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1. 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.
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.
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.
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.
5. Improve constantly and forever the system of production and service,
to improve quality and productivity, and thus constantly decrease costs.
6. Institute training on the job.
7. Institute 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.
8. Drive out fear, so that everyone may work effectively for the company
9. Break down barriers between departments. People in research, design,
sales, and production must work as a team, to foresee problems of production
and in use that may be encountered with the product or service.
10. Eliminate slogans, exhortations, and targets for the work force
asking for zero defects and new levels of productivity. Such exhortations
only create adversarial relationships, as 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.
11a. Eliminate work standards (quotas) on the factory floor. Substitute
leadership.
b. Eliminate management by objective. Eliminate management by numbers,
numerical goals. Substitute leadership.
12a. Remove barriers that rob the hourly worker of his right to joy
of workmanship. The responsibility of supervisors must be changed from
sheer numbers to quality.
b. Remove barriers that rob people in management and in engineering
of their right to joy of workmanship. This means abolishment of the annual
merit rating and of management by objective
13. Institute a vigorous program of education and self-improvement.
14. Put everybody in the company to work to accomplish the transformation.
The transformation is everybody's job.
Excerpted with permission from OUT OF THE CRISIS, copyright (c) 1986
by the W. Edwards Deming Institute, Washington, DC.
Published by the Massachusetts Institute of Technology, Center for Advanced Educational Study (MIT-CAES), Cambridge, MA 02139
The prevailing style of management must undergo transformation. A system
can not understand itself. The transformation requires a view from outside.
The aim of this chapter is to provide an outside view-a lens-that I call
a system of profound knowledge. It provides a map of theory by which to
understand the organizations that we work in.
The first step is transformation of the individual. This transformation
is discontinuous. It comes from understanding of the system of profound
knowledge. The individual, transformed, will perceive new meaning to his
life, to events, to numbers, to interactions between people.
Once the individual understands the system of profound knowledge, he
will apply its principles in every kind of relationship with other people.
He will have a basis for judgment of his own decisions and for transformation
of theorganizations that he belongs to. The individual, once transformed,
will:
The various segments of the system of profound knowledge proposed here
can not be separated. They interact with each other. Thus, knowledge of
psychology is incomplete without knowledge of variation.
A manager of people needs to understand that all people are different.
This is not ranking people. He needs to understand that the performance
of anyone is governed largely by the system that he works in, the responsibility
of management. A psychologist that possesses even a crude understanding
of variation as will be learned in the experiment with the Red Beads (Ch.
7) could no longer participate in refinement of a plan for ranking people.
Further illustrations of entwinement of psychology and use of the theory
of variation (statistical theory) are boundless. For example, the number
of defective items that an inspector finds depends on the size of the work
load presented to him (documented by Harold F. Dodge in the Bell Telephone
Laboratories around 1926). An inspector, careful not to penalize anybody
unjustly, may pass an item that is just outside the borderline Out
of the Crisis, p. 266). The inspector in the illustration on page 265
of the same book, to save the jobs of 300 people, held the proportion of
defective items below 10 per cent. She was in fear for their jobs.
A teacher, not wishing to penalize anyone unjustly, will pass a pupil
that is barely below the requirement for a passing grade.
Fear invites wrong figures. Bearers of bad news fare badly. To keep
his job, anyone may present to his boss only good news.
A committee appointed by the President of a company will report what
the President wishes to hear. Would they dare report otherwise?
An individual may inadvertently seek to cast a halo about himself. He
may report to an interviewer in a study of readership that he reads the
New York Times, when actually
this morning he bought and read a tabloid.
Statistical calculations and predictions based on warped figures may
lead to confusion, frustration, and wrong decisions.
Accounting-based measures of performance drive employees to achieve
targets of sales, revenue, and costs, by manipulation of processes, and
by flattery or delusive promises to cajole a customer into purchase of
what he does not need(adapted from the book by H. Thomas Johnson, Relevance
Regained, The Free Press, 1992).
A leader of transformation, and managers involved, need to learn the
psychology of individuals, the psychology of a group, the psychology of
society, and the psychology of change.
Some understanding of variation, including appreciation of a stable
system, and some understanding of special causes and common causes of variation,
are essential for management of a system, including management of people
(Chs. 6 -10).
All rights reserved. Permission is hereby granted to print
a single copy of this material for personal, scholarly, non-commercial
use provided such copy includes the text in its entirety and the copyright
notice stated above. Any other use requires written permission in advance
from the publisher.
Published by the Massachusetts Institute of Technology,
Center for Advanced Educational Services, Cambridge, MA 02139 (E-mail:
caes-courses@mit.edu)
This page was created by Jim Clauson on 05OCT97 and last updated on 01JAN98.
Contents, images, and structure Copyrighted by the Deming Electronic Network, 1995-98 (unless otherwise noted). All rights reserved.
Current Resources:
Deming's 14 Points
(Excerpted from Chapter Two of OUT OF THE CRISIS
by W. Edwards Deming )
Deming's System of Profound Knowledge
The following is excerpted from Chapter 4 of The New
Economics, second edition by W. Edwards Deming.
The layout of profound knowledge appears here in four parts, all related
to each other:
One need not be eminent in any part nor in all four parts in order to understand
it and to apply it. The 14 points for management
in industry, education,
and government follow naturally as application of this outside knowledge,
for transformation from the present style of Western management to one
of optimization.
Excerpted with permission from The
New Economics for Industry, Government, Education, second edition,
copyright © 1994 by the W. Edwards Deming
Institute.
Acknowledgements:
The URL for this page is http://deming.ces.clemson.edu/pub/den/deming_info.htm