Contribution of Deming ,

Crosby , Taguchi
By Mrs Swati Vijay
 History of Quality
• In early 20th century,manufacturers began to include
quality processes in quality practices
• After United States entered into World War II, the quality
became critical component of war effort
• Every unit has different types of bullets. To simplify and
speed up this process military began to use sampling
techniques and inspection.
• Shewart worked on statistical processing tools for
uniformaty in products
• Uniformity in products, non conformance became the
part of American industry
• In 1942 the concept of acceptance sampling was
devisedand it was known as Military Standard no XL
• In this environment America n industry became
overconfident
 History of Quality
• After world war Japanese welcomed the Americans
Joseph M Juran and W Edword Deming and focused
on improving all organisational processes through the
people who used them
• Camera’s once produced by Bell and Howell in USA
began to be produced by Canon in Japan
• Mass production of motorbikes was almost
completely taken over by firms Honda and Kawasaki
• Same was true for car manufacturing
• By 1970 , US industrial sectors such as automobiles
and electronics had been broadsided by Japan’s high
quality competition
• And now quality movement is seen as Total Quality
Management
 Chapter 15 Quality Management

• Quality management refers to systematic

policies, methods, and procedures used to
ensure that goods and services are produced
with appropriate levels of quality to meet the
needs of customers.
• Organizations today integrate quality principles
into their management systems using tools
such as Total Quality Management (TQM), Six
Sigma, and Lean Operating Systems.
 Chapter 15 Quality Management

Understanding Quality
• Quality can be a confusing concept, partly
because people view quality in relation to
differing criteria based on their individual roles
in the value chain, such as:
 perfection,
 delighting or pleasing the customer,
 eliminating waste,
 doing it right the first time, and/or
 consistency.
 Chapter 15 Quality Management

Understanding Quality
• Fitness for use is the ability of a good or
service to meet customer needs.
• Quality of conformance is the extent to
which a process is able to deliver output that
confirms to design specifications.
• Specifications are targets and tolerances
determined by designers of goods and
services.
 Chapter 15 Quality Management

Understanding Quality
Principles of Total Quality
1. A focus on customers and stakeholders,
2. A process focus supported by continuous
improvement and learning, and
3. Participation and teamwork by everyone
in the organization.
 Examples of Quality Dimensions

Dimension (Product) (Service)

Automobile Auto Repair
1. Performance Everything works, fit & All work done, at agreed
finish price
Ride, handling, grade of Friendliness, courtesy,
materials used Competency, quickness
2. Aesthetics Interior design, soft touch Clean work/waiting area

3. Special features Gauge/control placement Location, call when ready

Convenience Cellular phone, CD Computer diagnostics
High tech player

4. Safety Antilock brakes, airbags Separate waiting area

 Examples of Quality Dimensions
(Cont’d)

Dimension (Product) (Service)

Automobile Auto Repair
5. Reliability Infrequency of breakdowns Work done correctly,
ready when promised

6. Durability Useful life in miles, resistance Work holds up over

to rust & corrosion time

7. Perceived Top-rated car Award-winning service

quality department

8. Service after Handling of complaints and/or Handling of complaints

sale requests for information
 Chapter 15 Influential Leaders in Quality Management

W. Edwards Deming
• Focus on bringing about improvements in product
and service quality by reducing uncertainty and
variability in goods and services design and
associated processes (the beginning of his ideas
in 1920s and 1930s).
• Higher quality leads to higher productivity and
lower costs.
• “14 Points” management philosophy.
• Deming Cycle – Plan, Do, Study, and Act.
 Evolution of TQM philosophies
• The Deming Philosophy
Definition of quality, “A product or a service possesses quality if it
helps somebody and enjoys a good and sustainable market.”

Improve quality Decrease cost because Productivity improves

of less rework, fewer
mistakes.

Long-term Stay in Capture the market

competitive business with better quality
strength and reduced cost.
 Deming’s 14-point
Management Philosophy

1. Create constancy of purpose for

continual improvement of products
– Create constancy of purpose for
improvement of systems, products and
services, with the aim to become
excellent, satisfy customers, and provide
jobs. Reduced defects and cost of
development.
 Deming’s 14-point
Management Philosophy

2. Adopt a commitment to seek continual

improvements
• Constantly and forever improve the system
development processes, to improve quality
and productivity, and thus constantly
decrease the time and cost of systems.
Improving quality is not a one time effort.
 Deming’s 14-point
Management Philosophy

3. Switch from defect detection to defect

prevention
• Cease dependencies on mass inspection
(especially testing) to achieve quality. Reduce
the need for inspection on a mass basis by
building quality into the system in the first
place. Inspection is not the answer. It is too
late and unreliable – it does not produce
quality.
 Deming’s 14-point
Management Philosophy

