Lessons

Lesson Info

Simulation: LeanSigma Game - Round 1

Let me open it up for questions 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 or can I do like five first time six yes so your your batch ing in five sixes sevens or aids ok your change it up you can change it okay absolutely you could try to beat the system are you I'm already thinking of ways yeah good all right so susan's you but you're all set you uh you got everything you need right there and by the way you're you're incented by this company to get out there in sell sell sell so to speak sir 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 is it's 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 alright just image should ask my manager if I do go into overtime is the laborer ate the same we don't get a little m...

ore well we're just keeping things as they are so stick to the rules and the procedure he's trying to make more money already know all right good so after diamond it 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 gonna go and you're 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 I have a lazy eye but I'm gonna try yeah all right so you're going to get those and then kate's going you're going to give it to kate kate's going to 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 scrap you could just uh scrap 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 job maria's well yes 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 could 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 going to put those yellow circles inside those rings uniforms all right I'm doing that's all you're gonna do well tio standardisation okay nice peaceful way there we go just relax get those red yellow dots done nice and pretty perfect that we're going to get checked then by kimberly all right 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 okay what what went wrong hero 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 isn't 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 so this just simply write reflects a very common current state and then that it's built gives us a platform that we're going to build on the rest of the the session all right? I'm good so all right, we will go ahead and begin the game right now. All right, so now I'm going to play the role of just commentator here that that that sounds appropriate. Three, the one who told noise, everybody okay, I'm gonna keep an eye on things, make sure everybody's doing, 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 I'm very curious as to when I'm going to get this delivery, so I'm not. 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, uh, my first delivery? Jean marie you got any idea I'm gonna proactively call you on the phone okay hi hi john how are you it's it's show marie the manager of of the product's good well hello there john murray it's nice to hear from you you know I just placed 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 it's just a little yeah we value your business and we want it I want it 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 product not just any fun 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 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. All right. Perfect. Thank you. Thank you. Question if there's there's five in the packet if 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 if you wanna 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 reworked so we have a strict policy teo deliver these and to batch um in five sixes sevens or eights now I have an observation john it seems that process already seems incredibly slow to me was 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 j chaos so here's what companies do because of imbalances they load their system up with a lot of work and I've purposefully stripped all of the work out to start this round one with no work in process so that we're 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 and round one we're actually much it's much easier for us to see imbalances so we see people without enough to do and we see people with overwhelming amount to dio 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 procedures 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 do you get into turf battles and politics with departmental battles, silos, you know, 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, daphne, I'd like to hear from the online community what their observations are. Thes 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, except 