Transcript LIS 397.1 Introduction to Research in Library and

LIS 387.5
Systems Analysis
and Evaluation
Introduction to Concepts of
System Development and
Business-Systems Improvement
R. E. Wyllys
Copyright © 2002 by R. E. Wyllys
Last revised 2002 Sep 2
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
Course Objectives
• Understanding of the system-development cycle, and of the
analysis, design, production, implementation, and operation
phases of that cycle
• Understanding of the processes of business process
improvement and business systems improvement, and their
similarities to and differences from the system-development
cycle.
• Acquaintance with a variety of techniques used in the
development, evaluation, and reengineering of systems
• Understanding of the importance of these techniques as tools
for managers of libraries and other information systems
• Experience both in system development and in working as part
of a team, through participation in one or more system teams,
groups that work together to deal with portions of the systemdevelopment, business-process-improvement, and businesssystems-improvement processes
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LIS 387.5, Systems Analysis and Evaluation
Course Activities
• Reading the Hammer and Harrington
texts
• Lectures on systems analysis,
business-process improvement,
business-systems improvement, and
related ideas
• Group work on course project
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LIS 387.5, Systems Analysis and Evaluation
Why Study Techniques for
Coping with Large Systems?
• In the year 2002, in the beginning of a new
millennium, society must deal with the
– Increasing complexity and intensive interrelatedness of systems—both social and
technological—in all aspects of our daily lives
– Increasing amounts of information
• To which we are exposed
• Some of which we must assimilate
• Some of which we must use, manipulate, process, etc.,
in order to carry out daily activities as individuals and as
members of society
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LIS 387.5, Systems Analysis and Evaluation
History of Major Information
Explosions
• Invention of language
– 100,000-30,000 BP
• Invention of writing
– China, Egypt, Indus Valley, Mesopotamia: 5,000 BP
• Invention of printing
– China, c. 150 AD; Japan, 764 AD; Korea, 1250 AD
– Europe, 1430-1450 AD; Gutenberg Bible, 1455 AD
– Printing flowered with alphabetic rather than ideographic
languages: lower barriers to literacy?
• Invention of computers
– Charles Babbage, Britain: designed analytical engine, 1830s
– U.S. and Britain, 1937-1945; WW II development sparked by needs
in ordnance and cryptanalysis
– Commercial use of computers, 1950+
– Public release of first World-Wide Web browser, Mosaic, January
1993
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LIS 387.5, Systems Analysis and Evaluation
Levels of Information Available
to an Individual*
• Level 0: Pre-language
– 107 bits of information in a single human brain
• Level 1: Groups with language
– 109 bits in brains of a tribe
• Level 2: Societies with writing
– 1011 bits in the Alexandrian Library
• Level 3: Civilization with printing
– 1017 bits in modern world before computers
• Level 4: Civilization with computers
– 1025 bits in essentially one world-wide network
– This is 1018 (i.e., a billion billion) times as much information
as in Level 0
*From:
Robertson, D. S. The New Renaissance: Computers and the Next Level of Civilization. 1998
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LIS 387.5, Systems Analysis and Evaluation
Levels of Available Information
0
1
2
3
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LIS 387.5, Systems Analysis and Evaluation
4
Levels of Available Information
• The pictures on previous slide are misleading,
because they vastly underrepresent the increases in
available information, AI
• We need a more accurate representation
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LIS 387.5, Systems Analysis and Evaluation
Proportionally Accurate Representation
of Levels of Available Information (AI)
Let the Level 0 (pre-language) amount of AI be represented by
1 pixel: i.e., by a 0.25mm square. Then the amount of AI with
• Level 1 (language) is 102 larger than that of Level 0
– Representable by a 2.5x2.5mm (0.1x0.1in) square
• Level 2 (writing) is 102 larger than that of Level 1
– Representable by a 25x25mm (1x1in) square (thus showing that
there are about 10,000 pixels in one square inch)
• Level 3 (printing) is 106 larger than that of Level 2
– Representable by a 25x25m (82x82ft) square
• Level 4 (computers) is 108 larger than that of Level 3