4. In dealing with suppliers one should end

the practice of awarding business on
price. Move towards quality of product,
reliability of delivery and willingness to
cooperate and improve. Build
partnerships.
• Minimize total cost. Move towards a single supplier
for any one item or service, making them a partner
in a long-term relationship of loyalty and trust.
 Deming’s 14-point
Management Philosophy

5. Improvement is not confined to

products and their direct processes
but to all supporting services and
activities
• All functions in an organization need to
become quality conscious to deliver a quality
product.
 Deming’s 14-point
Management Philosophy

6. Train a modern way.

• Institute training on the job. Everyone must be
trained, as knowledge is essential for
improvement.
 Deming’s 14-point
Management Philosophy

7. Supervision must change from

chasing, to coaching and support.
• Institute leadership. It is a manger’s job to
help their people and their systems do a
better job.
 Deming’s 14-point
Management Philosophy

8. Drive out fear and encourage two-way

communication.
• Drive out fear, so that everyone may work
effectively. Management should be held
responsible for the faults of the organization
and environment.
 Deming’s 14-point
Management Philosophy

9. Remove barriers between

departments
• Break down barriers between areas. People
must work as a team. They must foresee and
prevent problems during systems
development and use.
 Deming’s 14-point
Management Philosophy

10. Do not have unrealistic targets

• Set realistic targets. Do not place people
under unnecessary pressure by asking them
to do things which are not achievable.
Eliminate slogans, exhortations, and targets
that ask for zero defects, and new levels of
productivity. Slogans do not build quality
systems.
 Deming’s 14-point
Management Philosophy

11. Eliminate quotas and numerical

targets
• Eliminate numerical quotas and goals.
Substitute it with leadership. Quotas and
goals (such as schedule) address numbers -
not quality and methods.
 Deming’s 14-point
Management Philosophy

12. Remove barriers that prevent

employees having pride in the work
that they perform
• Remove barriers to pride of workmanship.
The responsibility of project managers must
change from schedules to quality.
 Deming’s 14-point
Management Philosophy

13. Encourage education and self-

improvement for everyone
• Institute and vigorous program of education
and self-improvement for everyone. There
must be a continuing commitment to training
and educating software managers and
professional staff.
 Deming’s 14-point
Management Philosophy

14. Publish top management’s permanent

commitment to continuous
improvement of quality and
productivity
 The Deming philosophy

• “A System of Profound Knowledge”

1. Appreciation for a system - A system is a set of
functions or activities within an organization that work
together to achieve organizational goals. Management’s
job is to optimize the system. (not parts of system, but
the whole!). System requires co-operation.
2. Psychology – The designers and implementers of
decisions are people. Hence understanding their
psychology is important.
 The Deming philosophy

3. Understanding process variation – A production process

contains many sources of variation. Reduction in
variation improves quality. Two types of variations-
common causes and special causes. Focus on the special
causes. Common causes can be reduced only by change
of technology.
4. Theory of knowledge – Management decisions should
be driven by facts, data and justifiable theories. Don’t
follow the managements fads!
Philip B. Crosby
• Wrote Quality is Free in 1979, which brought quality to the
attention of top corporate managers in the U.S.
• Crosby’s Absolutes of Quality Management include:
 Quality means conformance to requirements, not
elegance.
 There is no such thing as a quality problem.
 There is no such thing as the economics of quality; doing
the job right the first time is always cheaper.
 The only performance measurement is the cost of quality,
which is the expense of nonconformance.
 The only performance standard is Zero Defects (ZD).
The GAP model recognizes that there are
several ways to misspecify and mismanage the
creation and delivery of high levels of quality.
– Gap 1 is the discrepancy between customer
expectations and management perceptions
of those expectations.
• Gap 2 is the discrepancy between
management perceptions of what features
constitute a target level of quality and the
task of translating these perceptions into
executable specifications.
Exhibit 15.2 Gap Model of Quality
 Chapter 15 The GAP Model

• Gap 3 is the discrepancy between quality

specifications documented in operating and
training manuals and plans and their
implementation.
• Gap 4 is the discrepancy between actual
manufacturing and service delivery system
performance and external communications to
the customers.
• Gap 5 is the difference between the customer's
expectations and perceptions. The fifth gap
depends on the other four.
 14 Steps to Improvement
1. Establish management commitment
2. Form a quality team
3. Establish quality measures for each activity
4. Evaluate cost of quality and indicate where corrective actions will lead
to profit gains
5. Create awareness in employees by training supervisors with
appropriate materials
6. Instigate action by encouraging employees to fix defects or ntify
someoine who can fix them
7. Designate a committee to find how to implement zero defects program
8. Train employees and supervisors so they understand the steps
9. Hold a “ZD” day to demonstrate company commitment
10. Employees set goals on a 30, 60 or 90 day schedule
11. Identify the causes of errors and remove them from processes
12. Initiate award programs to award employees who meet their goals
13. Establish Quality Councils and hold regular meetings
14. Do it all over again.
 Genichi Taguchi

