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Guidelines for Creating and Evaporating CloudBoeing Defense, Space & Security Wichita EngineeringAs soon as you recognize there is no room for an acceptable compromise (there is a breakdown incommunication, the other side is becoming stubborn and illogical or our relationship is in jeopardy)take a break. During the break:1. Write down WHAT I WANT (D.)You know this. You keep repeating it over and over out loud and in your thoughts. (Usually, this is anaction or result of an action)2. Write down WHAT THE OTHER SIDE WANTS (D'.)You know this. They keep repeating it over and over trying to convince you.3. Write down WHAT NEED I AM TRYING TO SATISFY. (B)You may have to stop and think hard here. Why is it you NEED the thing you want?4. Write down WHAT NEED THE OTHER SIDE IS TRYING TO SATISFY. (C)If you don't know, you haven't been listening to the other side. Think! What was their justification fortheir desires? That was their need?5. Write down OUR COMMON OBJECTIVE. (A)Yes, you have one. You are still talking! What is the reason you are still talking to this hard headed,obnoxious, uncooperative person on the other side? What do you both want to have? What goal do youboth need to satisfy? Why is it you are trying so hard to convince the other side to cooperate?source: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel16

Creating the Evaporating CloudBoeing Defense, Space & Security Wichita EngineeringA.(5. What is ourcommon Goalor Objective?)In order to ObjectiveB.(3. What needam I trying tosatisfy?)D.(1. What doI want?)C.(4. What needis the otherside trying tosatisfy?)D.(2. Whatdoes theother sidewant?)We need to RequirementIn order to BOEING PROPRIETARY – Distribution Limited to Boeing Personnelsource: Washington State University-2010We need to Prerequisite17

Focusing Lean Support GroupCore Conflict CloudStory line: The company has limited resources to perform “Process Improvement” and support internal customer needs for Changeand Improvement. These “change agents” are tasked with working with Employee Involvement Teams to create a culture ofprocess improvement. There is an effort underway to explore TOC as an improvement tool.Train TOC folks on how they can benefit from LEAN (to improve thedifficult processes they find – in CCPM for sure – and otherbottleneck areas).Combine LEAN and TOC for fast, surgical results!Assumptions1. There is pressure to try something better than what we have been doing2. Our customer has changing requirements3. The customer wants products faster and cheaper4. Difficult to schedule today what is going to occur more than 6 months in thefuture5. Our project requirement are not all the sameAssumptions1. Our current date driven scheduling causes us to have to do project rescheduling2. There is pressure to try something better than what we have been doing3. we need to improve our processes4. TOC takes in to account delays and resources availability5. TOC is a good way to create process that are adaptiveDc.’1. Take radical, unproven (to me),experimental proceduresBc.3 Do things that deliversignificant results quicklyAc.5 Dramatically improve ourprocessesAssumptions1. We need to improve our processes2. Stable processes makes jobs easier to manage3. We know how to control stable process4. If we change we might create an unstable processThere is a method to create and maintain stablebalanced processes (We become a fast, reliablesource of expert knowledge and projects. We canpick and choose which, of many, contracts we willpursue. We are profitable. We can grow ourcapacity at a rate we choose.In order to ObjectiveAssumptions1. We don’t know where to focus resources2. Implementing both concepts causes confusion3. Lean and EI don’t always deliver desired results4. Not everyone knows TOCUse the Thinking Tools Process to establishpriorities for Process Improvement ProjectsFocus resources on where the highest savings are (largestimprovement can be made – that contribute to Throughput immediately(or accelerate project management processes)Cc.Dc.4. Do mature, correct things that haveproven to be very effective over time2.Use the best LEAN tools andtechniques, EI (Employee Involvement)Assumptions1. Toyota like methods have been up to this point the company accepted methodfor continuous improvement.2. Toyota is considered to be successful with their implementation of LeanProcesses3. The accepted site improvement methodology has been EITrain Lean Facilitators on4. It is easier to stay with the current cultureTOC5. EI teams are easy to measure and controlCreate meaningful improvementmetrics associated with IncreasingValue and decreasing TimeWe need to RequirementFind other ways to implement Employee Involvement(remove the obstacles to being fast and let the workitself be the reward)In order to We need to Prerequisite

