Managing Business

Individual assignment BM027-3-2-MBUS MANAGING BUSSINESS

Name: Saltanat Maratova Student ID: TP020379 Intake Code: UC2F1103BIS Lecturer Name: Hand in Date: Due Date: Word Count:
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Managing Business Table of Contents INTRODUCTION ................................ ................................ ................................ .................3 DEMINGS 14 POINTS APPLIED TO AN ACADEMIC ENVIRONMENT ........................ 4 Create constancy of purpose ................................ ................................ ........................... 4 Adopt new philosophy ................................ ................................ ................................ ....5 Cease dependence on inspection ................................ ................................ .....................5 End the practice of awarding business on price tag alone ................................ ................5 Improve constantly and forever ................................ ................................ ....................... 6 Institute Training ................................ ................................ ................................ ............6 Institute Leadership ................................ ................................ ................................ ........6 Drive out fear................................ ................................ ................................ ..................7 Break down barriers between departments ................................ ................................ ......7 Eliminate slogans and targets ................................ ................................ .......................... 8 Eliminate management by objectives (MBO) ................................ ................................ ..8 Remove barriers to pride ................................ ................................ ................................ .8 Encourage education and self-improvement ................................ ................................ ....9 Transformation is everyones job ................................ ................................ ....................9 Demings Cycle....10 CONCLUSION ................................ ................................ ................................ ................... 11 REFERENCES ................................ ................................ ................................ .................... 12

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Managing Business

Introduction:
William Edwards Deming (October 14, 1900 December 20, 1993) known as a person who revived the industrial production of Japans after Second World War and developed the reputation for supremely high- quality manufacturing that they still enjoy today W. Edward Deming was an American professor, author, lecturer, statistician and consultant. Japanese managers were interested in Demings management theories which were ignored in America before. In 1947 Deming was invited to Tokyo to give lectures and seminars about statistical process control. The Japanese industry adopted the Deming's techniques immediately and ten years later Japan became one of the leading countries in industry. The impact of Demings management theories on American industry has made him one of leading consultants around the world. Deming was awarded the Shewhart Medal by American Society for Quality Control and he received many other rewards. Edward Deming preached his 14 Points that he believed could make the industry more competitive by increasing quality of products without expensive machinery. The items mainly focus on customer satisfaction and produce high quality product. It is also concerned about the condition of the state in the firm. Finally, it is important to note that the principle of Demings management style is still extremely favorable and popular among the business community.

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Managing Business

Deming s 14 principles in academic environment

1. Create constancy of purpose: Constancy of purpose is the first fundamental step, in which need to define its values, mission and vision of the future to provide long-term direction for its management and employees. Dr. Deming believed that business should not exist simply for profit: they are social entities whose basic purpose is to serve their customers and employees. To implement this purpose they must take a long-term view, to invest in innovation, to do comprehensive research and provide training. Nowadays Demings principles not just use in business community it also use in academic environment, to improve the quality of the universities. In academic environment, each learning institution must define an objective for a present and future timeline. Student is the customer of university, so the administration should try to satisfy that customer needs. Determining goals is no trivial matter, should go through combine the ideas of the staff and the students to reach vision and values of the institution. The mission statement for a university is to develop the skills, attitudes, and motivation in students so they will become responsible citizens and be capable of making positive contributions to society. Example: The instructional staff at Van Meter Secondary school believe that:
y

We need to find childrens passions, help them to discover their skills and abilities, and then coach them( and their parents) in those direction

The purpose of an educational system is to teach kids to THINK, LEAD AND SERVE.

