Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
Deming Management Method in the Readymade Garments Industry
of Bangladesh
Sharmin Akhter
A good quality management system is crucial for a manufacturing organization to
increase its competitiveness. Over the time, TQM has become a tactical instrument
for manufacturing organizations to grow up and uphold in the vastly competitive
business surroundings. Though, developing suitablebase for TQM implementation is
still the real challenge for an organization. This paper is designed to outline the
application of Total Quality Management, based on the Deming Management Method
in the readymade garments industry of Bangladesh. A structured Questionnaire was
used to collect data from random sample of 100 production managers. The findings
suggest that an integrated approach is required to implement the Deming
Management Method oftotal quality practices in order to understandtactical quality
objectives. The study supports the applicability of the Deming Management Method
to the RMG industry. The result of the research provides a better understanding of
issues relating to Deming Management Method of total quality and suggests
measures for improving the implementation of this method in the RMG industries of
Bangladesh.
Keywords: TQM (Total Quality Management), RMG (Readymade Garments), Deming
Management Method.
I. Introduction:
With the introduction of total quality management philosophy some creative companies in
Bangladesh are trying to practice this new idea intended for sustainability. An extensive study
indicates that Total Quality Management in Bangladesh has been paying concentration mainly on
individual firms particularly in the manufacturing industries. However, little research has been
conducted in this area in the context of readymade garments sector of Bangladesh.
Total quality management is used to describe a comprehensive view of quality assurance (Evans
and Lindsay, 1999). TQM is merely the process of building quality goods and services from the
initiation; accomplishment of TQM depends on the authentic commitment to quality by every
member of the organization.
TQM is an enhancement to the traditional way of doing business and a proven technique to
guarantee survival in world-class competition (Besterfield, 2009). Besterfield analyzed Total
Quality Management: Total- made up of the whole; Quality- degree of excellence a product or
service provides; Management- act, art / manner of handling, controlling, directing, etc. TQM is the
art of managing the whole to achieve excellence and is both a philosophy and a set of guiding
principles that represent the foundation for continuously improving organization.
______________________________________________________________________________
Ms. Sharmin Akhter, Department of Accounting, Bangladesh University of Business and Technology (BUBT), Mirpur2, Dhaka, Bangladesh. Email: sharmin068@gmail.com
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
Juran (1992) described TQM: a quality planning, control and improvement. Ross (1993) explained
TQM: a set of practices, continuous improvement, meeting customers' requirements, reducing
rework, increased employee involvement, teamwork, process redesign, competitive
benchmarking, team-based problem-solving, constant measurement of results and closer
relationships with suppliers.
To understand the discipline of quality management, consideration is needed about the
philosophies of quality ‘Gurus’ who formed the evolution of TQM as a vital factor. Their
contribution like as Deming (1986) 14 points, Juran (1988) trilogy and 10 steps, Crosby 14 steps
to quality improvement, as identified by Brocka and Brocka (1992), and Feigenbaum (1983)
approach of total quality control are vital fundamentals of quality management.
One of the strongest proponents of quality management was W. Edwards Deming, a member of
the selected few credited with contributing to the rapid revitalization of the Japanese economy
after World War II (Deming, 1986; Walton, 1986; Yoshida, 1989). The Deming management
method is currently embraced by many firms in the United States and around the world (Hodgson,
1987. Deming (1986) prescribed TQM in 14 points that he claimed to be a set of principles of
transformation.The purpose of the method has been and continues to be the transformation and
improvement of the practice of quality management. Deming philosophy starts with top
management but maintains that a company must implement this system at the entire levels of the
organization. His 14 point plans is a complete philosophy of management and can be applied to
small or large organizations in the public, private sectors, which according to Deming (1986) "Are
a signal that management intend to stay in business and aim to protect investors and jobs".
