William Edwards Deming
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)
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.
Ford Motor Company was simultaneously
manufacturing a car model with transmissions made in Japan and the
United States. Soon after the car model was on the market, Ford
customers were requesting the model with Japanese transmission over the
USA-made transmission, and they were willing to wait for the Japanese
model. As both transmissions were made to the same specifications, Ford
engineers could not understand the customer preference for the model
with Japanese transmission. It delivered smoother performance with a
lower defect rate. Finally, Ford engineers decided to take apart the two
different transmissions. The American-made car parts were all within
specified tolerance levels. On the other hand, the Japanese car parts
had much closer tolerances than the USA-made parts - i.e. if a part was
supposed to be one foot long, plus or minus 1/8 of an inch - then the
Japanese parts were within 1/16 of an inch. This made the Japanese cars
run more smoothly and customers experienced fewer problems. This is an
example of Dr. Deming's teachings, having been adopted by the Japanese,
delivering better quality products .
Deming was born in Sioux City, Iowa. He
received a B.S. 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). Both graduate degrees were in
mathematics and physics. Deming had an internship at Bell Telephone
Laboratories while studying at Yale. He subsequently worked at the U.S.
Department of Agriculture and the Census Department. While working under
Gen. Douglas MacArthur as a census consultant to the Japanese
government, he famously taught statistical process control methods to
Japanese business leaders, returning to Japan for many years to consult
and to witness economic growth that he had predicted as a result of
application of techniques learned from Walter Shewhart at Bell
Laboratories. Later, he became a professor at New York University while
engaged as an independent consultant in Washington, D.C.
Deming was the author of Out of the
Crisis (1982–1986) and The New Economics for Industry, Government,
Education (1993), which includes his System of Profound Knowledge™ and
the 14 Points for Management (described below). Deming played flute &
drums and composed music throughout his life, including sacred choral
compositions and an arrangement of The Star Spangled Banner.
In 1993, Deming founded the W. Edwards
Deming Institute in Washington, D.C., where the Deming Collection at the
U.S. Library of Congress includes an extensive audiotape and videotape
archive. The aim of the W. Edwards Deming Institute is to foster
understanding of The Deming System of Profound Knowledge™ to advance
commerce, prosperity and peace.
Early life and work of Edwards Deming
Born in Sioux City, Iowa, Deming was
raised in Polk City, Iowa on his grandfather's chicken farm, then later
in Powell, Wyoming. His father's name was also William, so he was called
Edwards (the maiden name of his mother, Pluma Irene Edwards). In 1917,
he enrolled in the University of Wyoming at Laramie, graduating in 1921
with a B.S. in electrical engineering. In 1925, he received an M.S. from
the University of Colorado, and in 1928, a Ph.D.Yale University. Both
graduate degrees were in mathematics and mathematical physics. Deming
worked as a mathematical physicist at the United States Department of
Agriculture (1927–39), and was a statistical adviser for the United
States Census Bureau (1939–45). He was a professor of statistics at New
York University's graduate school of business administration
(1946–1993), and he taught at Columbia University's graduate School of
business (1988–1993). He also was a consultant for private business.
from
In 1927, Deming was introduced to
Walter A. Shewhart of the Bell Telephone Laboratories by Dr. C.H.
Kunsman of the United States Department of Agriculture (USDA). Deming
found great inspiration in the work of Shewhart, the originator of the
concepts of statistical control of processes and the related technical
tool of the control chart, as Deming began to move toward the
application of statistical methods to industrial production and
management. Shewhart's idea of common and special causes of variation
led directly to Deming's theory of management. Deming saw that these
ideas could be applied not only to manufacturing processes but also to
the processes by which enterprises are led and managed. This key insight
made possible his enormous influence on the economics of the
industrialized world after 1950.
Deming edited a series of lectures
delivered by Shewhart at USDA, Statistical Method from the Viewpoint of
Quality Control, into a book published in 1939. One reason he learned so
much from Shewhart, Deming remarked in a videotaped interview, was that,
while brilliant, Shewhart had an "uncanny ability to make things
difficult." Deming thus spent a great deal of time both copying
Shewhart's ideas and devising ways to present them with his own twist.
