Quality Management (Brun) by Cremaschi

DEMING'S PROFOUND KNOWLEDGE SYSTEM

Inspired from different disciplines (from systems theory from management science to behavioural theories taught by business schools), recognised their synergy and developed them into a unified universal theory of management.

1. Appreciation for a system

Systems must be focused towards a purpose; components of any system must work together. Due to interactions, it is not possible to effectively manage the whole system if a company is organised in functional silos. Sub optimization results in losses everywhere in the system. E.g. minimising manufacturing costs alone might result in products not meeting designers' specs and/or customer needs.

When people don't understand systems:

• they see events as individual incidents rather than the results of many interacting factors
• they see the symptoms but not the deep causes of problems
• they don't understand how an intervention in one part of the system can cause havoc in another

place• they blame individuals for problems even when they have no ability to control the eventsaround them• they don’t understand the ancient African saying, “it takes a whole village to raise a child”

2. Understanding the variation

We see variation everywhere, from hitting golf balls to the meals and service in a restaurant. Today,manufacturing technologies allow to produce huge quantities of parts with very little variation –however variation stemming from human behaviour continues to hamper quality efforts. Firstunderstand (see Quincunx simulation), then work to reduce variation.

By reducing variation: the producer benefits the need for less inspections, less scrap and reworks,more consistent human performance, higher productivity and customer satisfaction. The customerknows that all products and services have similar quality characteristics and will perform or bedelivered consistently.

Statistical methods are the primary tools to identify and quantify variation.

Statistics has to be the common language. Every employee has to be familiar with statistical techniques and problem-solving tools.

When people don't understand variation:

• They don't see trends when they are occurring, they see trends when there are none
• They don't know when expectations are realistic
• They don't understand past performance, so they can't predict future performance
• They give others credit or blame when those people are simply either lucky or unlucky
• They are less likely to distinguish between fact and opinion

Theory of knowledge: "There is no knowledge without interpretation. If interpretation, which represents an activity of the mind, is always subject to the check of further experience, how is knowledge possible at all? An argument from past to future at best is probable only," and even this probability must rest on principles which are themselves more than probable - Clarence Irwing Lewis, Mind and the

from reaching its full potential. Instead, leaders should focus on creating a positive work environment that encourages collaboration, creativity, and growth. 75. Communication Effective communication is essential for successful leadership. Leaders must be able to clearly articulate their vision, goals, and expectations to their team members. They should also be good listeners, open to feedback and willing to address any concerns or issues that arise. 76. Decision-making Leaders are often faced with making difficult decisions. They must be able to gather and analyze relevant information, consider different perspectives, and weigh the potential risks and benefits before making a final decision. It is important for leaders to be confident in their decision-making abilities and willing to take responsibility for the outcomes. 77. Adaptability In today's fast-paced and ever-changing business environment, leaders must be adaptable. They should be able to quickly adjust their strategies and plans in response to new challenges or opportunities. Being adaptable also means being open to new ideas and willing to embrace change. 78. Emotional intelligence Emotional intelligence refers to the ability to understand and manage one's own emotions, as well as the emotions of others. Leaders with high emotional intelligence are better able to build strong relationships, resolve conflicts, and motivate their team members. It is an important skill for effective leadership. 79. Integrity Integrity is a fundamental trait of a good leader. Leaders must be honest, trustworthy, and ethical in their actions and decisions. They should lead by example and hold themselves to high moral and ethical standards. Integrity builds trust and credibility, which are essential for effective leadership. 80. Resilience Leadership can be challenging and demanding. Leaders must be resilient and able to bounce back from setbacks and failures. They should remain positive and optimistic, even in difficult times, and inspire their team members to do the same. Resilience is key to overcoming obstacles and achieving success. Remember, leadership is not about having all the answers or being perfect. It is about continuously learning, growing, and inspiring others to reach their full potential.

From reaching its full potential. If people cannot enjoy their work, they will not be productive and focused on quality principles. Pay is not a motivator (this is actually one of Deming's more controversial beliefs).

When people don't understand psychology:

• They don't understand what motivates people to do what they do, and resort to carrot-and-stick methods
• They revert to coercive and paternalistic approach
• They don't understand the process of change and resistance to it
• They create cynicism, demoralization, demotivation, guilt, resentment, burnout, craziness and turnover

2.2 Joseph Juran (1904-2008)

Born in Romania and raised in the US, he joined Western Electric in the 20's. In 1951 wrote the Quality Control Handbook. Taught quality principles to Japanese in the 50's.

Difference with Deming's view:

• Did not propose a major cultural change in the organization, rather sought to improve quality by working within the system

familiar to managers• Gives indications about implementation plans• Fear is good – “can bring out the best of people”• Statistics is no common language – top managers speaks the language of dollars, workers speak the language of things

At organizational level, we should use quality cost accounting and analysis to focus attention. At operational level (job level), we should focus on increasing conformance to specs and defects elimination, supported by statistical tools.

