Thursday, April 22, 2010

Introduction to Innovation, Efficiency and Waste Reduction (Aka: "Methods for Management of Quality & Productivity" -- A NEVER ENDING PROCESS)

Coming up, notes taken from an actual Deming four-day seminar presented by Ford Automobile in 1991 that my article, "Interpreting Deming's 14 Points" was based on.

As you read this material, I'm sure most of you will be able to apply it to your own personal and professional situations you encounter throughout your day. The material is designed to unleash your creative, innovative spirit at the management level.

INNOVATIVE QUOTES:

"No one can possibly achieve any real and lasting success or get rich in business by being a conformist." - J. Paul Getty (They named a big museum after him!)

"We did no market research, we had no sales forecasts, no return-on-investment calculations. I very simply built my dream car and figured that there would be other people who share my dream." - Dr. Porsche (They named a fancy car after him!)

"Innovators are the risk takers and problem solvers who have introduced the improvements that allow us to progress// Innovators welcome change rather than try to resist it. They learn to make change work for them rather than against them. Use innovation to improve the quality of your life, no matter what you want to do in the future." - Dr. Denis Waitley

DEMING SEMINAR NOTES:

There is nothing worse than bad competition. Consumers attribute bad characteristics to all competitors of the industry. Also, bad habits are picked up by competitors that are not in the best interest of the industry, and everybody loses (customer and business).

The quality of your product and service (constituent/customer satisfaction) can be predicted by how happy and satisfied your employees/staff are.

Customers/Constituents judge quality/constituent satisfaction by their standards, not yours.

Have departments/staff work together at all stages of research, design, production and sales. Everyone must work in a cooperative, not competitive effort. (How many times have projects have to be sent back because one party wasn't talking with the other during the process?)

Q: What is the biggest producer of waste in American industry?

A: The present style of American management. Although these loses cannot be measured or evaluated, these are the losses that must be managed.

A change in direction is not a sign of a "wrong decision". A pilot makes frequent changes in course during flight based on traffic (competition) and weather (market conditions). A change in conditions requires a change in course.

Quality starts in the boardroom/chambers, for these are the councilmembers/media/leaders who possess the persuasive power to create change. It must start at the top.

Institute a vigorous program of education and self-improvement. Just as we reinvest in other resources, we must reinvest in a company's most important asset -- its people!

L.A. City Example: DWP crew shows up to trim tree with cherry pickers and big trucks and multi-person crew. A car was parked, legally, and they couldn't do the job because they failed to post a 72 hour notice, which would have allowed them to tow any car still parked there. But it most likely would NOT have been parked under the tree they needed to work on, since the sign would have posted. (Departments have to work together. And a flow chart needs to be created to map out the process.) BOTTOM LINE: Crew had to leave without doing the work, only to have to show up another time. DOUBLE COST, DOUBLE EFFORT! MEGA-WASTE!

"Unemployment is not inevitable , it's a sign of bad management." - Dr. W. Edwards Deming (Sorry, Antonio. Ask Austin about Ed.)

ENTIRE ARTICLE - "Interpreting Deming's 14 Points" (click here): "Very well done." - Dr. Ed Deming (READ IT, AND WE'LL TAKE IT FROM THERE!)

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