History of Management
In the aftermath of World War II, American industry loaded with success, did not want to listen to Dr Edward Deming’s quality philosophy. In 1950, he was sent to shatter postwar Japan by the MacArthur Government–as an adviser to the Japanese census. While he was there he met some of the members of JUSU (The Union of Japanese Scientists and Engineers) with the intention of helping them to rebuild their industry.
He spoke to some of the Japanese senior managers about his quality philosophy (Aguayo, 1990) He told them that most of their organizations’ problems lay in the process used in getting things done and suggested statistical information and process control to trace the errors back to their sources. At the same time Dr Joseph Juran was also stressing to the Japanese the customers’ point of view of a product’s fitness for use, and was advocating extensive training and hands-on management to satisfy customers’ requirements (Walton, 1986). The Japanese industrialists listened to Drs Deming and Juran and reamed from their teaching.
The result was that they captured markets all over the world. Within mere months productivity increases were being reported in Japan, within years such increases were commonplace. The Japanese miracle had been truly launched. Today, Japanese companies are not just competitive but they are dominating the world market and true to Dr Deming’s prediction the rest of the world is seeking protection from them. It is common knowledge that the first industrial revolution has encouraged mass production and as a result many of the individual skills and craftsmanship were destroyed.
The attitude of the managers and workers was also changed from ‘quality’ to ‘quantity at high speed’ involving only limited specialized type of work. This change in attitude took away both the incentive and pride for workers to take responsibility for the quality of their work. To compensate for the individual’s pride of quality work organizations began to appoint quality inspectors to weed out defective goods from the mass production in order to provide the customers with acceptable quality products (Imai, 1986)
However, the quality inspectors did not have any involvement in stopping defective goods at the early stage and therefore had no influence in cost-cutting exercises. In fact quality inspection has encouraged people to expect defective articles and in turn has created a ‘hide-out’ for those escaped defective goods. Nevertheless, the present process of the total quality management guided by Deming and others has brought about the quality revolution of ‘prevention rather than detection’ creating the Second Industrial Revolution to equip the organization for survival in the world market.
In 1970, the oil crisis forced Japan to eliminate waste in the use of all resources as a matter of survival. This involved the consideration of all organization personnel to work towards one common objective. In the true sense then total quality management was launched providing an ultimate way of quality thinking shared by everybody in the organization. So, what are these quality philosophies of Deming which have given birth to the ‘Total Quality Management’ and have created the ‘Second Industrial Revolution’?
They are the following list of 14 points for management: (see Deming, 1986; Neave, 1987). (1) Constancy of purpose. Create constancy of purpose for continual improvement of product and service; (2) The new philosophy. Adopt the new philosophy. We are in a new economic age, created in Japan; (3) Cease dependence on inspection. Eliminate the need for mass inspection as a way to achieve quality; (4) End ‘lowest tender’ contracts. End the practice of awarding business solely on the basis of price tag; (5) Improve every process.
Improve constantly and forever every process for planning, production and service; (6) Institute training on the job. Institute modern methods of training on the job; (7) Institute leadership. Adopt and institute leadership aimed at helping people and machines to do a better job; (8) Drive out fear. Encourage effective two-way communication and other means to drive out fear throughout the organization; (9) Break down barriers. Break down barriers between department and staff areas; (10) Eliminate exhortations.
Eliminate the use of slogans, posters and exhortations; (11) Eliminate targets. Eliminate work standards that prescribe numerical quotas for the workface and numerical goals for people in management; (12) Permit pride of workmanship. Remove the barriers that rob hourly workers, and people in management, of the right to pride of workmanship; (13) Encourage education. Institute a vigorous program of education and encourage self-improvement for everyone and (14) Top management commitment. Clearly define top management’s permanent commitment to ever-improving quality and productivity.