W.

EDWARDS
DEMING
1900 - 1993

 Father

of quality control

Stressed

managements responsibility for quality

Developed

14 points to guide companies in

quality improvement
Japanese
15%

established Deming Prize in his name

of quality problems are actually due to worker

error
85%

of quality problems are caused by systems and

errors

Dr. W. Edwards Deming is known as the father

of the Japanese post-war industrial revival and
was regarded by many as the leading quality
guru in the United States.
Trained as a statistician, his expertise was used
during World War II to assist the United States
in its effort to improve the quality of war
materials.

HE WAS INVITED TO JAPAN AT THE END OF WORLD

WAR II BY JAPANESE INDUSTRIAL LEADERS AND
ENGINEERS. THEY ASKED DR. DEMING HOW LONG IT
WOULD TAKE TO SHIFT THE PERCEPTION OF THE
WORLD FROM THE EXISTING PARADIGM THAT JAPAN
PRODUCED CHEAP, SHODDY IMITATIONS TO ONE OF
PRODUCING INNOVATIVE QUALITY PRODUCTS.

Dr. Deming told the group that if they would follow his
directions, they could achieve the desired outcome in five
years. Few of the leaders believed him. But they were
ashamed to say so and would be embarrassed if they failed
to follow his suggestions. As Dr. Deming told it, "They
surprised me and did it in four years."

He was invited back to Japan time after time where

he became a revered counselor. For his efforts he was
awarded the Second Order of the Sacred Treasure by
the Emperor .

Japanese scientists and engineers named the famed

Deming

Prize

after

him.

It

is

bestowed

on

organizations that apply and achieve stringent

quality-performance criteria.

DEMING PRIZE
Established in December 1950 in honor of W. Edwards
Deming, was originally designed to reward Japanese
companies for major advances in quality improvement.
Over the years it has grown, and is now also available
to non-Japanese companies, albeit usually operating in
Japan, and also to individuals recognized as having
made major contributions to the advancement of
quality. The awards ceremony is broadcast every year
in Japan on national television.
Tata
Steel 2008 & Mahindra & Mahindra
tractors(2003)

DEMING'S 14 PRINCIPLES

PRINCIPLE 1 : "Create a constancy of purpose"

Define the problems of today and the future
allocate resources for long-term planning
allocate resources for research and education
constantly improve design of product and service

PRINCIPLE 2 : "Adopt the new philosophy"

Quality costs less not more
The call for major change
Stop looking at your competition and look at your
customer instead

PRINCIPLE 3 : "Cease dependence on inspection"

Quality does not come from inspection

Mass inspection is unreliable, costly, and ineffective
Inspectors fail to agree with each other
Inspection should be used to collect data for process control

PRINCIPLE 4 : "Do not award business based on price

tag alone"
Price alone has no meaning
Change focus from lowest initial cost to lowest total cost
Work toward a single source and long term relationship
Establish a mutual confidence and aid between
purchaser and vendor
PRINCIPLE 5 : Improve every process
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. Institute innovation and
constant improvement of product, service, and process.
It is management's job to work continually on the system
(design, incoming materials, maintenance, improvement
of machines, supervision, training, retraining).

6. Institute training on the job

Institute modern methods of training on the job for all,
including management, to make better use of every
employee. New skills are required to keep up with
changes in materials, methods, product and service
design, machinery, techniques, and service.
7.Institute leadership
Adopt and institute leadership aimed at helping people
do a better job. The responsibility of managers and
supervisors must be changed from sheer numbers to
quality. Improvement of quality will automatically
improve productivity. Management must ensure that
immediate action is taken on reports of inherited
defects, maintenance requirements, poor toolsand all
conditions detrimental to quality.

8. Drive out fear

Encourage effective two way communication and
other means to drive out fear throughout the
organization so that everybody may work
effectively and more productively for the company
9. Break down barriers
Break down barriers between departments and
staff areas. People in different areas, such as
Leasing, Maintenance, Administration, must
work in teams to tackle problems that may be
encountered with products or service.

