Organizations
Areas
I. Systems vs. Hierarchies
“A business is a system, not a hierarchy.” W. Edwards Deming
Dr. Deming stated that the Prussian Army developed the Organization Chart during the early 1800’s for use in war time, for the purpose of understanding the chain of com- mand in times of crisis. He further stated that they did not referred to Organization Charts during peace time.
Two ways to look at an Organization: - Who reports to whom - the Flow of activities.
What kind of questions and ideas does an Organization Chart raise? A system diagram? The second is a more useful tool to manage a system. The simplest representation of a system: providing a product or service to a customer, then getting feedback on how well you met the customer’s requirements.
Product or Service
Supplier
Customer
Feedback
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