Friday, March 7, 2014

Management Philosophy of Benjamin Franklin (1706 - 1790) and W.Edwards Deming (1900-1993)

"When you are finished changing, you're finished." -  Benjamin Franklin.
 The management strategies are summarized from the Autobiography of Benjamin Franklin.
Deming's Fourteen Points for Management:

 Dr. W. Edwards Deming modestly describes himself as a 'consultant in statistical studies'. Others have called him “the father of the third wave of the Industrial Revolution”.  His philosophy combines widespread use of statistical ideas and methods throughout organisations with an approach to management. Deming has produced a list of 14 Points for Management.
1 . Constancy of purpose
Create a constancy of purpose for improvement of product and services-The essence of constancy of purpose is customer orientation.
2. Adopt the new philosophy
 The management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. The attention to TQM principles has created a new economic age: the age of continuous improvement and systems thinking. Improvement of process leads to greater uniformity of product, reduces mistakes and rework, reduces waste of manpower, machine time, materials and increases output with lowered cost.
3 .Cease dependence on mass inspection
 Eliminate the need for inspection on a mass basis by building quality into the product in the first place. Old way of doing business is to manage outcomes by detecting defects.
4. End 'lowest tender' contracts
End the practice of awarding business on price tag alone - Instead, minimise total cost. Move toward a single supplier for any one item on a long-term relationship of loyalty and trust.
5. Continually seek out problems
 Search continually for problems in order to improve every activity in the company, to improve quality and productivity and thus to constantly decrease costs. It is management's job to work continually on the system (design, incoming materials, maintenance, improvements of machines, training, supervision, retraining) The Deming Cycle is the  key to continuous improvement: PLAN, DO, CHECK and ACT.
6. Institute training on the job
 Institute modern methods of training on the job - New skills are required to keep up with changes in materials, methods, product design, machinery, techniques and service. Note that training is for skills, unlike education, which is for knowledge.
7. Institute supervision
 Institute modern methods of supervision and leadership - The aim of leadership should be to help people, machines and gadgets to do a better job. Improvement of quality will automatically improve productivity.
8. Drive out fear
Drive out fear, so that everyone may work effectively for the company. Encourage effective two-way communication and other means to drive out fear throughout the organisation so that everybody may work effectively and more productively for the company. Fear is a barrier to improvement.
9. Break down barriers
 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 exhortations
Eliminate numerical goals for the work force - Eliminate slogans, exhortations and targets for the work force that ask for zero defects and new levels of productivity.
11. Eliminate targets
Eliminate work standards that prescribe numerical quotas for the workforce and numerical goals for people in management. Use statistical methods for continual improvement of quality and productivity.
12. Permit pride of workmanship
 Remove barriers to pride of workmanship - The responsibility of supervisors must be changed from stressing sheer numbers to quality. Remove barriers that rob people (including those in management and engineering) of their right to pride of workmanship.
13. Institute education
Institute a vigorous programme of education and training for everyone - Institute a vigorous programme of education, and encourage self-improvement for everyone. What an organization needs is not just good people; it needs people that are improving with education. Advances in competitive position will have their roots in knowledge.
14. Top management's commitment
Create a structure in top management that will push every day on the above 13 points - Put everyone in the organisation to work to accomplish the transformation. The transformation is everybody’s job. Clearly define top management's permanent commitment to ever-improving quality and productivity, and their obligations to implement all of these principles.

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