ASSIGNMENT ON PROJECT MANAGEMENT
American-made car parts were all within specified tolerance levels. On the other hand, theJapanese car parts had much closer tolerances than the USA-made parts - i.e. if a part wassupposed to be one foot long, plus or minus 1/8 of an inch - then the Japanese parts werewithin 1/16 of an inch. This made the Japanese cars run more smoothly and customersexperienced fewer problems. Deming offers a theory of management based on his famous14 Points for Management. Management's failure to plan for the future brings about loss of market, which brings about loss of jobs. Management must be judged not only by thequarterly dividend, but by innovative plans to stay in business, protect investment, ensurefuture dividends, and provide more jobs through improved products and services. "Long-term commitment to new learning and new philosophy is required of any management thatseeksTransformation. The timid and the fainthearted, and the people that expect quick results, aredoomed to disappointment."
Deming philosophy synopsis
The philosophy of W. Edwards Deming has been summarized as follows:
"Dr. W. Edwards Deming taught that by adopting appropriate principles of management,organizations can increase quality and simultaneously reduce costs (by reducing waste,rework, staff attrition and litigation while increasing customer loyalty). The key is to practice continual improvement and think of manufacturing as a system, not as bits and pieces."
In the 1970s, Dr. Deming's philosophy was summarized by some of his Japanese
proponents withthe following 'a'-versus-'b' comparison:
When people and organizations focus primarily on quality, defined by the followingratio, quality tends to increase and costs fall over time.
However, when people and organizations focus primarily on
, costs tend to riseand quality declines over time.
Deming offered fourteen key principles for management for transforming businesseffectiveness.
Deming’s 14 Points for Management:
Create constancy of purpose toward improvement of product and service, with theaim to become competitive and stay in business, and to provide jobs.
Adopt the new philosophy. We are in a new economic age. Western managementmust awaken to the challenge, must learn their responsibilities, and take onleadership for change.
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.
RAHUL GUPTA, MBAHCS (2
SEM), SUBUJECT CODE- MBOO33, SET-1Page 3