May 27, 2015
Read more about Dr. Deming's work in his books, Out of the Crisis and The New Economics.
This week's Podcast features Louis Altazan, President of AGCO Automotive Corporation in Baton Rouge, Louisiana. Louis discusses his introduction to Dr. Deming and his philosophies, his "aha" moment, and the long-term thinking and trust that must be established to succeed.
Louis starts with a brief introduction of AGCO, and his feeling that the automotive industry could be doing better. After toiling for 10 years with various philosophies, it was the 1980 NBC documentary "If Japan Can, Why Can't We" that hit home with him. He picked up the phone and called Dr. Deming. And as they say "the rest is history."
Louis began implementing Deming's 14 points right away. His biggest "aha" moment was that "I was the problem." Once he realized this, he called a meeting to apologize and things started to get better right away. Louis removed everyone from the "flat rate" pay system and put them on salary. This helped his staff change their focus from short-term thinking and profits to long-term thinking and trust.
Louis warns that you can't apply some part of Dr. Deming's philosophy and not others - that "it's a cohesive system that all works together." Done this way you will start seeing improvement almost immediately, but the real benefits will be felt about 20 years down the road.