– Representable by a 250x250km (155x155mi) square: e.g., a square
with corners at Austin, the east side of Houston, Waxahachie (40km
[25mi] south southwest of Dallas), and Stockman (40km [25mi]
northeast of Nacogdoches)
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LIS 387.5, Systems Analysis and Evaluation
from
The
Increase
in the
Information
Available
to an
Individual
Is Like
Going
One
Pixel
to
nearly
OneTenth
of
Texas
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LIS 387.5, Systems Analysis and Evaluation
Organized Problem Solving
• In the area of organized businessproblem solving, there have been three
main bodies of theory and practice
– System Development, also called System
Analysis, Design, and Development
– Business Process Improvement, also
called Business Re-Engineering
– Business Systems Improvement
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LIS 387.5, Systems Analysis and Evaluation
Organized Problem Solving—
Old vs. New
• System Development (SD), aka System
Analysis, Design, and Development (SADD)
– Dates from 1940s and 1950s, with historical
antecedents going back to the early 1800s
– Involves analysis, design, and implementation of
systems
– Emphasizes improvement in all details of the
system, which can lead to "suboptimization"—
improvement of parts at the expense of the whole
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LIS 387.5, Systems Analysis and Evaluation
Organized Problem Solving—
Old vs. New
• Business Process Improvement (BPI)
– Dates from late 1980s
– Emphasizes high quality of the output of
products and services, and customer
satisfaction
• By concentrating on outputs, strives to avoid
the possible danger of suboptimization
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LIS 387.5, Systems Analysis and Evaluation
Organized Problem Solving—
Old vs. New
• Business Systems Improvement (BSI)
– Dates from middle 1990s
– Retains BPI's emphasis on high quality of
the output of products and services, and
customer satisfaction
– Places new emphasis on the integration of
systems, both inside and outside the
company or institution being focused on
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LIS 387.5, Systems Analysis and Evaluation
Organized Problem Solving—
Old vs. New
• Despite minor differences, SADD, BPI, and
BSI share
– Goal of improvement
– Techniques
• Exploring the situation to ascertain the real
problem(s)
• Placing problem(s) in context of company's or
institution's overall goals
• Interviewing people who do the work and, if
possible, those who use the products or services
• Flowcharting process flows, information flows, and
decision points
• Documenting findings and recommendations
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LIS 387.5, Systems Analysis and Evaluation
System-Development Cycle
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LIS 387.5, Systems Analysis and Evaluation
System-Development Cycle
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LIS 387.5, Systems Analysis and Evaluation
System-Development Cycle
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LIS 387.5, Systems Analysis and Evaluation
System-Development Cycle
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LIS 387.5, Systems Analysis and Evaluation
An Example of the
System-Development Cycle
• System-development cycles are divided into different numbers of
steps by different writers and developers, typically from 5 to 10
steps. But all such divisions include the essential elements of
defining goals, analyzing the present situation, preparing a plan,
carrying out the plan, putting the finished system into operation,
and monitoring the finished system's operations for possible
further improvement.
• The following four slides show how the system-development
process can be applied even to something far removed from
information technology (but with the virtue of being a readily
understandable example): viz., developing a garden.
– The example is the 10-step garden-development process employed by the
Arizona-Sonora Desert Museum (ASDM), Tucson, Arizona.
– You should consider for yourself how each of the ASDM steps compares
with the 5-phase system-development cycle discussed in the preceding
slides.
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LIS 387.5, Systems Analysis and Evaluation
Designing a Garden*
*This and the next three slides are taken from: Larson, Doug. ASDM Design Process.
Sonorensis. Winter 2000; 20(1):5-9.
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LIS 387.5, Systems Analysis and Evaluation
Designing a Garden (cont'd)
• "1. Theme Selection
– "We think about our goals. . . ."
