Chapter 2

Evolution of Quality and Its Contemporary Application

to Projects
Introduction

• Quality has been evolving for decades. The contribution of American

Quality Gurus to this evolution is quite impressive.
• The concepts were initially experimented successfully in Japan by the
American Quality Gurus.
• we will look at the contributions of some of them.
• The idea of quality did not become fully established overnight.
• It changed as time went on.
• It evolved in gradual phases in response to the demands and
constraints of the period.
Progressive History
• Examining the dominant ideas that prevailed at different eras can
help you understand how quality notions have evolved historically.
• These topics occasionally followed convention.
• In other instances, they enhanced the idea of excellence in general
and enabled new practice.
Antecedents of Modern Quality Management
▪ Guilds of Medieval Europe
(From the end of 13th Century to Early 19th Century)

▪ The Industrial Revolution

(From the end of 17th Century to 1800s)

▪ The World War II

(From 1938 to 1945)
▪ Post World War Era
(After 1945)
Cont..

• Before few decades ago, quality management has been taken to mean
inspecting products according to their specification.
• But during World War II, statistical sampling techniques were used to
evaluate quality, and quality control charts were used to monitor the
production process which insures quality became more statistical in this
period.
• Then, in the 1960s, the quality gurus help quality to have a broader
meaning/
• Since the 1970s, competition based on quality has grown in importance
and has generated tremendous interest, concern, and enthusiasm.
The Dark Ages:
• The march of quality began during the age of craft production, the
1700s and before.
• During this period, individual craftsmen produced items for use by
others.
• The craftsmen were totally responsible for the product from start to
finish.
• Craftsmen had complete responsibility for, and total control of, the
output of their work.
• They probably acquired their skills by watching and working with
someone who was very good at the specific skill.
• The need for more items, produced faster, put a fatal strain on
craftsmen.
• Work began to move to central locations where many workers
combined their efforts toward a common goal.
• Factories arose and the industrial revolution changed production in
ways that emphasized quantity and commonality.
• An element of craft production still existed in factories. Workers were
generally highly skilled because work was done by hand, but now the focus
was on individual parts, not the whole.
• It was important that parts be very similar to each other so that they might
be assembled into a final product without significant modification.
• Inspection became an important aspect of production to ensure that parts
met some established design standard.
• Workers were the critical element in production; they were held responsible
for the outcome.
• The quality philosophy in play at the time might best be stated as “If you
want to make the boat go faster, whip the oarsmen harder.”
• The concept of quality management can be traced back to medieval Europe when
craftsman guilds developed strict guidelines for how products were inspected for
defects.
• This craftsmanship model with an emphasis on inspections and quality control
extended through the early years of the Industrial Revolution.
• In the late 19th century, mechanical engineer Frederick Winslow Taylor broke
away from traditional European quality practices and developed a new approach,
which focused on increasing productivity and profitability without increasing the
number of craftsmen or strain on workers.
• In 1910, Taylor went on to publish “The Principles of Scientific Management,”
which lay the foundation for how manufacturers should optimize operational
efficiency.
• In the 1920s, engineer Walter Shewhart developed statistical quality
control methods to help businesses improve their production processes by
reducing variation.
• Engineer and statistician William Deming collaborated closely with
Shewhart and successfully applied Shewhart’s methods to the production
of military goods during World War II. This enabled armed forces to
speed up inspections without compromising product safety or quality.
• Shewhart’s methods (also known as the Shewhart Cycle) served as the
basis for the Plan-Do-Check-Act (PDCA) cycle, which is a key
component of many of today’s quality management systems.
Scientific Management
• Frederick Winslow Taylor saw things a bit differently. In his view, if you
want to make the boat go faster, you should examine and analyze those
things that make the boat go and determine the best way to do it.
• In other words, it is not what you do, but how you do it that counts.
• In 1911, he published The Principles of Scientific Management, which
described his approach.
• Taylor suggested that in getting things done, there is “one best method,”
and it is management’s responsibility to determine that method and the
worker’s responsibility to follow established procedures.
• Taylor changed the focus from the worker to the process and, most
significantly, separated planning and execution.
• Planning was a responsibility of management; execution was a
responsibility of workers.
• Taylor’s approach broke the mold of worker-focused quality, but failed
to recognize two key aspects of quality.
•
• The first is motivation. Taylor assumed that workers were principally
motivated by money.
• He described a “high-priced man” as a worker who will perform
according to management’s prescribed procedures for money.
• The other is his assumption that once an optimal procedure is defined,
the results will be the same for every worker.
• Taylor’s scientific management involves one way of doing something,
one standard worker, no variation in performance, and no
communication between workers and management.
Understanding Variation

