Deming's Fourteen Points for Management:

The principles by which TQM can be incorporated into an organization is given by Deming’s 14
points for Transformation of Management. These include

Create Constancy of Purpose: Create constancy of purpose towards improvement of product

and service with the aim to become competitive, to stay in business, and to provide jobs. The
management must take immediate action on any deviation from the drive towards achieving
constancy.

Adopt a New Philosophy: A change is necessary in the old management methods, which are no
longer effective for today’s business environment. If current management practices are not in
tandem with the type of business then the cost is bound to be loss of competitive position.

Cease Dependence on Mass Inspection to Achieve Quality: Build quality into the product in
the first place. If possible, everything has to be done right at first time so that there is no need for
rectification later. There is a need to replace the practices of mass inspection and defect detection
with practices of defect prevention and continuous improvement

End the Practice of Awarding Business on the Basis of Price Alone: The low price of
incoming materials does not ensure performance. It is possible that the future supplies are not
consistent as regards quality level. Therefore, it is always worthwhile to stick to a single supplier
for any one item in a long-term business association of loyalty and trust.

Constantly Improve the System of Production and Service: The Company should always try
to reduce variability in order to improve quality and productivity constantly and decrease costs.
The manager should keep an eye on the system, maintenance and process improvement and
training. He should anticipate trouble and not become content.

Institute Training on the Job: Training and education are the cornerstones of consistency.
Investment in proper training of all new employees including managers will ensure that
newcomers will immediately start contributing to their full capacity.

Adopt and Institute Methods of Supervision and Leadership: The aim of supervision should
be to help people and machines do a better job that employees take more interest in work and
come forward in handling responsibilities. Modern leadership means that people leading the
company must show the employees ways of improving productivity; the leaders should be a
motivating factor; they should teach and counsel rather than judge.

Drive out Fear: In order that everyone works effectively and productively for the company, a
two-way communication should be encouraged. When fear is driven away, it leads to successful
joint working relationships, based on respect and cooperation. An atmosphere of fear is always
counter-productive and reduces competitiveness and innovation.
Break Down Barriers between Departments and Individuals: People from all departments
contribute to a common goal of company and eventually success. This is possible when
individual barriers breakdown and lead to mutual trust and cooperation.

Eliminate Slogans: Slogans and poster campaign demanding for new levels of excellence do not
yield positive results because the worker cannot correct the causes of low quality and
unsatisfactory productivity. No substantial improvement can be made through slogans unless
management takes an initiative or employee training is done.

Eliminate Numerical Goals or Work Standards: The only way to increase quality and
productivity is to replace work standards with competent leadership. If target is reasonable and
eventually achieved, the employee involved will become complacent and put no more efforts. On
the other hand if target is unreasonable, either it will not be attained or it will be attained by
manipulating the figures and/or lowering standards. Thus, any methods relying on numerical
goals are detrimental to the future of the whole company.

End Annual Reviews or Merit Rating: Deming strongly recommends the abolition of the
annual merit rating because it destroys teamwork, increases variability in the performance of
employee and focuses on short term. Besides, it causes excessive internal competition and
isolation, reduces initiatives and risk-taking.

Institute a Rigorous Program of Education and Self-improvement: This refers to continuing

re-education and self-improvement for everyone. Retraining is as essential as providing training
to new employees because it gives the people a sense of security that their work carries a value.
Re-education assures that if the position, the employee is currently holding, ceases to hold a
value, then he would be able to change into a more valuable position within the company.

Define Top Management’s Permanent Commitment to ever Improving Quality and

Productivity: Management should immediately take action to accomplish the transformation by
implementing the preceding 13 points. Once a manager fully understands Deming’s philosophy,
he will become capable of coordinating actions for continuous improvement.
 Deming's 7 Deadly Diseases of Management
W. Edwards Deming "14 Points" break down the need for a working understanding of basic
quality management system statistical principles. Deming also outlined Seven Deadly Diseases,
which describe the most serious barriers that management potentially faces within an
organization.

W. Edwards Deming "14 Points" express Deming's philosophy of management: specifically,

they break down the need for a working understanding of basic quality management system
statistical principles. In addition to Deming's 14 points, he also outlined Seven Deadly Diseases,
which describe the most serious barriers that management potentially faces within an
organization. Outlined below are his Seven Deadly Diseases of Management, as well as an
explanation of each.

1. Lack of constancy of purpose to plan product and service that will have a market and
keep the company in business, and provide jobs.

As long as the focus is on short term thinking, management will fail to plan adequately. Without
good long term planning, worker efforts will be irrelevant: Total Quality Management (TQM)
cannot be a fad, as long-term forward progress should always be the ultimate goal for any
organization.

2. Emphasis on short-term profits.

Short-term thinking - the opposite of constancy of purpose - in order to stay in business, fed by
fear of the push from bankers and owners for dividends. Boosting short-term profits is easier, at
it typically involves the cutting of any expense related to the long term: training, quality
assurance management, maintenance, etc.

3. Personal review systems, or evaluation of performance, merit rating, annual review, etc.
for people in management, the effects of which are devastating.

Management by objective, on a go / no-go basis, without a method for accomplishment of the

objective, is the same thing as management by fear. The essential problem with merit systems is
that they reward results rather than process improvement-results will almost always have a lot of
system luck mixed in. 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. Instead, managers should understand that the best
way to develop cooperation is by focusing on the nature of work environment, not monetary
rewards.
4. Mobility of management: job-hopping

The simplest and yet one of the most deadly of quality systems management diseases,
management mobility (or when top management changes organizations every 3-4 years) means
continuous improvement efforts will be broken and disjointed as new leaders come on board.
With changes in leadership, there is a change in management philosophy. Managers who have an
eye on the next promotion want results - now - to gain the next rung on the ladder.

