Dr. Deming’s 14 Points

The 14 points for management (Out of the Crisis, Ch.2) in industry, education and government follow naturally as application of this outside knowledge, for transformation from the present Western style of management to one of optimization. This information is not new, but it is still topical. I post this here to remind us that great ideas truly stand the test of time.

image: Cover: Out of the Crisis, W. Edwards Deming
Cover: Out of the Crisis, W. Edwards Deming

Origin of the 14 points.The 14 points are the basis for transformation of American industry. It will not suffice merely to solve problems, big or little. Adoption and action on the 14 points are a signal that the management intend to stay in business and aim to protect investors and jobs. Such a system formed the basis for lessons for top management in Japan in 1950 and in subsequent years (see pp. 1-6 and the Appendix).

The 14 points apply anywhere, to small organizations as well as to large ones, to the service industry as well as to manufacturing. They apply to a division within a company.

The 14 points*

  1. 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.
  2. Adopt the new philosophy. We are in a new economic age. Management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.
  3. Stop depending 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. Stop making business decisions based solely on cost. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.
  5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.
  6. Institute training on the job.
  7. Institute leadership. (see Point 12 and Ch. 8). 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 at every level of the organization, so everyone may work effectively for the company (see Ch. 3).
  9. 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.
  10. Eliminate slogans, corporate ‘rah-rah’ and arbitrary targets for the work force asking for “zero defects” and new levels of productivity. Such cheerleading only creates 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.Corollaries to number 10:+Eliminate quotas. Substitute leadership.+Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.
  11. Remove barriers that rob front-line people of their right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality.
  12. Remove barriers that rob people in management of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective (see Ch. 3).
  13. Institute a vigorous program of education and self-improvement.
  14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody’s job.

The W. Edwards Deming Institute, All Rights Reserved & Copyright © 2000

*some artistic license taken for the sake of 21st century clarity

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Making Toast the Lean Way

Learning About Process Improvement

Narrated by and featuring Bruce Hamilton, Shingo Prize Recipient and GBMP President, this 27-minute video highlights the seven deadly wastes found in both administrative offices and in manufacturing processes. In this training tool, the process of making toast is used to represent the before condition and the target condition of a manufacturing or transaction-based process and helps your people to identify with the process of Kaizen(small and continuous improvements). Whether you are already on the Continuous Improvement journey or you are just beginning to realize the power of continuous improvement implementation, this video is an essential learning tool for your entire workforce.

Gemba Walks, by Jim Womack

Walking the Gemba with Jim Womack

from the Lean Enterprise Institute’s website at lean.org

Gemba Walks is Jim Womack’s newest book, a collection of letters and essays. It is also available as an e-book from Apple, Amazon or Amazon.co.uk, Barnes & Noble, and Google.

“The life of lean is experiments. All authority for any sensei flows from experiments on the gemba [the place where work takes place], not from dogmatic interpretations of sacred texts or the few degrees of separation from the founders of the movement. In short, lean is not a religion but a daily practice of conducting experiments and accumulating knowledge.”

So writes Jim Womack, who over the past 30 years has developed a method of going to visit the gemba at countless companies and keenly observing how people work together to create value. Over the past decade, he has shared his thoughts and discoveries from these visits with the Lean Community through a monthly letter. With Gemba Walks, Womack has selected and re-organized his key letters, as well as written new material providing additional context.

Gemba Walks shares his insights on topics ranging from the application of specific tools, to the role of management in sustaining lean, as well as the long-term prospects for this fundamental new way of creating value. Reading this book will reveal to readers a range of lean principles, as well as the basis for the critical lean practice of: go see, ask why, and show respect.

Womack explains:

  • why companies need fewer heroes and more farmers (who work daily to improve the processes and systems needed for perfect work and who take the time and effort to produce long-term improvement)
  • how “good” people who work in “bad” processes become as “bad” as the process itself
  • how the real practice of showing respect comes down to helping workers frame and solve their own problems
  • how the short-term gains from lean tools can be translated to enduring change from lean management.
  • how the lean manager has a “restless desire to continually rethink the organization’s problems, probe their root causes, and lead experiments to test the best currently known countermeasures”

By sharing his personal path of discovery, Womack sheds new light on the continued adoption and development of the most important new business system of the past fifty years. His journey will provide courage and inspiration for every lean practitioner today.

The Amazing Adventures of Kanban

I decided to repost this since it is such a great way to think about the power of kanbans. It’s from Jon Miller from his blog “gemba panta rei” . Enjoy!
bh

By Jon Miller | Post Date: June 17, 2009 12:57 PM (http://www.gembapantarei.com/2009/06/the_amazing_adventures_of_kanban.html)

kanban man

Kanban was born nearly 60 years ago. It’s creator, Taiichi Ohno, intended kanban to combat the evil overlord Overproduction, Mother of All Wastes and her Minions of WIP. The battle is far from won. During those six decades kanban has been through some amazing adventures.

Kanban Gains Superpowers

Pokayoke has the power to prevent mistakes. Jiodka frees people to run machines intelligently, rather than be run by them. Heijunka has the power to take choppy demand and smooth it out. Kaizen has the power to make infinite small improvements. All of these players and their many friends bring order and harmony to a production system. Yet one stands above them all: kanban.

