Marketing

BA 1150 Introduction to Quality Management

Lesson Two: The Deming Management Method

© Brian Cooke, Iris Learning, 1999-2011; All rights reserved. A. Key Learning Points 1. Dr. W. Edwards Deming typically is considered the most significant person associated with “quality management.” Dr. Deming’s initial success as a quality consultant was in Japan (c. 1950 - 1980) where he played a significant role in the post-war (World War II) reconstruction of Japanese industry. In the post-war (World War II) United States, American industry was more interested in the quantity of production than in the quality of goods and services. By 1979, when Japanese products (especially automobiles and electronics) were threatening American industry, U.S. businesses sought Dr. Deming’s counsel. Dr. Deming’s “Fourteen Points” summarize his primary teaching • • • • • • • • • • • • • • 6. Create constancy of purpose for improvement of product and service. Adopt the new philosophy. Cease dependence on mass inspection. End the practice of awarding business on price tag alone. Improve constantly and forever the system of production and service. Institute training. Institute leadership. Drive our fear. Break down barriers between staff areas. Eliminate slogans, exhortations, and targets for the workforce. Eliminate numerical quotas. Remove barriers to pride of workmanship. Institute a vigorous program of education and retraining. Take action to accomplish the transformation.

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Dr. Deming’s “Seven Deadly Diseases” describe the primary causes of management failure. • • • • • • • Lack of constancy of purpose Emphasis on short-term profits Evaluation of performance, merit rating, or annual review Mobility of top management Running a company on the visible figures alone (“counting the money”) Excessive medical costs Excessive costs of warranty, fueled by lawyers that work on contingency fees

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Dr. Deming’s teachings and the success of the “quality management” method...