W. Edwards Deming: Quality Control and Management Principles in Business

In the post-WWII era, an American statistician changed how businesses managed quality. W. Edwards Deming brought new ideas that transformed Japan’s manufacturing and set a global standard. His work led to a huge leap in quality and productivity for companies like Toyota.

Imagine it’s 1988, and over 700 people are waiting to hear from Dr. W. Edwards Deming. His ideas were already changing Asia and now were catching on in the West. Deming spoke of a future where quality and efficiency come from innovation and teamwork.

Deming’s work had a big impact, seen in real results. For example, Lockheed Martin in Texas saved $225 million a year by using Deming’s 14 points. This approach led to the Malcolm Baldrige National Quality Award in 2012.

Deming’s ideas were more than just theory. They focused on improving quality and building strong supplier relationships. Join us as we look at Deming’s lasting impact and how his strategies can help today’s businesses.

Introduction to W. Edwards Deming

W. Edwards Deming was born on October 14, 1900, in Sioux City, Iowa. He changed business management worldwide with his work. He started with engineering and statistics, which helped him develop quality control strategies.

He got his Bachelor of Science in electrical engineering from the University of Wyoming in 1921. Then, he got a master’s degree in mathematics and physics from the University of Colorado in 1925. Finally, he earned a PhD from Yale University in 1928.

Deming became famous for introducing statistical analysis to quality control in the mid-20th century. His Deming philosophy promoted continuous improvement and long-term business strategies. He moved management focus from just making products to a full view of quality and service.

Deming’s big achievement was the “14 Points for Management.” This plan called for a constant goal, a new philosophy, and ongoing improvement in production and service. He also pushed for less fear in the workplace, better teamwork, and training to improve skills.

In Japan, Deming worked as a census consultant and influenced business leaders with his seminars. He was given Japan’s Order of the Sacred Treasure (Second Class) in 1960. After his death, he was inducted into the Automotive Hall of Fame in New York in 1991. The Deming Prize, started in 1951, still honors his work in Total Quality Management (TQM).

Through his seminars, Deming explained different types of variations and introduced important tools like the PDSA cycle. His work has motivated many managers to aim for continuous improvement in their businesses.

Deming’s career was full of achievements, from his internship at Western Electric’s Hawthorn Works to his key role in the U.S. Department of Agriculture. His ideas still help management consultants and businesses today. They show that focusing on quality and continuous improvement leads to lasting success and growth.

Deming’s Legacy in Quality Control

W. Edwards Deming changed quality control forever with his statistical quality control methods. He started by teaching quality statistics in the U.S., even when many didn’t want to listen.

During World War II, Deming’s methods helped American weapons production beat the Germans. This was a big win for quality improvement. After the war, Deming made a huge mark in Japan by starting the Deming Prize for Quality in 1951.

The Deming Prize rewards companies for their quality and continuous improvement. It’s a global symbol of excellence. Companies around the world look up to it for quality improvement.

Deming also shared his 14 Points for Total Quality Management. He showed how management can make products and services better. Big companies like Toyota and Ford followed his advice and saw great success.

Statistics play a big role in quality control, thanks to Deming’s PDSA (Plan, Do, Study, Act) cycle. This method is very useful in healthcare, where making big changes is key.

“Up to 85% of the variability in work performance is attributed to the system, while only 15% is due to individual factors,” Deming pointed out. This shows how important it is to improve the system for better quality and productivity.

Deming’s work lives on in “The Essential Deming,” a book that sums up his life’s work. It’s a guide to management and quality improvement. His ideas still shape businesses today, pushing for ongoing improvement in many fields.

Company	Year Awarded	Outcome
Toyota Motor Corporation	1965	Foundational growth leading to industry leadership
Ford Motor Company	1980	Significant success through quality improvement plans

Deming’s Philosophy: Constant Improvement

W. Edwards Deming’s philosophy is all about constant improvement. This idea is key to his 14 Points, helping businesses stay ahead, keep running, and offer jobs. A big part of this is having a clear goal.

First Point: Create Constancy of Purpose

The first point in Deming’s 14 Points talks about setting a clear goal. Businesses should aim for ongoing betterment in what they make and do. In a tough market, sticking to a strong vision boosts quality and productivity. It also helps keep jobs safe and keeps the business going.