TAGUCHI’S
QUALITY
LOSS

FUNCTION
 Background
Background of
of the
the
Taguchi
Taguchi Method
Method
Slide
Slide 11 of
of 7
7
• History and Impact
– The Taguchi method was first introduced
by Dr. Genichi Taguchi to AT&T Bell
Laboratories in 1980.
– Taguchi method for improving quality is
now commonly views as comparable in
importance to statistical process
control(SPC), the Deming approach, and
the Japanese concept of total quality
control.
Taguchi Loss Function
Definition
• Taguchi defines Quality as “the loss imparted by
the product to society from the time the product is
shipped.”
• Losses may include maintenance costs,
failure costs, ill effects to the environment
such as pollution, or excessive costs of
operating the product, cost, customer
satisfaction, poor design

• Product to be produced “being within

specification”
 Taguchi’s Vs Traditional
Approach

Taguch’s Traditional
When a product moves There is Good or Bad
from its Target will Products only as per
cause the loss even if Limits
the product lies or not
within Limits
Taguchi’s Quadratic Quality
Loss Function
• Quality Loss Occurs when a product’s
deviates from target or nominal value.
• Deviation Grows, then Loss increases.

• Taguchi’s U-shaped loss Function Curve.

 The
The Taguchi
Taguchi Method
Method

Classical QC-Step Function

Scrap Cost

LSL USL
Target

A
 The
The Taguchi
Taguchi Method
Method

• Quality Loss Function

– See the figure in the Previous slide:
• In the figure, a measurement is taken of the
critical product characteristic. This is shown in
the figure as A. If A is within the specification
limits, the traditional conclusion was that it
wasn’t a problem. However, point A is closer to
being out of specification than to being at the
target measurement. This means that over
time, it might cause a problem. Taguchi calls
this potential for problem a potential loss to
society.
 Taguchi’s U-shaped loss
Function Curve.

Taguchi loss Fn

Scrap or Rework Cost.

Loss

Measured
characteristic

LTL Nominal UTL

 The
The Taguchi
Taguchi Process
Process

• Step 1: Problem Identification

– First, the production problem must be
identified. The problem may have to do
with the product process or the service
itself.
• Step 2: Brainstorming Session
– Second, a brainstorming session to identify
variables that have a critical affect on
service or product quality takes place.
 The
The Taguchi
Taguchi Process
Process

• Step 2: Brainstorming Session

(continued)
– The critical variables identified in the
brainstorming sessions are referred to by
Taguchi as factors.
– These may be identified as either control
factors (variables that are under the control
of management) or signal factors
(uncontrollable variation).
 The
The Taguchi
Taguchi Process
Process

• Step 3: Experimental Design

– Using the factors, factor levels, and
objectives from the brainstorming session,
the experiment is designed. The Taguchi
method uses off-line experimentation as a
means of improving quality. This contrasts
with traditional on-line (in process) quality
measurement.
 The
The Taguchi
Taguchi Process
Process

• Step 4: Analysis
– Experimentation is used to identify the
factors that result in closest-to-target
performance. If interactions between
factors are evident, two alternatives are
possible. Either ignore the interactions
(there is inherent risk to this approach) or,
provided the cost is not prohibitive, run a
full factorial experiment to detect
interactions.
 The
The Taguchi
Taguchi Process
Process

• Step 6: Confirming Experiment

– Once the optimal levels for each of the
factors have been determined, a
confirming experiment with factors set at
the optimal levels should be conducted to
validate the earlier results. If earlier results
are not validated, the experiment may have
somehow been significantly flawed. If
results vary from those expected,
interactions also may be present, and the
experiment should, therefore, be repeated.
 Loss Fn
Taguchi uses Quadratic
Equation to determine loss
• L (x) = k (x-N)² Curve
Where L (x) = Loss Function,
k = C/d² = Constant of proportionality, where C
– Loss associated with sp limit
d - Deviation of specification
from target value
x = Quality Features of selected product,
N = Nominal Value of the product and
(x-N) = Tolerance
Problem

• A part dimension on a power tool is specified

as 32.25±0.25.Company records show±0.25
exceeded & 75% of the returned fo
replacement. Cost of replacement is
Rs.12,500.Determine k & QLF.
Solution : Expected Cost of repair
C = 0.75(12500) = Rs 9,375
k = C/d²= 9375/(90.25)² = Rs 1,50,000
QLF =L (x) 1,50,00(x-N)
Thank You