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Total Quality Management Instructor: Hank Sobah

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Total Quality Management Instructor: Hank Sobah Quality Theory Juran, Crosby, Deming Total Quality Management Key concepts The Cost of Quality Tools and Techniques ... – PowerPoint PPT presentation

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Title: Total Quality Management Instructor: Hank Sobah


1
Total Quality Management Instructor Hank Sobah
  • Quality Theory
  • Juran, Crosby, Deming

2
Total Quality Management
  • Key concepts
  • The Cost of Quality
  • Tools and Techniques
  • Benefits
  • Implementation

3
Total Quality Management
Company Wide Quality Control
Quality measured in all areas of the firm
Whole operation Involved Quality
strategy Teamwork Staff Empowerment Customer
Involvement Supplier Involvement
Quality Assurance
Quality System Quality Costing Problem
Solving Quality Planning
4
The Cost of Quality
  • Elements (prevention, detection, appraisal,
    internal and external failure, customer loyalty)
  • Kaizen TQM always involving everyone, always
    going forward, a Way of Life.
  • Cost is related to not doing something
  • Not just a manufacturing initiative

5
Cost of Quality
  • The earlier in the process that quality is fixed
    the lower the overall cost.
  • (obvious really isnt it!)

Prevention
Appraisal
Prevention
Internal failure
Appraisal
External failure
Internal failure
External failure
6
Quality Management Tools
  • Pareto principle 80/20
  • Visual presentation histograms, scatter
    diagrams, control charts
  • Check sheets
  • SPC Statistical Process Control
  • Cause and effect diagrams Fishbone / Ishikawa
    diagram
  • Stratification

7
Beyond Tools to TQM
  • Taguichi Quality Loss Function (QLF)
  • Quality circles
  • Kaizen

8
Company Wide Quality Control
  • Customer service
  • Quality of management
  • Quality of company
  • Quality of labour
  • Quality of Materials, techniques, equipment

9
TQM Implementation
  • Top level strategy with management support
  • Steering Group
  • Group based improvement (quality circles)
  • Continuous improvement (Kaizen)
  • Success recognized
  • Training, lots of it continuously
  • Examples of formats MBNQA, ISO 9001 / BS 5750

10
Benefits
  • Shareholder wealth
  • Increased job satisfaction (by improved
    communication and involvement, better training,
    pride in work workmanship
  • Customer needs are better met
  • Improved supplier relationship
  • Corporate image improved
  • Longer term relationships customer value

11
Without TQM
  • Uninterested operators
  • Increased defects in products
  • Drop in labor efficiency
  • No quality consciousness (why bother?)
  • Increased absenteeism
  • Increased labor turnover

12
TQM Requires
  • Top management commitment
  • Continuous improvement
  • All aspects of the business
  • Long-term commitment

13
Eight attributes of quality
  • Performance
  • Features
  • Reliability
  • Serviceability
  • Durability
  • Conformance
  • Aesthetics
  • Perceived Quality

14
The difference between TQM and non TQM Companies
  • IBM in Ontario ordered a batch of components
    specifying an SQL of 3 defective parts per 1000.
    When the parts arrived from the Japanese
    manufacturer they were accompanied by a letter
    which expressed their bewilderment at being asked
    to supply defective parts as well as good ones.
    The letter explained that they had found it
    difficult to manufacture the defective parts ,
    but indeed had. These 3 defective parts per 1000
    had been included and were wrapped separately for
    the convenience of the customer.

