The New Economics for Industry, Government, Education - 2nd Edition [Paperback]

W. Edwards Deming (Author)

Book Description

Publication Date: August 11, 2000 | ISBN-10: 0262541165 | ISBN-13: 978-0262541169 | Edition: 2nd

"... competition, we see now, is destructive. It would be better if everyone would work together as a system, with the aim for everybody to win. What we need is cooperation and transformation to a new style of management."In this book W. Edwards Deming details the system of transformation that underlies the 14 Points for Management presented in Out of the Crisis. The system of profound knowledge, as it is called, consists of four parts: appreciation for a system, knowledge about variation, theory of knowledge, and psychology. Describing prevailing management style as a prison, Deming shows how a style based on cooperation rather than competition can help people develop joy in work and learning at the same time that it brings about long-term success in the market. Indicative of Deming's philosophy is his advice to abolish performance reviews on the job and grades in school.previously published by MIT-CAES

Editorial Reviews

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.

Product Details

• Paperback: 266 pages
• Publisher: The MIT Press; 2nd edition (August 11, 2000)
• Language: English
• ISBN-10: 0262541165
• ISBN-13: 978-0262541169
• Product Dimensions: 6 x 0.6 x 8.9 inches
• Shipping Weight: 12.8 ounces (View shipping rates and policies)
• Average Customer Review: 4.6 out of 5 stars  See all reviews (55 customer reviews)
• Amazon Best Sellers Rank: #214,322 in Books (See Top 100 in Books)
  • #96 in Books > Business & Investing > Management & Leadership > Total Quality Management

More About the Author

Discover books, learn about writers, read author blogs, and more.

Most Helpful Customer Reviews

59 of 61 people found the following review helpful

5.0 out of 5 stars Straightforward, Realistic & Practical February 29, 2000

By Raymond A. Teo

Format:Paperback

I have recommended this book in my previous review of "Out of the Crisis" to managers who are new to Deming's ideas, being a manual that will be easier and more effective to comprehend and follow. At the final stages of his life, Deming (1900-1993) wrote this epilogue of his career with an honest attitude and sincerity that I, along with many of my colleagues, admire. The frankness of his opinions regarding the (lack of) essentially fundamental leadership traits in today's modern global societies, in all vital areas at all organisational strata, are both valid and brave; the information voiced is made possible only through his previous experiences and status in the field.

If all managerial leaders of this world were to listen, be able to understand and follow Deming's ideas and underlying philosophies, societies will be enhanced beyond recognition in many aspects.

However, if you are a lone crusader in your organisation or even country, then you are in for hell... but do hang on tight, as the world generally hates challenges in any forms and situations... Implementing Deming's philosophies (as with any corporate strategy) involves innovation by the introduction of new ideas into an organisation, which includes rearrangements from jobs and roles to structures and systems; which people generally hate. Even within the book, Deming had already highlighted the various problems to that, and had always emphasised on EDUCATION of the organisation, rather than decreed training to extinguish corporate flames, for he had said:

"Knowledge is theory. We should be thankful if action of management is based on theory. Knowledge has temporal spread. Information is not knowledge. The world is drowning in information but is slow in acquisition of knowledge.... There is no substitute for knowledge."

- W. Edwards Deming 12th September 1993

This is my humble tribute to a great man. Read more ›

54 of 58 people found the following review helpful

5.0 out of 5 stars An excellent book on systems and whole systems thinking. January 28, 1999

By [e-mail]

Format:Paperback|Amazon Verified Purchase

This is the last book written by Dr. Deming before his death in 1993 at the age of 93. Dr. Deming is perhaps best known for the work he did in Japan at the end of World War II, and his famous 14 points. In this book Dr. Deming introduces his System of Profound Knowledge, which consists of: An understanding of Systems,A Theory of Knowledge, An understanding of Variation and Psychology Dr. Deming defines a system as: "A series of interdependent components that try to work together to achieve the aim of the system." The system must have an aim, without an aim there is not system. Dr. Deming explains variation as follows: All systems have some variation in them. The secret is to know what kind of variation is occuring and to respond accordingly. Common cause variation is the random variation tha occurs in any system. Special cause variation is a result of something outside the system acting on the system. An example would be that it normally takes you 25 minutes to drive to work, give or take a few minutes, but this morning, because of an accident the commute required 50 minutes. The normal drive time, with variation represents common cause variation, while the accident represents special cause variation. A theory of Knowledge is a way of doing experiments, or defining a mind set. According to Dr. Deming without theory no learning takes place. He give an example of a rooster that has a theory that he causes the sun to rise because he gets up early and crows. One morning he forgets to crow. The sun rises anyway. While the rooster's theory is blown out of the water he has learned that he is not responsible for causing the sun to rise and in the future he can sleep in. Dr.... Deming's discussion on psychology has to do with the difference between intrinsic and extrinsic motivation. His basic theory is that people enter the world motivated to learn and do well and that the excessive use of extrinsic motivation kills the intrinsic motivation. In this book Dr. Deming also discusses in some detail his famous Red Beads Experiment which he uses to demonstrate the power of systems and how they victimize the people working in them. Read more ›

