...Miguel Cavazos For DECISION ANALYSIS BUSI 3343-02 On W.EDWARDS DEMING Professor Manuel Alcocer Table of Contents 1. Brief biography 2. Deming System 3. Conclusion Appendices 1. References Biography Deming was a well known professor who taught at New York University Graduate school of Business and Administration and at Columbia University. One of Deming’s ideas on quality control was prominent in Japan. Deming philosophy and teaching where shown by examining the kind of results of how much was produced after it was adopted by any other industry. This was known as the Deming System which is a very effective method. Ford Motor Company adopted Deming's idea which was called quality / culture". Deming's famous Management-Program consists of 14 points for improvement and 7 of things to be avoided. Most of these points are trivial. Deming created this idea quality / culture in 1930. This helped the Ford Motor Company because it was making a car model with transmission made in U.S. and Japan. Customers wanted U.S cars with japans transmission but the parts were not compatible until they went ahead and changed every part. Deming System The idea of W. Edwards Deming may be common now but they’ve become combined in our culture of work. The idea of hard work, sincerity, decency, and personal responsibility, has change the way our management was. “It’s not enough to just do your best at work; you must know what you should work on.” The simple methods...
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...It has been proven that a company can increase its profitable operations by eliminating wasteful and unnecessary steps. During the 1950s, companies first began to evaluate the cost associated with quality. This initiative was a result of the convergence of several forces. First, the cost of quality began to grow due to the growth in volume of complex products, which demanded higher precision and greater reliability. Second, the extreme growth of “long-life” products that resulted in high costs due to failures, maintenance labor, and spare parts. (Often the costs of keeping such products in service exceeded the original purchase price.) Third, the pressures arising from the phenomenon of quality in Japanese operations began to mount. Finally, American manufacturers realized the urgent need for quality specialists who could express their findings and recommendations in the language of upper management – the language of money. The concept of the “cost of quality” takes the business of quality out of the abstract and brings it sharply into focus as cold, hard cash. Philip Crosby notes that his estimate that “companies spend one of every four dollars” on quality costs “has proven to be low over the years.” In fact, Crosby contends that service and administrative organizations spend 40% of their cost structures on quality costs, while the portion of the operating budget of production companies going to wasted manufacturing is an easy 25% of revenue. Since American companies became...
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...An organization will benefit from establishing an effective process management tool. Process management is the assembling of activities, planning, and monitoring the performance of a process. The cornerstone of an effective process management tool is the concept of reporting and improving processes with the goal of meeting consumers requirement and profitably. For a process to become effective, management must meet customer satisfaction and profitably that interfaces and extend into, and outside, the organization, beyond the immediate customers and profitability goals. The focus of this paper is improving process management at Hartman Industries, LLC. The process management that needs improvement is the company’s flowchart. Within this paper the team will also summarize, explain, and define process management as it relates to the company’s flowchart. The team will also present an implementation plan for the chosen quality improvement process and an example of the quality tools use for reducing process variability. “Companies are often in search of ways to provide a high-quality product at a reasonable price” (Kömrcü & Şahin, 2012, p. 484). Improving quality is a topic for companies small and large because producing a quality product greatly affects the survival of companies. Companies use various methodology and tools to improve quality. Hartman Industries use a flowchart as a visual representation for the company’s production process. Each step in the flowchart represents...
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...Total Quality Pioneer Quality management is the function that determines quality in businesses. In this paper I will discuss four functions that work hand- in- hand with quality management. First, the definition of quality and its elements will be discussed. Second, explain how the elements made the pioneer successful. Third, explain how the elements are useful in today’s environment. Fourth, discuss how I think quality will evolve in businesses. Definition of quality There are many interpretations of what quality is. It can vary, depending on the circumstance. A good definition of what quality means can be defined as meeting the needs and expectations of a customer (tutor2u, 2012). Quality has many elements that can contribute to how effective it can be. The organization where I am employed has five elements that help meet and exceed it goals. The first element is ethics; employees must be aware of what is good and what is bad in any given situation of an organization. Air Transport International, LLC (ATI) organization ethics establish a business code of ethics, which all employees are held accountable. ATI’s business code of ethics is outlined in their employee handbook and each employee must adhere to. Second, integrity is what customers expect. Employees with good morals and values carries weight in relation to how customers perceive an organization, if employees have good morals and value it will be seen by his or her interactions with fellow employees...
