Chapter 1 Theory for Quiz Generation 2.pdf

Quality Gurus 33 Shewart2 is often referred to as the “grandfather of quality control.” He studied randomness and recognized that variability existed in all manufacturing processes. He developed what came to be known as the Shewart cycle; Plan-Do-Study-Act (PDSA) or Plan-Do-Check-Act (PDCA) to man...

Quality Gurus 33 Shewart2 is often referred to as the “grandfather of quality control.” He studied randomness and recognized that variability existed in all manufacturing processes. He developed what came to be known as the Shewart cycle; Plan-Do-Study-Act (PDSA) or Plan-Do-Check-Act (PDCA) to manage the effects of variation. He developed quality control charts that are presently used to identify whether the variability in the process is random or due to an assignable cause such as unskilled workers or equipment not being calibrated. He stressed that eliminating variability improved quality. His work created the foundation for statistical process control measures used today. W. e d W a r d S d em I n g Bird’s-eye view: W. Edwards Deming3 (1900–1993) is often referred to as the “father of quality control.” Deming is best known for initiating a transformation in the Japanese manufacturing sector in the aftermath of World War II, which enabled it to become a big player in the world market. The Deming Prize, the highest award for quality in Japan, is named in his honour. He is also known for his 14 Points (a new philosophy for competing on the basis of quality), for the Deming Chain Reaction and for the Theory of Profound Knowledge. He also modified the Shewhart PDSA (Plan, Do, Study, Act) cycle to what is now referred to as the Deming Cycle (Plan, Do, Check, Act). The Deming Cycle: PDCA Cycle4 Deming introduced the “Deming cycle,” one of the crucial QC tools for assuring continuous improvement. The Deming cycle is also known as the Deming wheel or the PDCA (Plan-Do-Check-Action) cycle (Figure 2.1). It is a problem-solving process adopted by firms engaged in continuous improvement. Deming stressed the importance of constant interaction among the four stages of Design, Production, Sales and Research for a company to arrive at better quality that satisfied customers. He stated that this wheel should be operated in accordance with quality first perceptions and responsibilities. He stated that to arrive at a quality that satisfied customers, the four stages should be rotated constantly with quality as the most critical criterion. Later, this concept of the Fig. 2.1 PDCA Cycle P Plan (Product development) D Do (Production) A Action (Market research) C Check (Sales) William Edwards Deming (1900-1993) father of quality evolution is often referred as the “father of quality control”. He is widely acknowledged as the leading management thinker in the field of quality. 34 Total Quality Management Bird’s-eye view: The Deming Cycle, or PDCA Cycle, is a continuous quality improvement model consisting of a logical sequence of four repetitive steps for continuous improvement and learning: Plan, Do, Check and Act. Deming wheel was extended to all phases of management and modified as the “PDCA” cycle: Plan, Do, Check, Action, which corresponded to specific managerial actions. The PDCA is a series of activities pursued to achieve improvement. It begins with a study of the current situation during which data are gathered to formulate a plan for improvement. Once this plan has been finalized, it is implemented. The implementation is also checked for anticipated improvement. When the experiment is successful, a final action such as methodological standardization is taken to ensure that the new methods introduced will be practised continuously for sustained improvement. The entire focus is on problem prevention rather than remedies (i.e. firefighting). PDCA Cycle—Description The PDCA (or PDSA) cycle was originally conceived by Walter Shewart in the 1930s, and later adopted by W. Edwards Deming. The model provides a framework for the improvement of a process or system. It can be used to guide the entire improvement project, or to develop specific projects once the target areas requiring improvement have been identified. Applications of the PDCA Cycle It is used to satisfy the quality requirements of the customer. It may be used for the development of a new product based on the quality requirements of the customer. It develops teamwork between the company’s various functions and aids in product design and development, production, sales and market research. Box 2.1 discusses how the PDCA cycle can be applied to education. Box 2.1 Deming’s PDCA Cycle Applied to Education The Deming cycle can be applied to all academic activities without any immediate financial implications. One of the crucial factors required for successful implementation of the PDCA cycle is to act upon obtaining feedback. The Deming cycle