The New Economics for Industry, Government, Education / Edition 2

The New Economics for Industry, Government, Education / Edition 2

4.5 16
by W. Edwards Deming

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ISBN-10: 0262541165

ISBN-13: 9780262541169

Pub. Date: 08/11/2000

Publisher: MIT Press

"... competition, we see now, is destructive. It would be better if everyone would work together as a system, with the aim for everybody to win. What we need is cooperation and transformation to a new style of management."

In this book W. Edwards Deming details the system of transformation that underlies the 14 Points for Management presented in


"... competition, we see now, is destructive. It would be better if everyone would work together as a system, with the aim for everybody to win. What we need is cooperation and transformation to a new style of management."

In this book W. Edwards Deming details the system of transformation that underlies the 14 Points for Management presented in
Out of the Crisis. The system of profound knowledge, as it is called, consists of four parts: appreciation for a system, knowledge about variation, theory of knowledge, and psychology. Describing prevailing management style as a prison,
Deming shows how a style based on cooperation rather than competition can help people develop joy in work and learning at the same time that it brings about long-term success in the market. Indicative of Deming's philosophy is his advice to abolish performance reviews on the job and grades in school.

Previously published by MIT-CAES

Product Details

MIT Press
Publication date:
Edition description:
second edition
Sales rank:
Product dimensions:
6.00(w) x 8.90(h) x 0.60(d)
Age Range:
18 Years

Table of Contents

Description of Figures v
Foreword ix
Notes to the Second Edition xi
About the Author xiii
Preface xv
How Are We Doing?
The Heavy Losses
Introduction to a System
A System of Profound Knowledge
Management of People
The Red Beads
Shewhart and Control Charts
The Funnel
Some Lessons in Variation
Appendix: Continuing Purchase of Supplies and Services 227(8)
Index 235

