Deming’s 14 Points
W. Edwards Deming’s 14 points are the basis for transformation of industry. Adoption and action on the 14 points are a signal that the management intend to stay in business. aim to protect investors and jobs. Such a system formed the basis for lessons for top management in Japan in 1950 and in subsequent years.
The 14 points apply anywhere, to small organisations as well as to large ones, to the service industry as well as to manufacturing. They equally apply to any division within a company and to it’s suppliers.
As you read through each of the 14 points below, ask yourself if they still apply today, either within your current organisation, or within organisations you have recently worked for. The answers may be surprising.
1. Constancy of purpose:
Create constancy of purpose toward continual improvement of product and service, with a plan to become competitive and to stay in business.
Management have two concerns. One deals with running the business on a day to day basis. The other deals with the future of the business.
They must have clarity on the questions; what are we doing, and why are we doing it?
The answer to these questions requires knowledge and looking to the future. It is the difference between short term and long term thinking; the tortoise and the hare.
Problems of the future require constancy of purpose, and dedication to improvement.
Create constancy of purpose toward continual improvement of products and service, allocating resources to provide for long range needs, rather than only short term profitability, with the aim to become competitive, stay in business and to provide jobs.
To stay in business requires that leaders spend time on innovation, research and education. They must constantly improve the design of their product and service.
Purpose is an intent, a goal, a vision of some future desired state. To have constancy of purpose then one must first have a purpose.
2. The new philosophy:
We are in a new economic age, created in Japan. Management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.
Improvement never stops. The system is capricious, erratic, it will affect people in different ways from one month to another. Which is why you need continuous improvement, it can never finish as change never finishes.
The customer demands and tastes change very fast, and the competition in the market grows at a rapid rate today.
Henry Ward Beecher said “Philosophy of one century is the common sense of the next”; we have to accept new philosophies according to the market trends and technology revolutions.
Learn and adopt the new philosophy, one of cooperation to everyone’s benefit.
Management must awaken to the challenge, learn their responsibilities and take on leadership for change.
We are in a new economic age, created in Japan. We can no longer live with commonly accepted levels of delays, mistakes, defective materials and defective workmanship. We cannot accept today, the levels of error that could be tolerated yesterday. Defective products and services are a cost to the system.
Only management is in a position to do something about the vast majority of errors. Transformation of Western management style is necessary to halt the continued decline of business and industry.
Its management’s task to remove the obstacles that prevent people from doing their jobs correctly.
5. Improve every process:
Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.
Constantly improve the production and service system to improve quality and productivity, thus decreasing costs.
Accept nothing is ever good enough. Improve constantly and forever every process for planning, production and service.
Improvement isn’t a project with a finite end. Instead, think continuous, never ending improvement.
Everyone should search continually for problems in order to improve every activity in the company, to improve quality and productivity and thus to constantly decrease costs.
Finding what’s wrong is not improvement. Plugging leaks is not improvement. Don’t look at outcomes or defects, instead look at what produces the defects.
There should be continual education on waste and continued improvement of quality in every activity, this will yield a continual rise in productivity.
It is management’s job to work continually on the system (for example work design, incoming work, improvement of tools, supervision, training and retraining). There in no stopping point in the process of quality management.
The enterprise system and services must keep growing indefinitely in order to catch up with the competitive market.
Read the other 11 points at Systems Thinking, Lean and Kanban