Category Archives: Deming

Why Setting Goals can Backfire

Dr. Deming long ago stated in his 14 obligations of management: “Eliminate numerical goals, numerical quotas and management by objectives.” I think he was right then, and is right now. A goal can help set the scope of the effort. If you are aiming for 2% improvement different strategies may make sense than if you are aiming at 50% improvement. But that type of use is rare. The problem with goals is what actually happens in organizations. They create serious … Continue reading →

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Red Bead Experiment Webcast

Dr. Deming used the red bead experiment to present a view into management practices and his management philosophy. The experiment provides insight into all four aspects of Dr. Deming’s management system: understanding variation, understanding psychology, systems thinking and the theory of knowledge. Red Bead Experiment by Steve Prevette Various techniques are used to ensure a quality (no red bead) product. There are quality control inspectors, feedback to the workers, merit pay for superior performance, performance appraisals, procedure compliance, posters and … Continue reading →

Posted in Data, Deming, Education, Management, Performance Appraisal, Psychology, quote, Respect, webcast | Tagged , , , , , , , , , , , | 3 Comments

Leadership

Leadership is the act of making others effective in achieving an aim. Leadership is not about being great yourself. Leadership does involve more than making others effective. Leaders need to know what needs to be done, and then make others effective, based on that knowledge. As Dr. Deming said about any situation: It is not enough to do your best; you must know what to do, and then do your best. Leadership is not about getting a good performance appraisal. … Continue reading →

Posted in Deming, Management, Systems thinking | Tagged , , , , | 4 Comments

Building a Great Workforce

How P&G Finds and Keeps a Prized Workforce by Roger O. Crockett “We actually recruit for values,” says Chief Operating Officer Robert McDonald. “If you are not inspired to improve lives, this isn’t the company you want to work for.” … The P&G strategy starts on college campuses. The Cincinnati company dispatches line managers rather than human resource staffers to do much of its recruiting. … For the few who get hired, their work life becomes a career-long development process. … Continue reading →

Posted in Career, Customer focus, Deming, Innovation, Lean thinking, Management, Management Articles, Psychology, Systems thinking | Tagged , , , , , , | 1 Comment

How We Know What We Know

Dr. W. Edwards Deming’s management philosophy is a system of management composed of four interdependent areas: knowledge about variation, understanding psychology, systems thinking and the theory of knowledge. The theory of knowledge is the least understood, and the least adopted in the various other management improvement theories (lean manufacturing, six sigma, theory of constraints…). A recent op-ed in the New York Times touches on the ideas behind how we learn: Learning How to Think The actor was introduced as “Dr. … Continue reading →

Posted in Deming, Management, Psychology, quote | Tagged , , , , , | 8 Comments

Checklists in Software Development

Verify your work with checklists WHO has recently shown that surgical deaths can be reduced by a third when hospitals follow their Surgical Safety Checklist. The checklist is very low tech. It includes questions like whether the patient has been properly identified, whether the proper tools are available, and whether everyone knows what kind of procedure is about to be done. If a checklist so simple can save so many lives, I thought the technique could surely help us do … Continue reading →

Posted in Deming, IT, Management, Process improvement, Quality tools, Software Development | Tagged , , , | 3 Comments

Out of the Crisis Seminar

I will be co-presenting an Out of the Crisis seminar for the W. Edwards Deming Institute next month, April 20-22, in Philadelphia. Companies around the world are on the brink of destruction. When they get bailed out, or economies improve, they won’t survive if they continue to make products and provide services the same way as before, with the same style of management. They need to change. It was the ideas of an American, W. Edwards Deming, that transformed Japanese … Continue reading →

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Jeff Bezos Spends a Week Working in Amazon’s Kentucky Distribution Center

Photo of Jeff Bezos during the 2005 O’Reilly Emerging Technology Conference by James Duncan. Jeff Bezos, Amazon CEO, is working for a week in Amazon’s Kentucky distribution center. I hope, and based on his past, I believe, that he is going to the gemba (Genchi Genbutsu) to learn more about how Amazon operates. That would be great. He worked on wall street and understands the fake constraints they attempt to put companies (you must focus on short term profits, you … Continue reading →

Posted in Books, Creativity, Customer focus, Deming, Lean thinking, Management, Process improvement, Psychology, quote, Respect, Systems thinking | Tagged , , , , , | 5 Comments

