How we can get back on course

Ø 1) Read the text and the statements. Put them in the order they are in the text:

a)there’s next to nothing worse than an unsolved problem,

b)therefore it is necessary to learn and live the management style based on the philosophy of W. Edward Deming,

c)his philosophy focuses on the never-ending improvement of all processes,

d)with higher quality and greater and greater price flexibility, you can capture the market,

e)but if you are not interested in a long-term commitment to learning growth and change you shouldn’t adhere to the Deming philosophy,

f)His philosophy is not just one of techniques that can be learned in a one day seminar or ingested in a two-hour reading.

Now that we have pointed out that the USA have a problem, you’re wondering what you can do about it. Probably part of the reason you didn’t want to acknowledge the problem in the first place was a fear of not being able to do anything about it; and let’s face it, there are very few things that are worse than an unsolvable problem.

However, there is a navigational chart that will get you back on course and guide you to your ultimate destination. Learning and living the management style of W. Edwards Deming will provide you with a holistic approach for management in which the organization is viewed as an integrated entity. It is a philosophical perspective from which a manager conducts the organization’s business on a long-term basis, a perspective that also provides guidance for day-to-day action. This philosophy is driven by the force of quality and focuses on the never ending improvement of all processes to improve quality. Dr. Deming’s philosophy plans for the achievement of a desired goal (e.g. increase profits, increase customer satisfaction, increase employment, etc.), but it doesn’t specify the goal to be achieved.

When Dr. Deming’s philosophy is accepted and lived, you can improve the processes of your system, which will necessitate less rework and will produce more quality goods for less cost. Your unit cost will decrease, and you will gain greater price flexibility. With higher quality and greater price flexibility, you can capture the market. When you capture the market, your demand goes up, your profit goes up, and you create new and more secure jobs. You will have funds for improvement, research and development, and employees. You’re probably reading this very skeptically and thinking, “Oh, this is another of those “quick fix” technique books that is good for a short period of time but doesn’t hold up over the long haul.” That couldn’t be further from the truth. Unless you are interested in a long term commitment to learning, growth, and change, you shouldn’t attempt to adhere to the Deming philosophy.

Dr.Deming’s philosophy is not problem solving, participative management, quality circles, just-in-time inventory, statistical quality control, lifetime employment, automation/robotics, or any other technique that can be learned in a one day seminar or ingested in a two-hour reading. It is a total view and way of organizational life that must be learned, relearned, and refined over time in a supportive environment. Then and only then can the tremendous benefits be reaped by the organization and by those in the system.

Ø 2) What is the most adequate summary of the text?

a)The navigational chart that will get the American economy back on course is the theory and philosophy of Dr. W. Edwards Deming. This philosophy is driven by the force of quality and never-ending improvement. It is a total view and way of organizational life.

b)Dr. Deming’s philosophy is not a problem solving, it is a total view and a way of organizational life. It is clear now that the American industry is in trouble. The remedy to make it healthy is Dr. Deming’s philosophy, the essence of which is never-ending improvement. It will be not an easy task , because they accept poor quality as a way of life.

WHO IS W. EDWARDS DEMING?

Ø 1) Read the text and answer the questions:

a)What is Dr. Deming?

b)What contribution did he make into the success of Japanese industry?

c)When was he first invited to Japan?

d)What did he manage to convince Japanese scientists and engineers in?

e)What is the highest prize in Japan for the greatest gain in quality?

f)How was Dr. Deming awarded by Emperor Hirohito?

g)Are Dr. Deming’s methods received in the USA?

h)What kind of activities does Dr. Deming go in for except consulting?

W. Edwards Deming is an internationally renowned consultant who is best known for his work in Japan, which revolutionized Japanese quality and productivity. Dr.Deming’s philosophy and methods were largely responsible for the success of Japanese industry today.

In 1950, Dr. Deming was invited by the Union of Japanese scientists and engineers to speak to their leading industrialists who were concerned about breaking into foreign markets and about Japan’s reputation for poor quality goods. Dr. Deming convinced them, despite their reservations, that Japanese quality could be the best in the world if they instituted his methods. The industrialists took Deming’s philosophy to heart, and the rest is history.