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Managing Business

2. Adopting the New Philosophy Deming believed that after making a new objective, the management should adopt to the new philosophy to attain the main target. In academic environment to effectively focus on the customer needs, everyone, from boardroom to the stockroom, must learn the new principles that support the quality revolution. Management needs to break the barriers between the staff and the student, which contribute to create trustful relationship of interaction. So, the staff and the students should work together to produce the best possible results to achieve one common goal. Example: In Harvard University the management provides their students with the latest equipment and necessary tools to give an opportunity to study in best way. 3. Cease dependence on mass inspection An institution needs to focus more in product or service process. Testing is always costly and spent time. The quality is not depends on audits, test or inspection. We need to develop processes in which there is minimum testing but will be more focus on progress in learning. In Academic environment it can be reached by providing high quality education through the teaching methods and teaching materials. Continuous quality improvement process is a challenge for all involved Students should be inspired to make themselves responsible for their own work and to become independent, in order to realize the mission. For example, there should be minimal emphasis on examinations and instead teachers should encourage peer assessing and selflearning of students. 4. Consider total cost not only initial price The price is nothing if the quality is not clear. Do away with the practice of purchasing for the cheapest price, but instead should be to minimize the overall costs and strive to choose a particular vendor for each product required in the production. In an academic environment would be a single supplier of materials such as books and food. First of all, college must select the supplier who provides the best quality goods and services with acceptable price, then buy all materials from particular supplier.
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Managing Business Example: Recruiting new teachers from one particular institution, which has a good reputation for producing quality teachers. 5. Improve constantly and forever Today and always, continuously improve all the processes of planning, production and service delivery. Management need to seek out problems, to improve all activities and functions in the university, improve quality and productivity and thus constantly decrease costs. In the academic environment, the management should search the needs of their staff and students. This way, the staff and the students will perform more efficiently. Example: To help decide where to look to improve, colleges can use surveys, suggestion boxes, etc. Classroom techniques must be improved, teaching methods should be updated and all the vital college departments should be closely monitored to continually improve them. 6. Institute training It is very important to get training at all levels of an organization to improve staff capacity. This will have an impact on the development of the organization and its growth and impact on the quality of teachers. Everyone needs to know their job well. Faculty development programs help teachers to improve their skills and capabilities. This kind of training should be implemented in academic learning process to give students the proper knowledge. Each employee must have up-to-date knowledge and experience in order to perform better. Example: APIIT University College has a large staff of experienced teachers and employees. They require high-level work and provide intensive training for their employees. 7. Institute Leadership The leader should be a designer, a creator of an environment. Need to apply modern management methods directed at helping people to better perform their work. In the learning process, academic staff should be leaders, not managers. Students need leaders to guide them in the right direction to improve the quality of work. Most of the lectures have a wrong idea of being leader, so that is highly affecting the performance of each student. Effective leaders must be able to identify barriers to communication and productivity, and then remove them.

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Managing Business Example: Most of the students are not interesting to study because they do not have any motivation to implement better performance. Because sometimes the teaching method of teachers is poor instead of this they need to guide and develop the skills of students.

8. Drive out fear Encourage effective two-way communication and to use other methods to eradicate fear, apprehension and hostility within the organization so that students and staff can work more efficiently and productively for the benefit of the university. Fear is manifested in many ways: fear of reprisal, fear of failure, fear of the unknown, fear of relinquishing control and fear of change. Any employee, who is experiencing the fear of their superiors, cannot properly cooperate with it. So in academic environment the staff and student need to have good relationship because the true collaboration can achieve much more. Example: Unfortunately, many schools operate on fear of punishment, the low estimate. Fear may lead students to obey but does not motivate them to be happy to school or training. Students should not be afraid to voice their complaints or claims. 9. Optimize the effort of team Teamwork helps to break down the barriers between department and individuals. In academic environment are formed many different teams. Different departments of institution have their own interests, traditions, values, and often even their own language and jargon. Therefore, they may feel the need to struggle with their colleges from other structures of the university their interests as they think, prejudiced. This can be done by working in a team, for example, departments and staff areas should cooperate with each other and work together to overcome problems and improve quality and productivity. Example: Different department or teachers should make a meeting to bringing everyone in on the decision process which will usually result in a better solution, and certainly one that is easier to accept.

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Managing Business 10. Eliminate exhortations Renounce the use of posters, slogans and appeals to staff and student, which requires them to Zero Defects operation, a new level of productivity, etc., just telling someone to do well is meaningless without the methods to achieve that goal. They assume that all quality problems are due to human behaviour and that workers can improve simply through motivational methods. Low quality and low productivity belong to the system and thus lie beyond the power of the work force. Example: If teacher is teasing the student without reason, they may have enmity relationship that can affect in learning process.

