Demings Philosophy on Quality - Term Paper Example

OF Deming’s Philosophy on quality can be attained through the never ending improvement of the extended process, of which the management of any organization is responsible (Gitlow & Gitlow 1987). Managers who desire to improve the extended processing, have to demonstrate an understanding of the quality of design and redesign, the quality of conformance and the quality of performance. In the case of quality of design, it begins with the consumer research, sales analysis, service call analysis, and the development of a prototype to augment the previous activities (Gitlow & Gitlow 1987). Gitlow &Gitlow (1987), points out that in determining customers’ needs, it is important that the future be brought into the equation, because such needs can change, and companies should be well prepared for it. The need for the prototypes to fit certain specifications, are also worth considering, especially with regards to the suppliers of the raw materials (Gitlow & Gitlow 1987). According to Gitlow & Gitlow (1987), the extent to which a firm and its suppliers are able to surpass the design specifications and meet the customers need, is really what quality conformance is all about. However the quality of performance can only be determined through research and sales, and service call analysis to determine how well the firm’s goods and services are doing in the market place (Gitlow & Gitlow 1987). Feedback from the quality of performance surveys, may lead to changes in design and in redesigning, thereby facilitate the continuity of the quality cycle. The 14 point method of Deming incorporates the use of statistical tools, and significant changes in the corporate culture of organizations intent on achieving a quality program, according to Gitlow & Gitlow (1987); it provides a framework for action as well as giving management bases from which they can formulate plans for which they may even lack the necessary experience. Organization leaders who embrace the 14 point system of quality have to back up that strategy with a commitment to change in their thinking and behavior patterns. The 14 Points entails, according to Gitlow & Gitlow (1987), Generating a constant purpose toward the improvement of the products and services offered, so that the competitive position can be maintained as well as the future viability of the business. Embracing a new philosophy which involves no tolerance for delays, mistakes, defective materials and poor skill in workmanship. Abolish dependency on mass inspections. Award business on the basis of quality and price rather than the past price orientated format. Make it a strategy to continually find problems and solve them, thereby improving the system. Inculcate modern training methods for employee on the job. Institute the latest supervisory strategies and methods. Develop a fear free environment so that all will work effectively for the organization. Remove all departmental barriers. Eliminate numerical goals, posters and slogans that seek new levels of productivity without providing methods. Abolish work standards that prescribe numerical quotas. Ensure there are no barriers that rob employees of their pride in workmanship. Make education and training a perpetual priority of the operation. Establish the ideal structure to ensure all previous 13 points be treated as a priority (Gitlow & Gitlow1987). Deming’s 4 Paradigms on Quality Intrinsic and Extrinsic Motivation A motivated worker is one that is doing his or her job willingly and well. However, for this to happen, managers must provide both intrinsic and extrinsic forms to their workers. Most of our behaviors according to Jung, are evaluated or judged on some criterion of quality and excellence of performance, and some of the incentive for the dedicated pursuit of achievement comes from social factors such as prestige, recognition and dedication of other people (Jung, J. 1978). Jung went further to add that, in addition to social factors, achievement is also rewarded by motivators like money and other material benefits, but if these extrinsic sources are not available, then workers can be satisfied by the gratification they received from successfully completing their tasks. Deming and Jung are also synchronously attached when the latter emphatically remarked that pride of accomplishment must serve as an intrinsic reward, which motivates behavior in and of itself (Jung, J.1978). According to Gitlow& Gitlow (1987), the management must provide for the basic needs of their workers first and foremost. These needs include safe working conditions, job security, stress free atmosphere, and excellent communications. They should also be involved as much as possible in the decision making process, have operationally defined job descriptions, and an understanding of the extended process, according to Gitlow&Gitlow (1987). It is also important that they be provided with the necessary training, tools, equipment, protective clothing, financial rewards for the services on a fair and equitable basis, as well as all other benefits accruing on a timely basis. Once these are provided, they will feel valued and are more likely to cooperate to improve on the quality products that are needed to be supplied to the customers. Improving Constantly and Forever The System of Production and Service to Improve Quality and Productivity and thus Constantly Decrease Cost. Continuous Improvement using Statistical Process Control was one of the methods Deming recommended. Statistical Process Control is a technique used to measure and analyze any process variations, especially in manufacturing situations, according to CSR. Techniques such as sampling, experimental designs, variation reductions, process capability analyses, and process improvement plans, are used to effect continuous improvement