Quality Expo Detroit 2008


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Jeff SKI Kinsey on Project Leadership in Lean Six Sigma environments. Introducing Colonel John Boyd and his OODA Loop.

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Quality Expo Detroit 2008

  1. 1. Leading Lean Six Sigma Projects Jeff 'SKI' Kinsey, Jonah ski@throughput.us (330) 432.3533 (c)2008 Throughput.us LLC. All rights reserved. Greetings The purpose of my presentation was this: convince the audience that Colonel John Boyd and his OODA Loop deserves closer study. Some speakers hope to convince the attendees that their solution is a “best practices” offering, and that by the end of their presentation, the observer will know enough to make an intelligent decision, and want to buy. As a Toastmaster, I know this rarely will happen. And without passion from the speaker, it will not happen. It is my hope that this simple presentation will cause one response: “Tell me more.” 1
  2. 2. Top Ten Ways to Lead Projects #10 — Exploration “Five years from today, you will be the same person that you are today, except for the people that you meet and the books that you read.” —Charlie 'Tremendous' Jones (c)2008 Throughput.us LLC. All rights reserved. Stealing from Guy Kawasaki, I use the “top ten” format to tell the audience where we are, and how much longer they have to listen (before the next speaker takes stage). I would not be a presenter, or an expert in the field of Project Management if I had not heard Charlie “Tremendous” Jones speak in 1981. His presentation made a lasting impression on me, and it is my honor (and duty) to repay him by taking up his mantle. The intent of my presentation was to introduce the power of one man, the late Colonel John Boyd. It was my hope that suggesting that one person can make a difference, as Jones did for me, and by using that example to advance another (Boyd), my efforts would take hold. At least in one’s subconsciensous, after a good night’s sleep. I shared that I seek the nugget of “profound thought” from every book I read and every individual that I study. This quote from Jones was his contribution to the person that I am today. The title “exploration” suggests that we have to be “looking” in order to find truth... 2
  3. 3. #9 Colonel John Boyd (1927-1997) • Observe: unfolding Boyd OODA Loop circumstances; internal and external data • Orient: cultural traditions; Analysis & synthesis • Decide: Decision • Act: Take action; test (c)2008 Throughput.us LLC. All rights reserved. For this presentation at the Quality Expo in Detroit, I was the last speaker in the session, right before lunch. Therefore, I did not know if I would get my full thirty minutes... so I wanted to get this core concept introduced as soon as possible. The OODA Loop is everywhere today, but until you google it that first time, you are mostly unaware. Go ahead, test me! The concept is being used in health care, law enforcement, ultimate fighting (and military operations including those by the USMC), and of course manufacturing just to name a few. Once made aware, you will hear the expression, “getting inside the opponent’s OODA Loop.” Boyd taught that we must speed through these key elements faster than the person or entity across the table (or world) from us. Chet Richards points out that you can “jump around” inside your own loop; it is not necessary (or advantageous) to sequence through the elements, going: O/O/D/A/O/O/D/A/O/O/D/A. You may need (to, and are encouraged) to execute in any order that makes the most sense for your environment, like: O/D/A/A/O/O/A/D/A. 3
  4. 4. #8 Measuring The Flow Rate Of A Matrix* • Since a matrix is a continuous-flow system, to assess the flow rate through a matrix we need measurements in two dimensions: – Substance being transported. – Time. • What substance is transported through your matrix? …information, or knowledge of the needs and wants of your customers. • What are appropriate units of measurement for this customer-needs information? …completed projects. • The appropriate unit of time depends on the typical duration of your projects. • Two units of time are useful most often: days and years. *Definition by Tony Rizzo (c)2008 Throughput.us LLC. All rights reserved. Tony Rizzo is brilliant. And is responsible for my education in the arena of project management. I thought that I was successful before I met him, now, I know that my efforts BZ (before Rizzo) could have been so much more! Everyone is using a ,matrix organizational structure today. Therefore, you are in a continuous flow environment. However, most of us have not done the thinking required to understand EXACTLY what this revelation means to us in the project management arena. It is beyond profound, whatever word that might be! You need to begin to measure your projects as a “rate” which demands a two dimensional metric. The number of completed projects, and the time that has elapsed. Without time, you do not have a rate. Saying that we completed 10 projects means absolutely nothing. Saying we did so in six months conveys a message. 4
  5. 5. #7 Total-Matrix Performance Measurements* n the average number of business days ∑ bi k (=) days / project 1 The Boyd Interval, BI ≡ between the finish of one project and n the finish of the next 1 260 the average number of The Boyd Rate, BR ≡ finished projects per(=) projects / year year BI … Time bi bi bi 2 3 1 1A 1B 1C 1D 1E 1G Finished 1i 1J Projects 2A 2B 2C 2D 2E 2F 2G 2H 2i 2J 3A 3B 3C 3D 3E 3G 3i 3J 4A 4B 4C 4D 4E 4F 4G 4H 4i 4J (c)2008 Throughput.us LLC. All rights reserved. *Definition by Tony Rizzo Total-Matrix is the name Rizzo has given his process. In honor of his discovery of Boyd, he named the two key elements of performance, the Boyd Interval and the Boyd Rate. It helps draw our attention to the fact that speed is important. Especially for your cashflow! In this chart, you see four projects. The only date that matters in project management is the project completion date. Completing one or more tasks early (or late) has no bearing on successful of performance for your organization. Let me repeat: the only date that matters is the end date. If your Boyd Rate (BR) is 130, that tells the world you completed only two projects last year. 260 working days per year, divided by 2 = 130BR. If my organization’s rate is 26BR, then we completed 10 projects. 5
