quality guru

Unit -2
W.
Edwards
Deming
1900 -
1993
 Father of quality control

Stressed managements responsibility for quality

Developed 14 points to guide companies in

quality improvement

Japanese established Deming Prize in his name

15% of quality problems are actually due to worker

error

85% of quality problems are caused by systems

and errors
 Dr. W. Edwards Deming is known as
the father of the Japanese post-war
industrial revival and was regarded by
many as the leading quality guru in
the United States.

Trained as a statistician, his expertise

was used during World War II to assist
the United States in its effort to
improve the quality of war materials.
 HE WAS INVITED TO JAPAN AT THE END OF
WORLD WAR II BY JAPANESE INDUSTRIAL
LEADERS AND ENGINEERS. THEY ASKED DR.
DEMING HOW LONG IT WOULD TAKE TO
SHIFT THE PERCEPTION OF THE WORLD
FROM THE EXISTING PARADIGM THAT JAPAN
PRODUCED CHEAP, SHODDY IMITATIONS TO
ONE OF PRODUCING INNOVATIVE QUALITY
PRODUCTS.
Dr. Deming told the group that if they would follow his directions, they
could achieve the desired outcome in five years. Few of the leaders
believed him. But they were ashamed to say so and would be
embarrassed if they failed to follow his suggestions. As Dr. Deming
told it, "They surprised me and did it in four years."
 He was invited back to Japan time
after time where he became a
revered counselor. For his efforts he
was awarded the Second Order of
the Sacred Treasure by the Emperor .
Japanese scientists and engineers
named the famed Deming Prize after
him. It is bestowed on organizations
that apply and achieve stringent
quality-performance criteria.
 Deming prize
Established in December 1950 in honor
of W. Edwards Deming, was originally
designed to reward Japanese
companies for major advances in
quality improvement. Over the years it
has grown, and is now also available to
non-Japanese companies, albeit usually
operating in Japan, and also to
individuals recognized as having made
major contributions to the
advancement of quality. The awards
ceremony is broadcast every year in
Japan on national television.
Tata Steel 2008 & Mahindra & Mahindra
tractors(2003)
 DEMING'S 14
PRINCIPLES
PRINCIPLE 1 : "Create a constancy of
purpose"
Define the problems of today and the future
allocate resources for long-term planning
allocate resources for research and education
constantly improve design of product and service
PRINCIPLE 2 : "Adopt the new
philosophy"
Quality costs less not more
The call for major change
Stop looking at your competition and look at your customer
instead
PRINCIPLE 3 : "Cease dependence on inspection"
Quality does not come from inspection
Mass inspection is unreliable, costly, and ineffective
Inspectors fail to agree with each other
Inspection should be used to collect data for process control
 PRINCIPLE 4 : "Do not award business based on price
tag alone"
Price alone has no meaning
Change focus from lowest initial cost to lowest total
cost
Work toward a single source and long term
relationship
Establish a mutual confidence and aid between
purchaser and vendor
PRINCIPLE 5 : Improve every process
Improve constantly and forever every process for
planning, production, and service. Search continually
for problems in order to improve every activity in the
company, to improve quality and productivity, and
thus to constantly decrease costs. Institute
innovation and constant improvement of product,
service, and process. It is management's job to work
continually on the system (design, incoming
materials, maintenance, improvement of machines,
supervision, training, retraining).
6. Institute training on the job
Institute modern methods of training on the
job for all, including management, to make
better use of every employee. New skills are
required to keep up with changes in
materials, methods, product and service
design, machinery, techniques, and service.

