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Quality Wars: The Triumphs and Defeats of American Business, by Jeremy Main
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The quality revolution in American industry, now more than a decade old, has produced an avalanche of books, but this is the first in-depth study reporting the struggles from inside the companies that have attempted large-scale improvement efforts. Jeremy Main has interviewed more than a dozen chief executives, all of whom have managed quality programs, including Charles Clough of Nashua, Robert Galvin of Motorola, James Hagen of Conrail, Roger Milliken of Milliken, Ray State of Analog Devices, and John Young of Hewlett-Packard, in addition to hundreds of other senior executives, workers, labor representatives, city officials, military officers, and hospital administrators. Through their experiences, Main reveals what works and what doesn't work when an organization attempts the transforming leap into Total Quality Management. Their message comes through loud and clear: it is a tough battle, but persistence can win priceless rewards. The notable successes at BancOne, L.L. Bean, Ford, Hewlett-Packard, Motorola, Saturn, Solectron, and Xerox prove it. However, Main shows that Motorola and Hewlett-Packard, among the earliest and best practitioners of total quality, are still finding obstacles to overcome. And some other early converts, such as Florida Power & Light, have stumbled badly along the way. Main's vivid descriptions of these setbacks capture the difficulties inherent in implementing a total quality system. His dramatic accounts of success and failure at companies such as Milliken and Intel convey valuable knowledge that is otherwise gained only by actual experience. The way to achieve the "new quality" of today, Main shows, is through a full commitment to TQM. He reveals through the experiences of these companies that TQM is not just a management tool, as it has often been used, but a management philosophy that is indispensable in attaining a high level of quality-- now a requisite for competing successfully. With the collaboration of the Juran Institute, Main demonstrates how TQM has transformed companies by improving quality at all levels. The accounts of these triumphs are direct evidence that world-class quality is attainable by American industry, and will inspire and point the way for executives, managers, and government officials in their timeless pursuit of total quality.
- Sales Rank: #3277698 in Books
- Published on: 1994-03-28
- Original language: English
- Number of items: 1
- Dimensions: 9.53" h x 1.26" w x 6.43" l,
- Binding: Hardcover
- 382 pages
From Publishers Weekly
What is quality? How can we achieve and sustain it? In this impressive study, Main, formerly a Fortune magazine editor, focuses on total quality management's (TQM) quest for the "holy grail." Main's coverage of the need for TQM is intriguing. As American corporations grew bigger and older, they became self-destructive, he notes. Studying some key TQM corporations and leaders (Roger Milliken; Motorola's Robert Galvin) in depth, he also examines ways in which TQM can be harnessed by government and the professions. "Fumblers" (corporations that "have been trying for quality for years without succeeding") are also profiled. Main, weaving a rich tapestry free of statistics and math, has provided a sophisticated view of TQM.
Copyright 1994 Reed Business Information, Inc.