Following Deming’s advice brings big wins:

Less costs
Better quality and more done
Happier workers
Overall better performance
Being more competitive

These gains show up in the numbers:

Point	Focus	Outcome
1	Constancy of Purpose	Long-term betterment
5	Continuous Improvement	Less costs, better quality
6	Training	Workers do better
8	Eliminate Fear	Workers are happier
9	Break Down Barriers	Teams work better together

Having a clear aim for improvement is key to building a quality culture. It helps businesses do well in a tough market.

Adopting the New Philosophy

In 1988, Dr. W. Edwards Deming spoke to about 700 experts. He stressed the need for a new philosophy for today’s economy. He shared 14 key points for management, focusing on change and improving quality and efficiency.

Deming talked about the role of leaders in driving change. He encouraged them to face challenges and use new management methods. These methods help improve quality and cut costs, leading to ongoing growth.

Deming gave examples of how adopting this philosophy works. Lockheed Martin Missiles and Fire Control in Grand Prairie, TX, saved $225 million a year. They also saw an 18% jump in customer loyalty from 2007 to 2012.

The company kept 95% of its employees in 2011 and 94% in 2012. This shows the power of focusing on quality in business.

Deming suggested moving from relying on inspections to a full quality control system. This change cuts costs and boosts product quality and customer happiness.

By embracing this new approach, companies can work better together and make smarter decisions. Honeywell Federal Manufacturing and Technologies, LLC., in Kansas City, MO, is a great example. They have over 4,500 workers and focus on making high-quality products.

Deming’s message is clear: it’s time for new leadership and a focus on constant improvement. By following these quality management ideas, businesses can stay ahead and grow sustainably.

Eliminating Dependence on Inspection

W. Edwards Deming changed business with his idea of reducing inspection dependence. He said to put quality assurance right into making products. Instead of checking for defects later, make quality from the start.

This idea makes things more efficient and saves money. By setting high quality standards at every step, companies can catch problems early. This way, they avoid waste and save time and money.

Building Quality into Products

Putting quality into products means planning for it from the beginning. It changes how things are made to meet high standards. This builds a strong quality assurance culture. Dr. Deming says using statistical control is better than just checking things by hand.

Principle	Impact
Reduce inspection dependence	Streamlines operations and cuts costs
Embed quality from the start	Minimizes defects and enhances reliability
Implement statistical methods	Ensures consistent, high-quality output
Promote cross-functional teamwork	Addresses production issues collaboratively

Switching to a quality-focused model means changing how managers work. It needs lots of quality assurance training and always getting better. Making quality a key part of making things leads to better products.

Reducing Costs by Working with Loyal Suppliers

Dr. W. Edwards Deming said cutting costs isn’t just about picking the cheapest suppliers. It’s about building strong, long-term relationships with loyal suppliers. This way, you can lower costs over time and improve trust in your business dealings.

Building Long-Term Relationships

In his 14 Points for Management, Deming stressed the importance of looking at all costs, not just the upfront price. Many companies focus too much on short-term savings. This can lead to higher costs later, like needing more staff for cheaper software or unhappy customers from fewer call center agents.

Dr. Deming’s system advises on the crucial nature of integrating key management principles, viewing the organization as a cohesive whole rather than isolated departments.

Working closely with suppliers is key. Treat them as partners, not just people you buy from. This approach reduces uncertainty and keeps the supply chain steady. Trust and mutual benefits are key. Companies that see suppliers as partners can cut costs and improve quality and productivity.

Key Principle	Benefit
Focus on Total Cost	Long-term savings and efficiency
Build Supplier Loyalty	Trust and consistency in supply chain
Management as a Whole System	Enhanced organizational performance

Dr. Deming’s advice is still valuable today, even from the 1950s. By focusing on loyal suppliers and building trust, companies can set a strong base for lasting success and cost savings.

The Role of Leadership in Quality Management

W. Edwards Deming changed the way we think about quality management. He showed that strong leadership is just as important as improving production methods. Leaders must focus on the product and the steps to make it.

“The Essential Deming” talks about how important it is for leaders to make work processes and equipment better. This can greatly improve productivity. Deming also said that having a clear goal and always looking for ways to get better are key in management today.

Company	Achievement	Impact
Toyota Motor Corporation	Deming Prize 1965	Foundation for growth, quality control significance
Ford Motor Company	Improved Work Processes	Attributed to Dr. Deming’s assistance, enhanced product quality

Companies like Toyota and Ford show how Deming’s ideas work well. They used his leadership ideas to get better quality and productivity. Deming believed in training on the job and creating a safe work place. This helps people and machines work better.

Leadership in quality management is more than just watching over production. It’s about knowing and improving the steps that lead to better results. Always looking for ways to do things better and creating a supportive work place is key. This is what Deming’s vision is all about, making quality management successful.

