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Chapter 1: Start
This is a brown book on design thinking.
Rather than case based, it is workshop
based. It means that you learn by doing,
In this course book we will practice two skills:
1. The workshop method propagated by the design firm ideo.
2. How solve problems faster by applying visualization
What is design thinking?
As a thinking tool, design thinking fosters the ability to
combine: empathy for the context of a problem, creativity in
the generation of insights and solutions, and the skill to
materialize those solutions through iterative prototyping.
Taught as a course at Stanford since 2004, and with a school
funded by Hasso Plattner (see: http://www.hpi.uni-potsdam.de/
willkommen.html), today design thinking impacts processes not
only in engineering practice, but in education and across
disciplines. Its tools are used by product and industrial design
firms to ideate products. It is also used to solve so called
wicked problems – problems for which neither question nor
answer is well-defined. Typical wicked problems for
researchers are: How to win the next Nobel prize? How to
decrease traffic accidents? How to fix global warming?
The goal of this course is very simple: to master design
thinking skills. Rather than using the traditional MBA case
study method, this is a workshop-based course where we
learn by doing. In each session, a thinking tool will be
introduced and practiced.
By the end of the course the student is expected to:
1. Have a sense of self-efficacy (creative confidence).
2. Manage a design thinking workshop: Layout, roles, times
3. Effectively use of thinking tools:
1. A3 / PDCA
2. Root cause analysis
3. Kaizen / 5S
4. Waste identification
4. Know how to Apply design thinking tools to boost research
5. Diagnosis productive processes.
How it is organized?
We are now in the introduction. This chapter contains the
crucial Marshmallow workshop, a great starting point for any
design thinking course. The following three chapters are
divided in sections. Each is to be “played” in a 1-2 hour
session. We say play because the role of the teacher is
intended as facilitator: steering the class rather than repeating
content. At the end of each section sometimes you might find
comments from our classes here at UAE University. They
contain student reflections, post-workshop analysis and
Dubai, December 15, 2013
Chapter 1 >Start >What is Design Thinking 7
am Dr. J. and
this book is about
What is design thinking?
Very simple. Let’s start with design.
Some smarties think that it is how-to
design ... well ... not exactly!
Originally, it was way to organize a
team of product designers so that they
would come up with better product
ideas. However, today it is applied to
solve all kinds of conundrums. And
thinking? Thinking refers to how-to
organize your team. Think about it,
this is not easy. In a team someone
always wants to be the boss, big egos,
shy people or just simply how to
manage the information flow can be
daunting. Design thinking is a set
of rules and “tricks” that help you do
all this well so you get the best out of
your team. How? By influencing
mindset: the way we think and work,
Chapter 1 >Start >Why a New Book? 8
Design thinking books
Books we love
Why another book on design thinking?
Less boring* than Change by Design by Tim Brown, €86.00
cheaper than Design Thinking Research by Plattner (2014) and
considerably shorter than the wordy Toyota Way by Liker
(2007). This is not the typical “reference” book. This is a book
for cowboys. For parallel thinkers, who want to learn by doing. It
is also a great book if you plan to teach a 101 course because it
contains views from both the student and the facilitator.
Toyota + Ideo
Contrary to the Stanfordian view that we use d.thinking to
“create” value (such as in radical innovation) and that on the
other hand we can use Lean tools (such as kaizen) to
“optimize” that value. In this book we will introduce a different
point of view. By the end of the book you will realize that both
Toyota way and the Ideo way of thinking draw on two
common core principles:
The power of visualization
Practice makes perfect (kaizen)
Toyota way in the lab
Moreover, in chapter 4.2 we will show a case study of how we
used the Toyota way of thinking not only to boost productivity
but to do radical innovation in a lab setting.
*Abridged from the Hitchhiker’s Guide to the Galaxy.
You are here
Chapter 1 >Start >MindMap 9
Armed with new
knowledge you now
should readily “see” why
businesses rise and fall
From Toyota we will
learn tools to “see”
From ideo we will
learn the workshop
Chapter 1 >Start >The Marshmallow Workshop 10
►Workshop: This 18 minute workshop is a
great start point for any design class because
there is no better way to learn than by doing.
Tom Wujec has organized this workshop over
50 times and he discovered amazing things
about humans... For example, Did you know
that 5 year old kids outperform MBA’s?
After doing the workshop a universal
principle, that at Toyota has been known for
ages, should be clear:
Yeah but who
made it famous?
Design Thinking IBLC124 room C60034 UAE Univeristy, Al Ain.
Chapter 1 > Start >The Marshmallow Workshop 11
I did this workshop for the undergrads of 2012 twice. The first
time the average height was 17 inches. The second time I
added one senior student to each undergrad group. What
happened? The senior students overtook “leadership” of the
process, the undergrads retrenched inwards (respect for
authority). The average height went down to 5 inches. It was a
sobering moment. Every one felt bad. At Zara (the fast fashion
world) they know that:
When interviewed by a Harvard team about their success a
Zara director says:
“The secret of our company success is just that, that a 22
year old employee can freely say how she sees things to
the top manager, we do not have any other secret.” (Planeta
What you need to know
What happens when they add a material incentive to the
workshop? Can you generalize? (Ariely, 2006)
What does it mean to find the marshmallow in each project?
Do more prototypes really equal more quality?
What is the risk of working for a long time without feedback?
What are the three reasons kindergarten kids outperform
What is the Y axis in
0 1 2 3
Number of prototypes
Chapter 1 > Start >The Marshmallow Workshop 12
The Three Man United Marshmallows
(Abridged from Harvard Business Review, Elberse 2013)
that helped man-u to win more
matches than the rest: (1) Special
purpose training to score in the last
minutes of a match. (2) Visualize the team
four years ahead in the future to manage
player life-cycle and replacement.
Sir Alex Ferguson (1941) started his career as a striker
in regional Scottish league. He never really managed to
get a regular position in spite of scoring 20 goals. In fact, he
fell out with his coach at St. Johnstone club where he was
playing. In 1966, after having transferred several times
between clubs he became the top scorer of the Scottish
regional league. However, in 1974 he ended his player career
with the bitter taste.
Alex as a trainer
The same year he quit playing, at age of 32 he signed up as
part time coach of a club called East Stirlingshire where he
gained a reputation of being a cold-hearted disciplinarian. A
token: At the beginning, he would show up every day at the
club at 7am. Finally, the rest of employees got the message.
Under his leadership, he transformed the team in a positive
way. The quality of the game improved.
Later he would also transform Mirren
and Aberdeen with the same
results. In 1986, after 12 years
of uninterrupted success, he
was invited to join Man U as
(3)Take a step back.
Photo by Austin Osuide.
Chapter 1 > Start >The Marshmallow Workshop 13
Aha moment, a step back
Ferguson was a micromanager. One day Alex Ferguson, who
hardly ever delegated the training session command, was
confronted by his number two in a cafe.
Number 2 - “I don’t know why you brought me here. You
don’t let me do anything.”
Alex - “That is not true” (he protested)
But deep down Alex knew that his number two was right. So he
let him try. A few days later he fully delegated the training
supervision to his number 2. He sat down in the bench and
watched the training. To take a step back from the
training allowed him to take an observer role.
Then something amazing happened: He realized
things that usually escaped him when he was
absorbed in hands-on training:
New subtle patterns on players appeared; he could see which
player was injured even if the player thought he was fine,
he could see changes in players moods and then he could talk
to the player and find out if the cause was family problem or
something else, he discovered a big marshmallow!
Luck? No. Motivation? No. Training!
Man U has overturned most games in the final minutes of a
game than any other Premier League team. What is the real
reason? Luck? Values? Motivation? No. Alex prepared the
team for those special occasions when a team is losing the
game and there are only few minutes left. He made the team
do special purpose training for such situations.
Visualizing life cycle of players
Ferguson had discovered a third marshmallow. He was very
good at visualizing how the team would be in 4 years time and
he planned accordingly. He was very good at discarding
players that would enter decline, but always kept a couple of
old cats on payroll so the culture could be transferred from the
old generation to the new one.
Life-cycle of a player
18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37
Number of goals per year
Team performance projection (example)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Valencia Jones Lindegaard Gea Giggs
The power of step back. For more see
back-up man in the next chapter. For a
similar story of step-back technique in a
soccer team check out page 135 of The Ten
faces of Innovation by Kelley and Littman
Ferguson didn’t have to
discover lots of
marshmallows in his life
span to be ultra-successful.
