Red or White ? Decisions for Selecting Wine and Improving Quality

1. Red or White?Decisions for Selecting Wine and Improving Quality Presented by Bill Bellows President In2:InThinking Network, Canoga Park, CA, Email: bill@in2in.org Associate Technical Fellow & Lead Enterprise Thinking Network, Pratt & Whitney Rocketdyne Canoga Park, CA, Email: william.bellows@pwr.utc.com January 27, 2010 SCQAA – SFV Chapter Canoga Park, California

2. Abstract: Whether dining at home or in a fine restaurant, there are many decision to make from the appetizers to the meal selection and then dessert. If wine fits the occasion, one of the  important decisions is going to be is select the appropriate red or white wine. A decision that can impact the taste and success of the dinner. We have the same kind of decisions when we are trying to improve quality in our operations, like which processes to improve, how important is customer satisfaction?, should variation always be reduced?, are capability indices such as Cpk meaningful measures?, is the achievement of “zero defects” the end of quality improvement?, should we continue to focus our quality efforts on part quality or move to relationship quality?

3. Abstract: The aim of this presentation is to reflect on the decisions made to select a bottle of wine for dinner and link this to the traditional decisions made in quality improvement efforts,  in this way, we can improve the analysis and execution of our quality improvement projects, gaining the operational advantage to our organizations.

4. Takeaways • The limitations of the popular focusing on customer satisfaction and striving to reduce variation • The opportunities for moving from the "Old Economics" of the quality of parts to the "New Economics" of the quality of relationships • Why Genichi Taguchi's Quality Loss Function is a "better description of the world“ • An invitation to learn more about efforts underway for 10 years at Pratt & Whitney Rocketdyne to bring the ideas above in to daily practice

5. Agenda • Aim • Quiz • InSights • Interchangeable Parts • Better Thinking About Thinking

6. Aim Introduce the potential energy of integrating the management theories and thinking of Dr. Genichi Taguchi Dr. Russell Ackoff Dr. W. Edwards Deming Dr. Edward de Bono and many others...

7. RS-68

8. Quiz

9. Wine Q: Are you having a glass of wine? A: Yes Q: Why don’t we buy a bottle? A: Sure Q: Red or white? A:

10. Q1: Alligators What is the leading use of alligator skin in the United States today?

11. Q1: Alligator Skin

12. Q2: Arnold Palmer Describe how to make an Arnold Palmer (drink)

13. Q2: Arnold Palmer

14. Q2: Arnold Palmer

15. Taste Time Q3: Pepsi Flavor Profile

16. Taste Time Possible Answers toQ3: Pepsi Flavor Profile

17. Taste Time Possible Answers toQ3: Pepsi Flavor Profile

18. Black & White Absolutes Good/Bad, Up/Down Categories Shades of Gray Continuum Relative Wholeness Styles of Thinking

19. Q4: Automobile Tires Who makes the best automobile tires in the world today?

20. ET Organization Non-ET Organization Trip Report

21. ET Organization Non-ET Organization Trip Report (physical) (people)

22. Q5: Time Management How much time is spent discussing parts which are good and arrive on time?

23. Q5: Time Management

24. Q6: Satisfaction How important is customer satisfaction?

25. Q6: Disappointment

26. Expectations Value Expectation Disappointment

27. Expectation Dynamics Value Expectation Satisfaction Disappointment

28. Expectation Dynamics Value Delight Expectation Satisfaction Disappointment

29. Q7: Counting Straws

30. Q8: Grades What letter grade is required for all parts purchased? Maserati Gran Turismo RS-68

31. Q9: Cutting Wood Given a piece of wood that will be cut into 2 pieces.... how many lines will be drawn across the top face before the cut is made?

32. Q9: Cutting Wood target

33. Q9: Cutting Wood target

34. Philip Crosby on Quality • “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

35. Genichi Taguchi on Quality “Quality is the minimum of loss imparted to the Society by a product after its shipment to a customer” Source: Introduction to Quality Engineering , Genichi Taguchi, 1983

36. Frequency 350 LOWER SPEC LIMIT 295 UPPER SPEC LIMIT 300 250 206 200 166 150 121 101 100 80 42 50 31 12 1 10 7 5 2 0 0.2298 0.2300 0.2302 0.2304 0.2306 0.2308 0.2310 0.2312 0.2299 0.2301 0.2303 0.2305 0.2307 0.2309 0.2311 0.2313 Hole Diameter, inches Defects

37. Taguchi’s Quality Loss Function “Loss to Society” Lower Specification Limit Upper Specification Limit TARGET (desired value of parameter)

38. A Better View “The Taguchi Loss Function is a better view of the world” W. Edwards Deming Source: Out of the Crisis,W. Edwards Deming, 1986

39. Q10: Addition Under what conditions does one plus one equal 2?

40. 10: Addition “You think because you understand one you must understand two, because one and one makes two. But you must also understand and.” Donella Meadows

41. InSights

42. Present State • Reducing Cost, Waste, Inventory, Variation, etc • Talk about “Working Together” • Striving for “Zero Defects” • Striving for “Zero Waste” • Striving for “Satisfaction” • Continuous Improvement • Using Metrics for Alignment* *without a thinking transformation

43. Assumptions • A better way to operate an organization is to invest resources with the ability to manage customer delight, satisfaction, and disappointment • Better investment results from discovering opportunities to invest • The discovery of opportunities for investment is limited by how thinking is conditioned

44. What is needed ? Thinking that promotes better discovery

45. Future State • Resource & Relationship Management (Striving for Balance) • Thinking & Learning Together - Then Working Together • Managing Customers’ Expectations • Continuous Investment • Using Thinking for Alignment • InThinking and Enterprise Thinking

46. InThinking InThinking is about a transformation of the ways people think into effective predetermined patterns and sequences of thinking. The organization of thinking itself and the awareness that there is a choice of alternative ways of thinking when creating better solutions, presents a significant and exciting departure from traditional approaches.

47. InThinking & Enterprise Thinking Increase individual awareness on thinking (InThinking) Evolve the way we behave Evolve the way we think together (Enterprise Thinking) Evolve the way we run our organizations

48. BetterThinking About Thinking

49. In2:InThinking Network The In2:InThinking Network was formed in 2001 by a group of students of the work of W. Edwards Deming and related theorists. The aim of our network is to make thinking about systems, variation, knowledge, and psychology, and their interaction – which comprises Deming's System of Profound Knowledge tm - more conscious. We believe that such thinking about thinking, which we call "inthinking," will allow people to better perceive relationships and interdependencies in human endeavors, and consequently act to make those endeavors more valuable, more satisfying, and more joyful.

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