15
Extra Slides
16
Ishikawa 4 Ms
17
Quality Circles
  • 5-10 People usually drawn from the same
    operational area
  • Meet regularly during work time
  • Chaired by a deputy, or foreman
  • Use of SQC methods and problem solving techniques
    - Brainstorming and goal orientation
  • Future problems - failure mode effects analysis
  • Opportunity for development both formal and
    through creativity
  • Management must act on recommendations from the
    group

18
Kaizen
  • KAIZEN is a Japanese word meaning gradual and
    orderly, continuous improvement.
  • It is a business strategy involves everyone in an
    organisation working together to make
    improvements 'without large capital investments'.
  • KAIZEN is a culture of sustained continuous
    improvement focusing on eliminating waste in all
    systems and processes of an organisation.
  • KAIZEN strategy begins and ends with people.
    Involved leadership guides people to continuously
    improve their ability to meet expectations of
    high quality, low cost, and on-time delivery.

Source www.kaizen-institute.com
19
Kaizen The Wet Blanket Approach
  • I am too busy to study it
  • It's a good idea, but the timing is premature
  • It is not in the budget
  • Theory is different from practice
  • Isn't there something else for you to do ?
  • I think it doesn't match corporate policy
  • It isn't our business let someone else think
    about it
  • Are you dissatisfied with your work ?
  • It's not improvement, it's common sense
  • I know the result, even if we don't do it
  • I will not be held accountable for it
  • Can't you think of a better idea ?

Source www.kaizen-institute.com
20
Basic tips for Kaizen Activities
  • Discard conventional fixed ideas.
  • Think of how to do it, not why it cannot be done.
  • Do not make excuses. Start by questioning current
    practices.
  • Do not seek perfection. Do it right away even if
    for only 50 of target.
  • Correct it right away, if you make a mistake.
  • Do not spend money for KAIZEN, use your wisdom.
  • Wisdom is brought out when faced with hardship.
  • Ask 'WHY?" five times and seek root causes.
  • Seek the wisdom of ten people rather than the
    knowledge of one.
  • KAIZEN ideas are infinite.

Source www.kaizen-institute.com
21
Pareto Diagrams
Total Number of Problems
Class A factors are the 20 of recurring causes
resulting in 80 of all quality symptoms - these
are critical and must be reduced.
22
Total Productive Maintenance
  • Prevention rather than cure
  • Seri - Sorting
  • Seiton - Orderliness
  • Seiso - Cleaning
  • Seiketsu - Cleanliness

23
Taguchi Methods
  • Approach pulls quality back to the design stage.
  • Recognizes quality as societal issue as well as
    an organizational one.
  • Strong on process control

24
Prophets of QualityJuran, Crosby, and Deming
  • All agree - it is management's responsibility to
    establish a culture where commitment to quality
    is the main focus
  • Mission of the organization must be clear to
    everyone,
  • Every management action must lead to fulfillment
    of that mission.
  • Requires commitment from the top of the
    organization.
  • Effective communication, cooperation, and
    teamwork throughout the organization are
    essential

25
Juran, Crosby and DemingAll agree
  • Customer-focused quality is a long-term process
    that will not produce results overnight.
  • Long term improvements include reduced costs and
    ability to anticipate and avoid problems
  • Dont view quality as improvement in final
    products
  • Dont believe inspection/QC processes productive
    or cost effective means of managing quality

26
Joseph Juran
  • It is most important that top management be
    Quality-Minded. In the absences of sincere
    manifestation of interest at the top, little will
    happen below. 1945

27
Joseph Juran
  • Bell Engineer 1924, began working with Shewart
    and Deming on SPC
  • Author of Western Electric Statistical Quality
    Control Handbook and the Juran Quality Control
    Handbook
  • Strategic and Structured Quality Approach
  • Principal of the Vital Few and Trivial Many
  • Developed a course, MANAGING FOR QUALITY in
    1940s and taught it for approximately 30 years
    to over 100,000 people in over 40 countries
  • Emphasized the role of management in quality.
  • By 1960s began teaching US the new quality ideas
    coming out of Japan

28
Joseph Juran
  • Main Concepts
  • Top Management Involvement
  • Pareto Principle
  • Need for widespread training in Quality
  • Definition of Quality as Fitness for Use
  • Project by project approach to Quality
    Improvement
  • SPC and Process Analysis
  • Cultural patterns root of resistance to change
  • Great need to communicate