Chapter 2: The Ideo Way
Karen Endicott/Thayer School of Engineering at Dartmouth
Connecting the dots - What is the function of the whiteboard? It is a shared
memory space that facilitates connections between: gathered facts, ideas
and cognitive processes.
Photo by Karen Endicott/Thayer School of Engineering at Dartmouth
Chapter 2 >The Ideo Way >Ideo 19
This is the
►Ideo. Founded 1977 Palo Alto, CA. Designed
first Apple silicone wrapped ball mouse.
► Charlie Rose interviews David Kelly - father of
design thinking. In his 20s David had invented
“toilet occupied” sign for passenger planes while
working at Boeing. However, he was not quite
satisfied with life. One day he enrolled a design
class at Stanford. He loved the fact that they
combined art + technology. Later his pal, Steve
Jobs would ask him to design the first Apple
mouse, and so ideo was born. In the interview Kelly
is to blame for a $17 mouse, a vertical Colgate
tube and Pringles. The key points are:
1. Diverse people building on others ideas
2. It is hard to find people from different
culture backgrounds that can do (1) well.
3. Understand users through observing them:
first hand empathic observation.
4. A follow up interview by BloombergTV is here.
D. Kelley / Ideo
In my 20s I was
an unwed, frustrated
engineer. One day I took a
design class at Stanford and it
changed my life.
Chapter 2 > The Ideo Way >Ideo 20
Behaviorism in historical perspective
The CBS interview reveals a simple truth, that design thinking
is about designing taking into account human behavior.
Today, this seems so natural. But was it in 1977? For reference
Psychology as a field was only invented in 1879, brainstorming
in 1941, and B.F. Skinner ideas on behavior were not
disseminated before 1968, and then only until 1978 the
Behaviorism field had a journal of its own.
Skinner influence on Kelley
Before Skinner it was accepted that the
emotions, behavior and actions of a man came
from his inside from his inner thought
processes, inner attitudes, “His nature” and so
on. After all, where else could they come from?
However, Skinner did not think that was very
scientific thinking. He conceded that one’s state of mind
was the cause of behavior, but what drives the mind?
According to Skinner humans believe that we act
autonomously but in reality the environment is what shapes
our behavior. Skinner proposed that the environment had a
much greater effect on the individual than previously thought.
In particular, he proposed that to improve human race we need
focus on creating better environments, rather than better
people. Because good environments will conduce to good
How does this connect to design thinking?
Very simple. If you want your designers to
produce better solutions give them a better thinking
Skinner’s idea was considered ‘radical’
at the time.
you are is defined
by your behavior.
So let’s make environments
that are conducive to
Chapter 2 > The Ideo Way >Ideo 21
To learn more
For a deeper discussion refer to Chapter 47 of 50 Psychology
Classics by Tom Buttler-Bowdown and Beyond freedom and
dignity by B.F. Skinner, published in 1971.
Additionally, Skinner had some “radical” views on education.
As a token: in 1968, The Technology of Teaching, BF Skinner
has a chapter on why teachers fail (p. 93–113): he says that
teachers have not been given an in-depth understanding of
teaching and learning. Rings a bell?
Note of 2014.3.25
“Fail faster to succeed
sooner” -relate to students
delaying putting the
marshmallow on top
because of fear it will crash
the spaghetti tower.
Chapter 2 >The Ideo Way >The d.school Gift Workshop 22
A Workshop about Empathy
► A step forward from the marshmallow
workshop, and an indispensable preparation
before your next challenge, the goal here is
to redesign the giving-a-gift experience. This
workshop works on your empathy skills that
you will use to understand users’ needs while
you reconnect with your creative self. The
secret to a productive workshop is to step
out of the comfort zone by pairing with
someone outside your circle of friends. In the
video the course is facilitated by George
Kembel and Jeremy Utley of the d.school.
Materials available at the course site.
►d.school at Stanford University, CA. is the brainchild
of David Kelley and was funded thanks to $5M from
d.School Stanford University
Gift experience workshop review. Student prototypes Sept 23 2013 @ UAEU 23
Sketch phase. Try to generate as many crazy radical ideas as possible.
Chapter 2 >The Ideo Way >The Shopping Cart Workshop
This 1999 ABC video features how ideo
redesigns the shopping cart in two weeks. It
is a great way to learn how to do a
workshop. Lets take notes on the 5 “steps”
they mention. Then pay close attention to
the layout. In the room nothing is casual:
the cramped table, Peter standing, Kelley in
the corner leaning back and quiet, the wall
(1) Gather facts & knowledge
(2) Share facts with team (define)
(4) Build-on others ideas
(5) Prototype & iterate
Workspace influence on thinking behavior
Layout shapes thinking
Did you know that how you set up a
room, colors, illumination, background
music and other “details” can greatly
affect how your brain thinks?
In 2012 Ideo released a pdf called
toolkit for educators. It is a step by
step rationalized guide to their
“workshop” method. It contains tips,
checklists, how to organize a fact
gathering field-trip, etc.
Chapter 2 > The Ideo Way > The Shopping Cart Workshop 25
The Author explains the role of the facilitator. Oct 15th 2014.
Chapter 2 >The Ideo Way >Examples of How Workspace Shapes Behaviour 26
Rosemary Martinez. ENFP. Textile and Interior
design. Mexico. “Design for impact”
AR218 Hotel Rooftop, Mexico DF, in August 20th, 2014
Listen to the Interview
Recorded at AR218 Hotel Rooftop, Mexico DF, in August
“My Grand-Dad was a telegraphist. After the
Spanish Civil War ended, the fascists put seven
death sentences on its head - Mostly for being
a free thinker. His son - my dad - had no future
in Spain, being the son of who he was, so
emigrated to the UK. He found a job at Marconi
where he even filled several patents. We
landed in Mexico in July 20th 1969 - the same
day man was landing on the Moon, so no one
came to receive us at the airport.”
When I ask students
what influences their
behavior the most: their
inner self or the
environment, most say
the inner self. Then I
show them Rosemary
Chapter 2 > The Ideo Way > Examples of How Workspace Shapes Behaviour 27
Listen to the Teenager Room
Recorded at AR218 Hotel Rooftop, Mexico DF,
in August 17th, 2014
“How could he
study in such
Teenager Room Project
Marie’s Room Marie’s Room
Recorded at AR218 Hotel Rooftop, Mexico
DF, in August 17th, 2014
Listen to the Maid Story
Recorded at AR218 Hotel Rooftop, Mexico
DF, in August 17th, 2014
Marie was shy and
had mediocre grades. We
re decorated her room. A few
months later he had become the
social center of her class.
Chapter 2 >The Ideo Way >The Why Boring Classes Workshop 29
Now it is time to do your own workshop.
Pick a topic that motivates students
such as... Why are classes so boring?
Why people do not recycle? Assign
expert roles to each student on
relevant topics such as:
1. How do they do it in other countries
2. Interview end users on the topic
3. Interview policy makers on the topic
Then give students one week to go on a
first hand fact finding and data
gathering mission. One week later:
Divide students in groups of 9 max,
assign one student as a facilitator to
each group. Make sure to follow exactly
the ideo shopping cart table layout. The
teacher will act as backup man and
advices the facilitator if they naturally
drift off course. The background music
of the gift workshop is great to help shy
students talk. At the end demand a one
powerpoint solution proposal to the
problem and tell your students that it
will be sent to the provost! We did this
Photos of the “Why boring classes” workshop, 25 Sep’13 @UAEU
workshop and after 90 minutes some
groups had reached the flow state of
intellectual exhilaration. After time was
up, some didn’t want to leave the room
and continued discussing. That is a
Chapter 2 > The Ideo Way >The Why Boring Classes Workshop 30
The Student’s Reflection (unabridged)
By Naama Alshamshi
It was fun working in a real workshop. When you actually
do something it gives you a deeper understanding than if
you read hundreds of books about it. While working in
this workshop, I personally realized how little things you might
not notice can affect the production of the workshop things like
the seats arrangements and the work table. Because if the
table was huge and seating were far from each other the
expert won’t be able to communicate in the way they should.
