workprocessstatisticsfallacyWhat is the Red Bead Experiment?
What is the Red Bead Experiment? maaw.info
The red bead experiment is deceptively simple because it provides a powerful message that is difficult for many to grasp. In summary, the misconception that workers can be meaningfully ranked is based on two faulty assumptions. The first assumption is that each worker can control his or her performance. Deming (1986, 315) estimated that 94 percent of the variation in any system is attributable to the system, not to the people working in the system. The second assumption is that any system variation will be equally distributed across workers. Deming (1986, 353) taught that there is no basis for this assumption in real life experiences.