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Dr. W. Edwards Deming Red Bead Exercise PRESENTER: JOHN DYER 15 Seconds JD&A, Inc. - Process Innovations [email protected] (704)658-0049

15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

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Page 1: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Dr. W. Edwards DemingRed Bead Exercise

PRESENTER:  JOHN  DYER

15 Seconds

JD&A, Inc. - Process [email protected]

(704)658-0049

Page 2: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Who am I?30 Years of Process Improvement Experience◦B.S. in E.E. (Automation Focus) and International MBA (Purdue University & University of Rouen, France)◦General Electric (MMP Grad)◦ Ingersoll‐Rand (Bobcat, Club Car, Schlage Locks, TK)◦President of JD&A, Inc. ‐ Process Innovation

◦Contributing Editor for IndustryWeek◦ Judge for “Best Plants” Competitionwww.industryweek.com/author/john‐dyer

Follow me on Twitter: @JohnDyerPI

Page 3: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Levels of CommitmentLevel 1: Tools◦Lean – 5S, Value Stream Mapping, Kanban◦Six Sigma – Statistical Process Control, Pareto◦Problem Solving – 5 Whys, Root Cause Analysis

Level 2: Methodology◦Lean – Toyota Production System, Gemba◦Six Sigma – DMAIC◦Problem Solving – Plan, Do, Check, Act

Page 4: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Levels of CommitmentLevel 3: Leadership, Culture, and Theory◦Lean – House of Toyota built on Dr. Deming’s teachings◦Six Sigma – Motorola built on Dr. Deming’s teachings◦Problem Solving – Total Quality Management (TQM) built on Dr. Deming’s and Dr. Juran’s teachings

Page 5: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

John Dyer with Dr. Edwards Deming

Page 6: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Levels of Commitment

“You cannot have knowledge without internalizing the theory.  Information is not knowledge.  People go to Japan to copy what they are doing there and don’t learn anything because they don’t understand the theories.  I hope they enjoyed the ride!”

Dr. W. Edwards Deming

Page 7: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Looking at the Want Ads

• 6 Willing Workers (Minimal Education Required)

• 2 Quality Inspectors (Must Be Able to Count)

• Quality Manager (Must Be Able to Handle Conflict)

• Data Recorder

Page 8: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Quality Posters

Do It Right the First Time!!!

Be a QualityWorker!

Be a QualityWorker!

Take PrideIn Your Work!Take PrideIn Your Work!

Try a Little HarderTry a Little Harder

Page 9: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Red Bead ExerciseWilling Worker Day 1 Day 2 Day 3 Total Average

Total

Page 10: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Red Bead Exercise

5

10

15

20

25

5 10 15 20 251

# of

Def

ects

Number of Samples

Page 11: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

ProcessInnovation

Normal Distribution Curve

50 51 52 53 54 55 56494847464544

Page 12: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

ProcessInnovation

Normal Distribution Curve

50 51 52 53 54 55 56494847464544

1

Page 13: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

ProcessInnovation

Normal Distribution Curve

50 51 52 53 54 55 56494847464544

68.3%

95.5%

99.7%

Long Term Study

Page 14: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

ProcessInnovation

50 Sample Results Red Bead

Page 15: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

ProcessInnovation

Statistical Process Control Chart

Page 16: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Dr. Deming’s 14 Points1) Create constancy of purpose toward improvement of

product and service, with the aim to becomecompetitive and to stay in business, and to provide jobs.

2) Adopt the new philosophy. We are in a new economicage. Western management must awaken to thechallenge, must learn their responsibilities, andtake on leadership for change.

Page 17: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Dr. Deming’s 14 Points

3) Cease dependence on inspection to achieve quality.Eliminate the need for inspection on a massbasis by building quality into the product in thefirst place.

4) End the practice of awarding business on the basis ofprice tag. Instead, minimize total cost. Move toward a single supplier for any one item, ona long-term relationship of loyalty and trust.

Page 18: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Dr. Deming’s 14 Points

5) Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.

6) Institute training on the job.

Page 19: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Dr. Deming’s 14 Points7) Institute leadership (see point 12).

The aim of leadership should be to help people and machines and gadgets to do a better job. Leadership of management is in need of overhaul, as well as leadership of production workers.

8) Drive out fear, so that everyone may work effectivelyfor the company.

Page 20: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Dr. Deming’s 14 Points9) Break down barriers between departments.

People in research, design, sales and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service.

10) Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity.

Page 21: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Dr. Deming’s 14 Points

11) Eliminate management by objectives.Eliminate management by numbers, numerical goals. Substitute leadership.

12) Remove barriers that rob workers of theirright to pride of workmanship. The responsibilityof supervisors must be changed from sheernumbers to quality. This means, abolishment of the annual or merit rating and of management by objective, management by numbers.

Page 22: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Dr. Deming’s 14 Points

13) Institute a vigorous program of education andself-improvement.

14) Put everybody in the company to work to accomplishthe transformation. The transformation iseverybody’s job.

Page 23: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Excellence is Not…

Page 24: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

ProcessInnovation

Why Improve with Lean and Six Sigma?

Page 25: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

An Actual Example ‐ ResultsStart 3 Years 

Delivery Time – Standard 8 to 12 WeeksDelivery Time – Specials             Up to 1 YearOn Time Delivery – Promise 70%On Time Delivery – Request 40%Quality – Pack 80%Change Over Average 10/DayProduction Rate 1300 +/‐ 1000Average Order Entry Time 3 Days

1 to 2 Days

2 Weeks

99%85%

99.99%

250/Day2300 +/- 14 Hours

Page 26: 15 Seconds Dr. W. Edwards Deming - vtrc.vt.edu · Dr. Deming’s 14 Points 1) Create constancy of purposetoward improvement of product and service, ... Adopt the new philosophy. We

Final Thought

“Progress is impossible without change; and those who cannot change their minds cannot change anything.”

George Bernard Shaw