Deming emphasized that management's job is to optimize the system. By making decisions that are best for only a small part of the system (often encouraged by competition), we suboptimize. Suboptimization will prevent a system from achieving its goal.
For example, a common practice is to pur-chase materials or
services at the lowest bid. Inexpensive materials may be of such
inferior quality that they will cause excessive costs in adjustment
and repair during manufacture and assembly. Although the purchasing
depart-ment's track record might look good, the overall system will
suffer.
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