GROUP MEMBERS

• RUTURAJ MENGAR 09• VAISHNAVI INGLE 10• NIKHIL SHETTY 11• MITESHA RAHANE 12• VRUSHALI JOSHI 13• BHUVAN DAVE 14• ANKUR MUSALE 15 • SNIGDHA BANSODE 16

QUALITY

CUSTOMER SATISFACTION

PRODUCTIVITY

MARKET SHARE

PROFITS

PRICES

COSTS

Deming’s 14 points

Point 1: Create constancy of purpose.

o An organization must define its values, mission, and vision of the future to provide long-term direction for its management and employees.

o Businesses should not exist simply for profit; they are social entities whose basic purpose is to serve their customers and employees.

o Do you have clear goals for the organization communicated to all employees??????

Point 2: Learn the New Philosophy.

o Companies must take a customer-driven approach based on mutual cooperation between labor and management and a never-ending cycle of improvement.

o We want to develop long term beneficial relationships with our suppliers and customers.

Point 3: Cease dependence on mass inspection.

• Inspection - the principal means of quality control.

• Routine inspection acknowledges that defects are present, but does not add value to the product.

• Inspection should be used as an information-gathering tool for improvement, not as a means of “assuring” quality or blaming workers.

Point 4: End the practice of awarding business on price tag.

o Stop Making Decisions Purely on the Basis of Cost.

o The supplier and manufacturer must be considered as a macro organization.

o Deming urged businesses to establish long-term relationships with fewer suppliers, leading to loyalty and opportunities for mutual improvement.

Point 5: Constantly improve the systems.

o Improved design of goods and services comes from understanding customer needs and continual market surveys and other sources of feedback, and from understanding the manufacturing and service delivery process.

o Deming chain reaction: When quality improves, productivity improves and costs decrease.

o At all levels, everyone should be involved in continuous improvement activities every single day.

Point 6: Institute modern methods of training on the job

o Results in improvements in quality and productivity, adds to worker morale.

o Demonstrates to workers that the company is dedicated to helping them and investing in the future.

o If all employees are learning and growing every day, competition will be only a figment of our imagination.

Point 7: Institute modern methods of supervision and leadership

o The job of management is leadership, not supervision.o Supervision – simply overseeing and directing work.o Leadership – providing guidance to help employees do

their jobs with less effort.o The leaders select the music, set the tone and insure

that everyone is on board at every moment.

Point 8: Drive Out Fear

• Fear is manifested in many ways: fear of reprisal, fear of failure, fear of the unknown, fear of relinquishing control, and fear of change.

• Fear encourages short-term thinking.• Fear is a cultural issue for all organizations.• Ask your associates what they fear and then do

whatever is necessary to get rid of it.

Point 9: Break down barriers between departments

o Teamwork helps to break down barriers between departments and individuals.

o Barriers between functional areas occur occurs when managers fear they might lose power.

o Lack of cooperation leads to poor quality.o Find ways to open communications between

suppliers, customers and all employees.

Point 10: Eliminate slogans

o Causes of variation stemming from the design of the system are management’s problem, not the workers.

o Value is placed on doing and demonstrating.

11Eliminate numerical goals for the work force

• Many organizations manage by the numbers.• Goals are useful, but numerical goals set for

others without incorporating a method to reach the goal generate frustration and resentment.

• Management must understand the system and continually try to improve it, rather than focus on short-term goals.

12Encourage Education and Self-Improvement

• Continuing, broad education for self-improvement

• Organizations must invest in their people at all levels to ensure success in the long term

• Developing the worth of the individual is a powerful motivation method

Remove barriers to pride of workmanship

• WHAT DO YOU HAVE WITHOUT PRIDE OF WORKMANSHIP? JUST A JOB, TO GET SOME MONEY. THERE iS NOT MUCH JOY IN THAT

• REWARD FOR MERIT CAUSES STRIFE AND CONTENTION

Point 14: Take Action

• Create a structure in top management that will push every day on the above 13 points

Quotes

• Deming says quite bluntly that if the boss of every staff areap erceives (or indeed is told) that his objective is to maximize his department's profits then the company will fail.

The Deming System of Profound Knowledge

• Deming advocated that all managers need to have what he called a System of Profound Knowledge, consisting of four parts:

Appreciation of a system: understanding the overall processes involving suppliers, producers, and customers (or recipients) of goods and services (explained below);

Knowledge of variation: the range and causes of variation in quality, and use of statistical sampling in measurements;

Theory of knowledge: the concepts explaining knowledge and the limits of what can be known;

Knowledge of psychology: concepts of human nature.

System of Profound Knowledge

The Deming System of Profound Knowledge

• The individual, once transformed, will:

– Set an example;

– Be a good listener, but will not compromise;

– Continually teach other people; and

– Help people to pull away from their current practices and beliefs and move into the new philosophy without

a feeling of guilt about the past."

Plan-Do-Check-Act

Seven Deadly Diseases

• Lack of constancy• Emphasis on short-term profits Short-term

thinking• Personal review systems• Mobility of Management: Job-Hopping• Use of visible figures• Excessive Medical Costs• Excessive costs of liability

Obstacles

• Hope for instant pudding• The supposition that solving problems,

automation gadgets, and new machinery will transform industry

• Search for examples• Our problems are different• Obsolescence in schools• Poor teaching of statistical methods in industry

• Use of military standard 105D and other tables for acceptance

• Our quality control department takes care of all our problems of quality

• Our troubles lie entirely in the work-force• False starts• We installed quality control• The unmanned computer

• The supposition that it is only necessary to meet specifications

• The fallacy of zero defects• Inadequate testing of prototypes• Anyone that comes to try to help us must

understand all about our business

• The supposition that it is only necessary to meet specifications

• The fallacy of zero defects• Inadequate testing of prototypes• Anyone that comes to try to help us must

understand all about our business

Deming Prize

Award named in honor of W. Edwards Deming. There are three separate divisions for the award Deming application price, Deming price for individuals & Deming price for overseas companies. The award process is overseen by Deming Prize

Committee of the Union of Japanese Scientists and Engineers ( JUSE ), in Tokyo, Japan.

Deming Prize

The following 10 criteria are used for assessing the Deming prize:-

1. Company policy and planning

2. Organization and its management

3. QC Education

4. Collection, transmission, and utilization of information on quality

5. Analysis

6. Standardization

7. Control

8. Quality Assurance

9. Effects ( Results )

10. Future plans