Breaking Down Barriers Between Departments

W. Edwards Deming made a big impact on business by focusing on breaking down department walls. This leads to better teamwork in business and boosts productivity. He believed in a team effort where research, design, sales, and production work together smoothly. This teamwork helps solve production problems and leads to better problem-solving strategies. Working together can greatly improve product quality and make operations more efficient.

Teamwork Across Research, Design, Sales, and Production

For great cross-functional collaboration, these departments need to share a common goal. Working together, they can use their unique skills to find new solutions. This teamwork is key to spotting and fixing production issues early, leading to better problem-solving skills.

Department	Key Function	Collaboration Benefits
Research	Innovate new ideas and technologies	Informed design inputs, cutting-edge products
Design	Translate ideas into viable products	Product designs meet customer needs and manufacturing capabilities
Sales	Understand customer preferences and market trends	Feedback influences design and production, alignment with market needs
Production	Manufacture and deliver products	Efficient and high-quality production informed by research and design

This teamwork approach not only brings different parts of a business together but also encourages ongoing improvement. By working together, these departments can improve the quality and relevance of their products. Deming’s idea of teamwork is crucial for businesses aiming for the top.

Abolishing Slogans and Quotas

W. Edwards Deming, a quality control expert, said to abolish quotas and slogans at work. His book “Out of the Crisis” shares 14 key points for managers. These points focus on ditching targets and improving how things work.

Deming pointed out that slogans and demands can make workers frustrated. By dropping management objectives, companies can improve their processes. This leads to better employee relations by easing the stress from unrealistic goals.

Eliminate work standards (quotas) on the factory floor.
Eliminate management by objective and management by numbers.
Remove barriers that rob hourly workers of their right to pride of workmanship.

Deming’s 14 points offer clear duties for managers. Instead of random targets, focus on making things better and working together across departments.

This method encourages a culture of ongoing improvement. It breaks down walls between teams and encourages teamwork. Companies should also work on building strong leadership and focusing on long-term goals.

By doing this, companies can improve employee relations and achieve lasting success.

The idea is clear: to get better productivity and quality, drop quotas and focus on making things better and engaging employees. Deming believed this change is key for innovation, teamwork, and happiness at all levels.

Institute a Vigorous Program of Education and Self-Improvement

Dr. Deming’s principles highlight the need for ongoing skill and knowledge improvement. This is why education programs are key for self-improvement in business. He believed that education is vital for building a strong, innovative team.

Deming’s point 13 calls for strong educational programs. Many companies only train new hires or when needed. But Deming wanted more. He believed in a long-term education plan that encourages growth and creativity.

Continuous Learning

Learning never stops in business. On-the-job training is important, but it should be more than just checking boxes. After learning the basics, ongoing training can make employees more productive and innovative. It creates a culture where learning is a big part of the job, improving skills and problem-solving abilities.

Companies can use different training methods:

Short Term: Training stops after the start, except for personal projects.
Reactionary: Training happens only when needed, which slows down progress.
Benefits the Company: Focuses on training for better operations.
Benefits All: Follows Deming’s ideas, offering constant learning for everyone’s benefit.

Good education programs do more than just improve skills. They see employees as long-term assets, supporting their growth. By following Deming’s ideas, companies view education as an investment, not just a cost. This approach can lead to happier employees, more innovation, and staying ahead in the market.

Training Mode	Description	Potential Impact
Short Term	Training only at the start	Could lead to low morale, limited success
Reactionary	Training when needed only	Slows down long-term growth
Benefits the Company	Training for better operations	Boosts productivity
Benefits All	Continual learning	Improves skills, morale

Conclusion

W. Edwards Deming changed quality management in a big way. His 14 key principles have helped businesses all over the world. He showed how important it is to think big and for leaders to push for quality and constant improvement.

Deming worked in Change & Project Management and Business Systems Analysis for 28 years. He helped create Agile, Scrum, Six Sigma, and Lean. These methods focus on making things better as a whole.

At Ford Motor Company, Deming’s ideas helped them beat General Motors in profits. His work showed how important it is to work with suppliers for a long time and to keep learning together. He also believed in building a positive team culture by rewarding and involving everyone.

Deming’s ideas have made a big mark in the US and Japan. His work is still key for quality management and leadership today. As businesses grow, Deming’s ideas keep guiding them towards success.

W. Edwards Deming: Quality Control and Management Principles in Business

Introduction to W. Edwards Deming

Deming’s Legacy in Quality Control