Quality Management Quality Management StrategiesStrategies

Dr. W.E. DemingDr. W.E. Deming

• A census bureau statisticianA census bureau statistician• Improved U.S. production during WWIIImproved U.S. production during WWII• 1950 – Invited to lecture to top management in 1950 – Invited to lecture to top management in

Japan on statistical quality control Japan on statistical quality control • Revolutionized production of high quality Revolutionized production of high quality

products in Japanproducts in Japan– Statistical process control (SPC)Statistical process control (SPC)– Continuous Process Improvement (CPI)Continuous Process Improvement (CPI)

• Credited with having the greatest impact upon Credited with having the greatest impact upon Japanese manufacturing and business of any Japanese manufacturing and business of any other non-Japanese individualother non-Japanese individual

Deming’s 14 Points for Deming’s 14 Points for ManagementManagement

1. Create constancy of purpose 1. Create constancy of purpose toward improvement of product and toward improvement of product and service.service.

Deming’s 14 Points for Deming’s 14 Points for ManagementManagement

2. Adopt the new philosophy. We are 2. Adopt the new philosophy. We are in a new economic age. Western in a new economic age. Western management must awaken to the management must awaken to the challenge.challenge.

Deming’s 14 Points for Deming’s 14 Points for ManagementManagement

3. Cease dependence on mass 3. Cease dependence on mass inspection to achieve quality. inspection to achieve quality. Instead, improve the process and Instead, improve the process and build quality into the product in the build quality into the product in the first place.first place.

Deming’s 14 Points for Deming’s 14 Points for ManagementManagement

4. End the practice of awarding 4. End the practice of awarding business on the basis of price tag business on the basis of price tag alone. Instead, minimize total cost alone. Instead, minimize total cost in the long run. in the long run.

Deming’s 14 Points for Deming’s 14 Points for ManagementManagement

5. Improve constantly and forever the 5. Improve constantly and forever the system of production and service to system of production and service to improve quality and productivity and improve quality and productivity and thus constantly decrease costs and thus constantly decrease costs and improve profits.improve profits.

Deming’s 14 Points for Deming’s 14 Points for ManagementManagement

6. Institute training for skills on the 6. Institute training for skills on the job.job.

Deming’s 14 Points for Deming’s 14 Points for ManagementManagement

7. Adopt and institute leadership for 7. Adopt and institute leadership for the management of people, the management of people, recognizing their different abilities, recognizing their different abilities, capabilities, and aspiration. The aim capabilities, and aspiration. The aim of leadership should be to help of leadership should be to help people, machines, and gadgets do a people, machines, and gadgets do a better job. better job.

Deming’s 14 Points for Deming’s 14 Points for ManagementManagement

8. Drive out fear and build trust so 8. Drive out fear and build trust so that everyone can work more that everyone can work more effectively for the organization.effectively for the organization.

Deming’s 14 Points for Deming’s 14 Points for ManagementManagement

9. Break down barriers between 9. Break down barriers between departments. Abolish competition departments. Abolish competition and build a win-win system of and build a win-win system of cooperation within the organization. cooperation within the organization. Optimize the organization as a Optimize the organization as a system.system.

Deming’s 14 Points for Deming’s 14 Points for ManagementManagement

10. Eliminate slogans, exhortations, 10. Eliminate slogans, exhortations, and targets asking for zero defects or and targets asking for zero defects or new levels of productivity. new levels of productivity.

Deming’s 14 Points for Deming’s 14 Points for ManagementManagement

11. Eliminate numerical goals, 11. Eliminate numerical goals, numerical quotas and management numerical quotas and management by objectives. Substitute leadership.by objectives. Substitute leadership.

Deming’s 14 Points for Deming’s 14 Points for ManagementManagement

12. Remove barriers that rob people 12. Remove barriers that rob people of joy in their work and the right to of joy in their work and the right to pride of workmanship. This will pride of workmanship. This will mean abolishing the annual rating or mean abolishing the annual rating or merit system that ranks people and merit system that ranks people and creates competition and conflict.creates competition and conflict.

Deming’s 14 Points for Deming’s 14 Points for ManagementManagement

13. Institute a vigorous program of 13. Institute a vigorous program of education and self-improvement.education and self-improvement.

Deming’s 14 Points for Deming’s 14 Points for ManagementManagement

14. Put everybody in the company to 14. Put everybody in the company to work to accomplish the work to accomplish the transformation. The transformation transformation. The transformation is everybody’s job.is everybody’s job.

Beyond DemingBeyond Deming

• Joseph JuranJoseph Juran• Brian JoinerBrian Joiner• ISO – International Standards ISO – International Standards

OrganizationOrganization– 90009000– 1400014000

• Six SigmaSix Sigma• Balanced ScorecardBalanced Scorecard

Quality AwardsQuality Awards

• Deming Prize (1951) – Established by Deming Prize (1951) – Established by Japanese Union of Scientists and EngineersJapanese Union of Scientists and Engineers

• George M. Low Trophy (1985) – NASA George M. Low Trophy (1985) – NASA Quality & Excellence AwardQuality & Excellence Award

• Malcolm Baldridge National Quality Award Malcolm Baldridge National Quality Award (1987) – Total Quality Management (TQM) (1987) – Total Quality Management (TQM)

• European Quality Award (EQA) – (EFQM European Quality Award (EQA) – (EFQM Excellence Award) – Europe’s most Excellence Award) – Europe’s most prestigious award for Organizational prestigious award for Organizational ExcellenceExcellence