3. ¡° It is only through enforced standardization of methods, enforced adoption of the best implements and working conditions and enforced cooperation that this faster work can be assured. And the duty of enforcing ¡ rests with management alone.¡± Frederick Winslow Taylor
4. ¡° All anyone asks for is a chance to work with pride .¡± ¡° A bad system will beat a good person every time.¡± W. Edwards Deming
Deming's message to Japan's chief executives: improving quality will reduce expenses while increasing productivity and market share. JUSE's board of directors established the Deming Prize (December 1950) He was known for his kindness to and consideration for those he worked with, for his robust, if very subtle, humor, and for his interest in music. He sang in a choir, played drums and flute, and published several original pieces of sacred music Largely unknown after being back to US, until 1980s when NBC made a documentary If Japan Can, Why Can¡¯t We Ford got help from Deming from 1981; Management rather than quality control; By 1986, Ford had become the most profitable American auto company and got over GM for the 1 st time Quality = Results of work effort / Total Cost Deming's 14 points No. 10: Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity Appreciation of a system : understanding the overall processes involving suppliers, producers, and customers (or recipients) of goods and services ( explained below ); Knowledge of variation : the range and causes of variation in quality, and use of statistical sampling in measurements; Theory of knowledge : the concepts explaining knowledge and the limits of what can be known (see also: epistemology ); Knowledge of psychology : concepts of human nature.
Ford: 1908 Model T 1915 500,000 T, 50% increase per year 1965 2,000,000 1980, Japan intruded, Quality revolution started 2006 12.7 B lost Toyota: 1930 founded 1950¡¯s visited by Deming; Taiichi Ohno invented TPS 1991 the whole world learnt from Toyota 2006 passed Ford 2007 passed GM and world¡¯s largest 2007 earned 15.7 B 2008 renamed Toyota Corporation; 45 of 50 Industrial classification
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Similar Developed same principles from manufacturing and software development individually Serving User Embrace Change: adaptive rather than predictive people-oriented rather than process-oriented Agile Manifesto : Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan
Ford was one of the first American corporations to seek help from Deming. In 1981, Ford recruited Deming to help jump-start its quality movement. Ford's sales were falling. Between 1979 and 1982, Ford had incurred $3 billion in losses. Deming questioned the company's culture and the way its managers operated. To Ford's surprise, Deming talked not about quality but about management. He told Ford that management actions were responsible for 85% of all problems in developing better cars. In 1986 Ford came out with a profitable line of cars, the Taurus-Sable line. In a letter to Autoweek Magazine , Donald Petersen , then Ford Chairman, said, "We are moving toward building a quality culture at Ford and the many changes that have been taking place here have their roots directly in Dr. Deming's teachings." [15] By 1986, Ford had become the most profitable American auto company. For the first time since the 1920s, its earnings had exceeded those of arch rival General Motors (GM). Ford had come to lead the American automobile industry in improvements. Ford's following years' earnings confirmed that its success was not a fluke, for its earnings continued to exceed GM and Chrysler's.