Nearly 30 years ago, W. Edwards Deming gave us his 14 Points for Management regarding how Western management must change. His 11th point was actually two points:
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11a) Eliminate work standards (quotas) on the factory floor. Substitute leadership.
11b) Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.
It’s been obvious to most people that U.S. management has completely ignored point 11b. Management by objective is thriving very well. Companies still have objectives such as, “reduce customer complaints.” Employees find ways to hide or cover up customer complaints to meet the objective and still obtain a really high score on their performance reviews. Six Sigma has proliferated the use of management by objectives by encouraging the establishment of goals such as training 100 Black Belts (even those who will never use it), completing 100 projects (even for simple improvements), and saving a million dollars per project (while still finding a way to lose money each year). Leadership has definitely not been substituted. In fact, why lead (coach, mentor) at all when management by objective is so prevalent?
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Comments
Quotality
Good job, Mike.
The only good news for US competitiveness is that China is infected with the same disease. In my years over there I found that Point 11 was violated everywhere.
PLease reconsider
Maybe Demming was wrong. And maybe quality system professionals continuing to bash management isn't getting them anywhere.
Point #1 - Where is the outcry that ISO 9001 depends on effectiveness and efficiency of processes - by definition a numbers game? Are you willing to say that ISO got it wrong? Or does it make a better story and serve your interest to continue to play the us against them card - quality professionals against management?
Point #2 - Interesting union environment in that company you referred to - who could blame them for needing quotas when the attitude of the workers is that is they have a bad day or a good day then it's OK to slack off. I have seen this. You describe a condition that is hard to change from either side. But I know without a doubt that those employees have and will continue to resist changes and improvements. And those that blame management are not correct. Both sides had a role in letting it get this way over many years. But you can bet management is the only one who has tried to change it and the union workers have fought every step. So go ahead and keep bashing management. I think you are exploiting the us versus them mentality. And why not? It worked on me. I reacted.
Here are the comments you asked for
First, I would like for you to comment on this article in response to either of these following questions:
Does your company use quotas of any kind? If it does, describe them.
Of course my company uses production targets. They can be called quotas I guess. Each operation has a target for average production units per shift, day, etc. Of course we need to manage this because we have committed product to customers in a contract, therefore we need to monitor and measure and do what is needed to ensure we deliver what is promised on time. But, it is not a quota in a sense that the operator makes more on the days they exceed the target and less on the days they don't. There is one incentive rate for the month based on productivity that impacts pay.
Do you think the use of production quotas is prevalent in U.S. businesses today?
I assume it is prevalent to the extent that businesses are focused on how much product they are making in order to ensure customer satisfaction. And their efficiency and internal prodcution cost is highly dependent on it. So of course they should have some version of a quota in place to make all aware of how important productivity is. It should be right up there with safety and quality. For the sake of the customer as well as the organization. Especially in places where employees think it is OK to "slack off" as you described above.
Are we in this together? Or are quality professionals trying to create and widen a divide that should not even exist?
Second part of 11
We have quotas. My folks dont pay much attention to them. Too many delays and components that aren't ready for them to get their machine going. When they have no delays the quotas are easily met.
Deming's point was more about the "Substitute with Leadership" part. However, it is ludicrous to think that production measurement and comparison should be ignored. Instead, use the data to lead and share with folks. "This is what we have sold to our customer." "This is where we are." Measure and fix the process.
Quotas
Leadership is the appropriate use of relationships and different tools to align organizations, help people grow, and drive results. Quotas can be appropriately used to ensure pricing structure and other items reflect practices. They aren't only used for browbeating or enabling laziness. Both quotas and objectives can be positive when used within the context of proper leadership. There is always more than one way to get things done. Commit and lead after you make good choices and your odds of success are greater. You can't look at tools as bad or wrong without some context of how they are used.
I think both objectives and quotas are tools, when appropriately used, that make sense and help with alignment and improvement. I use them, and yes, I am a certified ASQ BB. I also understand tools and concepts can be misused without proper leadership.
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