Chapter 2 Case Study

The Procter & Gamble Company is an American multinational consumer goods corporation. The
company's product portfolio comprises conditioners, shampoo, male and female blades and
razors, toothbrushes, toothpaste, dish-washing liquids, detergents, surface cleaners and air
fresheners. P&G was facing challenges with product defects, low customer satisfaction, and high
production costs. So, the company’s management decided to implement some of Deming’s 14
points to address these issues.
First, the P&G’s management established a clear and long-term vision for quality improvement,
emphasizing the importance of continuous improvement in all aspects of the organization. Also,
the company reduced its reliance on inspection as primary means of quality control and instead
focused on building quality into the manufacturing process itself. Moreover, when selecting
suppliers, P&G started considering factors beyond price, such as quality and long-term value.
Besides, P&G started to invest in training programs to enhance employees’ skills and knowledge,
ensuring they were equipped to meet quality standards and contribute to process improvement.
The management also provided strong leadership by actively promoting and supporting quality
improvement throughout the organization. The company also encouraged collaboration between
departments, fostering a culture of teamwork and shared responsibility for quality.
Through the implementation of some of Deming’s 14 points, P&G was able to address the issues
and its commitment to quality and continuous improvement became ingrained in its culture,
leading to long-term success and competitiveness in the market.

1. According to the scenario, which of Deming’s 14 points were implemented?

2. Suggest and explain 3 more points that would also help in P&G’s improvement?
3. How did the application of Deming’s points for management benefit the company?