TOTAL QUALITY MANAGEMENT

DEMING AND QUALITY

Major contributions to quality Management:
 His 14 points for management
 His seven deadly diseases and sins
 His cycle or action plan (Plan-Do-Check-Action)
 His Triangle
 His chain reaction
DEMING’S 14 POINTS FOR MANAGEMENT
1. Create constancy of purpose towards the
improvement of products and services in order
to become competitive, stay in business and
provide job
2. Adopt new philosophy, management should
learn that it is a new economic age and awaken to
challenges, earn their responsibilities and take on
leadership
3. Stop depending on inspection to achieve
quality, build in quality from the first
4. End the practice of awarding business on price
tag alone
DEMING’S 14 POINTS FOR MANAGEMENT..
5. Improve constantly and forever the system of
production and service, improve productivity
and reduce costs
6. Institute training on the job
7. Adopt and institute modern methods of
supervision and leadership, to help the people
and technology work better
8. Drive out fear, so that every one work effectively
9. Break down barriers between departments and
individuals
DEMING’S 14 POINTS FOR MANAGEMENT..
10. Eliminate the use of slogans, posters and
exhortations
11. Eliminate work standards and numerical quotas
12. Remove barriers that rob employees of their pride
of workmanship
13. Institute a vigorous program of education and self-
improvement
14. Define top management’s permanent commitment
to ever-improving quality and productivity
DEMING’S 14 POINTS FOR MANAGEMENT..
 Deming used his 14 points for the management
to emphasize the critical role of managers in
TQM
 He saw mangers rather than workers or
equipments as the real obstacle to TQM
 In his opinion, 85% of quality problems could
be traced to the management while workers
are responsible for the remaining 15%
DEMING’S TRIANGLE

Management commitment to
improvements - pts 1,2,14

Improve interrelationships – Apply to the statistical

pts 4,7,8,9, 10,11,12 methodology – pts 3,5,6,13

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TQM TRIANGLE
COMMITMENT
(Obsession with quality)

INVOLVEMENT SCIENTIFIC KNOWLEDGE

(All in one team) (Use of scientific method)

Deming, Juran and Crosby emphasized on these three

axioms in their quality philosophies
DEMING’S THEORY OF VARIANCE
Most of Deming’s work revolves around his theory of
variance
This theory views variations from standard activities as
a major source of problems for all processes
 Variance causes unpredictability which
increases uncertainty and reduces control over
processes
 A controlled variance is a variation from standard
process that a worker can correct or manage
 An uncontrolled variance is a variation from the
standard process due to the impact of some factor
outside the control of the employee
DEMING’S THEORY OF VARIANCE

Common Special
Cause Cause
Controlled
variance Management Employee

Uncontrolle
d variance Management Management

Common cause- systematic problems in an operating process

(weakness is product design, equipment malfunctions, poor maintenance
of equipment and incomplete or inaccurate routing documents and bills
of materials
Special cause- short term sources of variation in an operating
10
process that workers could correct (lack of knowledge or skill, worker
negligence, or a batch of incoming materials having bad quality)

Variances can be corrected by workers or managers by either

changing its common causes or removing its special causes
DEMING’S DEADLY DISEASES AND SINS
1. Lack of constancy of purpose
2. Emphasis on short term profits
3. Over reliance on performance appraisals
4. Mobility of management (job hopping)
5. Overemphasis on visible figures
6. Excessive medical costs for employees health
care
7. Excessive costs of warranty and legal costs
DEMING WHEEL OR CYCLE
 Deming wheel or Deming cycle or PDCA Cycle
(Plan-Do-Check-Act) or PDSA (Plan-Do-Study-
Act) cycle is a problem solving process
adopted by firms engaged in continuous
improvements
DEMING CYCLE..
 Plan: Select a process that needs improvement
and sets qualitative goal and develop a plan with
quantifiable measures for improvement
 Do: Implements the plan and monitors progress

 Check/Study: Analyze the data collected during

the ‘do’ step to ding out how closely the results
correspond to the goals in the ‘plan’ step
 Act: If results are successful, document the
revised process so that it becomes the standard
procedure for all who may use it
DEMING’S CHAIN REACTION
 Deming’s chain reaction was first presented in
1950 in Japan after world war II
 It is based on shewart’s concept that productivity
and quality improved as variations reduced
DEMING’S CHAIN REACTION
Improve quality

Costs decrease because of less rework, fewer mistakes,

fewer delays & snags and better use of time and
materials

Productivity improves

Capture the market with better quality and lower price

Stay in business

Provide jobs and more jobs

STRENGTH AND WEAKNESSES OF
DEMING’S PHILOSOPHY
Strength:
 Deming makes a notable prioritation-that
management comes before technology
 Leadership and motivation of employees are
recognized as important
 The work was strong on statistical and quantitative
methods
Weakness:
 There is no clear “Deming method” to achieve total
quality
 The principles and methods have nothing to say about
intervention in situations that are political and
coercive in nature
DEMING’S SYSTEM OF PROFOUND
KNOWLEDGE

 “Deming’s theory of management” or “system of

profound knowledge” is appropriate for
leadership in any culture
 It promotes joy in work for the stakeholders in an
organization
PARADIGM OF DEMING’S THEORY OF
MANAGEMENT

 Deming’s theory of management is based on four

paradigms or belief systems
1. Create an Atmosphere
2. Manage using both a process and a results
orientation
3. Management’s function is to optimize the entire
system
4. Co-operation works better than competition
REVISED VERSION OF DEMING’S 14 POINTS
1. Create a vision and demonstrate management commitment
2. Learn the new philosophy (top management and everyone in
the organization)
3. Understand the purpose of inspection
4. Stop making decision purely on the basis of costs
5. Improve constantly and forever
6. Institute training
7. Institute leadership
8. Drive out fear, create trust and a climate for innovation
9. Optimize the efforts to teams towards the aims and
purposes of the organization
10. Eliminate exhortations for the workforce
11. Eliminate numerical quotas and management by objectives
12. Remove barriers to pride in workmanship
13. Encourage education and self-improvement for everyone
14. Take action to accomplish the transformation
QUALITY GURUS
QUALITY GURUS...

 Feiganbaum coined total quality control

 Kaoru Ishikawa advocated companywide quality
control approach (Fish-bone diagram)
 Genichi Taguchi proposed design of experiments
and quality loss function
 Shigeo shingo proposed Poka-Yoke (Fool proofing)
 Walter shewart developed statistical process
control
CASE STUDY