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-
