W. Edwards Deming created the 14 Deming Principles to describe a way to manage companies. Here’s an elaboration on principles three through five.
Deming Principle #3: Fix the Defects Now
Deming.org states that principle number three is, “Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place.”
In the US, when they make cars, they get don’t inspect for defects in the process of making the cars. They make the cars and then fix the flaws at the end. In Japan, if they find a defect, they shut the process down and, then, find a way to fix it, so it doesn’t happen again. Then they start the process again. This is vital to pay attention to when working on the effectiveness of a company. Defects and flaws should be worked on right away during the process not after.
Deming Principle #4: Don’t Chase Nickels and Dimes
Deming.org states that principle number for is, “End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.”
So many companies are chasing nickels and dimes. Once a year they reprice their products and services to make sure they get the absolute best prices on everything. The only way you can get quality is through long term relationships with vendors and contractors. They learn to give the best services they can to you over time. You don’t accomplish that by having to retrain everyone on pricing constantly. It’s more expensive to chase nickels and dimes. Get the best you can from vendors and contractors not the least expensive. This will eventually help you to reduce total costs.
Deming Principle #5: Reduce Variation
Deming.org states that practice number five is, “Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.”
The point is to reduce variation along the way so that accuracy is more and more attainable. One would do this through statistical analysis. Machines that are supposed to punch a hole in a sheet of metal in the exact center sometimes are off center. This confuses companies, as they program the machines to work with preciseness; however, there is always variation in life, and it is important to try to reduce the variation between the highs and lows as time goes on. Constant improvement in this area does not comes from the workers, but the management team. The management team can only do this, however, through connecting with their workers and understanding what they face on a daily basis.
Check back in two weeks for “Elaborating on the 14 Deming Principles: Part Three!”
Management consulting is so helpful because it provides a rich variety of different perspectives on business. One aspect that makes it so golden is simply because it is coming from the outside of the company receiving the consulting work. This keeps ideas fresh and provides companies with unique opportunities. It provides perspectives on how to grow instead of remain stuck in certain patterns or habits. It teaches management to take more responsibility and put less strain on workers. It helps a company become more cohesive in its purposes and move forward as one unit. Management consulting is highly valuable. The Deming Principles take management consulting to a whole deeper level. The Deming Principles are so practical and objective that they can not only be used to aid a company in becoming more successful, but it can also be used as a list of philosophies to live one’s life by.
Deming Principle #1: Maintain a Consistent Purpose
According to Deming.org, the first principle states, “Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.”
What happens with a lot of companies is someone gets hired and they are given a set of objectives that may differ from others in the company. It is important to make sure the company has one set of objectives that everyone works towards. If different positions within the company point to various objectives that sometimes compete with one another, then the job descriptions of the workers need to change. There must be a systematic approach. Deming would only come to advise companies if the CEO was there so that there is consistency in this regard across the company.
Deming Principle #2: Workers are Not in Control, Management Is
Deming.org states that the second principle is, “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.”
Workers cannot make changes to a company; only management can do that. The cause of certain methodologies within a company does not come back to the workers. It comes back to management. Management is the one in control. Deming did not believe in bonuses, because it caused workers to do what was necessary to get the bonus, even if that meant doing something that was not according to appropriate and best practices. Having bonuses distorts the system. Management is the cause and solution in this case. They cause the problem by allowing people to use non-legitimate practices but then solve the problem by taking bonuses away.
Come back in two weeks for “Elaborating on the 14 Deming Principles: Part Two!”
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