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    W. Edwards Deming's Fourteen Points

    and

    Seven Deadly Diseases of Management

    W. Edward Deming is generally recognized as being the hilosoher!guru of the "otal

    #uality Movement. Deming develoed a set of Fourteen Management Princiles andSeven Deadly Diseases in the early $%&s. "here are various versions of the Fourteen

    Points in circulation. "he version reroduced here is an early one that Deming handed out

    at his famous four!day seminars.

    When an organization is early in its "otal #uality efforts( there is need to discuss the

    underlying hilosohy that forms the bedroc) of strategies that will be adoted. *ne of

    the most ractical ways to do this is to discuss Deming's Fourteen Points. We includehere a set of +uestions that facilitators can use for romting grou discussions. We have

    found it ta)es about eight hours of discussion to comlete all the +uestions in this

    e,ercise. "eams can do these as art of a lunch brea) or these +uestions can be discussed

    in more formalized two!hour sessions.

    For elaboration on the Fourteen Points and Seven Deadly Diseases(we recommend

    reading Deming's Out of the CrisisorFour Days with Dr. Demingby -az)o and

    Saunders.

    DEMING'S FOURTEEN PRINCIPLES OFMANAGEMENT

    $. reate constancy of urose towards imrovement of roduct and service(

    with the aim to become cometitive( stay in business( and to rovide /obs.

    "he stress here is on 0constancy of urose.0 *rganizations that are not constant will fli!

    flo from management fad to management fad. "hey will wobble between worrying

    about +uality and shift over to worrying about costs and then bac) again. Withoutconstancy of urose( eole won't ta)e chances because they will be afraid the rules will

    change again ne,t year.

    QUESTIONS:

    1$. What is meant by 0constancy of urose towards imrovement20

    13. What are e,amles where constancy of urose did not e,ist in the ast2

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    14. What are e,amles where imrovement was not sought( but rather cost reductions

    were instead ushed2

    15. What will be different if 0constancy of urose toward imrovement0 becomes a fact

    of life2

    16. an this be done if the number one goal is to ma,imize rofits for the year2

    17. 8ow could rofits be increased for this year that would cause service +uality to

    decline rather than imrove2

    3. 9dot the new hilosohy. We are in a new economic age. Western

    management must awa)en to the challenge( must learn their resonsibilities(

    and ta)e on leadershi for change.

    9doting a hilosohy doesn't mean it is simly given li service. :t means incororatingit into an organization's life. "here will be natural resistance to changes brought on by

    "#M that re+uires management to be more than 0fair weather0 believers.

    Management itself only constitutes a small ortion of any organization. 9dotion of the

    hilosohy will also re+uire a wholesale accetance by wor)ers as well.

    QUESTIONS:

    1$. What does it mean to 0adot0 something2

    13. What does it mean to be a 0fair weather believer20

    14. an an organization adot the new hilosohy without everyonein the organization

    adoting it2

    4. ease deendence on insection to achieve +uality. Eliminate the need forinsection on a mass basis by creating +uality into the roduct in the first lace.

    For manufacturers( insection is clear. :t ta)es lace at the end of the rocess and is used

    to insure that a faulty roduct isn't shied to a customer. "he only reason that insectionta)es lace is that enough defects have been discovered in the ast so that rocesses can't

    be trusted.

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    For service wor)ers( insection is more subtle. :t includes a shier insecting a final

    order to ma)e sure the order was filled roerly. :t includes a hysician insecting the

    orders of a nurse ractitioner. :t includes a cler) ma)ing sure an alicant has filled out aform roerly.

    For educators( insection is the Final E,am. 9t the end of the semester( it is too late to

    hel the student. "he only urose for the Final is to decide which students are to be0re/ects.0

    :n all these cases( insection is used because e,erience has indicated a high error rate forthe underlying rocesses. :f the error rate is reduced sufficiently( it will no longer be

    necessary to insect every action.

