We Prove the Value of a Quality Management System!...

1. LEARNING OBJECTIVES
Explain W. Edwards Deming’s Theory of Management.
Discuss Deming’s 14 Points for Management.
Discuss the paradigm shift in management caused by
Deming’s theory of management.
A Better Way…
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3. A LEADER IN THE QUALITY
REVOLUTION
W. Edwards Deming
War on Bad Quality
War on Wasted Production Costs.
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4. W. EDWARD DEMING
Ph.D. in physics and trained as a statistician
Western Electric in the 1920s and 30s
After World War II helped Japan implement his
statistical quality control
Deming became known in 1980 when the broadcast
program entitled If Japan Can…Why Can’t We?
Credited with having the greatest influence on
quality management
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5. W. EDWARD DEMING
CONT.
responsibility for quality improvement lies with top
management
85 to 95 % of variation results from the system
majority of poor quality in a system is caused by
management
higher levels of quality lead to higher levels of
productivity
Quality philosophy focused on reducing uncertainty
and variability
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6. BRIEF
HISTORY OF
QUALITY
The front (left) side of the
“Narmer Palette” shows
6 papyrus reeds under
a falcon. Each papyrus
reed represents 1,000
enemies captured by
King Narmer. This Is a
pictograph and is one
of the earliest uses of
statistics.
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7. DEMING CHAIN REACTION
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8. Another example of a quality issue in ancient
times is found in the Code of Hammurabi
dating from as early as 2000 BC. Item 229
states, "If a builder has built a house for a
man, and his work is not strong, and the
house falls in and kills the householder, that
builder shall be slain."
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9. TRADITIONAL VIEW OF
CONFORMANCE TO SPECIFICATIONS
No Loss LossLoss
Tolerance
0 +1/16-1/16
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10. MODERN MANAGEMENT
frequently operates using the following assumptions
(often without realizing it):
1. Rewards and punishments are the most effective
motivators for people…
2. Optimization of every area in an organization leads
to optimization of the entire organization…
3. Results are achieved by setting objectives…
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11. MODERN MANAGEMENT
4. Quality is inversely related to quantity…
5. Rational decisions can be made based on guesswork
and opinion…
6. Organizations can be improved by fighting fires…
7. Competition is a necessary aspect of life…
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12. PURPOSE
Deming's theory of management promotes “Joy in
Work” for all of the stakeholders of an
organization.
Deming believed that joy in work will “unleash the
power of human resource contained in intrinsic
motivation. Intrinsic motivation is the motivation
an individual experiences from the sheer joy of an
endeavor.”
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13. 4 Paradigms
Think of each as a
shift in assumptions
for the practice of
management.
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14. 1. People are best inspired by a mix of intrinsic
and extrinsic motivation, not only by extrinsic
motivation.
2. Manage using both a process and results
orientation, not only a results orientation.
3. Management's function is to optimize the entire
system so that everyone wins, not to maximize
only their component of the system.
4. Cooperation works better than competition, if
the aim of the system is not to win.
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15. SYSTEM OF PROFOUND
KNOWLEDGE
Appreciation for a system
Understanding variation
Theory of knowledge
Psychology
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16. SYSTEMS
A system is a set of functions or
activities within an organization that
work together for the aim of the
organization.
Components must work together
Management must optimize the system
Every system must have a purpose
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18. VARIATION
Many sources of uncontrollable variation exist
(common causes)
Special (assignable) causes of variation can be
recognized and controlled
Failure to understand these differences can increase
variation in a system
Taguchi philosophy seeks to minimize variation
around a target value (Fishbone diagram)
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19. SOURCES OF VARIATION
IN A PROCESS
Materials
Tools
Operators Methods
Measurement
Instruments
Human
Inspection
Performance
EnvironmentMachines
INPUTS PROCESS OUTPUTS
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20. THEORY OF KNOWLEDGE
Knowledge is not possible without theory
Experience alone does not establish a theory, it only
describes (“Ive been doing this for 30 years”)
Theory shows a cause and effect relationship that can
be used for prediction
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21. PSYCHOLOGY
Sincere trust and belief in people
Understanding of how people work in systems
People are motivated intrinsically and extrinsically;
intrinsic motivation is the most powerful
Fear is demotivating
Managers should develop pride and joy in work
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22. PEOPLE ARE DIFFERENT
They learn in different ways
and at different speeds.
A leader of people must use
these differences to optimize
the system of interdependent
stakeholders of an organization.
Sources of power
Power from position
Power from personality
Power from knowledge
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23. DEMING’S 14 POINTS
(ABRIDGED) (1 OF 2)
1. Create and publish a company mission statement and
commit to it.
2. Learn the new philosophy. - Customer driven continuous
improvement
3. Understand the purpose of inspection. - workers must be
responsible for their work
4. End business practices driven by price alone. - Price has no
meaning without quality
5. Constantly improve production and service as a system.
6. Institute training. - Job specific training
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24. DEMING’S 14 POINTS (2 OF 2)
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7. Teach and institute leadership.
8. Drive out fear and create trust.
9. Optimize team and individual efforts.
10. Eliminate exhortations for work force. -Giving advise
11. Eliminate numerical quotas and M.B.O. -Focus on
improvement.
12. Remove barriers that rob people of pride of workmanship.
13. Encourage education and self-improvement.
14. Take action to accomplish the transformation.

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26. DEMING PRIZE
Instituted 1951 by Union of Japanese Scientists and
Engineers (JUSE) in Japan
Several categories including prizes for individuals,
factories, small companies, and Deming application prize
American company winners
– Florida Power & Light (first U.S. winner)
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