Deming's System of Profound Knowledge

by Steve Horn

What is it?

The System of Profound Knowledge helps us to see how complex organisations work. When we understand this we can then figure out what we have to do to get long-term improvements in quality and efficiency. Ultimately, organisations led by people who are guided by the System of Profound Knowledge are likely to be much more efficient and successful than organisations which continue with the prevailing style of management.

Why is it so important?

Because everything nowadays comes from organisations. To get more of what we want the organisations involved in supplying it must work efficiently.

For example, when we are ill we need two things:

The good doctor is not enough. For a start there must be an adequate appointments system. The doctor will need supplies of sterile equipment. Lab results must be accurate and quick. The treatments prescribed must be available and of good quality. And it has to be provided at a cost we can afford. All this needs good organisations - not just good individuals - to deliver them.

In the commercial world firms have to keep producing better and better products at lower cost. This is the only way to stay in business, create jobs and provide financial returns to investors.

The System of Profound Knowledge

The System of Profound Knowledge comes from W. Edwards Deming. Dr Deming said that hard work is not enough. What is needed is a transformation of the prevailing style of management.

The System of Profound Knowledge has four parts. Click on the links to read about them:

  1. Appreciation for a system
  2. Knowledge about variation
  3. Theory of knowledge
  4. Psychology

Deming's "Profound Knowledge" is a system. This means that the four parts interact with one another. Real transformation will only start when there has been some progress in all parts.

For example, these days you can see Shewhart control charts in many manufacturing operations in Europe and America. But most of these companies get very little benefit from the charts because they do not know how to act as part of a system. The only way to get efficient stable processes is to have full co-operation across all departments and outside suppliers to control the variation. To get this co-operation managers need to understand enough psychology to know how to provide the leadership which will focus everyone's attention on getting the best results for the system as a whole.

A lot of mistakes are made during the 'Study' phase of the Plan Do Study Act cycle because results are misinterpreted due to a lack of understanding of the nature of variation.

Everything is Process

The processes that should be continuously improved are not confined to the factory floor or school classroom. Everything should be open to improvement. This is especially true of the broad policies which come from senior management.

Taking just one example, think about the large number of hours that supervisors spend on staff appraisal in most large companies. Maybe the huge costs involved in this exercise are justified, but maybe the same outcome (or better) could be achieved with a less formal system. We will never know until someone applies the Plan Do Study Act cycle - with experiments - to staff appraisal.

Fourteen points for Management

Deming's Fourteen points for Management give guidance on good management practice. Some of these points will not make much sense to people who are tied up in the current management philosophy. They make a lot more sense with some understanding of the System of Profound Knowledge.

The Fourteen points for Management

Learn More

This document is intended to be a short introduction to the System of Profound Knowledge. To find out more, a good place to start is the Deming Electronic Network web site. This is a focal point for sharing resources, discussions, learning, and research on the Deming Philosophy.

Here are some recommended books:

The New Economics by W. Edwards Deming is his explanation of the System of Profound Knowledge and the new management philosophy. It is published by the Massachusetts Institute of Technology. ISBN 0-911379-05-3

Fourth Generation Management by Brian L. Joiner is an excellent combination of theory and experience in the application of Deming's ideas. Published by McGraw-Hill. ISBN 0-07-032715-7

The Fifth Discipline by Peter M. Senge deals in depth with the subject of 'System Thinking'. Published by Century Buisness ISBN 0-7126-5687-1

Understanding Statistical Process Control by Donald J. Wheeler and David S. Chambers is a good textbook on the subject. Published by SPC Press Inc. Knoxville, Tennessee. ISBN 0-945320-13-2

The Team Handbook by Peter R. Scholtes is a practical step-by-step guide on how to use project teams to improve quality. Published by Joiner Associates Inc. ISBN 0-9622264-0-8

The Deming Dimension by Dr Henry R. Neave is good general book and is not too technical. It is also published by the SPC Press. ISBN 0-945320-08-6

Feedback Please

The aim of this document

I will be very grateful for any comments. Please e-mail me at stevehornsc@btopenworld.com

Acknowledgements

Thanks to everyone who has made suggestions to improve this document. Please do not hesitate to contact me again.

Steve Horn - Home Page Introduction to SPK
by Steve Horn
Last Update: 3 September 2001