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William Edwards Deming(October 14, 1900 December 20, 1993)
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William Edwards Deming was an American
Statistician, Professor, Author, Lecturer, and Consultant.
Deming is widely credited with improving production in the
United States during the Cold War, although he is perhaps best
known for his work in Japan. He is regarded as having had more
impact upon Japanese manufacturing andbusiness than any
other individual not of Japanese heritage. 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) through various methods, including the
application of Statistical methods.
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Quick History
W. Edwards Deming was born in Sioux City, Lowa and was raised
in Polk City, Lowa.
Deming received a BSc in electrical engineering from the University
of Wyoming at Laramie (1921), an M.S. from the University of
Colorado(1925), and a Ph.D. from Yale University (1928).
Deming was the author ofOut of the Crisis (19821986) and The
New Economics for Industry, Government, Education (1993).
In Japan, Deming's expertise in quality control techniques.
In 1960, the Prime Minister of Japan ( Nobusuke Kishi), acting on
behalf ofEmperor Hirohito, awarded Dr. Deming Japans Order of
the Sacred Treasure, Second Class.
Ford Motor Company was one of the first American corporations to
seek help from Deming.
Deming offers a theory of management based on his famous 14 Pointsfor Management.
In 1987 he was awarded theNational Medal of Technology.
In 1988, he received the Distinguished Career in Science award from
theNational Academy of Sciences.
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In December 1993, W. Edwards Deming died in his sleep at the age
of 93 in his Washington home at about 3 a.m. due to "natural causes."
Deming Philosophy Synopsis
Dr. W. Edwards Deming taught that by adopting appropriate
principles of management, organizations can increase quality and
simultaneously reduce costs (by reducing waste, rework, staff attrition
and litigation while increasing customer loyalty).
Dr. Deming's philosophy was summarized by some of his Japaneseproponents with the following 'a'-versus-'b' comparison:
When people and organizations focus primarily on quality, defined bythe following ratio,
Quality tends to increase and costs fall over time.
However, when people and organizations focus primarily on costs,costs tend to rise and quality declines over time.
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Deming advocated that all managers need to have what he called aSystem of Profound Knowledge, consisting of four parts:
Appreciation of a system: Understanding the overall processesinvolving suppliers, producers, and customers (or recipients) of goodsand services.
Knowledge of variation: The range and causes of variation in quality,and use of statistical sampling in measurements.
Theory of knowledge: The concepts explaining knowledge and thelimits of what can be known.
Knowledge of psychology: Concepts of human nature.
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DEMING'S SEVEN DEADLY DISEASES
Deming believed that traditional management practices, such as the Seven
Deadly Diseases listed below, significantly contributed to the American
quality crisis.
1. Lack of constancy of purpose to plan and deliver products and
services that will help a company survive in the long term.
2. Emphasis on short-term profits caused by short-term thinking (which
is just the opposite of constancy of purpose), fear of takeovers, worry
about quarterly dividends, and other types of reactive management.
3. Performance appraisals (i.e., annual reviews, merit ratings) that
promote fear and stimulate unnecessary competition amongemployees.
4. Mobility of management (i.e., job hopping), which promotes short-
term thinking.
5. Management by use of visible figures without concern about other
data, such as the effect of happy and unhappy customers on sales, and
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the increase in overall quality and productivity that comes from
quality improvement upstream.
6. Excessive medical costs, which now have been acknowledged as
excessive by federal and state governments, as well as industries
themselves.
7. Excessive costs of liability further increased by lawyers working on
contingency fees.
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DEMING'S FOURTEEN POINTS
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Deming formulated the following Fourteen Points to cure (eliminate) the
Seven Deadly Diseases and help organizations to survive and flourish in the
long term:
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1. Create constancy of purpose toward improvement of product and
service. Develop a plan to be competitive and stay in business.
Everyone in the organization, from top management to shop floor
workers, should learn the new philosophy.