From Booklist
Although long revered in Japan, quality guru W. Edwards Deming remained almost anonymous in the U.S. until recently. Ironically, Joseph M. Juran, who some argue deserves even more credit than Deming for the "quality revolution," is still relatively unknown. The Juran Institute is his consulting firm specializing in total quality management (TQM) systems. Under the institute's auspices, Main, a former member of Fortune's board of editors, reports on the status of TQM in the U.S. today. Having interviewed hundreds who have been involved with implementing TQM within their own organizations, Main documents successes and, more important, failures in the effort to improve quality and change thinking. Even some of those who were successful early on continue to find obstacles; others have suffered letdowns after their initial bursts of enthusiasm. In what may be one of the most important of the many books on quality, Main shows others how to learn from those efforts. David Rouse
From Kirkus Reviews
A journalist's objective and informative report on total quality management (TQM) in the US over the past 15 years. Drawing on the resources of the Juran Institute (a Connecticut-based consultancy that underwrote his research), Main provides a wide-ranging, jargon-free briefing on TQM's past, present, and potential. At the outset, he assesses the factors that induced American enterprise to add quality assurance to its operating manual during the 1970s. These range from the inroads made by Japanese suppliers in domestic markets to recurrent oil crises and the desire to gain or maintain a competitive edge. The former Fortune editor goes on to document the frequently ineffectual efforts of pioneering corporations to embrace TQM, an eye-of-the-beholder concept that requires top-down attention, employee involvement, customer orientation, and the use of tools (benchmarking, control charts, statistical measurements) that he fears are beyond the capacities of ill-educated US workers. Main next provides an anecdotal audit of companies that have made a success or failure of TQM. Among those singled out for accolades are Banc One, Ford Motor, Hewlett-Packard, Intel, Motorola, and Xerox. The ranks of the fumblers include Caterpillar, Florida Power, GM, IBM, and Southern Pacific (several of whom are past winners of the Malcolm Baldridge National Quality Award). Covered as well are services (airlines, finance, insurance, telecommunications), the professions (education, law, medicine), and government. Among other advantages, Main concludes, TQM can afford committed organizations a focus (i.e. clients, consumers, or the tax-paying public) they previously lacked, enhance labor's loyalty and competence (though Main worries about the impact of mass layoffs in the name of cost containment), put a premium on genuine leadership, and otherwise yield handsome returns. Accessible, down-to-earth guidance on a demanding oversight philosophy that, for all its recuperative powers, promises the commercially challenged neither quick fixes nor instant salvation. -- Copyright ©1994, Kirkus Associates, LP. All rights reserved.
Most helpful customer reviews
1 of 1 people found the following review helpful.
Wanna know the truth ?
By Balaji S. Reddie
Jeremy Main minces no words in outlining the triumphs and defeats ( so-called ) of the TQM efforts made by different companies . He has gone to the depth of understanding why these efforts fail or succeed . The backing of the Juran Institute in this endavour only adds to the credibility of this effort . Recently Dr. Juran ( on the 26th of Feb 2002 ) declared publicly that Jeremy Main was one of the two journalists who really understood Quality Management in it's entirety . All in all - a very good read .
0 of 0 people found the following review helpful.
Refreshing Return to Reality -
By Loyd Eskildson
America's quality effort can be traced back to 1924 when Bell Labs' Walter Shewhart outlined how a statistical control chart could provide the basis for reducing variations - not by inspection, but by monitoring and reducing variations. This not only reduced the need for inspectors, but also assured better quality at a lower cost. WWII and Defense Dept. pressure helped spread implementation. After WWII, interested faded. Americans were happiest making deals, not spending time with customers or workers, or leading. Collegial management and consensus management became confused.
In defeated Japan, U.S. forces needed good communications with the populace. One company was particularly interested - Tokyo Communications, later renamed Sony. W. Edwards Deming went twice to Japan to advise authorities on statistical sampling, and then was invited back a third time in 1950. The quality movement in Japan was born out of the island nations need to live by exporting. Westinghouse higher-ups went to Japan on technical exchange agreements - in the 1970s realized productivity was improving 8 - 10%/year, vs. an average in their own company of 1 - 3%. That was a wake-up.
Xerox had 90% of the U.S. market for photocopies in the early 1970s, then 85% (and dropping) by 1976, and 13% in 1982. Juran was asked to talk to senior managers during that initial fall, and asked for a list of the 10 most common causes of failure, in order of importance. Then he asked for the same list for an earlier model - they were identical. Turned out that Ricoh and others could design and ship a copier in half the time and at half the cost of U.S. Xerox. Xerox had 5,000 suppliers - several for every item; 8% of supplied items were defective. After Xerox told suppliers to 'shape up, in one year, from 1982 to 1983, the defect rate dropped from 8% to 3%, then down to < .03% by 1988. Xerox cut its number of suppliers to 350, and new parts were only bught from the best suppliers.
