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Deming Chain Case Study

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Dr. W. Edwards Deming believed that better quality would lead to higher productivity and higher productivity would result in a sustainable competitive advantage.

The Deming Chain reaction is about the top management leading the organization to improve quality and focus on continuous improvements in service and product quality by minimizing uncertainty and variability in service, manufacturing and design process. Improving quality decreases cost because fewer and reduced mistakes are made in producing services and merchandise. This would result in faster and higher volume outputs because of more honest utilization of machine-time and materials. Therefore, productivity improves and the competitive pricing of the products and services will extend the market share. The end effect is
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The focus of the purchasing department has to shift from lowest initial cost of material purchased to lowest total cost. It is also necessary to build a long-term relationship between a purchaser and a supplier for the best economy. There could also be a bear trap in purchasing merchandise and services based on price tag. A customer could purchase from the supplier which offered the lowest bid, but later realized that there might be vital changes required that would increase the cost of the items (Deming, 1986).

5) Improve the system of production and service constantly.
There is a need for continual improvement and the organization should always try to understand the needs of the customer. Quality must be built in the design stage. Improvements in the processes may include better allocation of human effort and study of records. Continual work with vendors is also an improvement in manufacturing (Deming, 1986).

6) To introduce and establish training on the job.
Training is required for the management and the new employees to learn about the company (Deming, 1986).

7) To introduce and establish
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