MANAGING BUSINESS BM027-3.

5-2-MBUS
Chapter 3 (Part A) Teachings of Quality Gurus Deming

Learning Outcomes
At the end of this chapter, you should be able to:
Understand and use the quality approaches developed by Edwards Deming, and other quality gurus.

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The Quality Gurus

Dr. W. Edwards Deming, Dr. Joseph Juran, Philip Crosby, Armand V. Feigenbaum, Dr. H. James Harrington, Dr. Kaoru Ishikawa, Dr. Walter A. Shewhart, Shigeo Shingo, Frederick Taylor, and Dr. Genichi Taguchi All have made a significant impact to our day-today life. Contributions for improvement for all types of organizations including : state and national governments, military organizations, educational institutions, healthcare organizations etc.
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Quality Philosophies
Writer Deming Definition of Quality Fitness for purpose Orientation Customer 1. 2. 3. 4. Developed Demings Philosophy Fourteen Points of Quality Deming PDCA Cycle System of Profound Knowledge

Juran

Fitness for use

Customer

1. Quality Trilogy 2. The Five Quality Characteristics 3. Internal Customer 4. The Four Phases of Problem Solving 5. Quality Council 6. The Quality Spiral 1. Five Absolutes of Quality 2. Fourteen-Point Plan for Quality

Crosby

Conformance to requirements

Supplier

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Demings Philosophy
1. Concept of pride and joy at work.
2. Continuous variation. improvement based on reduction in

3. Higher quality leads to higher productivity which leads to more output.

Higher Quality

Higher
Productivity

More Output

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Demings Philosophy

4. Improvements in quality leads to lower costs, which leads to lower prices; this, in turn, leads to sustaining long term competitive advantage.
Sustaining Long Term

Improvements in

Quality

Lower Cost

Lower Prices

Competitive Advantage

5. Top management must assume the responsibility for quality improvement.

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overriding

Demings 14 Points
1. "Create consistency of purpose towards improvement". 2. "Adopt the new philosophy". 3. "Cease dependence on inspection". 4. "Move towards a single supplier for any one item." 5. "Improve constantly and forever". 6. "Institute training on the job". 7. "Institute leadership". 8. "Drive out fear".

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Demings 14 Points
9. "Break down barriers between departments".

10. "Eliminate slogans and targets".

11. "Eliminate management by objectives".

12. "Remove barriers to pride of workmanship". 13. "Institute education and self-improvement". 14. "The transformation is everyone's job".

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The Deming Cycle

(PDCA Cycle)

PDCA ("Plan-Do-Check-Act") is an iterative four-step problem-solving process typically used in business process improvement.

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The PDCA Cycle

PLAN Establish objectives & processes - to deliver results in accordance with the expected output. DO Implement the new processes - often on a small scale. CHECK Measure the new processes and compare the results against the expected results. ACTION Standardize the improved result.

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System of Profound Knowledge

Is the underlying foundations of Demings 14 points. It consists of four interrelated parts:

1. 2. 3. 4.

Appreciation for a system Understanding of variation Theory of knowledge Psychology

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Demings System of Profound Knowledge

Appreciation for system

Understanding of variation

Theory of knowledge

Knowledge of Psychology

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Systems
Deming stressed that systems must be focused towards a purpose.
Stockholders can realise financial benefits, Employees can receive opportunities for training and education, Customers can receive products and services that meet their needs and create satisfaction , the community can benefit from business leadership, and the environment can benefit from responsible management.

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Variation
Modern technology enables to produce with very little variation; but human behaviour and performance continues to hamper quality efforts. To reduce variation through improvements in technology, process design, and training. To be familiar with statistical techniques and other problem solving tools. Excessive variation - products that fail or perform erratically and inconsistent service.

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Knowledge
Experience only describes it cannot be tested or validated. Theory (knowledge), on the other hand, helps one to understand cause and effect. Managers should learn and discover (acquire knowledge) what works and what is appropriate for their individual organisation.

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Psychology
It helps us to understand people, interactions between people and circumstances. People can be motivated intrinsically and extrinsically; Demings does not believe pay is a motivator.

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