Summary of:
Out of the Crisis W. E. Deming
Göran Backlund - LiTH, Saab AB Patrik Sveder - Asmbly Technology, LiTH
980131
About the Author
W. Edwards Deming is the internationally renowned consultant who work led Japane industry into new principles of management an revolutionized their quality and productivity. The adoption of Dr. Deming's 14 point for management could help industry in the United States. Dr. Deming has enjoyed a worldwide practice for 40 years.娇兰粉底液
Preface
The aim of this book is transformation of the style of American management. The basic cau of sickness in American industry and resulting unemployment is failure of top management to manage.
1. Chain reaction: Quality, Productivity, Lower Costs, Capture the
Market
The author wants to illustrate a stable system of trouble in a manufacturing plant, and to explain that becau the system is stable, improvement of quality is the responsibility of the management. One of the key questions is "Why is it that productivity increas as quality improves?" and the answer is "Less rework". Improvement of quality transfers waste of man-hours and of machine-time into the manufacture of good product and better rvice. The result is a chain reaction - lower costs, better competitive position, happier people on the job, jobs, and more jobs.
The Japane have adopted this view and they go right ahead and improve the process without regard to figures, it has turned out that there is nothing to loo in good quality. The chain reaction is illustrated below.
Japan has also showed that abundance of natural resources is not a requirement for prosperity. The wealth of a nation depends on its people, management, and government, more than on its natural resources. The problem is where to find good management. Since an improductive system is stable any substantial improvement must come from action on the system, and the responsibility lies on management.
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In one of the numerous examples of productivity increa, the gains were listed for one particular ca:
•Quality up
•Production of good product up x percent
•Capacity up x percent
•Lower cost per unit of good product
•Profit improved
•Customer happier
•Everybody happier
The gains were immediate (ven weeks in the actual ca); cost, zero; same work force, same burden, no investment in new machinery. This is an example of gain in productivity accomplished by a change in the system, namely, improvement in definitions, effected by the management, to help pe
ople to work smarter, not harder. The author refers to A.V. Feigenbaum who estimated that 15-40 per cent of the manufacturer's costs of almost any American product is for waste embedded in it - waste of human effort, waste of machine-time, nonproductive u of accompanying burden.
2. Principles for Transformation of Western Management
The purpo of this chapter and of the next one is to explain the elements of the transformation that must take place. There must be an awakening to the crisis, followed by action, management's job. This transformation of management is not done by everyone doing his best, there is a need for a methodology, a theory. The author offers a method, a plan, for this transformation that can be condend into 14 points, e below.
The author focus on management and its incompetence to manage. The author refers to questions and statements of Dr Lloyd S. Nelson (Director of Statistical Methods for the Nashua Corp.):
1.The central problem of management, in all its aspects, is to understand better the meaning of
variation, and to extract the information contained in variation.
2.If you can improve productivity, or sales, or quality, or anything el, by, say, 5 per cent
next year without a rational plan for improvement, then why were you not doing it last year?
3.The most important figures needed for management of any organization are unknown and
unknowable.
4.In the state of statistical control, action initiated on appearance of a defect will be ineffective
女名字好听的and will cau more trouble. What is needed is improvement of the process, by reduction of variation, or by change of level, or both.
The author's claims the 14 points to be applicable to all kinds of organizations, small, big, rvice industry as well as manufacturing or even a division within a company. They constitute
a basis for transformation of American industry.
1.Create constancy of purpo toward improvement of product and rvice, with the aim to
become competitive and 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.Cea dependence on inspection to achieve quality. Eliminate the need for inspection on a
mass basis by building quality into the product in the first place.
4.End the practice of awarding business on the basis of price tag. Instead, minimize total cost.
Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.碱性磷酸酶低是怎么回事
5.Improve constantly and forever the system of production and rvice, to improve quality
and productivity, and this constantly decrea costs.
邮票用英语怎么说6.Institute training on the job.
7.Institute leadership. The aim of supervision should be to help people and machines and
gadgets to 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 many work effectively for the company.
9.Break down barriers between departments. People in rearch, design, sales, and production
must work as a team, to foree problems of production and in u that may be encountered with the product or rvice.