17 of 17 people found the following review helpful

5.0 out of 5 stars Highly Recommended! September 18, 2001

By Rolf Dobelli HALL OF FAMETOP 1000 REVIEWER

Format:Paperback

Critique W. Edwards Deming's work at your peril. After all, he probably set whatever standard you're using. This volume - revised by the author before his death in 1993 and partially based on his 1950s work with the Japanese - may strike the contemporary reader as a curious mixture of seminal process thinking and idiosyncratic ruminations on education. Portions read like an artifact of the early 1990s, but in this regard, however, his volume offers a unique perspective on a turning point in American economic history: the shift to the knowledge-based economy. We [...] recommend Deming's volume to any serious student of management thought, and all human resources professionals should familiarize themselves with his work, which set the foundations for many of the transformations now underway in the corporate world.

5 of 5 people found the following review helpful

4.0 out of 5 stars Shorter Deming book October 24, 2006

By T. Harris VINE™ VOICE

Format:Paperback

W. Edwards Deming is the man who tried to tell America how to make industry more effective. Few listened, so he went to postwar Japan and revolutionized their industry instead. When American industrial leaders saw Japan beating them, then they got interested. Almost anything by Deming is a must-read for his commonsense but statistically-based theories for productive, happy work. The New Economics is pretty short but introduces a lot of the points. For the in-depth view, read his Out of The Crisis.

2 of 2 people found the following review helpful

5.0 out of 5 stars If You're Looking to Inspired Read This Book! June 2, 2009

By M. B. Moehl

Format:Paperback

I was assigned this book for a statistical quality control class. When I found out that I was supposed to read an additional book for the class, I was not too excited. I am not one to enjoy having additional reading pushed on me; however, this book proved to be an exception. I can with all honesty say that this book was a pleasure to read.

First a little about the author. Deming is arguably the greatest visionary in the fields of quality control, process improvement, and management revision. In short, he has a lot of great things to say about corporate America.

Unlike a lot of independent works on corporate America, this book does not get lost in the technical and theoretical aspects of problems and solutions. The New Economics uses simple logic and useful reasoning to make points about the current state of things in United States, and what should be done to improve upon them. Even topics such as the use of control charts or the causes of variation are covered in such a straightforward way, that even a person that has never taken a statistics class in their life can understand it. Now, It is important to note that while this book does take a very simplistic approach to topics that are typically hard to grasp, the book is by no means trivial. The book makes many profound points that are truly eye opening. I found myself on more than one occasion slap my head saying, "Wow! That is so ridiculously obvious! I can't believe I have never thought of that before."... and sometimes, "Wow! That is so obvious! I am seriously disappointed no one in corporate America is acting like this!"

Really, the only bad thing I have to say about this book is that Deming tends to be a bit idealistic when it comes to the worker.... He believes that if given favorable circumstances, workers will perform well. I can say from personal experience that I have seen workers that have been given every advantage conceivable, and they still show lack of initiative and capability. Deming on the other hand indicates that pretty much any worker is a good, and that if problems occur, blame should fall on upper management. This is really the only point Deming makes that I do not fully agree with.

So, I am not one to sweet-talk something unless I truly stand behind, and I can say, I truly stand behind this book. There are many profound insights in The New Economics that I will carry with me for the rest of my life. All in all, this book is an inspiring read.

I suggest you buy this book... or at the very least see if your library has a copy and read it!

Topics Covered in The New Economics:
General Views on Corporate America
Current Wasteful Behavior
Setting up a System with a Goal
Theory of Profound Knowledge
The Role of Management
Need for a Cooperative System
The Red Beads Experiment
Using Control Charts
The Funnel Experiment
Understanding Variation

Pros:
Very eye opening insight
Defended with sound logic
Simple explanations
Good examples
Only 230 pages; 10 chapters

Cons:
Idealizes Human Nature
I Didn't Read this Book Sooner Read more ›