Thinking About Kaizen - Thinking About Kaizen - A Systems ViewA Systems View

Presented by

Dr. Bill Bellows

Presented by

Dr. Bill Bellows

October 24, 2009

The Second Annual SoCal Quality Conference

October 24, 2009

The Second Annual SoCal Quality Conference

Associate Fellow

Pratt & Whitney Rocketdyne

Canoga Park, CA

818-519-8209

William.bellows@pwr.utc.com

Associate Fellow

Pratt & Whitney Rocketdyne

Canoga Park, CA

818-519-8209

William.bellows@pwr.utc.com

President

In2:InThinking Network

Canoga Park, CA

818-489-3005

bill@in2in.org

President

In2:InThinking Network

Canoga Park, CA

818-489-3005

bill@in2in.org

ABSTRACT: Systems Thinking is one of the cornerstones of Lean, ABSTRACT: Systems Thinking is one of the cornerstones of Lean, but how many of us really understand what it means to be an but how many of us really understand what it means to be an "enterprise thinker?" In the new economy, the proficient utilization "enterprise thinker?" In the new economy, the proficient utilization of thinking will be a necessary condition; fundamental to business of thinking will be a necessary condition; fundamental to business competitiveness. The aim of Enterprise Thinking is to elevate the competitiveness. The aim of Enterprise Thinking is to elevate the consciousness of individual and collective thinking about sub-consciousness of individual and collective thinking about sub-systems, variation, knowledge, numbers, interactions and thinking systems, variation, knowledge, numbers, interactions and thinking patterns.patterns.

Are the following sufficient to be successful in the future?Are the following sufficient to be successful in the future?Continuous ImprovementContinuous ImprovementReducing Cost, Waste, Inventory, Variation, etc.Reducing Cost, Waste, Inventory, Variation, etc.Talking about "Working Together“Talking about "Working Together“Striving for "Zero Defects”Striving for "Zero Defects”Striving for "Zero Waste“Striving for "Zero Waste“Striving for "Satisfaction"Striving for "Satisfaction"Using Metrics for Alignment*Using Metrics for Alignment*

Among the topics of discussion will be the concepts of "better Among the topics of discussion will be the concepts of "better thinking about thinking" and "thinking together." A deeper thinking about thinking" and "thinking together." A deeper understanding of these ideas and examples of their everyday use understanding of these ideas and examples of their everyday use will provide direction for organizations to learn together and work will provide direction for organizations to learn together and work together in new ways. This session will introduce you to these together in new ways. This session will introduce you to these ideas through a series of questions that are specially selected to ideas through a series of questions that are specially selected to create awareness of a new approach to working together, learning create awareness of a new approach to working together, learning together, and thinking together. The presentation will introduce the together, and thinking together. The presentation will introduce the potential energy of integrating the management theories and potential energy of integrating the management theories and thinking of W.E. Deming, Peter Senge, Edward De Bono, Genichi thinking of W.E. Deming, Peter Senge, Edward De Bono, Genichi Taguchi, Taiichi Ohno, and others. Participants will leave with a Taguchi, Taiichi Ohno, and others. Participants will leave with a renewed curiosity about the interdependencies of our enterprise, renewed curiosity about the interdependencies of our enterprise, and new ways of thinking about value and waste.and new ways of thinking about value and waste.

AimAim

Introduce the potential energy of integrating the management

theories and thinking of

and many others...

Dr. W. Edwards Deming

Dr. Genichi Taguchi

Dr. Edward de Bono

Dr. Russell Ackoff

“A product or a service possesses quality if it helps somebody and enjoys a good and sustainable market”

Source: The New Economics, W. Edwards Deming, 1993

W. E. Deming on QualityW. E. Deming on Quality

Production as a SystemProduction as a System

Source: The New Economics, W. Edwards Deming, 1993

Receipt and test of materialsProduction, assembly, inspection

Tests of processesmachines, methods,costs

Distribution

Consumer research

Consumers

Designandredesign

Suppliers of materials and equipment

A

B

C

D

We all live downstream

Deming and ToyotaDeming and Toyota

“There is not a day I don't think about what Dr. Deming meantto us.  Deming is the core of our management.” 

These glowing words were spoken at the 1991 Deming Prize ceremony by Shoichiro Toyoda, president of Toyota Motor Corp. 

Resource ManagementResource Management

Resource ManagementResource Management

● Allocation

Resource ManagementResource Management

● Allocation – Ours

Resource ManagementResource Management

● Allocation – Ours or Mine

Resource ManagementResource Management

● Allocation – Ours or Mine● Focus

Resource ManagementResource Management

● Allocation – Ours or Mine● Focus – Problem

Resource ManagementResource Management

● Allocation – Ours or Mine● Focus – Problem or Opportunity

●Quiz●Present State●Future State

AgendaAgenda

QuizQuiz

What is the leading use of alligator skin in the United States today?