How to Create a Control Chart for Seasonal or Trending Data

Lynda Finn, President of Statistical Insight, has written an article on how to create a control chart for seasonal or trending data (where there is an underlying structural variation in the data). Essentially you need to account for the structural variation to create the control limits for the control chart. She also provides a Minitab project file. Both are available for download from the Curious Cat Management Improvement Library. Related: Control Charts in Health Care – Common Cause Variation – … Continue reading →

Posted in Data, Deming, Management, Process improvement, Quality tools, Science, Statistics | Tagged , , , , , , | 3 Comments

Knowledge, Imagination, Innovation and Risk

A consumer can seldom say today what new product or new service would be desirable and useful to him three years from now, or a decade from now. New product and new types of service are generated, not by asking the consumer, but by knowledge, imagination, innovation, risk, trial and error on the part of the producer, backed by enough capital to develop the product or service and to stay in business during the lean months of introduction. W. Edwards … Continue reading →

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USA Spent $2.2 Trillion or $7,421 Per Person on Health Care in 2007

Health spending in the United States grew 6.1 percent in 2007, to $2.2 trillion or $7,421 per person. For comparison the total GDP per person in China is $6,100. This continues the trend of health care spending taking an every increasing portion of the economic output (the economy grew by 4.8 percent in 2007). This brings health care spending to 16.2% of GDP (which is yet another, in a string of record high percentages of GDP spent on health care). … Continue reading →

Posted in Deming, Economics, Health care | Tagged , ,

Warren Buffett’s Letter to Shareholders 2009

Warren Buffett published his letter to shareholders yesterday. As usual, it is of great interest to anyone interested in the economic, investing and management ideas. In 1995, MidAmerican became the major provider of electricity in Iowa. By judicious planning and a zeal for efficiency, the company has kept electric prices unchanged since our purchase and has promised to hold them steady through 2013. MidAmerican has maintained this extraordinary price stability while making Iowa number one among all states in the … Continue reading →

Posted in Deming, Economics, Investing, Management, Respect | Tagged , , | 2 Comments

NUMMI, and GM’s Failure to Manage Effectively

Gipsie Ranney recently sent me an article on her thoughts on NUMMI and the current problems with the Big Three car makers to post to the Curious Cat Management Improvement Library. NUMMI is the plant that Toyota and General Motors run together as a joint venture. The article is excellent. The answer to a question asked by someone else on the tour was stunning to me. The person asked what kind of computerized inventory system they had at NUMMI. The … Continue reading →

Posted in Deming, Lean thinking, Management, Management Articles, Manufacturing, quote, Respect, Systems thinking, Toyota Production System (TPS) | Tagged , , , , , , , , | 2 Comments

Helping Employees Improve

One aspect of managing people is to provide positive feedback and show appreciation. Doing so is important. People benefit from encouragement and reinforcement. In addition to just telling them, take action to show your appreciation. The Dilbert workplace is alive and well. And even in above average management systems there is plenty of resistance faced by those looking to improve systems. For those employees that are making the attempt to improve the organization go beyond saying thanks: actually demonstrate your … Continue reading →

Posted in Deming, Fun, Management Articles, Popular, Respect, Software Development, Statistics, Toyota Production System (TPS) | Tagged , , , , , , | 2 Comments

Hire People You Can Trust to Do Their Job

How great companies turn crisis into opportunity The right people don’t need to be managed. The moment you feel the need to tightly manage someone, you’ve made a hiring mistake. The right people don’t think they have a job: They have responsibilities. If I’m a climber, my job is not [just] to belay. My responsibility is that if we get in trouble, I don’t let my partner down. The right people do what they say they will do, which means … Continue reading →

Posted in Deming, Management, Management Articles, Psychology, Respect, Systems thinking | Tagged , , , , , | 4 Comments

Newspaper Innovation In Kansas

The newspaper industry is facing challenging times. One success story is the Lawrence Journal-World in Lawrence, Kansas. I first heard about their efforts years ago: Watchful Eyes on Kansas Media Innovations, NPR, 2005 Many media companies hoped that convergence — combining television, print and online resources — would help them survive. Instead, many companies have lost money on online journalism. In Lawrence, Kan., Dolph Simons’ Journal-World newspaper has taken ambitious news-gathering approaches to local issues. The Newspaper of the Future, … Continue reading →

Posted in Creativity, Customer focus, Deming, Innovation, IT | Tagged , , , , , | 1 Comment