    ;nfortunately( when error rates or +uality deteriorates( the first imulse of traditionallytrained wor)ers and management is to send more time chec)ing for errors instead of

    attemting to imrove the underlying rocesses< 0We need to do a better /ob of catching

    these errors==0 versus( 0We need to figure out a means of reducing the number of errors in

    the first lace.0

    9rmand Feigenbaum coined the term< 0"he hidden lant0 to describe that art of overall

    wor) efforts that consist of hunting for mista)es( audits( rewor)( dulication of efforts(and the erformance of unneeded tas)s. For the tyical 9merican organization( this is

    about 36> to 5> of all efforts. "his is the 0buried treasure0 that Deming is addressing in

    this oint.

    QUESTIONS:

    1$. What are e,amles of insection ?chec)ing for mista)es2@

    13. 9re there e,amles where insection almost always finds mista)es2

    14. 9re there cases where several eole insect the same thing2 :n other words( do

    insectors insect other insectors2

    15. :n order to cease deendence on insection( what must haen to the overall level of

    errors2

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    16. What are e,amles of the 0hidden office0 in an organization2

    5. End the ractice of awarding business on the basis of rice tag. :nstead

    minimize total cost. Move towards a single sulier for any one item( on a long

    term relationshi of loyalty and trust.

    "he concet of 0total costs0 is a simle one to understand( yet for some reason tyically

    ignored. "ime is worth money. "ime sent standing in line( time sent waiting for aroduct to arrive( and time sent shoing for the best deal are a waste. "he costs of this

    lost time needs to be added to the rice tag in order to determine the true cost of a

    roduct. *n to of this( there are costs for reairs and for ma)ing!do with inferiorroducts that need to be added to the rice tag before ma)ing urchasing decisions.

    Perhas most imortantly( total cost must ta)e into account the oortunity to get a

    roduct or service imroved over time. Auying chea from a sulier who won't wor) to

    imrove a roduct is really more e,ensive than aying a little e,tra but getting asulier who commits to continuous imrovement.

    When total cost is ta)en into account( buyers should start develoing long term sulierrelationshis and give u the notion of always loo)ing for the lowest rice.

    QUESTIONS:

    1$. What costs are included in 0total costs20

    13. :f you are going to a grocery store( in what circumstances would you be willing to

    ay a higher rice rather than sho at a lower riced store2

    14. When loo)ing at new suliers( do you have difficulty in assessing their reliability2

    8ow much of a trac) record do you need before you have an accurate notion of what can

    be e,ected from a sulier2

    15. Do you have to insect ?chec) for mista)es@ all materials and bills shied to you by

    suliers2

    16. Do your customers trust you as a sulier2 What behaviors have they learned to trust

    over time2 what behaviors have they learned to distrust over time2 Do you customers

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    have to insect all materials and bills you send them2

    17. Would your suliers give you good service and rice if the threat of cometition wasnot hanging over their heads2 Would you give your customers good service and rice

    without the threat of cometition hanging over your head2

    6. :mrove constantly and forever the system of roduction and service( to

    imrove +uality and roductivity( and thus constantly decrease costs.

    "his oint re/ects the notion that things are ever 0good enough.0 :t is a call for continuous

    imrovement. Ay imlication( it is based on the assumtion that since erfection is

    imossible( there will always be room to imrove.

    Deming would not have aroved ofStar Trek's atain Bir) saying to Scotty( "We needit now, Scotty. You don't have an hour."Bir) was a crisis manager who seemed to

    believe that if Scotty /ust tried hard enough( he could do anything. :nstead Deming wouldhave wanted atain Bir) to suort Scotty's efforts in figuring out how to imrove the

    underlying rocesses so that in the ne,t crisis( Scotty doesn't need an hour in order to get

    the dilythium crystals bac) on line.

