Deming has provided a framework for intuitional training and leadership to develop teams that are focused on continual improvement and reducing variability. He finishes his last two points with exceedingly important notes regarding supplier development and organization transformation.  

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.

Every local OEM has a supplier development team that is focused on getting their suppliers to meet internally and sometimes poorly defined requirements. Suppliers are cautious with their investments as the work may quickly disappear due to competitors’ undercut prices. If OEM quality, supplier development and production departments are not working together to identify key suppliers, they will undercut the market and drive quality out of their system. Suppliers that are insecure in their future may not invest in the newest technology, training or improvement efforts. Manufacturers must work directly with the supplier and explain the true production and customer requirements.  

Put everybody in the organization to work to accomplish the transformations. The transformation is everybody’s job.

In his final point, Deming pushes management to get involved in the transformation of their companies with the use of the Plan. – Do. – Check. – Act. Cycle. Management must provide the vision, the training, the team atmosphere, eliminate fear and the support for continual improvement efforts while workers must be engaged and supportive in their involvement. Workers and management cannot independently make the change. They must work in tandem to transform their businesses for sustainability and job security. Visit the Ledge Blog for more articles on continual improvement, with a focus on ISO Standards and Quality Management, as well as, the previous articles focusing on Deming’s 14 Points in Small Manufacturing.

In need of assistance with developing your Continual Improvement Plan or Quality Management System? Contact Ledge today for assistance.