Replying to LO25834 --
I only believe based on reading Senge that he started from the work of
Deming , I can not support that other than his work adds very little to
Deming,s ideas. I have not spoken to Senge or seen a quote.
The 11/4% improvement has been met by two local companies Milwaukee
Electric Tool and West Bend Appliance. They have sustained it for 10
years. Toyota has done that also and sustained it for 40 years. An Arthur
Andersen study confirmed it and I have read it on several occasions in
Magazines but I do not have a ready reference. They measure productivity
in sales per employee.
I lifted the following from a presentation I use when starting a new
client.
CHANGE IN MANAGEMENT METHODS IS ESSENTIAL.
The best-managed companies in the world and their followers have made
quantum leaps with the new approach to management. The new methods totally
obsolete traditional management methods and priorities. The best are
continuing to get better with productivity improving at rates more than
15% per year in quality and cost.
These management methods, pioneered by Deming perfected by Ohno and built
on by Senge as well as others who saw quality and cost optimized at the
same point in the processes, are spreading to organizations in all parts
of the world. This makes improvement imperative because it is driving up
expectations of customers. These better management methods will eventually
come to every industry.
Survival and security depend upon developing the discipline necessary to
find, fix and improve processes that do not work exactly right. There
will be little room for those that continue to use obsolete management
techniques. Is there room for less than the best in your industry?
WHAT TO BE?
A 1994 Arthur Andersen survey points out that the best companies in the
world have common threads. These common threads are common to continuous
improvement because these companies all have historical ties to Deming and
the management principles he taught.
The common threads are:
* Total process control
* Thorough understanding of work and conformance to process
* Tight vendor relationships
* Deep understanding & intent to meet customer expectations
This done by:
* Providing top to bottom direction combined with measurements.
* Putting priorities on system effectiveness rather than unit efficiency
* Developing and encouraging the freedom to act to improve, and the
opportunity to feel good about work with education & training for everyone.
* A company culture that acknowledges the availability of information to all
and manages through understanding rather authority demanding blind
conformance. This requires a new mind set emphasizing process understanding
and control rather than decision and event control.
Eugene Taurman
interLinx
http://www.execpc.com/~ilx
Don Dwiggins wrote:
>Eugene Taurman writes:
>> I believe Senge observed these characteristics in the world class
>> companies and used these observations for investigations for his books.
>> World class companies have sustained a 1 1/4 % improvement per month for
>> over ten years. All of them I know share these characteristics and this
>> astounding rate of improvement.
>
>Can you provide a reference for this? I'd be interested to see how
>improvement was defined and measured for this purpose.
--"Eugene Taurman" <ilx@execpc.com>
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