  6. 6. #6 The Proof (c)2008 Product Development Institute (c)2008 Throughput.us LLC. All rights reserved. Want proof? This is a real plot of a real company, before and after the application of Boydian principals by Tony Rizzo and others from his Product Development Institute. Note that in the first two years, the duration of projects lasted an Average (mean) of 140 days, with 14 projects completed. This would equal 37.1BR. After the reorganization: 15.8BR (33 projects completed in fiscal years 2002 and 2003). Notice that the Average (mean) project duration dropped to 48 days per project. One key element to speed project completion is the elimination of “bad multitasking.” See reference on last slide for details. Notice too that variation dropped significantly. Applying Boydian focus with a strong call to action, the same workforce more than doubled their real output. Yes, this plot represents a stable workforce. If someone left the team, they were replaced. No new technology (per se) was introduced. No additional man power (and no less). 6
  7. 7. #5 First, Draw the System Diagram • Professor Chinitz, Thermodynamics 101 Cooper Union • Tony Rizzo, Product Development Institute • H. William Dettmer, Goal Systems, Inc. (c)2008 Throughput.us LLC. All rights reserved. First, draw the System Diagram I thought my understanding and appreciation of “systems thinking” was complete. Then along comes Bill Dettmer to explain exactly what the “rigorous application of logic” means for businesses today. I was a pretty good project manager, until I met Tony Rizzo. Now, I know what I did not know then. More importantly, independently, these two gentleman arrived at the same conclusion: few people understand holistic thinking. Within the Logical Thinking Process (of which I am a “Jonah”), Dettmer introduced “Step 0.” which is: Define the System. Rizzo, in project oriented circles has shared his professor’s demand that engineers must first document the system before taking actions to effect change. These simple observations are profound. Well outside the scope of this presentation. 7
  8. 8. #4 TQM: W. Edwards Deming quot;End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.quot; Due Date Performance (c)2008 Throughput.us LLC. All rights reserved. Deming was a genius The American application of his TQM has disappointed. Perhaps he was not clear enough? For example, here is one of his profound thoughts. Allow me to suggest that he was implying that due date performance in the most important purchasing consideration. But he should have said so! I have been heavily involved in the purchasing function for many many years. When purchasing, I always make it a point to explain my metric to the supplier the first time we meet: “I want it on the day you promise delivery.” Period. End of discussion. That is how I judge vendors. 97% of their grade is based on delivery. More importantly, is based on the promised date. I then create my schedule based on that date. To miss delivery is to jeopardize our relationship. Yes, price is important. But it never triumphs due date performance. Never, ever. 8
  9. 9. #3 TOC: Eli Goldratt Theory of Constraints “The Goal” “Its Not Luck” “Critical Chain” “Necessary But Not Sufficient” (c)2008 Throughput.us LLC. All rights reserved. In 2001, I created TOCreview magazine. In just 95 days. I heard Eli Goldratt live in November 2000, and decided to help bring the message of his Theory of Constraints to the world. From the night I had the idea to create the magazine, until I handed the printer the complete Quark Xpress jazz drive containing all details of the 64 page, full color magazine was just 95 days. I recruited contributors. Hired an editor. Production guru. Sales Manager. Sold ads. Wrote an article. Sold subscriptions. Hired a printer. Finally, mailing over one thousand copies of the premier issue across America and ten countries around the globe. I used Goldratt’s Theory of Constraints (TOC) to make it happen. He is the author of these books, to name his more popular titles. This workshop is on Lean Six Sigma. Those are two great sets of tools to own. However, you really need TOC in order to determine the best leverage point for applying your other tools. 9
  10. 10. #2 Synergy • Lean Six Sigma • Goldratt’s TOC • Boyd’s OODA Loop • Dettmer’s CMM • Rizzo’s Total-Matrix • SKI’s Purple Curve (c)2008 Throughput.us LLC. All rights reserved. Synergy: where 1 + 1 might equal 27 You are here today because you know (or need to know) that combining Lean and Six Sigma can produce results. A recent APICS magazine article told of a company gaining 4% improvement from their Lean efforts. Another 7% improvement from Six Sigma. But over 89% improvement when the combine Lean Six Sigma with TOC! Dettmer took Goldratt’s TOC and Boyd’s OODA Loop to create Constraints Management Model (CMM). It is documented in his book, Strategic Navigation. Rizzo was the first to implement a multiproject (or matrix) Critical Chain Project Management (CCPM) solution based on Goldratt’s TOC. He applied elements of Boyd’s OODA Loop to create his Total- Matrix solution. (Note: Yes, these statements are necessarily overly simplified to fit on this half page. All the better reason to hire me to come to your site and deliver the complete story.) My book, Purple Curve Effect, is a primer on tapping into common sense for uncommon results. It was written before Boyd became mainstream. 10
  11. 11. #1 Best Way to Lead? Backwards! For a copy of my references: Jeff 'SKI' Kinsey, Jonah ski@throughput.us (330) 432.3533 (c)2008 Throughput.us LLC. All rights reserved. Contact me concerning any (and all) details of this presentation. After all, it is only 11 slides long. But it is more than enough to change the world. Honest! After five years of retirement (riding my motorcycle all over the USA {19 states}), I am once again actively seeking new clients. But I also do a lot of mentoring. The best source for jumping into all things SKI, is this shortcut to my blog: www.purplecurve.com It will link you to my blog, which will lead you to everything else... like my company, Throughput.us LLC. It will offer my email address as well as my phone number. Do not hesitate to call. I am excited to help. In fact, that is my question for you: “What can I do to help you?” -ski June 13, 2008 11