can be applied to faculty members teaching in an academic institution. To begin with, feedback needs to be collected every month-end at appropriate checkpoints. Secondly, feedback needs to be collected at the end of all sessions. Thus, the use of the PDCA cycle will offer ample opportunities to teachers to improve teaching methods in technical education. The following activities need to be carried out in each of the phases of the PDCA cycle: Plan: Class scheduling, syllabus planning, evaluation methods, teaching aids, learning tools, feedback methods, case studies and projects, expert lectures, industrial visits, improvements in teaching methods, extra-curricular activities, computer-based learning, practical coverage planning and lab development. Do: Classroom teaching, practical guidance, external interaction, continuous self-learning, conduct exams and tests, conduct practical exercises in laboratories, demonstration, computer-aided methods. Check: Evaluation (seminars, presentations, tests, quizzes, viva voce, etc.), progress of learning, review of feedback, analysis of results and scope for further exercises. Act: Redesign the system, revise the syllabus, modify and report, corrective action on feedback and input for plans to take preventive action. Quality Gurus 35 Design Plan: When a problem is detected in product design and development, find the causes of the problem. Production Do: A pilot project is done, or implemented. In the Do phase, one collects correct data about the problem and sorts it out statistically. Then one identifies probable causes and verifies the most plausible ones and takes corrective action. At this stage, always make sure that the relevant job standards have been followed. Sales Check: The results of the effort are observed and analysed against the plan. In the Check phase, one evaluates the results after implementation of a corrective procedure. If the targets are not achieved, one goes back to the Plan or Do stage and starts all over again. Upon satisfactory achievement of the target, one proceeds to the next stage. Research Action: At this stage, the cycle starts again with planning an improvement. One documents and standardizes the process concerned and provides training to employees in the new procedures. The PDCA cycle is designed to be used as a dynamic model. The completion of one turn of the cycle flows into the initialization of the next. The cycle must be constantly rotating. Following in the spirit of continuous quality improvement, the process can always be reanalysed and a new test of change begun. This continual cycle of change is represented in the ramp of improvement. Using what we learn in one PDCA cycle, we can begin another more complex cycle. The Ramp of Improvement This is a schematic representation of the use of the PDCA cycle in the improvement process. As each PDCA cycle reaches completion, a new and slightly more complex project is undertaken. This roll-over feature is integral to the continual improvement process. The ramp of improvement is shown in Figure 2.2. Plan: A change or a test aimed at improvement. In this phase, one must analyse what one intends to improve, looking for areas that hold opportunities for change. The first step is to choose areas that offer the most returns for the effort one puts in. In order to identify these areas for change one must consider using a flow chart or Pareto chart. Do: Carry out the change or test (preferably on a small scale). The change that has been decided on in the plan phase needs to be implemented. Fig. 2.2 Ramp of Improvement P 1 D A D 3 C D D C C l A 2 4 C Time C A P A iy P P Bird’s-eye view: Dr. Edward Deming, provided a simple yet highly effective technique that serves as a practical tool to carry out continuous improvement in the workplace. This technique is called PDCA Cycle or simply Deming Cycle. Bird’s-eye view: PDCA is acronym of Plan, Do, Check and Action. Deming Cycle provides conceptual as well as practical framework while carrying out Kaizen activities by the employees. 36 Total Quality Management Check or study: The results need to be examined for lessons learned from the exercise. What was learned? What went wrong? This is a crucial step in the PDCA cycle. After one has implemented the change for a short time, one must determine how well it is working. Is it really leading to improvement in the way one had hoped? One must decide on several measures with which the level of improvement can be monitored. Run Charts are helpful in measuring this. Bird’s-eye view: Deming (1986) proposed his famous Chain Reaction Model to explain the relationships among quality, productivity, cost, and eventually sustainability. Bird’s-eye view: Quality improvement in any organizational process, in terms of variability reduction, results in higher productivity. Act: Adopt the change, abandon it or run through the cycle