Aisha Alshamshi says: I learnt the importance of doing the
homework and coming prepared, because it
gives you a good understanding the problem you
want to solve, it also makes you see the
problem from several angles, which helps find
the best solution. Aisha also said that working
in a diverse group of people was a good
experience; it allows you to see how different
people think, and different thoughts help to solve
Mouza Almuhairi agrees with Aisha and says that she
realized how working with a team can be more
productive, because you see the same problem but
from different angles. She also says that this
workshop helped her develop my teamwork skills,
because you learn to respect people’s ideas and
opinion without criticizing.
Being the facilitator is fun, but hard at the same
time, because you should keep the group
working according to the time schedule. Even
though we went over time in our workshop but
the facilitator can’t allow that in big workshops
because in the business world time is money.
On that topic Ohoud Alkaabi listed controlling time as one of
the things she learned in this workshop, alongside
sharing ideas and group work. She also said
that she learned how to use the design
process to dive into real life problems.
Like the problem we discussed in our
workshop which was the problem of “boring
classes” in the university. Yassmin Albraiki
said that she learned that there are many ways
to solve this problem, like adding activity-based
classes will help break the routine which is the main reason
for boring classes. She said that she is now confident that we
can solve any problem when u analyze it with a group and
share your ideas and opinion.
Another student agrees with that:
Islam Abuwatfa said that
sharing the ideas and working
together produce better work,
she also learned that team
work is much better than
Chapter 2 > The Ideo Way >The Why Boring Classes Workshop 31
individual work, as a team or a group we
were able to come up with more ideas,
and better ones. And I am sure we
will use these tips we learned in
future workshop either in the university
or in the work fields.
Group A facilitator,
Naama Al Shamshi
Comments from the backup-man (Dr. J.)
There are 4 ways to express an idea:
Sketching (2D Prototyping)
A 3D Prototype
Each one has its advantages and activates different brain
areas that can help you “see” things that other mediums of
expression cannot convey. As Tim Brown says in his book
Change by Design, there are stories you can only
explain by drawing. So lets use it more! (Brown, 2012)
next page for
90 minute workshop results
“Activity based classes” and “Color Therapy” were two
of the best ideas proposed to combat boredom in the
Note to self
Send to the students a
copy of Guy
rule video on how to
do great slides
Majors from Engineering
have a harder time
Chapter 2 >The Ideo Way >Self-efficacy 32
►In this deep talk, Kelley cites a colleague from
Stanford, the professor Albert Bandura and the
concept of self-efficacy. Self-efficacy is the belief
that you can change the World by doing that what
you are “set” to do in it. In other words, a “sense”
that you are on Earth to accomplish a mission and
the confidence that you can do it.
People that discover self-efficacy usually quit their
jobs and do what they believe they have to do
(helping the poor in Africa, building an iPhone,
making a 3D movie). While not all of them become
rich or famous here are some examples: Mother
Theresa, Steve Jobs, Albert Edison, Elon Musk,
Warren Buffet, George Soros, Viktor Frankl,
Lennon, to them life was meaningless if they
cannot accomplish their mission. For example,
Elon Musk’s mission is to go to Mars. Did you find
► Albert Bandura. Worked in Alaska. Now professor at
Stanford. Formalized the idea of self-efficacy.
When I was young I
was very poor, so in summer I
took a tough job in the Alaskan
tundra. This changed my life.
Observing my peers’ drink & gamble
subculture opened my mind. Now I am
the fourth most famous psychologist.
Photo by Pajares, F. Albert Bandura your mission yet?
This is Alex Bogusky.
He is a high-profile example of
self-efficacy. Alex has won every
award you can win in advertising. One
day he quit everything to help a small
Fast Company cover of June 2010
10/26/13 Ideo's David Kelley: How Did I Get Here? - Businessweek
Everyone should get a
terminal disease once. It helps
find your self-efficacy. I found mine:
to help others find their creative
Charlie Rose interview
up in a DIY
Chapter 2 >The Ideo Way >The Recycle Workshop 35
01►After the Why Boring 90 minute workshop now you are ready
for a full 1 week/2 sessions workshop. In spite of not yet having
power tools such as Toyota’s 5 Whys or A3/PDCA, this is a great
workshop to engage in preparation and facilitation. So. Why do
people not recycle?
► Abu Dhabi Emirate, UAE. Founded 1971.
GDP per capita: $29,877. HDI: Very high. (2011)
03►Debriefing - Share collected data.
An outcome of the session should be what
additional data is needed or missing at the
current stage and what action steps will be
taken to get it.
Day 1 Day 2
02►Briefing - In UAE on only 10% of pet
bottles are being recycled and only 12% of
the parents advise their kids to recycle. In
Japan? 70% of PET bottles are recycled. In
USA? 30% (Berengueres, 2012)
Evolution of the post-it wall during session 1
Wall of post-it
Chapter 2 >The Ideo Way >The Obesity Workshop 38
UAE Univeristy, Al Ain, Abu Dhabi
Emirate, UAE. Workshop of 2014.
We did this workshop in Oct. 2014. We had to restart it 3 times because
the students failed to gather relevant data for the brainstorming session.
So I decided to show them photos of the previous recycle workshops so
they could see the kind of data they are expected to bring. We also
screened the movie “Fed Up!” - Which breaks away the pre conception
that obesity is related to calorie intake. No good data no good
Evolution of the post-it wall during session 1
Final prototype group A minute 75 session 3
Chapter 3: The Toyota Way
The Toyota Way - Tools to “see”
Did you know that many of the core design thinking principles were being used by the
Japanese in the 1970s? Visualization, time management, Genchi-Gembutsu and iterative
prototyping. From Toyota we will learn not only about the respect for the individual but
thinking tools that make you smarter.
Many of ideo’s methods
such as empowering a team
by controlling criticism, had
been practiced by the
Japanese since 1970
Both ideo and Toyota
use time and deadlines
to keep teams motivated.
(Note: FANUC x10 speed
Recap of the Chapter: The Ideo Way
Why we learn from Toyota in DesignThinking class...
Chapter 3 >The Toyota Way >Brief History of Toyota 42
►This is a documentary clip by Toyota. It is
presented by Alec Murdoch - who was a speaker
for Toyota USA. The full online version is here.
The point of the video is the stellar moment
“A son decides to invent an automatic loom to
free her mum from tedious weaving work”
This scene synthesizes the Toyota ethos: Why it
exists and its purpose in life. Replacing a boring
job with automation (aka autonomation) was just
one step. However, they did not stop there. In
their drive to improve they stumbled upon some
awesomely productive principles and tools that
later became what is known as the Toyota
Production System (TPS).
► Toyota. Founded 1918 by Sakichi Toyoda.
A Toyota Kyushu factory tour organized by tikitabi.com
When did Toyota become famous? The 1973 oil-shock
What the video omits is that no one was paying attention to
Toyota until the second oil shock came.
“The first time that TPS gets public awareness is during the fall
of 1973 right after the first oil shock. From that time are the
mythical pictures of Japanese homemaker’s scrambling in
supermarkets for a WC paper roll. Due to the shock, WC-paper
became scarce in Japan. The scenes are depicted in
some films of the era. That year many companies logged red
numbers in their Profit/Loss statements, but not Toyota. In fact,
that year Toyota boasts yet again record profits. It is then that
many companies realize that there might be something to be
learned about Toyota’s TPS. Many consider the possibility of
copying Toyota. The first TPS consultants are born.
Management consultants at Chubu Seisanrenmei create TPS
kenkyukai (study group) where even Taiichi Ohno himself
would give some talks. It is in the second half of the 70s when
the perception that the idea that Toyota’s production
technique multi-product mini-batch is efficient diffuses through
the Japanese industrial tissue.” (p 27, Berengueres, 2007)
Toxic environments* for innovation - Toyota Today
However, the reader should not be fooled into thinking that
nowadays Toyota is a great place for inventive people. It is
not. Today’s Toyota is as a toxic environment for creativity as
GM, or Samsung.
Notwithstanding the video,
at the end the NUMMI
factory was an economic
failure and closed. It its now
owned by Tesla Motors -
where the electric car
revolution is happening
*Toxic environments for
innovation (Esslinger, 2009)
Toyota USA assembly line. Photo by carenthusiast.com
Chapter 3 >The Toyota Way >Waste 44
The seven kinds
Chapter 3 > The Toyota Way >Waste 45
Seven kinds of waste found in the workplace
This is the number one source
of waste. It is the waste that
stems from believing that
producing in big batches is
more efficient than producing
in small batches. Huge costs
are incurred in unsold items.
