Champions of Sustainability: W. Edwards Deming

Sustainability has become both a strategic and operational objective for manufacturers globally. Sustainable business practices are not only good for the environment, they can increase company viability in the long term through growth, global competitiveness and customer satisfaction. We’ll take a look back at the original sustainability advocates who, over the years, have become champions in their own right.

Environmentalist, Statistician or Quality Management Expert – What’s in a Label?

When you think of people that embody sustainability, you probably think of environmentalists like John Muir, Rachel Carson, Henry David Thoreau, or maybe Al Gore if your first instinct was to choose someone more contemporary. But does one have to be thought of as an environmentalist to truly champion sustainability? Or could it be that the outcome of your actions alone can qualify you as such a champion? Truth be told, environmentalism probably wasn’t top of mind for W. Edwards Deming. But, it could be argued that no one has done more for sustainability in manufacturing than Deming, the father of quality control and management. And for that reason, Deming qualifies as a champion of sustainability.  

Early Life and Career Accomplishments

Born in 1900 in Sioux City, Iowa, Deming graduated with BS and MS degrees from the University of Wyoming and the University of Colorado respectively, and a PhD from Yale. He went on to become a statistics professor at New York University (NYU) and business school professor at Columbia University. 

Given his strong, even revered background in statistics, he was brought in by General Douglas MacArthur during the Allies’ occupation of post-war Japan to assist with the 1951 Japanese census. It was during this time that Deming was able to share his deep knowledge of statistical control and quality management with Japanese manufacturers to help rebuild Japan’s then-decimated economy. He was so impactful, in fact, that Japan awarded Deming the Order of the Sacred Treasure in 1960 for his help in bringing to fruition Japan’s “industrial rebirth.”

Deming’s 14 Points for Total Quality Management (TQM)

Core to Deming’s philosophy — and his contribution to sustainability — were Deming’s 14 points for total quality management (TQM). Deming first introduced these points in his preeminent book, Out of the Crisis, which was originally published in 1982. His 14 points are summarized below:

1. Create constancy of purpose for improving products and services.
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier.
5. Improve constantly and forever every process for planning, production and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets for the workforce.
11. Eliminate numerical quotas for the workforce and numerical goals for management.
12. Remove barriers that rob people of pride of workmanship and eliminate the annual rating or merit system.
13. Institute a vigorous program of education and self-improvement for everyone.
14. Put everybody in the company to work accomplishing the transformation.

How Deming’s 14 Points Impact Sustainability

While Deming’s 14 points for TQM do make sense in isolation, examining them in the context of an industry’s business operations really brings them to life. Take the American auto industry in the second half of the 20th century, for example. Deming’s TQM teachings were so consequential to automotive that they began making a discernible impact soon after the implementation of his core concepts. 

After the Second World War, Ford began production of transmissions for an upcoming model both in the United States and Japan. Despite the parts being built to the same specifications, Ford customers soon began requesting the cars that came equipped with transmissions built in Japan. Why? Because the Japanese transmission-equipped cars ran more smoothly due to having transmissions that were nearly identical to each other. Meanwhile, the American-built transmissions showed more variance and, as a result, were not as smooth and were more susceptible to failure.

But think of the consequences of this anecdote. A better built transmission from the get-go meant a longer service life. It meant less repairs. It meant smaller chances of being recalled. It meant less physical material was likely spent to keep that part running properly over the years. Multiply this effect by billions of parts produced over decades and Deming’s impact on sustainability becomes clear. Deming’s teachings are accepted as industry best practices today, but without him, manufacturing would not be nearly as sustainable. 

Deming and the Tesla Model Y

Tenet number five of Deming’s philosophy stresses the importance of continuous improvement. Without the emphasis today’s manufacturers place on this tenet, the world would be much less sustainable. Luckily, excellence in manufacturing and excellence in sustainability are highly synergistic—the former is focused on eliminating non-value added waste to produce exactly what the customer wants when they want it and the latter is focused on minimizing the use of natural resources and reducing our carbon footprint. 

For a modern manufacturer like Tesla, these two goals are top of mind. Take the Model Y (below), for example. Despite being based on the same general architecture of the Model 3 that preceded it and even sharing 75% of details, recent teardowns have shown that its build quality far surpasses the quality of earlier-built Model 3s.

Even Sandy Munro, an advisor to some of the world’s top manufacturing executives on implementing cultural change/integrated product development strategies and an ardent critic of Model 3, now claims that, “Tesla’s strategy is that they see their mistakes and correct them immediately, like a running change and keep going continuously. The Model Y should become a wake up call for all automakers, no matter what they produce.” Here are some ways in which Deming’s tenet of continuous improvement have impacted Tesla and their new Model Y:

• Model Y uses just 700 meters of wiring while Model 3 uses 1.5 kilometers
• Model Y’s rear subframe construction uses significantly fewer parts than Model 3’s
• Model Y’s heat pump is 300% more efficient than Model 3’s
• Model Y’s battery has 50% fewer temperature sensors and simplified covers/fasteners

However, often  today, we see some of Deming’s most centric ideals being mismanaged. For example, manufacturers often publicize that they’re running a “lean manufacturing operation” (a concept that came after Deming’s 14 points but shares a lot in common) focused on minimizing things like staffing. But at what cost? Manufacturers that try to cut too many corners often end up with stressed supply chains and decreased overall efficiency. On the surface, costs may go down, but I believe Deming would argue that these manufacturers are not better off in the long run. 

A True Champion of Sustainability 

Even later in life, Deming continued to advise businesses to promote operational excellence. No project was too big or too small for Deming. In a two-year span towards the end of his life, Deming worked with both a tiny rubber manufacturer in Ohio and a large, public semiconductor distributor. Deming died in 1993 at the age of 93 and remains one of history’s most consequential champions of sustainability.