During my early years as an engineer in Michigan, I came across W.Edwards Deming attending a seminar he was giving in,of all the places, Petoskey,Michigan.For those who might not recognize the name, Deming was a lowly statistician in the War Department during WWII and implemented several quality methods improving the reliability and quality of many components the war effort needed.
When the war ended, Deming took his ideas and approached the Big Three stating that these ideas on quality would improve production,bring down scrap and empower workers to be their own supervisors.In the mindset prevailing at that time, treating workers as capable of thinking on their own was a no-no and Deming was summarily chucked out of the corporate suites of GM,Ford and Chrysler.
Disappointed,but retaining faith in his own methods,Deming took his ideas to Japan where he was welcomed by two unknown little companies called Toyota Motor and Honda Motor.He told them at that time,if you adopt my techniques of statistical quality control,you will not merely cut costs and improve quality, you will overwhelm the American car industry to the point they will be screaming for help.
I recalled his words today, as GM and Ford are laying off thousans of workers,both blue and white collar, with no prospect of ever coming back.
It is the last throes of an automotive Empire that has been reduced to a mere shadow of its self by the arrogance of its managers and shareholders.It is reminiscent of another arrogant American administration that is fighting to maintain its hegemonic impulses while barely keeping itself together as disarray reigns.
W.Edwards Deming is no more but his wisdom and his humility would have served the auto industry well.He was truly a prophet without honor in the land of his birth.By the time he was welcomed into the boardrooms of Detroit,mainly as a result of the impact the Japanese auto companies were making in the marketplace, it was too late.
Deming:The right man at the right time but at the wrong place.History plays cruel tricks.
My observation may be considered not specifically applicable to KlatooBaradaNikto’s excellent blog, but here it is. The root problem in American industry has always been the lack of vision by the president or COO of the business serving at the pleasure of the Board of Directors. However, the current business world where control and influence is wielded more by Wall Street than corporate executives, there is no solid visionary planning done in most companies. In truth most COO’s worry more about how Wall Street analyzers view their company than they do about their priority R&D programs.
The Union movement in this country tragically missed many great opportunities since the 1950’s to have secured decision making power within the very corporations that their workers were servicing. Surplus union funds could have been used to purchase securities and stocks in the employing corporations with no significant impact on the operating budget of the unions. Instead, in particular the automotive unions, gigantic union pension funds were improperly invested or illegally raided by criminal actions of some union executives. If American unions had followed the example of some of the British Labor Unions and invested in the employing businesses; our unions too would have been able to exercise critical control over the selection and decisions of the corporate executive through the investment mechanism that would maintain a substantial number of union people sitting on the board of directors.
Hence , I submit that if American unions are successful in making a comeback that this philosophy must be incorporated as a critical part of the union agenda, if union power is to be preserved.
Union participation would effectively implement a critical part of Deming’s Q&A philosophy, namely FEEDBACK FROM THE WORKERS ON THE PRODUCTION LINES. However, as opposed to the Japanese culture, power in American business can only exercised by those who have the financial control. Therefore, American unions are the only knowledgeable in-house entity to secure efficient management over the R&D plans of the corporation. Union oversight could have prevented the GM disaster, the Cadillac Cimarron (1982 – 1988) which leads the list of the 50 worst automobiles ever produced.
You assume,of course, that the Unions have a vested interest in improving the products the company makes and would actively participate in such an effort.In a culture, where propaganda and hucksterism have effectively taken control,the Unions would be slitting their own throats in Hara-Kiri if they believe anything the management tells them.Given the turnover of management every few years, no one’s words can be taken at face value.
This is where Deming saw the problem.He said that in order for workers to feel that their efforts at improving the Quality were going to be implemented and their efforts appreciated,top management must not merely support the efforts but also make sure that workers who point out flaws were not punished.That,to this day does not happen at GM.
The appointment of managers who are accountants and not engineers has another long term detrimental consequence.Such managers shun the company of engineers lest their ignorance shines through.Face saving of the big man is such a part of the ritual of American pecking order, exposure of one’s ignorance would doom the big man’s chances.So, he waits while he sees the right opportunity to take his money and run.
I can only point out the difference between Japanese an American style management by saying that in Japan, the highest honor any engineer or manager can get is to receive the Deming Medal.That honor is not given out annually but for outstaning contribution to any industry over a life time.
The US auto industry pays lip service to Deming now but has conveniently ignored his advice on how to implement the quality programs he taught over his life.
One more thing.Deming was contemptuous of the Harvard B-School and its so called management techniques.In organizations populated by Harvard B-School graduates,he struck terror and rightly so.