7 Institute leadership
Adopt and institute leadership aimed at helping
people do a better job. The responsibility of managers
and supervisors must be changed from sheer numbers
to quality. Improvement of quality will automatically
improve productivity. Management must ensure that
immediate action is taken on reports of inherited
defects, maintenance requirements, poor toolsand all
conditions detrimental to quality.
8. Drive out fear
Encourage effective two way
communication and other means to
drive out fear throughout the
organization so that everybody may
work effectively and more productively
for the company
9. Break down barriers
Break down barriers between
departments and staff areas. People in
different areas, such as Leasing,
Maintenance, Administration, must
work in teams to tackle problems that
may be encountered with products or
service.
10. Eliminate exhortations
Eliminate the use of slogans, posters, exhortations for
the work force, demanding Zero Defects and new levels
of productivity, without providing methods.
11. Eliminate arbitrary numerical
targets
Eliminate work standards that prescribe quotas for the
work force and numerical goals for people in
management. Substitute aids and helpful leadership in
order to achieve continual improvement of quality and
.
productivity
12. Permit pride of workmanship
13. Encourage education
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.

14.Top management
commitment and action

Clearly define top management's permanent

commitment to ever improving quality and
productivity, and their obligation to implement all
of these principles. Indeed, it is not enough that
top management commit themselves for life to
quality and productivity. They must know what it is
that they are committed tothat is, what they
must do. Create a structure in top management
that will push every day on the preceding 13
Points, and take action in order to accomplish the
transformation. Support is not enough: action is
required
Kaoru
Ishika
wa
His notion of company-wide quality control
called for continued customer service. This
meant that a customer would continue
receiving service even after receiving the
product.
This service would extend across the
company in all levels of management.
quality improvement is a continuous process,
and it can always be taken one step further.
With his cause and effect diagram (also
called the "Ishikawa" or "fishbone" diagram)
this management leader made significant
and specific advancements in quality
improvement.
 Cause and effect diagram
ALSO CALLED FISH BONE DIAGRAM
 Measurement Man Machines

Faulty testing equipment Poor supervision Out of order

Incorrect specifications Lack of concentration Tooling problems

Improper methods Inadequate training Old / worn

Quality
Inaccurate Problem
temperature Poor process
control Defective from vendor design
Ineffective quality
Not to specifications management
Dust and
Dirt Material- Deficiencies
handling problems in product
design

Environment Materials Method

 With the use of this new diagram, the user can
see all possible causes of a result, and hopefully
find the root of process imperfections.
Both Ishikawa and Deming use this diagram as
one the first tools in the quality management
process.
Ishikawa explored the concept of quality circles--
a Japanese philosophy which he drew from
obscurity into world wide acceptance.
He continually urged top level executives to take
quality control courses, knowing that without the
support of the management, these programs
would ultimately fail.
 QUALITY CIRCLE
The Quality Circle Concept was started in Japan by Prof. Ishikawa who is
known as The Father of Quality Circle Movement. The contribution of
the Quality Circles in making Japan an economic superpower has led many
countries to adopt this concept. In India Quality Circle Forum was started
in 1980 with Headquarters at Hyderabad.
Quality Circles defined:
It's a small group comprising of 6 to 12 employees doing similar work
meet together voluntarily on a regular basis for identifying improvements
in their respective work areas.
Their aim to achieve and so also to sustain excellence towards mutual
upliftment of employees as well as the organization.
Definition of Quality
Circle
A small group of between six and
twelve people who do the same or
similar work, voluntarily meeting
together regularly for about an hour
per week in paid time, usually under
the Leadership of their own
supervisor, and trained to identify,
analyze, and solve some of the
problems in their work, presenting
solutions to management, and where
possible, implementing the solutions
themselves.'
 WHY Quality
Circles
QualityCircle is one of the
employee participation methods.

Itcreates conditions and

environment of work that stimulates
commitment towards excellence.