Q1: AlligatorsQ1: Alligators

Describe how to make an Arnold Palmer (drink)

Q2: Arnold PalmerQ2: Arnold Palmer

Arnold PalmerArnold Palmer

Arnold PalmerArnold Palmer

Q3: Pepsi Flavor Profile Q3: Pepsi Flavor Profile

Taste

Time

Possible Answers toPossible Answers toQ3: Pepsi Flavor Profile Q3: Pepsi Flavor Profile

Taste

Time

Possible Answers toPossible Answers toQ3: Pepsi Flavor Profile Q3: Pepsi Flavor Profile

Taste

Time

Who makes the best automobile tires in the world today?

Q4: Automobile TiresQ4: Automobile Tires

Trip ReportTrip Report

ET Organization Non-ET Organization

(physical)

(people)

ET Organization Non-ET Organization

Trip ReportTrip Report

How much time is spent discussing parts which are good and arrive on time?

Q5: GoodQ5: Good

How important is customer satisfaction?

Q6: SatisfactionQ6: Satisfaction

ExpectationsExpectations

Value

Disappointment

Expectation

Expectation DynamicsExpectation Dynamics

Value

Disappointment

ExpectationSatisfaction

Expectation DynamicsExpectation Dynamics

Value

Disappointment

ExpectationSatisfaction

Delight

Q7: The Last StrawQ7: The Last Straw

Q8: GradesQ8: Grades

RS-68

What letter grade is required for all What letter grade is required for all parts purchased?parts purchased?

MaseratiGran Turismo

Q7: Cutting WoodQ7: Cutting Wood

target

Cutting WoodCutting Wood

UpperSpecification

Limit

Lower Specification

Limit

TARGET(desired value of

parameter)

“Loss to Society”

Taguchi’s Quality Loss Taguchi’s Quality Loss FunctionFunction

target

Cutting WoodCutting Wood

“Zero defects is another way of saying ‘do it right the first time’”

Quality is defined as conformance to requirements

Source: Let’s Talk Quality, Philip Crosby, 1989

Philip Crosby on QualityPhilip Crosby on Quality

Q8: AdditionQ8: Addition

What does one plus one equal?

Counting HeadsCounting Heads

AdditionAddition

“You think because you understand one you must understand two, because one and one makes two. But you must also understand and.”

Donella Meadows

Reducing Cost, Waste, Inventory, Variation, etcTalk about “Working Together”Striving for “Zero Defects” Striving for “Zero Waste”Striving for “Satisfaction”Continuous ImprovementUsing Metrics for Alignment*

*without a thinking transformation

Present StatePresent State

“The significant problems we face cannot be solved at the same level of thinking we were at when we created them.”

Albert Einstein

What is needed ?What is needed ?

Thinking that promotes better

discovery

Resource & Relationship Management (Striving for Balance)

Thinking & Learning Together - Then Working Together

Managing Customers’ ExpectationsContinuous Investment Using Thinking for Alignment

InThinking and Enterprise Thinking

Future StateFuture State

“How the world we perceive works depends on how we think.

The world we perceive is a world we bring forth through our thinking.”

H. Thomas Johnson

Enterprise Thinking (9 hrs)(AKA “Understanding Variation”)

Six Thinking Hats (8 hrs)

Kepner-Tregoe(24 hrs)

(Problem Solving and Decision Making)

Leading Systems(12 hrs)

(AKA the “Organization Workshop”)

Managing Variation as a

System(9 hrs)

The New Economics

(12 hrs)

OD(4th week,

Th/Fri, 12 -2pm PT

iscu

ssio

n

ngoi

ng

Understanding Taguchi Methods - Part 2(40 hrs)

UnderstandingTaguchi Methods - Part 1

(40 hrs)

Lateral Thinking(16 hrs)

DATT (16 hrs)irectppliedhinking

Enterprise Thinking (9 hrs)(AKA “Understanding Variation”)

Six Thinking Hats (8 hrs)

Kepner-Tregoe(24 hrs)

(Problem Solving and Decision Making)

Leading Systems(12 hrs)

(AKA the “Organization Workshop”)

Managing Variation as a

System(9 hrs)

The New Economics

(12 hrs)

OD(4th week,

Th/Fri, 12 -2pm PT

iscu

ssio

n

ngoi

ng

(4th week,Th/Fri, 12 -2pm PT

iscu

ssio

n

ngoi

ng

Understanding Taguchi Methods - Part 2(40 hrs)

UnderstandingTaguchi Methods - Part 1

(40 hrs)

Lateral Thinking(16 hrs)

Design of Experiments / Taguchi Methods – Overview (16 hrs)

ools

DATT (16 hrs)irectppliedhinking

DATT (16 hrs)irectppliedhinking

PWR’s Thinking RoadmapPWR’s Thinking Roadmap

RS-68RS-68

Questions/Comments/Feedback:

Bill Bellows

william.bellows@pwr.utc.com

Additional InformationIn2:InThinking Network

www.in2in.org

Questions/Comments/Feedback:

Bill Bellows

william.bellows@pwr.utc.com

Additional InformationIn2:InThinking Network

www.in2in.org