The Deming Approach

In: Business and Management

Submitted By dominik7gammon
Words 1489
Pages 6
The Deming Approach

W. Edward Deming's philosophy is one that focuses on continuous improvement at all levels of an organization for all products and services. The philosophy is articulated in Deming's 14 Points and Seven Deadly Diseases. Deming's philosophy and TQM go hand in hand. You would be hard-pressed to find a TQM implementation that did not have Deming's philosophy as part of its foundation. Deming noted the villain was variation, and variation exists in everything. Our challenge is to identify and reduce variation in order to improve the quality of the items produced or services provided.
For years, many struggled with Deming's points. Some complained that many of the points were not realistic, asking, for example, how can you run a business without using numbers? Doing so was just not possible, they said. In his 1993 book, The New Economics for Industry, Government & Education, Deming provided insight into his thinking. In the text is a chapter titled Theory of Profound Knowledge. Here, Deming outlined the basic thinking for creating change. There were some who intuitively understood his theory years before it was published. Those were the people and groups that had been successful in implementing TQM. The changes required to implement Deming's philosophy are not easy and will take time, but the rewards are worth the changes. We only need to look a Toyota to see just what can be accomplished!
For many, if not most, U.S. businesses, Deming's ideas are revolutionary and insightful. By adding the customer to the process, he took Walter Shewhart's Plan, Do, Check, Act (PDCA) plan for continuous improvement and provided us with one of the first looks at a systems approach for running a business. Refer to Figure 1.3 in the textbook for details. We can now see how a systems view can benefit everyone in the system, including the customer.
Our textbook…...

Similar Documents

Dr. W. Edwards Deming

...DR. W. EDWARDS DEMING (1900–1993) Dr. W. Edward Deming is best known for reminding management that most problems are systemic and that it is management's responsibility to improve the systems so that workers (management and non-management) can do their jobs more effectively. Deming argued that higher quality leads to higher productivity, which, in turn, leads to long-term competitive strength. The theory is that improvements in quality lead to lower costs and higher productivity because they result in less rework, fewer mistakes, fewer delays, and better use of time and materials. With better quality and lower prices, a firm can achieve a greater market share and thus stay in business, providing more and more jobs. When he died in December 1993 at the age of ninety-three, Deming had taught quality and productivity improvement for more than fifty years. His Fourteen Points, System of Profound Knowledge, and teachings on statistical control and process variability are studied by people all over the world. His books include: Out of the Crisis (1986), The New Economics (1993), and Statistical Adjustment of Data (1943). In emphasizing management's responsibility, Deming noted that workers are responsible for 10 to 20 percent of the quality problems in a factory, and that the remaining 80 to 90 percent is under management's control. Workers are responsible for communicating to management the information they possess regarding the system. Deming's approach requires an......

Words: 2950 - Pages: 12


...eliminate the "wrongs" altogether. • Use statistical control methods – not physical inspections alone – to prove that the process is working. 4. Use a single supplier for any one item. • Quality relies on consistency – the less variation you have in the input, the less variation you'll have in the output. • Look at suppliers as your partners in quality. Encourage them to spend time improving their own quality – they shouldn't compete for your business based on price alone. • Analyze the total cost to you, not just the initial cost of the product. • Use quality statistics to ensure that suppliers meet your quality standards. 5. Improve constantly and forever. • Continuously improve your systems and processes. Deming promoted the Plan-Do-Check-Act approach to process analysis and improvement. • Emphasize training and education so everyone can do their jobs better. • Use kaizen as a model to reduce waste and to improve productivity, effectiveness, and safety. 6. Use training on the job. • Train for consistency to help reduce variation. • Build a foundation of common knowledge. • Allow workers to understand their roles in the "big picture." • Encourage staff to learn from one another, and provide a culture and environment for effective teamwork. 7. Implement leadership. • Expect your supervisors and managers to understand their workers and the processes they use. • Don't simply supervise – provide support and resources so that each staff member......