10.E liminate slogans, exhortations, ant targets for the work force asking for zero defects and白羊座图片
new levels of productivity. Such exhortations only create adversal relationships, as the bulk of the caus of low quality and low productivity belong to the system and thus lie beyond the power of the work force.
11.a) Eliminate work standards (quotas) on the factory floor. Substitute leadership.
演讲稿高中b) Eliminate management by objective. Eliminate management by numbers, numerical goals.
Substitute leadership.
12.a) 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.
b) Remove barriers that rob people in management and in engineering of their right to pride
of workmanship. This means abolishment of the annual or merit ration and of management by objective.
13.I nstitute a vigorous program of education and lf-improvement.
14.P ut everybody in the company to work to accomplish the transformation. The
transformation is everybody's job.
The 14 points are elaborated below.
1. Create consistency of purpo for improvement of product and rvice. Establishment of constancy of purpo means acceptance of obligations like:
a.Innovate. Allocate resources for long-term planning. Plans for the future call for
consideration of; new technologies, training, cost and customer.
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b.Put resources into rearch and education
c.Constantly improve design of product and rvice. The consumer is the most important part
of the production line.
2. Adopt the new philosophy. We are in a new economic age, created by Japan. American industry cannot be protected by government regulations, but instead, American management has to change.
3. Cea dependence on mass inspection. Routine 100% inspection to improve quality is equivalent to planning for defects, acknowledgment that the process has not the capability required for the specifications. When product leaves the door of the supplier, it is too late to do anything about its quality. Quality comes not from inspections, but from improvement of
the production process. Inspection, scrap, downgrading, and rework are not corrective actions on the process.
4. End the practice of awarding business on the basis of price tag alone. Price has no meaning without a measure of the quality being purchad. Without adequate measures of quality, business drifts to the lowest bidder, low quality and high cost being the inevitable result. The purchasing depar
tment must change its focus from lowest initial cost of material purchad to lowest total cost. A long-term relationship between purchar and supplier is necessary for best economy. How can a supplier be innovative and develop economy in his production process when he can only look forward to short-term business with a purchar? In the long run, one comes out ahead by working with the single supplier, provided that he upholds his responsibility for continual improvement.
The same reasoning goes for a vendor with multiple shipping points - a supplier with two shipping points may rve a customer with two plants by specifying one shipping point for one plant, the other shipping point for the other, no substitution or mixing. Two shipping points from the same vendor is just as bad as two suppliers. What is needed is a state of mutual confidence between purchar and vendor, a dialogue: "This is what I can do for you. Here is what you might do for me".
5. Improve constantly and forever the system of production and rvice. Quality must be built in at the design stage. Teamwork in design is fundamental. There must be a continual improvement in test methods and ever better understanding of the customer's needs and of the way he us and misus a product. Never-ending improvement in manufacturing means continual work with vendors and eventual reduction to one vendor and one shipping point for any one item. Improvement of the process includes better allocation of human effort. It includes lection of people, their placement, th
eir training, to give everyone, including production workers, a chance to advance their learning and to contribute the best of their talents.
6. Institute training. Training must be totally reconstructed. People learn in different ways. Some have difficulty to learn by written instructions (dyslexia). Others have difficulty to learn by the spoken word (dysphasia). Some people learn best by pictures; others by imitation; some by a combination of the methods. The greatest waste in America is failure to u the abilities of people.
Unfortunately the money spent on training, retraining, and education does not show on the balance sheet; it does not increa the tangible net worth of a company. In contrast, money spent for equipment is on the balance sheet, and increas the prent net worth of the company.
7. Adopt and institute leadership. The job of management is not supervision, but leadership. Management must work on sources of improvement, the intent of quality of product and of rvice, and on the translation of the intent into design and actual product.
8. Drive out fear. No one can put in his best performance unless he feels cure. Secure means without fear, not afraid to express ideas, not afraid to ask questions. A common denominator of fear in any form, anywhere, is loss from impaired performance and padded figures. Another loss from fea
r is inability to rve the best interests of the company through necessity to satisfy specified rules, or the necessity to satisfy, at all costs, a quota of production.