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QUALITY MANAGEMENT MOVEMENT
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Mar. 1, 1998
Quality (def.) = Conformance to requirements [the customer's] or
Standards
ISO Quality Definition = "Quality is fitness for purpose"
Two Quality Gurus
Deming
W. Edwards Deming - statistician who worked at Bell Labs after Second
World War and introduced the idea of Statistical Process Control
(SPC).
Deming's argument -- Quality problems lie in variability, which
is of two kinds:
- Special Variability caused by a particular staff person
or machine.
- Common Variability applies to the whole operation.
Common variability is direct responsiblity of management.
Deming introduced the use of SPC charts (Statistical Process
Control or simply control charts) to measure
variability and to identify its causes. This process involves taking
regular measurements at various stages of a process and then interpreting
the results to learn and correct the causes of variability.
Deming also developed the PDCA cycle:
The PDCA was novel when it was introduced as it placed responsibility on
management for quality.
Deming's ideas were first adopted by Japanese and credited with improving
Japanese products so much that they became a world leader. After that,
U.S. companies became interested but Deming's ideas less successful there.
Deming said it was because of the "seven deadly diseases" which stifled
American competitiveness and quality. These became incorporated into
Deming's 14 key points:
- Constancy of purpose directed to improving products and
services with aim of staying competitive, staying in business and creating
employment.
- Accepting new economic order -- that is, recognizing that we
are in a world economy and that leadership will emphasize change.
- Stop inspecting for quality. Rather, build quality into the
product or service from the outset.
- Stop competing on price alone. Rather, look at the total cost
and seek to minimize that. Develop long-term relationships with a limited
number of suppliers based on loyalty and trust.
- Constant improvement. Keep improving the system of production
and service delivery so that quality will be continuously improved and
costs reduced.
- On-the-Job Training
- Replace supervision with leadership -- Help and enable people
and equipment to do a better job.
- Drive out fear, so that everyone works effectively in a secure
environment for the good of the company.
- Break down interdpartmental barriers within an organization so
that everyone works as a team and tries to foresee and forestall problems
which may occur at any stage.
- Stop using slogans and exhortations directed at workforce. The
real problems lie with the system and are beyond the power of the
workforce to correct. Slogans and targets create adversarial
relationships which harm overall productivity.
- Eliminate management by objectives and by numerical goals.
Substitute leadership for work quotas.
- Remove barriers that prevent people from taking pride in their
workmanship.
- Education and training. Introduce a vigorous program of
education and training with emphasis on self-improvement.
- Get everyone involved in process of transforming the
organization into a quality company.
A number of books by Deming are available (most recent, 1986) but he
doesn't have a very readable style. A useful overview of his work is that
by Walton (Mary Walton. Deming Management at Work. Putnam, 1990).
Peters
Tom Peters is another list-maker. Some of his most famous books are In
Search of Excellence, 1982 and A Passion for Escellence, 1985.
Peters' eight principles -- many of which you will recognize are as
follows:
- "A Bias for action" -- Avoid lengthy discussion and debate,
instead DO something.
- Stay close to customers. Find out what customer wants and
likes and concentrate on providing that.
- Create smaller units. Encourage the formation of smaller
groups or companies and give them autonomy to pursue their own
inventiveness.
- Productivity comes through people. Everyone in organization
needs to be aware that company's success depends on them and that they can
share in the company's success.
- "Hands on, value driven". Senior executives must stay close to
company's essential business and not get out of touch with what is going
on the 'shopfloor' or with feelings and reactions of customers.
- "Stick to the knitting". Companies should concentrate on their
core business, doing what they are good at, rather than diversifying to a
range of activities which bear little relationship to the core. Identify
what business you are in and stick to it.
- Keep staff structures simple and lean. Do away with complex
hierarchies in favor of flatter structures with few layers. Keep number
of executives to a minimum.
- Simultaneously promote looseness and tightness. There needs to
be tolerance for staff yet dedication to the core values of the
company.