<p>The name W. Edwards Deming is synonymous with the most insightful views, ideas, and commentary on management and quality control. Referred to as "the high prophet of quality" by the <i>New York Times</i>, Deming was instrumental in the spectacular rise of Japanese industry after World War II and influenced many of the world's most innovative managers in the ensuing decades. His original ideas led directly to the creation of relationships with suppliers and a plethora of quality initiatives.</p><p>Now, with <i>The Essential Deming</i>, FordhamUniversity professor and Deming expert Joyce Orsini draws on a wealth of previously unavailable material to present the legendary thinker's most important management principles in one indispensable volume.</p><p>The book is filled with articles, papers, lectures, and notes touching on a wide range of topics, but which focus on Deming's overriding message: quality and operations are all about systems, not individual performance; the system has to be designed so that the worker can perform well.</p><p><i>The Essential Deming</i> reveals Deming's unique insight about:<ul><li>How poor management infects an entire organization</li><li>The critical importance of management on producing quality products and services</li><li>Improving management in any company</li><li>The effective management of people--the manager's single most important task</li><li>How to educate workers into critical thinkers</li><li>Ways to preserve statistical integrity while dealing with real-world problems</li></ul></p><p>Fully authorized by the Deming estate and published in cooperation with The W. Edwards Deming Institute, <i>The Essential Deming</i> is the first book to distill Deming'slife's worth of thinking and writing into a single source. Orsini provides expert commentary throughout, delivering a powerful, practical guide to superior management. WithThe Essential Deming, you have the rationale, insight, and best practices you need to transform your organization.</p><p><i>"To move from the wilderness of news into the paths of history, we must distinguish true turning points from mistaken ones. W. Edwards Deming has seen the future and it works. He is a turning point of business history made flesh."</i> -- U.S. NEWS & WORLD REPORT</p><p><i>"I engaged Dr. Deming to assist Ford in planning, developing, and implementing the plans to accomplish major improvement in the way people worked together and in the quality of our products. . . . Ford achieved major success in this effort, and I consider Ed Deming to have been a key element in our progress."</i> -- DONALD E. PETERSEN, former Chairman of the Board and Chief Executive Officer, Ford Motor Company</p><p><i>"It can be said of very few that they changed the way the world thinks, but Dr. Deming is among them. . . . The legacy of Dr. Deming's genius, already immense, grows even larger with this new collection of his thoughts."</i> -- DONALD M. BERWICK , Senior Fellow, Center for American Progress</p><p><i>"Toyota Motor Corporation was awarded a Deming Prize in 1965. This laid the foundations for the present growth of our company. I do believe the ideas and theories of Dr. Deming emphasizing the importance of quality control are very useful for people of all ages."</i> -- TATSURO TOYODA, Senior Advisor, Toyota Motor Corporation</p><p><i>"Few rival W. Edwards Deming for impact on management in the twentieth century. Indeed, Deming and Drucker, to my mind, stand apart for the breadth and depth of their vision for management as a profession that truly might help realize the possibility of people workingtogether at their best. . . . The publication of this expansive edition of Deming in Deming's own words is a seminal event."</i> -- PETER M. SENGE, MIT and the Society for Organizational Learning</p>
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<p><b>JOYCE NILSSON ORSINI, PhD</b>, is an associate professor of management systems at Fordham University, the director of Fordham's Deming Scholars MBA program, and president of The W. Edwards Deming Institute.</p>
| Preface | |
| 1. The World Is Being Ruined by Best Efforts (Best Efforts Without Guidance Lead to Failure) | |
| 2. Quality Is Made in the Boardroom (Only Top Management Can Make the Decisions Necessary to Assure Quality) | |
| 3. By What Method? (How Can We Bring About Improvement?) | |
| 4. There Is No Such Thing as Instant Pudding (Deming's 14 Points for Management) | |
| 5. A System Must Be Managed (People Are Part of the System) | |
| 6. There Is No Substitute for Knowledge (Information Is Not Knowledge) | |
| 7. Management Is Prediction (Statistical Thinking Is Required) | |
| 8. What Happened in Japan? | |
| Index |
The World Is Being Ruined by Best Efforts
(Best Efforts Without Guidance Lead to Failure)
People sometimes find themselves in a situation where things don't go right.The best employees find ways to "correct" the problem. I put the word correct inquotes because often the corrections wind up making things worse. Not because ofmal-intent or lack of follow-through. If the problem is caused by the way theprocess is designed (a management responsibility), the tweaking done by theemployee may alter the system in such a way that future products or services areeven worse. The correction addresses the wrong problem and winds up doing moreharm than good. It's counter-intuitive to believe that your best workers, doingtheir best, could make things worse. Best efforts won't cut it; bettermanagement of the system is needed.