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...The Deming Approach W. Edward Deming's philosophy is one that focuses on continuous improvement at all levels of an organization for all products and services. The philosophy is articulated in Deming's 14 Points and Seven Deadly Diseases. Deming's philosophy and TQM go hand in hand. You would be hard-pressed to find a TQM implementation that did not have Deming's philosophy as part of its foundation. Deming noted the villain was variation, and variation exists in everything. Our challenge is to identify and reduce variation in order to improve the quality of the items produced or services provided. For years, many struggled with Deming's points. Some complained that many of the points were not realistic, asking, for example, how can you run a business without using numbers? Doing so was just not possible, they said. In his 1993 book, The New Economics for Industry, Government & Education, Deming provided insight into his thinking. In the text is a chapter titled Theory of Profound Knowledge. Here, Deming outlined the basic thinking for creating change. There were some who intuitively understood his theory years before it was published. Those were the people and groups that had been successful in implementing TQM. The changes required to implement Deming's philosophy are not easy and will take time, but the rewards are worth the changes. We only need to look a Toyota to see just what can be accomplished! For many, if not most, U.S. businesses, Deming's ideas are revolutionary...
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...(1)http://www.leanexpertise.com/TPMONLINE/articles_on_total_productive_maintenance/tpm/tpmroberts.htm TPM TOTAL PRODUCTIVE MAINTENANCE History and Basic Implementation Process by Jack Roberts, Ph.D. Jack_Roberts@TAMU-Commerce.edu Department of Industrial and Engineering Technology Texas A&M University-Commerce Abstract: Total Productive Maintenance (TPM) is a maintenance program which involves a newly defined concept for maintaining plants and equipment. The goal of the TPM program is to markedly increase production while, at the same time, increasing employee morale and job satisfaction. The TPM program closely resembles the popular Total Quality Management (TQM) program. Many of the same tools such as employee empowerment, benchmarking, documentation, etc. are used to implement and optimize TPM. This paper will define TPM in some detail, evaluate its strengths and weaknesses as a maintenance philosophy, and discuss implementation procedures. Examples of successfully implemented programs will be presented. I. What is Total Productive Maintenance? Total Productive Maintenance (TPM) is a maintenance program concept. Philosophically, TPM resembles Total Quality Management (TQM) in several aspects, such as (1)total commitment to the program by upper level management is required, (2) employees must be empowered to initiate corrective action, and (3) a long range outlook must be accepted as TPM may take a year or more to implement and is an on-going...
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...EFQM Excellence Model What does it mean? The EFQM is the abbreviation of European Foundation for Quality Management and is a not-for-profit membership foundation in Brussels, established in 1989 to increase the competitiveness of the European economy. The initial impetus for forming EFQM was a response to the work of W. Edwards Deming and the development of the concepts of Total Quality Management. What kind of model it is? The EQFM has a model which provides a holistic view of the organisation and it can be used to determine how different methods fit together and complement each other. The Model can therefore be used in conjunction with any number of tools, based on the needs and function of the organisation, as an overarching framework for developing sustainable excellence. There is not a specific type of companies which can participate in the competition some of the main areas we can find here are: education, energy & utilities, healthcare, IT & Technologies, Manufacturing, Material, NGO/Associations, Public Administration, Retail, Services and Transport & Logistics. But in order to become a member of this organization you must pay a fee which is based on the annual turnover of the organization Annual Turnover | Category | Standard Fee | More than 1 billion Euros | A | €11,000 | Between 100 million and 1 billion Euros | B | €5,500 | Between 5 million and 100 million Euros | C | €2,700 | Less than 5 million Euros | D | €1,350 | What...
