Quality Control: Chapter Outline
Quality Control: Chapter Outline
QUALITY CONTROL
CHAPTER OUTLINE
6.1 Introduction 6.7 Quality Circles
6.2 Quality 6.8 Total Quality Management (TQM)
6.3 Control 6.9 ISO 9000 Series
6.4 Inspection 6.10 Appliation ISO 9000: ISO 14000 Series
6.5 Quality Control • Exercises
6.6 Statistical Process Control • Skill Development
• Caselet
6.1 INTRODUCTION
In any business organization, profit is the ultimate goal. To achieve this, there are several
approaches. Profit may be maximized by cutting costs for the same selling price per unit. If it
is a monopolistic business, without giving much of importance to the cost reduction programs, the
price may be fixed suitably to earn sufficient profit. But, to survive in a competitive business
environment, goods and services produced by a firm should have the minimum required quality.
Extra quality means extra cost. So, the level of quality should be decided in relation to other
factors such that the product is well absorbed in the market. In all these cases, to have repeated
sales and thereby increased sales revenue, basic quality is considered to be one of the supportive
factors. Quality is a measure of how closely a good or service conforms to specified standard.
Quality standards may be any one or a combination of attributes and variables of the product
being manufactured. The attributes will include performance, reliability, appearance, commitment
to delivery time, etc., variables may be some measurement variables like, length, width, height,
diameter, surface finish, etc.
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Most of the above characteristics are related to products. Similarly, some of the quality
characteristics of services are meeting promised due dates, safety, comfort, security, less waiting
time and so forth. So, the various dimensions of quality are performance, features, reliability,
conformance, durability, serviceability, aesthetics, perceived quality, safety, comfort, security,
commitment to due dates, less waiting time, etc.
6.2 QUALITY
Different meaning could be attached to the word quality under different circumstances. The word
quality does not mean the quality of manufactured product only. It may refer to the quality of
the process (i.e., men, material, and machines) and even that of management. Where the quality
manufactured product referred as or defined as “Quality of product as the degree in which it
fulfills the requirement of the customer. It is not absolute but it judged or realized by comparing
it with some standards”.
Quality begins with the design of a product in accordance with the customer specification
further it involved the established measurement standards, the use of proper material, selection
of suitable manufacturing process etc., quality is a relative term and it is generally used with
reference to the end use of the product.
Crosby defined as “Quality is conformance to requirement or specifications”.
Juran defined as “Quality is fitness for use”. “The Quality of a product or service is the
fitness of that product or service for meeting or exceeding its intended use as required by the
customer.”
The nine fundamental factors (9 M’s), which are affecting the quality of products and services,
are: markets, money, management, men, motivation, materials, machines and mechanization.
Modern information methods and mounting product requirements.
1. Market: Because of technology advancement, we could see many new products to
satisfy customer wants. At the same time, the customer wants are also changing dynamically.
So, it is the role of companies to identify needs and then meet it with existing technologies or
by developing new technologies.
2. Money: The increased global competition necessitates huge outlays for new equipments
and process. This should be rewarded by improved productivity. This is possible by minimizing
quality costs associated with the maintenance and improvements of quality level.
3. Management: Because of the increased complex structure of business organization, the
quality related responsibilities lie with persons at different levels in the organization.
4. Men: The rapid growth in technical knowledge leads to development of human resource
with different specialization. This necessitates some groups like, system engineering group to
integrate the idea of full specialization.
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5. Motivation: If we fix the responsibility of achieving quality with each individual in the
organization with proper motivation techniques, there will not be any problem in producing the
designed quality products.
6. Materials: Selection of proper materials to meet the desired tolerance limit is also an
important consideration. Quality attributes like, surface finish, strength, diameter etc., can be
obtained by proper selection of material.
7. Machines and mechanization: In order to have quality products which will lead to
higher productivity of any organization, we need to use advanced machines and mechanize
various operations.
8. Modern information methods: The modern information methods help in storing and
retrieving needed data for manufacturing, marketing and servicing.
9. Mounting product requirements: Product diversification to meet customers taste leads
to intricacy in design, manufacturing and quality standards. Hence, companies should plan adequate
system to tackle all these requirements.
6.3 CONTROL
The process through which the standards are established and met with standards is called control.
This process consists of observing our activity performance, comparing the performance with
some standard and then taking action if the observed performance is significantly too different
from the standards.
