The New Economics for Industry, Government, Education by W. Edwards Deming

Author:W. Edwards Deming [Deming, W.]
Language: eng
Format: epub
Tags: Deming management method; 14 Points for Management; System of Profound Knowledge; SOPK; management; quality; productivity; Out of the Crisis
Publisher: MIT Press
Published: 2018-10-25T00:00:00+00:00

Results

Day 1. The first day is a disappointment to the foreman (see the chart, Fig. 19, p. 112). He reminds the Willing Workers that their job is to make white beads, not red ones.

Figure 19 Data produced by the experiment (Quality Enhancement Seminars, Newport Beach, 16 January 1991); calculation of the control limits; results plotted on the chart (right side); interpretation of the chart. Comparison with a previous experiment (left side of chart) in Nashville, 14 November 1990.

He thought that he had made this clear at the outset.

We are on the merit system here. We reward good performance. It is obvious that David, with only 4 red beads, deserves a merit increase in pay. There are the figures right in front of everybody. He is our best worker.

And look at Tim, our worst performer, 14 red beads. We all like him, but we must put him on probation.

The foreman announces that the management have declared a numerical goal—not more than three red beads in a work load.

Day 2. The second day is another disappointment, worse than the day before. The management are watching the figures. Costs are overrunning revenues. I explained at the outset that your jobs are dependent on your own performance. Your performance has been deplorable. Look at the figures. If David can make only 4 red beads on Day 1, anybody can.

The foreman is perplexed. Our procedures are rigid. Why should there be variation?

Look at David. That merit raise in pay, that raise that we gave him yesterday, obviously went to his head. He became careless, and made 11 red beads the second day.

It is obvious that Larry began to pay attention to business, 7 red beads, down from 12 the first day. He has earned this day a merit increase in pay, our best worker.

Day 3. Posters and bulletins announce that the third day will be a Zero Defect Day. Much fanfare: hire a band, raise the national flag alongside the company’s flag; a wine and cheese party the evening before.

The foreman is disappointed and desperate. The Zero Defect Day shows no improvement.

The foreman reminds the Willing Workers that the management are watching the figures, costs are overrunning revenues. The management has served notice: unless the fourth day shows substantial improvement over previous performance, the management will close the place down. Your jobs are your own responsibility, entirely up to you, as I told you at the outset.

Day 4. The fourth day shows no improvement, more disappointment. But the foreman announces good news. Someone in our management—our own management—came forth with a fantastic plan: keep the place open with the best workers. Think of it! Fantastic, and from our own management. A contribution to management the world over, for all time. You are very proud of our management, I am sure; our own management.

The three best workers are obviously Scott, Spencer, Larry. They will work two shifts every day: we must keep up production. The other three may pick up their pay. They did their best. We are all indebted to them.

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