PART 2. The Deming Philosophy

PART 1. Quality Management Philosophies

Three individuals, W. Edwards Deming, Joseph Juran, and Philip Crosby, have emerged as major international "philosophers" in the quality revolution. They have developed distinct philosophies on how to measure, manage, and improve quality. Two other individuals, Armand V. Feigenbaum and the late Kaoru Ishikawa, have also had a significant impact on the development of the international quality movement, although in a different way than Deming, Juran, and Crosby. Their major contribution has been in disseminating the quality philosophies of others, although they have made several notable contributions of their own.

Because of their unique personalities, Deming, Juran, and Crosby have been likened to a fire-and-brimstone preacher, a theologist, and an evangelist, respectively. Deming's gruff demeanor strikes fear into most corporate executives who attend his seminars; Juran's Quality Control Handbook is often called the "bible" of quality; and Crosby has been recognized for his inspiring and motivational speaking. In this chapter we present their philosophies in an integrated fashion, focusing on the commonalities and differences. In later chapters we will describe further aspects of their philosophies and focus specifically on implementation details.

emerge – являются

disseminating – разделение

notable – значительный

liken – уподобляться

preacher – проповедник

gruff – грубый, серднитый

demeanour - поведение

Answer the question:

1. What “philosophers” have had a significant impact on the development of the international quality movement?

PART 2. The Deming Philosophy

Part 2.1

W. Edwards Deming was originally trained as a statistician, and much of his philosophy can be traced to these roots. He worked for Western Electric during its pioneering era of statistical quality control development in the 1920s and 1930s. During World War II he taught quality control courses as part of the national defense effort. Deming began teaching statistical quality control in Japan shortly after World War II and is credited with having been an important contributor to the Japanese quality improvement programs. In fact, the highest award for quality improvement in Japan is called the Deming Prize. While Japan embraced his methods for 30 years, he was virtually unknown in the United States until 1980.

Deming focuses on the improvement of product and service conformance to specifications by reducing uncertainty and variability in the design and manufacturing process. In Deming's view, variation is the chief culprit of poor quality. In mechanical assemblies, for example, variations from specifications for part dimensions lead to inconsistent performance and premature wear and failure. Likewise, inconsistencies in service frustrate customers and hurt the reputation of the company. To achieve reduction of variation, he advocates a never-ending cycle of product design, manufacture, test, and sales, followed by market surveys, then redesign, and so forth. Deming claims that higher quality leads to higher productivity, which in turn leads to long-term competitive strength. The Deming "chain reaction" (Figure 4.1) theory summarizes this view. The theory states that improvements in quality lead to lower costs because of less rework, fewer mistakes, fewer delays and snags, and better use of time and materials. Lower costs, in turn, lead to productivity improvements. With better quality and lower prices, the firm can achieve a higher market share and thus stay in business, providing more and more jobs. Deming stresses that top management has the overriding responsibility for quality improvement.

conformance – приспособление

culprit – виновный

assembly – монтаж, сборка

wear – износ

likewise – более того

snag – препятствие

overriding - преимущственный

Answer the questions:

1. What did Deming do during and after World War II?

2. What does Deming focus on?

3. What does the Deming “chain reaction” theory state?

Part 2.2

To aid in developing useful measures of quality, Deming advocates the extensive use of statistics, particularly control charts. We will discuss control charts in detail in later chapters. He proposes that every employee in the firm be familiar with statistical techniques and other problem-solving tools. In this way, statistics becomes a common language that every employee—from top executives to line workers—can use to communicate with one another. Statistics are objective; there is no room for ambiguity or misunderstanding.

Deming identifies two sources of improvement in any process: reducing the "common causes" of variation inherent in the production system, and eliminating isolated "special causes" identifiable with a specific individual, machine, or batch of materials. Common causes are a result of the design of the system—as management has designed it. For instance, suppose that a piece of wood is to be cut to a precise length of 25-35 inches. If the worker is provided with only a hand saw, table, and a yardstick, it will be virtually impossible to cut consistently lengths of such precision. Improvements in conformance can only be achieved if management provides more accurate equipment and training in the correct work methods. On the other hand, suppose that an accurate measurement instrument, a fixture for holding the wood, and an electric saw are available. Clearly, the output from this system will have smaller variability and more consistent quality. If the saw blade is worn or chipped however, the quality will deteriorate. Such special causes can be identified by the worker and corrected. Statistical methods provide a means for identifying special causes and understanding common causes.

