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Chapter 1 : About the importance of quality and of
the methods to achieve it
1.1 Introduction: a complete definition of Quality
What does the word "Quality" mean? If we pause for a while before
replying, we realize how it is hard to find a sole answer to this
question. Each of us keeps in mind its own definition of quality and
also great masters as W. Edwards Deming and Joseph M. Juran have
expressed this concept in different ways.
In his book "Quality planning and analysis", Juran observes that
the basic meaning of the word quality is "fitness for use" ; on the
other hand, in his book "Out of the crisis", Deming notices that at
the question "What is quality?" one must reply that: "Quality can be
defined only in terms of the agent", where the agent, also indicated
as the "judge of quality", from time to time could be the production
worker, the plant manager, the purchaser, the consumer and so on.
In his turn, Deming, in these observations, has been influenced by
another great master, Walter A. Shewhart, who devoted a whole
chapter of his book "Economic control of quality of manufactured
product" to the matter of the definition of quality. The
introductory note of this chapter states that: "When we analyze our
conception of quality, we find that the term is used in several
different ways. Hence, it is essential that we decide, first of all,
whether the discussion is to be limited to a particular concept of
quality, or to be so framed as to include the essential element in
each of the numerous conceptions." [Shewhart, 1931]
As anyone can easily understand, we need a definition which is
both complete and incontrovertible, or in other words, a definition
of quality that could apply to any product, service or other entity
we are dealing with. One of the most complete definitions ever found
in "quality literature" is certainly that contrived by Fausto
Galetto in his book "Qualità: alcuni metodi statitici da manager",
according which:
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"Quality
is the set of characteristics of a system
that makes it able to satisfy the needs of the Customer,
of the User and of the Society."
[Galetto, 1985]
The author gives an explanation of the concept and definition of
quality that fully justifies our choice of electing it as one of the
the most complete about the matter: the term system is used to
indicate both a product, just like a car or a television set, and a
service, which is carried out through a process of relationships
that provide a certain output. Moreover, system may be interpreted
as any set of mental and physical activities, correlated each other,
which provide an output that from time to time may be a product, a
service, a method, an idea and so on.
The definition of quality just presented has to be considered
complete also from another point of view: the subjects involved are
not only the Customer and the User, but also the Society. This means
that all these products or services that could be bad for the health
of workers or for the environment must not be considered quality
product.
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1.2 Quality and competition
Saying that quality is important may appear obvious, but it would
be a mistaken judgement to understimate this fact: as Juran properly
observes, quality is a "weapon of competition".
Quality, together with other factors such as, for example, price
and innovation, represents an element of fundamental importance for
companies: it warrants them a very competitive position in business.
Competition is of fundamental importance not only for the survival
of companies, but also for Society: it does not only allows
companies to stay in business, it also provides jobs and so it
benefits Society.
With regard to this important role of quality in companies,
Galetto contrived the so-called "Competitiveness Tetrahedron"
reported in figure 1.1, where every edge represents one of the
factors which allows companies to be competitive: Price, Innovation,
Response Speed, Profitability, Image and Quality of course.
Figure 1.1 : Competitiveness Tetrahedron [Galetto, 1996]
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As anyone can easily guess, these factors must complement each
other and are all equally important for company survival: Customer's
choices are striclty influenced by them and it could cost too much
to companies disregarding this fact.
1.3 Quality and productivity
Nowadays, in several companies, it is common opinion that quality
and production are incompatible and that when one improves the other
decreases.
Actually, this opinion seems to be spoiled by prejudice against
the role of quality department in companies: in fact quality, when
it is real, entails less rework, less waste and less problems both
for the Customer and the company.
With regard to the relationship between quality and productivity,
Deming observes that: "Improvement of quality transfers waste of
man-hours and of machine-time into the manufacture of good product
and better service. The result is a chain reaction - lower costs,
better competitive position, happier people on the job, jobs, and
more jobs." [Deming, 2000]
The chain reaction the author refers to is that shown in figure
1.2: it was on the blackboard of every meeting with top managament
in Japan
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from July 1950 onward.
Figure 1.2 : Chain reaction [Deming, 2000]
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We have to remember that W. E. Deming is the internationally renowned consultant
in quality and productivity management whose work gave a fundamental contribution
to Japanese industry.
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But improvement of quality is not so easy as it may appear: first of
all, this aim requires all company's functions to be involved in
achieving it; second, it requires management to be aware of the
value of quality and of its fundamental role for company's
economics; but, above all, quality improvement and problem
prevention need competent people and appropriate methods for
achieving it: what companies really need is developing the "culture
of quality".
These aspects are so important that it is worth devoting them the
right space: for this reason, we will analyze them in detail on next
sections.
1.4 Quality: cost or investment?
Once reached the awareness that quality improvement implies less
defects, less reworks, less waste and so on, how can we question the
economical role played by quality in companies?