This chapter contains articles that Deming wrote between 1978 and 1992, tryingto help management take responsibility for actively managing. He recognized thatmany of the bad practices were so ingrained that they would take decades to berid of. He also realized that many executives had no idea how much trouble theywere in. He likened the situation in America to that in Japan in the late 1940s.
At the end of the chapter are articles specifically on problems with the meritpay system, competition and monopolies, and quality control (QC)-Circles.
* * *
Deming wrote this note to himself to capture his thought that the UnitedStates is in a state of crisis, much as Japan had been after World War II. Butunlike the Japanese, the United States doesn't know they're in a crisis.
The Invisible Crisis
Japan was in a crisis. The crisis was visible, the country blown to bits,destroyed by fire. Our country is in a worse crisis because it is invisible.Japanese top management asked me in 1950 to come to help. Japan soon became aneconomic power. The secret:
Management of a system, cooperation between components, not competition.Management of people.
We suffer from evil styles of management, such as ranking people, divisions,plants (creating competition between people), management by results, failure tounderstand cooperation in a system in which everybody wins.
Transformation is required: not mere change. Transformation requires ProfoundKnowledge.
From a note written April 4, 1992.
* * *
Fourteen years earlier, in a letter to the dean of a university, Demingdiscusses the many road-blocks that stand in the way of improvement of Americanindustry. He talks about the joint efforts of the production-worker andmanagement in Japan and the mistaken notion that the Japanese copy from others.If they are copying, how did they get so far ahead?, he wondered.
Poor performance in American companies lies, at least in part, in the failure ofAmerican management to keep abreast of modern methods of management andinnovation, Deming believed. Relations between the American production-workerand American management "presents a sad spectacle" he states in thiscommunication.
Irrational Explanations and Excuses
A road-block stands in the way of improved productivity in American industry, sobadly needed in view of America's unfavorable balance of trade. The road-blockis the irrational explanations and excuses offered by most Americans, includingunfortunately most leaders of industry, for the success of the Japanese, and forthe competitive position of their products. It would be better to face up to thefacts, and try to understand better the reasons for the miracle of Japaneseefficiency and quality. The miracle of economic growth in Japan has been theenvy and a model for other industrial economies.
Most Americans, from top management on down to the rank and file, even asconsumers, have a badly distorted image of Japanese industry. It seemsincredible to Americans that the Japanese could out-smart Americans, not by lowwages, not by longer hours, but by sheer efficiency and brilliant innovation.Accusation that Japanese firms dump their products on American shores belowcost, through subsidy or preferential treatment by the Japanese government, andaccusation of other so-called unfair techniques by Japanese industry, are mostlyunfounded. There is also prevalent amongst Americans the idea that importationof Japanese products lowers our standard of living by taking jobs away fromAmericans, when the fact is that without Japanese products the standard ofliving of most Americans, especially those of lower income, would today beconsiderably lower than it is.
Everyone knows that the economy of the United States has not maintainedleadership in productivity that the world requires for balance of commerce.There are doubtless many reasons for this poor performance, but one of themsurely lies in the failure of American management to keep abreast of modernmethods of management. Innovation in America has not kept up with the Japanese.Relations between the American production-worker and American managementpresents a sad spectacle.
By contrast, in Japan, the contribution of the production-worker and thecontribution of management are a joint effort. All people work together towardthe same end, even though the motivation may in some part be selfish. Thegreater the productivity, the better the economic lot of everybody. This is asimple principle and it is learned in Japan at an early age.
There is, in addition, the supposition in the minds of most Americans thatJapanese manufacturers exist by copying the techniques and products of othercountries. The Japanese are clever and can indeed, copy.
Whose trains did the Japanese copy? And where did they get the idea that trainsshould run on time within 15 seconds? (I do not mean 15 minutes.) Whose TV didSony copy? Whose cameras? I hold in my hand a Casio hand-calculator, weight twoounces, one-quarter inch thick, with a digital clock that keeps time within twoseconds per month. Could American manufacturers make it? Yes. Then why don'tthey? The Japanese beat them to it.
Failure of Americans to understand that the Japanese have also superior abilityin innovation and that they have developed superior management and channels oftrade is one of the barriers to better efficiency in American production, and toinnovation in America. It would be far better for the leaders of industry inAmerica to admit that most (not all) Japanese products are better and...
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