Simulation: LeanSigma Game - Round 1

 

Run a Better, Faster, Leaner Business

 

Lesson Info

Simulation: LeanSigma Game - Round 1

Let me open it up for questions is susan you have any questions on requisition? It just says to collect five to eight signed for him so I can do it in any order can I do like five first time six yes. So your your batch ing in fives sixes, sevens or aids? Okay, your change it up you could changes out okay? Absolutely. You could try to beat the system. Are you thinking of ways good. Alright, so susan's you but you're all set you uh you got everything you need right there and by the way, your your incented by this company to get out there in sell, sell, sell so streaks fill the pipeline. All right, you get too. You get a bonus at the end of this if you, uh you know, you feel that pipeline all right, this is this isn't classic incentive system. She's ready to go. All right, you're gonna hand off tow. Kurt kurt, do you have any, uh, any questions? I think I understand the diamond roll I just image should ask my manager if I do go into overtime is the lady great? Same with a little more? Wel...

l, we're just keeping things as they are so stick to the rules in the procedure he's trying to make more money already know all right good so after diamond goes to red circle all right cat any questions I pick up the diamond and I add a red circle inside of it that's correct? Actually kurt's going to deliver it to you he's kind and you are going to put a red circle inside each diamond you red circles can't touch the diamonds all right they fit it's gonna be hard but I have a lazy eye but I'm gonna try yeah so you're going to get those and then kate's gonna you're gonna give it to kate kate's gonna check the work if it's a dot placement issue the dots will come off the paper so that's a rework if there's an error with the diamond or something like that that you determine is uh scrap you could just uh strap it okay all right or you talk to your manager about what to do. So if there's something wrong with the diamond then it's scrapped and if there's the circle is not within the diamond then it's reworked typically you could scrap anything it's your call you're the review department but you could talk it over with the gem maria's well, yes soon rework anyone know the part where it came from that's where it came from so we go back to the department it came from to the specialists they're the only ones who can do the real work all right so you can't do the real work you have to send it back to get re work but you keep track of how many went back all right okay so assuming it's good you're going to sign off on it you're going to deliver it to yellow circle all right jane you're goingto that those yellow circles inside those rings uniforms all right, I'm doing that's all you're gonna do welcome standardisation nice peaceful way there we go just relax get those red yellow dots done nice and pretty that perfect that we're going to get checked then by kimberly alright same processes it good is it not good sign off right back to susan yes if I do if it does need to be reworked do I tell them the issue or just hand it back? Yeah well you make sure they understand what went wrong here broke the ring or something like that okay and there's likely to be a little chaos a little confusion guess what that's actually really world I see it every week all over the world by going to the organizations where people aren't quite sure what to do they're not really sure what the customer wants they don't even know the customer is in a lot of cases all right it's just that they're just trying to get through the day and do the best they can and uh so this just simply reflects a very common current state and then it gives us a platform that we're going to build on the rest of the, uh the session all right um good. So all right, we will uh we'll go ahead and begin the game right now. All right, so now I'm going to play the role of just commentator here that's that's appropriate through one noise everybody okay? I'm gonna keep an eye on things make sure everybody's doing it doing their stuff so the customer now has just you know, the order's gone in and I'm I'm waiting so I'm waiting for a delivery and I've got other things to do of course but uh I'm very curious as to when I'm going to get this delivery so matt I'm not disgruntled in any way yet but you know time is time is money and time is value to me so I might just be wondering when am I going to get my my first delivery? Uh gian maria you got any idea I'm going to proactively call you on the phone? Okay. Hi. Hi, john. How are you? It's it's show marie the manager of the product's good. Well, hello there, john. Right it's nice to hear from you. You know, I just place a big order with you and I am not eager to get it because I've got I've got customers waiting on it as well just wait value your business and we want I wanted to proactively call you and let you know that we're on top of it you're at the top of our list our team is doing their best and they're working very hard and diligently we want to make sure to get you the best products not just I love it I love it now but before we hang up can I can I ask you if you could give me an eta on this an estimated time of arrival so to speak when matt I get this first order well how about this why don't I just reach back out to you when we get a little bit closer and then and then I'll be able to give you a little more of an estimate okay then all right let's do that okay alright perfect thank you thank you I have a question if there's there's five in the packet four of them are good and one of them is going to