Deming's 14 Points for Management: Framework for Success
Author(s): Henry R. Neave
Reviewed work(s):
Source: Journal of the Royal Statistical Society. Series D (The
Statistician), Vol. 36, No. 5,
Special Issue: Industry, Quality and Statistics (1987), pp. 561-
570
Published by: Blackwell Publishing for the Royal Statistical
Society
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The Statistician (1987) 36, pp. 561-570 561
Deming's 14 points for management: framework for success
HENRY R. NEAVE
Department of Mathematics, University of Nottingham; Director
of Research,
The Deming Association, UK
Abstract. Dr W. Edwards Deming modestly describes himself as
a 'consultant in statistical studies'.
Others have called him the father of the third wave of the
Industrial Revolution. It is now becoming
widely accepted that the dramatic turnround in Japan's
industrial fortunes dates from Dr Deming's
visit, at the invitation of JUSE, in mid-1950. His philosophy
combines widespread use of statistical
ideas and methods throughout organisations with an approach to
management which is, in most part,
diametrically opposed to traditional and current practice in the
Western world. The management
approach creates an environment where the importance of
statistical practice is recognised to an
otherwise unprecedented extent. This approach is not normally
taught in management and business
schools, and so the statistical consultant, needs to become
familiar with, and to encourage the adoption
of, the management philosophy as much as the statistical
aspects. In this paper, a summary of Dr
Deming's crucial 14 Points for Management is presented,
abstracted and adapted from a number of
versions which have appeared over the years.
Introduction
William Edwards Deming was born in Sioux City in the state of
Iowa on 14 October
1900. He must be one of the busiest 87-year-olds around-
certainly the busiest 87-
year-old statistical consultant! Indeed in this his ninth decade
he is attracting greater
audiences and having a more substantial direct effect on the
Western world, including
especially his home country of America, than he has ever
previously achieved. It is
highly unfortunate for all of us in this part of the world that it
has taken so long; for
others have been listening to him for a long, long while and
have reaped incalculable
rewards as the consequence. Only in the 1980s is it becoming
widely realised that Dr
W. Edwards Deming has been having a profound influence on
the industrial history of
the world for more than the last third of a century. Had he been
listened to earlier,
then that history could have turned out very differently. William
E. Conway, who in
1979 appears to have been the first leading American
businessman to realise the
importance of Deming's work, refers to him as no less than ' the
Father of the Third
Wave of the Industrial Revolution'. Even those of you who have
not heard of Deming
before today will not take long to guess which is the country
that has been listening to
him, and implementing his methods, the longest-since as long
ago as 1950. It is, of
course, Japan. Industrialists and others have been searching for
the 'Japanese secret'
for some years now. Light is beginning to dawn: the Japanese
secret is, of all things, an
American statistician to whom the Americans would not listen.
Let me run through a very brief history of this remarkable man.
He obtained his
doctorate at Yale in mathematical physics in 1928, at which
time he joined the United
States Department of Agriculture as a mathematical physicist,
remaining in that
position until 1939. As you will all be aware, a lot happened in
statistics during those
11 years-not least as regards agricultural applications. So it is
not surprising that
Deming's interest in probability and statistics, which he had
already met during his
time at Yale, flourished; and in 1936 he came to London to
study under Fisher at
University College. But, in spite of his keen interest in the
mainstream developments
of mathematical statistics at this time, he found even greater
inspiration in the work of
562 Henry R. Neave
Walter Shewhart, the originator of the concepts of statistical
control of processes and
of the related technical tool of the control chart. The ideas of
statistical control, as
presented by Shewhart, are of course not wholly distinct from
the better-known
developments in experimental design of the time, in that
Shewhart analysis of
manufacturing processes was also concerned with splitting
variation into components.
But his components of variation were of a very particular kind-
those due to what he
called assignable and unassignable causes, and which Deming
calls special and
common causes respectively. The crucial relevance of this kind
of analysis of processes
to their reliability, consistency and stability and to any serious
quality-improvement
efforts is one of the things that Western industry is learning
rather late in the day. A
fundamental advance made by Deming in the 1930s was the
realisation that this kind
of analysis is just as appropriate and vital to many non-
manufacturing processes and
systems: to administration, marketing, sales, service operations,
training, and many
others.
I shall not go any further into these statistical aspects of
Deming's work. Virtually
all of the rest of this presentation needs to be spent on what
Deming rightly regards as
of even greater importance, and on which he concentrates
increasingly as the years go
by-and that is his philosophy of management. But let me finish
the short history first.
In 1939 he was invited into the Bureau of the Census as Head
Mathematician and
Advisor in Sampling. Due to his influence and training in the
use of sampling methods
and statistical control, many of the processes in the 1940
Census experienced some-
thing like a six-fold productivity increase compared with
previously, several hundreds
of thousands of dollars were saved, and the census results were
published much sooner
than usual. During the time of American involvement in World
War II, Deming was
involved in statistical quality control training of large numbers
of people involved in
the war effort. This programme had an enormously beneficial
effect on the quality and
volume of what was being produced, with spectacular
reductions in scrap and rework.
After the war, Deming played a leading role in the formation of
the ASQC. But as
far as industry was concerned, American manufacturers found
ready post-war markets
for virtually anything they produced, and the wartime life-or-
death urgency for
improving quality all but disappeared in favour of sales and
other areas more closely
concerned with short-term profits. Tragically, as you will well
realise, this situation
still sounds pretty familiar 40 years later.
Deming first visited Japan in 1946 under the auspices of the
Economic and
Scientific Section of the US Department of War, and returned
there in 1948. Late in
1949 he was invited back to teach statistical methods for
industry by Ken-ichi
Koyanagi, head of the Union of Japanese Scientists and
Engineers. He went in June
1950. He lectured to vast numbers of students-and to top
industrialists. They
listened, they learned, they 'absorbed' (as Dr Deming has said)
his ideas. And they put
them into practice. The rest, as they say, is history.
So what went wrong in America? Why, after such a promising
start, did Deming find
his message falling on deaf industrial ears? He freely admits his
mistake. He concen-
trated his attention on the engineers, the administrators, the
shop-floor-the 'people
who did the work'. He did not spend enough time with
management, particularly
senior management. Perhaps he presumed that the value of what
he was doing would
be obvious to the people at the top. Not so. I guess many people
here have made the
same kind of mistake-I know I have. So, when Deming went to
Japan, he did not
only talk about statistics: he also talked about management. He
talked about the
environment that management must create in order that real
progress can be made.
