Deming's Impact on Japanese Industry
Deming's Impact on Japanese Industry
statistician, professor, author, lecturer, and consultant. He is perhaps best known for his work in
Japan. There, from 1950 onward, he taught top management how to improve design (and thus
service), product quality, testing and sales (the last through global markets)[1] through various
methods, including the application of statistical methods.
Deming made a significant contribution to Japan's later reputation for innovative high-quality
products and its economic power. He is regarded as having had more impact upon Japanese
manufacturing and business than any other individual not of Japanese heritage. Despite being
considered something of a hero in Japan, he was only just beginning to win widespread
recognition in the U.S. at the time of his death.[2]
Contents
[hide]
1 Overview
2 Family
3 Early life and work
o 3.1 Work in Japan
o 3.2 Honors
o 3.3 Later work in the U.S.
4 Deming philosophy synopsis
o 4.1 The Deming System of Profound Knowledge
o 4.2 Key principles
o 4.3 Seven Deadly Diseases
5 Quotations and concepts
6 See also
7 Notes
8 Bibliography
9 External links
[edit] Overview
Dr. Deming's teachings and philosophy can be seen through the results they produced when they
were adopted by Japanese industry, as the following example shows: Ford Motor Company was
simultaneously manufacturing a car model with transmissions made in Japan and the United
States. Soon after the car model was on the market, Ford customers were requesting the model
with Japanese transmission over the USA-made transmission, and they were willing to wait for
the Japanese model. As both transmissions were made to the same specifications, Ford engineers
could not understand the customer preference for the model with Japanese transmission. Finally,
Ford engineers decided to take apart the two different transmissions. The American-made car
parts were all within specified tolerance levels. On the other hand, the Japanese car parts were
virtually identical to each other, and much closer to the nominal values for the parts - e.g., if a
part were supposed to be one foot long, plus or minus 1/8 of an inch - then the Japanese parts
were within 1/16 of an inch. This made the Japanese cars run more smoothly and customers
experienced fewer problems. Engineers at Ford could not understand how this was done, until
they met Deming.[3]
Deming received a BSc in electrical engineering from the University of Wyoming at Laramie
(1921), an M.S. from the University of Colorado (1925), and a Ph.D. from Yale University
(1928). Both graduate degrees were in mathematics and physics. Deming had an internship at
Bell Telephone Laboratories while studying at Yale. He later worked at the U.S. Department of
Agriculture and the Census Department. While working under Gen. Douglas MacArthur as a
census consultant to the Japanese government, he famously taught statistical process control
methods to Japanese business leaders, returning to Japan for many years to consult and to
witness economic growth that he had predicted would come as a result of application of
techniques learned from Walter Shewhart at Bell Laboratories. Later, he became a professor at
New York University while engaged as an independent consultant in Washington, D.C.
Deming was the author of Out of the Crisis (1982–1986) and The New Economics for Industry,
Government, Education (1993), which includes his System of Profound Knowledge and the 14
Points for Management (described below). Deming played flute & drums and composed music
throughout his life, including sacred choral compositions and an arrangement of The Star
Spangled Banner.[4]
In 1993, Deming founded the W. Edwards Deming Institute in Washington, D.C., where the
Deming Collection at the U.S. Library of Congress includes an extensive audiotape and
videotape archive. The aim of the W. Edwards Deming Institute is to foster understanding of The
Deming System of Profound Knowledge to advance commerce, prosperity, and peace.[5]
[edit] Family
Born in Sioux City, Iowa, William Edwards Deming was raised in Polk City, Iowa on his
grandfather Henry Coffin Edwards's chicken farm, then later on a 40-acre (160,000 m2) farm
purchased by his father in Powell, Wyoming. He was the son of William Albert Deming and
Pluma Irene Edwards,[6] the daughter of Henry Coffin Edwards and Elizabeth Jane Grant. His
father's name was also William, so Deming went by his middle name Edwards (the maiden name
of his mother).
His parents were well educated and emphasized the importance of education to their children.
Pluma had studied in San Francisco and was a musician. William Albert had studied
mathematics and law.
He was a direct descendant of John Deming,[7] (1615–1705) an early Puritan settler and original
patentee of the Connecticut Colony and Honor Treat, the daughter of Richard Treat (1584–1669)
an early New England settler, Deputy to the Connecticut Legislature and also a Patentee of the
Royal Charter of Connecticut, 1662.