be sent back to the whole packet gets sent back or the whole packet gets sent back okay but you know in a scrap it then you have to remove from one from the packet but you are not equipped to remove it so the removal operations over here susan's got the removal device but now if you go from a packet of five to a packet of four that's against policy so if you take one out of a packet of five because it's no good susan would have to say bad one back into it which would have to then go through the proper work it or send it back to be a reward. Yeah, so we have a strict policy teo deliver these and to patch him in five sixes sevens or eights now I have an observation, john it seems that process already seems incredibly slow to me outside who doesn't work for this company? It seems that everybody else is waiting in the process line. They can't do anything until the first stage is complete it it's a great observation, jaco. So here's, what companies do because of imbalances, they load their system up with a lot of work and I purposefully stripped all of the work out to start this round one with no work in process s o that were not disguising the waste because inventory disguises the waist. How many people do you know who don't have a full inbox? Okay, a backlog of e mails, a backlog of work to do so we all come to work and we have a backlog of work to do so it looks like everyone's busy, they are busy, but this is where we're confusing activity with productivity busy doing what is the question to ask? So we've got all this activity going on all this action all this business and we call that business that's not smart business so by stripping out the inventory in round one we're actually much it's much easier for us to see imbalance so we see people without enough to dio and we see people with overwhelming amount to d'oh okay? And then we see susan who's giving up her bonus because she's not filling the pipeline like she's supposed to be get stuck with work in process yeah, but your manager over here saying you're not you're supposed to be filling the pipeline you are but you know I also want to let you know that we appreciate you and that every one of you is doing a fantastic job so just keep it up I'm blaming the manager for all of this I'm just following the rules here I'm just following for seizures so I'll tell you what is again it is a business consultant going into businesses all the time large and small business managers are often just as frustrated as everybody else because they've got their hands cuffed by policy by procedure um you get into turf battles and politics departmental battles, silos you disconnected it's going on all the time so we're just simply simulating that very thing here by saying you can't go ahead and start making changes okay now I think I'd like to hear from the online community what their observations are the's challenges is this sort of process something you're familiar with that you've been struggling with in your business or companies that you've worked for? It's definitely joining the conversation let us know in the chat room is what your thoughts are on the way this game is playing out now if you got anything to approval yet, not yet, but but we have got something to review already. Okay? Yeah. Okay. Um, can we ask questions why we're doing this? Yeah, you can ask me questions I simply running out of red circles tonight, so as soon as you have an empty sheet, you khun turn in the empty sheet for full sheet over its susan's it's our control policy. Okay, we're treating those dots like controlled substances. I have another question. I seem to have a lot of free time on my job. Can I jump on facebook while I'm waiting? Yes, you probably do that from time to time at work way do know people who find something to do to fill their time. It's very rare that you walk into an organization and you see people just with absolutely nothing going on. All right? People find a way to fill time just like they find a way to fill closets we always hear this complaint about closet space. I need more closet space when in many cases it's not the closet space it's it's all the clutter we have in the closet we do the same thing with time we just keep filling time with clutter ah and we just uh we lose effectiveness so here we've got uh susan's given up her bonus again incidentally, we are uh we're now at about uh six minutes so it's six minutes I still nothing I'm wondering when that phone call's going to come back in calling you right now so wait, we have our first order all right? What's that staple in it so make sure to staple comes out you know that your first order is on the way and being delivered to you right now that needs to be delivered in aids so they make sure you've got eight okay, that was that's policy it's right there on the sheet delivered eight habits. There is a little bit of confusion there actually still assembling a few pieces but they will be on the I didn't mean to jump the gun there and get you excited, but but we would like teo to appease you in the meantime, is there something else that we could do for you? Would you like assisting you some coffee or well, I'm here yeah, let me share with you some is some insights I've got I've got competition of yours now calling me up way have talked about that and they're promised me and me some amazing results in numbers I I honestly don't think I can believe them just yet yeah I wouldn't you know let's just let's just actually just wait because once you have these products in your hands it's gonna blow you away it's really you're gonna be amazed and won't even ever think about it when the competition calls because really it's