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Saturday, October 31, 2009

MATSUSHITA'S SEVEN PRINCIPLES

1. Contribution To Society

We will conduct ourselves at all times in accordance with the Basic Management Objective ,faithfully fulfilling our responsibilities as industrialists in our community in which we operate.

2.Fairness and Honesty

We will be fair and honest in all our business dealings and in our personal conduct. No matter how talented or knowledgeable we may be, without personal integrity we can neither earn the respect of others nor enhance our own self-respect.

3.Cooperation and Team Spirit

We will pool our abilities to accomplish the goals that we share. No matter how much skilled we are, without cooperation and team spirit we will be a company in name only.

4.Untiring Effort for Improvement

We will constantly strive to improve our ability to contribute to society through our business activities. Only through such untiring effort can we fulfill our Basic Management Objective and help to realize lasting peace and prosperity.

5.Courtesy and Humility

We will be cordial and modest, always respecting the rights and needs of others in order to strengthen healthy social relationships and improve the quality of live in our community.

6.Adaptability

We will continually adapt our thinking and behavior to meet the ever-changing conditions around us,taking care to always act in harmony with nature in order to ensure progress and success in our endeavors.

7.Gratitude

We will act out of a sense of gratitude for all the benefits we have received, confident that this attitude will be a source of boundless joy and vitality, enabling us to overcome any obstacles that we encounter.

Deming's 14 Points

1-Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs (create vision and commitment).

2-Adopt/learn the new philosophy. We are in a new economic age. Western management must awaken to the challenge must learn their responsibilities, and take on leadership for change.

3-Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place. (worker must take responsibility for their work – understand variation & seek to reduce the common causes)

4-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.

5-Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.

6-Institute training on the job (both management & workers – require proper tools & knowledge).

7-Institute leadership. The job of management is leadership, not supervision – leadership means providing guidance to help employees do their job better with less effort.

8-Drive out fear. Create trust. Create a climate for innovation so that everyone may work effectively for the company.

9-Break down barriers between departments (optimize the efforts of team).

10-Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity (workers become frustrated when they cannot improve or are penalized for defects) – overlook the source the problems – the system.

11-a. Eliminate work standards on the factory floor (Eliminate numerical quotas for production. Instead learn and institute methods for improvement).

b. Eliminate management by objective – numbers without a method to achieve them (Instead, learn the capabilities of processes, and how to improve them). – Numbers have no meaning without a method to achieve them.

12-Remove barriers that rob the hourly worker of his right to pride of workmanship. b. Remove barriers that rob people in management and in engineering of their right to pride of workmanship (Performance appraisal destroys teamwork by promoting competition).

13-Institute a vigorous program of continuing education and self-improvement.

14-Take action to accomplish the transformation. Put everybody in the company to work to accomplish the transformation. The transformation is everyone's job. – A major cultural change