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PDCA Cycle: Continuous Improvement with Shewhart and Deming

PDCA Cycle

PDCA CycleThere aren’t many ideas so big that we use them every day – often without thinking. But the PDCA Cycle, Plan-Do-Check-Act, is one.

The PDCA Cycle comes with many names and none. It’s pretty much something humans have been doing since the dawn of time. But that doesn’t diminish the idea.

So, what is the PDCA Cycle, and how has it evolved?

Continue reading PDCA Cycle: Continuous Improvement with Shewhart and Deming

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TQM: Total Quality Management

TQM - Total Quality Management

TQM - Total Quality ManagementTotal Quality Management, or TQM, is more than ‘just’ a quality initiative. It is an approach to management that cuts across all aspects of an organisation. It has a deep story that stretches back to the 1920s and beyond, yet its principles are as relevant today as they have ever been.

While some of our Big Ideas came to the world of management and made themselves relevant there, Total Quality Management started in the business world. And here it remains.

Continue reading TQM: Total Quality Management

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Kaizen | Continuous Improvement

Kaizen | Continuous Improvement

Kaizen | Continuous ImprovementKaizen should be at the heart of every business and organisation’s operating model. After all, who could deny the appeal of Émile Coué’s* affirmation:

‘Every day, in every way, I’m getting better and better.’

But personal affirmations on their own, they don’t create change.

Kaizen does. It translates from the Japanese as change (kai) for the good (zen). And it comes with action. So, what is the origin of this big idea, and how can you implement Kaizen in your organisation?

Continue reading Kaizen | Continuous Improvement

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Joseph Juran: Quality Management

Joseph Juran is one of the leading thinkers on the route establishing a culture of quality throughout much of Japanese and then western business. He asserted that quality was nothing new or clever. Rather, it is elemental and elementary. That said, he watched as, for 25 years, his adopted homeland of the United States ignored the quality imperative. Then, in his late seventies, he lived to see American businesses wake up to quality. In his eighties and nineties, he was active and, indeed, energetic in consulting and advocating for quality.

Joseph Juran

Brief Biography

Joseph Juran began his long life in 1904, in Romania. His family emigrated to the United States, and from 1912, he grew up in Minnesota.  He gained his first degree in Electrical Engineering at the University of Minnesota (he later gained a Doctorate in Law at Loyola University) and went straight to working for Western Electric at its Chicago Hawthorn Plant (where Elton Mayo later conducted his famous studies).

In 1928, he wrote his first pamphlet on statistical approaches to manufacturing quality and rose up through the business. Along the way, he ‘invented’ the Pareto Principle (of which more later), but by 1945, he was ready for something else.

In 1945, he joined the faculty of New York University, to allow him time for lecturing, consulting and writing. In 1951, he published his first substantial book, the Quality Control Handbook. This is still in print, much updated, enlarged and revised, in its sixth edition, under the title Juran’s Quality Handbook: The Complete Guide to Performance Excellence. He was becoming well known, although initially, not so much in the US as in Japan. In 1954, he was invited to Japan for a series of lectures, and Japanese companies eagerly took up his ideas on how to increase their manufacturing quality.

In the US, the concept of quality was largely ignored. But in 1979, he founded the Juran Institute in the hope of increasing awareness of and engagement with his ideas. It was in the 1980s that quality started to rise up the agenda of US companies, and he became, in his 80s, a much in demand speaker and consultant. In 1988, he wrote the book that most marks his contribution, Planning for Quality – now out of print. The ideas, however, are all incorporated into later editions of other books.

Juran remained active, undertaking consultancy until the final years of his life. He died in 2008, survived, until the end of the year, by his wife of 81 years, Sadie, who was also born in 1904.

Juran and the Pareto Principle

Juran noticed early on that not all defects were equal. He found that some causes resulted in many defects and others in a few. A small number of causes accounted for a vast number of the defects. This, he recognised, was the same pattern as that which Italian economist Vilfredo Pareto found when looking at the distribution of wealth among Italian citizens. Juran recognised this as a general principle in the way some effects were distributed, and named it the Pareto Principle. It also became known as the 80/20 rule, because Juran found that around 80 per cent of defects were cause by 20 per cent of the underlying problems.

Juran and Deming

The other huge name in quality management was a contemporary of Juran’s, W Edwards Deming. However, where Deming put huge faith in the value of statistics, Juran saw another equally important effect, which his writings are at pains to stress. Possibly influenced by the work of Elton May at the Hawthorn plant, Juran placed huge emphasis on the human aspects of quality management. In so doing, he was an early exponent of employee empowerment.