• "2. Site Analysis
– "[We] determine what 'reality factors' exist at a proposed site."
• "3. Site Selection
– "If more than one potential site . . . exists, what are the
characteristics unique to each site? We sometimes refer to these
as site opportunities and site constraints. Which site
characteristics will be most helpful in accomplishing our project
goals?"
• "4. Concept Refinement
– "The term 'concept refinement' means customizing the theme of a
proposed garden to fit the reality of our selected site. We
accomplish this by frequent referral to our site analysis notes. We
also visit the site frequently to observe and consider
contingencies."
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LIS 387.5, Systems Analysis and Evaluation
Designing a Garden (cont'd)
• "5. Preliminary Design
– "Here is the part of the design process where we take our ideas,
concepts, and potential elements and start putting them down on
paper in a way that allows others to perceive the project. . . . We
play with the relative sizes of the elements, expanding some and
reducing others, while also considering the relationships between
the elements."
• "6. Final Design
– "A detailed . . . plan is the essence of a final design. . . . It
becomes the road map from dream to reality."
• "7. Cost Estimate
– "The finished plan provides us with the information to determine
the cost of the project."
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LIS 387.5, Systems Analysis and Evaluation
Designing a Garden (cont'd)
• "8. Implementation
– "This step . . . can be summed up by saying that the construction
of a garden or landscape . . . is broken down into an efficient
sequence of tasks."
• "9. Maintenance
– "A garden is only as good as the maintenance it receives."
• "10. Design Requirements
– "As part of our maintenance procedures, we continually observe
each garden and evaluate its performance. . . . If [the garden]
starts to stray from our original plan or it starts to evolve into
something different, then we consider design refinements."
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LIS 387.5, Systems Analysis and Evaluation
Life Cycles
• Processes that take place over periods of time
tend to be viewed in terms of sequential phases
that, taken together, form a “life cycle.”
• We have been working with an example of a life
cycle, the System-Development Cycle. Its phases
can be identified by such names as Analysis,
Design, Production, Implementation, and
Operation.
• We are about to look at Business-Process
Improvement and Business-System Improvement,
both of which have similar life cycles.
• Before we look at BPI and BSI, it will be instructive
to look at a couple of other examples of the life
cycles of processes.
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LIS 387.5, Systems Analysis and Evaluation
Life Cycles:
Software Development Cycle
• Life Cycle Example: The development of computer
software is typically managed in terms of the
Software Development Cycle. An excellent
statement of the phases of the SDC has been given
by Dale, Joyce, and Weems, as follows*:
– “Problem analysis Understanding the nature of the problem
to be solved
– “Requirements elicitation Determining exactly what the
program must do
– “Software specification Specifying what the program must do
(the functional requirements) and the constraints on the
solution approach (nonfunctional requirements, such as what
language to use)
*From: Dale, N.; Joyce, D. T.; Weems, C. Object-Oriented Data
Structures Using Java. Sudbury, MA: Jones and Bartlett; 2002.
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LIS 387.5, Systems Analysis and Evaluation
Life Cycles:
Software Development Cycle
– “High- and low-level design Recording how the
program meets the requirements, from the “big picture”
overview to the detailed design
– “Implementation of the design Coding a program in a
computer language
– “Testing and verification Detecting and fixing errors and
demonstrating the correctness of the program
– “Delivery Turning over the tested program to the
customer or user . . .
– “Operation Actually using the program
– “Maintenance Making changes to fix operational errors
and to add to or modify the functions of the program”
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LIS 387.5, Systems Analysis and Evaluation
Life Cycles:
Database Development Cycle
• Another Life Cycle Example: The development of
databases is typically managed in terms of the
Database Development Cycle (DDC). The
phases of the DDC can be defined as follows*:
– “Database initial study
•
•
•
•
Analyze the company situation
Define problems and constraints
Define objectives
Define scope and boundaries
*From: Rob, P.; Coronel, C. Database Systems: Design, Implementation,
and Management. 4th ed. Cambridge, MA: Course Technology; 2000.