• The next leap forward occurred when Walter Shewhart expanded the
quality focus to include variation.
• In 1931, he published Economic Control of Quality in Manufactured
Products, which outlined the principles of statistical process control
(SPC), a disciplined approach for improving quality by reducing
variation in the process.
• In 1939, Shewhart published another book, Statistical Method from
the Viewpoint of Quality Control, which introduced the plan-do-
check-act cycle as a means of implementing quality improvements
Inspection Reigns
• During World War II, the demand for manufactured products of many kinds
increased dramatically. Military customers had urgent requirements that
would not tolerate a lot of scrap and rework.
• At the same time, shortages of materials required efficient utilization of
what was available.
• Shewhart’s SPC techniques were put to good use by industrial suppliers of
military goods.
• W. Edwards Deming, who had worked with Shewhart at Western Electric,
helped the War Department apply Shewhart’s methods.
• Conformance to specifications became the central focus of quality, and
inspection (comparing final results to targets) became the primary method
of achieving conformance.
• It would be nice to believe that wartime requirements moved quality
forward, but they did not.
• Urgent requirements demanded shorter production times and that, in
turn, reduced quality.
• The tendency arose to ship products that were close enough to target
because the military forces in the field needed them right now.
• Inspection departments flourished as the quality focus drifted back to
conforming within an acceptable level of error.
Japanese Quality
• The 1950s could be considered as the turning point of the quality
management field.
• They invited experts from other countries to come to Japan and share their
methods. W. Edwards Deming was one of the first.
• During that decade, the Japanese Industrial Revolution had rapidly begun.
• Earlier in 1946 the Union of Japanese Scientist and Engineers was founded,
which went on to introduce the Deming Prize in 1951.
• At this time, the Japanese Industrial Standards Committee was established,
and they have played a major role in the development of the quality
movement in Japan. As such, several tools and techniques were
implemented and are still being practiced across the world.
• These include Statistical Process Control (originated from Statistical
Quality Control), Reliability Engineering, Kaizen and Genba-Kaizen,
Failure Mode and Effect Analysis, Poka-Yoke (mistake proofing), Jidoka
and Just-in-Time and Total Preventive Maintenance.
• As a result, Japan became a global economic superpower within
twenty years.
• Because of Japanese quality achievements, it became a label of
respect, denoting items that did what customers expected them to
do, worked the first time, and did not fail during use.
Customers and Systems

• In the contemporary view, customer requirements define quality, not

products or processes.
• In other words, it is not what you do or how you do it, but who uses it
that counts. Quality is in the perception of the customer.
• You can make the best buggy whip that was ever made, using the finest
materials and applying efficient processes that have almost no defects or
waste, but if nobody needs a buggy whip, it just does not matter.
• Many things work together to yield products that meet customer
requirements. Viewing these things independently can lead to
competition among the elements that interferes with the desired
quality outcomes.
• Viewing these things as a system allows integrated consideration and
optimization of the whole for the customer’s benefit.
• Elements of a quality system include external customers, internal
customers, suppliers, materials, processes, policies, tools, skills,
capabilities, and even society as a whole.
•
Quality Then and Now
• Contemporary quality concepts might be best understood by way of
comparison to what existed previously, a comparison of quality then
and quality now.
• In recent times past, quality comprised three elements: inspection,
statistics, and rework. At the end of some production process, a result
was inspected to determine its degree of conformance to
specifications.
•
• Contemporary quality comprises a significantly different set of
elements: customer focus, variation, and continuous improvement.
Quality begins with an understanding of customer requirements as
the base.
• Customer requirements establish the performance goals for the
organization.
• Variation is an omnipresent aspect of every process.
• variation is understood and controlled using statistical methods that
determine its predictability.
• Continuous improvement begins with the state of the current
process as statistically defined and identifies opportunities for
modifications to the process that will reduce the degree of variation,
which in turn reduces defects and increases consistency and
predictability of performance
Quality Then and Now
Total Quality Management (TQM)
What is a quality guru?

