Tag Archives: Deming

Toyota Targets 50% Reduction in Maintenance Waste

Inside the Toyota Maintenance Reduction 50 Percent by Paul V. Arnold (sadly the site broke the link, so I removed it): First, it is Maintenance Reduction 50 Percent, not Cost Reduction 50 Percent or Employee Reduction 50 Percent. “The goal is to reduce maintenance activities and the maintenance that you perform on a machine by 50 percent. That goal covers every machine and every activity,” says TMMK facilities control manager David Absher. This is not about arbitrarily chopping budgets or … Continue reading →

Posted in Data, Deming, Lean thinking, Management, Management Articles, Process improvement, Toyota Production System (TPS) | Tagged , , , | 4 Comments

Senge and Deming

Jeff Sutherland quoting Dr. Deming‘s response to Peter Senge request for a comment on his book, The Fifth Discipline: “Our prevailing system of management has destroyed our people. People are born with intrinsic motivation, self-respect, dignity, curiosity to learn, joy in learning. The forces of destruction begin with toddlers—a prize for the best halloween costume, grades in school, gold stars—and on up through the university. On the job, people, teams, and divisions are ranked, rewarded for the top, punished for … Continue reading →

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

Making Changes and Taking Risks

Sales Force by Curtis Hartman, 1996 explores Ron Rodin’s use of Deming’s ideas at Marshall Industries. Ron Rodin’s book, Free Perfect and Now, is excellent. The system had to change. “We eliminated commissions, incentives, promotions, contests, P&Ls, forecasts, budgets, the entire functional organization chart,” Rodin says. It was a radical move. Contests and commissions — internal competition — were a way of life in the industry, the universal motivational tool. Rodin was hammered when he unveiled the plan in an … Continue reading →

Posted in Deming, IT, Management, Management Articles | Tagged , , , | 4 Comments

Dangers of Extrinsic Motivation

The Econ 101 Management Method by Joel Spolsky. Once again Joel presents interesting ideas very well – past posts referencing Joel. But when you offer people money to do things that they wanted to do, anyway, they suffer from something called the Overjustification Effect. “I must be writing bug-free code because I like the money I get for it,” they think, and the extrinsic motivation displaces the intrinsic motivation. Since extrinsic motivation is a much weaker effect, the net result … Continue reading →

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

Profits and a Better World

I like this post in response to a comment I sent to the Small Business Daily Buzz blog: More Deming Management Resources [the broken link was removed]: Deming saw it differently: he felt that businesses could improve the world and still earn profits. … I wish every business course taught that profit and good citizenship are not mutually exclusive, but rather highly complimentary.

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Another Quota Failure Example

Innocent People Placed On ‘Watch List’ To Meet Quota You could be on a secret government database or watch list for simply taking a picture on an airplane. Some federal air marshals say they’re reporting your actions to meet a quota, even though some top officials deny it. The air marshals, whose identities are being concealed, told 7NEWS that they’re required to submit at least one report a month. If they don’t, there’s no raise, no bonus, no awards and … Continue reading →

Posted in Data, Deming, Management, Psychology, Systems thinking | Tagged , , , , , | 3 Comments

Evolution of the PDSA Cycle

Evolution of the PDSA Cycle by Ron Moen and Cliff Norman. Another historical article that explores the growth of management improvement concepts – this time the PDSA improvement cycle. via: Deming Electronic Network [the broken link was removed] See also: Improvement Handbook by Gerald J. Langley, Kevin M. Nolan, Clifford L. Norman, Lloyd P. Provost and Thomas W. Nolan. Deming on Management Variation Through the Ages by Lloyd Provost and Clifford Norman

Posted in Deming, Management, Management Articles, Process improvement, Quality tools | Tagged , , , ,

The Exciting Life of Industrial Statisticians

Never a Dull Day: The Life of an Industrial Statistician by Gerry Hahn. Gerry Hahn was one of the great applied statisticians of the last 50 years, working at GE for over 45 years. Six sigma has many variants, he is one of those that understood how to apply six sigma well. All of this provides great new opportunities for industrial statisticians to serve as statistical leaders-a term popularized by the late and great Ed Deming (see Hahn and Hoerl, … Continue reading →

