and attitude change and cost of quality
reporting.

Summary of Comparison of Philosophies

A. Definition of quality
1. Deming implicity defines quality as “zero defects” or “reduced variation.”
2. Juran defines quality as” fitness for use’. Fitness for use can be thought of in
terms of design, conformance, availability, safety, and field use. Of the three
definitions, it most directly incorporates the customer’s point of view.
3. Crosby defines quality as” conformance to requirements.”

B. Cost, Productivity, and Competitive success

1. For Deming, the pursuit of quality results in lower cost, improvement
productivity, and competitive success.
2. Juran has develop analytical tools which lead to improved productivity and
competitive success. But his cost of quality accounting system suggests that the
pursuit of quality pays for itself only up to a certain point, and beyond that point
leads to rising cost.
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3. Crosby believes that quality is free. This suggest that lower defects levels are
always desirable, because the cost of prevention will always be lower than the
cost of after-the fact detection and correction. He also believes U.S. companies
have to improve quality to compete. His idea that prevention means perfection
implies improved productivity.

C. Three Major Contrast

1. How does each regard quantitative measures and standards?
Deming relies on statistical process control (SPC) as a problem-solving
tool which separates systematic causes from special causes, but is unwilling to set
quantitative goals for the work force.
Juran is prepared to measure and quantify everything from conformance,
to risk of inquiry due to product hazards, to the cost of quality.
Crosby, on the other hand, is far more interested in motivation than
measures, although he does suggest the need for a cost quality measurement
system.

2. How does each regard the relative responsibilities of upper management, quality
professionals, and the work force?
All three experts agree on the major roles for upper management. But
only Juran sees a central role for quality professionals who assist top management
with planning, measurement, and problem solving. Deming stresses the value of
the worker/management relationship and feels that workers themselves should be
responsible for problem solving, once they are properly trained. Crosby is also
believer in training and motivating workers, but he counts on them to
communicate problems to the next levels of management rather than to solve
problems themselves.

3. How does it deal with targets for improvement?

Deming and Crosby basically agree on the need for the ongoing pursuit
of zero defects as a goal. But Juran’s COQ concept suggests to companies that it
is increasingly costly to take the final steps tom perfection.

D. Underlying management Philosophies

1. Although Deming stresses that quality initiatives must come from the top, he also
believes it is the worker who will finally produce quality goods. His stress on
worker pride and satisfaction suggests a “theory Y” approach to management,
with participation and involvement the key elements. His overall approach focuses
on process improvement.

2. Crosby believe in posting goals for workers. (Deming does not). He also stresses
the importance of training, motivation, and rewards. Crosby seems to see attitude

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change as the critical element in quality improvement, with management leading

and the work force following somewhat passively. His overall approach focuses
on people.

3. Juran relies on systems, problem-solving techniques ands measurements. There is

virtually no mention of workers in his breakthrough sequence, His thinking
focuses on managing from the top down, and the methods are largely technical.
His overall approach focuses on individual improvement projects.

E. Key Tools: Their Value and Limitations

1. Deming’s SPC model is extremely valuable in certain contexts. For
example, when technical data can be gathered on products produce in
large volumes. It is less appropriate for low-volume products, or those
which are customize.
2. Calculating the cost of quality make sense. But there are several missing
elements in Juran’s list of measurements. The cost of quality ignores the
value of foregone sales-either because of poor quality or because
competitors offer superior quality. It seldom includes such hidden cost as
excess inventory or extra capacity held in anticipation of defects. And, it
fails to account for the organizational impacts and reduced motivation
due to setting an “acceptable level of defects” at the point where COQ is
minimized.
3. Crosby’s management maturity grid is useful as a broad map to suggest
direction at the start of a project. The stages also suggest a way to
visualize progress over time. But its value as an evaluative instrument is
limited by Cosby’s highly generalized terms and the subjective responses
to grid invites.

F. Tools Versus Philosophy

1. Crosby stresses motivation and planning. His guidelines do not include
the nuts and bolts problem solving that is evident in Deming and Juran.
Thus Crosby has little need for SPC and the kind of data it might
generate, and seldom mentions it explicitly in his writing.
2. Because Deming envisions quality as an ongoing pursuit, with zero
defects as the goal, he sees little need for COQ numbers that suggest a
stopping point for quality initiatives.

G. Measures of Improvement
1. Deming measures improvement using the control charts generated y
SPC. Fewer deviations over a given period of control would indicate
improvement, as would a narrower range of variation. Thus, a new

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design that produces readings that fall within a tighter band of control
would be considered an improvement.
2. Juran provides measures and data that allow a company to map
improvements in all phases of its business, from design to vendor
relations to manufacturing to customer relations and field services. These
includes defect rates, measures of field reliability, customer satisfaction
ratings, and many others.
3. Crosby recommends that companies estimate the cost of quality, but he is not very
much interested in measuring improvement. He seems to see it as a
natural byproduct of attitude change and the practices charted in his
management maturity grid.

H. Matching the Experts to Companies

1. Deming is extremely popular in Japan. There is a fit with bis
management philosophy and Japanese respect for production workers.
Much of his thinking seems to address issues relevant to high-volume
manufacturing and assembly.
2. Juran’s intense, multifaceted approach, on the other hand, seems best
suited to a highly technical or scientific company, although he too is
popular in Japan because of his emphasis on quality planning and
systematic tools.
3. Crosby’s motivational techniques (and lack of technical measures) seem
best suited to a company that is people driven. Alternatively, Crosby can
be used as a starting point-to change attitudes-and then one of the other
programs may be meshed with it.

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