“Out of the crisis. A New Paradigm for Managing People, Systems and Processes by Edwards Deming. Deming Association (New Economics) Deming New Economics

Way out of the crisis. A new paradigm for managing people, systems and processes Edwards Deming

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Title: Out of the Crisis. A new paradigm for managing people, systems and processes

About the book “Out of the Crisis. A New Paradigm for Managing People, Systems and Processes Edwards Deming

Today, not many people dare to open their own business, as this is not only a long and complicated process, but also a certain risk. Plus, sometimes the traditional methods of building a business just don't work. As a result, it turns out that you need to constantly invest a lot of money, but at the same time, income remains the same or even falls. This leads to only one result - the company closes without having time to develop.

Edwards Deming's book Out of the Crisis. A new paradigm for managing people, systems and processes” offers completely new methods of business management. The author shares his life experience and offers completely new methods that will help your company not only stay afloat, but also develop rapidly.

Edwards Deming is a famous American scientist and management consultant. He visited Japan in 1946 and gave lectures on management. top leaders Japanese companies not only agreed with Deming's opinion, but also began to massively train managers on the proposed theories. This led to the fact that the quality of manufactured products has improved significantly, while costs have not increased. This process has been called the "Japanese economic miracle".

Edwards Deming in his book "Out of the Crisis. A New Paradigm for Managing People, Systems and Processes” shows that the quality of manufactured products can grow rapidly if enough time and attention is given to it. If more attention is paid to the speed of production of products, then the quality will begin to fall and, consequently, the interest of consumers will also fall.

In addition, Edwards Deming emphasizes that the entire management system of a company should be integral, and not consist of certain pieces. That is, every employee, specialist, manager should be interested in what they do. They should all have one goal, which will lead to a seamless production that will be worked on by a team, and not by individuals. This will also be a guarantee of the high quality of the goods produced.

In the book great amount advice from Edwards Deming. He also offers his 14 key principles. For example, many companies seek to purchase materials for their production at the lowest prices. That is, for them the price is in the first place. The author urges to pay more attention to the quality of the purchased goods, requiring suppliers to confirm it, and completely forget about cheap purchases. Also, the author encourages to constantly improve the process of doing business by looking for new problems at different stages: from production to sale.

Edwards Deming also recommends company managers to encourage their employees for training. After all, each company needs specialists, and not those who will monotonously perform work. If you motivate colleagues to study, study new material, introduce new systems, you will see how effective and useful this method is for the development of your business.

In the book "Out of the Crisis. A New Paradigm for Managing People, Systems and Processes” there are many other tips and theories from Edwards Deming. This person not only knows how to succeed, but also helps each of his readers to do it. The book is intended for a very wide audience of professionals who want to make their work both loved and effective.

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Edwards (or Edward) Deming - famous American consultant on the theory of quality management, as well as the creator of the "lean manufacturing" system and the 14 principles of quality improvement. This man made a huge contribution to the development of management and economics. Although he mainly worked in Japan, his works are popular all over the world. Many companies use the principles and suggestions developed by Deming to develop and improve the quality of their production.

Deming's life

Back in 1900 in the United States, the future scientist Edward Deming was born. The biography of this person is rich in awards and prizes that he received for his contribution to the development of statistics and management. Deming Edward sufficient time dedicated to teaching. He was educated at the University of Wyoming (in 1972 he received an award as the most outstanding student of this university), Colorado, Yale University. During his years of study, Edward Deming earned degrees in physics, mathematics, and electronics.

Prior to working in Japan in 1946, Deming taught physics at the Colorado School of Mines (1923-1925) and worked in the Agriculture USA (1927-1939). Working in Japan became the peak of his career and made him famous all over the world. In addition to her, Edward Deming consulted in Greece, India, Argentina, Mexico, France and other countries. In the period 1947-1952 he was a member of the UN subcommittee on statistical samples.

Arriving in Japan, Deming had practically no connections, except for one statistician, Ishikawa Kaoru, who taught in Japan. By a happy coincidence, his father was the head of an influential organization called the Federation of Economic Organizations of Japan (Nihon Keidanren). It was he who helped organize the first Deming seminar in 1950, which was attended by the leaders of the 21st company. These companies accounted for 85% of Japan's national capital.

The seminar was a success, and after it Deming became the lead consultant for large companies Japan.

Edward Deming did not stop his work until his death in 1993. In the United States, his ideas were recognized only in 1980. Despite his already advanced age, the scientist continued to work and advise the heads of large companies both in the United States and other countries of the world.

Deming's career and success were not easy at the beginning of his life as a scientist, but he was able to ensure that he was recognized all over the world and not forgotten after his death. The works and teachings of Deming are relevant for specialists today.

A family

In 1922, Edward Deming married for the first time. His family with Agyness Bell did not last long, until 1930. Well-being was interrupted by the sudden death of his wife.

Two years later, the scientist remarried Lola Shupe. This time, family happiness lasted for 52 years, until Lola's death in 1984. From two marriages, the scientist left three daughters. All three and Edward Deming (pictured below) were no doubt strong and loving family. His daughters gave him seven grandchildren, and then another five great-grandchildren.

Works of a scientist

During his career, Edward Deming made an unprecedented contribution to the development of management. His books have received recognition and popularity. To date, three of his books have been published in Russian:

• "Out of the Crisis: A New Paradigm for Managing People, Systems and Processes".
• "Out of the Crisis".
• "New economy".

Edward Deming made a huge contribution to the development. The "new economy" just tells that the "western" principles of doing business are already outdated and the economy is entering a new era with new rules of the game.

