BACKGROUND, HISTORY, Chapter 2

QUALITY GURUS
HISTORY WITH TIMELINE
 GUILDS OF MEDIEVAL EUROPE
(From the end of 13th Century to Early 19th Century (From the end of 13th Century to Early 19th Century)
 ANTECEDENTS OF MODERN QUALITY MANAGEMENT

The Industrial Revolution

(From the end of 17th Century to 1800s)

▪Craftsmanship
▪The Factory System
▪The Taylor System
QUALITY MANAGEMENT (TQM) WORLD WAR II
THE BIRTH OF TQM
AND STARTS ERA OF
“QUALITY GURUS”!
Post World War II
The birth of the Total Quality Control in
US was in direct response to a quality
revolution in Japan following WW-II as
Japanese manufacturers converted from
Producing Military Goods for internal use
to producing civilian goods for trade. At
first Japan had a widely held reputation
for shoddy exports, and their goods
were shunned by international markets.
This led Japanese organizations to
explore new ways of thinking about
quality.
QUALITY GURUS AND CONTRIBUTIONS

By definition, is a good person, a wise Contributors:

person and a teacher. ▪ Eliyahu M. Goldratt ,
A quality guru should be all of these, plus ▪Walter Shewart,
have a concept and approach to quality ▪W. Edwards Deming,
within business that has made a major
▪Joseph Juran,
and lasting impact. These gurus have
done, and continue to do, that, in some ▪Armand Feigenbaum,
cases, even after their death. ▪Philip Crosby,
▪Kaoru Ishikawa,
▪ ▪Genichi Taguchi,
▪Shigeo Shingo and
▪ Masaaki Imai to the quality movement.
 CONTRIBUTION ▪Walter Shewart (1891–1967) was a statistician at Bell
▪Eliyahu M. Goldratt (1947–2011) was an Israel-born physicist Labs and is considered by many to be the founder of the
who became a business management guru. modern quality movement, and an innovator in the
▪Theory of Constraints (TOC), manufacturing, engineering, and application of statistics to quality.
other business processes. ▪His seminal contributions were based on his work at Bell
▪TOC is one of the most profound developments in the practical Telephone Laboratories during the 1920s and the 1930s
aspect of making organizational decisions in situations in which and were compiled in two books;
constraints exist. ▪Economic Control of Quality of Manufactured Product in
▪Practical framework for managing enterprises with a holistic 1931 and Statistical Method from the Viewpoint of Quality
and a focused approach and does away with conflicts between Control in 1939.
local operating-level decisions and global objectives and goals ▪Referred to as the “grandfather of quality control.”
of a company. ▪Studied randomness and recognized that variability
▪Identify the constraints and restructure the rest of the existed in all manufacturing processes.
organization around it. Most constraints in an organization are ▪Developed Shewart cycle; Plan-Do-Study-Act (PDSA) or
of their own making. Plan-Do-Check-Act (PDCA) to manage the effects of
▪TOC brings in the powerful ‘five-focusing step’ methodology to variation.
identify the constraints in a company and systematically attach ▪Quality control charts that are presently used to identify
the associated problems. This results in dramatic improvement of whether the variability in the process is random or due to
throughput and customer order due date performance, and an assignable cause such as unskilled workers or equipment
inventory reduction. not being calibrated. eliminating variability improved
▪The five steps in applying TOC, also called the process of on- quality.
going improvement (POOGI). ▪Statistical process control measures used today.
QUALITY GURU
The Americans who went to Japan:

