Lessons

Lesson Info

Systems - Thinking Towards Innovation

To review just a little bit we uh we ran a simulation and we made things better through this this kaizen but we still fell down a little bit ralph waldo emerson here's said once that our greatest glory is not a never failing but in rising up every time we feel that which doesn't kill us makes us stronger and I love quotes like this we left off the last session like quote there it's in the materials from james joyce about mistakes are the portals of discovery a lot of the greatest discoveries in the world there are for mistakes what we call mistakes I love the story of thomas edison for example and after nine thousand attempts at the lightbulb journalist asked him how I don't get it I don't how can you continue and persevere after nine thousand failures thomas edison said I I haven't failed yet I've learned nine thousand ways they don't work so it's a clever way of looking at things right and we made some more mistakes all right and in round two but we we've learned from those and in th...

is session in round three we're goingto illustrate a point kaisa excuse me a flow kaizen which is several points in the process and it's it's a more broad scope but it's it's critical when we're faced with uh benchmark data like we had before that tells us look, we made a lot of improvement time to first order but we're up against sixty seconds up against one minute whoa that's ah that's well I don't now first reaction might be what we think the competition's bluffing wait there's no way they can do that so they're trying to steal our business with promises they can't keep truth is we're making promises now that we can't keep the customers catching us for it they can get him thirty in ten minutes really running with virtually no inventory turning that very that that quickly all right that's less than one batch size for us we have a policy that says we have to have at least five to even do anything they're running their whole business on zero two four that doesn't make any sense that's outside our box but data like that wakes us up because if that's true then maybe we have to change our box just a little bit shift are paradigms look at things like a little bit differently they're promising zero defects no that can't be right and the productivity numbers seem just out of the out of off out of this world so but that's what we're up against so in this session we're going to use to make again we're going to continue to repeat and learn and play with this this tool belt called to make and other tools that we haven't introduced us yet teo not just improve our performance but actually innovate so we can improve inside a box but innovations often when the box itself is the problem so we're gonna blow it up and we're going to come up with something radically radically different we're gonna practice the flow kaizen so we're going to get you playing again a little bit and we're going to use the lane segment game to bring it to life all right teo to kick this session off one introduce a model that's had a profound change in my life and uh and then the lives of many other people around the world that I've been teaching because I've used a small amount for for a couple of decades most of us served quite familiar with the top line here which is that we're managing behavior every day to get certain results for managing our time we're managing our projects were managing our lives and we're trying to get good results who doesn't want good results so we're quite familiar with this very top almost superficial line when you look at it from a different perspective because all of a sudden we say well I'm not getting the results I want so I'm going to try harder I'm gonna work faster I'm going to stay on the top line and just put more into it hope for different results but what did einstein say about doing the same thing over and over again and expecting different results he called that insanity exactly insanity is doing the same thing over and over again and expecting different results so we can't just continue to do things over and over again and expecting results we teach people how to fly and work faster whatever it's just not gonna work we've got to drill down so we got to drill down beneath the attitude of our people because we might in a bad system we might be creating bad attitudes disgruntled stressed out people see it all the time put good people in a bad system not only does a bad system when but we end up with people who are upset stressed out because they're trying to keep up stay above water so we've gotta drill down beneath even the assumptions that the people are making so what's driving those assumptions where's that coming from and this is where we get into what I like to call transformational change this is where great leadership presides great leadership is looking at how do we put good people in a good system how do we put good people in a good structure because that's where our metamorphosis takes place that's where yes we see this in sports a lot where great coaches take the losing team or an average team and within a couple of years they've got him