He talked of the philosophy of a continual, relentless, perpetual
search for improve-
ment, not only in end-products or services, but in all aspects
and all sections of an
organisation's work and activities, i.e. total quality control. He
talked of the vital
Deming's 14 points for management 563
necessity of teamwork: teamwork between managers and the
people for whom they are
responsible, teamwork between the different sections and
departments within the
organisation, teamwork between an organisation and its
suppliers. He talked of the
necessity of learning what one's customers really want and
need; to quote him: "the
customer is the most important part of the production line". And
he talked of people.
"An organisation's most important asset," he said, and still says,
"is its people." How
different from a management, or indeed political, attitude in
which people so often
seem to be just regarded as too big a contribution to the
expenditure side of a profit-
and-loss account.
Not much of Deming's philosophy is heard of in the business
and management
schools. I guess that they are too steeped in the traditions of the
old style of
management which has slowly but surely lost the battle against
the new style without
even realising that a battle was being fought. That is why others
must learn it and
teach it. Deming claims that statisticians are particularly
suitable for this job, because
of their training in looking at things objectively, using facts,
data, and all kinds of
information, in a logical and unprejudiced fashion. That opinion
is not universally
accepted! Not all statisticians have the abilities and talents of
Dr Deming, and I am
pretty sure that I know a lot of statisticians who would be quite
hopeless at tackling
this kind of work. On the other hand, I do believe that the right
kind of statistician,
who is concerned with the real 'real world', as opposed to a
more artificial 'real world'
created to provide a stage for one's pet theories, can be ideal for
this purpose. The
Deming approach combines a "paradigm shift in management
capability", as Bill
Conway calls it, with the widespread, indeed universal, use of
statistical thinking and
methods throughout an organisation. And although the
statistical content is somewhat
different from what most of us teach or have been taught, the
management side is
totally different from the way that management people have
been trained. So, on
balance, that does seem to leave the statisticians with a little
less to learn. But there is
still plenty to learn, believe me. Without this combination of
these two main aspects of
Deming's teachings, the tremendous potential gains just will not
be realised.
In order to help people understand and implement his way of
thinking, Deming has
produced a list of 14 Points for Management. They are based on
what he told the
Japanese in 1950. They are not written in tablets of stone;
indeed he still quite
frequently makes minor adjustments to some of them, reflecting
the way that he sees
the world changing and the changing needs of the people with
whom he works. The list
that you have before you is derived from five different versions
that I have seen; the
words are virtually all Deming's, but I have put them down in a
format which I have
found helpful to clarify some of the big issues involved.
If this is the first time that you have seen Deming's 14 Points,
they may well appear
an odd mixture to you; they certainly did to me when I first
encountered them some 6
years ago. And to attempt to cover them in a short talk like this
is rather like a vicar
preaching a single sermon on the whole Bible. All I can hope to
do is just make you
aware of them and to stimulate sufficient interest in some of
you that you will want to
read more and think more about them. You will then be starting
out on a route which
could change your life-and that's not such an extravagant claim
as you might
imagine, at least not going by the number of Americans, both
statisticians and
management, whom I have heard using just those kinds of
words.
Here then are the 14 Points. I shall follow each one with a few
comments made as if
you were a management team hearing them for the first time.
564 Henry R. Neave
1 Constancy of purpose
Create constancy of purpose for continual improvement of
products and
service,
... allocating resources to provide for long-range needs rather
than short-
term profitability, with a plan to become competitive, to stay in
business, and
to provide jobs.
It is no good accepting Deming's approach in principle, and then
forgetting it in
practice. What has often happened is that managements have
indicated their agree-
ment, but have then allowed virtually anything else (i.e. all the
'old problems') to take
priority. There must always be a consistent, inexorable, never -
ending, widespread
push for continual improvement in everything that an
organisation does. People have
become so used to new management gimmicks appearing every
few weeks, or even
days, which usually disappear as quickly as they come. It will
take time, with such a
history, for a proper belief to take hold that management is
serious this time-and of
course that will only happen if you really are. This can only be
accomplished by you
getting a deep understanding of the approach, and then setting a
good example by your
constancy of purpose constantly filtering down the organisation
to feed and nurture a
constancy of purpose throughout.
2 The new philosophy
Adopt the new philosophy for economic stability. 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. Trans-
formation of Western management style is necessary to halt the
continued
decline of industry.
It is a whole new philosophy. It is not merely just a few
guidelines, ideas and rules
which can be tacked on to the end of whatever is done now. It
involves a thorough,
radical rethink-the most radical that you could ever realistically
imagine. It may well
involve a complete reversal of attitude towards many strategies
and modes of behav-
iour to which both you, as management, and your workforce
have become accustomed
over the years. Quite simply, without the general realisation
that we are talking about
this fundamental a change, then it will not happen. In any case,
it will not happen
overnight. There must be a constant, consistent movement in the
right direction-
every day a company must move closer to the philosophy of
ever-improving quality
of all systems, processes and activities under its direction.
3 Cease dependence on inspection
Eliminate the need for mass inspection as a way to achieve
quality
... by building quality into the product in the first place.
Require statistical
evidence of built-in quality in both manufacturing and
purchasing functions.
Some peoples' initial reaction to this instruction from Dr
Deming may well be to
laugh. If so, that only demonstrates how terribly far away their
standards are from
those which he demands-and which are being achieved by those
who have accepted
his message. We have become so used to poor quality in
supplies, systems, service and
expectations, and to such a high level of mistakes, errors and
defects, that we may
have come to accept as a 'fact of life' that this is the way things
are and must forever
Deming's 14 points for management 565
be. But an undeniable result of reaching consistent high
standards (such consistency
being ensured by statistical evidence and methods of process
control) is that mass
inspection indeed becomes no longer necessary. Tremendous
cost-savings are then
available, both by eradication of the expensive, non-productive
activity of inspection,
and by the security of working with reliable, dependable,
consistent high-quality
materials and processes. And think of what the resulting high-
quality, competitive
end-products will then do for your company's reputation both
with existing and
potential customers.
4 End 'lowest tender' contracts
End the practice of awarding business solely on the basis of
price tag.
... Instead, require meaningful measures of quality along with
price.
Reduce the number of suppliers for the same item by
eliminating those that
do not qualify with statistical evidence of quality. The aim is to
minimise
total cost, not merely initial cost. Purchasing managers have a
new job, and
must learn it.
This is very much connected with Point 3. The necessity for
inspection of the input
from our suppliers can only be ended if we can trust those
suppliers to have the same
high standards as ourselves. This implies a positive, co-
operative, long-running rela-
tionship with a reduced number of chosen suppliers who can and
will fulfil our needs.
