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Deming was a statistician Not a "Management Guru", his movement into management had to do with the fact he observed during WWII that management was the single biggest problem in American Industry. What he notice was that Management confused hiring the "Best and the Brightest" with improving quality. Deming pointed out that the best any company can do is the best its weakest input can do. Thus if you have 1000 "A" students and 1 "D" Students (and you need 1001 workers to operate the company) the best quality your company can ever have is the level of the D student. This is what the Japanese took to heart in the 1950s, instead of producing the "best" they looked at their worse input and improved that. This slowly improved their overall quality.
The Second Concept Deming pushing is making sure that any difference between two outputs or inputs (including people) are REAL not statistician error. For example what is the REAL difference between an "A" Student and a "D" Student? Statistically most tests used by most schools have an error rate that exceeds the 99% confidence level i.e. you can NOT say with 99% confidence that a "A" on a test is really better than a "D" on the test, the difference may be statistical error NOT a real difference. i.e. the difference is the produce of CHANCE not reality. Civil Service tests are the worse here, you can have people who took the test all score within 99% confidence and than the Civil Service commission will rate those same people based on their scores, even through statistically they are all equal (i.e. testee #1, scored 100, testee #2, scored 99, Testee #3 scored 98, when the error rate is plus of minus 5, i.e. the reason any one of them scored 100, 99 or 98 is statistical error NOT any real difference between them).
This second concept is why he used pass/fail. His policy is you either learned what he was teaching or you did not. He could NOT, with any scientific certainty, Rate one of his student better than the others as to how well their learned their lesson. Educationally this is not liked it means there is no real difference between an "A" Student and a "D" student and to say there is, is NOT supported by Statistics.
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