The System of Profound Knowledge

The system of profound knowledge is made up of four areas:

(1) appreciation for a system,
(2) knowledge about variation,
(3) theory of knowledge, and
(4) psychology.

Appreciation of a system
A system is a set of functions or activities within an organization that work together for the aim of the organization.
A production system is composed of many smaller, interacting subsystems.
These subsystems are linked together as internal customers and suppliers.
The components of any system must work together if the system is to be effective.
Management's job is to optimize the system.
Sub-optimization results in losses to everybody in the system.
All the people who work within a system can contribute to improvement, which will enhance their joy in work.

Knowledge about variation
The second part of Profound Knowledge is a basic understanding of statistical theory and variation.
We see variation everywhere & variation exists in production processes.
Actually, a production process contains many sources of variation

Causes of Variation
Product manufacturing was measured and where variations occurred in manufacture the cause was traced back to either (1) special causes or (2) common causes.
(1) Special causes are easily identifiable and solvable at a local level - for example a change in operator, shift of procedure.
(2) A common cause is due to the design or process of the system and is the responsibility of management to solve.


Proportion of Variation
Common causes of variation generally account for about 80 to 90 percent of the observed variation in a production process.
The remaining 10 to 20 percent are the result of special causes of variation, often called assignable causes.

Theory of knowledge
The third part of profound knowledge is the theory of knowledge, the branch of philosophy concerned with the nature and scope of knowledge, its presupposition and basis, and the general reliability of claims to knowledge
Deming emphasized that knowledge is not possible without theory, and experience alone does not establish a theory.
Any rational plan, however simple, requires prediction concerning conditions, behavior, and comparison of performance.
A statement devoid of prediction or explanation of past events conveys no knowledge.
Experience only describes-it cannot be tested or validated-and alone is no help in management.
Theory , on the other hand, shows a cause and effect relationship that can be used for prediction.


PSYCHOLOGY
Psychology helps us understand people,interactions between people and circumstances,
interactions between leaders and employees, and any system of management.
Much of Deming's philosophy is based on understanding human behavior and treating people fairly.
People differ from one another.
A leader must be aware of these differences and work toward optimizing everybody's abilities and preferences.Most managers operate under the assumption that all people are alike.
However, a true leader understands that people learn in different ways and at different speeds, and manages the system accordingly.


Concluding remark on the system of profound knowledge
A leader of transformation, and managers involved, need to learn the psychology of individuals, the psychology of a group, the psychology of society, and the psychology of change.

Some understanding of variation
Including appreciation of a stable system, and some understanding of special causes and common causes of variation, are essential for management of a system, including management of people.