The savings obtainable from such a relationship with reliable
suppliers, and the
trustworthy materials and service resulting, outstrips to a
dramatic degree the 'savings'
attainable by merely going for the lowest price. The costs
incurred within our
operation, and possibly subsequent to it, as a result of using
cheap, low-quality input,
are likely to be enormous, quite possibly incalculable. At best,
there will be substantial
rework necessary, delays, and irregular throughput within our
operation; at worst, the
bad material may slip through our operation, leaving our
customer to find it out. And,
if our customer suffers, be sure that he will make us suffer as a
consequence, and
rightly so.
5 Continually seek out problems
Search continually for problems, to constantly and forever
improve the
systems of production and service and every other activity in
the company,
... to improve quality and productivity and thus to constantly
decrease
costs. It is the management's job to work continually on the
system (design,
incoming materials, maintenance, improvement of machines,
training, super-
vision, retraining).
There is at present far too great a tendency to 'hope for the
best', to 'turn a blind eye',
and to 'let things ride' regarding potential problems-only paying
attention to them
when they become obviously serious and may well have already
caused our company
some considerable harm. Far better to seek them out early, to
'nip them in the bud',
before they cause real trouble (this is the particular task of the
monitoring phase of
statistical control schemes). This is a basic difference between
crisis management and
good management. Never be content; even when some problems
have been sorted out,
and some improvement has thereby been obtained, it is in the
nature of things that
further improvement is always possible, but it will only be
achieved if further
problems are identified and solved. And if you don't find out
problems, be sure they
will find you out.
566 Henry R. Neave
6 Institute training on the job
Institute modern methods of training on and for the job,
... including management, to make better use of all employees.
How can anybody, staff or management, do their job properly if
they do not know
what their job is? Training is short-sightedly regarded as 'non-
productive' by many
managements, and is thus one of the first things to go when
finances are tight. How
wrong! Think how little proper training costs, as a proportion of
the total costs
involved with an employee over the months and years he may be
working for your
company. It is minute in comparison to the potential advantage
to the company of
that worker understanding his job, so that he can do it properly
and to the company's
best advantage. And this doesn't even include the unquantifiable
gain to the company
of that worker gaining satisfaction and pleasure from doing a
good job-and thus
wanting to continue so doing and improving yet further.
7 Institute supervision
Institute modern methods of supervision (leadership), focusing
on helping
people and machines to do a better job.
... The responsibility of supervisors must be changed from sheer
numbers
to quality. Improvement of quality will automatically improve
productivity.
Management must ensure that immediate action is taken on
reports of
inherited defects, maintenance requirements, poor tools, fuzzy
operational
definitions, and other conditions detrimental to quality.
If a foreman or supervisor has to spend his time chasing the
people for whom he is
responsible, and browbeating them to 'do a proper job' or to
keep up to schedule, that
in itself is a clear comment on the low standard of the operation
concerned. Workers
must be given interest in the work that they are being asked to
do, and be helped to do
it well. And these are complementary activities-if they are
interested then they will
want to do it well and accept help to enable that; and if it is
made possible for them to
do it well then their interest in it will increase-and so the cycle
continues. Far too
often, one sees the opposite kind of cycle: the vicious circle.
Conditions force a worker
to do a bad job; so he loses some of the interest that he has,
which results in him doing
a yet poorer job, which lessens his interest still further, and so
on.
8 Drive out fear
Encourage effective two-way communication and other means to
drive out
fear throughout the organisation,
... so that everybody may work effectively and more
productively for the
company.
Anybody working in fear of his superiors cannot be working in
true co-operation with
those superiors. The best that can be hoped for in such
circumstances is to get people
working in resentful acquiescence-maybe that is all that some
superiors desire.
However, this will never result in much progress. Successful
joint working relation-
ships achieve so much more than isolated individual efforts-but
will not do so unless
nourished by mutual trust, confidence and respect. Those
working in fear try to
withdraw from the attention of those of whom they are afraid.
And how can you
expect to get anything of the true potential from people whose
main aim is not to be
Deming's 14 points for management 567
noticed? Point 9 will concern the breaking down of barriers
between departments. It is
just as important to break down barriers between staff and their
supervisors, between
those supervisors and middle management, between middle and
senior management,
and between senior management and the chief executive officer.
But fear will keep
those barriers firmly in position.
9 Break down barriers
Break down barriers between departments.
... People in different areas such as research, design, sales,
administration,
and production must work in teams to tackle problems that may
be encoun-
tered with products or service.
Different sections of an organisation have their own interests,
their own traditions,
their own values, their own 'sacred cows', often, in effect, their
own language. So,
unless they have extremely good cause, they will automatically
fight against their
fellow-employees with whose interests they appear to be in
conflict. The company will
only make headway if its employees start fighting the
competition rather than
themselves. Frequently a minor change in one department can
afford considerable
help to another-often with the resulting desire to 'return the
compliment'. But such
will only happen if the departments concerned have real
understanding of each others'
difficulties. The common language of elementary statistical
methods and charting
techniques, which are of course powerful and useful tools in
their own right, is
extremely effective in enabling people to gain an understanding
of each others' jobs
and problems, and how they may be helped.
10 Eliminate exhortations
Eliminate the use of slogans, posters, and exhortations
... for the workforce, demanding zero defects and new levels of
productiv-
ity, 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
workforce.
'Do it right the first time'; 'Zero defects is our aim'; 'Increase
output by x%'; and
countless others. How can anybody do it right the first time if
he is given neither the
time nor the materials or equipment to make it feasible? How
can he produce zero
defects if what he gets to work on is already defective? And his
already-low job
satisfaction will drop even more if he is exhorted to produce
greater quantities which
he knows will, under the prevailing detrimental conditions,
lower the standards of
what he is producing still further, however hard he tries to
prevent it. Make reasonable
requests, and provide what is necessary for them to be met, and
you may well get
better than you ask for. Make unreasonable requests, and you
will get even less than
you would have got otherwise from an increasingly-demoralised
worker.
11 Eliminate targets
Eliminate work standards that prescribe numerical quotas and
goals (targets).
... Substitute aids and helpful supervision; use statistical
methods for
continual improvement of quality and productivity.
Targets can never be right except very occasionally by accident.
If a target is lower
568 Henry R. Neave
than what turns out to be reasonably achievable, the automatic
reaction is for workers
to take a rest once that target has been reached-and why
shouldn't they? If the target
is unreasonable, then either it will not be attained (resulting in
criticism, loss of bonus,
demoralisation-all at no fault of the workforce), or it will be
attained through cutting
corners, lowering standards, ignoring safety requirements, etc.:
the right numbers may
be attainable, but at what cost in quality, with all the
ramifications that may have
further down the line or, worse still, at the customer's? In either
case, workers' respect
for their management's ability to manage will justifiably take a
further dive.