29
Joseph Juran
  • Proposes a strategic and structured (i.e.,
    project- by-project) approach to achieving
    quality. His concepts include
  • the Spiral of Progress in Quality,
  • the Breakthrough Sequence,
  • the Project-by-Project Approach,
  • the Juran Trilogy, and
  • the principle of the Vital Few and Trivial Many

30
Juran Project by project approach
  • Two types of teams to analyze projects the
    steering arm and the diagnostic arm
  • Projects and teams selected by management
  • Members required to develop skills in team
    leadership, team participation and problem
    solving tools.
  • All employees need to participate in the
    improvement process

31
Jurans Journey
  • Process of analyzing problems is a journey from
    symptom to cause
  • Emphasizes root cause removal
  • Symptom is indication that there is a problem
  • Once the cause is discovered, the team comes up
    with the solution

32
Jurans Trilogy
  • Systematic approach to carrying out Juran s
    methodology for managing for quality.
  • Active leadership, starting at the top, is
    essential
  • Consists of three interrelated quality-oriented
    processes
  • quality planning,
  • quality control, and
  • quality improvement

33
Juran Trilogy Relevant Activites
  • Identifying customers,
  • Establishing measurements, and
  • Diagnosing causes.
  • Juran compares the activities of the trilogy with
    those of financial operations. Money is the
    language of management and, in his terms, quality
    planning is analogous to budgeting, quality
    control to cost control, and quality improvement
    to cost reduction.

34
Philip Crosby
  • Quality cant be delegated. The who and why
    must be understood by top management before the
    what and how can be launched.
  • Quality is Free and Zero Defects

35
Phillip Crosby
  • Noted Quality Consultant, Lecturer and Author of
    many books translated into over 10 languages
  • Author of QUALITY IS FREE, 1979 Best Seller
  • Recognized Business Philosopher, Innovator and
    Quality Guru
  • Philip Crosby Associates is worlds largest
    management consultant and teaching firm
  • Promoted the concept of Zero Defects originally
    at Martin Marietta where he worked 1960s
  • Quality attitude, commitment to quality
    performance, zero defects first time every time
  • Defined Quality as CONFORMANCE TO REQUIREMENTS
  • Prevention rather than detection and correction

36
Phillip Crosby
  • Main Concepts
  • Management must understand the issues and take
    responsibility to improve
  • Management must remove barriers to quality
  • Must understand organization and process
    capabilities
  • Management must continually measure quality by
    measuring the cost of doing things wrong
  • Quality Pays and Pays Handsomely, Quality does
    NOT cost more per conventional wisdom
  • Cost of Quality Analysis (COQ Price of
    Non-Conformance Price of Conformance)

37
Phillip Crosby
  • Four Absolutes of Quality
  • Quality is Conformance to Requirements
  • Eliminate Errors before the Occur
  • Do it right the first time
  • The Measurement of Quality is the Price of
    Non-Conformance
  • Six Cs of Quality Comprehension of Q,
    Commitment to Q, Competence via education and
    training, Communication, Correction (prevention
    and performance) and Continuance
  • Quality Vaccine Education, Determination and
    Implementation

38
Phillip Crosby
  • Stressed the way to manage quality is by
    prevention, not detection and testing.
  • Addresses the need to change perceptions and
    attitudes about quality.
  • Avoid the common attitude that error is
    inevitable it is a normal part of business life,
    and one needs to cope with it.
  • Ultimate goal of quality improvement is Zero
    Defects or defect-free" products and services.
  • Zero Defects is an attitude and commitment to
    prevention.
  • Zero Defects does not mean that the product has
    to be perfect.

39
Phillip Crosby
  • The system of quality is prevention
  • Training, discipline, example, and leadership
    produce prevention
  • Inspection and correction does not prevent
    errors.
  • Prevention involves thinking, planning, and
    analyzing processes to anticipate where errors
    could occur, and then taking action to keep them
    from occurring.
  • Problems usually arise because product or service
    requirements are either lacking or in error.

