1. Slide 3.1  1999 South-Western College Publishing Chapter 3 Quality Management Philosophies

2. Slide 3.2 Leaders in the Quality Revolution u W. Edwards Deming u Joseph M. Juran u Philip B. Crosby u Armand V. Feigenbaum u Kaoru Ishikawa

3. Slide 3.3 Deming Chain Reaction Improve quality Costs decrease because of less rework and mistakes Productivity improves Capture market with better quality and lower price Stay in business and provide more jobs

4. Slide 3.4 Deming’s System of Profound Knowledge u Appreciation for a system u Understanding variation u Theory of knowledge u Psychology

5. Slide 3.5 Systems A system is a set of functions or activities within an organization that work together for the aim of the organization. u Components must work together u Management must optimize the system u Every system must have a purpose

6. Slide 3.6 Variation u Many sources of uncontrollable variation exist (common causes) u Special (assignable) causes of variation can be recognized and controlled u Failure to understand these differences can increase variation in a system u Taguchi philosophy seeks to minimize variation around a target value

7. Slide 3.7 Sources of Variation in Production Processes Materials Tools OperatorsMethods Measurement Instruments Human Inspection Performance EnvironmentMachines INPUTSPROCESSOUTPUTS

8. Slide 3.8 Traditional View of Conformance to Specifications No LossLoss Tolerance 0.5000.5200.480

9. Slide 3.9 Theory of Knowledge u Knowledge is not possible without theory u Experience alone does not establish a theory, it only describes u Theory shows a cause and effect relationship that can be used for prediction

10. Slide 3.10 Psychology u Sincere trust and belief in people u Understanding of how people work in systems u Intrinsic versus extrinsic motivation

11. Slide 3.11 Deming’s 14 Points (Abridged) (1 of 2) 1. Create and publish a company mission statement and commit to it. 2. Learn the new philosophy. 3. Understand the purpose of inspection. 4. End business practices driven by price alone. 5. Constantly improve system of production and service. 6. Institute training. 7. Teach and institute leadership.

12. Slide 3.12 Deming’s 14 Points (2 of 2) 8. Drive out fear and create trust. 9. Optimize team and individual efforts. 10. Eliminate exhortations for work force. 11. Eliminate numerical quotas and M.B.O. Focus on improvement. 12. Remove barriers that rob people of pride of workmanship. 13. Encourage education and self-improvement. 14. Take action to accomplish the transformation.

13. Slide 3.13 Deming Prize u Instituted 1951 by Union of Japanese Scientists and Engineers (JUSE) u Several categories including prizes for individuals, factories, small companies, and Deming application prize u American company winners

14. Slide 3.14 Juran’s Quality Trilogy u Quality planning u Quality control u Quality improvementQ.PQ.C.Q.I.

15. Slide 3.15 Philip B. Crosby Absolutes of Quality Management: u quality means conformance to requirements u problems are functional in nature u there is no optimum level of defects u cost of quality is the only useful measurement u zero defects is the only performance standard