Awards

Deming has received worldwide recognition and respect over the course of his career. His contribution to the development of management and economics is confirmed by a number of awards:

• Order of the Blessed Treasure, second degree (received in 1960 in Japan).
• National Medal of Technology (received in the USA in 1987).
• His name was carved on the wall in the Dayton Hall of Fame (in 1986).
• Distinguished Career in Science Award (received in the USA in 1988).

Also in Japan, in 1951, an award was approved that bears the name of a scientist. It is given to people who have contributed to the development of the theory and practice of quality management.

It took Americans 30 years to appreciate Deming's work and recognize its relevance. The 14 principles of Edward Deming became known and recognized quite recently, although they were formulated back in 1980.

Deming began work on these management rules after the end of World War II. Despite the fact that quite a lot of time has already passed since the moment of the emergence of this idea and the final formulation, Deming's principles are still relevant today. All these rules will work to increase efficiency if enough time is given to implement them into the modern business process.

1. Setting the main goal

Do not chase instant and one-time profit. It is necessary to tune in to the long term and constantly improve. You need to strive to ensure that your company is competitive, provided labor resources and provided quality and necessary goods.

2. Restructuring to a new philosophy

The Western style of management no longer justifies itself and slowly leads the economy to decline. In order to stay afloat, you need to learn new principles of work and apply them. Japan began a new economic era, and today it is necessary to follow exactly these principles.

3. Independence from checks

Constant strict control and checks should not be the way and the main goal to improve the level of quality. The results of the checks should show that the quality is already at the maximum level, and will not be there after.

4. Cheap does not mean quality

Do not chase cheap goods, pay attention to quality. If the supplier could not confirm the quality of his product, then you should not continue cooperation with him. By reducing the number of suppliers, you will come to long term relationship and, consequently, a decrease total costs for purchases.

5. Don't stop there

The process of improvement and improvement should never stop. Even if the system seems to work perfectly, at the highest level, then know that there is always a process that can be contained even better. The earth does not stop for a minute, and every moment new ideas and new needs arise. Production, service delivery and planning processes can always become better and better than they are now.

6. Training of working personnel

Strive to ensure that personnel are familiar with and prepared for all the changes that occur with the production and provision of goods and services. Engage in constant training of workers so that the cadres are the most highly qualified.

7. Effective leadership

The manager should be maximally focused on the quality improvement process, show on own example high performance and responsible attitude to work. The manager must ensure the functioning in such a way that in the event of defects, malfunctions, immediate measures are taken to eliminate them. Leadership should not be just a word, but a way of working. The manager should, first of all, be responsible for quality, and not for statistical data.

8. Cast Out Fear

Fear is always a bad adviser, both in life and at work. Subordinates should not be afraid of their leadership. If a subordinate is afraid of his boss, then he will never be able to fully devote himself to work, since most of his thoughts during the working day will be aimed at how to avoid a collision (meeting) with the leader. Go towards your subordinates, be open to communication. Two-way communication always has a positive impact on the relationship between employees and their supervisors. And as a result, it contributes to the improvement of the quality of work.

9. Say no to functional work

Many companies today work exactly according to this principle, that is, each division does its own narrowly focused work and does not cooperate with other departments. Edward Deming argues that working in teams, specialists of different profiles will come to the desired result much faster and more efficiently.

10. Eliminate slogans, sermons and attitudes for employees

Slogans and sermons do not affect general process work, but directed only at workers. Quality and performance depends on the overall design of the system, and not on a single worker in particular. Slogans and installations are a waste of time and effort, which leads only to zero results.

11. Remove Arbitrary Norms

Instructions and standards for working with arbitrary norms and quotas should be avoided, and it is better not to use them at all. The most effective way to influence the production process will be the help and response from higher management.

12. Eliminate barriers that prevent subordinates from taking pride in their work

The goal of staff work should not be quantity, but quality. Evaluations of workers' performance should be kept to a minimum.

13. Encourage self-improvement

Today there is no need for workers who mindlessly carry out their tasks. In the conditions of the current market of services, which changes every minute, knowledge and skills win. Provide employees with a self-development and professional development program. From this, the quality and efficiency will increase very quickly.

14. The most important thing is transformation

If the goal of the production system is high quality, then the production system must strive and be ready for constant change. Moreover, everyone in the company should be focused on changes in the system. And the leadership structure should be organized in such a way as to give every day an impetus for the advancement of each subordinate.

Book imprint:

ISBN 5-699-17480-X (Eksmo), ISBN 0-262-54116-5 (English), UDC 330, LBC 65 01 (7USA), D30

New Economics / W. Edward Deming; [per. from English. T. Guresh]. - M.: Eksmo, 2006. - 208 p. - (EXPERT Library)

The tyranny of the dominant style of management, the constant evaluation of people and organizations, competition - all this should be left in yesterday and a new page in your history should be opened, says Edward Deming growth, innovation and market power The deep knowledge system he described in The New Economy is vital now industrial enterprises, bodies government controlled and the field of education, because only it is able to bring modern society from Crisis Dr. Deming proposes a solution in which there will be no losers.

This book will be of interest to a wide range of readers who are not indifferent to the problems community development in general and economic growth in particular.

Foreword

Notes for the second edition

Chapter 1

Chapter 2

Chapter 3 System Introduction

Chapter 4

Chapter 5. Leadership

Chapter 6. Human resource management.