Deming married twice: first to Agnes Bell (died 1930) in 1922; second to Lola Shupe (died
1986) in 1932.
Deming married Agnes Bell in 1922, and together they survived the difficult college years. But
in 1930, she died. Her death came a little more than a year after they had adopted a daughter,
Dorothy. Deming made use of various private homes to help raise the infant and following his
marriage to Lola Elizabeth Shupe (with whom he co-authored several papers) in 1932, brought
her back home to stay. He and Lola had two more children, Diana and Linda. Diana and Linda
survive along with seven grandchildren and three great-grandchildren. Dorothy died in 1984 and
Lola in 1986. [1]
In 1927, Deming was introduced to Walter A. Shewhart of the Bell Telephone Laboratories by
Dr. C.H. Kunsman of the United States Department of Agriculture (USDA). Deming found great
inspiration in the work of Shewhart, the originator of the concepts of statistical control of
processes and the related technical tool of the control chart, as Deming began to move toward the
application of statistical methods to industrial production and management. Shewhart's idea of
common and special causes of variation led directly to Deming's theory of management. Deming
saw that these ideas could be applied not only to manufacturing processes but also to the
processes by which enterprises are led and managed. This key insight made possible his
enormous influence on the economics of the industrialized world after 1950.[8]
In 1936 he studied under Sir Ronald Aylmer Fisher and Jerzy Neyman at University College,
London, England.
Deming edited a series of lectures delivered by Shewhart at USDA, Statistical Method from the
Viewpoint of Quality Control, into a book published in 1939. One reason he learned so much
from Shewhart, Deming remarked in a videotaped interview, was that, while brilliant, Shewhart
had an "uncanny ability to make things difficult." Deming thus spent a great deal of time both
copying Shewhart's ideas and devising ways to present them with his own twist.[9]
Deming developed the sampling techniques that were used for the first time during the 1940 U.S.
Census. During World War II, Deming was a member of the five-man Emergency Technical
Committee. He worked with H.F. Dodge, A.G. Ashcroft, Leslie E. Simon, R.E. Wareham, and
John Gaillard in the compilation of the American War Standards (American Standards
Association Z1.1-3 published in 1942)[10] and taught statistical process control (SPC) techniques
to workers engaged in wartime production. Statistical methods were widely applied during
World War II, but faded into disuse a few years later in the face of huge overseas demand for
American mass-produced products.
In 1947, Deming was involved in early planning for the 1951 Japanese Census. The Allied
powers were occupying Japan, and he was asked by the United States Department of the Army to
assist with the census. While in Japan, Deming's expertise in quality control techniques,
combined with his involvement in Japanese society, led to his receiving an invitation from the
Japanese Union of Scientists and Engineers (JUSE).[6]
JUSE members had studied Shewhart's techniques, and as part of Japan's reconstruction efforts,
they sought an expert to teach statistical control. During June–August 1950, Deming trained
hundreds of engineers, managers, and scholars in statistical process control (SPC) and concepts
of quality. He also conducted at least one session for top management.(The list includes top
japanese industrialists such as the likes of Akio Morita the co-founder of Sony Corp)[11] Deming's
message to Japan's chief executives: improving quality will reduce expenses while increasing
productivity and market share.[1] Perhaps the best known of these management lectures was
delivered at the Mt. Hakone Conference Center in August 1950.
A number of Japanese manufacturers applied his techniques widely and experienced theretofore
unheard-of levels of quality and productivity. The improved quality combined with the lowered
cost created new international demand for Japanese products.
Deming declined to receive royalties from the transcripts of his 1950 lectures, so JUSE's board
of directors established the Deming Prize (December 1950) to repay him for his friendship and
kindness.[11] Within Japan, the Deming Prize continues to exert considerable influence on the
disciplines of quality control and quality management.[12]
[edit] Honors
In 1960, the Prime Minister of Japan (Nobusuke Kishi), acting on behalf of Emperor Hirohito,
awarded Dr. Deming Japan’s Order of the Sacred Treasure, Second Class.[13] The citation on the
medal recognizes Deming's contributions to Japan’s industrial rebirth and its worldwide success.
The first section of the meritorious service record describes his work in Japan:[11]
The second half of the record lists his service to private enterprise through the introduction of
epochal ideas, such as quality control and market survey techniques.