▪ A guru, by definition, is a good person, a wise person and a teacher.

▪ A quality guru should be all of these, plus have a concept and approach
to quality within business that has made a major and lasting impact.

▪ These gurus have done, and continue to do, that, in some cases, even
after their death.
The Era of Quality Gurus
There have been three groups of gurus since the 1940’s:

Early 1950’s: Americans who took the messages of quality to

Japan

Late 1950’s: Japanese who developed new concepts in

response to the Americans

1970’s-1980’s: Western gurus who followed the Japanese

industrial success
• The development of total quality management from 1950 onwards can
be credited to the works of various American experts.
• Among them, Dr Edward Deming, Dr Joseph Juran and Philip Crosby
have contributed significantly towards the continuous development of
the subject.
W. Edwards Deming
• Deming is perhaps the best-known quality pioneer.
• W. Edwards Deming stressed the responsibilities of top management to
take the lead in changing processes and systems
• He tried to convince that leadership plays a great role in ensuring the
success of quality management, because it is the top management's
responsibility to create and communicate a vision to move the firm
toward continuous improvement.
• As Deming most of the quality problems are due to management's
problem.
• Deming advocated that all managers need to have what he called;
• a System of Profound Knowledge, consisting of four parts:
1. Appreciation of a system:
– understanding the overall processes involving suppliers, producers, and customers
(or recipients) of goods and services;
2. Knowledge of variation:
– the range and causes of variation in quality, and use of statistical sampling in
measurements;
3. Theory of knowledge:
– the concepts explaining knowledge and the limits of what can be known;
4. Knowledge of psychology:
– concepts of human nature.
• According to Deming, organization problems lie within the
management process and statistical methods can be used to trace the
source of the problem.
• In order to help the managers to improve the quality of their
organizations he has offered them the following 14 management
points.
• His approach to quality was statistically based, but focused on
responsibilities of management.
Deming
1. Constancy of purpose: create constancy of purpose for continual
improvement of product and service.
2. The new philosophy: adopt the new philosophy. We are in a new
economic age, created in Japan.
3. Cease dependence on inspection: eliminate the need for mass
inspection as a way to achieve quality.
4. End ‘lowest tender’ contracts: end the practice of awarding business
solely on the basis of price tag.
5. Improve every process: improve constantly and forever every
process for planning, production and service
6. Institute training on the job: institute modern methods of training on
the job.
7. Institute leadership: adopt and institute leadership aimed at helping
people and machines to do a better job.
8. Drive out fear: encourage effective two-way communication and other
means to drive out fear throughout the organization.
9. Break down barriers: break down barriers between department and
staff areas.
10. Eliminate exhortations: eliminate the use of slogans, posters and
exhortations.
11. Eliminate targets: eliminate work standards that prescribe numerical
quotas for the workforce and numerical goals for people in management.
12. Permit pride of workmanship: remove the barriers that rob hourly
workers, and people in management, of the right to pride of workmanship.
13. Encourage education: institute a vigorous programme of education and
encourage self-improvement for everyone.
14. Top management commitment: clearly define top management’s
permanent commitment to ever-improving quality and productivity.
• He strongly believed that these points were the foundation for a
transformation of American industry.
• He viewed quality as an obligation of management.
• He did not view with great kindness what he saw as the traditional
American approach of blaming quality problems on workers.
• During his lectures in Japan, he bluntly told participants to import
American quality techniques, but not to import American
management techniques.
Deming's Seven Deadly Diseases…
• The "Seven Deadly Diseases" include;
1. Lack of constancy of purpose
2. Emphasis on short-term profits
3. Evaluation by performance, merit rating, or annual review of
performance
4. Mobility of management
5. Running a company on visible figures alone
6. Excessive medical costs
7. Excessive costs of warranty, fueled by lawyers who work for
contingency fees
Dr. Juran Quality Program
• Another valuable contributor is Dr. Joseph Juran who has had the
greatest impact on quality management.
• He focused on defining quality and cost of quality.
• Juran is credited with defining quality as fitness for use rather than
simply conformance to specifications
• He defined four broad categories of quality costs, which can be used to
evaluate the firm’s costs related to quality.
• According to Juran the four broad quality costs are appraisal costs,
internal failure costs, external failure cost and prevention costs.
• His approach to quality focused on strategic and planning issues.
• He believed that poor quality results from inadequate or ineffective
planning,
• so he proposed the Juran Trilogy, a three step approach to quality that
includes quality planning, quality control, and quality improvement.
• He contributed a lot in the development of quality management.
• At the same time Dr Joseph Juran (1980) through his teaching was
stressing the customer’s point of view of products’ fitness for use or
purpose.
• According to him a product could easily meet all the specifications
and still may not be fit for use or purpose.
• Juran advocated 10 steps for quality improvements as follows:
10 steps for quality improvements