CLRsBoeing Defense, Space & Security Wichita EngineeringCLRs – Categories of Legitimate Reservation Are tools to rigorously evaluate and critique (scrutinize) logicstatements in a non-threatening manner Ensure the logic is solid Help solidify intuition or emotion into solid cause-effectrelationships Force the discovery new knowledge to correct logical errors The Categories of Legitimate Reservation are the tools tovalidate or invalidate any argument. They are very powerfulwhen applied in a systematic way. They are the tools todiscover the underlying assumptions.source: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel19

Categories of Legitimate ReservationBoeing Defense, Space & Security Wichita Engineering4. Insufficiency5. Additional CauseLevel IReservation2. EntityExistence1. Clarity3. Causality7. CauseReversal6. Predicted EffectAlways Start Here!8. TautologyLevel IIReservationsLevel III ReservationsBOEINGPROPRIETARY– DistributionLimited to Boeing Personnelsource:WashingtonState University-20102020

Scrutiny!Boeing Defense, Space & Security Wichita Engineering What is Scrutiny? We want to examine each logical arrow according to eight logicrules (CLRs). Taken together with your intuition, they are sufficient todemonstrate the truth of your logical connections. Or, they will surface legitimate reservations about the logic. Anytime a reservation is surfaced and addressed, additionalknowledge is gained. DISCOVERY! Use Scrutiny to gain deeper understanding/discovery. Use it on yourself and with others. Encourage them to scrutinizeyou!source: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel21

Applying Theory of Constraints Tools to Focus LeanDevelopmentBoeing Defense, Space & Security Wichita Engineering Introduction to Theory of Constraints How to use the Thinking Process Tools What to Change– Evaporating Clouds to identify conflicts– Current Reality Tree What to Change to– Strategic Future Reality Tree How to cause the Change– Prerequisite Trees and Transition Trees– Strategy and Tactics TreeBOEING PROPRIETARY – Distribution Limited to Boeing Personnel22

Creating a Current Reality Tree from UDEBoeing Defense, Space & Security Wichita Engineering UDEs – Undesirable Effects Let’s approach these UDEs and the whole world of TeamManagement by taking three different situations (one UDEclouds) and combining them. Development (or Design) / Business / Education Other areas would have worked just as well; these aregood enoughsource: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel23

UDEs of Lean Support GroupBoeing Defense, Space & Security Wichita Engineering The majority of BDS leadership has the perception that lean does not generate results.*Employee Involvement has not produced the results desired*Lean has not produced the results desired*Leadership is hesitant to apply lean to a business problem.*Lean results do not show up in EAC*Leadership feels leading Lean is not a valuable way to spend their time.*Leadership fears using Lean because of fear of not being able to proved the expected improved financials. *Lean facilitators are most comfortable with soft skills facilitation / training and not driving teams to achieve significantimprovement fast*Lean facilitators are not comfortable not driving teams to achieve significant improvement fast.*Lean facilitators are conflict adverse.*Lean facilitators become ineffective when having to lead real change.*People are confused at which measure to follow*People are frustrated*People are not happy (satisfied) with their work*The site is not performing as well as it should* Lean facilitators are not sure which metrics to track and follow*There is general confusion about what the goals and objectives are*There is a general lack of focus and direction* Lean facilitators are not supporting all the needs of the customers*Employee Involvement is not capturing as much savings as possible*There is conflicting direction from matrix chain of command*There is lack of emphasis on improvements that impact the bottom line*There is confusion on which tools and techniques to use BOEING PROPRIETARY – Distribution Limited to Boeing Personnel24