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 you've already how yeah okay oh um can we ask questions why what days can't we ask yeah you can ask me questions I simply running out of red circles can I so as soon as you have an empty sheet you khun turn in the empty sheet for a full sheet over its susan's it's our control policy okay we're treating those dots like controlled substances another question I seem to have a lot of free time at 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 that we have in the closet we do the same thing with time we just keep filling time with clutter ah and we just we lose effectiveness so here we've got uh susan's given up her bonus again incidentally we are ah! We're now at about six minutes. So it's six minutes. I still nothing I'm wondering when that phone call's going to come back and I'm calling you right now so way have our first order all right what's that staple in it so make sure you stay for 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 eights 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 uh but way would like teo to appease you in the meantime is there something else that we could do for you would you like assistance you some coffee or well let me uh let me share with you some is some insights um 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 you won't even ever think about it when the competition calls because really it's the quality 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 00:12:39.098 --> 00:12:43. can't use yourself. Exactly. Um, you know our price, 00:12:43.84 --> 00:12:46. we've got, we've got a competitive price right now, 00:12:46.27 --> 00:12:50. I think, but I have to share this. My business is 00:12:50.08 --> 00:12:54. going through a lot of change, and we're doing this 00:12:54.3 --> 00:12:56. thing called lean six. Segment out our company. We're 00:12:56.91 --> 00:13:01. going after best practices around the world, and one 00:13:01.52 --> 00:13:04. of the best practices is learning to get our inventories 00:13:04.38 --> 00:13:08. to flow better, orchestrating the work in a more balanced, 00:13:08.95 --> 00:13:11. harmonized way and 00:13:13.55 --> 00:13:17. I'm I'm at a loss right now I feel like my my actual 00:13:17.96 --> 00:13:22. job is being threatened because I'm I don't look good 00:13:22.92 --> 00:13:25. I'm really sorry to hear that I just let you know 00:13:25.32 --> 00:13:28. we're going through that same process to we must we 00:13:28.34 --> 00:13:32. must be on on a similar level so we do we do actually 00:13:32.12 --> 00:13:34. share similar goals and I just wanted you to know 00:13:34.58 --> 00:13:37. that we we do we do understand that there's change 00:13:37.56 --> 00:13:40. going on it sounds like our company's heir growing 00:13:40.54 --> 00:13:42. together so I hope so 00:13:43.05 --> 00:13:46. so so just just rest assured it's on the way I can 00:13:46.66 --> 00:13:49. assure you of that for sure I'm just curious here 00:13:49.34 --> 00:13:51. because I'm hearing an awful lot of management speak 00:13:51.43 --> 00:13:54. coming out of the mouth of the marriage I appreciate 00:13:54.51 --> 00:13:56. that she's been trying to pacify I've not heard the 00:13:56.52 --> 00:13:57. manager once address for 00:13:59.17 --> 00:14:02. well I don't want to but my customers on hold while 00:14:02.09 --> 00:14:05. I'm talking with him so but can't can I actually call 00:14:05.48 --> 00:14:07. you back I do want to actually make sure that I'm 00:14:07.31 --> 00:14:10. on the floor addressing this and just you know really 00:14:10.41 --> 00:14:13. keeping an eye on where things are at exact yeah yeah 00:14:13.45 --> 00:14:16. that would help her because because visibility is 00:14:16.03 --> 00:14:19. a very important thing to me now whereas it's like 00:14:19.33 --> 00:14:23. with federal express ups I can click on a link I can 00:14:23.45 --> 00:14:27. see where my package is domino's is doing that now 00:14:27.29 --> 00:14:30. with pizzas I mean I I want to be able to know where 00:14:30.14 --> 00:14:33. my stuff is, so I could get prepared, be ready for 00:14:33.08 --> 00:14:36. it, and I'm just at a complete loss right now. I don't 00:14:36.02 --> 00:14:38. know. Well, I haven't every 00:14:40.21 --> 00:14:40. first. 