Out of the Crisis
by W. Edwards Deming

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Book Reviews of Out of the Crisis

Book Review: "The transformation can only be accomplished by man"
Summary: 5 Stars

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.

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