As rightly observed by Deming, "the cost of rework is only part of
the cost of poor quality. Poor quality begets poor quality and
lowers productivity all along the line, and some of the faulty
product goes out the door, into the hands of the customer. An
unhappy customer tells his friends. The multiplying effect of an
unhappy customer is one of those unknown and unknownable figures,
and likewise for the multiplying effect of a happy customer, who
brings in business." [Deming, 2000]
Poor quality (or disquality, as named by Galetto) does cost:
defects, waste, reworks, mistakes are not free and companies must
pay for them, since someone must correct them: would not it be
better to avoid them, to understand in advance where matters lie
concealed, to prevent them?
This question is not a rhetorical one. Companies need quality to
stay in business, but quality is a matter of culture: anyone must
learn how to achieve it, must realize that commitment on quality is
not a waste of time and money, and above all, must understand that
quality, when it is real, is no more a cost than an investment.
Actually, saying that quality is free, is not completely true:
people who works on quality must be aware of the heavy
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responsibility by which they are burdened. Working on quality means
knowledge of methods fit for taking decisions that will affect
company's destiny, its credibility and reputation; the consequences
of wrong decisions could be very costly for companies and transform
investment on quality into costs of disquality. Quality requires
people to commit themselves to achieve it, to spend time in learning
the proper methods (which must be methods of quality) that allow
them taking the right decisions, to understand the damaging effects
of wrong methods claimed as the "panacea for all the problems".
In other words quality does cost in terms of intellectual efforts
and commitment that people must lavish to achieve it: from this
point of view quality is very expensive and this justifies the need
of competent people and proper methods to work on it.
Unfortunately, very often these aspects are disregarded by
companies, which understimate the effects of decisions taken by
people who know very little about quality and are influenced by
misleading methods.
1.5 Quality: who must achieve it?
As indicated in the previous section, quality can be achieved only
by competent people, namely by good management, as for company's
survival, and by good teachers, as for education of beginners.
As clearly proved by several scholars, as well as Deming, Crosby,
Feigenbaum, Galetto and Nelson, quality in companies is essentially
a matter related to management: "Managers have the responsibility of
major decisions in a company and the soundness of their decisions
affects the quality of the products and the satisfaction of
customer's needs. In order to make sound decisions managers have to
be aware of the consequences (which is prevention using management
by if... then... else (MBITE)) of their decisions; in relation to
quality matters, managers have to commit themselves to ensuring that
the concepts and disciplines associated with quality will be
introduced into the developments programmes of the company."
[Galetto, 1999]
The responsibility for quality improvement in companies lies with
managers: they have to make the right decisions on the basis of few
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data. For this reason, they have a great responsibility towards the
whole company, they must be aware that methods used to take
decisions are not all equally good, and, above all, they must be
able to discriminate between sound methods and misleading ones. The
matter is that very often managers do not realize and recognize
their responsibility and are persuaded the most of disquality
problems to be ascribable to production workers: this is a wrong way
of thinking and acting.
Even when management is aware of its responsibility, the methods
used to take decisions are often bad, and no one takes care of
verifying their soundness: this is another wrong way of thinking and
acting.
As for the education of beginners, things are equally serious:
several courses on quality do not devote the right space to the
analysis of good methods; quality reviews are full of articles,
written by teachers, which praise misleading methods; consultants
and so-called experts are often full of hot air and take advantage
of selling methods which have little or nothing to do with quality.
"Awakening to the need for quality, and with no idea what quality
means and how to achieve it, American management have resorted to
mass assemblies for crash courses in statistical methods, employing
hacks for teachers, being unable to discriminate between competence
and ignorance. The result is that hundreds of people are learning
what is wrong." [Deming, 2000]
Again we must point out that managers, as well as teachers and
consultants, are burdened by heavy responsibility: future of
companies is in their hands, they cannot understimate the
consequences of their decisions, they must be rational managers.
With regard to the role managers have to play, F. Galetto, deviser
of the adjective "rational" related to manager, observes: "Managers
are decision-makers and therefore need tools for thinking in
decision-making in order to be rational managers: to recognize
problems, collect information, set priorities accurately, find
causes, consider all factors and other people's views, consider
alternative courses of actions, consider consequences and sequels to
troubleshoot the future, consider risk to any choice, etc.
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To make full use of the thinking ability of people there is a
basic approach, the if... then... else... (ITE) approach to
decisions:
every time a manager has to make a step in the decision process,
he/she must ask him/herself
If I do this
Then I shall have consequence
Else I shall have this other consequence
ITE is an integrated, holistic approach that release intellectual
resources that have been hidden, unused or underused, opening
channels of communication among people. This is the fundamental
basis for prevention. MBITE is the acronym devised to remind
managers of their obligations for prevention and long-term
commitment." [Galetto, 1999]
These few lines highlight an important aspect: managers must
commit themselves in taking the right decisions making use of their
thinking skills to deduce logical consequences from the available
information and facts, the proper methods and a sound theory; in
other words they must be intellectually honest and aim at the
achievement of the profound knowledge (see Deming) which would
warrant companies to stay in business.
Another issue clearly pointed out by Galetto is the importance of
prevention; as we will see later, prevention is the core of quality:
management must understand that corrective actions are completely
different from preventive ones, and that great care must be taken in
order to chose methods fit for dealing with problems prevention.
