1. Create constancy of purpose toward improvement of products and services, with the aim to become com petitive, and to stay in business, and to provide jobs.
2. Adopt the new philosophy. We are in a new eco nomic arena. Western management must awaken to the challenge, must learn responsibilities, and take on leadership for change.
3. Cease dependencies on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place.
4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.
5. Improve constantly and forever the system of pro duction and service—to improve quality and pro ductivity, and thus constantly decrease costs.
6. Institute training on the job.
7. Institute leadership.
8. Drive out fear, so that everyone may work effec tively for the company.
9. Break down barriers between departments.
10. Eliminate slogans, exhortations, and targets for the workforce asking for zero defects and new levels of productivity.
11. (a) Eliminate work standards (quotas) on the fac tory floor. Substitute leadership, (b) Eliminate man agement by objective. Eliminate management by numbers, numerical goals. Substitute leadership.
12. Create pride in the job being done.
13. Institute a vigorous program of education and self-improvement.
14. Put everybody in the company to work to accom plish the transformation.
SOURCE: W. Edwards Deming, Out of the Crisis, Cambridge, MA: The MIT Press, 1982.
Deming and his teachings were relatively unnoticed in the United States. Soon after World War II, Japan was a country faced with the challenge of rebuilding itself after devastation and military defeat. Moreover, Japan had few natural resources so the export of manufactured goods was essential. Unfortunately, the goods that it produced were considered inferior in many world markets.
To help Japan rebuild, a group called the Union of Japanese Scientists and Engineers (JUSE) was formed to work with U. S. and allied experts to improve the quality of the products Japan produced. As part of this effort, in the 1950s Deming was invited to provide a series of day-long lectures to Japanese managers. The focus of these lectures was statistical control and quality. The Japanese embraced these principles, and the quality movement acquired a strong foothold in Japan. In tribute to Deming, the Japanese even named their most prestigious quality award the Deming Prize.
Until the 1970s, Deming was virtually unknown in the West. In 1980, an NBC documentary entitled "If Japan Can, Why Can't We" introduced him and his ideas to his own country and the rest of the world. Many of Deming's philosophies and teachings are summarized in his famous fourteen points for quality that are outlined and discussed in his book Out of the Crisis (Deming 1982).
Joseph Juran (1904- )
Joseph Juran's philosophies and teachings have also had an important and significant impact on many organizations worldwide. Like Deming, Juran started out as an engineer in the 1920s. In 1951 he published the Quality Control Handbook, which viewed quality as "fitness for use" as perceived by the customer. Like Deming, Juran was invited to Japan by JUSE in the early 1950s to conduct seminars and lectures on quality.
Juran's message on quality focuses on his belief that quality does not happen by accident—it must be planned. In addition, Juran distinguishes external customers from internal customers. Juran's view of quality consists of a quality trilogy—quality planning, quality control, and quality improvement—that can be combined with the steps that make up Juran's Quality Planning Road Map.
1. Identify who are the customers.
2. Determine the needs of those customers.
3. Translate those needs into our language.
4. Develop a product that can respond to those needs.
5. Optimize the product features so as to meet our needs as well as cus tomer needs.
6. Develop a process that is able to produce the product.
7. Optimize the process.
8. Prove that the process can produce the product under operating conditions.
9. Transfer the process to Operations.
Kaoru Ishikawa (1915- )
Kaoru Ishikawa studied under Deming and believes that quality improvement is a continuous process that depends heavily on all levels of the organization—from top management down to every worker performing the work. In Japan this belief led to the use of quality circles that engaged all members of the organization. In addition to the use of statistical methods for quality control, Ishikawa advocated the use of easy-to-use analytical tools that included cause-and-effect diagrams (called the Ishikawa diagram, or fishbone diagram, because it resembles the skeleton of a fish), the Pareto Chart, and flow charts.
Although the Ishikawa, or fishbone, diagram was introduced in an earlier chapter, it can be used in a variety of situations to help understand various relationships between causes and effects. An example of an Ishikawa diagram is illustrated in Figure 10.4. The effect is the rightmost box and represents the problem or characteristic that requires improvement. A project team could begin by identifying the major causes, such as people, materials, management, equipment, measurements, and environment, that may influence the problem or quality characteristic in question. Each major cause can then be subdivided in potential sub-causes. For example, causes associated with people may be lack of training or responsibility in identifying and correcting a particular problem. An Ishikawa diagram can be best developed by brain-storming or by using a learning cycle approach. Once the diagram is complete, the project team can investigate the possible causes and recommend solutions to correct the problems and improve the process.
Another useful tool is a Pareto diagram, which was developed by Alfred Pareto (1848-1923). Pareto studied the distribution of wealth in Europe and found that about 80 percent of the wealth was owned by 20 percent of the population. This idea has held in many different settings and has become known as the 80/20 rule. For example, 80 percent of the problems can be attributed to 20 percent of the causes.
Pareto diagrams can be constructed by (Besterfield, Besterfield-Michna et al. 1999):
1. Determining how the data will be classified. It can be done by the nature of the problem, the cause, non-conformity, or defect or bug.
2. Determining whether frequency, dollar amount, or both should be used to rank the classifications.
3. Collecting the data for an appropriate time period.
4. Summarizing the data by rank order of the classifications from largest to smallest, from left to right.
Pareto diagrams are useful for identifying and investigating the most important problems by ranking problems in descending order from left to right. For example, let's say that we have tracked all the calls to a call center over a period of one week. If we were to classify the different types of problems and graph the frequency of each type of call, we would end up with a chart similar to Figure 10.5.
As you can see, the most frequent type of problem had to do with documentation questions. In terms of quality improvement, it may suggest that the user documentation needs to be updated.
In addition, flow charts can be useful for documenting a specific process in order to understand how products or services move through various functions or operations. A flow chart can help visualize a particular process and identify potential problems or bottlenecks. Standardized symbols can be used, but are not necessary. It is more important to be able to identify problems or bottlenecks, reduce complexity, and determine who is the next customer (Besterfield, Besterfield-Michna et al. 1999).
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.