Management of Building Production (UEMC2433)

1. Management of Building Production (UEMC2433) Topic 8: The Wisdom of Quality Gurus Mr. Chia Fah Choy B. App. Sc. (Hons), M. Sc. chiafc@mail.utar.edu.my

2. Who are the Quality Guru? • W. Edwards Deming • Joseph M. Juran • Philip B. Crosby • Armand V. Feigenbaum • Kaoru Ishikawa • Genichi Taguchi

3. Guru • A respected and influential teacher or authority (Oxford Dictionary)

4. Quality Guru • A charismatic individual whose concept and approach to quality within business and life, has made a major and lasting impact

5. Who’s Who? b a Deming ____ Juran ____ Crosby ____ c

6. The Americans who brought the messages of quality to Japan and the world • W. Edwards Deming • Deming cycle • the 14 points of management • The system of profound knowledge www.deming.org

7. The Americans who brought the messages of quality to Japan and the world • Philip Crosby • Four absolutes of quality • 14 steps of quality improvement www.philipcrosby.com

8. The Americans who brought the messages of quality to Japan and the world • Joseph M. Juran • Quality trilogy • Quality planning • Quality control • Quality improvement

9. W. Edwards Deming • 1900-1993 • Believes quality is 85% the responsibility of management and 15% the responsibility of employee www.deming.org

10. A System of Profound Knowledge • Appreciation for a system • Understanding variation • Theory of knowledge • Psychology

11. A System of Profound Knowledge “Profound knowledge come from outside the system.” (p. 92) “A system cannot understand itself.” (p.101) “The various segments of the system pf profound knowledge cannot be separated. They interact with each other…”(p. 93)

12. A System of Profound Knowledge • “Knowledge of psychology is incomplete without knowledge of variation.” (p. 93) • “A manager of people needs to understand that all people are different. This is not ranking people. He needs to understand that the performance of anyone is governed largely by the system that the works in, the responsibility of management.” (p. 94)

13. A System of Profound Knowledge • “The theory of knowledge helps us to understand that management in any form is prediction.” (p. 101) • “Rational prediction requires theory and builds knowledge through systematic revision and extension of theory based on comparison of prediction with observation.” (p. 102)

14. A System of Profound Knowledge The barnyard rooster Chanticleer had a theory. He crowed every morning, putting forth all his energy, flapped his wings. The sun came up. The connexion was clear: His crowing caused the sun to come up. There was no question about his importance. There came a snag. He forgot one morning to crow. The sun came up anyhow. Crestfallen, he saw his theory in need of revision…

15. A System of Profound Knowledge • “…it is extension of application that discloses inadequacy of a theory, and need for revision, or even new theory. Again without theory, there is nothing to revise. Without theory, experience has no meaning. Without theory, one has no question to ask. Hence without theory, there is no learning.” (p. 103)

16. A System of Profound Knowledge • “Theory is a window into the world…” (p. 103)

17. Appreciation for the Systems • When every part of a system is working in support of another part, ‘optimization' occurs • How? • Elimination of • Internal competition • Numerical ratings • rankings

18. Deming’s View of a Production System Suppliers of materials and equipment Design and Redesign Consumer research Receipt and test of materials Consumers Production, assembly inspection A B C D Distribution Tests of processes, machines, methods INPUTS PROCESSES OUTPUTS

19. Deming Chain Reaction Improve quality Costs decrease Productivity improves Increase market share with better quality and lower prices Stay in business Provide jobs and more jobs

20. “I am filling a glass of water.”

21. A cloud masses, the sky darkens, leaves twist upward, and we know that it will rain. We also know that after the storm, the runoff will feed into groundwater miles away, and the sky will glow clear tomorrow

22. All these events are distant in time and space, and yet they are all connected within the same pattern. Each has an influence on the rest, an influence that is usually hidden from views. You can only understand the system of a rainstorm by contemplating the whole, not any individual parts of the pattern. Business and other human endeavors are also system… Senge M. P. (1990) The Fifth Discipline, Currency Doubleday, NY

23. System Thinking… • is a discipline for seeing… • whole • interrelationships rather than linear cause-effect chains • processes of changes rather than snapshots • dynamic complexity v detail complexity System thinking simplifies life by helping us see the deeper patterns lying behind the events and the details

24. Theory of Variation • Errors and inconsistencies will always exist • People apply the ‘wrong’ corrective action when something goes wrong • Recommends • Applying Shewhart/Deming cycle to analyze a problem • Use Shewhart’s control chart to tack activity

25. 15 Days Span 8 Customer want date 2 17 Averages vs Variation Customer Expectations: 8 day order delivery cycle Customer Look Internal Look Existing Processes Delivery Cycles (days) 20 15 30 10 5 16 Average cycle After Conventional Improvements (days) 17 2 5 12 4 8 Average cycle Customer feels nothing Internal Celebration 50% improvement Days late (+9) Days early (-6)

26. 2 Days Span 7 8 Customer want date 2 9 17 Averages vs Variation Customer Expectations: 8 day order delivery cycle 6 Sigma Internal Process (days) 7 9 9 8 7 8 Internal looks same Customer feels Six Sigma Days early (-1) Days late (+1)

27. A statistician once illustrated the point: ‘if I have one foot in bucket of ice and the other foot in a bucket of boiling water, on average, I’m OK!’ Is s/he ?