Chapter 7

Chapter 8 Shewhart and Control Charts

Chapter 9

Chapter 10

Application

Purchase of goods and services

Subject index

Foreword

We continue to draw wisdom from the lessons of W. Edward Deming. Our father edited the manuscript for the second edition of The New Economics for Industry, Government, and Education until his death in December 1993. He sought greater clarity of presentation based on reader feedback on the first edition, and all the while trying to help people gain the knowledge they needed to transition to a new style of management. The road to change lies through the application of the profound knowledge system described in this book.

Throughout his long and fruitful life, our father enjoyed work and study. In The New Economics, he wrote that "a man who likes his business is a pleasure to work with." Through our interactions with many people around the world, we know that Dr. W. Edward Deming helped others find joy in their endeavors and that his work touched the most delicate chords in their souls.

In November 1993, our father created the W. Edward Deming Institute. The purpose of the Institute is to promote understanding of Deming's system of profound knowledge for world peace and prosperity. Through the efforts of people dedicated to this cause, we hope to continue his life's work.

Diana Deming Cahill
Linda Deming Ratcliff

Notes for the second edition

Dr. Deming worked on The New Economics until his death in 1993. The second edition is edited by himself. Much of the change concerns Chapter 4, where he emphasizes that a deep knowledge system is an outsider's perspective vital to the management of the system.

There was also an application called "Purchasing goods and services." Dr. Deming incorporated this material into his four day seminars. It will be useful to readers who wish to better understand his work on supplier relationships.

In The New Economy, the author makes numerous references to his previous work Out of the Crisis. The reader who wishes to better understand Edward Deming's ideas should study this book first. The reader will find more complete information about the life of the doctor and a list of his publications in the article "The World of W. Edward Deming" * Cecilia Kilian, who was his constant secretary for 39 years.

For more than forty years, W. Edward Deming has been consulting throughout the world. His clients included manufacturing companies, telephone companies, railroad companies, carriers, consumer research firms, sociologists, hospitals, state institutions, as well as scientific organizations at universities and industrial institutes and companies.

The impact of Dr. Deming's theories on US manufacturing and service industries has been enormous. The revolution in the quality system he initiated significantly increased the competitiveness of the United States.

In 1987, Dr. Deming received the National Order for Achievement in Technology from President Reagan. In 1988, he received the National Academy of Sciences' Distinguished Achievement Award.

Dr. Deming has also received many other awards, including the Shewhart Medal from the American Society for Quality Control in 1956 and the Samuel S. Wilkis Award from the American Statistical Association in 1983.

In 1980, the American Society for Quality Control established the annual Deming Award for Quality Improvement and Productivity. Dr. Deming was a member International Institute statistics. In 1983 he was elected a member of the National Academy of Engineering Sciences, and in 1986 a portrait of the researcher was installed in the Dayton Science and Technology Hall of Fame (USA). In 1991, his name appeared in the Automotive Hall of Fame.

Perhaps Dr. Deming's most famous work was in Japan, where he taught quality control methods to top management and engineers of various companies from 1950 onwards. This training contributed to radical changes in the Japanese economy. In recognition of his contributions, the Japan Science and Technology Union established an annual Deming Award for excellence in product quality and reliability. In 1960, the Emperor of Japan awarded Dr. Deming the Order of the Sacred Treasure II Class.

In 1928, Deming received his Ph.D. in mathematical physics from Yale University. Subsequently, a number of universities conferred on him an LL.D. and an honorary doctorate: University of Wyoming, Rivière College, University of Maryland, Ohio State University, Clarkson University Technical College, Miami University, George Washington University, Colorado State University, Fordham University, state of alabama, State University Oregon State University, Yale University, Harvard University, Cleary College and Shenando University. Yale University also awarded him the Wilbur Lucius Cross and Riviere College awarded him the Order of St. Mary Magdalene.

Dr. Deming wrote a number of books and 171 articles. His work Out of Crisis has been translated into several foreign languages. Many books and films have been devoted to the life, philosophy and lessons of the outstanding scientist. More than 10,000 people attended Dr. Deming's four-day seminars every year for ten years.

This book is intended for people living under the tyranny of the dominant style of management. The huge losses caused by it have been leading our economy to decline for a long time. Most people think that this management model has always existed and that it is unchanged. However, in fact, it was invented in our time and is based on the interaction between people, which affects all aspects of our lives - public administration, industry, education, health care.

We grew up in a competitive environment between people, teams, departments, divisions; students, schools, universities. Economists have taught us that competition will solve our problems. In fact, competition, as we now see, is destructive. It would be much better if everyone worked like one system for the sake of everyone's victory. This requires cooperation and a new management style.

Transformation existing system possible with deep knowledge. The deep knowledge system consists of four interconnected elements. It:

• understanding of the system;
• knowledge about deviations;
• theory of knowledge;
• psychology.

The purpose of this book is to show the reader the path to knowledge, to arouse in him the desire to learn.

My fourteen management principles came about as a result of applying a system of deep knowledge to move from the existing management style to optimization.

This book can also be used as a textbook for students of technical and economic universities. The goal of business schools should not be to preserve the current dominant style of management, but to transform it. Students of technical faculties can learn new tools and mechanisms, however, in order to successfully apply the knowledge gained, they will need new management methods. In other words, the school should prepare students for the future, not for the past.

The first two chapters of this book describe the prevailing management style and provide recommendations for improving it. Chapter 3 gives the theory of the system. In an optimized system, everyone wins - shareholders, suppliers, employees and customers. Chapter 4 talks about the deep knowledge system that can be used to understand and optimize the performance of the organizations where we work. The following chapters develop the theory presented in chapters 3 and 4. practical examples for business, education and public administration.

