A Systems View of Quality for the 21st Century€¦ · Bill Bellows, bill@in2in.org A Systems View...

Bill Bellows, bill@in2in.org

A Systems View of Quality for

the 21st Century

Presented by Bill Bellows

President

In2:InThinking Network

Canoga Park, California, USA

Email: bill@in2in.org

DARQA Jubilee Conference 2016

Amersfoort, NL

May 26

“A system is never the sum of its parts. It is

the product of the interactions of its

parts………..the art of managing

interactions is very different indeed than the

management of actions, and history

requires this transition for effective

management.”

Russell Ackoff

Abstract

Russell Ackoff 1919 - 2009

Agenda

Quality in the 20th Century

Language

Resource Management

Perception & Thinking

Transmissions

Addition

Taking Tests

Opportunities to Act

In 1982, Larry Sullivan, a senior Ford

manager, travelled to Japan to lead an

internal effort to study automobile

suppliers and the gain explanations for

their “results.” Together, they had captured

nearly 30 percent of the US market share

in automobile sales, beginning with zero in

1950 and growing to 3 percent in 1970.

A summary of his findings were published

in an article for the American Society for

Quality. Excerpts follow:

In March 1982, I was part of a

[management] group [from Ford] that

visited Japan and studied quality systems

at a variety of automotive suppliers.

Source: Variability Reduction: A New Approach to Quality, L. Sullivan, 1983

The most important thing we learned was

that quality in those companies means

something different from what it means in

the U.S. - that it is in fact a totally different

discipline.

In other words, quality in itself has not

been the primary motivation in Japan;

profit is the main objective and quality

(methods) is merely a means to improve

profit.

Over the years, Japanese managers,

engineers, and workers have been very

successful in reducing manufacturing

costs by adopting more enlightened quality

thinking and by applying more technical

quality methods.

Since 1980, U.S. automotive companies

and their suppliers have made dramatic

improvements in quality....In order to

continue this improvement, we must move

out of the traditional realm and adopt more

enlightened quality thinking....Although

statistical methods are uniform throughout

the world, they are applied very differently

in the East and West....

Of foremost importance is the new

definition of ‘manufacturing’ quality as

minimum variation from target.

In 1963, Philip Crosby introduced Zero

Defect Quality:

Quality is defined as conformance to

requirements

In 1989, Motorola introduced Six Sigma

Quality as its own quality management

strategy.

On the reason for selecting “Six Sigma,”

Motorola offered this explanation:

At Motorola, we actually have a measure

for quality which we call "Six Sigma,"

and this literally affects everybody and

everything we do, every minute, of

everyday. Six Sigma is basically a target

based on zero defects per million

manufactured parts.

While terms like Zero Defects and defect-

free quality are now obvious indications of

managing quality through a lens of

interchangeable parts, less obvious terms

associated with this quality model are:

yield (the percentage of parts which

are “good”)

scrap (expenses for the disposal of

“bad” parts)

While terms like Zero Defects and defect-

free quality are now obvious indications of

managing quality through a lens of

interchangeable parts, less obvious terms

associated with this quality model are:

yield (the percentage of parts which

are “good”)

scrap (expenses for the disposal of

“bad” parts)

The Good

The Bad

rework (expenses for the repair of

“bad” parts)

non-conformances (parts which are

“bad”)

process capability indices (various

ratios, Cp, Cpk, etc., which are based

on specification limits)

Cost of Quality and Price of Non-

Conformance (expenses associated

with “bad” parts)

In the late 1960’s, Frank Pipp, an assembly

plant manager for an American automobile

company, instructed his team to purchase

competitor’s cars. His plan was to have the

final assembly team disassemble these cars

and learn first-hand how they assembled. At

that time, if two connecting parts could be

assembled in Pipp's plant without the use of

a handy rubber mallet, then these parts

were known as “snap fit.”

In the late 1960’s, Frank Pipp, an assembly

plant manager for an American automobile

company, instructed his team to purchase

competitor’s cars. His plan was to have the

final assembly team disassemble these cars

and learn first-hand how they assembled. At

that time, if two connecting parts could be

assembled in Pipp's plant without the use of

a handy rubber mallet, then these parts

were known as “snap fit”.

The Ugly

In Pipp’s experience, snap-fit was a rare

occurrence. To his amazement, one

competitor’s car was discovered to be 100%

“snap fit”, for which his division GM replied,

“The customer will never notice.”