Words: 686 - Pages: 3

Crosby vs Deming

...The Battle of the Gurus The Battle of the Gurus Dr. W. Edwards Deming, was an eminent scholar and teacher in American academia for more than half a century. Edwards Deming guided the rise of the Japanese industry after World War II. His expertise and skill was used to improve the war equipment quality in Japan, while at the same time revitalizing and restoring a Japanese Industry that had been broke down by the World War. He was also known to be best practitioner who device the 14 points in quality improvement. (March, 1986) Leadership roles being very important to Deming he professed 14 pints for managers to incorporate at every level of the organization. He is known for his ratio - Quality is equal to the result of work efforts over the total costs. If a company is to focus on costs, the problem is that costs rise while quality deteriorates. Deming’s quality teachings emphasized system management and quality control through the use of statistical process control charts. While Deming’s theories supported quality control, his 14 points emphasized management’s responsibility for making quality improvements. (March, 1986) Philip Crosby is an American who promoted the phrases “zero defects” and “right first time”. Zero defects doesn’t mean mistakes never happen, rather that there is no allowable number of errors built into a product or process and that you get it right first time. (Crosby, 1989) Crosby also identified a 14-step quality process......

Words: 653 - Pages: 3

Demings 14 Points

...Management Deming’ 14 Points for s Management The Secret of Success is Constancy to Purpose. Benjamin Disraeli Speech [June 24, 1872] Deming’ 14 Points s Page 1 SAGE Notes Deming’ Quality Chain Reaction s Deming’ 14 Points s Page 2 SAGE Notes Another view of the Quality Chain Reaction: Costs decrease because of less rework, fewer mistakes, delays, snags; better use of machine time and materials. Improve Quality Productivity improves Capture the market with better quality and lower price Stay inbusiness Provide jobs and more jobs "So simple!" (Deming) Deming’ 14 Points s Page 3 SAGE Notes Deming's Fourteen Points for Management: 1 Create constancy of purpose for improvement of product and services Adopt the new philosophy Cease dependence on mass inspection End the practice of awarding business on price tag alone Constantly and forever improve the systems of production and services Institute modern methods of training on the job Institute modern methods of supervision and leadership Drive out fear Break down barriers between departments 2 3 4 5 6 7 8 9 10 Eliminate numerical goals for the work force 11 Eliminate work standards and numerical quotas 12 Remove barriers to pride of workmanship 13 Institute a vigorous programme of education and training for everyone 14 Create a structure in top management that will push every day on the above 13 points. Deming’ 14 Points s Page 4 SAGE Notes Deming’......

Words: 4079 - Pages: 17

The Deming Prize

...The Deming Prize Trenton D. Merideth Keller Graduate School of Management Masters of Project Management Candidate Quality Award Paper Managing Quality – GM 588 July 24, 2010 Purpose and Background The Deming Prize is one of the foremost notable awards in the world that recognizes companies who have contributed to the development and advancement of Total Quality Management (TQM) throughout their organization. The prize was established in 1951 (some references suggest 1950) in commemoration of the late Dr. William Edwards Deming who contributed significantly to Japan’s proliferation of statistical quality control after World War II.1 In July of 1950, Dr. Deming was invited to Japan by the Union of Japanese Scientists (JUSE) and Engineers to lecture his “Eight Day Course on Quality Control” at the Auditorium of Japan Medical Association in Kanda-Surugadai, Tokyo. In addition to his “Eight Day Course on Quality Control,” Dr. Deming’s taught a “One-Day Course on Quality Control for Top Management.”1 During his stay in Japan, Dr. Deming taught the essential fundamentals of statistical quality control to company executives, managers, engineers and researchers. His theories and teachings of quality control made a tremendous impact on the participants’ and began to form the foundation of Total Quality Management in Japan, which was in its beginning stages. The transcript of the “Eight Day Course on Quality Control” was compiled from stenographic records and......

