Welcome to our

Presentation

We are Challenge
Accpeted

Our Presentation is on
Demings Contribution
on
Total Quality
Management.

Total Quality Management

Total quality management can be

summarized as a management system
for a customer-focused organization
that involves all employees in
continual improvement using strategy,
data, and effective communications to
integrate the quality discipline into the
culture and activities of the
organization.

Background of Deming

 Dr. W. Edwards Deming

American Statistician, Professor, Author, Lecturer,
and Consultant.
Born on October 14, 1900 in Sioux City Iowa.
BS in electrical engineering from the University of
Wyoming 1921.
MS in Mathematics & Mathematical Physics from
the University of Colorado 1925

 PHD in in Mathematics & Mathematical Physics

from Yale 1928.
Mathematical physicist at the United States
Department of Agriculture (192739).
Statistical Advisor US Census Bureau 1935-1945.
Professor of Statistics at NY University 1946-1993.
As a census consultant under general Douglas
MacArthur, he taught statistical control methods
to Japanese business leaders.
In 1947, he taught Japanese engineers and
managers statistical process controls.

 Credited with enabling Japan to become a world

business power by the 1980s due to image of
quality.
From 1979 to 1982 he worked for Ford Motor Co.
credited for making Ford the most profitable US
Auto manufacturer by 1986.

Demings Contribution in
U.S.

Deming in U.S Census

Bureau
Introducing the quality control to mass production

Developed management theory while working in Japan as

an economic consultant
His ideas took hold in the U.S & many major corporation
began to incorporate quality control into their business
After completion of his PhD in 1928, he began working for
the federal govt.
Worked as a chief mathematician & advisor in sampling &
survey techniques for U.S Census Bureau(1939-1945)
Introduced the process of SPC to monitor the mammoth
operation of key punching data from census
questionnaires onto million of punch card

Demings works during

WWII
A member of the five-man emergency technical committee during the WWII.

Developed a national program of 8 & 10 day courses to teach statistical quality control
techniques over 10,000 engineers at company that were suppliers to the military.

After WWII, the U.S war dept. created a team of management scientists to help to rebuild
Japans industrial capacity; Deming was one of the team members.

Institute of Deming

Founded
in
1993
Washington D.C

in

Aim
is
to
foster
understanding the Deming
system
of
profound
knowledge
to
advance
commerce, prosperity &
peace

Deming & US industries

Dr. Demings teaching made a quality revolution
on US managers
Demand for his service increased by if japan
can....why cant we?
Ford motor company was the 1st US company to
seek his help.
Later it became the most profitable
Vernay laboratories, graduate school of Columbia
& marshall industries had worked with him

Achievements in USA
His ideas of hard work, sincerity, decency &
personal responsibility has changed the US
management dramatically.
The
Shewhart
Medal

1956
National
Medal of
Technolog
y

1987

Automotiv
e Hall of
Fame

Awar
ds &
hon
ors
199
1

Publications in US

1st book was published by

the MIT center for
advanced engineering
New Economics & Free
perfect & now
last book was The new
economics for industry,
government & education

Work in Japan

 Known as savior of Japanese industry for quality

control technique.
Helped JUSE to increase productivity and rebuild
Japans war shattered economy.
Trained hundreds of engineers, managers and
scholars in SPC and concept of quality.

 In the 1970s, Deming's philosophy was

summarized by some of his Japanese proponents
with the following 'a'-versus-'b' comparison:
this implies that

(a) When people and organizations focus

primarily on quality, defined by the following
ratio, quality tends to increase and costs fall over
time.
(b) However, when people and organizations
focus primarily oncosts, costs tend to rise and
quality declines over time.

 Improved quality along with lower cost

help Japanese to capture large portion of
world market share.
The Japanese established The Deming
Prize in 1951.