    ?Ay the way( Scotty admitted in a Star Trek: The Next Generationeisode that he used to

    lie to at. Bir) about how long something would ta)e so that he could give Bir) the

    miracles that were demanded of him. Deming would have aroved of the scritwriter's

    admission that focusing on results leads to distortion of information.@

    QUESTIONS:

    1$. 8ow is it ossible to imrove forever2 8int< :s erfection ossible2

    13. 8ow can imrovement occur constantly2 What would this mean secifically for your

    organization2

    14. Why does this statement focus on the 0system of roduction and service0 and not on

    end!roducts2

    15. What stes do eole need to imrove anything( whether it is a recie or a wor)rocess2

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    7. :nstitute training on the /ob.

    "his oint refers to the training of new emloyees and the training of management( who

    too often don't understand the rocesses they are suosed to be managing. ;nfortunately

    some 0old0 emloyees were never sufficiently trained in the ast so that this oint willinclude them as well at least in the early imlementation stages.

    "raining is tyically abysmal in the ;nited States. "oo fre+uently( eole are shown how

    to do something( once( and then let loose. "raining is often not standardized meaning notwo emloyees are taught in the same manner or even in the same details.

    "his oint should lead to develo of training manuals and standardized methods for

    training ersonnel.

    QUESTIONS:

    1$. What )inds of training would be useful2

    13. 8as training ever been given in the ast that roved useless2 Was the training itself at

    fault( or did the boss refuse to imlement the ideas offered in the training2

    14. 8ave you had training in the following ideas< the nature of variationC the different)inds of distributionsC the use of run charts2 Do you )now the difference between a

    system in control and one that is out of control2 Do you )now the difference between

    common causes of variation and secial causes2 Do you )now what it means to 0over!correct0 a system2

    . :nstitute leadershi ?see oint $3.@ "he aim of leadershi should be to hel

    eole and machines and gadgets to do a better /ob. -eadershi of management

    is in need of overhaul( as well as leadershi of roduction wor)ers.

    Deming called for suervisors to sto being managers and start being leaders. "his is oneof the more difficult concets for suervisors to master.

    -eaders have fundamentally different roles than managers. -eaders are coaches rather

    than cos. oaches develo eole. os enforce the rules. oaches attemt to hel

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    eole live u to their full otential. os attemt to catch eole doing things wrong.

    "oo often( suervisors with a traditional outloo) as) eole to 0)ee +uiet0 aboutroblems for the sa)e of the team. "hese managers resolve conflict either through

    coercion or comromise. 9 leader on the other hand gets conflict out into the oen so thatdifferences can be addressed and win!win solutions can be ursued in lace of win!lose

    hierarchical decisions.

    -eaders understand the difference between secial causes and system causes. :f there is

    any area of gravest suervisor wea)ness( it is this. "oo many suervisors hound eole totry harder when the cause of mista)es is not wor)er attitude but rather the system with

    which the wor)ers are stuc). :t is a leader's resonsibility to attac) system caused

    roblems by getting eole to e,amine and imrove the underlying system( not by falsely

    blaming eole for situations that are out of their control.

    QUESTIONS:

    1$. What is meant by leadershi2 What )inds of things should a leader do2

    13. For leaders( what is the difference between being a co and being a coach2

    14. Why shouldn't a leader 0duc)0 conflict2 Why instead should a leader encourageconflict2

    15. 8ow is it ossible to lead without relying on coercion2

    16. Frederic) 8erzberg has asserted that the )ey to motivating eole is to re/ect thecarrotstic) aroach. What is left if you re/ect using rewards and unishers2

    &. Drive out fear so that everyone may wor) effectively for the comany.

    Deming suggested that this oint is actually the first of his oints that should be

    imlemented. Fear will cause eole to lay defense. :t will inhibit them from sharing

    with management a real view of the world. :t will ma)e them unwilling to ris) new ideas.

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    ontinuous imrovement re+uires that good data be collected. Without accurate data(

    how can anyone tell if things are getting better or worse2 :f wor)ers are afraid of the

    conse+uences of data( however( they won't allow accurate data to be reorted.

