LESSON -6: CONTRIBUTIONS TO TQM

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1 LESSON -6: CONTRIBUTIONS TO TQM OBJECTIVES TQM Gurus About Deming About Juran About Crosby PDSA cycle in a nutshell. 5S concepts Kaizen concepts contributions of quality gurus like given below: - Stewart Deming Juran Feigenbaum Crosby contributions of Japanese- Pioneers Ishikawa Taguchi Taichi Ohno Shingo Model Examination Questions Suggested Readings STRUCTURE 6.1. Introductions 6.2. TQM Gurus Deming Juran Crosby PDSA cycle S Kaizen 6.3. Contributions of Shewhart Page 41

2 Deming Juran Feigenbaum Crosby 6.4. Contributions of Japanese- Pioneers Ishikawa Taguchi Taichi Ohno Shingo Shingo 6.5. Summing up 6.6. Model Examination Questions 6.7. Suggested Readings Page 42

3 Introduction 1. Quality Control sees the people in the enterprise working with the process as provided and doing what they can to prevent things getting worse. They are equipped to deal with sporadic spikes in production but do not generally have the ability to deal with underlying inefficiencies in the process as designed. Such underlying inefficiencies Juran calls chronic waste. Quality Improvement is where managers begin to organize to attack the chronic waste. It requires managers to take a new view of the world and regard the chronic waste not as inevitable, but as an opportunity for improvement. Quality Planning is the activity of establishing quality goals and developing products and processes to meet those goals. These goals may apply to the features required to meet customer needs or they may apply to making these products and processes free from all deficiencies. Conceptually, planning precedes control and improvement; indeed, before a process exists Quality Planning is the discipline that is used to decide what is going to happen in the first place. My experience is of organizations that have previously understood Quality as being Quality Control, and enter the Trilogy via Quality Improvement and the Improvement Project. Information collected from Nigel Clements. TQM GURUS To fully understand the TQM movement, we need to look at the philosophies of notable individuals who have shaped the evolution of TQM. Their philosophies and teachings have contributed to our knowledge and understanding of quality today Deming W. Edwards Deming is often referred to as the father of quality control. He was a statistics professor at New York University in the 1940s. After World War II he assisted many Japanese companies in improving quality. The Japanese regarded him so highly that in 1951 they established the Deming Prize, an annual award given to firms that demonstrate outstanding quality. It was almost 30 years later that American businesses began adopting Deming s philosophy. A number of elements of Deming s philosophy depart from traditional notions of quality. The first is the role management should play in a company s quality. Improvement effort. Historically, poor quality was blamed on workers on their lack of productivity, laziness, or carelessness. However, Deming pointed out that only 15 percent of quality problems are actually due to worker error. The remaining 85 percent are caused by processes and systems, including poor management. Deming said that it is up to management to correct system problems and create an environment that promotes quality and enables workers to achieve their full potential. He believed that managers should drive out any fear employees have of identifying quality problems, and that numerical quotas should be eliminated. Proper methods should be taught and detecting and eliminating poor quality should be everyone s responsibility. Deming outlined his philosophy on quality in his famous 14 Points. These points are principles that help guide companies in achieving quality improvement Juran: Joseph M. Juran After W. Edwards Deming, Dr. Joseph Juran is considered to have had the greatest impact on quality management. Juran originally worked in the quality program at Western Electric. He Page 43

4 became better known in 1951, after the publication of his book Quality Control Handbook. In 1954 he went to Japan to work with manufacturers and teach classes on quality. Though his philosophy is similar to Deming s, there are some differences. Whereas Deming stressed the need for an organizational transformation, Juran believes that implementing quality initiatives should not require such a dramatic change and that quality management should be embedded in the organization Crosby Philip B. Crosby is another recognized guru in the area of TQM. He worked in the area of quality for many years, first at Martin Marietta and then, in the 1970s, as the vice president for quality at ITT. He developed the phrase Do it right the first time and the notion of zero defects, arguing that no amount of defects should be considered acceptable. He scorned the idea that a small number of defects is a normal part of the operating process because systems and workers are imperfect. Instead, he stressed the idea of prevention. To promote his concepts, Crosby wrote a book titled Quality Is Free, which was published in He became famous for coining the phrase quality is free and for pointing out the many costs of quality, which include not only the costs of wasted labor, equipment time, scrap, rework, and lost sales, but also organization a lost that are hard to quantify. Crosby stressed that efforts to improve quality more than pay for themselves because these costs are prevented. Therefore, quality is free. Like Deming and Juran, Crosby stressed the role of management in the quality improvement effort and the use of statistical control tools in measuring and monitoring quality PDSA cycle The Plan Do Study Act Cycle The plan do study act (PDSA) cycle describes the activities a company needs to perform in order to incorporate continuous improvement in its operation. This cycle, shown in Figure 5-6 is also referred to as the Shewhart cycle or the Deming wheel. The circular nature of this cycle shows that continuous improvement is a never-ending process. Let s look at the specific steps in the cycle. Plan The first step in the PDSA cycle is to plan. Managers must evaluate the current process and make plans based on any problems they find. They need to document all current procedures, collect data, and identify problems. This information should then be studied and used to develop a plan for improvement as well as specific measures to evaluate performance. Do The next step in the cycle is implementing the plan (do). During the implementation process managers should document all changes made and collect data for evaluation. Study The third step is to study the data collected in the previous phase. The data are evaluated to see whether the plan is achieving the goals established in the plan phase. Act The last phase of the cycle is to act on the basis of the results of the first three phases. The best way to accomplish this is to communicate the results to other members in the company and then implement the new procedure if it has been successful. Note that this is a cycle; the next step is to plan again. After we have acted, we need to continue evaluating the process, planning, and repeating the cycle again. Page 44