2. Waste due to Superfluous
Waste due to the existence of
unnecessary things: such as
personnel, machines, and
inadequate machines. Little
savings add up over time.
3. No flow
It is the waste due to the lack
of flow. Stop and go in
production and/or suboptimal
line layout, lack of synchronization, changeover times.
Waste of doing unnecessary
work. Due to ignorance, lack
o f t r a i n i n g , l a c k o f
technological expertise, lack of
planning and/or automation.
5. Waste of Movement
These comprise a l l the
movements done during a
work shift that do not add
value: Ex. a bolt picked up
from an unnecessarily low
What is the true cost of
How much did we save
Lack of training is a big
source of mistakes. Photo:
The Simpsons (c) News
Spaghetti diagrams. Same machines, two layouts.
Where would you rather work?
Chapter 3 > The Toyota Way >Waste 46
recipient, transportation. Compared to a straight line production
layout, a u-cell layout reduces the time spent by workers on
walking anywhere from 2xL to 1xL, this can add up to 4 to 6 km per
day in a typical factory. This Kitchen Kaizen video by Gemba
Academy illustrates how to measure improvements in movement
6. Defect Production
It is the waste due to production of defects caused by: lack of
training, not enough poka-yoke, quality controls, and poor and
inadequate maintenance of machinery. In 2010 Toyota recalled
more cars than it had produced. The cost of the recalls is not
It is the waste related to the cost of maintaining oversized
warehouses that act as a buffer between poorly communicated
processes. Additionally, one pernicious effect of overstock is that it
A Toyota recall according to The Guardian
How overstock hides problems. (Berengueres, 2007)
Chapter 3 > The Toyota Way >Waste 47
Added Value versus non-value-added Activity
A typical breakdown of how time is spent to make a product: Time
can be spent doing things that add value or that do not add value:
When optimizing operations, most of the time managers focus on
the green part. For example, buying a faster machine.
However, the big savings opportunity is reducing resources spent
in the non-value-added activity because it is simply put: larger.
Non Value Added activities Value
Non Value Added activities Value
Non Value Added
Non Value Added savings
Photo by Steve
Chapter 3 > The Toyota Way >Waste 48
The Nissan turnaround case
When Beirut-born Carlos Ghosn arrived at Nissan
circa 1999, Nissan was losing money. What had
been one of the flagships of Japanese car-making
knew how to make cars but could not
manage to make a profit anymore. It did not
take long for the triple digit IQ CEO to figure out
was wrong. For one he was appalled that a
plant manager proudly reported that he had raised the
productivity to a new record, while he did not know what the costs
his efforts to the company as a whole were (cost of storage, cost of
raw materials, labour). This was a sign of clear dysfunction:
engineers, purchase managers, designers, and sales people were
not working with the same goal. Carlos had to cut costs and cut
them fast. To solve this he forced various types of employees to
work together in cross-functional teams. For
example in a meeting when designing a new
door for a car, there would be various
employees from different parts of the
organization so all costs could be
represented/optimized. This means not
only purchasing costs, but assembly costs,
Genchi Genbutsu? Carlos Ghosn at Nissan’s
Honmoku Wharf, a logistics hub about 10 km
southeast of Nissan’s global headquarters in
Yokohama, July 16, 2011. Picture by Bertel
Ghosn stars in the movie The revenge of the
electric car by Paine (2011).
Don’t waste time
there is no time!
Chapter 3 > The Toyota Way >Waste 49
warranty costs, customer points of view, etc. He also forced the
Japanese managers to use English to communicate. This is what
happened: while a manger in speaking in Japanese would talk very
politely and say his opinion very diplomatically in long sentences,
when forced to use English he would be ruthless, direct and clear
(time saving). Five years later, from near bankruptcy, Nissan
improved its operating profit (EBIT, or
earnings before interest and taxes)
from negative to 9% (Magee, 2003).
Even if your workplace is not
a factory, and you do not
produce cars, Can you tell
where is the most waste in
Carlos interview where he explains cross functional:
is my goal at
I am having fun!
Carlos G. Nissan ceo pay in Millions
0 2.25 4.5 6.75 9
teams? Of course! Isn’t
that common sense?
Chapter 3 >The Toyota Way >The Five Whys 51
The Five Whys Method
Chapter 3 > The Toyota Way >The Five Whys 52
Itsutsu no Naze means in Japanese The Five Why’s. It is an
expression born in Toyota that has been popularized recently
by popular magazines such as R25. It is a technique based on
searching relentlessly for the root cause of problems (it
requires stepping out of the comfort zone). It also means that if
we want to solve a problem properly in a permanent manner it
is necessary to focus on the root cause not in its sprawling
branches. Example problem:
Boy, I have a headache...
❓Why does it ache? Because I have a cold.
❌ Solution: Take an Aspirin. Wrong!
Meanwhile at Toyota’s...
I have a headache...
$ Why? Because I have a cold.
% Why did you catch a cold? Because yesterday I
spent time in the cold.
& Why? Because I didn’t take my coat.
' Why? Because I didn’t think that it
would be so cold outside.
( Why? Because in the morning I
don’t check the weather forecast. (✅ )
Install a thermometer in the balcony and watch it before
going out. The intake of an aspirin is just a superficial
countermeasure. The thermometer, on the other hand,
would solve the problem permanently. However, it requires
two things: The creation of a rule (watch the thermometer
before going out) and discipline. As in real factories, success
depends on how motivated and disciplined the workforce is.
Why five and not another number? It is curious but at Toyota
they wonder the same. It turns out that if one asks repeatedly
five seems to be the magic number of steps. Itsutsu no naze is
a powerful tool that can help to solve problems for a long term.
Chapter 3 > The Toyota Way >The Five Whys 53
Why do we catch colds? The body is
continuously generating antibodies that
must be replaced continuously in its war
against microbes. The microbes try
continuously to invade our warm body.
When it is cold, the body stops
manufacturing antibodies as an energy
saving measure. If the cold period is
long, the defense level drops and the risk
of infection rises.
Chapter 3 >The Toyota Way >A3 / PDCA 54
A3 / PDCA
Chapter 3 > The Toyota Way >A3 / PDCA 55
P.D.C.A stands for Plan-Do-Check-Act. It is also known as the
Deming circle. The virtue of P.D.C.A is not in the Planning,
Doing, Checking or Acting but in the separation of Planning
from Doing, Doing from Checking and Checking from Acting. It
is a methodology that ensures that a change to a process such
as one improvement is isolated from the following change. If
you change a process very often, as in kaizen/continuous
improvement, the hygiene of your process might suffer. If
changes are applied randomly or not managed properly it can
be hard to track which of them improved the
process and which didn't. PDCA solves this
1. Plan = Think of one potential improvement
2. Do = Try it
3. Check = Measure the “effects”
4. Act = Adjust. Evaluate. Fully implement the
proposed change OR discard change.
5. Go to step 1 and repeat cycle.
The A3 restriction
Tracking a PDCA initiative can be done by
using the A3 method. A3 method is very
simple: you need to be able to display all the
information regarding your project in one
single A3 size paper. This space restriction will help you focus
on the essential information only. The A3 method can be seen
as a reporting method. The idea is to access all the essential
information regarding a project with a single look. A3 reporting
is commonplace in Toyota and at many other Japanese
Note: Since the Japanese language is twice as dense as
English you might need to use smaller 8-point size typeface to
be on an equal density footing. Summarizing: A3/PDCA is
about quantifying the effects of change and the time-evolution
PDCA according to Johannes Vietze.
Chapter 3 > The Toyota Way >A3 / PDCA 56
of the change process itself. The ultimate goal is to have total
control over the change process so it leads to steady and
reliable improvements. This cannot be insured if one change is
not separated from the other changes. The following figure is
an example of a famous PDCA example by Staffan Nottaberg.
How–to A3 Report and Value Stream Mapping
A3 Report is a way to implement Deming’s PDCA (Plan-Do-
Check-Act). Toyota uses it in meetings for problem solving and
to restrict information overload.
Here goes the example:
Briefing: We have a family that gets stressed during the
morning, there are three daughters.
