Beruflich Dokumente
Kultur Dokumente
The prevailing style of management must undergo transformation. A system can not understand itself. The
transformation requires a view from outside. The aim of this chapter is to provide an outside view-a lens-that I call
a system of profound knowledge. It provides a map of theory by which to understand the organizations that we
work in.
The first step is transformation of the individual. This transformation is discontinuous. It comes from
understanding of the system of profound knowledge. The individual, transformed, will perceive new meaning to
his life, to events, to numbers, to interactions between people.
Once the individual understands the system of profound knowledge, he will apply its principles in every kind of
relationship with other people. He will have a basis for judgment of his own decisions and for transformation of the
organizations that he belongs to. The individual, once transformed, will: - Set an example - Be a good listener, but
will not compromise - Continually teach other people - Help people to pull away from their current practice and
beliefs and move into the new philosophy without a feeling of guilt about the past
The layout of profound knowledge appears here in four parts, all related to each other: - Appreciation for a
system - Knowledge about variation - Theory of knowledge - Psychology
One need not be eminent in any part nor in all four parts in order to understand it and to apply it. The 14 points
for management (Out of the Crisis, Ch. 2) in industry, education, and government follow naturally as application of
this outside knowledge, for transformation from the present style of Western management to one of optimization.
The various segments of the system of profound knowledge proposed here can not be separated. They interact
with each other. Thus, knowledge of psychology is incomplete without knowledge of variation.
A manager of people needs to understand that all people are different. This is not ranking people. He needs to
understand that the performance of anyone is governed largely by the system that he works in, the responsibility
of management. A psychologist that possesses even a crude understanding of variation as will be learned in the
experiment with the Red Beads (Ch. 7) could no longer participate in refinement of a plan for ranking people.
Further illustrations of entwinement of psychology and use of the theory of variation (statistical theory) are
boundless. For example, the number of defective items that an inspector finds depends on the size of the work
load presented to him (documented by Harold F. Dodge in the Bell Telephone Laboratories around 1926). An
inspector, careful not to penalize anybody unjustly, may pass an item that is just outside the borderline (Out of the
Crisis, p. 266). The inspector in the illustration on page 265 of the same book, to save the jobs of 300 people,
held the proportion of defective items below 10 per cent. She was in fear for their jobs.
A teacher, not wishing to penalize anyone unjustly, will pass a pupil that is barely below the requirement for a
passing grade.
Fear invites wrong figures. Bearers of bad news fare badly. To keep his job, anyone may present to his boss only
good news.
A committee appointed by the President of a company will report what the President wishes to hear. Would they
dare report otherwise?
An individual may inadvertently seek to cast a halo about himself. He may report to an interviewer in a study of
readership that he reads the New York Times, when actually this morning he bought and read a tabloid.
Statistical calculations and predictions based on warped figures may lead to confusion, frustration, and wrong
decisions.
Accounting-based measures of performance drive employees to achieve targets of sales, revenue, and costs, by
manipulation of processes, and by flattery or delusive promises to cajole a customer into purchase of what he
does not need (adapted from the book by H. Thomas Johnson, Relevance Regained, The Free Press, 1992).
A leader of transformation, and managers involved, need to learn the psychology of individuals, the psychology of
a group, the psychology of society, and the psychology of change.
Some understanding of variation, including appreciation of a stable system, and some understanding of special
causes and common causes of variation, are essential for management of a system, including management of
people (Chs. 6, 7, 8, 9, 10).
Understanding Variation
The first half of the session covered the highlights of the material from last time. The examples from Don
Wheeler's book "Understanding Variation" continued to provide the group with interesting insights as to the value
of using control charts to understand variation. Stories about real life reactions to variations in results reminded us
just how often behavior is driven by "2 point comparisons". We were also reminded of experiences where large
percentage changes in small portions of the total picture will drive analysts to ask, "What's happening?", though
the process was actually in control. Small percentage changes get overlooked, on the other hand, though they are
the ones really falling out of normal control limits.
_Mistake One:_ Interpreting noise as if it were a signal. _Mistake Two:_ Failing to detect a signal when it is
present.
The Control Chart approach provides a tool for minimizing the chance of experiencing these two mistakes. 人机料
法
Using Control Charts in our work and lives:
In the later part of the session, we invited those who had done their homework from last time to share the data
they had gathered and charted. There were observations taken in both the workplace and in non-work settings.
Some general observations that were discussed:
- The act of measurement in itself brings about a higher sense of awareness of the process being observed. This
awareness often brings about new insights about the process and a deeper level of understanding.
- One must be cautious about "explaining" a major variation that occurs _inside_ the control limits for the sake of
eliminating that point from the data. There is the potential for assigning "meaning" to such points. Shewhart's
teachings warn that such behavior may not be economic. It takes discipline to stay focused on what falls outside
the limits.
- Much in the same vein as above, it's difficult to resist the tendency to jump to conclusions about what a process
is doing, or to "predict" what the causes of variation are, based on personal experience with the process being
measured. While that experience is valuable -- Dr. Deming referred to the value of "deep process knowledge" --
one should have faith in the control chart to provide pointers to what the most important things to work on are;
those that will bear the largest savings and reductions in system complexity.
- Use of the statistical method _combined_ with knowledge of the process makes one's confidence in prediction
much higher.
The scribe's other duties got the best of him this month, so we only have a very brief note on the session... Our
thanks to Steve, John and Lucille Jurgens, though, for providing us with their experience and insights over these
past two meetings.
/s/ Dan Robertson
The Center for Quality and Productivity improvement University of Wisconsin 610 Walnut Street (608) 263-2520
Madison, WI 53705 Fax (608) 263-1425
The Center for Quality and Productivity improvement (CQPI) was established at the University of Wisconsin-
Madison in 1985. Among other things CQPI publishes reports. These reports are available through their office;
please call or write for an order form which has an annotated bibliography of all their reports. A selected list of
reports which I feel would most interest quality management professional follows.
Report 5: My First Trip to Japan. Peter Scholtes, February 1986
Report 6: Total Quality Leadership vs. Management by Control. Brian L. Joiner and Peter R. Scholtes, February
1988.
To survive in increasingly tough markets, top management in American companies will have to their desire to
"control" their employees, and instead learn what it means to provide Total Quality Leadership.
Report 13: Doing More With Less in the Public Sector: A Progress Report from Madison, Wisconsin. William G.
Hunter, Jan O'Neill and Carol Wallen, June 1986.
The new quality improvement ideas can help public officials combat the effects of decreasing budgets just as
they help private business increase productivity Quality Progress, July 1987, pp. 19-26.
Report 14: Drastic Changes for Western Management. W. Edwards Deming, June 1986.
This report is a compact summary of the most important points that Dr. W. Edwards Deming has been making
about changes that must be made by American business if they are to be competitive.
Report 15: How to Apply Japanese Company-Wide Quality Control in Other Countries. Kaoru Ishikawa,
November 1986.
This report highlights the experiences of Kaoru Ishikawa a, a leader in Japan's QC movement, who has spent the
last 20 years visiting countries all over the world to give lectures and guidance on QC implementation. Quality
Progress, September 1989, V. 22, No. 9, pp. 70-74
Report 17: Eliminating Complexity from Work: Improving Productivity by Enhancing Quality. F. Timothy Fuller, July
1986.
Increasing quality does not increase cost; in fact, it is poor quality that increase "complexity," which in turn
increases costs and decrease productivity. National Productivity Review, Autumn, 1985.
Report 18: The World Class Quality Company, William A. Golomski, December 1986.
Through a long history of consulting with companies around the world, William Golomski has found some themes
common to companies capable of achieving world class quality.
Report 25: The Scientific Context of Quality Improvement. George Box and Soren Bisgaard
Quality Progress, March 1988, pp. 37-41
Report 46: Do Interactions Matter? George Box
Quality Engineering 1990, V. 2, No. 4, pp. 497-502
Report 48: Good Quality Costs Less? How Come? George Box, March 1990.
It is sometimes supposed that the manufacture of high quality goods must be expensive. The reasons why this
need not be so and why quality should cost less are discussed. Quality Engineering 1990-91, V. 3, No. 1, pp. 85-
90.
Report 59: Teaching Quality Improvement by Quality Improvement in teaching. Ian Hau, February 1991.
Report 74: Quality Improvement-The New Industrial Revolution. George Box, October 1991.
Beginning from Bacon's famous aphorism that "Knowledge Itself is Power", the underlying philosophy of modern
quality improvement is seen as the mobilization of presently available knowledge and knowledge gathering.
International Statistical Review, V. 61, no. 1, pp. 3-19.
Report 84: How to Get Lucky. George Box, June 1982.
Some principle for success in quality improvement projects discussed, in particular, how to encourage the
discovery of useful phenomena not initially being sought. Quality Engineering, V. 5, No. 3, pp. 517-524.
Report 97: Bringing Total Quality Improvement into the College Classroom. Lee Hansen, March 1993.
Report 105: Total Quality Management and D*A*T* Model. Joe Van Matre.
Please send me any feedback on what reports you found useful,suggestions on how to make this list more
useful... to John Hunter, Mail Stop102-268, 2200 Wilson Blvd, Arlington VA 22201. E-mail
john.hunter@tqm.permanet.org. Or leave a message for John Hunter on the TQM BBS, 301-585-1164.
[This file is available as a bulletin in the Washington Deming Study Group area on the TQM BSS and as a file
available for download. Filename: ARTCLES.ZIP.]
By: John Hillkirk Journal: USA Today Date: Unknown pps: 1 of 1 OUTLINE: Deming is the quality guru
They do well to listen
Deming's way is about quality, putting an end to waste and inspections
Deming was ignored in US, but Japan listened
Managers are to blame, not the workers
Manufacturing, is straightforward, but Deming's methods work in services as well
Deming will tell Pentagon's purchasing managers buy products based on quality not price.
OVERVIEW:
Campbell Soup, P.I.E. trucking and Ford Motor Co. "We have one quality guru here," "that's Dr. Deming".
"They'd do well to listen," say Mary Walton of the Deming management method.
Deming's way is all about quality and putting an end to waste, and there's no shortage of waste at the Pentagon."
Deming was ignored in the United States. But the war- battered Japanese took a deep interest in his statistical
methods, which eliminate inspection and make quality everybody's job.
Deming didn't catch on here until 1981, after NBC aired a documentary titled "If Japan Can, Why Can't We?"