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...Continuous improvement -Demming theory Deming theory Dr. W. Edwards Deming developed a method for the quality improvement process. He believed that the identification and correction of defects after production is not effective. The quality issue is critical to address before production rather than after production (Doherty, 2003). Along with this, it is identified that quality control issues arise due to poor management. If the processes are in place, their performance can be measured and changes can be made to improve the quality of products and process. For the continuous improvement, employee involvement is necessary. So, it is important to use highly effective techniques for continuous improvement in the workplace. According to Deming theory, the job of management is neither to assess employee output numerically nor to inspect product quality after production. But the management is responsible to create a production process and organizational culture that encourages employees for quality work (Gitlow, 2000). Deming proposed 14 principles of management such as: Develop constancy of purpose for improvement in products and services Adopt a new philosophy of economy Stop dependence on inspection to gain quality of products and services End the practice of awarding business according to the price tag. Improve the production system and quality to reduce costs Provide on the job training (Gitlow, 2000). Adopt new methods of leadership and supervision Drive...
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...372 Quick Review Sheet Videos Toyota • Lift trucks, number 1 in lift truck sales since 2002 Ships • WWII, German U boats sunk more ships than could be produced • Henry J Kaiser, not a sailor, worked on Hoover and San Fran Bay bridge • Liberty Ships, 3 per day, fastest produced in 80 hours Deming History • W. Edwards Deming, statistician who worked for census bureau • Created JIT, Deming circle • Focused on quality control and that workers were important Alaskan Pipeline • Large influx of workers, 28000 at the peak • Wages were good and living quarters were nice • Only 10% women and there were some marriages • Main issue was permafrost so had to build above ground Container Ships • 90% of materials shipped in steel containers • 1/3 of imports brought through Long Beach California JIT – Just in Time, MRP used to combat risk MRP (inbound) – Materials Requirements Planning, Part of larger system QR – Quick Response ECR – Efficient Consumer Response VICS – Voluntary Inter-Industry Communication Standards Committee POS – point of sale DRP (outbound) – Distribution Requirements Planning SKUs – Stock-Keeping Units STB – Surface Transportation Board ICC – Interstate Commerce Commission EOQ – Economic Order Quantity, Works best with single facility, always round up EOQ = square root (2DP/CV) P = Ordering Cost per order D = Annual demand of product C = Annual inventory carrying cost (as a % of product value) V = value of inventory item ...
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...Case Study Turnaround at the Preston plant The Preston plant of Rendall Graphics was located in Preston, Vancouver. The plant was bought from the Georgetown Corporation by Rendall in March 2000. The plant produced Precision coated papers for ink-jet printers which accounted for the majority of the plant’s output. The plant started to experience problems in the quality of their output of the ink-jet paper and had received feedback in late 1998 from Hewlett-Packard (HP) about the problem. The team at Preston worked to resolve the problem and in October of 1999 made recommendations for a revised and improved coating formulation. However in 2000, productivity, scrap and re-work levels continued to be poor. Operations Management team’s response was to increase the speed of the line and made a number of changes to operating practice in order to raise productivity. In the spring of 2000, two significant events happened to the Preston plant. Rendall Corporation purchased the plant, even though it was losing around $2 million a year. Rendall was not impressed by what they found at the plant and it seems that they did not do a very good analysis of the overall operations of the plant and the management of its operations. The second event that happened was that HP asked the plant to bid on a contact for a new ink-jet platform. The main concern that the operations management had with HP’s observations and feedback was that, HP continued to have complaints on quality...
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...and services. Sig Sigma focuses on three key elements of quality: Customer, Process and Employee. The “Customer” expects performance, reliability, competitive prices, on-time delivery, service, clear and correct transaction processing and more. The “Process” requires for the company to look at their business from the customer's perspective, not theirs. The “Employee” quality is the responsibility of every employee. Every employee must be involved, motivated, and knowledgeable if any company is to succeed (General Electrics, 2011). Many people have contributed various concepts to the definition of total quality. There are three major contributors that pioneer total quality. These contributors are W. Edward Deming, Joseph M. Juran, and Philip B. Crosby. Edward Deming is best known for his work in Japan where from 1950 and onward he taught top management and engineer’s methods for management of quality. This teaching dramatically altered the economy of...