40
Phillip Crosby
  • Prevention begins by
  • Establishing product or service requirement,
  • Developing the product or service,
  • Gathering data, comparing the data to the
    requirement, and
  • Taking action on the result.
  • This is a continuous activity.

41
  • Which Quality Guru was a key player, a mastermind
    in Total Quality Management programs?
  • Why, Dr. W. Edwards Deming, of course!

42
W. Edwards Deming
  • everything is the fault (or credit)
  • of top management.

43
W. Edwards Deming
  • High Prophet of Quality Control and TQM
  • Advisor, consultant, author, teacher to most
    influential business leaders and organizations in
    the world.
  • PhD. Physicist in 1928, worked with Shewart and
    Juran on SPC
  • Founder of the THIRD WAVE OF INDUSTRIAL
    REVOLUTION
  • 1938 applied SPC concepts to U.S. Bureau of
    Cencus for sampling techniques
  • 1942 Served as consultant to the Secretary of War
    on using SPC to strengthen the war effort

44
W. Edwards Deming
  • Assisted in the re-vitalization of post WWII
    Japan by applying SPC and QC techniques to
    agricultural and manufacturing issues
  • Japanese Union of Scientists and Engineers
    contracted Deming to teach statistical methods to
    Japanese industry, naming their national quality
    award The Deming Award after him
  • Pursued similar mission in USA
  • Gained and almost Cult Status for his
    philosophies
  • 1980 NBC Special, IF JAPAN CAN WHY CANT WE
    launched US Quality Movement
  • Life long demand as Lecturer and Consultant

45
W. Edwards Deming
  • Takes a systems and leadership approach to
    quality. Concepts associated with his approach
    include
  • 14 Points
  • 7 Deadly Diseases
  • Theory of Systems
  • Theory of Knowledge
  • Theory of Variation
  • Plan-do-check-act
  • Quality improvement by process improvement

46
W. Edwards Deming
  • Deming chain reaction
  • improve quality,
  • costs decrease and
  • productivity improves.
  • Creates a greater potential for increased market
    share.

47
Deming 7 Deadly Diseases7 Reasons TQM Fails
  • Lack of a clear shared model of quality that
    the entire organization embraces.
  • Lack of shared values and vision for the
    organization
  • Focusing on COMPLIANCE (to standards, procedures,
    goals), rather than COMMITMENT as the driving
    force of the program
  • Departmental barriers, walls or concrete silos
    that are tough to break
  • A non-systematic approach to TQM implementation
    taking it willy nilly instead of following some
    plan.
  • Senior managers who cannot or will not drive the
    transformational process.
  • Having an organizational culture that does not
    collectively learn and follow the process needed.

48
W. Edwards Deming
  • His philosophy treats individuals as fellow
    members of a system.
  • His system leads to a GOOD chain reaction,
    involving.
  • Improve quality ? decrease costs ? productivity
    improves ? capture the market with better
    quality/price ?stay in business ? provide
    employment

49
W. Edwards Deming
  • Some of Deming's economic beliefs gained from his
    philosophies and applications
  • Reduction of the economic burden
  • Expansion of the markets
  • Survival of organizations that serve customers

50
THE DEMING METHOD MANAGEMENT METHOD
  • The Quality Method, defined by Dr. Deming, is a
    MANAGEMENT method. It requires change in our
    managers. It is NOT a method that is built upon
    inciting or demanding quality from workers as we
    incited and demanded QUANTITY of production.
    Putting up posters that tell workers to produce
    quality, or creating clever slogans that exhort
    workers to produce quality is not part of a
    Deming Quality process and only illustrate how
    little we have learned about the Method.
  • QUANTITY ? QUALITY

51
Deming - Quality is the job of management.
  • It is a management process.
  • It assumes that the worker is a craftsman and
    that he will produce quality, if he/she is only
    given a chance (and the proper resources). The
    Deming method further assumes that well trained
    workers will produce quality products, if
    managers do their jobs correctly and provide the
    proper resources, organizational structure, and
    environment.