Deming was invited to Ford, by Don Peterson - he ripped apart Ford's quality effort. His number one concern:
Ford relied on inspections rather than building products right the first time.
Mr. Baker of Ford stated "He has so much to offer". It's so awful that this country didn't tap into him years ago.
What Deming teaches is that managers, not workers, are responsible for 80% of the defects in products or a
service. The workers aren't bad; the system is bad.
In manufacturing, this is relatively straight forward. If a car bumper is defective, you trace the problem to stations
on an assembly line. Then you put controls in place to make sure it doesn't happen again. But Deming's methods
work in service companies, too.
Deming will tell the Pentagon's purchasing managers to buy products based on quality, not just cost, and to whip
their suppliers into shape. Says Walton's "For then to follow Deming would be a revolution but I can't imagine that
they'll go for it".
CONCLUSIONS:
In this short article, I found that this had a lot to say. That there is only one quality guru. That's Dr. Deming. Not
much time left. Manufacturing and service's alike should listen to the man and take his message seriously. The
quality was is to end waste and inspections. Make/do it right the first time and put controls in place to prevent
errors from happening again. Its not the workers that is bad; its the system that is bad. Deming talked with the
Pentagon's purchasing manager's "buy products based on quality, not price."
Prepared by: AZCM Wm. P. Bennett 11 May 1992
The following obituary on Dr. W. Edwards Deming appears on page C9 of the 21 December 1993 edition of
_The_Washington_Post_.]
W. Edwards Deming Dies; His Lecture on Quality Control Fueled Japan's Rise
By Claudia Levy Washington Post Staff Writer
W. Edwards Deming, 93, the quality control guru who was instrumental in steering Japan from post-World War II
industrial recovery toward world economic power, died of cancer Dec. 20 at his home in Washington.
Dr. Deming, who was virtually unknown to the American general public, was a major public figure in Japan, where
he had been held in awe for more than 40 years. He had first visited Japan in 1947, but he made his great mark in
1950 when he gave a landmark series of lectures to leading industrialists on the gospel of "quality control." His
advice helped them raise their country from the ashes of World War II to enormous industrial power.
Japan's manufacturers were eager to learn about American business techniques. But Dr. Deming urged them to
eschew inefficient American methods and create new systems that focused on the consumer. He told them, in
short, that they could do better than Americans.
Eighty percent of Japan's top business and industry leaders, or about 230 officials, managed to attend the eight
day-long lectures.
Dr. Deming convinced the Japanese that focusing on quality, and producing goods that didn't break or wear out,
could make them a force in world markets. At the time, "Made in Japan" was synonymous with cheap products
and inferior construction. The country was locked in poverty created by the devastation of World War II, and
economic planners thought it would be a miracle if the pre-war standard of living could be restored.
Within months of his lecture series, Japanese companies began instituting the statistical consultant's ideas and
eliminating waste that had helped suppress industrial growth. While energy consumption dropped, quality rose,
and Japan's economic strength increased dramatically.
"I told them that Japanese industry could develop in a short time," Dr. Deming told an interviewer in 1980. "I told
them that they could invade the markets of the world and have manufacturers screaming for protection in five
years. I was, in 1950, the only man in Japan who believed that."
He told them that it was always cheaper to do the job right the first time than to let defects enter the production
line.
"Quality is not something you install like a new carpet or set of bookshelves," he would say. "You implant it.
Quality is something you work at. It is a learning process."
"We needed his authority," one Japanese industrialist said. "He fascinated the Japanese people."
In later years, when Dr. Deming returned to Japan, he was always welcomed back by extensive television
coverage and bowing dignitaries. "He is considered like a god," the director of the U.S. office of the Japan
Productivity Center told Washington Post staff writer John Burgess in 1988.
Since 1951, Japan has yearly awarded prestigious "Deming Prizes" to companies that excel in management and
production. Another mark of the esteem in which he is held in Japan can be seen in the main lobby of the Toyota
headquarters building in Tokyo. Three portraits dominate the lobby, one of the company's founder, the second of
its current board chairman and the third, and largest, of Dr. Deming.
In the United States, the tall, craggy quality control specialist worked out of a basement office in his home near
Westmoreland Circle in Northwest Washington. He had been a longtime professor of statistics at New York
University and also had taught math, engineering and physics earlier in his career. He also had been a
Washington civil servant. He was a specialist in statistical quality control, the careful monitoring and analysis of all
aspects of production.
He lectured businesses and other organizations about identifying weak points and eliminating defects. He urged
manufacturers to involve workers in decision-making. In recent years, his teachings have been more readily
embraced by American industrialists anxious to compete with the Japanese. Some, including automakers, have
reported improvements in productivity.
One outgrowth of his Japanese lectures was the creation of so-called quality circles, committees of workers
trained to analyze and solve quality problems. Widely adopted in Japan since the 1950s, quality circles first
appeared in this country at Lockheed Missile and Space Co. in 1974. A decade later, there were thought to be
more than 3,000 such circles at U.S. compa-
nies, including 90 percent of the Fortune 500 corporations.
He advised cooperation over competition, both with employees and subcontractors. Rather than switching from
supplier to supplier to get the best price, he counseled, a company should settle on one supplier and build a long-
term relationship. But for years, American industrialists thought Dr. Deming's ideas would prove too hard to
institute, saying that management and workers differ in many ways from those in Japan.
Dr. Deming remained largely a prophet without honor in his own land until 1980. It was a year in which the per
capita gross national product in the United States, once first in the world, had fallen to seventh place, and the
Japanese had come to dominate consumer goods markets.
That summer, NBC News broadcast a special report, featuring Dr. Deming and others, called "If Japan Can . . .
Why Can't We?" It helped generate new interest in the manufacturing techniques of Japan. NBC received
thousands of requests for videotapes and transcripts. American companies anxious about foreign competitors
began to seek Dr. Deming's advice. He become a consultant at Fortune 500 companies, including Ford and
General Motors.
Dr. Deming was born in Iowa and raised in Wyoming. He was an elec-
trical engineering graduate of the University of Wyoming and received a doctorate, in mathematics and physics,
from Yale University.
He came to Washington in 1927 to do research for the Agriculture Department on the physical properties of
compressed gases. By 1936, he was in charge of courses in mathematics and statistics at the Agriculture
Department's graduate school. He joined the Census Bureau in 1939 as head mathematician and statistician and
began lecturing about quality control. His work during World War II focused on teaching American engineers and
technicians to use statistics to improve the quality of war materiel. It was essentially the same course he de-
livered to post-war Japan. He joined the NYU faculty in 1945.
He was a member of the International Statistical Institute and the National Academy of Engineering. He was
elected to the Science and Technology and the Automotive halls of fame. His books included "Out of Crisis" and
"The New Economics."
Dr. Deming's first wife, Agnes Deming, died in 1930, and their adopted daughter, Dorothy Deming Baker, died in
1984. His second wife, Lola Deming, a researcher at the National Bureau of Standards, died in 1986. Survivors
include two daughters from his second marriage, Diana Deming of Los Angeles and Linda Ratcliff of Potomac;
seven grandchildren; and three great-grandchildren.
FUNDAMENTALS OF DEMING MANAGEMENT THEORY AND PRACTICE
"Adopt and Institute Leadership" Dr. Deming's point #7,
Three key aspects of leadership that require knowledge of psychology are personality, values, and beliefs.
Participants in this one-day workshop explored each of these three issues through a combination of group
exercises, lecture and discussion lead by Harold Haller. The following presents a glimpse of the rich content and
process of this day's activity.
Each person must be encouraged to exercise her uniquely individual gifts to accomplish the aim. A leader has to
adapt his personality to help the people he leads. Understanding personalities is an important skill for leaders.
With an understanding of personality, individuals can improve communication. The Myers Briggs Type Indicator
(MBTI) is a widely used pencil and paper inventory of an individual's personality preferences. Haller encouraged
leaders to use MBTI to improve self knowledge and interpersonal communications among their team members.
A few tips for recognizing personality preferences:
1. Establish whether the subject's preference is an E (Extrovert) or an I (Introvert). This refers to how people
process information. Pose a question to a subject where there is no quick answer. The extrovert will often begin
discussing the question while the introvert will think about it before answering.
2. Try to establish whether the subject likes or ever needs closure relative to issues. Consider proposing a future
meeting between you and the subject. The J (Judging) will want the details but the P (Perceiving) will be
comfortable keeping the plans flexible.
3. To understand whether a person is a Sensing type (S) or an Intuitive (N) type, get into a discussion with them
about a problem. S's will want to identify the details fairly quickly, N's will begin by avoiding the details and
instead, look at the "big picture" first.
4. To determine if a person's preference is Thinking (T) or Feeling (F), bring up a situation about a decision that
may be announced in the future. Ask what is liked or disliked about this decision. T's will like the logic and order of
planning before they consider the impact. F's will start by discussing the impact of the decision on people and
then examine the logical aspects of the decision.
Examining Beliefs
Haller defined beliefs as "Things believed or accepted as true; especially a particular tenet or body of tenets,
accepted by a group of persons."
Most people don't question their beliefs. Leaders need to help their people identify and clarify what they believe.
Beliefs determine what can be done.
Some examples of personal and organizational beliefs:
Do we believe that people want to do good work or do we believe people don't really care about work?
Do we believe that it is more important to look good or is it more important to do the right thing?
Do we believe all people can learn and grow?
Values were defined as "Principles, standards, or qualities considered worthwhile, desirable or highly regarded.
The things that are important."
"Organizations need to define and publish their values. The definition of these values starts with Senior
Management. A common set of organizational values helps individuals operate whenever policies are not explicit
and specific procedures are absent. Shared values enhance communication.
When values are in conflict active listening is a needed element in communication. Leaders recognize that
people in an organization need nurturing and support in order to effect long-term change.
____________________________________________________________
Harold S. Haller, Ph.D. President, Harold S. Haller & Co.
Dr. Haller studied with Dr. W. Edwards Deming from 1981 to 1993, and frequently assisted Dr. Deming with his
famous four-Day seminars. For 20 years, Dr. Haller has brought the real world into the classroom as an adjunct
professor and lecturer. As a consultant to more than 50 companies since 1967, Dr. Haller has concentrated on
quality and productivity improvements in management, marketing, production, and R&D.
____________________________________________________________
Role of a Manager of People from W. Edwards Deming's Seminar Notes, 13 August, 1990.