As principles of transformation, the 14 points are based on a set of assumptions about "how work
is accomplished and how the outcomes of work should be evaluated" (Gartner, 1993). These
points represent Deming's beliefs regarding how to manage this variability and prescribe a number
of practices in the name of quality management (Anderson, Dooley, & Misterek, 1992). The
elements in this set of practices cross beyond the boundary of a single discipline to include such
traditionally different functional domains in management (Baillie, 1986; Gartner & Naughton, 1988)
as human resources (Point 6), strategic management (Point 1), purchasing (Point 4), and process
control (Point 5). The purpose of these practices is to assist management of the extended process
(Gitlow, Gitlow & Op-penheim, 1989), stretching the legal borders of the organization to include
and affect suppliers upstream (Point 4) and customers downstream (Point 9).The 1986 edition of
the Deming’s14 points is shown in a table on the appendix section. All of the 14 points begins with
a verb and is articulated in the "imperative mood" (Fowler, 1986), captivating the language
structure of a "command."
We believe that the Deming management method is essential for improved implementation of
these 14 points and, more generally, to the advancement of the field of quality management in the
manufacturing industries.The objective of the study in general is to investigate about the
application of Deming Management Method in the readymade garments industry of Bangladesh.
The specific objectives include:
1. To assess the practices of Deming Management Method in total quality management.
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
2. To address the lacking concerning implementation of this method in total quality
management.
3. To suggest measures for improving the lacking area of following this method for quality
improvement.
II.
Literature Review:
According to Anderson et al, (1994) the Deming Management Method contains a prescriptive set
of 14 imperative statements which published together for the first time in Deming (1981/1982) and
subsequently in Deming (1982) and Walton (1986). These 14 points provide as guiding principle
for proper organizational behavior and practice concerning quality management.
A literature contributed by Anderson et al., (1995) empirically validated Deming management
method. Later this was used in empirical studies (Rungtusanatham et al., 1998; Fisher et al.,
2005; Douglas & Frendendall, 2004; Singh et al., 2007). Findings of these studies give strong
support for all hypotheses of Deming Management Method. Anderson et al., (1994) emphasized
the need to undertake dynamic testing of the theory to validate its generalizability, and applicability
across sectors, countries, industries, employee groups and time periods. Some of the other
researchers also argued that improvement efforts through testing of this theory would contribute
toward better understanding, and aid in knowledge consolidation (Sousa and Voss 2002).
Tsang and Antony (2001) identified critical success factors of TQM in UK service organizations.
Findings: top management commitment, customer focus, training, development, teamwork,
continuous improvement, supplier partnership, and cultural change as essential dimensions of
TQM.
Khan (2010) surveyed on evaluating the Deming Management Model in telecommunication
industry in Pakistan. Findings: an integrated approach is required to implement TQM practice in
order to realize strategic quality objectives; provide more variation for understanding of issues
relating to quality management in developing countries; and a framework for enhancing
organizational effectiveness.
A study by Rahman and Masud (2011) found: quality improvement can play a vital role for
improving productivity as well as economic development for the country; implementation of TQM
approach has enabled to reduction in rework and cost of poor quality through proper utilization of
company’s internal resources; organization should implement the pillar of TQM to improve quality.
Another study by Islam and Haque (2012) found: creation of quality management environment,
development of teamwork, practice of quality control tools and techniques, closer supplier
relationship and customer focus are the main pillars of TQM implementation.
A study by Rizwan U. Farooqui and Syed M. Ahmed (a conference held on June 2-5, 2009,)
found: although most companies have quality goals, systems and processes do not completely
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
relate to Deming’s 14 points; top management should have commitment to TQM; companies
should relate quality implementation ideas with Deming’s 14 points in order to achieve TQM to the
maximum extent.
A study by Tony Polito (NC 27858, 328-6569) on the population of Deming subject matter experts
(SMEs) were surveyed to determine their beliefs regarding the causes of implementation
difficulties and failures associated with demingistic principles. Findings: senior management or
corporate leadership represent the most common root cause of such difficulties and failures; a
certain degree of informal evidence offers to conclude that there was a lack of commitment and
constancy of purpose; inadequate understanding of demingism; lack of long-term focus; poor or
partial implementation; lack of good Deming consultant; and organizational culture or philosophy
that conflicted with demingism.
None of the studies mentioned above focus on the aspects of application of Deming Management
Method in the context of RMG sectors of Bangladesh. Therefore, this area of study seems to be
unexplored so far in Bangladesh and hence, become a relevant field of inquiry and research.
III.
The Methodology:
The population of this study is comprised of all the RMG industry of Bangladesh. At present there
are about 5450 listed garments industries in Bangladesh.