2. Adopt the new philosophy. Commonly accepted levels of delays,
mistakes, defective materials, and defective workmanship are now
intolerable. We must prevent mistakes.
3. Cease dependence on mass inspection. Instead, design and build in
quality. The purpose of inspection is not to send the product for
rework because it does not add value. Instead of leaving the problems
for someone else down the production line, workers must take
responsibility for their work. Quality has to be designed and built into
the product; it cannot be inspected into it. Inspection should be used
as an information-gathering device, not as a means of "assuring"quality or blaming workers.
4. Don't award business on price tag alone (but also on quality, value,
speed and long term relationship). Minimize total cost. Many
companies and organizations award contracts to the lowest bidder as
long as they meet certain requirements. However, low bids do not
guarantee quality; and unless the quality aspect is considered, the
effective price per unit that a company pays its vendors may be
understated and, in some cases, unknown. Deming urged businesses
to move toward single-sourcing, to establish long-term relationships
with a few suppliers (one supplier per purchased part, for example)
leading to loyalty and opportunities for mutual improvement.
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Using multiple suppliers has been long justified for reasons such as
providing protection against strikes or natural disasters or making the
suppliers compete against each other on cost. However, this approach
has ignored "hidden" costs such as increased travel to visit suppliers,
loss of volume discounts, increased set-up charges resulting in higher
unit costs, and increased inventory and administrative expenses. Also
constantly changing suppliers solely on the base of price increases the
variation in the material supplied to production, since each supplier's
process is different.
5. Continuously improve the system of production and service.
Management's job is to continuously improve the system with input
from workers and management. Deming was a disciple of Walter A.
Shewhart, the developer of control charts and the continuous cycle of
process improvement known as the Shewhart cycle. Deming
popularized the Shewhart Cycle as the Plan-Do-Check-Act (PDCA)
or Plan-Do-Study-Act (PDSA) cycle; therefore, it is also often
referred to as the Deming cycle. In the planning stage, opportunities
for improvement are recognized and operationally defined. In the
doing stage, the theory and course of action developed in the previous
stage is tested on a small scale through conducting trial runs in a
laboratory or prototype setting. The results of the testing phase are
analyzed in the check/study stage using statistical methods. In the
action stage, a decision is made regarding the implementation of the
proposed plan. If the results were positive in the pilot stage, then the
plan will be implemented. Otherwise alternative plans are developed.
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After full scale implementation, customer and process feedback will
again be obtained and the process of continuous improvement
continues.
6. Institute training on the job. When training is an integral part of the
system, operators are better able to prevent defects. Deming
understood that employees are the fundamental asset of every
company, and they must know and buy into a company's goals.
Training enables employees to understand their responsibilities in
meeting customers' needs.
7. Institute leadership (modern methods of supervision). The best
supervisors are leaders and coaches, not dictators. Deming high-
lighted the key role of supervisors who serve as a vital link between
managers and workers. Supervisors first have to be trained in the
quality management before they can communicate management'scommitment to quality improvement and serve as role models and
leaders.
8. Drive out fear. Create a fear-free environment where everyone can
contribute and work effectively. There is an economic loss associated
with fear in an organization. Employees try to please their superiors.
Also, because they feel that they might lose their jobs, they are
hesitant to ask questions about their jobs, production methods, and
process parameters. If a supervisor or manager gives the impression
that asking such questions is a waste of time, then employees will be
more concerned about pleasing their supervisors than meeting long-
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term goals of the organization. Therefore, creating an environment of
trust is a key task of management.
9. Break down barriers between areas. People should work cooperatively
with mutual trust, respect, and appreciation for the needs of others in
their work. Internal and external organizational barriers impede the
flow of information, prevent entities from perceiving organizational
goals, and foster the pursuit of subunit goals that are not necessarily
consistent with the organizational goals. Barriers between
organizational levels and departments are internal barriers.
