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Dem ing
 
Deming
After World War II eminent statisticians like Deming, Juran, and Ishikawa came up with some new and unique qualitymanagement concepts. The shift in the management's perspective to quality too can be traced back to this period.
Concept > Introduction 
Learning is not compulsory...neither is survival.Dr.W.Edwards Deming.
Quality is no longer an option, but a positive requirement for any business to survive today. Quality now is not just aboutmeeting certain specifications but implies meeting and exceeding customer expectations.After World War II eminent statisticians like Deming, Juran, and Ishikawa came up with some new and unique qualitymanagement concepts. The shift in the management’s perspective to quality too can be traced back to this period.Edwards Deming is famous for his stupendous role in the Japanese quality revolution. He successfully taught the Japanesethe importance of applying statistics to improve the quality of products.During his visit to Japan in the early 1950’s, Deming stressed on a culture where continuous improvement is firmly rootedin all activities of the organisation. He considered the entire production activity a system involving the
suppliers
and theend customers. According to Deming an organisation, must manufacture its products according to customers’ requirements. He also highlighted the need to partner with suppliers to create quality products economically.In a very short time the Japanese became world leaders in manufacturing. There was an incredible growth in their exports.Japanese goods, once considered worthless were most sought after, the world over.Deming’s teachings were the seeds for the industrial revolution in Japan. The Japanese established the Deming’s prize in1950 to express their gratitude to Deming.Even as Deming’s teachings revolutionised the Japanese industry, he was ironically unknown in his own country, inAmerica. It was not until the NBC news channel aired a programme in 1980, titled
‘If Japan can…why can’t we?’ 
that theUS woke up to Deming and his teachings. This documentary proved an eye opener for the American manufacturingindustry. The US actually got to why Japan was much ahead of them in superior quality standards.Since then Deming’s ideas started gaining acceptance in American businesses and the world at large.Deming’s teachings are detailed in his famous books “Out of the Crisis” and “The New Economics for Industry,Government, Education”.His key teachings can be summarised as under:
Deming’s 14 Points to manage an organisation.
The Obstacles and ‘The Seven Deadly Diseases’ against Quality.
The PDCA Cycle Of Continuous Improvement.
The Theory Of Profound Knowledge.
Continue the tour:Deming's 14 PointsConcept > Deming’s 14 points
 
Deming believed that quality could be achieved only through an organisation wide transformation. Management plays avery crucial role in this. Deming’s 14 points are hence valuable guidelines for any management seeking to bring about atransformation in their organisation. The 14 points he enunciated are:
1. Create constancy of purpose toward improvement of product and service, with the aim to becomecompetitive, stay in business, and to provide jobs.
According to Deming, a customer-oriented approach is the key to success. Companies will have to fulfil customer needsand expectations to remain competitive. This requires an honest assessment of the company’s processes, products andmarket. It also demands a willingness to change. Continuous improvement should be the only constant in anyorganisation.Companies need to plan for the long term and adjust all their processes and functions towards fulfilment of these long-term goals. Short-term solutions often have undesirable effects on the achievement of long-term goals.
2. Adopt a new philosophy. We are in a new economic age. Western management must awaken to thechallenge, learn their responsibilities and take on leadership for change.
After the Second World War, United States was the only country that had both the resources and manpower to dominatethe world in manufacturing. But US companies ignored the fundamentals of manufacturing and concentrated more onpromotion and marketing. Deming had meanwhile foreseen this and presented the need for transformation in the westernstyle of management. He emphasised the need for focus on quality improvement and overall change in the westernstrategy.
3. Cease reliance on mass inspection to achieve quality. Eliminate the need for large-scale inspection bybuilding quality into the process itself.
Deming stressed the futility of the system of inspection. According to him, inspection of the finished product happens verylate and is futile. The company ends up paying both for the production of defective parts and for their modification.
Quote:
“Quality comes not from inspection but from the improvement of the process”(Deming 1986).According to Deming, inspection should be a method where the workers assess the quality of their work at the processlevel. This helps shrink variation and minimise end product inspection.
4. End the practice of awarding business on the basis of price tags. Instead, minimise total cost. Move towarda single supplier for any one item, on a long-term relationship of loyalty and trust.
Today suppliers play a vital role in the quality of the end product. Consistently high quality products are only possiblethrough a committed long term working relationship with a few trusted suppliers. Hence, companies should move towardslong-term relationships with a few crucial and trusted suppliers.
5. Improve the system of production and service constantly, to improve quality and productivity, and thusconstantly decrease costs.
Deming suggested the use of Shewhart’s cycle to design and continuously improve products or processes.This cycle is widely known as PDCA cycle (Plan-Do-Check-Act). The PDCA cycle can be used to identify problems in aproduct or process and work towards their continuous improvement. It can also be applied to incorporate customer needsand wants into new products, thereby providing a customer centred approach.
6. Establish on-the-job training.
In most companies on-the-job training is either not sufficient or is conducted by a person who is himself not fully trained.This results in the propagation of faulty practices. Providing quality training should be the first step any company takestowards improving quality.Training in monitoring processes should not be limited to engineers but should extend to all frontline workers. It is theywho first check whether the processes are operating within controls. Hence they too should be given adequate training toknow about ways to maintain a process within acceptable limits.
7. Institute leadership. Supervision should aim to help people and machines and gadgets to perform better.Management supervision as well as supervision of production workers is in need of overhaul.
According to Deming the management should act like a mentor rather than a faultfinder. Instead of judging workers basedon their performance, managers should look how they can improve the system to help workers give their best. Managersshould strive to create an environment of trust and encouragement such that workers experience a sense of pride in theirwork.
8. Drive out fear, so everyone can work effectively for the company.
People are at their best when they feel secure enough to ask questions or share ideas. Both productivity and quality areoften harmed in the presence of fear. Normally, workers who fear their bosses seek to meet the minimal expectedstandards rather than striving to give their best. Thus quality is neglected.An atmosphere of fear in a company neither promotes respect for the management nor an improvement of quality.
9. Break down barriers between departments. People in research, design, sales, and production must work asa Team, to foresee problems of production and during end use that may be encountered with the product or
 