12 Permit pride of workmanship
Remove the barriers that rob hourly workers, and people in
management, of
their right to pride of workmanship.
... This implies, inter alia, abolition of the annual merit rating
(appraisal of
performance), and of management by objective. Again, the
responsibility of
supervisors must be changed from sheer numbers to quality.
So many barriers to pride of workmanship exist, several of
which have been touched
on already. How can a worker be proud of what he is doing if he
is being forced to
produce shoddy goods, because of poor materials, poor tools,
unreasonable quantities
of throughput being demanded? How can he be proud of what he
is doing if he can see
ways of improvement but knows it is pointless to try to discuss
them with his
superiors-so he reluctantly carries on in the same old way which
he knows to be a
bad way? How can a manager be proud of what he does if the
effect is to reduce
quality and make his workers even less happy in their work?
How can he be proud of
what he does if there is no time or encouragement to try to
improve morale and
productivity by instigating improvements to processes and
methods in order to raise
quality? The value of what a worker, of whatever rank, produces
will be almost
immeasurably higher if he is enabled and encouraged to take
pride in his work,
compared with what he does if he is merely serving time.
13 Institute education
Institute a vigorous program of education and re-training.
... New skills are required to keep up with changes in materials,
methods,
product design, machinery, techniques, and service.
Things change fast in the modern world. There is, of course,
little point in change for
change's sake but, without being aware of change, how can we
decide? Without being
aware of change, and the potential benefits that it might bring,
how can we, or the
company, have any chance of benefitting from it? How can
things improve without
change? And how can change occur without knowledge of it?
The use of elementary
statistical methods throughout an organisation yields untold
benefits by helping both
in the identification and subsequently the solution of problems,
by predicting the
effects of change, and by examining those effects once change
has been made, by
generating individual interest, and by facilitating
communication with other depart-
ments and with superiors or those under our supervision. So all
members of the
company should be trained in these methods and helped in their
use of them. If a job
or position in the company becomes outmoded, the person
holding that position needs
Deming's 14 points for management 569
retraining for more valuable work. Use of the common
statistical language will help
him to comprehend his new tasks more easily and completely.
14 Top management's commitment
Clearly define top management's permanent commitment to
ever-improving
quality and productivity,
... and its obligation to implement all of these principles. Create
a struc-
ture in top management that will push every day on the
preceding 13 points,
in order to accomplish transformation.
It all begins and can end here. Without full top management
belief, understanding and
commitment, progress (if any) will be sporadic and temporary at
best. Top manage-
ment must lead the whole organisation in the drive for ever -
improving quality of every
activity in the company by providing proper encouragement,
training, facilities,
time-and by practising what they preach. In particular, they
must accept that they
also have much to learn, and be prepared to learn it. What, for
example, is the point of
training everybody from middle management downwards in
statistical charting tech-
niques and process control if top management cannot, or rather
will not, understand
the reports, results, analyses, and recommendations emanating
from the use of these
methods? Of course, top management are very busy people. And
that is why it is so
necessary to set up a positive and permanent structure within
management with the
sole task of encouraging and facilitating continuing and
continual progress in the new
direction. It is hard work-Deming has never claimed otherwise-
and the need for
'commitment' and faith will never have been greater. But the
potential rewards, and
degree of success, for you and your company are huge.
As I said earlier, to those of you who are hearing of Deming's
management
philosophy for the first time, this must have seemed quite a
mixture. Probably some of
the Points have seemed obvious, others questionable, and some
downright impossible.
It is also difficult at first sight to see how they all hang together
in a coordinated
framework. But they do. Perhaps the best attempt that I have
seen to present the 14
Points as a relatively brief composite statement is in the Quality
Philosophy of the
Pontiac Division of General Motors. I will finish by quoting
that summary to you:
Pontiac Motor Division commits itself to quality as our number
one business
objective. We are dedicated to operating under Dr Deming's
philosophy of
management, including extensive application of statistical
techniques and
team-building efforts. We intend to be innovative and to
allocate resources to
fulfil the long-range needs of the customer and the company.
We will
institute better job training, including the help of statistical
methods, and
will 'do it right the first time', eliminating scrap and waste. We
will provide a
vigorous program for retraining people in new skills, to keep up
with changes
in materials, methods, design of products, and machinery, and
in the use of
statistical techniques to identify areas of improvement. We wil l
reduce fear
by encouraging open two-way communication. We renounce the
old philoso-
phy of accepting defective workmanship in everything we do-
paperwork,
processes, and hardware. We must eliminate the dependence on
mass inspec-
tion for quality. We will maximize the use of statistical
knowledge and talent
in both our division and our suppliers. We will demand and
expect suppliers
to use statistical process control to ensure quality. Where
possible, we will
single-source purchased items with the supplier who
demonstrates the highest
level of quality through statistical means.
570 Henry R. Neave
Recommended Reading
DEMING, W. EDWARDS (1986) Out of the Crisis
(Massachusetts Institute of Technology, Center for
Advanced Engineering Study, Cambridge, MA 02139, USA).
SCHERKENBACH, WILLIAM W. (1986) The Deming Route to
Quality and Productivity: road maps and
roadblocks (CEEP Press, George Washington University,
Washington DC 20052 USA).
MANN, NANCY R. (1985) The Keys to Excellence: the story of
the Deming Philosophy (Prestwick Books,
2106 Wiltshire Boulevard, Santa Monica, CA 90403, USA).
These books are all obtainable through:
The George Washington University Continuing Engineering
Education Program
18 St George's Street
Hanover Square
Mayfair
London W1R 9DE
Article Contentsp. 561p. 562p. 563p. 564p. 565p. 566p. 567p.
568p. 569p. 570Issue Table of ContentsJournal of the Royal
Statistical Society. Series D (The Statistician), Vol. 36, No. 5,
Special Issue: Industry, Quality and Statistics (1987), pp. 437-
597Volume Information [pp. 593-597]Front Matter [pp. 437-
438]SQC Is Not Enough [pp. 439-464]Multivariate Acceptance
Sampling-Some Applications to Defence Procurement [pp. 465-
478]Industry, Quality and Statistics [pp. 479-485]Statisticians-
Keep It Simple [pp. 487-492]An Approach to Software Quality
Assurance Training [pp. 493-498]Reliability Surveys and Panels
[pp. 499-511]The Measurement of Consumer Acceptability [pp.
