Q9E-Summary of Key Points and Terminology - Chapter 2

Q9E-Summary of Key Points and Terminology - Chapter 2 -...

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Managing for Quality and Performance Excellence, 9 th Edition Summary of Key Points and Terminology Chapter 2 – Foundations of Quality Management W. Edwards Deming, Joseph Juran, and Philip Crosby are recognized as the most influential thinkers and leaders of modern quality management. A. V. Feigenbaum and Kaoru Ishikawa have also made significant contributions to modern quality management practices. Deming’s philosophy is based on improving products and services by reducing uncertainty and variation in design, manufacturing, and service processes, driven by the leadership of top management. The Deming Chain Reaction suggests that quality improvement leads to long-term business and economic prosperity. The 14 Points represent the practices that Deming advocated for achieving quality excellence. Deming synthesized the underlying foundations of the 14 Points into four simple elements that he called a System of Profound Knowledge : 1. Appreciation for a system 2. Understanding variation 3. Theory of knowledge 4. Psychology A system is a set of functions or activities within an organization that work together for the aim of the organization. Systems thinking is critical in applying quality principles because the organizational linkages among various functions of an organization must be in alignment to meet the needs of customers and other stakeholders. Variation exists in any production and service process, generally due to factors inherent in the design of the system, which cannot easily be controlled. Excessive variation results in products that fail or perform erratically and inconsistent service that does not meet customers’ expectations. Statistical methods are the
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primary tools used to identify and quantify variation. Deming suggested that management first understand, and then work to reduce variation through improvements in technology, process design, and training. The theory of knowledge is the branch of philosophy concerned with the nature and scope of knowledge, its presuppositions and basis, and the general reliability of claims to knowledge. Basically, managers need to understand how things work and why decisions that affect the future should be effective.
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