Quality Circles utilize the potential

of people for improvement in
quality.
Roles and Responsibilities

The Success of the quality circle

depends solely on the attitude of the
top management and plays an
important role to ensure the success of
implementation of quality circles in the
organization.
 Roles and Responsibilities

Steering committee called middle

management consists of chief executive
heads of different divisions or a
coordinator plays a positive role in quality
circles activities for the success of the
efforts.
The meetings are conveyed at least once in
one or two months interval.
 Roles and Responsibilities

Coordinator, who also acts as a

facilitator, is an individual responsible for
coordinating and directing the quality
circles activities within an organization
and carries out such functions as would
make the operations of quality circles
smooth, effective and self-sustainable.
 Roles and Responsibilities

Facilitator acts as a catalyst, innovator, promoter and

teacher and is nominated by the management. His Roles
are as follows:
i.Communicating with all levels of management and
obtaining their support;
ii.Facilitating the training of QC leaders and members;
iii.Maintaining an open and supportive environment;
iv.As a mediator in problem solving;
v.Evaluating the cost and benefits of the QC program and
reporting it to the management
Roles and Responsibilities

The leader is chosen by the members amongst themselves

and is rotated on a regular basis. His role is mainly as
follows:

i.Training members on problem solving techniques with the

assistance of the facilitator as and when required;
ii.Fostering the spirit of cooperation amongst the members;
iii.Assisting the circle members in record keeping and in the
preparation of management presentations;
iv.Conducting meeting in an orderly and effective manner;
v.Encouraging other people to become members;
vi.Enforcing team discipline and channelizing the efforts
effectively
 Roles and Responsibilities

Members of the quality circles are a small group of people

from the same work area or doing similar type of work
whereas non-members are those who are not the members
of the QC but provide suggestions. Members are expected to;

i.Attend meetings regularly;

ii.Direct their efforts towards solving work-related problems;
iii.Identifying problems, contributing ideas, undertaking
research and investigating (where necessary) and assisting
the QC in problem solving;
iv.Participating in management presentations
The objectives of Quality Circles

a) Change in Attitude.
From "I don't care" to "I do care"

b) Self Development
Bring out 'Hidden Potential' of people, People get to learn additional
skills.

c) Development of Team Spirit

-Individual Vs Team "I could not do but we did it
Eliminate inter departmental conflicts.

d) Improved Organizational Culture

Positive working environment.
Total involvement of people at all levels.
Higher motivational level.
Rise Organizational moral
Inspire more effective team work
Promote Job involvement
Create problem solving capabilities
by members of QCs themselves
Promote personal and leadership
development
Improve communication within the
organization
Promote cost function
Increase employee motivation
INTANGIBLE BENEFITS OF QUALITY
CIRCLE
Developing the ability of self expression
Personal Growth resulting from long-term group
educational activities.
Greater self-confidence
Member morale increase
Level of self supervision improves
Helps develop ability to work in teams and
appreciate others point of view
Better exchange of ideas and improvement in
communication
The co-operative activities of the circle cement
human relations.
It facilitates the satisfaction of members self-esteem
needs.
The social need of human beings for belonging to a
Limitations and problems
of QC
Lack of management
commitment and support
Lack of clear objectives
Unrealistic expectations for fast
results
Failure to get solutions
implemented
Inadequate training
 HR AND QUALITY CIRCLE
PHILOSOPHY OF QUALITY CIRCLE
The man on job knows more about its
problem than anyone else.
Every person is inherently talented
and a conducive environment brings
the best out
People building is more important
than people using

Motivation, Participation and

Recognition are the three major
 QUALITY CIRCLE AT WORK
XEROX one of the most well known firms in the world has
benefitted from it.
Xerox reduced waste production by 65000 tonnes annually-with
the help of Quality Circles.