513-523]Trading Standards: An Aid to Quality [pp. 525-
530]Sampling for Clinical Report Auditing [pp. 531-
539]Teaching Basic Statistical Quality Control to the Shop-
Floor [pp. 541-553]Statistics in Industry: A Failure of
Communication [pp. 555-560]Deming's 14 Points for
Management: Framework for Success [pp. 561-570]Selecting
Out of Control Variables With the $T^2$ Multivariate Quality
Control Procedure [pp. 571-581]The Open Tech Project in
Quality Assurance [pp. 583-587]Computer Aids to Data Quality
Control [pp. 589-592]Back Matter
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Demings 14 Points for Management Framework for SuccessAuth

  • 1. Deming's 14 Points for Management: Framework for Success Author(s): Henry R. Neave Reviewed work(s): Source: Journal of the Royal Statistical Society. Series D (The Statistician), Vol. 36, No. 5, Special Issue: Industry, Quality and Statistics (1987), pp. 561- 570 Published by: Blackwell Publishing for the Royal Statistical Society Stable URL: http://www.jstor.org/stable/2348667 . Accessed: 31/01/2012 18:20 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected] Blackwell Publishing and Royal Statistical Society are collaborating with JSTOR to digitize, preserve and extend access to Journal of the Royal Statistical Society. Series D (The Statistician). http://www.jstor.org http://www.jstor.org/action/showPublisher?publisherCode=blac
  • 2. k http://www.jstor.org/action/showPublisher?publisherCode=rss http://www.jstor.org/stable/2348667?origin=JSTOR-pdf http://www.jstor.org/page/info/about/policies/terms.jsp The Statistician (1987) 36, pp. 561-570 561 Deming's 14 points for management: framework for success HENRY R. NEAVE Department of Mathematics, University of Nottingham; Director of Research, The Deming Association, UK Abstract. Dr W. Edwards Deming modestly describes himself as a 'consultant in statistical studies'. Others have called him the father of the third wave of the Industrial Revolution. It is now becoming widely accepted that the dramatic turnround in Japan's industrial fortunes dates from Dr Deming's visit, at the invitation of JUSE, in mid-1950. His philosophy combines widespread use of statistical ideas and methods throughout organisations with an approach to management which is, in most part, diametrically opposed to traditional and current practice in the Western world. The management approach creates an environment where the importance of statistical practice is recognised to an otherwise unprecedented extent. This approach is not normally taught in management and business schools, and so the statistical consultant, needs to become familiar with, and to encourage the adoption of, the management philosophy as much as the statistical aspects. In this paper, a summary of Dr
  • 3. Deming's crucial 14 Points for Management is presented, abstracted and adapted from a number of versions which have appeared over the years. Introduction William Edwards Deming was born in Sioux City in the state of Iowa on 14 October 1900. He must be one of the busiest 87-year-olds around- certainly the busiest 87- year-old statistical consultant! Indeed in this his ninth decade he is attracting greater audiences and having a more substantial direct effect on the Western world, including especially his home country of America, than he has ever previously achieved. It is highly unfortunate for all of us in this part of the world that it has taken so long; for others have been listening to him for a long, long while and have reaped incalculable rewards as the consequence. Only in the 1980s is it becoming widely realised that Dr W. Edwards Deming has been having a profound influence on the industrial history of the world for more than the last third of a century. Had he been listened to earlier, then that history could have turned out very differently. William E. Conway, who in 1979 appears to have been the first leading American businessman to realise the importance of Deming's work, refers to him as no less than ' the Father of the Third Wave of the Industrial Revolution'. Even those of you who have not heard of Deming before today will not take long to guess which is the country that has been listening to
  • 4. him, and implementing his methods, the longest-since as long ago as 1950. It is, of course, Japan. Industrialists and others have been searching for the 'Japanese secret' for some years now. Light is beginning to dawn: the Japanese secret is, of all things, an American statistician to whom the Americans would not listen. Let me run through a very brief history of this remarkable man. He obtained his doctorate at Yale in mathematical physics in 1928, at which time he joined the United States Department of Agriculture as a mathematical physicist, remaining in that position until 1939. As you will all be aware, a lot happened in statistics during those 11 years-not least as regards agricultural applications. So it is not surprising that Deming's interest in probability and statistics, which he had already met during his time at Yale, flourished; and in 1936 he came to London to study under Fisher at University College. But, in spite of his keen interest in the mainstream developments of mathematical statistics at this time, he found even greater inspiration in the work of 562 Henry R. Neave Walter Shewhart, the originator of the concepts of statistical control of processes and of the related technical tool of the control chart. The ideas of statistical control, as presented by Shewhart, are of course not wholly distinct from
  • 5. the better-known developments in experimental design of the time, in that Shewhart analysis of manufacturing processes was also concerned with splitting variation into components. But his components of variation were of a very particular kind- those due to what he called assignable and unassignable causes, and which Deming calls special and common causes respectively. The crucial relevance of this kind of analysis of processes to their reliability, consistency and stability and to any serious quality-improvement efforts is one of the things that Western industry is learning rather late in the day. A fundamental advance made by Deming in the 1930s was the realisation that this kind of analysis is just as appropriate and vital to many non- manufacturing processes and systems: to administration, marketing, sales, service operations, training, and many others. I shall not go any further into these statistical aspects of Deming's work. Virtually all of the rest of this presentation needs to be spent on what Deming rightly regards as of even greater importance, and on which he concentrates increasingly as the years go by-and that is his philosophy of management. But let me finish the short history first. In 1939 he was invited into the Bureau of the Census as Head Mathematician and Advisor in Sampling. Due to his influence and training in the use of sampling methods and statistical control, many of the processes in the 1940
  • 6. Census experienced some- thing like a six-fold productivity increase compared with previously, several hundreds of thousands of dollars were saved, and the census results were published much sooner than usual. During the time of American involvement in World War II, Deming was involved in statistical quality control training of large numbers of people involved in the war effort. This programme had an enormously beneficial effect on the quality and volume of what was being produced, with spectacular reductions in scrap and rework. After the war, Deming played a leading role in the formation of the ASQC. But as far as industry was concerned, American manufacturers found ready post-war markets for virtually anything they produced, and the wartime life-or- death urgency for improving quality all but disappeared in favour of sales and other areas more closely concerned with short-term profits. Tragically, as you will well realise, this situation still sounds pretty familiar 40 years later. Deming first visited Japan in 1946 under the auspices of the Economic and Scientific Section of the US Department of War, and returned there in 1948. Late in 1949 he was invited back to teach statistical methods for industry by Ken-ichi Koyanagi, head of the Union of Japanese Scientists and Engineers. He went in June 1950. He lectured to vast numbers of students-and to top industrialists. They
  • 7. listened, they learned, they 'absorbed' (as Dr Deming has said) his ideas. And they put them into practice. The rest, as they say, is history. So what went wrong in America? Why, after such a promising start, did Deming find his message falling on deaf industrial ears? He freely admits his mistake. He concen- trated his attention on the engineers, the administrators, the shop-floor-the 'people who did the work'. He did not spend enough time with management, particularly senior management. Perhaps he presumed that the value of what he was doing would be obvious to the people at the top. Not so. I guess many people here have made the same kind of mistake-I know I have. So, when Deming went to Japan, he did not only talk about statistics: he also talked about management. He talked about the environment that management must create in order that real progress can be made. He talked of the philosophy of a continual, relentless, perpetual search for improve- ment, not only in end-products or services, but in all aspects and all sections of an organisation's work and activities, i.e. total quality control. He talked of the vital Deming's 14 points for management 563 necessity of teamwork: teamwork between managers and the people for whom they are responsible, teamwork between the different sections and