Joseph M. Juran Armand V Feigenbaum

W. Edward Deming
W. EDWARD DEMING (TQM)
❖W. Edwards Deming (1900–1993), referred to as the “father of quality control.”
❖Initiating a transformation in the Japanese manufacturing sector in the aftermath of World
War II, which enabled it to become a big player in the world market.
❖Deming was invited to Japan in1954 by the Union of Japanese Scientists and Engineers
(JUSE).
❖Deming was the main figure in popularizing quality control in Japan and regarded as
national hero in that country.
❖Quality must be built I into the product at all stages in order to achieve a high level of
excellence.
❖Thoughts highly influenced by Walter Shwartz’s who was the proponent of Statistical
Quality Control (SQC). He views statistics as a management tool and relies on statistical
process control as means in managing variations in a process.
❖Modified the Shewhart’s PDSA (Plan, Do, Study, Act) cycle, now referred to as Deming
Cycle (Plan, Do, Check, Act). The Deming cycle is known as Deming wheel or the PDCA (Plan-
Do-Check-Action)
❖PDCA Cycle. “Deming cycle,” crucial QC tools for assuring continuous improvement.
❖Deming Prize, the highest award for quality in Japan, is named in his honour.
❖Deming Chain Reaction and Theory of Profound Knowledge.
❖14 Points (a new philosophy for competing on the basis of quality)
APPLICATIONS OF THE PDCA CYCLE
It is a problem-solving process adopted by firms engaged in ❖ Design → Plan: When a problem is
continuous improvement. Deming stressed the importance of detected in product design and
constant interaction among the four stages of Design, development, find the causes of the
Production, Sales and Research for a company to arrive at problem.
better quality that satisfied customers. ❖ Production → Do: A pilot project is
This wheel should be operated in accordance with quality first
done, or implemented..
perceptions and responsibilities. He stated that to arrive at a
quality that satisfied customers, the four stages should be
❖ Sales → Check: The results of the effort
rotated constantly with quality as the most critical criterion. are observed and analyzed against
the plan.
❖ Research → Action: At this stage, the
cycle starts again with planning an
improvement. Used as a dynamic
model.
EXAMPLE
THE RAMP OF IMPROVEMENT DEMING CHAIN REACTION
The Deming Chain Reaction The Deming chain reaction was first
This is a schematic representation of the
presented in 1950 in Japan after World War II. It illustrated Shewart’s
use of the PDCA cycle in the
improvement process. As each PDCA concept that productivity and quality improved as variation reduced.
cycle reaches completion, a new and
slightly more complex project is His book Out of the Crisis (1989) is
undertaken. This roll-over feature is considered a quality classic.
Deming identified seven deadly sins
integral to the continual improvement affecting quality:
process. 1. Lack of constancy of purpose
2. Emphasis on short-term profits
3. Over-reliance on performance
appraisals
4. Mobility of management
5. overemphasis on visible figures
6. Excessive medical costs for employee
healthcare
7. Excessive costs of warranty and legal
costs
 DEMING’S CONTRIBUTION………….
DEMING’S 14-POINT METHODOLOGY
1. Constancy of purpose
2. The new philosophy
DEADLY DISEASE
3. Cease dependence on inspection
4. End lowest tender contracts SYSTEM OF PROFOUND KNOWLEDGE (SOPK)
5. Improve every process
6. Institute training on the job
7. Institute leadership
System Thinking
8. Drive out fear:
9. Breakdown barriers:
Variation
10. Eliminate exhortations Psychology
11. Eliminate arbitrary numerical targets: Theory of knowledge
12. Permit pride of workmanship:
13. Encourage education
14. Top management’s commitment:
 JOSEPH JURAN &JURAN’S QUALITY TRILOGY
Joseph Juran (1904–2008) assisted the Japanese in their reconstruction
processes after World War II. Juran first became famous in the US as the
editor of the Quality Control Handbook (1951), and later for his paper
introducing the quality trilogy—quality planning, quality control and quality
improvement.
• Quality planning provides a system that is capable of meeting quality
standards.
• Quality control is used to determine when corrective action is required.
• Quality improvement seeks better ways of doing things.
❖ Juran defined quality as “fitness for use” and also developed the concept
of cost of quality.
❖ In 1937, Dr. Juran created the “Pareto principle,” which millions of
managers rely on to help separate the “vital few” from the “trivial many”
in their activities. This is commonly referred to as the 80-20 principle.
❖ While Deming’s approach is revolutionary in nature (i.e. throw out one’s old
system and “adopt the new philosophy”, his 14 points), Juran’s approach is
more evolutionary (i.e. one can work to improve the current system).
❖ Agrees with Deming that more than 80 per cent of defects are caused by
the system rather than the workers and lists motivation of workers as a
solution to quality problems.
2/23/
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ARMAND V FEIGENBAUM
Originator of “Total Quality Control” (1956). The Japanese version of this
concept is called Company Wide Quality Control, while it is termed Total Quality
Management (TQM) in the US and elsewhere.

“An effective system for integrating quality development, quality maintenance and
quality improvement efforts of the various groups within an organization, so as to
enable production and
service at the most economical levels that allow full customer satisfaction”.

