W. Edwards Deming: Out of the Crisis: Preface
Excerpted from http://caes.mit.edu/deming/ootc-preface.html
The aim of this book is transformation of the style of American management. Transformation
of American style of management is not a job of reconstruction, nor is it revision. It requires a
whole new structure, from foundation upward. Mutation might be the word, except that mutation
implies unordered spontaneity. Transformation must take place with directed effort. The aim of
this book is to supply the direction. Need for transformation of governmental relations with
industry is also necessary, as will be obvious.
Failure of management to plan for the future and to foresee problems has brought about waste
of manpower, of materials, and of machine-time, all of which raise the manufacturer's cost and
price that the purchaser must pay. The consumer is not always willing to subsidize this waste. The
inevitable result is loss of market. Loss of market begets unemployment. Performance of
management should be measured by potential to stay in business, to protect investment, to ensure
future dividends and jobs through improvement of product and service for the future, not by the
quarterly dividend.
It is no longer socially acceptable to dump employees on to the heap of unemployed. Loss of
market, and resulting unemployment, are not foreordained. They are not inevitable. They are manmade. …
Everyone doing his best is not the answer. It is first necessary that people know what to do.
Drastic changes are required. The first step in the transformation is to learn how to change: that is,
to understand and use the 14 points ... Long-term commitment to new learning and new
philosophy is required of any management that seeks transformation. The timid and the
fainthearted, and people that expect quick results, are doomed to disappointment.
Solving problems, big problems and little problems, will not halt the decline of American
industry, nor will expansion in use of computer, gadgets, and robotic machinery. Benefits from
massive expansion of new machinery also constitute a vain hope. Massive immediate expansion in
the teaching of statistical methods to production workers is not the answer either, nor wholesale
flashes of quality control circles (QC-Circles). All these activities make their contribution, but they
only prolong the life of the patient; they can not halt the decline. Only transformation of the
American style of management, and of governmental relations with industry, can halt the decline
and give American industry a chance to lead the world again.
The job of management is inseparable from the welfare of the company. Mobility, here a while
and gone, from the management of one company to the management of another, is something that
American industry can no longer afford. Management must declare a policy for the future, to stay
in business and to provide jobs for their people, and more jobs.
…Unfriendly takeover and leveraged buyout are a cancer in the American system. Fear of
takeover, along with emphasis on the quarterly dividend, defeats constancy of purpose.
Dependence on protection by tariffs and laws to "buy American" only encourage incompetence.
Deming's 14 Points
(Excerpted from Chapter Two of OUT OF THE CRISIS by W. Edwards Deming, copied from
http://deming.ces.clemson.edu/pub/den/deming_philosophy.htm#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. Western management must awaken
to the challenge, must learn their responsibilities, and take on leadership for change.
3. Cease dependence 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. End the practice of awarding business on the basis of price tag. 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 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, so that everyone may work effectively for the company
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, exhortations, and targets for the work force 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 work force.
11a. Eliminate work standards (quotas) on the factory floor. Substitute leadership.
b. Eliminate management by objective. Eliminate management by numbers, numerical goals.
Substitute leadership.
12a. Remove barriers that rob the hourly worker of his right to joy 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 joy of
workmanship. This means abolishment of the annual merit rating and of management by
objective
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 following 3 figures taken from http://www.betterproductdesign.net/maturity.htm
Origins and overview of maturity approaches
Maturity approaches have their roots in the field of quality management. One of the earliest of these is
Crosby's Quality Management Maturity Grid (QMMG) which describes the typical behaviour exhibited by a
firm at five levels of ‘maturity’, for each of six aspects of quality management (see Fig. 1). The QMMG had a
strong evolutionary theme, suggesting that companies were likely to evolve through five phases Uncertainty, Awakening, Enlightenment, Wisdom, and Certainty – in their ascent to quality management
excellence.
Measurement
Categories
Stage I:
Uncertainty
Stage II:
Awakening
Stage III:
Enlightenment
Stage IV:
Wisdom
Stage V:
Certainty
Management
understanding
and attitude
No comprehension of
quality as a management
tool. Tend to blame
quality department for
"quality problems"
Recognising that quality
management may be of
value but not willing to
provide money or time
to make it happen.
While going through
quality improvement
program learn more about
quality management;
becoming supportive and
helpful.