Again the central point of the matter is represented by the choice
of methods for quality which can lead to the right decisions.
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1.6 Quality of methods for quality
So far the importance of good methods for quality has been
repeatedly pointed out: we did not mean to bore the reader, but
rather to get him acquainted with the damaging effects that wrong
methods can give rise to.
When managers use a particular method in order to make decisions
on the basis of available data, they must understand whether the
method itself is sound or not; a bad method can lead only to wrong
decisions, wrong decisions may have heavy consequences for the
credibility and reputation of company and for the future of its
workers: nowadays, companies cannot afford the luxury of making
mistakes, the destiny of lots of people is in their hands.
The use of misleading methods, together with the obvious effects
on company's reputation, wastes time and money and, as it is well-
known, resources are limited, no one should waste them.
But how can we discriminate between a good method and a bad one?
Only Logic and Scientific Approach can provide the right route
towards good methods.
These few lines tell something important: only people who commit
themselves in the analysis and research of the methods can
understand their soundness. But understanding is not enough: they
must be intellectually honest and avoid using bad methods, even if
they are praised by "experts", consultants and so on.
Since, according to the F1 principle (devised by Galetto),
"reality does exist in spite of human beings' willingness and
ability to recognize it", we cannot expect good outcomes from the
application of wrong methods neither if lots of (wrong) papers are
written to prove the contrary.
Every method for taking decisions should be a scientific approach
to decisions and should be analysed from the viewpoint of Logic, not
blindly used; neglecting too long the effects of the application of
wrong methods can lead to unpleasant consequences: these methods,
usually easy to use and well "wrapped up" in some software packages,
spread quickly and undermine sound "old and obsolete" methods.
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This is what happened to Taguchi methods: the early wariness that
received them at their appearence, with time has changed into great
respect so that now, according to many teachers, "experts",
consultants and so on, they are worthy of the highest praise.
Intellectually honest people, by virtue of Logic and Scientific
Approach, have proved the misleading outcomes provided by Taguchi
methods, but their voice has been unheard: must we doubt someone to
have something to gain from the spread of certain methods? Cui
Prodest? Unfortunately, no answer will be given to these questions.
The same remarks made with reference to the Taguchi methods, hold
also for other methods: a look at Galetto's papers would be very
interesting and useful since he devoted, sometimes together with his
students, lot of time and research to the analysis of non-scientific
methods for quality. Teachers, consultants and "experts" would learn
a lot of things about quality of methods for quality if only they
would test themselves out: understanding Galetto's papers could be a
good "crash test".
Very often, wrong methods suffer from a lack of Logic and total
absence of statistical basis, which are fundamental for quality
achievement and improvement: companies need competent managers who,
making use of their knowledge and ability, can teach "statistical
thinking" (term contrived by Deming) to other managers, engineers,
foremen, supervisors, production workers, designers and so on. Good
knowledge of statistics is needed in order to discover the fallacy
of bad methods: this means that teaching pure statistical theory in
universities, including probability theory, should be excellent and,
consequently, should be entrusted to qualified teachers. As Deming
states very clearly: "Teaching of beginners should be done by a
master, not by a hack", "anyone that engages teaching by hacks
deserves to be rooked" and "nothing takes the place of a good
teacher".
Managers and teachers must commit themselves in the use of sound
methods if they want achieve and improve quality: they must analyse
any method before using it and, above all, they must remember that
"it is a hazard to copy. It is necessary to understand the theory of
what one wishes to do or to make." [Deming, 2000]
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In order to point out the importance of the quality of quality
methods, Galetto contrived the matrix shown on figure 1.3.
Figure 1.3 : Knowledge matrix [Galetto, 1999]
"The right tools can be used if managers – as well as teachers,
consultants, experts – use correctly the "knowledge matrix", a cell
which represents the knowledge situation of two people who have to
make a decision based on their knowledge. It is clear that in order
to achieve quality, people must move to the left upper corner: both
good knowledge and good applications are needed." [Galetto, 1999]
It is worth noting that many good methods are available for
working on quality, but each of them applies to different phases of
the processes of achievement and improvement; falling in love with a
sole method is not a good idea!
We will clarify the role played by different good methods on the
next section.
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1.7 Quality methods, development cycle and prevention
How does quality of products and services be achieved by managers?
According to Deming, "the consumer is the most important part of the
production line. Quality should be aimed at the needs of the
consumer, present and future.
Quality begins with the intent, which is fixed by management. The
intent must be translate by engineers and others into plans,
specifications, tests, production." [Deming, 2000]
As shown on figure 1.4, quality is related to all the phases of
the product develpment cycle: from the analysis of the needs of
Customer, User and Society to the design, from production to the
release of the product in the market-place.
As we can see, many important phases, the first ones, of the
development cycle are related to the so-called preventive actions;
corrective actions and product improvement come only in the second
place. This underlines the importance of prevention: if managers do
not commit themselves in problems prevention, they assure troubles
and high costs of disquality. It is soon clear that it is absolutely
necessary to prevent failures, defects, flaws and mistakes before
the product is relesead to the market-place.