5 S 2.5S is the name of a workplace organization method that uses a list of five Japanese words: seiri, seiton, seiso, seiketsu, and shitsuke. Transliterated or translated into English, they all start with the letter "S". The list describes how to organize a work space for efficiency and effectiveness by identifying and storing the items used, maintaining the area and items, and sustaining the new order. The decision-making process usually comes from a dialogue about standardization, which builds understanding among employees of how they should do the work Kaizen 3. Continuous improvement is based on a Japanese Concept called Kaizen, is the philosophy of continually seeking ways to improve operations. It involves identifying benchmarks of excellent practices and instilling a sense of employee ownership of the process. The focus can be on: Reducing the length of time required to process requests for loans in bank The amount of scrap generated at a milling machine or the number of employee injuries. Continuous improvement can also focus on problems with customers or suppliers, such as customers who request frequent changes in shipping quantities and suppliers that to maintain high quality. The bases of the continuous improvement philosophy are the beliefs that virtually any aspect of an operation can be improved and that the people most closely associated with an operation are in the best position to identify the changes that should be made. Consequently, employee involvement plays a big role in continuous improvement programs. Filed under: Management of Process Quality, Structures and TeamsSPC Nameer CONTRIBUTIONS OF Shewhart Walter A. Shewhart was a statistician at Bell Labs during the 1920s and 1930s. Shewhart studied randomness and recognized that variability existed in all manufacturing processes. He developed quality control charts that are used to identify whether the variability in the process is random or due to an assignable cause, such as poor workers or miss calibrated machinery. He stressed that eliminating variability improves quality. His work created the foundation for today s statistical process control, and he is often referred to as the grandfather of quality control Deming In 1947, Deming was involved in early planning for the 1951 Japanese Census. The Allied powers were occupying Japan, and he was asked by the United States Department of the Army to assist with the census. He was brought over at the behest of General Douglas MacArthur, who grew frustrated at being unable to complete so much as a phone call without the line going dead due to Japan's shattered post-war economy. While in Japan, his expertise in quality Page 45

6 control techniques, combined with his involvement in Japanese society, brought him an invitation from the Japanese Union of Scientists and Engineers (JUSE). JUSE members had studied Shewhart's techniques, and as part of Japan's reconstruction efforts, they sought an expert to teach statistical control. From June August 1950, Deming trained hundreds of engineers, managers, and scholars in statistical process control (SPC) and concepts of quality. Collected from Wikipedia, the free encyclopaedia He also conducted at least one session for top management including top Japanese industrialists of the likes of Akio Morita, the cofounder of Sony Corp. Deming's message to Japan's chief executives was that improving quality would reduce expenses while increasing productivity and market share. Perhaps the best known of these management lectures was delivered at the Mt. Hakone Conference Center in August A number of Japanese manufacturers applied his techniques widely and experienced heretofore unheard-of levels of quality and productivity. The improved quality combined with the lowered cost created new international demand for Japanese products. Deming declined to receive royalties from the transcripts of his 1950 lectures, so JUSE's board of directors established the(december 1950) to repay him for his friendship and kindness. [18] Within Japan, the Deming Prize continues to exert considerable influence on the disciplines of quality control and quality management. From Wikipedia, the free encyclopaedia Juran The concept of quality started in Japan when the country began to rebuild after World War II. Amidst the bomb rubble, Japan embraced the ideas of W. Edwards Deming, an American whose methods and theories are credited for Japan's post war recovery. Ironically enough, Deming's ideas were initially scoffed at in the U.S. As a result, TQM took root in Japan 30 years earlier than in the United States. American companies took interest in Deming's ideas only when they began having trouble competing with the Japanese in the 1980s.Deming's management system was philosophical, based on continuous improvement toward the perfect ideal. He believed that a commitment to quality requires transforming the entire organization. His philosophy is based on a system known as the Fourteen Points. These points express the actions an organization must take in order to achieve TQM Feigenbaum Dr. Armand V. Feigenbaum, the developer of Total Quality Control concept, was President and CEO of General Systems Company, which he founded in In 2008, Dr. Feigenbaum was presented with the National Medal of Technology and Innovation by President Bush at a ceremony at the East Wing of the White House. The National Medal is the highest honor for technological achievement bestowed on America s leading innovators. Page 46