00:14:42.06 --> 00:14:44. Can you give me a readout on the quality expectations 00:14:44.81 --> 00:14:47. of these lines? I could draw the much faster without 00:14:47.49 --> 00:14:51. a ruler, but they are perfectly straight. We're actually 00:14:51.3 --> 00:14:53. going for a perfect straightness. We kind of need 00:14:53.51 --> 00:14:56. to stick with the way that we've been doing things 00:14:56.41 --> 00:14:59. for right now. Um, through that down the line, we 00:14:59.91 --> 00:15:01. might do things a little differently, but let's, just 00:15:01.98 --> 00:15:05. stick with that and maybe there's an alternate way 00:15:05.2 --> 00:15:08. to within those parameters, okay, thank you. 00:15:14.45 --> 00:15:17. So I wanted to call our customer and see how you're 00:15:17.52 --> 00:15:20. doing there john are you are you happy or you taking 00:15:20.56 --> 00:15:23. a look at everything I just yeah I got eight delivered 00:15:23.02 --> 00:15:26. but I can't accept any of them I see so we're gonna 00:15:26.05 --> 00:15:29. have to keep going I'm sorry the biggest problem is 00:15:29.66 --> 00:15:32. there's tails on the diamonds okay so they're they're 00:15:32.81 --> 00:15:35. they're not all exactly the same there there the lines 00:15:35.08 --> 00:15:37. they're running past the dots so let me asking is 00:15:37.66 --> 00:15:40. the straightness of the line is important straight 00:15:40.13 --> 00:15:42. they do need to be straight and there's one that there's 00:15:42.59 --> 00:15:45. one that has a dent in it but the rest are all straight 00:15:45.51 --> 00:15:47. so there's no problem with the straight the straight 00:15:47.63 --> 00:15:49. lines ok which is really important to you it's the 00:15:49.88 --> 00:15:53. tails yeah can't have tails okay gotcha. All right 00:15:53.23 --> 00:15:56. well you know we'll just have to do a re order here 00:15:56.44 --> 00:16:00. and again I'll keep keep me posted on the progress 00:16:00.05 --> 00:16:02. of things again consider me your tracking on that 00:16:02.97 --> 00:16:05. I'll keep in touch with you okay just maybe there 00:16:05.61 --> 00:16:08. was some misunderstanding but there's just a boy that 00:16:08.34 --> 00:16:10. never happens in the real world does it perhaps and 00:16:10.69 --> 00:16:14. accept our apologies are our apologies and also our 00:16:14.63 --> 00:16:16. promise that we're back on it again by the way I'm 00:16:16.51 --> 00:16:18. loving new yellow dots the yellow dots are beautiful 00:16:18.95 --> 00:16:20. you must have an artist or something in the yellow 00:16:20.93 --> 00:16:24. dot department. She's she's, she's she's using both 00:16:24.85 --> 00:16:27. sides of that brain to get those dots right down the 00:16:27.33 --> 00:16:29. center it's just beautiful I want to ask the manager 00:16:29.69 --> 00:16:31. questions so you got the feedback from that you've 00:16:31.59 --> 00:16:34. got the feedback you happy is not happy about what 00:16:34.02 --> 00:16:36. steps you take well I know that the straightness is 00:16:36.93 --> 00:16:38. important so we're going to need to stick with the 00:16:38.71 --> 00:16:42. ruler I wanted to talk with our diamond there's an 00:16:42.04 --> 00:16:44. issue before you before you keep moving forward we 00:16:44.38 --> 00:16:47. need to make sure that there's no more tales or any 00:16:47.41 --> 00:16:50. sort of exit lines it needs to be a perfect straight 00:16:50.98 --> 00:16:54. diamond that you know touches you know way can't have 00:16:54.8 --> 00:16:57. any tails now I understand that but how did you even 00:16:57.22 --> 00:16:59. get into the customers hands um 00:17:00.65 --> 00:17:05. through a gps system called susan but delivery who 00:17:05.3 --> 00:17:07. approved the world to give to you that's a good point 00:17:07.67 --> 00:17:11. so kimberly I'm talking talking and talking what is 00:17:11.72 --> 00:17:15. the manager do you think the situation I think I'm 00:17:15.4 --> 00:17:18. seeing a lot of my play I'm seeing an approval process 00:17:18.36 --> 00:17:21. it is approving wrong stuff I'm seeing deliveries 00:17:21.18 --> 00:17:22. what's the wrong plan that's actually really good 00:17:22.83 --> 00:17:25. point and I'm glad that we have an outsider consultant 00:17:25.55 --> 00:17:30. here point of view that we here so kimberly uh before 00:17:30.23 --> 00:17:32. you before you move forward I need you to make sure 00:17:32.42 --> 00:17:34. that you're checking on the diamond specifically our 00:17:34.67 --> 00:17:37. clients really happy with the yellow dots really loves 00:17:37.05 --> 00:17:39. yellow dots of diamonds and the tail's, coming off 00:17:39.32 --> 00:17:41. for an issue. So we're gonna have to send it back 00:17:41.61 --> 00:17:44. and make sure that, you know that does not get approved. 