Statistical thinking is only a portion of the modern Deming philosophy. Deming emphatically states that managerial practices are in need of a radical overhaul. His "14 Points" constitutes the core of his program for achieving quality excellence. Table 4.1 lists these 14 Points. Some of these are quite controversial and often misunderstood. The Deming philosophy is an all-or-nothing proposition. According to Deming, none of the 14 Points can be viewed in isolation, and companies cannot be selective in the ones they wish to implement. We will consider each in turn.

aid – помочь

ambiguity – двусмысленность

inherent – присущий, неотъемлемый

worn – изношено

chip – откалываться

deteriorate – ухудшаться

overhaul – тщательно рассмотреть

Answer the questions:

1. What is the difference between “common causes” and “special causes”?

2. What constitutes the core of Deming’s program for achieving quality excellence?

Part 2.3

Point 1. Create a Vision and Demonstrate Commitment.This is the foundation of Deming's philosophy: a commitment to never-ending improvement in quality. Businesses face two types of problems: the problems of today and the problems of tomorrow. Problems of today are short term and involve maintenance of quality, efficiency, profits, and sales; problems of tomorrow are long term and involve improvement and innovation.

The emphasis on short-term profits has eroded American industry. American management is driven by quarterly dividends, annual performance appraisals, and monthly sales quotas. Deming states that job-hopping, where personal career advancement is placed ahead of the welfare of the firm, is one of the major diseases of American industry. The costs due to lost knowledge and experience its well as hiring and training are staggering. This is very evident in American sports. How many teams can build a dynasty with free agency? Many players go to the highest bidder with little team loyalty. In business, short-term thinking is fed bythe fear ofhostile takeovers and the emphasis on quarterly dividends. Consequently, managers work only for their department or individual performance measurements, and not for the company's future.

Deming believes that business must adopt a long-term perspective and take responsibility for providing jobs and improving a firm's competitive position. Japanese companies, for example, spend considerably more on research and development than those in the United States. They are willing to give up short-term profits knowing that they will achieve a high market share several years in the future because of improved design quality. Investments in innovation, training, and research must be made for the future.

Top management has the responsibility of keeping the company alive and providing jobs for their employees. Only they can develop a vision since they set the policies and mission of the organization. They must then act on the policies and show commitment.

hostile – вражеский

Answer the questions:

1. What is the foundation of Deming’s philosophy?

2. What two problems do businesses face?

3. What has eroded American industry?

4. Why are Japanese companies willing to give up short-term profits?

5. What responsibility must top management have?

Part 2.4

Point 2. Learn the New Philosophy. The world has changed in the last few decades. Many industries in America have lost their competitiveness in world markets; foreign goods now dominate markets. Old methods of management, such as numbers-driven production, work measurement-based quotas, a bottom-line mental­ity, and adversarial work relationships will not work in today's global business environment. The current system creates mistrust, fear, and anxiety, with a focus on "satisficing" rather than on "optimizing. We must develop a quality consciousness and a new attitude that "good enough just isn't. This can only be done with a never-ending cycle of improvement and changes in managerial and worker attitudes.

We have built waste and rework into our processes, accepting poor quality as a way of life. Several years ago one of the authors purchased a new dining room set, delivered directly from the factory. One of the doors was missing a brass knob. The company was very prompt in sending the missing knob. In fact, a package containing about six of them arrived the following week. Later, another package of six arrived. A few weeks later a third package came. Imagine the cost to the company of administrative time as well as the items themselves!

