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Out Of Crisis
| Карточка документа |
| Название: Out Of Crisis |
| Тип: реферат |
| Предмет: Менеджмент |
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| Предварительный просмотр документа "Out Of Crisis" |
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.
Before even starting to improve the quality, everyone has to meet the requirement to accept
operational definitions. There is no any way out in improvement process without standards
and regulations, which start with operational definitions. These and other important questions
are discussed in Chapter 9 and Chapter 10.
The failure to understand the information in variation causes the central problem in
management and leadership. In Chapter 11 it is spoken of faults of the system as common
causes of trouble, and faults from fleeting events as special causes. The content of this chapter
includes the deepest analysis of many real examples taken from companies and proves that
statistical control of the system using control charts lets discover both common and special
causes.
" More examples of improvement Downstream" - Chapter 12 is like a continuation of
Chapter 11. The next chapter provides us with the latent danger of any new philosophy - some
disappointments in Great Ideas. Every new theory has its advantages and disadvantages. Not
everything in the new philosophy is so good as it may seem from the first view. But as it is
said, " disappointments arise from failure to understand four basic axioms." (Ch. 13. pp. 388)
Not only theoretical knowledge and examples from the real life are given in the book "Out
of the Crisis ". E.W. Deming solves a bunch of practical problems from various spheres of
industry, proving the fairness, clearness and ability to apply his theoretical reasonings. The
bibliography of sources for advanced study is given as well in Chapter 15.
How to organize the system in the company, how to reorganize the present system into the
system, reaching improvement in quality, productivity, minimizing of costs is discussed in
Chapter 16. Some very elementary examples from the everyday's life in Chapter17 - "Some
Illustrations for improvement of living " are presented by the author.
The Appendix refers to the whole of the book " Out of the Crisis ". The Japanese
phenomenon demonstrates the world the importance of total quality idea. " The whole world
is familiar with the miracle of Japan, and knows that the miracle started of with a concussion
in 1950. (...) Suddenly, Japanese quality and dependability turned upward in 1950 and by
1954 had captured markets the world over. The new economic age had begun. What happened
? " (Appendix, pp. 486) Will the American economy guess the riddle of Japan ?
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