WILLIAM

EDWARD
DEMING
T H E F A T H E R O F Q U A L I T Y E V O L U T I O N

C H O N G , M A R A N G A , R A Z O N
BIOGRAPHY
W I L L I A M E D W A R D S D E M I N G S

american engineer, statistician, professor, author,

lecturer, and management consultant
 TIMELINE OF DEMING

Sioux City, Iowa, USA

1900 Born on October 14, 1900

University of Wyoming
in Laramie 1917
Earns his first degree

Professor at the University

1921 of Wyoming in Laramie
University of Colorado
1925
Earned his masters degree
.

Walter Shewart
1927 statistical process control,
operational definitions –
“Shewart Cycle” – PDCA
Yale University
Earned his doctoral degree
1928
with part time teaching
- A Possible Explanation of
the Packing Effect of Helium After World War II
.
USDA Graduate School
1939 punblishes Deming as Statistical
Method from the Viewpoint of
Quality Control.
 Columbia University
Becomes an advisor on
statistical education to the
Statistical Research Group
Hakone Convention Center
Tokyo University
Conducts first of a dozen
lectures about Statistical
Product Quality
Administration
1942
Japan
Economic and Scientific Section
1946 of the War Deparment to study
agricultural production and
related problems.
.
1950
Deming Prize
instituted by the JUSE awarded
each year in Japan to a
1951
statistician for contributions to
statistical theory.
 Japanese Post-war
Economic Miracle
credit Deming as one of the
inspirations. They became
the second-largest economy
in the world.
Out of Crisis
Talks about theory of
management based on his
famous 14 Points for
Management
1960
National Attention (USA)
gains belated national attention
1980 in his own country for the
significant contribution of his
philosophy to Japan's amazing
business success.
.
1982
System of Profound
Knowledge
style based on cooperation
1992 rather than competition can
help people develop joy in work
and learning
Edward Deming Institue
Enriching society through the 1993
Deming philosophy

1993 Death
Dies on December 20 in
Washington, District of Columbia
Death by natural causes (aged 93)
.
AWA R D S
W I L L I A M E D WA R D S D E M I N G S
 W I L L I A M E DWA R D S D E M I N G

Deming Prize Japan's Order of the Distinguished National Medal of

Sacred Treasure, Career in Science Techonology
The Union of Japanese
Second Class Award
Science and Engineering
(JUSE) Emperor Hirohito National Academy President Ronald
in 1960 of Sciences in 1988 Reagan in 1987
BOOKS
W I L L I A M E D WA R D S D E M I N G S
 D E M I N G

OUT OF CRISIS

►theory of management based on his

famous 14 Points for Management
►companies require nothing less than
a transformation of management style
and of governmental relations with
industry.
 D E M I N G

THE NEW
ECONOMICS
►a theory of management based on his
famous System of Profound Knowledge
►style based on cooperation rather than
competition can help people develop
joy in work and learning
 System of Profound Knowledge

Provides a highly integrated framework of thought and action for any leader
wishing to transform an organization operating under the prevailing system
of management into a thriving, systemically focused organization.
- Providing a new, outside view.
- Transforming managers to leaders.
- increasing quality, customer loyalty, worker satisfaction and, ultimately,
profitability
- Reducing costs by reducing waste, rework and staff attrition and
litigation.
- Removing fear and competition from the workplace and classroom.
- Realizing the power and pleasure derived from intrinsic motivation.
 System of Profound knowledge

- Cultivating the value and results of cooperation and collaboration.