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...According to GE, (2010) there are three main elements of quality; customer, process, and the employee. GE has used these elements of quality to keep their business booming and maintain their competitive advantage. GE has a philosophy that says delighting their customers is a necessity because if they don’t delight their customers then someone else will. W. Edwards Deming is one of the most well known pioneers in Quality and is known for developing the Deming Cycle. The Deming Cycle consists of five parts; 1. Plan – Conduct consumer research and use the research in product planning. 2. Do – Produce the product 3. Check – Check the product to make sure it was produced the way it was planned 4. Act – Market the product 5. Analyze – Analyze how the product is received in the marketplace in terms of quality, cost, and any other criteria The Deming Cycle was developed to link the production of a product with consumer needs and focus the resources of all departments. This philosophy is both summarized and operationalized by Deming’s fourteen points. The fourteen points summarize Deming’s views on what a company must do to effect a positive transition from business as usual to world-class quality and they can be modified to fit specific applications. The elements of quality are useful in today’s business market because no longer are people just trying to compete locally. With the technology available today it is making it easier for companies to go global. When a company...
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...expectations and helps produce superior value (Goetsch and Stanley). There are a few total quality pioneers but the one that is going to be discussed is W. Edward Deming. Deming has been known as the most influential proponent in quality management in the United States (Goetsch and Stanley). Deming worked at Western Electric and it is here that he began the use of statistics in quality because he noticed the great amount of waste that was at Western Electric. In 1940 Deming tried to help the U.S. Bureau of Census with the adoption of statistical sampling technique but at this Deming’s findings wasn’t being received positively. It wasn’t until WWII that Deming began his success with quality. During WWII Japan began to produce war materials. When the war ended Japan had to change to the production of consumer goods. Japan asked Deming to come over and help change the worlds existing paradigm that Japan produced cheap, shoddy imitations to one of producing innovative quality products (Leadership Institute, 2005). Deming told the Japanese that if they would follow his plan then their desired outcome to change everyone’s mind about the quality of products that are being produce in Japan will change in a few years. Deming made such a huge impact on Japan that the most prized award that can be given to a company is the Deming prize. It wasn’t until the 1980’s that Deming’s services were wanted by the United States. Deming’s has had a huge impact with the quality movement; many...
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...Quality Pioneer: W. Edwards Deming Melissa McLean University of Phoenix MGT/449 Gary Hudson January 24, 2011 Total Quality Pioneer: W. Edwards Deming It can be challenging to define exactly what quality is, as it varies on each individual’s perspective. Different individuals tried their hand at pioneering the concept of total quality management. W. Edwards Deming was known as a quality pioneer in the total quality movement. Today, the implementations of Deming’s elements of quality are essential to the success of organizations in attaining high customer satisfaction. Based on the elements that can be extracted from the idea of quality, the definition is best suited as a dynamic state associated with products, services, people, processes, and environments that meets or exceeds expectations and helps produce superior value (Goetsch, D. & Davis, S., 2010). There are three main elements of quality. The first element is to meet or exceed customer expectations. The second element states that quality applies not only to products and services, but also, people, processes, and environments. The third element of quality is that it is constantly changing. This meaning that a product that was considered of high quality ten years ago may not hold that same level of quality today. W. Edwards Deming was known as one of the best quality pioneers in the United States. At first the major U.S. organizations did not feel they need the assistance of Deming do to their being no...
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...The Juran Trilogy: It is one of the best approaches developed by Dr. Joseph Juran. It has three components: Planning, control, and improvement, and is referred to as the Juran Trilogy. It is based loosely on financial processes such as budgeting (planning), expense measurement (control), and cost reduction (improvement). Quality Planning: The structured process for designing products and services that meet new breakthrough, goals and ensure that customer needs are met. The processes are called Design for Six Sigma or Concurrent Engineering. This can be particularly challenging for a planning team, because customers are not always consistent with what they say they want. The challenge for quality planning is to identify the most important needs from all the needs expressed by the customer. The planning component begins with external customers. Once quality goals are established, marketing determines the external customers, and all organizational personnel determine the internal customer. Once the customers are determined, their needs are discovered by: Being a user of the product or service, * communicating with customers through product or service * satisfaction and dissatisfaction information, or * Simulation in the laboratory. The next step in the planning process is to develop product and/or service features that respond to customer needs, meet the needs of the organization and its suppliers, are competitive, and optimize the costs of...
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