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Out of the Crisis

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Deming offers a theory of management based on his famous 14 Points for Management. "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 th Deming offers a theory of management based on his famous 14 Points for Management. "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 1982, 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


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Deming offers a theory of management based on his famous 14 Points for Management. "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 th Deming offers a theory of management based on his famous 14 Points for Management. "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 1982, 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

30 review for Out of the Crisis

  1. 5 out of 5

    David

    I read W. Edwards Deming when I had a hiatus from Saudi Aramco and worked for Bechtel in Washington, DC, for 4 years, returning to Aramco in Dhahran in 1991. Reading Deming showed me how to be a better manager without conforming to the American de rigueur process of obtaining the MBA, which I've always detested as a poor learning platform for real leadership. (Leadership can't be taught; rather, it must be learned.) Deming brought crippled Japanese manufacturing back into the modern age. Typical I read W. Edwards Deming when I had a hiatus from Saudi Aramco and worked for Bechtel in Washington, DC, for 4 years, returning to Aramco in Dhahran in 1991. Reading Deming showed me how to be a better manager without conforming to the American de rigueur process of obtaining the MBA, which I've always detested as a poor learning platform for real leadership. (Leadership can't be taught; rather, it must be learned.) Deming brought crippled Japanese manufacturing back into the modern age. Typical of prophets, he was not heeded much in his home country-- America, When the Japanese heard him lecture as one of General Douglas MacArthur's staff they immediately took to his methods of management which led to processes such as TQM--Total Quality Management, and Japan developed into one of the world's leaders of modern manufacturing. If one is studying leadership, they must in my opinion, include a good dose of Deming.

  2. 5 out of 5

    Lamec Mariita

    This book is a must read if you want to be a great manager. It's easy to read and the author's style is interesting. Deming's insights into business process is timeless. Deming best summarizes the purpose of the book: "This book teaches the transformation that is required for survival, a transformation that can only be accomplished by man. A company can not buy its way into quality - it must be led into quality by top management. A theory of management now exists. Never again may anyone say that This book is a must read if you want to be a great manager. It's easy to read and the author's style is interesting. Deming's insights into business process is timeless. Deming best summarizes the purpose of the book: "This book teaches the transformation that is required for survival, a transformation that can only be accomplished by man. A company can not buy its way into quality - it must be led into quality by top management. A theory of management now exists. Never again may anyone say that there is nothing new in management to teach.". It was written in 1982 but it's definitely still useful.

  3. 4 out of 5

    Bob Wallner

    First let me start by saying that Dr Deming is an amazing man. I really took my time reading this book to ensure that I understood it everything he talked about. The big take away I have from this book is not a 14 principles, not the deadly diseases and not the obstacles. The biggest takeaway, for me at least, is how weak I am at applying statistical methods to controlling quality. So much of what he talked about in the second half of the book was over my head. I know now that I need to incorpora First let me start by saying that Dr Deming is an amazing man. I really took my time reading this book to ensure that I understood it everything he talked about. The big take away I have from this book is not a 14 principles, not the deadly diseases and not the obstacles. The biggest takeaway, for me at least, is how weak I am at applying statistical methods to controlling quality. So much of what he talked about in the second half of the book was over my head. I know now that I need to incorporate some accelerated statistical learning into my future. I did enjoy this book and my guess is after furthering my understanding of statistics, this will be come a 5 star book.

  4. 5 out of 5

    Peter

    As with many others... great lifetime of achievement and ideas, and a true hero of mine... brought down by terrible writing. Wikipedia is a better source for learning Deming philosophy. Of all the content of the book, I'd like to highlight that Deming gives much credit to Walter Shewhart for being the true father of statistical analysis of process. As for the style and writing, the book is such a mess that you could spend 3 years researching a doctoral thesis on its flaws, but in 30 minutes this As with many others... great lifetime of achievement and ideas, and a true hero of mine... brought down by terrible writing. Wikipedia is a better source for learning Deming philosophy. Of all the content of the book, I'd like to highlight that Deming gives much credit to Walter Shewhart for being the true father of statistical analysis of process. As for the style and writing, the book is such a mess that you could spend 3 years researching a doctoral thesis on its flaws, but in 30 minutes this is what I've got... Most of the content in the book is repetitive and non-specific, despite the use of language that attempts to make it sound specific.. The chapters are not well organized, and information related to certain topics comes and goes. If you could call it information at all. The ratio of rhetorical questions to statements is extremely high. There is a dizzying amount of section outlining however the method is haphazard and jumps around from numbered lists to bold section headers and inline emphasis and it is easy to lose track of what is being enumerated or delineated. For some reason this really bothered me. One perfect example, opening to a random page deep in the book is this short paragraph in Ch 11: "What characteristic or characteristics are important? What figures are important? What figures should one study by use of a control chart or by any other method? The answer lies in the subject matter (engineering, chemistry, psychology, knowledge of the process, knowledge of the materials, etc.), assisted by statistical theory." So... a bunch of redundant questions, followed by an answer which was already given in the first few pages of the book, and repeated here for no particular reason at all. Oh, well you think, probably the next paragraph gets into the meat of it? Nope. The previous and next paragraphs are on a different topic. And what is this answer really? Deming has mentioned that when gathering statistics, figuring out which numbers that have been gathered are important is important, and then tautologically tells us that knowledge and statistics will help us analyze numbers. And finally, you could argue that the entire books is about this topic, so why does he put this random paragraph summarizing his book in the middle of some random chapter? ARGGGGGHHHH.

