Presentation of seminar in business

Muhammad Ahsan Abbas

Waqas
Sarfraz
Qasim

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A THEORY OF QUALITY MANAGEMENT
UNDERLYING THE DEMING MANAGEMENT
METHOD

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About of Deming
• He known as William Edward Deming
• He was born in America (1900-1993).
• He had worked as engineer, statistician, professor, author,
lecturer and management consultant.
• W.E. Deming suggested in his book “out of crisis”14 key
principles for management to follow with the objective of
improving the effectiveness of a business organization.

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Deming’s 14 principles of quality management:
1.Constancy of purpose.
2.Adopt new philosophy.
3.Cease dependence on mass inspection to improve quality.
4.Single supplier for one item.
5.Improve constantly and forever the system of production and
service
6.Ensure training on the job
7.Leadership
8.Drive out fear
9.Breakdown barriers
10.Eliminate unclear slogans and targets
11.Eliminate numerical standards
12.Let people be proud of your work
13.Program for Education and self-improvement
14.Involve employees in the transformation
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Following are the Deming’s 14 principles:
1)Constancy of purpose:
• Business firms must strive for quality with consistent flow.
• Achieve sustainable competitive advantage
• Improve business, establish innovation and culture
• Create jobs

2) Adopt new philosophy:

• Learn from competitive organization
• Implement change ( change in management style)
• Address customer needs to stay in business
• Develop quality vision

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3) Cease dependence on inspection to achieve quality:
• Inspection takes time and cost is also incurred on inspection.
• Build quality product right from start i.e. from idea to final
delivery to customer.
• Minimize the number of inspection.

4) Single supplier for one item:

• Minimize product cost by developing relationship with
supplier.
• Relationship based on trust and loyalty.

5) Improve constantly and forever:

• Never stop at one point.
• Improve business and production processes through training
and education.
• Strive to lower production cost consistently.
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6) Ensure training on the job:
• Provide training to employees to deal with new methods of
business and production as and when needed.
• Coworker coaching.

7)Leadership :
• Motivate employees to increase the efficiency.
• Not only supervise but also provide assistance and support so
that they can perform their work well.
• Find ways to how better use human and technological
resources.

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8) Drive out fear :
• Promote feedback and innovation culture.
• Let people to perform task on their own, don’t criticize of they
fail.
• Clearly communicate the expectation to eliminate fear.
• Address concerns and apprehensions.

9) Breakdown barriers:
• Breakdown barriers between different departments e.g. :
production, marketing, engineering, quality management and
finance etc.
• Establish collaboration and team work culture to foresee
problem and market condition.

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10) Eliminate unclear slogans and targets:
• Clearly communicate your expectation.
• Let people know what you want, not through slogans.
• Face to face discussions and performance recognition for good
work.

11) Eliminate Numerical standards:

• Never set targets, modify the processes or look into the
process.
• Often production targets deserve quality.

12) Let people be proud of your work:

• Don’t compare the employees.
• Treat people equally, dignity and respect not by the numbers
of units they produced. This will ultimately increase quality in
their work.
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13) Program for education and self improvement:
• Refresher training, coworker coaching.
• Improve skill set of employees to deal with future challenges.
• Never stop at single point, continuously improve further and
further.

14) Involve employees in the transformation:

• Ensure that employees every step towards quality.
• Transform every body to quality worker from ordinary
worker.

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THE DELPHI METHOD: GENERATING A

PRELIMINARY SET OF CONCEPTS

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THE DELPHI METHOD
• It is a technique developed at the RAND corporation in early
1950s for soliciting, organizing and structuring of judgments
and opinions on particular subjects from panel of experts until
a consensus on the topic is reached.
• Any application of the Delphi method is typified by
anonymity, feedback and summary of responses.

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• The first step in the execution of the Delphi method is the
selection of experts panel members for studying specified
complex situation.
• Seven experts members are choose from both industries and
academics.
• Deming’s held seminars several times and many were
professionally involved for implementation 14 points.
• Panel members were then introduced , verbally and in writing,
to the nature and purpose of task.
• For this, a consistent from was prepared of the 14 points ,
which was based on Deming’s 14 points as stated in 1986.
• After three iterations, these members identified and defined 37
concepts, which they believed were suggested by the 14
points.

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• The 37 concepts from Delphi study do not suit the purpose of
theory building because it would be complex.
• So made cluster analysis of 37 concepts.
• Each members of the research team individually and
independently evaluated all 37 concepts.
• If there is any difference is found the consensual approach is
adopted until agreement was reached.

