Dr Deming and its contribution to TQM

GROUP-1ANSHUKIRI ALJITAVARSHA PRABHUSWATHI N

INTRODUCTION

W Edwards Deming (1900-1993)

Introduction: Father Of Quality Control

Born-  October 14, 1900 – December 20, 1993

Place- Sioux City, Iowa, USA

Field- American statistician, professor, author,

  lecturer, and consultant

Died - December 20, 1993 (aged 93)Washington DC USA

Background

• BSc in electrical engineering from the University of Wyoming at Laramie (1921)

• M.S. from the University of Colorado (1925)

• Ph.D. from Yale University(1928)

• graduated in mathematics and physics

Family background

• Born in Sioux City

• Was raised in Polk City, Iowa on his grandfather Henry Coffin Edwards's chicken farm

• then later on a 40-acre (160,000 m2) farm purchased by his father in Powell, Wyoming

• Parents-William Albert Deming and Pluma Irene Edwards

• His parents were well educated and emphasized the importance of education to their children.

• Pluma had studied in San Francisco and was a musician. William Albert had studied mathematics and law.

Experienced• Internship at Bell Telephone Laboratories while studying at

Yale

• Worked at the U.S. Department of Agriculture

• Census Department and While working under Gen

• Douglas MacArthur as a census consultant to the Japanese government, the famously taught statistical process control methods to Japanese business leaders

• Returning to Japan for many years to consult and to witness economic growth that he had predicted would come as a result of application of techniques learned from Walter Shewhart at Bell Laboratories

• Later, he became a professor at New York University while engaged as an independent consultant in Washington, D.C.

• Deming was the author of Out of the Crisis (1982–1986)

•  The New Economics for Industry, Government, Education (1993), which includes his System of Profound Knowledge and the 14 Points for Management.

• In 1993, Deming founded the W. Edwards Deming Institute in Washington D.C. where the Deming Collection at the U.S. Library of Congress includes an extensive audiotape and videotape archive. The aim of the W. Edwards Deming Institute is to foster understanding of The Deming System of Profound Knowledge to advance commerce, prosperity, and peace

Hobbies

Deming played flute & drums and composed music throughout his life, including sacred choral compositions and an arrangement of The Star Spangled Banner

Working in Japan – 1947 to 1956

• Japanese union of scientists and engineers-quality control techniques,SPC

• Regarded by the Japanese as the chief architect of their industrial success

• “All processes are vulnerable to loss of quality through variation: if levels of variation are managed, they can be decreased and quality raised”

• Quality is about people, not products

Contributions• Honors• In 1960, awarded Dr. Deming Japan’s Order of the Sacred Treasure,• Second Class• The citation on the medal recognizes Deming's contributions to Japan’s industrial

rebirth and its worldwide success • The first section of the meritorious service record describes his work in Japan• 1947, Rice Statistics Mission member• 1950, assistant to the Supreme Commander of the Allied Powers instructor in sample survey methods in government statistics• The second half of the record lists his service to private enterprise through the

introduction of epochal ideas, such as quality control and market survey techniques.

• Among his many honors, an exhibit memorializing Dr. Deming's contributions and his famous Red Bead Experiment is on display outside the board room of the American Society for Quality

Deming institute• The W. Edwards Deming Institute is a nonprofit organization that

was founded in 1993 by noted consultant Dr. W. Edwards Deming

• The aim of the Institute is to foster understanding of The Deming System of Profound Knowledge to advance commerce, prosperity and peace

Focus• Create opportunities to exchange ideas and experiences related to

Deming's work.

• Promote cooperation with interested organizations worldwide

• Preserve, promote and make available Deming's works and related works of others.

Deming award

The Deming prize, established in December 1950 in honor of W. Edwards Deming, was originally designed to reward Japanese companies for major advances in quality improvement

eg: Tata steel, Mahindra and Mahindra,TVS motors company

Later work in the U.S

Deming continued running his own consultancy business in the United States, largely unknown and unrecognized in his country of origin and work.

In 1980, he was featured prominently in an NBC documentary titled If Japan can... Why can't we? about the increasing industrial competition the United States was facing from Japan.

As a result of the broadcast, demand for his services increased dramatically, and Deming continued consulting for industry throughout the world until his death at the age of 93.

W. Edwards Deming Quotes

• "It is a mistake to assume that if everybody does his job, it will be all right.The whole system may be in trouble."

• "The process is not just the sum of its parts."• "The problem is that most courses teach what is wrong."• "Management is prediction."• "A goal without a method is nonsense."• "Without theory, there are no questions."• "Monetary rewards are not a substitute for intrinsic motivation."• "The merit system will put us out of business."• "A leader is a coach, not a judge."• "A leader must have knowledge. A leader must be able to teach."• "Does experience help? No! Not if we are doing the wrong things."• "If you destroy the people of a company, you do not have much left."• "Management by results is confusing special causes with common causes."• "We should work on the process, not the outcome of the processes."• "Build in quality."• "No one has to change. Survival is optional.