The control process involves a universal sequence of steps as follows:
1. Choose the control object
2. Choose a unit of measure
3. Set the standard value
4. Choose a sensing device which can measure
5. Measure actual performance
6. Interpret the difference between actual and standard
7. Taking action.
6.4 INSPECTION
1. To detect and remove the faulty raw materials before it undergoes production.
2. To detect the faulty products in production whenever it is detected.
3. To bring facts to the notice of managers before they become serous to enable them
discover weaknesses and over the problem.
4. To prevent the substandard reaching the customer and reducing complaints.
5. To promote reputation for quality and reliability of product.
Advantages
1. Greater degree of inspection due to sensitive equipment.
2. Less number of inspectors and tools.
3. Equipment needs less frequency of recalibration.
4. Cost of inspection is reduced.
5. Unbiased inspection.
6. Supervision of inspectors made possible.
7. No distraction to the inspector.
Disadvantages
1. Defects of job are not revealed quickly for prevention.
2. Greater material handling.
3. High cost as products are subjected to production before they are prevented.
4. Greater delay in production.
5. Inspection of heavy work not possible.
6. Production control work is more complicated.
7. Greater scrap.
3. COMBINED INSPECTION
Combination of two methods whatever may be the method of inspection, whether floor or central.
The main objective is to locate and prevent defect which may not repeat itself in subsequent
operation to see whether any corrective measure is required and finally to maintain quality
economically.
4. FUNCTIONAL INSPECTION
This system only checks for the main function, the product is expected to perform. Thus an
electrical motor can be checked for the specified speed and load characteristics. It does not
reveal the variation of individual parts but can assure combined satisfactory performance of all
parts put together. Both manufacturers and purchasers can do this, if large number of articles
are needed at regular intervals. This is also called assembly inspection.
5. FIRST PIECE OR FIRST-OFF INSPECTIONS
First piece of the shift or lot is inspected. This is particularly used where automatic machines are
employed. Any discrepancy from the operator as machine tool can be checked to see that the
product is within in control limits. Excepting for need for precautions for tool we are check and
disturbance in machine set up, this yields good result if the operator is careful.
6. PILOT PIECE INSPECTION
This is done immediately after new design or product is developed. Manufacturer of product is done
either on regular shop floor if production is not disturbed. If production is affected to a large extent,
the product is manufactured in a pilot plant. This is suitable for mass production and products involving
large number of components such as automobiles aeroplanes etc., and modification are design or
manufacturing process is done until satisfactory performance is assured or established.
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7. FINAL INSPECTION
This is also similar to functional or assembly inspection. This inspection is done only after completion
of work. This is widely employed in process industries where there is not possible such as,
electroplating or anodizing products. This is done in conjunction with incoming material inspection.
QC is a broad term, it involves inspection at particular stage but mere inspection does not mean
QC. As opposed to inspection, in quality control activity emphasis is placed on the quality future
production. Quality control aims at prevention of defects at the source, relies on effective
feedback system and corrective action procedure. Quality control uses inspection as a valuable tool.
According to Juran “Quality control is the regulatory process through which we measure
actual quality performance, compare it with standards, and act on the difference”. Another
definition of quality control is from ANSI/ASQC standard (1978) quality control is defined as
“The operational techniques and the activities which sustain a quality of product or service that
will satisfy given needs; also the use of such techniques and activities”.
Alford and Beatty define QC as “In the broad sense, quality control is the mechanism by
which products are made to measure up to specifications determined from customers, demands
and transformed into sales engineering and manufacturing requirements, it is concerned with
making things right rather than discovering and rejecting those made wrong”.
6. Decide on salvage method i.e., to decide how the defective parts are disposed of, entire
scrap or rework.
7. Coordination of quality problems.
8. Developing quality consciousness both within and outside the organization.
9. Developing procedures for good vendor-vendee relations.
1. PARETO CHARTS
Pareto charts help prioritize by arranging them in decreasing order of importantce. In an environment
of limited resources these diagrams help companies to decide on the order in which they should
address problems. The Pareto analysis can be used to identify the problem in a number of forms.
(a) Analysis of losses by material (number or past number).
(b) Analysis of losses by process i.e., classification of defects or lot rejections in terms of
the process.
(c) Analysis of losses by product family.
(d) Analysis by supplier across the entire spectrum of purchases.
(e) Analysis by cost of the parts.
(f) Analysis by failure mode.
Example: The Fig. 6.1 shows a Pareto chart of reasons for poor quality. Poor design will
be the major reason, as indicated by 64%. Thus, this is the problem that the manufacturing unit
should address first.
