TQM & Rising Health Care Costs
During the 1950s, Deming promised the Japanese that their commitment to quality through TQM would not only restore their local economy, it would equip them with the means to compete globally. The Japanese followed Deming's advice, and their subsequent success made them ardent supporters both of TQM and Deming. In Japan, the most coveted annual price for industrial excellence is called the Deming Award. In 1960, Deming received The Second Order Medal of the Sacred Treasurer, the highest award the Japanese bestow on foreigners.
Deming was rediscovered by the American public in 1980 after he was interviewed for a television documentary. The documentary focused on the shortcomings of U.S. manufacturing firms in comparison to their Japanese counterparts. The documentary generated an avalanche of interest in TQM and Deming became a popular guest lecturer and seminar speaker. Deming devised the following list of criteria that are deadly to a company's health; ironically, one of the deadly diseases is excessive medical costs:
Deming's Seven Deadly Diseases
3.Evaluation by performance, merit rating, or annual review of performance
5.Running a company on visible figures alone
7.Excessive costs of warranty, fueled by lawyers that wo