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Out of the Crisis Hardcover – February 2, 1982
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- Print length520 pages
- LanguageEnglish
- PublisherMassachusetts Inst Technology
- Publication dateFebruary 2, 1982
- Dimensions5.75 x 1.5 x 8.75 inches
- ISBN-100911379010
- ISBN-13978-0911379013
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- Publisher : Massachusetts Inst Technology (February 2, 1982)
- Language : English
- Hardcover : 520 pages
- ISBN-10 : 0911379010
- ISBN-13 : 978-0911379013
- Item Weight : 1.9 pounds
- Dimensions : 5.75 x 1.5 x 8.75 inches
- Best Sellers Rank: #260,943 in Books (See Top 100 in Books)
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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."
"It is not enough to do your best; you must know what to do, and then do your best."
"If you can't describe what you are doing as a process, you don't know what you're doing."
"In 1945, the world was in a shambles. American companies had no competition. So nobody really thought much about quality. Why should they? The world bought everything America produced. It was a prescription for disaster."
Written in 1983, as American industry was failing in the world economy, this is his analysis of the fundamental problems, and their solutions. He has called it the Theory of Profound Knowledge, a title that seems pretentious until you begin to explore it. The proof of his Theory is the incredible recovery of the Japanese economy, led by W. Edwards Deming and his disciples who became giants in Japanese industries, especially automobile manufacturers. The phrase "Made in Japan" went from meaning poor quality to meaning the opposite, as evidenced by Toyota, Honda, Nikon, and a host of other major name brands.
This book takes those lessons and applies them to American products and services as practiced at the time it was written. But the Theory, and the 14 Points that elaborate it, apply to any product or service, including non-profit agencies and government, at any time. Those who follow his principles in practice will be much more likely to succeed than their competitors who do not.
No matter what you do, or where you work, understanding Dr. Deming's principles will help you get it done better.
Top reviews from other countries

Dr Deming’s style is direct and can be difficult to read. Yet, once you are in his flow, this book is invaluable in learning how his system can help organisations remain relevant in a changing world. I found myself reading and annotating this book over and over, each time seeing something else that I had missed in previous readings (basically, Dr Deming wasted no words - everything he wrote carries substance).
The book may be dated in terms of the examples he uses, but the principles remain relevant for today’s organisation. This book was also written at a time when the USA was in recession and struggling to compete with cheaper and better quality products imported from Japan.
If you want to start your journey to understand what the System of Profound Knowledge is, I highly recommend you start with Out of the Crisis and The New Economics.

This book will no doubt find widespread agreement when it states that experienced workers should produce consistent output, subject only to an irreducible minimum of randomly distributed errors. It is subversive when it points out that, once this has been achieved, the power to produce further improvement, and therefore the responsibility for that improvement, lies not with the workers, but with those who control the conditions of work and the procedures for work - their managers. Deming states that those who supervise workers should ideally know something about the work being done. He also states that statistical studies can suggest and then validate proposed improvements, even when the statisticians are not expert in the work.
The message of the book is backed up by accounts of successes by Deming and others in applying simple statistical methods (such as process control charts) and by accounts of failures of traditional knee-jerk management actions, including simple-minded Management By Objectives. These cover service industries as well as assembly line manufacturing. In the context of services, Deming addresses himself to reducing the error rate. General suggestions for this include consistent working practices, the avoidance of sudden demands for panic-rate working, direct contact with the customer to establish their requirements in operational (objective and testable) terms, and the detection of error at the earliest possible occasion, with communication of this error back to its source if that source has not yet achieved consistent statistical control of its output quality, and to a study group to consider procedural changes if they have.
In one example, a company sent 20 supervisors on a 10-week course, at 2.5 hours per week. As a result of the course, the company saw a dramatic improvement in quality, and a decrease in the costs of rework. This book is not the contents of that course. But if your company thinks that quality improvement means giving yearly sermons to its staff, mentioning Deming's successes in passing, this book will explain to them why such an approach is useless or even counter-productive (Chapter 2, Point 10).

‘Out of the Crisis’ was written in 1986 but it still remains valid, possibly even more than back in the 1980s, as these days far too many managers tend to do their jobs based on gut feeling, or being influenced by an article in the media or on the internet.
You will most likely find the book difficult to read as it relies on a different paradigm and it takes time to adopt it. As such, it needs multiple reads to seep into your subconscious mind and influence your thinking at the base level, so you too can start seeing the world differently.
Obviously, you could ask the question: why change? How can Deming’s view of the world be proven to be superior? Easy: he was one of the key people who converted Japan in the 1950s and 1960s from an economic basket case and a source of shoddy goods into the leading economic power post-1970s.
If you have not read this book, no matter what you do in life, study it. Don't just read it; study it. Your results in life will improve, big time.