Words: 1325 - Pages: 6

Deming and His Theory

...Deming and His Theory The concept of quality has never been the same since William Edwards Deming appeared. This remarkable man is known as the most influent guru of quality management. Deming was born in October 14, 1900 at Sioux City, Iowa, The United States. He was an electrical engineer, an excellent statistician, professor, author, lecturer, and management consultant. (Wikipedia. n.d) One day he said: “It is not enough to do your best; you must know what to do, and then do your best.” (izquotes. n.d.) The previously mentioned quote introduced one of the most important views from Deming: Why do people lose a lot of time doing wrong work? If they lose time, they will lose money. The cost of quality depends on doing correct work at the first time. Now, I will present the three important parts of Deming’s life that caught my attention: his philosophy, the 14 Points, and the System of Profound Knowledge. Deming’s philosophy is based in the importance of statistical quality control and it consists in continuous improvements in product development and manufacturing processes. (Evans & Lindsay, 2008) Utilizing these thoughts, products and services will reduce the variation in design, manufacturing, and services. Consequently, the costs will decrease because of less rework and waste, fewer mistakes and delays, increased capacity, and improved utilization of resources. (Wikipedia. n.d.) Also, it is important to see the production as a whole system, where everyone works together......

Words: 1008 - Pages: 5

Principios Deming

...práctica de conceder un contrato solo por su precio El coste de un producto no es el precio de compra sino el precio de uso. Principalmente uno se da cuenta de las desventajas de esta práctica: a) Conduce a una proliferación de proveedores, ésta lleva a un deterioro gradual de la calidad b) Provocan que el comprador no tenga un vendedor fijo, pues el cliente buscará de proveedor en proveedor un producto de mejor calidad. c) Se produce una dependencia a las especificaciones y el dinero pierde su significado. Algunas empresas han malinterpretado este principio desarrollando el concepto de "Proveedor Único", disponiendo un solo proveedor para todos sus productos, cuando lo que proponía Dr. Deming era una "fuente única para cada producto". Al igual que Deming pienso que la mejor manera de servirle a un comprador es haciendo que éste confíe en uno, estableciendo una relación de lealtad y confianza, esto a la vez sirve para atraer a otros clientes pues como uno sabe, las personas hablan entre sí y comentan y si uno va a un lugar, es bien atendido y se lleva un buen producto lo lógico es que lo va a comentar y aunque sea solo por curiosidad esta personas pueden acabar como clientes. Énfasis en los beneficios a corto plazo El hacer planes a corto plazo provoca que no se cumplan los objetivos propuestos y se gaste más de lo que se debería en la organización Enfatizar en este punto suele implicar pérdidas en la calidad del producto y en el trato al cliente.......

Words: 343 - Pages: 2


...Dr. W. Edwards Deming, who believed that improved quality increases productivity and worker morale, revolutionized excellence in the Japanese production process and, thereby, guaranteed Japan a world-class reputation. He gave credence to the philosophy of TQM (Total Quality Management), meaning that defects could be reduced and quality be attained by “getting it right the first time” (Rowen). Deming began his career as a statistician and was recruited during World War II to assist with quality control for U.S. war materials. After the war, he was rejected by corporate America, so he accepted Japan’s invitation to help them change their reputation from one of cheap products to producing innovative quality products (Cohen x). Deming advised the Japanese to maintain high quality control principles, rather than copy from the American system. He believed that American industries had become lazy, and that they had incorrectly surmised that customers wanted cheap prices, rather than quality goods. According to Deming, the Americans failed to realize that by presenting an improved product, customers could attain cheap prices and a durable good at the same time. Currently, the Japanese are focused on and are known for producing excellent products. The car industry is one example. Toyota, Nissan, and other Japanese car companies are producing high quality cars at relatively cheaper prices than the U.S. brand cars. Many times, if a Japanese car is more expensive than a U.S. model,......

