What are Dr

8/7/2019 What are Dr

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What are Dr.Demings 14

Points?

1. Constancy of purpose

Create constancy of purpose for continual improvement of products and service to society,allocating resources to provide for long range needs rather than only short term profitability, witha plan to become competitive, to stay in business, and to provide jobs.

2. The new philosophy

Adopt the new philosophy. We are in a new economic age, created in Japan. We can no longer live with commonly accepted levels of delays, mistakes, defective materials, and defectiveworkmanship. Transformation of Western management style is necessary to halt the continueddecline of business and industry.

3. Cease dependence on mass inspection

Eliminate the need for mass inspection as the way of life to achieve quality by building quality intothe product in the first place. Require statistical evidence of built in quality in both manufacturingand purchasing functions.

4. End lowest tender contracts

End the practice of awarding business solely on the basis of price tag. Instead require meaningfulmeasures of quality along with price. Reduce the number of suppliers for the same item byeliminating those that do not qualify with statistical and other evidence of quality. The aim is tominimize total cost, not merely initial cost, by minimizing variation. This may be achieved bymoving toward a single supplier for any one item, on a long term relationship of loyalty and trust.Purchasing managers have a new job, and must learn it.

5. Improve every process

Improve constantly and forever every process for planning, production, and service. Searchcontinually for problems in order to improve every activity in the company, to improve quality andproductivity, and thus to constantly decrease costs. Institute innovation and constantimprovement of product, service, and process. It is management's job to work continually on thesystem (design, incoming materials, maintenance, improvement of machines, supervision,training, retraining).

6. Institute training on the job

Institute modern methods of training on the job for all, including management, to make better use


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of every employee. New skills are required to keep up with changes in materials, methods,product and service design, machinery, techniques, and service.

7. Institute leadership

Adopt and institute leadership aimed at helping people do a better job. The responsibility of

managers and supervisors must be changed from sheer numbers to quality. Improvement of quality will automatically improve productivity. Management must ensure that immediate action istaken on reports of inherited defects, maintenance requirements, poor tools, fuzzy operationaldefinitions, and all conditions detrimental to quality.

8. Drive out fear

Encourage effective two way communication and other means to drive out fear throughout theorganization so that everybody may work effectively and more productively for the company.

9. Break down barriers

Break down barriers between departments and staff areas. People in different areas, such asLeasing, Maintenance, Administration, must work in teams to tackle problems that may beencountered with products or service.

10. Eliminate exhortations

Eliminate the use of slogans, posters and exhortations for the work force, demanding ZeroDefects and new levels of productivity, without providing methods. Such exhortations only create

adversarial relationships; the bulk of the causes of low quality and low productivity belong to thesystem, and thus lie beyond the power of the work force.

11. Eliminate arbitrary numerical targets

Eliminate work standards that prescribe quotas for the work force and numerical goals for peoplein management. Substitute aids and helpful leadership in order to achieve continual improvementof quality and productivity

12. Permit pride of workmanship

Remove the barriers that rob hourly workers, and people in management, of their right to pride of workmanship. This implies, among other things, abolition of the annual merit rating (appraisal of

performance) and of Management by Objective. Again, the responsibility of managers,supervisors, foremen must be changed from sheer numbers to quality.

13. Encourage education

Institute a vigorous program of education, and encourage self improvement for everyone. Whatan organization needs is not just good people; it needs people that are improving with education.Advances in competitive position will have their roots in knowledge.


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14. Top management commitment and action

Clearly define top management's permanent commitment to ever improving quality andproductivity, and their obligation to implement all of these principles. Indeed, it is not enough that

top management commit themselves for life to quality and productivity. They must know what it isthat they are committed to that is, what they must do. Create a structure in top managementthat will push every day on the preceding 13 Points, and take action in order to accomplish thetransformation. Support is not enough: action is required!

