Demings 14 Points
In this article we introduce you to Deming's 14 management principles and how they have impacted the Lean Management System.
The person Deming
William Edward Deming was an American professor, engineer, and consultant who studied electrical engineering and mathematical physics before becoming a consultant. He participated in a variety of topics, including statistical process control, systems thinking, and the human psyche. His work as a quality management consultant for Japanese firms was possibly his most well-known accomplishment. As a result, the Deming Prize has been given out to this day.
Nowadays the PDCA-Cycle is well known globally (or Deming Circle). But fun fact – it initially was called the Shewart-Cycle based on his cooperation with Dr. Walter Shewart.
Deming’s 14 POINTS OF GOOD MANAGEMENT
Deming offers 14 principles that he has identified as success elements for effective organizational transformation in his book "Out of the Crisis." Here they come:
To be competitive, set an unchanging business aim of consistent product and service improvement.
Put the new philosophy into practice. We are in a new phase of economic development, and (western) management must adapt to new circumstances.
Stop relying on quality assurance. Quality is not checked at the completion of the process but is built in from the initial stage.
Stop giving out contracts based on the lowest price. Instead, analyze a product's or service's entire cost. For each product, use only one supplier with whom you can develop a long-term and trusting connection.
Consistently and constantly improve the framework for manufacturing things.
Introduce "Training on the Job."
Introduce a fresh leadership style. The focus of leadership should be on assisting people and equipment in doing their tasks effectively.
Take away the system's fear. A culture that freely acknowledges mistakes aids in the identification of root causes, long-term solutions, and hence continuous improvement.
Remove the barriers that exist between departments. Purchasing, development, production, and sales must all work together to identify and address problems in production and service at the earliest possible time.
Employees who want zero errors or increased levels of productivity should avoid slogans and goals. Recognize that many of these goals are impacted by the system rather than by the individuals and that this incompetence demotivates employees.
Employees are no longer held to fixed quotas or performance targets. To make it clear to employees why tasks are important and should be completed, replace them with effective leadership.
Remove any barriers preventing employees from becoming proud of their work.
Introduce a holistic sublimed program that challenges and motivates each person's personal growth.
To enhance transformation, take the services of everyone in the organization.
Getting Demings principles IN THE LEAN MANAGEMENT SYSTEM
According to Deming, the 14 points of excellent management have evolved over time. While in the first point, he discusses relatively small-scale measures that facilitate a company's success, in the second point, he discusses large-scale measures that aid a company's success, the final principles are more basic statements about good business management.
In a lean workplace, we can apply any or all of the principles. Starting with a business vision that explains why the company exists and how it intends to improve over time. Continue with a new perspective on quality. Rather than employing a large number of quality control personnel to inspect the product at the end of the manufacturing process and, if needed, rework the product, the goal should be to incorporate quality into the product, this means that the manufacturing process should be built in such a way that manufacturing errors are avoided from the start (Poka-Yoke) or recognized quickly, allowing for a fast reaction rather than allowing the product to flow to the end of the line. This, of course, necessitates highly qualified staff who can best learn these abilities of immediate quality control directly at the process, as well as a culture that allows for the detection of errors without having to face negative consequences.
The style of thinking in value streams is another aspect of the Deming principles that becomes obvious. It explains how departments must coordinate to predict future difficulties in product manufacturing and services at an early stage. This demands strong cooperation among purchasing, development, sales, and production departments. He also states in principle four that decisions (such as purchasing) should not be made solely on the basis of the lowest offer but should always examine the whole expenses of a decision. What use is a 5 cent purchase price reduction if I have to budget for a 6-month replacement cycle in my warehouse? I have over 5 cents in expenses for storage, transportation, and stalled capital.
Another significant point is the shift in leadership perceptions. Deming is given the following quote:
It is the process, not the people.
Giving employees targets or piecework rates, in his opinion, makes no sense because they have no control over the results, which are decided by the system. Many people would now believe that if there are no goals, nothing will function. The distinction, in my opinion, is in the type of goals. If a corporation has a goal to grow by 10%, you might consider how to improve the system to meet this goal. You don't just hinder all of your employees' goals by 10%; you think about how you might reform the system.
Deming probably assumes that an employee is always prepared to give his all and that management is only demotivating him because it sets expectations for him that are unachievable in the current system. He goes on to say that staff wants to learn more and are always looking for ways to improve. This is a viewpoint that I can understand. When I consider the many employees I've met, I'm struck by how willing the young employees are to give their all and go hungry. Employees who have been disrupted for a long time by "the system" now only do what is necessary and seek challenges outside of work because they are not challenged or motivated at work.
I can only advise everyone to review the 14 Deming management principles again and again and to ask themselves which of the concepts are continuously followed and which are not.