52
W. Edwards Deming
  • Dr. Deming was very confident about how to
    motivate employees simply allow them to build
    quality products (or perform top quality
    services, in todays economy). Dr.

53
W. Edwards Deming
  • Deming was also very confident about how NOT to
    motivate employees.eliminate
  • Quota systems
  • Annual performance reviews
  • Any form of pay for performance systems
  • These are a waste of the companys money and a
    managers time money and time that would be
    much better spent on solving production or
    process problems, that will allow the workers to
    produce better quality.

54
Demings Quality Approach UNDERLYING PRINCIPLES
  • Variation
  • Theory of Knowledge
  • Theory of a System
  • Psychology

55
Deming Theory of Variation
  • This is his basis for SPC and treatment of people
  • Two causes of variation common and special
    causes
  • Two costly errors
  • Treating common causes as special
  • Treating special causes as common

56
Deming Theory of KnowledgeHow do we know things?
  • Statistics needed and properly used for
    MEASUREABLES (characteristics, things, service
    quality)
  • Having Theories and Predictions are crucial to
    understanding the knowledge
  • The things that are most important ARE NOT
    MEASUREABLE
  • How do you measure.
  • An employees happiness
  • The true cost of poor quality
  • Lack of customer goodwill
  • Lack of supplier goodwill
  • Poor communication in the organization

57
Deming Theory of Systems
  • This applies to a COMPLETE system - suppliers to
    customersYOU or YOUR ORGANIZATION
  • Suppliers ? You/Your Organization ? Customers
  • Common Causes of Variation are built into the
    system naturally
  • Management maintains SOLE responsibility for the
    system. Leadership is Required. The system will
    only be as good as it is led to be.
  • Special causes are outside the system, and are
    everyones responsibility.
  • Internal competition is destructive.

58
Deming Quality Phsychology
  • Employees CANNOT be evaluated apart from the
    system.
  • Employees ARE the system they will only be a
    good as the system (and leadership) allows.
  • Money is NOT a motivator.
  • Money only works a short-term stopgap. Give me
    more money and I will like better what I do
    NOT!
  • All money as a short-term solution does is give
    me a fatter paycheck with which to enjoy my
    misery!
  • EVERYONE in the organization is responsible for
    improvement. Overall improvement cannot be
    handled by one person or one department
    everyone is important.
  • People are most productive in cooperative teams.
  • We are all experts and idiots just in
    different things.
  • All of us are smarter than one of us.

59
System of Profound Knowledege
  • Dr. Deming based his business philosophy on
    cooperation - to determine its own potential, an
    organization must harness the power of every
    worker in its employment.
  • In order to promote cooperation, Deming discusses
    his System of Profound Knowledge. Profound
    knowledge involves expanded views and an
    understanding of the individual yet truly
    interdependent element that compose the larger
    system every worker have nearly unlimited
    potential if placed in an environment that
    supports, educates, and nurtures senses of pride
    and responsibility.

60
Deming tells us
  • the majority of a workers effectiveness is
    determined by the workers environment, and only
    minimally by his own attitudes, work ethics,
    behaviors.

61
To effectively implement a System of Profound
Knowledge
  • Management must --
  • Employ an understanding of psychology of groups
    and of individuals
  • Eliminate tools such as production quotas and
    slogans these only alienate workers and
    supervisors no gap bridging here and breeds
    intense competition between the workers
    themselves I can do better than you.
  • Form the company correctly Make the
    organization into a large team divided into
    sub-teams all working on different levels of the
    same goal barriers between departments often
    give rise to conflicting objectives and
    unnecessary competition.
  • Share the wealth spread the profits among the
    teams
  • Eliminate fear, anger, envy, and revenge from the
    workplace.
  • Employ sensible methods such as rigorous
    on-the-job-training programs.

