DEMING'S CONTRIBUTIONS

Deming was an American who worked in the 1930s with Walter A.

Shewhart at Bell Telephone Company. Shewhart was a statistician who
had the theory that product control could best be managed by
statistics. He developed a statistical chart for the control of product
variables. Deming developed a process, based on Shewhart's, using
statistical control techniques that alerted managers of the need to
intervene in the production process.
He then utilized these techniques during World War II while working on
government war production. In 1947 Douglas MacArthur and the U.S.
State Department sent Deming to Japan to help the war-devastated
Japanese manufacturing plants. He introduced these "statistical
process control" methods in a series of lectures on statistical methods
to Japanese businessmen and engineers. The Japanese were an
attentive audience and utilized Deming's ideas readily. They found him
charming and considerate and listened to his ideas. His concept of
employees working toward quality fit well into their personal ideas. His
philosophy went beyond statistical quality control and encouraged
building quality into the product at all stages.

The U.S. Department of Defense's

Definition of Total Quality
Total Quality (TQ) consists of continuous improvement activities
involving everyone in the organization—managers and workers—in a
totally integrated effort toward improving performance at every level.
This improved performance is directed toward satisfying such cross-
functional goals as quality, cost, schedule, missing, need, and
suitability. TQ integrates fundamental management techniques,
existing improvement efforts, and technical tools under a disciplined
approach focused on continued process improvement. The activities
are ultimately focused on increasing customer/user satisfaction.
Deming developed the chain reaction: as quality improves, costs go
down and productivity goes up; this leads to more jobs, greater market
share, and long-term survival. He stressed worker pride and
satisfaction and considered it management's job to improve the
process, not the worker. Quality circles, a central Deming theme, are
based on the importance of employees meeting regularly in groups to
comprehensively discuss product quality. The GDP in Japan rose
steadily from 1960s by more than 10 percent per year. By 1951 the
Japanese had named their quality prize in his honor. Deming's
book, Out of the Crisis, emphasized improving quality of the product as
more important than short-term financial goals. He de-emphasized
quantity, and emphasized quality. He believed that "statistical process
control" was an invaluable instrument in the quest for quality. Deming
developed fourteen points for management which can be summarized
as:

1. Create a plan; publish the aims and purposes of the organization.

2. Learn and adopt the new philosophy of quality.

3. Understand the purpose of inspection; stop depending on

inspection.

4. Stop awarding business based on price alone.

5. Improve the system constantly.

6. Institute training.

7. Teach and institute leadership.

8. Drive out fear, create trust, and create a climate for innovation.

9. Optimize the efforts of teams, groups and staff areas.

10. Eliminate exhortations, and targets for the work force;

provide methods of achievement.

11. Eliminate numerical quotas for the work force.

12. Remove barriers that rob people of pride for workmanship.

13. Encourage education and self improvement for everyone.

14. Make action to accomplish the transformation, make it

everyone's job.
Besides the fourteen points, Deming is known for the Deming
Cycle and the Seven Deadly Diseases. The Deming Cycle is illustrated
in Figure 1. It involves five steps: consumer research and planning of
the product (plan), producing the product (do), checking the product
(check), marketing the product (act), and analyzing how the product is
received (analyze.)
The Seven Deadly Diseases can be summarized as:

1. Lack of constancy of purpose to plan products and services.

Figure 1
The Deming Cycle

2. Emphasis on short-term profits.

3. Personal review systems for managers and management by

objectives.

4. Job hopping by managers.

5. Using only visible data in decision making.

6. Excessive medial costs.

7. Excessive costs of liability driven up by lawyers that work on

contingency.

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CROSBY'S CONTRIBUTIONS
Philip Crosby, author of Quality is Free, founded the Quality College in
Winter Park, Florida. Crosby emphasized meeting customer
requirements by focusing on prevention rather than correction. He
claimed that poor quality costs about 20 percent of the revenue; a cost
that could be avoided by using good quality practices. He pushed for
zero defects. His "absolutes" are: (1) quality is defined as conformance
to requirements, not goodness; (2) the system for achieving quality is
prevention, not appraisal; (3) the performance standard is zero defects,
not that's close enough; and (4) the measure of quality is the price of
non-conformance, not indexes.
Crosby's method does not dwell on statistical process control and
problem solving techniques that the Deming method uses. He stated
that quality is free because prevention will always be lower than the
costs of detection, correction and failure. Like Deming, Crosby had
fourteen points:

1. Manage commitment, that is, top level management must be

convinced and committed and communicated to the entire
company.

2. Quality improvement team composed of department heads,

oversee improvements.

3. Quality measurement are established for every activity.

4. Cost of quality is estimated to identify areas of improvement.

5. Quality awareness is raised among all employees.

6. Corrective action is taken.

7. Zero defects is planned for.

8. Supervisor training in quality implementation.

9. Zero defects day is scheduled.

 10. Goal setting for individuals.

11. Error causes are removed by having employees inform

management of problems.

12. Recognition is given, but it is non-financial, to those who

meet quality goals.

13. Quality councils meet regularly.

14. Do it all over again (i.e., repeat steps one through thirteen).

Looking at the history of quality management, we see several stages

of development. The first was quality control, which involved setting
up product specifications and then inspect the product fore for leaves
the plant. The second state is quality assurance, which involved
identifying the quality characteristics and procedures for
quantitatively evaluating and controlling them. The next phase is the
true total quality control, a term actually coined by Feingenbaum in
1983. At this stage the quality became a total organization effort. It
effected production, profit, human interaction and customer
satisfaction. The fourth stage is total quality management. In TQM the
customer is the center and quality is an organization-wide effort.

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