Aclan, Minna Minerva De Juras, Jose Mari Delos Santos, Kenneth Allen Dolojan, Mary Anne S.

Whos Deming?

American Statistician, Professor, Author, Lecturer, and Consultant. As a census consultant under general Douglas MacArthur taught statistical control methods to Japanese business leaders taught Japanese engineers and managers statistical process controls the message: improving quality will reduce expenses while increasing productivity and market share.

Deming Philosophy

by adopting appropriate principles of management, organizations can increase quality and simultaneously reduce costs . The key is to practice continual improvement and think of manufacturing as a system, not as bits and pieces. Dr. Demings philosophy was summarized by some of his Japanese proponents with the following :
When people and organizations focus primarily on quality,

defined by the following ratio: Results of Work Efforts QUALITY = Total Costs. when people and organizations focus primarily on costs, costs tend to rise and quality declines over time.

Deming System of Profound Knowledge

"The prevailing style of management must undergo transformation. A system cannot understand itself. The transformation requires a view from outside. The individual, transformed, will perceive new meaning to his life, to events, to numbers, to interactions between people. The individual, once transformed, will:

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

Deming System of Profound Knowledge

System of Profound Knowledge

Appreciation of a system: understanding the overall processes involving suppliers, producers, and customers (or recipients) of goods and services.

Knowledge of variation: the range and causes of variation in quality, and use of statistical sampling in measurements;
Theory of knowledge: the concepts explaining knowledge and the limits of what can be known; Knowledge of psychology: concepts of human nature.

Demings 14 Key principles

The System of Profound Knowledge is the basis for application of Demings famous 14 Points for Management. Deming offered fourteen key principles for management for transforming business effectiveness.

1. Constancy of Purpose

Deming suggested that a company's principal role was to stay in business, in order to provide jobs. It accomplishes this through innovation, research, constant improvement and self-maintenance. Create constancy of purpose for continual improvement of products and service to society, allocating resources to provide for long range needs rather than only short Term profitability, with a plan to become competitive, to stay in business, and to provide jobs. Developing the organizations goals and philosophy Long term view Self examination where are we Making the Mission Statement a Living document

2. Adopt the new philosophy

We are in a new economic age, created in Japan. We can no longer live with commonly accepted levels of delays, mistakes, defective materials, and defective workmanship. Transformation of Western management style is necessary to halt the continued decline of business and industry. Understanding the Philosophy of never-Ending Improvement. Customer satisfaction Managing for success instead of failure Get everyone involved in the quality journey Identify and remove barriers to achieving quality

3. Cease the need for mass inspection

Eliminate the need for mass inspection as the way of life to achieve quality 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 Commit to examining the process over time Inspect all or none rule Eliminate the need for mass inspection to achieve quality by building quality into the product in the first place. Instead, monitor consumer satisfaction.

4. End lowest tender contracts

Price has no meaning without a measure of quality being purchased do not make cost the sole decision factor Move from multiple to single source relationships Long term relationship between the vendor and buyer The lowest price or bidd er means poorer quality

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. Management has responsibility for the system Continual reduction of waste Continual improvement in quality in every activity Use of Control Charts, flow Charts, Check Sheets, Pareto Diagrams, Brainstorming, Fishbone (cause and Effect), Histograms, Scatter Diagrams for managing quality

6. Institute training on the job

New skills are required to keep up with changes in materials, methods, product and service design, machinery, techniques, and service. Institute modern methods of training on the job for all, including management, to make better use of every employee. On-going integrated approach to an employees growth Learn how to perform the job Realize that training is part of everyones jobAll employees should learn Dr. Demings 14 points Use statistical methods to determine workers capability Training that offers employees a share in the overall philosophy and goals for the organization

7. Institute leadership Institute leadership

The job of a supervisor is not to tell people what to do nor to punish them, but to help people to do a better job and to learn. Improvement of quality will automatically improve productivity if immediate action is taken on reports of inherent defects, maintenance requirements, poor tools, fuzzy operational definitions, and all conditions detrimental to quality. Management should remove causes for system variation People are penalized for things beyond their control Create a positive supportive atmosphere Eliminate fear and mistrust Encourage coaching Extract feedback Workers have to give new systems a chance

