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8/13/2019 Apu Mbus Bm027 Chap 3a Teachings of q Gurus Deming
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Chapter 3 (Part A)
Teachings ofQuality Gurus -
Deming
MANAGING BUSINESS
BM027-3.5-2-MBUS
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Learning Outcomes
At the end of this chapter, you shouldbe able to:
Understand and use the quality
approaches developed by Edwards
Deming, and other quality gurus.
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The Quality Gurus
Dr. W. Edwards Deming, Dr. Joseph Juran,Philip Crosby, Armand V. Feigenbaum, Dr. H.
James Harrington, Dr. Kaoru Ishikawa, Dr.
Walter A. Shewhart, Shigeo Shingo, Frederick
Taylor, and Dr. Genichi Taguchi
All have made a significant impact to our day-to-
day life.
Contributions for improvement for all types oforganizations including :- state and national governments, military organizations,
educational institutions, healthcare organizations etc.
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Quality Philosophies
Writer
Definition
of
Quality
Orientation Developed
Deming Fitness for
purpose
Customer 1. Demings Philosophy
2. Fourteen Points of Quality
3. Deming PDCA Cycle4. System of Profound Knowledge
Juran Fitness for
use
Customer 1. Quality Trilogy
2. The Five Quality Characteristics
3. Internal Customer
4. The Four Phases of ProblemSolving
5. Quality Council
6. The Quality Spiral
Crosby Conformance
to
requirements
Supplier 1. Five Absolutes of Quality
2. Fourteen-Point Plan for Quality
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Demings Philosophy
1. Concept of pride and joyat work.
2. Continuous improvement based on reduction invariation.
3. Higher quality leads to higher productivity which leads tomore output.
Higher
Quality
HigherProductivity
More
Output
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Demings Philosophy
4. Improvements in quality leads to lower costs, whichleads to lower prices; this, in turn, leads to sustaininglong term competitive advantage.
5. Top management must assume the overridingresponsibilityfor quality improvement.
Improvements
in
Quality
Lower
CostLower
Prices
Sustaining
Long Term
Competitive
Advantage
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Demings 14 Points
1. "Create consistency of purpose towardsimprovement".
2. "Adopt the new philosophy".
3. "Cease dependence on inspection".4. "Move towards a single supplier for any one item."
5. "Improve constantly and forever".
6. "Institute training on the job".
7. "Institute leadership".8. "Drive out fear".
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9. "Break down barriers between departments".
10. "Eliminate slogans and targets".
11. "Eliminate management by objectives".12. "Remove barriers to pride of workmanship".
13. "Institute education and self-improvement".
14. "The transformation is everyone's job".
Demings 14 Points
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The Deming Cycle(PDCA Cycle)
PDCA ("Plan-Do-Check-Act") is an iterative
four-step problem-solving process typically
used in business process improvement.
http://upload.wikimedia.org/wikipedia/commons/7/7a/PDCA_Cycle.svg8/13/2019 Apu Mbus Bm027 Chap 3a Teachings of q Gurus Deming
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The PDCA Cycle
PLANEstablish objectives & processes - to deliver results in accordance with the
expected output.
DO
Implement the new processes - often on a small scale.
CHECK
Measure the new processes and compare the results against the expected
results.
ACTION
Standardize the improved result.
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System of Profound Knowledge
Is the underlying foundations of Demings 14points.
It consists of four interrelated parts:
1. Appreciation for a system2. Understanding of variation3. Theory of knowledge4. Psychology
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Appreciation for
system
Understanding
of variation
Theory ofknowledge
Knowledge ofPsychology
Demings System of Profound
Knowledge
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Systems
Deming stressed that systems must be focusedtowards a purpose. Stockholderscan realise financial benefits,
Employeescan receive opportunities for training andeducation,
Customerscan receive products and services thatmeet their needs and create satisfaction ,
the communitycan benefit from businessleadership, and
the environment can benefit from responsiblemanagement.
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Variation
Modern technologyenables to produce with very littlevariation; but human behaviour and performancecontinues to hamper quality efforts.
To reduce variation through improvements intechnology, process design, and training.
To be familiar with statistical techniques and otherproblem solving tools.
Excessive variation - products that fail or performerratically and inconsistent service.
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Knowledge
Experience only describesit cannot be tested or
validated. Theory (knowledge), on the other hand, helps
one to understand cause and effect.
Managers should learn and discover(acquire
knowledge) what works and what is appropriate for their
individual organisation.
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Psychology
It helps us to understand people, interactions between
people and circumstances.
People can be motivated intrinsicallyand extrinsically; Demings does not believe pay is a motivator.