HP used 4K and 16K RAM memory chips solely from U.S. suppliers until 1977 and 1979 when its American vendors ran short of capacity. Comparing three Japanese and three American vendors, they found not a single Japanese chip failed upon arrival, while 50 - 100 U.S.-made chips out of every 50,000 failed, with the worst American chip 27X likely to fail as the best Japanese chip.
Ford executives toured Japanese auto plants in the late 1970s and found employees there were not being worked to death, the number of robots was not significantly higher, plants were much cleaner, and quality was better - mostly from design. Ford invited Deming to talk. He emphasized constancy of purpose, building quality in, not quality by inspection, removing barriers between people and departments, developing long-term relationships with a few good suppliers, statistical discipline, and by 1985 Ford quality was the best of the Big Three.
Motorolans may have been preconditioned to the need to improve quality by what happened to their old Quasar plant in Illinois. Before Matsushita bought the plant from Motorola in 1974, TV sets coming off the line had 140 problems/100 sets; by the end of the decade Matsushita, with the same work force and management, had reduced problems to 7/100.
Roger Milliken's textile company sent three managers to Japan in 1979. The team reported back that the Japanese were using equipment two to three generations older than Milliken's, with rejects one-tenth of Milliken's and productivity levels 3X the Americans.
I'd forgotten about why quality improvement became such a hot topic a few decades ago. Main quickly reminded me, with a quick overview of how America lost TV production to Asia. Until the 1970s, 7% defect rates were generally considered 'normal.' Corning Glass was considered America's #1 manufacturer of TV tubes and the glass panels that go in front of them. Early on, customers were rejecting only 1%. Then, the Japanese came along and raced off with that market in the 1970s. Four of Corning's five U.S. glass plants closed - Japanese defect rates were in the parts/million. Corning then focused on quality improvement starting in 1983, and by 1987 its remaining TV-glass plant had improved performance 10X and was throwing out only 1,000 parts/million. Sony then returned to buying from the plant, and rejected less than 100/million pieces. Motorola's quality goals became 6 Sigma (3.4 defects/million), a target it hit in some areas; Intel also achieved impressive quality levels as well.
Unfortunately, TQM cannot carry a company by itself. G.M., IBM, and Westinghouse all have divisions that won the Baldrige Quality Award, and then suffered significant business downturns. Nonetheless, A PIMS study over many years of what was the most important factor affecting business performance was the quality of its products and services, relative to those of competitors.(1987). The analysis found that those companies could sell at prices 5-6% higher than those in the bottom third.
Frederick Taylor sharply separated the roles of managers and workers, and helped create a caste system that eventually ate away at the productivity he wanted to achieve. However, when workers and managers serve together on teams it becomes difficult/impossible to avoid matters that normally would be handled by labor-management negotiations, and violating that National Labor Relations Act.
Some companies encountered problems with employee involvement by leaving middle management out --> resistance. Training programs encountered problems due to workers eg. reading below an 8th-grade level, and/or unable to express percentages of 100 - so much for statistical process control! (Motorola had to fire 18 for refusing to be retrained.) Another problem - delivering training too early, instead of JIT.
When consulting for a steel mill in 1950, Kaoru Ishikawa heard one group of workers complain that the steel plate delivered to them had scratches and other defects. He then asked, "Why not go to the next work group upstream to ask why the steel plate got damaged?" Out of that suggestion arose the idea that the customer is not only the final buyer, but also 'the next process.' Thus, everybody is a customer.
Taichi Ohno observed a U.S. supermarket in the 1940s and again in1956, concluding that the customer pulls the groceries through the system instead of manufacturers and workplaces pushing their products into the market. This led to JIT.
Statisticians make an important distinction between 'random' (common) and 'assignable' (special) causes for variation. The former are transient and identifiable (eg. a flue epidemic, power outage, bad batch of raw materials), while the latter are a continuing part of the process - natural variation in the machinery or system. Assignable causes can be eliminated one by one through quality controls, while random causes can only be removed or reduced by systematic quality improvement of the process. When only random causes are present, the process is said to be in statistical control. Points outside upper and lower control limits represent assignable causes. Previously it was thought that workers were at fault for these variations, and they were made worse by attempting to adjust in response to each item. The use of statistical controls typically produces spectacular results at the outset.