62
Implemented Profound Knowledge
  • In this effectively implemented system
    organization, the workers better understand their
    jobs the specific task, the technological
    relationships, they value themselves higher
    thus they are stimulated and empowered and show
    overall better performance.

63
Deming tells us
  • Upwards of 94 of all problems in organization
    and their solutions stem from the SYSTEM and
    the PEOPLE. Concentrate on understanding the
    system and how you might adjust to make the
    organization operate more productively and
    positively.

64
Demings Old Fashioned Ideas
  • The ideas of Dr. Deming may seem common or
    obvious now, but have not always been practiced
    in our culture of work. Dr. Demings ideas and
    personal examples of hard work, sincerity, and
    personal responsibility have forever changed the
    world of management.
  • It is not enough to just work hard.
  • You must know what to work on.
  • If you are not having fun, then you are doing
    something wrong.

65
4 Pillars of Profound Knowledge
  • Appreciation for a system Organizations are
    interactive systems, and must be managed as
    systems. Managements role is to strive toward
    organization of the enterprise as a whole.
  • Theory of variation Variation is always present.
    The key is not in measuring it, but in
    understanding what is causing it not to judge or
    blame individuals, but to improve the system.
  • Theory of knowledge Managements job is
    prediction. Prediction is based on knowledge.
    Knowledge is built on theory. Experience without
    theory teaches nothing.
  • Some Psychology Knowledge of individual and
    group psychology is needed to nurture and
    preserve innate desires of people to learn, to
    create, to contribute, and to take pride in work.

66
Demings 14 Points
  • Create constancy of purpose for improvement of
    products and service
  • Adopt a new philosophy we are in a new economic
    age
  • Cease dependence upon inspection as a way to
    achieve quality
  • End the practice of awarding business based on
    price tag
  • Constantly improve planning, production and
    service process, INCLUDING PEOPLE!
  • Institute training on the job
  • Institute improved leadership

67
Demings 14 Points
  • Drive out fear
  • Break down departmental barriers
  • Eliminate slogans/targets asking for increased
    productivity without providing methods
  • Eliminate numerical quotas
  • Remove barriers that stand in the way of workers
    and their pride of workmanship - both hourly and
    salaried.
  • Institute programs for education and re-training
  • Put all the emphasis to work to accomplish the
    transformation

68
Create constancy of purpose for improvement of
products and service
  • Management is charged with re-defining continual
    improvement, in a way that best fits the
    organizations goals and purposes. The
    organization has to strive to survive, compete
    globally and constantly replenish its resources
    for growth and improvement. How? Through
    improvement and research.

69
Adopt a new philosophy we are in a new economic
age
  • Consider what is best for the organization as a
    whole. We can no longer assume that our customers
    will be loyal to us because they like us. If the
    organization cannot be profitable, in dollars,
    quality, and proper treatment of people then
    whats the point?

70
Cease dependence upon inspection as a way to
achieve quality
  • Quality cannot be inspected into a product or
    process. Erase the philosophy of the inspector
    (or QC department) will catch any problems before
    the product is shipped. Lets keep going.
    Instead, adopt the philosophy of develop a
    system with sound processes that can make quality
    products. Do it right the first time, and the
    system will improve itself.

71
End the practice of awarding business based on
price tag
  • Does your organization award business to
    suppliers and other vendors, solely on the price
    tag? Point four specifically warns against this!
    Why? By awarding business strictly on price, the
    organization often (but not always) gets lower
    quality. If, however, an organization established
    loyalty agreements or good working relationships
    with suppliers/vendor, perhaps even long term
    contracts, higher quality is obtained, as often
    is better pricing.