in major bowl games if its transformation how did they do that? Well they didn't just up here offer carrots and sticks superficial incentives even pizzas things like that they drilled down and said you know what I owe it to my people, to put you in the very best system possible. Now, I don't necessarily know what that system is, but I'm going to create a method to create it. I'm going to create a methodology, which includes education and training, of course material 00:06:00.057 --> 00:06:03. like this simulations to bring it to life. And then 00:06:03.34 --> 00:06:06. we're actually applied that to really things to make 00:06:06.04 --> 00:06:08. your lives better and easier and better for the customers 00:06:08.99 --> 00:06:12. well. And when we do that, and we start to experience 00:06:12.26 --> 00:06:15. very different results, those results than feed 00:06:16.92 --> 00:06:20. on themselves, and we get this transformational change 00:06:20.46 --> 00:06:23. in the way people believe. All right, 00:06:25.12 --> 00:06:27. so play with this model haven't exercise for you. 00:06:27.25 --> 00:06:30. I'm going to give everybody sixty seconds, including 00:06:30.44 --> 00:06:33. the folks online, take sixty seconds and see if you 00:06:33.51 --> 00:06:37. can solve this little riddle. All right? It shouldn't 00:06:37.63 --> 00:06:40. take that long at all, but I'll give you a chance 00:06:40.16 --> 00:06:40. to play with it. 00:06:46.12 --> 00:06:48. This is the power of paradigms, 00:06:50.32 --> 00:06:54. so often the answer's right in front of us, and we 00:06:54.5 --> 00:06:55. cannot see it. 00:06:57.28 --> 00:07:00. We cannot see it because of the filters, the blinders 00:07:00.97 --> 00:07:03. that we have on right there, the answer's right there, 00:07:03.85 --> 00:07:06. it's, very simple, and that really frustrates you 00:07:06.26 --> 00:07:08. now, because you go, john it's. Not that simple. John's 00:07:08.98 --> 00:07:10. going to give you a quick hint. 00:07:11.52 --> 00:07:12. There's. My hint. 00:07:14.62 --> 00:07:17. You haven't touched trouble solving the problem on 00:07:17.42 --> 00:07:18. that top line. 00:07:19.72 --> 00:07:22. You have to challenge your assumptions to deal, dig 00:07:22.79 --> 00:07:25. down and say, well, maybe I'm not reading it right. 00:07:25.11 --> 00:07:27. Maybe I'm not interpreting the instructions, right? 00:07:27.48 --> 00:07:30. Maybe there's. Another way to look at this. What is 00:07:30.27 --> 00:07:33. it, really asking me to cross out there's? A hint. 00:07:37.07 --> 00:07:39. And time is up. That's a minute. 00:07:41.42 --> 00:07:42. Anybody get it? 00:07:43.52 --> 00:07:46. You don't feel bad if you didn't, because very few 00:07:46.25 --> 00:07:48. people d'oh, it's the power of paradigm. 00:07:51.22 --> 00:07:52. Did you get it? Susan 00:07:53.32 --> 00:07:56. yes all right and it is been in there you go it's 00:07:56.93 --> 00:07:59. banana now how in the world you get banana out of 00:07:59.03 --> 00:08:02. that well the answer's right here it says in the following 00:08:02.52 --> 00:08:06. line of letters cross out what six letters if you interpret that as six letters you're in the six paradigm you're looking for six there's another way to look at that it's asking you to cross out yes by x l e t t e r s cross out s I x s I x l e t t e r s right there and it leaves you with the word banana now very few people get that because of the box that were in the box in this case is the sixth box we're searching for six so it's a fun little illustration to demonstrate we don't even know we're in paradigms most of the time we don't even know what assumptions were making kala gator thirty well done don't have the people that we got bears and we got tears but only one bananas I think maybe others were just in tears well don't alligator so yes indeed so it's fun it's just a fun little like tio activity on creative problem solving in this in this segment we're going to really talk a lot about creative problem solving and and true innovation not just improvement, making things a little better, but blowing the doors open and really coming up with things that that that we've never seen before all right to do that we have to get out of what I refer to is the experience decide trap way live in a world where we just continue to repeat what we know and we base our decisions based on our experience we get into this trap of repetition habit all right organizations to it you know great organizations do it great organizations ibm kodak you know xerox a lot of these organizations got in tow just repetition general motors ford and in many cases they got him in deep trouble motorola got him into deep trouble because they were not getting outside the box so to speak they were so focused on optimizing and improving things inside the box in many cases they lost sight of the market itself which was changing right completely changing so we have to avoid this experience to side trap by recognizing that a cycle franco and going improvement requires us taking time out of a very busy life by the way it's easy to fall into that experienced side trap when we're working twelve