Monday, September 30, 2013

Deming 14 Points

The transformation of the American industry can be attributed to the 14 points. There is more to it than solving small or large problems. Implementation by management indicates that the company wants to remain profitable, keep its employees and also provide protection for its investors. This particular business model was what top Japanese managers used to learn back in the 1950s and years after that.

Not only can these 14 points be utilized in both large and small businesses, but they can also be applied to service and industry oriented companies. They are linked to various divisions within a business organization.

The 14 Points

1 The ultimate plan is to improve all products and services, stay one step ahead of your competitors, stay in business and keep your employees happily employed.

2 Adapt to the new methods. The economy has changed tremendously. Businesses will have to be willing to change, take on new duties and provide strong leadership so that change takes place.

3 Realize that there is more to having quality products and services than just performing inspections. Find ways to make quality a main portion of all business practices and not just wait for quality inspections to point out the mistakes.

4 Understand that business decisions should be made based upon more things than just money. Try reducing the overall cost instead. Find a loyal and trustworthy supplier that you can use on a long term basis and dump all of the others.

5 Strive to continuously improve your business operation and productivity, which should help to decrease prices.

6 Provide on the job training for all employees.

7 Commit to leading the masses. (Take a look at Point 12 and also Ch 8). Management should make sure that both its employees and machines improve in production. Not only do production workers need better supervision, but so does management.

8 Do whatever it takes so that no one in the company works in fear, which will make the company operate better in the long run. (see Ch 3 for more info).

9 Make it easier for departments to communicate with each other by breaking down all barriers. Various departments much be able to work together and account for any problems that may put a damper on production.

10 Get rid of the tired and overused slogans when addressing employees about increasing production rates. This kind of fake promotion will do more than alienate employees because they cannot control the way that management has the system set up for operation. Do away with quotas. Use leadership as an alternative. Do away with management by objective. Don't rely on numbers to manage the company. Try leading as an alternative.

11 Eliminate everything that would take away from the pride that front line workers feel about their work. Supervisors must change and understand that good leadership is about quality and not just numeric goals.

12 Eliminate everything that makes it difficult for managers to be proud of their work accomplishments. This consists of eliminating management incentives that are tied to ratings. (refer to chap 3).

13 Create a program that will allow management to learn and improve.

14 See to it that everyone in the company makes the needed changes. All employees are expected to transform.