Deming 14 Principles

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DEMING’S 14 PRINCIPLES OF TQM:

1. Create constancy of purpose toward improvement of product and service, with the aim
to become competitive, 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 massive
inspection by building quality into the product in the first place.
4. End the practice of awarding business on the basis of a 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 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 usage that may
be encountered with the product or service.
10. Eliminate slogans, exhortations, and targets for the workforce 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 workforce.
1. Eliminate work standards (quotas) on the factory floor. Substitute with leadership.
[Please note that I am a fan of standards, but not a fan of pay-by-piece. I believe Deming
here means pay-by-piece rates]
2. Eliminate management by objective. Eliminate management by numbers and numerical
goals. Instead substitute with leadership.
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.
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 objectives.
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.

He also created a list of the “Seven Deadly Diseases,” which are also sensible.Lack of
constancy of purpose

1. Emphasis on short-term profits


2. Evaluation by performance, merit rating, or annual review of performance
3. Mobility of management
4. Running a company on visible figures alone
5. Excessive medical costs
6. Excessive costs of warranty, fueled by lawyers who work for contingency fees
So, here you have it. Overall, I like Deming and his contribution to Japan, although I am a
bit skeptical of his glorification. Now, go out, improve your quality, and organize your
industry!

PULL SYSTEM:

Imagine, you are on the way to a subway station and trying to pass the turnstile,
you notice your travel card is empty. What are you going to do?

Sure, you will go to the ticket machine and refill the card. In doing so, you are
already a part of a pull system based on a certain signal.

In other words, a pull system lets you consume only when you have a demand, at
the right time.

Aside from your trip to the subway, let’s explore more about pull systems and their
application.

What is a Pull System?

A pull system is a Lean technique for reducing the waste of any production process.
Applying a pull system allows you to start new work only when there is a customer
demand for it. This gives you the opportunity to reduce overhead and optimize
storage costs.

Why Is Pull Better Than Push?

Pull systems are part of the Lean manufacturing principles, born in the late 1940’s.
A lean pull system has the purpose of creating a workflow where work is pulled
only if there is a demand for it.

Essentially, the purpose of implementing a pull system is to build products based


on actual demand and not on forecasts. By doing so, your company can focus on
eliminating waste activities in the production process. As a result, you’ll be able to
optimize your resources and reduce the possibility of overstocking.
Furthermore, applying a pull system will allow you to deliver work just in time.
“Just-in-time” is a production model where deliverables are produced in order to
meet actual demands and avoid overstocking and push strategies.

When applying a push strategy, a company’s production is based on anticipated


demand, which can fail to correspond with the actual demand. Such an imbalance
can create unexpected financial gaps.
In knowledge work, the “just-in-time” concept can be applied in the same way as in
manufacturing – a work item has to be in progress only if there is a demand for
it.

This is the opposite of “Just in Case”, where companies somehow try to ensure
themselves by overproducing in case of higher demands somewhere in the future.

Apple is one of the brightest examples how a pull system can be successful. Have
you ever seen these long waiting queues in front of the Apple stores during the
latest release of iPhone?

Apple always creates a buzz around their new products and consumers are always
ready to buy. They want to pull the product from the stores.

Apple doesn’t overstock their shops or retail partners. They wait to see if there is a
demand for more and if it increases, they produce more. This way, the company
optimizes its resources and achieves high-cost efficiency.

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