Here is how a Toyota man would solve and organize the
information using A3/PDCA:
In Theme section write: Stress free morning procedures.
In Background whatever info you collected, for example:
School starts at 8.20. The children need to sleep for as long as
possible. They must leave home at 7.45 to catch the school
In Current Condition: Lack of time almost every morning.
Stress creates bad atmosphere in family.
The so-called Value stream map of the morning activities
might help you visualize the problems. It indicates that value
adding processes only are 17 out of 45 minutes, the rest
seems wasted time.
Goal: Ready to leave for the bus within 45 minutes without
Value stream map according to Staffan Nottaberg.
The A3 method according to Staffan Nottaberg.
Chapter 3 > The Toyota Way >A3 / PDCA 58
Let’s assume that the father investigates why T2, for instance,
is so long and finds out...
Root Cause Analysis (using Five Why’s)
Why stress? Because a considerable amount of time is
spent on T2.
Why is so much time spent on T2?
Because Samantha (one of the daughters) has to wait
for the hairbrush.
Why does she have to wait?
Because her sisters use the hairbrush.
(Try to define who is responsible for what action)
1. Mother buys two more hairbrushes. Due Friday.
2. Father reserves space for new hairbrushes, when they are
not used. Due Saturday.
3. Father will measure if T2 decreases after (1) and (2) is
Effect Confirmation (try to be visual, charts): Try to
measure the effect of the countermeasures... Does the stress
decrease over a week or not? Find and use a key
performance indicator. For example: dBA noise levels, how
many minutes late they are, or survey of the daughters’
Follow-up Actions: Did the countermeasure work? If yes,
adopt it. Mother will buy another two hairbrushes. It’s a backup
in case of one ordinary is lost. Due Tuesday. As always for
every task define clear responsibility of who when what.
More A3 Samples
A Microsoft Excel based A3 PDCA.
A3 from 2012 class - How to prevent car accidents.
2013 Fall A3 / PDCA
How to discipline children?
Chapter 3 > The Toyota Way >A3 / PDCA 61
The Student’s Reflection (unabridged)
I think that A3/PDCA helps me to solve
complex problems in an easy way. However,
I can solve the problem by following (Plan, Do,
Check, Act) and in only one paper. It has developed
my thinking to find the best solutions, and
imp r o v eme n t s wi t h safe-to-fail
experimentation (methodology), so it's
Less is more
Aisha Al Shamshi
The A3/PDCA helped me to solve problems in
a really fun and interesting way and how we wrote the tiny
steps to get to the main idea and write down the best solution
of the problems, and the most important thing about the A3/
PDCA is that it helps us in solving the problems of the layout.
So by the A3/PDCA which has all of these details.
Naama Al Shamshi
I believe that the A3/PDCA is very helpful,
not only that it helps you summarize
and display the problem and the solution
in a fun, interesting way, but what is more
important it helps you identify the problem first,
by using the 5 whys for example, you may found
out that a simple problem is bigger and deeper than you think.
It helps you get to the root of the problem, because cutting the
branches won’t kill the problem, but finding out the real cause
The A3/PDCA also helps you solve your problems by easy
steps, it allows you to classify what you know, what you need
to know and the goal you want to reach. By doing that you can
view the problem in hand as small pieces rather than a huge
one so it get easier to find a solution to it.
Plus when doing the counter measure and the
effect you can see which solutions work and
which don’t, or which solutions could cause
works and what
Chapter 3 >The Toyota Way >The Five S / 5S 62
The Five S / 5S
Chapter 3 > The Toyota Way >The Five S / 5S 63
Historical Origins of 5S
5S is a “slogan” used in kaizen initiatives of the workplace in
service and industry sectors to increase efficiency.
5S is named after
Throw away superfluous things (put down seldom used
Every tool must have its designed place and be returned
to that place after use.
Clean, clean and clean.
If you make any change in the workplace, make sure it is
easy to follow by making a standard, or rule.
Build a culture of rule obedience.
5S in the class
Now you are ready to do 5S. A class is a perfect place.
Seiri: Let the students clear the desks of superfluous objects,
Seiton: Are the mobiles, papers and pens on the desk aligned
or placed at random orientations? Let the students align all the
objects on the desk. Do they look smarter?
Seiso: Can we clean any dirt in the room?
Seiketsu: If the previous three initiatives are liked by the
students why not make them a rule?
Shitsuke: Lets think about how to enforce the rule so it is
We can also do 5S by organizing a 5S-kaizen drive:
Organize a kaizen drive
There are three golden rules on how to successfully carry out a
When there is a 5S activity (such as a meeting) all the
employees from the boss to the newest employees are
engaged and on an equal footing.
Things are decided by consensus. Consensus rules.
Chapter 3 > The Toyota Way >The Five S / 5S 64
Desk before and after seiton.
Desk before and after seiton part II.
The directives of Kaizen committees’ actions must be
followed up by controls and inspections.
Someone left Doritos on my desk.
What is a long term solution?
How to make people follow the
5S map by u-note.me (in Japanese) http://u-note.me/note/47485926
5S map according to Strategos Inc. Consultants.
Chapter 3 > The Toyota Way >The Five S / 5S 67
5S in more detail
Seiri. Seiri should be the first S. If you cannot do Seiri you
won’t succeed with any of he other S’s. Seiri is related to the
concept of muda. Definition – Seiri is about discriminating the
superfluous things from the strictly necessary things needed to
perform a task, job or project. In this way the work environment
is simplified, things are found faster, it is harder to make
mistakes and productivity increases. Seiri = using the trash bin.
Seiton. Seiton is the second S. It means to align things.
Definition – Seiton means to have the work environment
ordered and tidy (everything labelled...) so that anybody that
needs something (for example, a tool) does not waste time
looking for it. Seiton means providing a place for things to be
stored. In the previous photo a small pot for pencils is added to
keep a pencil/s in place.
Seiso. Seiso (to clean). It comprises those measures to
prevent and avoid dirtying. The aim of seiso is to kill the
generation of dirt at source. Example: someone left Doritos on
the table. A brilliant seiso measure is to attach a vacuum
cleaner to an electric saw or grinding machine so that waste is
collected instantly. Killing the source of dirt.
Seiketsu. It means Standardize. It is the fourth S. It means to
try to make the improvements of the preceding S’s permanent
and sustainable. Establishing rules is a great way to
encourage good habits. Works better if the employees are
involved as stakeholders. A poster can serve as a reminder
that no Doritos are allowed, that the pen should be returned to
a pot and that a clip should bound loose cards.
Shitsuke. The rules that the own employees have decided
should be respected and obeyed without exceptions. Shitsuke
is about the battle for the minds and hearts of the employees.
Displaying a poster with the new rules is a great way to
encourage good habits every day.
Chapter 3 >The Toyota Way >Comparison of Ideo versus Toyota 68
Core Principle TOYOTA IDEO
Started 1918 ( with Pokayoke) 1977 (with the Apple mouse)
Less is more (time) Instill “sense of urgency” to
Skillful use of deadlines
Human centered Ergonomy respect Empathy for user
Empowerment Any worker can stop the line Hire people good at building on others
Visualization solves most
Kanban, A3, tackt time displays,
Visual Management, Andon
Post-it everywhere, the whiteboard as
a communication medium
Standardize Standardization of tasks,5S,
Kanban, rule obedience
The “standard” toolkit
Practice makes perfect Kaizen, PDCA, humility in
Chapter 3 >The Toyota Way >On the Importance of Seeing 69
What did this two high-achievers have in common?
Larry Bird - three times NBA
Most Valuable Player. Three
times NBA winner. Barcelona’92
Dream team member. Photo by
Manfred von Richthofen - WWI
respected flying ace. He defeated
more than 100 enemy planes in
battle. When he died Allied
squadrons stationed nearby
presented memorial wreaths,
one of which was inscribed with
the words, "To Our Gallant and
Larry’s visual acuity was tested
once by NASA. He scored one of
the highest scores ever.
Why did von Richthofen defeat so
many enemy planes even though he
was flying a red plane? He could spot
enemy planes before they spotted him,
and then adopt a winning tactic.
Tools such as Genchi-Genbutsu
and Five Why’s can help
you to “see” better
Chapter 4: Case Studies
Eri Nobeashi / Comptoir Des Cotonniers Japan
To test skills in real
Chapter 4 >Case Studies >The Five Dollar Workshop 72
►Tina Seelig, Executive director
of the Stanford Technology
you know that
humor is always based
on reframing a situation?
