Out of the Crisis

Today’s reading pick:

Out of the crisis - by W. Edwards Deming

Deming could be called the Majestro of quality control, the Grand Monsieur of business consulting, the Godfather of management science. Deming is the source of modern business thought. He helped engineer the rise of Japanese competitiveness in the consumer goods sector, thereby giving a major prod to globalization. Perhaps his only failure was not envisioning the extremes to which others would later push his ideas of “constancy of purpose” (e.g. continuous quality improvement). Then again, their own ideas often come back to haunt prophets and, on most points, Deming passes the test of time with flying colors. In this reprint of his 1986 classic, his arguments for single supplier sourcing and for leadership rather than supervision, and against production quotas and the absurd practice of management by walking around, ring as true today as ever. 

Take-Aways

• The US economy needs revolution, transformation and change, not a hot fix.

• The theory that manufacturers have to choose between high volume and high quality is a lie.

• Production increases as quality improves, because products require less “rework” and employees are more satisfied, which leads to greater productivity.

• Japan has no natural resources; it succeeds due to its commitment to quality.

• Like auto accident statistics, measures of productivity tell you what went wrong but not how to fix it.

• Companies must guide workers’ efforts with a theory of management. Just having everyone try to do their best is insufficient and will lead to chaos.

• You have to build quality instead of checking for it.

• Quotas and management by numbers work against quality. Get rid of them.

• Relying on a single source supplier will enhance quality in the long run.

• If you hire consultants, give them the authority to visit any aspect of the company.

Enjoy the read and have fun learning!

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Out of the Crisis, reissue (The MIT Press)

By Deming, W. Edwards

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