-
Sources of data: Data have been collected from both primary and secondary sources. It
contains interviews through a structured questionnaire, published journal articles, text books,
and websites.
-
Method of primary data collection: A self-administered questionnaire based on the Deming’s
14 points was developed to collect information. Each question is framed with the aim of
assessing the application of Deming management method in the RMG industry of Bangladesh.
Target respondents were the production managers, quality control managers of the selected
garments located in Dhaka, Ashulia, Gazipur and Narayanganj. A total number of 150 copies
of the questionnaire were administered, out of which 100 copies were retrieved and usable. In
the questionnaire there are 16 questions about Deming’s 14 points. Point 4 is divided into
question no. 4 and 5; point 12 is divided into question no. 12 and 13. So there are 16 questions
for 14 points. In this study, the five point Likert scaling technique has been used to code data.
-
Sample procedure: A sampling frame has been developed with the lists of garment units
obtained from the Bangladesh Garments Manufacturers and Exporters Associations (BGMEA),
Bangladesh Knit Manufacturers and Exporters Association (BKMEA) and Bangladesh Export
Processing Zone Authority (BEPZA). The sample size is 100, sample proportion 20% and
sample error 7.8% at 95% confidence level.
-
Data analysis tools: Chi-square test with 5% level of significance was employed to test the
hypotheses. So, the degree of freedom is 4; value of Χ2 at this level is 9.49. The decision rule
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
is to reject null hypothesis if calculated value is greater than critical value and accept if
otherwise.
-
Development of hypotheses:
Research hypothesis: The research hypothesis is that the RMG industry of Bangladesh
follows Deming Management Method in total quality management. If the null hypothesis is
rejected the research hypothesis will be accepted.
Null hypotheses: In order to test the association that exists between Deming Management
Method and its application in the RMG industry of Bangladesh 16 hypotheses has been developed
from Deming’s 14 points as there are 16 questions in the questionnaire.
H1:
H2:
H3:
H4:
H5:
H6:
H7:
H8:
H9:
H10:
H11:
H12:
H13:
H14:
H15:
H16:
In the organization there is no constancy of purpose toward improvement of
product & service.
Management is not liberal to adopt new philosophy / idea.
Organization doesn’t rely on mass inspection to achieve quality.
Management doesn’t emphasis on long-term profit.
Organization doesn’t maintain loyal relationship with the supplier.
No constant improvement of production & service system.
Organization has no training facility on the job.
In the factory floor supervisors are not friendly, participative & do not encourage
worker to do better job.
In organization there is no existence of an environment of working without fear.
No unity between departments and no existence of teamwork within the
organization.
In the factory floor there is no slogans & targets for the worker in doing work &
not asking for zero defects & new levels of productivity.
No quotas exist in the factory floor.
No evaluation of worker is made based on the number of units
produced by them.
No evaluation is done on the basis of performance, merit rating & pride of
workmanship.
Organization has no dynamic program of education & self-improvement.
In organization everybody doesn’t work sincerely to accomplish the
transformation.
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
IV.
The Findings:
1. Lack of constancy of purpose toward improvement
No.
Responses
No. of responses
% of responses
1
Strongly disagree
35
35%
2
Disagree
38
38%
3
Neutral
6
6%
4
Agree
10
10%
5
Strongly agree
11
11%
Source: Field Survey, 2014
Out of 100 respondents 73% disagreed, 21% agreed and 6% are neutral. Most of the
respondents’ opinion: there is constancy of purpose toward improvement of product and service.
2. Management is liberal to adopt new philosophy
No.
Responses
No. of responses
% of responses
1
2
3
4
Strongly disagree
Disagree
Neutral
Agree
2
6
2
51
2%
6%
2%
51%
5
Strongly agree
39
39%
Source: Field Survey, 2014
90% agreed and 8% disagreed. Respondents’ opinion: management is moderate to adopt new
philosophy.
3. Strongly dependent on inspection to achieve quality
No.
1
2
3
4
5
Responses
No. of responses
Strongly disagree
11
Disagree
14
Neutral
8
Agree
38
Strongly agree
29
Source: Field Survey, 2014
% of responses
11%
14%
8%
38%
29%
67% agreed and 25% disagreed. Respondents’ opinion: organization strongly dependent on
inspection to achieve quality.
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
4. Management emphasis on short-term profit
No.