Among his many honors, an exhibit memorializing Dr. Deming's contributions and his famous
Red Bead Experiment is on display outside the board room of the American Society for Quality.
[14]
"He was known for his kindness to and consideration for those he worked with, for his
robust, if very subtle, humor, and for his interest in music. He sang in a choir, played
drums and flute, and published several original pieces of sacred music."[15][16]
Later, from his home in Washington, D.C., Dr. Deming continued running his own consultancy
business in the United States, largely unknown and unrecognized in his country of origin and
work. In 1980, he was featured prominently in an NBC documentary titled If Japan can... Why
can't we? about the increasing industrial competition the United States was facing from Japan.
As a result of the broadcast, demand for his services increased dramatically, and Deming
continued consulting for industry throughout the world until his death at the age of 93.
Ford Motor Company was one of the first American corporations to seek help from Deming. In
1981, Ford's sales were falling. Between 1979 and 1982, Ford had incurred $3 billion in losses.
Ford's newly appointed Division Quality Manager John A. Manoogian was charged with
recruiting Dr. Deming to help jump-start a quality movement at Ford.[17] Deming questioned the
company's culture and the way its managers operated. To Ford's surprise, Deming talked not
about quality but about management. He told Ford that management actions were responsible for
85% of all problems in developing better cars. In 1986 Ford came out with a profitable line of
cars, the Taurus-Sable line. In a letter to Autoweek Magazine, Donald Petersen, then Ford
Chairman, said, "We are moving toward building a quality culture at Ford and the many changes
that have been taking place here have their roots directly in Dr. Deming's teachings."[18] By 1986,
Ford had become the most profitable American auto company. For the first time since the 1920s,
its earnings had exceeded those of arch rival General Motors (GM). Ford had come to lead the
American automobile industry in improvements. Ford's following years' earnings confirmed that
its success was not a fluke, for its earnings continued to exceed GM and Chrysler's.
In 1990 Marshall Industries (NYSE:MI, 1984–1999) CEO, Robert Rodin, trained with the then
90 year old Deming and his colleague Nida Backaitus. Marshall Industries' dramatic
transformation and growth from $400 Million to $1.8 Billion was chronicled in Deming's last
book "The New Economics", a Harvard Case Study, and "Free Perfect and Now".
In 1982, Dr. Deming, as author, had his book published by the MIT Center for Advanced
Engineering as Quality, Productivity, and Competitive Position, which was renamed Out of the
Crisis in 1986. Deming offers a theory of management based on his famous 14 Points for
Management. Management's failure to plan for the future brings about loss of market, which
brings about loss of jobs. Management must be judged not only by the quarterly dividend, but by
innovative plans to stay in business, protect investment, ensure future dividends, and provide
more jobs through improved products and services. "Long-term commitment to new learning and
new philosophy is required of any management that seeks transformation. The timid and the
fainthearted, and the people that expect quick results, are doomed to disappointment."
Over the course of his career, Deming received dozens of academic awards, including another,
honorary, Ph.D. from Oregon State University. In 1987 he was awarded the National Medal of
Technology: "For his forceful promotion of statistical methodology, for his contributions to
sampling theory, and for his advocacy to corporations and nations of a general management
philosophy that has resulted in improved product quality." In 1988, he received the
Distinguished Career in Science award from the National Academy of Sciences.[6]
In 1993, Dr. Deming published his final book, The New Economics for Industry, Government,
Education, which included the System of Profound Knowledge and the 14 Points for
Management. It also contained educational concepts involving group-based teaching without
grades, as well as management without individual merit or performance reviews.
In December 1993, W. Edwards Deming died in his sleep at the age of 93 in his Washington
home at about 3 a.m. due to "natural causes." His family was by his side when he died.[19]
In the 1970s, Dr. Deming's philosophy was summarized by some of his Japanese proponents
with the following 'a'-versus-'b' comparison:
(a) When people and organizations focus primarily on quality, defined by the following
ratio,
"The prevailing style of management must undergo transformation. A system cannot 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; and
Help people to pull away from their current practices and beliefs and move into the new
philosophy without a feeling of guilt about the past."