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LIS 387.5, Systems Analysis and Evaluation
Life Cycles:
Database Development Cycle
– “Database Design
• Create the conceptual design [i.e., model the real-world
situation]
• [Database-management system] software selection
• Create the logical design [i.e., express the model in terms of
the selected database-management system]
• Create the physical design [i.e., deal with the physical storage
and access of the data]
– “Implementation and loading
• Install the [database-management system]
• Create the database(s)
• Load or convert the data
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LIS 387.5, Systems Analysis and Evaluation
Life Cycles:
Database Development Cycle
– "Testing and evaluation
• Test the database
• Fine-tune the database
• Evaluate the database and its application programs
– "Operation
• Produce the required information flow
– "Maintenance and evolution
• Introduce changes
• Make enhancements"
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LIS 387.5, Systems Analysis and Evaluation
Life Cycles:
Summary
• We can summarize the foregoing discussion of life
cycles as follows. The development of complex,
interrelated processes aimed at solving a problem tends
to be viewed in terms of a life cycle that
– Begins with an analysis of the problem
– Continues with careful planning and designing of a solution to
the problem
– Proceeds further with the carrying out of the practical steps
involved in achieving the solution, including the testing of pieces
of the solution and of the complete, integrated solution
– Concludes with the solution being put into full operation
– May lead eventually to recognition of new difficulties and the
initiation of a new life cycle of analysis, design, and
implementation.
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LIS 387.5, Systems Analysis and Evaluation
Business Process
Improvement*
• A process is any activity or group of activities
that takes an input, adds value to it, and
provides an output to an internal or external
customer
• Organizations tend to structure themselves
vertically into sub-organizations; processes
tend to flow horizontally, and hence, to flow
across the boundaries of sub-organizations
*This
slide and the next thirteen slides in this presentation are taken from Harrington,
H. James. Business Process Improvement: The Breakthrough Strategy for Total
Quality, Productivity, and Competitiveness. New York, NY: McGraw-Hill; 1991.
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LIS 387.5, Systems Analysis and Evaluation
Business Process
Improvement
• Customers' satisfaction must be the
prime goal of businesses and
institutions
• Don't try to maximize profits
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LIS 387.5, Systems Analysis and Evaluation
BPI Rules for Bringing about Change
• The organization must believe that change is important and
valuable to its future
• There has to be a vision that paints a picture of the desired
future state that everyone sees and understands
• Existing and potential barriers must be identified and removed
• The total organization must be behind the strategy to achieve
the vision
• The leaders of the organization need to model the process and
set an example
• Training should be provided for the required new skills
• Measurement systems should be established so that results can
be quantified
• Continuous feedback should be provided to everyone
• Coaching must be provided to correct undesired behavior
• Recognition and rewards systems must be established to
effectively reinforce desired behavior
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LIS 387.5, Systems Analysis and Evaluation
Objectives of BPI
• Making processes effective—producing the
desired results
• Making processes efficient—minimizing the
resources used
• Making processes adaptable—being able to
adapt to changing customer and business
needs
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LIS 387.5, Systems Analysis and Evaluation
BPI: Characteristics of Well-Defined
and Well-Managed Processes
• They have someone who is held accountable for how well the
process performs (the process owner)
• They have well-defined boundaries (the process scope)
• They have well-defined internal interfaces and responsibilities
• They have documented procedures, work tasks, and training
requirements
• They have measurements and feedback controls close to the
point at which the activity is being performed
• They have customer-related measurements and targets
• They have known cycle times
• They have formalized change procedures
• They know how good they can be
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LIS 387.5, Systems Analysis and Evaluation
Assertions concerning BPI
• Business processes constitute a significant part of
your organizational costs
