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Alexander Dulovits

on 9 May 2013

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photo (cc) Malte Sörensen @ flickr Group Members: Elif Bozdogan
Alexander Dulovits
Oscar Forero
Ahmad Mohamad
Mira Vitania General Overview
- Introduction to 14 Management Principles and Management Theory. (Elif)
- Toyota 14 points (Alex)
- Innovation, Research & Education (Oscar)
- Communication in organizational hierarchy (Vita)
- Conclusion and general insights (Ahmad) DEMING´S APPROACH & RELATION WITH
GENERAL MANAGEMENT THEORY Situation After TPS Situation Before TPS Focus only in Short term Goals  Negative


-Leads to a disruption in quality and a lack of improvements in Long Term Goals.

-Management Decision based on Long Term Goals.

-Toyota Production System (TPS).

-No matter if this involve increasing costs. Deming influence Toyota applies Deming´s Theory in latest 60´s
and he was known as the father of modern success of japaness industrial production. Implementing Deming´s Theory. What is really happening….. More about TPS Reference: WWW.TOYOTA.COM/article_display.cfm?article_id=2286 Organized line of production

On-The-Job Training.
Change supervision methods "inspired leaders", constructive supervision.
Instill learning.
Continuous training. TPS “Mission of Toyota” Was originally designed to reward Japanese companies for major advances in quality improvements. Deming in Japanese Culture Continuous teaching to other workers.
Help people to leave their belief and rigid practices.
Appreciation for a system. Leading to… I Inspired Mr. Toyoda to Change his company!! Toyota: Research, Design, Sales, Production Deming’s 14 Points: Remove Barriers Remove barriers between departments → work together as a team rather than different work units
Collaborative teamwork
Remove competition between departments by avoiding performance merit rating Deming’s 14 Points: Remove Barriers Deming Deadly Sin: “Lack of constancy of purpose”

Short term thinking → Failure

Management without objectives management by fear

Managers sometime use coercive power Deming’s 14 Points: Drive Out Fear Deming Deadly Sins: “Evaluation by performance, merit rating, or annual review of performance”
The essential problem with merit systems is that they reward results rather than process improvement.
Subjective: Some managers want to reward people who cooperate more or who seem to have better attitudes, and will insist that they can recognize the people who are most cooperative and have the highest work ethic. Deming’s deadly Sins “Barriers between Departments” Deming’s 14 Points: “Drive out fear and instill learning”
Overcome fear to bosses
Managers should motivate employees
Managers should present themselves as approachable figure
Communication should be in two ways therefore employees
Managers should understand that the best way to develop cooperation is by focusing on the nature of work environment, not monetary rewards. Deming’s 14 Points: Drive Out Fear

“Fear of Boss” Deming – 14 points IBM (1993 – 2002)
Divisions were allowed to rebrand and manage themselves → Created competitions

Louis V Gerstner, Jr changed it into Top to Bottom Down Technology Solution
Result: Significant Profit Increase Deming’s 14 Points Deming’s 14 Points: “Remove Barriers Between Departments” Deming’s 14 Points Communication in Organization Hierarchy Deming’s 14 Points THE END Q&A Conclusion Innovation, education and research for continuous improvement Innovation
Education and research
Improvement of product and/or services Definition Deming’s Approach
General Management Theories
Relationship between Deming’s Approach and General Management Theories Quiz How many points of management were introduced by Deming?
Name one company that implemented the Deming’s approach ( : Not Toyota : ) Quality Management Supersede fear and cultivate learning habits
Communication Toyota Toyota Production System (TPS)
Just In Time (JIT)
Relation between the managers and suppliers KAIZEN TEAMS AIM OF THE SQC ANALYSIS INNOVATION & RESEARCH Deming’s Approach..Innovation, Research and education Source: http://www.sakura-kogyo.co.jp/english/kaizen.html First company to adopt deming approach was Ford Motor groups

Besides a whole range of companies till today TOYOTA has been a major follower of the “Deming Way” Deming Management Examples NOT AS WE NOW IT !!! 7 Deadly Sins Lack of constancy of purpose.
Emphasis on short-term profits.
Evaluation by performance, merit rating, or annual review of performance.
Mobility of management.
Running a company on visible figures alone.
Excessive medical costs.
Excessive costs of warranty, fuelled by lawyers who work for contingency fees Demings’s 7 Deadly Sins Constancy of Purpose
The new philosophy
Cease dependence on mass inspection
End lowest tender contracts
Improve every process
Institute training on the job
Institute leadership of people:
Drive out fear
Break down barriers
Eliminate exhortations
Eliminate arbitrary numerical targets
Permit pride of workmanship
Institute education.
Transformation Deming’s 14 Points for TQM seeks to improve quality and performance which will meet or exceed customer expectations, is developed.
quality quaLITY QUALITY TQM Total Quality Management Early management theories
-Taylor and Fayol
Focused on what mangers should do.
- Mayo and McGregor
Focused on human behaviour. General Management Theories Management Approach
Demings 14 points on management
Demings 7 deadly sins Graduated with a B.S in electrical engineering Born: October 14, 1900 Who is Deming? Now we will see how TOYOTA
applied Deming´s business plan Deming's 14 Points: Remove Barriers Toyota CFM Framework
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