10. Eliminate exhortations

Eliminate the use of slogans, posters, exhortations for the

work force, demanding Zero Defects and new levels of
productivity, without providing methods.

11.Eliminate

arbitrary

numerical

targets

Eliminate work standards that prescribe quotas for the work

force and numerical goals for people in management.
Substitute aids and helpful leadership in order to achieve
continual improvement of quality and productivity .

12. Permit pride of workmanship

13.Encourageeducation

Institute a vigorous program of education, and encourage self

improvement for everyone. What an organization needs is not
just good people; it needs people that are improving with
education.

14. Top management commitment and

action
Clearly define top management's permanent
commitment to ever improving quality and productivity,
and their obligation to implement all of these principles.
Indeed, it is not enough that top management commit
themselves for life to quality and productivity. They must
know what it is that they are committed tothat is,
what they must do. Create a structure in top
management that will push every day on the preceding
13 Points, and take action in order to accomplish the
transformation. Support is not enough: action is required

KAORU
ISHIKA
WA

His notion of company-wide quality control called for

continued customer service. This meant that a
customer would continue receiving service even after
receiving the product.
This service would extend across the company in all
levels of management.
quality improvement is a continuous process, and it
can always be taken one step further.
With his cause and effect diagram (also called the
"Ishikawa" or "fishbone" diagram) this management
leader made significant and specific advancements in
quality improvement.

CAUSE AND EFFECT DIAGRAM

ALSO CALLED FISH BONE DIAGRAM

Measurement
Faulty testing equipment
Incorrect specifications
Improper methods

Inaccurate
temperature
control

Dust and
Dirt

Environment

Man

Machines
Out of order

Poor supervision
Lack of concentration

Tooling problems
Old / worn

Inadequate training

Defective from vendor

Not to specifications
Materialhandling problems

Materials

Poor process
design
Ineffective quality
management
Deficiencies
in product
design

Method

Quality
Problem

With the use of this new diagram, the user can see all
possible causes of a result, and hopefully find the root of
process imperfections.
Both Ishikawa and Deming use this diagram as one the
first tools in the quality management process.
Ishikawa explored the concept of quality circles-- a
Japanese philosophy which he drew from obscurity into
world wide acceptance.
He continually urged top level executives to take quality
control courses, knowing that without the support of the
management, these programs would ultimately fail.

Philip
B.
Crosby

Phillip B. Crosby, a corporate vice-president and director of

quality for 14 years, gained a lot of attention when he
published his book Quality is Free in 1979.
The conventional wisdom at that time was that each level of
quality has some price.
For example, reducing the level of defect from 8 percent to 3
percent would cost a lot. The basis of this believe was the
notion that improvements in quality require the purchase of
improved machines, better materials, or more skilled labour.
Crosby pointed out that poor quality has hidden costs:
increased labour and machine hours, increased machines
failures , customer dissatisfaction, delivery delays, lost future
sales, and even increased warranty costs.
Crosby believes that these costs typically dwarf the costs of
machines, materials, and training needed to foster high
quality.
The savings created by reduction of hidden costs can offset the
costs incurred to create the proper environment.

THE FOURTEEN STEPS TO QUALITY

IMPROVEMENT

1) Make it clear that management is committed to

quality.
2) Form Quality Improvement Teams with senior
representatives from each department.
3) Analysis processes to determine where current and
potential quality problems lie.
4) Evaluate the cost of quality and explain its use as a
management tool.
5) Raise the quality awareness and personal concern of all
employees.
6) Take actions to correct problems identified through
previous steps.

7) Establish progress monitoring for the improvement process.

8 ) Train supervisors to actively carry out their part of the quality
improvement programme.
9) Hold a Zero Defects Day to reaffirm management commitment.
10) Encourage individuals to establish improvement goals for
themselves and for their group.
11) Encourage employees to tell management about obstacles to
improving quality.
12) Recognize and appreciate those who participate.
13) Establish Quality Councils to communicate on a regular basis.
14) Do it all over again to emphasize that the quality improvement
process never ends.