• There is a significant opportunity to improve market
share by improving your business processes
• BPI enables you to make better business decisions
and to implement them faster
• BPI helps to improve and control your operation
• BPI improves your production flow
• Business processes have been ignored in the past
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LIS 387.5, Systems Analysis and Evaluation
BPI Goal: To Ensure that the
Business Has Processes That
•
•
•
•
•
•
•
•
Eliminate errors
Minimize delays
Maximize the use of assets
Promote understanding
Are easy to use
Are customer-friendly
Are adaptable to customers' changing needs
Provide the organization with a competitive
advantage
• Reduce excess head count
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LIS 387.5, Systems Analysis and Evaluation
Five Phases of BPI
•
•
•
•
•
Phase I: Organizing for Improvement
Phase II: Understanding the Process
Phase III: Streamlining
Phase IV: Measurements and Controls
Phase V: Continuous Improvement
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LIS 387.5, Systems Analysis and Evaluation
BPI Phase I: Organizing
for Improvement
• Objective: To ensure success by building leadership,
understanding, and commitment
• Activities
–
–
–
–
–
–
–
–
–
Establish the Executive Improvement Team (EIT)
Appoint a BPI champion
Provide executive training
Develop an improvement model
Communicate goals to employees
Review business strategy and customer requirements
Select the critical processes
Appoint process owners
Select the Process Improvement Team (PIT) members
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LIS 387.5, Systems Analysis and Evaluation
BPI Phase II: Understanding
the Process
• Objective: To understand all the dimensions of the
current business process
• Activities
–
–
–
–
–
–
–
–
–
–
Define the process scope and mission
Define process boundaries
Provide team training
Develop a process overview
Define customer and business measurements and
expectations for the process
Flow-diagram the process
Collect cost, time, and value data
Perform process walkthroughs
Resolve differences
Update process documentation
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LIS 387.5, Systems Analysis and Evaluation
BPI Phase III: Streamlining
• Objective: To improve the efficiency, effectiveness,
and adaptability of the business process
• Activities
– Provide team training
– Identify improvement opportunities
•
•
•
•
•
Errors and rework
High cost
Poor quality
Long time delays
Backlog
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LIS 387.5, Systems Analysis and Evaluation
BPI Phase III: Streamlining
• Activities (cont'd)
–
–
–
–
–
–
–
–
–
–
–
Eliminate bureaucracy
Eliminate no-value-added activities
Simplify the process
Reduce process time
Error-proof the process
Upgrade equipment
Standardize
Automate
Document the process
Select the employees
Train the employees
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LIS 387.5, Systems Analysis and Evaluation
BPI Phase IV: Measurements
and Controls
• Objective: To implement a system to control
the process for ongoing improvement
• Activities
–
–
–
–
Develop in-process measurements and targets
Establish a feedback system
Audit the process periodically
Establish a poor-quality cost system
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LIS 387.5, Systems Analysis and Evaluation
BPI Phase V: Continuous
Improvement*
• Objective: To implement a continuous
improvement process
• Activities
–
–
–
–
Qualify the process
Perform periodic qualification reviews
Define and eliminate process problems
Evaluate the change impact on the business and
on customers
– Benchmark the process
– Provide advanced team training
*This is the last of the 14 slides taken from the Harrington book.
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LIS 387.5, Systems Analysis and Evaluation
Business-Systems
Improvement
• Emphasis is on systems rather than lowerlevel processes and sub-processes
• Systems are viewed as sets of interconnected
processes that must be treated as wholes
with respect to improvement (i.e., suboptimization is to be avoided)
• Continuous improvement, rather than onetime project-oriented improvement, is often
the goal
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LIS 387.5, Systems Analysis and Evaluation
Business-Systems
Improvement Life Cycle
1. Define the problem, in conjunction with management
2. Initiate work by organizing teams and setting initial tasks
and schedules
3. Analyze the situation in detail
4. Evaluate alternative solutions
5. Develop improved systems (sets of processes) and
change organization where necessary
6. Evaluate results
7. Return to Step 3 and re-enter the cycle
Note: For a light-hearted treatment of the solving of management problems, see
Management Insight - A Tale to Ponder.