Kanban was endowed with three major powers. First is the the power to instruct the production of goods. Within the Toyota Production System and its imitators, only the kanban has the power to cause things to be made. Second is the power to instruct the movement of goods. Like its first power, kanban can cause things to be moved. Third and perhaps most important, kanban can motivate people towards continuous improvement by reducing its own size. Within a kanban system, the less kanban there is, the more improvement is needed. Like a true hero, the power of kanban increases as it diminishes its own presence. Amazing.

Kanban vs. the Communists

From the beginning, the powers of kanban were awesome. Overproduction was stopped in its tracks, Work In Process (WIP) was slashed, and various hidden wastes were exposed and removed through continuous improvement. Almost immediately kanban extended its reach outside of Toyota, the enterprise within which it was born, to its suppliers.

But there was no way that such drastic action would go unnoticed in Japan, the Land of Wa (harmony). A Japanese communist party member accused Toyota of using kanban to make unreasonable demands on suppliers to deliver products right away. Taiichi Ohno was summoned to the Japanese parliament to testify in defense of Toyota’s use of the cards to order suppliers to make deliveries of parts. In the end, the Japanese equivalent of the Fair Trade Commission instructed OEMs to limit the fluctuation of actual monthly orders to suppliers by no more than 10% from the firm monthly orders placed in advance.

Perhaps kanban was becoming too powerful. The government needed step in to curb kanban’s powers, or at least insure they were always used for good. It was a lesson learned. None of the others, not pokayoke, not jidoka, no tkaizen have been called to testify in front of the government, or to face down the communists.

Kanban: the Fickle Hero

But for all its powers kanban was at times fickle. To kanban, jidoka, SMED and pokayoke were just sidekicks, enablers. Kanban treated both 5S and Visual Controls as givens rather than equals. Kaizen may be an equal partner to kanban, but in private kanban lorded over kaizen because of its power to motivate others to improve. While these various players toiled away at making improvements and building systems, kanban expected that their work was all foundation building for the kanban system. Kanban never said a word of thanks, nor asked for one.

Like a temperamental artist who wants just the right type of bottled water and sandwiches in his dressing room, kanban said “I will only work for you if once the workplace is clean and visually organized, quality is reliable, lot sizes are small and a logistics system is in place to support me.” Kanban would not do the heavy lifting for you. Kanban would let you know when you’re failing, but may not always come to the rescue. Kanban is a powerful but fickle hero, relied on at your own risk.

Kanban on the Global Stage

In the 1980s Taiichi Ohno was invited to the USA to speak about the Toyota Production System. Unfortunately the organizers confused kanban, the most noticeable feature of TPS, for the system itself. Kanban stole the show, overshadowing the shadowing even the system it was designed to enable. This was not what its creator Taiichi Ohno intended.

As kanban took the global stage with hubris, inevitably its powers were misunderstood or misdirected. Without the protection of the limits on demand signal fluctuation, OEMs abused suppliers with what can be best described as quasi-kanban. Kanban saw its name sullied by impostors and imitators. Even when kanban was called to use its powers, too often it was pressed into service without the support of its friends pokayoke, SMED, heijunka, visual controls and 5S. Even when they were nearby, they were prevented from working as a team.

Kanban of 1,000 Disguises

Kanban’s powers were weakened as much was lost in translation. In order to effectively combat overproduction in its new and vastly diverging environments, kanban adopted a thousand disguises. Some were more effective than others. Each time kanban answered the call to battle overproduction, it seemed it was in a different form: a lamp, a card, a square on the floor, a box, a cart.

kanban as signal.png

Kanban continues to be misunderstood even today, with many unsure of which is the true face of kanban. But the battles rages on against the evils of overproduction.

Kanban and the Builders of Invisible WIP

Early in the 21st century, kanban found an unexpected band of allies. These people were prolific builders of invisible but deadly WIP. They were software developers. Appearing not as information traveling with the manufactured work product itself but rather represented on a task board, kanban works tirelessly to control even the invisible WIP of lines of code.

agile kanban.png

Once again, kanban added a new form to its one thousand disguises in order to combat overproduction in on a new battlefield.

Yes We Kanban

Today Kanban finds itself in an uneasy but increasingly important alliance with the Coders through the Limited WIP Society. Flying the banner of kanban’s creator and genius production system designer Taiichi Ohno, kanban has found a common aim with this league of mad scientists: to ultimately defeat WIP and it’s overlord Overproduction.

yes we kanban.png

How much progress will kanban’s alter-ego of Agile Kanban make in exercising its three superpowers across the software development world? Only time will tell.

Kanban Meets Dr. Bahri the Lean Dentist

Kanban may have met its match in Dr. Bahri, the pioneering practitioner of lean dentistry. Dr. Bahri has applied the powers of kanban to instruct the work that dentists and dental hygienists do, to instruct the movement of patients, and to motivate continuous improvement. Wouldn’t it be ironic if six decades into an amazing career, kanban goes for some dental work and finds the power of kanban applied to fixing its teeth?

The villains of overproduction, push and WIP never sleep. The amazing adventures of kanban continue…