Juran identified what has become known as his Quality Trilogy:

  1. Quality Planning
  2. Quality Management (or Control)
  3. Quality Implementation (or Improvement)

From these, he identified a nine-step roadmap to achieve the ideal of quality.

Quality Planning

1 Identify your customers
2 Determine their needs
3 Translate their needs into your own language

Quality Management

4 Develop a product that meets their needs
5 Optimise the product to your own needs too
6 Develop a process that can create the product

Quality Implementation

7 Optimise the process
8  Prove the process works under operational conditions
9 Operationalise the process

Company-Wide Quality Management

Perhaps Juran’s biggest contribution was to see quality as a cultural, rather than operational imperative. He argued that senior managers must not just be involved in, but must actively lead the quality processes. They must not delegate them: the impetus must come from the top and accountability and responsibility must remain there. However, he also saw empowerment of workers at all levels as a key to making quality work successfully.

You Might Also Like…

our articles on the leading modern quality methodology, Six Sigma:

  1. Belt up and Reduce Errors
  2. The DMAIC Solution Process
  3. Six Tools from Six Sigma

and also The Efficiency of Order: The 5S Methodology.

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12 Blogs for Christmas

Holly&Ivy

This has been a great year for the Pocketblog, seeing reading figures rise substantially and reaching the milestone of our 100th blog posting.

So, with Christmas coming at the end of the week, let’s do a round-up of some personal favourites from among this year’s Pocketblogs.

Here is something for each of the twelve days.  Enjoy!

1. Start as you mean to go on: Happiness

After some New Year’s Resolutions to start the year off, we dived into the subject of Happiness, with ‘Happiness – as simple as ABC?’ about Albert Ellis’s Rational Emotive Behavior Therapy – the fore-runner of CBT.

2. … and Start Topical

We then moved into a subject that was much in the news in February; and still is.  With ‘Bankers’ Bonuses and Brain Biology’, we looked at recent neuroscience and how that relates to Adams’ Equity Theory.

3. Generations

In February too, I wrote two blogs about sociological ‘Generations X, Y & Z’ and ‘Generation Y at work’.  I followed this up by another about what comes ‘After Generation Y?’.

4. The Gemba

In May, inspiration waned for a week, so where did I go to find it?  ‘The Gemba’.  I got it back, and later that month, got idealistic in ‘Reciprocity and Expectation’ looking at the Pay it Forward ideal and the realities of Game Theory.

5. Why do we do what we do?

In the first of two blogs on how to predict human behaviour, I looked at ‘How to Understand your Toddler’ (mine actually) and Icek Ajzen’s Theory of Planned Behaviour.  Later in the year, in ‘Predicting Behaviour’, I looked at whether a simple equation (hypothesised by Kurt Lewin) could predict all behaviour.

6. One of the Best Business Books of the Year

… according to the Journal Strategy & Business is Richard Rumelt’s Good Strategy/Bad Strategy: The difference and why it matters.  In ‘What Makes a Good Business Strategy’ we looked at some of his ideas.

7. The Apprentice

This year, I have been a big fan of both series and have written my own episode by episode analysis of both The Apprentice and Young Apprentice.  I also did one blog on each for Pocketblog: ‘The Apprentice and Five Levels of Leadership’ and, for Young Apprentice, ‘Decision Failure’.

8. Drucker Triptych

Has any one individual been as influential in establishing management as a pragmatic academic discipline as Peter Drucker?  To recognise his various achievements, I wrote a triptych of blogs over the summer:

  1. The Man who Invented Management
  2. Management by Objectives
  3. R.I.P. Corporate Clone: Arise Insightful Executive

And one of Drucker’s direct contemporaries was W Edwards Deming, so I also took a look at ‘Demings’ System of Profound Knowledge’.

9. Crazy Times

Will history look on Tom Peters with the respect that it holds for Drucker and Deming?  Who knows?  But without a doubt, Peters has been influential, insightful and provocative for thirty years or more, and I am sure many of his ideas will survive.  In ‘Crazy Times Again’, I drew a line from FW Taylor (father of ‘Scientific Management’) to Peters.

10. The Circle Chart

In ‘Going Round in Circles’ I returned to management models and one of my all time favourites: Fisher and Ury’s Circle Chart. I applied it to problem solving rather than, as they did, to negotiation.