1. A manager and his people understand the meaning of a system, and how the work of his group may support
these aims.
2. A manager works in cooperation with preceding and with following stages toward optimization of the efforts of
all stages.
3. He understands that all people are different from each other and tries to create for everybody interest,
challenge and joy in work. Improvement and innovation are his aim.
4. He acts as a role model and in an unceasing learner.
5. He is coach an counsel, not a judge.
6. He understands a stable system including what to do about mistakes and failures of people and how to help
them. 7. He has 3 sources of power. l) Forma] 2) Knowledge 3) Personality
8. He will study results with the aim to improve his work.
9. Another aim is to learn who if anybody is outside the system, and in need of special help.
10. He creates trust (This takes time. Give your word and follow up on it.)
11. He does not expect perfection.
12. He listens and learns without passing judgment.
13. He understands the benefits of cooperation and the losses from competition between people and between
groups.
[This article is] by Cindy Graham
Note: This article is offered for download from the TQM BBS with permission from _Improve_, the newsletter of
the INDY Quality, Productivity and Involvement Council. The newsletter is copyrighted. Therefore, further
dissemination of this article is forbidden without explicit permission from IQPIC.
Contact:
IQPIC 9035 Pinecreek Court Indianapolis IN 46256 Phone: 317-845-4393 Fax: 317-845-9254 E-mail:
iqpic@indy.net
[The following is quoted from the December 1993 edition of _Public_Sector_Quality_Report_, p. 5.]
"Quality Quotes" W. Edwards Deming 1900-1993 "Everybody here has a customer. And if he doesn't know who it
is and what constitutes the needs of the customer...then he does not understand his job."
"Your study of the consumer--what he finds right and what he finds wrong--and your innovation are all bound up
together. It will affect design and redesign of your product or service."
"Inspection with the aim of finding the bad ones and throwing them out is too late, ineffective, costly. Quality
comes not from inspection but from improvement of the process."
"Price has no meaning without a measure of the quality being purchased."
"People are entitled to joy in their work and a sense of ownership."
"Purchasing should be a team effort, and one of the most important people on the team should be the chosen
supplier--if you have a choice-- picked on the basis of his record of improvement...
"Putting out fires is not improvement. Finding a point out of control, finding the special cause and removing it, is
only putting the process back to where it was in the first place. It is not improvement of the process. You are in a
hotel. You hear someone yell fire. He runs for the fire extinguisher and pulls the alarm to call the fire department.
We all get out. Extinguishing the fire does not improve the hotel. That is not improvement of quality. That is putting
out fires."
"There is no excuse to offer for putting people on a job that they know not how to do. Most so-called 'goofing off'--
somebody seems to be lazy, doesn't seem to care--that person is almost always in the wrong job, or has very
poor management."
"Education in simple but powerful statistical techniques is required of all people in management..."
"People work in the system. Management creates the system."
Deming, W.E. (1993). The New Economics for Industry, Government, and Education. Cambridge: Massachusetts
Institute of Technology
Deming, W.E. (1986). Out of the Crisis. Cambridge: Massachusetts Institute of Technology.
Mann, N.R. (1987). The Keys to Excellence: The Story of the Deming Philosophy, Los Angeles: PresiwickBooks.
Scherkenbach, W.W. (1986). The Deming Route To Quality and Productivity: Roadmaps and Roadblocks.
Washington: CEEPRESS.
Scherkenbach, W.W. (1991). Deming's Road to Continual Improvement. Knoxville: SPC Press.
Walton, M. (1990). Deming Management at Work. New York: G.P. Putnam's Sons.
Walton, M. (1986). The Deming Management Method. New York: Dodd, Mead.
Dobbyns, L., Mason, C.C. (1991). Quality or Else. Boston: Houghton Mifflin Company.
Gabor, A. (1990). The Man Who Discovered Quality. New York: Random House.
Imai, M. (1986). Kaizen: The Key to Japan's Competitive Success. New York: Random House Business Division.
Ishikawa, K. (1985). What is Total Quality Control? The Japanese Way. Englewood Cliffs: Prentice-Hall.
Johnson, H.T. (1992). Relevance Regained, From Top-Down Control To Bottom-Up Empowerment. New York:
The Free Press.
Land, G., Jarman, B. (1992). Break Point and Beyond, Mastering the Future - Today. Harper Business.
McConnell, J. (1988). Safer than a Known Way. Dee Why, Australia: Delaware Books.
Moen, R., Nolan, T.W., Provost, L.P. (1991). Improving Quality Through Planned Experimentation. New York:
Mcgraw-Hill.
Reich, R.B. (1991). The Work of Nations. New York: Vintage Books.
Ouchi, W. (1984). The M-Form Society - How American Teamwork Can Recapture the Competitive Edge.
Senge, P.M. (1990). The Fifth Discipline. The Art and Practice of The Learning Organization. New York:
Doubleday.
Tichy, N.M., Devanna, M.A. (1990). The Transformational Leader. New York: John Wiley and Sons.
Wall, R., Solum, R., Sobol, M. (1992). Visionary Leader. Rocklin: Prima Publishing.
Wheatley, M. (1993). Leadership and the New Science. San Francisco: Berrett-Koehler Publishers.
Handbooks
GOAL/QPC. (1988). The Memory Jogger. GOAL/QPC, Methuen, MA, (508) 685-3900
GOAL/QPC. (1989). The Memory Jogger Plus+. GOAL/QPC, Methuen, MA, (508) 685-3900
Scholtes, P.R. (1989). The Team Handbook. Joiner Associates, Inc. Madison, WI, (608) 238-8134.
January 1994
CYCLE 2
Deepen understanding of System of Profound Knowledge and its application to key business systems and the
organization as a whole; develop basic understanding of the organization and its role in the economic, social and
political system. Introduce core MBA business material. (Internship)
CYCLE 3
Develop understanding of measurement, its purpose, limitations and application to management systems. Extend
and deepen understanding of core business material, knowledge of variation and theory of knowledge.
(Internship)
CYCLE 4
Develop strategies for leadership of transformation through understanding of organizational learning and
optimization of a system. Develop appreciation for the integration of functional business specialties and the
System of Profound Knowledge. (Internship)
CYCLE 5
Deepen understanding of cultural formation and change and optimization of the enterprise. Synthesize business
knowledge, System of Profound Knowledge and leadership knowledge and skills. (Internship)
The Internships
Internships provide students with an opportunity to test theory, learn by doing, experience leadership and practice
teamwork.
Each student spends a total of twenty-four weeks on site with a participating company or sponsoring employer.
Faculty and sponsoring executives work together to guide the students through their learning experience. A
symposium involving faculty, sponsors, and students is held at the end of the program.
Other Program features
- Students attend a four-day seminar on the Deming System of Profound Knowledge.
- Internships, as well as individual and group projects, provide opportunities to apply theory and develop skills.
- Course material is integrated to present multi-disciplinary viewpoints.
- Prominent executives from companies under going transformation and recognized scholars present lectures and
interact with students.
- Regular study group sessions of students, educators, and executives foster understanding of principles.
- Study groups prepare research papers for distribution to interested audiences.
The Deming Scholars MBA Program is offered by Fordham's Management Systems Area in cooperation with the
Center for Advanced Management Studies.
About Fordham University Graduate School of Business Administration:
The Fordham Graduate School of Business Administration, established in 1969, embodies the University's Jesuit
tradition and a long-standing faculty commitment to the quality management approach. This combination has
fostered an atmosphere of cooperation, interaction and involvement that promotes interdisciplinary activity and
achievement.
At Fordham, students are able to study for the MBA in the midst of one of the world's great commercial, financial
and communications centers--New York City. Located within the Lincoln Center complex in midtown Manhattan,
the School offers students a flexible, state-of-the-art curriculum combined with the cultural and professional
resources of New York.
Deming Scholars MBA Program Advisory Board
Joyce Orsini, Ph.D. Fordham University Program Director (212) 636-6219
Nida Backaitis, Ph.D. Consultant
Edward M. Baker, Ph.D. Consultant
Barbara B. Lawton, Ph.D. University of Colorado
Marta Mooney, Ph.D. Fordham University
Gipsie Ranney, Ph.D. Consultant
Michael Tveite, Ph.D. Consultant
W. Edwards Deming, Ph.D.* Senior Program Advisor
The Deming Scholars MBA Program at FORDHAM UNIVERSITY Graduate School of Business Administration
Center for Advanced Management Studies 113 West 60th Street New York, NY 10023 (212) 636 6219 FAX (212)
765-5573
* Deceased, 1993 ---------------------------------------------------------------------------- ----------------------------------------
For Companies: A Partnership That Works
Fordham's Graduate School of Business is responding to the demands of executives for a new brand of
leaders...leaders equipped to spearhead your company's transformation to new age management. To educate
these leaders of tomorrow, we have created the Deming Scholars Program, an intensive, full-time, limited
enrollment MBA program.
But developing talent to compete in the real world requires cooperation...a partnership between business and
academia. We need companies to provide internships for students enrolled in this innovative new program. Do
any of the following apply to your organization?
- Interested in facilitating your business transformation?
- Interested in developing in-house expertise in quality management?
- Interested in reducing dependency on external consulting services?
- Interested in discovering what's involved in leading organizations that depend on "knowledge" as their primary
productive resource?
- Interested in helping to improve graduate management education and helping motivated students learn?
The Deming Scholars MBA Program
This enriched MBA program, begun in 1992, presents the management teaching of world renowned management
thinker Dr. W. Edwards Deming within the framework of Fordham's fully accredited MBA program. Dr. Deming
worked with Fordham faculty to develop this innovative new program--the only MBA program in the world which
Deming recommended. Enrollment is limited to 25 students.
As described in the accompanying description, coverage includes conventional MBA topics such as accounting,
economics, finance, information systems and marketing. But it goes on to present the teaching of Dr. Deming's
System of Profound Knowledge: systems theory, theory of variation, learning and knowledge theory and theory of
individual and organizational behavior. The combined coverage helps students develop the practical knowledge
and skills needed to successfully lead today's knowledge-centered organization.
The Internship Component
Internships that create opportunities for students to test and refine their understanding of concepts learned in
class are vital program elements. Students spend the first 12 weeks of the program attending classes at
Fordham's Lincoln Center campus. The following three weeks are spent working as interns at participating
companies. This first learning "cycle" is followed by three more, each involving eight weeks of classroom study
followed by seven weeks on site as interns. A final eight-week classroom session concludes the 18-month
program.