to any system according to CSR. Deeming stated that we are in a new economic age, and should adopt a new philosophy, which would involves the rejecting of all levels of delays, mistakes, defective materials and poor quality workmanships (Gitlow &Gitlow 1987). By means of the statistical Process Control, the defects in products, delays, mistakes, and poor workmanships would be minimized or even eliminated, and thereby perpetuate high quality products to the consumers. Companies that install techniques like control charts in their operations, are using graphical representation of certain descriptive statistics for specific quantitative measurements, according to CSR. Variations in measurements will usually alert processors to take corrective actions, so that the operations can then flow according to the established operating procedures (Gitlow &Gitlow 1987). The method also helps to reduce the cost of re-processing, which are usually reflected in the price of the final products. So in the final analysis, both the process and the end results experiences continuous improvement throughout all operations, along with a gradual decrease in the costs of the final products. In addition productivity will also increase, as the time spent to do mass inspections will be utilized in the actual production of goods. Optimizing the whole system According to Deming, there is no such thing as instant pudding (Deming W.E.1988). The entire system cannot achieve optimization overnight, but by following the six recommended steps by Tennor and DeToro (1992), it can be achieved. They recommend managers first define the problems, identify and document processes, measure performances, understand why, develop and test data, and then implement solutions and evaluate (Tennor, DeToro 1992). This strategy is directly linked with Deming’s fifth quality point statement, which says that managers should find problems and continually work on improving the system. By combining both experts’ philosophies, managers can improve their entire systems overtime, because when the errors are be found and eliminated, more highly efficient operations that are producing high quality products for the markets, will be realized on a continuous basis. Managers who conduct inspection of their system from all avenues, including suppliers sourcing, the training of the purchasers, the specifications of the process, the variable and fixed cost of production, and the daily readings from the control charts, will be able to make timely changes to improve the entire operation overall. They should also maintain the philosophy that each improvement adds to the success and profitability of the company, and be vigilant in order to preserve the image of their companies in terms of product quality and performance integrity. Cooperation to gain win/win situations A critical end product in the paradigm of continuous improvement is the ultimate satisfaction of the customer, according to Gitlow & Gitlow (1987). Companies stand to benefit financially, from delivering products that are ever improving in appearance, taste, and performance, because their customers will become loyal to their brands over the long term. This however, cannot be accomplished unless the cooperation of the workers are sought and obtained, so that win/win situations can evolve while delivering high quality products to consumers. According to Gitlow&Gitlow, in some organizations workers and managers are regarded and treated as commodities. They are not given adequate attention, especially regarding their problems, and when cooperation are sought from them, management may find it difficult to communicate successfully, and as a result both parties embrace lose/lose situations. However, in order for a win/ win scenarios to be achieved, managers must find out where they have gone wrong, and why workers may have lost their pride in doing their jobs well, and correct those situations. Deming’s Big 5 Paradigms Ending the practice of mass inspection In an effort to get managers to replace mass inspection with never ending improvement, Deming challenge them paradigmatically to cease dependence on the practice. This is because if statistical evidence is used to monitor quality of the products being manufactured, then there will be no need to authorize mass inspections at the end of the processing operations (Gitlow&Gitlow 1987). Deming further pointed out the big problems with mass inspections are that they are always too late, are not necessarily accurate, are performed under pressure; which decreases its propensity for accuracy, are waste of valuable production time, and are not done to improve the process or the quality of the products or the operations. The strategy Deeming outlines impedes an ongoing process, and is really managing for failure, but if suppliers have knowledge of what manufactures expects and demands, and they work together, then the use of mass inspection becomes obsolete over the short term (Gitlow& Gitlow 1987). Managing for failure is also a negative approach applied at the end of the process, according to Gitlow&Gitlow (1987); the entire process is what should be focused on instead, because this would positively impact the quality of the final product (Gitlow&Gitlow 1987). Eliminating the Practice of Awarding Business on the Basis of a Price Tag The paradigm of changing the philosophy of purchasing was also strongly advocated by Deeming, based on his arguments. He believes managers should end the practice of awarding business on the basis of price, and incorporate meaningful measures of quality as well (Gitlow &Gitlow 1987). This approach, together with a move towards one supplier for each product, will according to Deming, help develop long term relationships of loyalty and trust, which every business needs to survive in highly competitive markets (Gitlow &Gitlow 1987). Price according to Deeming has no meaning, unless a measure of quality is attached. It only allows businesses to drift to the lowest bidder, low quality, and inevitable high processing cost, which will negatively impact on the price consumers pays for the final products (Deeming, W. E.1982). However, purchasers who are excellent judges of quality, knows how their jobs fits into the process, are knowledgeable about product specifications, and knows what to do to satisfy customer on both sides of the equations, will contribute significantly to the high quality of finished products delivered on the market.