Customer Focus in Tqm
Quality philosophies
Evolution of TQM philosophies
The Deming Philosophy Definition of quality, ³A product or a service possesses quality if it helps somebody and enjoys a good and sustainable market.´
Improve quality Decrease cost because of less rework, fewer mistakes. Productivity improves
Long-term competitive strength
Stay in business
Capture the market with better quality and reduced cost.
2
The Deming philosophy
1. ³A System of Profound Knowledge´ Appreciation for a system - A system is a set of functions or activities within an organization that work together to achieve organizational goals. Management¶s job is to optimize the system. (not parts of system, but the whole!). System requires cooperation. Psychology ± The designers and implementers of decisions are people. Hence understanding their psychology is important.
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The Deming philosophy
3. Understanding process variation ± A production process contains many sources of variation. Reduction in variation improves quality. Two types of variationscommon causes and special causes. Focus on the special causes. Common causes can be reduced only by change of technology. Theory of knowledge ± Management decisions should be driven by facts, data and justifiable theories. Don¶t follow the managements fads!
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The Deming philosophy
14 points for management: 1. Create and publish to all employees a statement of the aims and purposes of the company. The management must demonstrate their commitment to this statement. 2. Learn the new philosophy. 3. Understand the purpose of inspection ± to reduce the cost and improve the processes. 4. End the practice of awarding business on the basis of price tag alone. 5. Improve constantly and forever the system of production and service.
5
The Deming philosophy
6. 7. 8. 9. 10. 11. 12. 13. 14. Institute training Teach and institute leadership. Drive out fear. Create an environment of innovation. Optimize the team efforts
Evolution of TQM philosophies
The Deming Philosophy Definition of quality, ³A product or a service possesses quality if it helps somebody and enjoys a good and sustainable market.´
Improve quality Decrease cost because of less rework, fewer mistakes. Productivity improves
Long-term competitive strength
Stay in business
Capture the market with better quality and reduced cost.
2
The Deming philosophy
1. ³A System of Profound Knowledge´ Appreciation for a system - A system is a set of functions or activities within an organization that work together to achieve organizational goals. Management¶s job is to optimize the system. (not parts of system, but the whole!). System requires cooperation. Psychology ± The designers and implementers of decisions are people. Hence understanding their psychology is important.
2.
3
The Deming philosophy
3. Understanding process variation ± A production process contains many sources of variation. Reduction in variation improves quality. Two types of variationscommon causes and special causes. Focus on the special causes. Common causes can be reduced only by change of technology. Theory of knowledge ± Management decisions should be driven by facts, data and justifiable theories. Don¶t follow the managements fads!
4.
4
The Deming philosophy
14 points for management: 1. Create and publish to all employees a statement of the aims and purposes of the company. The management must demonstrate their commitment to this statement. 2. Learn the new philosophy. 3. Understand the purpose of inspection ± to reduce the cost and improve the processes. 4. End the practice of awarding business on the basis of price tag alone. 5. Improve constantly and forever the system of production and service.
5
The Deming philosophy
6. 7. 8. 9. 10. 11. 12. 13. 14. Institute training Teach and institute leadership. Drive out fear. Create an environment of innovation. Optimize the team efforts