1

What This Workshop Is AboutWhat This Workshop Is About

2

It’s About Change•Changing (expanding) way we think, act, do work•Changing way we compete

It’s about Opening Minds:•Breaking Old Habits•Forming Good New Ones

It’s About Flexible Rather Than Rigid Thinking

It’s About Survival!

3

Wisdom of Retiring ChairmanWisdom of Retiring Chairman

Problem:There was a retiring chairman who wanted to select a

successor from two finalists (A and B). All three of the persons were good at horseback riding. The chairman invited A and B to his farm and gave each finalist an equally good horse. He pointed out the course of the race and the rules saying, “ From this point whosoever horse is slower reaching the final point will be the new chairman.”

If you were a candidate for the job, what would you do?

4

Wisdom of Retiring Chairman:Wisdom of Retiring Chairman:The RaceThe Race

B

Finish Start

B’s Horse

A’s HorseA

5

Wisdom of Retiring Chairman:Wisdom of Retiring Chairman:The RaceThe Race

B

Finish Start

AB’s Horse

A’s Horse

6

Solution:Solution: This rule of horse racing was outside the

habitual ways of thinking of A and B. Both of them were initially puzzled.

After a few minutes, A suddenly jumped out of the constraint of his habitual domain. He quickly mounted B’s horse and rode as fast as possible, leaving his own horse behind. When B realized what was going on, it was too late. A became the new chairman.

7

Implications:

This example shows us that when an event occurs outside the comprehension of our domain we become confused and do not know what to do. Until our habitual domain is expanded, we will not have sufficient confidence to handle the problem. A good leader must have a broad habitual domain to quickly and accurately understand and handle unexpected problems. A person with a narrow habitual domain will have a hard time becoming a successful leader. In order to lead people, we need large habitual domains to understand other people and to help them become better problem solvers.

8

IBM’s MisstepIBM’s Misstep

IBM spent $6 billion a year on R&D, but failed to see that the computer market was shifting from mainframes to PCs. Resulted in their loss of dominance in the computer industry and near disaster for the company.

9

Coca-Cola’s FollyCoca-Cola’s Folly

The Coca-Cola Company was once presented an offer to buy out the bankrupt Pepsi-Cola Company for $1,000, but confident corporate executives refused the offer missing the opportunity to strangle the company that would soon become its arch-rival.

10

Ford’s FiascoFord’s Fiasco

Ford Motor Company president Ernest Breech, when asked if Ford would be interested in manufacturing the Volkswagon after the war, decided it was “not worth a damn” and instead chose to produce the Edsel, which was a $350 million failure.

11

What Causes People to Act… What Causes People to Act… CHARGECHARGE

There was a millionaire who lived in western Texas. He owned thousands of acres of land, a number of oil wells, thousands of cattle, and lived in a huge mansion with an Olympic size swimming pool. One day he threw a party for his only daughter, who was eighteen years old. All of the bachelors around his county were invited. Everyone knew that he was using this party to find a proper husband for his daughter.

12

At about 10 p.m. the millionaire invited all the single men to his Olympic size swimming pool, in which there were hungry crocodiles and water moccasins. The millionaire announced, “My dear young men, to the first brave man who swim from this side of the swimming pool to the other, I will give a choice of three prizes. The first choice is one thousand acres of rich land. If you don’t like the land, the second choice is one million dollars cash. If you don’t want that, I will be happy to give you the hand of my daughter in marriage.” Since she was his only possible heir, by marrying her, a man would be entitled to inherit the millionaire’s estate.

13

As soon as he finished his announcement a young man jumped into the swimming pool and swam as fast as possible across the swimming pool and reached the other side. They said his speed exceeded any Olympic record. The happy millionaire greeted the brave young man and said, “Congratulations! Now you can choose your award. Would you like to have one thousand acres of lands?” The young man said, “No, sir. I don’t want it.” “How about one million dollars of cash?” The young man said, “ “No, sir. I don’t want it.” The millionaire said, “Then I must assume that you want my beautiful daughter.” The young man said, “No, sir.” The millionaire, surprised and puzzled, said, “ Young man then what do you want?” The young man said vehemently, “ I want to know who pushed me into the swimming pool.”

14

The charge or stress for action occurs when we perceive that our current state has an unfavorable gap from the ideal state. If the current state coincides with the ideal state we will have no charge for action. Once in the water, the young man of the above example perceived the danger of the crocodiles and water moccasins, which created a mortally unfavorable gap from his ideal state of security for life. This created a tremendous charge and drove him to swim as fast as possible across the swimming pool. His shock was so great that neither money nor a beautiful woman could fill the gap. No wonder the first thing he wanted was to find out who pushed him into the swimming pool.

15

Questions?Questions?