(Gitlow& Gitlow 1987). Additionally, when manufacturers move toward single suppliers, they will reap benefits from these suppliers who possesses greater financial stability, labor stability political stability, efficient statistical process control, minimum down times, dependable vendor relationships, and high levels of quality conscious management, rather than that which obtains from multiple suppliers (Gitlow &Gitlow 1987). Driving out fear Deeming paradigm of driving out fear is essential, if everyone in the company is to work as a team in delivering the high quality products consumers needs. Workers who are fearful will display feelings of inadequacy, insecurity, and anxiety; which will lead to low morale and productivity, poor family relationships, unwillingness to take risks on behalf of the company, ineffective communications, a lack of creativity, and reduced motivation to work in the best interest of the company (Gitlow& Gitlow 1987). Managers who fail to drive out fear and the negativity associated with it, often open up themselves for the entrance of labor unions in their establishment, to fight for those fearful workers. Success can be achieved however, by these managers committing themselves to begin to treat employees in ways that will allay their fears; especially the threat of losing their jobs or benefits (Gitlow&Gitlow 1987). Activities establishing new goals with their inputs, improved training, and supervision, avoiding the blaming tendencies, and taking steps to re-inculcate sense of pride in workmanships, will go a long way towards eliminating fears in the workplace, and in the process lay the foundation for the thrust to build quality. Constancy of purpose Creating a constancy of purpose in any quality orientated organization starts with the skilful crafting of its mission and vision statements, so that they can galvanize the energies of employees at every level. It should encompass a philosophy that connects with the customers, suppliers, the community, compliance with the legal framework the company operates in, and the employees. Their effectiveness should be such that they alert managers if they are acting at odds with its true intents and purposes, empowers them to act on vital information received, provide awards for those that provide feedback, and motivate employees to take risks in cooperating with management desire for feedback (Gitlow &Gitlow1987). The task of communicating the mission and vision statements throughout the organization, regarding quality and other issues, and to obtain the same levels of focus and constancy, should not be the sole responsibility of senior managers, but for all levels of management, so that unity of command can be maintained. This will create climates where the lower levels of employees hears the same theme and philosophy over and over, and overtime give their support to the objectives of the company. The intensity of the mission and vision statement regarding quality should be felt even when new employees entering the company. By strategically socializing them as early as possible, the company may reap in the short term when they may become effective and efficient ambassadors of the drive to achieve constant of purpose in terms of its goals and objectives. Investors and other stakeholders should also be engrafted into the mission and vision of the organization, to ensure they become one with the organization’s desire to maintain a never ending commitment to improve quality and a competitive position (Gitlow&Gitlow 1987). Finally the community should become aware of the organization’s purpose by its public acts of commitment to good ethics, fairness, professionalism towards suppliers, government agencies, Equal Employment Opportunity compliance, Environmental Awareness, and constant support of employees engaging in community services. Eliminating Slogans Deming’s remarks about goal setting was and still is instructive today, because is still a high priority in any competitive environment. Goals setting according to Deming are necessary for you and me, but numerical goals set for people without providing road maps to reach them, have the opposite effects to the effects being sought (Deming, W., E. 1982). In terms of slogans, posters, and numerical goals Gitlow and Gitlow (1987), classified them as hollow exhortations, due to the belief that employees are handicapped by the system and can do nothing to satisfy the slogans. Slogans such as doing it right the first time, safety is job one, and zero defect days, are farcical according to Gitlow &Gitlow (1987), because there are no methods presented for achieving these targets (Gitlow&Gitlow 1987). By removing them and focusing on the never ending paradigm of improving the system, a better way to achieve higher productivity and excellent quality goods can be charted. Control Charts that shows management commitment to the paradigm, will no doubt lead to increase in morale and productivity, because employees will take great satisfactions in knowing that they have being contributing to the progress of the company, and the efforts have been recognized. The use of constant training and supervision will also help to eliminate the needs for