Deming advocated that all managers need to have what he called a System of Profound
Knowledge, consisting of four parts:
Deming explained, "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 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 cannot 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."[21]
The Appreciation of a system involves understanding how interactions (i.e., feedback) between
the elements of a system can result in internal restrictions that force the system to behave as a
single organism that automatically seeks a steady state. It is this steady state that determines the
output of the system rather than the individual elements. Thus it is the structure of the
organization rather than the employees, alone, which holds the key to improving the quality of
output.
The Knowledge of variation involves understanding that everything measured consists of both
"normal" variation due to the flexibility of the system and of "special causes" that create defects.
Quality involves recognizing the difference to eliminate "special causes" while controlling
normal variation. Deming taught that making changes in response to "normal" variation would
only make the system perform worse. Understanding variation includes the mathematical
certainty that variation will normally occur within six standard deviations of the mean.
The System of Profound Knowledge is the basis for application of Deming's famous 14 Points
for Management, described below.
Deming offered fourteen key principles for management for transforming business effectiveness.
The points were first presented in his book Out of the Crisis. (p. 23-24)[22] Although Deming
does not use the term in his book, it is credited with launching the Total Quality Management
movement.[23]
1. Create constancy of purpose toward improvement of product and service, with the aim to
become competitive and stay in business, and to provide jobs.
2. Adopt the new philosophy. We are in a new economic age. Western management must
awaken to the challenge, must learn their responsibilities, and take on leadership for
change.
3. Cease dependence on inspection to achieve quality. Eliminate the need for massive
inspection by building quality into the product in the first place.
4. End the practice of awarding business on the basis of price tag. Instead, minimize total
cost. Move towards a single supplier for any one item, on a long-term relationship of
loyalty and trust.
5. Improve constantly and forever the system of production and service, to improve quality
and productivity, and thus constantly decrease costs.
6. Institute training on the job.
7. Institute leadership (see Point 12 and Ch. 8 of "Out of the Crisis"). The aim of
supervision should be to help people and machines and gadgets to do a better job.
Supervision of management is in need of overhaul, as well as supervision of production
workers.
8. Drive out fear, so that everyone may work effectively for the company. (See Ch. 3 of
"Out of the Crisis")
9. Break down barriers between departments. People in research, design, sales, and
production must work as a team, to foresee problems of production and in use that may
be encountered with the product or service.
10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and
new levels of productivity. Such exhortations only create adversarial relationships, as the
bulk of the causes of low quality and low productivity belong to the system and thus lie
beyond the power of the work force.
11. a. Eliminate work standards (quotas) on the factory floor. Substitute leadership.
b. Eliminate management by objective. Eliminate management by numbers, numerical
goals. Substitute leadership.
12. a. Remove barriers that rob the hourly worker of his right to pride of workmanship. The
responsibility of supervisors must be changed from sheer numbers to quality.
b. Remove barriers that rob people in management and in engineering of their right to
pride of workmanship. This means, inter alia," abolishment of the annual or merit rating
and of management by objective (See Ch. 3 of "Out of the Crisis").
13. Institute a vigorous program of education and self-improvement.
14. Put everybody in the company to work to accomplish the transformation. The
transformation is everybody's job.
"Massive training is required to instill the courage to break with tradition. Every activity and
every job is a part of the process." [24]
Deming's advocacy of the Plan-Do-Check-Act cycle, his 14 Points, and Seven Deadly Diseases
have had tremendous influence outside of manufacturing and have been applied in other arenas,
such as in the relatively new field of sales process engineering.[26]
"There is no substitute for knowledge." This statement emphasizes the need to know
more, about everything in the system. It is considered as a contrast to the old statement,
"There is no substitute for hard work" by Thomas Alva Edison (1847–1931). Instead, a
small amount of knowledge could save many hours of hard work.
"“In God we trust; all others must bring data.” W. Edwards Deming
"The most important things cannot be measured." The issues that are most important,
long term, cannot be measured in advance. However, they might be among the factors
that an organization is measuring, just not understood as most important at the time.
"The most important things are unknown or unknowable." The factors that have the
greatest impact, long term, can be quite surprising. Analogous to an earthquake that
disrupts service, other "earth-shattering" events that most affect an organization will be
unknown or unknowable, in advance. Other examples of important things would be: a
drastic change in technology, or new investment capital.