hours a day and we're just busy busy busy busy busy but beware it's dangerous it's very dangerous we've got to get out of that in sports we call these time outs and we call these halftime breaks where we do a little after action review we look att ok, so what? What are we experiencing what's going on what's happening and what what adjustments do we need to make we've got we've got a challenge our game plan our assumptions we've got way have to mid game we've gotta learn how to make adjustments because they're they're things come up all right so we've got to get out here and reflect on what just happened learn from those mistakes which are portals of discovery so to speak and vision adjustments and changes and new things talk through those things figure out howto make it even better and base decisions on a whole picture not just past practice alright precedent so a quick review of kaizen we said cousins a quick hit improvement all right it's the use of domestic at a very fast pace typically fast within a month there's a period of prep time and then there's the event itself which is very quick it means good change and that air not best begins with focused team charter we're clear on our problem that we're trying to solve a clearing that problem statement we know what it is we're going after okay we usually do a little justin time j I t training so the team knows what kaizen is they know by the way the this lean cygnus simulation is used frequently all over the world in kai's and prep so when we're prepping a team to run a kaizen event why don't why not run a simulated one or a couple so that they can I understand better what it is they're being tapped to dio so we do that we do the kaiser in training and then we prepare for the real kaisa oh it's a great way to use the game just to get people teo to understand what it is we're trying to do so we define and measure the current state we analyze those causes and effects all right and the the major leverage points we might map out the future state either in the event or prior to the event to say here's a rough idea what we want to try to make happen that's what we're going to do in this session we're going toe actually create a future state and we're gonna implement those actions during the cais um and meaning we're going to make change we're not going to sit around just talk about it we'll get it so we're gonna approach this with making change in mind not just sitting around in debating and talking about it and coming up with the project management plans of dozens and dozens of steps all right? We're going to document the results all right? And then we're going to prepare uh for ongoing improvement and control and I like to suggest that we never finish a kai's an event without planning the next one that really reinforces the idea that this doesn't end does it? A lot of people have a feeling this is just a flavor of the month and after this event we can all go backto to normal no this is we're changing normal changing normal and we're not going to get it right we're never going to get it done so guess what we're gonna do after this kind of event we're going to do another one all right I'm working with a client right now we're on our seventy plus plus kai's an event in a year seventy seven zero so these air these are not just one and done type things right it's a it's a powerful way to demonstrate that we're a culture about proactive change and leadership not reactive change in management we're making change not managing it so here's our benchmark dated we looked at that and go really wow so what we're doing now is prepping for round three a flow kaizen and in around three here the here's some of the things we need to consider first is our purpose we're going to add a little more real world complexity and round three for example a real world we might have experience prices coming down there were ten dollars right now per unit we might experience the market's not willing to bear that anymore so around three we've got make money at nine dollars a unit you say well that's not very helpful john because we're already losing money now we have to lower our price. Shouldn't we be raising our price you get a lot of organizations out there trying to figure out how do we raise our price because we're not efficient oh maybe if we were more efficient we could reduce our price there's a paradox lower our price and make more money at the tate to raise your price to make more money but we know our way knowing there are into industries whole industries like the tech industry they're saying you know what? You can get a better phone or laptop or you know, camera whatever today calculator at a lower price with more memory more speed, more capability so we're getting used to this idea at least in certain industries that if we really clever in the way we run our businesses we can actually get more value for a lower price than we could in the past that's a powerful shift I know cos today they're still scratching their heads going how do we raise our prices to make more money? They're not thinking about how we run our business is a whole lot smarter all right? So we're