NAME: - PREET DODEJA
CLASS: - SYBMS
DIVISION: - A
STREAM: - FINANCE
ROLL NO.: - 039
SUBJECT: - PRODUCT AND QUALITY MANAGEMENT
TOPIC: - EDWARD DEMING'S 14 PRINCIPLES, P. CROSBY’S PHILOSOPHY -
QUALITY IS FREE.
WHAT IS DEMING'S 14-POINT PHILOSOPHY?
Dr. W. Edwards Deming is widely regarded with emphasising quality as a means of
achieving success in business. Deming, a statistician who went to Japan after World war ll to
aid with the census, also taught statistical process control to CEOs of big Japanese
corporations. His message was simple: by enhancing quality, businesses will save money
while increasing productivity and market share.
Japanese companies including as Toyota, Fuji, and Sony experienced considerable success
after using Deming's principles. Their product quality was substantially superior to that of
their global competitors, and their expenses were significantly lower. Demand for Japanese
goods skyrocketed, and by the 1970s, several of these firms controlled the global market.
Companies in the United States and Europe felt they could no longer ignore the quality
revolution.
So, the business world developed a new appreciation for the effect of quality on production
and price. Although Deming didn't create the phrase "Total Quality Management," he's
credited with starting the movement. He didn't receive much recognition for his work until
1982, when he wrote the book now titled "Out of the Crisis," which summarized his famous
14-point management philosophy.
Deming's points are applicable to any type or size of business. Quality must be controlled by
service companies just as much as it is by manufacturing organisations. The principle also
applies to huge international organisations, distinct divisions or departments within a
company, and even single-person operations.
The 14 Principles
1. Create a Constant Purpose towards Improvement
Make long-term plans for quality.
Refrain from resolving problems in the short term.
Doing the same things better isn't enough; discover better things to do.
Predict and prepare for future obstacles, and continually strive to improve.
2. Adopt the New Philosophy
Quality should be embraced throughout the organisation.
Rather than reacting to competition pressure, prioritise your customers' demands and
build products and services to suit those needs.
Be prepared for a significant shift in the way business is conducted. It is about leading
rather than managing.
Create and implement your quality vision.
3. Refrain from Relying on Inspections
Inspections are expensive and unreliable, and they do not increase quality; rather, they
identify a lack of quality.
Integrate quality into the process from beginning to end.
Don't only figure out what you did wrong; eliminate the "wrongs" entirely.
To demonstrate that the process is operating, use statistical control methods rather
than physical inspections alone.
4. Use a single supplier for goods.
Quality is dependent on consistency — the less variance there is in the input, the less
variation there will be in the outcome.
Consider your suppliers to be quality partners. Encourage them to invest time in
increasing their own quality - they should not compete for your business solely on the
basis of price.
Examine the entire cost to you rather than simply the initial expense of product
Use quality statistics to ensure that suppliers meet your quality standards.
5. IMPROVE CONSTANTLY AND FOREVER
Continuously improve your systems and processes. Deming promoted the Plan-
Do-Check-Act approach to process analysis and improvement.
Emphasize training and education so everyone can do their jobs better.
Use kaizen as a model to reduce waste and to improve productivity,
effectiveness, and safety.
6. USE TRAINING ON THE JOB
Train for consistency to help reduce variation.
Build a foundation of common knowledge.
Allow workers to understand their roles in the "big picture."
Encourage staff to learn from one another, and provide a culture and environment
for effective teamwork.
7. Put Leadership into Action
Expect your managers and supervisors to understand their employees and the
processes they use.
Don't just oversee; provide assistance and resources so that each member of
staff may achieve their best. Be a teacher, not a cop.
Determine what each person requires to perform at their best. Hardware,
software, additional tools, and training, for example.
Highlight the significance of participatory management and transformative
leadership.
Find ways to maximise your potential rather than focusing just on fulfilling
targets and quotas.
8th. Remove Fear
Allow people to perform at their best by making sure they are not frightened to
communicate their ideas or concerns.
Let everyone know that the goal is to achieve high quality by doing more things right
– and that you're not interested in blaming people when mistakes happen.
Make workers feel valued, and encourage them to look for better ways to do things.
Ensure that leaders are approachable and that they work with teams to act in the
company's best interests.
Use open and honest communication to remove fear from the organization.
