Class,
The example violates the concepts of Profound Knowledge and the 14 Points by first making the decision purely by cost. "Deming recognized that the direct costs associated with poor quality materials exceed the cost "savings" perceived by purchasing" ( Evans and Lindsay,2014). In this example, the travel department buys a cheaper fare for which the executive spent an entire day flying from city to city changing planes several times. The executive's time is a valuable resource for the company. The savings on the airfare do not outweigh one day of the executive's salary. Moreover, it violates the point number five. Improvements are necessary for both design and operations (p.52). Improvements in processes mean engaging all employees to
The example violates the concepts of Profound Knowledge and the 14 Points by first making the decision purely by cost. "Deming recognized that the direct costs associated with poor quality materials exceed the cost "savings" perceived by purchasing" ( Evans and Lindsay,2014). In this example, the travel department buys a cheaper fare for which the executive spent an entire day flying from city to city changing planes several times. The executive's time is a valuable resource for the company. The savings on the airfare do not outweigh one day of the executive's salary. Moreover, it violates the point number five. Improvements are necessary for both design and operations (p.52). Improvements in processes mean engaging all employees to