A Choice of Arrangements
Companies can participate in two ways. They may choose to sponsor an Executive "Intern", where the student is
a regular employee of the sponsoring company. Or, they may choose the "Standard Internship", where they select
a student who has independently enrolled in the program.
The Executive Internship
This method provides firms with a cost effective means of developing in-house quality management expertise and
reducing dependency on external consultants.
To create an Executive Internship, the firm recommends one or more talented, highly motivated employees to
participate in the Deming Scholars MBA Program. Applications are reviewed and approved by Fordham
administrators in accordance with preset selection criteria. Students spend internship periods with sponsoring
firms. By the time they graduate, they have received the best available grounding in knowledge and skills needed
to help their companies lock in competitive advantage.
For acceptance into the program, applicants must satisfy admission criteria stipulated by Fordham's Graduate
School of Business. Requirements include an undergraduate degree from an accredited college. Several years of
work experience is preferred. In addition, suitable candidates for the Deming Program will be high-energy self-
starters with recognized leadership, cognitive and communication skills; a fierce desire to learn; an ability to
cooperate with others and a commitment to helping their companies compete successfully in today's turbulent
economic climate.
The Standard Internship
Companies can also participate in the Deming Scholars MBA program by providing internships for students who
enrolled in the program independently.
Participating companies interview potential candidates and select a student who best satisfies their needs. The
sponsoring firm gains over the course of the internship as the student's knowledge of quality management and
leadership skills broaden and deepen. In addition, the company has the "inside track" on recruiting and hiring this
highly qualified individual upon graduation.
The Role of Interns
Students enrolled in the Deming Scholars MBA Program have two overriding responsibilities-- to gain knowledge
and to develop their leadership skills. As interns, they are expected to learn to apply systems thinking and
methods to help the enterprise achieve its business objectives. Initially, their responsibilities to the program and
sponsors revolve around listening, observing, learning and communicating. Later in the program, these
responsibilities expand to include analyzing and coaching.
Specific Tasks
Decisions about how interns spend their time is made jointly by the sponsoring company, Fordham faculty and the
intern. Early in the program, a company representative and Fordham's Intern Coordinator will discuss possible
internship assignments. The aim: to maximize both the learning experience for the student and his or her
contribution to the company. In keeping with the Plan-Do-Study Act (PDSA) learning cycle, agreements are
flexible and can be modified at any time during the course of study.
Work Hours
During internship periods, interns work at sponsoring companies full time with an occasional Friday kept free to
allow time for interns to meet with Fordham faculty to review and debrief learning and to prepare for the weeks
ahead.
Compensation
Executive Interns work out their own financial arrangements with sponsoring organizations. Sponsors of Standard
Interns are expected to provide interns with a modest stipend to help defray extra expenses associated with the
internship.
Bringing the Best Together
The Deming Scholars Program leads the way for the evolution of MBA programs over the next decade. The
program owes its forward thinking to the involvement of one of America's most progressive management
thinkers--W. Edwards Deming. Its faculty, students and corporate sponsors all add their own brand of commitment
and expertise to the mix...and the result is a refreshing blend of competence and achievement. We welcome
inquiries from all types of companies: large and small, service and manufacturing.
Interested in being on the leading edge of management education?
Contact: Joyce Orsini, Ph.D., Program Director Deming Scholars MBA Program Fordham University Graduate
School of Business Administration 113 West 60th Street New York, New York 10023 Phone: 212-636-6219 Fax:
212-765-5573 e-mail: nmurray@mary.fordham.edu
_____________________________________________________________
**NOTE**
This article was posted on the TQM BBS for public download with the express permission of Joiner Associates
Incorporated. But the text is copyrighted and may not be reproduced without permission. For permission, further
information, or a list of other publications available from Joiner Associates, call or write:
Susan E. Reynard Senior Editor Joiner Associates Incorporated 3800 Regent Street Madison Wisconsin 53705
Telephone: 608-238-8234, extension 232 Fax: 608-238-2908
____________________________________________________________
THE KEY ROLE OF STATISTICIANS IN THE TRANSFORMATION OF NORTH AMERICAN INDUSTRY Brian L.
Joiner
This article was presented as the Youden Memorial Address at the ASA-ASQC Fall Technical Conference in
London, Ontario, October 25, 1984. It then appeared in The American Statistician, August 1985, Vol. 39, No. 3.
There is much to be done if North American industry is to survive in the new economic age. We statisticians have
a vital role to play in the transformation that is needed to make our industry competitive in the world economy. As
statisticians, we are faced with a major challenge--and a major opportunity--unlike anything we have ever
experienced before. This article describes this opportunity and seeks to interest others in joining forces to help our
industry meet its challenges. The discussion will move from the goal--improvements in quality and productivity--to
the nuts and bolts of how statisticians can prepare for a new role in industry.
We begin with a reminder that major improvements in quality and productivity are indeed necessary if our
industry is to regain a competitive position in world markets. The second point is also a reminder: statistics and
statisticians are important in generating these improvements. The third point is not yet so widely accepted: a new
managerial climate is necessary before these gains can be sustained. Fourth, and even less well known, is that
statisticians have a major role to play in creating this new climate. Finally, specific steps are recommended for
those who wish to prepare for a new role in helping to create the right managerial climate for achieving major
continuous improvements in quality and productivity.
The Need for Improvements in Quality and Productivity
Automobiles, cameras, stereos, color TVS, food processors, microwave ovens, athletic equipment, computer
chips, medical equipment, industrial robots, optical equipment, hand tools, electric motors--This is a portion of a
list developed by Stanford Professor Steven Wheelwright; it was communicated to me by Than Godfrey of AT&T
Bell Laboratories. What do these products have in common? They are attractive, complex products of high
technology, demanded in high volume--just the types of products for which a country would like to be a leader in
design and manufacture. But these are products in which the U.S. worldwide market dropped by 50% during the
1970s. And this list is just the tip of the iceberg. Japan and, increasingly, other countries are beating our socks off,
and they show no signs of letting up.
Statistics and Statisticians
Statistics and statisticians are already helping our industries make gains in quality and productivity. There are
many excellent, dedicated statisticians in industry today. Nevertheless, those of us who work in and with industry
know that our effectiveness is related to the managerial climate in which we work: we know we could accomplish
much, much more in a more favorable climate. This brings me to my major point: the need for a managerial
climate in which major gains in quality and productivity become the norm.
New Managerial Climate
Managerial climate is the secret to Japan's success--not robots, not tax policies, not cultural differences. But what
managerial climate is best, and why? An article in the Wall Street Journal (Calonius 1983), illustrates what the
"new climate" is all about. RCA built a TV plant in Memphis in 1966 but shut it down five years later after a series
of wildcat strikes, union-authorized strikes, apparent product sabotage, and layoffs that reduced the payroll from
4,200 workers to 1,600. Then Sharp of Japan moved in to salvage the plant and the reputation of the Memphis
work force. During the past four years, this Japanese-managed plant has rolled out a million color TVS and a
million microwave ovens. Productivity is high; defect levels are very low. Sharp accomplished this with American
workers, American components, and a serious recession--and without layoffs or loss of profitability. What is their
secret? It has three parts:
1. obsession with quality, 2. achieving a feeling among employees that they are one big family, and 3. identifying
and correcting problems by means of data, not opinion or emotion. These principles are best illustrated by a
triangle, which connotes integrity, wholeness, and a synergy among the parts (see Fig. 3.1).
An Obsession With Quality
Let me tell a story to illustrate what I mean by an obsession with quality. One company I work with acquired a
very large number of a part (434,000, to be exact) from a supplier before experiencing their first failure with it. It
was a "minor" part, costing only 11? They notified the supplier, and the supplier came to inspect the failed part
and the circumstances of the failure. The part proved to be defective, so the supplier changed their process. They
subsequently purchased more than 3,000,000 of these parts with only one more failure. Now I ask you, do you
think this supplier was under American or Japanese management? Another company experienced an 8.5% failure
rate with another part. The supplier of that part wanted to know why the company was complaining; the 8.5%
failure rate was better than the industry average. You guessed. That supplier was American managed!
Scientific Approach: Focus on Processes
The key to improved quality is improved processes. Quality is improved through improvement in process, not by
inspection. This recalls the 85/15 rule of Juran and Deming, which says that at least 85% of problems are system
problems and less than 15% are due to workers. (Deming now says that more than 94% of problems appear to be
system related.)
Processes make things work. Thousands of processes need improvement, including things not ordinarily thought
of as processes, such as the hiring and training of workers. We must study these processes and find out how to
improve them. The scientific approach, data-based decisions, and teamwork are key to improving all of these
processes. This emphasis on processes is one of the principal things Japanese managers have achieved, but
American managers typically have not.
All One Team
This is absolutely necessary. Lacking team spirit, employees can, through passive resistance, impede the best
efforts at quality improvement. With it, everyone seeks improvement, everyone gains from improvement, and
teamwork becomes pervasive.
Here is an example of how one American-managed company improved its productivity and at the same time
fostered the team spirit among its workers. This company employed 20 workers in a metal finishing area. These
workers, their managers, and technical support people set to work to improve productivity. As a result, the number
of workers required dropped first to 11 and then to seven. Now the usual response of American management
would be to lay off the "surplus" workers. This company, however, taught them new skills, moved them into new
jobs, and recognized their contributions to the company. What would have happened if they had been laid off
instead?
Another success story (Serrin 1983) is about a Warwick TV plant that moved from the Midwest to the Sun Belt to
be competitive. But that did not work either, and after a few years the plant was sold to Sanyo, a Japanese
company. Sanyo kept the same workforce and now turns out excellent TV sets at a high level of productivity. The
secret? A new managerial climate, with authoritarianism de-emphasized. A 12-year worker says, "We are a
family."
The triumph of Japanese management is being repeated all over North America. The companies are not perfect,
but they are highly successful. The February 2, 1984 issue of USA Today ("Japan's Goods Roll In") reported that
476 Japanese-owned companies now employ 82,900 American workers in the manufacture of everything from
balloons to automobiles. It can be done in North America. It is being done.
The triangle, which has quality, teamwork, and the scientific approach at its apices, summarizes the major
requirements of the new managerial climate needed for our industry to regain its competitive position in world
markets. You may recognize that this triangle is also a condensed form of Deming's "14 Points for Management."
