The Red Bead Experiment, developed by Dr. W. Edwards Deming, remains one of the most vivid and practical demonstrations of systemic thinking in quality management. At its core, the experiment is far more than a simulation—it is a live-action illustration of Deming’s “System of Profound Knowledge,” his foundational framework for transformative improvement in organizations. In this article, we will unpack the four components of Deming’s System of Profound Knowledge, show how each is made accessible and relevant through the Red Bead Experiment, and offer actionable insights for continuous improvement practitioners and quality control professionals.