Business Model Canvas (BMC)- A new venture concept
Quality gurus and their contribution to TQM
1. Department of Economics and Management
Vavuniya campus of university of Jaffna
Sri Lanka
Quality gurus and their
contribution to TQM
Total Quality Management
Presented by:Mr.N.RAGULAN 2008/bs/20
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1. Dr. W.E Deming
Dr. W. Edwards Deming more commonly known as the Father of Quality was one of the first people in history to
start the quality revolution that took place in the world. He started off teaching Statistical Quality Control (SQC) to
engineers and inspectors. His influential work in Japan--instructing top executives and engineers in quality
management--was a driving force behind that nation's economic rise. Dr. Deming contributed directly to Japan's
phenomenal export-led growth and its current technological leadership in automobiles, shipbuilding and electronics.
Dr. Deming is now a colossus of modern management thinking.
Dr. Deming's famous 14 Points, originally presented in ―Out of the Crisis‖, serve as management guidelines. The
points cultivate a fertile soil in which a more efficient workplace, higher profits, and increased productivity may
grow.
The 14 points are as follows:
1. Create and communicate to all employees a statement of the aims and purposes of the company.
2. Adapt to the new philosophy of the day; industries and economics are always changing.
3. Build quality into a product throughout production.
4. End the practice of awarding business on the basis of price tag alone; instead, try a long-term relationship based on established
loyalty and trust.
5. Work to constantly improve quality and productivity.
6. Institute on-the-job training.
7. Teach and institute leadership to improve all job functions.
8. Drive out fear; create trust.
9. Strive to reduce intradepartmental conflicts.
10. Eliminate exhortations for the work force; instead, focus on the system and morale.
11. (a) Eliminate work standard quotas for production. Substitute leadership methods for improvement.
(b) Eliminate MBO. Avoid numerical goals. Alternatively, learn the capabilities of processes, and how to improve them.
12. Remove barriers that rob people of pride of workmanship
13. Educate with self-improvement programs.
14. Include everyone in the company to accomplish the transformation.
The first of the 14 Points charges management with establishing continual improvement through the redefinition of
the company's purposes. He further states that company‘s should have supply allegiances with those suppliers who
have quality equipment rather than those who provide the lowest cost.
In the fifth point, Dr. Deming states that only a commitment to a process of continual improvement truly rewards.
Quality is not just a onetime revolution from which benefits are reaped in the long term. Instead, it must adopt an
evolutionary philosophy; preventing stagnation and arms the company for the uncertain future.
Another revolutionary introduction by Deming was the Plan-Do-Check-Act model.
Dr. Deming stands strong against mass inspection procedures; a product should be monitored by the workers,
throughout the assembly process, to meet a series of quality standards. In the long term, the use of better equipment
and a more intense worker-oriented method of inspection will markedly improve productivity and lower costs. In
order to accomplish these goals, a company must develop a consistent, active plan that involves its entire labour
force in the drive toward total quality.
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His new philosophy was based on cooperation. A company must involve and extract the power of every worker to
fulfil its own potential. To do this he promotes his theory of profound knowledge.
The work of W. E Deming and his contribution to the concept and practice of quality in management is quite
gigantic and valuable.
2. Joseph M Jurang
Joseph M. Juran made many contributions to the field of quality management. His book, the Quality Control
Handbook, is a classic reference for quality engineers. Dr. Juran was the first to incorporate the human aspect of
quality management which is referred to as Total Quality Management.
The process of developing ideas was a gradual one for Dr. Juran. Some of his gradually developed ideas were as
follows:
Top management involvement.
Pareto principle- He believed that 80% of the problem was caused by 20% of the causes. This is also known as "the vital few and
the trivial many". In later years, Juran preferred "the vital few and the useful many" to signal the remaining 80% of the causes
should not be totally ignored.
the need for widespread training in quality.
the definition of quality as fitness for use.
the project-by-project approach to quality improvement.
Quality Trilogy: Composed of three managerial processes: quality planning, quality control and quality
improvement. He stated that without change, there will be a constant waste, during change there will be increased
costs, but after the improvement, margins will be higher and the increased costs get recouped.
The following table outlines the major points of Dr. Juran's quality management ideas:
Quality Planning Identify who are the customers.
Determine the needs of those customers.
Translate those needs into our language.
Develop a product that can respond to those needs.
Optimise the product features so as to meet our needs and customer needs.
Quality
Improvement
Develop a process which is able to produce the product.