again. After planning a change, implementing and then monitoring it, one must decide whether it is worth continuing that particular change. If it consumed too much of one’s time, was difficult to adhere to, or even led to no improvement, one may consider aborting the change and planning a new one. However, if the change has led to a desirable improvement or outcome, one may consider expanding the trial to a different area or increasing the complexity slightly. This takes one back to the Plan phase thereby starting the ramp of improvement again. The Deming Chain Reaction The Deming chain reaction was first presented in 1950 in Japan after World War II. It is shown in Figure 2.3. It illustrated Shewart’s concept that productivity and quality improved as variation reduced. His book Out of the Crisis (1989) is considered a quality classic. Deming identified seven deadly sins affecting quality: 1. Lack of constancy of purpose 2. Emphasis on short-term profits 3. Over-reliance on performance appraisals 4. Mobility of management Fig. 2.3 The Deming Chain Reaction Improve quality Bird’s-eye view: Deming’s Chain Reaction has a potential for groups and teams to gain and establish continuous improvement understanding in daily routine work operations. Costs decrease because of less rework, fewer mistakes, fewer delays and snags and better use of time and materials Productivity improves Capture the market with better quality and lower price Stay in business Provide jobs and more jobs Quality Gurus 37 5. Overemphasis on visible figures 6. Excessive medical costs for employee healthcare 7. Excessive costs of warranty and legal costs Deming’s Theory of Profound Knowledge states that a production system is composed of many interacting subsystems. It is the management’s responsibility to set the purpose for the system and to optimize it. Deming advocated improving the system rather than criticizing the workers. He believed that workers were already doing their best with the systems that the management provided. However, doing one’s best without direction led to poor results. He inferred that it was the responsibility of the management to provide the direction that workers needed. However, Deming stated that this could not be done by the management’s use of objectives (which Deming referred to as management by fear) or annual performance reviews (which he condemned). The plan he proposed is embodied in his 14 points, which he felt would have to be implemented in its entirety in order to be effective. According to Deming, skipping one point would inhibit the efficacy of the other 13. Deming’s 14-Point Methodology 1. Constancy of purpose: Create constancy of purpose for continual improvement of products and service, and allocate resources to cater to long term needs rather than short-term profitability with a plan to become competitive, stay in business and provide jobs. 2. The new philosophy: Adopt the new philosophy for one can no longer accept delays, mistakes and defective workmanship. Transformation of the Western management style is necessary to halt the continued decline in the industry. 3. Cease dependence on inspection: Eliminate the need for mass inspection as a way to achieve quality by building quality into the product in the first place. Demand statistical evidence of built-in quality in both manufacturing and purchasing functions. 4. End lowest tender contracts: End the practice of awarding business contracts solely on the basis of price tags. Instead, go for meaningful measures of quality along with price. Reduce the number of suppliers for the same item by eliminating those that do not qualify against the statistical yardstick of quality. The aim is to minimize total cost, not merely the initial cost. Purchasing managers now have their task cut out and must learn their responsibilities. 5. Improve every process: Constantly improve every process involved in the stages of planning, production and service. Search continually for problems in order to improve every activity in the company because better quality leads to increased productivity and decreased costs. It is the management’s job to continually work on all aspects of the system (design, incoming materials, maintenance, improvement of machines, training, supervision, retraining, etc.) 6. Institute training on the job: Institute modern methods of training on the job, including management to make maximum use of all employees. New skills are required to keep up with changes in materials, methods, product design, machinery, techniques and service. 