Many people have helped me in the preparation of this book. In the notes throughout the text, I express my gratitude to them. And it is with great pleasure that I pay tribute to my devoted secretary, Cecilia S. Kilian.

The tyranny of the dominant style of management, the constant evaluation of people and organizations, competition - all this must be left in the past and a new page in its history should be opened, Edward Deming argues. The man who has done so much for Japan's economic prosperity talks about the simple mechanisms that will lead you to growth, innovation and a strong market position. The system of in-depth knowledge, described by him in the book The New Economy, is now vital for industrial enterprises, government bodies and education, because only it can bring modern society out of crisis.

W. Edward Deming. New economy. – M.: Eksmo, 2006. – 208 p.

Download brief summary in format or

The purpose of this book is to show the reader the path to knowledge, to arouse in him the desire to learn. Students of technical faculties can learn new tools and mechanisms, however, in order to successfully apply the knowledge gained, they will need new management methods.

Chapter 1

The knowledge needed to improve something comes from outside. Our problem is the formation of such an education system and such a culture in which learning is valued. Innovation requires leaders. One company president wrote: "The factory staff is responsible for the quality of the products." No, the staff is not responsible for anything. He's just trying to do his job. The person who wrote the article, the president of the company, is the only one responsible for quality. Results of most species management activities impossible to measure. For example, the benefits of learning cannot be measured. The current style of management is the biggest source of losses and losses, so huge that their magnitude cannot be estimated or measured.

Chapter 2

What are the results of hard work and diligence? Answer: we are only digging deeper into the hole we are already in. Hard work and diligence alone will not get us out of the hole. In fact, it is only when we go beyond our knowledge that we notice that we are sitting in a hole.

Ranking is a farce. The productivity of labor actually depends largely on the system in which the person works, and not on the person himself. How futile attempts to rank people can be understood with a simple equation. Suppose X is the contribution of some person, ( xy) - the impact of the system on its productivity. Let's say we have a number that describes actual labor productivity, say eight errors per year or $8 million in sales. Then: x +(xy) = 8 Required to determine X. Unfortunately, we have two unknowns in one equation. Johnny in sixth grade knows that this equation is impossible to solve. However, people who use merit rewards think they have found X. They ignore the second term -( xy), which dominates the equation.

Ranking breeds competition between individual teams and departments. It demoralizes employees and is rooted in a failure to understand deviations from the norm. Merit-based pay sows discord among employees and emphasizes achieving a certain rank, on praise, and not on work. It destroys cooperation. The goal of each person in the merit reward system is to please the boss. As a result, morality collapses. Quality suffers. And the one who judges people puts them on the rungs of the hierarchical ladder, and does not help them work better. The reward for high performance is the same as the forecaster's reward for good weather. Incentive pay focuses on the numbers and distracts from the goal. Teams, divisions of the company work as separate profit centers and do not seek to optimize the entire organization. People lose hope that someone will ever understand the connection of their work with the work of others, because they do not communicate with each other.

The first step that any organization must take is to draw a block diagram showing how the different building blocks depend on each other. Then everyone will understand what his work is. As a rule, if a company practices management by objectives, its goal is split between different departments or divisions. It is assumed that if each department or division contributes, then the company as a whole will complete the task. But this assumption is not entirely correct: structural units are almost always interdependent.

Quantitative goals lead to distortions and forgery, especially when the system is unable to achieve them. Instead of introducing quantitative indicators, managers should work to improve the process. Production rates are the closest relatives of quantitative targets. Performance-based management does not reduce but exacerbates problems. What's wrong with this kind of management? It comes from the assumption that everything we encounter is due to a particular cause. We, however, must work on the system.

In my experience, most of the problems and opportunities to improve the situation correlate something like this: 94% are systemic (management responsibility) and 6% are special causes. That is why neither the effort nor the skills of the workers can correct the fundamental faults of the system. Appointing a VP of Quality will only lead to frustration and annoyance. Top management is responsible for quality. It cannot be delegated to someone else.

The size of the most serious losses from the actions or inaction of the leadership, according to Lloyd S. Nelson, is unknown. However, we must learn to manage these losses. The belief that if a problem cannot be measured, it cannot be solved is a very costly myth. A careful analysis of the causes and effects of the prevailing system of management raises the question: does anyone even care about long-term profit?

The most important application of the principles of statistical quality control, by which I mean knowledge of general and specific causes, is in human resource management. Beware of common sense. Common sense tells us to value kids at school, people at work, teams, departments, dealers, hospital costs. Common sense requires that we set standards for individuals and for groups. Common sense calls for a conversation with operators when a customer complains about a product or service: “We talked to the operator, this will not happen again.” It is important to work on the process that caused the error, not on the person who sold the bad product.

The dependence of salaries on sales volumes is a wrong move. It is better to pay sellers a fixed salary. If the company pays commissions, the focus is on sales. When she pays a fixed salary, all attention is on the client. If all planning comes down to numerical goals, then how do you achieve them?

Chapter 3 System Introduction

A system is a network of interdependent components working together to achieve a common goal. The system must have a purpose. There is no system without purpose. Such a goal should be clear to all its participants and be specified in plans for the future. Purpose is a value judgment. (Of course, we are talking about systems created by man.) The system requires management. She cannot control herself. If systems are left to their own devices, they quickly become selfish, competitive, independent profit centers and thus destroy the system. The secret lies in the cooperation of the components for the benefit of the corporate goal.