equality and the price right that we're going for well that's what I'm looking for I'm looking for well number one I need what I need because my clients are waiting my customers are waiting I need good quality it's no sense in sending me stuff that I can't use yourself exactly right um you know our price we've got we've got a competitive price right now I think but I have to share this my business is going through a lot of change and we're doing this thing called lean six segment out our company we're going after best practices around the world and one of the best practices is learning to get our inventories to flow better orchestrating the work in a more balanced harmonized way and uh I'm I'm at a loss right now I feel like my my actual job is being threatened because I'm I don't look good I'm really sorry to hear that I just let you know we're going through that same process too we must we must be on honest similar level so we do we do actually share similar goals and I just wanted you to know that we we do we do understand that there's change going on it sounds like our company's heir growing together so I hope so so so just distressed a shirt it's on the way I can assure you of that for sure I'm just curious here because I'm hearing an awful lot of management speak coming out of the mouth of the magic I appreciate that she's been trying to pacify you have not heard the manager one address for the team well I don't want to put my customers on hold while I'm talking about them so but can I can I actually call you back or do you want to actually make sure that I'm on the floor addressing this and just, you know, really keeping an eye on where things are at exactly yeah yeah that would help because because visibility is a very important thing to me now whereas it's like with federal express ups I can click on a link I can see where my package is domino's is doing that now with pizzas I mean I I want to be able to know where my stuff is so I could get prepared be ready for it and I'm just at a complete loss right now I don't know well I haven't any avery can you give me a readout on the quality expectations of these lines? I could draw the much faster without a ruler but they are perfectly straight we're actually going for a perfect straightness we kind of need to stick with the way that we've been doing things for right now through that down the line we might do things a little differently but let's just stick with that and maybe there's an an alternate way too within that those parameters thank you so I wanted to call our customer and see how you're doing there john are you are you happy or you taking a look at everything? I just yeah I got eight delivered but I can't accept any of them I think so we're gonna have to keep going I'm sorry we are the biggest problem is there's tails on the diamonds so they're they're they're not all exactly the same there there the lines they're running past the dots so let me asking is the straightness of the line is in porton straight they do need to be straight and there's one that there's one that has a dent in it but the rest are all straight so there's no problem with the straight the straight lines ok which is really important to you it's the tails yeah can't have tails okay gotcha all right well, you know we'll just have to do a re order here and again I'll keep keep me posted on the progress of things again consider me your tracking on that I'll keep in touch okay? Just maybe there was some misunderstanding, but there's just pour that never happens in the real world does it perhaps and accept our apologies are our apologies and also our promise that we're back on it again by the way, I'm loving new yellow dots the yellow dots are beautiful, you must have an artist or something in the yellow dot department she's she's, she's she's using both sides of that brain to get those dots right down the center it's just beautiful. I want to ask the manager questions so you got the feedback from that? You've got the feedback you happy is not having what steps you take. Well, I know that the straightness is important, so we're going to need to stick with the ruler. I wanted to talk with our diamond there's an issue before you before you keep moving forward, we need to make sure that there's no more tales or any sort of exit lines it needs to be a perfect straight diamond that, you know, touches you way can't have any tails now I understand that, but how did you even get into the customers? Um through a gps system called susan delivery who approved the world to give to you that's a good point, so kimberly I'm talking talking and talking what is the manager do you think the situation I think I'm seeing a lot of my play I'm seeing an approval process it is approving wrong stuff I'm seeing deliveries sort the wrong plan that's actually really good point and I'm glad that we have an outsider consultant here point of view it that way so kimberly before you before you move forward I need you to make sure that you're checking on the diamond specifically our clients really happy with the yellow dots really loves yellow dot diamonds and the tail's coming off for an issue so we're gonna have to send it back and make sure that you know that does not get approved do not um talk about the diamonds at all should I change what my initial task well no not not change changing it but actually I would not be the review department this would be the review okay sorry I'm talking to the wrong person that that never happens yes so kate we're going to make you know since you're working so closely with the diamond department and that seems to be where we're having some of our issues I want you