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Added for You - How To Use W Edwards Deming
One of the easiest and simplest parts of analyzing a business -- that is always made difficult, even by the Harvard Business School wizards -- is valuing the equipment of a business you are wanting to buy.However, if you do it my way (not generally taught in the business schools) this is extremely simple, won't cost you a penny and will actually make running your business easier in the long run.But before I reveal my secret, just know (in case this is all new to you) that if you ask four different people in the industry how t
We can take a digital picture that looks great but when we blow it up we start to discover its limitations.
By trying to try to define complex systems in this way we are building in errors that become evident in the variation we encounter and are magnified massively whenever one complex system encounters another.
The second approach is the analogue approach.
In nature the interaction of complex systems
A large grocery store opened a new outlet in my neighborhood. A small basket of red apples sits by the cash register. The sign in the basket reads:‘Free apple if our staff at check-out did not greet you and say thank you.’But the apple basket stays full. Not because the check-out staff are always smiling (trust me), but because the act of taking an apple is tantamount to ‘catching the staff doing something wrong’! Who wants to irritate grocery check-out staff when they’re ringing up your order?To get the impact the store really
We have since learned the impossibility of defining natural events in a digital way.
When we ignore the complexity and allow people to get on with what they want to do by removing the barriers to their performance, their performance becomes extraordinary.
I have been trying to discover why there is so much resistance to what is essentially some very basic philosophy.
Demings early work on statistics and quality was built around an ability to analyse complex systems and the use of that analysis to predict complex outcomes.
Deming was a statistician and his work very soon leaves the basic philosophy and becomes bogged in the complex use of numbers to define complex systems.
The very complexity of his approach deters many students but there is a more fundamental problem with complex systems that was identified by the later work on chaos.
There seems to be two approaches to the world.
There is the modern Digital approach where every action and interaction is controlled at the microscopic level by single bites of information.
Below this level it is not possible to go because a single bite of information is not divisible.
But we know from chaos theory that below the level of that single bite of information there is a whole world of complexity that has huge and unpredictable outcomes.
The flaws occur when we begin to realise the limitations of the start point digital data.
When the weather centre at Bracknell decided to tighten up its long range forecasting ability with the purchase of their first computers the reaction of the computers was completely unexpected.
The computers told the forecasters that they should stop issuing long range forecasts because the probability of a correct forecast was no better than chance.
Natural events are far more complex than a digital approach can ever define.
We can take a digital picture that looks great but when we blow it up we start to discover its limitations.
By trying to try to define complex systems in this way we are building in errors that become evident in the variation we encounter and are magnified massively whenever one complex system encounters another.
The second approach is the analogue approach.
In nature the interaction of complex systems
We all try to do things right. No business sets out to do wrong when servicing customers. But life is full of unexpected moments and, inevitably, mistakes do happen.While many people in business focus on doing things right the first time, very few seem to take a powerful interest in setting things right when things do go wrong. In those moments, a passion for ‘zero defects’ often gives way to ‘Let’s get this mess cleaned up fast and pretend it never happened.’Because of this attitude, businesses miss an important opportunity to build c
Demings early work on statistics and quality was built around an ability to analyse complex systems and the use of that analysis to predict complex outcomes.
Deming was a statistician and his work very soon leaves the basic philosophy and becomes bogged in the complex use of numbers to define complex systems.
The very complexity of his approach deters many students but there is a more fundamental problem with complex systems that was identified by the later work on chaos.
There seems to be two approaches to the world.
There is the modern Digital approach where every action and interaction is controlled at the microscopic level by single bites of information.
Below this level it is not possible to go because a single bite of information is not divisible.
But we know from chaos theory that below the level of that single bite of information there is a whole world of complexity that has huge and unpredictable outcomes.
The flaws occur when we begin to realise the limitations of the start point digital data.
When the weather centre at Bracknell decided to tighten up its long range forecasting ability with the purchase of their first computers the reaction of the computers was completely unexpected.
The computers told the forecasters that they should stop issuing long range forecasts because the probability of a correct forecast was no better than chance.
Natural events are far more complex than a digital approach can ever define.
We can take a digital picture that looks great but when we blow it up we start to discover its limitations.
By trying to try to define complex systems in this way we are building in errors that become evident in the variation we encounter and are magnified massively whenever one complex system encounters another.
The second approach is the analogue approach.
