Edwards Deming's warning in the preface to his book Out of the Crisis

Source: [2] - W. Edwards Deming, “Out of the Crisis: A New Paradigm for Managing People, Systems and Processes” / “Out of the Crisis”, W. Edwards Deming - M.: Alpina Publisher, 2017. Scientific editors Yu. Rubanik, Y. Adler, V. Shper. You can purchase the book from the publisher Alpina Publisher

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Management miscalculations in planning and incorrect anticipation of problems led to wasted work time for workers, equipment, and materials, and all this increased the manufacturer’s costs, and therefore the price that the buyer was forced to pay. But the consumer does not like to cover these losses from his own pocket. The inevitable result is market loss and unemployment. Management's performance should be assessed not by the size of dividends in the current quarter, but by its ability to ensure business sustainability and investment protection, guarantee future dividends, and preserve jobs through improved products and services.

The main reason for the sickness of the American economy and the resulting high unemployment rate is the inability of top management to govern.

The reasons for bankruptcy are usually high costs of launching a new business project, exorbitant costs, depreciation of excess inventory, competition, anything other than the actual reason - simple and clear - poor management. What should those who run the company do? It is absolutely obvious that we need to work in a new way. But where can management learn about the required changes?

The truth is that managers cannot learn what they need to do to improve the company's quality, productivity, and competitiveness by relying solely on experience. The answer: “Let everyone do their job as best they can” will not do.

First of all, people need to know what to do. Deep transformations are needed. The first step towards them is to learn how to change, that is, to study and use 14 points and recover from management diseases . Long-term commitment is required of any manager seeking change. new knowledge and new philosophy . The timid and cowardly, as well as those who hope for a quick result, are doomed to disappointment.

Solving problems, big and small, will not be able to stop the decline of the American economy, nor, indeed, computerization , as well as the use of various devices and robotics . The benefits of large-scale implementation of new equipment are also a myth. Universal training of workers at industrial enterprises in statistical methods is also not a solution, nor are mass campaigns to establish quality circles. All this can only prolong the patient’s life, but not stop the disease. Only a transformation of American management style and the relationship between government and manufacturers can reverse the decline and give American industry a chance to once again become a world leader.

The well-being of the company directly depends on the successful work of management. American industry can no longer tolerate managers who bounce around. The senior manager must declare a policy for the future: preserve the business, provide jobs for employees and create new jobs. The manager must understand methods of product and service development, materials supply, production issues, process control, and remove obstacles that deprive the worker of his natural right to pride in his workmanship.

Managers at all levels need basic scientific knowledge for transformation, in particular, they must have an understanding of nature of variation and about operational definitions . Numerous examples in the book show how errors in distinguishing between the two types of variations due to special and general causes and neglect of operational definitions lead to losses and demoralization.