- Thinking in new ways and taking action based on confirmed knowledge.
- Understanding the importance of a better system for achieving better
outcomes.
- Working towards continual improvement - individually and collectively.
- Supporting individuals and organizations through the first disruptive steps
of transformation.
- Creating opportunities for continued, lifelong learning to bring long-term
meaning, satisfaction and joy.
- Addressing different learning styles (generational) and cultivating the next
generation of leaders.
 14 Points for Management
1. Create Constancy Of Purpose
- improvement of product and service, with the aim to become competitive and to stay in business, and
to provide jobs.
2. Adopt the New Philosophy
- take on leadership for change.
3. Cease Dependence On Inspection
- Eliminate the need for inspection on a mass basis by building quality into the product in the first place.
4. End “lowest tender” Contract
End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move
toward a single supplier for any one item, on a long-term relationship of loyalty and trust.
5. Continuous Improvement
- to improve quality and productivity, and thus constantly decrease costs.
6. On-the-Job Training
7. Leadership
- The aim of supervision should be to help people and machines and gadgets
to do a better job. Supervision of management is in need of overhaul, as
well as supervision of production workers.
8. Drive Out Fear
- so that everyone may work effectively for the company
9. Break Down Silos
-People in research, design, sales, and production must work as a team, to
foresee problems of production and in use that may be encountered with the
product or service.
10. Eliminate Ehortation
- for the work force asking for zero defects and new levels of
productivity. Such exhortations only create adversarial
relationships, as the bulk of the causes of low quality and low
productivity belong to the system and thus lie beyond the power of
the work force.
a. Eliminate work standards (quotas) on the factory floor.
Substitute leadership.
b. Eliminate management by objective. Eliminate management by
numbers, numerical goals. Substitute leadership.
11. Eliminate Targets
- The responsibility of supervisors must be changed from sheer numbers to
quality.
12. Permit Pride of Workmanship
- Remove barriers that rob people in management and in engineering of their
right to pride of workmanship.
13. Institute Education And Self-Improvement Programs
- Institute a vigorous program of education and self-improvement
14. The Transformation is Everyone’s Job
- Put everybody in the company to work to accomplish the transformation.
7 Deadly Disease
1. Lack of Constancy of Purpose- Lack of constancy of purpose, to plan product and
service that will have a market and keep the company in business, and provide jobs.
2. Emphasis on Short Term Results- short-term thinking (just the opposite from
constancy of purpose to stay in business), fed by fear of unfriendly takeover, and by push from
bankers and owners for dividends.
3. Evaluation - Merit Rating, Annual Review- managers must focus on the nature of work
environment not monetary rewards.
4. Mobility of Management- job hopping.
5. Relying on Visible Figures Alone- no consideration of figures that are unknown or
unknowable. Some facts are simply unknowable.knowing this, Deming insisted that leaders must still
make decisions and manage a situation.
3 Basic dilemma
a. How do you know what would hace happened if you had kept on your prior course?
b. how do you put dollar value on the customer loyalty won through quality improvement effots?
c. You can’t, because these numbers are unknowable- and this must be taken into considerations
6. Excessive Medical Cost- health care as a percentage of overall expenditures has steadily risen
for decades, which gradually pushes numerous business into a stat of crisis . Potentially the only
remedy for this disease would be a political system attempting to reform health care.
7. Excessive Legal Cost- swelled by lawyers that work on contingency fees.
 RED BEAN EXPERIMENT
1. The experiment provides a typical illustration of bad
management. Deming (who serves as the manager) continually
blames the workers for defective products that are caused by the
system.
2. System variation
3. All workers perform within a system that is beyond their control.
4. There will always be some workers that are above the average
and some workers that are below the average.
5. A worker's position in the ranking may vary from one period to the
next.
6. Only management can change the system.
 FUNNEL EXPERIMENT
• Describe the adverse effects.

• Changes to a process without

first making a careful study of
the possible causes.
 RULE 1
● The funnel remains
fixed, aimed at the
target.

● No action is taken to
move the funnel.
RULE 2
● Move the funnel from its previous
position a distance equal the
current error (location of drop), in
the opposite direction.

● Correct for the error of the

previous drop.
 RULE 3
● Move the funnel to a position that is
exactly opposite the point where the last
marble dropped, relative to the target.

● Work in systems where two parties

react to each other’s actions.
 RULE 4
● Move funnel to the position
where the last marble dropped.
• Stable common-cause process (such as
that involving the funnel) should be left
alone for best results

• Adjustments (strategies 2 - 4) will only

result in worse performance.
 A versus B Comparison
(a) People and organizations focus primarily on quality,
quality tends to increase and costs fall over time.
(b) However, when people and organizations focus
primarily on costs, costs tend to rise and quality declines
over time.

Quality = Results of work efforts / Total costs

 PDCA Cycle/Shewhart Cycle
Plan Do
Recognize an Test the change on
opportunity and plan a small scale.
a change.

Act Check
If the solution was Review, analyze
successful, implement it. and identify.
 REFERENCES
● http://www.innovationlabs.com/summit/summit7/pre/readin
g_materials/DrDeming.pdf
● https://www.mindtools.com/pages/article/newPPM_89.htm
● http://asq.org/learn-about-quality/project-planning-
tools/overview/pdca-cycle.html
● https://support.minitab.com/en-us/minitab/18/macro-
library/macro-files/educational-macros/funnel/
● http://www.symphonytech.com/dfunnel.htm
● http://www.symphonytech.com/articles/pdfs/spFunnel.pdf
THANK YOU!
C H O N G , M A R A N G A , R A Z O N