The W. Edwards Deming Institute Blog

Deming Podcast with Bob Mason and Clare Crawford-Mason

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In this podcast Bob Mason and Clare Crawford-Mason discuss meeting W. Edwards Deming and creating the NBC white paper – “If Japan Can, Why Can’t We?” They also discuss the decades of pursuing and promoting Deming’s management ideas, including their work co-creating the 32 volume Deming Library (which is now available from the Deming Institute) in this podcast.

Clare Crawford-Mason:

The world has changed so much in our lifetime, and there are so many things that are going from, from a new global world, communication and so on that if you don’t have an underlying basis of how you view what is happening you are lost.

image of the Understanding Profound Knowledge, Deming Library video

The complexity we have in organizations today is not easily understood correctly without an understanding of variation and a view of the organization as a system. The challenges current managers face require an understanding of management that encompasses these ideas. And unfortunately our default management education and practice fail to do this.

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Donate to the W. Edwards Deming Institute Scholarship Fund

Guest Post by Jack Hillerich

More than 50 years ago, I started working in our family business, Hillerich & Bradsby Co., maker of the Louisville Slugger® baseball bat. It was the early 1960’s and I had just graduated from Vanderbilt University. I was 21.

When my father passed away in 1969, I was suddenly promoted to the position of President of the company. I was only 28 with very little management experience, and yet I was faced with leading the legendary Louisville Slugger® brand. The responsibility was immense, and I faced many challenges as I learned how to lead and run our family enterprise.

In 1980, I watched the NBC White Paper “If Japan Can, Why Can’t We” which included a segment on Dr. Deming’s role as a catalyst for the revitalization of industry in post-war Japan. It was so compelling, I couldn’t get the message out of my mind! In 1984, I finally had the opportunity to attend one of Dr. Deming’s seminars. What I learned changed me, our company, our suppliers and our customers. His emphasis on innovation, continual improvement, leadership and quality helped Louisville Slugger® become a thriving and successful business. Dr. Deming died in 1993, but the philosophy he taught me did not. His influence benefits me in some way, every day.

That’s why I personally make a gift each year to the Scholarship Fund at The Deming Institute. Over the past three years, the Institute has awarded more than 230 scholarships to students, educators, non-profit professionals, emerging entrepreneurs and others so they could benefit from Deming Institute conferences and seminars. There are many, many more individuals who have the desire to learn and passion for new knowledge, but lack the financial means to attend these events.

Photos of Jack Hillerich and students

Jack Hillerich and students at a W. Edwards Deming Institute conference.

How can you help? By making a gift to the Scholarship Fund today:

  • $200 will fund one student’s attendance at the Deming Institute Fall Conference.
  • $1,000 will establish a named scholarship (to honor a friend, colleague or loved one) and cover registration and travel costs to attend a Deming Institute educational event.
  • A one-time gift of any size builds the scholarship fund to assist more students.
  • A recurring monthly gift is a convenient way to provide sustained scholarship support.

Our aim is to more than double the number of individuals who will receive scholarships for Deming Institute learning opportunities next year.

You can make a contribution online or by sending a check to The Deming Institute, PO Box 309, Ketchum, ID 83340.

Thank you for considering a gift of the Deming teachings and lifelong learning!

Sincerely,

Jack Hillerich
Chairman, Hillerich and Bradsby Company
Deming Institute Board Trustee

PS: I hope you will join me in giving to those seeking new knowledge to improve their businesses, organizations and communities. Your gift will make a difference.


On the Use of Theory

On the Use of Theory is an article W. Edward Deming published in 1956. It is one of many of his papers we have posted on our web site.

Though 58 years old the ideas in the article are very useful today and yet many organizations still have not applied these ideas in their management system. The paper includes a version of his famous diagram of the organization as a system.

Organization as a System diagram

Organization as a System as shown in this paper

Statistical techniques have the ability to separate out the responsibilities for action into different levels of administration.

The discovery of a special cause of variation, and its removal, are usually the responsibility of someone who is connected directly with some operation. It is his job to find the cause, and to remove it.

In contrast there are common causes of defectives, of errors, of low rates of production, of low sales, of accidents. The discovery and correction of common causes is usually the responsibility of someone higher up.

The worker at one machine can do nothing about the causes common to all machines.

