Deming Principles

DEMING’S 14 POINTS
.
Point 1: Create Constancy of
purpose
 Continuous improvement of products
and services.
 Allocate resources to cater long term
needs.
Point 2: Learn the New Philosophy
 Companies must take a customer-
driven approach based on mutual
cooperation between labor and
management and a never-ending
cycle of improvement.
Point 3: Cease dependence on
Inspection
 Inspection - the principal means of quality
control.
 Routine inspection acknowledges that
defects are present, but does not add value
to the product.
 Inspection should be used as an
information-gathering tool for
improvement, not as a means of “assuring”
quality or blaming workers.
 Make it right for the first time.
Point 4: End lowest tender
contracts
 The supplier and manufacturer must be
considered as a macro organization.
 Deming urged businesses to establish long-
term relationships with fewer suppliers, leading
to loyalty and opportunities for mutual
improvement.
 Minimize total cost rather than initial cost
 Supply Chain Management (SCM) focuses
heavily on a system’s view of the supply chain
with the objective of minimizing total supply
chain costs and developing stronger
partnerships with suppliers.
Point 5: Improve Constantly and
Forever
 Improved design of goods and services comes from
understanding customer needs and continual market
surveys and other sources of feedback, and from
understanding the manufacturing and service delivery
process.
 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.
 Deming chain reaction: When quality improves,
productivity improves and costs decrease.
 Continuous improvement
Point 6: Institute Training
 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
 The job of management is leadership,
not supervision.
Supervision – simply overseeing and

directing work
Leadership – providing guidance to
help employees do their jobs with
less effort.
Point 8: Drive Out Fear
 Fear is manifasted in many ways:
fear of reprisal, fear of failure, fear of
the unknown, fear of relinquishing
control, and fear of change.
 Fear encourages short-term thinking
 Fear is a cultural issue for all
organizations
Point 9: Optimize the Efforts of
Teams
 Teamwork helps to break down barriers
between departments and individuals.
Barriers between functional areas occur

occurs when managers fear they might lose
power.
 Lack of cooperation leads to poor quality.

Point 10: Eliminate Exhortations
 Motivational approaches overlook the major
source of many problems – the system
 Eliminate slogans, posters etc if you do not
provide commensurate methods.
 Causes of variation stemming from the design
of the system are management’s problem, not
the workers’
Point 11: Enumerate Numerical
Quotas and Management by
Objective (MBO)
 Many organizations manage by the
numbers.
 Goals are useful, but numerical goals set
for others without incorporating a method
to reach the goal generate frustration and
resentment.
 Management must understand the system
and continually try to improve it, rather
than focus on short-term goals.
Point 12: Permit Pride in
Workmanship
 Deming believed that one of the biggest
barriers to pride in workmanship is
performance appraisal
Performance appraisal destroys teamwork by promoting
competition for limited resources, fosters mediocrity
because objectives typically are driven by numbers and
what the boss wants rather than by quality, focuses on
the short term and discourages risk taking, and
confounds the “people resources” with other resources.
 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
 Continuing, broad education for self-
improvement
 Organizations must invest in their
people at all levels to ensure success
in the long term
 Developing the worth of the individual
is a powerful motivation method
Point 14: Take Action
 Any culture change begins with top
management and includes everyone
 Team-based approach

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DEMING’S 14 POINTS

Supervision – simply overseeing and

Barriers between functional areas occur

 Lack of cooperation leads to poor quality.

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