Dr Deming Point 2
Adopt the New Philosophy

Below I discuss Dr. Edward Deming's recommended management techniques. Dr. Deming lived from 1900 to 1993. He is a well known Quality expert and one of my favorite mentors.

Did you know that Dr. Deming grew up on a Farm in Wyoming? In the early 1900s, he did not have electricity. In fact, he got paid $10 a month for hand lightning the gasoline lights in his town Powell, Wyoming. There were 5 lights that needed to be lit until a runaway carriage tore one down. I wonder if he took a salary cut after this?

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Dr. Deming’s Adopt the New Philosophy - Point #2

What is your company’s purpose? If you ask most CEOs, the purpose of companies is to make money. Dr. Deming believed the best way to make money is to make quality the number one principle within the company. Quality is the new philosophy.

Dr Deming states: “The cost of living depends inversely on the goods and services that a given amount of money will buy. Reliable services reduce costs. Delays and mistakes raise cost.”

Have you ever experienced a vendor who gives you good quality material because they sorted the material prior to delivery? Let’s say that vendor constantly meets your requirements. They deliver on time; the product meets specification and fits your needs. Is that vendor saving you money? No, they are costing you money because they are sorting the material prior to delivery. Why? because you are paying for the vendor’s scrap material too. This scrap is hidden in the cost of the good material.

Quality needs to be built into the product and not sorted out.

How do you treat customers who switched away from you to a different supplier? Do you track this? If not, you need to. You need to find your ex customer’s reason behind the switch. Most customers do not complain about negative reactions to your product. If given the option, it is easier for them to switch then complain. The reason behind the switching is crucial to your company’s well being. This information will improve your quality.

Proper, thorough handling of customer complaints is critical to improving quality. How do you handle customer complaints? Do you have an 8D policy? Do you follow the 5 why method? Are you capturing all information in a database? Do you contact other customers to prevent similar issues? Do you take this lesson and use it to prevent other mistakes on other products?

Quality must be integrated into all the company’s systems. This includes service, manufacturing, administration, and field support. By constantly focusing on improving quality, you are abiding by Dr Deming’s point two “Adopt the new philosophy”.

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Dr Deming’s 14 points

1. Create constancy of purpose for improvement of product and service.
2. Adopt the new philosophy
3. Cease dependence on mass inspection
4. End the practice of awarding business on price tag alone
5. Improve constantly and forever the system of production and service.
6. Institute training
7. Institute leadership
8. Drive out fear
9. Break down barriers between staff areas
10. Eliminate slogans, exhortations, and targets for the workforce.
11. Eliminate numerical quotas.
12. Remove barriers to pride of workmanship.
13. Institute a vigorous program of education and retraining.
14. Take action to accomplish the transformation.

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