In 1993, Deming published his final book, The New
Economics for Industry, Government, Education, which included the System of
Profound Knowledge and the 14 Points for Management.
Deming
offered 14 key principles to managers for transforming business effectiveness.
The points were first presented in his book Out of the Crisis. (p. 23–24) Although
Deming does not use the term in his book, it is credited with launching
the Total
Quality Management movement.
1.
Create
constancy of purpose toward improvement of product and service, with the aim to
become competitive, to 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 a 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 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 usage
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. Eliminate
work standards (quotas) on the factory floor.
Substitute with
leadership.Eliminate management by objective. Eliminate management by numbers and numerical
goals. Instead substitute with leadership.
11.
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.
12.
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 objectives (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 "Seven Deadly
Diseases" include:
1.
Lack of constancy of purpose
2.
Emphasis on short-term profits
3.
Evaluation by performance, merit rating, or annual review of performance
4.
Mobility of management
5.
Running a company on visible figures alone
6.
Excessive medical costs
7.
Excessive costs of warranty, fueled by lawyers who work for
contingency fees
"A Lesser Category of
Obstacles" includes:
1.
Neglecting long-range planning
2.
Relying on technology to solve problems
3.
Seeking examples to follow rather than developing solutions
4.
Excuses, such as "our problems are different"
5.
The mistaken belief that management skills can be taught in
classes
6.
Reliance on quality control departments rather than management,
supervisors, managers of purchasing, and production workers
7.
Placing blame on workforces who are responsible for only 15% of
mistakes while the system designed by management is responsible for 85% of the
unintended consequences
8.
Relying on quality inspection rather than improving product
quality.
"Massive training is required to
instill the courage to break with tradition. Every activity and every job is a
part of the process."
Norb Leahy, Dunwoody
GA Tea Party Leader
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