Does this Conflict seem to CAUSE all the UDEs?Boeing Defense, Space & Security Wichita EngineeringSome team memberscomplainTeams costmoreTeam seems out-ofcontrolSome people arefrustratedTeam is not as effectiveas hopedQuality/content/scopeproblems existSome work islate?AHave aSuccessfulTeam? ?BHave a HighDegree source: Washington State University-2010DBase Recognitionon TeamPerformanceSome people areover-loaded?Not DBaseRecognition onIndividualPerformanceBOEING PROPRIETARY – Distribution Limited to Boeing Personnel25

Behind Every Arrow, There is an AssumptionBoeing Defense, Space & Security Wichita Engineering The assumption in Necessary Based logic was:“In order to Eat, I must have Money Because I pay for myfood.”I want to EatI pay for my foodsource: Washington State University-2010I need MoneyLogical “And” Connector The assumption in Sufficiency Based logic is the same but isstructured slightly differently:“If I want to eat, And I pay for my food, Then I need money.”BOEING PROPRIETARY – Distribution Limited to Boeing Personnel26

Some Assumptions Behind the Arrows of the CoreConflictBoeing Defense, Space & Security Wichita EngineeringAny individual on the team cancause team failureEffective teamshave a highdegree of synergyBHave a HighDegree of GroupCooperationAHave a SuccessfulTeamThe team’s workis mostlyindividual effortsource:DBase Recognitionon TeamPerformanceRewarding some individualsand not other always causesproblemsCEncourageIndividualContributionNot DBase Recognition on IndividualPerformanceIndividuals respond toWashington State University-2010individual rewardsBOEING PROPRIETARY – Distribution Limited to Boeing Personnel27

Converting the Evaporating Cloud to CurrentReality TreeBoeing Defense, Space & Security Wichita Engineering The next few steps are Dramatic Ones: Stand the Cloud on its point. Turn around the arrows Adjust the wording to make smooth“If Then ” logic Add the Assumptions with the ‘And’ Connectors The result is the start to the Current Reality Tree!source: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel28

Start with the Conflict CloudBoeing Defense, Space & Security Wichita EngineeringAHave aSuccessfulTeamBHave a HighDegree DBase Recognitionon TeamPerformanceNot DBase Recognition onIndividualPerformancesource: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel29

Flip in on it’s endBoeing Defense, Space & Security Wichita Engineeringsource: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel30

Turn the Arrows AroundBoeing Defense, Space & Security Wichita EngineeringBase rewards onteamperformanceBase rewards onIndividualperformanceHave a Highdegree of e aSuccessful Teamsource: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel31

Adjust the working to “If . Then ” Logic (note the key wordsadded to make this easier – include them)Boeing Defense, Space & Security Wichita EngineeringBaserewards onThereis pressuretoteam onbase rewardsteamperformanceperformanceHavea HighWeneeda highdegree of groupcooperationThere is pressure toDon’t basebase rewards onrewards on teamindividualperformanceperformanceEncourageWe needindividualcontributioncontributionsHavetoahave aWe wantSuccessfulSuccessfulTeamTeamsource: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel32

Add in at least one Assumption for each arrowBoeing Defense, Space & Security Wichita EngineeringThere is pressure tobase rewards on teamperformanceAny individualon the team cancause teamfailureThere is pressure to baserewards on individualperformanceWe need a high degreeof group cooperationEffective teamshave a high degreeof synergysource: Washington State University-2010We need individualcontributionsWe want to have aSuccessful TeamBOEING PROPRIETARY – Distribution Limited to Boeing PersonnelIndividualsrespond toindividualrewardsThe team’s workis mostlyindividual effort33

Check the Logic using the Categories of LegitimateReservationBoeing Defense, Space & Security Wichita EngineeringNumbers added aslabels to entities tofacilitate discussion145 There is pressureto base rewards onteam performance125 Any individual on theteam can cause teamfailure150 There is pressure tobase rewards on individualperformance140 Individuals130 We need a highdegree of groupcooperation110 Effective teams have ahigh degree of synergyrespond toindividualrewards135 We needindividualcontributions100 We want tohave a SuccessfulTeam120 The team’s work is mostlyindividual effortsource: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel34