Optimise the process.
Quality Control Prove that the process can produce the product under operating conditions with minimal
inspection.
Transfer the process to Operations.
Juran founded the Juran Institute in 1979. The Institute is an international training, certification, and consulting
company which provides training and consulting services in quality management, Lean manufacturing management
and business process management, as well as Six Sigma certification.
3. Philip Crosby: The Fun Uncle of the Quality Revolution
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Even though the quality revolution is attributed to Dr. Deming and Dr. Jurang, It was Philip Crosby who made
quality an aspect the common man understood. He popularised the idea of ―cost of poor quality‖, i.e. figuring out
how much it costs to do things badly.
His experiences on a production line are what gave birth to his ideas. Crosby focused on zero defects, however he
said that zero defects does not originate in the assembly line. If a manufacturing process is to be free of defects,
management needs to set the tone and the atmosphere for employees to follow. The benefit of such a system for an
organisation is the striking decrease in wasted resources and time spent in producing products that customers don‘t
want.
Mr. Crosby defined quality as conformity to certain specifications set forth by management and not some vague
concept of "goodness." These specifications are not arbitrary either; they must be set according to customer needs
and wants.
Four Absolutes of Quality Management defined by Philip Crosby
1. Quality is defined as conformance to requirements, not as 'goodness' or'elegance'.
2. The system for causing quality is prevention, not appraisal.
3. The performance standard mustbe Zero Defects, not "that's close enough".
4. The measurement of quality is the Price of Non-conformance, not indices.
4. Genichi Taguchi and Taguchi Methods - Practical, Rapid Quality
WWII left Japanese manufacturers struggling for survival with very limited resources and if it was not for Taguchi
the country might never have survived. He like other engineers understood that the manufacturing was influenced
by outside noises and was able to realise methods to identify those noise sources which had the greatest affect on
product variability. He revolutionised the Japanese manufacturing process through cost savings. Today his ideas
have been adopted by successful manufacturers all over the globe.
Some of the major contributions that Taguchi has made to the quality improvement world:
The Loss Function - Taguchi devised an equation to quantify the decline of a customer's perceived value of a
product as its quality declines. Essentially, it tells managers how much revenue they are losing because of
variability in their production process. It is a powerful tool for projecting the benefits of a quality
improvement program. Taguchi was the first person to equate quality with cost.
Orthogonal Arrays and Linear Graphs - When evaluating a production process analysis we‘ll undoubtedly
identify outside factors or noise which cause deviations from the mean. Isolating these factors to determine
their individual effects can be a very costly and time consuming process. Taguchi devised a way to use
orthogonal arrays to isolate these noise factors from all others in a cost effective manner.
Robustness - Some noise factors can be identified, isolated and even eliminated but others cannot. For
instance it is too difficult to predict and prepare for any possible weather condition. Taguchi therefore
referred to the ability of a process or product to work as intended regardless of uncontrollable outside
influences as robustness. He was pivotal in many companies' development of products and processes which
perform uniformly regardless of uncontrollable forces; an obviously beneficial service.
5. Kaoru Ishikawa: One Step Further
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According to Ishikawa, quality improvement is a continuous process, and it can always be taken one step further.
He urged managers to resist becoming content with merely improving a product's quality, insisting that quality
improvement can always go ―one step further‖. His concept of companywide quality improvement is a call for
continued customer support. That is a customer will be receiving the services of the organization even after the
product is recieved. This service would extend across the company itself in all levels of management, and even
beyond the company to the everyday lives of those involved.
The cause and effect diagram or the fishbone diagram is one, which allows users to see all possible causes of a result,
and hopefully find the root of process imperfections. By pinpointing root problems, this diagram provides quality
improvement from the "bottom up." This diagram is none other than the brain child of Ishikawa. Both Ishikawa and
Deming use this diagram as one the first tools in the quality management process.
Ishikawa believed in the importance of support and leadership from top level management. He continually urged
top level executives to take quality control courses, knowing that without the support of the management, these
programs would ultimately fail. He stressed that it would take firm commitment from the entire hierarchy of
employees to reach the company's potential for success.
Another area of quality improvement that Ishikawa emphasized is quality throughout a product's life cycle -- not
just during production. Although he believed strongly in creating standards, he felt that standards were like
continuous quality improvement programs -- they too should be constantly evaluated and changed. Standards are
not the ultimate source of decision making; customer satisfaction is. He wanted managers to consistently meet
consumer needs; from these needs, all other decisions should stem.
