The New Economics for Industry, Government, Education - 2nd Edition (Paperback)

by W. Edwards Deming (Author)

Editorial Reviews

Product Description
". . . 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

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: 8.8 x 5.8 x 0.8 inches
• Shipping Weight: 12.8 ounces (View shipping rates and policies)
• Average Customer Review: 4.9 out of 5 stars See all reviews (26 customer reviews)
• Amazon.com Sales Rank: #39,960 in Books (See Bestsellers in Books)

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  #8 in	Books > Professional & Technical > Engineering > Industrial, Manufacturing & Operational Systems > Productivity
  #12 in	Books > Professional & Technical > Engineering > Industrial, Manufacturing & Operational Systems > Quality Control
  #25 in	Books > Business & Investing > Management & Leadership > Total Quality Management

Customer Reviews

Most Helpful Customer Reviews

47 of 49 people found the following review helpful:

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

By	Raymond A. Teo (Singapore) - See all my reviews

This review is from: The New Economics: For Industry, Government, Education (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.

47 of 51 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] (Fayetteville, Georgia - USA) - See all my reviews

This review is from: The New Economics: For Industry, Government, Education (Paperback)

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.

13 of 13 people found the following review helpful:

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

By	Rolf Dobelli "getAbstract.com" (Switzerland) - See all my reviews (TOP 50 REVIEWER)    (REAL NAME)

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.