"Experience by itself teaches nothing."[27] This statement emphasizes the need to interpret
and apply information against a theory or framework of concepts that is the basis for
knowledge about a system. It is considered as a contrast to the old statement, "Experience
is the best teacher" (Dr. Deming disagreed with that). To Dr. Deming, knowledge is best
taught by a master who explains the overall system through which experience is judged;
experience, without understanding the underlying system, is just raw data that can be
misinterpreted against a flawed theory of reality. Deming's view of experience is related
to Shewhart's concept, "Data has no meaning apart from its context" (see Walter A.
Shewhart, "Later Work").
"By what method?... Only the method counts."[27] When information is obtained, or data is
measured, the method, or process used to gather information, greatly affects the results.
For example, the "Hawthorne effect" showed that people just asking frequently for
opinions seemed to affect the resulting outcome, since some people felt better just being
asked for their opinion. Dr. Deming warned that basing judgments on customer
complaints alone ignored the general population of other opinions, which should be
judged together, such as in a statistical sample of the whole, not just isolated complaints:
survey the entire group about their likes and dislikes (see Sampling (statistics)). The
extreme complaints might not represent the attitudes of the whole group. Similarly,
measuring or counting data depends on the instrument or method used. Changing the
method changes the results. Aim and method are essential. An aim without a method is
useless. A method without an aim is dangerous. It leads to action without direction and
without constancy of purpose. Deming used an illustration of washing a table to teach a
lesson about the relationship between purpose and method. If you tell someone to wash a
table, but not the reason for washing it, they cannot do the job properly (will the table be
used for chopping food or potting plants?). That does not mean just giving the
explanation without an operational definition. The information about why the table needs
to be washed, and what is to be done with it, makes it possible to do the job intelligently.
"You can expect what you inspect." Dr. Deming emphasized the importance of measuring
and testing to predict typical results. If a phase consists of inputs + process + outputs, all
3 are inspected to some extent. Problems with inputs are a major source of trouble, but
the process using those inputs can also have problems. By inspecting the inputs and the
process more, the outputs can be better predicted, and inspected less. Rather than use
mass inspection of every output product, the output can be statistically sampled in a
cause-effect relationship through the process.
"Special Causes and Common Causes": Dr. Deming considered anomalies in quality to
be variations outside the control limits of a process. Such variations could be attributed to
one-time events called "special causes" or to repeated events called "common causes"
that hinder quality.
Acceptable Defects: Rather than waste efforts on zero-defect goals, Dr. Deming stressed
the importance of establishing a level of variation, or anomalies, acceptable to the
recipient (or customer) in the next phase of a process. Often, some defects are quite
acceptable, and efforts to remove all defects would be an excessive waste of time and
money.
The Deming Cycle (or Shewhart Cycle): As a repetitive process to determine the next
action, the Deming Cycle describes a simple method to test information before making a
major decision. The 4 steps in the Deming Cycle are: Plan-Do-Check-Act (PDCA), also
known as Plan-Do-Study-Act or PDSA. Dr. Deming called the cycle the Shewhart Cycle,
after Walter A. Shewhart. The cycle can be used in various ways, such as running an
experiment: PLAN (design) the experiment; DO the experiment by performing the steps;
CHECK the results by testing information; and ACT on the decisions based on those
results.
Semi-Automated, not Fully Automated: Dr. Deming lamented the problem of automation
gone awry ("robots painting robots"): instead, he advocated human-assisted semi-
automation, which allows people to change the semi-automated or computer-assisted
processes, based on new knowledge. Compare to Japanese term 'jidoka' (which can be
loosely translated as "automation with a human touch").
"The problem is at the top; management is the problem." [21] Dr. Deming emphasized that
the top-level management had to change to produce significant differences, in a long-
term, continuous manner. As a consultant, Deming would offer advice to top-level
managers, if asked repeatedly, in a continuous manner.
"A system must be managed. It will not manage itself. Left to themselves in the Western
world, components become selfish, competitive. We can not afford the destructive effect
of competition." [21]
"To successfully respond to the myriad of changes that shake the world, transformation
into a new style of management is required. The route to take is what I call profound
knowledge—knowledge for leadership of transformation." [21]
"The worker is not the problem. The problem is at the top! Management!" [28]
Management’s job. It is management’s job to direct the efforts of all components toward
the aim of the system. The first step is clarification: everyone in the organization must
understand the aim of the system, and how to direct his efforts toward it. Everyone must
understand the damage and loss to the whole organization from a team that seeks to
become a selfish, independent, profit centre." [21]
"They realized that the gains that you get by statistical methods are gains that you get
without new machinery, without new people. Anybody can produce quality if he lowers
his production rate. That is not what I am talking about. Statistical thinking and
statistical methods are to Japanese production workers, foremen, and all the way
through the company, a second language. In statistical control, you have a reproducible
product hour after hour, day after day. And see how comforting that is to management,
they now know what they can produce, they know what their costs are going to be." [29]
"I think that people here expect miracles. American management thinks that they can just
copy from Japan—but they don't know what to copy!" [29]
"What is the variation trying to tell us about a process, about the people in the process?"
