Category Archives: Deming

Jeff Bezos and Root Cause Analysis

Posted on January 28, 2009 by John Hunter

Using quality tools really works. Lots of people don’t use them. Improving is often not any more difficult than just applying tools that have been used for decades. Continue reading →

Posted in Deming, Management, Quality tools, Respect | Tagged , , , | 2 Comments

Checklists Save Lives

Posted on January 17, 2009 by John Hunter

Checklists are a simple quality tool that have been used widely for decades. Pilots use them, without fail, to save lives. Some surgeons have been using them and the evidence is mounting that checklists can save many more lives if more in health care use them. Studies Show Surgeons Could Save Lives, $20B by Using Checklists Eight hospitals reduced the number of deaths from surgery by more than 40% by using a checklist that helps doctors and nurses avoid errors, … Continue reading →

Posted in Deming, Health care, Management, Process improvement, Psychology, Quality tools, Systems thinking | Tagged , , , , , , , | 3 Comments

Cutting Hours Instead of People

Posted on December 23, 2008 by John Hunter

When financial and economic realities reach the point that labor costs must be cut I believe a good option to consider is cutting hours (and pay) instead of people. Continue reading →

Posted in Career, Creativity, Deming, Innovation, Management, Respect, Systems thinking | Tagged , , | 2 Comments

Looting: Bankruptcy for Profit

Posted on December 19, 2008 by John Hunter

Looting: The Economic Underworld of Bankruptcy for Profit by George Akerlof, University of California, Berkeley; National Bureau of Economic Research (NBER) and Paul Romer, Stanford Graduate School of Business; National Bureau of Economic Research (NBER). George Akerlof was awarded the 2001 Nobel prize for economics. This is the abstract to their 1994 paper: During the 1980s, a number of unusual financial crises occurred. In Chile, for example, the financial sector collapsed, leaving the government with responsibility for extensive foreign debts. … Continue reading →

Posted in Deming, Economics, Management, Systems thinking | Tagged , , , | 7 Comments

Some Firms Cut Costs Without Resorting to Layoffs

Posted on December 17, 2008 by John Hunter

Some Firms Cut Costs Without Resorting to Layoffs Hypertherm Inc. has never laid off a permanent employee in its 40-year history. A 20% downturn in sales in recent months led the closely held maker of metal-cutting equipment to eliminate overtime, cut temporary staff and delay a facility expansion, says Chief Executive Dick Couch. Managers are transferring employees to busy segments from those with less work. The Hanover, N.H., company also may bring some outsourced manufacturing in-house to keep its 1,100 … Continue reading →

Posted in Deming, Management, Process improvement, Respect, Systems thinking | Tagged , , , ,

How Private Equity Strangled Mervyns

Posted on December 12, 2008 by John Hunter

I do not like the actions of many in “private equity.” I am a big fan of capitalism. I just object to those that unjustly take from the other stakeholders involved. It is not the specific facts of this case, that I see as important, but the thinking behind these types of actions. Which specific actions are to blame for this bankruptcy is not my point. I detest that financial gimmicks by “private capital” that ruin companies. Those gimmicks that … Continue reading →

Posted in Deming, Management, Respect, Systems thinking | Tagged , , , ,

Honda has Never had Layoffs and has been Profitable Every Year

Posted on November 25, 2008 by John Hunter

Engineers Rule, 2006 Longtime auto analyst John Casesa, who now runs a consulting company, says, “There’s not a company on earth that better understands the culture of engineering.” The strategy has worked thus far. Honda has never had an unprofitable year. It has never had to lay off employees. … The lean and compact Fukui, like all of his predecessors, is an engineer who started in R&D and later ran the subsidiary. While other auto chief-executives-to-be were punching keyboards in … Continue reading →

Posted in Deming, Lean thinking, Management, Respect | Tagged , , , , , | 7 Comments

What’s the Value of a Big Bonus?

