Dr W. Edward Deming.docx

Introduction Dr William Edwards Deming (1900 - 1993) was an acknowledged American statistician, engineer, professor, author, lecturer and management consultant. Deming introduced statistical quality control in Japan post world war, which eventually revolutionized Japan’s industry in 1950’s, leading to Japan’s “Post-war Economic Miracle”. Japan’s economic recovery and growth were based on the realization of Deming’s theories and the profound increase in the quality of Japan’s manufactured goods. Rising of Deming’s Influence In the late 1920’s, Deming became familiar with the work of Walter Shewhart who was experimenting with the application of statistical techniques to manufacturing processes at Bell Telephone Laboratories. Shewhart’s theories concerning statistical control methods formed the basis for Deming’s work. Deming became interested in applying Shewhart's techniques to nonmanufacturing processes, particularly clerical, administrative and management activities. After joining the US Census Bureau in 1939, he applied statistical process control to their techniques, which contributed to a six-fold improvement in productivity. In 1950’s, Deming's expertise as a statistician was instrumental in his posting to Japan after the Second World War as an adviser to the Japanese Census. While in Japan, Deming began teaching and consulting with Japanese industrialists through the Union of Japanese Scientists and Engineers (JUSE). His career of lecturing to the Japanese on statistical methods and company-wide quality: a combination of techniques currently referred to as Total Quality Management (TQM) had begun. In 1960, He received the Second Order Medal of the Sacred Treasure from the Emperor of Japan for his contribution to improvement of quality and the Japanese economy. It was only in the late 1970’s that the USA became aware of his achievements in Japan. The 1980’s saw a spate of publications explaining his work and influence. In his American seminars during 1980, Deming talked of the need for the total transformation of the Western style of management. In 1986, he published Out of the crisis which documented the thinking and practice that had led to the transformation of Japanese manufacturing industry.

Deming’s Work 1. The System of Profound Knowledge System of Profound Knowledge is theory of management that provides a framework of thought and action for any leader wishing to transform and create a thriving organisation, with the aim for everybody to win. This system consists of four components, each of which interacts with the others. A) Appreciation for a system Deming defined a system as a network of interdependent components that work together to accomplish some aim. The aim of the system must be stated by management. Without an aim, there is no system. B) Knowledge about variation Deming stressed that one need not be eminent in any part of profound knowledge in order to understand it as a system, and to apply it. Deming placed emphasis on understanding and differentiating between controlled, random, or common cause variation and uncontrolled, non- random, special cause variation. Common causes of variation come from within the process. They generate outcomes that are different, but not significantly different. Special causes intervene from outside the process and produce outcomes that are not different, they’re significantly different. Making this distinction is critical for managers and scientists in determining an appropriate improvement strategy. For common cause variation, the appropriate strategy is to change and improve the process. For non-random, special cause variation, the appropriate action is to find, remove and prevent the reoccurrence of the special cause. No amount of work on a process will address a special cause, because uncontrolled variation comes from outside the process. C) Theory about knowledge Deming stated that management in any form requires prediction – and that prediction must be based on some theory. The theory of knowledge emphasized that a statement, if it conveys knowledge, predicts future outcome, with risk of being wrong, and it fits without failure observations of the past. D) Theory of psychology Psychology allows the understanding of people, interaction between people and circumstances, interaction between a manager and his people and any system of

management. Deming’s philosophy for leadership rests on the belief that people are intrinsically motivated. They strive naturally for dignity, pride and joy in their work.

2. The 14 Points of Managing Deming created 14 points which provide a framework to developing knowledge in the workplace and can be used to guide long term business plans and aims. A) Create constancy of purpose toward improvement of product and service, with the aim of becoming competitive, staying in business and providing jobs. B) Adopt the new philosophy. Western management must awaken to the challenge, must learn their responsibilities and take on leadership for change. C) Cease dependence on mass inspection. Eliminate the need for inspection on a mass basis by building quality into the product from the start. D) End the practice of awarding business on the basis of price tag alone. Instead, minimise total cost. Move towards a single supplier for any item, based on a longterm relationship of loyalty and trust. E) Improve constantly and forever the system of production and service. Continuously improve quality and productivity, and thus constantly decrease waste and cost. F) Institute training and retraining. Learning by experience and discovery of a better way. G) Institute leadership. The aim of supervision should be to lead and help people to do a better job. H) Drive out fear so that everyone may work effectively for the company. Fear is a barrier to innovation and collaboration. I) Break down barriers between departments. People in research, design, sales and production must work as a team, to foresee and solve problems of production. J) Eliminate slogans, exhortations and targets for the workforce as they do not necessarily achieve their aims. Inspire the workforce to self-directed excellence. K) Eliminate numerical quotas in order to take account of quality and methods, rather than just numbers. L) Remove barriers to pride of workmanship. M) Institute a vigorous program of education and re-training for both the management and the workforce.

N) Put everybody in the company to take action to accomplish the transformation. Management and workforce must work together.

3. The Deadly Diseases of Management Deming describes the main barriers faced by management to improving effectiveness and continual improvement. He was referring here to US industry and their management practices. A) Lack of constancy of purpose to plan products and services that will have a market and keep the company afloat. B) An emphasis on short term profits and short-term thinking (just the opposite from constancy of purpose to stay in business), fed by fear of unfriendly takeover, and by demand from bankers and owners for dividends. C) Evaluation of performance and annual reviews. D) Mobility of managers and job hopping in large corporations. E) Management by use only of available data. F) High medical costs. G) High costs of liability.

4. PDCA Cycle (Deming Wheel) Concept of PDCA cycle was proposed by Walter Shewhart and promoted widely by Deming in 1950’s. The PDCA (Plan-Do-Check-Act) cycle consists of four steps or stages which must be gone through to get from `problem-faced' to `problem solved.’ Repetition of these steps forms a cycle of continual improvement. A) Plan for changes to bring about improvement. B) Do changes on a small scale first to trial them. C) Check to see if changes are working and to investigate selected processes. D) Act to get the greatest benefit from change.