Tuesday, July 19th, 2016
William Edwards Deming offered 14 key principles for management to follow for significantly improving the effectiveness of a business or organization. Many of the principles are philosophical. Others are more programmatic. All are transformative in nature. The points were first presented in his book Out of the Crisis. Below is the condensation of these 14 Points for Management.
- Create constancy of purpose towards improvement.
- Adopt the new philosophy of continual improvement.
- Cease dependence on inspection to achieve quality.
- End “lowest tender” contracts.
- Improve constantly and forever the system and thus decrease costs.
- Institute training on the job.
- Adopt and institute leadership.
- Drive out fear, so that everyone may work eﬀectively for the company.
- Break down barriers between departments and other organisations in the system.
- Eliminate slogans and exhortations.
- Eliminate arbitrary numerical targets.
- Remove barriers to pride of workmanship.
- Encourage education.
- Take action to accomplish the transformation.
Summing-up: Best efforts are not sufficient. Hopes without a method to achieve them will remain mere hopes. Short term profits can come by deferring maintenance, cutting research, etc. Long term profits can come by improving quality and productivity (they go hand in hand). Top management must be both committed to quality and know what to do to get it. Quality does not come by motivating people to work faster or harder. It comes by following the mentioned 14 principles.
- The book Out of the Crisis.