The new focus of management must be on customer-driven quality. Companies cannot survive if their customers are dissatisfied because of poor quality of conformance or poor fitness for use. We are still trying to catch up with the Japanese in quality of conformance while their emphasis is shifting to better quality of design. In 1990, Chrysler CEO Lee Iacocca stated that "Our cars are every bit as good as the Japanese [cars]." In terms of defect levels, U.S. automakers have made significant strides in closing the gap. However, Mazda chairman Kenichi Yamamoto noted that defect-free quality is "taken for granted." It is the finer design touches that impress consumers. Everyone, from the boardroom to the stockroom, must learn the new philosophy.

adversarial – вражеский

brass knob – медная ручка

stride - успех

Answer the questions:

1. What methods of management will not work in today’s global business environment? Why?

2. What must the new focus of management be on?

Part 2.5

Point 3. Understand Inspection. Routine inspection acknowledges that defects are present, but does not add value to the product. Rather, it encourages the production of defective products by letting someone else catch and fix the problem, it is rarely accurate, and the rework and disposition of defective material decreases productivity and increases costs. In services, rework cannot be performed; external failures are the most damaging to business.

Workers must take responsibility for their work, rather than leave the problems for someone else down the production line. Managers need to understand the concept of variation and how it affects their processes and seek to reduce the common causes of variation. Simple statistical tools can be used to help control processes and eliminate mass inspection as the principal tool for quality control. Inspection should be used as an information-gathering tool for improvement.

Answer the questions:

1. What does routine inspection acknowledge?

2. What is the purpose of inspection?

Part 2.6

Point 4. Stop Making Decisions Purely on the Basis of Cost.Purchasing departments have long been driven by cost minimization without regard for quality. In 1931 Walter Shewhart noted that price has no meaning without quality. Yet the purchasing manager's performance traditionally has been evaluated by cost. What is the true cost of purchasing less-than-standard materials? The direct costs that can arise during production or during warranty periods resulting from poor quality materials, not to mention the loss of customer goodwill, can far exceed the cost "savings" perceived by purchasing. Purchasing must understand its new role as a supplier to production. This point causes individuals to rethink what is meant by an "organizational boundary." It is not simply the four walls around the production floor. The supplier and manufacturer must be considered as a "macro organization."

Deming has stressed building long-term relationships with vendors and moving toward a single supplier for any one component. Management has always justified multiple vendors for reasons such as providing protection against strikes or natural disasters but has ignored "hidden" costs such as increased travel to visit suppliers, loss of volume discounts, increased setup charges resulting in higher unit costs, and increased inventory and administrative expense. Most importantly, constantly changing vendors solely on the basis of price increases the variation in the material supplied to production, since each supplier's process is different.

In contrast, a reduced supply base decreases the variation coming into the customer's process, thus reducing scrap, rework, and the need for adjustment to accommodate this variation. A long-term relationship strengthens the bond between the supplier and the customer and allows the supplier to produce in greater quantity, fosters improved communication with the customer, and therefore enhances opportunities for process improvement. The supplier knows that to stay in business, only quality goods are acceptable. Statistical methods provide a common language for communication between customers and suppliers.

goodwill – расположение

boundary – граница

vendor – продавец

foster - благоприятствовать

Answer the questions:

1. What did Walter Shewhart note in 1931?

2. Why is it important to move toward a single supplier for any one component?

Part 2.7

Point 5. Improve Constantly and Forever.Western management traditionally has viewed improvement in the context of large, expensive innovations such as robotics and computer-integrated manufacturing, yet the success of Japanese manufacturers is due primarily to continuous, small, incremental improvements. In Japan, improvement is a way of life.

Quality improvement in both design and conformance must be a never-ending process. Design quality can only be improved through the constant gathering of customers' attitudes and needs. Thus, Deming stresses continual market surveys,redesign, and customer feedback. To improve the quality of conformance, one must attack the causes of variation. Improvement in conformance should be made not only in production, but also in every activity of the firm. This includes transportation, engineering, maintenance, sales, service, and administration. When quality7 improves, productivity improves and costs decrease.

