Tuesday, 8 January 2019

DEMING’S 14 PRINCIPLES


DEMING’S 14 PRINCIPLES

Point 1: Create a Vision and Demonstrate Commitment
o  An organisation must define its values, mission, and vision of the future to provide long-term direction for its management and employees.
Point 2: Learn the New Philosophy
o  Companies must take a customer-driven approach based on mutual cooperation between labour and management and a never-ending cycle of improvement.
Point 3: Understand Inspection
o  Inspection should be used as an information-gathering tool for improvement, not as a means of “assuring” quality or blaming workers.
Point 4: Stop Making Decisions Purely on the Basis of Cost
o  Deming urged businesses to establish long-term relationships with fewer suppliers, leading to loyalty and opportunities for mutual improvement.
Point 5: Improve Constantly and Forever
o  Improvements in operations are achieved by reducing the causes and impacts of variation, and engaging all employees to innovate and seek ways of doing their jobs more efficiently and effectively.
Point 6: Institute Training
o  Training
            - results in improvements in quality and productivity
            - adds to worker morale
            - demonstrates to workers that the company is dedicated to helping them and investing in the future
Point 7: Institute Leadership
o  The job of management is leadership, not supervision.
           
            Supervision – simply overseeing and directing work
            Leadership – providing guidance to help employees do their hobs with less effort.
Point 8: Drive Out Fear
o  Fear is manifested in many ways: fear of reprisal, fear of failure, fear of the unknown, fear of relinquishing control, and fear of change.
Point 9: Optimise the Efforts of Teams
o  Teamwork helps to break down barriers between departments and individuals.
Point 10: Eliminate Exhortations
o  Motivational approaches overlook the major source of many problems – the system
Point 11: Enumerate Numerical Quotas and Management by Objective (MBO)
o  Management must understand the system and continually try to improve it, rather than focus on short-term goals.
Point 12: Remove Barriers to Pride in Workmanship
o  Deming believed that one of the biggest barriers to pride in workmanship is performance appraisal
o  Three categories of performance:
            Majority of performances that are within the system
            Performances outside the system on the superior side
            Performances outside the system on the inferior side
Point 13: Encourage Education and Self-Improvement
o  Organisations must invest in their people at all levels to ensure success in the long term
Point 14: Take Action
o  Any culture change begins with top management and includes everyone
o  Team-based approach


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