ASSIGNMENT 1

(WILLIAM EDWARD DEMING’S 14 POINTS)

NAME:

AHMAD NAZIM BIN AIMRAN

ABDUL AZIZ BIN AB.RAHMAN

WAN MOHAMAD ASYRAF BIN WAN AFTHANORHAN

william edward deming BornOctober 14, 1900

Sioux City, Iowa, USADiedDecember 20, 1993 (aged 93)Washington DC, USAFieldsStatisticianAlma materUniversity of Wyoming, University of ColoradoInfluencesWalter A. Shewhart

William Edwards Deming (October 14, 1900 – December 20, 1993) was an American statistician, professor, author, lecturer and consultant. He is perhaps best known for his work in Japan. There, from 1950 onward, he taught top management how to improve design (and thus service), product quality, testing and sales (the last through global markets) through various methods, including the application of statistical methods.

Deming made a significant contribution to Japan's later reputation for innovative high-quality products and its economic power. He is regarded as having had more impact upon Japanese manufacturing and business than any other individual not of Japanese heritage. Despite being considered something of a hero in Japan, he was only just beginning to win widespread recognition in the U.S. at the time of his death.

The purpose of this paper is to provide a brief biography of Dr. W. Edwards

Deming. Deming was born in 1900 and died in 1993. Almost up to his death he

was unbelievably active in promoting quality. He never established an “institute”

or school like other quality gurus but, for the most part, was in the private consulting

business working out of Washington, D.C. He has probably had more

influence on American business than any other person except, perhaps, Fredrick

Taylor. Fortunately, much of what Deming taught overturned the “unthinking

worker” approach of Taylor. What follows is a brief look at the life of this remarkable

person followed by his main teachings and a profile of his personality.

1. Create constancy of purpose towards improvement of product and service,

with the aim to become competitive, stay in business, and to provide jobs. Explanation: The stress here is on "constancy of purpose." Organizations that

are not constant will flip-flop from management fad to management fad. Example: A company is to provide for long range needs rather than only short

term profitability, with a plan 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.

Explanation: Adopting a philosophy doesn't mean it is simply given lip service. It means incorporating it into an organization's life.

Example: Adopt the new philosophy. 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. Transformation of Western management style is necessary to halt the continued decline of business and industry.

 

3. Cease dependence on inspection (checking for mistakes) to

achieve quality. Eliminate the need for inspection on a mass basis by creating quality into the product in the first place.

Explanation: inspection is used because experience has indicated a high error rate for the underlying processes. If the error rate is reduced sufficiently, it will no longer be necessary to inspect every action. 

Example: For manufacturers, inspection is clear. It takes place at the end of the process and is used to insure that a faulty product isn't shipped to a customer. The only reason that inspection takes place is that enough defects have been discovered in the past so that processes can't be trusted. 

 

4. End the practice of awarding business on the basis of price tag.

Instead minimize total cost. Move towards a single supplier for any one item, on a long term relationship of loyalty and trust.

Explanation: The concept of "total costs" is a simple one to understand, yet for some reason typically ignored. Time is worth money. Time spent standing in line, time spent waiting for a product to arrive, and time spent shopping for the best deal are a waste. The costs of this lost time needs to be added to the price tag in order to determine the true cost of a product. On top of this, there are costs for repairs and for making-do with inferior products that need to be added to the price tag before making purchasing decisions. 

Example: Buying cheap from a supplier who won't work to improve a product is really more expensive than paying a little extra but getting a supplier who commits to continuous improvement. 

When total cost is taken into account, buyers should start developing long term supplier relationships and give up the notion of always looking for the lowest price. 

5. Improve constantly and forever the system of production and

service, to improve quality and productivity, and thus constantly decrease costs. 

Explanation: This point rejects the notion that things are ever "good enough." It is a call for continuous improvement. By implication, it is based on the assumption that since perfection is impossible, there will always be room to improve. 

Example: A boss asking his clerk to finish up work within an hour, .The boss was a crisis manager who seemed to believe that if the clerk just tried hard enough, he could do anything. The boss supposed to support clerk’s efforts in figuring out how to improve the underlying processes so that in the next time, the clerk is able to finish up his work within an hour.

6. Institute training on the job. 

Explanation: This point refers to the training of new employees and the training of management, who too often don't understand the processes they are supposed to be managing.

Example: Too frequently, people are shown how to do something, once, and then let loose. Training is often not standardized meaning no two employees are taught in the same manner or even in the same details. This point should lead to develop of training manuals and standardized methods for training personnel. 

7. Institute leadership (see point 12.) The aim of leadership should be

to help people and machines and gadgets to do a better job. Leadership of management is in need of overhaul, as well as leadership of production workers. 

Explanation: Deming called for supervisors to stop being managers and start being leaders. This is one of the more difficult concepts for supervisors to master. Leaders have fundamentally different roles than managers. Leaders are coaches rather than cops. Coaches develop people. Cops enforce the rules. Coaches attempt to help people live up to their full potential. Cops attempt to catch people doing things wrong. 