A — Poor Design B — Defective Parts
C — Operator Error D — Wrong Dimensions
E — Surface Abrasion F — Machine Calibrations
G — Defective Material
2. CHECK SHEETS
Check sheets facilitate systematic record keeping or data collection observations are recorded as
they happen which reveals patterns or trends. Data collection through the use of a checklist is
often the first step in analysis of quality problem. A checklist is a form used to record the
frequency of occurrence of certain product or service characteristics related to quality. The
characteristics may be measurable on a continuous scale such as weight, diameter, time or length.
Example: The table is a check sheet for an organization’s computer related problems.
7. CONTROL CHARTS
It distinguish special causes of variations from common causes of variation. They are used to
monitor and control process on an ongoing basis. A typical control chart plots a selected quality
characteristic found from sub-group of observations as a function of sample number. Characteristics
such as sample average, sample range and sample proportion of non-conforming units are plotted.
The centre line on a control chart represents the average value of characteristics being plotted.
Two limits know as the upper control limit (UCL) and lower control limit (LCL) are also shown
on control charts. These limits are constructed so that if the process is operating under a stable
system of chance causes, the problem of an observation falling outside these limits is quite small.
Figure 6.7 shows a generalized representation of a control chart.
Control chart shows the performance of a process from two points of view. First, they show
a snapshot of the process at the moment the data are collected. Second, they show the process
trend as time progresses. Process trends are important because they help in identifying the out-
of-control status if it actually exists. Also, they help to detect variations outside the normal
operational limits, and to identify the cause of variations. Fig. 6.7 shows a generalised representation
of a control chart.
They are difficult to trace and difficult to control, even under best condition of production.
Even though, it is possible to trace out, it is not economical to eliminate. The chance causes
results in only a minute amount of variation in process. Variation in chance causes is due to
internal factors only the general pattern of variation under chance causes will follow a stable
statistical distribution (normal distribution). Variation within the control limits means only random
causes are present.
(B) ASSIGNABLE CAUSES
These are the causes which creates ordinary variation in the production quality.
Assignable cause’s variation can always be traced to a specific quality. They occur due to—
1. Lack of skill in operation
2. Wrong maintenance practice
3. New vendors
4. Error in setting jigs and fixtures
5. Raw material defects
Variation due to these causes can be controlled before the defective items are produced.
Any one assignable cause can result in a large amount of variation in process. If the assignable
causes are present, the system will not follow a stable statistical distribution. When the actual
variation exceeds the control limits, it is a signal that assignable causes extend the process and
process should be investigated.
where X = central line of the chart and the average of past sample mean’s, and
A 2 = constant to provide three-sigma limits for the process mean.
(b) Standard Deviation of the Process, σ , Known
Control charts for variables (with the standard deviation of the process, σ, known) monitor
the mean, X , of the process distribution.
The control limits are:
UCL = X + 2σ X
and LCL = X − 2σ X
where X = centre line of the chart and the average of several past sample means, Z
is the standard normal deviate (number of standard deviations from
the average),
σ X = σ / n and is the standard deviation of the distribution of sample means,
and n is the sample size
Procedures to construct X-chart and R-chart
1. Identify the process to be controlled.
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and LCLp = p − Zσ p
where z is the normal deviate (number of standard deviations from the average).
Σ X = 76 Σ R = 26
From the X chart, it appears that the process became completely out of control for 4th
sample over labels.
SOLUTION:
Date Number of Number of Fraction
pieces defective pieces defective % Defective
inspected found p = (b)/(a) loop
(a) (b)
November 4 300 25 0.0834 8.34
November 5 300 30 0.1000 10.00
November 6 300 35 0.1167 11.67
November 7 300 40 0.1333 13.33
November 8 300 45 0.1500 15.00
November 10 300 35 0.1167 11.67
November 11 300 40 0.1333 13.33
November 12 300 30 0.1000 10.00
November 13 300 20 0.0666 6.66
November 14 300 50 0.1666 16.66
Therefore,
>
p 1− p C =
>
0.1167 × 1 − 0.1167 C
n 300
0.1167 × 0.8333
= = 0.01852
300
and 3.
>
p 1− p C = 0.01852 × 3 = 0.05556
n
Thus, UCL = 0.1167 + 0.05556 = 0.17226 = 0.1723 (Approx.)
LCL = 0.1167 – 0.05566 = 0.06114 = 0.0611 (Approx.)
Conclusion: All the samples are within the control limit and we can say process is under
control.
TYPES OF SAMPLING ERRORS
There are two types of errors. They are type-I and type-II that can occur when making
inferences from control chart.
