W. Edwards Deming, the late management consultant, used to indulge in a bit of theatrics when discussing manufacturing processes with industrial executives. On one occasion, he listened to executives explain the circumstances of a series of industrial fires and how they likely were isolated incidents. Having examined the pattern of fires, however, Deming declared that it was a statistical certainty that fires would continue at the same rate indefinitely, because problems with the way in which the plant was managed practically ensured that outcome. In fact, Deming said, the plant was a more reliable producer of fires than of good products — statistically speaking, that is. W. Edwards Deming, “Out of the Crisis” 324 (1982).
Deming applied the same statistical approach and theatricality to industrial safety issues, product quality, morale and a host of ills. Beneath his bombast was an acute awareness that recurring outcomes are the product of management processes, and that erratic outcomes derive from the lack of rigorous process. Deming came to his insights from a background that is unusual today, combining strong statistical reasoning with a “theory of knowledge” epistemology, which studies how we know what we know.
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