Posted in Career, Data, Management, Statistics | Tagged , | 1 Comment

Supplier Development Article

Supplier development in a lean age [the broken link was removed] by Rich Weissman “We need to keep in mind why we are doing supplier development and relationship management, and profit needs to be the focus of our efforts. Profitable suppliers will tend to be happier suppliers, and happier suppliers will ultimately perform better.” I get the impression from this and many other articles that people are scared to talk about any other aims than profit. Deming didn’t have such … Continue reading →

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

More on Obscene CEO Pay

Study site: CEO-worker pay imbalance grows [the broken link has been removed] includes the graph above. Unfortunately this reverse robin hood (steal from the workers, stock holder, customers…) and give to the CEO tale continues. Hopefully someday soon we can at least turn the momentum in the right direction (stopping these incredibly excessive “pay” packages). Even then it will take quite a deal of reducing these ridiculous “pay” packages to reach some sense of decency. CNN article based on the … Continue reading →

Posted in Management | Tagged , , , , , , , , | 12 Comments

Better and Different

Reaction to Toyota: Better or Different? and Seth Godin’s post. The answer, as I see it, is to be better and different (when necessary). In Seth’s post he talks about challenging people to find not just better solutions but different solutions. That is fine, as long as people don’t lose focus on being better. Neither one alone is adequate (at least not always). To achieve great success you must be both better and different. That is what Toyota does. Frankly, … Continue reading →

Posted in Deming, Innovation, Management, quote | Tagged , , , | 11 Comments

Problems Caused by Performance Appraisal

People are increasingly challenging the notion that we just have to live with performance appraisal systems. As usually, I will make my suggestion that chapter 9 of the Leader’s Handbook offers great material on performing without appraisal (and the rest of the book is great too). Continue reading →

Posted in Deming, Management, Management Articles, Performance Appraisal | Tagged , , , , | 2 Comments

Management: Geeks and Deming

Why Business Needs More Geeks [the broken link was removed] by Robert May: then along came Wall Street. Obsessed with quarterly profit increases and seeing them as disconnected from value creation, Wall Street encouraged businesses to think short-term. The things that led to value creation – things like innovation, continued learning, employee development, long-term focus – were replaced by pump-and-dump management styles. There is a great deal of similarity between this article and Deming’s ideas. Several of Deming’s 14 obligation … Continue reading →

Posted in Deming, Innovation, Management, Management Articles | Tagged , , , | 2 Comments

Problems with Bonuses

What sort of bonuses should we pay? by Seth Godin: Money, it’s been shown time and time again, is a demotivator. I’m not talking about a fair or even generous salary. Being a cheapskate is no way to find a great employee. But once people have joined your team, incremental money–bonuses and the like–usually demotivate people. He is right. Why salary bonus and other incentives fail to meet their objectives by Dale Asberry. Lean Manufacturing Visionary Jim Womack On Frontiers … Continue reading →

Posted in Deming, Management, Performance Appraisal, Psychology, Systems thinking | Tagged , , , , , | 5 Comments

A Company’s Purpose is to be Useful to Society

Toyota powers to the front [the broken link was removed] (Toyota President, Katsuaki Watanabe) eschews the normal management mantra of shareholder value above all. A company’s purpose, Watanabe insists, is to be useful to society. W. Edwards Deming described the purpose of an organization in New Economics, on page 51, as: The aim proposed here for any organization is for everybody to gain – stockholders, employees, suppliers, customers, community, the environment – over the long term. More from our previous … Continue reading →

Posted in Deming, Lean thinking, Management, Toyota Production System (TPS) | Tagged , , , , , , | 1 Comment

Deming and Toyota

In response to Deming Electronic Network message, Deming and Toyota (broken link removed): I have read a few of the threads referring to Toyota and their success. I am somewhat familiar with the Toyota Production System (where Lean principles sprouted from), but I have often wondered if Toyota subscribed to all of Deming’s 14 points. I believe Toyota applied Deming’s ideas to create a management system and continued to develop that system to create the Toyota Production System (also known … Continue reading →

Posted in Deming, Management, Popular, Toyota Production System (TPS) | Tagged , , , | 1 Comment