Type-I: Error or α-error or Level of Significance
Reject the hypothesis when it is true.
This results from inferring that a process is out of control when it is actually in control. The
probability of type-I error is denoted by α, suppose a process is in control. If a point on the
control chart falls outside the control limits, we assume that, the process is out of control.
However, since the control limits are a finite distance (3σ) from the mean. There is a small
chance about 0.0026 of a sample falling outside the control limits. In such instances, inferring the
process is out of control is wrong conclusion.
The control limits could be placed sufficiently far apart say 4 or 5σ stand deviations on each
side of the central lines to reduce the probability of type-I error.
Type-II: Error or β-error
Accept the hypothesis when it is false.
This results from inferring that a process is in control when it is really out of control. If no
observations for outside the control limits we conclude that the process is in control while in
reality it is out control. For example, the process mean has changed.
# PRODUCTION AND OPERATIONS MANAGEMENT
The process could out of control because process variability has changed (due to presence
of new operator). As the control limits are placed further apart the probability of type-II error
increases. To reduce the probability of type-II error it tends to have the control limits placed
closer to each other. This increases the probability of type-I error. Thus, the two types of errors
are inversely related to each other as the control limits change. Increasing the sample size can
reduce both α and β.
each unit.
Hence, acceptance-sampling procedure has lot of scope in practical application. Acceptance
sampling can be used for attributes as well as variables.
Acceptance sampling deals with accept or reject situation of the incoming raw materials and
finished goods. Let the size of the incoming lot be N and the size of the sample drawn be n.
The probability of getting a given number of defective goods parts out a sample consisting of n
pieces will follow binomial distribution. If the lot size is infinite or very large, such that when a
sample is drawn from it and not replaced, then the usage of binomial distribution is justified.
Otherwise, we will have to use hyper-geometric distribution.
Specifications of a single sampling plan will contain a sample size (n) and an acceptance
number C. As an example, if we assume the sample size as 50 and the acceptance number as
3, the interpretation of the plan is explained as follows: Select a sample of size 50 from a lot and
obtain the number of defective pieces in the sample. If the number of defective pieces is less
than or equal to 3, then accept the whole lot from which the sample is drawn. Otherwise, reject
the whole lot. This is called single sampling plan. There are several variations of this plan.
In this process, one will commit two types of errors, viz., type-I error and type-II error. If
the lot is really good, but based on the sample information, it is rejected, then the supplier/
producer will be penalized. This is called producer’s risk or type-I error. The notation for this
error is α. On the other hand, if the lot is really bad, but it is accepted based on the sample
information, then the customer will be at loss. This is called consumer’s risk or type-II error. The
notation for this error is β. So, both parties should jointly decide about the levels of producer’s
risk (α) and consumer’s risk (β) based on mutual agreement.
OPERATING CHARACTERISTIC CURVE (O.C. CURVE)
The concepts of the two types of risk are well explained using an operating characteristic curve.
This curve will provide a basis for selecting alternate sample plans. For a given value of sample
size (n), acceptance number (C), the O.C. curve is shown in Fig. 6.8.
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In Fig. 6.9, per cent defective is shown on x-axis. The probability of accepting the lot for
given per cent defective is shown on y-axis. The value for per cent defective indicates the
quality level of the lot inspected. AQL means acceptable quality level and LTPD indicates lot
tolerance per cent defectives. These represent quality levels of the lot submitted for inspection.
If the quality level of the lot inspected is at AQL or less than AQL, then the customers are
satisfied with the quality of the lot. The corresponding probability of acceptance is called
1 – α. On the other hand, if the quality level is more than or equal to LTPD, the quality of
the lot is considered to be inferior from consumer’s viewpoint. The corresponding probability
of acceptance of the lot is called β. The quality levelling between AQL and LTPD is called
indifferent zone.
But, the values of n and C should be integers. So, it will be very difficult to find n and C
exactly for the given parameters of the design. Hence, we will have to look for approximate
integer values for n and C such that the O.C. curve more or less passes through the above two
coordinates.
6.7.1 Benefits of QC
The most important benefit of quality circles is their effect on people’s attitudes fall into three
categories:
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The benefits of TQM can be classified into the following two categories:
1. Customer satisfaction oriented benefits.
2. Economic improvements oriented benefits.
1. Customer satisfaction oriented benefits: The benefits under this category are listed below:
(a) Improvement in product quality.
(b) Improvement in product design.
(c) Improvement in production flow.