You can be more creative by
reframing a problem.
►In this video you can see what Tina’s
students do as part of her workshop courses at
Stanford. I like this video because it does not
explain how to be entrepreneurial, it shows
how her students became so. The talk is
based on her 2009 book, What I Wish I Knew
When I Was 20. Love Tina? Her lectures are
online at the Stanford e-corner & her iTunesU
Briefing - Each group is handed an envelope
with 5 dollars, or with 10 clips or with a pack of
Didn’t I say that
post it notes. Your mission: you have five days
to create as much value as possible from this
initial seed capital / investment. Now you have
Edward de Bono
the tools such as the ideo toolkit to organize
knowledge and have the know-how to organize
workshops. After five days Stanford students
came back with an average of 400 dollars,
others come back with something much more
TEDx Stanford. Photo by Tamer Shabani important: a newfound self-efficacy.
Chapter 4 > Case Studies > The Five Dollar Workshop 73
What you need to know
1. No Problem, no opportunity, no business, no fun.
2. Something leads to something, nothing leads to nothing
3. Make your own luck.
An example of make your own luck
Zappos objective is to hire positive people
because positive people are better at customer
service. Interview: The applicant is given a task, to find the
mistakes and typos in a (fake) newspaper. The newspaper
contains a headline that reads: “I you read this stop the
exercise and claim $400 from the interviewer.” People who
consider themselves lucky usually find the headline and get
$400. (Hsieh, 2010)
In contrast to Tina, we did not hand out clips or post-it packs.
We gave each group two fridge magnets from Daiso store. We
told them that they had four hours to start a business to make
as much money as they could.
Two days later the students presented their experiences in a
three minute pitch. I was blown away.
Group A collected $236 by going to the UAE Maqam campus
university canteen and challenging students to beat them to a
mind game based on a National Geographic TV episode.
Group A earned $236 in 4 hours by means of a mind
game. They iterated three business ideas and settings.
Chapter 4 > Case Studies > The Five Dollar Workshop 74
Group B audaciously refused the magnets and demanded
real money in seed investment (as they had seen in Tina’s
first workshop). So we lent them AED 50 ($10). Group B
invested money in raw materials and came back with AED
840.00 ($228). They decided to manufacture and sell their
own bracelet designs and they repaid the loan!
The Student’s Reflection (unabridged)
By Naama Al Shamshi
Making our own luck, and turning a nothing into a something
are things we heard from Professor Tina Seelig, but we
didn’t know how to actually translate it into our lives, into our
own luck. On Monday we were given a challenge by Mr.
Jose, he gave each group a pair of magnets and we were
asked to make money out of it. This might sounds crazy,
believe me it was.
We had no clue how to start, or where to start, one thing we
did know was that the magnets were the limit and we can’t
go over it. We tried brain storming while playing with the
magnets in our hands, and I remembered a trick I saw on
TV once, and it’s a trick related to a condition called
“overconfident brain”, it’s a game where you place an object
on the table and two people place their hands a little bit
above the object and one of the hands higher than the other,
Group B decided to market handmade bracelets. One of the
team members skipped the lecture: She was in the canteen
selling the merchandise!
Chapter 4 > Case Studies > The Five Dollar Workshop 75
both player race to catch the object, the higher one should give
the sign to start because he is a bit far from the object. We
knew that we can use that trick for our advantage, because
due to that condition in the brain the first player, which will
always be one of us, always wins.
We spent 2 hours experimenting different prototypes of how to
start, at first we would walk up to the girls and offer to draw
some picture for them for free if they won the game and they
will have to pay for the picture if they lost, it worked; but
drawing took much time and effort so we kept changing and
improving the idea.
After the 2 hours we realized that what we really can offer to
the girls is “knowledge” instead of just playing the trick we
would ask the girl “Do you think you are smart of stupid?”
most of the girls answered smart, then we said that we have
an experiment that can prove that you are not as smart as you
think you are, but this information isn’t free unless you win in
the next game, after losing of course we explained to the girls
that the reason they lost was the overconfident brain, and we
gave them different examples of this condition, after the mini
lecture we would ask the girls to play for us, but
we didn’t set a fixed price, we asked
them to pay whatever they want, one
girl paid Dhs 80 because she loved the
information so much, that’s around
21.78 US dollars.
We spent 3 hours working in the canteen
in 2 groups of 3, and we collected a total of Dhs
867.75 that’s about 236.20 US dollars, which is
We walked out of this challenge as winners, not
only that we collected more money than any
other group in the class, but more or less we learnt
valuable things from experiencing this ourselves.
We gained confidence, walking up to total strangers and
asking for money in this weird way we needed courage and
confidence, we leant what kind of girls were willing to pay more
and which type wouldn’t pay anything at all, it was hard at first
but after a few rejections you know if you should talk to the
next girl or you should pass and move to the next one.
Furthermore, while experimenting different prototypes we knew
that if we had one table or a stand and waited for girls to come
over, no one will, every girl is like a potato sack of money
waiting for us, so we have to go and get it.
Aisha A. Ahmed Alshamshi said about her experience:
“I leant that there is an opportunity to start a business from
zero, nothing is impossible, and I learnt that there is no limit
for creativity, no limit for innovation and of course no limit for
MONEY. I also gained confidence by talking and explaining
to stranger girls in a friendly way. Finding the best way to
start a conversation with different type of girls was the
toughest part. I think that we won because we tried several
limit your max
Chapter 4 > Case Studies > The Five Dollar Workshop Patie n 7c6e ,
prototypes, worked hard, we were a very fun and awesome
team, and we used unusual idea which kept the girls
Ohoud Al Kaabi also learnt a lot from working in this
“I have learned that to be successful you need basic skills
Such as patience, communication, thinking, and analysis.
Firstly, I find difficult to communicate with people and failure,
but failure is an important part because it's helps me to
learning from life. And I have learned from my mistakes
through the many opportunities that I faced it and taking
risks. As I have become more successful at the end. I
thought I won because I learned how to manage my work
and how to earn the money easily. So, just think and think
then improve it in your life, it was really an amazing and
awesome experience :).”
When expressing what she has learnt Awatef Obaid Alketbi
“I learnt how to earn a lot of money easily and tricky by
basic resource. We have many opportunities
that allow us to be successful and we have to
study our environment to identify these
opportunities. Working with others to increase
our opportunity for success and I think this is
the reason why we won.”
It’s been a wonderful experience, we learnt so
much about how to think and work fast and
effective, but I think the most important things we learnt
were about ourselves, and the things we are capable of, we
found out some hidden talents and gained more confidence,
now we know how to measure our success by more than just
the amount of money we earned.
has low cost like
magnets and the
arbitrary four hour time
limit was just a mental
excuse to help you step out
of you comfort zone.
Chapter 4 > Case Studies > The Five Dollar Workshop 77
At the beginning I was very weary of throwing the students into
the challenge of this workshop. However, given the outcome, I
am glad we did. Tina’s workshop is a great complement to a
design thinking course because it offers the opportunity for
students gain confidence quickly. After the workshop finished,
one student confessed to me that she could not sleep for one
night because he was trying to brain-storm a good business
idea in time for the looming deadline. Nevertheless, Tina’s
workshop role-model influence on students has been very
easy to assess. After we conducted her workshop here at
UAEU I noticed that students not officially enrolled were
attending the lecture. Then I spotted one of them reading an
ebook with a familiar title... What I Wish I Knew When I Was
Five Dollar workshop
is probably one of the major
contributions to the field of
Note: Tina Seelig’s works
independently of Ideo
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Your Life in years 2013 2014
Make a Fail Resume
Make a resume that highlights your failings rather than
your successes. This exercise, proposed by Tina Seelig, is
a great tool to help you asses wether you are failing in to a
comfort zone “black-hole-of-death” or not.
“I did not realize I had not been doing things I love for a
few years now” - said Naama Al Shamsi. “Before I used to
draw manga, and do lots of other things but when I wrote
the resume I realized I had stopped.” Naama’s fail resume
highlight was during her childhood. She and a friend drew
some manga books by themselves and they started a sort
of manga-kisa: They put the manga on display in their
house garden and invited other neighborhood kids to read
them for 1 Dhs (20 USD cents) per session. They collected
about 5 Dhs before the books were stolen.
