Deming Philosophy definitions and rules.
- 2. DR. WILLIAM EDWARDS DEMING ➢ Acknowledged American statistician, engineer, professor, author, lecturer and management consultant. ➢ His famous philosophy was first introduced by his own written book called “Out of the crisis”. ➢ Post world war 2, the fallen economy of Japan was mostly recovered by Deming Philosophy. ➢The philosophy was introduced within 1950-1960, named “Japanese post war economic miracle”. ➢ He is called the father of TQM (Total Quality Management). DR. William Edwards Deming Born: 14th October, 1900 Died: 20th December, 1993
- 3. DEMING’S PHILOSOPHY 1. Create constancy purpose for improving products and services. 2. Adopt the new philosophy. 3. Cease dependence on inspection to achieve quality. 4. End the practice of awarding business. 5. Improve constantly and forever every process for planning, production and service. 6. Institute training on the job. 7. Implement leadership. 8. Drive out fear. 9. Breaks down barriers between staff areas. 10. Eliminate slogans, exhortations and targets for the work force. 11. Eliminate numerical quotas for production and management for objectives. 12. Remove the barriers that rob pride and workmanship. 13. Implement education and self- improvement. 14. Include everyone in the company to accomplish the transformation.
- 4. CREATE CONSTANCY OF PURPOSE FOR IMPROVING PRODUCTS AND SERVICES. ❖ Plan for quality in the long term ❖ Don’t just do the same things,find better things to do. Rule # 1
- 5. ADOPT THE NEW PHILOSOPHY. • Embrace quality throughout the organization. • Create your quality vision and implement it. Rule # 2
- 6. CEASE DEPENDENCE ON INSPECTION TO ACHIEVE QUALITY. o Inspection are costly and unreliable – and they don’t improve quality, they merely find a lack of quality. Rule # 3
- 7. END THE PRACTICE OF AWARDING BUSINESS ON THE BASIS OF PRICE TAG ALONE. ▪ Look at suppliers as your partners in quality. Encourage them to spend time improving their own quality – they shouldn’t compete for your business based on price alone. Rule # 4
- 8. IMPROVE CONSTANTLY AND FOREVER EVERY PROCESS FOR PLANNING, PRODUCTION AND SERVICE. ✓ To improve quality and productivity, and thus constantly decrease costs. Rule # 5
- 9. INSTITUTE TRAINING ON THE JOB ➢ Build a foundation of common knowledge. ➢Allow workers to understand their roles in the“big plan”. Rule # 6
- 10. IMPLEMENT LEADERSHIP • Don’t apply supervise – provide support and resources so that each stuff member can do his or her best. Be a coach instead of a policeman. Rule # 7
- 11. DRIVE OUT FEAR o Allow people to perform at their best by ensuring that they’re not afraid to express ideas or concerns. o Make workers feel valued, and encourage them to look for better ways to do things. Rule # 8
- 12. BREAK DOWN BARRIERS BETWEEN STAFF AREAS. ▪ 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. Rule # 9
- 13. ELIMINATE SLOGANS, EXHORTATIONS AND TARGETS FOR THE WORKFORCE ❖ Let people know exactly what you want – don’t make them guess. ❖ Don’t let words and nice-sounding phrases replace effective leadership. Rule # 10
- 14. ELIMINATE NUMERICAL QUOTAS FOR THE WORKFORCE AND MANAGEMENT BY OBJECTIVES ❖ Look at how the process is carried out, not just numerical targets. ❖ Measure the process rather than the people behind the process. Rule # 11
- 15. REMOVE THE BARRIERS THAT ROB THE PRIDE AND WORKMANSHIP ❖ This means, inter alia, abolishment of the annual or merit rating and of management by objective. Rule # 12
- 16. IMPLEMENT EDUCATION AND SELF- IMPROVEMENT ❖ Improve the current skills of workers. ❖ Encourage people to learn new skills to prepare for future changes and challenges. Rule # 13
- 17. INCLUDE EVERYONE IN THE COMPANY TO ACCOMPLISH THE TRANSFORMATION • The transformation is everybody's job. • Improve your overall organization by having each person take a step toward quality. Rule # 14
- 18. DEMING CYCLE OR PDCA CYCLE Do Check Act Plan Plan: Plan is a Change to the process. Predict the effect this change will have and plan how the effects will be measured. Do: Implement the change on a small scale and measure the effects. Check: Study the results to learn what effect the change had. Act: Adopt the change as a permanent modification to the process or abandon it.
- 19. THE DEMING SYSTEM OF PROFOUND KNOWLEDGE Deming advocated that all managers need to have this, consisting of four parts ❖Appreciation of a System : Understanding the overall process of goods and services involving suppliers, producers and customers. ❖Knowledge of Variation : Range and causes of variation in quality. Use of statistical sampling in measurements. ❖Theory of Knowledge : Concepts explaining knowledge and the limits of what can be known. ❖Knowledge of Psychology : Concepts of human nature.
- 20. 7 DEADLY DISEASES 1. Lack of constancy of purpose 2. Emphasis on short-term profits 3. Evaluation by performance, merit rating or annual review of performance 4. Mobility of management 5. Running a company on visible figures alone 6. Excessive medical costs 7. Excessive costs of warranty, fuelled by lawyers who work for contingency fees.
- 21. DEMING CHAIN REACTION Improve Quality Costs decrease because of less rework and mistakes Productivity improves Capture market with better quality and lower price Stay in business and provide more jobs
- 22. DEMING PHILOSOPHY SYNOPSIS The whole Philosophy is summarized as follows : ▪ He taught that An organization can increase quality and simultaneously reduce costs by : ✓ Adopting Appropriate principles of management. ✓ Practice continual improvement. ✓ Think of manufacturing as a system not as bits and pieces. ▪ In the 1970s, Dr. Deming philosophy was summarized by some of his Japanese proponents with the following ‘A” versus‘B’ comparison: (A)When people and organization focus primarily on quality defined by the following ratio: Quality = ▪ However, when people and organizations focus primarily on costs tend to rise and quality declines over time