Productivity Quality Management Notes What Quality

What is quality -- the experts opinion
Only through the collective efforts of their individual

members do companies change; companies are
incapable of changing themselves.
-- V. Daniel Hunt
This question has been debated for many years and varies considerably even with the
quality experts (as outlined in the comparison tables below). For certain, the experts
agree, the outcome affects all businesses today and will continue to do so in the future.
(note: this comparison was originally based on
an article published in the "Quality" magazine, May 1992)
Table 1 - A comparison of Deming, Juran, and Crosby

W. Deming
J.M. Juran
P. Crosby
Basic orientation
toward quality
Technical
Process
Motivational
What is quality?
Nonfaulty systems
Fitness for use;

freedom from
trouble
Conformance to
requirements
Who is responsible
for quality?
Management
Management
Management
Importance of
customer
requirements as
standard
Very important
Very important;
Very important
customers at each
step of product life
cycle
Goal of quality
Meet/exceed customer Please customer;

needs; continuous
continuous
improvement
improvement
Continuous
improvement; zero
defects
Methods for
achieving quality
Statistical; constancy of
purpose; continual
improvement;
cooperation between
functions
Cost of quality;
quality trilogy:
planning, control,
improvement
14-point framework;
Chief elements of
implementation
14-point program
Breakthrough
projects; quality
council; quality
teams
14-step program;
cost of quality;
quality management
"maturity grid"
Role of training
Very important for

Very important for
managers and workers managers and
employees
For additional
The W. Edwards
details, see web site: Deming Institute
Juran Institute
Very important for

managers and
employees
Philip Crosby
Associates II
Table 2 - A comparison of Garvin, Felgenbaum, and Taguchi

D. Garvin
A.V. Felgenbaum
G. Taguchi
Basic orientation
toward quality
Strategic, academic Total, systemic
Technical, proactive
What is quality?
Competitive
opportunity
What customer
says it is
Customer's performance
requirements
Who is responsible Management

for quality?
Everyone
Engineers
Importance of
customer
requirements as
standard
Very important
Very important
Very important
Goal of quality
Pleasing customers; Meet customer

Meet customer
continuous
needs; continuous requirements; continuous
improvement
improvement
improvement
Methods for
achieving quality
Identifying quality Total quality

niches
control (TQC);
excellence-driven
rather than defectdriven
Chief elements of
implementation
Eight dimensions of
product quality:
performance,
features, reliability,
conformance,
durability,
serviceability,
aesthetics,
perceived quality
Statistical and
Statistical design of
engineering
experiments; quality teams
methods across the
company
Role of training
Important but not

clearly defined
Very important for Important but not defined

managers and
supervisors
For additional
details, see web
site:
---
---
Statistical methods such as

Loss Function; eliminating
variations of design
characteristics and "noise"
through robust design and
processes
---
For additional details, see this Total Quality Management quick summary..
Ten-minute tutorial - Productivity