    QUESTIONS:

    1$. Why is this absolutely critical in order for +uality imrovement to continue2

    13. What actions cause fear2 What )ees eole from raising issues( roosing solutions(

    and wor)ing with others2

    14. 9re you always e,ected to have an answer when eole as)< 0Why did this haen20

    8ow do you feel when you don't have an answer2

    15. Why do you thin) that Deming recommends that driving out fear should be the very

    firstof the fourteen oints that an organization should do2

    16. What is different between having 0fear of telling the truth0 and 0fear of reality20

    17. When is 0fear of reality0 aroriate and desirable2

    %. Area) down barriers between deartments. Peole in research( design( sales(

    and roduction must wor) as a team( to foresee roblems of roduction and in

    use that may be encountered with the roduct or service.

    Processes cut across deartment lines. For this reason( no single deartment or individual

    will understand fully any rocess. :n order to start imroving these rocesses( teams mustbe organized that include members from across the organization.

    Sales eole and service eole learn all sorts of things about the organization'sreutation in the community( yet most organizations lac) any sort of mechanism for thisinformation to get assed around.

    Evaluation systems that treat deartment erformance searately will encourage

    deartments to sto thin)ing globally in terms of what is best for the organization as awhole and instead focus on ma)ing their art oerate 0best0 even though that may in/ure

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    some other deartment.

    When there are strong barriers between deartments( there are fre+uent unintendedconse+uences for other deartments. "hese unintended conse+uences can be devastating(

    yet no one ma)ing the changes may even be aware of them if there is insufficientcommunication between deartments.

    QUESTIONS:

    1$. Do you have different deartments2

    13. :s there a tendency to thin) in terms of 0our grou0 versus 0their grou20

    14. 9re meetings organized around secialized wor) functions2 :f so( in such meetings(

    does it often haen that solutions can't be ursued because those solutions are deendentuon eole in other grous2

    15. Do eole have /ob titles that set them aart from others2 9re some eole 0too

    good(0 0too trained0( or simly have 0too much restige0 to do certain )inds of wor) li)eulling files( emtying waste cans( answering hones( etc.2

    16. When new emloyees are hired( are they generally given all the boring wor) that

    nobody else wants2

    17. When was the last time you heled a fellow emloyee during a crisis who was not

    art of your functional wor) grous2 What did you do2

    $. Eliminate slogans( e,hortations( and targets for the wor) force that as) for

    zero defects and new levels of roductivity.

    :n this oint( Deming attac)s( without naming it( rosby'sZero Defets !rogram. rosby

    stressed the role of wor)er attitude as being critical to a +uality effort. 9s such( rosby

    suggested wor)ers be given +uality targets of zero defects. *nce a year( rosby advisedthere be a 0#uality Day0 reminding everyone of the imortance of +uality efforts.

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    Deming believed that oor wor)er attitudes are symtoms of suervisor inability to lead.

    8e stressed again and again that it is the system which roduces errors( not eole. 9s

    such( it isn't the wor) force that needs attention( it's the controllers of the system(management.

    Slogans li)e 0Produce zero defects0 and 0Do it right the first time0 are +uite common.

    Aut Deming stressed( they are also +uite meaningless. 9t best( they are ignored. 9t worst(they infuriate eole who understand the system causes errors not wor)ers.

    QUESTIONS:

    1$. Do slogans motivate2

    13. :f you are told to 0do better0 without being given tools in order to do better( how will

    you feel2

    14. What would ma)e you a believer that things had 0really0 changed2

    15. What is the danger in raising e,ectations about changes that can't haen rightaway2

    $$a. Eliminate wor) standards ?+uotas@ on the factory floor. Substituteleadershi.

    $$b. Eliminate management by ob/ective. Eliminate management by numbers(

    numerical goals. Substitute leadershi.

    "his is robably the most controversial of Deming's $5 Points and the oint most often

    ignored by 9merican managers. umerical roduction standards are tyically set by

    ic)ing what an average erson can do with a articular /ob. "he roblem with this is that

    half of any grou will be below average and therefore will be doomed from being able tomeet the standard. "he above average half of the grou will be ressured by their eers to

    roduce to the average( and no more. :n the end( roduction will fall( half the wor) force

    will be anic)ed( and no one will be hay.