External barriers are between the company and its suppliers,
customers, investors, and community. Barriers can be eliminated
through better communication, cross-functional teams, and changing
attitudes and cultures.
10. Eliminate slogans aimed solely at the work force. Most problems are
system-related and require managerial involvement to rectify or
change. Slogans don't help. Deming believed that people want to do
work right the first time. It is the system that 80 to 90 percent of the
time prevents people from doing their work right the first time.
11. Eliminate numerical goals, work standards, and quotas. Objectives set
for others can force sub-optimization or defective output in order to
achieve them. Instead, learn the capabilities of processes and how to
improve them. Numerical goals set arbitrarily by management,
especially if they are not accompanied by feasible courses of action,
have a demoralizing effect. Goals should be set in a participative style
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together with methods for accomplishment. Deming argued that the
quota or work standard system is a short-term solution and that quotas
emphasize quantity over quality. They do not provide data about the
process that can be used to meet the quota, and they fail to distinguish
between special and common causes when seeking improvements to
the process.
12.Remove barriers that hinder workers (and hinder pride in
workmanship). The direct effect of pride in workmanship is increased
motivation and a greater ability for employees to see themselves as
part of the same team.
This pride can be diminished by several factors:
(1) Management may be insensitive to workers' problems.
(2) They may not communicate the company's goals to all levels.
(3) They may blame employees for failing to meet company goals
when the real fault lies with the management.
13. Institute a vigorous program of education and self improvement.
Deming's philosophy is based on long-term, continuous process
improvement that cannot be carried out without properly trained and
motivated employees. This point addresses the need for ongoing and
continuous education and self-improvement for the entire
organization. This educational investment serves the following
objectives:
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(1) It leads to better motivated employees.
(2) It communicates the company goals to the employees.
(3) It keeps the employees up-to-date on the latest techniques and
promotes teamwork.
(4) Training and retraining provides a mechanism to ensure adequate
performance as the job responsibilities change.
(5) Through increasing job loyalty, it reduces the number of people
who "job-hop."
14. Take action to accomplish the transformation. Create a structure in
top management that will promote the previous thirteen points. It isthe top management's responsibility to create and maintain a structure
for the dissemination of the concepts outlined in the first thirteen
points. Deming felt that people at all levels in the organization should
learn and apply his Fourteen Points if statistical process control is to
be a successful approach to process improvement and if organizations
are to be transformed. However, he encouraged top management to
learn them first. He believed that these points represent an all-or-
nothing commitment and that they cannot be implemented selectively.
The Deming Cycle
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W. Edwards Deming in the 1950's proposed that business processes should be analyzed and measured to identify sources of variations that cause products to deviate from customer requirements. To illustrate thiscontinuous process, commonly known as the PDCA cycle for Plan, Do,Check, Act*:
PLAN: Design or revise business process components to improveresults
DO: Implement the plan and measure its performance CHECK: Assess the measurements and report the results to decision
makers
ACT: Decide on changes needed to improve the process
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This 'wheel within a wheel' describes the relationship between strategic
management and business unit management in a large company. There are
actually several separate business units, of course, each with its own set of
metrics, goals, targets and initiatives. But this figure illustrates the idea that
the business activities constitute the DO part of the overall strategic effort.
DEMING PRIZE
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The Deming Prize, especially the Deming Application Prize which is given
to companies, has exerted an immeasurable influence directly or indirectly
on the development of quality control/management.
Categories of the Deming Prize
The Deming Application Prize
Given to companies or divisions of companies that have achieved
distinctive performance improvement through the application of TQM in a
designated year.
The Deming Application Prize
Given to individuals who have made outstanding contributions to the study
of TQM or statistical methods used for TQM, or individuals who have
made
The Deming Prize for Individuals
outstanding contributions in the dissemination of TQM.
The Quality Control Award for Operations Business Units
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Given to operations business units of a company that have achieved
distinctive performance improvement through the application of quality
control/management in the pursuit of TQM in a designated year.
