Sunday, March 05, 2006

Deming's 14 Points management revolution

1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.

2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.

3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place.

4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.

5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.

6. Institute training on the job.

7. Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers.

8. Drive out fear, so that everyone may work effectively for the company.

9. Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service.

9. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.

Eliminate work standards (quotas) on the factory floor. Substitute leadership.

Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.

12. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality.

13. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective.

13. Institute a vigorous program of education and self-improvement.

14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.

1 comment:

Daniel Detroit said...

For the past 15 years I have been a student of Mr. Demings. His 14 points are astute observations of human nature and are not invalid with time. What is missing in understanding Demings is why he imparted his understanding to the Japanese in particular. He was greatly moved by a people whose nation had just been destroyed by war. He wanted the betterment of a people, not his own financial gain primarily as his chief impetus. American industry in general attempts to duplicate the result of companies that have proven out Demings' observations of human nature i.e. Toyota, without understanding the why. And the why is a genuine concern of his fellow man. This stands in stark contrast to greed being the central motivation.

I continue to look for a US company that is somewhat of adherent to Demings, but I have had no luck, even the greatest failures. Because of the great shortcomings of US industry Demings thinking can be viewed as idealism in its simplest form. The red bead experiment's lessons are pretty much barren of most US management. They continue to blame the workers for system problems that they do not posess the courage , foresight or proactiveness to solve. Look at the US auto industry today. Management says it's healthcare, unions, and every other excuse are the problem but itself. Management if it would be honest in many cases needs to fire itself. Demings put the blame 85% management/ 15% worker. He was being much to polite. It is probably 99% management/1% worker, for who hired these inefficient workers in the first place. They did not hire themselves.

Daniel H Lang