W. Edwards Deming developed a System of Profound Knowledge. His knowledge system consists of four interrelated parts: (1) Theory of Optimization; (2) Theory of Variation; (3) Theory of Knowledge; and (4) Theory of Psychology. Which part explained that experience alone does not establish a theory?
Explanation
Answer: B - W. Edwards Deming developed a System of Profound Knowledge. The Theory of Knowledge explained that experience alone does not establish a theory. His knowledge system consists of four interrelated parts: (1) Theory of Optimization; (2) Theory of Variation; (3) Theory of Knowledge; and (4) Theory of Psychology. In the theory of optimization, the objective of an organization is the optimization of the total system. In the theory of variation, Deming's philosophy focuses on improving the uncertainty and variability in design and manufacturing processes. In the theory of knowledge, Deming emphasized that knowledge is not possible without theory. He says copying a best practice without understanding the theory behind it could be devastating for a company. In the theory of psychology, Deming explained that psychology helps to understand people, interactions between people and circumstances, and interactions between leaders and employees in a system of management.
