Foundations of Quality Management

Leaders in the Quality Revolution

1. W. Edwards Deming (1900 – 1993)
2. Joseph M. Juran (1904 – 2008)
3. Philip Crosby (1926 – 2006)
4. A. V. Faigenbaum (1922 – 2014)
5. Kaoru Ishikawa (1915 – 1989)
6. Genechi Taguchi (1924 – 2012)
7. W. A. Shewhart (1891 – 1967)
8. H. G. Romig (1900 – Present) – 120 years old now
9. Shigeo Shingo (1909 – 1990)
10.Taiichi Ohno (1912 – 1990)
 W. Edwards Deming (1900 – 1993)

The Deming philosophy focuses on continual improvements in

product and service quality by reducing uncertainty and
variability in design, manufacturing, and service processes,
driven by the leadership of top management.
Deming chain reaction
Deming’s 14 Points (Abridged) (1 of 2)

1. Create and publish a company mission

statement and commit to it. Consistency of purpose
2. Learn the new philosophy.
3. Understand the purpose of inspection. Cease dependence on
inspection
4. End business practices driven by price alone. Buy materials if
supplier has a quality process
5. Constantly improve system of production and service. Use
statistical methods to find trouble spots
6. Institute modern aids to training workers on the job.
7. Teach and institute leadership. Institute modern methods of
supervision
Deming’s 14 Points (Abridged) (2 of 2)

8. Drive out fear and create trust.

9. Optimize team and individual efforts. Break down barriers between
departments by creating cross functional teams
10. Eliminate exhortations for work force.
11. Eliminate numerical quotas and management by objectives
(M.B.O). Review work standards to account for quality
12. Remove barriers that rob people of pride of workmanship.
13. Encourage education and self-improvement. Train your workers in
new skills
14. Take action to accomplish the transformation. Create structure in
top management to push above 13 points/MRQ
System of profound knowledge

Towards the end of his life, Deming condensed his 14 points into
4 simple elements that he called a system of profound knowledge

Appreciation for a system/Systems thinking

Understanding variation/Statistical concepts
Theory of knowledge/Nature & scope of knowledge
Psychology
Systems

 A system is as a set of functions or activities within an

organization that work together for the aim of the organization.
Systems thinking is critical in applying quality principles because
the organizational linkages among various functions of an
organization must be in alignment to meet the needs of
customers and other stakeholders.

Most organizational processes are cross-functional

Parts of a system must work together
Every system must have a purpose
Management must optimize the system as a whole
Variation
Variation exists in any production and service process, generally
due to factors inherent in the design of the system, which cannot
easily be controlled. Excessive variation results in products that fail
or perform erratically and inconsistent service that does not meet
customers’ expectations. Statistical methods are the primary tools
used to identify and quantify variation.

Many sources of uncontrollable variation exist in any process

Excessive variation results in product failures, unhappy
customers, and unnecessary costs
Statistical methods can be used to identify and quantify variation
to help understand it and lead to improvements
Theory of Knowledge

Knowledge is not possible without theory

Experience alone does not establish a theory, it only describes
Theory shows cause-and-effect relationships that can be used
for prediction
Tacit knowledge – difficult to transmit by writing down
Explicit knowledge – can be written down, stored and accessed
by others such as SOPs and WIs
Teams, quality circles etc.
Psychology

People are motivated intrinsically and extrinsically; intrinsic

motivation is the most powerful
Fear is demotivating
Managers should develop pride and joy in work
People are not alike so they must be managed differently
Juran Philosophy
Juran proposed a simple definition of quality: “fitness for use.”
This definition of quality suggests that it should be viewed from
both external and internal perspectives; that is, quality is related
to “(1) product performance that results in customer
satisfaction; (2) freedom from product deficiencies, which
avoids customer dissatisfaction.”

Managing for quality involved 3 basic processes:

Quality planning, quality control and continuous improvement
Juran’s Quality Trilogy
Quality planning
Identify customers impacted by your goods ad services

Quality control
Identify critical elements that need to be controlled

Quality improvement
Prove the need for improvement and establish specific
improvement projects
Juran’s Breakthrough Sequence

Proof of the Need

Project Identification
Organization for Breakthrough
Diagnostic Journey
Remedial Journey
Holding the Gains

That’s where Six Sigma Improvement came from

Costs of quality
1. Cost of internal failure
2. Costs of external failure.
The two are costs of poor quality (COPQ)

3. Appraisal costs
4. Prevention costs
The two are investments to reduce COPQ
Crosby Philosophy

“Quality is free . . .

... It’s not a gift, but it is free. What costs money are the unquality
things -- all the actions that involve not doing jobs right the first
time.”

Quality is conformance to requirements

Cost of quality vs cost of conformance
Exhibit 2.5 page 44 of TQM: Rao et al
A.V. Feigenbaum

Promoted the concept of total quality control.

