14 Points to Ponder (Deming)

DEMING
14 Points to Ponder
Dr. W. Edwards Deming: (1900-1993)
is considered to be the Father of
Modern Quality
Dr. Deming preached that to achieve
the highest level of performance
requires more than a good philosophy
– the organization must change its
behavior and adopt new ways of doing
business.
Deming's approach were amply
summed up in his famous 14 Points.

Profound Knowledge
Deming advocated that all managers need to
have what he called:
A System of Profound Knowledge
This forms the basis for the application of
Deming's 14 Points for Management.
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Profound Knowledge
• Systems thinking:
Understanding the overall processes involving
suppliers, producers, and customers (or
recipients) of goods and services
A system is a network of components which work together to try to achieve
common aims

Profound Knowledge
• Understanding variation:
The range and causes of variation in quality, and
use of statistical sampling in measurements.
How can we improve the average?
How can we reduce the spread?

Profound Knowledge
• Theory of knowledge:
The concepts explaining knowledge and the
limits of what can be known
•Because we now work in complex
systems, we no longer get instant
feedback about success or failure.
•An action can give immediate benefits
locally but can be harmful in the long
term .
•We cannot rely on instincts.
•We have to be systematic about
learning.

Profound Knowledge
• Knowledge of psychology:
Concepts of human nature.

• Psychology is the study of the human mind, including how people act and
interact in different situations
• Successful managers get promoted because they understand people. But they
only understand how people act under the current style of management. If they
have never seen an organisation transformed by the principles described here
they will have no understanding of how people act in that environment. The
basic rules of motivation and reward are completely different.
• For example, it is commonly accepted that targets and deadlines are necessary to
keep people focused on the job. But with the right type of leadership, people
want to do their best for the organisation and in these circumstances it is
harmful to apply crude external motivators.
• I have heard it said that too much job security makes people lazy. But when
individuals feel insecure, instead of co-operating with one another, they tend to
compete for recognition of merit from their superiors. In a system when the
components do not fully co-operate this leads to huge inefficiencies.
• Internal competition makes it difficult to learn anything. It is very difficult to get
an unbiased assessment of a new project or experiment if some people have a lot
to gain or lose from the new idea.

POINT 1
• Create constancy of purpose towards
improvement.
• Replace short-term reaction with long-term
planning to become competitive and to stay in
business, and to provide jobs.
How many companies do that?
My experience is that fewer than 1 in 10 do
What do you think? Would you say that your organization has that constancy of
purpose?

POINT 2
• 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.
• The implication is that management should actually
adopt his philosophy, rather than merely expecting
the workforce to do so.
In light of the financial crisis this might have been written yesterday, but instead it
written at a time when industry in places like the USA, Europe, Australia and here
was stalled and floundering in relation to the rise of Japan as a sophisticated
manufacturer.
Today we might look at the comments in relation to China and India.
Do you think most management is awake to the challenge?

POINT 3
• 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.
• If variation is reduced, there is no need to
inspect manufactured items for defects, because
there won't be any.
Inspection has its place in terms of providing evidence of conformity.
But what Deming is talking about is were inspection is the only method to assure
quality.
What is the role of inspection at your place of work?
What is there in place if you don’t have inspection?

POINT 4
• 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.
• Multiple suppliers mean variation between
feedstock.
Today, whole of life costing is something of a buzzword driving some procurement
decisions. Unfortunately, 40 years later and we still see many purchasing
decisions driven solely by ‘cost’.
Do you have single suppliers? Or is cost the only criteria?

POINT 5
• Improve constantly and forever the system of
production and service, to improve quality and
productivity, and thus constantly decrease costs.
• Constantly strive to reduce variation.
This harks back to POINT 1 where we said ‘CREATE CONSTANCY OF
PURPOSE’ and again that focus on reducing variation.
Do you have a process for constantly improving?
Should you have a process?

POINT 6
• Institute training on the job.
• If people are inadequately trained, they will not
all work the same way, and this will introduce
variation.
Reducing variation again.
A theme is coming through here.
Is training comprehensive in your workplace?
Is it aligned with an intent to reduce variation?

POINT 7
• Institute leadership. The aim of supervision
should be to help people and machines to do a
better job.
• Supervision of management is in need of
overhaul, as well as supervision of production
workers.
• Deming makes a distinction between leadership
and mere supervision. The latter is quota- and
target-based.

POINT 8
• Drive out fear, so that everyone may work
effectively for the company.
• Deming sees management by fear as counter-
productive in the long term, because it prevents
workers from acting in the organisation's best
interests.
Fear is alive and well in many companies I visit.
I am not going g to ask to what degree fear exists in your workplaces

POINT 9
• Break down barriers between departments.
• People in research, design, sales, and production
must work as a team, to foresee problems.
• An idea central to TQM is the concept of the
'internal customer', that each department serves
not the management, but the other departments
that use its outputs.

POINT 10
• Eliminate slogans.
• A central TQM concept is that it's not people
who make most mistakes - it's the process they
are working within.
• Harassing the workforce without improving the
processes they use is counter-productive.
The bulk of the causes of low quality and low productivity belong to the system and thus
lie beyond the power of the work force so asking them for zero defects is pointless and
can result in adversarial relationships.
I hate to say how often I have seen KPI set for managers which actually drive the use of
slogans as evidence of managements communication of key issues.

POINT 10
• Eliminate work standards (quotas) on the factory
floor. Substitute leadership.
• Eliminate management by objective. Eliminate
management by numbers, numerical goals.
Substitute leadership.
• "The most important things cannot be
measured." W Edwards Deming
Deming saw production targets as encouraging the delivery of poor-quality goods.
Example – call centre operator
Do you find that achieving a ‘number’ has reduced quality?

POINT 11
• Remove barriers that rob the hourly worker of
his right to pride of workmanship.
• The responsibility of supervisors must be
changed from sheer numbers to quality.
Here he is talking about that constancy of purpose again, with everyone focused on a
common intent and proud of their contribution.
Imagine how someone feels when the goal is 500 units and they achieve only 496. What
does that do for pride?
Are there barriers to pride in workmanship at your business?

POINT 12
• Remove barriers that rob people in management and
in engineering of their right to pride of workmanship.
This means, inter alia, abolishment of the annual or
merit rating and of management by objective
I have seen highly valuable staff leave a job because they received a bonus lower than
someone else who they perceived were contributing less than they were. The person
was almost irreplaceable and the cost to replace was very significant.
I have seen companies where Production was always blamed by Sales. How do you
think that made the production people feel? Especially when the problems were mostly
caused by Sales?
Are there barriers to managers feeling proud in your organizations? Are you proud of
what you achieve?

POINT 13
• Institute a vigorous program of education and
self-improvement.
Its great to see you all here. Obviously you are all taking part in self improvement.
Is everyone in your organization encouraged to self improve? Are managers upgrading
their education? Or are you met with a blank look when you talk about concepts like
LEAN? or TQM?

POINT 14
• Put everybody in the company to work to
accomplish the transformation.
• The transformation is everybody's job.
Is everyone in your organization on the same page?

• “To achieve the highest level of
performance requires more than a good
philosophy – the organisation must
change its behavior and adopt new
ways of doing business.”
Dr. W Edwards Deming

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14 Points to Ponder (Deming)

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