Case Study-- Using Managerial Statistical Thinking in Sales Developing a Leadership Strategy
juicywang
deming_chapters_1__21.rtfDeming Chapters 1 & 2
How Are We Doing?
The change has been gradual….
….but dramatic….
….and continuous…
….and continual!
Where’s Our Future?
Mass Production?
Return to Low Labor Cost Country?
Specialized Products & Services?
What’s Required?
Knowledge—Improved Education System
Continual Innovation—Apple/Samsung
Quality Improvements
Reducing defects in a declining product
Reducing defects while creating demand through innovation
The Deming Way System of Profound Knowledge
Appreciation of a System
Knowledge About Variation
Theory of Knowledge
Psychology
Appreciation of a System
What is a system?
A network of interconnected components that work together to achieve the aim of the system
Orchestra example
SIPOC and expansion of the system
Knowledge About Variation
Once a process is in statistical control, it has a defined capability
If a process is NOT in statistical control, it does NOT have a defined capability
In the latter case, performance is NOT predictable
Common Cause & Special Cause Variation
Common Cause—inherent to the system
Special Cause—something has changed….
….but what?
Theory of Knowledge
Knowledge comes from outside of the system
Knowledge is built on theory
Chanticleer example
Deming said, “Information is NOT knowledge.”
Predictions from the news?
Operational Definition is Key
What is an Operational Definition?
What is the best Operational Definition?
It Depends!
Psychology
Individual, Group, Organizational
Assessments
Discussion on trophies (reinforcement)
The Heavy Losses
Deming despised WASTE!
Hard work & best efforts in a broken system are for naught
Quarterly Report example
Appraisal/Ranking
“Ranking is a farce”
Variation among employees
Ranking comes from failure to understand variation from common causes
Conflict vs Cooperation (salesmen)
Use of control limits in performance?
Response to Business Pressures
Japan
Cut dividend
Reduce mgt pay/bonus
Cut management
Ask ee’s for help
Cut hrs/pay, not jobs
United states
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Business Issues?
Functional Silos
Counter to systems thinking
MBO
Purchasing example
Numerical Goals
Distortion and faking (chart goal)
Management by Results
Action based on last data point
Quality Clarification
94% of problems inherent to system
6% of problems due to special causes
Who can fix the special causes?
Who is responsible for quality?
Next Up
Assignment:
Read Deming chapters 3 & 4
Quiz over chapters 3 & 4
Due tonight:
Quiz over chapters 1 & 2
What Makes a Leader
discussion thread
