Total Quality Management - CII Institute of Logistics

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Total Quality Management 1.3 Approaches and Philosophies in TQM Deming’s Philosophy The Deming philosophy focuses on continual improvements in product and service quality by reducing uncertainty and variability in design, manufacturing and service processes, driven by the leadership of top management. Deming Chain Reaction Model The Deming "chain reaction" model is based on the conviction that, the only way to decrease cost is to improve quality of products and services. It states that by (a) improving quality, a firm can (b) decrease costs because of less rework, fewer mistakes, delays, and snags, and better use of time and materials, thus (c) improving productivity. The firm will therefore be able to (d) capture the ma rket with better quality at lower prices, and thus, not only (e) stay in business, but also (f) provide and create more jobs. (See Fig 1) CII Institute of Logistics 8 Website: www.ciilogistics.com
Total Quality Management Deming’s System of Profound Knowledge Deming's System of Profound Knowledge consists of four interrelated parts: (1) appreciation for a system; (2) understanding of variation; (3) theory of knowledge; and (4) psychology. Appreciating a system involves understanding how each component of the system works to produce the end product or service, and understanding how the system may be optimized for better or smoother performance. Understanding of variation involves knowing and anticipating factors (i.e. increasing personnel, the wearing out of tools) that may cause the system to change, for better or worse. Theory of knowledge involves understanding the system and current and possible variations within, to the point where past and present events and performances can suggest possible outcomes of future courses of action within the system. Psychology involves the understanding of ‘what motivates people’, including the facts such as, people must enjoy their work, be treated with respect, work within a system that promotes dignity and self-esteem, receive adequate recognition, not for just financial remuneration, and feel that they are part of a winning, high quality team that makes a difference. Deming’s 14 Points-Principles for Transformation These famous 14 points are the basis for transformation of any industry into the TQM philosophy. It will not suffice merely to solve problems, big or little. Adoption and action on the 14 points are a signal that the management intends to stay in business and aim to protect investors and jobs. Such a system formed the basis for lessons for top management in Japan in 1950 and in subsequent years. The ‘14 point principles’ apply to all organizations irrespective of its size [small and large] and type [service industry and manufacturing]. They also apply to a division within a company. CII Institute of Logistics 9 Website: www.ciilogistics.com
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