Key Elements

I. Foundation - It includes: Ethics, Integrity

and Trust.
II. Building Bricks - It includes: Training,
Teamwork and Leadership.
III. Binding Mortar - It includes:
Communication.
IV. Roof - It includes: Recognition.
 Deming’s view of a production as a system

Receipt & test of Design & Consumer

materials redesign Research

Suppliers, Production,
materials & assembly, Distribution Consumers
equipment inspection

Test of processes,
machines, methods, cost
 The Deming Cycle or PDCA Cycle

PLAN
Plan a change to the process. Predict the
effect this change will have and plan how
the effects will be measured
ACT DO
Adopt the change as a Implement the change on
permanent modification a small scale and measure
to the process, or the effects
abandon it.
CHECK
Study the results to
learn what effect the
change had, if any.
 W. Edwards Deming’s 14
Points
1) Create constancy of purpose towards improvement
of product and services.
2) Adopt the new philosophy. We can no longer live
with commonly accepted levels of delays, mistakes,
defective workmanship.
3) Cease dependence on mass inspection. Require,
instead, statistical evidence that quality is built in.
4) End the practice of awarding business on the basis of
price tag.
 W. Edwards Deming’s 14
Points
5) Find problems. It is management’s job to work
continually on the system.
6) Institute modern methods of training on the job.
7) Institute modern methods of supervision of
production workers. The responsibility of foremen
must be changed from numbers to quality.
8) Drive out fear that everyone may work effectively for
the company.
 W. Edwards Deming’s 14
Points
9) Break down barriers between departments.
10) Eliminate numerical goals, posters and slogans for
the workforce asking for new levels of productivity
without providing methods.
11) Eliminate work standards that prescribe numerical
quotas.
12) Remove barriers that stand between the hourly
worker and his right to pride of workmanship.
 W. Edwards Deming’s 14
Points
13) Institute a vigorous programme of education and
retraining.
14) Create a structure in top management that will push
everyday on the above 13 points.
 Crossby’s philosophy
• There is no such thing as a quality problem
• There is no such thing as economics of quality –
it is always cheaper to do the job right the first
time
• The only performance measurement is the cost
of quality
• The only performance standard is “ZERO
DEFECTS”

- more philosophical
- stress on top management thinking
 Juran’s Philosophy

• Quality planning
The process for preparing to meet quality
goals
• Quality control
The process for meeting quality goals during
operations
• Quality improvement
The process for breaking through to
unprecedented levels of performance
 Joseph M. Juran and the Cost Of Quality

2 types of costs:
Unavoidable Costs: preventing defects (inspection,
sampling, sorting, QC)
Avoidable Costs: defects and product failures
(scrapped materials, labour for re-work, complaint
processing, losses from unhappy customers

“Gold in the Mine”

 Joseph M. Juran and the Cost Of Quality

Costs
Total Unavoidable
Costs costs

Avoidable
costs

100% defective Point of “Enough

quality”
 Cost of Quality

• Quality affects all aspects of the

organization
• Quality has dramatic cost implications of;
– Quality control costs
• Prevention costs
• Appraisal costs
– Quality failure costs
• Internal failure costs
• External failure costs
Cost of Quality – 4 Categories

• Early detection/prevention is less costly

Seven Problem Solving Tools

• Cause-and-Effect Diagrams
• Flowcharts
• Checklists
• Control Charts
• Scatter Diagrams
• Pareto Analysis
• Histograms
 Cause-and-Effect Diagrams
• Called Fishbone Diagram
• Focused on solving identified quality problem
 Flowcharts
• Used to document the detailed steps in a
process
• Often the first step in Process Re-Engineering
 Checklist

• Simple data check-off sheet designed to identify

type of quality problems at each work station; per
shift, per machine, per operator
 Control Charts

• Important tool used in Statistical Process

Control
• The UCL and LCL are calculated limits used to
show when process is in or out of control
 Scatter Diagrams
• A graph that shows how two variables are
related to one another
• Data can be used in a regression analysis to
establish equation for the relationship
 Pareto Analysis
• Technique that displays the degree of importance for each element
• Named after the 19th century Italian economist
• Often called the 80-20 Rule
• Principle is that quality problems are the result of only a few
problems e.g. 80% of the problems caused by 20% of causes
 Histograms
• A chart that shows the frequency distribution of
observed values of a variable like service time
at a bank drive-up window

• Displays whether the distribution is symmetrical

(normal) or skewed
 Case Study-Karodhimal Ltd
• Very fast growing company catering to North American Market.
• Average package is around 5.70 lakhs per annum.
• They spend heavily on training of each professional i.e. around 3
lakhs each year.
• Their current strengths is around 400 and last year it was 350.
• Last year they have achieved the sales of 65 million $ i.e. around
292.5 crores rupees.
• Target given to each individual is around 1 million $ i.e. 4.5 crores
( taking exchange rate 1US$ = 45 INR).
• Now the hierarchy of the organization was very simple i.e.
initially business consultant then senior business consultant
then regional manager and then senior sales manager and then
sales manager and then CEO. They are the direct selling agent
for one software in the market.
• Questions: Just by looking at the above
facts deduce the organization culture,
environment, quality management levels
observed in the organization.
• Deduce as much Information possible
from this data.
• After this state whether if given a chance
will you join this organization or not.