service.
Let us consider a very department centred company. The design department in this company develops a prototype basedon a new design. The prototype is handed to the sales department, which in turn demonstrates it to the customers andreceives advance orders from them. However, the manufacturing department is unable to produce the producteconomically and in time. This is because the new design was not made keeping ease of manufacturability in mind. Theresult is delay and poor quality of the final product. Apart from loss of sales the company good will too is destroyed.Organisations require a cross-functional teamwork based culture in order to improve performance. Called QC (Qualitycircles) these teams consist of personnel from design, engineering, production, finance and sales departments.Cross-functional teams develop an overall perspective of issues. They are thus able to arrive at viable and economicalsolutions.
10. Eliminate slogans, exhortation and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, since the major cause of low quality andproductivity is the system and thus lies beyond the power of the work force.
Quality slogans and banners aim at motivating workers to improve quality. But according to Deming these are directed atthe wrong people. Workers have only as little as 6% in their hands to enhance quality. About 94% of the possibleimprovements are dependent on the ‘system’.The power to effect improvement in a ‘system’ lies only with the management. Management should hence seek ways toimprove the ‘system’ instead of holding the workers responsible for poor quality. According to Deming the posters orslogans put up by management only lead to frustration within the workforce. It reveals that the management is ignorant of the real causes of poor quality.
11. Eliminate work standards (quotas) on the factory floor; eliminate management by objectives; and,eliminate management by numbers and numerical goals. Substitute this by leadership.
According to Deming, setting individual production targets may prove counterproductive to quality. Workers striving toachieve their production targets often neglect the finer aspects of quality.Long-term goals can only be met by improving the system. Hence, Deming suggested improving the system rather thansetting targets and driving workers to achieve those targets.
12. Remove barriers that rob employees, management, and engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual review or merit rating and management byobjectives. The responsibility of supervisors must be changed from mere numbers to quality.
According to Deming the concept of ranking and performance evaluation is unjust. Ranking generates competition amongstworkers. Rather than motivate, it demoralises employees. Deming believed that it was the system that needed to becontinuously reviewed and improved.
13. Institute a vigorous programme of education and self-improvement.
Training helps the worker improve his skills for the present job. Education on the other hand focuses on the future.Managements must thus provide employees education programmes such that they can adapt to the future requirements intheir job. Education helps an employee to contribute to his workplace in a more intelligent way.
14. Put everybody in the company to work to accomplish transformation. Transformation is everybody's job.
Transformation can only be achieved if everyone in the company is involved starting from the boardroom to the front lineworker. This is because every activity in the company is important. Management should effectively communicate andconvey the role each worker can play in process improvement. According to Deming, Quality can be improved only wheneveryone in the company rightly interprets these 14 points and successfully implements them to achieve transformation.
Techniques and Methods > Deming’s Cycle
According to Edwards Deming, the success of an organisation lies in how well it evaluates its present
 products, processesand 
 
markets
in the light of 
customer needs.
Quality is about providing the customer with what he wants. With customer needs changing, an organisation should also bewilling to change. An organisation needs to equip itself with the necessary techniques for making continuous improvementat the work place.Deming promoted the use of 
PDSA
cycle as a means to improve quality in an organisation. PDSA is an acronym for PLAN,DO, STUDY and ACT.Its origin can be traced back to the eminent statistician Walter A. Shewhart. In the 1920’s Shewhart had developed thePLAN, DO and SEE cycle for improvement. This is often referred to as ‘
the Shewhart cycle’ 
. Edward Deming modified theShewhart cycle as: PLAN, DO, STUDY and ACT.
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