He saw it as a business method and proposed three steps to quality:

• Quality leadership
• Modern quality technology
• Organizational commitment
JAPANESE WHO DEVELOPED NEW CONCEPTS IN RESPONSE TO THE AMERICANS

Dr Kaoru Ishikawa Dr Genichi Taguchi Shigeo Shingo

 Professor Kaoru Ishikawa (1915–1989) is known as the “father of quality
circles” for his role in launching Japan’s quality movement in the 1960s.
Dr Kaoru Ishikawa
Dr Kaoru Ishikawa made many contributions to quality, the most noteworthy
being his total quality viewpoint, company wide quality control, his emphasis on
the human side of quality, the Ishikawa diagram and the assembly and use of
the “seven basic tools of quality”:

 Pareto analysis which are the big problems?

 Cause and effect diagrams what causes the problems?
 Stratification how is the data made up?
 Check sheets how often it occurs or is done?
 Histograms what do overall variations look
like?
 Scatter charts what are the relationships
between factors?
 Process control charts which variations to control and
how?
EXAMPLE PARETO CHART
Example Pareto Chart
120
100
100

80
80

Percent
Count

60
60

40
40

20 20

0 0
sample1 red blue green yellow Other
Count 53 27 19 7 2
Percent 49.1 25.0 17.6 6.5 1.9
Cum % 49.1 74.1 91.7 98.1 100.0
ISHIKAWA DIAGRAM (CAUSE & EFFECTS DIAGRAM/FISHBONE)
 Investigate the Root Causes
Understand the root causes of a problem BEFORE
you put a “solution” into place
 CAUSE & EFFECT DIAGRAMS
Why are cause and effect
diagrams helpful? Identify and display many
different possible causes for a
Root cause Root cause problem

See the relationships

Focused
problem
between the many causes

Helps determine which data to

Root cause Root cause collect
How To Construct Cause & Effect Diagrams
•Clearly define the focused problem
◼Bones should not include
•Use brainstorming to identify possible causes
solutions
•Sort causes into reasonable clusters (no less than ◼Bones should not include lists
3, not more than 6) of process steps
◼Bones include the possible
•Label the clusters (consider people, policies,
causes
procedures, materials if you have not already
identified labels) Better understand the current
situation…..
•Develop and arrange bones in each cluster
Now begin to develop a change.
•Check the logical validity of each causal chain
BUILDING A CAUSE & EFFECT DIAGRAM

Materials Policies
Lack of office Minimal
space Location
benefits
Restrictive budget No policy on staff
screening Turnover in
“Back-biting”
staff
Escorting clients to environment Lack of
appointments and supervision
having to wait
Paperwork Burnout
overwhelming Inadequate
training
Procedures People
HİSTOGRAM
Used to visualize the distribution
Histogram of univariate sample
0.08

0.06

Density 0.04

0.02

0.00

20 30 40 50

measurement scale
SHIGEO SHINGO
Dr Shingo Shigeo (1909–1990) was perhaps the greatest contributor to modern
manufacturing practices. Shingo’s Key Teachings The impact of Dr Shingo Shigeo’s
teachings can be classified into three concepts listed below:
• Just in time (JIT) The just-in-time (JIT) inventory system is a management strategy that
aligns raw-material orders from suppliers directly with production schedules. (management
strategy that minimizes inventory and increases efficiency)
• Single minute exchange of dies (SMED) used for reducing waste in a manufacturing process. It
provides a rapid and efficient way of converting a manufacturing process from running the current product to
running the next product.
• Zero quality control (A combination of source inspection and mistake-proofing devices is the only method
to get you to zero defects.)
Shingo is strongly associated with Just-in-Time manufacturing, and was the inventor of the
single minute exchange of die (SMED) system, in which set up times are reduced from
hours to minutes, and the Poka-Yoke (mistake proofing) system.
In Poka Yoke, defects are examined, the production system stopped and immediate
feedback given so that the root causes of the problem may be identified and prevented
from occurring again.
Poka-yoke Techniques to Correct Defects + Source Inspection to Prevent Defects = Zero
Quality Control
 TOTAL QUALITY MANAGEMENT (TQM)
Poka Yoke: Fail Safe/Mistake Proofing System
DR GENICHI TAGUCHI
❖Dr Genichi Taguchi14 is a Japanese quality expert known for his work in
the area of product design. He estimated that as much as 80 per cent of all
defective items were caused by poor product design
❖Taguchi developed approaches to assess outside influences (which he
referred to as noise) on processes that he used to establish the signal-to-
noise ratio as a measure of the quality of a process.
❖Taguchi Loss Function (quantified the loss to society of the variation in
processes which resulted in products not being produced exactly at the
target values.)
❖ “Taguchi methodology” is fundamentally a prototyping method that
enables the designer to identify the optimal settings to produce a robust
product that can survive manufacturing time after time, piece after piece,
and provide what the customer wants.
❖Idea of robustness (which is the ability of a process or product to perform
even in the face of uncontrollable outside influences (noise))
FIVE PRIMARY TOOLS OF ROBUST DESIGN
TAGUCHI’S QUALITY LOSS FUNCTION
DESIGN OF EXPERIMENTS
TOTAL QUALITY MANAGEMENT (TQM)
Western gurus who followed the Japanese industrial success