Example: supervisors with a traditional outlook ask people to "keep quiet" about problems for the sake of the team. These managers resolve conflict either through coercion or compromise. A leader on the other hand gets conflict out into the open so that differences can be addressed and win-win solutions can be pursued in place of win-lose hierarchical decisions.  

8. Drive out fear so that everyone may work effectively for the

company. 

Explanation: Fear will cause people to play defense. It will inhibit them from sharing with management a real view of the world. It will make them unwilling to risk new ideas. 

Example: Continuous improvement requires that good data be collected. Without accurate data, how can anyone tell if things are getting better or worse? If workers are afraid of the consequences of data, however, they won't allow accurate data to be reported. 

9. Break down barriers between departments. People in

research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. 

Explanation: Processes cut across department lines. For this reason, no single department or individual will understand fully any process. In order to start improving these processes, teams must be organized that include members from across the organization. 

Example: Evaluation systems that treat department performance separately will encourage departments to stop thinking globally in terms of what is best for the organization as a whole and instead focus on making their part operate "best" even though that may injure some other department. 

10. Eliminate slogans, exhortations, and targets for the work

force that ask for zero defects and new levels of productivity. 

Explanation: Eliminate the use of slogans, posters and exhortations for the work force, demanding Zero Defects and new levels of productivity, without providing methods. Such exhortations only create adversarial relationships; 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.

Example: Slogans like "Produce zero defects" and "Do it right the first time" are quite common. But Deming stressed, they are also quite meaningless. At best, they are ignored. At worst, they infuriate people who understand the system causes errors not workers. 

11 a. Eliminate work standards (quotas) on the factory floor.

Substitute leadership. 

b. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership. 

Explanation (a): Quotas and numerical objectives that must be met will cause people to cut corners in order to save their jobs. Instead of having pride in their work, they will instead resent having to short-change customers in order to keep numbers high enough. 

Explanation (b): Objectives like work quotas and numerical goals are very precise. The underlying theory is that people need a clear standard by which they are being measured. The problem with these objectives is that they push results at the expense of process. In order to get the necessary results on paper, managers will have incentive to distort information or distort the system. In the end, MBO leads to deteriorating long term results rather than improving ones. 

12 a. 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. 

Explanation (a): Deming called pride in workmanship, a "birthright" of workers. He rejected the old Marxist notion that work is alienating and should be perceived as a sacrifice. Deming claimed that it is the sense of having helped other people that is the single most important motivator in the workplace. Money, time off, and all the other traditional "carrots" that management offers are pale in comparison to the sense of pride and accomplishment that comes from feeling like you made the world a better place in which to live. 

Example (a): Supervisors should be asking their people, "What keeps you from doing a better job?" and then acting on the answers they receive. 

b. Remove barriers that rob people in management and in engineering of their right to pride in workmanship. This means inter alia, abolishment of the annual or merit rating and of management by objective, management by the numbers. 

  Explanation (b): The annual merit rating is a cursed function in most organizations.

Usually it is tied to pay increases. Unfortunately, most supervisors have to guess as to who are the "good" workers and who are the "bad." Frequently they act on their impressions from the most recent three months. 

Example (b): If workers want to know how they are doing, then they shouldn't have to ask their bosses. They should be getting feedback from internal customers on a timely basis. Instead of feedback once a year, feedback should be weekly or at most monthly. There shouldn't be anyone in the organization who doesn't know how well they are doing at any given time. 

13. Institute a vigorous program of education and self-improvement. 

Explanation: Institute a vigorous program of education, and encourage self improvement for everyone. What an organization needs is not just good people; it needs people that are improving with education. Advances in competitive position will have their roots in knowledge.

14. Put everybody in the company to work to accomplish the

transformation. The transformation is everybody's job

.

Dr. Deming wrote and spoke of Seven Deadly Diseases that infect an organization’s culture and prohibit it from truly succeeding in achieving quality for the customer.

Lack of constancy of purpose: You must remain focused on doing the right things because they are the right things to do for your customer and to achieve quality.

Emphasis on short-term profits: Cutting costs can bring short-term profits and are easy to achieve. But cutting costs can only go on for so long, before you have cut to the bone and have nothing left to cut.

Evaluation by performance, merit rating, or annual review of performance: Management by objectives ends up focusing on the objectives and not on the management. It is about “hitting the numbers” and not improvement.

Mobility of management: When management changes jobs constantly there is no continuity or constancy of purpose. Each time a new leader comes in, the efforts of quality go back to square one.

Running a company on visible figures alone: Everything that can be counted does not count, everything that counts cannot be counted—look for hidden information

Excessive medical costs: Ensuring that workers are healthy to help deliver quality helps control costs.

Excessive costs of liability: Lawyers are part of the problem not part of the solution according to Deming

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