In the sense of Total Quality Control, a process is "under control" or "under full control" when the output of the process conforms to a statistical measure, such as every data point falling within three standard deviations of the mean. To a first approximation, anything outside of that range implies a "special cause of variation," as opposed to a "common cause" of variation. In this case, think of a special cause as something like a layoff at the major industry in town, causing something like stress at home or missed meals. Those would affect the performance of students, outside of the "common causes" of the usual variations in ability, interest, temperament, and so on.
So, no, the answer is not to throw away the experience and insight embodied in the faculty. The answer is to try to understand and remove (or compensate for) the special causes of variation in the population of students, as well as the special causes of variation within the faculty. One of the other things Deming said that I find very insightful is that the interesting thing about geography is not where the borders are, but why the borders are where they are. Applied here, the interesting thing about the variation in grades or test scores is not the variation itself, but why the variation is there, and why is it shaped the way it is. These 'why' questions only have answers that are close to the data and contingent upon the systems, in contrast to blanket incentives that try to sweep an understanding of the system under the rug of punishment and reward.