14 principles for management by W Edward Deming

Edward Deming listed fourteen points that helps in improving the effectiveness of the business.

1) Create constancy of purpose toward improvement of product and service, with the aim to become competitive and stay in business, and to provide jobs.

2) Adopt a new philosophy of cooperation (win-win) in which everybody wins and put it into practice by teaching it to employees, customers and suppliers. We can no longer tolerate commonly accepted mistakes, defects, wrong material or people on the job for which they are not suited.

3) Cease dependence on mass inspection to achieve quality. Instead, improve the process and build quality into the product in the first place. Inspection to improve quality is too late after the product has been manufactured.

4) End the practice of awarding business on the basis of price tag alone. Instead, minimize total cost in the long run. Move toward a single supplier for any one item, based on a long-term relationship of loyalty and trust.

5) Improve constantly, and forever, the system of production, service, planning, of the activity. This will improve quality and productivity and thus constantly decrease costs.

6) Institute training for skills, Management needs training to learn about the company all the way from incoming material and the steps it goes through before the finished product is shipped to the customer.

7) Adopt and institute leadership for the management of people, recognizing their abilities, capabilities and aspiration. The aim of leadership should be to help people, machines and gadgets do a better job. Leadership of management is in need of overhaul as well as leadership of production workers.

8) Drive out feat and build trust so that everyone can work more effectively. No one can put in their best performance unless they feel secure. Secure mean without fear, not afraid to express ideas, not afraid to ask questions.

9) Break down barriers between departments. Abolish competition and build a win-win system of co-operation within the organization. People in research, design, sales and production must work as a team to foresee problems of production and use that might be encountered with the product or service.

10) Eliminate slogans, exhortations, and targets asking for zero defects or new levels of productivity. Such displays only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.

11) Eliminate numerical goals, numerical quotas and management by Objectives, substitute leadership. Work standards, rates, incentive pay and piecework are signs of the inability to understand and provide appropriate supervision.

12) Remove barriers that rob people of joy in their work. This will mean abolishing the annual rating or merit system that ranks people and creates competition and conflicts.

13) Institute a vigorous program of education and self-development. People require in their work more than just money, they must be given the opportunity for even-broadening opportunities toad something to society, materially and otherwise.

14) Put everybody in the company to work to accomplish the transformation. Management in authority will take pride in their adoption of the new philosophy and their responsibilities. The transformation is everybody's job.

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