  5. 5 out of 5

    Henrik Berglund Berglund

    Of coure a classic with groundbreaking ideas! So I guess I could have given it five stars also. I decided to not rate the book in a historical perspective though, but just estimate the value I got from it today The ideas herein have been picked up by others, and become part of what lean/agile people know already. So, I did not really change my mind on anything after reading this. Also all the examples are from production and focused on getting processes under statistical control. The work I'm doi Of coure a classic with groundbreaking ideas! So I guess I could have given it five stars also. I decided to not rate the book in a historical perspective though, but just estimate the value I got from it today The ideas herein have been picked up by others, and become part of what lean/agile people know already. So, I did not really change my mind on anything after reading this. Also all the examples are from production and focused on getting processes under statistical control. The work I'm doing is with knowledge creating companies. Quite a different problem. All the same 13 principles can be applied to that also, but other books offer more up to date thinking of businesses operating in more and more complex environments. Also, I percepive it mostly as a collection of notes, not really a coherent book.

  6. 5 out of 5

    Aimee

    Deming's claim to fame was teaching the Japanese about quality improvement principles in manufacturing, which Japanese companies then applied and consequently became world leaders in excellence. Most of what Deming puts forth is intuitive: management must have an understanding of what each job entails (best if they actually have done the work), the ability to focus on the "long run" for their organizations (not just making quarterly profits), and instill a committment to excellence. Unfortunatel Deming's claim to fame was teaching the Japanese about quality improvement principles in manufacturing, which Japanese companies then applied and consequently became world leaders in excellence. Most of what Deming puts forth is intuitive: management must have an understanding of what each job entails (best if they actually have done the work), the ability to focus on the "long run" for their organizations (not just making quarterly profits), and instill a committment to excellence. Unfortunately, common sense is not a common commodity regardless of ones rank, which is why Deming is seen as a quality revolutionary. Deming can be dry at times, and some things are more challenging to translate to the service industry, but it's a worthy read.

  7. 4 out of 5

    Jenny Truong

    One of the most helpful perspectives/books I've read on using data to improve execution and business performance. While it may be a bit long and seem repetitive, the book can be digested in chapters as one does a textbook. Highly recommend to those who work in operations roles or anyone seeking a perspective on the barriers that get in the way of excellence in execution.

  8. 5 out of 5

    Chet Brandon

    This is obviously a classic. I picked up a used copy for pennies and have been re-reading his work. I am particularly interested in the origins of his Plan, Do, Check, Act theory. Just a great work that never ages.

  9. 5 out of 5

    JB

    This book is to management what The Republic is to philosophy.

  10. 4 out of 5

    Chris Cox

    An American classic. This book is packed with information about using statistics to solve quality problems in manufacturing, medicine, and almost all fields of endeavor. I highly recommend this book to engineers, doctors, scientists, and manufacturing workers.

  11. 4 out of 5

    Todd

    This book was included in my book: The 100 Best Business Books of All Time. www.100bestbiz.com This book was included in my book: The 100 Best Business Books of All Time. www.100bestbiz.com

  12. 5 out of 5

    Jurgen Appelo

    Great ideas, terrible writing.

  13. 4 out of 5

    John

    It has taken me many years to be at a point that I could understand this book. This is a superior management text.

