Dr W Edwards Deming
A Theory of Management
Dr Deming was
an American statistician, who contributed significantly to the postwar quality revolution
in Japan in the 1950s and in the West in the 1980s and 1990s. His history and achievements are detailed on the W Edwards Deming Institute site www.deming.org and in praticular the files on "the man" www.deming.org/theman/index.html
The Learning Network in Aberdeen is named after Edwards Deming because of his belief in knowledge. Knowledge not methods, nor the latest techniques will drive our continued development. Deming's aim as stated in the preface of The New Economics - his last book was:
"The aim of this book is to start the reader on the road to knowledge, and create a yearning for more knowledge"
The learning network embraces the above aim by incorporating the broad range of knowledge that is available to us. See Bibliography etc
To provide initial guidance, and provide a structure for our development, Edwards Deming left us a model of concepts that he called The System of Profound Knowledge. From is earlier book "Out of the Crisis" we have his 14 actions points to guide us out of the crisis. He also identified disease that stand in our way.
- The System of Profound Knowledge
- 14 Action Points to Guide Us Out of the Crisis"
- Diseases that Stand in the Way
- International Deming Links
- The Kerridge Papers
With deceptively simple
concepts and plain language Dr Deming challenges the prevailing style of managemen. He describes the knowledge necessary for transformation in four parts, all related to each other:
- Appreciation of a system
- Knowledge about variation
- Theory of knowledge
- Psychology
One need not be eminent in any part nor in all four parts in order to understand it and apply it. The 14 action points for management (see below) follow naturally as the application of this knowledge.
The various segments of the system of profound knowledge proposed cannot be separated. They interact with each other. Thus knowledge of psychology is incomplete without knowledge of variation. Etc etc
Appreciation for a System
A system is a network of interdependent components that work together to try to accomplish the aim of the system. A system must have an aim. The greater the interdependence between components, the greater will be the need for communication and co-operation between them. An example of a system, well optimised, is a good orchestra. The players are not there to play solos as prima donnas, each trying to catch the ear of the listener. They are there to support each other. Individually, they need not be the best players in the country.
Knowledge about Variation
Life is variation. There will always be variation between people, output, service, products etc. All data collected contains variation. Systems can be stable and contain expected variation, other systems will be unstable with unexpected variation. Management action relative to expected and unexpected variation is very different. With expected variation improvement is secured by improving the process or system. With unexpected variation management will seek to identify the cause of the instability. It is a common costly mistake to fail to differentiate between these two types of variation.
Theory of Knowledge
Management is prediction. The theory of knowledge helps us to understand that management in any form is prediction. The simplest plan - how may I go home tonight - requires prediction that my car will start and run, or that the bus will come, or the train.
Knowledge is built on theory. The theory of knowledge teaches us that a statement, if it conveys knowledge, predicts future outcome, with the risk of being wrong, and that it fits without failure observations of the past. Rational prediction requires theory and builds knowledge through systematic revision and extension of theory based on comparison of prediction with observation.
Psychology
Psychology helps us to understand people, interaction between people and circumstances, interaction between customer and supplier, interaction between teacher and pupil, interaction between manager and his/her people and any system of management.
People are different from one another. We learn in different ways and at different speeds. There are the positive intrinsic sources of motivation and extrinsic sources of motivation. One is born with a natural inclination to learn. Learning is a source of innovation. One inherits the right to enjoy work. Good management helps us to nurture and preserve these positive innate attributes of people.
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His 14 action points for management (from his book "Out of the Crisis") follow naturally as application of the System of Profound Knowledge, for transformation from the present style of management to one of optimisation
- Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.
- Adopt the new philosophy.
(see System of Profound Knowledge above) We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on the leadership of change
- Cease 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.
- End practice of awarding business on the basis of price tag,
instead minimise total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.
- Improve constantly
and forever the system of production and service, to improve quality and productivity, and thus constantly reduce costs,
- Institute training on the job
- Institute Leadership
(see point 12). The aim of leadership should be to help people and machines and gadgets to do a better job. Leadership of management is in need of overhaul, as well as leadership of production workers
- Drive out fear
, so that everyone may work effectively for the company.
- Break down barriers between departments.
People in research, design, sales, and production must work as a team, to foresee problems of production, and in use, that may be encountered with the product or service.
- Eliminate slogans, exhortations, and targets
for work force asking for zero defects and new levels of productivity
- Eliminate management by objective.
Eliminate management by numbers, numerical goals. Eliminate work standards (quotas) on the factory floor. Substitute leadership.
- Remove barriers that rob people of their right to pride of workmanship.
This means inter alia, abolishment of the annual or merit rating and of management by objective, management by numbers. The responsibility of supervisors must change from sheer numbers to quality.
- Institute a vigorous program of education and self improvement
- Put everyone to the task.
Put everyone in the company to work to accomplish the transformation. Transformation is everybody's job.
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- Lack of constancy of purpose to plan product and service that will make a market and keep the company in business, and provide jobs
- Emphasis on short tem profits:
short term thinking (just the opposite from constancy of purpose to stay in business) fed by fear of unfriendly take over, and push from bankers and owners, for dividends.
- Personal review system.
Or evaluation of performance, merit rating, annual review, or annual appraisal, by whatever name, for people in management, the effects of which are devastating. Management by objective, on a go, no-go basis, without a method for accomplishment of the objective, is the same thing by another name. Management by fear would still be better.
- Mobility of management
- job hopping
- Use of visible figures only
for management, with little or no consideration of figures that are unknown or unknowable.
- Excessive medical costs
- Excessive costs of liability,
fuelled by lawyers that work on contingency fees.
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There is extensive further information on Edwards Deming on the sites of The W Edwards Deming Institute (USA) - www.deming.org and The Deming Electronic Network - http://.deming.ces.clemson.edu/pub/den The Electronic Network is a world-wide virtual Deming community, from Australia, to Taiwan, to USA to France. It is committed to change and the advancement of our
organisational thinking. The members of the network maintain contact through the daily exchange of their experiences. To subscribe contact Jim Clauson on den.list-request@deming.ces.clemson.edu
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Our own David Kerridge - emeritus Professor of Statistics - Aberdeen University - is known world-wide for his knowledge of The Deming Philosophy. His excellent essays are available on the international Deming site at:
http://deming.ces.clemson.edu/pub/den/deming_kerridge.htm
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University Course - The Science of Management
Robert Gordon University, Aberdeen offer a very popular course on the Deming Philosophy delivered by Dr Tony Miller - for more information please move to the Science of Management section of the file on Training Courses and/or contact Tony on Tel 01224 262041 or e-mail: a.j.miller@rgu.ac.uk
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