  • 8. departments within the organisation, teamwork between an organisation and its suppliers. He talked of the necessity of learning what one's customers really want and need; to quote him: "the customer is the most important part of the production line". And he talked of people. "An organisation's most important asset," he said, and still says, "is its people." How different from a management, or indeed political, attitude in which people so often seem to be just regarded as too big a contribution to the expenditure side of a profit- and-loss account. Not much of Deming's philosophy is heard of in the business and management schools. I guess that they are too steeped in the traditions of the old style of management which has slowly but surely lost the battle against the new style without even realising that a battle was being fought. That is why others must learn it and teach it. Deming claims that statisticians are particularly suitable for this job, because of their training in looking at things objectively, using facts, data, and all kinds of information, in a logical and unprejudiced fashion. That opinion is not universally accepted! Not all statisticians have the abilities and talents of Dr Deming, and I am pretty sure that I know a lot of statisticians who would be quite hopeless at tackling this kind of work. On the other hand, I do believe that the right kind of statistician, who is concerned with the real 'real world', as opposed to a
  • 9. more artificial 'real world' created to provide a stage for one's pet theories, can be ideal for this purpose. The Deming approach combines a "paradigm shift in management capability", as Bill Conway calls it, with the widespread, indeed universal, use of statistical thinking and methods throughout an organisation. And although the statistical content is somewhat different from what most of us teach or have been taught, the management side is totally different from the way that management people have been trained. So, on balance, that does seem to leave the statisticians with a little less to learn. But there is still plenty to learn, believe me. Without this combination of these two main aspects of Deming's teachings, the tremendous potential gains just will not be realised. In order to help people understand and implement his way of thinking, Deming has produced a list of 14 Points for Management. They are based on what he told the Japanese in 1950. They are not written in tablets of stone; indeed he still quite frequently makes minor adjustments to some of them, reflecting the way that he sees the world changing and the changing needs of the people with whom he works. The list that you have before you is derived from five different versions that I have seen; the words are virtually all Deming's, but I have put them down in a format which I have found helpful to clarify some of the big issues involved.
  • 10. If this is the first time that you have seen Deming's 14 Points, they may well appear an odd mixture to you; they certainly did to me when I first encountered them some 6 years ago. And to attempt to cover them in a short talk like this is rather like a vicar preaching a single sermon on the whole Bible. All I can hope to do is just make you aware of them and to stimulate sufficient interest in some of you that you will want to read more and think more about them. You will then be starting out on a route which could change your life-and that's not such an extravagant claim as you might imagine, at least not going by the number of Americans, both statisticians and management, whom I have heard using just those kinds of words. Here then are the 14 Points. I shall follow each one with a few comments made as if you were a management team hearing them for the first time. 564 Henry R. Neave 1 Constancy of purpose Create constancy of purpose for continual improvement of products and service, ... allocating resources to provide for long-range needs rather than short- term profitability, with a plan to become competitive, to stay in
  • 11. business, and to provide jobs. It is no good accepting Deming's approach in principle, and then forgetting it in practice. What has often happened is that managements have indicated their agree- ment, but have then allowed virtually anything else (i.e. all the 'old problems') to take priority. There must always be a consistent, inexorable, never - ending, widespread push for continual improvement in everything that an organisation does. People have become so used to new management gimmicks appearing every few weeks, or even days, which usually disappear as quickly as they come. It will take time, with such a history, for a proper belief to take hold that management is serious this time-and of course that will only happen if you really are. This can only be accomplished by you getting a deep understanding of the approach, and then setting a good example by your constancy of purpose constantly filtering down the organisation to feed and nurture a constancy of purpose throughout. 2 The new philosophy Adopt the new philosophy for economic stability. 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
  • 12. workmanship. Trans- formation of Western management style is necessary to halt the continued decline of industry. It is a whole new philosophy. It is not merely just a few guidelines, ideas and rules which can be tacked on to the end of whatever is done now. It involves a thorough, radical rethink-the most radical that you could ever realistically imagine. It may well involve a complete reversal of attitude towards many strategies and modes of behav- iour to which both you, as management, and your workforce have become accustomed over the years. Quite simply, without the general realisation that we are talking about this fundamental a change, then it will not happen. In any case, it will not happen overnight. There must be a constant, consistent movement in the right direction- every day a company must move closer to the philosophy of ever-improving quality of all systems, processes and activities under its direction. 3 Cease dependence on inspection Eliminate the need for mass inspection as a way to achieve quality ... by building quality into the product in the first place. Require statistical evidence of built-in quality in both manufacturing and purchasing functions. Some peoples' initial reaction to this instruction from Dr Deming may well be to
  • 13. laugh. If so, that only demonstrates how terribly far away their standards are from those which he demands-and which are being achieved by those who have accepted his message. We have become so used to poor quality in supplies, systems, service and expectations, and to such a high level of mistakes, errors and defects, that we may have come to accept as a 'fact of life' that this is the way things are and must forever Deming's 14 points for management 565 be. But an undeniable result of reaching consistent high standards (such consistency being ensured by statistical evidence and methods of process control) is that mass inspection indeed becomes no longer necessary. Tremendous cost-savings are then available, both by eradication of the expensive, non-productive activity of inspection, and by the security of working with reliable, dependable, consistent high-quality materials and processes. And think of what the resulting high- quality, competitive end-products will then do for your company's reputation both with existing and potential customers. 4 End 'lowest tender' contracts End the practice of awarding business solely on the basis of price tag. ... Instead, require meaningful measures of quality along with
  • 14. price. Reduce the number of suppliers for the same item by eliminating those that do not qualify with statistical evidence of quality. The aim is to minimise total cost, not merely initial cost. Purchasing managers have a new job, and must learn it. This is very much connected with Point 3. The necessity for inspection of the input from our suppliers can only be ended if we can trust those suppliers to have the same high standards as ourselves. This implies a positive, co- operative, long-running rela- tionship with a reduced number of chosen suppliers who can and will fulfil our needs. The savings obtainable from such a relationship with reliable suppliers, and the trustworthy materials and service resulting, outstrips to a dramatic degree the 'savings' attainable by merely going for the lowest price. The costs incurred within our operation, and possibly subsequent to it, as a result of using cheap, low-quality input, are likely to be enormous, quite possibly incalculable. At best, there will be substantial rework necessary, delays, and irregular throughput within our operation; at worst, the bad material may slip through our operation, leaving our customer to find it out. And, if our customer suffers, be sure that he will make us suffer as a consequence, and rightly so.
