The Deming’s Philosophy

 W. Edward Deming, considered as biggest guru in quality management

 He gave 14 points on his quality philosophy

Aim & Purposes of the Organization

o Must include investors, customers, employees, suppliers, community and a
quality philosophy
o Follow concept of family organization

Learn the New Philosophy

o Seek never-ending improvements
o Zero tolerance for nonconformance
o Concentration on defect prevention rather than …………….
 The Deming’s Philosophy

Learn the New Philosophy (Cond.)

o Mass inspection……………..avoiding failure
o Defect Prevention…………..manage to get success

Stop Awarding business on Price Alone

o Price has no meaning without quality
o Single item, single supplier
o SPC during procurement
o Material check through entire cycle
 The Deming’s Philosophy

Improve Constantly and forever

o Active in finding and correcting problems
o Preventing problems before any happening

Teach & Institute Leadership

o Employees’ orientation to the organization’s commitment for quality
o Creation of positive, supportive and learning environment
o Theory X & Theory Y
o Clear communication
 Theory X
Based on Pessimistic assumptions:
 Employees have no ambitions to work
 Go away from responsibilities
 Individual goal oriented
 Less intelligent than their manager
 Lazier than their manager
 Work only for salaries and other benefits

Conclusion (Management though)

 Work efficiently under tight control
 All activities should be traced and monitored strictly
 Reward or punishment should be on the basis of outcome
 Authoritarian type leadership style
 Theory Y
Based on Optimistic assumptions:
 Employees are internally motivated
 Enjoy their work in the company
 Work for self-satisfaction too
 Don’t require continuous supervision
 Take full responsibilities

Conclusion (Management thought)

 Involve employees in critical decisions
 Consider employees as an asset
 Create a healthier and productive relationship with employees
 Democratic type leadership
 The Deming’s Philosophy

Create trust instead of fear and climate for innovation

o Open, effective communication and teamwork
o Fear……..Job insecurity, performance appraisals, poor supervision
o Proper training, good supervision, proper environment to do job
o Treat employees with dignity

Eliminate Numerical Quotas

o Focus on quality and methods of improvements
o Quotas and work standards on quality rather than quantity
o Realistic quotas with the help of SPC
 The Deming’s Philosophy
Creating Pride among employees
o Proper Job description
o Job Specification
o Proper tools and materials
o Proper training
o Understanding their problems
o Justified salaries and other benefits
 Role of leaders in TQM
• Training about leadership skills and problem solving at all level (GE
Example)

• Active in all areas, like visiting customers and work premises

• “Gemba” leadership concept in Japan (empowerment concept trough

quality cycles)

• Not to take final decision by their own rather participative style

• Delegation of authority and responsibility

• Leaders’ own knowledge base about quality related issues

 Role of leaders in TQM
• Providing necessary resources for training, necessary tools, techniques and
safety

• Appreciated the success and celebrate milestones

• Compensations and reward system must be linked with quality standard

implementation

• Must be visible by coaching and teaching in seminars

• Lead by Example
 Effective leadership in TQM
• Effective leadership capitalizes on market and environment opportunities,
thorough analysis of competitors, analyzing own core competencies

• Four requirements of effective leadership:

1. Developing a clear and documented corporate mission
 Senior management team needs to spend some time away from “coal
face” and develop this mission

 It includes the definition of business, a commitment to market leader

or quality

 Target sector and the position of the company in the business

 Effective leadership in TQM
2. Develop clear and effective strategies and supporting plans for
achieving the ………..

 Development of business and service strategies like selection of

products / services (product / service portfolio), selection of vendors,
criteria of selecting vendors, factory locations etc

 Position in the market

 Advisable to include lower management too in this process

 Effective leadership in TQM
3. Identify Critical Success Factors (CSFs)

 Most important sub-goals of a business or organization

 These CSFs must be accomplished for the mission to be achieved.