United Airlines one of the largest carriers in the USA

Quality circles at UA helped tackle the issue of sick leaves.
Result: Sick leaves were down by 17% and UA could save 18.2
million dollars
QUALITY CIRCLE AT WORK(CONTD)
BHEL-Navratna PSU one of the largest PSUs in INDIA.
BHELs Tiruchirapalli Plant : A large heavy engineering units
manufacturing boilers and an entire range of equipments required for a
thermal power unit.
BHEL-pioneer in implementing QCs in INDIA. Introduced it in 1981.
Introduced in 1984 at the Tiruchirapalli Plant.
Impact of Quality Circles in BHEL
Cohesive team work and team spirit.
Work itself is more enjoyable.
Improvement in interpersonal and intergroup relations.
Improvement in the quality of workmanship within the work group.
Greater and prompter response to suggestions given.
Attitudinal changes.
A greater sense of belonging to the group and the organization as a
whole.
Positive approach.
Mutual trust.
QUALITY CIRCLE AT WORK(CONTD)
The positive impact at the plant lead to the encouragement of the QC concept
10% in crease in the number of Quality Circles at BHEL
 Toyota Motor
Corporation
Toyota Motor Corporation introduced total quality
control or TQC in 1971. Fours years later, the
company was awarded the Deming Application
Prize for their efforts. TMC began Quality Circles
activities in 1974 in pursuit of the Deming Prize
and has continued to sustain them for more than
40 years since then.
In 1993 the company deployed its New QC Circle
Activities. By the end of 2004 Toyota Motor
Corporation, focusing on its skilled workplaces
(Operations Group) boasted a domestic QC Circle
participation of approximately 40,000 members
in nearly 4,400 circles.


TQMs primary aims at Toyota are improving the quality

of work and enlivening the organisation and people that
make up the company. Three core principles are
employed towards these aims: putting the customer
first, continuous kaizen (improvement), and 100%
participation. QC Circles are considered an important
TQM activity in addition to the other representative
tools of TQM employed.
Toyota Motor Corporation carries out their QC activities
with three aims in mind.
The first is to develop the abilities of individuals in the
workforce and empower them to self-fulfilment.
The second to develop an attitude of mutual respect
among members and create a motivating environment.
Third, to contribute to corporate development by
fostering continuous improvement of the workplace.
Juran defines quality as "fitness
for use
Juran goes on further to quantify
"fitness for use" in two different
categories:
1. Product features that meet
customer needs
2. Freedom from deficiencies
 To achieve the first objective, Juran, like Deming,
proposes that the producer learn what the customer
expects from the product. In many cases, this also
includes determining who the end customer really is.
At this point, the task is to translate the customer
demands into the desired production specifications and
features, and come up with a coherent PLAN to
produce them.
The second objective is achieved through
MEASURING the results of production and how well-
received the product is in the marketplace.
By comparing the actual results with the desired results,
acting on deficiencies and providing feedback into the
system, continuous IMPROVEMENT can be attained.
These three activities - quality planning, quality control,
and quality improvement - are known as the Juran
Trilogy.
Quality Trilogy
Philip
B.
Crosby
 Phillip B. Crosby, a corporate vice-president and director
of quality for 14 years, gained a lot of attention when he
published his book Quality is Free in 1979.
The conventional wisdom at that time was that each
level of quality has some price.
For example, reducing the level of defect from 8 percent
to 3 percent would cost a lot. The basis of this believe
was the notion that improvements in quality require the
purchase of improved machines, better materials, or
more skilled labour.
Crosby pointed out that poor quality has hidden costs:
increased labour and machine hours, increased machines
failures , customer dissatisfaction, delivery delays, lost
future sales, and even increased warranty costs.
Crosby believes that these costs typically dwarf the
costs of machines, materials, and training needed to
foster high quality.
The savings created by reduction of hidden costs can
offset the costs incurred to create the proper
environment.
 The Fourteen Steps to Quality
Improvement
1) Make it clear that management is
committed to quality.
2) Form Quality Improvement Teams with
senior representatives from each
department.
3) Analysis processes to determine where
current and potential quality problems lie.
4) Evaluate the cost of quality and explain
its use as a management tool.
5) Raise the quality awareness and personal
concern of all employees.
6) Take actions to correct problems identified
through previous steps.
 7) Establish progress monitoring for the improvement process.
8 ) Train supervisors to actively carry out their part of the
quality improvement programme.
9) Hold a Zero Defects Day to reaffirm management
commitment.
10) Encourage individuals to establish improvement goals for
themselves and for their group.
11) Encourage employees to tell management about obstacles to
improving quality.
12) Recognize and appreciate those who participate.
13) Establish Quality Councils to communicate on a regular
basis.
14) Do it all over again to emphasize that the quality
improvement process never ends
 Zero defects
Zero defects is referred to as a philosophy, a mentality or a
movement. It's not a program, nor does it have distinct steps to
follow or rules to abide by.
This is perhaps why zero defects can be so effective, because it
means it's adaptable to any situation, business, profession or
industry.
Zero defects is NOT about being perfect. Zero defects is about
changing your perspective. It does this by demanding that you:
Recognize the high cost of quality issues.
Continuously think of the places where flaws may be
introduced.
Work proactively to address the flaws in your systems and
processes, which allow defects to occur.
"The quality manager must be clear, right
from the start, that zero defects is not a
motivation program. Its purpose is to
communicate to all employees the literal
meaning of the words 'zero defects' and the
thought that everyone should do things right
the first time."
"Quality Is Free" by Philip B. Crosby
(McGraw-Hill Books, 1979)
 'Zero defects' does not mean that people
never make mistakes, but that companies
should not begin with 'allowances' or sub-
standard targets with mistakes as an in-built
expectation.
Systems that allow things to go wrong - so
that those things have to be done again -
can cost organisations between 20% and
35% of their revenues, in Crosby's
estimation.
Note..
Ifyou fanatically follow a zero
defects approach in areas which
don't need it, you'll most likely be
wasting resources. One of the
most important of these
resources is time, and this is
where people are accused of
time-destroying "perfectionism."
 Taguchi
Genichi Taguchi born January 1, 1924, was an
engineer and statistician.
From the 1950s onwards, Taguchi developed a
methodology for applying statistics to improve the
quality of manufactured goods.
Taguchi's key argument was that the cost of poor
quality goes beyond direct costs to the
manufacturer such as reworking or waste costs.
Traditionally manufacturers have considered only
the costs of quality up to the point of shipping out
the product. Taguchi aims to quantify costs over
the lifetime of the product. Long term costs to the
manufacturer would include brand reputation and
loss of customer satisfaction leading to declining
market share.
Genichi Taguchi's Quality Loss
Function

