Dr. William Edwards Deming – The Father of The Quality Evolution

Introduction

Dr. William Edwards Deming, a prominent American statistician, business consultant, and educator, has made indelible contributions to the world of modern businesses and effective management techniques. Born in Sioux City on October 14, 1900, Deming's journey through academia and various professional roles led him to formulate groundbreaking principles that continue to influence contemporary management practices.

Deming's Academic and Professional Path

Deming's educational journey included stints at the University of Wyoming, where he earned his B.S. in 1921, the University of Colorado, where he obtained his MS in 1924, and Yale University, where he earned his Ph.D. in mathematical physics. His early career involved teaching physics at universities and working as a mathematical physicist in the U.S. Department of Agriculture in 1927. Later, in 1939, he served as a statistical adviser at the U.S. Census Bureau. Transitioning into the world of business, Deming assumed the roles of a business consultant and statistics professor at New York University's graduate school of business administration from 1946 to 1993. In 1986, he was honored as a distinguished professor in management at Columbia University. Just before his passing in 1993, Deming founded the W. Edwards Deming Institute, securing his legacy in the field of management.

The Birth of Deming's Principles

Deming's journey into formulating his influential principles began in the 1930s, driven by his fascination with improving quality control through statistical analysis. Inspired by the work of Walter Shewhart, who explored statistical techniques in manufacturing processes, Deming aimed to apply these methods to clerical, administrative, and management activities. His first application of statistical process control at the U.S. Census Bureau in 1939 increased productivity six-fold. He also shared his knowledge by teaching engineering and design courses, spreading the ideas of statistical process control. Deming's training program at Stanford, employing Shewhart's Cycle for Learning and Improvement and the PDCA Cycle, educated nearly 2000 individuals.

Transformation in Japan

The initial recognition and widespread adoption of Deming's methods occurred in Japan. In the aftermath of World War II, Japan's economy was in shambles, prompting Japanese business leaders to invite Deming in 1950 to educate executives about his quality control methods. The implementation of his techniques led to Japanese firms dominating global product markets. In contrast, the United States, the world's leading economic power at the time, initially rejected his ideas. However, by the 1980s, the U.S. recognized the benefits of Deming's methods in revitalizing and enhancing the Japanese economy, leading to their widespread adoption.

The Essence of Deming's Methods

Central to Deming's approach is a profound focus on the significance of variation. In his book "Out of the Crisis," he emphasized, "The central problem in management and in leadership... is failure to understand the information in variation." This emphasis gave rise to his theory of variation, highlighting that special variation causes are usually attributed to readily observable factors, while common causes persist even after eliminating special causes. Managers are uniquely positioned to address common causes, although workers engaged in the process often identify them more easily.

Deming's ideas evolved into his "14 Points for Management," initially presented in "Out of the Crisis." These points revolutionized business management, especially for long-term goals, becoming Japan's prevailing modus operandi after the assimilation of his teachings. As Deming himself stated in "The New Economics," these 14 points naturally follow as an application of the System of Profound Knowledge for transforming management from its existing style to one of optimization. Deming's enduring legacy continues to shape the world of management and quality control in today's business landscape.

Dr. Deming directed his attention squarely at U.S. industry management when he devised his "seven deadly diseases of management." These principles not only established him as a pioneer of the Quality Management movement but also resonated with a broader audience beyond those solely interested in general quality.

The first of these deadly diseases identified by Deming was a lack of constancy of purpose in organizing services to create a market for company productivity. The second disease manifested as an excessive emphasis on short-term profits, driven by the need for dividends and the fear of hostile takeovers. The third ailment lay in the practice of performance reviews and annual evaluations. The fourth disease allowed flexibility in managers and job specifications. The fifth disease revolved around relying solely on available data for management decisions. The sixth malady pointed to the burden of high medical costs, while the seventh and final disease highlighted the issue of high liability costs.

The Deming Cycle - A Modification of PDCA

Drawing from Walter Shewhart's Plan-Do-Check-Act (PDCA) Cycle, Deming introduced the Deming cycle, also known as the Deming wheel. This cycle involved Planning for improvements, executing the changes minimally for testing in the Doing phase, Checking to determine the effectiveness of the changes and selected processes, and finally, Acting to maximize the benefits derived from the change. These steps were designed to be repeated in a continuous cycle to facilitate ongoing improvement.

Criticism and Relevance

While Deming's principles proved invaluable in the revival of Japan's economy, some critics questioned their applicability in diverse circumstances. Detractors argued that Deming's approach leaned too heavily on statistics, potentially stifling creativity and innovation. His exclusion of Management by Objectives and performance reviews left some individuals uncertain. Additionally, some attributed increased downsizing to his cost-reduction focus. Resistance to incorporating Deming's methods in U.S. industries was partly due to the contrast in cultural tendencies between American businesses, which often favored short-term goals and focus, and their Japanese counterparts.

Despite varying opinions on the effectiveness of his principles, Deming's theories remain relevant in today's management culture. They continue to be debated and taught in business schools worldwide. Moreover, his 14 points collectively form a management philosophy encompassing two major schools of thought: hard scientific management and soft human relations management, successfully bridging the gap between them.

For those interested in delving deeper into Deming's principles, the W. Edwards Deming Institute offers seminars. A recent three-day course in April comprised eight-hour sessions on the first two days and a four-hour session on the third day. The cost for an individual or the first person in a group was $1,100, with each additional participant priced at $950. These seminars are conducted at locations designated by the Deming Institute, such as the one held in Tipp City, Ohio. The W. Edwards Deming Institute itself is headquartered in Rockville, Maryland, serving as a hub for knowledge and education in Deming's profound management principles.

Conclusion

In conclusion, Dr. William Edwards Deming's contributions to the field of management have had a lasting impact on modern businesses and effective management techniques. His emphasis on quality control, statistical analysis, and long-term goals has reshaped the way organizations approach productivity and efficiency.

Deming's "seven deadly diseases of management" highlighted critical issues within the corporate world, addressing issues like short-term profit focus, rigid performance evaluations, and flexibility in management roles. His modification of the PDCA cycle into the Deming cycle provided a structured approach to continuous improvement, further reinforcing his commitment to long-term success.

While Deming's ideas faced initial resistance in the United States, they found fertile ground in Japan, ultimately leading to the resurgence of Japan's economy. Over time, his principles have continued to be debated, adapted, and taught in management circles globally. They offer a valuable framework for businesses striving to optimize their operations and achieve sustained success.

Works Cited

1. Deming, W. E. (1986). Out of the Crisis. MIT Press.
2. Deming, W. E. (1994). The New Economics for Industry, Government, Education (2nd ed.). MIT Press.
3. Walton, M. (1986). From the Little Things, Big Things Grow: Deming’s Impact on Quality in Australian Manufacturing. National Library of Australia.
4. Gitlow, H. S., & Gitlow, S. J. (1987). The Deming Guide to Quality and Competitive Position. Prentice Hall.
5. Scherkenbach, W. W. (1988). Deming Route to Quality and Productivity: Road Maps and Road Blocks. CRC Press.
6. Neave, H. R., & Deming, W. E. (1990). The Deming Dimension. SPC Press.
7. W. Edwards Deming Institute. (n.d.). Seminar Pricing and Locations. https://deming.org/seminars/seminar-pricing-and-locations/