Deming developed the sampling
techniques that were used for the first time during the 1940 U.S.
Census. During World War II, Deming was a member of the five-man
Emergency Technical Committee. He worked with H.F. Dodge, A.G. Ashcroft,
Leslie E. Simon, R.E. Wareham, and John Gaillard in the compilation of
the American War Standards (American Standards Association ZI.1-3
published in 1942) and taught statistical process control (SPC)
techniques to workers engaged in wartime production. Statistical methods
were widely applied during World War II, but faded into disuse a few
years later in the face of huge overseas demand for American
mass-produced products.
Work in Japan
In 1947, Deming was involved in early
planning for the 1951 Japanese Census. The Allied powers were occupying
Japan, and he was asked by the U.S. United States Department of the Army
to assist with the census. While Deming was there, his expertise in
quality control techniques, combined with his involvement in Japanese
society, led to his receiving an invitation from the Japanese Union of
Scientists and Engineers (JUSE).
JUSE members had studied Shewhart's
techniques, and as part of Japan's reconstruction efforts, they sought
an expert to teach statistical control. During June–August 1950, Deming
trained hundreds of engineers, managers, and scholars in statistical
process control (SPC) and concepts of quality. He also conducted at
least one session for top management. Deming's message to Japan's chief
executives: improving quality will reduce expenses while increasing
productivity and market share. Perhaps the best known of these
management lectures was delivered at the Mt. Hakone Conference Center in
August of 1950.
A number of Japanese manufacturers
applied his techniques widely and experienced theretofore unheard of
levels of quality and productivity. The improved quality combined with
the lowered cost created new international demand for Japanese products.
Deming declined to receive royalties
from the transcripts of his 1950 lectures, so JUSE's board of directors
established the Deming Prize (December 1950) to repay him for his
friendship and kindness. 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 and quality management in Japan.
Honors of William Edwards Deming
In 1960, the Prime Minister of Japan
(Nobusuke Kishi), acting on behalf of Emperor Hirohito, awarded Dr.
Deming Japan’s Order of the Sacred Treasure, Second Class. The citation
on the medal recognizes Deming's contributions to Japan’s industrial
rebirth and its worldwide success. The first section of the meritorious
service record describes his work in Japan:
-
- 1947, Rice Statistics Mission
member
- 1950, assistant to the Supreme
Commander of the Allied Powers
- instructor in sample survey
methods in government statistics
The second half of the record lists his
service to private enterprise through the introduction of epochal ideas,
such as quality control and market survey techniques.
Later work in the U.S.
David Salsburg wrote:
- "He was known for his kindness to
and consideration for those he worked with, for his robust, if very
subtle, humor, and for his interest in music. He sang in a choir,
played drums and flute, and published several original pieces of
sacred music."
Later, from his home in Washington,
D.C., Dr. Deming continued running his own consultancy business in the
United States, largely unknown and unrecognized in his country of origin
and work. In 1980, he was featured prominently in an NBC documentary
titled If Japan can... Why can't we? about the increasing industrial
competition the United States was facing from Japan. As a result of the
broadcast, demand for his services increased dramatically, and Deming
continued consulting for industry throughout the world until his death
at the age of 93.
Ford Motor Company was one of the first
American corporations to seek help from Deming. In 1981, Ford recruited
Deming to help jump-start its quality movement. Ford's sales were
falling. Between 1979 and 1982, Ford had incurred $3 billion in losses.
Deming questioned the company's culture and the way its managers
operated. To Ford's surprise, Deming talked not about quality but about
management. He told Ford that management actions were responsible for
85% of all problems in developing better cars. After 1982, Ford came out
with a profitable line of cars, the Taurus-Sable line. In a letter to
Autoweek Magazine, Donald Petersen, then Ford Chairman, said, "We are
moving toward building a quality culture at Ford and the many changes
that have been taking place here have their roots directly in Dr.
Deming's teachings." By 1986, Ford had become the most profitable
American auto company. For the first time since the 1920s, its earnings
had exceeded those of arch rival General Motors (GM). Ford had come to
lead the American automobile industry in improvements. Ford's following
years' earnings confirmed that its success was not a fluke, for its
earnings continued to exceed GM and Chrysler's.