Black hole illustration: Wired.com
Chapter 4 > Case Studies > The Five Dollar Workshop 79
Students love to make video resumes rather than writing one.
Setting up a 60 second limit will help standardize.Exchange
Exchange Student at The Bielefeld Summer Block course
Student - I don’t like Computer Science... :(
Author - So, what are you going to do about it?
S - I will finish the last one year and then figure out what to do
with my life...
A - You will never be a high paid CS engineer if you don’t like
to program at least 12 hours a day.
S - I don’t know what to do. My eyes are getting bad of looking
at screen. I just try to do the minimum effort to pass the
A - Well you know that you don’t like: CS. Now step out of your
comfort zone and start looking for what you want to do in life.
S - But I don’t know
A - Do u do any part-time? Maybe your destiny is to be a super
S - I don’r know.
A - How do you know if you are not genchi gembutsu? Ok. I
want you to go this sushi restaurant manager and ask him if
you can work as a waiter. Now!
S - They asked me if I speak German.
A - And.
S - I didn’t learn German yet.
A - You have been 2 years here and you do not speak German
yet? I want you to start learning German language next week.
Chapter 4 >Case Studies >The Fast Fashion World: Zara 80
Inditex is an example of a laser focused
company. It is based in the Celtic Northwestern
rural region of Spain where time is slow and
there is little industry. Some argue that its
success is due to the informal network of
homemakers that provided a highly skilled
workforce of competitive tailoresses. More
conventionally, at HBR they decided that the
secret should be in the management of the
company. One thing that will shock you about
Zara is how they decide what fashion to
produce. Zara employees are always on the
look out for new trends. They constantly
“observe” the customers that visit Zara shops.
Then they inform the HQ in Arteixo what fashion
they think will sell (empowerment). Inditex is so
focused they do not waste time talking to
journalists. This is the only documentary on
Inditex from within. Produced by Canal+ in 2002,
by Josep Serra Mateu and Maria Ruiz
► Inditex. Founded 1975. Arteixo, Galicia. Success
formula: give the customer what they wear & want.
Outlier designer team: Socorro, Loreto, María y María Jesús, and the model Tere.
El Pais / CATERINA BARJAU. More photos.
High fashion Basics
El Pais / CATERINA BARJAU
External garment shops such as this one, must comply with an ethical code of no exploitation. Sometimes they skip it, as it was
recently discovered in a fire in Bangladesh. Inditex product mix is 50% high added value garments 50% basics.
These cabins are used to negotiate and meet with suppliers. This is the
same system used at Wall-Mart.
Baggage full of sample garments.
El Pais / CATERINA BARJAU
An employee choosing what models will be used for
the coming online shop.
El Pais / CATERINA BARJAU
A logistic store in Arteixo. Here they prepare orders;
from conception to hanger it takes three weeks. Every
shop in 86 countries receives garments twice a week.
El Pais / CATERINA BARJAU
A 'call center' for online shopping. Zara was criticized for its tardiness to offer
online shopping. The Zara iPhone App was designed by @AdriaMontiel.
El Pais / CATERINA BARJAU
Eight out of ten employees are women. They stitch the
prototypes El Pais / CATERINA BARJAU for each design.
High skill labour
Inditex precuts all the garments and then sends it to 700
nearby companies that do the assembly of skirts, shirts and
other models. Fill factor of PC: 70%. Human
88%. Difference human-PC = +12%.
How much do we save with her
0 0.225 0.45 0.675 0.9
used area wasted
0 250 500 750 1000
Salary: € 35,000/year. Her job: Fit the patterns in the roll of
garment; optimize wasted garment between patterns. Fill
factor: PC: 70%, her: 88%.
Garment cutter robot.
Salary (€) -35,000
Social security -25,000
Savings 12% on
Net savings 107,040,000
Leg of a pant.
Think time! Lets
calculate how much €
we save. Assume Inditex
purchases €900 Mil. of
garment rolls per year.
Designer Designer Model
At Zara designers never work alone. In the next table sales
representatives from shops of France, Middle East, Australia
and USA are waiting to review their prototypes and give immediate feedback. No prototype will
go into production without the approval of those who know the customer. Even when designers
meet with providers to purchase garments someone from the shop will be present to provide
firsthand input from the shop. The idea of cross-functional teams must have come naturally to
Amancio Ortega: since the start of his career in a little shop, he worked as a tailor and sales clerk.
Chapter 4 > Case Studies > The Fast Fashion World: Zara 89
Floor design comparison (a Just-in-Time example at Zara)
A big storage room lets you ship less often. However, how
much added value does the storage area generate? None.
A smaller storage room means that shippings must be twice
more frequent. Shipping cost x2.
Cost of shipping
Cost of storage area rent
Number of shippings to store each month
Chapter 4 >Case Studies >The Microwave Workshop 90
►Hugo’s facilitated this
m i c r o w a v e o v e n
workshop in Tokyo Institute
of Technology around 2006.
Workshop: You have been hired by a
microwave oven brand. Recently, due to
Chinese competition, the oven margins are
paper thin so the survival of the company might
very well depend on you coming up with a new
oven design for which customers want to pay
Innovation Matrix (IM). In this workshop we
practice a mapping-tool called innovation
matrix (IM). The IM helps to formalize and
organize functional relations between:
This way to display information will help you to:
perform a functional analysis of the product
discover unmet customer needs
inspire new features
►Zurich. Hugo Tschirky is Professor Emeritus of
Business Management at the Swiss Federal
Institute of Technology (ETH).
Matrix is a knowledge
Microwave Illustration by Scientific American.
Chapter 4 > Case Studies > The Microwave Workshop 91
If you developed empathy skill in during the gift workshop you
will see that a microwave is not one oven. It is multiple ovens,
depending on who uses it.
To a Geek’s an
looks like this:
To an Statistician it looks like this:
This is what a Parent-with-kids primary brain sees when u
show him a microwave oven:
The Cleaner’s oven:
Chapter 4 > Case Studies > The Microwave Workshop 92
A microwave from a Systems point of view:
A microwave oven from a sales man point of view:
The microwave oven was introduced to the American public in
Innovation Matrix How-to
1. Draw a matrix format by rows
1. Write the market needs (Why people buy ovens)
2. Product functions (heat, boil...)
3. Technologies behind those functions (Magnetron,
4. Basic Science field supporting those technologies. (RF,
2. Link concepts
2. Seek deep truths
3. Use 5 Whys if needed
Once your product is clear and mapped out...
Now that you have a clear picture of relationships between
value, customer needs, costs and technology. You are in a
better position to innovate either by:
2. Planning an ideo style shopping cart workshop
3. Edward deBono creativity tools
Need hot-milk ready for breakfast
Need to bake a birthday cake
Innovation Matrix Example
Appliances that make you feel better
Melting Defrost Alert
Human need for
Radio Frequency basic tech
Need to save time
need for mobility
- - -
- - -
- - -
Abridged from Hugo’s workshop 2006
Chapter 4 > Case Studies > The Microwave Workshop 94
Team A Matrix day one
Team A Matrix day two (some
reordering, new relations)
Chapter 4 > Case Studies > The Microwave Workshop 96
oven window seem two
unrelated technologies in an
oven. However, they serve a
common need: The need to
check for mistakes!
Functional Innovation example
Cost of (Window +Light) >
Cost of (X)?
Consider the cost of a window + light. Their sole
purpose is now clear. Can X do their function
better, cheaper? Lets find X!
can help clarify
why people buy
Team B Matrix day one
Team B Matrix day two, (Now on a more practical horizontal position)
IM can help you
between your product
and your customers.
“Why they buy.”
Did you know some
they don’t have space
for an oven?
now 1967 1923
Wa l k m a n / i Po d t h i n k i ng
Chapter 4 > Case Studies > The Microwave Workshop 101
Prototypes Back-up man Reflection
160 minutes of IM activity helped clarify what the product is
about. However, when it came to propose new designs doing
actual prototyping job gave students a renewed energy. They
prototyped ideas that could / had not imagined at all while
doing brainstorming in step 3 IM. (But, we knew that from Tim
Brown’s book, there are some things that can only be
explained by doing a physical prototype)
Comparing IM to the ideo method, they both do the same
“work”. Obviously, IM is systematic and more rational. Ideo
does what IM does without realizing that what they do is a
mapping. On the other side, IM does not take into account
team work dynamics, layout or process. Combining both
seems to be promising.