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Winners Of Deming Awards
Indian manufacturing sector urged to maintain quality standards
V. Krishnamurthy, Chairman, NMCC (centre); Arun Bewoor, MCCI
president (second from left), with the Deming Awardies (from left)
T.K. Balaji, Chief Executive and Managing Director, Lucas TVS; L.
Lakshman, Chairman Rane Holdings and S. Viji, Managing Director,
Brakes India, in Chennai.
The Deming award was given to Rane Holdings, Brakes India,
Sundaram Clayton and Lucas TVS.
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DEMING AWARD FOR LUCAS-TVS
Chennai, 9 October 2004: Lucas-TVS, a TVS group company, has
bagged the prestigious Deming Application Award for the year 2004.
This was announced by the Deming Prize Committee of Japanese
Union of Scientists and Engineers (JUSE).
Lucas-TVS, with manufacturing facilities at Padi (Chennai),
Pondicherry and Rewari (Haryana), is the first and the only Auto
Electrical Company from India to receive this coveted award.
Lucas-TVS launched the Japanese Total Quality Management (TQM)
movement during 1998. TQM is a vehicle to continuously improve all
the Management Processes with Customer Focus in terms of Quality,
Cost, Delivery and Service and the process motivates teamwork
Lucas-TVS is the largest manufacturer of Auto Electricals in India
catering to all segments of Auto Industry, which includes Cars, Utility
Vehicles, Commercial Vehicles, Tractors and Two wheelers.
Its focus on customer, continuous improvement and employee
involvement has always been commendable. Lucas-TVS is a TS
16949 and ISO 14001 certified company.
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Tata Steel India Receives Deming Application Prize-
2008
Tata Steel India is now the first integrated steel company in the world,
outside Japan, to be awarded the Deming Application Prize for
excellence in Total Quality Management.
Mr. B Muthuraman Managing Director received this coveted medal
by Mr. Fujio Mitarai, Chairman Deming Prize Committee at a formalfunction.
The Deming award which is the highest award for quality in theworld, was given to Tata Steel not only for what the Company hasdone for its customers, employees and business partners but also forits exceptional work in the area of social welfare and uplift in the
areas of its operations.
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What Deming Taught Toyota Every 21st Century
Manager Needs to KnowDr. W. Edwards Demings principles support the global success of Toyota,
Proctor & Gamble, Ritz Carlton, Harley-Davidson, and many other leading
organizations. His teachings are essential for the effective application of
Six Sigma, Lean Manufacturing, Loyalty/Net Promoter and other quality
improvement, customer retention and business growth methods.
Dr. Demings profound, yet simple, success strategies offer yourorganization a proven system to achieve lasting growth and success. The
principles apply universally to business, healthcare, educationin fact, to
any enterpriseand to you personally.
Ironically, this American prophetstill unknown to most of his
countrymencreated the theory behind todays successful business
practices. He is a national hero in Japan. The highest award for quality in
Japana Nobel Prize for business successis the Deming Prize, awardedwith great fanfare every year. Dr. Deming helped Toyotaand other
leading Japanese exporting companiesdevelop the vital management
philosophy and practices that enabled them to become market leaders
around the world.
Dr. Shoichiro Toyoda, Chairman and former President (1982-1999) of
Toyota, said :
Every day I think about what he meant to us. Deming is the core of ourmanagement.1
In 2005, accepting the American Society for Qualitys Deming Medal, Dr.
Toyoda elaborated :
Dr. Deming came to Japan following World War II in order to teach
industry leaders methods of statistical quality control, as well as to impart
the significance of quality control in management and his overall
management philosophy. He was an invaluable teacher, playing an
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indispensable role in the development and revitalization of post-war Japan.
Industrialists as well as academics earnestly began to study and implementDr. Deming's theories and philosophy. Dr. Deming soon became widely
known not only as a brilliant theorist, but also as a kind and modest man. In
1951, the Deming Prize was founded in order to promote the widespread
practice of quality control based on Dr. Deming's philosophy.