It is the responsibility of management to direct the efforts of all components to achieve the goal of the system. We propose setting an organization goal that everyone - shareholders, employees, suppliers, customers, society, the environment - will strive for over a long period of time.

Human beings need movement, not cars, trains, buses or planes. Goal selection is obviously a matter of clarifying values, especially if we are talking about choosing between possible options. Any system needs guidance from outside. The system cannot understand itself.

Everyone understands how their work relates to the work of other people. Now he can work consciously. This chart, like an organizational chart, has much greater value than a normal pyramid. The pyramid only shows who is accountable to whom. The pyramid does not describe a production system. It does not tell the employee anything about how to align his work with the activities of his colleagues. The pyramid carries no message at all; it means, first of all, that everyone should please his boss (get good mark). The client has no place in the pyramid. The pyramid as an organizational chart destroys the system. The pyramid contributes to the fragmentation of the organization.

delayed effect. The effect of management actions can be manifested in a few months and even years. The immediate result is sometimes zero or negative. Therefore, the interpretation of the change may be erroneous. A simple example is vocational training. The only immediate result is costs, expenses. The effect of training will appear in many months or even years. Moreover, it cannot be measured. Then why do companies spend money on vocational training? Management believes that the benefits will far outweigh the costs in the future. In other words, managers come from theory, not numbers. They show wisdom. An ill-conceived solution to a problem can produce immediate results in the right direction, but over time cause disaster. For example, downsizing reduces the company's costs, but in due time leads to serious consequences. At the same time, the benefits of a particular decision may not appear for a long time. This idea is illustrated by Peter Senge in the book.

Job description should not just prescribe actions: do this, do that, do this or that. It should indicate what it is for. this work how it helps achieve the goal of the entire system.

If all components of the organization are optimized (each for individual profit, each for prima), then the company itself will be inefficient. When the whole is optimized, then the individual components will be less efficient.

Failure of the theory of competition. If economists understood system theory, the role of cooperation in optimization, they would stop claiming that salvation lies in competition.

Chapter 4

The prevailing management style needs to change. But the system cannot understand itself, and therefore changes must come from outside. This chapter provides an outside perspective, a kind of lens that I call the deep knowledge system. The deep knowledge system consists of four interrelated components:

• system understanding
• knowledge of deviations
• theory of knowledge
• psychology

Understanding the system. Fear leads to false numbers. If the retention of a certain position is at stake, any person will tell the boss only good news. Statistical calculations and predictions based on false numbers lead to confusion, annoyance and bad decisions. The leader must study the psychology of people, the psychology of the group, the psychology of society, and the psychology of change. He also needs to know about deviations, conditions for system stability, general and specific causes of deviations in order to effectively manage the system as a whole and human resources in particular.

Knowledge of deviations. We often make two costly mistakes:

• Mistake 1. Reacting to the result as if it was caused by a special cause, when it was the result of a general cause of deviation.
• Mistake 2. Reacting to a result as if it were the result of a general cause of deviation, when in fact it was due to a particular cause.

Dr. Shewhart has suggested procedures to help you minimize the economic loss from these mistakes. The process may or may not be statistically controllable. Under statistical control, we can anticipate future deviations. Costs, labor productivity, quality and quantity can be predicted. In such cases, Shewhart spoke of a stable condition. Otherwise, the process is unstable, and then its "behavior" cannot be predicted.

Theory of knowledge. Management is forecasting. The theory of knowledge explains why management in any form is forecasting. Rational forecasting requires theory; it builds knowledge through systematic analysis and expansion of theory based on past predictions and observations. If there were no initial theory, there would be nothing to study or revise. Without theory, we have no questions to ask. Therefore, without theory there is no knowledge. Theory is a window to the world. Theory "flows" into foresight. Without foresight, experience and examples teach us nothing. Easy Copy successful example without understanding his theory can lead to disaster.

There is no true meaning of any characteristic, state or condition determined by measurement or observation. Each new procedure of measurement (change of operational definition) or observation gives a new figure.

Operational definition is a procedure that is formed within the concept of a means of communication and translates it into a certain way of measurement. In other words, it is a definition with which a reasonable person can agree and which he can use in practice.

Information is not knowledge. Knowledge depends on theory. Without theory, it is impossible to use the information that comes to us.

Psychology helps us understand people, the interactions between people and circumstances, the relationship between customer and supplier, teacher and student, director and subordinate, and the management system. All people are different. The HR manager must be aware of these differences and use them to maximize the abilities and potential of each person. It's not about judging people. Unfortunately, nowadays management is based on the assumption that all people are the same.

Some people have a natural inclination to learn. Learning is the source of innovation. Some people have an innate desire to enjoy their work. good management helps us to preserve and multiply these positive qualities inherited by people.

External motivation sometimes indirectly gives positive results. Some external stimuli build self-esteem. But total submission external motivation destroys individuality. External incentives destroy internal motivation. No matter how it increases wage, it will not affect the productivity of employees in any way.

A monetary reward or prize for an action that someone performed solely for their own pleasure can be taken as an insult. If a person receives an award from someone he does not respect, then he may feel humiliated. Anyone dependent on extrinsic motivation destroys their self-esteem. Children feel best when they manage to master a new activity. Their intrinsic motivation grows.

The most important thing a leader can do is to understand what is important for a particular person. Thanks to this, the manager will be able to help his subordinates achieve better results and, possibly, replace external motivation with internal one. Monetary reward for work done for pleasure is a demoralizing overvaluation. An expression of appreciation means much more to a person than a monetary reward.