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4.5 out of 5 based on 0 ratings. 17 reviews.
Anonymous More than 1 year ago
Demings work on the new economics is a classical example of deep thoughts rooted in innovation to help the manangers of the 21st century to get themselves out of the current holes,the paradox that workers dont try well enough,or dont work well enough. His explanation of common and special causes clearly explains what workers have been through for along time.Once any manager reads this book,his/her performance metrics will change fortwith.It is unfair to purnish workers in the way of ranking and merit hoping that poor the performer will pull up their sox(es),the real problem is the system.Get it fixed!management need to stop pointing fingers at the frustrated worker get solutions for variations on quality. Look at schools,its the same thing,points,scores,who scored what?instead we should be asking who learnt what? Any student of managemnt must read and understand the experiments on the red beads and understand the funnel experiment too,to appreciate the variation that exists in our curent econonmy,that way,we shall be on same page,at least with Deming's thoughts. Deming may have sounded harsh to people but his way of challenging the status quo is unmatched. Stdents of management ,go ahead and read this book,you will confirm its a good read.
Guest More than 1 year ago
When I first got this book I was a little worried about having the time to read it since I knew it was about Deming¿s System of profound knowledge. I thought the idea he had would have been complex and hard to understand in the first read, but when I picked it up to read it, I found it was actually a fairly easy read. His ideas and concepts seemed to make a lot of sense and gave me a better understanding of thinking in terms of a system. After reading the book I realized all he was trying to do was paint the bigger picture for managers to understand. As we see in his experiments it does not matter how willing the worker is, they will still have some defective parts if the system they are using has a lot of common cause variation built into it. Also the quicker management understands this idea the better off their company will be. From looking around at businesses after reading the book this idea of competition has become more obvious to me. I think this book is a great book to read if one was looking for how to understand the idea of system thinking as well as looking to implement a quality system into their company.
Guest More than 1 year ago
It is a well written book that should be read by industrial engineers and those in management positions. Deming gives many resons why the present style of management fails and what their new approach should be to improve their system. He also provides good explination and gives good examples for the readers so that they understand the difference between common cause and special cause variation, a subject that those in management positions have trouble understanding and can very well save them losses.
Guest More than 1 year ago
Perhaps the best and most easy-to-read work by W. Edwards Deming. Deming provides a clear explanation of 'profound knowledge,' which is what he felt is required for a leader to transform an organization into one that is a sustaining high performer. I have read the book several times and find that I learn more each time I read it. It is an absolute must read for anyone leading (or aspiring to lead) a team.
Anonymous 6 months ago
The New Economics for Industry, Government and Education by Deming was a very interesting read because of his unique philosophies on management. Overall I enjoyed the book and agreed with a lot of Deming’s ideas on the school system, such as ridding ourselves of the merit system, teaching our children how to work together, and that learning should be about helping children to understand what their strengths and weaknesses are. However, in this case Deming only states that this is a problem and never proposes any specific solutions. I have trouble agreeing with someone’s idea if it doesn’t have a solution to fix the problem being presented. The reason we have the merit system in school is primarily to show how well one understands the material that they were taught and if they are ready to move to a new subject. I know the system isn’t perfect, but without some way to test knowledge, it makes it difficult to progress in learning through a standardized system. However, I agree with a lot of Deming’s points on management. Deming explains how the system that we commonly use for the management of companies needs to change; using the merit system and forcing people to compete within the workplace will hurt a company in the long run. The example he used to prove that change is needed in management was the red bead experiment; in this experiment one has a container that has 3200 white beads, 800 red beads, and a paddle that can pick up 50 beads at once. The object of the experiment is to scoop up only white beads, however you cannot sift through them. The red beads symbolize someone doing a poor job, so the only way to prove that you did a good job is by getting no red beads, which is of course nearly impossible. Because of this, the experiment illustrates that the theoretical workers have no control over whether they do a good or poor job. An analogy here is whoever gets the least amount of red beads will get a raise while whoever gets the largest amount of red beads will be fired. This is a simple way Deming shows how being on the merit system in a company oftentimes isn’t effective, because of the amount of luck that’s at play in the workplace. His solution for the problem of the merit system is to get rid of it and make an environment where workers work as a team and the management’s job is to support that. A manager can do this by implementing Deming’s 14 points of management, where the manager is more of a person that helps to support the workers and know his or her team well enough to understand their strengths and weaknesses. I agree with Deming that this will make a better working environment and should increase the efficiency therein.
IME415NataliaAzoqa More than 1 year ago
W. Edwards Deming's book, The New Economics, was really interesting because he was very strong on his opinions on how to run a system or a company. He had a lot of harsh things to say about management in the process, but I enjoyed understanding the deep-rooted information based off his 14 points for management. Even though Deming is a little all over the place when it comes to reading through his book, it is still very to the point and easy to understand if you just focus chapter by chapter.  One of the things I really liked that Deming pointed out was how knowledge is the most important thing. It goes under point 13, which is to institute a vigorous program of education and self-improvement.  His first point, which I really thought was interesting, is to create a constant purpose towards improvement. Deming stated how companies need to be continuously improving and thinking about the next big idea. Another company will always come along and invent it no matter what and your company could be out in a heartbeat, even though customers loved the product and loved the service. Reality is that when something easier and more manageable comes along, customers don't hesitate to switch over.  The last point I want to talk about is point 8. This is about eliminating fear in the work area. When workers have fear installed in their minds it just pushes them sometimes to tamper with data. By having a positive atmosphere in the work area, it allows workers to express themselves and their opinions without fearing for their job security. The company could be better as a whole and the system is more capable of continuous improvement.
Ruben-Amaya More than 1 year ago
The New Economics by Edwards Deming is a great book to read if you are interested in improving your company. This book is tough to read because he not worrying about how to format the book but instead he is trying to get his points across on how out economic has been declining for three decades. He first points out that when having a business you may not want to just look at your product quality and how sales are doing right now but to look at the future of your product. He wants all businesses to see the product and how it will fit in the future because you might be making your product with great quality and have high sales but in 5 years your product might be obsolete. He gives great examples on what not to do and gives some solution to prevent this problems. In this book I enjoy how he is letting management know that the style that they are using is no good and will cause harm in the company more than good. He gives many reasons why ranking employees will cause harm to the company. When I was working for a certain company I notice a manager who uses the wrong practice according to Deming. When looking back if the manager would read this book and implemented some of the recommended practices that Deming suggested I think the workplace would become a better environment to work in. In the book I enjoy how his 14 point for Managing and PDSA Cycle for continual improvement. These points are great to know because I can now use them in the future after finishing school. So overall this book is really good to read if you want to know how to improve your company or your management skills. He is consider the Quality Guru and this book shows why he is called that.
