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MGMT640-1601B-01

Roderick Deon Goodrum

Wendy Arrignton

Pamela D. Stewart

Aladden Ali

Ronald Flores

“Deming’s 14 points”

Unit 4 Group Project

Colorado Technical University

Instructor: Dr. Thomas Joseph

03/14/2016

1. Creation of constancy

Use a single supplier for any one item. Quality relies on consistency the less variation you have in the input, the less variation you'll have in the output. Look at suppliers as your partners in quality. Encourage them to spend time improving their own quality they shouldn't compete for your business based on price alone. Analyze the total cost to you, not just the initial cost of the product. Use quality statistics to ensure that suppliers meet your quality standards.

2. Adopt the new philosophy.

This principle speaks volumes to the way an organization should be set up. There are some key elements that are mentioned. - Embrace quality throughout the organization- Every part of the organization need to be looked at the same.

 - Put your customers need first, rather than react to competitive pressure and create products and services to fit those needs- Organizations should always remember why they exist; it’s because of the customer. It’s important that if a product is in demand, that the need is met or the customer will go elsewhere.

- Be prepared to change the way you do business- If it’s not working, don’t be afraid to change it. It is always a great idea to try something that will enhance your productivity. Be open to a conversation about change.

3. Cease dependence on inspection to achieve quality.

Eliminate the need for inspection on a mass basis by building quality into the product in the first place.

4. Cease awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.

5. Improve constantly and forever

As I briefly mentioned in the overall discussion board. I think that companies have to keep evolving if they are to stay a strong competitor. There is always a need to improve something in a company whether it is a new technology system or a new process that can improve production or a way to improve quality and the list goes on regardless of the system, process and/or technique, companies have to change as the year’s progress and the markets and industries change.

6. Institute training on the job

As with the constant improvements going on, it is also important to ensure that the right trainings are being implemented. When introducing new technologies and/or processes the employees need to know what to do to ensure the quality of the company is not compromised. It is also essential that managers are also aware of any changes so that they are more equipped to help others. Also managers need to have extensive product knowledge that will not only help other employees but also the customers. Well trained employees can help a company overall as it goes through the many changes in the industry and over the years.

8. Drive out fear

Every day supervisors get a quota from their managers on how much productivity should be done by the end of the day. The supervisors pass out the message to employees, they tell us that we must have a sense of urgency. The fear hunts employees because many of the times the machinery does not work accurately, many issues arise and we depend on the maintenance personnel to solve the issues. Some mechanics do have the experience and some don’t, to make the long story short; all employees and mechanics are in the same boat and we are worried that we will be fired or the company will close.

9. Break down barriers

In my current organization, there are a lot of barriers that are present. Due to these barriers, communication is poor, the respect level is low and every department feels like a standalone. There is no real united front and customers can tell.

· Have a shared vision-  It is important that every department in the company has the same vision. We all need to be going in the same direction to reach the common goal.

· Focus on collaboration instead of compromise-   People often try to come to a compromise when different views are expressed. Instead of trying to compromise, collaboration works better. This way we can combine our ideas instead of trying to take some ides away.

· Build the internal customer concept- This is the most important aspect of breaking down the barriers. Once the barriers are broken, the common goal can be met. In doing this, a company can grow to its full potential.

10. Eliminate

I understand that it is better to have great production and once again the pressure to eliminate waste is in high demand. The leadership team and supervisors give employees a scrap or waste target of 2 percent, which is unlikely to happen. The second target that they give us for good quality production is 75 percent. The targets that they give us are kind of hard to meet. There are days when the machinery runs great, but most of the times it is not too good. The only times when employees have good productivity is when there are no change overs all day to a different type of product.

•Eliminate work standards (quotas) on the factory floor. Substitute leadership.

Operation

•Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.

11. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality.

12. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective.

13. Institute a vigorous program of education and self-improvement.

14. Put everybody in the company to work to accomplish the transformation.

With the ongoing improvements, trainings, breaking barriers, why not summarize with a transformation. The overall transformation processes of a company everyone’s responsibility. I think if you are a part of the company you are a part of the change that can propel the company further into what is to come and prepared for future success. And employees and the customers are essential assets to the future of a company.

· How the new process will address each of Deming's 14 points, as compared to the old process

· How your team has optimized the process

· Managerial and employee goals and communication processes to reach each of Deming's Points in the future

High transportation cost is one of the leading problems that the management is facing and needs to overcome. The investment of time and money that organizations make, in order to carry out that transportation of raw materials and the distribution of the products to the consumers, are huge. While building a facility closer to the retail stores and industries that supply the raw materials is one option, it again presents a very huge investment risk that the company cannot afford to take. Deming’s point and the use of process map are, perhaps the best way to overcome these issues while allowing the company to continue its operations effectively. Process maps and the use of Deming’s points would ultimately allow the management department to accurately determine the steps that company should take next in order to overcome the current problem that it is facing. [Roberts, (2012)]

Process mapping is primarily used in order to determine the individual steps that would need to be taken in order to execute the strategies in order to improve the quality of the process that is being considered. More often than naught, it so happens that the simple act of creating a process map often allows organizations and companies to see through obstacles and figure out ways to overcome and improve. Creating an ideal process map with minimal waste in transportation would allow the management to understand the ways to improve the overall quality while maintain cost-effectiveness.

Process Map

(Figure 1: Process Map Non-Ideal)

(Figure 2: Process Map Ideal – Minimal Waste)

Deming’s fourteen points can be implemented in the transportation area of the organization. The process describes above can use Deming’s fourteen points to reach a better quality in its operations. Deming’s point that suggests that companies should use a single supplier for their dealings is an important one to take in to account when it comes to dealings with suppliers for raw material transportation. Reaching consistent quality standards becomes difficult when multiple suppliers are used for the same material. Using single supplier for one item would ensure consistent quality. Furthermore, management could easily make a deal with the chosen supplier regarding the transportation costs in a manner that benefits both parties equally. Furthermore, Deming’s points that suggest that the company should strive for quality improvement every day are another important aspect that could be implemented in to the transportation area as well.

For example, the company could improve transport through adopting green transport as opposed to the usual fuel that is used. This would improve the overall image of the company while saving fuel costs to some extent, making transport more affordable and economical. Other steps that management could take in order to reduce transport costs are to ensure that the product quantity does not exceed the storage space for transportation. Additionally, Deming’s fourteen points could be used in order to provide training to the transportation servicemen in order to allow them to provide quality transportation services.

References

Neave, H. R. (1987). Deming's 14 points for management: framework for success. The Statistician, 561-570.

Anderson, J. C., Rungtusanatham, M., & Schroeder, R. G. (1994). A theory of quality management underlying the Deming management method. Academy of management Review, 19(3), 472-509.

Roberts, H. (2010). Quality is personal: a foundation for total quality management. Simon and Schuster.