Category Archives: quote

Dr. Deming Webcast on the 5 Deadly Diseases

The W. Edwards Deming Institute has posted Dr. Deming’s 1984 video on the 5 deadly diseases of western management. Lack of constancy of purpose Emphasis on short term profits – “creative” accounting, focus on quarterly profits Annual Performance Appraisals – management by objective, management by fear Mobility of management – [see Toyota for a great example of a company that operates on different principles – where the leadership has been with Toyota for decades] Running a company on visible figures … Continue reading →

Posted in Deming, Economics, Lean thinking, Management, Performance Appraisal, Popular, quote, webcast | Tagged , , , , , , , , | 7 Comments

YouTube Uses Multivariate Experiment To Improve Sign-ups 15%

Google does a great job of using statistical and engineering principles to improve. It is amazing how slow we are to adopt new ideas but because we are it provides big advantages to companies like Google that use concepts like design of experiments, experimenting quickly and often… while others don’t. Look Inside a 1,024 Recipe Multivariate Experiment A few weeks ago, we ran one of the largest multivariate experiments ever: a 1,024 recipe experiment on 100% of our US-English homepage. … Continue reading →

Posted in Customer focus, Data, Design of Experiments, Google, IT, Management, Process improvement, Quality tools, quote, Science, Software Development, Statistics | Tagged , , , , , , , , , , , | 2 Comments

When Performance-related Pay Backfires

When Economic Incentives Backfire by Samuel Bowles, Sante Fe Institute Dozens of recent experiments show that rewarding self-interest with Economic incentives can backfire when they undermine what Adam Smith called “the moral sentiments.” Punished by Rewards, by Alfie Kohn, is a great book on this topic. The area of “motivating” employees is one it is often hard for managers to learn. Even managers that have been studying Deming, Ackoff, Ohno… for years still have trouble with the idea that trying … Continue reading →

Posted in Competition, Data, Deming, Economics, Management, Performance Appraisal, Psychology, quote, Statistics, Systems thinking | Tagged , , , , , , | 4 Comments

Akio Toyoda’s Message Shows Real Leadership

Speech by Akio Toyoda Since the birth of Toyota, the company’s philosophy has always been to “contribute to society.” … “Contributing to society” at Toyota means two things. First, it means, “to manufacture automobiles that meet the needs of society and enrich people’s lives.” And second, “to take root in the communities we serve by creating jobs, earning profits and paying taxes, thereby enriching the local economies where we operate.” … Toyota has overcome many challenges during its seven decades … Continue reading →

Posted in Customer focus, Deming, Lean thinking, Management, Manufacturing, quote, Systems thinking, Toyota Production System (TPS) | Tagged , , , , , , , , , , | 14 Comments

Peter Scholtes

Peter Scholtes died peacefully this morning [11 July 2009] in Madison, Wisconsin. His family was with him. My father wrote about the First Street Garage project in W. Edwards Deming’s Out of the Crisis (pages 245-247). Peter (who was working for the City of Madison at the time) and he became good friends working on that project together. Peter went to work for Joiner Associates afterwards and was a primary author of the Team Handbook. And Peter spent many years … Continue reading →

Posted in Deming, Management, quote, Systems thinking | Tagged , , , , , | 34 Comments

Dr. Russell Ackoff Webcast on Systems Thinking

Dr. Ackoff is one of two management thinkers that any manager, that is serious about improving management results in their organization, should study (the other is Dr. Deming). There are plenty of others that are also great resources. From part 2 of his talk: “Why-questions, about objects called systems, cannot be answered by the use of analysis… The product of explanation is understanding… The product of analysis is how things work, never why they work the way they do. Explanations … Continue reading →

Posted in Creativity, Deming, Management, quote, Science, Systems thinking, webcast | Tagged , , , , , | 4 Comments

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

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

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

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

Managing Passionate Employees

Passion vs. Productive There are actually few organizations that can support passionate employees – even if they say they want them. That’s because the original industrial revolution was designed to support productivity. Productivity means you produce. That’s how you’re measured. Passion is difficult to quantify … Managers want passionate employees, but don’t always know how to manage them. Passionate employees question things, probe and push. Who’s got the time to deal with that? Productive employees get things done. No questions … Continue reading →

Posted in Creativity, Management, Psychology, quote, Respect, Systems thinking | Tagged , , , , , , , , , ,

Google Should Stay True to Their Management Practices

I believe in Google’s past, present and future. They have shown a great ability to ignore the short term focus that dominates (and kills success) of so many companies today. I am happy to invest in Google for the long term. This current reaction to the economic crisis, is one of many times Google can be seen to be making significant changes to adapt based on market conditions and the results of their experiments and experiences. Google’s management in general … Continue reading →

Posted in Google, Management, quote | Tagged , , , , , , | 3 Comments

Information Technology and Business Process Support

I moved from management improvement work into information technology work (where I continue to practice management improvement). Many IT practices follow quality management guidelines well (agile software development for one). I have found it far easier to design and provide software solutions than convince people to change their processes directly. I found it funny that as I delivered new IT solutions, in which was embedded a redesign of the process, those changes were often accepted without any significant debate. But … Continue reading →

Posted in IT, Management, Process improvement, Quality tools, quote, Software Development, Systems thinking | Tagged , , , , , , , | 6 Comments

Righter Incentivization

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

Global Manufacturing Data 2007

The updated data from the United Nations on manufacturing output by country clearly shows the USA remains by far the largest manufacturer in the world. UN Data, in billions of current US dollars: Country 1990 1995 2000 2005 2006 2007 USA 1,041 1,289 1,543 1,663 1,700 1,831 China 143 299 484 734 891 1,106 Japan 804 1,209 1.034 954 934 926 Germany 438 517 392 566 595 670 Russian Federation 211 104 73 222 281 362 Italy 240 226 206 … Continue reading →

Posted in Data, Economics, India, Manufacturing, quote | Tagged , , , , , , , , , , | 1 Comment

Six Sigma v. Common Sense

Response to LinkedIn question [the broken link was removed]: “Whether Six Sigma as a quality tool really delivers the benefits ? How does it makes difference from a common sense approach ? (Where the process wastes and the required solution is known / can be easily identified just by applying common sense)” Six sigma (or another management improvement method) can help in several ways. First, lots of things that are sensible are not done. A method to assure that more … Continue reading →

Posted in Management, Quality tools, quote, Six sigma | Tagged , , , , , , | 2 Comments