[21]
Dr. Shewhart created the basis for the control chart and the concept of a state of
statistical control by carefully designed experiments. While Dr. Shewhart drew from pure
mathematical statistical theories, he understood that data from physical processes never
produce a "normal distribution curve" (a Gaussian distribution, also commonly referred
to as a "bell curve"). He discovered that observed variation in manufacturing data did not
always behave the same way as data in nature (Brownian motion of particles). Dr.
Shewhart concluded that while every process displays variation, some processes display
controlled variation that is natural to the process, while others display uncontrolled
variation that is not present in the process causal system at all times.[30] Dr. Deming
renamed these distinctions "common cause" for chance causes and "special cause" for
assignable causes. He did this so the focus would be placed on those responsible for
doing something about the variation, rather than the source of the variation. It is top
management’s responsibility to address "common cause" variation, and therefore it is
management’s responsibility to make improvements to the whole system. Because
"special cause" variation is assignable, workers, supervisors or middle managers that
have direct knowledge of the assignable cause best address this type of specific
intervention.[8]
(Deming on Quality Circles) "That's all window dressing. That's not fundamental. That's
not getting at change and the transformation that must take place. Sure we have to solve
problems. Certainly stamp out the fire. Stamp out the fire and get nowhere. Stamp out the
fires puts us back to where we were in the first place. Taking action on the basis of
results without theory of knowledge, without theory of variation, without knowledge
about a system. Anything goes wrong, do something about it, overreacting; acting
without knowledge, the effect is to make things worse. With the best of intentions and best
efforts, managing by results is, in effect, exactly the same, as Dr. Myron Tribus put it,
while driving your automobile, keeping your eye on the rear view mirror, what would
happen? And that's what management by results is, keeping your eye on results." [2]
"The most important figures that one needs for management are unknown or unknowable
(Lloyd S. Nelson, director of statistical methods for the Nashua corporation), but
successful management must nevertheless take account of them." [22] Deming realized that
many important things that must be managed couldn’t be measured. Both points are
important. One, not everything of importance to management can be measured. And two,
you must still manage those important things. Spend $20,000 training 10 people in a
special skill. What's the benefit? "You'll never know," answered Deming. "You'll never
be able to measure it. Why did you do it? Because you believed it would pay off.
Theory." Dr. Deming is often incorrectly quoted as saying, "You can't manage what you
can't measure." In fact, he stated that one of the seven deadly diseases of management is
running a company on visible figures alone.
Joseph Moses Juran (December 24, 1904 – February 28, 2008) was a 20th century management
consultant who is principally remembered as an evangelist for quality and quality management,
writing several influential books on those subjects.[1] He was the brother of Academy Award
winner Nathan H. Juran.
In 1924, with a bachelor's degree in electrical engineering from the University of Minnesota,
Juran joined Western Electric's Hawthorne Works. His first job was troubleshooting in the
Complaint Department.[4] In 1925, Bell Labs proposed that Hawthorne Works personnel be
trained in its newly-developed statistical sampling and control chart techniques. Juran was
chosen to join the Inspection Statistical Department, a small group of engineers charged with
applying and disseminating Bell Labs' statistical quality control innovations. This highly-visible
position fueled Juran's rapid ascent in the organization and the course of his later career.[5]
In 1926, he married Sadie Shapiro, and they subsequently had four children: Robert, Sylvia,
Charles and Donald. They had been married for over 81 years when he died in 2008.
Juran was promoted to department chief in 1928, and the following year became a division chief.
He published his first quality related article in Mechanical Engineering in 1935. In 1937, he
moved to Western Electric/AT&T's headquarters in New York City.
