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Essay / Research Paper Abstract
A 6 page paper using Deming's System of Profound Knowledge to evaluate the relative worth of six sigma and Management by Objectives. Six sigma better matches today's business needs. As stated above, MBO was useful when it worked well for American business, but that time appears to be in the past. Gaining greater customer favor positively contributes to the organization's bottom line whereas internally-focused MBO merely gives middle managers "bragging rights" throughout the period between performance reviews. Bibliography lists 7 sources.
Page Count:
6 pages (~225 words per page)
File: CC6_KSmgmt6SigSoPK.rtf
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Unformatted sample text from the term paper:
Drucker (1985) created the approach to management known as Management by Objective (MBO). It was a valuable approach to business at the time and served to focus managers at
the job at hand. The underlying philosophy was that if the business would tend its business, set goals for managers and then meet them, then other aspects of the
business (i.e., growth and profitability) would come about as natural outgrowths of sound management practices. This approach was good in its time and
good as far as it went. It neglects one critical factor crucial to business success today, however: the customer. Deming (2000) created the System of Profound Knowledge (SoPK)
and said that it "provides a map of theory by which to understand the organizations that we work in." Purpose of SoPK
SoPK contains four broad areas: knowledge of variation; knowledge of systems; knowledge of psychology; and an understanding of the theory of knowledge (Deming, 2000). Variation
Before a management philosophy developed around and within it, the foundations of Total Quality Management (TQM) lay in Demings and Walter Shewarts efforts to bring manufacturing activities within
statistical control. Deming (2000) extended this to SoPK, saying it is necessary to have an understanding of both common cause variation and special variation. The point is to
work to reduce both types of variation in processes. Deming eschewed banners and slogans, particularly that of "do it right the first time"
(Deming, 1986; p. 66). He wrote, A lofty ring it has. But how could a man make it right the first time when the incoming material is
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