Ishikawa also showed the importance of the seven quality tools: control chart, run chart, histogram, scatter
diagram, Pareto chart, and flowchart. Besides his own developments, Ishikawa drew and expounded on principles
from other quality gurus, including those of one man in particular: W. Edwards Deming, creator of the Plan-Do-
Check-Act model. Ishikawa expanded Deming's four steps into the following six:
Determine goals and targets.
Determine methods of reaching goals.
Engage in education and training.
Implement work.
Check the effects of implementation.
Take appropriate action.
6. H. James Harrington
Harrington has authored 35 books and created ten software packages on performance improvement. In addition, he
has written a monthly column for Quality Digest magazine for over eleven years. His career in quality and
performance improvement spans 65+ years. He spent forty years with IBM, working on reliability and quality. For
a number of years he headed up the Quality Research Centre for IBM in San Jose, California. For ten years he was a
Principal at Ernst & Young and served as their International Quality Advisor. In 2010 he was named ―The Global
Leader in Performance Improvement Initiatives‖ by the Australian Organization for Quality.
Some of his major accomplishments are:
1. 1967—Originated IBM‘s process for Process Qualification which includes three levels of certification –
development process and models, pilot process and models, and production process and products.
2. 1967—originated the Poor-Quality Cost concept. This concept extended quality cost into indirect areas like
customer-incurred quality cost, loss of reputation cost, and lost opportunity cost.Harrington‘s book
entitled Poor-Quality Cost was published in 1987 by Marcel Dekker Inc. Harrington developed at IBM a
software package called ―QC 1000‖ that reported on the Poor-Quality Cost from receiving, to sub-assembly,
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to final assembly, to final unit test, to system test, to shipping, to installation and first year performance.
This software package included the customer impact cost of errors that occurred when the product was in
use in the customer‘s office. Hewlett Packard also developed a software package which they marketed that
was based upon his book.
3. 1979—originated the procedures for internal benchmarking at IBM San Jose, Germany and Japan. The
procedure required the teams from all locations worldwide that were producing the same product to meet
twice a year. During these meetings they performed a detailed review of the way each step in the production
process was being conducted and compared the cost and quality related to each step. Best concepts and
procedures were then standardized across all locations.
4. 1985 - 1990—developed the Business Process Improvement methodology. (This approach is sometimes
referred to as ―Business Process Management.‖)
5. 1986 - 1991—developed the Total Improvement Management (TIM) methodology.
Blending the Improvement Methodologies
To blend the many improvement facets, Harrington developed a combined methodology called, "Total
Improvement Management (TIM)." It is pictured as a pyramid made up of five tiers.
7. Yoshio Kondo
Kondo emphasises the interrelationship between quality and people. He sees humanity as the essence of motivation.
He endorses that human work should always include the following three components:
Creativity -- the joy of thinking
Physical activity -- the joy of working with sweat on the forehead
Sociality -- the joy of sharing pleasure and painwith colleagues
Physical activity as well as elements of creativity and sociality are involved in Company-Wide Quality Control, since
the aim of CWQC is to promote customer satisfaction by ensuring superior quality of manufactured products and
services through designing, manufacturing and marketing. Therefore there is no basic contradiction between CWQC
and humanity.
The major problems lie in the stages of designing the manufacturing process and evaluating the results of the work.
Kondo advocates that making work more creative is important for motivation. He suggests four points of action in
support of such a process:
1. When giving work instruction, clarify the true aims of the work.
Instead of explaining clearly what the aim of a job is, people tend to concentrate on the methods and means
to be used for achieving that aim. However, every job has an aim, and it goes without saying that achieving
this aim is the most important thing. Aside from mandatory restrictions related to safety and quality
assurance, information concerning means and methods should be given for reference only, and we should
encourage people to devise their own best ways of achieving the objectives.
2. See that people have a strong sense of responsibility towards their work.
This is related to the previous point. As we know well, human beings are often weak and irrational and tend
to try to shift responsibility onto someone else when their work goes wrong, complaining or being evasive. It
is, therefore, necessary to devise ways of avoiding such excuses. The 'mandatory objectives, optional means'
approach described in Point 1 above serves this purpose, and techniques such as the stratification of data,
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the correction of data by mean value or by regression, and the application of the orthogonal principle in the
design of experiments [Taguchi, 1986] are all effective devices for putting a stop to excuses.