DEMING'S 14 PRINCIPLES PRINCIPLE 1 : "Create a constancy of purpose"

Define the problems of today and the future Allocate resources for long-term planning Allocate resources for research and education Constantly improve design of product and service

PRINCIPLE 2 : "Adopt the new philosophy" Quality costs less not more Superstitious learning The call for major change Stop looking at your competition and look at your customer instead

PRINCIPLE 3 : "Cease dependence on inspection" Quality does not come from inspection Mass inspection is unreliable, costly, and ineffective Inspectors fail to agree with each other Inspection should be used to collect data for process control

PRINCIPLE 4 : "Do not award business basedon price tag alone" Price alone has no meaning Change focus from lowest initial cost to lowest total cost

Work toward a single source and long term relationship Establish a mutual confidence and aid between purchaser and vendor PRINCIPLE 5 : "Improve constantly the system of production and service"

Quality starts with the intent of management Teamwork in design is fundamental Forever, continue to reduce waste and continue to improve Putting out fires is not improvement of the process

PRINCIPLE 6 : "Institute training" Management must provide the setting where workers can be successful Management must remove the inhibitors to good work Management needs an appreciation of variation This is management's new role.

PRINCIPLE 7: "Adopt and institute leadership" MBO's Work standards Meet specifications Zero defects Appraisal of performance

Replace with leadership Leaders must:

Remove barriers to pride of workmanship Know the work they supervise Know the difference between special and common cause of variation


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Principle 8 : "Drive out fear" The common denominator of fear The fear of knowledge Performance appraisals Management by fear or numbers

PRINCIPLE 9 : "Break barriers among staff areas"

Know your internal suppliers and customers Promote team work PRINCIPLE 10 : "Eliminate slogans, exhortations,and targets

They are directed at the wrong group They generate frustration and resentment Use posters that explain what management is doing to improve the work environment

PRINCIPLE 11 :"Eliminate numerical quotas" They impede quality They reduce production A person's job becomes meeting a quota

PRINCIPLE 12 : "Remove barriers" Performance appraisal systems Production rates Financial management systems Allow people to take pride in their workmanship

PRINCIPLE 13 :"Institute a program of education and self-improvement" Commitment to lifelong employment Overtime and education Work with higher education of needs Develop team building skills in children

PRINCIPLE 14 : "Take action to accomplish thetransformation" Management must: Struggle over the fourteen points Take pride in the new philosophy Include the critical mass of people in the change Learn and use the Shewhart cycle

Tuesday, January 19th, 2010

The 14 Points


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1. Create a constant purpose toward improvement. Plan for quality in the long term. Resist reacting with short-term solutions. Don't just do the same things better find better things to do.

Predict and prepare for future challenges, and always have thegoal of getting better.

2. Adopt the new philosophy. Embrace quality throughout the organization. Put your customers' needs first, rather than react to competitivepressure and design products and services to meet those needs. Be prepared for a major change in the way business is done. It'sabout leading, not simply managing. Create your quality vision, and implement it.

3. Stop depending on inspections. Inspections are costly and unreliable and they don't improvequality, they merely find a lack of quality. Build quality into the process from start to finish. Don't just find what you did wrong eliminate the "wrongs"altogether. Use statistical control methods not physical inspections alone to prove that the process is working.

4. Use a single supplier for any one item. Quality relies on consistency the less variation you have in theinput, the less variation you'll have in the output. Look at suppliers as your partners in quality. Encourage them tospend time improving their own quality they shouldn't compete for your business based on price alone. Analyze the total cost to you, not just the initial cost of the product. Use quality statistics to ensure that suppliers meet your qualitystandards.

5. Improve constantly and forever. Continuously improve your systems and processes. Demingpromoted the Plan-Do-Check-Act approach to process analysis andimprovement. Emphasize training and education so everyone can do their jobsbetter. Use kaizen as a model to reduce waste and to improveproductivity, effectiveness, and safety.

6. Use training on the job. Train for consistency to help reduce variation. Build a foundation of common knowledge.
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Allow workers to understand their roles in the "big picture." Encourage staff to learn from one another, and provide a cultureand environment for effective teamwork.