Juran know that entrepreneurs or super managers can't have their mentality changed. They have closed mindset, but this should not exclude them from a quality improvement. Juran said that a little change is a start of a journey, Deming thought only a change in mindset would help. Juran has a very hands on, practical approach, that gives a rule of thumb solution to various problems in his quality manual handbook.

Juran’s definition of Quality“External” view - Product

the concept of customer satisfaction and quality management was gaining importance in the business world. Juran's Quality Trilogy provides a framework for organizations to achieve and maintain high levels of customer satisfaction through quality planning, quality control, and quality improvement. Quality planning is the first step in the Quality Trilogy. It involves identifying customers and their needs, translating those needs into specifications, and developing product features and processes that can meet those specifications. This step ensures that the organization is prepared to meet the quality goals set by the customers. Quality control is the second step in the Quality Trilogy. It focuses on meeting the quality goals during operations. This involves determining what needs to be controlled, establishing standards of performance, measuring performance, interpreting any differences, and taking appropriate action to address those differences. By effectively controlling the quality of products and processes, organizations can ensure that they meet the expectations of their customers. Quality improvement is the final step in the Quality Trilogy. It aims to break through unprecedented levels of performance. This step involves identifying specific improvement projects, organizing support for those projects, diagnosing the root causes of any issues, providing remedies to address those causes, proving the effectiveness of the remedies, and establishing control measures to maintain the improvements. By continuously improving their products and processes, organizations can achieve higher levels of customer satisfaction and overall performance. Juran's Quality Trilogy provides a comprehensive approach to quality management, emphasizing the importance of customer satisfaction and continuous improvement. By following this framework, organizations can enhance their performance and ensure that their customers are satisfied with their products and services.

Few companies were engaging in any significant planning or improvement activities.

Philip B. Crosby (1926-2001), Corporate VP for quality at International Telephone and Telegraph (ITT), wrote the Absolutes of Quality Management:

• Quality means conformance to requirements, not elegance. There is no transcendent definition of quality. Once requirements are established, it is the responsibility of management to take measurements to assess conformance.
• There is no such thing as a quality problem. Problems must be identified by individuals or departments causing them. The quality department should measure conformance, report results, and foster a positive attitude towards quality improvement.
• There is no such thing as the economics of quality. Doing the job right the first time is always cheaper. Quality is free! (Note: "always" is a strong concept. When a company reaches the saturation point, efforts should be dedicated to other problems. This guy was talking in a moment where there were 200,000 errors.)

Per million, today we are at 20-3,4 errors per million)

• The only performance measurement is the cost of quality
• Measure and publicize the cost of quality
  • To call problems to management's attention
  • To identify opportunities for corrective actions
  • To track quality improvements over time
• Plot quality costs: most often equal 15-20% of sales; world class could be as low as 2,5% of sales (primarily in "prevention" and "appraisal" categories)
• The only performance standard is "Zero Defects"

Zero defects is the standard of the craftsperson regardless of his or her assignment. The theme of ZD is to do right the first time. That means concentrating on preventing defects rather than just finding and fixing them. People are conditioned to believe that error is inevitable; thus, they not only accept error, they anticipate it. It does not bother us to make a few errors in our work... to make mistakes is human. We do not maintain this standard, however,

When it comes to our personal life. If we did, we should expect hospital nurses to drop a constant percentage of new-born babies which we do not tolerate. We have a dual standard: one for ourselves and one for our work. Most human error is caused by lack of attention rather than lack of knowledge. Lack of attention is created when we assume that error is inevitable. If we pledge ourselves to make a constant conscious effort to do our jobs right the first time, we will take a giant step towards eliminating the waste of rework, scrap and repair that increases cost and, on turn, reduces profitability. On the other hand, Juran and Deming would point out the uselessness, or even hypocrisy, of exhorting a line worker to produce perfection… Crosby's Basic Elements of Improvement:

• Determination - I really want to increase quality
• Education - Everyone should understand the Absolutes through education
• Implementation - Unlike Juran and Deming, Crosby's

approach was primarily behavioural. Using management and organizational processes to change corporate culture and attitudes. His approach fit well within existing organizational structures.

2.4 A.V. Feigenbaum (1922 – 2014)

Manager of worldwide manufacturing and quality control at General Electric. He coined the term "Total Quality Control":

"An effective system for integrating the quality development, quality maintenance and quality improvement efforts of the various groups in an organization so as to enable production and service at the most economical levels which allow full customer satisfaction."

He also popularised the term "Hidden Factory", i.e. the portion of plant capacity wasted due to poor quality.

Feigenbaum's "Three Steps to Quality":

• Quality leadership
• Modern quality technology
• Organizational commitment

Through the concept of