Now I acknowledge that not everyone agrees with Deming. I must tell you, though, that after several years of
focused study and hard work in this area, I have become increasingly convinced that while Crosby, Juran, and
others have many good ideas, Deming goes much further in understanding the deep underlying problems facing
North American industry.
Some statisticians think Deming has gone too far and is too confrontational with top management. I will not argue
about the packaging of his message; it might be improved. But I believe the message itself is right on target, and I
ask you to suspend judgment on Deming and open your mind to the possibility that he may be right. Let us review
his "14 Points for Management," which apply to organizations of all types and all sizes--not only to entire
companies but to their parts:
1. Create constancy of purpose toward improvement of product and service. 2. Adopt the new philosophy; we are
in a new economic age. 3. Cease dependence on inspection to achieve quality. 4. End the practice of awarding
business on the basis of initial cost. 5. Improve constantly and forever every activity. 6. Institute training and
education on the job, including management. 7. Institute supervision. 8. Drive out fear. 9. Break down barriers
between departments. 10. Eliminate slogans and exhortations. 11. Eliminate work standards that prescribe
numerical quotas. 12. Remove barriers that rob workers of their right to pride of workmanship. 13. Institute a
vigorous program of education and retraining. 14. Put everybody in the company to work in teams to accomplish
the transformation. Some statisticians may say, "We can do well enough without the change in managerial
climate." I do not believe it. Let me cite an example. One manager I know got really turned on when he learned
about statistics. He studied processes and improved them. He used Pareto charts, control charts, and design of
experiments. He isolated the causes of problems and eliminated them. His workers thought he was super,
because he worked with them and helped them get rid of many of the hassles that had plagued them in their jobs.
Then he was relieved of his responsibility because his manager and other managers did not understand the
85/15 rule. When he pointed to problems outside his own area, the other managers felt he was pointing to them--
when in reality, he was pointing out the problems in the system.
You may encounter similar problems. Your work may often be stopped at departmental barriers. You may be
asked to work on problems that you know are not the most important and urgent problems of the company. Do
you work in a place where other employees, from top to bottom of your organization, actively seek your advice to
help them improve quality and productivity? You are useful to your organization now, but you could be much,
much more useful.
Role of Statisticians in Creating the New Managerial Climate I have briefly described the new managerial climate
and why it is important. I hope you agree with me that it is needed. The next question is, "Is there anything we
statisticians can do to help create the new climate?" The surprising answer is, "Yes." There are things that we
statisticians are among the best prepared to do. Deming told me that for three years before I believed him. He
said, "Nothing less is required than the transformation of the American style of management--and you
(statisticians) must show management how to create that climate."
I could not see it. I could not see why I or other statisticians should be involved in the creation of a new climate. I
could see why statisticians would benefit from the change--that part was relatively easy. But what did I know that
would help with the transformation of the American style of management? Only in the past year have I come to
understand what Deming meant, and I would like to share with you my new understanding of his message. I do
not expect to convince everyone to become involved in the transformation of management. That is not necessary.
But some of us do need to be involved.
It will not be easy. The transformation of management is not a role for which we have been well prepared. It is a
much broader and more ambitious role, requiring new skills that most of us have tended not to develop. Let us
look at a few aspects of the new management philosophy and note what contributions statisticians can make
toward their implementation.
Everyone Seeking Improvements in Quality and Productivity
Statisticians can help implement this by teaching managers how to focus on processes rather than on blaming
individuals. American managers do not normally think in terms of processes, especially not processes like
recruiting well-qualified employees, training first-line supervisors, and introducing new products. Teaching
managers how to study and improve such processes helps them understand why everyone else should also be
studying processes and seeking improvements. Many statisticians find it natural to think in terms of processes: we
know how to gather and interpret data from processes to help improve them.
Statisticians can also help speed up improvements, and the success of these efforts tends to build confidence
and esprit de corps. We tend to seek out causes, not jump to solutions. We ask, Why'? How do you know? more
times. As a result, projects to improve processes are usually completed much faster and with much better results
when statisticians are involved.
For example, in one company a production line often went down. Why? Study found that the ink jet labeling
machine failed frequently. Why? The major cause turned out to be fluctuating pressure in the air lines. The
machine failed whenever the pressure dropped below 66 psi. The study team recommended the purchase of local
compressors to supply uniform pressure. But they should have asked why one more time: they should have
asked why the pressure fluctuated, because it turned out that other machines also had problems when the
pressure dropped. Statisticians tend to persist longer in asking why and thus tend to help teams achieve better
results.
Trust of Management--Absence of Fear
Statisticians can help bring this about by demonstrating to managers that at least 85% of problems are related to
the system, not the worker. As we urge, and help, managers to improve processes throughout the company, they
come to understand the 85/15 rule. These process improvements in turn help convince workers that management
really cares about the organization and thus cares about their collective survival.
We can also eliminate the practice of making demands that are inconsistent with process capabilities. We can
help identify and eliminate inadequate materials or training. Workers will no longer take the brunt of the blame
when processes fail. Thus we may ultimately be able to convince management not to terminate workers when
productivity gains are made or lay them off when the economy dips downward. We may also be able to help
convince management and labor that gains in productivity lead to more jobs and greater job security, not to fewer
jobs and less security.
Eliminating Barriers Between Departments
Statisticians can help quantify current process capabilities. Only when these capabilities are truly known will
others be able to place realistic expectations on them. Unfortunately, management knows today that if they put
enough pressure on one point, that group will generally come through. They often interpret this to mean that
increased pressure is the best way to get results. They need to learn, however, how this pressure distorts the
system and interferes with overall quality and productivity
We can show how understanding processes helps provide ways for data-based communication of departmental
needs. We can help eliminate finger pointing and get down to the facts. "In God we trust. All others must bring
data." Or, "Facts often kill a good argument."
How Statisticians Can Prepare for this Challenge
Statisticians have three types of special knowledge. We are uniquely well qualified (a) to help figure out what
data to collect and how, (b) to interpret data in the face of variation, and (c) to coach others in the proper use of
the scientific approach.
The first and second types of knowledge, figuring out what data to collect and interpreting data in the face of
variation, are obvious. But the third point may be surprising. We often think that other people approach problem
solving and process improvement in the same way we do, even though most statistical consultants would admit
that one of the most valuable contributions they make to an investigation is the use of a logical, data-oriented
approach. As Cochran and Cox (1957) reminded us, perhaps the major contribution a statistician can make in the
planning stages of an investigation does not involve statistical theory at all, but simply forcing the investigator to
explain clearly why he is doing the study, why he chose the proposed method, and why he thinks the completed
study will answer the questions it was intended to answer. Although we statisticians do not usually think of our role
in this way, the role is a natural one, because we as a group are most likely to ask, Why? How do you know? How
will you know?
To be maximally useful in the transformation, however, we must further educate ourselves. We must learn the
new philosophy in depth. We must thoroughly understand the Quality-Teamwork-Scientific Approach triangle and
the teachings of Deming, Juran, and others. We must understand current American management style, its
strengths and weaknesses. Finally, we must prepare to venture far beyond our familiar statistical territory to learn
new skills--interpersonal skills, team-building skills, how to plan for change, and how organizations work.
In conclusion, here are a few specific recommendations for action:
Locate one or more partners who specialize in the new skills and who complement your strengths.
Educate yourself and others concerning what must be done and why. Listen to and study Deming, Juran, and
others. Attend both Deming's and Juran's seminars for management. (Editor's note: As you're reading this article,
thousands of people have now been educated by Dr. Joiner's own management seminars.)
Seek to change roles. Think bigger, more strategically --more like the president of the company or the chairman
of the board. Help get a team organized to work on a key project. Help obtain major, highly visible gains in quality
and productivity. Get higher and higher level managers on board with respect to understanding the new
philosophy. When enough of us have done these things, we will be in a position to make major contributions
toward the survival of North American industry.
Summary
1. Major changes in management are needed if we are to become and remain competitive with the Japanese.
2. Statisticians have a vital role to play in the creation of the new managerial climate.
3. Some of us need to expand our view of what we can contribute to our organizations.
4. We need to develop new skills and new ways of thinking about our roles.
5. Then we will be ready to achieve and sustain major gains in quality and productivity.
Acknowledgments
It is especially appropriate in this Youden Memorial Address to acknowledge my personal debt to W. J. Youden.
He was an early and important teacher and mentor when I first began statistical practice at the National Bureau of
Standards in 1963. By example and advice, he taught me a great deal about how to write, speak. and consult.
Other people who contributed directly and importantly to this paper include W. Edwards Deming, who is the
originator of most of the ideas expressed here; Laurie Joiner, who worked long and hard with me on the
expression of these ideas; Carol Steinhart, who was a major editorial collaborator; and a large number of
colleagues who gave me support and strong challenges on several earlier drafts.
References
Calonius, L.E. "Factory Magic," Wall Street Journal, April 29, 1983, p. 1.
Cochran, W. G., and Cox, G. M. Experimental Designs (2nd ed.), New York, NY: John Wiley, 1957.
"Japan's Goods Roll in: East comes to the West," USA Today, Feb. 2, 1984.
Serrin, W. "Japanese Clearly Doing Something Right in U.S. Plant," New York Times (reprinted in San Diego
Mercury News, Nov. 9, 1983).
About the Author
Brian L. Joiner is co-founder and CEO of Joiner Associates Incorporated. One of the original nine judges for the
Malcolm Baldrige National Quality Award, he has received numerous honors, including the W. Edwards Deming
Medal and the 1992 ASQC/William G. Hunter Award. He holds M.S. and Ph.D. degrees from Rutgers University.
A LESSON LEARNED AND A LESSON FORGOTTEN Nearly a half-century ago, General MacArthur ordered
Homer Sarasohn to tell Japanese businessmen how things were done. The Japanese listened, but the U.S.
forgot. By Robert Chapman Wood
"WHAT THE JAPANESE learned about management after World War II, they learned from the Americans. And
the Americans forgot their own lessons."
There is a lot of truth in that statement. Only a few decades ago, the world, Japan included, looked to the U.S. for
management models. Now we look to the Japanese. How did this reversal of roles come about?
A good man to ask is the one who made the above statement, Homer M. Sarasohn. He was among the very first
who taught Japa- nese business people how the Americans did it, and he was in a strategic position to watch the
unfolding of the drama of U.S. industrial decline and Japanese industrial rise. Returning to the U.S., Sarasohn
built a successful career that included serving as director of engineering communications at IBM headquarters in
Armonk, N.Y. Sarasohn believes that his former employer has retained the elements that once made the U.S. the
envy of the industrial world. But our industry as a whole has lost it, he sadly fears.