8. Drive out fear

Fear is a barrier to improvement so drive out fear by encouraging effective two-way communication and other mechanisms that will enable everybody to be part of change, and to belong to it. 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. Driving out fear Do not use as a motivator get people to work in teams Interaction with the organization Training in company goals. What is the job, is acceptable, what is not acceptable Reward teamwork, quality, and creativity

9. Breakdown barriers between departments and individuals

People inresearch, design, sales, and production must work as ateam, to foresee problems of production and in use thatmay be encountered with the product or service. Breaking down organizational barriers:
Employees roles become functional Problems in competition, communication and

fear arise Customer and employee surveys should be done Improve communication upwards and downwards Eliminate performance appraisals

10. Eliminate the use of slogans, Posters, and exhortations exhortations, and targets for the Eliminate slogans,
work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as 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.
Change to system to help employees achieve goals Identify problems/barriers that are causing goals not to be

met and eliminate them get rid of management by objectives Goals must be focused on the companys mission in the future Goals must have an organizational purpose and aligned with the job

11. Eliminate arbitrary numerical targets

Eliminate work standards (quotas) on the factory floor. Substitute leadership. Eliminate management by objective. Eliminate management by numbers, Numerical goals. Substitute aids and helpful leadership in order to achieve continual improvement of quality and productivity. Replace management by numbers with Never-Ending Improvement Quotas and standards focus on quantity not quality Replace with statistical methods, leadership and training Identify process improvements By focusing on quality through the use of statistical methods, management provides a roadmap for neverending improvement

12. Permit pride in workmanship

Remove barriers that rob the hourly worker of his right to pride of workmanship. Promoting pride of workmanship:
The responsibility of supervisors must be

changed from sheer numbers to quality. This means, inter alia," abolishment of the annual or merit rating and of management by objectives Involve employees at all levels of process improvement Operationally define job descriptions Meet basic work-related needs of employees

13. Encourage education

Institute a vigorous program of education and selfimprovement,. What an organization needs is not just good people; it needs people that are improving with education. Educating and retraining everyone: Should develop employees for changes in their current jobs In the organizations mission and goals Statistical training View training as long term for the individual In fields related to the employees current job The employees personal improvement Failure to do this creates loss of resources in the future

14. Top management commitment to action

Put everybody in the company to work to accomplish the transformation. The transformation is everybodys job. Clearly define top managements permanent commitment to ever improving quality and productivity, and their obligation to implement all of these principles. 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!

Deming's 7 Deadly Diseases of Management

The "Seven Deadly Diseases" include:

Lack of constancy of purpose Emphasis on short-term profits Evaluation by performance, merit rating, or

annual review of performance Mobility of management Running a company on visible figures alone Excessive medical costs Excessive costs of warranty, fueled by lawyers who work for contingency fees

Deming Quality Management approach on Civil Engineering

Problem: A study carried out by Shrivastav and Dhingra (2001) revealed that the limited capacity of public road transport has led to an enormous increase in the use of private and intermediate transport services in India.

Deming Quality Management approach on Civil Engineering (cont.)

Moreover, in many instances, public transport services are not coordinated with other modes, resulting in commuter dissatisfaction due to delays, longer journey times, poor levels of service, high vehicle operating costs, and environmental pollution.

Deming Quality Management approach on Civil Engineering (cont.)

Solution:
Total Quality Transportation (TQT) is the

used term instead of TQM to shift attention away from preconceived notions of TQM.
to focus on the commitment to provide

quality transport service, promote learning skills, and encourage pride in workers efforts to deliver service

Deming Quality Management approach on Civil Engineering (cont.)

Philosophy on Continuous Improvement:

commitment to meet or exceed customer requirements, participation by critical mass of stakeholders, using statistical tools for analysis, continuous review of processes, exercising strong quality leadership, providing training and retraining programs, safety improvement, analysis of current performance, green transport system, and meeting local needs and regulations

Deming Quality Management approach on Civil Engineering (cont.)

Conclusion:
Total Quality Transportation (TQT) has been defined and

Demings 14- point model has been presented for aiding TQT implementation. The model is designed to guide top management in adopting TQT in their organizations.

TQT is a powerful strategy for improving quality. In the

near future, competitiveness will increase the demand for delivery of quality service in the transportation industry because of World Trade Organization agreements
Transportation organizations are at a crucial phase, and

adopting TQT is critical in helping organizations survive and compete in the growing international transport market.

Questions??