Posted on November 21, 2008 by John Hunter

What’s the Value of a Big Bonus? by Dan Ariely To look at this question, three colleagues and I conducted an experiment. We presented 87 participants with an array of tasks that demanded attention, memory, concentration and creativity. We asked them, for instance, to fit pieces of metal puzzle into a plastic frame, to play a memory game that required them to reproduce a string of numbers and to throw tennis balls at a target. We promised them payment if … Continue reading →

Posted in Data, Deming, Management, Psychology, Respect, Systems thinking | Tagged , , , , ,

6 Leadership Competencies

Posted on November 13, 2008 by John Hunter

At the recent Annual W. Edwards Deming Institute Annual conference (this year held in Madison, Wisconsin) Peter Scholtes gave an excellent speech on the 6 Leadership Competencies from his book: The Leader’s Handbook. Those competencies are: The ability to think in terms of systems, and knowing how to lead systems. The ability to understand the variability of work in planning an problem solving Understanding how we learn, develop and improve. Leading true learning and improvement. Understanding people and why they … Continue reading →

Posted in Deming, Management, Psychology, Systems thinking | Tagged , , , , , , | 8 Comments

Righter Incentivization

Posted on November 5, 2008 by John Hunter

Incentive schemes to get people “motivated” often backfire. Why can’t we figure out how to incentivize the behavior we desire and have it not backfire on us? What is the righter way to dangle incentives in front of our employees to get them to do what we want? Well aiming at that is a bad strategy. Using extrinsic motivation less badly is possible but the correct answer is just don’t do it. The problems of individual incentives seem to far … Continue reading →

Posted in Deming, Management, Psychology, quote, Respect, Systems thinking | Tagged , , , , , , | 7 Comments

Get Rid of the Performance Review

Posted on October 27, 2008 by John Hunter

Get Rid of the Performance Review! by Samuel Culbert To make my case, I offer seven reasons why I find performance reviews ill-advised and bogus. … Inevitably reviews are political and subjective, and create schisms in boss-employee relationships. The link between pay and performance is tenuous at best. And the notion of objectivity is absurd; people who switch jobs often get much different evaluations from their new bosses. … Raises are then determined by the boss, and the boss’s boss, … Continue reading →

Posted in Deming, Management, Performance Appraisal | Tagged , , | 1 Comment

National Medal of Technology and Innovation

Posted on October 16, 2008 by John Hunter

Armand V. Feigenbaum received the 2007 National Medal of and Technology and Innovation for his leadership in the development of the economic relationship of quality costs, productivity improvement, and profitability, and for his pioneering application of economics, general systems theory and technology, statistical methods, and management principles that define The Total Quality Management approach for achieving performance excellence and global competitiveness. In 1987, Dr. W. Edwards Deming received the medal for his forceful promotion of statistical methodology, for his contributions … Continue reading →

Posted in Deming, Management | Tagged , , ,

Restaurant Eliminates Tipping to Improve System Performance

Posted on October 13, 2008 by John Hunter

Why Tip? by Paul Wachter When he opened the Linkery [the broken link was removed], Porter said, he hoped his employees would become as emotionally invested in the venture as he was, sharing a sense of purpose and joy in their work. … Porter instead proposed a service fee of 18 percent, to be pooled and split roughly 3 to 1 between the restaurant’s front of the house and its kitchen. … Porter, like the anti-tippers of yore, was persuaded … Continue reading →

Posted in Creativity, Deming, Economics, Management, Psychology, Systems thinking | Tagged , , , , | 1 Comment

2008 Deming Prize: Tata Steel

Posted on October 8, 2008 by John Hunter

Tata Steel, India, has been awarded the 2008 Deming Prize. They were the only organization to receive the prize this year. Mr. B. Muthuraman, Managing Director, Tata Steel, while expressing satisfaction over this accomplishment said, “No other activity made us think so deeply about our business and relationships than the process of applying for the Deming Prize. Total Quality Management (TQM) is a fundamental way of managing business and every organization can gain from institutionalizing the culture necessary to win … Continue reading →

Posted in Deming, India, Management, Manufacturing, Process improvement | Tagged , , | 5 Comments

Motivate or Eliminate De-Motivation

Posted on October 7, 2008 by John Hunter

A huge failure I still see is managers thinking in a theory x way, 50 years after McGregor’s The Human Side of Enterprise. Continue reading →

Posted in Deming, Management, Psychology, Respect | Tagged , , , , , , , | 5 Comments

Dr. Deming’s 15th Point

Posted on September 24, 2008 by John Hunter

Guest post from John McConnell, Wysowl Pty Ltd Dr. Deming opened his first Australian seminar in 1986 with the question, “What are we here to do”? After some discussion he answered his own question with, “To learn”, and “To have a good time”. He repeated this opening at subsequent seminars. The Fifteenth Point Mr. Murray Mansfield of Melbourne has what I believe to be the only completely up to date version of Dr. Deming’s famous Obligations for Top Management. After … Continue reading →

Posted in Deming, Fun, Management, Psychology, Respect | Tagged , , ,