Out of the Crisis, reissue (Mit Press) Paperback – October 16, 2018

Having worked in the TQM space for the last 20 years I have to say that few people fully appreciate the importance of Deming’s management method. Contrary to the terminology used (‘Total Quality Management’) it actually deals with creating and sustaining successful organizations. The latter term: ‘sustaining’ has a fundamental importance as organizations should not be run for short term admiration on the stock exchange, but for long term endurance and profit sustainability.‘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.

Processes produce variable results. Controlled processes produce results that can be described by probability distributions. Uncontrolled processes, outliers and routine events should be managed in specific ways. Deep understanding of this idea and its implications challenges many deeply held management beliefs.Dr. Deming was a statistician who deeply understood his craft and joined others for 50 years in applying these new insights. The modern reader will find much of what he says pure "common sense", but this was not so in 1960, 1970 or 1980. The modern reader may find some of his policy prescriptions extreme, sensational or just plain wrong. In most cases, Deming had applied the logical consequences of his insight to raise important questions and provide "logical" answers. At a minimum, he gained the attention of Fortune 500 CEOs.The book is long, dry and unecessarily argumentative. However, it is worth reading for its direct insights into the history of modern quality, process and operations management. Deming is transparent. He shares his views, warts and all. "How could he know?" The quality paradigm is a highly valuable complement to the financial paradigm, applicable to all organizations.Managing and improving processes with perfection goals adds great long-term value for mankind. Deming's insights provide us with tools and confidence to follow this value added path.

This book brings a lot of personal experience teaching, training organizations to manage for quality. It is a mixture of practical experience, theories from management and statistics that makes an exciting journey to the 20th century and brings lots of recomendations that still and will be applicable for managers of today and tomorrow. This is not a one reading book. It is supposed to be used for consultation and studying. There are some chapters that seems very repetitive, with excess of examples but I understood that it is there to capture the attention of any manager or reader with specific interest. Other chapters have a lots of maths which gives a bit of headache to a person that expects just to read. I would advice these to scan and capture the essential. I would encourage people to read it as a reference resource, specially to six sigma practitioner's.

Dr. Deming best summarizes the purpose of the book: "This book teaches the transformation that is required for survival, a transformation that can only be accomplished by man. A company can not buy its way into quality - it must be led into quality by top management. A theory of management now exists. Never again may anyone say that there is nothing new in management to teach."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."