Chapter 5. Leadership

Understanding deep knowledge transforms management. Transformation in any organization occurs under the leadership of a leader. A leader's job is to help transform his or her organization. How does a leader achieve transformation? First, he has theoretical knowledge. Secondly, he feels responsible to himself and his organization for carrying out the necessary changes. Thirdly, he is a practitioner. He has a step by step plan and can explain it in simple terms.

Chapter 6 Human Resource Management

If you can't argue with the boss, then he's not worth working with.
Lieutenant General Leslie E. Simon, USA.

On fig. Figure 3 shows some of the destructive forces stemming from the present style of rewards and their consequences. They squeeze out, drop by drop, inner motivation, self-respect and dignity from the individual, from his life. They cause in him fear, the need for protection and external motivation. The transformation outlined in this book is designed to strengthen the bottom of the diagram and shrink the top, year after year.

Rice. 3. The forces that are shown at the top of the diagram deprive the people and the nation of innovation and hinder the development of applied sciences. We must replace them with management that will restore the power of the individual.

An example of unfulfilled hopes. A certain corporation has set itself two goals:

• create a reward system that recognizes excellence, innovation, dedication and dedication;
• create and maintain an incentive working environment to attract, retain and develop enterprising and talented people.

These goals are incompatible. The first goal will cause conflicts and competition between people, inevitably leading to demoralization. It will destroy the joy of work and will not allow the realization of the second goal, no matter how noble it may be.

Rice. 4. Statistics of labor productivity or failures, if any, can be reflected in the graph. Indicators characterize the system and those outside it

Chapter 7

Do not confuse coincidence with cause and effect
Gypsy Rennie

Rice. 7. Data obtained during the experiment; calculation of control boundaries; the results are shown in the graph (right); chart interpretation. Comparison with the previous experiment (left).

The process is in a state of statistical control. The diligent workers did their best. The only way to reduce the proportion of red beads in the final product is to reduce the amount of red beads in the input (and this is the responsibility of management).

When it was over, I thought about my work. How often do people strive to do their best in a situation where nothing depends on them? And they try their best. What happens over time with their motivation, diligence, desire? Many give up.

The system turned out to be stable. The deviations and results of diligent workers with the system unchanged were predictable. All deviations—differences in the productivity of diligent workers in the process of picking red beads, and differences by day for each diligent worker—were rooted from beginning to end in the process itself. There is no evidence that one worker was better than another. Management's assumption that the three diligent workers who had performed best in the past would continue to be the best in the future turned out to be unfounded. Management is a prediction, not a game.

Now the reader can look for red beads in his own company and in his work.

Chapter 8 Shewhart and Control Charts

Dr. Shewhart gave the world a new vision of science and management. He invented new way analysis of homogeneity and heterogeneity. He saw two types of deviations - deviations for general reasons and deviations for special reasons. Common causes of deviations give points on the control map that do not go beyond the control limits for a long time. The general causes of deviations do not change from day to day and from lot to lot. The particular reason for deviations is another matter entirely. It is detected by a point that goes beyond the control boundaries.

Dr. Shewhart's next major contribution was that the best thing we can do is to make mistake 1 or mistake 2 as little as possible, ie. adhere to rules that minimize the net economic loss from both types of errors in the long run. To this end, he came up with the so-called control charts and introduced rules for calculating control boundaries. Pick points on the graph. A point outside the control limits will be a signal (a signal is operational definition for an action) of a particular cause.

When the control chart indicates the absence of special causes, we are talking about a stable process or a process that is in a state of statistical control. In the state of statistical control, the degree of compliance with specifications makes sense. In the absence of statistical control, forecasting is impossible. The process is chaotic. The control chart in fig. 7 is an example of a process in a statistical control state. When statistical control is achieved, process improvement follows, provided that the cost of it is expected to bring significant economic benefits. Improvement can be defined as follows: narrowing the deviation, bringing the average values ​​to the optimal level, both options.

Acceptable boundaries are not control boundaries. Control limits can be calculated from available data. A point outside the control limits indicates the need to identify a specific cause and, if possible, eliminate it. I believe that there is no logical connection between the control and acceptable boundaries. Control limits, once we have reached the true state of statistical control, describe the process and say what it will be like tomorrow. The control chart is the voice of the process.

Examples of the wrong approach. After a regular weekly inspection, the inspector complained that the plant had seven unlabeled containers of the toxic substance. Who is responsible for the violation? Find and punish him, otherwise this violation will be repeated again ... Any lawsuit against malfeasance in medicine, at a construction site or in accounting implies that the event is caused by a special cause - i.e. happened because of someone else's fault. Studies with minimal application of the theory of deviations will lead to a different conclusion: the same event could be the result of the process itself, i.e. established practices.

Chapter 9

The purpose of this chapter is to demonstrate the waste that is caused by interference in the functioning of the system, which takes the form of results-based management. We suggest you conduct a simple experiment with a funnel.

Rule 1. Hold the funnel directly over the target and throw the ball through it 50 times. Each time mark the point of its fall (Fig. 9). Rule 2. After each throw, move the funnel to compensate for the error from the last throw (for example, if the ball falls 30 cm above the target, move the funnel 30 cm down). As you can see, intervention in a stable process (transition from rule 1 to rule 2) only worsened the results.

Rice. 9. Ball drop points according to rule 1 (left) and 2 (right)

Some mechanisms for misuse of feedback: intervention in the economy at the level of federal or state legislation; game of "broken phone" ...