 These CSFs are achieved through core business processes. These core
processes must be done particularly well

 Develop some performance measures that indicate some progress

towards goal
 Effective leadership in TQM
4. Review the Management Structure

 Align organizational structure with strategies and CSFs. It includes

addition / removal of hierarchies, posts or cadres

 Proper job descriptions according to CSFs and core business

processes. These job description shouldn’t be duplicated. Operational
procedures should be explained to them properly

 Establishment of a “process improvement team” that will

continuously go through the organizational and process structure for
any possible improvement
 Implementation of TQM
• Starts with CEO commitment

• Even more important in the start of the TQM

• Lack of management commitment is the principle reason (42%)

• Self learning about TQM before teaching others (through visiting other
successful organizations, seminars, articles etc)

• Timing of implementation is very critical (management change,

organizational restructuring, current crisis, external environment
challenges, transient period of a structural change, downsizing etc)
 Implementation of TQM
• Active involvement of middle managers and frontline supervisors (because
they are responsible for achieving many of the organization’s performance
goals)

• Middle managers create a enduring link between top and lower

management

• If there is a union at industry level, then organization should discuss the

TQM initiatives in the very beginning stage.

• Customers, employees and suppliers surveys must be conducted to set

benchmark for all processes
Malcolm Baldrige National Quality Award
Customer Driven Excellence
• Quality is judged by …………

• Customer preference, satisfaction and retention should be the focus

• Organization should include those features that differentiate its product /

service from competitor’s offering (like modified offering, combinations of
products, rapid response or customized offering)

• Needs constant sensitivity towards customer and market requirements,

awareness about competitors’ offering (like technology they use, their
offerings, their possible moves)
 Malcolm Baldrige National Quality Award
Organizational & Personal learning

• Continuous improvement in existing system and adaptation to external changes and

approaches

• Practiced at all level (personal and organizational)

• Sharing knowledge vertically and horizontally

• Sources of learning: individual’s ideas, R&D, customers’ input, best practices sharing

• Advantages: enhancing product / service value, reducing errors, improved responsiveness,

shortening development cycle

• Employees’ learning: On-the-job training, job rotation, job enrichment

• Personal learning benefits: more satisfied employees who stay with the organization, cross-
functional learning, improved environment for innovation, more adaptation
Malcolm Baldrige National Quality Award
Valuing Employees and Partners

• Valuing employees means committed with their satisfaction, development and

well-being

• Flexibility in performing work, work-life balance

• How to value your employees: demonstrate commitment for their well-being,

recognition beyond regular compensation, their progress within organization,
providing risk-taking environment

• Example: Southwest airlines puts customer second, and employees first. It

refused to lay-off employees during economic meltdown. Consequently, most
productive workforce (twice the number of passengers per employee)
Malcolm Baldrige National Quality Award
Valuing Employees and Partners (Cont.)

• Internal & external partnerships helps in achieving overall goals

• Internal partnership includes networked relationship and knowledge sharing

among work units

• External partnerships with customers, suppliers, distributors and educational

institutes

• Strategic partnerships are increasingly important (entry into a new market

segment, launching of new product or services, blending core competencies with
the partners to better compete with competitor)

• Strategic partnership may take shape in the form of merger, acquisition, joint
ventures, takeover
 Malcolm Baldrige National Quality Award
Agility
• Business needs rapid, flexible and customized responses

• Ever-shorter cycle for the introduction for new and improved products & services

• Flexible and swift response to customers’ queries

• Major challenge is design-to-introduction cycle time (research to

commercialization). It needs concurrent engineering activities

• Cycle time has become a key process measure. All performance parameters are
linked with time improvement

• Cross-trained and empowered employees are crucial in this environment

• Example: Southwest Airlines reduced its operating expense by 25% through better
time management
Malcolm Baldrige National Quality Award
Focus on the future

• Thorough understanding of short term and long term factors

• Future planning includes factors such as customers’ expectations, new

business and partnership opportunities, technological development, new
market segment, new regulation, and moves by competitors

Managing the Innovation

• Innovation – making “meaningful” changes in products / services

• Innovation should be a part of organizational culture