28. Deming Wheel Plan Act Do Study

29. The Deming Wheel (or PDSA Cycle) 1. Plan Identify the problem and develop the plan for improvement. 4. Act Institutionalize improvement; continue the cycle. 3. Study/Check Assess the plan; is it working? 2. Do Implement the plan on a test basis.

30. Theory of Knowledge • Knowledge comes from theory • Without theory there is no learning • An organization cannot ‘copy’ another company’s success in total quality improvement or formulate a ‘total quality plan’; it is a process that each company must develop on its own

31. Psychology • People are motivated intrinsically and extrinsically • Fear is demotivating • Managers should develop pride and joy in work • Train the people to measure ‘thing’ will keep them pushing their own standards higher to ‘beat’ themselves

32. Deming’s 14 Points • Create constancy of purpose for improvement of product and service • Adopt the new philosophy • Stop depending on mass inspection • End the practice of awarding business on the price tag alone • Constantly improve the system of production and service • Institute training • Institute leadership

33. Deming’s 14 Points • Drive up fear • Breakdown barriers between staff areas • Eliminate slogans, exhortations and targets for the workforce • Eliminate numerical quotas • Remove barriers to pride workmanship • Institute a vigorous program of training and retaining • Take action to accomplish the transformation

34. Beads Experiment Six person take part in a simple experiment. Each person will stir a mixture of red and white beads (4000), 20% red, draw blindfolded his sample of 50 beads, then return to the mixture for the next person. The aim is to produce white beads: our customer will not accept red beads.

35. Beads Experiment Actual results follow: Mike 9 Peter 5 Terry 15 Jack 4 Louise 10 Gary 8 TOTAL 51 Statistical Theory Avg. no. of red beads/worker = 51/6 = 8.5 Average proportion red = 51/(6 x 50) = 0.17 Limits of variation attribute to the system = = 16 and 1

36. Deming’s Seven Deadly Diseases • Lack of constancy of purpose • Emphasis on short-term profits • Evaluation of performance by merit rating or annual review performance • Mobility of management • Running a company on visible figures alone • Excessive medical costs for employee health care that increase the final costs of goods and services • Excessive costs of warranty, fueled by lawyers who work on the basis of contingency fees

37. Deming’s Obstacles • ‘we want overnight success’ • ‘investing in new technology will transform our industry’ • ‘give us a road map’ • ‘our problems are different’ • ‘our quality control department takes care of all our problems of quality’ • ‘we installed quality control’ • ‘it is necessary only to meet specifications’

38. Phillip B. Crosby Quality is free . . . “Quality is free. It’s not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.” www.philipcrosby.com

39. Phillip B. Crosby “The problem on quality management is not what people don’t know about it. The problem is what they think they do know.”

40. Phillip B. Crosby “Corrective action: It isn’t what you find, it’s what you do about what you find.”

41. Four Absolutes of Quality Management • The definition of quality is conformance to requirements • The system for causing quality is prevention • The performance standard for quality is Zero • The measurement of quality is the price of nonconformance

42. Acceptable Quality Level: 99.9% • 18 airplanes crash daily • 17,600 mail mix-ups hourly • 3,700 bad drugs dispensed daily • 10 dropped babies daily • $24.8 million mischarged hourly in banks • 500 bad surgeries weekly

43. Crosby’s 14 points • Management commitment • Quality improvement team • Measurement • Cost of quality • Quality awareness • Corrective action • Zero defects planning

44. Crosby’s 14 points • Employee education • Zero defects day • Goal setting • Error cause removal • Recognition • Quality councils • Do it all over again

45. Crosby’s 14 points • Employee education • Zero defects day • Goal setting • Error cause removal • Recognition • Quality councils • Do it all over again

46. Juran • Defines quality as ‘fitness for use’. • His approaches focus on: • to attack sporadic problems • to attack chronic problems • annual quality programme • Major kinds of quality management: • breakthrough: occurrence of good things – attack chronic problems • control: preventing occurrence of bad things – attack sporadic problems www.juran.com

47. Improvement Process Symptom Cause Remedy Improvement Diagnosis

49. Juran’s Quality Trilogy • Quality planning • Quality control • Quality improvement

50. Quality Planning • Establish quality goals • Identify customers • Determine customers’ needs • Develop services corresponding to customers’ needs • Develop processes which can create those services • Establish process controls