7 From , Dr. Feigenbaum grew from an entry-level pre-college job to be the hands-on manager of quality as the Company-wide Manager of Manufacturing Operations and Quality Control at the General Electric Company ( ) in New York City. He developed the Total Quality Control concept while concurrently at GE. He introduced the concept first in an article in In 1951, while a doctoral student at MIT, Dr. Feigenbaum wrote the first edition of his book Total Quality Control. He established the principles of Total Quality Management ( TQM ), the approach to quality and profitability that has profoundly influenced management strategy and productivity in the competition for world markets in the United States, Europe, Asia, Latin America and the Middle East. He wrote, Total quality control is an effective system for integrating the quality development, quality maintenance, and quality improvement efforts of the various groups in an organization so as to enable production and service at the most economical levels which allow full customer satisfaction. Armand V. Feigenbaum is also known for his concept of the hidden plant. That is in every factory a certain proportion of its capacity is wasted through not getting it right the first time. Dr. Feigenbaum quoted a figure of up to 40% of the capacity of the plant being wasted. At that time, this was an unbelievable figure; even today some managers are still to learn that this is a figure not too far removed from the truth. The elements of total quality to enable a totally customer focus (internal and external) Quality is the customer s perception of what quality is, not what a company thinks it is. Quality and cost are the same no different. Quality is an individual and team commitment. Quality and innovation are interrelated and mutually beneficial. Managing Quality is managing the business. Quality is a principal. Quality is not a temporary or quick fix but a continuous process of improvement. Productivity gained by cost effective demonstrably beneficial Quality investment. Implement Quality by encompassing suppliers and customers in the system Crosby Philip Crosby is another major contributor to the quality movement. In 1979, he left ITT (International Telephone and Telegraph) and wrote his book, Quality is Free, in which he argues that dollars spent on quality and the attention paid to it always return greater benefits than the costs expended on them. Whereas Deming and Juran emphasized the sacrifice required for a quality commitment, Crosby takes a less philosophical and more practical approach, asserting instead that high quality is relatively easy and inexpensive in the long run. Page 47

8 Crosby is the only American quality expert without a doctorate. He is responsible for the zero defects program, which emphasizes doing it right the first time, (DIRFT) with 100 percent acceptable output. Unlike Deming and Juran, Crosby argues that quality is always cost effective. Like Deming and Juran, Crosby does not place the blame on workers, but on management. Crosby also developed a 14 point program, which is again more practical than philosophical. It provides managers with actual concepts that can help them manage productivity and quality. His program is built around four Absolutes of Quality Management: CONTRIBUTIONS OF JAPANESE- PIONEERS Ishikawa Kaoru Ishikawais best known for the development of quality tools called cause-and effect diagrams, also called fishbone or Ishikawa diagrams. These diagrams are used for quality problem solving, and we will look at them in detail later in the chapter. He was the first quality guru to emphasize the importance of the internal customer, the next person in the production process. He was also one of thirsty to stress the importance of total company quality control, rather than just focusing on products and services. Dr. Ishikawa believed that everyone in the company needed to be united with a shared vision and a common goal. He stressed that quality initiatives should be pursued at every level of the organization and that all employees should be involved.dr. Ishikawa was a proponent of implementation of quality circles, which are small teams of employees that volunteer to solve quality problems Taguchi Dr. Genichi Taguchi is a Japanese quality expert known for his work in the area of product design. He estimates that as much as 80 percent of all defective items are caused by poor product design. Taguchi stresses that companies should focus their quality efforts on the design stage, as it is much cheaper and easier to make changes during the product design stage than later during the productions process. Taguchi is known for applying a concept called design of experiment to product design. This method is an engineering approach that is based on developing robust design, a design that results in products that can perform over a wide range of conditions. Taguchi s philosophy is based on the idea that it is easier to design a product that can perform over a wide range of environmental conditions than it is to control the environmental conditions Taichi Ohno Taiichi Ohno Ōno Taiichi?, February 29, 1912 May 28, 1990) was a Japanese industrial engineer and businessman. He is considered to be the father of the Toyota Production System, which became Lean Manufacturing in the U.S. He devised the seven wastes (or muda in Japanese) as part of this system. He wrote several books about the system, including Toyota Production System: Beyond Large-Scale Production. Born in 1912 in Dalian, China, and a graduate of the Nagoya Technical High School (Japan), he joined the Toyoda family's Toyoda Spinning upon graduation in 1932 during the Great Depression thanks to the relations of his father to Kiichiro Toyoda, the son of Toyota's founding father Sakichi Toyoda. He moved to the Toyota motor company in 1943 where he worked as a shop-floor supervisor in the engine Page 48