In 1982, Dr. Deming, as author, had his
book published by the MIT Center for Advanced Engineering as Quality,
Productivity, and Competitive Position, which was renamed Out of the
Crisis in 1986. Deming offers a theory of management based on his famous
14 Points for Management. Management's failure to plan for the future
brings about loss of market, which brings about loss of jobs. Management
must be judged not only by the quarterly dividend, but by innovative
plans to stay in business, protect investment, ensure future dividends,
and provide more jobs through improved products and services. "Long-term
commitment to new learning and new philosophy is required of any
management that seeks transformation. The timid and the fainthearted,
and the people that expect quick results, are doomed to disappointment."
Over the course of his career, Deming
received dozens of academic awards, including another, honorary, Ph.D.
from Oregon State University. In 1987 he was awarded the National Medal
of Technology: "For his forceful promotion of statistical methodology,
for his contributions to sampling theory, and for his advocacy to
corporations and nations of a general management philosophy that has
resulted in improved product quality." In 1988, he received the
Distinguished Career in Science award from the National Academy of
Sciences.
In 1993, Dr. Deming published his final
book, The New Economics for Industry, Government, Education, which
included the System of Profound Knowledge™ and the 14 Points for
Management. It also contained educational concepts involving group-based
teaching without grades, as well as management without individual merit
or performance reviews.
In December 1993, W. Edwards Deming
died in his sleep at his Washington home at about 3 a.m. due to "natural
causes." His family was by his side when he died.
Deming philosophy synopsis
The philosophy of W. Edwards Deming has
been summarized as follows:
- "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). The key is to practice continual improvement and think of
manufacturing as a system, not as bits and pieces."
In the 1970s, Dr. Deming's philosophy
was summarized by some of his Japanese proponents with the following
'a'-versus-'b' comparison:
- (a) When people and organizations
focus primarily on quality, defined by the following ratio,
-
-

- quality tends to increase and
costs fall over time.
- (b) However, when people and
organizations focus primarily on costs (often dominant/typical human
behavior), costs (due to not minimizing waste, ignoring amount of
rework occurring, taking staff for granted, not rapidly resolving
disputes, and failing to notice lack of product improvement—plus,
over time, loss of customer loyalty) tend to rise and quality
declines over time.
The Deming System of Profound
Knowledge
"The prevailing style of management
must undergo transformation. A system cannot 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;
and
- Help people to pull away from
their current practices and beliefs and move into the new philosophy
without a feeling of guilt about the past."
Deming advocated that all managers need
to have what he called a System of Profound Knowledge, consisting of
four parts:
- Appreciation of a system:
understanding the overall processes involving suppliers, producers,
and customers (or recipients) of goods and services (explained
below);
- 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 the limits of what can be known;
- Knowledge of psychology: concepts
of human nature.
Deming explained, "One need not be
eminent in any part nor in all four parts in order to understand it and
to apply it. The 14 points for management in industry, education, and
government follow naturally as application of this outside knowledge,
for transformation from the present style of Western management to one
of optimization."
"The various segments of the system of
profound knowledge proposed here cannot be separated. They interact with
each other. Thus, knowledge of psychology is incomplete without
knowledge of variation.
"A manager of people needs to
understand that all people are different. This is not ranking people. He
needs to understand that the performance of anyone is governed largely
by the system that he works in, the responsibility of management. A
psychologist that possesses even a crude understanding of variation as
will be learned in the experiment with the Red Beads (Ch. 7) could no
longer participate in refinement of a plan for ranking people."
The Appreciation of a system involves
understanding how interactions (i.e. feedback) between the elements of a
system can result in internal restrictions that force the system to
behave as a single organism that automatically seeks a steady state. It
is this steady state that determines the output of the system rather
than the individual elements. Thus it is the structure of the
organization rather than the employees, alone, which holds the key to
improving the quality of output.
The Knowledge of variation involves
understanding that everything measured consists of both "normal"
variation due to the flexibility of the system and of "special causes"
that create defects. Quality involves recognizing the difference in
order to eliminate "special causes" while controlling normal variation.
Deming taught that making changes in response to "normal" variation
would only make the system perform worse. Understanding variation
includes the mathematical certainty that variation will normally occur
within six standard deviations (thus six sigma: the symbol for standard
deviation) of the mean.