(d) Improvement in employee morale and quality consciousness.
(e) Improvement of product service.
(f) Improvement in market place acceptance.
2. Economic improvements oriented benefits: The benefits under this category are as
follows:
(a) Reductions in operating costs.
(b) Reductions in operating losses.
(c) Reductions in field service costs.
(d) Reductions in liability exposure.
ISO 9000 This provides guidelines on selection and use of quality management and quality assurance
standards.
ISO 9001 It has 20 elements covering design, development, production, installation and servicing.
ISO 9002 It has 18 elements covering production and installation. It is same as ISO 9001 without the
first two tasks, viz., design and development. This is applicable for the units excluding R
& D functions.
ISO 9003 It has 12 elements covering final inspection and testing for laboratories and warehouses etc.
ISO 9004 This provides guidelines to interpret the quality management and quality assurance. This
also has suggestions which are not mandatory.
1. Selection of appropriate standard from ISO 9001, ISO 9002 and ISO 9003 using the
guidelines given in ISO 9000.
2. Preparation of quality manual to cover all the elements in the selected model.
3. Preparation of procedures and shop floor instructions which are used at the time of
implementing the system. Also document these items.
4. Self-auditing to check compliance of the selected model.
5. Selection of a registrar and making application to obtain certificate for the selected model.
A registrar is an independent body with knowledge and experience to evaluate any one of
the three models of the company’s quality system (ISO 9002). Registrars are approved and
certified by acridities.
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The registrar, on successful verification and assessment will register the company. Before
selecting a registrar, one should know the following:
1. Accreditors of the registrar.
2. Background and credibility of the registrar.
3. Cost of registration through the proposed registrar.
4. Expected harmony between the company and the potential registrar while working towards
implementing ISO model in the company.
OVERVIEW
The ISO 14000 series of environmental management standards are intended to assist organizations
manage the environmental effect of their business practices. The ISO 14000 series is similar to
the ISO 9000 series published in 1987. The purpose of the ISO 9000 series is to encourage
organizations to institute quality assurance management programs. Although ISO 9000 deals with
the overall management of an organization and ISO 14000 deals with the management of the
environmental effects of an organization, both standards are concerned with processes, and there
is talk of combining the two series into one.
Both series of standards were published by ISO, the International Organization for
Standardization. The purpose of ISO is to facilitate international trade and cooperation in commercial,
intellectual, scientific and economic endeavors by developing international standards. ISO originally
focused on industrial and mechanical engineering standards. Now, it has ventured into setting
standards for an organization’s processes, policies, and practices.
The environmental standards of ISO 14000 deal with how a company manages the
environment inside its facilities and the immediate outside environment. However, the standards
also call for analysis of the entire life cycle of a product, from raw material to eventual
disposal. These standards do not mandate a particular level of pollution or performance, but
focus on awareness of the processes and procedures that can effect the environment. It should
be noted that adherence to the ISO 14000 standards does not in anyway release a company
from any national or local regulations regarding specific performance issues regarding the
environment.
Some of the standards in the ISO 14000 series are:
l ISO 14001—Specification of Environmental Management Systems
l ISO 14004—Guideline Standard
l ISO 14010 through ISO 14015—Environmental Auditing and Related Activities
l ISO 14020 through ISO 14024—Environmental Labelling
l ISO 14031 through ISO 14032—Environmental Performance Evaluation
l ISO 14040 through ISO 14043—Life Cycle Assessment
l ISO 14050—Terms and Definitions
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Although the ISO 14000 standards are similar to the ISO 9000 standards, the nature of the
environmental standards creates a need for people who are technical environment professionals
in addition to those required to maintain the documentation necessary for certification.
ANNEXURE–I
ANNEXURE–II
List of Certification Bodies for Environmental Management Systems for 14000 Series:
Accrn. Name Address Website &
No. Phone
EM001 Det Norske Veritas AS 203, Savitri Sadan 1, www.dnv.com
(Certification Services, India) 11, Preet Vihar Community Tel +91 11 2202 3242
Centre, New Delhi–110 092 India Fax +91 11 2202 3244
EM002 TUV India Pvt. Ltd. 801, Raheja Plaza–I, L.B.S Marg, www.tuvindia.co.in
Ghatkopar (West), Tel + 91 22 6647 7000
Mumbai–400 086 Fax + 91 22 6647 7009
EM003 International Certification 22/23, Goodwill Premises, www.icsasian.com
Services Pvt. Ltd. Swastik Estate, 178, CST Road, Tel + 91 22 2650 7777-82
Kalina, Santacruz (East) Fax + 91 22 2650 7777-82
Mumbai–400 098 (Maharashtra) extension–333
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EXERCISES
Section A
1. Define quality.
2. What do you mean by inspection?
3. Mention the objectives of inspection.
4. Mention any four drawbacks of inspection.
5. What do you mean by ‘control’?
6. Mention the control process.
7. Define ‘quality control’.
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Skill Development
FAST FOOD RESTAURANT VISIT: Get the information for the following questions:
CASELET
The Roots of Quality Control in Japan: An Interview with W. Edwards Deming Dr.
