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Some Good Management Advice

Really. Some Good Management Advice. W. Edwards Deming B 10-14-1900 D 12-20-1993 The architect of: the Japanese Miracle the resurrection of Ford Motor Co in the mid 80’s. In A Nutshell.

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Some Good Management Advice

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  1. Really Some Good Management Advice

  2. W. Edwards Deming B 10-14-1900 D 12-20-1993 The architect of: the Japanese Miracle the resurrection of Ford Motor Co in the mid 80’s

  3. In A Nutshell • When people and organizations focus on quality, quality increased and costs fall over time Results of Work Quality = Total Costs • When people and organizations focus primarily on costs, costs tend to rise and quality declines over time

  4. To Improve any business Must change your Business Approach. 4 step process: to “Profound knowledge” • Appreciation of a system – understanding processes • Knowledge of variation – stuff happens • Knowing what can be known & what can’t • Understanding human nature

  5. 14 point • Have a plan and a purpose • Adopt a new philosophy • Build quality into a process to reduce the necessity for constant inspection • Create long term relationships of trust with suppliers, team members and customers • Constantly improve production and service – it’s a never ending cycle • Train, improve and train some more • Have leadership instead of management

  6. 14 point • You can’t lead by fear • Break down barriers in a company – work together • Eliminate slogans, targets, and exhortations • Avoid adversarial relationships • Don’t use statistics and numbers as a sledgehammer • Create pride in workmanship • Have a program of education and self improvement • Involve everyone in the process

  7. 7 Deadly Sins • Lack of constancy of purpose • Emphasis on short term profits • Evaluation by performance, merit rating or annual review • Mobility of management • Running a company on visible figures alone • Excessive medical costs • Excessive costs of warranty

  8. Notable Quotes from Dr. Deming • There is no substitute for knowledge • The most important things can’t be measured • The most important things are unknown or unknowable • Experience, by itself, teaches nothing • By what method … only the method counts ( the process to measure affects the results) • You can expect what you inspect • Management is the problem

  9. Competing Philosophies – Six Sigma • Six Sigma is a set of practices to improve manufacturing processes • Builds on previous processes: • TQM -- Quality Control -- Zero Defects • Basic tenets, in common with other methods: • Continuous efforts result in stable processes • Processes can be measured, analyzed improved and controlled • Entire organization has to be committed.

  10. Competing Philosophies – Six Sigma • Difference in Six Sigma: • Clear focus on achieving measurable results • Emphasis on management leadership • Special infrastructure of “Champions” “master black belts, black belts, etc to lead it • Emphasis on measuring • About 2/3 of Fortune 500 have tried it • Jack Welch at GE championed

  11. Tools of Six Sigma More information at www.wikipedia.org, search for six sigma

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