Deming's 14 points

1-Create constancy of purpose toward improvement of product and service, with the aim to
become competitive and to stay in business, and to provide jobs (create vision and commitment).
2-Adopt/learn the new philosophy. We are in a new economic age. Western management must
awaken to the challenge must learn their responsibilities, and take on leadership for 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. (worker must take responsibility for
their work understand variation & seek to reduce the common causes)
4-End the practice of 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 the system of production and service, to improve quality
and productivity, and thus constantly decrease costs.
6-Institute training on the job (both management & workers require proper tools & knowledge).
7-Institute leadership. The job of management is leadership, not supervision leadership means
providing guidance to help employees do their job better with less effort.
8-Drive out fear. Create trust. Create a climate for innovation so that everyone may work effectively
for the company.
9-Break down barriers between departments (optimize the efforts of team).
10-Eliminate slogans, exhortations, and targets for the work force asking for zero defects and
new levels of productivity (workers become frustrated when they cannot improve or are penalized for
defects) overlook the source the problems the system.
11-a. Eliminate work standards on the factory floor (Eliminate numerical quotas for production.
Instead learn and institute methods for improvement).
b. Eliminate management by objective numbers without a method to achieve them (Instead,
learn the capabilities of processes, and how to improve them). Numbers have no meaning without a
method to achieve them.
12-Remove barriers that rob the hourly worker of his right to pride of workmanship. b.
Remove barriers that rob people in management and in engineering of their right to pride of
workmanship (Performance appraisal destroys teamwork by promoting competition).
13-Institute a vigorous program of continuing education and self-improvement.
14-Take action to accomplish the transformation. Put everybody in the company to work to
accomplish the transformation. The transformation is everyone's job. A major cultural change

The system of profound knowledge is made up of four areas:

(1) appreciation for a system,
(2) knowledge about variation,
(3) theory of knowledge, and
(4) psychology.
Appreciation of a system
A system is a set of functions or activities within an organization that work together for the aim of the
organization.
A production system is composed of many smaller, interacting subsystems.
These subsystems are linked together as internal customers and suppliers.
The components of any system must work together if the system is to be effective.
Management's job is to optimize the system.
Sub-optimization results in losses to everybody in the system.
All the people who work within a system can contribute to improvement, which will enhance their joy
in work.
Knowledge about variation
The second part of Profound Knowledge is a basic understanding of statistical theory and variation.
We see variation everywhere & variation exists in production processes.
Actually, a production process contains many sources of variation
Causes of Variation
Product manufacturing was measured and where variations occurred in manufacture the cause was
traced back to either (1) special causes or (2) common causes.
(1) Special causes are easily identifiable and solvable at a local level - for example a change in
operator, shift of procedure.
(2) A common cause is due to the design or process of the system and is the responsibility of
management to solve.

Proportion of Variation
Common causes of variation generally account for about 80 to 90 percent of the observed variation in
a production process.
The remaining 10 to 20 percent are the result of special causes of variation, often called assignable
causes.
Theory of knowledge
The third part of profound knowledge is the theory of knowledge, the branch of philosophy concerned
with the nature and scope of knowledge, its presupposition and basis, and the general reliability of
claims to knowledge
Deming emphasized that knowledge is not possible without theory, and experience alone does not
establish a theory.
Any rational plan, however simple, requires prediction concerning conditions, behavior, and
comparison of performance.
A statement devoid of prediction or explanation of past events conveys no knowledge.
Experience only describes-it cannot be tested or validated-and alone is no help in management.
Theory , on the other hand, shows a cause and effect relationship that can be used for prediction.

PSYCHOLOGY
Psychology helps us understand people,interactions between people and circumstances,
interactions between leaders and employees, and any system of management.
Much of Deming's philosophy is based on understanding human behavior and treating people fairly.
People differ from one another.
A leader must be aware of these differences and work toward optimizing everybody's abilities and
preferences.Most managers operate under the assumption that all people are alike.
However, a true leader understands that people learn in different ways and at different speeds, and
manages the system accordingly.

Concluding remark on the system of profound knowledge

A leader of transformation, and managers involved, need to learn the psychology of individuals, the
psychology of a group, the psychology of society, and the psychology of change.
Some understanding of variation
Including appreciation of a stable system, and some understanding of special causes and common
causes of variation, are essential for management of a system, including management of people.