Quotations and concepts

In his later years, Dr. Deming taught many concepts, which he emphasized by key sayings or quotations that he repeated. A number of these quotes have been recorded. Some of the concepts might seem to be oxymorons or contradictory to each other; however, the student is given each concept to ponder its meaning in the whole system, over time.

"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.

"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." 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." 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. The extreme complaints might not represent the attitudes of the whole group. Similarly, measuring or counting data depends on the instrument or method used.

"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." 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.

"What is a system? A system is a network of interdependent components that work together to try to accomplish the aim of the system. A system must have an aim. Without an aim, there is no system. The aim of the system must be clear to everyone in the system. The aim must include plans for the future. The aim is a value judgment. (We are of course talking here about a man-made system.)"

"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."

"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."

"The worker is not the problem. The problem is at the top! Management!" 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."

"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."

"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!"

"What is the variation trying to tell us about a process, about the people in the process?" 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. 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.

(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."

"Knowledge is theory. We should be thankful if action of management is based on theory. Knowledge has temporal spread. Information is not knowledge. The world is drowning in information but is slow in acquisition of knowledge. There is no substitute for knowledge." This statement emphasizes the need for theory of knowledge (see: epistemology, Shewhart cycle, C. I. Lewis).

"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." 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.

"By what method?" When information is obtained, or data is measured, the method, or process used to gather information, affects the results. 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 (Sampling (statistics)). 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.