The System of Profound Knowledge™ is
the basis for application of Deming's famous 14 Points for Management,
described below.
Deming's 14 points
Deming offered fourteen key principles
for management for transforming business effectiveness. In summary:
- Create constancy of purpose toward
improvement of a product and service with a plan to become
competitive and stay in business. Decide to whom top management is
responsible.
- Adopt the new philosophy. We are
in a new economic age. We can no longer live with commonly accepted
levels of delays, mistakes, defective materials, and defective
workmanship.
- Cease dependence on mass
inspection. Require, instead, statistical evidence that quality is
built in. (prevent defects instead of detect defects.)
- End of the practice of awarding
business on the basis of price tag. Instead, depend on meaningful
measures of quality along with price. Eliminate suppliers that
cannot qualify with statistical evidence of quality.
- Find Problems. It is a
management’s job to work continually on the system (design, incoming
materials, composition of material, maintenance, improvement of
machine, training, supervision, retraining)
- Institute modern methods of
training on the job
- The responsibility of the foreman
must be to change from sheer numbers to quality… [which] will
automatically improve productivity. Management must prepare to take
immediate action on reports from the foremen concerning barriers
such as inherent defects, machines not maintained, poor tools, and
fuzzy operational definitions.
- Drive out fear, so that everyone
may work effectively for the company.
- Break down barriers between
departments. People in research, design, sales and production must
work as a team to foresee problems of production that may be
encountered with various materials and specifications.
- Eliminate numerical goals,
posters, slogans for the workforce, asking for new levels of
productivity without providing methods.
- Eliminate work standards that
prescribe numerical quotas.
- Remove barriers that stand between
the hourly worker and his right of pride of workmanship.
- Institute a vigorous program of
education and retraining.
- Create a structure in top
management that will push every day on the above 13pts.
Seven Deadly Diseases
The Seven Deadly Diseases:
- Lack of constancy of purpose.
- Emphasis on short-term profits.
- Evaluation by performance, merit
rating, or annual review of performance.
- Mobility of management.
- Running a company on visible
figures alone.
- Excessive medical costs.
- Excessive costs of warranty,
fueled by lawyers who work for contingency fees.
A Lesser Category of Obstacles:
- Neglecting long-range planning.
- Relying on technology to solve
problems.
- Seeking examples to follow rather
than developing solutions.
- Excuses, such as "Our problems are
different."
Quotations and concepts of William
Edwards Deming
In his later years, Dr. Deming taught
many concepts, which he emphasized by key sayings or quotations that he
repeated. A number of these quotes have been recorded. Some of the
concepts might seem to be oxymorons or contradictory to each other;
however, the student is given each concept to ponder its meaning in the
whole system, over time. Some phrases below might appear repetitious,
but consider not only the phrase, but also the situation when applied:
- "There is no substitute for
knowledge." This statement emphasizes the need to know more, about
everything in the system. It is considered as a contrast to the old
statement, "There is no substitute for hard work" by Thomas Alva
Edison (1847–1931). Instead, a small amount of knowledge could save
many hours of hard work, just as knowing a password could save hours
trying to remember or getting the password reauthorized or reset.
- "The most important things cannot
be measured." The issues that are most important, long term, cannot
be measured in advance. However, they might be among the factors
that an organization is measuring, just not understood as most
important at the time.
- "The most important things are
unknown or unknowable." The factors that have the greatest impact,
long term, can be quite surprising. Analogous to an earthquake that
disrupts service, other "earth-shattering" events that most affect
an organization will be unknown or unknowable, in advance. Other
examples of important things would be: a drastic change in
technology, or new investment capital.
- "Experience by itself teaches
nothing."This statement emphasizes the need to interpret and apply
information against a theory or framework of concepts that is the
basis for knowledge about a system. It is considered as a contrast
to the old statement, "Experience is the best teacher" (Dr. Deming
disagreed with that). To Dr. Deming, knowledge is best taught by a
master who explains the overall system through which experience is
judged; experience, without understanding the underlying system, is
just raw data that can be misinterpreted against a flawed theory of
reality. Deming's view of experience is related to Shewhart's
concept, "Data has no meaning apart from its context".
