Deming In Warehousing

By Jim Schultz, Past President, MHMS Chicagoland Chapter


The late Dr. W. Edwards Deming is a name that has become synonymous with quality, and some would say an enlightened approach toward industrial management. Most notably, Dr. Deming is recognized as the guru of the resurgent Japanese manufacturing sector. Now his principles and ideas are being taught and instituted across America’s manufacturing business landscape. The following looks at “Dr. Deming’s 14 Points” and attempts to show how these ideas can be applied in any work environment, not just on the assembly line.

1. Constancy of purpose.
Short term solutions are usually short sighted. Management and workers must strive to think long term and make decisions with that concept in mind. Don’t lose sight of the forest for the trees. If your operation spends more time fire fighting than in long term planning your value system is out of whack. The work force will lack consistency and will forever be chasing the wrong objectives as part of the “flavor of the month syndrome”.
 
2. Adopt the new philosophy.
Times change; so must attitudes and operations. To be focused for the long run, companies and workers must be willing to embrace new ideas and methods. A standard for this practice is the “Rule of 10”. Businesses doing a volume of $1 M must undergo substantial change before they can do $10 M, and then must change all over again to do $100M, and so on.

3. Cease dependence on mass inspection.
Quality does not come from inspection, but from doing it right the first time. How do we insure it gets done right? We insure this through continuously improving the process, so that errors are less and less likely to happen. The “1-10-100 Rule” reminds us how costly errors are when they are not eliminated upfront. An error caught and fixed immediately costs a factor of $1. An error caught as a result of inspection costs a factor of $10 to fix, and an error caught in the field costs a factor of $100 to set right.
 
 
4. End the practice of awarding business on the basis of price tag alone.
“You get what you pay for”. It is important to develop long term relationships to insure consistency. These relationships must provide mutual benefit to both buyer and seller. The paramount reason for a purchase from a specific supplier needs to be based in the total intrinsic value of the value package that this supplier is offering with the product.

5. Improve constantly and forever.
Continuous improvement is the mother’s milk of future success. If you stand still you will get passed by. This doesn’t mean that we continually need to pick more pieces per man-hour than the month before. What it does means is that we need to be open to doing things in a new way. An example would be not picking the piece at all but sorting it on the receiving dock for direct movement to an outbound truck, or maybe just having it shipped directly to the next link in the distribution chain.

 
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