slogans and posters; to the point where their employment at later dates may be seen as ludicrous by very motivated sets of employees. Case Studies and Examples The case of using one supplier to help companies achieve constant quality and benefits from mass production and good vendor relationship was brought out by Ford Company. The company introduced a system that shows how to evaluate suppliers. It had a minimum quality standard (QIOI) , and two lower progressive levels of awards QI and TQE, and in order to stimulate supplier improvement, those who fit into the higher category are given a 10% higher scores that those in the lower category (Tennor, A.R., DeToro, I.J. 1992). The program went on from 1964 until 1990 when Ford announced that from that year onwards, it will only supply award supplier contracts to those who were holders of the Q1 award status. Ford went on to develop a Total Quality Excellence (TQE) program to recognize excellence not only in product quality, but in delivery to schedule, technical assistance, and commercial performance (Tennor & DeToro1992). Another case of a company using one supplier instead of multiple suppliers was brought up by Deming, when he highlighted a company in 1975 that made the decision regarding the supply of cans to its manufacturing facility (Deming W.E. 1982). Prior to the decision, the company was playing one vendor against the other to get the lowest bid , but the Vice Presidents of Manufacturing, Marketing, and Purchasing got together, and decided that they would like to share the benefits of mass productions, and excellent vendor relationships by choosing a single supplier. They perceive this paradigm shift will enable them to generate and maintain continuous improvement throughout their operations (Deming, W.E.1982). Six years after the decision was made, the company to date has saved approximately $5m, and therefore had justified the strategy of choosing one source of supplies for their products (Deming, W.E.1982). Motorola Company won the Malcolm Baldrige Award for quality in 1988, and then told 3, 600 of its suppliers that they too must in turn compete for the award. This led to 200 of them refusing to comply, and were removed from the company’s prestigious list of suppliers (Tennor &DeToro 1992). Motorola no doubt adopted the continuous improvement system, by placing its suppliers in positions where they have to improve the quality of raw materials, and finished products being sent to the company. The logics of the issue is; if the suppliers quality increases, Motorola will also increase its quality, and by this token the company will be able to maintain its position of high quality and competitive position going forward. An example of how fear can be eliminated from quality conscious organization was shown by former Ford Chairman, Donald Peterkin in 1985. He charged an employee group to study the company performance appraisal system and recommend changes (Quality Progress 1985). Petersen philosophy indicated some aspects of Deming’s, when in an article he said, “We believe that our personnel evaluation system is a possible barrier to continuous improvement and quality performance…We know that the emphasis of any such system must be on developing teamwork throughout the corporation to meet the customers need. There is untold waste of human resources within the traditional evaluation systems” (Quality Progress 1985). Conclusions Deming’s philosophy on quality has been very transforming, in that several companies has adopted them, and has reaped profits in the tens of millions along with positions of dominance in their respective markets. Former Ford CEO Donald Peterkin says it well, when he remarked indirectly, that when leadership realized strategies are self defeating and isolating, and is directed at managing failures in terms of performance appraisals, and conducting mass inspections, and they make paradigm shifts towards Deming’s philosophy, they will reap the rewards. Deming’s work on quality is far reaching to the extent that it affects investors, communities, stakeholders, managers, and suppliers, leads to the choice of one supplier, the instituting process control measures, the elimination of fears, slogans and posters, the optimizing the whole systems, the maintenance of constancy of purpose through mission and vision statements, timely training and supervising employees, re-injecting a sense of pride in workmanship, and helping employees to feedback on strategies. Managers in the present as well as the future that adopts and execute these strategies and paradigms will enable their companies to deliver excellent products of high quality, for highly competitive markets. Motorola and Ford have shown that positions of excellence can be achieved constantly and when the right strategies are employed and the leaders are not isolated from their employees. Many managers may later say like Deming, “There are no instant puddings”. Reference 1. Gitlow, Howard S., Gitlow, Shelly J. (1987). The Deming Guide to Quality and Competitive Position. Prentice Hall, Englewood NJ p.8, 10, 11. 2. Jung, John, (1978).Understanding Human Motivation MacMillan Publishing Co. Inc New York p.135. 3. Center for System Reliability Statistical Process Control (CSR) www.reliability.sandia.gov/index.html 03/10/11 4. Deming, W.E., (1982). Quality Productivity and Competitive Position. MIT Center for Advanced Engineering Study, Cambridge, MA p.23. 5. Quality Progress (April 1985). Performance Appraisals and Quality. Ford’s New Philosophy p.42. 6. Tennor, Arthur, R., DeToro, Irving, J., (1992). Total Quality Management. Addison-Wesley Publishing Company, Reading MA p. 105, 201. 7. Deming, W.E. (January 22-28 1988). Statement at seminar. Methods for Management Productivity and Quality, George Washington University, Alexandria VA Read More