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LIS 387.5, Systems Analysis and Evaluation
Related Ideas and Movements
• Closely related to SADD, BPI, and BSI
are
– The Quality Revolution of W. E. Deming
– Total Quality Management
– ISO 9000
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LIS 387.5, Systems Analysis and Evaluation
William Edwards Deming (1900-1993)
Picture from: Deming, W. E. Out of the Crisis. Cambridge, UK:
Cambridge University Press; 1982. ISBN:0-911379-01-0.
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LIS 387.5, Systems Analysis and Evaluation
Who Was Deming?
• W. Edwards Deming
– Was born in Iowa but grew up in Wyoming
– Attended a one-room grade school and a high
school of 50 students
– Graduated from the University of Wyoming in
1921as a physics major
– Earned a master's degree in mathematics and
physics from the University of Colorado in
1924
– Received his Ph.D. in mathematical physics
from Yale in 1926
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LIS 387.5, Systems Analysis and Evaluation
Who Was Deming? (cont'd)
• W. Edwards Deming
– In summers during his Ph.D. studies, worked
at the Western Electric Hawthorne plant in
Chicago (this was the factory where
industrial-engineering studies led to the
recognition of the Hawthorne Effect in 1927)
• Note: Western Electric was the Bell Telephone
System's manufacturing arm and was the
corporate ancestor of today's Lucent Corporation
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LIS 387.5, Systems Analysis and Evaluation
Who Was Deming? (cont'd)
• W. Edwards Deming
– While working for Western Electric, met
Walter A. Shewhart, the father of statistical
quality control, and became interested in
statistics
– Worked with Shewhart in developing the
theory of sequential sampling, a now
indispensable tool for maintaining quality in
manufacturing processes
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LIS 387.5, Systems Analysis and Evaluation
Who Was Deming? (cont'd)
• W. Edwards Deming
– After receiving his Ph.D., went to work as a
statistician at the U.S. Department of
Agriculture (USDA)
– During 1933-1943, headed the Department of
Mathematics and Statistics in the USDA
Graduate School, a leading center of statistical
research
– In 1939, became chief advisor on sampling to
the Bureau of the Census
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LIS 387.5, Systems Analysis and Evaluation
Who Was Deming? (cont'd)
• W. Edwards Deming
– In 1946 became an independent consultant in
statistics, specializing in applying statistical
techniques to the control of quality in
manufacturing
– As his consulting grew, expanded his practice
into other areas of the management of
manufacturing, and developed what became
his "14 Points" for good management and the
achievement of high quality in industrial output
– Published 7 books and over 170 professional
papers
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LIS 387.5, Systems Analysis and Evaluation
Who Was Deming? (cont'd)
• W. Edwards Deming
– In 1947, at the request of General
Douglas MacArthur, visited Japan to
advise on problems of rebuilding
Japanese industry
– Visited Japan again in 1950, 1951,
1952, 1955, and 1956
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LIS 387.5, Systems Analysis and Evaluation
Who Was Deming? (cont'd)
• Deming's 14 Points program for achieving
consistently high quality in output was
welcomed by Japanese industrialists as
their key to re-entering world markets.
Sony and Toyota are two examples of
once tiny companies that grew to world
leadership by using Deming's methods.
• Unfortunately, U.S. industry largely ignored
Deming's advice till the late 1970s, when
the success of his methods in Japan could
no longer be ignored.
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LIS 387.5, Systems Analysis and Evaluation
Who Was Deming? (cont'd)
"The striking thing one first notices in the
main lobby [of Toyota's headquarters in
Tokyo] is larger than life pictures of three
individuals. One is of Toyota's founder,
another of the same size is of Toyota's
current chairman, and a third, much larger,
is of W. Edwards Deming."*
*From: Aguayo, R. Dr. Deming: The American Who Taught the Japanese About Quality. New
York, NY: Simon & Schuster; 1990. ISBN:0-671-74621-9
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LIS 387.5, Systems Analysis and Evaluation
Who Was Deming? (cont'd)
"If you can't describe what you
are doing as a process, you
don't know what you are
doing."