going to use some concepts and tools in this segment we're gonna go back to domestic which we've discussed certainly and kaizen but we're going to use tact time when the world is that all about con bond what the world is that all about and I had mentioned to hijack a just a little bit earlier which means peaceful order is there these air words who attacked actually is german but combine and high junk, along with kaiser japanese terms, but they're now very global. They're used all over the world and to improve balance and standardize their process and really go after that benchmark performance level. All right, that's, what we're going to do in this session so an overview of the simulation is, too that we're we're a team and here's our mission, we're going to design an operation to deliver the exact amounts of acceptable product the form within the designated time while maximizing profit. So is that clear? We're going toe deliver the exact amount acceptable product and make money as much as we possibly can within the designated time, which is which is ten minutes? Wow, we're going to meet or exceed all customer expectations, quality throughput, user friendliness, visibility, traceability some of these things the client wants tau experience, we'll make a healthy profit, by the way, we're going to that at a lower price, and we're actually and accurately predict performance ahead of time. By the way, the lower price isn't the only challenge we have financially, we've also discovered in round three that we were paying one dollar per labor minute. In round three, it's, too. We're going to pay people twice as much. How in the world we're going to do that john but let's figure it out oh and one other thing I work in process which was one dollar per unit that just doubled it's two dollars per unit now a lot prices coming down costs are going up we're already losing money huh I like to say welcome tto automotive nineteen eighty because that's the industry I came out of in the eighties 00:18:06.082 --> 00:18:08. and this is precisely what we were forced to dio we've 00:18:08.59 --> 00:18:10. got to figure out a way to reduce prices 00:18:12.1 --> 00:18:14. and doom or atmore cost 00:18:16.2 --> 00:18:19. no to stay afloat to stay in business that's what 00:18:19.89 --> 00:18:22. we gave birth to a lot of these these these teeth 00:18:22.33 --> 00:18:24. of these tools and concepts the lien and the six sigma 00:18:25.6 --> 00:18:27. years ago all right 00:18:28.3 --> 00:18:30. sometimes we learn it the hard way 00:18:31.9 --> 00:18:33. and then we're going to demo the new process we're 00:18:33.6 --> 00:18:36. actually going toe prove it with data that we can 00:18:36.54 --> 00:18:39. that we can actually do this so in order to do this 00:18:39.58 --> 00:18:41. we have to consider a number of things we certainly 00:18:41.56 --> 00:18:43. have to consider a voice of customer we've talked 00:18:43.82 --> 00:18:46. about that now repeatedly we've got to be very clear 00:18:46.23 --> 00:18:49. on just what the customer wants what they do with 00:18:49.02 --> 00:18:52. it how they use it let's really partner with our customers 00:18:52.06 --> 00:18:55. to make sure that we are aline and we're and we're 00:18:55.9 --> 00:18:57. partnering we're connected 00:18:58.7 --> 00:19:02. that includes the critical to quality is the average 00:19:02.46 --> 00:19:05. daily demand what is in this case, average minute 00:19:05.49 --> 00:19:07. demand, how are you using this? I'm using, on average, 00:19:07.74 --> 00:19:11. three a minute, okay, we need to know that your delivery 00:19:11.45 --> 00:19:14. requirements do you need, um, and eights, because 00:19:14.99 --> 00:19:18. that's, our current shipping policy do you need emanates, 00:19:18.7 --> 00:19:21. I don't know, dominates. That was never my policy. 00:19:22.55 --> 00:19:25. That was some, uh, I don't know it was your policy, 00:19:25.42 --> 00:19:29. for some reason. Philip truck, save money on chipping, 00:19:29.6 --> 00:19:32. but I don't, I don't know, eliminates. I don't use 00:19:32.34 --> 00:19:34. emanates. Why would I order emanates? 00:19:36.4 --> 00:19:40. Process spat product specs and requirements and I 00:19:40.12 --> 00:19:42. hope that we might have to revisit our value proposition 00:19:42.76 --> 00:19:45. maybe we need to revisit what we're offering the market 00:19:45.61 --> 00:19:48. in the customer maybe we haven't got our value proposition 00:19:48.58 --> 00:19:49. right 00:19:50.8 --> 00:19:53. incidentally on that topic some organizations try 00:19:53.23 --> 00:19:56. to be everybody everything to everybody that's a dangerous 00:19:56.83 --> 00:19:59. value proposition you'll notice that the companies 00:19:59.39 --> 00:20:01. that are really really really good at whatever they 00:20:01.2 --> 00:20:03. do is they d'oh they're very clear on what they will 00:20:03.76 --> 00:20:07. do and what they will not do try to get a first class 00:20:07.13 --> 00:20:08. seat on southwest airlines it doesn't exist yeah but I want first class well then you have to find another another airlines we don't we don't do that so cup incidentally southwest airlines