7. Implement leadership. Expect your supervisors and managers to understand their workers and the processes they use. Don't simply supervise provide support and resources so thateach staff member can do his or her best. Be a coach instead of apoliceman. Figure out what each person actually needs to do his or her best. Emphasize the importance of participative management andtransformational leadership. Find ways to reach full potential, and don't just focus on meetingtargets and quotas.

8. Eliminate fear. Allow people to perform at their best by ensuring that they're notafraid to express ideas or concerns. Let everyone know that the goal is to achieve high quality bydoing more things right and that you're not interested in blamingpeople when mistakes happen. Make workers feel valued, and encourage them to look for better ways to do things. Ensure that your leaders are approachable and that they workwith teams to act in the company's best interests. Use open and honest communication to remove fear from the

organization.9. Break down barriers between departments.

Build the "internal customer" concept recognize that eachdepartment or function serves other departments that use their output. Build a shared vision. Use cross-functional teamwork to build understanding and reduceadversarial relationships. Focus on collaboration and consensus instead of compromise.

10. Get rid of unclear slogans. Let people know exactly what you want don't make them guess."Excellence in service" is short and memorable, but what does itmean? How is it achieved? The message is clearer in a slogan like"You can do better if you try." Don't let words and nice-sounding phrases replace effectiveleadership. Outline your expectations, and then praise people face-to-face for doing good work.


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11. Eliminate management by objectives. Look at how the process is carried out, not just numerical targets.Deming said that production targets encourage high output and lowquality. Provide support and resources so that production levels and

quality are high and achievable. Measure the process rather than the people behind the process.

Tip:There are situations in which approaches like Management By Objectives areappropriate, for example, in motivating sales-people. As Deming points out, however,there are many situations where a focus on objectives can lead people to cut cornerswith quality. You'll need to decide for yourself whether or not to use these approaches. If you do, make sure that you think through the behaviors that your objectives willmotivate.

12. Remove barriers to pride of workmanship. Allow everyone to take pride in their work without being rated or compared. Treat workers the same, and don't make them compete with other workers for monetary or other rewards. Over time, the quality systemwill naturally raise the level of everyone's work to an equally highlevel.

13. Implement education and self-improvement. Improve the current skills of workers. Encourage people to learn new skills to prepare for futurechanges and challenges. Build skills to make your workforce more adaptable to change,and better able to find and achieve improvements.

14. Make "transformation" everyone's job. Improve your overall organization by having each person take astep toward quality. Analyze each small step, and understand how it fits into the larger picture. Use effective change management principles to introduce the newphilosophy and ideas in Deming's 14 points.

How an organization can do strategic quality planning?

The process starts with the principles that quality and customer satisfaction are the center of an organizations future. It brings together all the key stakeholders.
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The strategic planning can be performed by any organization. It can be highly effective,allowing the organizations to do the right thing at the right time, every time.

There are seven steps to strategic Quality Planning:

1. Discover customer needs2. Customer positioning3. Predict the future4. Gap analysis5. Closing the gap6. Alignment7. Implementation

1. Customer Needs: The first step is to discover the future needs of the customers. Whowill they be? Will your customer base change? What will they want? How will theywant? How will the organization meet and exceed expectations?

2. Customer Positioning: Next, the planners determine where organization wants to bein relation to the customers. Do they want to retain, reduce, or expand the customer base.Product or services with poor quality performance should be targeted for breakthrough or eliminated. The organizations needs to concentrate its efforts on areas of excellence.

3. Predict the future: Next planners must look into their crystal balls to predict thefuture conditions that will affect their product or service. Demographics, economicsforecasts, and technical assessments or projections are tools that help predict the future.4. Gap Analysis : This step requires the planner to identify the gaps between the currentstate and the future state of the organization. An analysis of the core values and concepts

is an excellent technique for pinpointing gaps.

5. Closing the Gap: The plan can now be developed to close the gap by establishinggoals and responsibilities. All stakeholders should be included in the development of theplan.

6. Alignment: As the plan is developed, it must be aligned with the mission, vision, andcore values and concepts of the organization. Without this alignment, the plan will havelittle chance of success.

