apu mbus bm027 chap 3a teachings of q gurus deming

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    Chapter 3 (Part A)

    Teachings ofQuality Gurus -

    Deming

    MANAGING BUSINESS

    BM027-3.5-2-MBUS

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    Module Code and Module Title Title of Slides

    Learning Outcomes

    At the end of this chapter, you shouldbe able to:

    Understand and use the quality

    approaches developed by Edwards

    Deming, and other quality gurus.

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    Module Code and Module Title Title of Slides

    The Quality Gurus

    Dr. W. Edwards Deming, Dr. Joseph Juran,Philip Crosby, Armand V. Feigenbaum, Dr. H.

    James Harrington, Dr. Kaoru Ishikawa, Dr.

    Walter A. Shewhart, Shigeo Shingo, Frederick

    Taylor, and Dr. Genichi Taguchi

    All have made a significant impact to our day-to-

    day life.

    Contributions for improvement for all types oforganizations including :- state and national governments, military organizations,

    educational institutions, healthcare organizations etc.

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    Module Code and Module Title Title of Slides

    Quality Philosophies

    Writer

    Definition

    of

    Quality

    Orientation Developed

    Deming Fitness for

    purpose

    Customer 1. Demings Philosophy

    2. Fourteen Points of Quality

    3. Deming PDCA Cycle4. System of Profound Knowledge

    Juran Fitness for

    use

    Customer 1. Quality Trilogy

    2. The Five Quality Characteristics

    3. Internal Customer

    4. The Four Phases of ProblemSolving

    5. Quality Council

    6. The Quality Spiral

    Crosby Conformance

    to

    requirements

    Supplier 1. Five Absolutes of Quality

    2. Fourteen-Point Plan for Quality

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    Module Code and Module Title Title of Slides

    Demings Philosophy

    1. Concept of pride and joyat work.

    2. Continuous improvement based on reduction invariation.

    3. Higher quality leads to higher productivity which leads tomore output.

    Higher

    Quality

    HigherProductivity

    More

    Output

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    Module Code and Module Title Title of Slides

    Demings Philosophy

    4. Improvements in quality leads to lower costs, whichleads to lower prices; this, in turn, leads to sustaininglong term competitive advantage.

    5. Top management must assume the overridingresponsibilityfor quality improvement.

    Improvements

    in

    Quality

    Lower

    CostLower

    Prices

    Sustaining

    Long Term

    Competitive

    Advantage

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    Demings 14 Points

    1. "Create consistency of purpose towardsimprovement".

    2. "Adopt the new philosophy".

    3. "Cease dependence on inspection".4. "Move towards a single supplier for any one item."

    5. "Improve constantly and forever".

    6. "Institute training on the job".

    7. "Institute leadership".8. "Drive out fear".

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    9. "Break down barriers between departments".

    10. "Eliminate slogans and targets".

    11. "Eliminate management by objectives".12. "Remove barriers to pride of workmanship".

    13. "Institute education and self-improvement".

    14. "The transformation is everyone's job".

    Demings 14 Points

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    The Deming Cycle(PDCA Cycle)

    PDCA ("Plan-Do-Check-Act") is an iterative

    four-step problem-solving process typically

    used in business process improvement.

    http://upload.wikimedia.org/wikipedia/commons/7/7a/PDCA_Cycle.svg
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    The PDCA Cycle

    PLANEstablish objectives & processes - to deliver results in accordance with the

    expected output.

    DO

    Implement the new processes - often on a small scale.

    CHECK

    Measure the new processes and compare the results against the expected

    results.

    ACTION

    Standardize the improved result.

    http://upload.wikimedia.org/wikipedia/commons/7/7a/PDCA_Cycle.svghttp://upload.wikimedia.org/wikipedia/commons/7/7a/PDCA_Cycle.svghttp://upload.wikimedia.org/wikipedia/commons/7/7a/PDCA_Cycle.svghttp://upload.wikimedia.org/wikipedia/commons/7/7a/PDCA_Cycle.svghttp://upload.wikimedia.org/wikipedia/commons/7/7a/PDCA_Cycle.svghttp://upload.wikimedia.org/wikipedia/commons/7/7a/PDCA_Cycle.svghttp://upload.wikimedia.org/wikipedia/commons/7/7a/PDCA_Cycle.svghttp://upload.wikimedia.org/wikipedia/commons/7/7a/PDCA_Cycle.svghttp://upload.wikimedia.org/wikipedia/commons/7/7a/PDCA_Cycle.svghttp://upload.wikimedia.org/wikipedia/commons/7/7a/PDCA_Cycle.svghttp://upload.wikimedia.org/wikipedia/commons/7/7a/PDCA_Cycle.svghttp://upload.wikimedia.org/wikipedia/commons/7/7a/PDCA_Cycle.svghttp://upload.wikimedia.org/wikipedia/commons/7/7a/PDCA_Cycle.svghttp://upload.wikimedia.org/wikipedia/commons/7/7a/PDCA_Cycle.svg
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    System of Profound Knowledge

    Is the underlying foundations of Demings 14points.

    It consists of four interrelated parts:

    1. Appreciation for a system2. Understanding of variation3. Theory of knowledge4. Psychology

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    Appreciation for

    system

    Understanding

    of variation

    Theory ofknowledge

    Knowledge ofPsychology

    Demings System of Profound

    Knowledge

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    Systems

    Deming stressed that systems must be focusedtowards a purpose. Stockholderscan realise financial benefits,

    Employeescan receive opportunities for training andeducation,

    Customerscan receive products and services thatmeet their needs and create satisfaction ,

    the communitycan benefit from businessleadership, and

    the environment can benefit from responsiblemanagement.

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    Variation

    Modern technologyenables to produce with very littlevariation; but human behaviour and performancecontinues to hamper quality efforts.

    To reduce variation through improvements intechnology, process design, and training.

    To be familiar with statistical techniques and otherproblem solving tools.

    Excessive variation - products that fail or performerratically and inconsistent service.

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    Knowledge

    Experience only describesit cannot be tested or

    validated. Theory (knowledge), on the other hand, helps

    one to understand cause and effect.

    Managers should learn and discover(acquire

    knowledge) what works and what is appropriate for their

    individual organisation.

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    Psychology

    It helps us to understand people, interactions between

    people and circumstances.

    People can be motivated intrinsicallyand extrinsically; Demings does not believe pay is a motivator.