Living in retirement at age 72, in Scottsdale, Ariz., Sarasohn recently gave FORBES his views on how it
happened that the Japanese learned from us while we forgot our own lessons. In a long interview, he not only told
us how it happened but gave his views on what we can do to recover what we lost. Here's the story.
In 1946 General Douglas MacArthur was commander of the U.S. Occupation forces in Japan. He urgently
wanted Japan to mass-produce radios so that the U.S. Occupation authorities could reach every Japanese village
quickly with its messages. Sarasohn, the son of a midwestern manufacturing representative, had worked as a
radio product development engineer at the old Crosley Corp. (long since absorbed into what is now Textron)
during World War II. He went on to work on radar as an engineer at MIT and Raytheon after the war, becoming
part of an exclusive fraternity of young engineers.
In 1946 Sarasohn received a telegram: "General MacArthur's headquarters has requested your services earliest
possible date." Brandishing the now-yellowing telegram, Sarasohn recalls thinking it was a joke. When a call from
an irate colonel convinced him it wasn't, he decamped for Tokyo. He was 29 years old.
MacArthur wanted Sarasohn to help the Japanese produce the radios and communications equipment dear to
the general's heart. Sarasohn found that while the Japanese knew a fair amount about electronics, they seemed
to know nothing of modern management or production techniques. Sarasohn recalls:
"They thought that quality meant making half of your prod- ucts okay and throwing out the other half. They
couldn't under- stand why they shouldn't make vacuum tubes in a shack with a dirt floor. [Air filled with dust
particles produced defects when dust landed on filaments.] I decided that I was going to be a dicta- tor." At age 29
he took a role in much of the electronics indus- try analogous to the role MacArthur himself took toward Japan as
a whole: a dictator who paradoxically demanded "democratic management." In four years, this democrat in
dictator's clothing may have accomplished more than any economic dictator in history.
Initially, Sarasohn spent much of his time finding materials the Japanese needed to get radio parts into
production. Soon a trickle of miserably unreliable radios was reaching Japan's villages. Sarasohn kept prodding
for improved productivity and better management.
In 1948, Sarasohn was joined in the Occupation forces' Civil Communications Section by Charles Protzman a
Western Electric engineer. They concluded the Japanese would never produce quality unless someone taught
them modern management, starting with the basics. So in 1949 the pair of young Americans proposed a course
for top Japanese managers.
And here's the rub: Most of the principles Sarasohn and Protzman taught in the course are principles that
Americans now think of as Japanese attributes. The Japanese quickly saw the sense of it. They liked the course
so well they were still repeating its teachings 25 years later in a standard course for people on the track to top
management.
Sarasohn and Protzman's pupils went on to become a Who's Who of Japan's electronics industry. They included
Matsushita Electric's Masaharu Matsushita; Mitsubishi Electric's Takeo Kato; Fujitsu's Hanzou Omi; Sumitomo
Electric's Bunzaemon Inoue; Akio Morita and Masaru Ibuka, the founders of what is now Sony Corp. This cadre of
leaders spread the principles throughout Japanese industry.
Matsushita Electric's Masaharu Matsushita recalls the course clearly:
"I believe this seminar was very useful to Japanese manufac- turers at that time. Mentioned on the first page of
this seminar's text was the title 'The Objective of the Enterprise,' under which the philosophy of corporate
management--the social mission of the enterprise--was clearly explained and this made a deep impression on the
participants of this seminar.
"The theories in the seminar may well be used today," Matsushita adds, "especially the concept about the social
mission of an enterprise as the objective of the enterprise."
The Occupation's Economics and Social Section objected to the seminar. "They said we might be too
successful," recalls Sarasohn. It was perhaps the understatement of the century. But both the ESS people and the
CCS engineers made 20-minute presen- tations before MacArthur. The ESS warned of the perils of Japa- nese
competition. Sarasohn insisted that it would ultimately be more practical to teach the defeated and starving nation
to be self-sufficient. After both sides had finished, says Sarasohn, MacArthur turned to him, snapped, "Go do it,"
and walked out of the room.
Sarasohn and Protzman were followers of scientific manage- ment in the tradition of Frederick W. Taylor. When
people today think of Taylor (if they think of him at all), they tend to think of dehumanizing time-motion studies, as
made famous in Charlie Chaplin's Modern Times and in Cheaper by the Dozen by Frank Gilbreth Jr. and
Ernestine Gilbreth Carey. This does an enormous disservice to Taylor and to the scientific management Sarasohn
and Protzman taught. What Taylor principally urged was what came to be known as the systems approach to
manufacturing: the idea that every part of a factory or a whole organization should be scientifically analyzed and
redesigned to achieve the most efficient output. Managers should look at every aspect of a manufacturing
operation as a piece of an integrated system, and should think through the consequences for the entire system of
fiddling with any of its parts. Unfortunately, as the power of the human relations movement grew in the 1950s and
1960s, this eminently sensible systems approach to running a business came to be considered insufficiently
sensitive to human needs and wants, too mechanical.
But when Sarasohn and Protzman began their course, U.S. management still thought along industrial
engineering lines. The M.B.A. was still a rarity. Many managers studied engineering and science in college, then
learned management on the job. Literally on the job. Typically, they did not start out as "managers" but did stints
in every part of their organization. U.S. managers generally knew what it was like to work a lathe or serve on an
assembly line. Business, like the army, was not a democracy, but managers tended to be up-from-the-ranks
types, chosen purely on merit rather than on educational qualifications.
Here, as Sarasohn presented it, was the gist of the message he imparted to his Japanese pupils:
?Every company needs a concise, complete statement of the purpose of the company's existence, one that
provides a well-defined target for the idealistic efforts of the em- ployees. ?Companies must put quality ahead of
profit, pursuing it rigorously with techniques such as statistical quality control. ?Every employee deserves the
same kind of respect follow managers receive, and good management is "democratic manage- ment." Lower-
level employees need to be listened to by their bosses. After MacArthur approved the course, Sarasohn and
Protzman quickly wrote a text. (A revised edition entitled CCS: Industrial Management is in the Harvard Business
School library.) They drew heavily on U.S. management texts, and stressed the basics. For example, they wrote:
"Even though you know these things [management principles], you are not applying them in a logical manner....
People at low levels who should be responsible and accountable are confused.... Any initiative and interest they
[workers] may have in trying to do a job is often destroyed by interference and meddling."
On the first page, a motto used at Newport News Shipbuilding was cited: "We shall build good ships here; at a
profit if we can, at a loss if we must, but always good ships."
"It was much to the participants' surprise," recalls Masaharu Matsushita, "to find such a basic policy on corporate
philosophy on the first day of the seminar, on the first page of the text. This point made an impression on all the
participants. The case study about clarification on the organizational concept for the management division as well
as the management theory based on the systematic analysis of business facts and data--all furnished us with
much information."
No question: The Japanese took the American message to heart, even as the Americans were forgetting it.
Sarasohn and Protzman wrote: "Every business enterprise should have as its very basic policy something of this
nature, [to aim] the entire resources and efforts of the company toward a well-defined target, a target that would
benefit society." Today, most Japanese companies have such a statement of basic policy. Like many of America's
best engineers at the time--and like many Japanese managers today--Sarasohn and Protzman saw no conflict
between "scientific" management that carefully measured and analyzed everything about a company, and
"democratic" management that fully respected employees. They disagreed with "human relations" experts, who
were starting to stigmatize practitioners of scientific management on the grounds that scientific manage- ment
focused on nuts and bolts whereas managers should care principally about people. Sarasohn and Protzman
presented to Japanese business leaders both scientific management and America's tradition of respect for the
common man.
The point was not lost on the Japanese: If you have articu- lated a worthwhile purpose and you constantly strive
to create the best manufacturing system--culture, in today's jar- gon--possible your human relations problems will
tend to take care of themselves.
Sarasohn and Protzman advocated "democratic management" within a traditional, hierarchical organization. That
meant that, while the boss was still the boss, he didn't so much bark orders as listen to the people who worked for
him. He was the voice of the organization, not its dictator. "A leader's main obligation is to secure the faith and
respect of those under him," wrote Protzman and Sarasohn.
How many U.S. managers today believe that, let alone prac- tice it?
The Japanese, humbled by their military defeat and acutely aware of their country's economic plight, were in a
learning and listening mood. They repudiated their feudalistic and militaris- tic ways and promised to lead new
lives. The course was "the light that illuminated everything," wrote one executive, Bunzaemon Inoue, who went on
to become technical director of Sumitomo Electric.
After the course was offered for the second time (in Osaka in 1950), the Occupation was near its end. But the
course did not die. Its old students spread the message, both through their own businesses and through word of
mouth. Later on, the CCS course became a standard in the training program associated with the Nikkeiren, the
Japan Federation of Employers' Associations.
Before returning home in 1950, Sarasohn established Japan's Electrical Testing Laboratory. He Introduced the
certification for electronic products that the U.S. government would criticize as a "nontariff barrier" 30 years later.
While certification in the U.S. focused largely on safety, Japan set continually in- creasing performance standards
for products. By the early 1980s, many American products weren't able to meet its demanding stan- dards.
The man that is most responsible for bringing the Sarasohn-Protzman course to light and spreading its message
today is Kenneth Hopper, an industrial consultant associated with Management Advisory Associates in Bowling
Green, Ohio. Back in 1948, when Sarasohn was still working in Japan, Hopper went to work for Procter & Gamble
in Manchester, England as an industrial engineer.
"U.S. management was evolving in directions that would now be described as 'Japanese,'" Hopper recalls.
European companies, like most Japanese companies before World War II, kept people on well-defined tracks.
University graduates spent little time in factories. But at Procter & Gamble and many other U.S. companies,
engineers like Hopper spent years on the factory floor. Six months after becoming a design engineer, Hopper was
appointed as a foreman in maintenance.
U.S. firms were introducing wave after wave of improvements in technology and knowhow. Communication
between engineers and ordinary factory workers--evidence of what Sarasohn and Protzman would call
"democratic management"--made their successes possi- ble. The practical knowledge of ordinary workers
fertilized the expertise of the engineer, and the workers had quick access to engineers' knowledge. It was a
revelation to a young manager brought up in the class-conscious, ossified English system--as it would be to a
young manager brought up in U.S. manufacturing from the mid-1960s to the present.