to really work more closely with him make sure that they're getting all those diamonds inside inside of the yeah before they move on on biff and if you need anything for me please let me know what you can to make sure that happens. Well, we have a tail here so we're gonna have to rework this one so does it go back to susan's department to start over it will have to start over again completes aaron pen that's gonna be awful hard we work what way? He's a pencil for the diamonds that's just that's not the way we do things so unfortunately no another one is eight here all right, well once one's not gonna work it's got a tail it's got a tail it's got a couple of tales today is your resume I'm thinking I'm going to get it up I'm gonna take this one I got one so everybody could stop now let's get the official time all right, it's uh I might need to get some diamond training I apologize but we might need to invest in you a little bit with some training I think I'm still a diamond in the rough way. Uh, no, I wasn't but I should have probably assumed knowing my customers wells I do I should have been striving for more curious because I mean, I asked the question before quite a way back, but honestly, jane, you did ask quite a few questions about your role nobody else really seemed to be asking questions I mean, you didn't ask that kind of detail question did you feel that really you got it I wanted to die or did you really feel that wasn't you just had to get on with it except what were the challenges that you people playing the game? Yeah, please can I like my job was sort of repetitive I wanted to start taking circles all around a variation you came in for a hard time susan's requisition you were handing off stuff that wasn't acceptable, right? No, my issue was the I didn't read the final deliver eight forms to the customer I didn't read that I got the first five thought I was done had gone through the review department and I gave it to the customer at five. Now review and approval you both obviously but there was some challenges here did you feel you had all the details? You need it when you were hearing all these have tails was that something that you know this is completely new to me? Yeah, I didn't realise that it all until he returned it the first time that it couldn't have tail right exactly and there were still things in the process after we identified the tails. We're still putting red circles on the triangles that were on the diamonds that were incorrect because nobody told us not to, so we were ways, so that was my fault I'll take full blame for that and yet we will try again hopefully well, let's, just yeah, kurt observation. Because the chart that you talked about silos, etcetera and improving within your silos, I got you saw realization of that here. When I'm drawing the diamonds, I started to learn that if I drew all the lines and one particular direction in a particular order and foot the page and drew them in another direction, I could do it faster, which would be an indication of improvement within my silo. But of course, when I started to talk outside my silo, can I modify that or do things differently than the answer's? No. Yeah, I think that is a great example of the effort to try to improve within your silo, but not really being able to impact the overall process without going into the gray area between the interface is really and this is exactly the lesson we want to make sure people are you are getting is that we can. Demming also said hard work and best efforts without guidance of profound knowledge may well be the root of our ruination. We can work our tails off in a system that's just not optimal, and we go through life wasting time and energy and getting stressed out and this is going on all the time, so what we just saw here were good people in a bad system working with good intent looking for ways teo be more efficient looking for ways to optimize their functional areas whether it's a five s or it's a method with the ruler everybody meant well no I don't think anybody in this system was trying to mess things up but the data say otherwise not that that you tried to mess things up but that you did alright and that's when the fingerpointing goes oh, I thought you were checking that well no I thought you were checking it well, I didn't I didn't realize we were supposed to check it and do you think this is ah uncommon thing in the business world? Not at all people ah, whether it's a carpenter you've hired to put in cabinets or you know a photography studio tio take wedding photos whatever when we're confused about the value proposition and we're confused about but what the customer really wants and doesn't want or about who's doing what that's where waste creeps into the system and it can eat us up so let's just let's just finish collecting some data uh it took fourteen minutes and thirty seconds to get me a good sheet now incidentally, that might seem like a long time the world record for taking the longest in this game is over thirty four minutes thirty four minutes and fifteen seconds it took a team not that long ago to get me anything good it was that disastrous okay it's very rare that anyone gets me anything within ten minutes overtime is a very common thing and this is a very common number you got me two good ones you got me fourteen that didn't pass so fourteen out of sixteen that were delivered to me didn't pass I need to add to that fourteen any re workers scrap you you did internally so how many additional reworks were internal three did you have mark any down did you say that I gave her one packet back I believe that ate so five and three more so eight more to my fourteen