Philip B Crosby Tom Peters

PHILIP B CROSBY
The essence of Crosby’s teachings is contained in
what he calls the “four absolutes of quality.”
Crosby is known for the
concepts of “Quality is Free” and 14-step methodology
“Zero Defects”, and his quality 1. Management commitment
improvement process is based on 2. Quality improvement team
his four absolutes of quality:
3. Quality measurement
4. Cost of quality
 Quality is conformance to 5. Quality awareness:
requirements
 The system of quality is 6. Corrective action:
prevention 7. Zero defects planning:
 The performance standard is 8. Supervisor training:
zero defect 9. Zero defects day:
 The measurement of quality is 10. Goal setting:.
the price of non-conformance
11. Error cause removal:.
12. Recognition:.
13. Quality councils:.
14. Do it over again:
TOM PETERS
Tom Peters identified leadership as being central to the
quality improvement process, discarding the word
“Management” for “Leadership”. The new role is of a
facilitator, and the basis is “Managing by walking about”
(MBWA), enabling the leader to keep in touch with customers,
innovation and people, the three main areas in the pursuit of
excellence.
He believes that, as the effective leader walks, at least 3
major activities are happening:

 Listening suggests caring

 Teaching values are transmitted
 Facilitating able to give on-the-spot help
 TOTAL QUALITY MANAGEMENT (TQM)
The American Response
The US Business Community Wakes up in 1980s from Deep Slumber

Several other quality initiatives followed. The ISO 9000 series of quality-management standards, for example,
were published in 1987. The Baldrige National Quality Program and Malcolm Baldrige National Quality Award
were established by the U.S. Congress the same year. American companies were at first slow to adopt the
standards but eventually came on board.
▪The major rationale behind establishment of this law was intense foreign competition especially from Japan.
▪The award has set a national standard for quality, and hundreds of major corporations used the criteria in
application form as a basic management guide for quality improvement programs.
▪Meeting criteria is not an easy matter. A perfect score is 1000
BALDRIGE AWARD POINTS SCALE
Examination Categories/Items _____ Point Values

1.0 Leadership 95

1.1 Senior Executive Leadership 45

1.2 Management for quality 25
1.3 Public Responsibility and corporate citizenship 25

2.0 Information and Analysis 75

2.1 Scope and management of quality and performance data 15

information.
2.2 Competitive comparisons and benchmarking 20
2.3 Analysis and uses of company-level data 40

3.0 Strategic Quality Planning 60

3.1 Strategic quality and company performance planning process 35

3.2 Quality performance plans 25
TOTAL QUALITY MANAGEMENT (TQM)
Examination Categories/Items Point Values

4.0 Human Resource Development and Management 150

4.1 Human resource planning and management 20
4.2 Employee involvement 40
4.3 Employee education and training 40
4.4 Employee performance and recognition 25
4.5 Employee well-being and satisfaction 25

5.0 Management of Process Quality 140

5.1 Design and introduction of quality products and services 40
5.2 Process management: product and service production and 35
delivery processes
5.3 Process management: business processes and support services 30
5.4 Supplier quality 20
5.5 Quality assessment 15
TOTAL QUALITY MANAGEMENT (TQM)
Examination Categories/Items Point Values

6.0 Quality and Operational Results 180

6.1 Product and service quality results 70
6.2 Company operational results 50
6.3 Business process and support service results 25
6.4 Supplier quality results 35

7.0 Customer Focus and Satisfaction 300

7.1 Customer expectation: current and future 35
7.2 Customer relationship management 65
7.3 Commitment to customer 15
7.4 Customer satisfaction determination 30
7.5 Customer satisfaction results 85
7.6 Customer satisfaction comparison 70
TOTAL QUALITY MANAGEMENT (TQM)

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