Slowly, but surely, customers have noticed

the assembly and performance results that

Pipp’s team found in 1969, when they first

examined a Toyota pickup truck.

In Pipp’s experience, snap-fit was a rare

occurrence. To his amazement, one

competitor’s car was discovered to be 100%

“snap fit”, for which his division GM replied,

“The customer will never notice.”

Slowly, but surely, customers have noticed

the assembly and performance results that

Pipp’s team found in 1969, when they first

examined a Toyota pickup truck.

The Beautiful

Agenda

Language

Resource Management

Transmissions

Addition

Taking Tests

Togetherness

What does it mean

to “work together” ?

What does it mean

to “learn together” ?

What does it mean

to “think together” ?

Together

Taken or considered collectively or

conjointly and without interruption;

continuously, uninterruptedly.

Eat, Join, Drive, Sit, Live, Pull,

Stand, Grow, Sleep, Sing, Learn,

Work, and Play

Together

Antonyms: separately, apart,

individually, alone, and

independently

Synonyms: jointly, mutually,

collectively, concurrently, and

simultaneously

A Lion used to prowl about a field in

which Four Oxen used to dwell…….

Aesop: The Four Oxen and

the Lion

A Lion used to prowl about a field in

which Four Oxen used to dwell…….

United We Stand, Divided We Fall

Aesop: The Four Oxen and

the Lion

Henry Ford

Coming together is a beginning;

keeping together is progress;

working together is success.

Vincent Van Gogh

Great things are done by a series

of small things brought together.

United

Airlines, Technologies, States,

Kingdom, Nations, Manchester, Way

Agenda

Language

Resource Management

Transmissions

Addition

Taking Tests

“The characteristic way of

management that we have taught in

the Western World is to take a

complex system, divide it into parts,

and then try to manage each part as

well as possible. And, if that’s done,

the system…”

Russ Ackoff (w/ W. Edwards Deming, 1992)

“The system as a whole will behave

well and that’s absolutely false.

What’s missing is that the parts

wouldn’t fit.”

Russ Ackoff (w/ W. Edwards Deming, 1992)

W. Edwards Deming

“They would not work together.”

Russ Ackoff

“Good. So it’s the working together

that’s the main contribution to

systemic thinking, as opposed to

working in parts separately.”

“Yes, so easy it is to observe, to see,

to understand, and yet people do not

know about it.”

W. Edwards Deming

W. Edwards Deming Western CT State University, February 1990

Counting Heads

On Baseball (United)

On Baseball (Divided)

Time Management

How much time is spent discussing

parts, tasks, milestones, efforts, etc.

which are good and completed on

Time Management

How much time is spent discussing

parts, tasks, milestones, efforts, etc.

which are good and completed on

How much time is spent studying for

the final exam, questions from weekly

quizzes and the mid-term which were

correct?

Proactive – applying effort while “good,”

“OK,” “well,” or “correct” is happening

Resource Management

Reactive – applying effort after “bad,”

“not OK,” “sick,” or “incorrect” happens

Proactive

Reactive

Resource Management Model

Day One of a Plant Manager

“What should I focus on first?”

What do you think you should

focus on?

“I think I should focus on all the

things which are broken.”

Resource Management

“An ounce of prevention is worth a

pound of cure”

Ben Franklin

“A stitch in time saves nine”

Francis Baily

“Every dollar we invest in high-quality early

education can save more than $7 later on”

Barack Obama

Ownership

Proactive

Reactive

“Mine” “Ours”

Ownership

Proactive

Reactive

“Mine” “Ours”

REFLEXIVE

Agenda

Language

Resource Management

Transmissions

Addition

Taking Tests

Interactions - Gaps Actions - Parts

Actions & Interactions

“A system is never the sum of its parts. It

is the product of the interactions of its

parts………………the art of managing

interactions is very different indeed than

the management of actions, and history

requires this transition for effective

management.”

Russ Ackoff

Actions & Interactions

Task Management

Macro System Model

Managing Actions

Macro System Model

Assembly 1

Task A Step 1

Step 2

Step N

Task B

Task O

Task P

Assembly 2

Product

Assembly

Assembly Final Assembly

Step 1

Step 2

Step N

Step 1

Step 2

Step N

Step 1

Step 2

Step N

Task Completion

Macro System Model

“What we see depends on what we

thought before we looked.”

