Monday, July 29, 2019

Deming’s 14 points for Management


















As per Deming, “TQM is a set of systematic activities carried out by the entire organization to effectively and efficiently achieve the organization’s objectives so as to provide products and services with a level of quality that satisfies customers, at the appropriate time and price”.

The emphases is on customer satisfaction and go back to basics and customers. It is B2B (back to basic) and B2C (back to customers).

In simplest words it is “on time delivery of product and/or services of right quality at competitive price”.
What are Deming’s 14 business philosophy points for Management?
Every company small or large, manufacturing or service industry, profitable or non-profitable deals with competitive phase of market. For which here are 14 components, where the management of an organisation need to adhere to in order to drastically improve to be successful. By going through these 14 points in all levels of the organization, an entire transformation can be achieved.
Color codes are used for different categories in description. These components are described in four categories-

Category
Description of category
Deming Business points
         1
System approach
4,11,14
         2
Statistical approach towards variability reduction
3,5
          3
Nature and scope of knowledge
6,13
          4
Psychology and understanding of human behavior.
1,2,7,8,9,10,12


The 14 Business philosophy points of Deming in short description are as follows:

1.      Create constancy of purpose towards improvement of product and/or services.
Do not wait till the product is out for packaging or delivery but evaluation should be done at each stage for necessary improvements during the process.  Constant improvement in product/services will make you more competitive in market and consistency in the business.

2.      Adopt the new philosophy of cooperation for “Win-Win”.
Management must take responsibility for being open to changes as per market demand and customer satisfaction. Without cooperation it will be difficult to face new chances and challenges.  The Change is the demand in a time when innovation occurs every day. Company cannot sustain without necessary change.

3.      Cease dependence on mass inspection of the product to achieve quality.
Instead of product inspection, for ensuring quality checks should be done during the process. Any improvement needed can be made earlier before a question arises on liability of product. Earlier detection will not only improve our product but will also save on time and cost.

4.      End the practice of awarding business on the basis of price tag alone.
Stop doing business and negotiate with suppliers based on the lowest price. Select suppliers who are authorized dealers and are ISO accredited for standard raw materials. The supplier should be able to deliver raw materials/reagents/consumables at right place, at right time and of right quantity. It is worthwhile in the long term to build a good and long-standing relationship with suppliers, which fosters trust and increases loyalty.

5.      Continually improve every process.
Continuous improvement in product and or services will result in better quality and productivity. Improved processing will result in cost reduction, less waste, reduced rework and scraps which subsequently has a cost effective effect.

6.      Institute on the job training for skill enhancement.
Training and development of employees is necessary for the survival of an organisation. It is managements responsibility to get employees trained in the field they are working in their company. There should be a proper training plan schedule and all the necessary training should be given to sharpen their skills at workplace. A trained and skilled employee can efficiently and effectively manage resources in the company ultimately increasing productivity.
I have faced this personally and would like to share this, especially with HR managers, CEOs and all there -about the fear of losing well trained employee.

7.      Adopt and institute leadership.
Since Supervisors, Leaders, HOD and managers are counted on scale of high authority and hence can help employees and equipment work better. They can figure out what is happening on the workplace. They should be  fully focus on the big picture of company.

8.      Drive out fear and build trust.
Fear is paralyzing. Therefore, fear should be removed at work floor so that everyone can work effectively for the company, feel safe and take risks. Transparent communication, motivation, respect, and interest in each other and each other’s work can contribute to this. Recognition and Word of appreciation to your employees will work as wonders.

9.      Breakdown barriers between departments- abolish unhealthy competition.
By eliminating the boundaries between departments, cooperation and communication can be better. When all the department team member are focused, it becomes very easy for company to achieve their goal and target.   

10.  Eliminate slogans, exhortations and unrealistic targets.
The team follows culture of the company. It should be clear that it is the team effort at each stage which will result in quality product or services. Hence, Quality and production problems do not arise from the individual employee, but from the system itself.

11.  Eliminate arbitrary numerical targets
Rushing at workplace through work can cause errors in production or unsatisfied customer services. Every employee should be given enough necessary time to perform work well.

12.  Remove barriers that rob both daily workers as well as management staff of their right to pride in workmanship
Employees feel more satisfaction when they get a chance to execute their work well and professionally, without feeling the pressure of deadlines.

13.  Encourage education and self-development and
By encouraging employees to work for themselves and to seek for their higher studies and training as a self-evident part of their jobs, they are able to elevate themselves to a higher level.

14.  Demonstrate top management commitment.
Transformation is the work of everyone. Set forth concrete actions to implement and realize transformation and change throughout the organisation.

How can the 14 Business philosophy points of Deming be implemented?
The answer is simple- TRANSFORMATION.

What are the Seven Deadly Diseases of Management?
7 deadly diseases pointed out by Deming are-

1.      Lack of consistency of purpose
2.      Emphasis on short term profits
3.      Personal review system
4.      Mobility of management
5.      Running a company with visible figures
6.      Excessive medical cost
7.      Excessive liability cost

Two more were added later. They are-
8.      Excessive executive compensation
9.      An outdated intellectual property system.

Conclusion-
1.      One can use Deming 14 key principles for management for transforming business effectiveness. 
2.      One should get rid of 9 deadly disease of management for effective business.

References-



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About Me

Ms. Sushma Uttam Kanukale, working as Quality Manager and Medical Laboratory Technologist in Dubai.10+ years of professional experience. BSc. (Microbiology & Biochemistry), PG-Advanced MLT, PGDTQM, Internal Auditor for ISO 15189:2012, Coordinator, Implementer, Trainer, Author, Blogger, Passionate Healthcare Quality Proferssional. Strengths-Family, Smart work, self-motivation, dedication and learner. I am thankful to my family, friends and well-wishers in my life who has been supporting me for the maintenance and moderation of this website. Welcome to myqualitytools.blogspot.com. Enjoy reading!!