- "By what method?... Only the
method counts." When information is obtained, or data is measured,
the method, or process used to gather information, greatly affects
the results. For example, the "Hawthorne effect" showed that people
just asking frequently for opinions seemed to affect the resulting
outcome, since some people felt better just being asked for their
opinion. Dr. Deming warned that basing judgments on customer
complaints alone ignored the general population of other opinions,
which should be judged together, such as in a statistical sample of
the whole, not just isolated complaints: survey the entire group
about their likes and dislikes. The extreme complaints might not
represent the attitudes of the whole group. Similarly, measuring or
counting data depends on the instrument or method used.
- "You can expect what you inspect."
Dr. Deming emphasized the importance of measuring and testing to
predict typical results. If a phase consists of inputs + process +
outputs, all 3 are inspected to some extent. Problems with inputs
are a major source of trouble, but the process using those inputs
can also have problems. By inspecting the inputs and the process
more, the outputs can be better predicted, and inspected less.
Rather than use mass inspection of every output product, the output
can be statistically sampled in a cause-effect relationship through
the process.
- "Special Causes and Common
Causes": Dr. Deming considered anomalies in quality to be variations
outside the control limits of a process. Such variations could be
attributed to one-time events called "special causes" or to repeated
events called "common causes" that hinder quality.
- Acceptable Defects: Rather than
waste efforts on zero-defect goals, Dr. Deming stressed the
importance of establishing a level of variation, or anomalies,
acceptable to the recipient (or customer) in the next phase of a
process. Often, some defects are quite acceptable, and efforts to
remove all defects would be an excessive waste of time and money.
-
The Deming Cycle (or
Shewhart Cycle): As a repetitive process to
determine the next action,
The Deming Cycle describes a simple method to test information
before making a major decision. The 4 steps in the Deming Cycle are:
Plan-Do-Check-Act (PDCA),
also known as Plan-Do-Study-Act or PDSA. Dr. Deming called the cycle
the Shewhart Cycle, after Walter A. Shewhart. The cycle can be used
in various ways, such as running an experiment: PLAN (design) the
experiment; DO the experiment by performing the steps; CHECK the
results by testing information; and ACT on the decisions based on
those results.
- Semi-Automated, not Fully
Automated: Dr. Deming lamented the problem of automation gone awry
("robots painting robots"): instead, he advocated human-assisted
semi-automation, which allows people to change the semi-automated or
computer-assisted processes, based on new knowledge. Compare to
Japanese term 'jidoka' (which can be loosely translated as
"automation with a human touch").
- "The problem is at the top;
management is the problem." Dr. Deming emphasized that the top-level
management had to change to produce significant differences, in a
long-term, continuous manner. As a consultant, Deming would offer
advice to top-level managers, if asked repeatedly, in a continuous
manner.
- "What is a system? A system is a
network of interdependent components that work together to try to
accomplish the aim of the system. A system must have an aim. Without
an aim, there is no system. The aim of the system must be clear to
everyone in the system. The aim must include plans for the future.
The aim is a value judgment. (We are of course talking here about a
man-made system.)"
- "A system must be managed. It will
not manage itself. Left to themselves in the Western world,
components become selfish, competitive. We can not afford the
destructive effect of competition."
- "To successfully respond to the
myriad of changes that shake the world, transformation into a new
style of management is required. The route to take is what I call
profound knowledge—knowledge for leadership of transformation."
- "The worker is not the problem.
The problem is at the top! Management!" Management’s job. It is
management’s job to direct the efforts of all components toward the
aim of the system. The first step is clarification: everyone in the
organization must understand the aim of the system, and how to
direct his efforts toward it. Everyone must understand the damage
and loss to the whole organization from a team that seeks to become
a selfish, independent, profit centre."
- "They realized that the gains that
you get by statistical methods are gains that you get without new
machinery, without new people. Anybody can produce quality if he
lowers his production rate. That is not what I am talking about.
Statistical thinking and statistical methods are to Japanese
production workers, foremen, and all the way through the company, a
second language. In statistical control, you have a reproducible
product hour after hour, day after day. And see how comforting that
is to management, they now know what they can produce, they know
what their costs are going to be."