9 manufacturing shop of the plant, and gradually rose through the ranks to become an executive. In what is considered to be a slight, possibly because he spoke publicly about the production system, he was denied the normal executive track and was sent instead to consult with suppliers in his later career. Ohno's principles influenced areas outside of manufacturing, and have been extended into the service arena. For example, the field of sales process engineering has shown how the concept [2] [3] of Just In Time (JIT) can improve sales, marketing, and customer service processes. Ohno was also instrumental in developing the way organizations identify waste, with his "Seven Wastes" model which have become core in many academic approaches. These wastes are: 1. Delay, waiting for time spent in a queue with no value being added 2. Producing more than you need 3. Over processing or undertaking non-value added activity 4. Transportation 5. Unnecessary movement or motion 6. Inventory 7. Production of Defects Shingo Shingo Shigeo Shingo s contribution to management methodology is better known than his name in BPI [Business Process Improvement]. Shigeo Shingo was born in 1909 at Saga City, Japan. In 1930 after perusing his graduation from Yamanashi Technical College he went to work for the Taipei Railway, Japan. In 1943 Dr.Shingo got transferred to the Amano Manufacturing Plant as Manufacturing Section Chief. He shown his magnificent performance of raising productivity level at 100% there. Dr.Shingo worked for several manufacturers during and also began a professional association with the JMA Japanese Management Association. During Dr.Shingo worked on countless assignments & delivered several important papers and crystallized his innovative thoughts on process and plant layout designing. He also applied Statistical Process Control to execute his ideas. In the year 1955, Dr.Shingo gets associated with Toyota. In 1959, Dr. Shingo started his own consulting company and he developed his concepts of poka-yoke The Mistake-Proofing. His great achievement is to cut the set up time of 1000 ton press at Toyota by 3 hours and 57 min. That was from 4 hours to 3 Minutes by using SMED in He also written 14 books and countless papers on manufacturing. His contribution includes all these theory and processes. SUMMING UP The early 1990s, a philosophy of management called "total quality management" gained popularity. Its origins are traced to the ideas of U.S. quality experts W. Edwards Deming and Joseph Duran and highlighted by such programs as the Malcolm Baldrige National Quality Award. Page 49

10 Total quality management (TQM) is defined as "managing the entire organization so that it excels in all dimensions of products and services that are important to the customer." As the definition states, this philosophy concentrates on quality as a primary component of the organization's drive for competitive advantage. Marketing decision-making is directly affected by such a system because quality is a component of product/service design and can be an important decision-making criterion employed by potential buyers. The TQM model goes beyond product and service quality, however, and suggests that a highly structured system of management that emphasizes mechanisms like control and punitive action which stifles people and ultimately hinders an organization's attempt to produce quality products and services. Rather, the organization that views all its employees as critical, creative resources will be much better able to pursue quality in every activity and through every decision. Some of the key tenets of TQM are. MODEL EXAMINATION QUESTIONS Objective Type Questions 1. Dr. Joseph Juran published the book namely as----. (i) Quality Control Handbook. (ii Quality book. (iii) Mathematics. (iv) None. 2. Dr. Joseph Juran published the quality book in the year of----. (i) (ii) 1956 (iii) (iv) Dr. Joseph Juran went Japan in the year of---- (i) (ii) (iii) (iv) JMA Full name is ---- (i) Japanese Management Association. (ii) Japanese Management Account. Page 50

11 (iii) Japanese Management Add. (iv) None. 5. Dr. Shingo started his own consulting company in---- (i) (ii) (iii) (iv) Descriptive Type Questions Short Answer Questions 1. The Japanese established the Deming Prize at the year of American businesses began adopting Deming s philosophy after Deming pointed out that only 15 percent of quality problems are due to Deming pointed out that only 85 percent of quality problems are due to Deming outlined his philosophy on quality in his famous---- Long Answer Questions 1. What is the Juran theory on TQM? 2. What is the important role of customer in TQM? 3. What are the main learning objectives on Gurus concept? 4. Briefly describe the theory of Taiichi Ohno. SUGGESTED READINGS Philip Kotler, Marketing Management: Analysis, Planning, Implementation and Control, 4th ed. (Englewood Cliffs, NJ: Prentice-Hall, Inc., 1980), 22. Thomas A. Stewart, "GE Keeps Those Ideas Coming," Fortune (August 12, 1991): Wikipedia, the free encyclopaedia Page 51