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DEMING CYCLE AND ITS 14 PRINCIPLES PRESENTED BY ARUP DASGUPTA NU/MN-02/10
What this presentation will cover• Dr. Deming’s Biography• Deming cycle• Deming’s 14 Key principles
Dr. Deming Biography• Born October 14, 1900 in Sioux City Iowa• Died December 20, 1993• PHD in in Mathematics & Mathematical Physics from Yale 1928• Professor of Statistics at NY University 1946-1993• 1947 – taught Japanese engineers and managers statistical process controls – the message: improving quality will reduce expenses while increasing productivity and market share.• Credited with enabling Japan to become a world business power by the 1980’s due to image of quality• 1979-1982 – worked for Ford Motor Co. credited for making Ford the most profitable US Auto manufacturer by 1986
• The Deming cycle, or PDSA cycle, is a continuous quality improvement model consisting of a logical sequence of four repetitive steps for continuous improvement and learning: Plan, Do, Study (Check) and Act.• The PDCA cycle is also known as the Deming Cycle, or as the Deming Wheel or as the Continuous Improvement Spiral.• The PDCA cycle was in fact originally developed by Walter A. Shewhart, a Bell Laboratories scientist who was Demings friend and mentor, and the developer of Statistical Process Control (SPC) in the late 1920s. So sometimes this is referred to as the "Shewhart Cycle". There are also several recent variations on this concept.
Deming’s 14 Key principles The System of Profound Knowledge is the basis for application of Demings famous 14 Points for Management. Deming offered fourteen key principles for management for transforming business effectiveness. The points were first presented in his book Out of the Crisis. Although Deming does not use the term in his book, it is credited with launching the Total Quality Management movement
Deming’s 14 Key principles – 1 Constancy of PurposeCreate constancy of purpose for continualimprovement of products and service tosociety, allocating resources to provide forlong range needs rather than only short Termprofitability, with a plan to becomecompetitive, to stay in business, and to providejobs.
Deming’s 14 Key principles – 2 Adopt the new philosophyWe are in a new economic age, created inJapan. We can no longer live with commonlyaccepted levels of delays, mistakes, defectivematerials, and defective workmanship.Transformation of Western management styleis necessary to halt the continued decline ofbusiness and industry.
Deming’s 14 Key principles – 3 Cease the need for mass inspectionEliminate the need for mass inspection as theway of life to achieve quality by building qualityinto the product in the first place. Requirestatistical evidence of built in quality in bothmanufacturing and purchasing functions.
Deming’s 14 Key principles – 4 End lowest tender contractsEnd the practice of awarding business solely onthe basis of price tag. Instead requiremeaningful measures of quality along withprice. Reduce the number of suppliers for thesame item by eliminating those that do notqualify with statistical and other evidence ofquality. The aim is to minimize total cost, notmerely initial cost, by minimizing variation.This may be achieved by moving toward asingle supplier for any one item, on a longterm relationship of loyalty and trust.
Deming’s 14 Key principles – 5 Improve every process Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. Deming’s 14 Key principles–6 Institute training on the jobInstitute modern methods of training on the job for all,including management, to make better use of everyemployee. New skills are required to keep up withchanges in materials, methods, product and servicedesign, machinery, techniques, and service.
Deming’s 14 Key principles – 7 Institute leadershipInstitute leadership - the aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers. Deming’s 14 Key principles –8 Drive out fearEncourage effective two way communication andother means to drive out fear throughout theorganization so that everybody may work effectivelyand more productively for the company.
Deming’s 14 Key principles – 9 Break down barriersBreak down barriers between departments. People inresearch, design, sales, and production must work asa team, to foresee problems of production and in usethat may be encountered with the product or service.Deming’s 14 Key principles – 10Eliminate exhortationsEliminate slogans, exhortations, and targets for the workforce asking for zero defects and new levels ofproductivity. Such exhortations only create adversarialrelationships, as the bulk of the causes of low qualityand low productivity belong to the system and thus liebeyond the power of the work force.
Deming’s 14 Key principles – 11 Eliminate arbitrary numerical targetsEliminate work standards (quotas) on the factoryfloor. Substitute leadership. Eliminate managementby objective. Eliminate management bynumbers, Numerical goals. Substitute aids andhelpful leadership in order to achieve continualimprovement of quality and productivity. Deming’s 14 Key principles – 12 Permit pride in workmanshipRemove barriers that rob the hourly worker of his rightto pride of workmanship.
Deming’s 14 Key principles -13 Encourage educationInstitute a vigorous program of education and self-improvement,. What an organization needs is not justgood people; it needs people that are improving witheducation.Deming’s 14 Key principles – 14Top management commitment to actionPut everybody in the company to work to accomplishthe transformation. The transformation is everybodysjob.
Cont…..Clearly define top managements permanent commitment toever improving quality and productivity, and their obligationto implement all of these principles. Indeed, it is not enoughthat top management commit themselves for life to qualityand productivity. They must know what it is that they arecommitted to—that is, what they must do. Create a structurein top management that will push every day on the preceding13 Points, and take action in order to accomplish thetransformation. Support is not enough: action is required!
References• The Deming Guide to Quality and Competitive Position – Howard S. Gitlow, Shelly J. Gitlow• Wikipedia – W. Edwards Deming• Deming’s 14 points in Project Management – Josh Nankivel