is a very successful, very profitable airline but very clarence value proposition all right so we don't try to please everybody with everything we're clear on what we will offer and what we want every entrepreneur has to has to know that to survive because when you start juggling too many balls in the air you're going to start landing on your head very quick very important be clear on our value proposition we've got to figure out our process flow maybe their current state if we've mapped that out now and you could analyze that you know what that's a ridiculous design I don't know it just grew up over the years out of who knows where but maybe there's a better way we can get the work to flow we might have to look now certainly attacked and what does that all mean the loading of the work the balancing of the work the capacity planning and capability we have to look at our inventory control mandatory was going out of the out of the roof we started with zero and end up with forty five what was that all about okay and uh we so we have to figure out a way to control it we have to introduce my jungle which is peaceful order what we should see and round three isn't an order is an organizational culture that doesn't actually look like it's working that hard what I like to use the metaphor in this case of a great swimmer you watch the olympics we watch a great swimmer they're moving through that water significant paced world class pace but they don't actually look like they're working very hard disgraceful something with a sprinter something like that you look at somebody who doesn't know how to swim very well perhaps it all and you give me a little shove into the pool there flopping around there gasping for air yes what it looks like to me when I go into a lot of businesses what's what what what's what do you suppose I see? Yeah like people freaking out gasping for air putting out fires in some cases loving it lot of a lot of middle managers love putting out fires, that's, theirjob. I love to just come to work. Where's, the fire pole. I want to slide down that get the hose out start. And so when you start in one of the cultural challenges you have when you bring in these these world class standards and and you execute on them is people start wondering what to do if there aren't a whole lot of problems to solve. Problem solving is not value added. You might think so but unless you're getting paid for problem solving so if I'm getting paid as a consultant for problem solving than its value added work all right but if I'm inside a company and I'm solving problems because our quality's lousy okay that's all cost of poor quality it's valuable but it's not value added that's an important difference so when we know we know that if we can eliminate a lot of those errors and things like that and free up capacity that's a valuable thing to do but it is valuable because we've eliminated the non value added activity of running around putting out fires were preventing them now that's a significant difference we've got a look at our labour okay, we've got seven people we may have just added an eighth with a customer service rep we could be scratching our heads thinking well maybe need we need to adm or in a couple of areas because we're still not getting the through put through so how many? How many people do we need to do this how many people are competition doing it with and a clue there is this productivity number because a clue there says if they're even close to that that basically means they're getting thirty units out in thirty labor minutes thirty labor minutes how many people is that in ten minutes? Three they're doing this with three people and we're thinking about adding more to eight so something's not something's, not right. That's, very insightful information is, not incidentally, if they're making money, that's a green, positive, positive number. Wow, and they're doing it at nine dollars, not ten. How in the world are we going to make money? All right at nine dollars because that nine times thirty all right well all right let's let's do the math all right that's the nine times sa one hundred two hundred seventy dollars all right, well we have two hundred seventy dollars in the top line we take out our labor we take out our overhead and we take what's left that might help us balance the equation what can we afford in terms of labor? All right, so a lot of times these organizations and I encourage any entrepreneur out there any solo premiere to be thinking about this you can start with the end in mind the market and ask what will the what price will the market bear all right and what timing will the market expect from us in terms of delivery and work backwards from there to design a system to fill that need to surpass it? Even that's not a way a lot of us think we think front to back not back to front so we think what we got engineer and design and figure out a way to t get all these things done and we're going to use division of labor and we're going to put people in special groups and we're going to organize their business this way and then we're gonna add up all the costs and then we're gonna price