In the 1960s, Hopper decided on an academic career. But he found that he had quite different ideas from the
academics about what made the U.S. system work. The practical people who had built the U.S. corporations
communicated poorly with the academic elite. Innovative business scholars showed little respect for how factories
were managed, preferring to write about marketing, financial techniques and "human relations."
Hopper got a one-year grant to study at Harvard Business School in 1965-66, but while there he couldn't find a
professor to sponsor his Ph.D. dissertation on the use of college graduates as foremen. So he went back to a
career as an industrial consul- tant but refused to give up on communicating what he now calls "classic American
management." In 1969 Hopper met former Mitsubishi Electric executive Takeo Kato. Kato led him to Frank A.
Polkinghorn, who had been Sarasohn and Protzman's immediate boss when they taught the CCS course. Hopper
has been collecting details of their achievements ever since.
The real irony, of course, is that Hopper believes that the U.S. excellence of the 1950s and the Japanese
excellence of the 1980s have closely related roots. And he has watched the decline of the American management
systems that produced "Yankee know-how" with anguish and dismay--in much the same way many serious
scholars watch the sickening decline of American educa- tional standards.
Hopper notes that Protzman, who wrote many of the sections of the CCS course that dealt with human relations,
had been a foreman at Western Electric's Hawthorne plant in the 1920s. At the time, the famed Hawthorne
experiments, which underlay the human relations movement in management and ultimately undermined scientific
management, were being conducted. At Hawthorne, scholars looked at how changes in the work environment
affected productivity, concluding that productivity would rise if managers concentrated on workers' needs. As
Cornell University professor of manufacturing L. Joseph Thomas puts it: "It became fashionable to think that
measuring a person's work devalued him. Rather, you should simply trust people to do the right thing." This was
the death of the systems, or industrial engineering, approach. And the birth of the human relations approach to
management.
Hopper spent a lot of time talking with Protzman. Protzman, who died in 1987, concluded the Hawthorne
experiments were meaningless. Protzman felt that good managers didn't need elite consultants to tell them how
to treat humans as humans and that scientific management-based systems were entirely consistent with humane
management.
"The people in the human relations movement set themselves up as a kind of high priesthood that would teach
how factories could be run better," says Hopper. "Suddenly it seemed that these people knew how factories
should be run better than the people who worked in them."
Japan went the other way. Its approach, descended from both Japanese tradition and Occupation teachings, had
no high priests, no specialized human relations experts. Instead, everyone was supposed to be as sensitive to
human relations as to finance or technology.
Today Japanese management has developed far beyond what a handful of Americans taught a half-century ago,
adding exclusive- ly Japanese elements and refining what the Japanese learned.
In 1950 Sarasohn returned from Japan to find many changes at home. "Two things struck me immediately," he
recalls. "First, there was an attitude of self-satisfaction--we'd won a war, and there was nothing else to be done.
And second, there was already a great emphasis on achieving demonstrable success immediately on getting an
immediate return on the buck." As a Booz, Allen consultant Sarasohn worked for H.J. Heinz in Pittsburgh, and he
says: "They wanted me to upgrade their distribution system, at a time when their product manufacturing system
was not meeting its reasonable objectives."
Now as then, he says, "Few American managers show any sense of the long-term implications for their
companies and their customers of what they are doing in their business."
What would Sarasohn do today to make the country's factories more competitive? One thing he would not do is
try to play catch-up with the Japanese by copying them.
"This present-day fad of aping the Japanese style of manage- ment is absolutely destructive of our own future, "
he says. "We've got to recapture the enthusiasm, the pioneering spirit that made America a world leader."
There are no pat answers, but the key is to create more companies like IBM and Hewlett-Packard--more
companies, in brief, where the workers identify with the enterprise. "All my life I fought against becoming a
'company man,'" says Sarasohn. "And then I joined IBM [in 1957|. Under Tom Watson [both junior and senior], the
company showed respect for its workers, it was committed to honesty with its customers; and it saw itself as an
institution with social responsibilities. When I was visiting a branch office and saw that their attitude toward their
customers was perfunctory, I was quite shocked. Then I looked at myself and said, 'Hey, I've become a company
man.' "
Capturing their employees' imaginations--getting them to expend their energies for something less tangible than
a paycheck--is the greatest challenge managers face today. With help from a couple of young Americans more
than four decades ago, the Japanese have excelled at this challenge. Now it's America's turn again.
SURVEY REAFFIRMS THE VALIDITY OF DEMING'S 10TH POINT
Of his famous 14 points in Out of the Crisis, W. Edwards Deming's 10th point, "Eliminate slogans, exhortations,
and targets for the work force," was reaffirmed in a survey by Rath & Strong.
The Rath & Strong Personal Initiative Survey found that organizations that use slogans and vision statements
can't force their employees to take the personal initiative needed to effect change. According to the survey, these
activities might do just the opposite.
The survey found that although managers increasingly expect employees to take personal initiative, most
employees do not take the necessary actions beyond their job descriptions. Having the right organizational
climate might be the key to bridging the gap between expectations and behaviors.
After polling 186 senior executives from FORTUNE 500 manufacturing and service companies regarding which
activities foster superior performance results for an organization, the survey revealed that personal initiative, when
combined with a customer focus, has a positive influence on business success and sales growth rate.
Alan Frohman, a Rath & Strong senior associate, said, "These results are significant because they suggest that
although people are being expected to take personal initiative, most organizations haven't figured out how to
translate those expectations into positive behaviors. The right corporate climate can have a tremendous impact
on how comfortable people feel about taking action."
Although 79% of all respondents indicated that employees are increasingly expected to take initiatives to bring
about change, 40% of the respondents said most people in their companies do not believe that they can make a
personal contribution to the company's success.
Other survey results were:
-- Only 29% of employees at every level believe that their skills and intelligence are fully utilized. -- Half of the
respondents said their training programs encouraged people to think beyond their companies' traditional ways of
doing business. -- Fifty-two percent of the companies said they could greatly accelerate the needed changes if
more people would take personal initiative. -- Slightly more than 50% of the respondents said there is an active
effort to ensure that employees receive information on how their jobs affect customers. Tom Thomson, Rath &
Strong vice president, said, "These numbers indicate that organizations are still not seeing the full potential of
their own employees. But it also means that we should be optimistic--imagine the results companies can achieve
if they are able to tap into people's initiative. The trick lies in learning how to build a climate that encourages
initiative." He added that a climate survey can be a powerful tool for energizing people to take new responsibility
for the business' success.
The survey included five tips for managers to foster personal initiative:
1. Make sure the link between your organization's mission and your employees' jobs is clear. 2. Foster
communication between people with relevant problems and those who have the information to help create
solutions. 3. Ask your employees how the company can benefit more fully from their individual skills and talents.
4. Encourage people from different parts of the organization to discuss problems together. 5. Encourage
employees to maximize their personal growth and reward that growth. If you're interested in receiving a free copy
of "The Rath & Strong Personal Initiative Survey" report, contact Hannah Feldman, Rath & Strong, 92 Hayden
Ave., Lexington, MA 02173, 800-622-2025. (617) 861-1700. ext. 243.
Script for
Dr. Deming's Red Bead Exercise
Before beginning the exercise, set up a small table in the middle of the front of the room with the bead bowl and
paddle on it. Place conspicuously on the same table, on the side facing the audience, two candy bars. Earlier in
the day, draw two charts on flipchart paper that look like this:
[Chart 1:] Defects
Workers:
Day 1
Day 2
Day 3
TOTAL
1._____
2._____
3._____
4.____
TOTAL
GRAND TOTAL
Learning Objectives
The overall purpose of the course is to introduce the student to the variety of theory applicable to the design and
study of continuous quality improvement systems, with specific emphasis towards those systems based on the
teachings of W. Edwards Deming. The student should gain facility at understanding the link between theory and
application. The course is a "survey" course in that a wide list of topics will be covered, rather than a few topics in
great depth.
Here are the learning objectives for the course:
1. State how each of the 4 theory areas (statistics, cognitive psychology, organizational behavior, and systems
theory) is relevant to continuous improvement.
2. Identify and locate research sources (books and articles) relevant to a particular theory area.
3. Comprehend the language and terminology used in these different theory areas.
4. Demonstrate, using examples, the application of theory from the following topic areas (theory-to-application
link):
models of individual learning group design and dynamics leadership and power motivation and goals
organizational learning single and double loop learning organization change and development conceptual
pragmatism systems modeling chaos theory Shewhart's operation of control cognitive issues in data exploration
and problem solving 5. Using the areas listed above, enumerate relevant theory, given: (a) the application of one
of Deming's 14 points, or (b) a particular TQM implementation issue (application-to-theory link).
6. Demonstrate the ability to learn collaboratively in a variety of learning situations.
The student is expected to have background equivalent to an introductory "Quality Control" course. The following
are learning objectives it is expected the student has already achieved:
1. Identify inputs, outputs, customers, suppliers, resources, and environment for any system under different levels
of scope and complexity.
2. Give definitions of product and service quality from several perspectives and demonstrate the usefulness of
each definition.
3. Write operational definitions for any quality characteristic of interest.
4. Explain tendencies, patterns, and trends in data using the simple exploratory statistical tools (histograms,
paretos, run charts, etc.).
5. Explain the assumptions behind these simple exploratory tools, and the impact of these assumptions.
6. Specify and contrast the purpose, design, assumptions, and use of control limits versus design specification
limits.
7. Identify common and special causes using control charts.
8. Specify actions to be taken given control chart data.
9. Calculate the Taguchi loss function for a process.
10. Demonstrate the use of PDSA.
11. Specify the stages of team development.
12. Specify the elements of successful teams.
13. Demonstrate using examples the strategic importance of quality and continuous improvement.
14. Demonstrate using examples the importance of organizational culture and leadership on quality improvement.
15. Demonstrate using examples Deming's 14 points.
16. Demonstrate using examples quality function deployment. Statement of Process
Following are my expectations from students:
* Read appropriate material before class.
* Participate in all class discussions.
* Show respect for and acknowledge classmates and team members.
* Locate and read other external material (library, magazines, newspapers).
* Have an open mind; challenge assumptions.
* Ask questions.
* Help other classmates learn.
Here are my own expectations:
* Show students respect.
