W. Edwards Deming
A thorough understanding of statistical process control (SPC) is the basic cornerstone of
Deming's approachto quality. In fact, the Japanese.were so impressed with his knowledge
of SPC that they invited him back to teach the subject to Japanese managers and workers Deming emphasized the importance of having an overall organizational approach for quality management. He therefore insisted that top managers attend his lectures. knowing that the QC staff by itself could not support and sustain an ongoing organization wide quality effort. The Japanese have recognized Deming's tremendous contribution to the success of their companies by naming their highest award for industrial excellence after him-the Deming Prize. (Another indicator that U.S. companies have made significant progress toward improving quality is that Florida Power & Light. a non-Japane e company, was awarded the Deming Prize.) One of Deming's major contributions focused on disproving the fallacy that it costs more to make better-quality products. He demonstrated that just the opposite is true: a high-quality process is, in fact, less costly than a low-quality one. When products are made properly the first time. substantial savings accrue from the elimination of unnecessary labor for rework and repairs and the cost to crap nonconforming material. Deming also introduced the plan-do-deck-act (PDCA) cycle to the Japanese. According to Deming. 85 percent of the quality problems generated by a company can attributed to management, because they have the PO\\ er to make the decisions that impact on the current systems and practices. His extensive experiences with such companies as Ford, Nashua Corp., and Florida Power & Light have supported this claim the years. Deming identified l.f. points that he believed to be critical for quality. These 14 points are presented in Exhibit 6.3.