11. Eliminate Numerical Quotas and Management by Objective (MBO) Eliminate work instructions and standards, which set arbitrary standards and quotas for workers and quantitative targets for managers. Replace them with support and help from superiors in order to achieve continuous improvements in quality and productivity. Standards and quotas are born of short-term perspectives and create fear. Measuring system, which is used in academic environment, reduces the growth within each student. These numerical estimates cannot measure every aspect of students knowledge and critical thinking. Thus, the measurements should be expanded to cover more standard for each student. Subsequently, using the numbers of rank students may affect their behavior and performance within the class. In addition, all students, even low-grader should be encouraged to perform better in the future. Example: Most of the academic environment uses the grade system to measure student knowledge and rank them from the highest grade to lowest grade. 12. Remove barriers to pride in workmanship Pride is a strong motivator. In the academic setting, pride certainly flows from personal and group achievements, but there is also a good deal of pride in the institution as well. If the students are included in some of the decision making processes, they will develop a strong pride of ownership that can have a significant impact on their attitudes. Remove barriers that rob staff and student, denying them the opportunity to be proud of their work. Example: Students should try to express an opinion or attitude toward an issue or problem, despite their right or wrong. Since this will contribute to the development of strong pride and motivate them to do better.

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Managing Business 13. Encourage education and self-improvement Every person within the educational organization needs continuous learning and self improvement. Universities provide a vigorous program of education and support for selfimprovement for all teachers and management staff. Organization need not just people, it needs workers, improved by education. Source of successful progress in achieving competitiveness is knowledge. Eventually, all the staff members will be able to innovate new ideas and perform better in work environment. Example: Educational organizations provide a variety of management courses for employees, even outside their area of expertise. All employees are able to expand their knowledge and sharpen their skills of innovation in many ways. Also, the curriculum up-to-date with the outside world needs. 14. Take action to accomplish the transformation Management should be in charge of making every one starting from the staff until the student to adopt this transformation in the university. Management in authority will take pride in their adoption of the new philosophy and their responsibilities. The transformation is everybody's job. Teachers should be the main forces that direct all students towards the perfect amelioration by
supporting, training and motivation. Creation a structure of top management that will push every day during the previous 13 points, and take action in order to perform the conversion. Moreover transformation is an important part of performance development, without transformation any school, college, or university could hardly be successful.

All of the organization should understand the meaning of each of the 14 points, and management must understand and accept fully adopting the philosophy of TQM (Total Quality Management). This is not a trivial process as it will take time to understand and analyze all the 14 points. The time spent in this effort forms the foundation for all of the TQM implementation.

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Managing Business

Demings philosophy

Figure # 1:
(http://www.expertprogrammanagement.com/2010/10/the-plan-do-check-act-cycle-the-deming-cycle/)

PLAN
Define

DO

CHECK

ACT

a -Implement

-Analyse information

Evaluate -Apply and learned -Modify necessary as lessons

problem/opportunity corrective actions -Analyse situation the -Document procedures

the -Monitor and measure trends -Find and fix

-Think creatively to observation create solution

-Set

the

best -Use data gathering -Document results tools to collect

improvement information

goals and standards

Table # 1 Table #1 shows the explanation of Figure #1.

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Conclusion:
Total Quality Management can be a powerful tool in an educational institution, although it was designed for manufacturing processes. The key elements of successful implementation of gaining the support of everyone in the chain of supervision identify your customer, to focus on refining the process and use of Deming's 14 points as a guide and checklist in the implementation effort. The final result will be more productive and collaborative relationship, rather than "us versus them" attitude between teachers and students.

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References:

1) W.Edwards Deming 1. Winn, R.C, Green, R.S,1998, Applying Total Quality Management to the Educational Process, Available at:

http://www.ingesfor.com/BA537/Cases/Case%204_1/Case%204_1.pdf [Accessed on 16 May 2011] 2) Deming, W.E, 1986, Out of Crisis, Reprinted edition, Cambridge, Massachusetts, MIT Press 3) Image on Demings cycle [Online] Available at:

http://www.expertprogrammanagement.com/2010/10/the-plan-do-check-act-cyclethe-deming-cycle/ [Accessed on 6 June 2011] 4) Allen W. Demings 14 Points for Total Quality Management [Online] Available at: http://pirun.ku.ac.th/~b4555325/pdf/Xqa01%20Deming%2014%20pts.pdf [Accessed on 2 June 2011] 5) Demings Philosophy for Quality Management, Chapter 22 [Online] Available at: http://umanitoba.ca/faculties/afs/food_science/courses/Course%20notes/78_420/22% 20Deming.pdf [Accessed on 25 May 2011] 6) Evans, J.R, Lindsay W.M,2005, The Management and Control of Quality, 6th edition, Singapore, Seng Lee Press 7) Rao Ashok , ... [et al.]. 1996, Total Quality Management, USA 8) Demings Cycle, Available at :

http://www.expertprogrammanagement.com/2010/10/the-plan-do-check-act-cyclethe-deming-cycle/ [ Accessed on 5 June 2011]

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