The Quality Loss Function gives a financial

value for customers' increasing dissatisfaction
as the product performance goes below the
desired target performance.
Equally, it gives a financial value for increasing
costs as product performance goes above the
desired target performance. Determining the
target performance is an educated guess, often
based on customer surveys and feedback.
The quality loss function allows financial
decisions to be made at the design stage
regarding the cost of achieving the target
performance.
 Quality through Robust Design
Methodology
Taguchi methods emphasised quality
through robust design, not quality
through inspection. Taguchi breaks the
design process into three stages:
System design - involves creating a
working design first
Parameter design - involves
experimenting to find which factors
influence product performance most
Tolerance design - involves setting
tight tolerance limits for the critical
factors and looser tolerance limits for
less important factors.
Taguchis Robust Design
methodologies allow the designer
through experiments to
determine which factors most
affect product performance and
which factors are unimportant.

The designer can focus on

reducing variation on the
important or critical factors.
Unimportant or uncontrollable
noise factors have negligible
impact on the product
performance and can be ignored.
Robust Design of
Cookies....... Example
This is easier explained by example. If your business
makes cookies from raw ingredients, there are many
possible factors that could influence the quality of
the cookie - amount of flour, number of eggs,
temperature of butter, heat of oven, cooking time,
baking tray material etc.
With Genichi Taguchis Robust Design methodologies
you would set up experiments that would test a
range of combinations of factors - for example,
high and low oven temperature, with long and short
cooking time, 1 or 2 eggs, etc. The cookies resulting
from each of these trials would be assessed for
quality.

Astatistical analysis of results would

tell you which are the most
important factors, for example
oven temperature affects cookie
quality more than the number of
eggs.

With this knowledge you would

design a process that ensures the
oven maintains the optimal
temperature and you would be able
to consistently produce good cookies.