Today we probably would word things bit differently but the ideas are the same. First you need to identify if the problems are common cause results (most likely) or special cause (something special/identifiable is responsible for the result). Then apply the appropriate thinking depending on what type of problem it is. Unfortunately we still react to most problems as though they are special causes, but in fact most are just the expected result of the system.

If we want to improve going forward (reduce or eliminate that problem) we need to look at the entire system and the processes if it is a common cause result. If it is a special cause we can look at that one case and see what lead to the result and eliminate it (if it was a negative result, or adopt it, if if was a positive result).

Looking for a special cause it the most likely situation (common cause result) will just waste a bunch of time and potentially make things worse. People are good at identifying special causes – even when they don’t exist. So we can usually find something and then put in a countermeasure which may be ok, or may make things worse (and over time we almost certainly will pick up a number that over the entire system make things worse).

Thinking about psychology makes it clear how we identify a special cause when there isn’t one. We have great pattern matching brains. Look at clouds and you will see all sorts of patterns – people’s faces, an airplane, a cat, etc.. That is not because someone painted a cat and put it in the sky. Our brains are great at finding patterns among randomness. This can be very helpful (fast reactions to danger or all those ancestors that someone figured out which plants helped cure which disease), but in problem solving in fairly complex dynamic systems with lots of results for our brains to match patterns to it is often creates problems.

Related: Knowledge About VariationWe Need to Understand Variation to Manage EffectivelyKnowledge of VariationVariation, So Meaningful Yet So Misunderstood


One-Piece-Flow Projects Create the Best Conditions for True Creativity

Guest post by Michael Ballé (repost from his Gemba Coach column on Lean.org)

Dear Gemba Coach,
For product development you need creative (maybe even chaotic) people. Are those people suited to follow such a structured method as lean? Like trying to achieve one-piece-flow in product development?

photo of Michael Ballé

Michael Ballé

Thank you. What an interesting question! As a writer and novelist, I like the idea that it’s okay to be chaotic! But aren’t we making assumptions about the nature of creativity? Let’s take a gemba example of a product we all have experience with: a gasoline pump. In product development terms, this product evolves at several levels:

  1. Solving quality problems of products now in production through engineering patches (or adding customer-required options)
  2. Introducing regular product refreshes through engineering improvements to keep the customers (gas stations) interested in refurbishing
  3. Reducing work content through smart engineering in order to drive manufacturing costs down
  4. Making step change improvement to key functionalities such as the meter and the pump to keep market leadership
  5. Making technological breakthroughs to invent the dispenser of the future, with technologies such as connectivity, VGA screens, Big Data diagnostics and so on.

Tom Edison and Steve Jobs
Each of these specific change points have their own rhythm, or takt, and require very different types of engineering and, in particular, different types of creativity:

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Minimal Viable Product

Minimal Viable Product is an important concept. The idea is to learn from customers (users) using the product/service as soon as possible. Having customers direct experience available as soon as possible allows those designing and creating the product to learn as early as possible from those customers.

The idea with MVP is to speed up the learning process. It also puts a premium on customer focus in a very Deming-like manner.

As with many good management ideas the benefit realized using the concept or tool will depend by how it is applied in the organization. Organizations that use MVP to quickly learn from customers and adapt and repeat that process can get great results.

But if that mission to learn from customers and experiment isn’t ingrained organizations can spend lots of energy without results. This graphic does a great job of illustrating what the process should look like.

minimal viable product illustration  - skateboard, scooter, bike, motorbike, car not pieces of a car until the last step

Deliver usable products to allow learning to take place. Illustration by Henrik Kniberg.

Keeping that illustration is mind should be very helpful. Even after that is done there is a tricky judgement call that has to be made about what is suitably viable and what is not. And that requires a good understanding of the customers for the product.

As with the PDSA cycle the idea with using MVP is to learn quickly and immediately apply that learning to a new cycle of learning.

Related: The consumer is the most important point on the production-lineCustomer DelightApproaching a Minimum Viable ProductThe Process of Discovery is Iterative (webcast with George Box)


Baking Apple Pies Using the Deming Management System

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Paula Marshall, the CEO of the Bama Companies, discusses her adoption of Deming principles at Bama Companies. In the podcast she discusses going to see a Dr. Deming 4 day seminar in 1990 and then working with him for 3 years on bringing new management thinking to the Bama Companies. And she continues with the experience continuing to use Deming’s ideas to manage.

