( ) “ It would be better if everyone would work together as a system, with the aim for everybody to win.”

Interesting Facts Born in Sioux City, Iowa Born in Sioux City, Iowa met Dr. Walter Shewhart, met Dr. Walter Shewhart, received a Ph.D in Physics from Yale received a Ph.D in Physics from Yale 1939 – Head Mathematician – National Bureau of Census 1939 – Head Mathematician – National Bureau of Census During WW II worked with Shewhart on improvement of quality of production or weapons using statistical methods During WW II worked with Shewhart on improvement of quality of production or weapons using statistical methods

Statistics professor – NY University Statistics professor – NY University 1947 – invited by General MacArthur to come to Japan as part of his economic and scientific staff in rebuilding Japan 1947 – invited by General MacArthur to come to Japan as part of his economic and scientific staff in rebuilding Japan 1950 – invited to return to Japan by Japanese Union of Scientists and Mathematicians to teach methods for achievement of quality 1950 – invited to return to Japan by Japanese Union of Scientists and Mathematicians to teach methods for achievement of quality Jan began a series of lectures to every single top manager in Japan Jan began a series of lectures to every single top manager in Japan 1974 – meeting with William Conway 1974 – meeting with William Conway June 24, 1980 – NBC’s show If Japan Can… Why Can’t We? aired to 14 million people – later became NBC’s most requested video of all time June 24, 1980 – NBC’s show If Japan Can… Why Can’t We? aired to 14 million people – later became NBC’s most requested video of all time

Third Wave of the Industrial Revolution *** He taught an average of ten 4-day seminars per year between 1980 and 1993 reaching over 200,000 managers. He taught an average of ten 4-day seminars per year between 1980 and 1993 reaching over 200,000 managers. Almost every top manager in the country was exposed to his teachings during those years Almost every top manager in the country was exposed to his teachings during those years Upon Deming’s death in 1993 in one obituary it was written that Deming’s reply to writer for how he wanted to be remembered was - Upon Deming’s death in 1993 in one obituary it was written that Deming’s reply to writer for how he wanted to be remembered was - “Well, maybe… as someone who spent his life trying to keep America from committing suicide. ***- Deming and Goldratt by Lepore and Cohen pg 151

Basic message: The cause of inefficiency and poor quality is the system, not the employees and it is management’s responsibility to correct the system in order to achieve desired results. The cause of inefficiency and poor quality is the system, not the employees and it is management’s responsibility to correct the system in order to achieve desired results.

Message to Japanese Management 1. Production must be seen as a system encompassing customers and suppliers in a win- win situation. –Customer is the most important part of the system –Suppliers are partners 2. Quality is made in the boardroom – never blame the workers. 3. Improving a process creates a chain reaction. 4. Continuous learning and improvement follow the PCDA (Shewhart) cycle. 5. There is a need for trust and cooperation between companies. Anything new learned in one company must be shared with all including competitors.

One can say that the content of my seminars… and the content of my books… are based in large part on my understanding of Shewhart’s teaching. Even if only ten percent of the listeners absorb part of Dr. Shewhart’s teachings, the number may in time bring about change in the style of Western management. – Dr. Deming Reducing variability in production will improve quality. Two types of variation: Two types of variation: –Common causes –Special causes Statistical control – a process needs to be in a stable state with identifiable action limits Statistical control – a process needs to be in a stable state with identifiable action limits

Key Deming Tools Deming did not teach statistical tools – he taught how to interpret them and their implications to the system. Deming Chain Reaction Deming Chain Reaction PDCA Cycle PDCA Cycle Theory of Profound Knowledge & 14 Point Philosophy Theory of Profound Knowledge & 14 Point Philosophy “The control chart is no substitute for the brain.” – Dr. Deming

Deming Chain Reaction “Quality improvement is not a costly business option but a strategic imperative that is essential to business survival” Quality Cost Productivity

Conveys the sequential and continual nature of CI Plan Do Check Act Plan Do Check Act

Theory of Profound Knowledge - knowledge for leadership of transformation 1. Appreciation for a system –A network of interdependent components that work together to try to accomplish the aim of the system. Without aim there is no system. 2. Knowledge of variation –Understanding where the processes are stable 3. Theory of knowledge –Predicting and anticipating what will happen if certain actions are taken 4. Psychology of individuals, society and change. –Appreciate people’s natural inclination toward learning and being innovative.

Deming's 14 Points for Management 1. Constancy of Purpose 2. The New Philosophy 3. Cease dependence on mass inspection 4. End lowest cost tender contracts 5. Improve every process 6. Institute training on the job 7. Institute leadership

8. Drive out fear. 9. Break down barriers. 10. Eliminate exhortations. 11. Eliminate arbitrary numerical targets. 12. Permit pride of workmanship. 13. Encourage education 14. Top management commitment and action.