00:17:47.74 --> 00:17:50. Do not talk about the diamonds at all. Should I change 00:17:50.62 --> 00:17:54. what? My initial task? Well, no, not not change changing 00:17:54.19 --> 00:17:57. it, but actually, would that be the review department? 00:17:57.85 --> 00:18:00. This would be the review. Okay, sorry, I'm talking 00:18:00.02 --> 00:18:02. to the wrong person, that that never happens. 00:18:05.3 --> 00:18:08. Um, yes, oh, kate, we're going to make you know, since 00:18:08.63 --> 00:18:11. you're working so closely with the diamond department, 00:18:11.1 --> 00:18:14. and that seems to be where we're having some of our 00:18:14.23 --> 00:18:16. issues, I want you to really work more closely with 00:18:16.36 --> 00:18:18. them, make sure that they're getting all those diamonds 00:18:19.21 --> 00:18:22. inside inside of the yeah, before they move on on 00:18:22.89 --> 00:18:25. def. And if and if you need anything for me, please 00:18:25.32 --> 00:18:27. let me know. We should make sure that happens. Well, 00:18:27.63 --> 00:18:29. we have a tail here, so we're gonna have to rework 00:18:29.7 --> 00:18:32. this one. So does it go back to susan's department 00:18:32.48 --> 00:18:35. to start over it? We'll have to start over again. 00:18:35.56 --> 00:18:37. Complete zoran pen, that's gonna be awful hard. We 00:18:37.98 --> 00:18:38. work. 00:18:40.6 --> 00:18:43. Holmes. What say that when we use a pencil for the 00:18:43.98 --> 00:18:46. diamonds? That's, just that's, not the way we do think 00:18:46.92 --> 00:18:47. so. 00:18:48.64 --> 00:18:49. Unfortunately, no 00:18:51.27 --> 00:18:53. another one is. This is their eight here. 00:18:55.0 --> 00:18:57. All right, well, ones one's not going to work. 00:19:02.01 --> 00:19:05. Teo of me. Francis got a tail. 00:19:07.9 --> 00:19:09. Scott's. A couple tails. 00:19:11.9 --> 00:19:15. It's. How to date is your resume. I'm thinking, I'm 00:19:15.15 --> 00:19:17. going to get it up today. I'm gonna take this one. 00:19:17.28 --> 00:19:19. I got one, so everybody could stop now, let's, get 00:19:19.62 --> 00:19:22. the official time, all right, it's. Uh 00:19:27.16 --> 00:19:30. we might need to get some diamond training. I apologize, 00:19:30.37 --> 00:19:32. but we might need to invest in you a little bit with 00:19:32.97 --> 00:19:34. some training. I think I'm still a diamond in the 00:19:34.8 --> 00:19:35. rough. 00:19:40.0 --> 00:19:43. Uh no, I wasn't but I should have probably assumed 00:19:44.7 --> 00:19:47. knowing my customers wells I do I should have strived 00:19:47.15 --> 00:19:50. for more perfect finding curious because I mean I 00:19:50.99 --> 00:19:53. asked the question before quite a way back but honestly 00:19:53.64 --> 00:19:56. jane you did ask quite a few questions about your 00:19:56.02 --> 00:19:59. role nobody else really seemed to be asking questions I mean, you didn't ask that kind of detailed questions did you feel that really you got it you understood or did you really feel that wasn't you just had to get on with it etcetera. What were the challenges that you there's people playing the game yeah please can't I felt like my job was so repetitive I wanted to start taking circles all around the variation yeah you came in for a hard time susan's requisition you were handing off stuff that wasn't acceptable right though 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 I mean 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 at the first time that it couldn't have tail right exactly and they were still things in the process after we identified the tails we're still putting red circles on the triangles that where on the diamonds that were incorrect because nobody told us not to so we were way so that was my fault I'll take full blame for that and and yet we will try again hopefully well that'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 in 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 getting is that we can deming 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 t 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 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. So, over times, a very common thing. And this is a very common number. You got me two good ones. You got me fourteen that I 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 worker scrap you you did internally. So how many additional reworks were internal? Thirty three kate, did you have mark any down? Did you say that I gave her one packet back? I believe that eight now 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, you have six. Five, six, seven. Soc had six and seven. So with thirteen. And to so we've fifteen 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, ah, 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. Ah, and 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, let's. See if we made any money. You probably khun. 