W. Edwards Deming - Part 3

Summary

The Florida Power and Light Company embarked on a quality improvement journey, inspired by the Japanese power company Canai Electric's Deming Prize win. This initiative involved all 15,000 employees and led to innovative solutions like portable computers to reduce meter readers' dog bite incidents. Despite the prize, the company did not adhere to all of Dr. Deming's philosophies, notably his opposition to performance-related pay. Dr. Deming's management principles emphasize continuous improvement, teamwork over competition, and understanding variation's causes. His 'Red Bead Experiment' illustrates the futility of competition in a flawed system. The company's dedication to quality improvement and Deming's teachings, including the importance of cooperation and lifelong learning, are highlighted as key to their success and the potential for future progress.

Takeaways

• 🏆 Florida Power and Light Company pursued the Deming Prize to improve service quality and corporate image, inspired by a Japanese power company's previous win.
• 📈 The company underwent significant organizational training involving all 15,000 employees to achieve continuous improvement.
• 🐾 Meter readers, facing high accident rates from dog bites, suggested using a portable computer to identify risky houses, showcasing employee involvement in problem-solving.
• 🔭 Introduction of binoculars for meter readers and tree growth analysis by foresters exemplify the company's commitment to innovative solutions for safety and efficiency.
• ✂️ Despite winning the Deming Prize, the company did not adhere to all of Dr. Deming's philosophies, particularly his opposition to performance-related pay.
• 💡 Dr. Deming emphasized the importance of understanding variation and the fallacy of ranking systems, advocating for team results over individual performance.
• 🧪 The Red Bead Experiment by Dr. Deming illustrates the futility of quality control in a flawed system and the negative impact of competition and fear-based management practices.
• 🤝 Dr. Deming's philosophy advocates for cooperation over competition, arguing that teamwork leads to better outcomes and aligns with the American spirit of collaboration.
• 📚 A room dedicated to Dr. Deming at the American Statistical Association in Washington honors his contributions, but he continues to pursue continuous improvement.
• 👴 At 91, Dr. Deming remains a lifelong learner and a proponent of his philosophy, demonstrating dedication to democratic institutions and the founders' dreams.
• ⚠️ Dr. Deming warns against the dangers of complacency and the need for a crisis before action is taken, suggesting that the West is in worse trouble due to a lack of awareness.

Q & A

Why did the Florida Power and Light Company decide to improve its service quality?

The company believed that improving service quality would be beneficial for business and its image.

What award was Florida Power and Light Company striving to win?

The company was working hard to win the Deming prize.

Why was it significant for the company to be eligible for the Deming prize?

The Deming prize had never been offered outside of Japan, making it a notable achievement for an international company.

How many employees were involved in the company's quality improvement program?

All 15,000 employees of the company were involved at some stage of the quality improvement program.

What was the solution proposed by meter readers to reduce their accident rate?

Meter readers suggested the use of a portable computer to identify houses with dogs that could potentially bite.

What does continuous improvement mean in the context of the Deming prize?

Continuous improvement means there is ongoing organizational self-assessment and the implementation of a true quality process.

How did Florida Power and Light reduce power cuts caused by falling trees?

They introduced intensive tree pruning and analyzed the growth rate of different trees, focusing on the fastest growing ones to reduce power failures.

What was one aspect of Dr. Deming's philosophy that Florida Power and Light did not follow?

The company did not follow Dr. Deming's opposition to performance-related pay.

What is the main point of Dr. Deming's caution against performance-related pay?

Dr. Deming believed that rewarding individual performance can introduce fear into the workplace and that team results should be emphasized over individual achievements.

How does Dr. Deming's red bead experiment demonstrate the flaws of bad management?

The red bead experiment shows that even willing workers can't produce quality goods in a bad system, and that quality inspectors can't make a difference if the system itself is flawed.

What does Dr. Deming advocate for instead of competition in the workplace?

Dr. Deming advocates for cooperation, stating that it is not competition but teamwork and cooperation that leads to success.

What is the significance of the room dedicated to Dr. W Edwards Deming at the American Statistical Association?

The room is a collection of his writings and souvenirs, honoring his contributions to the field of quality management and continuous improvement.