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Concepts underlying the Deming Management
Method:
1) Visionary Leadership:
• The ability of management to establish, practice, and lead a
long  term vision for the organization, driven by changing
customer  requirements, as opposed to an internal
management control role.
• This is exemplified by:
• Clarity of vision
• Long-range orientation
• Coaching management style
• Participative change, employee empowerment etc. 

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2) Internal and External Cooperation:
• The propensity of the organization to engage in
noncompetitive activities internally among employees and
externally with respect to suppliers.
• This is exemplified by firm-supplier partnership, single-
supplier orientation, collaborative organization, teamwork,
organization wide involvement, systems view of the
organization, trust and elimination of fear.
3) Learning:
• The organizational capability to recognize and nurture the
development of its skills, abilities and knowledge base.
• This is exemplified by companywide training, foundation
knowledge, process knowledge, educational development,
continuous self-improvement, and managerial learning.

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4) Process Management:
• The set of methodological and behavioral practices
emphasizing the management of process, or means of actions,
rather than results. 
• This is exemplified by management of processes, prevention
orientation, reduction of mass inspection, design quality,
statistical process control, understanding of variation,
elimination of numerical quotas, elimination of management
by objectives, elimination of merit-rating reward systems,
understanding motivation, total cost accounting, and stable
employment. 
5) Continuous Improvement:
•The propensity of the organization to pursue incremental and
innovative improvements of its processes, products, and services.
•This is exemplified by continuous improvement

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6) Employee Fulfillment:
• The degree to which employees of an organization feel that
the organization continually satisfies their need.
• This is exemplified by job satisfaction, job commitment, and
pride of workmanship

7) Customer satisfaction:
• The degree to which an organization's customers continually
perceive that their needs are being met by the organization's
products and services.
• This is exemplified by customer-driven focus.

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A Proposed Theory of Quality Management Underlying the Deming
Management Method

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SPECIFYING
RELATIONSHIPS AMONG
CONCEPTS

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PROPOSITION 1:
Visionary leadership enables the simultaneous creation of a
cooperative and learning organization.
PROPOSITION 2:
An organization that simultaneously fosters cooperation and
learning facilitates the implementation of process management
practices.
PROPOSITION 3:
Process management practices simultaneously result in
continuous improvement of quality and employee fulfillment.
PROPOSITION 4:
An organization's simultaneous efforts continuously to improve
its quality and to fulfill its employees lead to higher customer
satisfaction.

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Proposition 1: Visionary leadership enables the simultaneous
creation of a cooperative and learning organization.

• leadership that provides a cooperative and learning environment.

• allowing people within an organization to work together.
• need to think in terms of win-win. (satisfactory to all parties involved)
• rugged individualism. (independent and self-reliance)
• leader must "help his [or her] people to see themselves as components
in a system
• institute programs of ongoing training and education
• Only leaders can remove the fear of learning; their responsibility
"must be to develop [their employees]

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• saw leaders as critical forces in developing, molding, and shaping
the cultural system of organizations.
• If the [organizational] leaders of today want to create organizational
cultures that will themselves be more amenable to learning, they
will have to set the example by becoming learners themselves and
involving others in the learning process.
• instrumental versus the navigational perspectives
• also viewed organizational leaders as capable of actively
contributing to the characteristics of the organizational system that
they captain

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 Proposition 2: An organization that simultaneously fosters
cooperation and learning facilitates the implementation of process
management practices
• Deming's advocacy of this proposition can be inferred from several of the 14
points.
• Internal cooperation
• The annual performance review
• The annual performance review, for instance, "brings teamwork to near zero“
• "Process management requires cooperation, not competition, with shared
knowledge"
• Shewhart's (1931) PDSA cycle (Plan-Do-Study-Act)…..Model use for
improving a process
• provides additional evidence of how essential employees engaging in learning
and knowledge generation is to process management.

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• The perpetuation of the PDSA cycle: Knowledge generation effects actions on the process,
which leads to more learning, more actions, and so forth
• In this respect, learning and process management are iterative, mutually reinforcing one
another.
• Partial support for this proposition can be found in the work of Bushe (1988), which
identified three cultural barriers (i.e., values on learning versus performing, meaning of
information, and holism versus segmentalism)
• Starbuck (1992) identified several mechanisms (e.g., the provision of training, the retention
of knowledgeable personnel, and the creation of physical capital where knowledge resides)
• Huber's (1991) four constructs .( acquisition of knowledge, distribution of information,
information interpretation, organizational memory.

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 Proposition 3: Process management practices simultaneously result in

continuous improvement of quality and employee fulfillment .