72
Constantly improve planning, production and
service process, INCLUDING PEOPLE!
  • Dr. Deming states here that only a commitment to
    a PROCESS of continual improvement will not alone
    bring results. We cannot ignite and spread a
    quality revolution that will lead to constant
    continual improvement by just having a process
    and commitment.
  • Instead, we need an evolutionary philosophy
    that prevents stagnation of the company. Part of
    the evolutionary mentality is to abandon
    practices that are obviously only short-term
    benefits, as these ultimately detract from
    overall organizational effectiveness.

73
Institute on-the-job Training
  • NEVER assume that the newly hired person, or
    transferred individual from another division,
    will know everything they need to do. Even the
    most experienced, talented, and qualified worker
    needs to adapt and learn the systems and
    processes of a new organization/new department.

74
Institute Improved Leadership
  • Just having a leader, supervisor, or
    manager title does not make you a good leader
    or even a leader at all. Very few managers have
    been formally trained to manage, or to be a
    leader. Many leaders are not even familiar with
    Deming principles at all.
  • Management is not self-evident it requires
    skill, ability, practice, and training. Unless
    managers are trained to manage and to be leaders
    in the Deming world, we will continue to hurt
    ourselves with gross miscalculations like
    re-engineering and downsizing.

75
Drive out Fear
  • Many employees are afraid to ask questions, or
    to take a position, even when they do not
    understand what the job is or what is right or
    wrong. People will continue to do things the
    wrong way, or not to do them at all. The economic
    loss from fear is appalling. It is necessary to
    better quality and productivity that people feel
    secure, Dr Deming once wrote. He wrote this
    long before the age of re-engineering and
    downsizing two key reasons why fear exists in
    the work place. Bert Petersen, human resources
    consultant specializing in employee relations
    implication of the Deming Quality Principles, is
    of the opinion that FEAR is likely the largest
    source of waste in the American enterprise.

76
Break Down Departmental Barriers
  • All employees and departments are part of the
    organization, but it is often an us versus them
    scenario. The organization as a whole needs to
    understand that each individual and entity are
    part of the whole picture.
  • Management is responsible for making this happen.
    Only management can help workers understand this.
    How? By example showing how all
    departments/divisions work as one entity dont
    pit the groups against each other.

77
Eliminate slogans/targets asking for increased
productivity without providing methods
  • Dont rely on posters displayed throughout the
    organization as the only vehicle for increased
    productivity/quality. We do not need elementary
    school level posters to encourage employees to do
    good work.
  • In some organizational cultures, use of these
    posters is actually embarrassing to management
    and employees. Let the employees work with
    managers to develop their own slogans or targets
    this is the core group that does the work.

78
Eliminate Numerical Quotas
  • Quotas take into account only numbers, not
    quality or method. They are usually a guarantee
    of inefficiency and high cost. A person to hold a
    job, meets a quota at an cost, without regard to
    damage to the company, Dr. Deming wrote.
  • Workers make quotas at the expense of quality.
    Managers accept lack of quality, because it is
    the price of the quota system. Quotas make a
    quality system impossible to implement.

79
Remove barriers that stand in the way of workers
and their pride of workmanship - both hourly and
salaried.
  • People, in general, are eager to do a good job.
    The truly good and caring workers get distressed
    when cannot perform their functions to the best
    of their ability. Too often, misguided
    supervisors, faulty or non-existent equipment,
    and defective materials stand in the way.

80
Institute programs for education and re-training
  • The results of this training must drive home a
    philosophy throughout the organization that
    production problems are PROCESS problems, not
    PEOPLE problems.
  • Think about a situation you were in what fixed
    the problems more quickly? Your boss screaming at
    you to make it happen, or management (or you)
    studying the process to find the deficiencies?

81
Put all the emphasis to work to accomplish the
transformation
  • Everyone in the organization needs to work
    together to accomplish the goal/mission/vision as
    well as the Total Quality Management movement.

82
Plan-Do-Check-Act
Plan
Act
Do
Check
83
Plan-Do-Check-Act
  • Decide what you want to do write a plan
  • Carry out the tasks at hand on your plan
  • Do the plan and the action taken match? Check
    your work!
  • Take action on the differences, improvements, and
    modifications.