Words: 1577 - Pages: 7

The Deming Prize

...The Deming Prize Keller Graduate School of Management GM588 Managing Quality; Spring 2010; Session B May 2010 Purpose and Background Following World War II Japan had a lot of catching up to do with the rest of the world. Their manufacturing had been largely based on copying other’s technology and the war had cut them off from outside sources for several years. In 1946 the Union of Japanese Scientists and Engineers (JUSE) was founded thus starting the quality movement in Japan. They invited Dr. W. Edwards Deming to come and give a series of lectures on Statistical Process Control in 1950. His teachings made a profound impact on Japanese industry and his philosophies continue to have an impact today. A transcript was made of his eight day lecture series, “Dr. Deming’s Lecture on Statistical Control of Quality,” and was subsequently distributed by JUSE for a charge. Dr. Deming then donated his royalties back to JUSE. In appreciation of this the Deming Prize was founded to commemorate Dr. Deming. Categories of the Deming Prize There are three categories of the Deming Prize; The Deming Prize for Individuals, The Deming Application Prize, and The Deming Distinguished Service Award for Dissemination and Promotion. The Deming Prize for Individuals The Deming Prize for Individuals is given to individuals or groups “who have made outstanding contributions to the study of Total Quality Management (TQM) or statistical methods used for TQM, or those who have made......

Words: 1199 - Pages: 5

Deming Cycle

...The Deming Cycle also PDCA or Shewharts Cycle is a management model in four steps implemented by companies to improve their business and solve problems. Graphically it is represented as a circle as implementation requires repetition of the same process over and over again to achieve results. The circles four components are plan-act-do-check. In planning for an improvement, the goal is agreeing on what needs to be done and how it should be done. This stage involves examination of examination of work process, data, current mode of operation and problematic areas. The “Do” part involves carrying out of the problem solving plan. Next is the checking stage where the results from the implementation of the plan are analyzed and evaluated to see whether the expected outcome was achieved. During “act” if the evaluation results declare the trial successful it’s standardized and documented. However, if not what can be learnt is learnt from the fail for future service implementations. The cycle is then repeated again with new plans and strategies. Evans & Lindsay, 2010 The DMAIC is a five phased problem solving sequence. These parts include; Define, Measure, Analyze, Improve, and Control. Define is the first stage of the process in which leaders make a charter and define the high level process of the system and it’s here that they begin to understand their customer needs for the process. Measuring is a data collection point. They define the start line of the process and look for ......

Words: 370 - Pages: 2

W.Edward Deming

...W. Edwards Deming Quality Culture Mini-Paper IE 361 Dr. Stephen B. Vardeman Maggie Brown Matt Freyer Rod Parayno What follows is a brief look into the story behind and work of William Edwards Deming. Included are a brief summary of his life, his philosophies, and the impact of his efforts. The Life of William Edwards Deming Deming was born on October 14, 1900 in Sioux Falls, Iowa, but spent the majority of his youth in Powell, Wyoming. He was raised on a government granted section of farmland with one brother and two sisters ( The Deming family struggled just to survive. Deming’s parents believed in the importance of an education and stressed this to their children. His mother had studied music and his father, mathematics and law. His mother’s love of music influenced Deming’s interest in music and composition later in life. In 1917, Deming began his own education at University of Wyoming at Laramie. Four years later, he graduated with a degree in electrical engineering. Deming continued with his education, completing his master's degree in mathematics and physics from the University of Colorado, and his PhD in mathematical physics from Yale University ( After receiving his PhD, Deming was offered a position with the Western Electric Company, but decided to pursue work at the Fixed Nitrogen Research Laboratory of the U.S. Department of Agriculture instead. It was there that Deming encountered statistics and......