1
2
3
4
5
Responses
No. of responses
Strongly disagree
23
Disagree
49
Neutral
5
Agree
19
Strongly agree
4
Source: Field Survey, 2014
% of responses
23%
49%
5%
19%
4%
23% agreed and 72% disagreed. Respondents’ opinoin: management doesn’t emphasize on
short-term profit.
5. Organization maintains loyal relationship with supplier
No.
1
2
3
4
5
Responses
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
No. of responses
5
14
10
58
13
% of responses
5%
14%
10%
58%
13%
Source: Field Survey, 2014
71% agreed and 19% disagreed. Respondents’ opinion: there is a particular supplier for any one
item and organization maintains a loyal relationship.
6. Constantly improving its system of production and service
No.
1
2
3
4
5
Responses
No. of responses
Strongly disagree
0
Disagree
1
Neutral
1
Agree
47
Strongly agree
51
Source: Field Survey, 2014
% of responses
0%
1%
1%
47%
51%
98% agreed, 1% disagreed and 1% neutral. Respondents’ opinion: organization is relentlessly
improving its system of production and service to advance productivity and quality to shrink cost.
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
7. Enough training on the job
No.
1
2
3
4
5
Responses
No. of responses
Strongly disagree
0
Disagree
10
Neutral
8
Agree
64
Strongly agree
18
Source: Field Survey, 2014
% of responses
0%
10%
8%
64%
18%
82% agreed and 18% disagreed. Respondents’ opinion: there is adequate training on the job.
8. Supervisors encourages the worker to do better job
No.
1
2
3
4
5
Responses
No. of responses
Strongly disagree
0
Disagree
8
Neutral
1
Agree
61
Strongly agree
30
Source: Field Survey, 2014
% of responses
0%
8%
1%
61%
30%
91% agreed and 8% disagreed. Respondents’ opinion: supervisors are participative and
encourage worker to do a better job.
9. An environment of working without fear
No.
1
2
3
4
5
Responses
No. of responses
Strongly disagree
3
Disagree
5
Neutral
9
Agree
50
Strongly agree
33
Source: Field Survey, 2014
% of responses
3%
5%
9%
50%
33%
83% agreed and 8% disagreed. Respondents’ opinion: organization contains an environment of
working without fear.
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
10. No barrier between departments and existing team work
No.
1
2
3
4
5
Responses
No. of responses
Strongly disagree
0
Disagree
5
Neutral
12
Agree
64
Strongly agree
19
Source: Field Survey, 2014
% of responses
0%
5%
12%
64%
19%
83% agreed and 5% disagreed. Respondents’ opinion: no barier between departments and
maintain team work.
11. No slogans and targets for the worker in doing work
No.
1
2
3
4
5
Responses
No. of responses
Strongly disagree
5
Disagree
29
Neutral
11
Agree
54
Strongly agree
1
Source: Field Survey, 2014
% of responses
5%
29%
11%
54%
1%
55% agreed and 34% disagreed. Respondents’ opinion: no slogans and targets for the worker in
doing work that is asking for zero defects and new levels of productivity.
12. No quotas exist in the factory floor
No.
1
2
3
4
5
Responses
No. of responses
Strongly disagree
8
Disagree
39
Neutral
6
Agree
46
Strongly agree
1
Source: Field Survey, 2014
% of responses
8%
39%
6%
46%
1%
47% agreed and 47% disagreed. Respondents’ opinion: there are quotas exist in the factory floor.
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
13. Evaluates quality of worker based on units produced by them
No.
1
2
3
4
5
Responses
No. of responses
Strongly disagree
1
Disagree
10
Neutral
8
Agree
71
Strongly agree
10
Source: Field Survey, 2014
% of responses
1%
10%
8%
71%
10%
81% agreed and 11% disagreed. Respondents’ opinion: supervisor evaluates quality of worker
based on number of units produced.
14. No evaluation by merit rating / annual review of performance
Sl. No.
Responses
No. of responses
1
Strongly disagree
20
2
Disagree
61
3
Neutral
3
4
Agree
15
5
Strongly agree
1
Source: Field Survey, 2014
% of responses
20%
61%
3%
15%
1%
81% disagreed, 16% agreed and 3% are neutral. Respondents’ opinion: there is evaluation by
performance, merit rating, or annual review of performance.
