Saturday, December 29, 2012

The 14 Principles of Deming: Worth knowing for MBAs

From the link:

Deming's 14 Principles:
    PRINCIPLE 1 : "Create a constancy of purpose"
      Define the problems of today and the future
      Allocate resources for long-term planning
      Allocate resources for research and education
      Constantly improve design of product and service
    PRINCIPLE 2 : "Adopt the new philosophy"
      Quality costs less not more
      Superstitious learning
      The call for major change
      Stop looking at your competition and look at your customer instead
    PRINCIPLE 3 : "Cease dependence on inspection"
      Quality does not come from inspection
      Mass inspection is unreliable, costly, and ineffective
      Inspectors fail to agree with each other
      Inspection should be used to collect data for process control
    PRINCIPLE 4 : "Do not award business basedon price tag alone"
      Price alone has no meaning
      Change focus from lowest initial cost to lowest total cost
      Work toward a single source and long term relationship
      Establish a mutual confidence and aid between purchaser and vendor
    PRINCIPLE 5 : "Improve constantly the system of production and service"
      Quality starts with the intent of management
      Teamwork in design is fundamental
      Forever, continue to reduce waste and continue to improve
      Putting out fires is not improvement of the process
    PRINCIPLE 6 : "Institute training"
      Management must provide the setting where workers can be successful
      Management must remove the inhibitors to good work
      Management needs an appreciation of variation
      This is management's new role.
    PRINCIPLE 7: "Adopt and institute leadership"
      Work standards
      Meet specifications
      Zero defects
      Appraisal of performance
    Replace with leadership
    Leaders must:
      Remove barriers to pride of workmanship
      Know the work they supervise
      Know the difference between special and common cause of variation
    Principle 8 : "Drive out fear"
      The common denominator of fear
      The fear of knowledge
      Performance appraisals
      Management by fear or numbers
    PRINCIPLE 9 : "Break barriers among staff areas"
      Know your internal suppliers and customers
      Promote team work
    PRINCIPLE 10 : "Eliminate slogans, exhortations,and targets
      They are directed at the wrong group
      They generate frustration and resentment
      Use posters that explain what management is doing to improve the work environment
    PRINCIPLE 11 :"Eliminate numerical quotas"
      They impede quality
      They reduce production
      A person's job becomes meeting a quota
    PRINCIPLE 12 : "Remove barriers"
      Performance appraisal systems
      Production rates
      Financial management systems
      Allow people to take pride in their workmanship
    PRINCIPLE 13 :"Institute a program of education and self-improvement"
      Commitment to lifelong employment
      Overtime and education
      Work with higher education of needs
      Develop team building skills in children
    PRINCIPLE 14 : "Take action to accomplish thetransformation"
    Management must:
      Struggle over the fourteen points
      Take pride in the new philosophy
      Include the critical mass of people in the change
      Learn and use the Shewhart cycle

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