Words: 1666 - Pages: 7

Demings 14 Points

...Dr. Edward Deming is "the father of Statistical Quality Control, no other individual has had more influence on quality management than him. During WWII Deming taught quality control courses as part of the U.S. national defense, however he realized that teaching only engineers and factory workers would never solve the fundamental quality problems. Japan invited him to teach his theories where Deming preached the importance of top management leadership, customer/supplier partnerships, and continuous improvement in product development and manufacturing. Japan became the world leader in the automobile manufacturing industry shortly thereafter. Subsequently American car manufacturers experienced a decrease in sales. Deming was unknown in the U.S. until 1980, when NBC telecasted a program entitled "If Japan Can... Why Can't We?" The documentary highlighted Deming's contributions in Japan and his work with Nashua Corporation. Don Peterson former CEO of Ford had the opportunity to work with Dr. Deming. Peterson applied Deming’s theory at Ford. In doing so Ford's market share increased in the 1980's and overtook GM in 1988. Peterson was voted America's most effective leader. Peterson credited his success to Ford's quality transformation, prompted by Dr. Deming. Deming’s 14 points can be applied to our daily work to be more successful not only as a company but as individual's as well by getting training to improve our work, working in teams to be more efficient and......

Words: 258 - Pages: 2

The Deming Cycle

...The Deming Cycle By Paul Arveson 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. He recommended that business processes be placed in a continuous feedback loop so that managers can identify and change the parts of the process that need improvements. As a teacher, Deming created a (rather oversimplified) diagram to illustrate this continuous process, commonly known as the PDCA cycle for Plan, Do, Check, Act*: * PLAN: Design or revise business process components to improve results * 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 Deming's PDCA cycle can be illustrated as follows: Deming's focus was on industrial production processes, and the level of improvements he sought were on the level of production. In the modern post-industrial company, these kinds of improvements are still needed but the real performance drivers often occur on the level of business strategy. Strategic deployment is another process, but it has relatively longer-term variations because large companies cannot change as rapidly as small business units. Still, strategic initiatives can and should be placed in a feedback loop, complete with measurements and planning linked in a PDCA cycle. To illustrate the......

Words: 1652 - Pages: 7


...STRATEGIC HUMAN RESOURCE MANAGEMENT AN OVERVIEW OF HR STRATEGY PERSPECTIVES 1 WHAT WE DO Serious business consultancy, better training, executive coaching, project management – Keynote Speaking, Business satire, TV, Radio – 2 1. BEST FIT APPROACH HR practices must fit well with other aspects of the organisation to be effective The strategic position of the organisation may determine which practices to adopt 3 BEST FIT MODEL Environmental triggers integration Strategic Strategic objectives HR strategies Cultural change Structural changes Job/role profiling Individual attitudes , behaviours Competence-based HR policies ad practices The six pack - key levers Internal integration integration External 4 2. BEST PRACTICE APPROACH TO SHRM Greater use of the same HR practices, pursued collectively and consistently, will always result in better performance All organisations would benefit from adopting these practices 5 BEST PRACTICE HR ELEMENTS Careful recruitment and selection Extensive use of communications Teamwork with flexible job design Strong emphasis on training Involvement in decision-making with responsibility Performance appraisal with links to pay Fluid and adaptive organisational structure High quality staff and internal practices to achieve high quality products Optimal employee commitment to enterprise goals 6 GUEST’S BEST PRACTICE MODEL HRM Policies HRM......

Words: 459 - Pages: 2


...Deming vs. Crosby The act of overseeing all activities and tasks needed to maintain a desired level of excellence is the meaning of quality but no one person has pioneered the meaning of quality more than Philip Crosby and Edward Deming. Organizations of all types, sizes, and demography put a huge amount of time, effort, and money into quality in order to improve their competitive advantage. They also know that nothing can improve their overall productivity while reducing their operating cost if they don’t have a solid quality management process in place. Philip Crosby and Edward Deming are two experts who transcended the word “Quality” and brought it not only to US based companies but, also other companies that operate in the global marketplace. In summarizing and comparing Deming and Crosby’s contrasting strategies for quality management you will find that although being from two different genres, their intrinsic meaning and approach to quality management was quite similar. DEMING The fundamental point in Deming’s theory is basically “The Customer is King” and is the most important part of the production system and value chain. Deming’s approach was simple and didn’t require a lot of thought. The customer should be the most essential point of focus for any business, besides if there was no customer, there would be really no reason for the business to produce a product or service. This type of focus would spawn a very important question to an organization......

Words: 412 - Pages: 2