give me twenty two re worker scrap how many working process take the scrap out. How many work in process do we have that's anything right now that's in in play I have six five six seven soc had six and seven so with thirteen and two so we've seen in process our productivity is going to be too okay divided by we had seven people times fourteen and a half calculate that over the next uh break so our productivity is going to give us a number of acceptable units per labor minute and that might not mean much to us yet until we compare it against like world class standards or things like that on then all of a sudden we might realize what we're not even close to being his productive is we should be so that's going to give us additional insight and knowledge will come back to that one. But let's see if we made any money, you probably can guess we didn't. We get twenty dollars on the top line, which is the two good ones times ten dollars each our overhead, which was two dollars a minute it's going to be twenty nine dollars our labour, which is a dollar per labor minute. So we went fourteen minutes um times seven. You know what? Let me, uh, get official calculator out here just to monix cereal time. Well, calculate this real quick. So how many people online totally recognized this exercise? They saw it as a process in action. Lobster boy particularly says he works in I s o nine thousand one company he says he seizes every day and he sees actually quality control is getting in the way of making the product they're spending so much time ensuring that everything's right? They're not actually producing anything anymore. That's exactly really good interest inside at least I wasn't too hard on them. They really don't think j was saying this is an awesome exercises completely realistic the same john, you did a great job, a job with the game, it's totally what I encounter on a daily business daily basis I'm sorry everything jonah said about turf wars politics, etcetera I see it all the time and that's possibly because jay's in the management position himself yeah, well yeah we see it all the time so our productivity by lows point zero two okay, so here you're our numbers so when let's let's actually calculate the net so uh we lost two hundred and forty two dollars by my calculation now you could say um what, john you you really stack the game against us? Um I mean, you had us all divided into specialties and I would say to you is that not normal? We do that all the time in business we divide it's it's I mentioned earlier divisional labor adam smith right about it over two hundred years ago divide the labor specialized being more productive and efficient times have changed in two hundred years but we still do that today um you you forced us to batch things batch is one of the most common intuitive things we d'oh not matching his counter intuitive, not batch into something we don't typically do we batch laundry wi batch of dishes we batch training we batch meals we bet bill payment we batch accounting and business we batch we patched things intuitively because we believe that the the program we run on is that batch ings more efficient so we hatched a big deal we've policies we ship in aids why do we ship in aids? Is the customer wanted in aids or is that just too philip a truck or to get a better deal getting more economies okay um we have incentives functional incentives so you were rewarded susan by filling the pipeline whether they were ready for you or not okay, fill a pipeline let them figure it out and we have sales people all over the world doing that today we have people just fill the pipeline okay lobbed the ball over the wall kind of thing this is going on in business all around us large and small and we have to recognize what system were a part of so that we can work that in harmony within that system so we did round one what happened? Well, we didn't do well good people bad system bad system kicked our butts and that's a classic demming line because it's going on all the time we took fourteen and a half minutes to get anything to the customer ouch when we did get something the customer it wasn't right ouch way were piling up whip were piling up scrap all right incidentally six sigma statistically is three point for defects per million think three defects per million we had fourteen out of sixteen delivered we got work to do and we'll we'll get after that ok, we uh we lost a lot of money we just didn't manage this business well at all, but everybody had positive intent. What we didn't have was knowledge I'm a world class business knowledge, so then you start thinking about how do you summarize this situation? How do you know about improving it? One of the first things I leave you to think about this, we'll talk about it in the in the next segment um, is we tend to add when things air behind, we're behind with the customer, we're behind there's clearly there's we could probably use some help over that diamond apartment or something like that, we think ad, isn't it true? So very common? A paradigm is add, add staff we already added overtime, we just did that because we had two let's add some more staff let's add tooling let's, get a better tool. Okay, so we if I said to, well, let's, think, subtract rather than add, we're behind, we're losing money and you want to subtract it doesn't seem to make a lot of sense, so this is this is interesting. Ah tio, to reflect on einstein once said, any intelligent fool can make things bigger and more complex, we can add takes a touch of genius and a lot of courage to move in the opposite direction.

Class Description

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