Improvement means reducing variation by eliminating special causes and reducing the effects of common causes. Confusion about special and common causes of variation leads to frustration by both managers and workers. Management blames workers for problems beyond their control—the common causes. Workers who may be trying their best cannot understand why they cannot do a better job. Eliminating special causes of variation provides a stable and predictable process. Using statistical methods, workers can identify special causes when they occur and take corrective action, which is their responsibility, but common causes of variation are due to the system that management designs. Deming states that 85 to 95% of variation is due to the system. Statistical methods can be used by managers to understand common causes and lead to their reduction.

incremental – бесконечно малое приращение

Answer the questions:

1. How can design quality and conformance be improved?

2. Why are both managers and workers frustrated with confusion about special and common causes of variation?

Part 2.8

Point 6. Institute Training. For continuous improvement, employees— both management and workers—require the proper tools and knowledge. People are an organization's most valuable resource and want to do a good job, but often do not know how. It is management's responsibility to help them. Deming notes that in Japan entry-level managers spend 4 to 12 years on the factory floor and in other activities to learn the problems of production. All employees should be trained in statistical tools for quality problem solving. Not only does training result in improvements in quality and productivity, but it adds to workers' morale, showing them that the company is dedicated to helping them and investing in their future. In addition, training reduces barriers between workers and supervisors, giving both more incentive to improve further. At Honda of America in Marysville, Ohio, all employees start out on the production floor, regardless of their job classification!

incentive – побудительный, побуждение, стимул

Answer the questions:

1. What valuable resource does an organization have?

2. What does training result in?

Part 2.9

Point 7. Institute Leadership. As Deming states, the job of management is leadership, not supervision. Supervision is simply overseeing and directing work; leadership is providing guidance to help employees do their jobs better with less effort. In many companies, supervisors know little about the job itself because the position is often used as an entry-level job for college graduates. The supervisors have never worked in the department and cannot train the workers, so their principal responsibility is to get the product out the door.

Supervision should provide the link between management and the work force. Supervisors should not be policemen or paper-pushers, but rather coaches, helping workers to do a better job and develop their skills. Leadership can help to eliminate the element of fear from the job and encourage teamwork.

Answer the question:

1. What is the noticeable difference between supervision and leadership?

Part 2.10

Point 8. Drive Out Fear. Driving out fear underlies many of Deming's 14 Points. Fear is manifested in many ways: fear of reprisal, fear of failure, fear of the unknown, fear of relinquishing control, and fear of change. No system can work without the mutual respect of managers and workers. Workers are often afraid to report quality problems because they might not meet their quotas, their incentive pay might be reduced, or they might be blamed for problems in the system. Managers are afraid to cooperate with other departments because the other managers might receive higher performance ratings and bonuses, or because they fear takeovers or reorganizations. Fear encourages short-term thinking.

Managers fear losing power. One example is presented by Bushe.3 After a statistical quality control program was implemented in an automotive plant, worker groups were sometimes able to offer better advice about system improvements than the corporate engineering staff. This ran counter to the plant's well-established culture. Middle managers were no longer the "experts." Their fear diminished their support for the program, which was eventually eliminated.

drive out – выбивать

underlie – лежать в основе

relinquish – сдавать, оставлять, бросать

Answer the question:

1. What are workers and managers afraid of?

Part 2.11

Point 9. Optimize the Efforts of Teams. Teamwork helps to break down barriers between departments and individuals. Barriers between functional areas arise from fear when managers feel they might lose power. Internal competition exists for raises and performance ratings. The lack of cooperation leads to poor quality because other departments cannot understand what their "customers" want and do not get what they need from their "suppliers." In Japan, emphasis is placed on the fact that your customer is the next department or individual in the production process, and you are trained to manage such customer relationships.

Perhaps the biggest barrier to team efforts in the United States is between union and management. With some notable exceptions, the history of management-labor relations in U.S. firms has been largely adversarial. Lack of sensitivity to worker needs, exploitation of workers, and poor management practices and policies have frequently resulted in strained relations between managers and their subordinates. Labor leaders also must bear their share of the blame. They have had a tendency to resist any management effort to reduce rigid, rule-based tasks, preferring to adhere to the structured approaches that have their roots in Frederick W. Taylor's historical principles of scientific management.

bear – нести груз

rigid – жесткий

adhere – твердо держаться

Answer the questions:

1. What does the lack of cooperation lead to?

2. What results in strained relations between managers and their subordinates?

3. What are important means of removing barriers between departments and individuals?

Part 2.12

Point 10. Eliminate Exhortations. Posters, slogans, and motivational pro­grams calling for "Zero Defects," "Do It Right the First Time," or "Improve Productivity and Quality," etc., are directed at the wrong people. These motivational programs assume that all quality problems are behavioral in nature, and that workers can improve simply through motivational methods. Workers become frustrated when they cannot improve or are penalized for defects.