To improve a stable system, a fundamental process change is needed. If a system does not justify the cost of improvement, it may be better to focus on other systems that are more worthy of attention. We must study economic aspects reduction of deviations.

Chapter 10

Deviations are life, and life is deviations. An example from life. A lawyer who has received an excellent education, but is not familiar with statistical theory, explains each case by a special reason - he does not know the difference between general and special reasons.

Every manager should develop the habit of not demanding comments on ups and downs (daily, monthly or yearly) caused by random changes.

Loss function describes the losses that the system incurs from various values ​​of the controlled parameter. It only applies to losses that can be measured. First of all, the loss function helps us move from the world of specifications (i.e. compliance with specifications) to gradually reducing deviations through process improvement. For practical purposes, we have presented the loss function as a parabola (Fig. 10). Dr. Taguchi called them losses to society. It should be noted that the loss function does not have to be exact. In fact, there is no exact loss function.

Rice. 11. To incur minimal losses, strive to bring the distribution function of production P (x) closer to the nominal value, at which μ = 0

Moral: Measuring variance is not an achievement. It is much more important to center the deviation.

In the English version, somehow more familiar: PDCA (plan-do-check-act).

Country:

USA

Scientific area: Alma mater: Known as:

Quality management specialist;
Founder of total quality management;
Consultant for large American and Japanese companies in the field of quality management.

Awards and prizes

1955 - Walter Shewhart Medal (American Society for Quality Control)
1963 - Order of the Sacred Treasure II degree
1972 - The title of "Most Outstanding Alumnus" of the University of Wyoming
1983 - Winner of the Frederick Taylor Award (American Management Association)
1983 - Recipient of the Samuel S. Wilkes Award (American Statistical Association)
1986 - Title of honorary member of the National Academy of Mechanical Engineering
1988 - The title of "Outstanding Scientist" (US National Academy of Sciences)

Deming, William Edwards(English) William Edwards Deming, October 14 - December 20), also known as Edward Deming- American scientist, statistician and consultant on the theory of quality management. Deming is best known for his innovative proposals for reorganization of enterprises, widely used in Japan and other countries under the name "lean manufacturing".

He is one of the founders of the American Society for Quality Control, established in 1946. He was awarded one of the most prestigious awards established by this society - the Shewhart Medal.

early years

Born in Sioux City, Iowa, William Edwards Deming grew up in Polk City, Iowa on his grandfather's chicken farm, Henry Coffin Edwards, and later on a farm in Powell, Wyoming, purchased by his father. Father - William Albert Deming William Albert Deming). Mother: Plama Irene Edwards Pluma Irene Edwards) .

Jobs in Japan

Awards and titles

Dr. Deming has been awarded the US National Medal of Technology and is inscribed in the Hall of Fame for achievements in science and technology. In 1960, Dr. E. Deming was awarded the Order of the Blessed Treasure, 2nd degree. This is one of the highest orders of Japan, awarded on behalf of the emperor.

There are associations named after him in many countries of the world.

A Brief Overview of Deming's Philosophy

The philosophy of Edwards Deming is summarized as follows:

"Deming taught that by adopting appropriate management principles, organizations can improve quality while reducing costs (by reducing waste, rework, attrition and litigation, while increasing customer loyalty). The key is to practice continuous improvement and represent production as a system, not as pieces and parts."

In the 1970s, Deming's philosophy was summed up by some of his Japanese supporters with the following contrast:

A) When people and organizations focus primarily on quality, defined by the following ratio: (eng: ) then quality tends to increase, and costs decrease over time. b) However, when people and organizations focus primarily on "costs", costs tend to rise and quality declines over time.

Deming's System of Profound Knowledge

"The established management style must undergo transformation. The system cannot understand itself. Transformation requires an outside view. The purpose of this chapter is to provide an outside view - a magnifying glass that I call a deep knowledge system. It provides us with a map of theory in order to understand the organizations over which we are working."

"The first step is the transformation of the personality. This transformation has no duration. It comes from the onset of understanding the system of deep knowledge. The personality, being transformed, will begin to perceive new meaning about his life, about events, about numbers, about the interaction between people.

"When a person has reached an understanding of a system of deep knowledge, he will apply its principles in any kind of relationship with other people. He will have a basis for judging his own decisions and to transform the organizations to which it belongs. The transformed personality will:

• Set an example;
• A good listener, but will not compromise;
• Constantly teach other people; and
• Helping people break out of their current practices and beliefs and move on to a new philosophy without feeling guilty about the past."

Deming believed that all managers should have what he called the Deep Knowledge System, which consists of four parts:

1. Understanding the System : understanding of the whole process in which suppliers, producers and consumers (or recipients) of goods and services are involved ( explained below);
2. Knowledge of Deviations : the range and causes of deviations in quality, and the use of statistical sampling in measurements;
3. Theory of knowledge : concepts that explain knowledge and the limits of what can be known.
4. Knowledge of psychology : concepts of human nature.

Deming explained: "You do not need to be outstanding in any one of these four areas of knowledge and not in all four at once in order to understand and apply it. The 14 points for management in industry, education and management follow naturally from them, as an application of this external knowledge to the transformation of the style of Western management present in the present to an optimized style."

"The various segments of the profound knowledge system proposed here cannot be separated. They interact with each other. Thus, knowledge of psychology is incomplete without knowledge of change."