Ideo Workshop method
Rational & creative product design process
What functional is
Heating box Externalized GUI
ppl buy microwaves to save
time. Does this GUI really
help you save time?
Some ppl buy microwaves to
save space. But only 1% of
dishes are square!?
ppl buy microwaves to
heat something, not to
heat something during-a-certain-
Mi crowave s have
b e ll s to f u l f i l l a
function, what is a more
Chapter 4 >Case Studies >Applying Five Whys to boost R&D 104
►Tokyo Institute of Technology. Tokyo, Japan. Case: How we used Five
Whys to solve a wicked
problem and to boost
Back in 2005 I was a PhD
candidate at TokyoTech. One day in a
meeting, my supervisor told me that Dr.
Hirose (lab next door) had asked him if our lab
could build a better climbing robot for the
police. I said: “We can do it!”
(I had never climbed before and let alone no
idea how to make a robot climb either)
Chapter 4 > Case Studies >Applying Five Whys to boost R&D 105
A wicked problem
In 2005, I was a PhD candidate at Tokyo Institute of
Technology. I had just randomly read a famous article from
Nature. The article had clarified for the first time how gecko’s
can hang on walls. A guy in the USA had cut a gecko toe
and had confirmed that gecko use a force of
adhesion called Van Der Waals: a kind of micro
level electrostatic force. (Autumm, 2002)
Incredible but true: Until that year 2000 no one in
the whole adhesive industry had cared to
investigate that wonder of nature. So I printed the
article. Incidentally, I had been reading about 5S and
5Whys. So I spent over a week with my colleague Mr. Obata
asking Why Why Why those hairs are triangle base shaped.
Why? To me it made no sense from a cost benefit analysis
perspective unless, of course there was a good reason ... but
the problem was that we could not guess what was the reason
nor the function or purpose of such impossible shape.
Using Five Why
Anyway we decided to apply the Five Whys and after about
two weeks and reading many papers we came across a paper
that measured how much energy a gecko spent climbing. It
turned out that geckos spend very little energy when climbing
walls (according to R. Full lab at Stanford). Bang! Could it be
that the triangle shape was related to energy expenditure?
That was the number one suspect, but How? Well, the obvious
course of action would be to make hairs of different shapes
and see which one more efficient, but how to make them?
Micro fabricating is expensive even if you are in Tokyo. Dead
end. In another paper we read that when gecko walks they
detach each foot by peeling. This
made sense: peeling a scotch tape
Gecko foot close up. Autumn et al. PNAS. September 17,
2002, vol. 99 no. 19. 12255.
Chapter 5: To Learn More
Karen Endicott/Thayer School of Engineering at Dartmouth
Links to Multimedia
1. Warm up #1 - Sir Ken Robinson on Creativity http://
w w w. t e d . c o m / t a l k s /
2. Warm up #2 - Three ideo projects: Dilbert, Prada and
Submarine by David Kelley: The future of design is
human centered https://www.youtube.com/watch?
3. The Marshmallow challenge video h t t p : / /
4. Charlie Rose interviews David Kelley for CBS 60
5. Ideo Shopping cart project for ABC nightlife,
6. Charlie Rose/ BloombergTV follow up interview on
‘creative confidence’ book http://www.bloomberg.com/
7. D. Kelley timeline by Bloomberg BusinessWeek, http://
8. d.School 90 minute G i f t workshop, h t t p : / /
9. I d e o Wo r k s h o p To o l k i t p d f h t t p : / /
10.How to interview http://dschool.stanford.edu/dgift/chart-a-
11.Bandura Talk by Kelley http://www.ted.com/talks/
12.Tina Seelig talk http://ecorner.stanford.edu/
13.Toyota the Global Story https://www.youtube.com/
14.Planeta Zara https://www.youtube.com/watch?
15.Cool down #1 Design & Thinking movie. This un flashy
movie features interviews with Tim Brown and others in
their own offices. http://designthinkingmovie.com/
16.Cool down #2 Innovation by Design video. The Aspen
I d e a s F e s t i v a l . 2 0 1 3 ( i Tu n e s U) h t t p s : / /
Background Music for Workshops and sessions
17.Gift workshop http://dschoolmixtapes.blogspot.com/
Chapter 5 > To Learn More > References
18.Course closing remarks. You can get it if you really want
by Desmond Drekker https://itunes.apple.com/us/album/
Journal and Book References
1. Plattner, H., Meinel, C., & Leifer, L. (2014) Design
2. Liker, J. K. (2004). The Toyota Way.
3. Elberse & Thomas Dye. (2012). Sir Alex Ferguson:
Managing Manchester United. Harvard Business
4. Meyers-Levy, J., & Zhu, R. J. (2007). The influence of
ceiling height: The effect of priming on the type of
processing that people use. Journal of Consumer
Research, 34(2), 174-186.
5. Bowdon, T. B. (2010). 50 Psychology Classics.
Nicholas Brealey Publishing.
6. Magee, D. (2003). Turnaround: How Carlos Ghosn
Rescued Nissan. HarperCollins.
7. Kelley, T., & Littman, J. (2005). The ten faces of
innovation: IDEO’s Strategies for Defeating the Devil’s
Advocate and Driving Creativity Throughout your
Organization. New York: Double Day.
8. Brown, T., & Katz, B. (2011). Change by design.
Journal of Product Innovation Management, 28(3),
9. Berengueres, J., Alsuwairi, F., Zaki, N., & Ng, T. (2013,
March). Gamification of a recycle bin with emoticons.
In Proceedings of the 8th ACM/IEEE international
conference on Human-robot interaction (pp. 83-84).
10. Berengueres, J. (2007). The Toyota production system
re-contextualized. Lulu Enterprises UK Limited.
11. Berengueres, J., Urago, M., Saito, S., Tadakuma, K., &
Meguro, H. (2006, December). Gecko inspired
electrostatic chuck. In Robotics and Biomimetics,
2006. ROBIO'06. IEEE International Conference on
(pp. 1018-1023). IEEE.
12. Autumn, K., Sitti, M., Liang, Y. A., Peattie, A. M.,
Hansen, W. R., Sponberg, S., ... & Full, R. J. (2002).
Evidence for van der Waals adhesion in gecko
setae.Proceedings of the National Academy of
Sciences, 99(19), 12252-12256.
13. Blanco, X. R., & Salgado, J. (2004). Amancio Ortega,
de cero a Zara: el primer libro de investigación sobre
el imperio Inditex. La esfera de los libros.
14. Esslinger, H. (2009). A fine line: How design strategies
are shaping the future of business. John Wiley & Sons.
15. Tadao, A. (1995). Tadao Ando: Complete Works.
16. Hsieh, T. (2010). Delivering happiness: A path to
profits, passion, and purpose. Hachette Digital, Inc..
This book would have not been possible without:
Kenji Kurihara of Denso /Kentuky, who invited me to midnight undercover factory tours in Denso Kariya in 2007.
Kunio Takahashi, Tokyo Institute of Technology, who invited me to visit Toyota factories with Toyohashi University.
Ferran Pujol of McKinsey & Co. Chile, for awesome discussions about best lean practices.
Antoni Elias Fuster, who organized the first Creativity and Innovation class at UPC Barcelona in 1999.
Julie Grahame who provided artworks.
Hasso Plattner, who provided reprints.
Students of Design Thinking IBLC 124, whose experiences and enthusiasm are part of this book.
Timothy Gus Hegstrom, dean of UAE University College, who supported this book.
Tina Seelig, Executive Director Stanford Technology Ventures Program, who provided insightful comments.
Hugo Tschirky, Professor Emeritus ETH Zurich, who taught me the Innovation Matrix method in Tokyo.
Dr. Jose Berengueres joined UAE University
as Assistant Professor in 2011. He received
MEE from Polytechnic University of
Catalonia in 1999 and a PhD in bio-inspired
robotics from Tokyo Institute of Technology
He has authored books on:
The Toyota Production System
Human Computer Interaction
UX women designers
Business Models Innovation
He has given talks and workshops on Design
Thinking & Business Models in Germany,
Mexico, Dubai, and California.