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Deming Chain Reaction In Cost Reduction Program

Posted in Lean Six Sigma

Deming's Chain Reaction
Dr. William Edward Deming, a professor of quality management from the United States put forward a reaction known as Deming’s Chain Reaction. According to Deming, any improvements made by the industry would make the activity of system processes in the industry getting better and better.

Quality improvement activities with the overall industry will experience an increase in productivity due to waste and inefficiency is reduced slowly. Customers will benefit from increased productivity by getting more and more products are qualified at the level of cost per unit is declining constantly. If the customer has acknowledged the high quality, trust will be established and released a difficult partner. In addition it will tell customers at competitive prices and quality products to someone else / another prospect, so the demand for products will increase. This will ultimately expand the market share.

If the industry remains consistent in its business, it will increase employment opportunities and improve the return on investment