Connect the Core Conflict to the UDES for the CRTfoundationBoeing Defense, Space & Security Wichita urce: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel35

Starting Groups and ConnectionsBoeing Defense, Space & Security Wichita DEUDED’DDo some UDEs seemrelated?One follow theother?Group them!BCAsource: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel36

Simple, Temporary ConnectionsBoeing Defense, Space & Security Wichita urce: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel37

Look for the Result of the ConflictBoeing Defense, Space & Security Wichita EngineeringBUDEUDEDUDEUDEAUDECUDED’UDEEvidence ofthe ConflictD’DBsource: Washington State University-2010CABOEING PROPRIETARY – Distribution Limited to Boeing Personnel38

What Happens because of the Conflict and D/D’?Boeing Defense, Space & Security Wichita e Base ofthe CRTD’DBCAsource: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel39

Scrutinize the Entire Tree Using the CLRBoeing Defense, Space & Security Wichita urce: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel40

Re-Evaluate the UDES-Find New Ones/Delete Old OnesBoeing Defense, Space & Security Wichita D’DBCAsource: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing PersonnelAdded(NewlyMarked asan UDE)41

Look for Feedback LoopsBoeing Defense, Space & Security Wichita Asource: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel42

Look for Policy, Measurement, Behavior Issues(add them if they are not there)Boeing Defense, Space & Security Wichita EngineeringUDEUDEBUDEDUDEUDEUDEAUDECB UDED’MPD’DBCAsource: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel43

The Cone Shape Then Becomes.Boeing Defense, Space & Security Wichita Engineering The addition to the Basedivides the CRT quicklyNOT A Builds upwards quicklyNOT BNOT CNOT D’NOT D The Regions help showwhat is missing Allows a ThinkingProcess person to viewthe CRT and ScrutinizeQuicklyConflictDD’B A Csource: Washington State University-2010BOEING PROPRIETARY – Distribution Limited to Boeing Personnel44

199 Company is not as profitable as it could beCRT – Current Reality TreeFocusing Lean Resources*194* The site is unable to implement a truecontinuous improvement culture109 The Company is failing to meetperformance expectations set byCorporateNot A*192 *The site is not performing as wellas it could*196 *TOC is not embracedNot D’107 There is little emphasis on long termperformance goals*175 *TOC has not had the chance to beproven*188 * Lean facilitators are notsupporting all the needs of thecustomers104 We want to minimize risk*190 *Lean has not produced the results desiredNot D*186 *Lean is not capturing asmuch savings as possible*178*lean facilitatorsare least comfortablewith driving teams*173 *There is nosystemic thinking whenit comes to processimprovement*184 *Lean facilitators becomeineffective when they have too manyImprovement Projects in-work.103 Lean success has beenmeasured on “how many” peoplewere on teams*180 *Leadership fears using Lean because offear of not being able to provide the expectedimproved financials.*182 *lean facilitators aremost comfortable with softskills facilitation / training193 Dissatisfied people tend to care less aboutthe job they are doing.*176 * Lean facilitators are conflict adverse.*172 *There is lack ofemphasis onimprovements thatimpact the bottom lineNot B*166 *lean facilitators are notcomfortable driving teams toachieve significant improvementfast.Managers are not comfortabledriving teams to significantchange fast.Managers are not comfortabledriving teams to significantchange fast.*174 *People are not happy (satisfied)with the way Lean workNot C193 Management is measu

Organization (TOCICO) certified in the Thinking Process tools, a Boeing Six Sigma Black Belt and heads the Wichita site Six Sigma Steering Committee. Tim has a B.S. in Industrial Engineering from the University of Nebraska and an M.B.A. in Operations Management from National University. Tim has over 25 years of Aerospace experience with General