15. Dynamic program of education & self-improvement exists
No.
1
2
3
4
5
Responses
No. of responses
Strongly disagree
0
Disagree
5
Neutral
5
Agree
79
Strongly agree
11
Source: Field Survey, 2014
% of responses
0%
5%
5%
79%
11%
90% agreed and 5% disagreed. Respondents’ opinion: there is a dynamic program of education
and self-improvement exists in the organization.
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
16. Everybody works sincerely to accomplish the transformation
No.
1
2
3
4
5
Responses
No. of responses
Strongly disagree
0
Disagree
3
Neutral
6
Agree
62
Strongly agree
29
Source: Field Survey, 2014
% of responses
0%
3%
6%
62%
29%
91% agreed and 3% disagreed. Respondents’ opinion: everybody in the organization works
sincerely to carry out the transformation.
Summary of the Results
Question
No.
Findings
1.
73% respondents agree that there is a consistency of purpose toward
improvement of product and service.
2.
90% agree that management is liberal to adopt new philosophy.
3.
67% agree that organization strongly dependent on inspection to achieve
quality.
4.
77% agree that management doesn’t emphasis on short-term profit.
5.
71% agree that there is a single supplier for any one item and organization
maintains a loyal relationship.
6.
98% agree that Organization is constantly improving its system of
production and service to improve productivity and quality to reduce cost.
7.
82% agree that there is enough training on the job.
8.
91% agree that supervisors are friendly, participative and encourage
worker to do a better job.
9.
83% agree that in the organization there is an environment of working
without fear.
10.
83% agree that there is no barrier between departments and existing team
work.
11.
55% agree that no slogans and targets for the worker in doing work.
12.
53% agree that there are quotas exist in the factory floor.
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
13.
81% agree that supervisor evaluates quality of worker based on number of
units produced by them.
14.
81% agree that there is evaluation by performance, merit rating, or annual
review of performance.
15.
90% agree that there is a dynamic program of education & self improvement exists in the organization.
16.
91% respondents opinion is that everybody works sincerely to carry out the
transformation.
Results of hypothesis testing: The summary of results of chi-square test is given in a table on
the appendix section.
1. Hypothesis one: Χ2 value > critical value.
Comment: We reject null hypothesis and conclude that there is constancy of purpose toward
improvement of product & service.
2. Hypothesis two: Χ2 value > critical value.
Comment: We reject null hypothesis and conclude that management is liberal to adopt new
philosophy.
3. Hypothesis three: Χ2 value > critical value.
Comment: We reject null hypothesis and conclude that organization rely on mass inspection
to achieve quality.
4. Hypothesis four: Χ2 value > critical value.
Comment: We reject null hypothesis and found that management emphasis on long-term
profit.
5. Hypothesis five: Χ2 value > critical value.
Comment: We reject null hypothesis and conclude that organization maintain a loyal
relationship with the supplier.
6. Hypothesis six: Χ2 value > critical value.
Comment: We reject null hypothesis and conclude that there is constant improvement of
production & service system.
7. Hypothesis seven: Χ2 value > critical value.
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
Comment: We reject null hypothesis and found that there is enough training on the job.
8. Hypothesis eight: Χ2 value > critical value.
Comment: We reject null hypothesis and conclude that supervisors encourage the worker to
do better job.
9. Hypothesis nine: Χ2 value > critical value.
Comment: We reject null hypothesis and found that organization has an environment of
working without fear.
10. Hypothesis ten: Χ2 value > critical value.
Comment: We reject null hypothesis and conclude that there is no barrier between
departments and exist teamwork.
11. Hypothesis eleven: Χ2 value > critical value.
Comment: We reject null hypothesis and conclude that there are no slogans & targets for
the worker in doing work & not asking for zero defects & new levels of productivity.
12. Hypothesis twelve: Χ2 value > critical value.
Comment: We reject null hypothesis and found that there is an existence of quotas in factory
floor.
13. Hypothesis thirteen: Χ2 value > critical value.
Comment: We reject null hypothesis and conclude that supervisors evaluate worker based
on the number of units produced.
14. Hypothesis fourteen: Χ2 value > critical value.
Comment: We reject null hypothesis and found that there is evaluation on the basis of
performance, merit rating & pride of workmanship.