1. Build awareness of the need and opportunity for improvement.

2. Set goals for improvement.
3. Organize to reach the goals (establish a quality council, identify problems,
select projects, appoint teams, designate facilitators).
4. Provide training.
5. Carry out projects to solve problems.
6. Report progress.
7. Give recognition.
8. Communicate results.
9. Keep score
10. Maintain momentum by making annual improvement part of the regular
systems and processes of the company.
Kaora Ishikawa
• Kaora Ishikawa -showed the Japan's how integrate the many tools of
quality improvement , particularly the simpler tools of analysis and
problem solving.
• is the first quality guru to emphasize the importance of the internal
customer.
• one of the first to stress the importance of total company quality
control, rather than just focusing on products and services.
• Ishikawa’s concept of total quality contains the following six fundamental
principles:
• Quality first-not short-term profits first;
• Customer orientation-not producer orientation;
• The next step is your customer-breaking down the barrier of sectionalism;
• Using facts and data to make presentations,
• Utilization of statistical methods;
• respect for humanity as a management philosophy,
• Full participatory management and cross-functional management.
• In addition, Kaoru Ishikawa developed fifteen effects of company-wide
quality control
• The other voluble contribution of Ishikawa to quality management is
seven tools of statistical quality:
– Pareto analysis which are the big problems?
– Cause and effect diagrams what causes the problems?
– Stratification how is the data made up?
– Check sheets how often it occurs or is done?
– Histograms what do overall variations look like?
– Scatter charts what are the relationships between factors?
– Process control charts which variations to control and how?

• Ishikawa gives higher emphasis for the statistical quality control and
the total company wide involvement in controlling quality.
• In addition he proposed the implementations of quality control circles
to improve quality continuously.
Philip B Crosby
• Crosby is known for the concepts of “Quality is Free” and “Zero
Defects”, and his quality improvement process is based on his four
absolutes of quality:

– Quality is conformance to requirements

– The system of quality is prevention

– The performance standard is zero defect

– The measurement of quality is the price of non-conformance

• Quality was a result of prevention of defects, not inspection and
subsequent correction of defects.
• He believed that the goal of any process should be zero defects, and
this term soon became a widespread mantra in government and
industry.
• He believed that small number of defects is a normal part of the
operating process because systems and workers are imperfect.
• Crosby stressed the role of management in the quality improvement
effort and the use of statistical control tools in measuring and
monitoring quality.
• Generally, philosophies and teachings of quality gurus have
contributed to our knowledge and understanding of quality today.
• They laid a solid foundation for the concept of total quality.
• The quality gurus share some common points.
• Some of these points include:
Quality gurus some common points
▪ All of them argue that quality is a systematic firm-wide activity from
suppliers to customers.
▪ All functional activities, such as marketing, design, engineering,
purchasing, manufacturing, inspection, shipping, accounting,
installation and service, should be involved in quality improvement
efforts.
▪ They strongly stressed on management's responsibility to provide
commitment, leadership, empowerment, encouragement, and the
appropriate support to technical and human processes.
▪ The strategy, policy, and firm-wide evaluation activities are also
emphasized by those quality gurus
• The role of employee education and training in changing employees‟
beliefs, behavior, and attitudes; enhancing employees abilities in
carrying out their duties.
• In addition, most of the gurus introduce the idea of process controlling
than checking at the end.
• They argue on the emphasis to be on prevention of product defects, not
inspection after the event.
• Accordingly, frequent use of scientific and problem-solving techniques,
including statistical process control is also the main emphasizes given by
the gurus.
Global Quality Award Models
• In today's highly competitive environment, the quality of a product
has become the basic factor affecting the customer's buying decision.
• There are several national and international quality award organizations
throughout the world.
• As quality gurus, these organizations also have a significant role in the
evolution and development of quality concept.
•
1. The Baldrige Award - Annual award given by the U.S. government to
recognize quality achievements of U.S. companies.
2. The European Quality Award- European award for organizational
excellence.
3. The Deming prize - Prize established by the Japanese and
awarded annually to firms that distinguish themselves with
quality management programs..
The Malcolm Baldrige National Quality Award

