Page 20 - DMGT524_TOTAL_QUALITY_MANAGEMENT

Unit 2: Gurus of Quality Management

7. It is …………………… which creates humility and values and thus finds solution to all Notes
sorts of problems.
8. …………………… thinking defeats constancy of purpose to stay in business with long-
term growth.

Caselet What Deming Taught Toyota – Every 21st Century
Manager Needs to Know

r. W. Edwards Deming’s principles support the global success of Toyota, Proctor
& Gamble, Ritz Carlton, Harley-Davidson, and many other leading organizations.
DHis teachings are essential for the effective application of Six Sigma, Lean
Manufacturing, and Loyalty/Net Promoter and other quality improvement, customer
retention and business growth methods.
Dr. Deming’s profound, yet simple; success strategies offer your organization a proven
system to achieve lasting growth and success. The principles apply universally to business,
healthcare, education—in fact, to any enterprise—and to you personally.

Ironically, this American prophet—still unknown to most of his countrymen—created the
theory behind today’s successful business practices. He is a national hero in Japan. The
highest award for quality in Japan—a Nobel Prize for business success—is the Deming
Prize, awarded with great fanfare every year. Dr. Deming helped Toyota—and other
leading Japanese exporting companies—develop the vital management philosophy and
practices that enabled them to become market leaders around the world. Dr. Shoichiro
Toyoda, Chairman and former President (1982-1999) of Toyota, said:
Every day, “I think about what he meant to us. Deming is the core of our management”.

In 2005, accepting the American Society for Quality’s Deming Medal, Dr. Toyoda elaborated:
“…Dr. Deming came to Japan following World War II in order to teach industry leaders
methods of statistical quality control, as well as to impart the significance of quality
control in management and his overall management philosophy. He was an invaluable
teacher…, playing an indispensable role in the development and revitalization of post-
war Japan.

Industrialists as well as academics earnestly began to study and implement Dr. Deming’s
theories and philosophy. Dr. Deming soon became widely known not only as a brilliant
theorist, but also as a kind and modest man. In 1951, the Deming Prize was founded in
order to promote the widespread practice of quality control based on Dr. Deming’s
philosophy.
We at Toyota Motor Corporation introduced TQC in 1961, and in 1965 were awarded the
Deming Application Prize…. As we continued to implement Dr. Deming’s teachings, we
were able to both raise the level of quality of our products as well as enhance our operations
on the corporate level. I believe that TMC today is a result of our continued efforts to
implement positive change in pursuit of the Deming Prize…
Now, we are faced with rapid global restructuring of both society and business. In the
midst of these overwhelming changes, corporations faced with the challenge of providing
value to a wide range of shareholders have begun to focus on quality innovations such as
completely customer-oriented management practices, environmental preservation, and
the upholding of corporate ethics.
Source: http://www.managementwisdom.com/weddechofqua.html

LOVELY PROFESSIONAL UNIVERSITY 15