84
7 Deadly Diseases
  • Lack of constancy of purpose to plan a marketable
    product to keep the company in business and
    provide jobs.
  • Emphasis on short term profits
  • Personal evaluation appraisal, by whatever name,
    for people in management, for effects, which are
    devastating.
  • Mobility of management job hopping.
  • Use of visible figures for management, with
    little or no consideration of figures that are
    unknown
  • Excessive medical costs
  • Excessive warranty costs, fueled by lawyers
    working on contingency fees.

85
Lack of constancy of purpose to plan a marketable
product to keep the company in business and
provide jobs.
  • Changing plans/missions/visions/focus frequently
    without a solid business reason only confuses
    employees, customers, and suppliers.
  • Can the product be marketed/sold, i.e., will
    people want it? Is the product offered at a fair
    price? Does the product need modified/re-invented,
    to please the market?
  • Can the company remain in business AND be
    profitable, with the current products/product
    plan/systems in place?

86
Emphasis on short term profits
  • Short-term profits only get the organization
    through the immediate time period (usually less
    than 1 year). Focusing on longer-term profit
    allows for expansion, growth, and continual
    business.

87
Personal evaluation appraisal, by whatever name,
for people in management, for effects, which are
devastating.
  • Dr Deming called performance appraisals worse
    than a waste of time. Deming recommends this
    alternative
  • MANAGE ON A DAILY BASIS
  • Talk to employees about strengths and weaknesses
    every day, instead of once a year. Plan and
    discuss training needs as part of the daily
    routine
  • Make it a point to ask questions then cover your
    mouth and open your ears

88
Personal evaluation.
  • Pose challenges and problems to those under your
    management, and let THEM come up with responses.
    Prepare to be amazed at the input you receive.
  • See who has mistakes (regularly) and find out
    why. Is training the answer? Do they need the
    proper tools? Do they need encouragement or a pat
    on the back?
  • See who is habitually late or absent this can
    be a warning that there may be a work problem.
    Perhaps you can determine what the problem is and
    help the employee solve it.
  • Managers get more response when the HELP rather
    than HINDER.

89
Personal evaluation.
  • Management is not a zero sum game. Dr. Deming
    says that less than 5 of employees are just not
    right for the job. The 95 need some assistance
    or guidance. Dr. Deming also says that any
    failure of an employee is a failure for the
    manager view it that way, and dont let the
    performance appraisal process influence your
    decisionspay for performance does nothing.

90
Mobility of Job Hopping Managers
  • Management styles change each time management
    personnel change- thus losing stability in the
    organizations operations, theories, principles,
    and processes in place.
  • When upper management personnel leave
    (voluntarily), workers start to worry that the
    worst is yet to come.

91
Use of visible figures for management, with
little or no consideration of figuresthat are
unknown
  • The tangible costs of doing business (labor,
    materials, equipment) are just as important as
    the intangible costs (customer goodwill, employee
    loyalty, supplier relationships).
  • Focusing only on the numbers the visible
    measurements is not the answer.
  • Accounting and statistics alone do not make the
    organization a success.

92
Excessive Medical Costs
  • Has the employees medical costs increased
    dramatically (not due to inflation or increased
    premium costs BUT due instead to more health
    care usage)? What are the reasons the health care
    usage increased? Age? Prevention care?
  • Many organizations have such a high stress level
    that the employees health is affected. Could
    this be the reason for the increased costs?

93
Excessive warranty costs, fueled by lawyers
working on contingency fees.
  • Examine why warranty costs are high (or higher
    than normal). Is product quality to blame? Are
    these true complaints e.g., there really is a
    traceable problem to the product or processes?
    Or, are your customers just not happy overall?
  • If the problem is product quality related, are
    there safety/health/environmental issues
    associated with it? Are lawyers driving the
    process is the legal profession advertising
    that your product/service could cause the user
    detriment/harm?
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