7. Institute leadership: Adopt and institute leadership, which is aimed at helping people do a better job. The responsibilities of managers and supervisors must be changed to emphasize on quality rather than quantity. This will automatically improve productivity. The management must ensure that immediate action is taken on reports of inherited defects, maintenance requirements, poor tools, fussy operational definitions and other conditions detrimental to quality. Bird’s-eye view: Deming’s 14 Points on Quality Management, a core concept on implementing total quality management, is a set of management practices to help companies increase their quality and productivity. 38 Total Quality Management 8. Drive out fear: Encourage effective two-way communication and other means to drive out fear throughout the organization so that all employees are able to work effectively and ensure greater productivity for the company. 9. Breakdown barriers: Breakdown barriers between people in different divisions of the organization such as R&D, Sales, Administration and Production. They must work in teams to tackle problems that may be encountered. 10. Eliminate exhortations: Eliminate use of slogans, posters and exhortations demanding zero defects and new level of productivity from the workforce, without providing commensurate methods. Such exhortations only create adversarial relationships; the bulk of the cases of low quality and low productivity belong to the system and; thus, lie beyond the power of the workforce. 11. Eliminate arbitrary numerical targets: Eliminate work standards that prescribe numerical quotas for the workforce and numerical goals for people in the management. Substitute these with aids and helpful supervision and use statistical methods for continual improvement of quality and productivity. 12. Permit pride of workmanship: Remove the barriers that rob hourly workers and people in the management of their rights to pride of workmanship. This implies the abolition of the annual merit rating (appraisal of performance) and management by objectives. Again, the responsibility of managers, supervisors and foremen must be changed from sheer numbers to quality. 13. Encourage education: Institute a vigorous programme of education and encourage selfimprovement. What an organization needs is not just good people; it needs people who improve with education. A workforce rooted in knowledge will always enable an organization to be competitive. Bird’s-eye view: Joseph Juran’s major contribution to society was in the field of quality management and he is often called the father of quality. Bird’s-eye view: In 1937, Dr. Juran created the “Pareto principle,” which millions of managers rely on to help separate the “vital few” from the “trivial many” in their activities. This is commonly referred to as the 80-20 principle. 14. Top management’s commitment: A clearly defined commitment by the top management to constantly improve quality and productivity and reinforcement of obligations to implement all these principles is always beneficial to the workforce and the organization. Create a structure in the top management whose main task will be to push these 13 points constantly and take action in order to accomplish the transformation. Box 2.2 discusses Deming’s famous Red Bead Experiment. J oSeph J u r a n Joseph Juran5 (1904–2008) assisted the Japanese in their reconstruction processes after World War II. Juran first became famous in the US as the editor of the Quality Control Handbook (1951), and later for his paper introducing the quality trilogy—quality planning, quality control and quality improvement.  Quality planning provides a system that is capable of meeting quality standards.  Quality control is used to determine when corrective action is required.  Quality improvement seeks better ways of doing things. Questioning which aspect of the quality trilogy is most critical is similar to asking which leg of a stool is the most important. The stool (and the quality system) cannot function effectively without all three. Juran defined quality as “fitness for use” and also developed the concept of cost of quality. Quality Gurus 39 Box 2.2 Deming’s Red Bead Experiment Dr Deming developed a teaching tool in 1982 to teach his famous 14 obligations of management. He named this tool the Red Bead Experiment, and used it in his seminars across the world. The game consists of players using a special metal paddle to draw small red and white coloured beads from a large bowl. Each draw of the paddle gets 50 beads. Some are white and some are red. The white beads symbolize the good things experienced at work each day and the red beads symbolize the problems encountered. As each player draws his paddle full of 50 beads, he receives a different mix of red and white beads. Many management points get brought to the fore when one plays this game. Workers cannot be blamed for all the problems in the organization since they did not form it. Consequently, they should not be held responsible for all the mistakes. If managers expect better work, they need to employ specialists to ask questions, and then design improvements to the system to remove the problems (red beads) encountered