    #uotas and numerical ob/ectives that must be met will cause eole to cut corners in

    order to save their /obs. :nstead of having ride in their wor)( they will instead resent

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    having to short!change customers in order to )ee numbers high enough.

    Management by ob/ectives ?MA*@ is e,tremely common in the ;nited States. *b/ectivesare tyically set in negotiations between a suervisor and emloyee. "hose ob/ectives

    become the basis of bonuses( ay raises( and romotions.

    *b/ectives li)e wor) +uotas and numerical goals are very recise. "he underlying theoryis that eole need a clear standard by which they are being measured. "he roblem with

    these ob/ectives is that they ush results at the e,ense of rocess. :n order to get the

    necessary results on aer( managers will have incentive to distort information or distortthe system. :n the end( MA* leads to deteriorating long term results rather than

    imroving ones.

    QUESTIONS:

    1$. Do eole have any incentive to do better than a wor) standard2 :n heling define

    those wor) standards( would eole tend to try defining 0low0 standards or 0high0 ones2

    13. :f you are told that your /ob erformance is to be measured by the number of mista)esyou ma)e and by your total roduction ?outut@( will this ma)e you fearful2

    14< Would you be willing to e,eriment with new methods for trying to imrove things2

    15. Would you want to ta)e time out of your day to hel other eole in!house to do a

    better /ob2

    16. Would some eole have a motivation to s)ew results so that their numbers will loo)better2

    17. What do you thin) 0management by the facts of life0 means2 :s desirable2

    $3a. Gemove barriers that rob the hourly wor)er of his right to ride of

    wor)manshi. "he resonsibility of suervisors must be changed from sheer

    numbers to +uality.

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    $3b. Gemove barriers that rob eole in management and in engineering of

    their right to ride in wor)manshi. "his means inter a"ia# abolishment of the

    annual or merit rating and of management by ob/ective( management by the

    numbers.

    Deming called ride in wor)manshi( a 0birthright0 of wor)ers. 8e re/ected the old

    Mar,ist notion that wor) is alienating and should be erceived as a sacrifice. Demingclaimed that it is the sense of having heled other eole that is the single most imortant

    motivator in the wor)lace. Money( time off( and all the other traditional 0carrots0 that

    management offers are ale in comarison to the sense of ride and accomlishment thatcomes from feeling li)e you made the world a better lace in which to live.

    9 rincile tas) of leadershi is to remove barriers. Suervisors should be as)ing their

    eole( 0What )ees you from doing a better /ob20 and then acting on the answers they

    receive.

    "he annual merit rating is a cursed function in most organizations. ;sually it is tied to

    ay increases. ;nfortunately( most suervisors have to guess as to who are the 0good0wor)ers and who are the 0bad.0 Fre+uently they act on their imressions from the most

    recent three months.

    :f wor)ers want to )now how they are doing( then they shouldn't have to as) their bosses."hey should be getting feedbac) from internal customers on a timely basis. :nstead of

    feedbac) once a year( feedbac) should be wee)ly or at most monthly. "here shouldn't beanyone in the organization who doesn't )now how well they are doing at any given time.

    QUESTIONS:

    1$. What ma)es you feel 0ride in wor)manshi20

    13. What ma)es you feel roud about your organization2

    14. What barriers )ee you from doing a better /ob2

    15. Who is more imortant to lease( the boss or the customer2 :n order to feel ride( who

    do you need to feel li)e you heled( the boss or the customer2

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    $4. :nstitute a vigorous rogram of education and self!imrovement.

    Point 17 referred to training of new eole and managers. Point 1$4 refers to educating

    everyone in the organization no matter how long they have been there. Self!imrovement

    should not be limited to immediate alication. :nstead( eole should be encouraged toic) whatever activities they erceive as heling them grow.