Deming, you said it will take about thirty years for the United States to catch up with Japan.
This is a somewhat pessimistic view of the United States. Would you elaborate on this point?
I don’t really know how long it will take. I think it will take thirty years; it should take all
of thirty years. I don’t think America will catch up with Japan because, so far as I can see, the
Japanese system has the advantage over the American system. For example, consider the
principle of constancy of purpose, which is absolutely vital and is number one in my Fourteen
Points. It refers to planning for the future with constancy of purpose.
Now in America some companies certainly do have constancy of purpose, but most do not.
Most have a president who was brought in to improve the quarterly dividend. That’s his job; you
can’t blame him for doing it. He’ll be there a while, and then go on to some other place to raise the
quarterly dividend there. For instance, someone told me that there were five candidates for
president of one of the biggest and most famous of America’s companies. When one of them was
selected, the other four resigned from the company. Such a thing could not happen in Japan. So you
see, the American system is so set up that it cannot use the talents of its people. That’s very serious.
People cannot work for the company. They only get out their quota. You can’t blame a
person for doing the job that is cut out for him since he has to pay his rent and take care of his
family. You can’t blame him, but you can blame management for a situation in which people
cannot work for the company. An employee cannot remain on the job to find out for sure what
the job is. The foreman does not have time to help him. As a matter of fact, the foreman may
decide a particular person cannot do the job at all and perhaps should be let go. People report
equipment out of order and nothing happens. If someone reports equipment out of order more
than three or four times, that person is considered a troublemaker. If he tries to find out more
about the job from the-foreman, he is considered a troublemaker. People find out that it is
impossible to do what is best for the company or do their best work for the company. They just
have to carryon as best they can, given the handicaps.
In addition, people have to use materials that are not suited to the job, and this creates a
sense of desperation. There isn’t much they can do about it-if they report, or try to do something,
they are labeled troublemakers. This situation does not exist in Japan. There, everyone is willing
to help everyone else.
Dr. Deming, as you’ve mentioned, one of the Fourteen Points emphasizes constancy
of purpose. Personally, I learned a great deal from that. Could you elaborate a little more
on that point?
A good way to assess a company’s constancy of purpose is to evaluate the source of
ultimate authority in that company. To whom does the president of the company answer? Does
anybody own the company? Do the owners answer to the stockholders? The stockholders,
thousands of them, who want dividends-to whom do they answer? Do they answer to their
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companies a great deal of money and causing a lot of waste in out-of-order machines and
rework. Fear causes wasted human effort and wasted materials. It arises because people do not
understand their jobs, and have no place to go for help. I don’t know of any statistical technique
by which to establish constancy of purpose and eliminate fear.
Statistical techniques are certainly necessary for purchasing and selling materials, since
without them you cannot measure or understand the quality of what you are buying. American
industry and American government, especially the military, are being rooked by the practice of
purchasing from the lowest bidder. They are forcing everyone to conform to the lowest price.
That is wrong because there is no such thing as price without a measure of quality. Purchasing
departments are not prepared to measure quality; they only know arithmetic. They understand
that thirteen cents less per thousand pieces translates into so many thousands of dollars per year.
But they don’t understand that the quality of these pieces may be so bad that it will cause a great
deal of trouble.
You already referred to American management’s lack of understanding of quality
control for production processes. Could we go back to that?
Most American managers ‘have no idea how deep the trouble is, and those who do have
no idea of what can be done. There is no way for them to learn what to do that I know of.
In the United States, I have been intrigued by the notion of the trade-off between
quality and price and the trade-off between productivity and quality. Here these are seen
as different things, and yet your message, which you say the Japanese have accepted, is
not to treat quality and price, and productivity and quality, as trade-off. Why has this been
so difficult for Americans to understand?
