Tuesday, June 29, 2010

Deming.....14 Key Principles for Management


The man was genius.....you can find this tidbit on Wiki....but I'd also recommend reading his material. Timeless.

Deming offered fourteen key principles for management for transforming business effectiveness. The points were first presented in his book Out of the Crisis. (p. 23-24)[22]
  1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and 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 massive inspection 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 towards 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 (see Point 12 and Ch. 8 of "Out of the Crisis"). 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. (See Ch. 3 of "Out of the Crisis")
  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.
  10. 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. a. Eliminate work standards (quotas) on the factory floor. Substitute leadership.
    b. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.
  12. a. 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.
    b. 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 (See Ch. 3 of "Out of the Crisis").
  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.

The same principles that built modern day Japan and brought Ford from the very grasp of death still work today. Some folks modify a few of these but the basic principles are timeless.


kml
2010

Monday, June 14, 2010

Quality.......during rapid business growth...

During economic downturns, quality and safety are often tossed out of the window......or I should say, during economic downturns those companies intent on 'failure at any cost' will toss quality and safety out of the window.

I think back to the economic explosion that occurred in the automotive industry during the early 2000's. Specifically, I am thinking about the great global demand for Toyota vehicles during this time period. I fear many of our businesses could easily have found ourselves in the same predicament as Toyota. The demand for output begins to exceed our desire for quality.......ironically, it is often our dedication to quality that led to the great demand for our product!

Our global economy is experiencing a soft rebound. I encourage us to all remember quality and safety. These are two chief cornerstones of industry. Product demand is directly proportional to quality of product.



kml
2010