- "I think that people here expect
miracles. American management thinks that they can just copy from
Japan—but they don't know what to copy!"
- "What is the variation trying to
tell us about a process, about the people in the process?" Dr.
Shewhart created the basis for the control chartnormal distribution
curve" (a Gaussian distribution, also commonly referred to as a
"bell curve"). He discovered that observed variation in
manufacturing data did not always behave the same way as data in
nature (Brownian motion of particles). Dr. Shewhart concluded that
while every process displays variation, some processes display
controlled variation that is natural to the process, while others
display uncontrolled variation that is not present in the process
causal system at all times. Dr. Deming renamed these distinctions
"common cause" for chance causes and "special cause" for assignable
causes. He did this so the focus would be placed on those
responsible for doing something about the variation, rather than the
source of the variation. It is top management’s responsibility to
address "common cause" variation, and therefore it is management’s
responsibility to make improvements to the whole system. Because
"special cause" variation is assignable, workers, supervisors or
middle managers that have direct knowledge of the assignable cause
best address this type of specific intervention. and the concept of
a state of statistical control by carefully designed experiments.
While Dr. Shewhart drew from pure mathematical statistical theories,
he understood that data from physical processes never produce a "
- (Deming on Quality Circles)
"That's all window dressing. That's not fundamental. That's not
getting at change and the transformation that must take place. Sure
we have to solve problems. Certainly stamp out the fire. Stamp out
the fire and get nowhere. Stamp out the fires puts us back to where
we were in the first place. Taking action on the basis of results
without theory of knowledge, without theory of variation, without
knowledge about a system. Anything goes wrong, do something about
it, overreacting; acting without knowledge, the effect is to make
things worse. With the best of intentions and best efforts, managing
by results is, in effect, exactly the same, as Dr. Myron Tribus put
it, while driving your automobile, keeping your eye on the rear view
mirror, what would happen? And that's what management by results is,
keeping your eye on results."
- "Knowledge is theory. We should be
thankful if action of management is based on theory. Knowledge has
temporal spread. Information is not knowledge. The world is drowning
in information but is slow in acquisition of knowledge. There is no
substitute for knowledge." This statement emphasizes the need for
theory of knowledge (see: epistemology, Shewhart cycle, C. I.
Lewis).
- "Experience by itself teaches
nothing." "Without theory, experience has no meaning. Without
theory, one has no questions to ask. Hence, without theory, there is
no learning."These statements emphasize the need to interpret
information using a theory or framework of concepts for learning to
take place, theory of knowledge. Deming's view of experience is
related to Shewhart's concept, "Data has no meaning apart from its
context".
- "The most important figures that
one needs for management are unknown or unknowable (Lloyd S. Nelson,
director of statistical methods for the Nashua corporation), but
successful management must nevertheless take account of them."
Deming realized that many important things that must be managed
couldn’t be measured. Both points are important. One, not everything
of importance to management can be measured. And two, you must still
manage those important things. Spend $20,000 training 10 people in a
special skill. What's the benefit? "You'll never know," answered
Deming. "You'll never be able to measure it. Why did you do it?
Because you believed it would pay off. Theory." Dr. Deming is often
incorrectly quoted as saying, "You can't manage what you can't
measure." In fact, he stated that one of the seven deadly diseases
of management is running a company on visible figures alone.
- "By what method?" When information
is obtained, or data is measured, the method, or process used to
gather information, affects the results. Dr. Deming warned that
basing judgments on customer complaints alone ignored the general
population of other opinions, which should be judged together, such
as in a statistical sample of the whole (Sampling (statistics)).
Changing the method changes the results. Aim and method are
essential. An aim without a method is useless. A method without an
aim is dangerous. It leads to action without direction and without
constancy of purpose. Deming used an illustration of washing a table
to teach a lesson about the relationship between purpose and method.
If you tell someone to wash a table, but not the reason for washing
it, they cannot do the job properly (will the table be used for
chopping food or potting plants?). That does not mean just giving
the explanation without an operational definition. The information
about why the table needs to be washed, and what is to be done with
it, makes it possible to do the job intelligently.
References
http://en.wikipedia.org/wiki/W._Edwards_Deming
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