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Dr. W. Edwards Deming's 14 Points of Management
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1. Create consistency of purpose toward improvement of product and service. Consistency of purpose requires that management be committed to long-term thinking instead of just changing strategies to make the quarterly report look good. Management must believe that the company will be in business for a long time and then base their strategy on the long term.
2. Adopt the new philosophy. Refuse
to accept defects.
Adopt the new philosophy means change.
The changes needed in industry require a complete new outlook on
management and industry by raising the expectations of quality.
3. Cease dependence on mass
inspection.
Inspection does not improve quality,
nor guarantee quality. Inspection is too late. The quality, good or bad,
is already in the product. Mass inspection is unreliable, costly, and
ineffective.
4. End the practice of awarding
business on the basis of price tag. Require suppliers to provide
statistical evidence of quality.
The policy of forever trying to drive
down the price of anything purchased, with no regard to quality and
service, can drive good vendors and good service out of business.
5. Find problems. Continually and
forever make improvements.
Improve constantly and forever the
system of planning, production, and service, in order to improve every
process and activity in the company, to improve quality and productivity,
and thus constantly decrease costs. Institute innovation of product,
service, and process. It is management's job to work continually on the
system (design, incoming supplies, maintenance, improvement of equipment,
supervision, training, retraining, etc.)
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6. Institute modern methods of
training on the job.
Training is an investment. It is not an
investment in land or equipment but in people. Even though it does not
raise the net worth of your company, its results are well worth the
investment. The investment is "minute in comparison with the potential
advantage to the company of that worker understanding his job, i.e.
knowing how to do it properly and to the company's best advantage.
7. Give all employees the proper
tools to do the job right.
8. Drive out fear so that everyone
can work effectively.
Encourage effective two-way
communication and other means to drive out fear throughout the
organization so that everybody may work effectively and more productively
for the company.
9. Break down barriers between departments; encourage different departments to work together on problem solving.
Break down barriers between departments
and staff areas. People in different areas, such as Research, Design,
Sales, Administration, and Production, must work in teams to tackle
problems that may be encountered with products or service.
10. Eliminate numerical goals,
posters, and slogans that ask for new levels of productivity without
providing specific improvement methods.
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.
11. Eliminate work standards that
prescribe numerical quotas; use statistical methods to continually improve
quality and productivity.
A huge contributor to poor quality and
waste is quotas. Everyone works at different speeds. There is no way of
changing this. To be a good manager you must learn the system you are
responsible for. It is then that you can increase productivity by making
improvements to the system and not by making lofty and unattainable goals.
12. Remove all barriers to pride in
workmanship.
Performance appraisals are an example
of tampering with a stable system. It creates a Win-Lose environment
instead of a Win-Win environment. People are unable to contribute what
they’d like to contribute to their jobs; they have to get a good rating.
People find out what is important for merit and do it.
13. Provide vigorous and ongoing
education and retraining.
In respect to self-improvement, it is
wise for anyone to bear in mind that there is no shortage of good people.
Shortage exists at the high levels of knowledge, and this is true in every
field.
14. Clearly demonstrate management
commitment to the above 13 points every day.
Management must take on the fourteen
points whole heartedly. This is not a project but a lifelong commitment
needing continual improvement. They must explain the new philosophy to
everyone in the company so that everybody as a team can work toward the
common goal.
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