15. Hypothesis fifteen: Χ2 value > critical value.
Comment: We reject null hypothesis and conclude that there is a dynamic program of
education & self-improvement exist in the organization.
16. Hypothesis sixteen: Χ2 value > critical value.
Comment: We reject null hypothesis and found that everybody in the organization works
sincerely to accomplish the transformation.
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
V.
Summary and Conclusions:
The results of the study show that the RMG industries of Bangladesh practicing Deming
Management Method without having better knowledge about it.There are some lacking concerning
implementations of this method in TQM within RMG sector. Such as industries are highly
dependent on inspection to achieve quality; quotas in the factory floor; evaluation of worker is
done based on number of units produced. For the successful implementation of this method, RMG
industries need to focus on these significant issues to identify gaps, and to make an effort for
continuous improvement to achieve total quality.
The theory of quality management is new in Bangladesh and the state is in a limited
understanding condition. Some of the organizations adopted quality management techniques
have experienced an overall enhancement in their performance. These organizations can achieve
better relations with employees, increased productivity, enhanced customer satisfaction, better
market share and improved profitability by implementing Deming’s philosophy. By applying this
method they can maintain continuous improvement of product, focus on long-term profit, maintain
loyal relationship with supplier, constant improvement of production system, friendly working
environment, better team work etc.
The survey has been done in the RMG sector only; this can be done in the other sectors of
manufacturing industry. There is scope for further study considering relative significance of the
method. For the researchers, this study provides a novel approach for the application of Deming
Management Method in the RMG industry. With regard to the implications for future research, one
direction is to examine empirically, how manufacturing industries can use this method for quality
control. The study will generate information that will be useful for organizational leaders in
evaluating TQM practices in their own organizations, in Bangladesh, using Deming Management
Method to enhance organizational performance.
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26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
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Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
Appendix
1. The Deming Management Method
Point 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.
Point 2.
Adopt the new philosophy. We are in a new economic age. Western
management
must
awaken
to
the
challenge,
must
learn
their
responsibilities, and take on leadership of change.
Point 3.
Cease dependence on mass inspection to improve quality. Eliminate the
need for inspection on a mass basis by building quality into the product in
the first place.
Point 4.
End the practice of awarding business on the basis of price tag alone.
Instead, minimize total cost. Move toward a single supplier for any one
item, on a long-term relationship of loyalty and trust.
Point 5.
Improve constantly and forever the system of production and service, to
improve quality and productivity, and thus constantly decrease costs.
Point 6.
Institute training on the job.
Point 7.
Institute leadership. 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.
Point 8.
Drive out fear, so that everyone may work effectively for the company.
Point 9.
Break down barriers between departments. People in research, design,
sales, and production must work as a team, to foresee problems of
production and use that may be encountered with the product or service.
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
Point 10. Eliminate slogans, exhortations, and targets for the workforce asking for
zero defects and new levels of productivity. Such exhortations only create
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
workforce.
Point 11. a. Eliminate work standards (quotas) on the factory floor. Substitute
leadership.
b. Eliminate management by objective. Eliminate management by
numbers, numeric goals. Substitute leadership.
Point 12. a. Remove barriers that rob the hourly worker of his [or her] right to pride of
workmanship. The responsibility of supervisors must be changed from
sheer numbers to quality.
b. Remove barriers that rob people in management and in engineering of
their right to pride of workmanship. This means, inter alia, abolishment of
the annual or merit rating and of management by objective.
Point 13. Institute a vigorous program of education and self-improvement.
Point 14. Put everybody in the company to work to accomplish the transformation.
The transformation is everybody's job.
Source: From Out of Crisis: 23-24 by W. E. Deming, 1986, Cambridge: Massachusetts Institute of Technology, Center
for Advanced Engineering Study. Copyright 1986 by Massachusetts Institute of Technology, Center for Advanced
Engineering Study.
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
2.
Results of Hypotheses Testing: At critical value 9.49
Hypotheses
Χ2 value
H1
46.30
H2
108.30
H3
33.30
H4
66.60
H5
92.70
H6
140.60
H7
129.20
H8
134.30
H9
85.20
H10
131.30
H11
95.20
H12
86.90
H13
165.30
H14
117.80
H15
220.60
H16
136.50