7. Implementation: This last step is frequently the most difficult. Resources must be

allocated to collecting data, designing changes, and overcoming resistance to change.Also part of this step is the monitoring activity to ensure that progress is being made. Theplanning group should meet at least once a year to assess progress and take any correctiveaction.


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Principles Of TQM

1- Be Customer focused:

whatever you do for quality improvement, remember that ONLY

customers determine the level of quality, whatever you do to foster

quality improvement, training employees, integrating quality into

processes management, ONLY customers determine whether your

efforts were worthwhile.

2- Insure Total Employee Involvement:

This done after you remove fear from work place, then empower

employee ... you provide the proper environment .

3- Process Centered:
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Fundamental part of TQM is to focus on Process thinking.

4- Integrated system:

All employee must know business mission and vision, must monitor

the process. An integrated business system may be modeled by

MBNQA or ISO 9000.

5- Strategic and systematic approach:

Strategic plan must integrate quality as core component.

6- Continual Improvement:

Using analytical and creative thinking in finding ways to become more

effective.

7- Fact Based Decision Making:

Decision making must be ONLY on data, not personal thinking or

situational.

8- Communication :

Communication strategy, method and timeliness must be well defined.

CUSTOMER SATISFACTION
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Characteristics of customer satisfaction.1. it is far from simple.

2. it is not an objective statistic, but more of feeling and attitude.3. therefore like people's opinion and feeling, it is subjective by nature.4. because of this subjective nature, it is difficult to measure.5. the measurement of customer satisfaction is not precise.6. the customer satisfaction should not be viewed in vacuum, i.e., it should becompared with the level of satisfaction they have with competitor's product areservice.

Types of customers.

1. Internal customers - each of them receives a product or service and inexchange, providers a product or service.2. external customers - one who uses the product or service, the one whopurchase the product, or the who influences the sale of theproduct.One basic concept of TQM is focus on customers, both internal and external.

Customer perception of quality.

In an orgabnization there is no acceptable quality level because the customer'sneeds, values and expectations are constantly changing and becoming moredemanding.An American Society for Quality (ASQ) survey reveals the following end-userperception of quality 1.Performance2.Features3.Service4. Warranty 5. Price6. Reputation.

Price.
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today customers are ready to pay a higher price to obtain value. Therefore itbecomes increasingly important for an organization to identify, verify, andupdate each customer's perception of value against those of its com[petitors.( for other perceptions please refer unit - 1 notes)

CUSTOMER COMPLAINTSUnlike the customer's feedback the customer complaints are reactive, and they are important in gaining data on customer perceptions.A disatisfied customer can easily become a lost customer because of theirfrustrations.This customer dissatisfaction become a measure for organizationalprocess improvement measures.

Every single complaint should be accepted, analyzed, and acted upon to againwin over customer's confidence.Since more than 50% of the dissatisfiedcustomers will buy again if they are complaint has been heard and resolved. By adopting a positive approach the complaints can be seen as an oppurtunity toobtain information and provide a positve service to the customer.

Handling the customer complaints

1. investigaste customer's experiences by actively receiving the customer feedback and then acting promptly.2. develop procedures for complaint resolution that include empowering front-line employee.3. analyze complaints, try to put them in a category for speedy response.4. Work to identify process and materuial variations and then eliminaste the rootcause.'more inspection' is not a corrective action.5. Afetr receiving the response, a senior manager should contact the customerand strive top resolve the concern6. Establish customer satsfaction measures and constantly monitor them7. Communicate complaint information, as well as the results of all inquiries andsolutions, to all people in the organization.8. provide a monthly complaint report to the quality council for their evalutionand if needed, the assignment of process im[provement teams.9. identify customer's expectations in advance rather than afterward throughcomplaint analysis.

SERVICE QUALITY

Customer service is the set of activities an orgaqnization uses to win and retaincustomers' satisfaction. it can be provided before, during, and after the sale fo theproduct.Elements of customer service are:

Organization


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1. identify each market segment2.write down the requirements3.communicate the requirements4.organise processes5.organize the physical spaces

Customer care

6. meet the customer's expectations7. get the customer point of view 8. deliver what is promised9. make the customer feel valued10.respond to all complaints11.over respond to the customer.12.provide a clean and comfortable customer reception environment.