  • 15. 5 Continually seek out problems Search continually for problems, to constantly and forever improve the systems of production and service and every other activity in the company, ... to improve quality and productivity and thus to constantly decrease costs. It is the management's job to work continually on the system (design, incoming materials, maintenance, improvement of machines, training, super- vision, retraining). There is at present far too great a tendency to 'hope for the best', to 'turn a blind eye', and to 'let things ride' regarding potential problems-only paying attention to them when they become obviously serious and may well have already caused our company some considerable harm. Far better to seek them out early, to 'nip them in the bud', before they cause real trouble (this is the particular task of the monitoring phase of statistical control schemes). This is a basic difference between crisis management and good management. Never be content; even when some problems have been sorted out, and some improvement has thereby been obtained, it is in the nature of things that further improvement is always possible, but it will only be achieved if further problems are identified and solved. And if you don't find out problems, be sure they will find you out.
  • 16. 566 Henry R. Neave 6 Institute training on the job Institute modern methods of training on and for the job, ... including management, to make better use of all employees. How can anybody, staff or management, do their job properly if they do not know what their job is? Training is short-sightedly regarded as 'non- productive' by many managements, and is thus one of the first things to go when finances are tight. How wrong! Think how little proper training costs, as a proportion of the total costs involved with an employee over the months and years he may be working for your company. It is minute in comparison to the potential advantage to the company of that worker understanding his job, so that he can do it properly and to the company's best advantage. And this doesn't even include the unquantifiable gain to the company of that worker gaining satisfaction and pleasure from doing a good job-and thus wanting to continue so doing and improving yet further. 7 Institute supervision Institute modern methods of supervision (leadership), focusing on helping people and machines to do a better job.
  • 17. ... The responsibility of supervisors must be changed from sheer numbers to quality. Improvement of quality will automatically improve productivity. Management must ensure that immediate action is taken on reports of inherited defects, maintenance requirements, poor tools, fuzzy operational definitions, and other conditions detrimental to quality. If a foreman or supervisor has to spend his time chasing the people for whom he is responsible, and browbeating them to 'do a proper job' or to keep up to schedule, that in itself is a clear comment on the low standard of the operation concerned. Workers must be given interest in the work that they are being asked to do, and be helped to do it well. And these are complementary activities-if they are interested then they will want to do it well and accept help to enable that; and if it is made possible for them to do it well then their interest in it will increase-and so the cycle continues. Far too often, one sees the opposite kind of cycle: the vicious circle. Conditions force a worker to do a bad job; so he loses some of the interest that he has, which results in him doing a yet poorer job, which lessens his interest still further, and so on. 8 Drive out fear Encourage effective two-way communication and other means to drive out fear throughout the organisation,
  • 18. ... so that everybody may work effectively and more productively for the company. Anybody working in fear of his superiors cannot be working in true co-operation with those superiors. The best that can be hoped for in such circumstances is to get people working in resentful acquiescence-maybe that is all that some superiors desire. However, this will never result in much progress. Successful joint working relation- ships achieve so much more than isolated individual efforts-but will not do so unless nourished by mutual trust, confidence and respect. Those working in fear try to withdraw from the attention of those of whom they are afraid. And how can you expect to get anything of the true potential from people whose main aim is not to be Deming's 14 points for management 567 noticed? Point 9 will concern the breaking down of barriers between departments. It is just as important to break down barriers between staff and their supervisors, between those supervisors and middle management, between middle and senior management, and between senior management and the chief executive officer. But fear will keep those barriers firmly in position.
  • 19. 9 Break down barriers Break down barriers between departments. ... People in different areas such as research, design, sales, administration, and production must work in teams to tackle problems that may be encoun- tered with products or service. Different sections of an organisation have their own interests, their own traditions, their own values, their own 'sacred cows', often, in effect, their own language. So, unless they have extremely good cause, they will automatically fight against their fellow-employees with whose interests they appear to be in conflict. The company will only make headway if its employees start fighting the competition rather than themselves. Frequently a minor change in one department can afford considerable help to another-often with the resulting desire to 'return the compliment'. But such will only happen if the departments concerned have real understanding of each others' difficulties. The common language of elementary statistical methods and charting techniques, which are of course powerful and useful tools in their own right, is extremely effective in enabling people to gain an understanding of each others' jobs and problems, and how they may be helped. 10 Eliminate exhortations
  • 20. Eliminate the use of slogans, posters, and exhortations ... for the workforce, demanding zero defects and new levels of productiv- ity, 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 workforce. 'Do it right the first time'; 'Zero defects is our aim'; 'Increase output by x%'; and countless others. How can anybody do it right the first time if he is given neither the time nor the materials or equipment to make it feasible? How can he produce zero defects if what he gets to work on is already defective? And his already-low job satisfaction will drop even more if he is exhorted to produce greater quantities which he knows will, under the prevailing detrimental conditions, lower the standards of what he is producing still further, however hard he tries to prevent it. Make reasonable requests, and provide what is necessary for them to be met, and you may well get better than you ask for. Make unreasonable requests, and you will get even less than you would have got otherwise from an increasingly-demoralised worker. 11 Eliminate targets Eliminate work standards that prescribe numerical quotas and goals (targets).