Motivational approaches overlook the fact that most of the problems stem from the system, that is, are a result of the common causes of variation. This is management's problem, not the workers'. If anything, workers' attempts to fix problems only increase the variation. Improvement occurs by understanding the nature of special and common causes. Thus, statistical thinking and training, not slogans, can improve quality. Motivation can be better achieved from trust and leadership than from slogans and goals.

exhortation – призыв, поддержка

overlook – возвышаться, обозревать, проглядеть

variation - отклонение

Answer the question:

1. Why can’t slogans improve quality?

Part 2.13

Point 11. Eliminate Numerical Quotas and M.B.O. (Management by Objective). Measurement has been, and often still is, used punitively. Standards and quotas are born of short-term perspectives and create fear. They do not encourage improvement, particularly if rewards or performance appraisals are tied to meeting quotas. Workers may short-cut quality to reach the goal. If you reach the standard, there is no incentive to continue production or to improve quality. Workers will do no more than they are asked to do.

Management also is driven by goal-setting. Arbitrary goals such as increasing sales by 5% next year or decreasing costs next quarter by 10% have no meaning without a method to achieve them. Deming states that goals are useful, but numerical goals set for others without a method to reach the goal generate frustration and resentment. Further, variation in the system makes year-to-year or quarter-to-quarter comparisons meaningless. A 5% increase or a 6% decrease may occur simply due to the variation within the system. Management must understand the system and continually try to improve it, rather than focus on short-term goals.

numerical – числовой, цифровой

arbitrary – произвольный

resentment – негодование, возмущение

comparison – сравнение

meaningless - бессмысленный

Answer the questions:

1. What does the Management by Objective mean?

2. Why should numerical quotas for production be eliminated?

Part 2.14

Point 12. Remove Barriers to Pride in Workmanship.People on the factory floor and even in management have become, in Deming's words, "a commodity." Factory workers are given monotonous tasks, provided with inferior machines, tools, or materials, told to run defective items to meet sales pressures, and report to supervisors who know nothing about the job. Salaried employees are expected to work evenings and weekends to make up for cost-cutting measures that resulted in layoffs of their colleagues. Many are given the title of "management" so that overtime need not be paid. As a recent study demonstrated, even employees in the quality profession are not immune.6 An inspection technician stated "This profession always seems to end up being called the troublemakers." A quality engineer stated "The managers over me now give little direction, are very resistant to change, and do little to advance their people." A quality supervisor said "Someone less qualified could perform my job... for less money." How can these individuals take pride in their work? Many cannot be certain they will have a job next year.

Deming believes that one of the biggest barriers to pride in workmanship is performance appraisal. Performance appraisal destroys teamwork by promoting competition for limited resources; fosters mediocrity since objectives typically are driven by numbers and what the boss wants, not by quality; focuses on the short term and discourages risk-taking; and confounds the "people resources" with other resources. If all individuals are working within the system, then they should not be ranked on an individual basis. Some people have to be "below average." This can only result in frustration if those individuals are working within the confines of the system. Deming suggests that there are only three categories of performance: the majority that work within the system, those that are outside the system on the superior side, and those that are outside the system on the inferior side. Statistical methods provide the means of making this classification. Superior performers should be compensated specially; inferior performers need extra training or replacement.

