This presentation covers the early success of the US auto industry, as pioneered by Henry Ford, through present day struggles. Detroit's "Big Three" ultimately self-destructed by focusing on production and short-term sales, while Japanese manufacturers, as influenced by Dr. W. Edwards Deming, focused on design quality. Deming's popular "14 Points" are applied to current trends in software and web development, as we draw from history to learn how the information technology field can avoid the same fate.

1. By JAKE
TRUEMPER
@trump29

2. • Like the Internet boom of the
„90s, automobile manufacturing
was exploding on the scene.
• As many as 3,000 firms
organized to produce autos.
• Big three of the early 1900s
were Olds, Ford & Cadillac.

3. Hi, I’m
Henry.
• Henry Ford‟s first two ventures into
auto manufacturing didn‟t stick.
• One of those two ventures, The Henry
Ford Company, became Cadillac,
which became a central part of
General Motors.
• Massive influence on industry
thinking.

4. Everyone
should totally
get one of
these things
• While many competitors focused on
high-end cars for the rich, Ford
focused on lowering prices, and
increasing sales by way of
productivity improvements.
• Accessibility tactic: Internet
Explorer, Windows, Android
• Ford also put much of the company
profits into innovations.

5. • Ford product diversity is minimized
in order to maximize production
efficiency.
• Workers are paid well.
• Roaring „20s… life is good.

6. • Find a new frontier
• Saturate the market
• Stay on top

7. • Ford technology gets stale.
• GM grabs market share.
• 1929, Stock market crash, hello
great depression.
• Henry Ford gets flaky, Ford Motors
struggles.
• 1941, WWII saves Ford‟s butt.
• PRODUCE, PRODUCE, PRODUCE!

9. • 1950-1967 was a good time for the
big three US auto manufacturers.
• Small manufacturers went bankrupt.
• Any overseas competition had been
bombed to irrelevance.
• Emphasis on cost cutting to
maximize profit.
• Focus on large vehicles due to
higher profit margin.

11. • Japanese imports soared.
• US consumers were willing to wait
for Japanese cars with Japanese
engines.
• Reliability was far superior to US
autos.
• US‟ Big Three suffer from chronic
over-production, and failed to
foresee consumer demand for fuel
efficient cars.

14. I did it!
• American statistician and quality
guru, W. Edwards Deming.
• Previously worked for the US
Department of Agriculture, Bureau of
the Census, and taught statistics at
Stanford.
• Influenced by Walter Shewhart.
• “Quality can be improved only if top
management is part of the solution.”
• 1950, Deming goes to Japan.

15. • June through August Deming met with
hundreds of Executives, Engineers,
Managers, and scholars to teach his
quality philosophy.
• Told the Japanese that they could
capture the markets of the world by
learning to produce quality goods for less
effort and materials.
• “Continuing information going into the
system to improve it and the product.”
• Today Deming is a well regarded national
figure in Japan, and the Deming prize
was founded in his honor.

16. • While US manufacturers were
focused on price, the Japanese
focused on Quality.
• By applying his techniques,
Japanese manufacturing reached
previously unheard of levels of
productivity.
• Japanese cars became synonymous
with thoughtful design and reliability.

17. 2001 Consumer Reports
• American and European vehicles had 21
problems per 100 vehicles.
• Asian manufacturers: 12 in 100.
2002 Consumer Reports
• Toyota: 10 in 100
• Honda, Hyundai: 11 in 100
• Chrysler: 20 in 100
• Ford: 23 in 100

19. “Create constancy of purpose towards
improvement of product and service…”
• Establish focused goals of satisfying the
customer.
• Base decisions on long-term focus of the
organization, not short-term performance
measures.
User-centered thinking can be achieved
through integrated teams This is where Apple and
Google really succeed

20. “Adopt the new philosophy.”
• Everyone is responsible for adopting the
new philosophy, from low-level worker to
top management.
• … but especially top management.
Communicate to your entire company who the user is
and design with that user in mind – try User Personas

21. “Cease dependence on inspection to
achieve quality.”
• Quality should be designed into products
and processes.
• Inspection adds nothing to the value of a
product and consumes resources.
• Prevent Defects instead of detect them.
Conduct iterative user testing early
and often, prior to development and
throughout Catching problems early means
significantly less rework later

22. “End the practice of awarding business
based on price tag.”
• Try to move to a single supplier in order
to insure quality consistency.
• Eliminate suppliers that cannot prove
quality.
Don’t be Ford, cutting costs wherever possible
while your competitor is improving quality
Don’t create silos with a wide variety
of partners

23. “Improve constantly and forever the system
of production and service, to improve
quality and productivity, and productivity,
and thus constantly decrease costs.”
• To remain competitive always seek to
better products and services.
Invest time in creative thinking – try
lots of ideas, validate with users
Innovate, don’t rest on your laurels

24. “Institute training and retraining.”
• Everyone is an important link in quality.
• Bring in people to teach design to all
levels, because everyone in the process
matters.
Don’t pretend to be an expert in
something you’re not trained on
Take UX training, get involved in user testing
Don’t be cheap

25. “Institute leadership.”
• A leader‟s aim should be to help people
do a better job.
• Leadership isn‟t supervision.
• Bring in experts that can be thought
leaders.
• Focus not on productivity, but quality.
• “Do your best, continually seek to
improve that best, look out for the people
you are responsible for, and recognize
that everyone is in this together.”

26. “Drive out fear, so that everyone may work
effectively for the company.”
• Open two way dialogue.
Dialogue should be open between a company
and the end user as well, whether that user is
internal, end-customer, or b2b

27. “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.”
• Create common purposes and values.
• Each department should serve not
management but other departments that
uses it‟s outputs.
Put developers, designers, and UX pros in the same room, all excited about
creating an engaging experience, and you’ll come up with some great ideas that
are far more likely to become a reality than departments in silos

28. “Eliminate slogans, exhortations, and
targets for the work force asking for zero
defects and new levels of productivity.”
• All these create adversarial relationships.
• Poor quality is caused by the system, not
the work force.
• Eliminate unreasonable expectations.
Unreasonable expectations are far more likely
to demotivate than motivate, so create
reasonable timelines
Allow time for vetting creative ideas, there has to be time
dedicated to ideation if a company is going to innovate

29. “Abolish numerical quotas for the workforce
and numerical goals for management.”
• The responsibility of managers must be
changed from sheer numbers to quality.
• Numerical quotas are useless without
processes that emphasize quality.

30. “Remove barriers to pride.”
• Eliminate performance reviews and merit
systems
• These barriers to pried cause
competition and short-term results.

31. “Institute a vigorous program of education
and self improvement.”
• Even in areas not directly job related.

32. “Put everybody in the company to work to
accomplish the transformation.”
• The transformation is everyone‟s job.

34. THANKS!
@trump29
http://linkedin.com/in/jaketruemper
truemper@gmail.com
314.881.1900
info@4ORCEdigital.com