As a hedge against the uncertainties of the Great Depression, he enrolled in Loyola University
Chicago School of Law in 1931. He graduated in 1935 and was admitted to the Illinois bar in
1936, though he never practiced Law.[6]
During the Second World War, through an arrangement with his employer, Juran served in the
Lend-Lease Administration and Foreign Economic Administration. Just before war's end, he
resigned from Western Electric, and his government post, intending to become a freelance
consultant.[7] He joined the faculty of New York University as an adjunct Professor in the
Department of Industrial Engineering, where he taught courses in quality control and ran round
table seminars for executives. He also worked through a small management consulting firm on
projects for Gilette, Hamilton Watch Company and Borg-Warner. After the firm's owner's
sudden death, Juran began his own independent practice, from which he made a comfortable
living until his retirement in the late 1990s. His early clients included the now defunct Bigelow-
Sanford Carpet Company, the Koppers Company, the International Latex Company, Bausch &
Lomb and General Foods.
[edit] Japan
The end of World War II compelled Japan to change its focus from becoming a military power to
becoming an economic one. Despite Japan's ability to compete on price, its consumer goods
manufacturers suffered from a long-established reputation of poor quality. The first edition of
Juran's Quality Control Handbook in 1951 attracted the attention of the Japanese Union of
Scientists and Engineers (JUSE) which invited him to Japan in 1952. When he finally arrived in
Japan in 1954 Juran met with ten manufacturing companies, notably Showa Denko, Nippon
Kōgaku, Noritake, and Takeda Pharmaceutical Company.[8] He also lectured at Hakone, Waseda
University, Ōsaka, and Kōyasan. During his life he made ten visits to Japan, the last in 1990.
Working independently of W. Edwards Deming (who focused on the use of statistical process
control), Juran—who focused on managing for quality—went to Japan and started courses
(1954) in Quality Management. The training started with top and middle management. The idea
that top and middle management need training had found resistance in the United States. For
Japan, it would take some 20 years for the training to pay off. In the 1970s, Japanese products
began to be seen as the leaders in quality. This sparked a crisis in the United States due to quality
issues in the 1980s.
[edit] Contributions
[edit] Pareto principle
In 1941 Juran stumbled across the work of Vilfredo Pareto and began to apply the Pareto
principle to quality issues (for example, 80% of a problem is caused by 20% of the causes). This
is also known as "the vital few and the trivial many". In later years Juran preferred "the vital few
and the useful many" to signal that the remaining 80% of the causes should not be totally
ignored.
When he began his career in the 1920s the principal focus in quality management was on the
quality of the end, or finished, product. The tools used were from the Bell system of acceptance
sampling, inspection plans, and control charts. The ideas of Frederick Winslow Taylor
dominated.
Juran is widely credited for adding the human dimension to quality management. He pushed for
the education and training of managers. For Juran, human relations problems were the ones to
isolate. Resistance to change—or, in his terms, cultural resistance—was the root cause of quality
issues. Juran credits Margaret Mead's book Cultural Patterns and Technical Change for
illuminating the core problem in reforming business quality.[9] He wrote Managerial
Breakthrough, which was published in 1964, outlining the issue.
Juran's vision of quality management extended well outside the walls of the factory to encompass
non-manufacturing processes, especially those that might be thought of as service related. For
example, in an interview published in 1997[10] he observed:
The key issues facing managers in sales are no different than those faced by managers in other
disciplines. Sales managers say they face problems such as "It takes us too long...we need to reduce the
error rate." They want to know, "How do customers perceive us?" These issues are no different than
those facing managers trying to improve in other fields. The systematic approaches to improvement are
identical. ... There should be no reason our familiar principles of quality and process engineering would
not work in the sales process.
During his 1966 visit to Japan, Juran learned about the Japanese concept of Quality Circles
which he enthusiastically evangelized in the West.[11] Juran also acted as a matchmaker between
U.S. and Japanese companies looking for introductions to each other.[12]
Consulting for U.S. companies such as Armour and Company, Dennison Manufacturing
Company, Merck, Sharp & Dohme, Otis Elevator Company, Xerox, and the United States Navy
Fleet Ballistic Missile System.[13]
Consulting for Western European and Japanese companies such as Rolls-Royce Motors, Philips,
Volkswagen, Royal Dutch Shell and Toyota Motor Company[14]
Pro-bono consulting for Soviet-Bloc countries (Hungary, Romania, Czechoslovakia, Russia,
Poland, Yugoslavia)[15]
Founding the Juran Institute[16] and the Juran Foundation.[17]
Joseph M. Juran made many contributions to the field of quality management in his 70+
active working years. His book, the Quality Control Handbook, is a classic reference for
quality engineers. He revolutionized the Japanese philosophy on quality management
and in no small way worked to help shape their economy into the industrial leader it is
today. Dr. Juran was the first to incorporate the human aspect of quality management
which is referred to as Total Quality Management.
