William Edwards Deming changed not only Toyota, but also the whole world by asking important questions that have improved health care, education, consumer products, job satisfaction, and government. Companies must answer the following Deming’s questions in order to succeed in their business: “What business are we in? What business ought that we be in? Is anybody here not putting forth his best efforts? Has the system of reward in a company made it difficult in the past for people to work together? What will we be doing a year from now, 5 years from now, or 10 years from now? What would you mean by improvement? What do you mean by a good job?” The purpose of those questions was to change the ...view middle of the document...
Deming’s seminars, the diagram on the left side of this paragraph was drawn by him and presented for Japanese about continuously improvement. Everybody believed that Dr. Deming mad a significant contribution to the recovery of Japan's economy at that time. Consequently, The Emperor of Japan awarded Dr. Deming the second honor medal of the Sacred Treasure in 1960.
Dr. Deming mentioned that customers always demand higher quality and governments impose stricter regulations. Therefore, the basic need for any organization is to continuously improve cooperation and communication among and between managers, workers, suppliers, customers and the larger world which the enterprise exists. Dr. Deming developed the following 14 points in the late of 1970 which lead businesses to survive in a competitive environment:
1. Constancy of purpose
Constancy of purpose answers the questions, “What are we doing? Why are we doing it?” By answering those questions, firms can have an unambiguous view and vision of their future. Without constancy of purpose, companies will have no competitive advantage and can barely survive in business.
2. Everybody wins
Dr. Deming changed the tradition way of winning from one wins and the rest lose to everybody wins. Dr. Deming intended that “win-win” strategy has to be taught to suppliers, customers, employees, and competitors in order to excel quality depending on everybody’s full cooperation and efficiency. By applying “win-win” technique, everyone is forced to work hard not to win because everyone will lose if someone looses in the chain.
3. Design quality in
Dr. Deming emphasized on designing quality into the process and eliminating mass inspection as much as possible. In other words, instead of focusing on mass inspection and detection cost, organizations should focus on prevention cost as well as process enhancement and quality development at the beginning of the production process.
4. Do not buy on price tag alone
Although Dr. Deming said that “Buying from a single supplier, always working with that supplier to increase his quality and decrease his cost so the supplier can help you do the same,” it is highly recommended to spread the risk by having more than one supplier especially for a large-sized business. Dr. Deming, however, intended that customers and buyers should focus more on building a long-term relationship, loyalty, and trust.
5. Continuous improvement
People can never perfect things, yet they can make them better. In Japanese language, KAIZEN (改善) is the keys to continuous improvement. In order to improve both quality and productivity, Kaizen has to be employed efficiently and effectively throughout important elements such as allowing real issues to emerge, reducing blaming, Increasing trust and commitment, improving the quality of communication, tackling problems - address root causes, depending on those directly involved, and using "Do It Now" Urgency...