W. Edwards Deming*
*Quoted in: Investor's Business Daily, 2000 December 28, p. A3
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LIS 387.5, Systems Analysis and Evaluation
Deming's Quality Revolution
• Focuses on attaining the highest possible
quality in products and services, as the way
to ensure long-term profitability and
institutional life
• Forms the basis of much of modern
management theory and practice, and gave
rise to Total Quality Management
• Demonstrated its value spectacularly in the
success of modern Japanese industry (e.g.,
Toyota in automobiles and Sony in
electronics)
• Is encapsulated in Deming's "14 Points" and
his "7 Deadly Diseases"
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LIS 387.5, Systems Analysis and Evaluation
Deming's "14 Points for the
Transformation of Management"*
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.
2. Adopt 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.
*From: Deming, W. E. Out of the Crisis. Cambridge, UK: Cambridge University Press; 1982.
ISBN:0-911379-01-0.
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LIS 387.5, Systems Analysis and Evaluation
Deming's "14 Points for the
Transformation of Management"
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.
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.
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LIS 387.5, Systems Analysis and Evaluation
Deming's "14 Points for the
Transformation of Management"
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.
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
Deming's "14 Points for the
Transformation of Management"
7. Institute leadership. The aim of supervision
should be to help people and machines and
gadgets to do a better job. Supervision of
management is in need of overhaul, as well as
supervision of production workers.
8. Drive out fear, so that everyone may work
effectively for the company.
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
Deming's "14 Points for the
Transformation of Management"
9. Break down barriers between departments. People
in research, design, sales, and production must work
as a team, to foresee problems of production and in
use that may be encountered with the product or
service.
10. Eliminate slogans, exhortations, and targets for
the work force asking for zero defects and new levels
of productivity. Such exhortations only create
adversarial relationships, as the bulk of the causes of
low quality and low productivity belong to the system
and thus lie beyond the power of the work force.
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
Deming's "14 Points for the
Transformation of Management"
11a. Eliminate work standards (quotas) on the
factory floor. Substitute leadership.
11b. Eliminate management by objectives.
Eliminate management by numbers, numerical
goals. Substitute leadership.
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
Deming's "14 Points for the
Transformation of Management"
12a. Remove barriers that rob the hourly workers
of their right to pride of workmanship. The
responsibility of supervisors must be changed from
sheer numbers to quality.
12b. Remove barriers that rob people in
management and in engineering of their right to
pride of workmanship. This means, inter alia,
abolishment of the annual review or merit rating
and of management by objective.
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
Deming's "14 Points for the
Transformation of Management"
13. Institute a vigorous program of education and
self-improvement.
14. Put everybody in the company to work to
accomplish the transformation. The transformation
is everybody's job.
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
Deming's "7 Deadly
Diseases of Management"
• In addition to his "14 Points for the
Transformation of Management,"
Deming also discussed what he called
the "7 Deadly Diseases" that impede
the needed transformation of
management.
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
Deming's "7 Deadly
Diseases of Management"*
1. Lack of Constancy of Purpose. Much of
American industry is run on the quarterly dividend.
It is better to protect investment by working
continually toward improvement of product and
service that will bring the customer back.
*From: Deming, W. E. Out of the Crisis. Cambridge, UK: Cambridge
University Press; 1982. ISBN:0-911379-01-0.
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
Deming's "7 Deadly
Diseases of Management"
2. Emphasis on Short-Term Profits. Pursuit of the
quarterly dividend and short-term profit defeat
constancy of purpose. Anyone can boost the
dividend at the end of the quarter. Ship everything
on hand, regardless of quality: mark it as shipped,
and show it as accounts receivable. Defer till next
quarter, so far as possible, orders for material and
equipment. Cut down on research, education,
training.