    QUESTIONS:

    1$. What would you li)e to ta)e in the way of courses( seminars( wor)shos( or training

    that would ma)e you feel li)e you were growing as an individual2

    13. Do you want your growth oortunities to be limited to wor)2 Would you li)etraining in arenting2 arts and crafts2 drama2 sorts2

    14. When you feel li)e you are growing( does that ma)e you feel better on the /ob2

    $5. Put everybody in the comany to wor) to accomlish the transformation.

    "he transformation is everybody's /ob.

    "he emhasis of "otal #uality Management is the word( 0"otal.0 -iterally it means that

    the /ob of +uality is everyone's /ob( not /ust secialists in a +uality deartment( not /ustto management( and certainly not /ust the wor) force.

    QUESTIONS:

    1$. Why must everyone articiate2

    13. Deming recommends that the organization have eole trained in statistical thin)ing

    in order to assist all )ey managers. Why do you thin) he recommends these statisticse,erts2

    THE SEVEN DEADLY DISEASES OF

    MANAGEMENT

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    "he Fourteen Points e,ress Deming's hilosohy of management. "he Seven Deadly

    Diseases describe the most serious barriers that management faces in its current

    management actions.

    $. -ac) of constancy of urose to lan roduct and service that will have amar)et and )ee the comany in business( and rovide /obs.

    9s long as the focus is on short term thin)ing( management will fail to lan ade+uately.

    Without good long term lanning( wor)er efforts will be irrelevant. More significantly

    this disease is warning that "#M cannot be a fad. :f management changes its hilosohy

    by whatever was the latest boo) it read( then there will be no long term forward rogress.

    QUESTIONS:

    1$. What are e,amles where lanning was inade+uate2

    13. 8ow do you lan for new roducts and services2

    3. Emhasis on short!term rofits< short!term thin)ing ?/ust the oosite of

    constancy of urose to stay in business@( fed by fear of unfriendly ta)eover(

    and by ush from ban)ers and owners for dividends.

    "here is nothing easier to do than boost rofits in the short term. 9ll a manager has to dois cut any e,ense related to the long term< training( maintenance( urchase of new

    caital( etc.

    For non!rofits li)e schools and hositals( substitute 0Emhasis on short term costs0instead of 0Emhasis on short term rofits.0 "hese institutions( esecially when in budget

    crises( focus on cutting short term costs without regard to long term conse+uences.

    QUESTIONS:

    1$. What are e,amles of short term thin)ing that made things worse in the long run2

    13. What ressures ma)e it difficult to do long term thin)ing2

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    4. Personal review systems( or evaluation of erformance( merit rating( annual

    review( or annual araisal( by whatever name( for eole in management( the

    effects of which are devastating. Management by ob/ective( on a go( no!go

    basis( without a method for accomlishment of the ob/ective( is the same thing

    by another name. Management by fear would still be better.

    "he essential roblem with merit systems is that they reward results rather than rocess

    imrovement. Gesults will almost always have a lot of system luc) mi,ed in.

    Some managers want to reward eole who cooerate more or who seem to have better

    attitudes. "hese managers will insist that they can recognize the eole who are most

    cooerative and have the highest wor) ethic.

    When managers reward these attitudes( however( they are setting u a system that will

    have two fundamental flaws< ?a@ it encourages 0)issing u0 to the boss and ?b@sychological research indicates that the best way to develo cooeration is not through

    money rewards( but rather by focusing on the nature of wor) environment itself.

    QUESTIONS:

    1$. :s merit ay being used2

    13. :s the annual evaluation focused on the ast or the future2

    14. Does management rely on fear2 :f so( what are some concrete e,amles2

    5. Mobility of managementC /ob hoing.

    "his is erhas the simlest and yet one of the most deadly of diseases. When to

    management changes organizations every three or four years( that means continuousimrovement efforts will be bro)en and dis/ointed as the new 0leaders0 come on board.

