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Sarunas Abramavicius
“ OUT OF THE CRISIS “
Summary
In his first Chapter of the book “Out of the Crisis”, W. E. Deming presents short pre-history of total quality management and it’s meaning for the economics growth in Japan. It gives the reader an incentive to come to the conclusion, that poor quality means high costs and vice versa - high quality reduces the costs. It is given simplified scheme of this statement along with many examples supporting it. But increase in quality does not mean buying new machinery and gadgets. The relating statement between elucidating the idea of total quality management in the first Chapter and 14 Points, which are the basis for transformation of American industry, in the second Chapter, is cited below:
“If I were a banker, I would not lend money for new equipment unless the company that asked for the loan could demonstrate by statistical evidence that they are using their present equipment to reasonably full capacity, and are at work on the 14 Points of Chapter 2 and on the deadly diseases and obstacles of Chapter 3 ”. (Ch.1. pp.14) So improvement in quality, which leads to improvement in productivity is not reached by new machinery, measurement of productivity, even statistical summarizing itself. What is to be done to be successful in the market is given in Chapter 2 - “Principles for Transformation of Western Management”. The purpose of this chapter and of Chapter 3 is to explain the elements of the transformation that must take place. “The transformation can only be accomplished by man, not by hardware. A company can not buy its way into quality”. (Ch.2. pp.18). Every 14 Points is extended into 2 paragraphs which give a lucidity of author’s mind. The 14 Points stress on the changing of the way of thinking, adopting a new philosophy, alteration in one’s psychological attitude. A complex following of the 14 Points should lead the company to the top. The last point gives a plan of actions to be made in order to put into practice the whole complex of principles.
But this “theory of management”, as E.Deming describes his 14 Points, cannot work without trying to eradicate so called “diseases and obstacles” which “unfortunately , [deadly diseases] stand in the way of transformation” and “...afflict most companies in the Western World”. ( Ch.3. pp.97 ) The writer of the book explains bad habits of every manager in almost every company. At the first sight nobody even could think that emphasis on short-term profits or evaluation of performance or even merit rating could be fatal for the companies. Obstacles are presented as “candidates for front rank in effectiveness, along with deadly diseases, though the most of them are easier to cure than the deadly diseases”. (Ch.3. pp.126)
Those three chapters of “Out of the crisis” are the core of the book. Logically and in the clearest way they explain what total quality management is, what its purpose and the meaning is not only in the economics, but in the everybody’s life of any of the member of any society in the world. I dare to call this book as a new philosophy school, of which the leader - W.E.Deming - wishes to change the Western management, particularly to help out the American economics, but imperceptibly intrudes upon everyone’s consciousness trying to make upheaval in everyone’s way of thinking.
In the next two chapters E.Deming predicts the period of time that has to pass to improve total quality and gives some pieces of advice to help the management to understand its responsibilities.
The description and explanation of the quality, relationships among quality, producer and consumer, heterogeneous meanings of the quality are given in the chapter 6 - “ Quality and Consumer”. One can find answers to the questions what quality and quality of service is, what consumer and what the triangle of interactions is, what one can learn from the consumer.
Since Service industry plays huge role in economics, the improvement of economics and the quality cannot do without the improvement of the quality and productivity in service organizations, what the main point of the Chapter 7 is. All the areas of the service industry are touched by the author, everywhere the attention is focused on the specific items in each particular sphere of the service industry. An abundance of realistic examples shows the professionalism of the author and his understanding of the problems.
“... The aim of the leadership should be to improve the performance of man and machine, to improve quality, to increase output, and simultaneously to bring pride of workmanship to people. Actually , most of this book is involved with leadership.” (Ch 8. pp. 248) - It is stated in Chapter 8, which expands the 7th Point of Deming. The leadership does not mean to tell what to do, but it is actually telling the people how to do, how to improve what has to be done, how to know how to do, how to evaluate by the means of statistical control. Some good examples are given . The charts reflect the way of examining the problems and give the answer to many questions.
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