• Malcolm Baldrige National Quality award is established to encourage

American firms to improve quality, satisfy customers, and improve
overall firms performance and capabilities.
• The model framework can be used to assess firms current quality
management practices, benchmark performance against key
competitors and world class standards, and improve relations with
suppliers and customers
• Its goal is to improve performance of U.S. organizations.
• Between 1988 and 2004, 999 applicants won a total of 62 awards.
• Currently, up to three awards may be given in each of five categories:
business (manufacturing, service, small business), education, and
health care.
• Addition of a sixth category for not for-profit organizations was
approved in 2004 and is added in 2006.
• The awards are announced at an annual awards ceremony in
Washington, D.C. and presented by the President of the United
States.
• The award is based on evaluation of criteria in seven categories.
• A total of 1000 points is distributed across the criteria.
Malcolm Baldrige National Quality Award Criteria
Structure of the Malcolm Baldrige National Quality Award
The European Foundation for Quality Management
(EFQM)
• The EFQM was founded in 1988 in Brussels.
• As one of its main activities, the EFQM presents the EFQM Excellence
Award (formerly, European Quality Award [EQA].
• The award, presented for the first time in 1992, recognizes excellence
in the organization’s ability to realize outstanding quality and
comprehensive customer satisfaction.
• The primary purpose of the award is with its enablers and results to
support, encourage, and recognize the development of effective TQM by
European firms.
• The enablers are leadership, people management, policy & strategy,
resources, and processes
• while the result part of this model contains people satisfaction, customer
satisfaction, impact on society, and business results.
• EFQM has nine self-assessment criteria
• The self-assessment criterions are:
• Leadership,
• Policy and strategy,
• People management,
• Resources,
• Processes,
• Customer satisfaction,
• People satisfaction,
• Impact on society and
• Business results.
• Every self assessment criteria contains several sub-criteria which
can help detail analysis of the companies
The EFQM Excellence Model
• Based on the EFQM Excellence Model, excellent leadership is seen as a
prerequisite for customer satisfaction, employee satisfaction, and
positive results for society.
• To this purpose, the organization must develop a quality-conscious
policy and strategy, utilize resources efficiently, and choose an
employee-oriented way of proceeding.
• Only in this way, under consideration of all processes, can sustainable
performance results be achieved.
The Deming prize
• The main objective of instituting the Deming Prize, named after the
famous quality legend, Edward Deming, was to spread quality
awareness throughout Japan.
• In recognition of Deming's friendship and contributions to Japan, the
Deming Prize was established in 1951.
• In the 1950s, together with the development of the management
oriented quality concept, the Union of Japanese Scientists and Engineers
established a national prize to provide an incentive for the continued
development of total quality management in Japan, the annually
awarded (for the first time in 1951 in Osaka) Deming Prize.
• The focus of the award is on the efficient management of policies,
plans and information systems, and on the collection and transmission
of quality control data, standardization and future improvement plans.
• It provides prescriptive tools, techniques and practices of
management.
• The Deming Prize gives an equal weightage to each factor and is not a
competitive prize.
• It is conferred by the Japanese government for achieving a certain
level of excellence to the Japanese companies.
Deming Prize examination criteria
• The primary elements of the Deming prize are role of management,
corporate culture/values, and infrastructure, involvement/use/role of
human resources and adequacy and use of technical resources.
• In addition the checklist of Deming prize is used to evaluate the
performance of senior executives according and contains seven
criteria.
• These are: Understanding, Policies, Organization, Human resources,
Implementation, Corporate social and Future visions.
 International Organization for Standardization (ISO)

