Product Description

"Long-term commitment to new learning and new philosophy is required of any management that seeks transformation. The timid and the fainthearted, and the people that expect quick results, are doomed to disappointment."

According to W. Edwards Deming, American companies require nothing less than a transformation of management style and of governmental relations with industry. In Out of the Crisis, originally published in 1986, Deming offers a theory of management based on his famous 14 Points for Management. Management's failure to plan for the future, he claims, brings about loss of market, which brings about loss of jobs. Management must be judged not only by the quarterly dividend, but by innovative plans to stay in business, protect investment, ensure future dividends, and provide more jobs through improved product and service. In simple, direct language, he explains the principles of management transformation and how to apply them.

previously published by MIT-CAES

Product Details

• Amazon Sales Rank: #15718 in Books
• Published on: 2000-08-11
• Original language: English
• Number of items: 1
• Binding: Paperback
• 507 pages

About the Author
W. Edwards Deming (1900-1993) was an international consultant in quality and productivity management. In 1987 President Ronald Reagan awarded him the National Medal of Technology.

Customer Reviews

A quality classic
This is a classic in the world of quality assurance. It is fair to call Deming the father, godfather, grandfather and preacher of the quality movement. This book, written in 1986 after he achieved international fame for helping improve quality in Japan, captures the spirit and ideas that spawned a revolution.

The book captures many of the key points in Deming's philosophy:
1) Creating metrics based approaches to management, without falling into a quota system.
2) Differentiating between problems caused by the system and problems outside of the system.
3) Focusing on both doing things correctly, and identifying the right tasks to approach.
4) Introducing a Plan, Do, Check, Act cycle of continuous improvement.

If you look at this list, the book presents a blueprint for many of the so called management revolutions of the subsequent 15 years: Excellence, Re-engineering, Process Management, Systems Thinking. This book really is both a trend setter as well as highly important body of theory. The theory is relevant today, as many management problems today can be addressed by his 14 points of management. (Example: A reliance on inspection is bad - build quality into the process. This is highly relevant to software construction today.)

So are there any knocks?
1) You're left with many imperatives, but sometimes without positive prescriptions. For example: If you don't do annual performance reviews, what do you replace it with to determine who gets promoted?
2) The book can be dry and hard to follow. Sometimes it is written as notes pieced together.
3) Many of the companies that Deming held up as models have fallen on tougher times. It seems that today Quality alone is not enough.

Having said this, it should be required reading for any manager. The theory is good, and the book should spark your thinking.

"The transformation can only be accomplished by man"
W.Edwards Deming is one of the leading thinkers of modern management as a key originator of total quality management. D.Wren and R.Greenwood write, in their 'Management Innovators,' "Deming was critical of U.S. management, perhaps because he had been ignored far so long, but more probably because U.S. firms were losing market share to more quality-oriented competitors. He blamed U.S. management because the wealth of a nation did not depend on its natural resources but on its people, management, and goverment: 'The probem is where to find good management. It would be a mistake to export American management to a friendly country.' "

In this context, in Chapter 2, in order to transform American industry, Deming presents the 14 points that constitute his theory of management:

1. Create constancy of purpose toward improvement of product and service, with aim to become competitive and to stay in business, and to provide jobs.

2. Adopt new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.

3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place.

4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.

5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.

6. Institute training on the job.

7. Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers.

8. Drive out fear, so that everyone may work effectively for the company.

9. Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service.

10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.

11. Eliminate work standards (quotas) on the factory floor. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.

12. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective.

13. Institute a vigorous program of education and self-improvement.

14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.

According to Deming application of these points will transform style of management. Unfortunately, some deadly diseases stand in the way of transformation. Thus, in Chapter 3, he identifies seven deadly diseases that cause the decline of American industry:

1. Lack of constancy of purpose to plan product and service that will have a market and keep the company in business, and provide jobs.

2. Emphasis on short-term profits.

3. Evaluation of performance, merit rating, or annual review.

4. Mobility of management, job hopping.

5. Management by use only of visible figures, with little or no consideration of figures that are unknown or unknowable.

6. Excessive medical costs.

7. Excessive costs of liability, swelled by lawyers that work on contigency fees.

I highly recommend this business classic for all managers.

A Classic on Quality

Edwards Deming is one of the most outstanding gurus of the quality movement of the 20th century. The book "Out of the Crisis" is a classic in the quality assurance field written by an author who achieved fame after helping to improve quality in Japan, thus helping that country to be an outstanding success story.

This outstanding book would benefit managers of any organization who need to learn how to achieve success by focusing on producing high quality products and services that the customer wants. The book provides readers with knowledge on the meaning of "quality' and the use of some essential quality tools in their organisations. Deming's famous 14 points provides essential guidance and directions to any organisation to ensure that it is efficiently and effectively run.

This is a well written book, which was published 20 years ago, that comprehensively covers the subject of quality with good illustrations and examples that help to clarify issues and concepts.