The Red Beads Experiment, devised by Dr. W. Edwards Deming, illustrates systemic issues within industrial processes through a simulation involving audience members playing roles in a fictional factory. The experiment highlights how defects (red beads) arise from the system itself rather than individual worker performance, emphasizing the importance of systemic improvement over merely inspecting finished products. By assigning roles such as willing workers and inspectors, it demonstrates that quality cannot be improved merely by identifying defects after production. Instead, the experiment advocates for integrating quality into the production process from the start. Dr. Deming's teachings, including his System of Profound Knowledge, stress the need for management to support collaborative efforts between inspectors and workers to reduce defects at their source, thus building quality into the process rather than inspecting it in after completion. This approach aligns with principles of lean and agile methodologies, and underscores that effective quality management requires a holistic view of systems, knowledge of variation, understanding of human psychology, and a proactive theory of knowledge.