W. Edwards Deming - Part 2

Summary

The video script tells the story of Dr. W. Edwards Deming, an American statistician and management consultant whose teachings on quality and continuous improvement were highly influential in Japan, leading to the creation of the Deming Prize. Despite being largely ignored in the U.S. post-World War II due to the country's industrial dominance, Dr. Deming's principles were rediscovered in the 1980s when American industry faced competition from Japan. His philosophy emphasized respect for people and a systemic approach to quality management, which was contrary to the then prevalent American practice of acceptable quality levels. The script highlights Ford's turnaround in the 1980s, which was attributed to Deming's influence, and the eventual embrace of his teachings by American businesses. It also mentions Deming's 14 points, which serve as a comprehensive guide to his management philosophy, and notes the reluctance of American managers to adopt his ideas fully. In 1985, an American company based in Miami became the first to win the Deming Prize outside of Japan, signifying a shift in the global recognition of Deming's contributions to quality management.

Takeaways

• 🏆 **Deming's Influence in Japan**: W. Edwards Deming was highly regarded in Japan, leading to an award named in his honor, the Deming Prize, which signifies a high achievement in quality and continuous improvement for Japanese companies.
• 📈 **American Industry's Post-War Success**: Deming identified that American industry's success was due to the aftermath of World War II rather than superior management skills, and he warned against relying solely on figures and the short-term view.
• 📚 **The Importance of Theory and Training**: Deming emphasized the value of theoretical knowledge and training, noting that while costs can be quantified, the true benefits, especially in human development, often cannot be measured.
• 📺 **Deming's Second Revolution**: American television brought attention to Deming's teachings, leading to a resurgence in his influence and a reevaluation of American manufacturing practices.
• 🤔 **The Question of American Decline**: The script raises the critical question of why America was losing out to Japan, highlighting the need for a shift in approach towards quality and continuous improvement.
• 👴 **Deming's Late Recognition**: Despite his significant contributions, Deming was not widely recognized in the U.S. until later in life, when American companies began to seek his advice on quality management.
• 🚗 **Ford's Quality Transformation**: Ford's market share increased in the 1980s due to a focus on quality, which was influenced by Deming's principles, leading to a significant turnaround in the company's fortunes.
• 🌐 **Continuous Improvement vs. Good Enough**: Deming advocated for continuous improvement rather than settling for a 'good enough' approach, which was the standard in American and European industries at the time.
• 🤝 **Collaboration and Partnership**: Ford's partnership with Mazda and the building of its first front-wheel drive car for America exemplified the benefits of collaboration and the application of Deming's principles.
• 📊 **The Superiority of Tight Tolerances**: The Japanese approach to manufacturing, with its focus on tight tolerances and high-quality components, was a key factor in the superior performance of their products.
• 📝 **Deming's 14 Points**: Deming's philosophy is encapsulated in his 14 points, which include the importance of constancy of purpose, improvement, and a systems view of production, among others.

Q & A

Why was W. Edwards Deming highly regarded in Japan?

W. Edwards Deming was highly regarded in Japan because of his teachings on quality and continuous improvement, which resonated with Japanese companies. His impact was so significant that an award was named after him, known as the Deming Prize.

What was the initial attitude of American industry towards statistical quality control after World War II?

After World War II, American industry did not prioritize statistical quality control. With the U.S. as the world's leading provider, even with adequate or questionable quality, there was no competition, leading to a neglect of Deming's principles.

How did Dr. Deming's philosophy differ from the prevalent American business practices of the time?

Dr. Deming's philosophy emphasized continuous improvement and respect for the human element in business management. This differed from the American practices which were more focused on meeting minimum standards and did not prioritize ongoing quality improvement.

What was the critical question posed by the 90-minute program that led to the second Deming revolution?

The critical question was 'why was America losing out to Japan?' This question, along with Dr. Deming's appearance on the program, sparked renewed interest in his teachings and quality management.

What was Dr. Deming's stance on quick fixes in business management?

Dr. Deming was against the idea of quick fixes in business management. He believed that quality is a way of thinking that requires a drastic change in how we think about everything we do and live, which cannot be achieved overnight.

How did Ford's adoption of Dr. Deming's principles affect their market share?

Ford's adoption of Dr. Deming's principles led to a significant increase in their market share during the 1980s. In 1988, they overtook General Motors, and Don Peterson, who credited the success to the quality transformation prompted by Dr. Deming, was voted the country's most effective leader.

What was the reason behind the noise and stiffness of the American-made transmissions compared to the Japanese ones in Ford's first front-wheel drive car?

The American-made transmissions were noisier and stiffer because they operated within a wider range of tolerance compared to the Japanese ones. The Japanese transmissions were made with greater precision and attention to quality, which resulted in superior performance.

What was the significance of the Deming Prize being won by an American company based in Miami in 1985?

The win marked the first time a company outside of Japan received the Deming Prize, signifying the global recognition and adoption of Dr. Deming's quality management principles.

What were some of the contentious ideas proposed by Dr. Deming in his 14 points of management philosophy?

One of the contentious ideas proposed by Dr. Deming was the scrapping of performance-related pay, which went against common business practices that linked compensation to individual performance metrics.

Why were American managers initially reluctant to adopt Dr. Deming's principles?

American managers were reluctant to adopt Dr. Deming's principles because they involved a significant change from established practices and required a long-term commitment to continuous improvement. There was also a tendency to seek quick fixes and to revert to past strategies that had worked in previous situations.

How did the perception of Dr. Deming change in the United States following his appearance on American television?

Following his appearance, Dr. Deming's phone began to ring non-stop as company presidents and others sought his advice. His teachings on quality management became widely recognized and sought after, leading to a resurgence in his influence and the adoption of his methods in American industry.