it got a bit of build a profit into that and then we go out to the market and the market says I'm not paying that you're way overpriced why in the world would I buy from you guys when you can't even get me my deliveries when I got competitors out there stand I'll sell it to you for less and get it to you sooner and there 00:26:06.152 --> 00:26:10. won't be any problems with it that's it it's a pretty 00:26:10.14 --> 00:26:12. simple business decision so as much as I love you 00:26:12.95 --> 00:26:14. guys and I'm loyal to you guys everything else in 00:26:14.95 --> 00:26:18. terms of our history and our business I can't survive 00:26:19.58 --> 00:26:22. going on like this jay changes changes gotta happen 00:26:23.28 --> 00:26:25. we have to look at our cost of poor quality c o p 00:26:25.96 --> 00:26:29. q we still got all these defects what's that all about 00:26:29.92 --> 00:26:32. incidentally part of cost of poor quality is inspection 00:26:33.48 --> 00:26:36. we got two people full time inspecting stuff that's 00:26:36.01 --> 00:26:39. considered part of cost of poor quality it's not value 00:26:39.02 --> 00:26:41. added why do we have people inspecting anything 00:26:42.78 --> 00:26:45. because the quality is no good but the quality is 00:26:45.72 --> 00:26:49. good what we need so many people inspecting incidentally 00:26:49.88 --> 00:26:52. and it was still getting to me with with flaws 00:26:53.91 --> 00:26:56. and this is something demming top when uh years ago 00:26:56.65 --> 00:26:58. he said you know you're you're looking at the wrong 00:26:58.28 --> 00:27:01. end of the equation on the aipo diagram your inner 00:27:01.1 --> 00:27:03. inspecting the outputs to see if they're any good 00:27:03.78 --> 00:27:06. or not but you're not doing is controlling the inputs 00:27:07.63 --> 00:27:10. so that you can't get bad outputs the wisdom and the 00:27:10.71 --> 00:27:12. geniuses over on this side of the equation it's not 00:27:12.75 --> 00:27:13. on the outputs 00:27:15.08 --> 00:27:15. so 00:27:16.58 --> 00:27:18. productivity we gotta look at that mister you have 00:27:18.24 --> 00:27:21. to look at the money piece the budget lost the prophet 00:27:21.04 --> 00:27:24. the loss the budget these air con some considerations 00:27:24.07 --> 00:27:25. and with these considerations here some of the questions 00:27:25.98 --> 00:27:27. we've gotto ask and answer 00:27:28.88 --> 00:27:31. so what is absolutely critical to the customer let's 00:27:31.47 --> 00:27:33. make sure we're clear on those solution specs if you 00:27:33.92 --> 00:27:37. will excuse what's the product demand what is tak 00:27:37.53 --> 00:27:39. time we calculate tak time from product demand 00:27:41.28 --> 00:27:43. attack time is simply going to give us the pace that 00:27:43.47 --> 00:27:46. we have to work out and I'll explain that more detail 00:27:46.4 --> 00:27:48. just a little bit what's the cycle time free check 00:27:48.95 --> 00:27:50. to see how long does it actually take to put those 00:27:50.62 --> 00:27:54. yellow dots down and the diamonds we're going to relate 00:27:54.04 --> 00:27:55. cycle time to tak time 00:27:56.43 --> 00:28:01. okay does does it fit is this even possible and if 00:28:01.42 --> 00:28:03. not then we have to figure out a way to re balance 00:28:03.3 --> 00:28:05. it that's where things like hi john could come in 00:28:06.72 --> 00:28:10. what's the optimal flow what's that look like what's the optimal labor content who's going to do what so the way of innovators to think we gotta let go of our old ways which we've proven don't really work optimally we've gotta let that go and we gotta come up with something radically different so this is where l style challenge teams to say let's just take that current state map and leave it over there. Let's, go over here, on the other side of the room or the other wall, let's, come up with a radically different. If you were starting this business from scratch, how would you design it now? What's. Interesting is, even though we're trying to design it from scratch and do something new, there are these paradigms that are still over on the other wall that start coming over to the new well, we carry them with us. So it's, not as new as we think, until we have somebody who helps break us free of all of that and that's. What a good facilitators gonna help do are a creative problem solver. All right, so we've got to figure out how the, you know, balance and smooth the work. We've got to figure out how to standardize and control it, so that, you know, our inventory is not going out of control. For example, we got to figure out a way to assure quality and pokey yoke the process. As best we can figure out what our budget is. We know what it is. Top line. The customer doesn't want any more than thirty. So we aren't going to get any more than two hundred seventy dollars on the top line we spend more than that we're gonna lose money write a simple math so how we gonna control costs and where are we going toe organize ourselves to do that and then course and that leads into how do we maximize profit? So we ah kuk review of the benchmark dayton the metrics