Deming Seven Deadly

Diseases

 Lack of constancy of purpose to plan product and

service that will have a market and keep the
company in business, and provide jobs.
Emphasis on short-term profits: short-term
thinking,fed by fear of unfriendly takeover, and
by push from bankers and owners for dividends.
Personal review systems, or evaluation of
performance, merit rating, annual review, or
annual appraisal, by whatever name, for people
in management, the effects of which are
devastating

 Mobility of management; job hopping.

Use of visible figures only for management, with
little or no consideration of figures that are
unknown or unknowable.
Excessive medical costs.
Excessive costs of liability.

Demings PDCA Wheel

PDCA model is a basic tool that helps to

continuously improve the processes in the
organization. Also it is used to solve the quality
problems as well as implement the new solutions
and ideas. The PDCA Cycle is a checklist of the four
steps which you must go through to get from
`finding and realizing the problem' to `solving the
problem '. It is also known as the Deming cycle or
wheel.

The Deming System of

Profound Knowledge

 TRANSFORMATION PROCESS:

"The

first step is transformation of the individual. This transformation is

discontinuous. It comes from understanding of the system of profound knowledge.
The individual, transformed, will perceive new meaning to his life, to events, to
numbers, to interactions between people.

"Once the individual understands the system of profound knowledge, he will apply its
principles in every kind of relationship with other people. He will have a basis for
judgment of his own decisions and for transformation of the organizations that he
belongs to.

The individual, once transformed, will:

Set an example;
Be a good listener, but will not compromise;
Continually teach other people; and
Help people to pull away from their current practices and beliefs and
move into the new philosophy without a feeling of guilt about the past."

Appreciation of
a system

Knowledge of
variation

Theory of
knowledge

Knowledge of
psychology

Deming explained:
"One need not be eminent in any part nor in all four
parts in order to understand it and to apply it.
"The various segments of the system of profound
knowledge proposed here cannot be separated. They
interact with each other. Thus, knowledge of psychology
is incomplete without knowledge of variation.
"A manager of people needs to understand that all
people are different. This is not ranking people. He
needs to understand that the performance of anyone is
governed largely by the system that he works in, the
responsibility of management."

The Appreciation of a system:

Involves understanding how interactions (i.e.,
feedback) between the elements of a system can
result in internal restrictions that force the system
to behave as a single organism that automatically
seeks a steady state. It is this steady state that
determines the output of the system rather than
the individual elements.
Thus it is the structure of the organization
rather than the employees, alone, which holds
the key to improving the quality of output.

The Knowledge of variation:

Involves understanding that everything measured
consists of both "normal" variation due to the flexibility
of the system and of "special causes" that create
defects.
Quality involves recognizing the difference to eliminate
"special causes" while controlling normal variation.
Deming taught that making changes in response to
"normal" variation would only make the system
perform worse. Understanding variation includes the
mathematical certainty that variation will normally
occur within six standard deviations of the mean.

Demings 14 Key Principles

Constancy of Purpose
Create constancy of purpose toward improvement of product and
service, with the aim to become competitive

Words from Deming

Doing your best is not good enough. You have to know

what to do. Then do your best.

Todays short-term measures have long term impacts.

So allocate resources to provide for long range needs

rather than short term profitability

Adopt the new philosophy

Adopt the new philosophy
Words from Deming

We are in a new economic age.

Western management must awaken
to the challenge, must learn their
responsibilities, and take on
leadership for change

Adopt the new philosophy

Why? Whats wrong with the old
philosophy?

In old philosophy
Quality and productivity have an inverse relationship.
New philosophy
Quality and productivity have an true relationship.

Focus on customer, not the

competition.

Cease the need for mass

inspection
Words from Deming
Cease dependence on inspection to achieve
quality. Eliminate the need for massive
inspection by building quality into the product in
the first place

Require statistical evidence of built in quality in both

manufacturing and purchasing functions

Replacing mass inspection with Never-Ending

improvement

Develop a plan that minimizes the total cost of

incoming materials and final product

End lowest tender contracts

End the practice of awarding business solely on the basis
of price tag. Instead require meaningful measures of
quality along with price.