We at Toyota Motor Corporation introduced TQC in 1961, and in 1965
were awarded the Deming Application Prize. As we continued to
implement Dr. Deming's teachings, we were able to both raise the level ofquality of our products as well as enhance our operations on the corporate
level. I believe that TMC today is a result of our continued efforts to
implement positive change in pursuit of the Deming Prize.
Now, we are faced with rapid global restructuring of both society and
business. In the midst of these overwhelming changes, corporations faced
with the challenge of providing value to a wide range of shareholders have
begun to focus on quality innovations such as completely customer-
oriented management practices, environmental preservation, and the
upholding of corporate ethics.
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Deming's Point #1 as It Applies to the InsuranceIndustry
"Create constancy of purpose for improvement of product and service."This W. Edwards Deming principle has great relevance to the insuranceindustry as illustrated by real-world examples.By John Pryor
One outstanding example of "constancy of purpose" is William J. (Bill)O'Brien, when he was CEO of Hanover Insurance Companies in the 1970s.
I first met Bill at a seminar in San Diego in the early 1990s. I subsequentlyhad dinner with him and our wives in Boston at his favorite downtownrestaurant. (It was Hungarian.) He led Hanover's history-making turnaroundwith "constancy of purpose" as his principle discipline.
In San Diego, Bill told us that to lead any organizational transformation it'scritical to:
move away from the usual institutional or organization design that has
as its purpose "keeping people from screwing up"; think through your values and beliefs; and give all employees the same sense of purpose.
As confirmed by Larry Brandon in Pathway to Progress (CPCULomanEducation Foundation, 2003), "Bill worked to develop a values-based,vision-driven' organization well before writing values and vision statements
became a corporate fad."
Bill inculcated these values and vision into the culture of his organizationand its people. The Hanover turnaround was nothing less than phenomenal.From stock valued at 98 cents per share, it grew to $45 on his watch.Surplus grew from $440 million to $1.7 billionall without anyacquisitions or capital infusion.
If you want to read more about Bill O'Brien, all you have to do is pull outyour copy of Peter Senge's management classic entitled, The Fifth
Discipline. Bill is quoted on at least 52 of the 371 pages in his book.
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BillO'Brien passed away recently, but his principles live on. In fact, Bill is
quoted in Mr. Senge's Fifth Discipline Field book (Doubleday, 1994) asfollows:
We began by laying out a purpose for the company. In those days, whenmainstream businessmen believed the only purpose of business was makingmoney, it was very radical . . . It was a mission statement, although nobodyhad heard of that word yet. As soon as we had written it down, we thoughtwe'd solved our problem
However most purpose statements inspire the five or ten people who sitaround writing them, but do nothing for the 5,000 other people in thecorporation. If it is going to enlist people's spirit, a purpose must beextended into a set of values and a vision. We needed some shared sense ofwhat we stood for as an organization
As strong as were his words, his actions spoke louder. He and his companywere innovative, they emphasized education and research, and they
continually improved their products and service as they practiced anddemonstrated their "constancy of purpose."
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Deming's Point #14 as Applied to the Insurance
Industry
Deming's key admonitions to both leaders and managers as part of Point#14 are:
Start as soon as possible
Everyone can take part (as a team)
Embark on construction of organization for quality.
Hindsight is always 20:20, of course, but you have to think how differentthe outcome may have been in today's financial meltdown had CEOs of
multiple national and international financial service companies practiced
these principles and disciplines.
Property-casualty insurance companies in general (so far) seem to have
"dodged this bullet" unlike banks and other non-insurance financial
organizations that typically are higher leveraged than is customary than for
P&C insurance companies. Insurance companies typically have highly
liquid investment portfolios that are more conservativewith much less
volatilitythan other financial organizations. Yet many insurance
companies are floundering. Have those in trouble understood and practiced:
Systems thinking?