  14. 5 out of 5

    Omar Halabieh

    Dr. Deming best summarizes the purpose of the book: "This book teaches the transformation that is required for survival, a transformation that can only be accomplished by man. A company can not buy its way into quality - it must be led into quality by top management. A theory of management now exists. Never again may anyone say that there is nothing new in management to teach." He then proceeds with outlining and subsequently detailing his "14 points for management". These fourteen points, he arg Dr. Deming best summarizes the purpose of the book: "This book teaches the transformation that is required for survival, a transformation that can only be accomplished by man. A company can not buy its way into quality - it must be led into quality by top management. A theory of management now exists. Never again may anyone say that there is nothing new in management to teach." He then proceeds with outlining and subsequently detailing his "14 points for management". These fourteen points, he argues, form the basis of the required transformation of the American industry: " 1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs. 2. Adopt the 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. 11a. Eliminate work standards (quotas) on the factory floor. Substitute leadership. 11b. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership. 12a. 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. 12b. 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 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. " While the book may seem dry at points, particularly if being read from cover to cover, it encompasses numerous gems in management. Particularly as it relates to the overall management of and leadership in quality and its importance to re-gain competitive edge. Below are key excerpts from the book, that I found particularly insightful: 1- "This increase in production led to a new goal. The new goal will create questions and resentment among production workers. Their first thought is that the management is never satisfied. Whatever we do, they ask for more. Here are the fruits of exhortations: 1) Failure to accomplish the goal 2) Increase in variability 3) Increase in proportion defective 4) Increase in costs 5) Demoralization of the work force 6) Disrespect for the management" 2- "The job of management is to replace work standards by knowledgeable and intelligent leadership...Wherever work standards have been thrown out and replaced by leadership, quality and productivity have gone up substantially, and people are happier on the job." 3- "Incidentally, computation of savings from use of a gadget (automation or robotic machinery) ought to take account of total cost, as an economist would define it. In my experience, people are seldom able to come through with figures on total cost." 4- "Quality must be measured by the interaction between three participants: (1) the product itself; (2) the user and how he uses the product, how he installs it, how he takes care of it, what he was led to expect; 3) instructions for use, training of customer and training of repairman, service provided for repairs, availability of parts. The top vertex of the triangle does not by itself determine quality." 5- "There are two types of quality in any system, whether it be banking or manufacturing. The first is quality of design. These are the specific programs and procedures that promise to produce a saleable service or product: in other words, what the customer requires. The second type is quality of production, achievement of results with the quality promised. Quality control works both with the product and with the design of the product. And it is at this point that quality control begins to differ from the traditional system. To find the mistake is not enough. It is necessary to find the cause behind the mistake, and to build a system that minimizes future mistakes." 6- "...Good agreement between independent results of two men would only mean they have a system. It would not mean they are both right. There is no right answer except by methods agreed upon by experts." 7- "Figures on accidents do nothing to reduce the frequency of accidents. The first step in reduction of the frequency of accidents is to determine whether the cause of an accident belongs to the system or to some specific person or set of conditions. Statistical methods provide the only of analysis to serve as a guide to the understanding of accidents and to their reduction."

  15. 4 out of 5

    Dave Neary

    A legend in management techniques using statistical methods. Famous for the 14 principles of management. You can feel the confidence and experience in his reports to clients and his conditions for taking new clients. Nevertheless, the book is repetitive, and at a certain point I didn't feel the return on investment in reading additional chapters was high. Still four stars, a very valuable reference!

  16. 4 out of 5

    Michael Czapla

    I couldn't finish it. Its rather dated now

  17. 5 out of 5

    Bartosz Pranczke

    Very good ideas but delivered in such a way that I've struggled to read the book. It's more like a textbook combined with personal notes than a coherent message from start to finish. If there is an easier to grasp book about the same ideas, it's a must-read.

  18. 4 out of 5

    Evan Leybourn

    Deming, and his book Out of the Crisis, is part of what has driven my passion for Agile Business Management. While this book is over 30 years old and predates the "Agile" movement, many of the concepts and recommendations that Deming makes align to the values & principles of the agile manifesto. A call to action Although written in the context of American manufacturing, Out of the Crisis was a call to action for companies to address systemic problems in the way that western management operated. Wh Deming, and his book Out of the Crisis, is part of what has driven my passion for Agile Business Management. While this book is over 30 years old and predates the "Agile" movement, many of the concepts and recommendations that Deming makes align to the values & principles of the agile manifesto. A call to action Although written in the context of American manufacturing, Out of the Crisis was a call to action for companies to address systemic problems in the way that western management operated. Where the emphasis on short-term profits, lack of forward planning, use of performance evaluation, inconsistency of management and management by numbers reduced the capability of companies to adapt, innovate and remain successful in the long-term. Do these seem familiar? 30 years on, and these "diseases", as Deming called them, are still prevalent in many of the organisations I work with. To be successful, Deming says, managers must "learn how to change", "innovate ... products and services for the future" and "have an unshakable commitment to quality and productivity". By treating an organisation as a system, sustainable business growth can be driven through the successful management of interactions between business functions, investment in innovation and strong staff engagement. My final thoughts; this is a great book and has remained relevant throughout the last 3 decades. Sadly I believe it will remain relevant for decades to come. If you're after an interesting read, I'd highly recommend it.

