Deming vs. Hammer: Quality or Processes?

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Who guided the company’s revolutionary breakthrough? Who enabled the enterprise to achieve self-transcendence? What effective theoretical efforts were made by Deming, who applied statistical principles to quality management, and Hammer, who applied computer-based information processing models to business process reengineering? What is the relevance and significance of their theory for today’s Chinese enterprises? Introduction: Summary of Deming’s 14 points: Direction, system, and culture. Have a clear direction, then establish a system to drive behavior, and use the corresponding culture to ensure better operation of the system. Deming: Quality is king. When Toyota’s president received Japan’s highest management award—the Deming Prize—he was in tears, saying, “There isn’t a single day on which I don’t think about the significance of Dr. Deming for Toyota!” ”In the 1950s, Japan discovered William Edward Deming and conquered the world with \"Made in Japan\" under total quality management. The core of Deming’s management philosophy are the 14 points for improving management productivity. Deming believed that by reducing the uncertainties in design and production to improve product quality and productivity, and by entering the market with high-quality products at low prices, companies could achieve sustainable development. Furthermore, organizations should not be constrained by their past culture; they need to undergo radical reforms in order to comprehensively improve product quality. Based on this, the “14 Points of Deming” became an important theoretical foundation for total quality management, and it also played a role in promoting the development of ISO9000. Regarding specific improvements in quality, Deming proposed the PDCA cycle (also known as the “Deming Cycle”): Plan, Do, Check, Act. This cycle has no end; it repeats over and over again. The entire enterprise is the large ring, while the various departments are the smaller rings; the large ring encloses the smaller ones, rotating continuously and moving upward in a spiral pattern. Although many people raise objections to one or another point of the “14 Points of Deming,” the authority of Deming’s quality management philosophy remains unshakable. He stated that quantitative management is the true form of scientific management, but in practice it is important to be careful not to make quantity the sole criterion. “Point 10 among Deming’s “14 Points” states, “Don’t set various motivational slogans and goals for workers,” which is highly relevant in today’s context. Many companies these days are focused only on problems; there are countless tasks that need to be done, yet they turn a blind eye to them. They shout about striving for zero defects and about customers being god, but such an approach lacks reflection: zero defects can never be achieved, and everyone knows this is just a slogan, so no one makes an effort in that direction ； God doesn’t eat or drink; He is intangible, and saying “the customer is king” is hypocritical. In recent years, state-owned enterprises have been busy with restructuring, and due to the short-term thinking of many managers, their quality management is even worse than that of private enterprises. Chinese entrepreneurs hold a misconception: total quality management is outdated, and we are now in the era of ISO 9000 certification. This is completely wrong. ISO9000 is a documentation procedure standard; implementing it requires thorough work as well as the use of specific tools from total quality management. China has seen many companies obtain certifications over the years, but how many of them actually follow the ISO9000 documentation procedures and standards? A once-effective total quality management system has failed in China; the reputation of ISO9000 is also declining, and it is on the verge of failure as well. Over a year ago, the Certification and Inspection Committee revoked the qualifications of 6 certification bodies. Based on this, the following recommendation is put forward: Chinese enterprises should earnestly advance total quality management. ISO9000 is a good thing, but the procedural standards must be implemented. Six Sigma is not contradictory to this either; after implementing Total Quality Management, a solid foundation can be laid for Six Sigma management. The 21st century is the century of quality; entrepreneurs must avoid being impetuous or setting unattainable goals, and should not be eager to find some miracle solution. As one engineer at Ford Motor Company put it, “Deming understood that quality management is not something that can be achieved instantly, like turning on a faucet.” It is a culture, a way of life for a company. ”This is exactly what people need to keep in mind. Introduction: Process Reengineering: A fundamental rethinking and thorough reform of work processes in order to achieve dramatic improvements in key modern business performance criteria such as cost, quality, service, and speed. Hammer: Process First Michael Hammer sparked a wave of process reengineering around the world; it is said that by 1995, the total value of consulting services related to corporate reengineering amounted to 50 billion dollars. The classic example is IBM. Through process reengineering, it managed to have one generalist replace multiple specialists, thereby reducing workloads by 90%. In “Reinventing the Corporation,” Hammer and Champy point out that the United States has experimented with methods such as management by objectives, Theory Z, and the pursuit of excellence, but without exception, none of these approaches have led to a significant boost in the country’s economic competitiveness. Therefore, in the new business operating environment, existing business processes should be transformed to adapt to future survival and development. The steps of process reengineering include four points. First, establish a management team for restructuring and ensure adequate support in terms of human resources. Second, fully understand the existing process, analyze its functional deficiencies, the importance of each stage in the process, and the feasibility of process design. Third, use brainstorming and reverse thinking to design top-tier process improvement plans. Fourth, systematization of business reengineering plans. There is almost a consensus in the field of world management theory that business process reengineering is suitable for three types of companies: those facing crises ； Companies with latent crises ； Companies that seek to gain an absolute advantage in the next round of competition. Zhou Weizhong explained Hammer’s revolutionarity as follows. First, Hammer introduced the concept of business processes, arguing that the core of process reengineering is not \"reengineering\" itself, but rather the \"processes\". Secondly, thoroughly reevaluate the previous management theory framework and completely reengineer it based on business processes. Once again, emphasize integrity. Modern management originated from Adam Smith’s concepts of labor division and specialization of personnel. As the opposite of \"division of labor,\" Hammer’s concept of \"combined work\" requires employees and managers to possess multiple skills. Finally, Hammer emphasized systematic thinking. He combined information technology with management, applied holistic thinking to business processes, focused on the interests of customers, and took into account those of stakeholders such as employees and shareholders. “The “change from scratch, redesign” process reengineering approach also has a market in China. Zhou Weizhong gave the example that Haier’s value chain management is essentially a model of business reengineering processes. Before 2000, Haier’s website featured an organizational chart; by 2001, it was replaced with a value chain. Changing traditions is difficult; there will be an instinctive resistance, moving from a sense of security to discomfort, but one should not give up because of that. He believes that Chinese companies apply process reengineering mainly at two levels – at the industry level, it can address issues left over from the planned economy, such as redundant investment ； At the corporate level, it is possible to flatten the organizational structure and shorten processes as much as possible. Regarding the limitations, Zhou Weizhong believes they are mainly reflected in the following aspects: high investment in process reengineering and significant risks ； Due to limitations in corporate development, the main issue to address is excessive specialization; in many Chinese companies, however, the primary problems are unclear responsibilities and lack of detailed division of labor. If process reengineering is to be implemented, these two issues must be addressed, and the difficulty involved can be imagined. Another very important issue is that process reengineering cannot solve all problems; it can only enhance a company’s competitiveness to a certain extent. Like all management philosophies, only by grasping their essence can they be applied flexibly. Zhou Weizhong said: The essence of Hammer’s process reengineering lies in two main aspects: first, systematic thinking. In the reform of state-owned enterprises, it is not sufficient to merely adjust the equity structure when it is unreasonable, nor is it enough to only change the wage structure when the compensation system is flawed. “\"Treating symptoms directly\" often leads to \"general discomfort throughout the body.\" Secondly, conceptual innovation. One cannot walk the same old path in new shoes. For example, it was quite puzzling when state-owned enterprises recently opened recruitment for deputy general managers both domestically and internationally – why not recruit general managers instead? The concern over asset loss is understandable, but this issue can be controlled through corporate governance. Carlos Ghosn, a Brazilian from the French company Renault, was able to bring about dramatic changes at Nissan because he served as its CEO with real power and without many cultural barriers.