Americans simply have no idea of what quality is. Ask almost any plant manager in this
country and he’ll say it is a trade-off, that you have one or the other. He does not know that
you can have both, and that once you have quality, then you can have productivity, lower costs,
and a better market position. Here, people don’t know this, but they know it in Japan. In 1950
in Japan, 1 was able to get top management together for conferences to explain what they had
to do. No such gathering has ever been held in America and I don’t know if anybody has any
way of organizing one. In Japan, Mr. Ishikawa of JUSE organized conferences with top
management in July 1950, again in August, then six months later, and so on. Top management
understood from the beginning what they must do, and that as they improved quality, productivity
would increase. They had some examples within six months, and more within a year. News of
these examples spread throughout the country, and everyone learned about them because Japanese
management was careful to disseminate the information.
The supposition of so many Americans that better quality means more gold plating or
polishing, more time spent to do better work, is just not true. Quality improvement means
improving the process so it produces quality without rework, quickly and directly. In other words,
quality means making it right the first time so you don’t have to rework it. By improving the
process, you decrease wasted human effort, wasted machine time and materials, and you get a
better product. If you decrease rework by six percent, you increase the productivity of a
production line by six percent; and increase its capacity by the same amount. Therefore, in many
cases, increased capacity could be achieved in this country simply by reducing wasted human
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effort, machine time, and materials. In this country, better use of existing machinery-not new
machinery or automation-is the answer.
How do you respond to American management’s idea that mechanization and automation
are cost-saving devices rather than quality-improvement devices? In Japan mechanization
and automation are seen as quality improvement, obviously with cost-saving benefits on the
side. But in Japan they’re working toward mechanization, automation, and the use of
robots as quality-improvement devices.
New machinery and automation very often bring higher costs, not lower ones. They also
bring headaches and troubles, which a company is unprepared to handle. The result is that they
decrease production, increase costs, lower quality, and create problems the company never had
before. The best thing to do is learn to use what you have efficiently. Once you learn that, then
there’s a possibility you may learn to use more sophisticated equipment. I’m afraid that time is
a long way off for this country.
In Japan, now that they’re using present equipment successfully and efficiently and cannot
extract any more capacity, the only way to increase production is with new automated machinery,
because there are no more people to employ. There are no employment agencies in Japan where
you can find people to work in plants. In the United States, on the other hand, there are seven
million unemployed, maybe half of whom are actually able and willing to work, and are good workers.
Back in the 1950s, you made a prophetic statement when you told the Japanese that
if they pursued this quality-first approach, Japan would dominate the world market and
everyone, including the United States, would demand protection from Japanese imports.
Did you make that prediction because you were convinced that American industries were
not pursuing the proper course of action in this field?
No, I saw, through the conferences with the top management in Japan, that Japan could do
a better job with quality control than America had ever done. Americans had not done well with
quality control because they thought of it as a bag of techniques. As a group, management in
America never knew anything about quality control. What you had in America, from the intensive
statistical courses I started at Stanford University, were brilliant fires and applications all over the
country. But when a person changed jobs, the fire burned out and there was nobody in management
to keep it going.
We held the first course at Stanford in July 1942, and seventeen people came. Two months
later, Stanford University gave another course, and later other universities gave courses. I taught
twenty-three of them myself. By that time, they would be attended by fifty or sixty or seventy
people. The War Department also gave courses at defense suppliers’ factories. Quality control
became a big fire. As a matter of fact, courses were given to a total of ten thousand people from
eight hundred companies, but nothing happened.
Brilliant applications burned, sputtered, fizzled, and died out. What people did was solve
individual problems; they did not create a structure at the management level to carry out their
obligations. There was not sufficient appreciation at the management level to spread the methods
to other parts of the company.
The man who saw these things first was Dr. Holbrook working at Stanford. He knew the
job that management must carry out. He saw it first. We tried, but our efforts were feeble, and
QUALITY CONTROL $'
the results were zero. We did not know how to do it. In our eight-day courses, we would ask
companies to send their top people, but top people did not come. Some came for one afternoon.
You don’t learn this in one afternoon. So quality control died out in America.
Let me put it this way: more and more, quality control in America became merely statistical
methods-the more applications, the better. Instead of finding many problems, we need to find the
big problem. Where are the problems? Let’s find the big problems first. What methods will help?
Maybe no methods will help. Let’s be careful-so many things that happen are just carelessness.
We don’t need control charts for them. We just need some action from management to cut that
carelessness. Wrong design? That’s management’s fault. Recall of automobiles? Management’s
fault, not the workers’ fault.