This can be achieved through the creation of managerial
procedures or standard operating procedures (SOPs) and work
instructions (WIs).
Result is customer satisfaction and reduction of scrap.
Genechi Taguchi
Worked on product designs that he referred to as robust designs.
Viewed quality as, “conformance to requirements”, or loss to
society. The loss function provides a computation of cost of
deviation from target value (Rao et al, Exh. 2,7, page 50).
Genechi Taguchi
The cost could be real or a social cost (happy or unhappy).
Manufacturing conditions can change but products remain
acceptable.
Products can meet tough field conditions

Control factors
Noise factors
W.A. Shewhart

Brainchild behind control charts

Sometimes referred to as Shewhart charts
Investigate whether there is any presence of assignable causes
in a process
Two types of variation exist:
Common variation; due to natural phenomena, expected
Assignable variation; sporadic and due to sudden uexpected
changes in a process
H. G. Romig

Worked on the concept of acceptance sampling

All about scientific concepts on saving on inspection costs

Operating characteristic curve

Graph of relationship between percent defective (p) and probability of
acceptance of lot by acceptance inspection (Pa)
•Consumer’s risk (β) – chance of accepting bad product
•Producer’s risk (α) – chance of rejecting a good product
•Acceptable quality level (AQL), limiting quality level (LQL), Lot tolerance
percent defective (LTPD), & indifference quality level (IQL).
 Kaoru Ishikawa
Creator of cause-and-effect diagrams/chart
Simplified to 4Ms – Men, Methods, Machine and Materials
Ishikawa

Ishikawa’s second concept was use of quality control circles (putting workers
into informal teams in order to solve quality related problems).
He outlined 7 tools for analysis and problem solving:
a) Histograms
b) Check sheets
c) Pareto diagrams
d) Graphs
e) Scatter diagrams
f) Cause-and-effect diagrams
g) Control charts
 7 tools for analysis & problem solving
a) A plot that shows the under-lying frequency distribution (shape) of a set
of continuous or discrete data. It shows rectangles whose length is
proportional to the frequency of the variable and whose width is equal to
the class interval
b) A form or document used to collect data in real time at the location
where the data is generated. Quantitative or qualitative. When info is
quantitative check sheet is called tally sheet.
c) A chart that contains both bars and a line graph; where individual values
are represented in descending order by bars, and the cumulative total is
represented by the line. Many problems and one wants to focus on the
(a) significant/vital few. There is useful many. Avoiding micro-
management and devote resources on the most important problems
 7 tools for analysis & problem solving

d) Diagram that shows the relationship between variable quantities;

typically two variables.
e) A graph in which the values of two variables are plotted along two axes,
the pattern of the resulting points revealing the correlation present.
f) They show causes of a specific event. It identifies many possible
causes for an event or problem. It sorts ideas/causes into useful
categories. 4Ms – Men, machines, methods and materials
(measurement or mother nature)
g) For variables or attributes. Determines whether a manufacturing or
business process is in a state of control. Common causes of variation
(chronic, nominal and expected). Assignable or sporadic problems
Shigeo Shingo
Best known for Poka-yoke (mistake proofing). Examples…
Single minute exchange of dies (SMED). Provides for a rapid and
efficient way of converting a manufacturing process from running
the current product to running the next product.
Just-in-time (JIT) – A production strategy that strives to reduce
work in process inventory and associated carrying costs
Taiichi Ohno
Ohno’s 7 wastes (Lean wastes)
1) Transportation
2) Inventory
3) Motion
4) Waiting
5) Over-production
6) Over-processing
7) Defects
8) Under-utilization of talent
Taiichi Ohno
1)Movement of people, tools. Work in process (WIP) inventory, equipment, parts
etc. further than necessary. Avoid double/triple handling of material. Offices
that coordinate should be close to each other. U or C-shaped cellular
workstations
2)Wastes can hide in inventory or batches. Inventory can be damaged in
storage. Don’t tie up money in inventory. Patients waiting to be treated in a
hospital. Use JIT to purchase raw materials when needed , and in quantities
needed. Deliveries at points of consumption
3)Unnecessary movement of people, equipment or machinery. Searching for
files or double entry of data. Make sure work-place is organized and operators
do not forget their tools when attending to breakdowns (use of checklist)
4)People waiting for instructions, material, equipment. Caused by unevenness
in production stations. Design processes with continuous flow of work pieces
(value) or one-piece flow
 Taiichi Ohno
5) Use pull production systems (Kanban) to avoid over-production of parts. Do not
make parts before downstream workstations have requested for them. Just in
time as opposed to Just In Case. Use takt time (rate of customer demand)
which ensures that rate of manufacturing between stations is even. Reduce
set-up times this enables production of small batches or one piece flow.
6) Doing more work, having more steps in a product/service than the customer
requires. E.g. use of higher precision machines than customer spec requires.
Requiring more than unnecessary signatures on a document or more forms
than needed.
7) Product not fit for use. Reworking or scrapping results in extra costs without
adding value. Do things right the first time by quality at the source
8) Waste of human potential. Unused talent. Give workers extra roles so they can
improve processes; people who are doing the work are capable of identifying
problems and developing solutions for them.
Sources of variation in a production process
 ISO 9001:2008
Management Responsibility addresses what top management must do to
ensure an effective quality system.
Resource Management ensures that an organization provides sufficient
people, facilities, and training resources.
Product Realization refers to controlling the production/service process
from receipt of an order or quote through design, materials procurement,
manufacturing or service delivery, distribution, and subsequent field
service.
Measurement, Analysis, and Improvement focuses on control procedures
for assuring quality in products and processes, analysis of quality-related
data, and correction, prevention, and improvement planning activities.

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 Benefits of ISO 9000
It provides discipline. The ISO 9001 requirement for audits forces an
organization to review its quality system on a routine basis.
It contains the basics of a good quality system. These include
understanding customer requirements, ensuring the ability to meet them,
ensuring people resources capable of doing the work that affects quality,
ensuring physical resources and support services needed to meet product
requirements, and ensuring that problems are identified and corrected.
It offers a marketing program. ISO certified organizations can use their
status to differentiate themselves in the eyes of customers.

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