each day. Reprimanding the workers does no good and only results in workers becoming more quiet and reticent. This, in turn, conceals the process problems further. So the workers have a very important role in assisting the managers to improve each day’s work experiences. A friendly work environment should be created so that workers feel free to speak their minds and share what they know. Source: Adapted from www.pathmaker.com/resources/leaders/deming.asp, accessed February 2010. While Deming’s approach is revolutionary in nature (i.e. throw out one’s old system and “adopt the new philosophy”, his 14 points), Juran’s approach is more evolutionary (i.e. one can work to improve the current system). Deming refers to statistics as being the language of business while Juran says that money is the language of business, and quality efforts must be communicated to the management in their language. Juran agrees with Deming that more than 80 per cent of defects are caused by the system rather than the workers and lists motivation of workers as a solution to quality problems. Juran’s Quality Trilogy6 Juran developed the idea of the quality trilogy to bring continuous improvement in the process. The elements of the trilogy are quality planning, quality improvement and quality control. These are broken into key constituents as shown in Table 2.1. Table 2.1 Universal Process for Managing Quality Quality Planning Quality Control Bird’s-eye view: The Juran Trilogy, published in 1986, identified and was accepted worldwide as the basis for quality management. Bird’s-eye view: After almost 50 years of research, his trilogy defined three management processes required by all organizations to improve. Quality control, quality improvement, and quality planning have become synonymous with Juran and Juran Institute, Inc. Quality Improvement Bird’s-eye view: Establish quality goals Identify customers Discover customer needs Develop product features Develop process features Choose control subjects Choose units to measure Set goals Create a sensor Measure actual performance Establish process controls, transfer to operations Interpret the difference Take action on the difference Prove the need Identify projects Organize project teams Diagnose the causes Provide remedies, prove that the remedies are effective Deal with the resistance to change and control to hold the gains Source: Adapted from Joseph M. Juran, Juran on Planning for Quality (New York: Free Press, 1988). Juran is the founder of Juran Institute in Wilton, Connecticut. He promoted a concept known as Managing Business Process Quality, which is a technique for executive cross-functional quality improvement. 40 Total Quality Management Juran propounded the following message on quality7:  Quality control must be an integral part of management  Quality is no accident  Quality must be planned  There are no shortcuts to quality  Use problems as sources of improvement Juran’s Formula 1. Build an awareness regarding the need and offer an opportunity for improvement 2. Set goals for improvements 3. Organize paths to reach the goals (establish a quality council, identify problems, select projects, appoint teams, designate facilitators, etc.) 4. Provide training 5. Carry out projects to solve problems 6. Report progress 7. Give recognition 8. Communicate results 9. Keep score 10. Maintain momentum by making annual improvements part of the regular systems and processes of the company DISCUSSION FORUM 1. Discuss Walter A. Shewart’s contribution to quality management in small groups. 2. Describe Deming’s 14 points of quality. 3. Explain Juran’s quality trilogy. Bird’s-eye view: Armand Vallin Feigenbaum was an American quality control expert and businessman. He devised the concept of Total Quality Control which inspired Total Quality Management. The name Armand V. Feigenbaum and the term “total quality control” are virtually synonymous. a r m a n d F eIgenbaum Armand Feigenbaum8 is credited with the creation of the idea of total quality control in his book Quality Control—Principles, Practice, and Administration (1961) and in his article “Total Quality Control” (1956). The Japanese version of this concept is called Company Wide Quality Control, while it is termed Total Quality Management (TQM) in the US and elsewhere. He was also the first to classify quality costs as costs of prevention, appraisal and internal and external failures. Feigenbaum’s philosophy is summarized in his “Three Steps to Quality,” which has been described below. (i) Quality leadership: This is evident when the management emphasizes on sound planning rather than reacting to failures. The management must maintain a constant focus and lead the quality effort. (ii) Modern quality technology: The traditional quality development processes cannot resolve 80 to 90 per cent of quality problems. This task requires the integration of office