Summary

Dr. W. Edwards Deming is the legendary master of managing for quality. Reviewed by Dr. Deming himself just before his death, this unique book communicates the essence of his four-day seminars in a remarkably entertaining and easy-to-absorb style. Through a one-concept-per-page visual format, the book leads you through the essentials of Dr. Deming's theories and techniques. It covers Dr. Deming's System of Profound Knowledge as well as conducting inspections, dealing with suppliers, and encouraging continual process improvement. Operational definitions and systems of measurement are also covered.

Author Biography

Author William J. Latzko, a consultant in managing for quality with long-time personal familiarity with Dr. Deming and his seminars, has faithfully recreated them in fact and spirit. By reading this book you will gain the knowledge and skills to transform your company and your own personal perspective on management.

David M. Saunders, a consultant in managing for quality with long-time personal familiarity with Dr. Deming and his seminars, has faithfully recreated them in fact and spirit. By reading this book you will gain the knowledge and skills to transform your company and your own personal perspective on management.

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Foreword
Preface
Acknowledgments
Prologue
Who Is Dr. Deming
More on Dr. Deming's Background
Background-Japan after World War II
Dr. Deming Teaches in Japan
Why Should I Read This book
How to Read This Book
Overview
Day One
The Need for Transformation of Western Management
Dr. Deming Lectures to a Packed Convention Hall
Why Are We Here
Historical Perspective
Is America Prosperous or Are We in Trouble
America Is in Trouble-More Is Going out than Coming in
Aren't We Still Leaders in Agriculture
What American Industry Brings in the Most Dollars
What Factors Have Led to American Prosperity in the Past
What Is the Definition of a Colony
Something Has Happened to America
Reflections During Coffee Break
To Achieve Quality There is No Substitute for Knowledge
Quick Fix-Machinery and Automation
Quick Fix-Just In Time (JIT)
Quick Fix-Cost Cutting
Quick Fix-Suboptimization of People and Technology
Quick Fix-Management by Results
Quality Is Made in the Boardroom-Not on the Factory Floor Forces of Destruction
Story of the Art Class
The Prison
Comments Overheard in the Prison Compound
Escape from Prison
A System of Profound Knowledge
What Is a System of Profound Knowledge
What Is a System
The Importance of Interdependence in a System
An Example of the Systems Concept-Customer/Supplier Flowchart
How to Suboptimize a Firm
Theory of Variation
Variation Is So Easy to Understand
Theory of Knowledge
There Is No Such Thing As a True Value
Psychology
Reflections During Lunch
Obligations 1 through 5
Obligation 1-Constancy of Purpose
Obligation 2-Adopt the New Philosophy
Obligation 3-Cease Dependence on Mass Inspection
The Hazard of 100 Percent Inspection
When to Use Mass Inspection
Three Worlds-Rules for Inspection
Inspect the Process-Not the Product
Obligation 4-End the Practice of Awarding Business on the Basis of Price Tag Alone-Instead Reduce Cost by Reducing Variation
Buying on Price Tag Alone
Comparison of Suppliers
Taguchi's Use of the Loss Function
Three Worlds for Purchasing
Reduce Variation through Long-Term Relationships
What About the Purchase of a Commodity
Single Supplier Policy
What If Your Supplier Has a Fire
Obligation 5-Continual Improvement
Innovation and Improvement
Where Does Innovation Come From
The Shewhart Cycle for Learning and Improvement
Evening Study Group
Reflections on Day One
Day Two
Obligations 6 through 9
Dr. Deming Autographs His Book
Hands against the Wall
Obligation 6-Training for a Skill
Why a Leader Must Be a Trainer
Obligation 7-Leadership
Doing Your Best is Not Good Enough
Obligation 8-Drive Out Fear
Blaming the Worker
Obligation 9-Break Down Barriers between Staff Areas
Why Don't People within an Organization Cooperate
Independent Kingdoms versus Cross-Functional Teams
We Need a Theory of Cooperation
Cooperation Will Lead to More Standards
Cooperation and Darwin
The Red Beads
The Workers Are Instructed
The Red Beads-Production-Day
The Red Beads-Production-Day
The Red Beads-Production-Day
The Red Beads-Production-Day
Keeping the Plant Open with the Best Workers
The Red Beads-Production-Day
Red Beads Chart
The Light Goes On
Day Two-Afternoon
It Is So Easy to Be Fooled by Figures
What Can We Do to Reduce the Proportion of Red Beads
How Did This Come About
Two Kinds of Mistakes
How Do You Make Red Beads
As a Result of the Red Bead Experiment-the Japanese Went to Work Straight Away
I Am Learning
Table of Contents provided by Publisher. All Rights Reserved.