Participating.
Understand absolutes of
quality management.
Recognise their personal
role in continuing
emphasis.
Consider quality
management an
essential part of
company system.
Quality
organisation
status
Quality is hidden in
manufacturing or
engineering departments.
Inspection probably not
part of organisation.
Emphasis on appraisal
and sorting.
A stronger quality
leader is appointed but
main emphasis is still
on appraisal and
moving the product.
Still part of
manufacturing or other.
Quality Department
reports to top
management, all appraisal
is incorporated and
manager has role in
management of company.
Quality manager is an
officer of company;
effective status
reporting and
preventative action.
Involved with consumer
affairs and special
assignments.
Quality manager on
board of directors.
Prevention is main
concern. Quality is
a thought leader.
Problem
handling
Problems are fought as
they occur; no
resolution; inadequate
definition; lots of yelling
and accusations
Teams are set up to
attack major problems.
Long-range solutions
are not solicited.
Corrective action
communication
established. Problems are
faced openly and resolved
in an orderly way.
Problems are identified
early in their
development. All
functions are open to
suggestion and
improvement.
Except in the most
unusual cases,
problems are
prevented.
Cost of quality
as % of sales
Reported: unknown
Actual: 20%
Reported: 3%
Actual: 18%
Reported: 8%
Actual: 12%
Reported: 6.5%
Actual: 8%
Reported: 2.5%
Actual: 2.5%
No organised activities.
No understanding of
such activities.
Trying obvious
"motivational" shortrange efforts.
Implementation of the 14step program with
thorough understanding
and establishment of each
step.
Continuing the 14-step
program and starting
Make Certain
Quality
improvement is a
normal and
continued activity.
"We don't know why we
have problems with
quality"
"Is it absolutely
necessary to always
have problems with
quality?"
"Through management
commitment and quality
improvement we are
identifying and resolving
our problems"
"Defect prevention is a
routine part of our
operation"
"We know why we
do not have
problems with
quality"
Quality
improvement
actions
Summation of
company quality
posture
Figure 1: Crosby's Quality Management Maturity Grid (QMMG)
http://www.betterproductdesign.net/maturity.htm (continued...)
Perhaps the best known derivative from this line of work is the Capability Maturity Model (CMM)
for software. The CMM takes the approach of identifying a cumulative set of ‘key process areas’
(KPAs) which all need to be performed as the maturity level increases. This is described as a
‘staged’ representation, and leads to the attribution of a single level for maturity in the range 1-5.
(see Fig 2).
Level
Description
Process areas
Optimising
Continuous process improvement is enabled by quantitative feedback
from the process and from piloting innovative ideas and technologies
· Defect Prevention
· Technology Change Management
· Process Change Management
Managed
Detailed measures of the software process and product quality are
collected. Both the software process and products are quantitatively
understood and controlled.
Defined
Repeatable
Initial
· Quantitative Process Management
· Software Quality Management
The software process for both management and engineering activities is
documented, standardised, and integrated into a standard software
process for the organisation. All projects use an approved, tailored
version of the organisation's standard software process for developing
and maintaining software
· Organization Process Focus
· Organization Process Definition
· Training Program
· Integrated Software Management
· Software Product Engineering
· Intergroup Coordination
· Peer Reviews
Basic project management processes are established to track cost,
schedule, and functionality. The necessary process discipline is in place
to repeat earlier successes on projects with similar applications
· Requirements Management
· Software Project Planning
· Software Project Tracking and Oversight
· Software Subcontract Management
· Software Quality Assurance
· Software Configuration Management
The software process is characterised as ad hoc, and occasionally even
chaotic. Few processes are defined, and success depends on individual
effort and heroics
· no required processes
Figure 2: Maturity levels and process areas of the Software CMM
http://www.betterproductdesign.net/maturity.htm (continued...)
Although a number of different types of maturity model have been proposed (see Fig. 3), they share the common
property of defining a number of dimensions or process areas at several discrete stages or levels of maturity, with a
description of characteristic performance at various levels of granularity.
The number of levels is to some extent arbitrary. One key aspect of the Quality Grid approach is that it provides
descriptive text for the characteristics traits of performance at each level. This becomes increasingly difficult as the
number of levels is increased, and adds to the complexity of the tool, such that descriptive grids typically contain no
more than 5 levels.