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 syria 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 won company. He says he sees this 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. Well, at least I wasn't too hard on them. They can at least get some things. Jay was saying, this is an awesome exercises, completely realistic. It's the same john, you did a great job with the game, it's, totally what I encounter on a daily business daily basis. I'm sorry, everything john has 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 liu is point zero two. Okay, so here, here, our numbers. So when let's, let's actually calculate the the net so we lost two hundred and forty two dollars, by my calculation. Now you could say what john you you really stacked the game against us I mean you had us all divided into specialties 00:28:12.46 --> 00:28:16. and I would say to you is that not normal we do that 00:28:16.71 --> 00:28:19. all the time in business we divide it's it's I mentioned 00:28:19.89 --> 00:28:22. earlier divisional labors adam smith writing about 00:28:22.19 --> 00:28:25. it over two hundred years ago divide the labor specialized 00:28:26.0 --> 00:28:28. be more productive and efficient times have changed 00:28:28.9 --> 00:28:32. in two hundred years but we still do that today um 00:28:32.17 --> 00:28:36. you you forced us to batch things batch is one of 00:28:36.57 --> 00:28:39. the most common intuitive things we d'oh not matching 00:28:39.73 --> 00:28:42. his counter intuitive not patching is something we 00:28:42.96 --> 00:28:46. don't typically do we batch laundry wi batch dishes 00:28:46.19 --> 00:28:49. we batch training we batch meals wi batch bill payment 00:28:50.1 --> 00:28:53. we batch accounting and business we batch we patched 00:28:53.02 --> 00:28:56. things intuitively because we believe that the program 00:28:56.21 --> 00:29:00. we run on is that batch is more efficient so we patched 00:29:00.49 --> 00:29:04. big deal we've policies we ship in aids why do we 00:29:04.59 --> 00:29:08. ship in aids is the customer wanted in aids or is 00:29:08.07 --> 00:29:11. that just to fill up a truck or to get a better deal 00:29:11.44 --> 00:29:13. getting more economies? Okay, 00:29:14.8 --> 00:29:18. we have incentives functional incentives so you were 00:29:18.75 --> 00:29:21. rewarded susan by filling the pipeline whether they 00:29:21.39 --> 00:29:25. were ready for you or not okay, fill a pipeline let 00:29:25.06 --> 00:29:27. them figure it out and we have sales people all over 00:29:27.34 --> 00:29:29. the world doing that today we have people just fill 00:29:29.52 --> 00:29:32. the pipeline, okay, lobbed the ball over the wall 00:29:32.56 --> 00:29:35. kind of thing. This is going on in business all around 00:29:35.17 --> 00:29:38. us, large and small. And we have to recognize what 00:29:38.04 --> 00:29:40. system were a part of, so that we can work that in 00:29:40.93 --> 00:29:45. harmony within that system. So we did round one. What 00:29:45.38 --> 00:29:47. happened? Well. 00:29:49.3 --> 00:29:53. We didn't do well, good people. Bad system, bad system 00:29:53.95 --> 00:29:56. kicked our butts and that's a classic demming line, 00:29:56.97 --> 00:29:59. because it's going on all the time, we took fourteen 00:29:59.75 --> 00:30:01. and a half minutes to get anything to the customer. 00:30:03.4 --> 00:30:06. Ouch. When we did get something to the customer, it 00:30:06.75 --> 00:30:07. wasn't right. 00:30:08.64 --> 00:30:09. Ouch! 00:30:10.9 --> 00:30:15. We were piling up whip. We're 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, well, well, get after that, okay, 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 is not true, so a very common a paradigm is add add staff we already added overtime, we just did that because we had to 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 tio to reflect on einstein once had 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.