04 February 2003 00:00
Simon Kent investigates the UKs most elusive business concept - productivity
What is it?
Productivity compares input factors in production to output. In other words, how much
value is derived from the labour, capital and other material resources used in production.
This can be measured in a number of ways including:
Labour Productivity: Output produced per unit of labour used. Expressed as output per
worker or output per hour worked;
Total Factor Productivity: This measure includes capital expenditure as an input to
production.
Applying these measurements to a particular company it can be seen that by focusing on
productivity the organisation seeks to maximise its output given a set level of inputs.
Therefore, increasing productivity means getting higher output from existing resources.
Why is it important?
Increasing productivity is the only way an economy can achieve higher standards of
living. If output only increases when production inputs are increased there is unlikely to
be any overall rise in profitability.
The UK is currently lagging behind Germany, France and the US in terms of productivity.
We work longer hours, yet do not create as much value as our international competitors.
The Government is seeking to address this through economic policy (promoting high
employment and high levels of economic growth) and by encouraging new and existing
businesses through sector and geographically led initiatives.
An organisation can increase its productivity through a process of eliminating waste and
introducing efficiencies. Unless and until this is done, the organisation will not perform to
maximum capacity. Addressing productivity directly benefits the bottom line and recent
reports suggest that one of the reasons for poor productivity in the UK is the lack of skills
and talent in UK management. Rather than being innovative and forward-thinking,
managers are unadventurous and staid, thereby compromising the overall performance of
any organisation.
Where did it come from?
Many of the current theories on increasing productivity have come from Japanese
industry. Japan, in turn, was inspired by the writings of an American called W Edwards
Deming (1900-1993). Demings approach was to focus management on the creation of
quality. To do this, he encouraged organisations to identify and remove barriers to
achieving quality, often empowering the workers to improve the production process
themselves.
The Personnel factor
HR and training can be critical to implementing initiatives and realising successful
improvements in productivity. To begin with, a happy workforce is more productive.
Second, personnel policy can encourage productivity through incentive schemes such as
performance-related pay or continuous improvement tools such as knowledge
management schemes. Effective and continuous training is vital if the UKs managers are
to improve their performance.
However, incentivitising employees to work within an inefficient system simply
promotes more waste. Therefore, achieving real improvements in productivity entails
critically appraising every aspect of the workplace, examining each function and
challenging why work is done this way. To be totally effective the entire workforce
should be open and ready for change. It is up to HR to create the right atmosphere for this
to take place.
General initiatives to enhance productivity can include:
- Waste reduction: The identification and elimination of waste in all forms and from all
parts of the production process.
- Just-in-time (JIT) manufacturing: Ensuring exact and sufficient resources are available
at every stage in the production process.
- Continuous improvement: Introducing new initiatives of any size or nature - whenever
and wherever they can contribute.
- Lean management: An approach to managing people and resources to maximise
productivity. Toyotas production technique boiled this down to 10 points - eliminate
waste, minimise inventory, maximise flow, pull production from customer demand, meet
customer requirements, do it right the first time, empower workers, design for rapid
changeover, partner with suppliers, and create a culture of continuous improvement.
Toyotas specific productivity initiatives include:
- Kanban - a term associated with JIT manufacturing. This is a signal which triggers the
supply of a resource. Rather than stockpiling, resources are supplied only when demand
is registered.
- Seven Wastes - areas where an organisation compromises its productivity: Overproduction, transportation, motion, waiting, processing, inventory and defects. Toyotas
Just in Time system tackled overproduction and effectively resolved problems in all other
areas since overproduction can include all the other wastes.
- S5 or Cando - acronym for Clear up, Arranging, Neatness, Discipline and Ongoing
improvement in the workplace. Inspired by a Rudyard Kipling poem, some of these
concepts have been used in the workplace since the early 20th Century (for example, the
Ford Motor Company was cleaning up continuously back in the 1930s). S5 relates to the
Japanese words for the same concepts (they all begin with the letter S).
- Smed - Single Minute Exchange of Dies. By analysing the process required to
changeover the tools used on a machine, Japanese engineer Shigeo Shingo was able to
reduce the time spent on this operation from hours to minutes, thereby increasing the time
the machine was in productive use.
Whos on board? / Key players
The Government has been researching the issue of productivity for the past few years and
is adapting policy as they see fit. Their research has had the backing of the DTI. The TUC
also sees productivity as an issue and has initiatives dedicated to enhancing industrial
relationships to improve productivity.
Contemporary productivity theory and practice grew from the automobile industry in
Japan, with Toyota and Nissan among the leading players. Nissans Sunderland plant set a
new European productivity record in 2000 with 122 cars per employee. Dell Computers
and Boeing Aircraft have also implemented lean management techniques, and initiatives
have even entered the service sector where Enterprise Resource Planning has helped to
ensure consultants spend the majority of their time engaged in high value activities.
Essential reading:
Out of the Crisis (1986) by W. Edwards Deming. Includes Demings 14 Points for
Management
The Deming Management Method: The Complete Guide to Quality Management (1992)
by W. Edwards Deming.
Lean Thinking: Banish Waste and Create Wealth in Your Corporation (1996) by James
Womack and David Jones.
Kanban: Just in Time at Toyota (1989) by J.L. David.
Websites:
www.hm-treasury.gov.uk/documents/enterprise_and_productivity/ent_index.cfm-
Government research and reports on UK productivity

www.tuc.org.uk/pi
TUCs Partnership Institute site
www.kaizen-training.com
Consultants and trainers in continuous improvement
www.smed.info
Evolving site featuring Smed and other lean management techniques from The
Productivity Factory.
www.oakdenehollins.co.uk/lean2.html
Oakdene Hollins consultants website - includes info and introduction to productivity
enhancing techniques

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What is quality -- the experts opinion

Only through the collective efforts of their individual

Table 1 - A comparison of Deming, Juran, and Crosby

Fitness for use;

Meet/exceed customer Please customer;

Very important for

Very important for

Table 2 - A comparison of Garvin, Felgenbaum, and Taguchi

Strategic, academic Total, systemic

Who is responsible Management

Pleasing customers; Meet customer

Identifying quality Total quality

Important but not

Very important for Important but not defined

Statistical methods such as

Ten-minute tutorial - Productivity

Government research and reports on UK productivity

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