same as before all right, so around three we're going to capture that data right here all right just so we can compare apples and apples incidentally, we're not going to allow, uh, technology so to speak yet it's a wonderful idea that we heard for example online about why don't you get a color printer and just boom hit the hit the print button automate the whole thing in real world that's a it's a it's a great idea right? Why why do we put this? This form isn't really business this is a simulation and just to keep it no fair so to speak apples to apples we're still going to do the work ourselves we're not going to put in automated systems okay, that may be a future kaizen but not not today. All right um and there we've been through those numbers again and capture all that this is where the financial results get a little bit more challenging off suddenly revenues gone from ten dollars a unit tonight overheads. The same two dollars a minute that's just to pay the least. Keep the lights on and things like that. Our labour is now two dollars, per labour men instead of one. That's an interesting shift because really clever cos they're thinking about howto I paid my people more I put them in good smart systems and actually make more grow the business not how do I keep keep costs down and keep labor keep labor really low our offshore even tow to get it to get cheaper labor things like that but how do I I could actually pay people more because the systems that smart one clue is I'm goingto maybe I'm gonna pay fewer people mohr then more people less because I'm going to find a way to optimize and balance the workload which a lot of organizations haven't figured out yet reworking scrap same as before five dollars per unit that'll chew us up if we can't get our our heads around that and then our total inventory is double that's gone from dollar unit two two dollars a unit in around three all right, we're back to demand if there's one mantra if you will through this hole courses it's that's uh whether it's at home or at work what's whatever we're doing let's make sure we've got to make in mind as we approach these these life lifetime problems we all we all face all right, so let's start with defining those five key principles again, this is just a little bit of review but we said, okay, this all starts with value in the eyes of the customers so I'm playing the customer here what I really want howto I really use it we've been through that the value stream how do we know are we going to go about green fielding or white boarding from scratch a new design not get trapped in the old one not try to figure out who what we've got okay, we got eight people now what are we gonna have all these eight people do if we were starting from scratch would say we're starting from scratch all right? And we got to figure out how to get from current state to future state okay to get through all of this all right? So we've got to figure out how to get that flow in the poll a line and get everybody engaged involved continuously pursuing this perfections quick review here, all right, starting with that customer asking what are we getting paid for? We're getting nine dollars now instead of ten I need thirty got all that data okay and there's that they're the numbers so three forms one day simulates ah minute so I want three forms a day or three forms a minute thirty formers in ten each forms got to be accurate, precise six sigma so to speak let's think that and I'll take delivery as soon as possible, all right? We've had these discussions and I'll take delivery as soon as possible okay, I'm looking for I'm looking for flow here this means that we really have to emphasize ah whole different way of looking at our business which is across not just vertically alright way saw before how we were organized in this very functional way susan was being incented okay to just feel that pipeline don't worry about everyone else and by the way in a typical business and this simulation you can see the rest of the business and in the real world you can't necessarily see what's in the pipeline you send off and email you don't know if it's going in tow kurt's box of one hundred fifty or it's going into an empty box but you can't see how full the workload is and in the manufacturing business you might finish your work and somebody else comes over with a forklift or something like that picks it up takes it off to a warehouse or somewhere you never know so if you're being incented on whatever it is you're doing without visibility across the system you won't governate quite like it did yesterday or in the earlier session you'll you'll you'll just keep working because that's what you're getting paid for so these imbalances air going on all the time and it's administratively as well as physically so administrative examples would be emails all right everybody's trying to do the best they can and meet their numbers and be efficient but the question you gotta ask yourself is it possible to be efficient, efficient, efficient efficient, efficient, efficient, efficient, and totally inefficient. And we've already proven it. Okay, we've already proven that, really.