Old Philosophy: Productivity first, quality follows.

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• Old Philosophy Productivity first, quality
  follows.
• Quality Costs Quantify the apparent costs of
  achieving a certain level of quality.
• New Philosophy quality is job 1, productivity
  follows.
• Quality Costs What are the costs of not having
  quality? What are the costs associated with lost
  opportunity?

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Demings approach

• Reduce uncertainty variability in the design
  manufacturing processes by using SQC methods
• Advocate a never-ending cycle of quality
  improvement
• Higher quality leads to higher productivity which
  leads to long-term competitive strength.
• Top management has the ultimate responsibility
  for quality improvements.
• All employees should be familiar with statistical
  techniques.
• Two ways to improve a process
• eliminate common causes
• eliminate isolated special causes
• Calls for changes in incentive structures,
  supplier relationships, and training programs
• 14 Points of Management
• 7 Deadly Diseases

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Demings Cycle
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In the Western World, Managers Frequently Operate
Using the Following Paradigms (Gitlow, Oppenheim,
Oppenheim, 1995)

• Rewards and Punishment are the most important
  motivations for people and organizations.
• Winners and losers are necessary in most
  interactions between people and between
  organizations.
• Results are achieved by focusing on productivity
  (as opposed to quality)
• Quality is inversely related to quantity.
• Rational decisions can be made based on guesswork
  and opinion, using only visible figures.
• Construction, execution and control of plans is
  solely the function of management.
• Organizations can be improved in the long term by
  fighting fires
• Superiors are your most important customers
• Competition is a necessary aspect of personal and
  organizational life.

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Discussion Questions

• What are some of the Quick Fixes that are
  mentioned in the Four Days with Dr. Deming
  book? Why does Dr. Deming consider them Quick
  Fixes?
• Have you heard any of the Comments Overheard in
  the Prison Compound on page 31?

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Demings 14 Points

• 1) Constancy of Purpose
• 2) Adopt the New Philosophy

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• What is a system of Profound Knowledge?

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• 3) End Dependence on Mass Inspection
• 4) Reduce the number of multiple source suppliers

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• Use Statistical Techniques for Process
  Improvement.
• Institute Training

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• 7) Provide Supervision
• 8) Eliminate Fear

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• 9) Eliminate Barriers Between Staff Areas
• 10) Eliminate Slogans

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• 11) Eliminate Work Standards and Quotas
• 12) Remove Barriers to Pride of Workmanship

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• 13) Institute a Vigorous Program of Education and
  Retraining (in New Skills)
• 14) Take Action to Accomplish the Transformation

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The Seven Deadly Diseases

• 1) Lack of Constancy of Purpose
• 2) Emphasis on Short Term Profits
• 3) Merit Ratings, etc.
• 4) Mobility of Top Management
• 5) Running a Company on Visible Figures Alone
• 6) Excessive medical costs
• 7) Excessive warranty costs