TQM (aka Six Sigma)
The figure illustrates the four linked components of Dr. Deming's system of profound knowledge. He emphasized the production system, explaining that every system must have an Aim; which Dr. Goldratt calls the system's goal. In for profit companies, Dr. Goldratt claims that the goal is to 'Make money now and in the future.' Goldratt hastens to point out, however, that satisfying this goal always involves two necessary conditions: 1. Satisfying and motivating employees now and in the future, and 2. Satisfying customers now and in the future.
Dr. Deming often observed that there are many untapped areas of management that are subject to improvement through applying profound knowledge. One of these areas is project management, where little has improved in the last forty years; and the practices used then failed to incorporate Profound Knowledge. For a current example, you are welcome to download a draft paper recently submitted to the Project Management Institute. Your comments on the paper are welcome! It is a pdf file, so if you do not have Acrobat reader, you will have to download it (its free) from another site. You are welcome to copy this draft paper electronically or in hard copy, as long as you keep it intact. If you have a fussy copy office, use a print-out of this page as your authorization to copy, "Putting Quality in Project Risk Management: Understanding Variation," by Lawrence P. Leach.
Today, some applications of TQM operate with the new name of six Sigma. Six Sigma renames the goal of TQM, and provides continuously improving methods; for example substituting DMAIC for PDCA (or PDSA). We support the direction and tools of six sigma. We take a pragmatic business results view of Six Sigma as continuous improvement to the TQM process started by Dr. Deming.
Some of my favorite links:
Deming site at MIT
The figure is a logic diagram representation of Deming's fourteen points. These points are compatible with TOC, except for point 5. A significant misunderstanding of Deming can result from literal reading of point 5; with respect to improve EVERY process. TOC provides a strategy to focus on the constraining process. Eventually, TOC should lead to the result of improving every process that has value, because continuous application of the five focusing steps should eventually force the constraint through every value adding process. I am sure Deming would agree with the TOC strategy, suggesting that it is simply part of managing the system. The misinterpretation occurs when people believe point 5 means you should invest significant effort in improving every process from the beginning. Since most processes are not the system constraint, this leads to significant wasted effort; and little return. This may be why many TQM processes have failed. Or, to put it another way, TOC leads to the hypothesis that TQM processes which succeed (especially in showing short term impact) are focused on and improving the system constraint.