Each year Japanese industry awards the Deming prize to the company among them that has achieved the greatest gain in quality. The award ceremony is broadcast on national television; recipients have included Nissan, Toyota, Hitachi, and Nippon Steel. In 1985, Texas Instruments became the first U.S. company to win the Deming prize. Dr. Deming holds the Second Order Medal of the Sacred Treasure, which was bestowed on him by Emperor Hirohito, for contribution to Japan’s economy.

The adoption of Dr. Deming’s methods is finally spreading in the United States. Until recently, Dr. Deming has not received the attention in the United States that he has in Japan. Now, companies such as the Nashua Corporation, the Ford Motor Company, and the Pontiac Division of General Motors are listening to Dr. Deming and are trying to change their corporate cultures to reap the benefits.

Dr. Deming’s clients have included railways, telephone companies, consumer researchers, hospitals, law firms, government agencies, and university research organizations. He has written extensively on statistics and is a professor emeritus at New York University Graduate School of Business Administration.

Ø 2) Say whether the following statements are true or false and justify your answer:

a)Dr. Deming’s work in Japan revolutionized Japanese quality and productivity,

b)Dr. Deming’s philosophy can be applied only to industry,

c)the USA industry prospered due to the application of Dr. Deming’s methods,

d)he had also written extensively on statistics,

e)Dr. Deming’s methods began finally spreading in the USA.

THE EXTENDED PROCESS

Ø 1) Before reading the text answer the questions:

a)Are customers always paid attention to by various organizations in our country?

b)Have you ever had to wait in a store while a shop assistant ignores you and is talking on the telephone?

c)Have you ever got a rude or indifferent answer to your question?

d)Why isn’t it possible to buy a bus ticket by phone?

e) All these examples show the negligent attitude to a customer, don’t they?

Organizations consist of manpower, methods, materials, and machines. These components make up the system and its process, within the organization.

However, under the Deming philosophy, the company’s process expands to include suppliers, customers, investors, and the community. This is known as the extended process. It starts with the needs of the consumer being communicated to the organization.

The consumer is the most important element of the extended process because customer satisfaction is the ultimate goal. Unfortunately, purveyors of goods and services seem to have forgotten that. How many times have you waited in a store while a clerk talks on the telephone and ignores you? How many times have you had to spend your own time rectifying mistakes made by others which impact on the way you do business? Organizations are not always paying attention to customers’ needs. Under the Deming philosophy, firms perform consumer research to conceive and design their products. However, this research doesn’t stop there. It is an ongoing process that determines how the products are performing and what new specifications would improve the customers’ satisfaction.

At the other end of the extended process are the firm’s suppliers. In order for the firm to produce quality goods, it not only has to surpass the customers’ specifications but it also has to communicate these needs to its suppliers. Suppliers then have to demonstrate that they are committed to providing materials that will enable the firm to surpass the customers’ needs.

Ø 2) Answer the questions on the text:

a)What components make up the system and the process within an organization according to a traditional point of view?

b)What does the company’s process include according to the Deming philosophy? What is it called?

c)What is the most important element of the extended process? Why?

d)Do all organizations pay attention to customers’ needs?

e)What is the characteristic feature of research under the Deming philosophy?

f)Who else should be taken into account, when speaking about the process, according to Dr. Deming?

QUALITY

Ø 1) What do you understand by the word “quality?” What role does it play in life? What place does it occupy in the processes we are engaged in?

What this all leads up to is the capstone of the Deming philosophy – quality – which is achieved through the never-ending improvement of the extended process, for which management is responsible. There are three types of quality that managers must understand if they want to improve the extended process. These are: (1) quality of design/redesign, (2) quality of conformance, and (3) quality of performance. Quality of design begins with consumer research, sales analysis, and service call analysis and leads to the determination of a prototype that meets the customer’s needs. In considering consumer’s needs, it is critical that firms look years ahead to determine what will help customers in the future. Next, specifications are constructed for the prototype and are disseminated throughout the firm and back to the suppliers. Quality of conformance is the extent to which a firm and its suppliers are able to surpass the design specifications required to meet customers’ needs. Quality of performance is the determination through research and sales/service call analysis of how the firm’s products or services are actually performing in the marketplace. Quality of performance leads to quality of redesign, and so the cycle of never-ending improvement continues.

Ø 2) Answer the questions:

a)What is the main idea of the Deming philosophy?

b)How is quality achieved?

c)What are the three types of quality that managers must understand?

d)What do the tree types of quality mean?