Deming

The prevailing style of management must undergo transformation. A system can not understand itself. The transformation requires a view from outside.

The aim of this chapter is to provide an outside view-a lens-that I call a system of profound knowledge. It provides a map of theory by which to understand the organizations that we work in.

The first step is transformation of the individual. This transformation is discontinuous. It comes from understanding of the system of profound knowledge. The individual, transformed, will perceive new meaning to his life, to events, to numbers, to interactions between people.

Once the individual understands the system of profound knowledge, he will apply its principles in every kind of relationship with other people. He will have a basis for judgment of his own decisions and for transformation of the organizations that he belongs to.

The individual, once transformed, will:
Set an example
Be a good listener, but will not compromise
Continually teach other people
Help people to pull away from their current practice and beliefs and move into the new philosophy without a feeling of guilt about the past

The layout of profound knowledge appears here in four parts, all related to each other:
Appreciation for a system
Knowledge about variation
Theory of knowledge
Psychology

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detailed analysis of everything from customers' desires to the decision-making process itself, which is often fraught with erroneous assumptions.While analysis is unquestionably a staple of most businesses, that which increasingly distinguishes the winners from the losers in our information-laden world is the incisiveness of the analysis. In the competition for global markets, the Japanese outanalyzed the United States, then mustered the corporate willpower to find better and more efficient ways of acting on their conclusions. They were able to do this in part because an understanding of variation and the concept of continuous improvement gave every member of the company a common focus when discussing problems and changes.

The Fourteen Points are, in fact, based on the following six principal ideas that will be illustrated in the upcoming chapters:
1. Quality is defined by the customer. Improvement in products and processes must be aimed at anticipating customers' future needs. Quality comes from improving the process, not from "inspecting out" the shoddy results of a poorly run process.

2. Understanding and reducing variation in every process is a must.

3. All significant, long-lasting quality improvements must emanate from top management's commitment to improvement, as well as its understanding of t~e means by which systematic change is to be achieved. Improvement cannot come merely from middle managers' and workers' "trying harder." Neither quality improvement nor long-term profitability can be achieved through wishful thinking and arbitrary goals set without consideration for how they are to be achieved within the context of an organization's process capabilities.

4. Change and improvement must be continuous and all encompassing. It must involve every member in an organization, including outside suppliers.

5. The ongoing education and training of all the employees in a company are a prerequisite for achieving the sort of analysis that is needed for constant improvement.

6. Performance ratings that seek to measure the contribution of indual employees are usually destructive. Given a chance anagement, the vast majority of employees will take e in their work and strive for improvement. But _ "':ormance-ranking schemes can impede natural initiative.- one thing, by their very nature they create more "losers" , winners" and thus batter morale. And since they don't e into account natural variation, they are inaccurate and - :3Jr and are perceived as such by employees.
-e dering of Deming's Fourteen Points, the points theme been reordered in the interest of highlighting some of _ ~ es between them. For example, in Deming's book, his - to "improve constantly . . . the system of production _e" is number five. However, it appears here right after ?Oint number one, constancy of purpose, both because deas are very closely linked and because Deming's defnstant improvement is central to his philosophy.

5 constancy of purpose..' of purpose, on a macro level, entails an unequivocal long;mnitment to invest in, and adapt to, the challenging reof the marketplace. It is the antithesis of managing for ~ financial gain. Constancy of purpose, on a micro level, -e systematic fine-tuning of every function in a corporation : --e changes in company strategy and product line that are : ~ meet long-term market needs.-g's concept of constancy begins and ends with the cus- ile U.S. companies initially turned to Deming because - control of their processes and d\'i>covereo that they were _ 'r more faulty products than the competition was, they e-ed that eliminating defects isn't enough to capture _ccess depends on how well a company evaluates the ~roducts, and markets of today to figure out what the want tomorrow, and whether a company has the man:1\iction to change accordingly. It requires a commitment strategies and the analytical know-how to accurately _ -e organizational changes need to be made.- ;>anies may think this obvious. But the evidence of the


W. Edwards Deming

Born
October 14, 1900(1900-10-14)Sioux City, Iowa, USA
Died
December 20, 1993 (aged 93)Washington DC, USA
Occupation
Statistician
William Edwards Deming (October 14, 1900–December 20, 1993) was an American statistician, college professor, author, lecturer, and consultant. Deming is widely credited with improving production in the United States during World War II, although he is perhaps best known for his work in Japan. There, from 1950 onward he taught top management how to improve design (and thus service), product quality, testing and sales (the last through global markets)[1] through various methods, including the application of statistical methods such as analysis of variance (ANOVA) and hypothesis testing. Deming made a significant contribution to Japan's later renown for innovative high-quality products and its economic power. He is regarded as having had more impact upon Japanese manufacturing and business than any other individual not of Japanese heritage. Despite being considered something of a hero in Japan, he was only beginning to win widespread recognition in the U.S. at the time of his death. [2]
Contents
1 Overview
2 Early life and work
2.1 Work in Japan
2.2 Honors
2.3 Later work in the U.S.
3 Deming philosophy synopsis
3.1 The Deming System of Profound Knowledge™
3.2 Deming's 14 points
3.3 Seven Deadly Diseases
4 Quotations and concepts
5 See also
6 Notes
7 Bibliography
8 External links
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