F

Raw material from suppliers

Products to customers

Production functions

Figure 2.4 Deming's sketch of a business system emphasized interrelationships and feedback.

ideas about possible products or services. He considers these ideas predictions of what the customer might want or need. This prediction leads to the decision to design the product or service and to test it in preliminary trials before committing to full-scale production. Feedback from the customers is a key part of driving the system toward the future.

The project-management system operates in precisely the same way. Customers specify what they want from the project. The project team prepares a project plan to create the specified result. The plan brings together various functions within the company and purchased services and parts to produce the desired result. Just as a company may produce many products or deliver many services, the project-management system is capable of delivering many completed projects. Although the deliverables from specific projects are unique, the same project-management system serves to produce the results.

Deming understood system dynamics. He observed that operation of his flow diagram required the flow of material and information from any part of the system to match the input required by the next element in the system. He emphasized that the definition of the system must consider the impact on the future of the system. He made reference to the following material.

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Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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