* Encourage students to learn outside of my lecturing.
* Demonstrate the relationships between theory and practice.
* Give feedback promptly and appropriately.
* Be fair in all dealings.
* Gather feedback information during course so as to improve.
* Have an open mind.
* Be prepared.
A variety of teaching methods will be used in the class. It is expected that the majority of learning will not come
"from me", but rather from class discussion, outside readings, and your own reflections. It is my belief that the
student must play an active role in their own education.
Timeline
The following is an initial topical plan. Changes may be made as needed. Required reading (note packet) is given
in plain text; optional readings are given in italics:
M 1-4 Course Intro; Deming background: Profound Knowledge
-- Anderson, J.C., Dooley, K.J., and S.A. Misterek, "The Role of Profound Knowledge in the Continual
Improvement of Quality," Human Systems Management, 1991, Vol. 10, pp. 243-259.
-- Anderson, J.C., Dooley, K., and M. Rungtusanatham, "Requisite Knowledge for Continuous Improvement:
Toward Improved Training and Education," Proceedings of the Continual Improvement Conference, Minneapolis,
1992.
-- Anderson, J., Rungtusanatham, M., and R. Schroeder, "Exploring the Theory of Quality Management
Underlying the Deming Management Method," Proceedings of the Continual Improvement Conference,
Minneapolis, 1992.
-- Deming, W.E., "A System of Profound Knowledge," Action Line, August 1990, pp. 20-26.
--Schultz, L., "The Rings of Management: The New Management Theory," Human Systems Management, Vol. 10,
1991, pp. 11-17.
--Tveite, M., "The Theory Behind the Fourteen Points: Management Focused on Improvement Instead of
Judgement," Process Management International, 1990.
W 1-6 Group dynamics, group design
-- Hackman, Richard, "The Design of Work Teams." In J.W. Lorsch (Ed.), Handbook of Organizational Behavior.
Englewood Cliffs, NJ: Prentice-Hall, 1987.
--Sundstrom, E., DeMeuse, K.P., and D. Futrell, "Work Teams," American Psychologist, Vol. 45, No. 2, February
1990, pp. 120-133.
M 1-11 teams in chaos exercise
--Bush, D., and K. Dooley, "Group as a Process: Teams, Variability, and Complexity," Proceedings of the Continual
Improvement Conference, Minneapolis, 1992.
W 1-13 teams in chaos exercise M 1-18 Holiday: Martin Luther King's Birthday W 1-20 Conceptual pragmatism
-- Anderson, J., Dooley, K., and X. Liu, "Knowledge for Process Improvement," Proceedings of the Continual
Improvement Conference, Minneapolis, 1991.
--Boyd, F., "The Philosophy of Lewis's 'Mind and World Order' and Its Influence on Deming's Theory of Profound
Knowledge," working paper, University of Miami.
--Lewis, C.I., Mind and World Order, Charles Scribner's Sons, 1929, excerpt Chapters 7-8, pp. 195-273.
--Strickland, B., "C.I. Lewis and Deming's Theory of Knowledge," Proceedings of the Continual Improvement
Conference, Minneapolis, 1992.
M 1-25 Chaos theory, quantum mechanics: Theory of variation
-- Jensen, R., "Classical Chaos," American Scientist, Vol. 75, 1987, pp. 168-184.
-- Mermin, N.D., "Is the Moon There When Nobody Looks? Reality and the Quantum Theory," Physics Today, April
1985, pp. 38-47.
--Crutchfield, J., Farmer, J., Packard, H., and R. Shaw, "Chaos," Scientific American, No. 255, December 1986,
pp. 46-57.
--Michaels, M., " A Dictionary of Chaos Terms", Chaos Network Newsletter, November 1990.
--Shimony, A., "Metaphysical Problems in the Foundations of Quantum Mechanics," International Philosophical
Quarterly, Vol. 8, 1978, pp. 2-17.
W 1-27 Shewhart's operation of control
-- Shewhart, W., Statistical Methods from Viewpoint of Quality Control, Graduate School Department of
Agriculture, Washington, 1939. PAGES 1-49.
M 2-1 Shewhart's operation of control
-- Shewhart, W., Statistical Methods from Viewpoint of Quality Control, Graduate School Department of
Agriculture, Washington, 1939. PAGES 80-119.
W 2-3 Cognitive issues in data presentation, interpretation, problem solving, creativity
-to be announced-
--Gasper, P., "Causation and Explanation," from The Philosophy of Science, ed. R. Boyd, P. Gasper, and J. Trout,
1991, MIT, pp. 289-297.
--van Fraassen, B., "The Pragmatics of Explanation," American Philosophical Quarterly, Vol. 14, 1977, pp. 143-
150.
M 2-8 Cognitive issues in data presentation, interpretation, problem solving, creativity
-- Dooley, K., "The Perceptual Truths of Edward deBono," review to be published in Chaos Network, 1993.
-- Flor, R., and K. Dooley, "Summary of deBono's 'Six Thinking Hats'," 1992.
W 2-10 Models of learning
-- Bush, D., and K. Dooley, "A Learning Process for Transformation to Continuous Improvement Management," to
appear in Human Systems Management, 1993.
-- Dooley, K., Bush, D., and T. Johnson, "Quantitative Models of Learning: Neural, Cognitive, and Organizational,"
Proceedings of the Chaos Network Conference, Santa Cruz, 1992.
--Estes, William K. "Toward a Statistical Theory of Learning." Psychological Review, 1950, 57, 94-107.
--Lippman, R.P., "An Introduction to Computing with Neural Nets," IEEE ASSP Magazine, April 1987, pp. 4-22.
--Rescorla, Robert A. and Allan R. Wagner. "A Theory of Pavlovian Conditioning: Variations in the Effectiveness of
Reinforcement and Nonreinforcement." In: A. Black and W.F. Prokasy (Eds.), Classical Conditioning II. New York:
Appleton-Century-Crofts, 1972.
M 2-15 Organizational learning
-- Huber, G.P., "Organizational Learning: The Contributing Processes and the Literatures," Organizational
Science, Vol. 2, No. 1, February 1991, pp. 88-115.
-- Zeleny, M., "Knowledge as a New Form of Capital: Part 1. Division and Reintegration of Knowledge," Human
Systems Management, Vol. 8, No. 1, 1989, pp. 45-58.
-- Zeleny, M., "Knowledge as a New Form of Capital: Part 2. Knowledge Based Management Systems," Human
Systems Management, Vol. 8, No. 2, 1989, pp. 129-143.
--Dixon, N., "Organizational Learning: A Review of the Literature with Implications for HRD Professionals," Human
Resource Development Quarterly, Vol. 3, No. 1, Spring 1992, pp. 29-49.
--Stata, Ray, "Organizational Learning--The Key to Management Innovation," Sloan Management Review, Spring,
1989, pp. 63-74.
W 2-17 Organizational learning
-- Argyris, C., "The Executive Mind and Double Loop Learning," Organizational Dynamics, Autumn 1982, pp. 5-22.
--Argyris, C., "Action Science and Intervention," J. of Applied Behavioral Science, Vol. 19, No. 2, 1983, pp. 115-
140.
--Argyris, C., "Teaching Smart People How to Learn," Harvard Business Review, Vol. 69, No. 3, 1991, pp. 99-109.
--Argyris, C., "Leadership, Learning, and Changing the Status Quo," .J of Organizational Dynamics, Vol. 4, No. 3,
Winter 1976, pp. 3-43.
--Schon, D., "Deutero-Learning in Organizations: Learning for Increased Effectiveness," J. of Organizational
Dynamics, Vol. 4, No. 1, Summer 1975, pp. 2-16.
M 2-22 Systems modeling
-- Ashby, R., "Analysis of the System to be Modeled," in The Process of Model-Building in the Behavioral
Sciences, Ohio State University Press, 1970, pp. 94-114.
-- Flor, R., "Book Review: Senge's 'The Fifth Discipline'," 1992.
-- Ackoff, R.L., "The Second Industrial Revolution," speech transcript, 1988.
--Checkland, P., "Soft Systems Methodology," Human Systems Management, Vol. 8, 1989, pp. 273-289.
--Schultz, L., and S. Loubert, "A System," Proceedings of the Continual Improvement Conference, Minneapolis,
1992.
--Senge, P., The Fifth Discipline, Doubleday: New York, 1990, excerpts from appendix 2: The Learning
Disciplines, pp. 373-390.
"He was persistent and dogmatic. . . . He was impatient with people who didn't understand that the quality
process is hard work, period. People have got to carve out time. It's a thinking game. Quality improvement is a
thinking game." --Roger Milliken, CEO Milliken & Co.
"He had an enormous impact in Japan and a belated impact in this country. Ed suffered terribly from a feeling of
being rejected in his own country; he was an exceedingly patriotic American."
-- Peter Drucker
"It was the threat from Japanese industry (which was following Deming's) principles that woke U.S. companies up
to TQM, rather than Deming himself directly. It was our reaction to that phenomenon that has stimulated us."
-- Thomas Murrin Dean Duquesne's A.J. Palumbo School of Business Administration:
"He was terribly important in being a kind of a dual prophet. He was critically important in the resurgence of
Japanese industry post-World War II. He was a kind of an icon there. They would credit him as much as any other
single person with their industrial renaissance." Then "he became a leader in America's resurgence. . . . He was a
major figure in two continents." -- David Halberstam author of The Reckoning
"Deming stood for eminent rationality. He looked at things rationally, he analyzed them rationally, and he
advocated rational measures for changing them." --Shoshana Zuboff author of In the Age of the Smart Machine:
"He made a significant contribution to all the people of Japan. He will be long remembered and appreciated for his
contribution to the remarkable development of postwar Japan." -- Seiichi Kondo Counselor for public affairs
Embassy of Japan
Box
One More Time: Deming's "14 Points for Management:" 1. Create constancy of purpose. 2. Adopt the new
philosophy. 3. Cease dependence on inspection to achieve quality. 4. Cease doing business on the basis of price
tag alone. 5. Improve constantly and forever the system of production and service. 6. Institute training on the job.
7. Institute leadership. 8. Drive out fear so that everyone may work effectively. 9. Break down barriers between
departments. 10. Eliminate slogans, exhortations and targets. 11. Eliminate numerical quotas. 12. Allow pride in
workmanship. 13. Institute a program of self-improvement. 14. Put everybody in the company to work to
accomplish the transformation.