Foundations of

Quality
Management

MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 9e, © 2014 Cengage Publishing 1
 Leaders in the Quality Revolution
 W. Edwards Deming
 Joseph M. Juran
 Philip B. Crosby

 Armand V. Feigenbaum
 Kaoru Ishikawa

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 Deming Philosophy
 The Deming philosophy focuses on continual
improvements in product and service quality by
reducing uncertainty and variability in design,
manufacturing, and service processes, driven by
the leadership of top management.

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 Deming Chain Reaction
Improve quality

Costs decrease

Productivity improves

Increase market share with better

quality and lower prices

Stay in business

Provide jobs and more jobs

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 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.
3. Understand the purpose of inspection.
4. End business practices driven by price alone.
5. Constantly improve system of production
and service.
6. Institute training.
7. Teach and institute leadership.
8. Drive out fear and create trust.

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 Deming’s 14 Points (2 of 2)
9. Optimize team and individual efforts.
10. Eliminate exhortations for work force.
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.

www.deming.org

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 Deming’s System of Profound
Knowledge
 Appreciation for a system
 Understanding variation
 Theory of knowledge
 Psychology

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 Systems
 Most organizational processes are
cross-functional
 Parts of a system must work together
 Every system must have a purpose
 Management must optimize the
system as a whole

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 Variation
 Many sources of uncontrollable
variation exist in any process
 Excessive variation results in product
failures, unhappy customers, and
unnecessary costs
 Statistical methods can be used to
identify and quantify variation to help
understand it and lead to
improvements

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 Theory of Knowledge
 Knowledge is not possible without
theory
 Experience alone does not establish
a theory, it only describes
 Theory shows cause-and-effect
relationships that can be used for
prediction

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 Psychology
 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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 Juran Philosophy
 Juran proposed a simple definition of quality:
“fitness for use.” This definition of quality
suggests that it should be viewed from both
external and internal perspectives; that is, quality
is related to “(1) product performance that results
in customer satisfaction; (2) freedom from
product deficiencies, which avoids customer
dissatisfaction.”

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 Juran’s Quality Trilogy
 Quality planning
 Quality control
 Quality improvement

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 Juran’s Breakthrough Sequence
 Proof of the Need
 Project Identification
 Organization for Breakthrough
 Diagnostic Journey
 Remedial Journey
 Holding the Gains

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 Crosby Philosophy
“Quality is free . . .
... It’s not a gift, but it is free. What
costs money are the unquality things -- all
the actions that involve not doing jobs
right the first time.”

15
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 Crosby’s Absolutes of Quality
Management
 Quality means conformance to requirements
 Problems are functional in nature
 There is no optimum level of defects
 Cost of quality is the only useful measurement
 Zero defects is the only performance standard

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 A.V. Feigenbaum
 Three Steps to Quality
 Quality Leadership, with a strong focus on
planning
 Modern Quality Technology, involving the
entire work force
 Organizational Commitment, supported
by continuous training and motivation

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 Kaoru Ishikawa
 Instrumental in developing Japanese
quality strategy
 Influenced participative approaches
involving all workers
 Advocated the use of simple visual
tools and statistical techniques

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 Total Quality
 Principles – foundation of the philosophy
 Practices – activities by which principles are
implemented
 Techniques – tools and approaches to make
practices effective

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 Core Quality Management
Principles
 Customer focus
 Teamwork
 Continuous improvement

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 ISO 9000:2000 Quality
Management Principles
 Customer Focus
 Leadership
 Involvement of People
 Process Approach
 System Approach to Management
 Continual Improvement
 Factual Approach to Decision Making
 Mutually Beneficial Supplier Relationships
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 Customer Focus Practices
 Researching and understanding customer needs and
expectations.
 Ensuring that the objectives of the organization are linked
to customer needs and expectations.
 Communicating customer needs and expectations
throughout the organization.
 Measuring customer satisfaction and acting on the results.
 Systematically managing customer relationships.
 Ensuring a balanced approach between satisfying
customers and other interested parties (such as owners,
employees, suppliers, financiers, local communities and
society as a whole).
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 Leadership Practices
 Considering the needs of all interested parties including
customers, owners, employees, suppliers, financiers, local
communities and society as a whole.
 Establishing a clear vision of the organization’s future.
 Setting challenging goals and targets.
 Creating and sustaining shared values, fairness and ethical
role models at all levels of the organization.
 Establishing trust and eliminating fear.
 Providing people with the required resources, training and
freedom to act with responsibility and accountability.
 Inspiring, encouraging, and recognizing people’s
contributions.
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 Involvement of People Practices
 People understanding the importance of their contribution
and role in the organization.
 People identifying constraints to their performance.
 People accepting ownership of problems and their
responsibility for solving them.
 People evaluating their performance against their personal
goals and objectives.
 People actively seeking opportunities to enhance their
competence, knowledge, and experience.
 People freely sharing knowledge and experience.
 People openly discussing problems and issues.

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 Process Approach Practices
 Systematically defining the activities necessary to obtain a
desired result.
 Establishing clear responsibility and accountability for
managing key activities.
 Analyzing and measuring of the capability of key activities.
 Identifying the interfaces of key activities within and
between the functions of the organization.
 Focusing on the factors such as resources, methods, and
materials that will improve key activities of the
organization.
 Evaluating risks, consequences, and impacts of activities on
customers, suppliers, and other interested parties.
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 System Approach to
Management Practices
 Structuring a system to achieve the organization’s objectives in the
most effective and efficient way.
 Understanding the interdependencies between the processes of the
system.
 Structured approaches that harmonize and integrate processes.
 Providing a better understanding of the roles and responsibilities
necessary for achieving common objectives and thereby reducing
cross-functional barriers.
 Understanding organizational capabilities and establishing resource
constraints prior to action.
 Targeting and defining how specific activities within a system should
operate.
 Continually improving the system through measurement and
evaluation.
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 Continual Improvement
Practices
 Employing a consistent organization-wide approach to
continual improvement of the organization’s performance.
 Providing people with training in the methods and tools of
continual improvement.
 Making continual improvement of products, processes,
and systems an objective for every individual in the
organization.
 Establishing goals to guide, and measures to track,
continual improvement.
 Recognizing and acknowledging improvements.

