Introduction to Quality Prepared by: Bhakti Joshi Date: December 6, 2012

Evolution of Quality in Businesses Integrated by Japanese post-World War II to undo cheap imitation products and illiterate workforce Quality researchers like Juran and Deming helped Japanese companies to introduce quality By 1960, quality control and management became national preoccupation in Japan Japan’s imports to US and Europe by late 1960s and 1970s, led to curiosity on quality from Americans and Europeans. During 1980s, integrating quality in businesses was introduced in US and select European countries Standardisations for maintaining quality also came around during that time. Example, International Standardisation Organisation (ISO) 9000 – ISO 9000 prescribes quality management processes and compliances that businesses should must follow subsequent to which businesses acquire ISO 9000 certification

Meaning and Definition of Quality “…a peculiar and essential character” OR “…a degree of excellence” – Merriam-Webster “Quality should be aimed at the needs of the consumer present and future” – “…is a fitness for use” - “…means conformance to requirements” – “…is the totality of features and characteristics of a product or service that bear on its ability to satisfy given needs” – “…is the degree of excellence at an acceptable price and control of variability at an acceptable cost W. Edwards Deming Juran Philip B. Crosby American Society for Quality Broh

Ford Motor Company and Deming Focused on Mass production that led to reduction in short-term costs Focused on regular inspections on foremen by inspectors who worked against each other – Automated processes were too huge to be shut down Engineers were overworked that focused on new product development, on-job training and finding/fixing warranty problems Failure Mode and Effect Analysis (FMEA) was maintained There were multiple suppliers for the company Establishment of Ford’s Mission, Values and Guiding Principles that focused on quality instead of profits or technology Weekly meetings were conducted between senior management and manufacturing unit on quality Application of Statistical Process Control (SPC) and Quality Function Deployment (QFD) that measured quality or characteristics of products w.r.t. their customers Training to engineers of SPC and relevant education Interaction between Engineers and suppliers Reduce Suppliers base 1970s – Mass Production Era1980s – Competition

Ford Company s – Mass Production Era Participants – Foreman and Inspectors Inspectors – Randomly selected parts produced by foremen in each department to check for compliance to specifications – Operations were shut down for repair if parts were rejected Foremen’s job – To produce and ship as many parts as possible – Were rewarded if foremen refused to shut down a machine for repair if there were defects in parts Conflict?

Deming and “14 Points” – Point 1 Every business should set their objective, mission and vision that replaces short-term reaction into long-term planning and stability Create constancy of purpose toward improvement of product and service, with the aim to become competitive, stay in business and provide jobs

Deming and “14 Points” – Point 2 Management should adopt this philosophy and not expect only the workforce to adopt the same. Businesses need to adopt to changing times and needs and accordingly cannot continue with traditional practises Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.

Deming and “14 Points” – Point 3 If variations in a business are reduced then there is no requirement for continuous inspection Cease dependence on inspection to achieve quality. Eliminate the need for massive inspection by building quality into the product in the first place

Deming and “14 Points” – Point 4 End practise of awarding to employees basis of price tags (sales targets met in a day, etc.). Multiple suppliers could lead to variations in the overall business End the practice of awarding business on the basis of a price tag. Instead, minimize total cost. Move towards a single supplier for any one item, on a long- term relationship of loyalty and trust.

Deming and “14 Points” – Point 5 Constantly strive to reduce variation and minimize costs Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.

Deming and “14 Points” – Point 6 The workforce should be adequately trained to avoid any variations Institute training on job

Deming and “14 Points” – Point 7 There is significant difference between leadership and mere supervision Institute leadership. The aim of supervision should be to help people and machines and gadgets do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers.

Deming and “14 Points” – Point 8 Management should drive out fear so that it prevents the workforce from acting against the interests of the organisation Drive out fear, so that everyone may work effectively for the company..

Deming and “14 Points” – Point 9 The central focus of the firm should be customer and all departments should work together accordingly Break down barriers between departments. People in research, design, sales, and production must work as a team, in order to foresee problems of production and usage that may be encountered with the product or service.

Deming and “14 Points” – Point 10 Deming considers slogans and exhortations as a demotivating factor to employees that may lead to more errors and variations in business Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force

Deming and “14 Points” – Point 11 Deming saw standards and targets as factors leading to low productivity a. Eliminate work standards (quotas) on the factory floor. Substitute with leadership. b. Eliminate management by objective. Eliminate management by numbers and numerical goals. Instead substitute with leadership.

Deming and “14 Points” – Point 12 Workforce satisfaction is critical a. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. b. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia," abolishment of the annual or merit rating and of management by objective

Deming and “14 Points” – Point 13 Workforce motivation and individual growth is essential Institute a vigorous program of education and self- improvement.

Deming and “14 Points” – Point 14 Adjustment and transformation of management and workforce should be the same Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.

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