"The manager of people must understand that all people are different. This is not an assessment of people. He must understand that the performance of each is controlled mainly by the system in which he works, and the system is in the responsibility of management. A psychologist who has even a primitive understanding of change, how will shown in the red bead experiment (Ch. 7) can no longer participate in the improvement of the plan for evaluating people."

Understanding the System includes an understanding of how interaction (for example, Feedback) between elements of the system can lead to internal constraints that make the system behave like a single organism that automatically seeks a steady state . It is this steady state that determines the output of the system, and not its individual elements. Thus, it is the structure of the organization, and not the workers, individually, that holds the keys to improving the quality of the output, the output of the system.

Knowledge of Deviations includes the understanding that everything that is measured consists of both "normal" deviations resulting from the flexibility of the system, and "special causes" that create defects. Quality involves recognizing the difference between them to eliminate "special causes" while controlling for normal deviations. Deming taught that making changes in response to "normal" deviation would only make the system perform worse. Understanding deviations includes the mathematical certainty that deviation usually occurs within six standard deviations of the mean.

The Deep Knowledge System is the basis for applying Deming's famous 14 Control Points, described below.

Deming's 14 Key Principles

1. Constancy of purpose: Set a goal and be unfailingly firm and constant in achieving the set goal of continuous improvement of products and services, allocating resources in such a way that long-term goals and needs are met, and not just momentary profitability, to achieve competitiveness, maintain the enterprise and keep people employed.
2. New philosophy A: Adopt a new philosophy. We are in a new economic era started in Japan. We can no longer live with the usual level of delays, errors, defects in materials, defects in workmanship. A transformation of the Western style of management is needed to stop the ongoing decline of the economy.
3. End addiction to mass control: Eliminate the need for mass testing and inspection as a way to achieve quality, primarily by building quality into products. Demand statistical evidence of "built-in" quality both during production and in purchasing functions.
4. End the practice of purchasing at the lowest price. Instead, along with the price, demand serious proof of its quality. Reduce the number of suppliers of the same product by eliminating the services of those who could not statistically confirm its quality. Strive to obtain all supplies of a given component from only one manufacturer, on the basis of establishing a long-term relationship of mutual loyalty and trust. The goal in this case is to minimize the total cost, not just the initial cost.
5. Improve every process. Improve constantly, today and always, all processes of planning, production and delivery of services. Constantly look for problems in order to improve all activities and functions in the company, improve quality and productivity, and thus constantly reduce costs. Continuous improvement of the system, including development and design, supply of components and materials, maintenance and improvement of equipment operation, management and organization methods, training and retraining of personnel, is the first responsibility of management.
6. Put into practice the training and retraining of personnel: Put into practice modern approaches to training and retraining for all employees, including managers and managers, in order to better use the capabilities of each of them. To keep up with changes in materials. methods, product designs, equipment, technologies, functions and maintenance methods require new skills and abilities.
7. Establish leadership. Understand and practice leadership as a way of working to help people do their best work. Managers at all levels should be responsible not for bare numbers, but for quality. Improving quality automatically leads to increased productivity. Supervisors and managers must ensure that immediate action is taken when they receive reports of defects, faulty or malfunctioning equipment, poor tools, unclear work instructions, and other factors detrimental to quality.
8. Banish your fears. Encourage effective two-way communications and use other means to root out fears, fears, and hostility within the organization so that everyone can work more efficiently and productively for the good of the company. Any employee who fears his superior cannot properly cooperate with him. The best that can be expected in such circumstances is resentful humility, which is exactly what such a leader desires. However, this state of affairs will never lead to good results. True collaboration accomplishes much more than isolated individual efforts. But this interaction cannot be good if mutual trust, confidence and respect are not cultivated. Those who work in fear try to slip out of sight of those they fear. And how can you expect a return corresponding to potential opportunities from people whose main desire is simply not to be noticed?
9. Break down barriers between divisions, services, departments. People from different functional departments - researchers, developers, manufacturers, representatives of commercial and administrative services - must work in teams (teams) in order to eliminate problems that may arise with products or services. Most companies are organized on a functional basis, but they must work in conditions of functional interaction.
10. Give up empty slogans and appeals. Refrain from using posters, slogans, and calls to workers that demand defect-free work, a new level of productivity, etc., but do not say anything about methods to achieve these goals. Such appeals only evoke hostility; the bulk of poor quality and performance problems are system-related and thus beyond the capacity of ordinary workers to solve.
11. Eliminate arbitrary numerical norms and assignments. Eliminate work instructions and standards that set arbitrary norms, quotas for workers, and quantitative targets for managers. Replace them with support and help from senior leaders in order to achieve continuous improvement in quality and performance.
12. Give employees the opportunity to be proud of their work. Eliminate the barriers that rob workers and managers from taking pride in their work. This implies, among other things, the rejection of annual appraisals (assessments of the performance of employees) and management methods by objectives. And again, the responsibilities of managers, controllers, foremen must be shifted from achieving purely quantitative indicators to achieve quality.
13. Encourage the pursuit of education. Establish a vigorous self-improvement education and support program for all employees. An organization needs more than just people, it needs workers who improve as a result of education. The source of successful progress in achieving competitiveness is knowledge.
14. Commitment to Quality Improvement and Top Management Efficiency. Clearly define top management's unwavering commitment to continual improvement in quality and performance and their commitment to putting all of the principles discussed above into practice. However, not only will top management sincerely proclaim their eternal commitment to quality and performance. It must also know what is what they are committed to, that is, what they must do. Form a structure in senior management that will give impetus every day to move towards the above 13 principles, and act to bring about transformation. Support is not enough here, concrete deeds are needed.