Pride in workmanship can be achieved through teamwork and continuous improvement strategies. Workers must not be viewed as objects or commodities; they must be considered as valuable resources.

inferior – подчиненный

foster – воспитывать

mediocrity – посредственность

confound – смешивать

confine – ограничивать

Answer the questions:

1. In what way does performance appraisal destroy teamwork?

2. How can pride in workmanship be achieved?

Part 2.15

Point 13. Encourage Education and Self-Improvement. The difference between this point and Point 6 is subtle. Point 6 refers to training in specific job skills; Point 13 refers to continuing, broad education for self-development. Organizations must invest in their people at all levels for the long term. A fundamental mission of business is to provide jobs as stated in Point 1, but business and society also have the responsibility to improve the value of the individual. Developing the worth of the individual is a powerful motivation method.

subtle – нежный, тонкий

Answer the question:

Who is responsible for investing in education and self-improvement?

Part 2.16

Point 14. Take Action. The transformation must begin with top management and include everyone. Applying the Deming philosophy represents a major cultural change that many firms find difficult, particularly since many of the traditional management practices that Deming feels must be eliminated have been ingrained in the organization's culture for decades. Ford Motor Company is one firm that has embraced the Deming philosophy totally.

In addition to the 14 Points, Deming proposes "Seven Deadly Diseases" that obstruct the quest for quality:

1. Lack of constancy of purpose: This is the antithesis of the first of his 14 Points. Many companies have only short-term quality programs. They do not look toward the long term and ingrain the philosophy into the corporate culture. When the quality champion leaves or retires, the quality- focus begins to crumble.

2. Emphasis on short-term profits: Quality is undermined when firms seek only to increase the quarterly dividend. Japanese firms invest significantly more in research and development, forsaking short-term profits with the goal of capturing market share 5 to 10 years later. Short-term thinking is fed by fear of unfriendly takeovers and leveraged buy-outs.

3. Evaluation of performance, merit rating, or annual review of performance: This is clearly spelled out in his 14 Points. Such activity destroys teamwork, builds fear, and encourages defection from management. Deming calls this "management by fear."

4. Mobility of management: Managers who continually job-hop never under­stand the companies for which they work, focus on the short term, and can never implement the long-term changes necessary for lasting quality improvement.

5. Running a company on visible figures alone: The most important figures are unknown and often unknowable, such as the effect of a satisfied customer.

6. Excessive medical costs for employee health care that increase the final costs of goods and services: These have been increasing at a phenomenal rate over the years. The long-term effect is a deterioration in competitiveness.

7. Excessive costs of warranty, fueled by lawyers who work on the basis of contingency fees. Consider the amount of malpractice insurance that medical professionals must now pay due to a proliferation of lawsuits and multimillion dollar judgments. The fear built into the system is driving many doctors, such as obstetricians, to abandon their practices.

obstruct – заграждать, затруднять

crumble – крошиться

undermine – разрушать, подрывать

forsake – оставлять, покидать

deterioration – ухудшение

contingency – случайный

malpractice – противозаконное действие

proliferation – распространение

lawsuit – судебный процесс

obstetrician - акушер

Answer the question:

1. Why do many firms find applying the Deming philosophy difficult?

Questions for Review and Discussion:

1. The following themes form the basis for Deming’s philosophy. Classify the 14 Points into these categories and discuss the commonalities within each category.

a. Organizational purpose and mission: create a vision and demonstrate commitment, learn the new philosophy, drive out fear.

b. Quantitative goals: eliminate numerical quotas and M. B. O.

c. Revolution of management philosophy: stop making decisions purely on the basis of cost, take action.

d. Elimination of seat-of-the-pants decisions: understand inspection, improve constantly and forever,.

e. Build cooperation: institute leadership, optimize the effort of teams, remove barriers to pride in workmanship.

f. Improve manager-worker relations: institute training, eliminate exhortations, encourage education and self-improvement.

2. How can learning and classroom performance be improved by applying Deming’s philosophy?

First of all, it is important to say that schedules and plans are not efficient anymore, because we live in modern and fast-moving world so that it would have been better if students haven’t mind about strict way of studying, moreover freelancing can be implemented into studying process. For example, students should read all the information at home and in classes they would just ask professor some misunderstandings. Thus, valuable time can be saved but there are problems with unemployment.

Дата добавления: 2015-11-14