In nature the interaction of complex systems
Q: What makes branding unique for business-to-business companies and is it as important for them as branding is for consumer product companies?If your business provides products and services to other businesses, you can achieve the benefits of a strong brand identity in customer loyalty, buying preferences, and referrals to other customers. However, the relationship with your customer is far more complex than when compared with consumer product relationships. Business to business service companies must go above and beyond just satisfying t
There seems to be two approaches to the world.
There is the modern Digital approach where every action and interaction is controlled at the microscopic level by single bites of information.
Below this level it is not possible to go because a single bite of information is not divisible.
But we know from chaos theory that below the level of that single bite of information there is a whole world of complexity that has huge and unpredictable outcomes.
The flaws occur when we begin to realise the limitations of the start point digital data.
When the weather centre at Bracknell decided to tighten up its long range forecasting ability with the purchase of their first computers the reaction of the computers was completely unexpected.
The computers told the forecasters that they should stop issuing long range forecasts because the probability of a correct forecast was no better than chance.
Natural events are far more complex than a digital approach can ever define.
We can take a digital picture that looks great but when we blow it up we start to discover its limitations.
By trying to try to define complex systems in this way we are building in errors that become evident in the variation we encounter and are magnified massively whenever one complex system encounters another.
The second approach is the analogue approach.
In nature the interaction of complex systems
The car wash industry is having problems due to increased labor costs. Right now it seems as if the average amount paid per hour to the workers is $6.50 per hour just to start and the average wage across United States for car washes is $7.10 per hour of course also understand that these employees also get tips from the customers. And therefore some of these carwash employees especially those who are drying the cars off are making well over $10 per hour. That is a pretty good job for that basic labor.One of the reasons for the higher startin
The flaws occur when we begin to realise the limitations of the start point digital data.
When the weather centre at Bracknell decided to tighten up its long range forecasting ability with the purchase of their first computers the reaction of the computers was completely unexpected.
The computers told the forecasters that they should stop issuing long range forecasts because the probability of a correct forecast was no better than chance.
Natural events are far more complex than a digital approach can ever define.
We can take a digital picture that looks great but when we blow it up we start to discover its limitations.
By trying to try to define complex systems in this way we are building in errors that become evident in the variation we encounter and are magnified massively whenever one complex system encounters another.
The second approach is the analogue approach.
In nature the interaction of complex systems
Your business is rolling. Your products are getting to your customers on time. Everything is working just the way you promised it would. Your customers pay their bills on time. No complaints. The bond between you and your customers could not be stronger.Then something happens. (You knew it would, right?)Trouble can come from any direction. A delayed product shipment causes a customer to miss a deadline. A salesperson (maybe even you!) promises more than your company could deliver. A customer finds a defect in one of your produ
We can take a digital picture that looks great but when we blow it up we start to discover its limitations.
By trying to try to define complex systems in this way we are building in errors that become evident in the variation we encounter and are magnified massively whenever one complex system encounters another.
The second approach is the analogue approach.
In nature the interaction of complex systems occurs all of the time without any trouble at all because when a wave hits a beach what happens, just happens.
If we try to define what happens to the wave or the beach in a digital way we will probably end up concluding that nature is at fault.
The digital approach to managing process’s and operations will always have the same built in errors when it contains these complex natural components.
The component that causes most trouble is the human operator whose actions and interactions may be the most complex on the planet.
When treated in this digital way the complexities cannot be resolved.
The human being has to be treated in natural way that instead of trying to define the complexity of the condition simply creates the environment that allows the conditions to interact and come to a natural conclusion.
In this way we avoid the impossibility of trying to define a complex system and instead concentrate on the result when the two systems combine.
Try to define sex.
What is it, what starts the thought processes that lead to it, what are the physical changes that must preceed it, how do we feel during and do we have to smoke afterwards, what about the partner, what appealing characteristics, body type, skin tone hair colour etc.
There are an enormous number of questions before we can define the act in a digital/analytical way and an even bigger number of answers to those questions.
The complexity of the analysis puts us off the act.
If we appreciate the possibility of the act then we just have to create the right environment for the act to take place and ignore the complexities because it is what people want to do.
In the same way, if we assume that people want to be able to do a good job we simply have to create the environment that allows them to do a good job.
As Deming said, “Remove the barriers that stop people from being as good as they can
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