3. Give time for the creation of ideas.
Once people start feeling such a strong sense of responsibility, they will go back to the essence of the problem
and think about it deeply. This will result in flashes of inspiration and the creation of new ideas. Excellent
ideas are most easily generated during those times when we have pondered the problem deeply and have
arrived at a detached, meditative state of mind. An ancient Chinese proverb tells us that this kind of time
occurs when we are horseback riding, lying down and relaxing. The times at which ideas come most readily
are different for every individual. The important thing is to give people the time to be creative.
4. Nurture ideas and bring them to fruition.
New-born ideas created in this way are extremely fragile. If they are examined critically with the intention
of picking them to pieces or squashing them down, it is very easy to obliterate them completely. However, to
find out whether such ideas are really good or not, or to develop them in superior ways, they must be
allowed to grow. There is no objection during this stage of growth to allowing an idea to change gradually
from its original form into a better one.
Kondo concludes that only by addressing all four points will it be possible for work to be reborn as a creative
activity. If ideas are created and fostered, those concerned will come to feel a real sense of self-confidence. This is an
extremely valuable experience from the standpoint of motivation.
8. Dr. Shigeo Shingo
Dr. Shingo was one of the greatest influences in Japanese quality control.Shigeo Shingo, along with Deming and
Juran, believed that the application of zero defects by good engineering and process investigation instead of the
American and Western philosophy of slogans and exhortations. Shingo believed that results of improvements should
be displayed and announced and not the display of defect statistics, which were demoralizing. Poka-Yoke Techniques
to Correct Defects + Source Inspection to Prevent Defects = Zero Quality Control. This equation is the essence of the
Zero Quality Control Concepts.
Dr. Shingo‘s first of major accomplishments occurred in 1930, when he introduced scientific management to the
Taipei Railway Company. By implementing the scientific management system, he was able to reduce operation
costs. In 1951, Shingo discovered the concept of "statistical quality control." By investigating around 300 companies,
he was able to gain a greater understanding of the subject. By 1959, Dr. Shingo was already known as an
"engineering genius." By not only focusing on management, but also production, he established himself as an
extremely reputable Industrial engineer. Between 1956 and 1958, Shingo was able to reduce the four month set-up
time of a super tanker to two months, setting a record.
In the 1960‘s, Shingo‘s major contribution to Quality Control by the development of the Poka-Yoke (a mistake-
proofing mechanism) and source inspection systems while working as an industrial engineer at The Toyota Motor
Corporation. Shingo had a realization that statistical quality control would not reduce defects to zero automatically.
In the 1970‘s, Dr. Shingo developed a concept called "Single Minute Exchange of Dies." The integration of this
concept significantly reduced operating costs. Using his teachings and concepts of Just In Time (JIT), SMED and
Zero Quality Control, many manufacturing companies have realized greater profits.
According to the American Production and Inventory Control Society (APICS), JIT can be defined as, "A philosophy
of manufacturing based on planned elimination of all waste and continuous improvement of productivity. It
encompasses the successful execution of all manufacturing activities required to produce a final product, from
design engineering to delivery and including all stages of conversion from raw material onward. The primary
elements include having only the required inventory when needed; to improve quality to zero defects; to reduce lead
time by reducing set-up times, queue lengths and lot sizes; to incrementally revise the operations themselves; and to
accomplish these things at minimum cost."The essential element in developing JIT was the use of the Ford System
along with the realization that factory workers had more to contribute than just muscle power. The basic essence of
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JIT has been implemented to the new ―continuous improvement‖or ―lean manufacturing‖ wave in the industry
today.
The concept of SMED is to reduce the set-up time of dies, which results directly in smaller batch sizes for parts. With
the smaller batch sizes, there are lower costs associated with work in inventory storage. SMED results in higher
productivity and fast engineering design changes with little cost."Dr. Shigeo‘s approach to developing the SMED
concept was to isolate and identify the setup time as two entities: internal setup time and external setup time.
According to him,a simple approach to achieving a quick setup and changeover of the dies can be done in the
following steps:
-Separating internal and external setup as it exists.