5. Use of visible figures only for management, with little or no consideration of figures that are
unknown or unknowable. Some facts are simply unknowable. Knowing this, Deming insisted
that leaders must still make decisions and manage a situation. This leads to a basic dilemma-how
do you know what would have happened if you had kept on your prior course?

How do you put a dollar value on the customer loyalty won through quality improvement
efforts?

You can't, because these numbers are unknowable-and this must be taken into consideration.

6. Excessive medical costs.

For the economy as a whole, health care as a percentage of overall expenditures has steadily
risen for decades, which gradually pushes numerous businesses into a state of crisis. Potentially
the only remedy for this disease would be a political system attempting to reform health care.

7. Excessive costs of liability.

W. Edwards Deming blamed America's lawyers in part for the problems of American business.
The US has more lawyers per capita than any other country in the world, and they spend much of
their professional time finding people to sue. Like health care costs in No. 6, Deming believed
the remedy to this disease will probably have to come from the government.
 Definition of Deming Cycle, PDCA:
The Deming Cycle, or PDCA Cycle (also known as PDSA Cycle), is a continuous quality
improvement model consisting out of a logical sequence of four repetitive steps for continuous
improvement and learning: Plan, Do, Check (Study) and Act. The PDSA cycle (or PDCA) is also
known as the Deming Cycle, the Deming wheel of continuous improvement spiral. Its origin can
be traced back to the eminent statistics expert Mr. Walter A. Shewart, in the 1920s. He
introduced the concept of PLAN, DO and SEE. The late Total Quality Management (TQM) guru
and renowned statistician Edward W. Deming modified the SHEWART cycle as: PLAN, DO,
STUDY, and ACT.

Along with the other well-known American quality guru-J.M. Juran, Deming went to Japan as
part of the occupation forces of the allies after World War II. Deming taught a lot of Quality
Improvement methods to the Japanese, including the usage of statistics and the PLAN, DO,
STUDY, ACT cycle.

The Deming cycle or PDSA cycle:

 PLAN: plan ahead for change. Analyze and predict the results.

 DO: execute the plan, taking small steps in controlled circumstances.

 STUDY: check, study the results.

 ACT: take action to standardize or improve the process.

Benefits of the PDSA cycle:

 Daily routine management-for the individual and/or the team

 Problem-solving process

 Project management

 Continuous development

 Vendor development

 Human resources development

 New product development

 Process trials
 DEMINGS TROANGLE (3 AXIOMS OF TQM)
The essential elements of TQM as a process-oriented approach can be represented by only three
main principles.

(i) Commitment (to never ending quality improvement & innovation).

(ii) Scientific knowledge (of the proper tools and techniques for the ‘technical change’).

(iii) Involvement (all in one team for the social change).

Also called the axioms of TQM, the above three fundamental characteristics are of equal
significance and hence can be represented at the corners of an equilateral triangle (also called
Joiner’s Triangle).

With the help of these cornerstones, the realization of the TQM culture is possible. The

interdependence of these cornerstones makes it easy to characterize the TQM

environment fully, as well as to define it clearly.

Commitment

When TQM is being practiced within the organization, the aim of organization is to be the best in
its kind. For this it needs a change in attitudes and culture, something that is impossible unless
there is a real commitment to quality and innovation from the senior management. The
management must regard the workforce as an asset and must be willing to invest in the future
development of workforce. However the commitment should not be restricted in the form of
slogans and meetings only. Slogans demanding quality from everyone are not likely to achieve
anything but frustration, anxiety and isolation. Some of the ways to motivate the workforce
include :

o proper working conditions,

o adequate education and training, good communication and cooperation,
o modern leadership rather than strict supervision,
o good incoming material and equipment, appropriate quality tool, and
o job satisfaction and incentives to workforce for good work.

Senior managers should be the ones to plan, initiate and coordinate the quality improvement
process and keep up the momentum when enthusiasm dies down. Thus, a management
commitment to continually improving the quality of products and service is an obvious necessity.

Scientific Knowledge
The best way forward for improving processes is use of scientific approach, not opinion or
emotion. A proper scientific approach helps managers focus their attention on individuals and
take decisions based on facts unlike conventional wisdom. Scientific procedures like statistical
methods help exploit information generated by processes and are used to anticipate, identify and
correct mistakes.

The main advantages of scientific knowledge are as follows:

(i) It provides a common language, which can facilitate communication between the different
departments and between different individuals.

(ii) Scientific knowledge helps employees in owning the responsibility for quality and certain
quality problems as they arise.

The role of TQM quality department should be that of co-ordination, education and support of
scientific quality tools throughout the organization. Additional duties should include continuous
research and development of innovative methods or further development of existing ones.

Involvement

This cornerstone is concerned with the social change of feeling that all are part of one team in the
organization. The capacity of problem solving increases many times when there is a common
effort. Due to synergy, the output of the group is much more than the individual output of its
members. Employees will contribute and innovate if they know that genuine effort will always
be successful in their endeavors; this is because teamwork provides a strong capacity to absorb
occasional failures. The team spirit efforts should extend outside the company, to include the
subcontractors and suppliers.