    Moreover( with changes in leadershi( there is fre+uently a change in management

    hilosohy. 8ow can there be constancy of urose in such an environment2

    When management has no commitment to the long term( how will they ever start

    thin)ing long term2 Managers who have an eye on the ne,t romotion want results( now(

    to gain the ne,t rung on the ladder.

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    QUESTIONS:

    1$. 8ow long does the E* tyically last on the /ob2

    13. 8ow many changes in management hilosohy have there been in the last ten years2

    6. ;se of visible figures only for management( with little or no consideration of

    figures that are un)nown or un)nowable.

    Many consultants in the +uality field have been +uoted to say( 0:f you can't measure it(

    you can't manage it.0 ertainly Deming would have been one of the first to argue that

    good data is essential and should be factored into all decisions whenever ossible.

    Deming was in fact very critical of eole who fail to use data when it is available.

    Deming ointed out( however( that some facts are simly un)nowable. :n site of that(

    Deming insisted that leaders must still ma)e decisions and manage the situation. For

    instance( if a +uality effort is truly /ustified( then it should cause oerating costs to declineand overall sales to rise relative to what would have haened otherwise. "his leads to a

    basic dilemma. 8ow do you )now what would have haened if you had )et on your

    rior course2 8ow do you ut a dollar value on the customer loyalty won through +ualityimrovement efforts2 Hou can't= "hese numbers are un)nowable. :f you decide that "#M

    can be /ustified only if the benefits are clearly measurable( then you might leave these

    factors out of your analysis and erroneously conclude that "#M is causing losses when in

    reality it is generating rofits.

    QUESTIONS:

    1$. What are some )ey un)nowable numbers that have been ignored in the ast2

    13. 8ow do you manage in a systematic data based way when )ey numbers are

    un)nowable2

    14. Do you agree that 0:f you can't measure it( you can't manage it.0

    7. E,cessive medical costs.

    9merican auto comanies ay more for medical care than they do for steel. For theeconomy as a whole( health care as a ercent of overall e,enditures has steadily risen for

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    decades gradually ushing numerous business and government budgets into a state of

    crisis. Deming would have aroved of the olitical system attemting to reform health

    care.

    QUESTIONS:

    1$. What ercent of your labor costs is for medical care2

    13. 8ow much has the ercent grown over the last ten years2

    14. 8ow do medical costs comare to other fi,ed costs such as advertising( investment in

    new caital( and interest ayments on loans2

    . E,cessive costs of liability.

    Deming blamed 9merica's lawyers in art for the roblems of 9merican business. "he

    ;S has more lawyers er caita than any other country in the world. "hey ma)e their

    livings to a considerable e,tent by finding eole to sue. -i)e health care costs( Deming

    believed the solution to this disease will robably have to come from the government.

    QUESTION:8ow much does your organization ay for liability insurance every year2

    W. EDWARDS DEMING'S FOURTEEN PRINCIPLES

    OF MANAGEMENT

    1. Create c!"ta!c# $ %&r%"e tar(" )*%r+e*e!t $ %r(&ct a!(

    "er+)ce, )t- t-e a)* t ec*e c*%et)t)+e, "ta# )! &")!e"", a!( t %r+)(e

    /".

    0. A(%t t-e !e %-)"%-#. We are )! a !e ec!*)c a2e. We"ter!

    *a!a2e*e!t *&"t aa3e! t t-e c-ae!2e, *&"t ear! t-e)r

    re"%!")))t)e", a!( ta3e ! ea(er"-)% $r c-a!2e.

    4. Cea"e (e%e!(e!ce ! )!"%ect)! t ac-)e+e 5&a)t#. E)*)!ate t-e !ee( $r

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    )!"%ect)! ! a *a"" a")" # creat)!2 5&a)t# )!t t-e %r(&ct )! t-e $)r"t

    %ace.

