1. Chapter 2
Quality Theory
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2. Quality Theory Introduction to Theory W. Edwards Deming Joseph M.Juran
Chapter 2
Introduction to Theory
W. Edwards Deming
Joseph M.Juran
Ishikawa
Pareto Analysis
Quality Management Variables
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3. Quality Theory
What is Theory?
A coherent (understand) group of general propositions (ideas) used as principles of explanation for a class of Phenomena.
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4. Institutional theory in TQM
Input
TQM
Output
Business Performance

5. (Tools and Techniques)
System theory in TQM
Processing
(Tools and Techniques)
TPM
SPC
Lean production
Input
TQM Input
Output
Business Performance

6. A Theoretical Model Relating Quality
Quality Theory
What is Theory?
A Theoretical Model Relating Quality
Improvement to Worker
Worker
Morale
Quality
Improvement
Dependent variable and independent variable
Theoretical model Hypothesis
Data collection Analyze  support or fail
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7. Quality Theory For a theory to be complete it must have 4 elements:
What is Theory?
For a theory to be complete it must have 4 elements:
What (What is the models?)
How (How is the relations?)
Why
Who - Where - When
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8. Quality Theory What What is Theory?
Involves which variables or factors are included
in the Model.
The Variables are the “What” of the model
Worker
Morale
Quality
Improvement
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9. Quality Theory How What is Theory?
The nature, direction and extent of the model. This is
Represented by the arrow in the model
Worker
Morale
Quality
Improvement
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10. Quality Theory Why What is Theory?
The Theoretical glue that holds the model together.
Worker
Morale
Quality
Improvement
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11. Quality Theory Who - Where - When What is Theory?
Place contextual bounds on the model (scope).
Worker
Morale
Quality
Improvement
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12. Deming Quality gurus. Influence on Japanese and American Industry
His thinking based on statistic for continual improvement.
He has invited to give lectures on statistical quality control in Japan by JUSE in 1950
Continuous improvement is never ending.
The foundation of his believe is Deming’s 14 points for management.
Poor quality was not the fault of labor; it is resulted from poor management of the system for continual improvement.

14. Quality Theory Deming 14 Points for Management
Leading Contributors to Theory
Deming
14 Points for Management
1. Create a consistency of purpose toward improvement of product and service with the aim to become competitive, stay in business and provide jobs
Focus of improvement
Focus on short term and long term improvement
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15. Quality Theory Deming 14 Points for Management
Leading Contributors to Theory
Deming
14 Points for Management
2. Adopt a new philosophy: We are in a new economic age
Change leadership
Many companies has improved quality at reasonable price and service quality
Must adopt new way for achieving customer satisfaction such as service quality and after sales and service
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16. Quality Theory Deming 14 Points for Management
Leading Contributors to Theory
Deming
14 Points for Management
3. Stop dependence on mass inspections to improve quality
Quality must build at the source
All departments have their responsibility to improve quality (design, purchasing, quality, production dept)
Quality control circle
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17. Quality Theory Deming 14 Points for Management
Leading Contributors to Theory
Deming
14 Points for Management
4. End the practice of awarding business on the basis of price tag alone.
Many suppliers cause competitions, improve quality and decrease cost.
However, overemphasis on costs and increase variability
Single suppliers->long terms relations can improved variability of the part
Develop and certify suppliers based on ISO and MBNQA.
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18. Quality Theory Deming 14 Points for Management
Leading Contributors to Theory
Deming
14 Points for Management
5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease cost.
What is system of production?
Management is responsible for the system because they has authority and budget.
Most of the poor performance is caused by management
a set of things working together as parts of a mechanism or an interconnecting network; a complex whole.
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19. Quality Theory Leading Contributors to Theory Key Performance Index:
Defect ratio
Productivity

20. Quality Theory Deming 14 Points for Management
Leading Contributors to Theory
Deming
14 Points for Management
6. Institute training on the job. For competence.
Perform job require skill and knowledge
On job training
Certification: Solder certification system
QC tools training
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21. Quality Theory Deming 14 Points for Management 7. Improve leadership
Leading Contributors to Theory
Deming
14 Points for Management
7. Improve leadership
Supervision should help people, machines and tools to do better job
Wide ranging improvement: upper management must be involved.
Support monetary and organizational authority
Without management support, quality improvement effort will fail.
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22. Quality Theory Deming 14 Points for Management
Leading Contributors to Theory
Deming
14 Points for Management
8. Drive out fear so that everyone may work effectively for the company
Many employees were fearful to change or admit the problem.
Think problems is opportunity for improvement.
Do not think workers, who surface and seek to improve as a trouble makers.
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23. Quality Theory Deming 14 Points for Management
Leading Contributors to Theory
Deming
14 Points for Management
9. Break down barriers between departments
Research, Design, Production, Sales dept must work as team.
The ability of Honda to introduce new design rapidly caused Honda nearly bankrupted Yamaha in 1980s
The reason is Honda has parallel processing in focused team rather than slow design circle by sequential approach
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24. sequential approach
parallel processing