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Excerpts

We conceived the idea for this book when we met at the Toronto Annual Quality Conference. We decided then to write a book about Dr. Deming''s message. The book was to be simple to read yet introduce his philosophy in a completely accurate way. We planned to use copious illustrations to make the ideas clearer. The purpose was to make the message easy to understand. We visualized an executive, flying home after a busy day, who wanted to use the time to study a new theory without undue strain. Would Dr. Deming like the idea? We began to work on a manuscript and laid out the first chapter with an outline. This we gave to Dr. Deming. He sent this material back, edited and with a letter: "Your idea of a book is exciting. Please continue to work on it, and get it out." Dr. Deming not only encouraged us but actively reviewed the manuscript and added his ideas. We believe this book represents the most simple, up-to-date, and accurate presentation of his philosophy. This book is an ideal introduction to the Deming Management Theory. Its organization follows the four-day seminar made famous by Dr. Deming. Over the course of writing the book, Dr. Deming changed the order of presentation and of emphasis. In an early draft we included a table showing the order of a presentation he made only a week before. He wrote on this table, "We have to rethink this." Subsequently he adopted the format we now follow in this book. We like to think that we have had some influence on his presentation. The book is an ideal study tool. Undergraduate and graduate courses of Management, Organizational Development, and Quality will benefit by using this book. The material of the seminar is presented in 13 chapters - an ideal content for a semester course. The list of questions at the end of the book is useful for studying and exploring the subject matter in depth. While this book makes a useful text for university courses, it also fills a need as a study tool for in-house training. With appropriate changes in presentation, an instructor can use this book to train all levels of management and workers. The presentation avoids as much as possible the need for any technical knowledge. The authors are working on an instructional guide for in-house training. Those who have attended Dr. Deming''s seminars in the past will find the book to be a refresher of what they experienced. It may even clarify a point that was obscure at the time of the seminar. For those who have never attended Dr. DemingIs seminar, this book gives the flavor of such an experience. To make people feel the forces at work during the seminar, we use three voices - first is Dr. Deming, who usually introduces the topic. Where we feel that we can contribute to understanding, the authors act as the second voice. An imaginary seminar participant is voice number three. The authors have much experience with the seminars, having acted often as facilitators for Dr. Deming. During this time we met many executives and managers who came to learn, impatient to get on with it but willing to listen. We have observed that changes in the seminar participant take place over time. The lesson of the beads is a particular point of change. The epilogue was added to help people to continue to study the application of this philosophy. "There is no substitute for knowledge," said Dr. Deming. The best way to effect a transformation is with the help of a master. The authors recognize that there will be those who cannot find a master yet wish to continue studying the ideas. We give some advice that we hope will help these readers in their quest. For a long time Dr. Deming kept saying that to manage in a competitive world requires Profound Knowledge. It was only in the last few years that he defined what he meant by Profound Knowledge. This book incorporates his most recent thinking on this important topic. Why did we choose this format? We chose to use a nontraditional format because it is our theory that people learn in different ways. Some people are visual and can learn best when they see pictures. Others are more verbal and prefer to listen to lectures. Traditional English text is one dimensional. A page really consists of a long line of words. (When read in one direction - left to right - this page is actually a 10-foot line of words.) Research suggests that the human brain converts information like a holograph, in three dimensions. For that reason, TVs, movies, and exhibits are popular ways of learning. Therefore, we have created this book specifically for those who prefer visual learning. We chose to present the Four-Day Seminars in the landscape (wide page) format. Dr. Deming reviewed, corrected, and added to this manuscript. He liked the landscape format and hoped that it would appeal to the reader as well. Managing to achieve quality, by its very nature, requires the ability to see relationships. We have attempted to cross-reference the relationship between ideas whenever possible. This book is the compilation of many of Dr. Deming''s lectures. In attending many of these lectures, we observed his never-ending improvement - he constantly clarified his message and its delivery. Dr. Deming''s message to management is simple: The prevailing system of management is ruining us. The prevailing system focuses on short-term thinking, ranking, merit systems, management by results, quotas, and MBO''s. The authors hope that by bringing Dr. Deming''s message in this visual format we will help managers gain a better understanding of their jobs. Every system, such as this book, must have an aim. Our aim is to present the Deming Seminar in a simple, enjoyable way that will give the reader understanding and desire to continue studying Dr. Deming''s philosophy. William J. Latzko David M. Saunders 9 June 1994 0201633663P04062001