16

This Workshop Is About Thinking, Acting, & This Workshop Is About Thinking, Acting, & Becoming a World Class ManufacturerBecoming a World Class Manufacturer

By Focusing on Process Capability– Making Process Consistent– Reducing Process Variation

17

VariationVariation

(“The failure to understand variability is one of the major problems facing American Industry today!”)

Variation is a Fact of Nature. No Two Things are Exactly Alike

All Quality Problems are Caused by Variability

Variation Costs…$$$

Consistency (Reducing Variation) is the Method of Becoming World Class Champions

18

Process Consistency Results in

• Increased Quality

• Increased Productivity

• Reduced Cost of Quality

• Increased Profits

• Improved Quality of Life for Employees

19

How to Reduce VariationHow to Reduce Variation

Systematic Fact (Data) - Based Decision Making… Take the Emotion out of Decisions

Statistical Process Control (SPC): Tool for Managing (Understanding, Controlling, & Improving) Your Processes Using Data

(Prevention-Based Quality!)

20

Fact-Based Decision Making: Fact-Based Decision Making: “Just Give Me the Facts”“Just Give Me the Facts”

“In God we trust, but everyone else must bring data.”

“Without data, everyone is an expert.”

“It ain’t the things we don’t know that get us in trouble. It’s the things we know that ain’t so.”

Number & Tools

“When you can measure what you are speaking about and express it in numbers, you know something about it, but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind.”

21

This is the Problem Solving Approach!This is the Problem Solving Approach!All you have to do is count!All you have to do is count!

This is the Problem Solving Approach!This is the Problem Solving Approach!All you have to do is count!All you have to do is count!

2. Measure•What to Measure (Metric)•How to Measure

3. Collect Data

Statistical Process Control Charts…Assure Process is in Control

4.

Access Process Capability5.

1. Process Mapping

22

Cause-- Effect Diagramming…

Identify Sources/Causes of Variation•Over adjustment•Stratification

7.

Validation of Optimal Settings9.

Determine Optimal Settings (From 6 & 7)

•Observation Data: Regression Analysis

•Experimental Data: Design Of Experiments (Robust Design)

8.

6. Pareto Analysis (Attribute Data)

23

Tool Kits (Human Software) for Breaking Tool Kits (Human Software) for Breaking Habits & Forming Good New OnesHabits & Forming Good New Ones

Principles (9)– Deep and Down Principle– Alternating Principle– Contrast and Complement Principle

Methods (8)– Active Learning…acquire new concepts and ideas by

doing Empowering Operators (7)

– How to treat people and yourself

(Proverb: “Happy cows produce better and more milk.”

24

Deep & Down PrincipleDeep & Down Principle

Make time to relax to let your mind be peaceful and open to allow new ideas to come to the surface (Submerge daily priorities)

– How many of you have gotten new ideas when you slept, when on vacation, went for a walk, etc.?

Be humble, thus making it easy for others to offer ideas and suggestions

– Listen to your operators who usually have much insight and who are all too often ignored.

25

Alternating PrincipleAlternating Principle

To counteract the common tendency of always making the same habitual assumptions, this principle urges that assumptions be changed from time to time to see what new ideas can emerge.

(Visioning)

26

Contrast & Complement PrincipleContrast & Complement Principle

A principle Corporate America is repeatedly accused of violating

Principle recognizes that ideas, issues, decisions contrast and complement each other…Tradeoffs– Short run vs. long run goals/implications– Meet production requirements (short run)

irrespective of quality (long run)

27

Contrast and Complement PrincipleContrast and Complement PrincipleOnce there was a young man who lived in the

street. One day a wealthy businessman who had pity for the street person took out $1 bill and a $10 bill. He asked the man to pick and keep whichever he wanted. The street person timidly picked the $1, to the businessman’s great surprise. “How can there be such a dumb person, who would choose $1 instead of $10?” wondered the businessman. At his office, he told this story to his colleagues and challenged them: “If you don’t believe what I say, go and test it yourself.”

28

Out of curiosity his colleagues and friends went to the marketplace with their $1 and $10 bills. The street person consistently picked the $1 to the surprise of the friends. They spread the word and challenged their friends to do the same. Still, he consistently picked the $1 bill. In this way, many people, the friends of the friends and their friends, came to contribute $1 to the dumb man. In one day, he very quickly collected over one-hundred dollars, much more than the original $10 offer. This story illustrates that the supposedly obvious inferior choice could be better than the obviously superior choice in the long run.

29

How to Develop Good Habits How to Develop Good Habits & Keep Them?& Keep Them?

“Practice is the best of all instructors.”

30

Relevance to Process Control Relevance to Process Control Training and Development ProgramTraining and Development Program

Workshop (Phase I): PCB Exercise & Chassis Assembly Simulation

(Active Learning) Implementation & Documentation by

Process Teams (Phase II)

(Practice)

Questions?Questions?