25. Quality Theory Deming 14 Points for Management
Leading Contributors to Theory
Deming
14 Points for Management
10. Eliminate slogans, exhortations and targets for the workforce that ask for zero defects and new levels of productivity
If good systems are not provided by management, workers can become discouraged and motivation because low quality and productivity belong to system
Managers should provide a good system for achieving higher performance.
Good system: Training, empower employees and provide strategic structure.
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26. Quality Theory Deming 14 Points for Management
Leading Contributors to Theory
Deming
14 Points for Management
11. Eliminate work standards on the factory floor
Work standard is based for doing job
Often work standard are implemented improperly
Quantity override the quality
Work standard will makes status quo because they already have satisfied the standards
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27. Quality Theory Deming 14 Points for Management
Leading Contributors to Theory
Deming
14 Points for Management
12. Remove barriers that rob workers of their right to pride in the quality of their work
-Management and supervisor must give more
emphasized on quality than quantity.
-Managers must trust workers in decisions.
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28. Quality Theory Deming 14 Points for Management
Leading Contributors to Theory
Deming
14 Points for Management
13. Institute a vigorous program of education and self improvement
-Kaizen improvement
-5S
-SPC
-QCC
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29. Quality Theory Deming 14 Points for Management
Leading Contributors to Theory
Deming
14 Points for Management
14. Put everybody in the company to work to accomplish the transformation
Everybody and every departments is responsible for quality
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30. Juran Joseph M.Juran (Quality guru)
Visit Japan and teach quality concept in 1954
Approach base on strategic and planning-based
Established goals and plan to reach
Rewards on result achieved

31. Quality Theory Juran The Juran Trilogy -Basic process
Leading Contributors to Theory
Juran
The Juran Trilogy
-Basic process
to improve quality
Planning
Control
Improvement
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32. Quality Theory Juran The Juran Trilogy Planning Control Improvement
Leading Contributors to Theory
Juran
The Juran Trilogy
Planning
Control
Improvement
Provide the operating forces with the means of producing products that meet the customers needs.
20% of operating cost is chronic waste.
Control means putting out the fires such as sporadic spikes
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33. Quality Theory Juran The Juran Trilogy Planning Control Improvement
Leading Contributors to Theory
Juran
The Juran Trilogy
Planning
Control
Improvement
Control vs. Breakthrough
Control ensures processes are stable and consistent outcome
Breakthrough improvement require major improvement and large improvement
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34. Quality Theory Juran The Juran Trilogy Planning Control Improvement
Leading Contributors to Theory
Juran
The Juran Trilogy
Planning
Control
Improvement
Project by project improvement
Manager must prioritize which will bee undertaken first
Project selection based on financial return
Management provide money
Workers provide technical
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35. Quality Theory Juran has applied pareto’s Law in quality management.
Leading Contributors to Theory
Juran has applied pareto’s Law in quality management.
Pareto’s Law or the 80/20 rule
80% of wealth in milan was held by 20% of the population.
The majority of quality problems are the result of relatively few causes.
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37. Quality Theory Ishikawa Ishikawa was greater believe in training
Leading Contributors to Theory
Ishikawa
Ishikawa was greater believe in training
His greatest achievement is redevelopment of seven QC tools
Everyone in the company should responsible for statistical quality control
Ishikawa is credit for introducing company-wide quality control in Japan
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40. Quality Theory Crosby Zero Defects
Leading Contributors to Theory
Crosby
Zero Defects
Behavior and motivational aspects of quality improvement
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41. Quality Theory The Rest of the Pack Camp Peters Hammer & Champy Covey
Leading Contributors to Theory
The Rest of the Pack
Camp
Peters
Hammer & Champy
Covey
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42. Quality Theory
Quality Theory from a Contingency Perspective
There is a mass of contradictory information… it is best to focus on fundamental Questions:
What are our strengths?
What are our competencies?
In what areas do we need to improve?
What are our competitors doing to improve?
What is our organizational structure?
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43. Quality Theory Leadership Information Analysis Strategic Planning
Quality Theory from a Contingency Perspective
Core Variables
Leadership
Information Analysis
Strategic Planning
Employee Improvement
Quality Assurance
Customer role in Quality
Quality Department
Environment
Philosophy Driven
Quality Breakthrough
Project/team-based improvement
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44. Quality Theory Information Analysis Team Building Strategic Planning
Summary
Information Analysis
Team Building
Strategic Planning
Quality Department Role
Breakthrough
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