The process of developing ideas was a gradual one for Dr. Juran. Top management
involvement, the Pareto principle, the need for widespread training in quality, the
definition of quality as fitness for use, the project-by-project approach to quality
improvement--these are the ideas for which Juran is best known, and all emerged
gradually
Young Joseph Juran demonstrates his affinity for knowledge; in school, his level of mathematical and
scientific proficiency so exceeds the average that he eventually skips the equivalent of four grade levels. In
1920, he enrolls at the University of Minnesota, the first member of his family to pursue higher education.
By 1925, he had received a B.S. in electrical engineering and is working with Western Electric in the
Inspection Department of the famous Hawthorne Works in Chicago. The complexity of this enormous
factory, manned by 40,000 workers, presents Juran with his first challenge in management.
In 1926, a team of Quality Control pioneers from Bell Laboratories brought a new program to Hawthorne
Works. The program, designed to implement new tools and techniques, required a training program.
From a group of 20 trainees, Juran became one of two engineers for the Inspection Statistical
Department, one of the first of such divisions created in American industry.
By 1937, Juran was the chief of Industrial Engineering at Western Electric's home office in New York. His
work involved visiting other companies and discussing methods of quality management. During WWII,
Juran's temporary leave of absence from Western Electric stretched through four years. During that time,
he served in Washington, D.C. as an assistant administrator for the Lend-Lease Administration. He and
his team improved the efficiency of the process, eliminating excessive paperwork and thus hastening the
arrival of supplies to the United States' overseas friends. Juran finally left Washington in 1945, but he
didn't return to Western Electric. Rather, he chose to devote the remainder of his life to the study of
quality management.
As early as 1928, Juran had written a pamphlet entitled "Statistical Methods Applied to Manufacturing
Problems." By the end of the war, he was a well-known and highly-regarded statistician and industrial
engineering theorist. After he left Western Electric, Juran became Chairman of the Department of
Administrative Engineering at New York University, where he taught for many years. He also created a
thriving consulting practice, and wrote books and delivered lectures for American Management
Association. It was his time with NYU and the AMA which allowed for the development of his
management philosophies which are now embedded in the foundation of American and Japanese
management. His classic book, the Quality Control Handbook, first released in 1951, is still the standard
reference work for quality managers. The following table outlines the major points of Dr. Juran's quality
management ideas:
Quality Trilogy:
Quality Control Prove that the process can produce the product under operating conditions with
minimal inspection.
Transfer the process to Operations.
Like Frederick Taylor, Philip Crosby's ideas came from his experience on an assembly line. He focused on
zero defects, not unlike the focus of the modern Six Sigma Quality movement. Mr. Crosby was quick to
point out, however, that zero defects is not something that originates on the assembly line. To create a
manufacturing process that has zero defects management must set the tone and atmosphere for
employees to follow. If management does not create a system by which zero defects are clearly the
objective then employees are not to blame when things go astray and defects occur. The benefit for
companies of such a system is a dramatic decrease in wasted resources and time spent producing goods
that consumer's do not want.
Mr. Crosby defined quality as a conformity to certain specifications set forth by management and not
some vague concept of "goodness." These specifications are not arbitrary either; they must be set
according to customer needs and wants.
Biography
Philip Crosby was Born in West Virginia in 1926. After serving in WWII and the Korean War he has
worked for Crosley, Martin-Marietta and ITT where he was corporate vice president for 14 years. Philip
Crosby Associates, Inc., founded in 1979, was his management consulting firm that served served
hundreds of companies. Since retiring in 1991 he has founded Career IV, Inc., Philip Crosby Associates II,
Inc. and the Quality College. Phil Crosby died in August, 2001, but his legacy will live on in better quality
in thousands of organizations.
Here's an encomium from W. Noel Haskins-Hafer, a teacher of quality improvement: 'He was one of the
warmest and most focused people I ever had the pleasure to meet and his common-sense approach will be
missed by many.