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 Factual Approach to Decision
Making Practices
 Ensuring that data and information are sufficiently
accurate and reliable.
 Making data accessible to those who need it.
 Analyzing data and information using valid methods.
 Making decisions and taking action based on factual
analysis, balanced with experience and intuition.

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 Mutually Beneficial Supplier
Relationships Practices
 Establishing relationships that balance short-term
gains with long-term considerations.
 Pooling of expertise and resources with partners.
 Identifying and selecting key suppliers.
 Clear and open communication.
 Sharing information and future plans.
 Establishing joint development and improvement
activities.
 Inspiring, encouraging, and recognizing
improvements and achievements by suppliers.
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 Statistical Thinking
 All work occurs in a system of interconnected
processes
 Variation exists in all processes
 Understanding and reducing variation are the
keys to success

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 Sources of Variation in Production
Processes
Measurement
Operators Methods
Materials Instruments

INPUTS PROCESS OUTPUTS

Tools Human
Machines Environment Inspection
Performance

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 Problems Created by Variation
 Variation increases unpredictability.
 Variation reduces capacity utilization.
 Variation contributes to a “bullwhip” effect.
 Variation makes it difficult to find root
causes.
 Variation makes it difficult to detect
potential problems early.

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 Types of Variation
 Uncontrollable variation (common
causes) are a natural part of a process
 Special (assignable) causes of
variation can be recognized and
controlled
 Failure to understand these
differences can increase variation in a
system
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 Two Fundamental Management
Mistakes
1. Treating as a special cause any fault,
complaint, mistake, breakdown, accident or
shortage when it actually is due to common
causes
2. Attributing to common causes any fault,
complaint, mistake, breakdown, accident or
shortage when it actually is due to a special
cause

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 Deming’s Red Bead Experiment –
Round 1

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 Deming’s Red Bead Experiment –
Round 2

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 Deming’s Red Bead Experiment –
Round 3

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 Deming’s Red Bead Experiment –
Round 4

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 Control Chart of Results

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 Lessons Learned
 Quality is made at the top.
 Rigid procedures are not enough.
 People are not always the main source of
variability.
 Numerical goals are often meaningless.
 Inspection is expensive and does not
improve quality.

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 Illustration of Funnel Rules

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 Simulated Results of Funnel
Experiment

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part. 42
 Quality Management Systems
 Quality Management System (QMS) - a mechanism
for managing and continuously improving core
processes to "achieve maximum customer satisfaction
at the lowest overall cost to the organization.”
 Objectives
 Higher product conformity and less variation.
 Fewer defects, waste, rework, and human error.
 Improved productivity, efficiency, and effectiveness.

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 Quality Management Systems
 Quality Policy – a formal document that demonstrates
a commitment to achieve high quality and meeting
customers expectations
 Quality Manual – a permanent reference for
implementing and maintaining the system.
 Internal Audit – identifying whether documented
procedures are being followed and are effective , and
reporting the issues to management for corrective
action.

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 ISO 9000:2000 Objectives
1. Achieve, maintain, and seek to continuously improve
product quality (including services) in relationship to
requirements.
2. Improve the quality of operations to continually meet
customers’ and stakeholders’ stated and implied needs.
3. Provide confidence to internal management and other
employees that quality requirements are being fulfilled and
that improvement is taking place.
4. Provide confidence to customers and other stakeholders
that quality requirements are being achieved in the delivered
product.
5. Provide confidence that quality system requirements are
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
part.
 ISO 9000:2000 Documents
1. ISO 9000:2005—Fundamentals and vocabulary: This
document provides fundamental background information
and establishes definitions of key terms used in the
standards.
2. ISO 9001:2008—Requirements: This is the core document
that provides the specific requirements for a quality
management system to help organizations consistently
provide products that meet customer and other regulatory
requirements.
3. ISO 9004:2009—Guidelines for Performance
Improvements: This document provides guidelines to assist
organizations in improving and sustaining their quality
management systems.
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part. 46
 ISO 9001:2008
 Management Responsibility addresses what top management
must do to ensure an effective quality system.
 Resource Management ensures that an organization provides
sufficient people, facilities, and training resources.
 Product Realization refers to controlling the
production/service process from receipt of an order or quote
through design, materials procurement, manufacturing or
service delivery, distribution, and subsequent field service.
 Measurement, Analysis, and Improvement focuses on control
procedures for assuring quality in products and processes,
analysis of quality-related data, and correction, prevention,
and improvement planning activities.

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 Benefits of ISO 9000
 It provides discipline. The ISO 9001 requirement for audits
forces an organization to review its quality system on a
routine basis.
 It contains the basics of a good quality system. These
include understanding customer requirements, ensuring
the ability to meet them, ensuring people resources capable
of doing the work that affects quality, ensuring physical
resources and support services needed to meet product
requirements, and ensuring that problems are identified
and corrected.
 It offers a marketing program. ISO certified organizations
can use their status to differentiate themselves in the eyes
of customers.
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