• The International Organization for Standardization (ISO) is a global body

headquartered in Geneva, Switzerland that develops consensus standards for
worldwide use.
• The organization’s short title “ISO” is not a fractured acronym, but rather an
adaptation of the Greek word isos, which translates to English as “equal.
• ISO is a non-profit organization that produces standards to ensure the quality,
safety, and efficiency of products, services, and systems
• The ISO 9000-series of standards addresses quality management systems.
• The series includes three standards:
1. ISO 9000, Quality management systems — Fundamentals and
vocabulary
2. ISO 9001, Quality management systems — Requirements
3. ISO 9004, Quality management systems — Guidelines for
performance improvements
• ISO 9000 is a series of standards that represent an international
consensus on good management practices that apply to any industry or
organization, whether manufacturing or service-based
• ISO also produces technical reports, technical specifications, publicly
available specifications, technical corrigenda, and guidelines in addition
to providing standards.
• By establishing uniform standards among countries, the ISO helps to
facilitate global trade.
• ISO standards address a wide range of topics, including health care,
technology, manufacturing, security, and environmental protection.
• ISO develops and publishes standards for a vast range of products,
materials, and processes.
• Currently, the organization has over 24,362 standards, which are
included in the ISO Standards catalog, which is broken down into
various segments, such as healthcare technology, railway engineering,
jewelry, clothing, metallurgy, weapons, paint, civil engineering,
agriculture, and aircraft.
• In addition to producing standards, ISO also publishes technical
reports, technical specifications, publicly available specifications
ISO 9001 is a specification standard.
• If an organization wishes to become certified or registered — the terms
mean the same thing, only the conventions of use differ — it would
have to conform to the requirements in ISO 9001.
• Organizations can self-declare conformance or can hire a third-party
registrar.
• Third-party certifications are generally viewed as more objective.
•
• The initial motivation for applying ISO 9001 may be commercial.
• Many international customers favor suppliers that are certified.
• Once organizations see the benefits of a quality management system,
they may continue regardless of specific commercial pressures.
• ISO 9001 is a brief document. It contains many prescriptive
paragraphs that indicate what an organization “shall” do.
• Conformance requires extensive documentation, including:
• Conformance requires extensive documentation, including:
• Quality policy — A statement from top management.
• Quality manual — A document that addresses each clause in ISO
9001. Specific procedures may be part of the manual or referenced in
the manual.
• Quality objectives — Goals assigned to organizational elements.
• Quality procedures — Step-by-step actions for each ISO 9001
requirement or any process that affects quality.
• Forms, records, documentation — Proof of performance.
• ISO 9001 implementation provides many benefits.
• It forces analysis of quality management activities. In the absence of a
disciplined form of management, quality can be one of those things
assumed to be done.
• It documents all aspects of the quality management system — again, no
assumptions or promises, only facts. It focuses on prevention, not
inspection.
• The ISO 9001 approach is prevention based, an approach proven to be more
effective in the long run than identifying and fixing accepted defects as they
occur.
• Finally, it is a framework for quality improvement. Continual improvement,
not satisfaction with the status quo, is an essential part of the ISO 9001
approach
ISO certification
• ISO certification verifies that a management system, manufacturing
process, service, or documentation procedure meets all of the quality
assurance and standardization requirements. .
• Many industries have ISO certificates, ranging from energy management
to social responsibility to medical devices and energy management.
• To maintain uniformity, ISO standards have been established.
• Each certification has its own set of standards and requirements, as well
as a numerical classification system.
Summary
• Contemporary quality arose through an evolution from craftsmen
totally responsible for quality, to factories that distributed tasks and
quality responsibility, to scientific management that focused on
processes rather than individual workers.
• It further developed through an understanding of process variation and
an understanding of the role of customers and systems.
• The traditional quality approach involved inspection, statistics, and
rework.
• The contemporary approach involves customer focus, variation, and
continuous improvement.
• Training and leadership are essential to contemporary quality.
• The Wheel of Quality graphically displays the elements of
contemporary quality and the interrelationships among them.
• Everyone is responsible for quality.
• The project manager is ultimately responsible for project and product
quality.
• Deming was famous for his work in rebuilding Japan and his 14
points
• Juran wrote the Quality Control Handbook and 10 steps to quality
improvement
• Crosby wrote Quality is Free and suggested that organizations strive
for zero defects
• Ishikawa developed the concept of quality circles and using fishbone
diagrams