III.E.4 Quality Philosophies
Excerpt From The Certified Manager of Quality/Organizational Excellence Handbook
Walter A. Shewhart. Shewhart is referred to as the father of statistical quality control because he brought together the disciplines of statistics, engineering, and economics. Shewhart worked at Bell Laboratories, who pioneered the quality discipline and gave the profession some of its most capable experts. A mentor of both Juran and Deming, Shewhart did extensive research in statistics and probability. He described the basic principles of the new discipline in his book Economic Control of Quality of Manufactured Product, the first statistics text focused on quality.
In his book he first proposed that there are two types of variation in a process—chance causes and assignable causes—and pointed out that assignable causes can be searched out and removed. He then presented a theory of charting data from the process, using statistically based control limits as a means of differentiating between the two types of causes. The use of lot-by-lot inspection and understanding the relationship between process variation and specifications were also spelled out. Shewhart’s focus was on finding economic ways to reduce costs by identifying problems sooner in the process and by reducing the cost of inspection. See Chapter 15 for more on statistical techniques.
Shewhart created the concept of plan–do–check–act, which Deming later adapted.
W. Edwards Deming. Deming saw quality as the primary driver for business and societal success, and communicated the philosophy as a chain reaction. The premise is that if one improves quality, then costs will be lowered and resources better utilized. This increase in productivity will then allow the company to capture market share due to both higher quality and lower price, which will allow the organization to stay in business and to provide more jobs (known as the Deming chain reaction).
Deming’s best known contribution was his 14 points for transformation of Western management:
- Create constancy of purpose for improving products and services.
- Adopt the new philosophy.
- Cease dependence on inspection to achieve quality.
- End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier.
- Improve constantly and forever every process for planning, production, and service.
- Institute training on the job.
- Adopt and institute leadership.
- Drive out fear.
- Break down barriers between staff areas.
- Eliminate slogans, exhortations, and targets for the workforce.
- Eliminate numerical quotas for the workforce.11b. Eliminate numerical goals for management.
- Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system.
- Institute a vigorous program of education and self-improvement for everyone.
- Put everybody in the company to work accomplishing the transformation.
Deming also defined seven deadly diseases that he believed to be the major barriers to business success:
- Lack of constancy of purpose. A company without constancy of purpose has no long-range plans for staying in business. Management is insecure, and so are employees.
- Emphasis on short-term profits. Looking to increase the quarterly dividend undermines quality and productivity.
- Evaluation by performance, merit rating, or annual review of performance. The effects of these are devastating—teamwork is destroyed, rivalry is nurtured. Performance ratings build fear and leave people bitter, despondent, and beaten. They also encourage defection in the ranks of management.
- Mobility of management. Job-hopping managers never understand the companies they work for and are never there long enough to follow through on long-term changes that are necessary for quality and productivity.
- Running a company on visible figures alone. The most important figures are unknown and unknowable—the multiplier effect of a happy customer, for example.
- Excessive medical costs for employee healthcare. These increase the final costs for goods and services.
- Excessive costs of warranty. These are often fueled by lawyers who work on the basis of contingency fees.
III Management Elements and Methods
III.E Quality Models and Theories
III.E.4 Quality philosophies - Describe and apply basic methodologies and theories proposed by quality leaders such as Shewhart, Deming, Juran, Crosby, Feigenbaum, and Ishikawa.
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