• Without process control, the process was in unstable chaos, the noise
of which would mask the effect of any attempt to bring improvement.
• Deming's (1993:) statement, ”We need better and better quality with
less and less variation”
• continuous quality-improvement ………..Reducing variation
• The reduction in process variation, in turn, leads to benefits
• Deming (1986: 248) also believed that the implementation and
performance of process management practices lead to more fulfilled
employees …..removal of barriers that disallow pride of workmanship.

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Proposition 4: An organization's simultaneous efforts continuously
to improve its quality and to fulfill its employees lead to higher
customer satisfaction
• Deming's (1951) emphasis on consumer research requires that firms engage in
continuous improvement of their products and services in order to meet and
satisfy changing customer requirements.
• What leads or persuades people to brag about using your products and services?
• Identifying their needs and expectations and then consistently meeting them……
• How do you do that? . . . Through the process of continuous improvement
• Johnston and Daniel (1991), for instance, urged firms to satisfy customers by
delivering and improving quality.

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• Imai (1986: 207) similarly characterized continuous
improvement as an antecedent to customer satisfaction
• What does exist is evidence of a positive relationship between
customer perceptions of quality and customer satisfaction.
• A study in Sweden (Anderson, Fornell, & Lehmann, 1993)
revealed that quality has a positive impact on both customer
satisfaction and profitability.
• Customer satisfaction in the proposed theory is affected not only
by continuous improvement efforts but also by the employee
fulfillment concept.

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PROPOSED THEORY OF QUALITY MANAGEMENAT AND
TAYLOR PRINCIPLES OF SCIENTIFIC MANAGEMENT

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Taylors principles of scientific management

• F.W. Taylor and W.E. Deming oppose one another in ideology.

• Deming spoke of visionary leadership where as Taylor spoke of
management control.
• Deming believed in intrinsic motivation to work that is ensured by
process management whereas Taylor believed in extrinsic motivation
(extraction of performance).
• Deming wanted a cooperative organization whereas Taylor is often
accused of organizational management.

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FOUR PRINCIPLES OF SCIENTIFIC MANAGEMENT

• Develop a science for each element of a person’s work.

• Scientifically select and then train, teach and develop the workers.
• Cooperation With Workers
• Divide the work and responsibility.

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Similarities between principles of scientific management and
proposed theory and concept of quality management.
• First, both place emphasis on scientific approach to work and
organizational improvement.
• Taylor said that the work that employees did must be scientifically
constructed and improvement will be outcome.
• Deming’s perspective study of process variation of the entire
organization system helps to overcome the blind spot of scientific
management.
• Deming believed that industrial progress depends upon the
organizations system of task design, technology and people.
• Taylor believe in humanistic work.
• Taylor principle was of “synthesis of old and new techniques that acted
as a catalyst”

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 They recognize the influence and potential for knowledge and
learning.
• Deming preferred the learning process to be ongoing, or organization wide
activity in which all members engage.
• Taylor preferred the top management ( position management and staff as the
keepers of organization knowledge).

Training important for both theories but in different context.

• To Taylor, training is necessary for task execution not for learning further or
self improvement.
• To Deming, training is profound learning, the learning is self-regulated,
stimulated by a natural inclination to learn.

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 Cooperation between scientific management and proposed theory.
• Taylor needed to ensure that work is done properly, in a rigid and
predetermined set of management.
• Deming management method is of less control oriented.

Soldiering
• Taylor’s notion is that workers purposely working below their capacity.
• Deming says that soldiering is not a behavioral strategy but a consequence of
lack of management, lack of understanding of true science of work and the
barriers to progress.

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 Lawrence and Dyer’s theory of Readaptative organization
Theory is an empirically based prescription for the renewal of industry.(
i.e. .organizational improvement).
According to this theory, environment provides both opportunity and
need for adaptation.
Re adaptation requires:
1) organization obtains information form its environment to
interpret.
2) organization obtains resource from its environment to survive.
• Lawrence and dyer’s viewed organization as ”learning, productive and social
system that together with the environment in which they are embedded as
larger system”.
• Deming likewise considered system theory and learning as profound
knowledge.

• Critical role of organization learning and knowledge in organizational

improvement.
• According to Lawrence, organization members need to learn in order to be
innovative and need to strive to be efficient.
Human Resource practices:
• Lawrence in his theory of readaptative organization says that high
involvement of employees in the process.
• Deming in his proposed theory make little use of administrative control
mechanism.
 Conclusion And Future Research Directions

• In this article, we propose the theory of quality management, to describe

and explain the effectiveness of Deming management method.
• This theory is grounded upon Deming and his 14 points.
• This theory increases understanding of the characteristics of Deming
management method.
• This will lead to more efficient and more effective efforts at achieving the
Deming management method’s purpose of transforming and improving the
practice of management.