BOOKS OF DEMINGS • The New Economics for Industry, Government, and Education, 1993

• Deming, W. Edwards. Out of the Crisis, 1986

• Deming, W. Edwards. Quality, Productivity, and

• Competitive Position, 1982.

• Deming, W. Edwards. Some Theory of Sampling, 1950, 1984.

• Deming, W. Edwards. Statistical Adjustment of Data, 1938, 1984.

• Deming, W. Edwards. Sample Design in Business Research (Applied Statistics), 1960, 1990.

• Deming, W. Edwards. On Errors in Surveys

Deming’s Basic teachingsThe chain reaction: Quality, productivity, lower costs, capture the market.Productivity viewed as a system.The seven deadly DiseasesThe Red Bead experimentThe funnel ExperimentThe system of profound knowledge

(1) THE CHAIN REACTION:

Quality, Productivity, Lower costs, Capture the market

(2) PRODUCTIVITY VIEWED AS A SYSTEM:

Supplier and customer as part of your production sytem.

(3)Deming’s Seven Deadly diseases• Lack of Constancy of purposeA company that is without constancy of purpose has no long

range plans for staying in business.

• Emphasis on short-term profitsLooking to increase the quaterly dividends undermines quality

and productivity.

• Evaluating by performance, merit rating or annual review of performance

The effects of these are devastating-teamwork is destroyed, rivalry is nurtured.

Continued…

• Mobility and managementManagers cannot follow through long term changes that are

necessary for quality and productivity.

• Running a company on vissible figures aloneThe most important figures are unknown and unknowable- the

“multiplier” effect of a happy customer for example.

• Excessive medical costsFor employee health care, which increase the final costs of goods

and services.

Continued…

• Excessive costs of warranty, fueled by lawyers that work on the basis of contingency fees.

(4)Funnel Experiment

• The purpose of this experiment was to show:

(a)Danger of tampering ,making changes to a process without first making a careful study of the possible causes of the variation in that process.

(b)If the cause of the problem was not accurately determined,the problem will continue and because of the unwarranted change,may even become worse.

(5)The Red Bead Experiment

• Most performance problems are due to the system and only management can change the system.

• Eliminate management by numbers, numerical goals, substitute leadership.

(6) The System of Profound Knowledge

(something that tied together all of his former teachings into a neat package that consisted of 4 elements)

(a)Appreciation for a system

Most important points for appreciating a system It must have an aim The performance of each component must be judged

on the basis of its contribution to the aim. The system must be actively managed Recognising the importance of the system to

individual performance.

Continued…(b)Knowledge about variation Variation is normal There are 2 kinds of causes of variation: Special cause

and common cause. The importance of a stable system.

(c)Theory of knowledge Theories need to be developed and tested to advance

knowledge. The plan do study act(PDSA) cycle should be used to

systematically develop theories and test them. Learning should be continuous and system wide.

Continued…

(d)Psychology People are different Rely more on intrinsic motivation rather than

extrinsic motivation.

1. Create constancy of purpose for continual improvement of product and service to become competitive & to stay in business.

Define values, mission, vision & communicate the purpose of company. Long term view, invest in innovation, training & research.

2. Adapt the new philosophy for economic stability: Old methods of management built on Taylor’s principles will not work. Customer dissatisfaction due to poor quality & poor fitness. Customer driven approach, mutual co-operation between labour &

management. Never ending cycle of improvement. Organization must learn & recognize new philosophy.

3. Cease dependency on inspection to achieve quality. Traditional approach – defects are inherent, only way to prevent it to reach

to its customers is inspection. Deming contradicted this saying that:

Inspection increase costs, rework decreases productivity, it does not remove causes of defects, it rarely increases value for customers, form bottlenecks, divide responsibility for quality so reduce overall concern for quality.

Workers must take responsibility for their work. Use of statistical quality control tools.

4. End the practice of awarding business on price tag alone. Traditional purchase department – cost minimisation without regard to

quality. Need for total cost assessment. Assess the total cost – expenses for inspection, scrap & rework, inventory

to replace defective items & employee frustration. Deming urged businesses to maintain long-term relationships with

suppliers (mutual improvement).

5. Improve constantly & forever the system of production and services.

Japanese – incremental improvements. Improvements are necessary in both design and production. Improvement – reducing variation by eliminating special causes and

reducing effects of common causes. To produce quality product consistently – identify & eliminate waste and

variability throughout the system.

6. Institute training on the job: For CQI – workers and managers should be trained. Training for statistical tools for solving quality problems. Adds to workers’ morale and removes barriers between workers and

supervisors.

7. Adopt and institute modern methods of supervision & leadership.

Manager should be leader not supervisor. Supervision – overseeing & directing work. Leadership – providing guidance to do better job with less efforts. Encourage & promote team work, reward innovation & initiative.

