Management : Best Utilization of Available Resources

Once upon a time a Donkey had fallen in a dry well of a village and started crying. After few hours all villagers were collected there and saw that a Donkey was crying in the well. All were started suggesting to took the Donkey out of well but no Idea had been come into their mind. At last they leave the Donkey on the grace of God. One of them suggested  "please stop and think if the Donkey will die then the smell of the dead body will spread in the whole village and may be the cause of some disease, so we should through sand in the well, this way the Donkey will die under the sand and no risk of spreading smell of his dead body remain." All were agree with him and started digging the sand nearby the well and through sand by bucket  in the well one by one. After some time what they noticed when sand fallen on the back of Donkey, Donkey shake his back and the sand came under the feet of Donkey, slowly the Donkey up rised by a feet , when all villagers noticed they were encouraged and digging sand fast and through in the well , after a few hours the Donkey came out of well. All villager were very happy as they unknowingly save the life of the Donkey.

So the Learning is ..............

If you look around yourself then you will find many resources available but due to not know best utilization  of resource you underestimate it and so not find the solution of your problems and a situation of  mismanagement will create. The above story teaches us about management of resources.

Management is not  a degree

Management is not  earning a huge amount of wealth

Management is not  acquiring a position of Manager 

Management is not  selling a brand 

Management is not  running a big business house 

Management is not  crying for what you not have 

                         In fact  above all 

"Management is simply acquiring a skill of best utilization of available resources to create a solution for our problem."

Thanks 

Narender Sharma

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Philip Crosby's : Do It Right First Time and Zero Defects

Philip B. Crosby was an  eminent Quality Guru , born in 1926, began his quality career as a reliability engineer. He later participated in the Martin missile experience that spawned the genesis of the Zero Defect movement. He worked in Quality Management for 14 years in ITT as a Corporate Vice President and Director Quality. In 1979 he published Quality is Free , which became a bestseller. In response to the interest shown in the book, he left his organization that year to set up Philip Crosby Associates Incorporated.

Corsby published his second bestselller , Quality Without Tears, in 1974. Other books associated with his  name are 

• The Art of Getting Your Own Sweet Way
• More Things 
• The Eternally Successful Organization and Leading 
• The Art of Becoming and Executive

Do It Right First Time (DIRFT) and Zero Defect 

Corsby is very much popular for these two concepts named as Do It Right First Time and Zero Defects. Corsby defined the quality as the conformance to the requirements which the company itself has established for its products based upon the customers needs. He believes that most companies have systems that allow deviation from actual requirement. The cost that they spend on doing the wrong things right  in subsequent chances is 20% of their revenue in manufacturing companies and 35% of operating expenses for service companies. He believed that workers should not be the prime responsible for the poor quality, In fact Management set the standard of quality and workers follow them therefore the initiative comes from the top. Doing things right first time will not prevent people from making mistakes, but will encourage everyone to improve continuously. He strongly emphasized on the top- down approach, since he believes that senior management is entirely responsible for quality.  The ultimate goal is to train all the staff and give them the tools for quality improvement , to apply the basic precept of Prevention Management in every area.

Principles of ZERO DEFECTS

• Quality is conformance to requirements : Every product or service has a requirement according to the customer needs. If these requirement are achieved by the product when comes to use of the customer then this product categorize as the quality product. for example if low cost Ink pen full fill the requirement of writing without any blot and skip on the paper then it is called the quality product in comparison of the a precious gold plated pen if it will not write good and neat on the paper. Hence if a product meets the requirement of the customer then it conforms the quality of the product , no matter how costly it is.
• Defect prevention is preferable to quality inspection and correction :  It is better to prevent the defect at  its origin rather to inspect it in the process and then correct it. It saves lot of  human power and cost of inspection and correction. For example If a person changes the poor condition  brake shoes of his bike before next riding then it will prevent lot of energy of the rider and reduce the risk of accident on the road and generation of new defect in the bike due to poor condition brake shoes which observed later and needs the correction and in turn of high cost of repair.
• Standard of Quality is always be ZERO DEFECT , not close enough. : If any product does  not meet the requirements then the product  is not the quality product even if it close to meet the requirement, because on the basis of Zero Defect any non conformance is not, fore granted. The product is not acceptable and categorize as under quality product.
• Quality is measure on the basis of Price -  Price of Non Conformance ( PONC): This is the key principle, Crosby's believed that every defect incur a cost. To find and correct and prevent this defect organization introduces many steps like Inspection , Time , Rework,  Scrape , Collection of data of customer satisfaction etc. All these steps required a huge amount of money and so lot of revenue has lost to maintain all steps to prevent the defects and therefore to maintain the Quality, cost must considered. Every non-conformance contributes a cost in terms of loss of revenue due to it.

Related Article :

Juran's Quality Trilogy ,  Deming's System of Profound Knowledge , Deming's 14 Points

Juran's Quality Trilogy

Like Deming, Dr. Joseph Juran is a charismatic figure of senior age, born is 1904. Juran started out as an engineer in 1924. In 1951 his first Quality Control Handbook was published and led him international eminence. Chapter 1 of the book was titled The Economics of Quality and contained his now famous analogy to the costs of quality : 'there is gold in the mine'.

Juran's  Quality Trilogy 

Juran developed the idea of quality trilogy :

• Quality Planning 
• Quality Improvement 
• Quality Control

These three aspects of company-wide strategic quality planning are further broken down in Juran's 'Quality Planning Road Map' , into following key elements 

• Quality Planning 

1. Identify who are the customers 
2. Determine the needs of those customers.
3. Translate those needs into our language.
4. Develop a product that can respond to those needs.
5. Optimize the product features so as to meet our needs and customers needs.

• Quality Improvement 

1. Develop a process which is able to produce the product.
2. Optimize the process

• Quality Control 

1. Prove that the process can produce the product under operating conditions.
2. Transfer the process to operations.

Juran concentrates not just on the end customer, but identifies other external and internal customers. His concept of quality is that everyone in the organization must also consider the 'fitness for use' of the interim product at each stage of production/operation flow. He illustrates this idea about internal customers via the Quality Spiral.

Customers==>Product Development==>Operation==>Marketing==>Customers==>Further Product Development==> and  so on ...........

Juran's work emphasis the need for specialist knowledge and tools for successful conduct of the quality function. He emphasis the need for continuous awareness of the customer in all functions.

Related Article :

Demings system of profound knowledge, Demings 14 points