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“Optimistic Humanism” A Continuous Improvement “Process” Mindset

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Q. What do you do differently at “Next” as a result of having been in contact with Dr. Juran that you didn't do back in the days of Apple? “…In most companies, if you're new and you ask why is it done this way, the answer is because that's the way we do it here or because that's the way it's always been done…” https://www.youtube.com/watch?v=XbkMcvnNq3g&t=9s

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“…Part of this way that this optimistic humanism is expressed in companies are the things to which the people who control corporations say yes to, requests and recommendations that are made to them.” Q. “What kind of things are you saying “yes” to here at “Next” as a result of Dr. Juran's teachings or exposure that you might never have said yes to before?” Optimistic Humanism

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• To tell the world that you expect the people to deliver if given the opportunity is certainly optimistic about people. • The key however is creating that environment. And that is where “No Blame” comes in. • People will deliver if they know that there is no reprisal for contributing an idea that disrupts the status quo. We call this “change without reprisal.” In Steve Jobs words, it would be “optimistic humanism.” Optimistic Humanism: Characteristics https://drelbie.wordpress.com/2017/03/16/optimistic-humanism-needs-no-blame/

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https://www.leanblog.org/2014/04/great-steve-jobs-video-transcript-from-1990-on-continuous-improvement/ Great Steve Jobs Video (& Transcript) from 1990 on Continuous Improvement

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https://blog.item24.com/en/intralogistics/what-is-cip-a-simple-explanation-of-continuous- improvement/#:~:text=As%20Jobs%20put%20it%3A%20%E2%80%9CIf,continuous%20improveme nt%20process%20(CIP).zcool. What is CIP? A simple explanation of continuous improvement

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Relationship to Scrum

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Juran: Managing for Quality “Fitness for Use” vs. “Fit for Purpose” Fitness for Use: Easy to produce as long as the producer had a clear understanding of the customer requirements. Fit for Purpose: The phrase “fit for purpose” instead of “fit for use” was adopted to define the quality of a product that refers to goods, services, and information.

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The Pareto Principle The Pareto Principle – also widely known as the 80/20 rule – follows the observations of economist Vilfredo Pareto, whose studies showed that 80% of the land in Italy was owned by 20% of the population. Juran realized that this same 80/20 rule could also be applied to quality issues; so, he coined the phrase “the vital few and the trivial many” to convey that a small percentage of root causes can result in a high percentage of problems or defects. He then named it the Pareto Principle! https://www.juran.com/about-us/dr-jurans-history/

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Juran’s Trilogy (Interrelated) Quality Control: the process for preventing adverse change. Quality Improvement: breakthrough improvement (known as Six Sigma today). Quality Planning: planning for quality, at the strategic level and at product and service design levels.

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Six Sigma • Definition: Is a methodology that helps organizations improve their processes, productivity, and services by reducing defects and variability. • Goal: Reduce the amount of variation in the product, which minizines defects. • Philosophy: All processes can be defined, measures, analyzed, improved, and controlled. • Techniques: Uses statistical methods and quality management techniques to identify patterns, trends, and anomalies. • The Term Six Sigma comes from the Greek letter sigma, which represents a standard deviation. In Six Sigma, a process is expected to be defect-free 99.9996% of the time.

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Lean and Juran’s Trilogy

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The Eight Wastes • Taiischi Ohno (1988) identified seven types of waste that exist in most processes and organizational systems. • These identifiable wastes lead to the cost of poor quality if they are not dealt with and removed • Lean practitioners and experts must focus on reducing or eliminating these wastes, part of a kaizen or Rapid Improvement Event. 1. Overproduction—making or doing more than is required or earlier than needed 2. Waiting—for information, materials, people, and maintenance 3. Transport—moving people or goods around or between sites 4. Poor process design—too many/too few steps, no standardization, and inspection rather than prevention 5. Inventory—raw materials, work in progress, finished goods, papers, and electronic files 6. Motion—inefficient layouts at workstations, in offices, poor ergonomics 7. Defects—errors, scrap, rework, nonconformance 8. Underutilized personnel resources and creativity—ideas that are not listened to, skills that are not used

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The Seven Wastes of Software Development https://dzone.com/articles/seven-wastes-software Mary and Tom Poppendieck later translated these seven wastes into "The Seven Wastes of Software Development": 1.Partially Done Work 2.Extra Features 3.Relearning 4.Handoffs 5.Delays 6.Task Switching 7.Defects

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Lean and Six Sigma have evolved to reflect today’s core business challenges: the challenge to execute and to maximize value, as well as respond to “nanosecond customer” needs. Every organization wants to be Lean and have: • The shortest possible process lead times for providing products and services • The optimum level of strategic inventory and human resources • The highest practical customer service level • The highest possible quality (low defect rate) • The lowest possible waste (low COPQ, cost of poor quality) . . . throughout the entire value chain

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The Juran Lean Roadmap A Lean model collaboration with Six Sigma DMAIC (Define, Measure, Analyze, Improve, Control).

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The Juran Transformation Model and Roadmap Five separate and unique types of breakthroughs that must occur in an organization before sustainability is attained. 1. Leadership and management 2. Organization and structure 3. Current performance 4. Culture 5. Adaptability

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References DeFeo, J.A., & Juran, J.M. (2014). Juran’s Quality Essentials for Leaders. McGraw-Hill. DeFeo, J.A. (2023). Juran's Quality Handbook 7E. McGraw Hill. Jobs, S. Interview. (1990s). https://www.youtube.com/watch?v=XbkMcvnNq3g&t=9s