8. Drive out fear. Deming identified fear as major obstacle & barrier. (fear of reprisal, fear of

failure, fear of the unknown, fear of losing control, fear of change) Workers are afraid to report quality problems. To drive out fear – encourages people to ask questions, report problems

and try new ideas. Managers must demonstrate importance of trying something new.

9. Breakdown barriers between departments & individuals.

Many organizations look at problem within strict functional limits (optimization of activities within a function not of organization as whole)

Interdisciplinary teams. Encourage team, assigning people to teams and changing PMS to reward

group performance rather than individual results.

10. Eliminate use of slogans, posters and exhortations: Slogans like “Do it right the First time” “Zero defects” – assume that all

quality problems are due to human behaviour. Quality problems are usually due to limits in current system. Tools & training to work smarter. Motivation can be better achieved from trust and leadership than from

slogans.

11. Eliminate work standards and numerical quotas. They are born in short-term perspectives, create fear of punitive action for

not achieving them, may not encourage improvement. Workers may short-cut quality to reach numerical quotas. Excessively demanding quotas – discourage workers – compromise with

quality. Unreasonable quotas – fear, frustration, quit. TQM – one ultimate task “ TO PRODUCE QUALITY PRODUCTS”

12. Remove barriers that rob the hourly worker of the right to pride in workman ship:

Employees are not recognized as valuable human resources – monotonous tasks, inferior machines, work at odd hours and holidays.

Deming – highest barriers to pride in workmanship is performance appraisal.

Deming sorted performance into 3 categories:

1) majority of performances that are within system

2) performance outside the system on superior side

3) performance outside the system on inferior side.

13. Institute a vigorous program of education and retraining.

Continual training keeps the work-force up-to-date with information about new developments, changes in product designs & machinery, new tools and procedures and innovative techniques.

Investment in training. Powerful motivation method.

14. Define top management’s permanent commitment to ever-improving quality and productivity:

Top manager’s actions communicate the true importance of quality. Commitment of top managers to quality encourages managers &

employees to follow top managers towards personal and organizational success.

For TQM to succeed, top managers must publicly demonstrate commitment to CQI & innovation – they must practice what they preach.

Management commitment to improvement (points 1,2,14)

Improve interrelationships(points 4,7,8,9,10,11,12)

Apply statistical methodology (points 3,5,6,13)

PDCA CYCLE

PDCA/ Deming Wheel

The plan–do–check–act cycle is a four-step model for carrying out change. Just as a circle has no end, the PDCA cycle should be repeated again and again for continuous improvement.

Also known as Deming Wheel Or PDCA Cycle .

PLAN

• The Plan stage is where it all begins. Prior to implementing a change you must understand both the nature of your current problem and how your process failed to meet a customer requirement

Do

• The team implements the plan and monitors progress. Data are collected continuously to measure improvements in the process. Changes if any, in the process, are documented and further revisions are made as needed

CHECK

• The team analyses the data collected during the ‘do’ step to find out how closely the results correspond to the goals in the ‘plan’ step. If major shortcomings exist, the team may have to re-evaluate the plan or stop the project.

ACT

• If the results are successful. The team documents the revised process so that it becomes the standard procedure for all who may use it.

STRENGTHS and WEAKNESSES of Deming’s Philosophy

Strengths:Leadership and motivation of employees are

recognised as important

The work was strong on statistical and quantitative methods.

Continued…

Weakness

There is no clear “Deming method” to achieve Total quality.

The principles and methods have nothing to say about intervention in situations that are political and coercive in nature.

Deming Prize

Background Of Deming Prize

• Dr. W. E. Deming was invited to Japan by the Union of Japanese Scientists and Engineers (JUSE) in July 1950.

• Upon his visit, Dr. Deming lectured "Eight-Day Course on Quality Control," at the Auditorium of the Japan Medical Association in Kanda-Surugadai, Tokyo.

Contd….

• Established in December 1950 in honour of W. Edwards Deming.• Provided under guidance of

Japanese Union of Scientists and Engineers (JUSE)

• The awards ceremony is broadcast every year in Japan on national television.

Categories Of Deming Prize

• The Deming Prize for Individuals• The Deming Application Prize• The Quality Control Award for Operations

Business Units

Deming prize for Individuals

• Given to those who have made outstanding contributions to the study of TQM or statistical methods used for TQM, or

• Those who have made outstanding contributions in the dissemination of TQM

Steps In Awarding Deming Prize For Individuals

• Examination There is no difference in the examination

process regardless if the candidates have been recommended by others or self-applied.

• Determination of the winners• Public announcement of the winners• Award ceremony

Deming Application Prize

For organizations or divisions of organizations that manage their business autonomously given to organizations or divisions of organizations that have achieved distinctive performance improvement through the application of TQM in a designated year

Quality Control Award for Operations Business Units

• Given to operations business units of an organization that have achieved distinctive performance improvement through the application of quality control/management in the pursuit of TQM in a designated year