OM (with OM Online, 1 term (6 months) Printed Access Card)
OM (with OM Online, 1 term (6 months) Printed Access Card)
6th Edition
ISBN: 9781305664791
Author: David Alan Collier, James R. Evans
Publisher: Cengage Learning
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Chapter 15, Problem 1DQ
Summary Introduction

Interpretation: Importance of Deming’s two points quality needs to be discussed

Concept Introduction:Deming’s points for quality management emphasizes on the continuous improvement of organizations by introducing the concept of quality at each business function.

Expert Solution & Answer
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Explanation of Solution

Drive out Fear (in the workplace): Fear should be eliminated from the workplace so that every employee can work freely and bring positive results for the company. The performance ability of a person ceases when there is an atmosphere of fear and that fear might be of a salary cut, suspension, or demotion. The performance of employers could be increased if there will be mutual respect between them and healthy competition prevails in the company.  

Stop making decisions purely based on cost: Companies generally follow a low-cost vendor selection process in their projects but instead the company should build good and long-term relations with suppliers so that they can rely on them. With having long term relationships, vendors can put the company on priority when in need. However, the low cost does not guarantee the product quality which can lead to loss of goodwill and customers due to decreasing product quality. 

However, Deming’s 14 points of quality management are equally applicable to the organizations today.

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