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
Deming's "7 Deadly
Diseases of Management"
3. Evaluation of Performance, Merit Rating, or Annual
Review. The idea of a merit rating is alluring. The
sound of the words captivates the imagination: pay for
what you get; get what you pay for; motivate people to
do their best, for their own good. The effect is exactly
the opposite of what the words promise. Everyone
propels himself forward, or tries to, for his own good
on his own life preserver. The organization is the
loser. Merit rating rewards people that do well in the
system. It does not reward attempts to improve the
system.
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
Deming's "7 Deadly
Diseases of Management"
4. Mobility of Management. A company whose top
management are committed to quality and
productivity, with roots, does not suffer from
uncertainty and bewilderment. But how can
anyone be committed to any policy when his
tenure is only a few years, in and out? The job of
management is inseparable from the welfare of the
company. Mobility from one company to another
creates prima donnas for quick results. Mobility
annihilates teamwork, so vital for continued
existence.
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
Deming's "7 Deadly
Diseases of Management"
5. Running a Company on Visible Figures Alone. One
cannot be successful on visible figures alone. The most
important figures that one needs for management are
unknown or unknowable, but successful management must
nevertheless take account of them. An example: Visible
figures showed that the credit department of a company
had succeeded in retaining mostly only customers that paid
promptly. The credit department had performed well on the
job allotted to them. Figures not so visible showed that the
credit department had driven to the competition some of
their best customers. Top management looked too late at
the total cost.
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
Deming's "7 Deadly
Diseases of Management"
6. Excessive Medical Costs.
7. Excessive Costs of Liability, Swelled by Lawyers that
Work on Contingency Fees.
Unfortunately, Deming's Deadly Diseases numbers 6 and 7
are diseases born of political decisions made over many
decades by the U.S. Congress and the various state
Legislatures. There is not much that corporate or
organizational managements can do, within their
institutions, to cope with these diseases. Remedies for
these diseases will come about through political changes, if
they ever do occur.
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
Total Quality Management
TQM
• A movement inspired by Deming's 14 Points
• Widely popular in American business in the
1970s and in American governments in the
1980s
• Some critics charge that in actual practice
TQM often focuses too closely on achieving
consistent high quality in easily observable
details, and thus may miss "the big picture" of
overall output quality and customer
satisfaction
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
ISO 9000
• The International Organization for Standardization
(ISO) has developed a detailed set of specifications
for processes, the ISO 9000 series.
– This organization's name is abbreviated by "ISO", not "IOS"
(as you might expect if it were an acronym, which it is not).
– The reason is that "iso" means "equal" or "standard" in
Classical Greek. The organization chose this world-wide
abbreviation of its name in order to avoid the problems of
using different acronyms in different languages.
• Companies can follow the ISO 9000 specifications to
ensure high levels of quality in their products and
services.
• Companies that adhere to these specifications can
be certified as "ISO 9000-compliant."
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
ISO 9000
• Many companies and organizations insist
that their suppliers and cooperating
organizations must be ISO 9000compliant.
• Hence, such certification has become
valuable in the marketplace.
• ISO 9000 certification is especially popular
in Europe, and U.S. companies wanting to
sell there generally must acquire such
certification.
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
ISO 14000
• In a way similar to that in which
compliance with ISO 9000 has become
important for businesses throughout the
world, so also is compliance with the ISO
14000 series of standards becoming
important.
– The ISO 14000 series of standards covers the
area of environmental issues for organizations
in the global marketplace.
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
The Quality Revolution
• Though one-time projects to improve specific
activities and functions will always be important,
companies and organizations are increasingly striving
for continuous improvement of their operations.
• Quality of output of products and services has
become widely recognized as one of the most
important means—probably the single most
important means—for companies and organizations
to win success in their respective marketplaces, and
to retain that success.
• Companies and organizations that seek success
must constantly focus on achieving high quality in
their products and services .
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation
To Succeed—Aim
High!
GSLIS - The University of Texas at Austin
LIS 387.5, Systems Analysis and Evaluation