  19. 4 out of 5

    Aaron

    The book outlines Deming's fundamental ideas of effective, responsible management and organization. He goes to length to illustrate how irresponsible, misguided management has put the United States in economic trouble in recent decades; he offers sound advice makes clear cases for improvements in management and how changes will translate to betterment for the entire agency, and from there to the nation. In my book Deming sets the standard for clear, efficient non-fiction writing. He draws heavil The book outlines Deming's fundamental ideas of effective, responsible management and organization. He goes to length to illustrate how irresponsible, misguided management has put the United States in economic trouble in recent decades; he offers sound advice makes clear cases for improvements in management and how changes will translate to betterment for the entire agency, and from there to the nation. In my book Deming sets the standard for clear, efficient non-fiction writing. He draws heavily on personal experience and makes heavy use of examples to illustrate good and poor organization and management systems. The format feels somewhat like a personal notebook, using almost "bullet point" writing for efficiency instead of stylistic narrative. While he does not read "like a book," it makes for easy excerpts. Furthermore, he starts each chapter by explicitly stating the purpose and goal of the chapter, illustrating his direct and to-the-point style. This book should be standard reading for all management. I would not recommend it for the general public only because of its style/format.

  20. 5 out of 5

    Rhonda Sue

    This is a highly technical book, with lots of graphs, charts, and statistical computations. If you're in the statistics field this is a seminal work. If you're in a large business organization and are looking for ways to improve things, you will find valuable material here. If you're familiar with Lean and Toyota Production Systems, and eliminating waste, this is good foundational reading. The key takeaway are Deming's 14 points: 1. Create constancy of purpose for improvement of product and servi This is a highly technical book, with lots of graphs, charts, and statistical computations. If you're in the statistics field this is a seminal work. If you're in a large business organization and are looking for ways to improve things, you will find valuable material here. If you're familiar with Lean and Toyota Production Systems, and eliminating waste, this is good foundational reading. The key takeaway are Deming's 14 points: 1. Create constancy of purpose for improvement of product and service; 2. Adopt a new philosophy; 3. Cease dependence on inspection to achieve quality; 4. End the practice of awarding business on the basis of price tag alone-use a single supplier; 5. Improve constantly and forever every process for planning, production, and service; 6. Institute on the job training; 7. Adopt and institute leadership; 8. Drive out fear; 9. Break down barriers between staff areas; 10. Eliminate slogans, exhortations, and targets for the work force; 11. Eliminate numerical quotas for the work force and numerical goals for management; 12. Remove barriers that rob people of pride of workmanship. Eliminate annual rating or merit system; 13. Institute a vigorous program of education and self-improvement for all; and 14. Put everybody in the company to work to accomplish the transformation.

  21. 5 out of 5

    Brigt Nersveen

    I've read a fair share of books of Lean and I attended the IHI improvement conference. They have Deming as their "godfather". This book really put things in perspective. How we manage our business and how we should. The statistical approach is prominent in this book, more than any other I've read. Already I'm experimenting with his thoughts in worksettings. For me this book will be a foundation for further development and thinking.

  22. 5 out of 5

    Steve Coscia

    Old time manufacturing people (like me) live and die by this book. The statistical process control (SPC) methodology still holds true. The 14 Points remain valid. Deming taught SPC to war torn Japan back in the mid 1940s. Their manufacturing quality excelled. I attended Deming's four-day workshop when he was alive. He was the master.

  23. 4 out of 5

    tomlinton

    Had to acknowledge The years I spent trying to follow a corporate version of this philosophy and the many books on the subject I finished during that time are probably buried in obscurity but my it sure was fun

  24. 5 out of 5

    Susan Janke

    I am the COO at a service corporation and found this book extremely helpful. Some aspects don't really apply (like inventory control, for example), however, the majority of this book focuses on sound management practices that are relevant across the board.

  25. 5 out of 5

    Nishanth K

    this book is not at all an easy read. it is ok considering the fact that this book deals with something that is really valid and applicable to any industry. PDCA as a method is well publicised by Japanese companies and in the software world, by agile values and principles.

  26. 4 out of 5

    Bruce Humbert

    I would put this in my top ten of books that have had an impact on how I think... The Bible The Shack Free to Choose Out of the Crisis

  27. 4 out of 5

    Ken Berger

    Deming is difficult to read & understand, but he holds the true keys to success - if you implement his 14 principles, your might become as successful as Toyota (who followed his teachings). Deming is difficult to read & understand, but he holds the true keys to success - if you implement his 14 principles, your might become as successful as Toyota (who followed his teachings).

  28. 4 out of 5

    Manuel Molinier

    The best book I've ever read about Quality, quality management in any industry or process. A must read for anybody with an interest in Quality and lean / kanban processes.

  29. 4 out of 5

    Bob Schatz

    A True Classic....everyone should read it and learn to master Deming's 14 points

  30. 4 out of 5

    Stuart Harker

    W Edwards Deming is the forerunner in the Field of systems thinking and management thinking, and a must read for any serious leader

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