  • 21. ... Substitute aids and helpful supervision; use statistical methods for continual improvement of quality and productivity. Targets can never be right except very occasionally by accident. If a target is lower 568 Henry R. Neave than what turns out to be reasonably achievable, the automatic reaction is for workers to take a rest once that target has been reached-and why shouldn't they? If the target is unreasonable, then either it will not be attained (resulting in criticism, loss of bonus, demoralisation-all at no fault of the workforce), or it will be attained through cutting corners, lowering standards, ignoring safety requirements, etc.: the right numbers may be attainable, but at what cost in quality, with all the ramifications that may have further down the line or, worse still, at the customer's? In either case, workers' respect for their management's ability to manage will justifiably take a further dive. 12 Permit pride of workmanship Remove the barriers that rob hourly workers, and people in management, of their right to pride of workmanship. ... This implies, inter alia, abolition of the annual merit rating (appraisal of
  • 22. performance), and of management by objective. Again, the responsibility of supervisors must be changed from sheer numbers to quality. So many barriers to pride of workmanship exist, several of which have been touched on already. How can a worker be proud of what he is doing if he is being forced to produce shoddy goods, because of poor materials, poor tools, unreasonable quantities of throughput being demanded? How can he be proud of what he is doing if he can see ways of improvement but knows it is pointless to try to discuss them with his superiors-so he reluctantly carries on in the same old way which he knows to be a bad way? How can a manager be proud of what he does if the effect is to reduce quality and make his workers even less happy in their work? How can he be proud of what he does if there is no time or encouragement to try to improve morale and productivity by instigating improvements to processes and methods in order to raise quality? The value of what a worker, of whatever rank, produces will be almost immeasurably higher if he is enabled and encouraged to take pride in his work, compared with what he does if he is merely serving time. 13 Institute education Institute a vigorous program of education and re-training. ... New skills are required to keep up with changes in materials, methods,
  • 23. product design, machinery, techniques, and service. Things change fast in the modern world. There is, of course, little point in change for change's sake but, without being aware of change, how can we decide? Without being aware of change, and the potential benefits that it might bring, how can we, or the company, have any chance of benefitting from it? How can things improve without change? And how can change occur without knowledge of it? The use of elementary statistical methods throughout an organisation yields untold benefits by helping both in the identification and subsequently the solution of problems, by predicting the effects of change, and by examining those effects once change has been made, by generating individual interest, and by facilitating communication with other depart- ments and with superiors or those under our supervision. So all members of the company should be trained in these methods and helped in their use of them. If a job or position in the company becomes outmoded, the person holding that position needs Deming's 14 points for management 569 retraining for more valuable work. Use of the common statistical language will help him to comprehend his new tasks more easily and completely. 14 Top management's commitment
  • 24. Clearly define top management's permanent commitment to ever-improving quality and productivity, ... and its obligation to implement all of these principles. Create a struc- ture in top management that will push every day on the preceding 13 points, in order to accomplish transformation. It all begins and can end here. Without full top management belief, understanding and commitment, progress (if any) will be sporadic and temporary at best. Top manage- ment must lead the whole organisation in the drive for ever - improving quality of every activity in the company by providing proper encouragement, training, facilities, time-and by practising what they preach. In particular, they must accept that they also have much to learn, and be prepared to learn it. What, for example, is the point of training everybody from middle management downwards in statistical charting tech- niques and process control if top management cannot, or rather will not, understand the reports, results, analyses, and recommendations emanating from the use of these methods? Of course, top management are very busy people. And that is why it is so necessary to set up a positive and permanent structure within management with the sole task of encouraging and facilitating continuing and continual progress in the new direction. It is hard work-Deming has never claimed otherwise-
  • 25. and the need for 'commitment' and faith will never have been greater. But the potential rewards, and degree of success, for you and your company are huge. As I said earlier, to those of you who are hearing of Deming's management philosophy for the first time, this must have seemed quite a mixture. Probably some of the Points have seemed obvious, others questionable, and some downright impossible. It is also difficult at first sight to see how they all hang together in a coordinated framework. But they do. Perhaps the best attempt that I have seen to present the 14 Points as a relatively brief composite statement is in the Quality Philosophy of the Pontiac Division of General Motors. I will finish by quoting that summary to you: Pontiac Motor Division commits itself to quality as our number one business objective. We are dedicated to operating under Dr Deming's philosophy of management, including extensive application of statistical techniques and team-building efforts. We intend to be innovative and to allocate resources to fulfil the long-range needs of the customer and the company. We will institute better job training, including the help of statistical methods, and will 'do it right the first time', eliminating scrap and waste. We will provide a vigorous program for retraining people in new skills, to keep up with changes
  • 26. in materials, methods, design of products, and machinery, and in the use of statistical techniques to identify areas of improvement. We wil l reduce fear by encouraging open two-way communication. We renounce the old philoso- phy of accepting defective workmanship in everything we do- paperwork, processes, and hardware. We must eliminate the dependence on mass inspec- tion for quality. We will maximize the use of statistical knowledge and talent in both our division and our suppliers. We will demand and expect suppliers to use statistical process control to ensure quality. Where possible, we will single-source purchased items with the supplier who demonstrates the highest level of quality through statistical means. 570 Henry R. Neave Recommended Reading DEMING, W. EDWARDS (1986) Out of the Crisis (Massachusetts Institute of Technology, Center for Advanced Engineering Study, Cambridge, MA 02139, USA). SCHERKENBACH, WILLIAM W. (1986) The Deming Route to Quality and Productivity: road maps and roadblocks (CEEP Press, George Washington University, Washington DC 20052 USA). MANN, NANCY R. (1985) The Keys to Excellence: the story of
  • 27. the Deming Philosophy (Prestwick Books, 2106 Wiltshire Boulevard, Santa Monica, CA 90403, USA). These books are all obtainable through: The George Washington University Continuing Engineering Education Program 18 St George's Street Hanover Square Mayfair London W1R 9DE Article Contentsp. 561p. 562p. 563p. 564p. 565p. 566p. 567p. 568p. 569p. 570Issue Table of ContentsJournal of the Royal Statistical Society. Series D (The Statistician), Vol. 36, No. 5, Special Issue: Industry, Quality and Statistics (1987), pp. 437- 597Volume Information [pp. 593-597]Front Matter [pp. 437- 438]SQC Is Not Enough [pp. 439-464]Multivariate Acceptance Sampling-Some Applications to Defence Procurement [pp. 465- 478]Industry, Quality and Statistics [pp. 479-485]Statisticians- Keep It Simple [pp. 487-492]An Approach to Software Quality Assurance Training [pp. 493-498]Reliability Surveys and Panels [pp. 499-511]The Measurement of Consumer Acceptability [pp. 513-523]Trading Standards: An Aid to Quality [pp. 525- 530]Sampling for Clinical Report Auditing [pp. 531- 539]Teaching Basic Statistical Quality Control to the Shop- Floor [pp. 541-553]Statistics in Industry: A Failure of Communication [pp. 555-560]Deming's 14 Points for Management: Framework for Success [pp. 561-570]Selecting Out of Control Variables With the $T^2$ Multivariate Quality Control Procedure [pp. 571-581]The Open Tech Project in Quality Assurance [pp. 583-587]Computer Aids to Data Quality Control [pp. 589-592]Back Matter