Reduce the number of suppliers for the same item by

eliminating those that do not qualify with statistical
and other evidence of quality.

The aim is to minimize total cost, not merely initial cost,

by minimizing variation.

This may be achieved by moving toward a single

supplier for any one item, on a long term relationship
of loyalty and trust.

Why do this? The short answer is

Reduce variation

Improve every process

Words from Deming
"Improve constantly and forever every process for
planning, production and service. Search
continually for problems in order to improve
every activity in the company, to improve quality
and productivity and thus to constantly decrease
costs. It is management's job to work continually
on the system (design, incoming materials,
maintenance, improvements of machines,
training, supervision, retraining)."

Improve every process

Improve constantly and forever the system of
production and service, to improve quality and
productivity

Emphasis on conformance to standards can

obstruct continuous improvement.

The Deming Cycle is key to continuous improvement

1.
2.
3.
4.

PLAN
DO
CHECK
ACT

Institute Training on the Job

Institute worker training that focuses on
the prevention of quality problems and
the use of statistical quality control
techniques.

Teach employees how to perform

on the job
Keep them updated with the
changes in material, methods,
product design etc

Institute Leadership
Institute leadership among
supervisors to help employees
perform better.
Deming asks himself and then
answers:

Why lead?
People happier,
quality up,
productivity up,

Drive out fear

Drive out fear, so that everyone may work effectively for the
company.
Deming has given much importance
to this point since it affects nine other
points:

break down departmental barriers

cease dependence on mass inspection

institute education and training

institute training

eliminate slogans and exhortations

end awarding business on price-tag

eliminate work standards

continuous improvement

remove barriers

Break down barriers

Break down barriers
between departments.
People in research,
design, sales, and
production must work
as a team, in order to
foresee problems of
production and usage
that may be
encountered with the
product or service.

Eliminate exhortations
Eliminate slogans, exhortations, and
targets for the work force asking for zero
defects and new levels of productivity.
Such exhortations only
create adversarial
relationships, because the
bulk of the causes of low
quality and low productivity
belong to the system and
thus lie beyond the power
of the work force.

Eliminate exhortations
(cont.)

Deming himself says:

Posters that explain to everyone on the

job what the management is doing month
by month to (for example) purchase better
quality of incoming materials from fewer
suppliers, better maintenance, or to
provide better training, or statistical aids
and better supervision to improve quality
and productivity, not by working harder but
by working smarter, would be a totally
different story: they would boost morale.
People would then understand that the
management is taking some responsibility
for hang-ups and defects, and is trying to
remove obstacles

Eliminate arbitrary numerical

targets
Eliminate numerical quotas that employees
attempt to meet at any cost without regard to
quality.
Eliminate work standards
(quotas) on the factory floor.
Eliminate management by
objective.
Eliminate management by
numbers and numerical
goals.

Instead substitute
with leadership

Permit pride in workmanship

Enhance workers pride, artisanry and selfesteem by improving supervision and the
production process so that employees can
perform to their capabilities.
Deming expresses this in terms of an equation like

x +y + [xy] = 8
Where,
x = the individual component
y = the system contribution

What do you have without pride of

workmanship? Just a job, to get some
money. Theres not much joy in that

Encourage education
Institute a vigorous program of education
and self-improvement, from top
management to down, so that continuous
improvement is achieved.
Training for a skill is finite; it ends when
ability has reached a stable state. In
comparison, education is never-ending.

So, where do you draw the line?

Deming simply wouldnt draw the line.
Ford excludes basketball--- Deming would
not!!

Top management commitment to

action

Develop a commitment from the top

management to implement the top 13 points.

Put everybody in the company to work to accomplish the

transformation. The transformation is everybody's job.
Some final words from Deming:

Quality is made in the boardroom.

Limitations on quality are also made
in the boardroom.

Thank You