Myron Tribus

Assembly 1

Task A Step 1

Step 2

Step N

Task B

Task O

Task P

Assembly 2

Product

Assembly

Assembly Final Assembly

Step 1

Step 2

Step N

Step 1

Step 2

Step N

Step 1

Step 2

Step N

Task Completion

Macro System Model

0 10 20 30 40 50 60 70 80 90 100

Task Grades

Interactions, Not Actions

MAX MIN

BORE DIAMETER

MAX MIN

PAGE COUNT

VALVE DIAMETER

Examples of

Action Management

On Bowling Balls

Managing Actions

On Bowling Balls

On Books

Managing Actions –

Business as Usual

On Clothes

Bad Dog

MAX MIN

BORE DIAMETER

MAX MIN

PAGE COUNT

VALVE DIAMETER

DISTANCE FROM THE DOOR

Examples of

Action Management

MAX MIN

HOLE DIAMETER

MAX MIN

PAGE COUNT

OUTER DIAMETER

100 FT 0 FT

Macro System Model (Actions)

MAX MIN

HOLE DIAMETER

MAX MIN

PAGE COUNT

OUTER DIAMETER

100 FT 0 FT

Micro System Model (Actions)

Agenda

Language

Resource Management

Transmissions

Addition

Taking Tests

Meanwhile, Ford learned that Mazda’s

manufacturing focus was to actively manage

the gap between the outer diameter of the

valves within the transmission and

the corresponding diameter of the valve

In doing so, Mazda’s efforts realized the

existence of an ideal gap, resulting from ideal

(“target”) values for both the bore and valve

diameters, with an awareness that variation in

gap size matters.

valve diameter

bore diameter

MAX MIN

BORE DIAMETER

MAX MIN

VALVE DIAMETER

MAX MIN

BORE DIAMETER

MAX MIN

VALVE DIAMETER

Resource Management

Contrast

MAX MIN

BORE DIAMETER

MAX MIN

VALVE DIAMETER

MAX MIN

BORE DIAMETER

MAX MIN

VALVE DIAMETER

The Beautiful The Good and

The Bad

Resource Management

Contrast

MAX MIN

BORE DIAMETER

MAX MIN

VALVE DIAMETER

MAX MIN

BORE DIAMETER

MAX MIN

VALVE DIAMETER

MIND THE PART MIND THE GAP

Resource Management

Contrast

Of foremost importance is the new

definition of ‘manufacturing’ quality as

minimum variation from target.

Genichi Taguchi 1924 - 2012

Specification

target

(desired

value of

parameter)

“Loss to

Society” (a greater system)

Low Loss

Medium

High Loss

Taguchi’s Quality Loss

Function

Agenda

Language

Resource Management

Transmissions

Addition

Taking Tests

Resource Accumulation

-$1,000 -$1,000

-$1,000

-$1,000 -$1,000

-$1,000

Net gain of $7,000 ??

Addition?

$1,000

$1,500

-$10,000

Net gain of $7,500

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

Resource Accumulation

Agenda

Language

Resource Management

Transmissions

Addition

Taking Tests

How did you do on the test?

My grade

My energy

My commitment

Other students

My Professor My ability

How did you do on the test?

Our grade

My energy

My commitment

Other students My ability

My Professor

How did we do on the test?

How did we do on the proposal?

How did we do on the design?

How did we do on the contract?

Awareness Questions

Agenda

Language

Resource Management

Transmissions

Addition

Taking Tests

Bill Bellows, bill@in2in.org Bill Bellows, william.bellows@rocket.com, 818-519-8209

Opportunities to Act Choose Separate or Together

Choose Independence or Interdependence

Choose Macro Systems or Micro Systems

Choose Mind the Bad or Mind the Good

Choose Mind the Part or Mind the Gap

Choose Actions or Interactions

Choose Addition or Super-Addition

“The quality of our thinking

will determine the quality of

our future”

Edward de Bono

Edward de Bono on Quality

A Systems View of Quality for

the 21st Century

Presented by Bill Bellows

President

In2:InThinking Network

Canoga Park, California, USA

Email: bill@in2in.org

DARQA Jubilee Conference 2016

Amersfoort, NL

May 26

A Systems View of Quality for the 21st Century€¦ · Bill Bellows, bill@in2in.org A Systems View...

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