Deming's Quality Chain Reaction.

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Deming's Quality Chain reaction

 

This Diagram can be used or just MENTIONED in subjective questions & can result in higher score .

 

Deming preached quality to Japanese companies and got their buy-in what what he explained as Quality Chain reaction. Companies in USA could not visualize this and few rejected his philosophy. Japanese embraced this and this is what created a Quality revolution and turnaround of Japanese industry.

Here is how it works:

If you focus on quality and improve the quality, customer satisfaction goes up. That results in increased market share and companies can lower prices. This is what is External to organization and viewed by the world.

Internally if Quality goes up , productivity increases. this is because REWORK is reduced. This point is what most could not visualize or accept easily. As productivity increases the costs goes down.

With reduced costs and reduced prices the Profits go up. This principle was implemented succesfully in many Japanese organization and later accepted by MNCs Globally.