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MARKET SHARE
PRODUCTIVITY
PROFITS
Demings 14 points
o An organization must define its values, mission, and vision of the future to provide long-term direction for its management and employees. o Businesses should not exist simply for profit; they are social entities whose basic purpose is to serve their customers and employees. o Do you have clear goals for the organization communicated to all employees??????
o Companies must take a customer-driven approach based on mutual cooperation between labor and management and a never-ending cycle of improvement. o We want to develop long term beneficial relationships with our suppliers and customers.
Inspection - the principal means of quality control. Routine inspection acknowledges that defects are present, but does not add value to the product. Inspection should be used as an informationgathering tool for improvement, not as a means of assuring quality or blaming workers.
o Stop Making Decisions Purely on the Basis of Cost. o The supplier and manufacturer must be considered as a macro organization.
o Deming urged businesses to establish long-term relationships with fewer suppliers, leading to loyalty and opportunities for mutual improvement.
o Improved design of goods and services comes from understanding customer needs and continual market surveys and other sources of feedback, and from understanding the manufacturing and service delivery process. o Deming chain reaction: When quality improves, productivity improves and costs decrease. o At all levels, everyone should be involved in continuous improvement activities every single day.
o Results in improvements in quality and productivity, adds to worker morale. o Demonstrates to workers that the company is dedicated to helping them and investing in the future. o If all employees are learning and growing every day, competition will be only a figment of our imagination.
o The job of management is leadership, not supervision. o Supervision simply overseeing and directing work. o Leadership providing guidance to help employees do their jobs with less effort. o The leaders select the music, set the tone and insure that everyone is on board at every moment.
Fear is manifested in many ways: fear of reprisal, fear of failure, fear of the unknown, fear of relinquishing control, and fear of change. Fear encourages short-term thinking. Fear is a cultural issue for all organizations. Ask your associates what they fear and then do whatever is necessary to get rid of it.
o Teamwork helps to break down barriers between departments and individuals. o Barriers between functional areas occur occurs when managers fear they might lose power. o Lack of cooperation leads to poor quality. o Find ways to open communications between suppliers, customers and all employees.
o Causes of variation stemming from the design of the system are managements problem, not the workers. o Value is placed on doing and demonstrating.
Quotes
Deming says quite bluntly that if the boss of every staff areap erceives (or indeed is told) that his objective is to maximize his department's profits then the company will fail.
Deming advocated that all managers need to have what he called a System of Profound Knowledge, consisting of four parts:
1. Appreciation of a system: understanding the overall processes involving suppliers, producers, and customers (or recipients) of goods and services (explained below); Knowledge of variation: the range and causes of variation in quality, and use of statistical sampling in measurements; Theory of knowledge: the concepts explaining knowledge and the limits of what can be known; Knowledge of psychology: concepts of human nature.
2. 3. 4.
Plan-Do-Check-Act
Obstacles
Hope for instant pudding The supposition that solving problems, automation gadgets, and new machinery will transform industry Search for examples Our problems are different Obsolescence in schools Poor teaching of statistical methods in industry
Use of military standard 105D and other tables for acceptance Our quality control department takes care of all our problems of quality Our troubles lie entirely in the work-force False starts We installed quality control The unmanned computer
The supposition that it is only necessary to meet specifications The fallacy of zero defects Inadequate testing of prototypes Anyone that comes to try to help us must understand all about our business
The supposition that it is only necessary to meet specifications The fallacy of zero defects Inadequate testing of prototypes Anyone that comes to try to help us must understand all about our business
Deming Prize
Award named in honor of W. Edwards Deming. There are three separate divisions for the award Deming application price, Deming price for individuals & Deming price for overseas companies. The award process is overseen by Deming Prize Committee of the Union of Japanese Scientists and Engineers ( JUSE ), in Tokyo, Japan.
Deming Prize
The following 10 criteria are used for assessing the Deming prize:1. Company policy and planning 2. Organization and its management 3. QC Education 4. Collection, transmission, and utilization of information on quality 5. Analysis 6. Standardization 7. Control 8. Quality Assurance 9. Effects ( Results ) 10. Future plans