People started control charts everywhere. The Ford Company had charts all over their
assembly plants across the country, one chart on top of another. Quality control “experts” sat
and made more and more charts. One man told me his job was to count the number of points
out of control every day. But what happened was nothing. Quality control drifted into so-called
quality control departments that made charts. They would look at the charts and perhaps tell
somebody if something was out of control. The only people who could do anything never saw
the charts and never learned anything. That included everybody. Top management never heard
or learned anything; people on the production lines did not learn anything. That was totally wrong,
because the first step is for management to take on my Fourteen Points, namely, to gain purpose.
The Japanese had already accomplished this task. The Japanese were all ready to work on
training. JUSE was ready. But in 1950, quality control had practically died out in America. When
I went to Japan in 1950, I said to myself, “Why repeat in Japan the mistakes that were made
in America? I must get hold of top management and explain to them what their job is, because
unless they do their part, these wonderful engineers will accomplish nothing. They will make
business applications and then the fire will burn out.”
It was at that time I was fortunate enough to meet Mr. Ichiro Ishikawa, who, after three
conferences, sent telegrams to forty-five men in top management telling them to come and hear
me. Well, I did a very poor job, but I explained what management must do, what quality control
is from a management standpoint. For example, I told them to improve incoming materials, which
means working with vendors as if they were members of your family, and teaching them. I told
them they must learn statistical control of quality. It’s a big job.
Incoming materials were wretched, deplorable, and nobody seemed to care. They just
thought that industry consisted of taking what you got and doing the best you could. But I
explained that that won’t do because now you must compete. The consumer you never thought
of-to whom you must now export-is in America, Canada, and Europe. Improve agriculture, yes,
but the better way-the quicker way, the most effective way-is to export quality. They thought
it could not be done. They said they had never done it, that they had a bad reputation. I told them,
you can do it-you have to do it, you must. You must learn statistical methods. These methods
of quality control must be a part of everybody’s job.
At that time, consumer research was unknown in Japan, but the aim of making products was
to help somebody. I think they had never thought of the consumer as the most important end of
the production line. I told them they must study the needs of the consumer. They must look ahead
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one year, three years, eight years, to be ahead in new services and new products. As they
learned, they must teach everyone else. Well, that was the natural Japanese way. I did not know
how much, but I gave them that advice.
How did you develop your own views, not only of statistical control methods, but also
your central message that quality determines productivity?
By simple arithmetic, if you have material coming in that is difficult to use -and there was
plenty of it coming to Japan in 1950-you will produce a lot of wasted human effort, machine time,
and materials. There will be a lot of rework, with people occupying time trying to overcome the
deficiencies of defective incoming material. So if you have better material coming in, you eliminate
waste; production, quality, and productivity go up; costs go down; and your market position is improved.
Well I think that I have put some principles on paper that everybody knew but that, in a
sense, nobody knew. They had never been put down on paper. I stated those principles in Japan
in the summer of 1950, some for the first time. They’re obvious, perhaps, as Newton’s laws of
motion are obvious. But like Newton’s laws, they’re not obvious to everyone.
Is there a company in the United States that has heeded your message? Are there
some isolated cases?
The Nashua Corporation in Nashua, New Hampshire, under the direction of its former president,
William E. Conway, was off to a good start. Mr. Conway himself was doing a great deal, not only
for his corporation, but for American industry. Almost every day, visiting teams of ten to fifteen
people from other companies came to Mr. Conway’s offices and plants to hear about what he was
doing. He was getting a very good start. The entire company was meant for quality.
Why is he so different from other American managers?
I don’t know. There are other good companies. Some of them have started lately and they
are pushing along one of the great problems is finding competent statistical consultants. There
are very few that can give competent training. One company I work with must train fifty
thousand people to discover problems how long do you think it will take the purchasing department
to learn to take quality into consideration along with price? It will take five years or more, and
at the end of five years a lot of people will be gone. They will have other jobs. It’s going to take
a long time. There is no quick road.
Discussion Questions
(a) Dr. Deming seems to put more emphasis on corporate culture than on quality control
methodology. What is necessary to change a corporate culture to be as quality conscious
as Deming feels is necessary to compete in global markets?
(b) What are the relationships between quality and productivity?
(c) If automation continues to be installed in both Japanese and U.S. industry, will the quality
problem be solved by technology?
(d) What are the prospects for making the quality of U.S. manufactured products companies?
How can such a goal be achieved, given the current Japanese lead?
[Source: These edited interviews were given by Dr. Deming to the Pacific Basin Center Foundation
on September 8, 1981, and July 28,1984]