Communication

13. optimize the trade fo between time and personal attention14. minimize the number of contact points.15 provide pleasant, knoweledgble, and enthusiastic employees.16. write documents in customer friendly language.

front-line people

17. hire people who like people18. challenge them to develop better methods.19. give them a authority to solve problems20. serve them as internal customers21. be sure they are adequetly trained.22. recognize and reward performance.

Leadership

23. lead by example24. listen to the front line employee25. strive for continuous process improvement.

CUSTOMER RETENTION

Customer retention represents the activities that produces the necessary customer satisfaction which in turn creates the customer loyalty.customer retention moves customer satisfaction to the next level by determiningwhat is truly important to the customers and making sure that the customersatisfaction system focuses valuble resources on things that are important to thecustomer. Customer rettention is the connection between customer satisfactionand the bottom line.


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World-class companies knoe that continuous improvement and customersatisfaction should go hand-in-hand.

Improved service to the customer is a costlier affair, so an organization mustdetermine its return on the service invesment. For this the important service

elements that significantly improve revenues and market share shuld bedetermined.

One survey indicates, it requires five times of effort to win a new customer thanretaining a present customer. In this context customer retention is important fororganizational sucess.

EMPLOYEE INVOLVEMENT

Japanese management emphasizes the need to consider employee as a valubleresources rather than treating them as a mere tools for production.Employee involvement is one approach to improve quality and productivity. It isnot an replacement for management nor is it the final word in quality improvement, it aims at better meeting of organizational goals at all levels.

Motivation

Knowledge fo motivation helps us to understand the utilization fo employeeinvolvement to achieve process improvement.

THEORIES OF MOTIVATION

He explained the motivation interms of a heirarchy of needs and that there werefive levels.These are survival, security, social, esteem, and self-actualization.
http://photos1.blogger.com/blogger/1217/392/1600/motivation.gif


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( refer the above figure)

It is important to note that as employees move up the heirarchy, they willimmedietly revert back to the previous level if they feel threatned.

HERZBERG'S TWO FACTOR THEORY Herzberg extends the Maslow's theory by using empirical research oin employeemotivation.

He found that people were motivated by the motivators ( intrinsic factors) likerecognition, responsibility, achievement, advancement and the work itself.In addition he found that bad feelings were associated with preventabledissatisfiers or hygiene factors (extrinsic factors) like low salary, minimal fringebenefits, poor working conditions, ill-defined organizational policies andmediocre(ordinary) supervision.

He also explained that the presence of extrinsic factors( for example goodworking condition) does not produce any motivation but their absence will createdissatifaction among employees.In a same manner the absence of intrinsic factors ( for example advancement)does not produce any dissatisfaction but their presence will provide strong levelof motivation.
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Mcgregor's Theory X and Theory Y

How to motivate work force

1. Know thyself 2. Know your employees3. Establish a positive attitude4. Share the goals5. Monitor progress6. Develop intersting work 7. Communicate8. Celebrate sucess

EMPOWERMENT

The dictionary meaning of the term empowerment is to invest people withauthority.Its purpose is to tap the enourmous potential that lies within every worker.

An operational definition is as follows:

Empowerment is an environment in which people have the ability, theconfidence, and the commitment to take the responsibility and ownership toimprove the process and initiate the necessary steps to satisfy customerrequirements within well defined boundaries in order to achieve organizationalvalues and goals.

Empowerment is nothing unusual, people generally want to be more in charge of their own jobs and carrers. afterall, they do that sucessfully in their personal lives
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every day. Most people appreciate and value the trust and respopnsibility.Thisempowerment helps greatly in eliminating resistence to changes.

Empowerment is different from delegation or job enrichment, which meansdistributing or entrusting work to others.In empowerment employee is held

responsible for accomplishing a whole task.i.e., employee becomes processowner, thus not only responsible but also accountable.