Continuous performance improvement?
Teamwork?
Strategic planning at all levels?
Listening to the "Voice of the Customer" (both internal and external)?
Training, education, and self-improvement of all staff?
Leadershipin addition to management (and understand the
difference)?
Cross-functional communication and planning?
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Put it all together in a Balanced Score Card?
These questions, and no doubt others, will perhaps provide some element of
insight. Another is the Insurance Institute of America program "Delivering
Insurance Services" (AIS-25).
This discipline and common body of knowledge seems to have been missed
by many business schools and MBA programs where many insurance
executives are concerned. It's never too late to compensate for that
omission!
This educational foundation from the Institutes should then be followed by
training of key management people as Lean Six Sigma "Green Belts"
with about 1 in 10 of the Green Belts ultimately advancing to "Black Belt"
certification. That's my remedy for the CEO of every organization in our
industry not already practicing these disciplines and best practices. What's
your solution for them?
Now let's talk more specifically about Dr. Deming's 14th Point. It is:
Take action to accomplish the transformation
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These are Dr. Deming's concluding remarks
1. Management in authority will struggle over every one of the above 13
points, the deadly diseases, the obstacles. They will agree on their meaningand on the direction to take. They will agree to carry out the new
philosophy.
2. Management in authority will take pride in their adoption of the new
philosophy and in their new responsibilities. They will have courage to
break with tradition, even to the point of exile among their peers.
3. Management in authority will explain by seminars and other means to
a critical mass of people in the company why change is necessary, and thatthe change will involve everybody. Enough people in the company must
understand the 14 points.
a. This whole movement may be instituted and carried out by middle
management, speaking with one voice.
Every activity, every job is a part of a process. A flow diagram of any
process will divide the work into stages. The stages as a whole form a
process. The stages are not individual entities, each running at maximum
profit. A flow diagram, simple or complex, is an example of a theoryan
idea. Work comes into any stage, changes state, and moves on into the next
stage. Any stage has a customer, the next stage. The final stage will send
product or service to the ultimate customer, he who buys the product or the
service. At every stage there will be:
. Production - change of state, input changes to output. Something
happens to material or papers that come into any stage. They go out in a
different state.
a. Continual improvement of methods and procedures, aimed at better
satisfaction of the customer (user) at the next stage.
Start as soon as possible to construct with deliberate speed an
organization to guide continual improvement of quality. The Shewhart
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cycle (see below) will be helpful as a procedure to follow for improvement
of any stage; also as a procedure for finding a special cause detected by
statistical signal [in a Control Chart]. The reason to study the results of a
change is to try to learn how to improve tomorrow's product, or next year'scrop. Planning requires prediction. The results of a change or test may
enhance our degree of belief for prediction, for planning. Step 4 of the
Shewhart cycle (study the results; what did we learn from the change?) will
lead:
to improvement of any stage
to better satisfaction of the customer for that stage.
Everyone can take part in a team. The aim of a team is to improve the
input and the output of any stage. A team may well be composed of people
from different staff areas. A team has a customer. Everyone on the team has
a chance to contribute ideas, plans, and figures; but anyone may expect to
find some of his best ideas submerged by consensus of the team. He may
have a good chance on the later time around the cycle. A good team has a
social memory. At successive sessions, people may tear up what they did in
the previous session and make a fresh start with clearer ideas. This is a signof advancement.
Embark on construction of organization for quality. This step will
require participation of knowledgeable statisticians. A group, a team,
should have an aim, a job, a goal. A statement thereof must not be specific
in detail, else it stifle initiative. By working in this way, everyone will see
what he can do and what only top management can do.
The focus is on the importance of a system and systems thinking. Dr.Deming defines a system as "a network of interdependent components that
work together to try to accomplish the aim of the system." He makes some
additional points about a system:
It must have an aimfor without an aim that can be no system.
