The document discusses how to improve productivity and increase profits through quality improvements. It states that improving quality can decrease costs through less rework and mistakes, improve productivity, capture the market with better quality and lower prices, and ensure the business stays open by providing jobs. Quality improvements are achieved through reducing variability in inputs, design, process control and customers. The document advocates for continuous improvement methods like Lean Manufacturing and Six Sigma to iteratively enhance processes over time.

1. How to Improve Productivity and Increase Profits
Dr. John Persico Jr.

2. The Key to Profitability
• Improve Quality —>
• Costs decrease because of less rework, fewer
mistakes, fewer delays, snags, better use of
machine-time and materials —>
• Productivity Improves —>
• Capture the market with better quality and lower
price —>
• Stay in Business —>
• Provide jobs and more jobs

3. The Three Qualities
• Quality of the Process
• Quality of the Product
• Quality of the Service

4. What most affects Quality?

5. Variability
• Inputs
• Design
• Process Control
• Customers

6. Tampering
Can anyone define tampering for me?
Deming’s Funnel Experient

7. “When a system is stable,
telling the worker about
mistakes is only tampering.”
--- W. Edwards Deming

8. If It Ain’t Broke, Don’t Fix it!
“The aim of leadership should be to improve the
performance of man and machine, to improve
quality, to increase output, and simultaneously to
bring pride of workmanship to people. Put in a
negative way, the aim of leadership is not merely to
find and record failures of men, but to remove the
causes of failure: to help people to do a better job
with less effort.” --- Dr. W. E. Deming

9. Continuous Improvement
• Lean Mfg.
• Kaizen
• Six Sigma
• TQM
• JIT
• Kanban
• Five S System
• QFD
• TRIZ

10. Continuous Improvement
• “We installed quality control.” No. You can
install a new desk, or a new carpet, or a
new dean, but not quality control. Anyone
that proposes to “install quality control”
unfortunately has little knowledge about
quality control. --- W. E. Deming

11. What are you doing to
improve?
Are you continually improving or
continuously improving?

12. PDCA CYCLE

13. Useless Metrics
• "There is no true value of any characteristic, state,
or condition that is defined in terms of
measurement or observation. Change of
procedure for measurement (change of
operational definition) or observation produces a
new number." - W. Edwards Deming
• "An operational definition is a procedure agreed
upon for translation of a concept into
measurement of some kind." - W. Edwards
Deming

14. Balanced Scorecard

15. QFD

16. Not Understanding the
Process

17. Not Understanding the Process
This is only
one of six
pages in the
Malting
Process

18. Bureaucracy

19. Big-Project Engineers Have to Deal
with Too Much Red Tape
--- Scott Whitbread and Nathaniel D. Greene, HBR, JANUARY 14,
2016
• A sense that blanket design philosophies, technical
standards, and previous designs cannot be questioned.
• Removing responsibility for key technical decisions from the
project team.
• An inability to easily determine the value of ideas.
• A preoccupation with benchmarking against other projects.
• Missing the forest for the trees.

20. Examples of Bureaucracy
• Gary, Indiana Printing Company
“I don't understand why it is SO difficult for a school to
adhere to a set of written accommodations for a child on an
IEP - Other than it may cause them to do a little bit more
work! Yes, you might have to grade a test one day later. Is it
really that difficult to set a child up to succeed rather than
setting them up to fail. It took 8 times visiting the assistant
principal for the bullying to stop this year and now this...
my patience is running out! And they wonder why
enrollment is dropping in the district... Hmmmmm???”
From a Friend on 3-1-2016
• ?
• ?
• ?
• ?

21. Superstitions
• Full Definition of SUPERSTITION
1. 1a : a belief or practice resulting from ignorance,
fear of the unknown, trust in magic or chance, or a
false conception of causationb : an irrational
abject attitude of mind toward the supernatural,
nature, or God resulting from superstition
2. 2: a notion maintained despite evidence to the
contrary

22. Superstitions

23. Superstitions
• “The supposition is prevalent the world over that
there would be no problems in production or
service if only our production workers would do
their jobs in the way that they were taught.
Pleasant dreams. The workers are handicapped
by the system, and the system belongs to the
management.” --- W. E. Deming

24. Superstitions
• We have the best workers in the industry
• We need to hire great workers to succeed
• The customer is never wrong
• A happy worker is a productive worker
• More training and education are needed for our
employees.

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