Three conditions are necessary for empowering employees

1. Everyone must understand the need for change2. The system needs to change to the new paradigm( model/standard)3. The organization must enable its employees.

TEAMS

Teams are very effective in solving all quality and productivity problems.

Team is defined as a group of peopleworking together to achieve commonobjectives or goals.

Teamwork is the cumulative actions of the team during which each member of the team subordinates his interests and opinions to fulfill the objectives or goalsof the group.Many heads are better than one, especially in meeting ever-changing customerneeds.Each member of the team have special ability that can be used for theproblem.Many processes are so complex that one person cannot able solvecompletely.
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Based on the synergic effect, whole is greater than sum of its parts.Team work isbetter than sum of its member contribution.Team builds a rapport with each other that allows everyone to do a better job.Teams provide the vehicle for improved communication.

Types of teams Process improvement teams cross-functional teams natural work teams self-directed/ self managed teams

Characteristics of successful teamsSponsorTeam charterTeam competitiontraininggroud rulesclear objectivesaccountability well-defined decision proceduresresourcestrusteffective problem solvingopen communicationappropriate leadershipbalanced participationcohesiveness.

3. Maslow's Pyramid Of Basic Human Needs.


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1. Physiological Needs : Physiological needs are the basic needs for sustaining

human life. These needs include food, shelter, clothing, rest, air, water, sleep and

sexual satisfaction. These basic human needs (also called biological needs) lie at the

lowest level in the hierarchy of needs as they have priority over all other needs.

These needs cannot be postponed for long. Unless and until these basic

physiological needs are satisfied to the required extent, other needs do not motivate

an employee. A hungry person, for example, is just not in a position to think of

anything else except his hunger or food. According to Maslow, 'man lives by bread

alone,' when there is no bread. The management attempts to meet such physiological

needs through fair wages.

2. Security or Safety Needs : These are the needs connected with the

psychological fear of loss of job, property, natural calamities or hazards, etc. An

employee wants protection from such types of fear. He prefers adequate safety or

security in this regard i.e. protection from physical danger, security of job, pension for

old age, insurance cover for life, etc. The safety needs come after meeting the

physiological needs. Such physiological needs lose their motivational potential whenthey are satisfied. As a result, safety needs replace them. They begin to manifest

themselves and dominate human behavior. Safety needs act as motivational forces

only if they are unsatisfied.

3. Social Needs : An employee is a human being is rightly treated as a social

animal. He desires to stay in group. He feels that he should belong to one or the other
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group and the member of the group should accept him with love and affection. Every

person desires to be affiliated to such groups. This is treated as basic social need of

an individual. He also feels that he should be loved by the other members. He needs

friends and interaction with his friends and superiors of the group such as fellow

employees or superiors. Social needs occupy third position in the hierarchy of needs.

4. Esteem Needs : This category of needs include the need to be respected by

others, need to be appreciated by others, need to have power and finally prestigious

position. Once the previous needs are satisfied, a person feels to be held in esteem

both by himself and also by others. Thus, esteem needs are two fold in nature. Self

esteem needs include those for self confidence, self-respect, competence, etc. The

second groups of esteem needs are those related to one's status, reputation,

recognition and appreciation by others. This is a type of personal ego which needs to

be satisfied. The Organisation can satisfy this need (ego) by giving recognition to the

good work of employees. Esteem needs do not assume the motivational properties

unless the previous needs are satisfied.

5. Self-actualisation Needs : This is the highest among the needs in the hierarchy

of needs advocated by Maslow. Self actualisation is the desire to become what one is

capable of becoming. It is a 'growth' need. A worker must work efficiently if he is to be

ultimately happy. Here, a person feels that he should accomplish something in his

fife. He want5 to utilise his potentials to the maximum extent and desires to become

what one is capable of becoming. A person desires to have challenges and achievessomething special in his life or in the area of his specialization. Though every one is

capable of self-actualization, many do not reach this stage. This need is fully satisfied

rarely.

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