    6. E!( t-e %ract)ce $ aar()!2 &")!e"" ! t-e a")" $ %r)ce ta2. I!"tea(

    *)!)*)7e tta c"t. M+e tar(" a ")!2e "&%%)er $r a!# !e )te*, ! a

    !2 ter* reat)!"-)% $ #at# a!( tr&"t.

    8. I*%r+e c!"ta!t# a!( $re+er t-e "#"te* $ %r(&ct)! a!( "er+)ce, t

    )*%r+e 5&a)t# a!( %r(&ct)+)t#, a!( t-&" c!"ta!t# (ecrea"e c"t".

    9. I!"t)t&te tra)!)!2 ! t-e /.

    . I!"t)t&te ea(er"-)% ;"ee %)!t 10.< T-e a)* $ ea(er"-)% "-&( e t

    -e% %e%e a!( *ac-)!e" a!( 2a(2et" t ( a etter /. Lea(er"-)% $

    *a!a2e*e!t )" )! !ee( $ +er-a&, a" e a" ea(er"-)% $ %r(&ct)!

    r3er".

    =. Dr)+e &t $ear " t-at e+er#!e *a# r3 e$$ect)+e# $r t-e c*%a!#.

    >. ?rea3 (! arr)er" etee! (e%art*e!t". Pe%e )! re"earc-, (e")2!,"ae", a!( %r(&ct)! *&"t r3 a" a tea*, t $re"ee %re*" $

    %r(&ct)! a!( )! &"e t-at *a# e e!c&!tere( )t- t-e %r(&ct r "er+)ce.

    1@. E)*)!ate "2a!", e-rtat)!", a!( tar2et" $r t-e r3 $rce t-at a"3

    $r 7er (e$ect" a!( !e e+e" $ %r(&ct)+)t#.

    11a. E)*)!ate r3 "ta!(ar(" ;5&ta"< ! t-e $actr# $r. S&"t)t&te

    ea(er"-)%.

    11. E)*)!ate *a!a2e*e!t # /ect)+e. E)*)!ate *a!a2e*e!t #

    !&*er", !&*er)ca 2a". S&"t)t&te ea(er"-)%.

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    10a. Re*+e arr)er" t-at r t-e -&r# r3er $ -)" r)2-t t %r)(e $

    r3*a!"-)%. T-e re"%!")))t# $ "&%er+)"r" *&"t e c-a!2e( $r*

    "-eer !&*er" t 5&a)t#.

    10. Re*+e arr)er" t-at r %e%e )! *a!a2e*e!t a!( )! e!2)!eer)!2 $

    t-e)r r)2-t t %r)(e )! r3*a!"-)%. T-)" *ea!" inter alia, a)"-*e!t $

    t-e a!!&a r *er)t rat)!2 a!( $ *a!a2e*e!t # /ect)+e, *a!a2e*e!t

    # t-e !&*er"

    14. I!"t)t&te a +)2r&" %r2ra* $ e(&cat)! a!( "e$B)*%r+e*e!t.

    16. P&t e+er#(# )! t-e c*%a!# t r3 t acc*%)"- t-etra!"$r*at)!. T-e tra!"$r*at)! )" e+er#(#'" /.

    W. EDWARDS DEMING'S SEVEN DEADLY

    DISEASES

    1. Lac3 $ c!"ta!c# $ %&r%"e t %a! %r(&ct a!( "er+)ce t-at ) -a+e a*ar3et a!( 3ee% t-e c*%a!# )! &")!e"", a!( %r+)(e /".

    0. E*%-a")" ! "-rtBter* %r$)t": "-rtBter* t-)!3)!2 ;/&"t t-e %%")te $

    c!"ta!c# $ %&r%"e t "ta# )! &")!e""

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    6. M))t# $ *a!a2e*e!t / -%%)!2.

    8. U"e $ +)")e $)2&re" !# $r *a!a2e*e!t, )t- )tte r ! c!")(erat)!

    $ $)2&re" t-at are &!3!! r &!3!ae.

    9. Ece"")+e *e()ca c"t".

    . Ece"")+e c"t" $ )a))t#.