Anonymous More than 1 year ago
Let’s first start with the title. The book’s title was very vague to me. If this book was not given to me by my Engineering statistics professor, I wouldn’t think that it would be about improving a process system. This may sound so stupid to say but the first thing I would say about the title was that the book may be about the subject economics. I would seem like a mini lecture book on the subject itself. But upon reading the content of the book, overall, Deming’s book was good and informative. Even though, he seemed so biased and hates so much on the American management, Deming talks about a lot of big concepts that the any company or working group should be recognize such as tampering their process (Funnel). I highly recommend learning the 7 deadly diseases of management. Here, he discusses how to manage our own time and skills well, as well as others--- anything that could really improve one’s company or to just keep it in business. He also says learning more about the roots of the company, even though it takes a long time. Knowing everything about the company will help management build a strong foundation in their company. Having visible figures or numbers to prove the company’s standing in the industry is a better way to look at the company’s “health” than just knowing you have a happy or satisfied customer.I would recommend this to all college students or any worker who are looking to improve their leadership skills or get into management—an American or not. I say “American or not” because he puts so much emphasis on what the Americans are doing wrong and as a foreigner living in the U.S., I still think this book is applicable to my country, Philippines. MGarbo
Anonymous More than 1 year ago
In the new economics, Dr. Deming begins by confirming that the United States has being losing ground on the manufacturing area for a really long time. He blames management for the lack of improvements and quality in the workplace. Management is in charge of providing the tools needed for the workers to do their job. I enjoyed reading about his red bids experiment where the worker is getting rewarded for a “good job” and punished when he does a bad job. Similarly, when Deming discussed about salespeople, he believes they should be paid a salary because this was older salesman will help beginner salesman who would no longer “steal” business from other co-workers. A salesman on commission will try to sales as much as possible without caring about the quality of the business. Quotas force the salespeople to bring bad business to the companies. Most of the floor workers have no formal education or power to make the necessary changes to improve on the quality of the products. Management is in charge of providing the tools for the floor worker, and the job should be design in a way that anyone can do the job. JRCanas
Anonymous More than 1 year ago
Anonymous More than 1 year ago
"W Edwards Deming The New Economic for Industry, Government & Education" is an educational tool for an engineer and businessmen who are in management levels. The book brings helpful understanding in  the importance of management level positions and their leadership roles within a company. I believe when anyone reads this book their attitude and quality of work will be affected for the better of not only themselves but their company as well. The author points out Deming's clear message to eliminate faulty blame and acquire solutions in organizations and control of variables in the workplace. The theory of Profound Knowledge is considered one of the main theories in the book that explains the variables and solutions to issues of the organization in a production environment. The main point of this theory is to understand the whole system, you must start from the beginning at each individual stage or part; and from there it will effect the whole system in order to reach its maximum goal. One of the best parts of the book is the elaboration of Deming's famous "red bead experiment" which describes and allows for understanding of common cause variation. I highly recommend this book for its: short length, easy read, understandable, and examples for further understanding.
Anonymous More than 1 year ago
The New Economics is written by one of the great quality guru’s Dr. Deming. The 2nd edition provides concise fundamentals in the understanding of Quality. Deming emphasizes the importance of any company to have goals or aims. Deming criticizes the organizations that lack long term goals since they only reward workers and not results. Deming provides information for the discipline of managers by making them aware of basic statistical theory which considers variation that arises in company processes. He provides different examples that help make management stronger, by encouraging them to be more proactive rather than intimidating. Deming lastly introduces his simple lessons in variation which help management identify any common issues that may be present into two categories; one which pertain to operator and one inherent in a process. This is a great read for an upcoming manager or current students…highly suggested
1153 More than 1 year ago
In The New Economics, Deming mentions that there is a need for transformation of the prevailing style of management; hard work is just not enough.   He portrays his ideas in one of the greatest contributions to the world of management and quality; Deming’s System of Profound Knowledge.   The honesty of his ideas regarding the lack of fundamental skills of management is brave and encouraging to those who are involved in that sector of the system.   He emphasizes the importance for management to understanding variation, “including appreciation of a stable system, and some more understanding of special causes and common causes of variation, are essential for management of a system, including management of people.”  Dr. Deming elaborates on why managing by results and rewarding people for reaching targets set by management encourages destructive competition that can prevent employees from working collaboratively to strive for the overall benefit of the system. He presents this idea in addition to explaining that variation is always present in his well-known practical example of the Read Beads as well as the Funnel.   Throughout the book, Deming engages the reader to understanding that to achieve better business results, leaders and upper management are the ones in more need of applying basic techniques to interact between people and think of their business as a system rather than seeking individual results. By reading these easy to understand but rich words of wisdom, those involved in the world of quality or holding a management position will realize that management should commit to long-term thinking instead of changing strategies to make current reports look good as conveyed in Deming’s 14 points.
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Guest More than 1 year ago
The New Economics: For Industry, Government, Education W. Edwards Deming After reading The New Economics and learning more about Deming I have come to the conclusion that he is extremely easy to understand and follow. I feel that this book is a good read because it is really easy to understand the concepts that Deming is trying to get across. These concepts are very effective and proven by Deming in his examples and experiments such as the Red Bead Experiment and the Funnel Experiment. Deming¿s explanations of the differences between common cause variation and assignable cause variation were very simple and to the point. These experiments will help remind me the differences while working in the field in the future. Deming¿s approach to helping businesses is a key point in the book. He strongly believes that the managers and upper management is the main problem in many companies. These employees are always passing on the blame for common cause variation to the lower grouping of employees. Deming, in my opinion, is very straightforward in his writing and cares about helping companies excel. Overall I feel that this book is an excellent book to read and understand before stepping into the real world of work.
Guest More than 1 year ago
Critique W. Edwards Deming¿s work at your peril. After all, he probably set whatever standard you¿re using. This volume ¿ revised by the author before his death in 1993 and partially based on his 1950s work with the Japanese ¿ may strike the contemporary reader as a curious mixture of seminal process thinking and idiosyncratic ruminations on education. Portions read like an artifact of the early 1990s, but in this regard, however, his volume offers a unique perspective on a turning point in American economic history: the shift to the knowledge-based economy. We at recommend Deming¿s volume to any serious student of management thought, and all human resources professionals should familiarize themselves with his work, which set the foundations for many of the transformations now underway in the corporate world.