Fisher and Ury are experts on conflict resolution, as is Morton Deutsch. In ‘Conflict: As simple as AEIOU’, I looked at a fabulously simple conflict resolution model that originated in Deutsch’s International Centre for Cooperation and Conflict Resolution.

11. Two Notable Events

Two notable events made the autumn memorable for Pocketblog: one sad and one happy.

  1. In ‘A Bigger Bite’ we marked Steve Jobs’ passing
  2. With ‘Three ways to get it wrong’, we marked our hundredth blog, by looking at one of the towering social psychologists of today, Daniel Kahneman

12. And finally, our most popular topic

Tuckman’s model for group formation has proved to be our most popular topic by far this year.  We have returned to it three times, each time looking at a particular facet:

  1. ‘Swift Trust: Why some teams don’t Storm’
  2. ‘Team Performance Beyond Tuckman’
  3. ‘Tuckman Plus’ is the first of two posts.  It is the last topic post of 2011 and its companion (‘Part 2: Transforming’) will be the first of 2012

So here’s the deal

  • Have a very merry and peaceful Christmas.
  • Have a very happy and healthy New Year.
  • Be good, have fun, stay safe, and prosper.

From all at Management Pocketbooks,
our colleagues at Teacher’s Pocketbooks too,
and from me particularly.

Mike

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Follow-up on Deming’s System of Profound Knowledge

If you enjoyed the post earlier this week, on W Edward Deming’s System of Profound Knowledge, then you may also enjoy these two short (under 3 mins) videos on YouTube, from the Institute for Healthcare Improvement.

These explain the need for and interpretation of  the four parts of Deming’s system:

  1. Appreciation for the system
  2. Knowledge about variation
  3. Theory of knowledge
  4. Psychology

Part 1 sets out the problem of cause and effect

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Part 2 gives an example of the
four parts of Deming’s System of Profound Knowledge

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Deming's System of Profound Knowledge

I recently did three blogs about towering management thinker, Peter Drucker:

  1. The Man who Invented Management
  2. Management by Objectives
  3. R.I.P. Corporate Clone: Arise Insightful Executive

Another hugely influential management thinker and a direct contemporary of Drucker’s was W Edwards Deming.

W. Edwards Deming

imageDeming was a mathematician and Physicist, who turned to statistics and management. In so doing, he became the most influential non-Japanese thinker in within Japanese industry, and a leader in the subject of quality – arguably the founder of TQM, Total Quality Management.

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On the subject of quality, he asserted that:

When people and organizations focus primarily on quality, quality tends to increase and costs fall over time.

However, when people and organizations focus primarily on costs, costs tend to rise and quality declines over time.

Profound Knowledge

Deming and Drucker were at one on the matter of knowledge.  Both believed deeply that managers need a wide knowledge over a broad spectrum of topics.  Deming went further than Drucker, in articulating this as a fundamental principle of management.

Deming said that managers need to have a ‘system of profound knowledge’.  The layout of profound knowledge has four parts, all related to one another:

  1. Appreciation for the system that they are a part of
    (What, today, we would call ‘systems thinking’)
  2. Knowledge about variation
    What drives quality and how to measure cause and effect statistically (as we do today, with processes such as Six Sigma)
  3. Theory of knowledge
    Understanding critical thinking processes and what we can and cannot know about a system.  His most famous single contribution is popularising the ‘Deming Cycle’ (which was actually invented by Walter Shewhart).
    Plan – Do – Check – Act
  4. Psychology
    How human beings respond in different situations

Challenge

This seems to me to be an excellent syllabus for a management programme, but I wonder how many managers are really learning about all four of these elements.  This system creates a synthesis of the management thesis and antithesis of the 20th Century:

Scientific Management versus People Management

14 Points for Management

In so doing, Deming articulated his 14 Points for Management.  These, whilst many have become commonplace today, still resonate well.

  1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.
  2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.
  3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place.
  4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.
  5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.
  6. Institute training on the job.
  7. Institute leadership (see Point 12 and Ch. 8). The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers.
  8. Drive out fear, so that everyone may work effectively for the company (see Ch. 3).
  9. Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service.
  10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.
  11. a. Eliminate work standards (quotas) on the factory floor. Substitute leadership.
    b. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.
  12. a. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality.
    b. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective (see Ch. 3).
  13. Institute a vigorous program of education and self-improvement.
  14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody’s job.

Management Pocketbooks you might Enjoy

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