Asking 'Why?' five times, and JIT are additional important quality tool. JIT, however, may involve self-deception - when the manufacturer cuts his inventory, but the supplier simply delivers JIT products out of the same old inventory. In 1983, U.S. suppliers had hardly speeded their schedule of tool changes at all. Sixty percent changed their tools less than once/week, 55% in 1988. American producers may be better suited to JIT than Japanese because of better highways - eg. Japanese trucks at some plants stack up early in the morning trying to beat the traffic.
Benchmarking became popular in the 1990s. It is not industrial tourism or espionage, rather open, specific, aboveboard and often involving consorting with the enemy. Xerox's studying L. L. Bean in the early 1980s showed it was also possible to learn from other industries. Bean's warehouse workers could 'pick and pack' #X Xerox's because its goods were stored according to velocity and not category. Ford found its Accounts Payable staff numbered 450, compared to Mazda's six - Mazda had eliminated an invoiceless system that simply counted the number of cars out the door and assumed eg. the number of windshields purchased was the same. (Not literally, but close enough.)
Designing for manufacturability includes minimizing the number of parts, and reducing the numbers of adjustments, fasteners, jigs, and fixtures. When NCR replaced an electronic cash register with a new model, these principles reduced assembly time by 75%, the number of parts by 85%, the number of suppliers by 65%, the entirely eliminated the need for assembly tools. Software (CATIA) now checks for fit, concurrent engineering with manufacturing representatives assists also.
'Things gone wrong' for 100 new cars at the start of the 1980s was 300 - 400, but had shrunk to close to 100 by the end of the decade. The J.D. Power initial quality study of 1992, based on queries to buyers three months after purchasing a new car found American cars averaging 136 problems/100 cars, vs. Honda's 105 and Infiniti's 70.
During the 1980s, GM spent $77 billion on new plants and equipment as part of an enormous bet that automation would solve its quality and productivity problems. When Ford tried to make a world car out of the European-designed Escort, each region redesigned the car; only six of Escort's 5,000 parts were the same in Europe as in the U.S., and one of those was the radiator cap. Late, while trying to improve the work environment, Ford reduced the number of job classifications from 30 to 1. Milliken eliminated 30 levels of wages and replaced them with three - based on skill levels and not seniority as in the past.
IBM's original 'Basic Beliefs' had as #1 'Respect for the Individual,' #2 'Service to the Customer,' and #3 'Excellence Must Be a Way of Life.' In 1989 the order was reversed.
In 1985 the U.P. still had 1,200 firemen on its roster, and railroad workers earned more total compensation than any other industrial workers except coal miners. In 1986, a train crew member's annual pay averaged about $52,000, including fringes, while a unionized truck driver pulled in about $40,000 and a nonunion owner-operator about $32,000. Mike Walsh was asked to run Union Pacific in 1986, after six years at Cummins Engine. U.P.'s cost of poor quality added up to 26% of total revenue in 1987, with customers especially unhappy about errors in their bills. Derailments were costing $84 million/year. By 1992, 93% of its locomotives were normally available, compared with 87% in 1987 - each percentage point free up 25 locomotives. The costs of derailments dropped to $42 million in 1992. The company began buying out employees or putting them on reserve at reduced pay (70%), and negotiated agreements cutting half of train crews size down to two; the reserve board had about 800 members. He cut 600 management jobs and reduced management layers to four from nine. Employees overall fell from 37,600 to 29,500. Productivity climbed from 8.3 ton-miles/employee in 1986 to 13.9 in 1992, and the cost of poor quality dropped from $1 billion to half that. Net income nearly doubled, from $385 million in 1986 to $662 million in !992.
0 of 2 people found the following review helpful.
read all day
By englishmen
This is the bees buzz! Ive never seen any this like this. The only thing to make this better is if he has oatmeal every wendsday!
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