-Converting internal to external setup
-Streamlining all aspects of the setup operation
By using the ideal scenario of Zero Quality Control, quality improvements can be made. By implementing mistake-
proofing devices, Shingo would eliminate any possibility of a defect. Also, by targeting the initial cause of the defect,
the need for statistical process control would be eliminated.Dr. Shigeo Shingo‘s Zero Quality Control (ZQC)
techniques make use of the followingengineering principles:
-100 percent inspections done at the source instead of sampling inspections
- Immediate feedback from successive quality checks and self checks
-Poka-yokedesigned manufacturing devices
Dr. Shigeo Shingo‘s teachings and concepts have formed the background for efficient engineering practices. He
enabled a better way of life for operators and corporations. In 1988, Utah State University founded the Shingo prize
in his honor. This prize recognizes world-class manufacturing.
9. Dr. Armand V. Feigenbaum
Feigenbaum is the originator of Total Quality Control. While he was a doctoral student at MIT, Feigenbaum
completed his first edition of his book Total Quality Control.
He argued that total approach to quality requires the involvement of all functions of the quality process, not only
manufacturing. His idea was to build in quality in the early stage rather than inspecting and controlling after the
processes have been completed.
Dr. Feigenbaum‘s message was to move away from the concerns of the technical aspect of quality control and make
a focus of quality control as a business method, including administrative and human relation functions. Another one
of his emphases is that quality does not mean "best" but "best for the customer."
Feigenbaum saw Modern Quality Control as the stimulating and building up of operator responsibilities and
interests in quality. Feigenbaum also argued that all levels of quality need to be emphasized. For quality control to
achieve its specified results there is the need for complete support from management as well as the quality control
program must develop gradually from within the organization.
Dr. Feigenbaum is known for his thoughts on how quality programs are one of the most powerful change agents for
companies today. As a result of Dr. Feigenbaum‘s work, company management has assumed the responsibility to
make leadership contributions that will increase their company‘s growth, which in turn will positively affect the
national economy.
10. Masaaki Imai
Masaaki Imai is responsible for bringing kaizen to the consciousness of the West. He was the first to write and speak
about the remarkable leadership principles known as the Toyota Production System, what we call lean thinking
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today. Masaaki Imai has spent the last three decades travelling the world visiting world class companies and
sharing with them best practices in Japanese management.
He has written two best-selling books on the subject of KAIZEN, and is writing his third book, on the subject of the
role of leadership in making a continuous improvement culture sustainable long-term.
The concept of kaizen is to make simple, common-sense improvements and refinements to critical end-to-
end business processes – supporting the overall CI strategy of the organization. In the mid-eighties Mr. Imai
brought this message to executives of the leading North American carmakers. Today, companies around the world
have used kaizen for greater productivity, speed, quality and profits with minimal cost, time and effort, to get results
and to become recognized industry leaders.
Mr. Imai founded Kaizen Institute in 1985, also now known as Kaizen Institute Consulting Group (KICG). He
continues to play a significant role as the Ambassador and visionary of the organization, while actively
participating in conferences around the world spreading his message of KAIZEN LEAN. The Institute focuses on a
top-down and bottom-up approach that engages the entire enterprise to create a Lean culture that is sustainable.
Kaizen Institute supports organizations of all sizes in Europe, Asia-Pacific, Africa, Middle East and the Americas, in
all business sectors. It provides broad consulting, training and certification (Kaizen College),
and benchmarking services. All consultants must have practical field experience as well as have mastered the
philosophy, methodologies and tools of Lean.
Mr. Imai deals not only with top management of its client company, but also can relate to problems at the opposite
end of the organization, namely, Gemba or ‗the real place where value is added‘. He understands the steps required
to make a company world-class and moving it from a result-oriented to process-oriented company.
In November, 1998, he attended the Silver Jubilee ARTDO (Asian Regional Training & Development Organization)
Convention held in New Delhi and received the Asia-Pacific Human Resource Development Award ―in recognition of
his immense contribution to business efficiency and productivity through the application of the philosophy of step-
by-step improvement, and in grateful appreciation of the positive and revolutionary impact that his best seller books
– KAIZEN and Gemba KAIZEN – have made on the lives of millions of people around the world.‖ He delivered a
valedictory speech on that occasion.
References
o http://www.4rcs.com/feigenbaum.htm
o http://www.geocities.com/parthadeb/smed.html
o http://www.inventorysolutions.org/def_jit.htm
o http://www.library.tuiasi.ro/ipm/vol12no12/mechanical.html
o http://www.hk5sa.com/tqm/tqmex/kondo.htm
o http://www.public.iastate.edu/~vardeman/IE361/f02mini/kroh.pdf
o www.skymark.com/resources/leaders/deming.asp