The system is a "value judgment" that needs to be clear to everyone
within the system including plans for the future.
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The system's component parts need not each be clearly defined and
documented.
However, management of a system requires knowledge of these
relationships between the elements of the system and of the people whowork within it.
A system, of necessity, must be managed as it won't manage itself.
The secret is cross-functional and cross-discipline cooperation
between the elements within a systemas opposed to each of them
remaining within their own "silos"all in support of the aim or purpose of
the system.
Dr. Deming quotes St. Paul as one who2,000 years agounderstood a
system when he wrote in I Corinthians 12: 12 (NIV):
The body is a unit, though it is made up of many parts; and though all
its parts are many, they form one body Now the body is not made up of
one part but of many. If the foot should say, "Because I am not a hand, I do
not belong to the body," it would not for that reason cease to be part of the
body The eye cannot say to the hand, "I don't need you!" And the head
cannot say to the feet, "I don't need you!" On the contrary, those parts of
the body that seem to be weaker are indispensable and the parts that we
think are less honorable we treat with special honor.
But God has combined the members of the body and has given greater
honor to the parts that lacked it, so that there should be no division in the
body, but that its parts should have equal concern for each other.
If one part suffers, every part suffers with it; if one part is honored,
every part rejoices with it.
In his (now considered a classic) The Fifth Discipline, Peter Senge offers a
similar yet more succinct definition of a system and how a system is
"bound by invisible fabrics of interrelated actions " and how systems
thinking, his "fifth discipline" is so critical to organizational and personal
success.
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We can't leave a discussion of systems without also commenting on
Deming's notion of a System of Profound Knowledge (SoPK). It's
composed of four elements:
Appreciation for a System Theory of Variation
Theory of Knowledge Understanding of Psychology
Space doesn't permit much expansion on the elements but here are some
very brief explanations:
Appreciation for a system is one's understanding of the past few
paragraphs and how component parts of a system are interdependent on one
another.
Variation is based on appreciation of a "stable system" in which
variation is limited to "common cause variation" and not indicating any
"special cause variation." The latter confirms that a process or system is not
stable and needs to be redesigned to restore control of the process. Control
charts are used to make this determination.
Knowledge is based on theories that help managers predict the future
and skills to revise hypotheses to more accurately design processes andsystems to generate predictable outcomes.
Psychology brings the human element into the data interpretation
process. It's critical to temper (not tamper) data with an understanding of
the fact that people are part and parcel of systemsand their presence
needs to be recognized.
More information on SoPK is available in Dr. Deming's books as well as inpublications of the American Society for Quality.
The "Shewhart Cycle for Learning and Improvement" is more commonly
referred to as the PDSA cycle, i.e., Plan, Do, Check, Act. In Six Sigma, it's
referred to as DMIAC:
Define the problem and what it is the customer (internal or external)
expects.
Measure the defects (variation) in each process or system.
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Analyze the data and discover (root) causes of the problem. Improve
[emphasis bold] the process to eliminate defects (variation).
Control the process to be certain defects (variation) do not continue.
PDSA is best illustrated in a circular format, as depicted in Figure 1.
Conclusion
Where do we go from here with this series on continuous performance
improvement? In case you're assuming Dr. Deming's 14th and last point
concludes this series wrong!
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The W. Edwards Deming Institute is a nonprofit organization that wasfounded in 1993 by noted consultant Dr. W. Edwards Deming.
The aim of the Institute is to foster understanding of The Deming System ofProfound Knowledge to advance commerce, prosperity and peace.
Participation in The W. Edwards Deming Institute means that we shareDr. Deming's vision of a better world. We participate because we strive,with joy, to carry on the work that he began. We seek to conduct ourselvesin a manner consistent with his high moral and ethical standards,
professional and personal integrity, and commitment to lifelong learning.
We do this solely from our dedication to the philosophy and values of Dr.Deming and our belief that together, with humility, we can and will make adifference in the quality of life for everyone.