Bama Companies is best known for being the single supplier of the famous Apple dessert pies to McDonalds. McDonalds actually brought Paula to the Deming seminar in order to help their supplier improve. And Paula, Bama and McDonalds have enjoyed the benefits of that active focus on helping suppliers improve for decades now.

Book cover: Sweet as Pie - Tough as Nails

In the podcast she discusses her experience working with Dr. Deming as she tried to improve the performance appraisals at Bama Companies. Eventually she finally understood why Dr. Deming called for the elimination of the annual performance appraisal. And for the last few decades Bama Companies has benefited from eliminating that wasteful and damaging process from their business.

Paula’s latest book is Sweet as Pie: Tough as Nails.

Related: Deming Podcast: The Deming Journey at New York Label & Box WorksHallmark Building Supplies: Applying Deming as a Business Strategy


Effective Decision Making

We want to chose the best strategy. However, as the image by Randal Monroe (xkcd comic) shows we need to consider the whole system. It isn’t helpful to spend more effort to chose between two options than the difference between them offers.

However we can be drawn into such behavior by the management system and by our psychology. If you look back at whether the decision you make often amount to a great deal of effort for things that really you would have been just as well off if you just flipped a coin it may point to an opportunity to improve.

Fear and bureaucracy often drive organizations to behaving in ways that are not very useful. People often are pushed into being worried about blame and not being able to justify decisions so they spend a great deal of time justifying choices.

Some times it is important to spend a great deal of time to examine options and explore the best possibilities. But often that is just waste.

By the way time spent reading xkcd is pretty much the opposite of waste – even though your boss might not agree. So you might want to make sure they don’t see you reading xkcd comics all afternoon if they are a boss that wouldn’t understand how this will provide you important new insight into thinking creatively and questioning what you think you know (theory of knowledge).

Related: Effort Without the Right Knowledge and Strategy is Often WastedTrust Your Staff to Make Decisions (within a good management system)Making Better Decisions


Dr. Deming’s Work Papers at the Library of Congress

Much of Dr. Deming’s work is housed and available at the Library of Congress in Washington DC. The Library of Congress made a formal request for Dr. Deming’s professional papers soon after his death. They were donated by The W. Edwards Deming Institute and are available from the Manuscript Division of the Library of Congress.

It is a large collection that contains notes, correspondence and the drafts of Out of the Crisis and The New Economics.

The Manuscript Reading room is located in the Madison building of the Library of Congress. The Jefferson building, which is right across the street, is an amazing building (where the two photos in this post were taken); don’t miss the historic building if you go to see the Deming collection.

Main reading room in the Jefferson building

Main reading room in the Jefferson building, Library of Congress. Photo by John Hunter.

To access the Deming papers see the policies and procedures for the Manuscript Reading Room. Note, the Deming Papers are stored offsite. A researcher must identify the containers they would like to consult, then state the dates of their visit to the Library. Please contact the Manuscript Reading Room in advance of your planned visit at 202-707-5387 or by email at mss@loc.gov. Please allow a week for delivery.

The W. Edwards Deming Institute makes five travel grants available each year for study of the Deming Collection at the Library of Congress. Contact us if you are interested in taking advantage of a grant.

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Using Deming’s Management Methods to Enhance the Application of Taguchi’s Ideas

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In this episode of The W. Edward Deming Institute Podcast (download) Bill Bellows discusses Genichi Taguchi, Ackoff, Deming and the efforts to use their idea to improve organizations. Bill is Associate Fellow in the InThinking Network at Aerojet Rocketdyne. Bill also serves as a board member of the W. Edwards Deming Institute.

Quote from the podcast by Bill Bellows:

If I wanted to advance Dr. Taguchi’s work in my day to day efforts I needed to really absorb Dr. Deming’s work.

By and large the application of Dr. Taguchi’s work [in our organization] were to things that were broken… We want to get into the domain of good to better to better, were in the domain of broken to good.

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Related: How Did We Do on the Test – Bill’s presentation at the 2012 Deming Institute annual conference. – Dr. Deming “If there were a fire here in this building and somehow we put it out that is not improvement, that is putting out fires.”