9. BREAK DOWN BARRIERS BETWEEN DEPARTMENTS
Build the "internal customer" concept – recognize that each department or
function serves other departments that use their output.
Build a shared vision.
Use cross-functional teamwork to build understanding and reduce adversarial
relationships.
Focus on collaboration and consensus instead of compromise.
10. Get Rid of Confusing Slogans
Don't leave people guessing about what you want; tell them clearly what you
want. "Excellence in service" is a catchy phrase, but what exactly does it
mean? How is it accomplished? A slogan like "Always strive to be better"
conveys the point more clearly.
But don't let words and nice-sounding statements take the place of genuine
leadership. Outline your expectations, and then publicly congratulate people
for performing good work.
11. Do away with management by objectives.
Examine how processes are carried out rather than just numerical aims.
According to Deming, production targets can stimulate high productivity
while resulting in bad quality.
Provide assistance and resources to ensure that both production levels and
quality are high and attainable.
Measure the process rather than the people involved.
12. Remove Obstacles to Workmanship Pride
Allow everyone to be proud of their effort without being judged or compared.
Treat employees fairly and don't make them compete for monetary or other benefits
with their co-workers. The quality system will organically elevate the standard of
everyone's work to an equivalent high level over time.
13. Put education and self-improvement into action
Workers' present skills should be improved.
Encourage people to gain new skills in order to be better prepared for future changes
and problems.
Develop skills to make your employees more flexible to change and capable of
identifying and implementing improvements.
14. Make "Transformation" Everyone's Responsibility
Increase the overall quality of your organisation by having each individual take a step
toward quality.
Analyse each tiny step and consider how it fits into the overall plan.
Use effective change management principles to introduce the new philosophy and
ideas in Deming's 14 points.
Often organizations focus on improving and delivering quality in one, key are of their
business. However, according to Dr. W. Edwards Deming, quality should be built in at every
level of the business - from suppliers and production facilities to customer service and
frontline staff - in order to achieve success.
Taken as a whole, the 14 points are a guide to the importance of building customer
awareness, reducing variation, and fostering constant continuous change and improvement
throughout organizations.
The Man Who Said "Quality is Free": Philip Crosby
Crosby The founder and chairman of the board of Career IV, an executive management
consulting firm. He also founded the Quality College and Philip Crosby Associates Inc. He
has written a number of books, including Quality is Free, Quality Without Tears, Let's Talk
Quality, and Leading: The Art of Becoming an Executive. Crosby coined the term "zero
flaws."
Four Quality Absolutes
Crosby's reaction to the quality challenge was the "get it right the first time”. In addition, he
included four fundamental principles:
The Very First Absolute
Conformance to specifications is the definition of quality (not as goodness)
The second absolute
The quality system is based on prevention (not appraisal)
The Third absolute
The performance standard is "zero faults" (rather than "that's close enough").
The 4th Absolute
The cost of nonconformance is used to quantify quality (not indexes).
The Fourteen Steps to Improving Quality
1. Management Involvement
Make it abundantly obvious that management is dedicated to quality.
2. Quality Assurance Teams
Create Quality Improvement Teams comprised of senior leaders from each department.
3. Analyse Processes
Processes should be measured to determine where existing and potential quality issues exist.
4. The Price of Quality
Assess the cost of quality and explain how it may be used as a management tool.
5. Quality Observation
Increase all employees' quality awareness and personal care.
6. Troubleshooting
Take action to address any issues that have been found in prior steps.
7. Establish Progress Monitoring
Establish progress monitoring for the improvement process.
8. Educate Supervisors
Train supervisors to take an active role in the quality improvement programme.
[Link] of Zero Defects
To reaffirm management's commitment, hold a Zero Defects Day.
10. Set Improvement Objectives
Encourage individuals to set goals for themselves and their groups to improve.
11. Remove Fear
Encourage employees to inform management about quality-improvement roadblocks.
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Recognize and praise those who take part.
13. Quality Councils
It Form Quality Councils in order to connect on a regular basis.
14. Continue the Cycle
Repeat to underline that the process of quality improvement never ends.
In short, The Fourteen Steps to Quality Improvement; Make it clear that management
is committed to quality. Measure processes to determine where current and potential
quality problems lie. Raise the quality awareness and personal concern of all employees.
Correct problems and take actions to correct problems identified through previous
steps.
REFERENCES - [Link]
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