The Quality Game: Manage Quality to World-c;lass Standards or Run the Company into the Ground and Get Fired Developments in Business Simulation and Experiential Learning, Volume 33, 2006 THE QUALITY GAME MANAGE QUALITY TO WORLD-CLASS STANDARDS OR RUN THE COMPANY INTO THE GROUND AND GET FIRED Ryan, John M. Ryan Systems, Inc. http://www.TheQualityGame.com http://www.RyanSystems.com jryan@ryansystems.com ABSTRACT In the second company there are daily firefighting drills and everyone accepts these emergencies, schedule changes, and crises as the normal way of operating. There is a fair amount of finger pointing, badmouthing, arguing and politics. Returns are high and the company is often trying to get customer buy-offs. Employee turnover runs at twenty- five percent each year and no one minds if they miss a day or two. People work long hours and usually receive no reward because profit margins are low or nonexistent. A lot of WIP on your manufacturing floors? Late deliveries? Running at 2 sigma? High returns, rework or scrap? Running over budget? Inventory turns low (3- 5/year)? Can't seem to get people to fix problems so they don't come back over and over again? Don't know how to get them to work the system issues so things smooth out and continuously improve? Stuck in the "If it ain't broke, don't fix it" way of thinking? Which company would you rather work for? As quality professionals, how long have we been struggling to teach, tempt, cajole, force and fight our way into a position where coworkers will finally get the point that unless they provide good causal analyses and preventive solutions, they will fight the same battles over and over again? Seems like forever. Even if we succeed in one company and that company goes belly up or is bought out, the battle begins anew with new management or when we move to a new "challenge". Teach employees all the SPC, six-sigma, TQM, teamwork, policies, and Kanbans you like. Unless they get to the root cause of problems, the uphill battle continues. Prevention is a concept that is difficult to teach, difficult to learn, difficult to grasp and most difficult to implement. The business that learns to prevent its problems can easily outdo competitors, save money and improve operations. Prevention is a concept of critical consequence in health, manufacturing, health and safety and has applications in many other industries. But can a game attract players and teach preventive concepts to a degree that results in buy-in and bottom-line results? This paper and “The Quality Game” present basic preventive concepts in the form of common manufacturing problems and solutions. The game is played online and allows teams or individuals to assume real business roles as players “manage by walking around” a company. Rewards for choosing preventive solutions and penalties for band-aiding problems separate learners from losers as department budgets and company funds are wasted or improved. Players learn to manage quality to world-class standards or run the company into the ground and get fired This difficult root cause concept is apparently difficult for graduate students to comprehend at the university level as well. Having just spent two years teaching operations, quality and project management as well as statistics for the California State University in San Luis Obispo, California, I have also found both graduate and undergraduate business students woefully ignorant of the types of common problems and solutions they will have to deal with in the work world. INTRODUCTION I have worked in a number of US companies, both here and abroad and taught the same concepts over and over again. Yes, I have had great success due in no small part to the a reversal of the age old theoretical "top down" approach and due in no small part to what I call "The Quality Game". There are two companies. In the first company, the staff is trained to search for causes and solve problems in a preventive manner. The company runs relatively smoothly and employee lives are easy. The customers and suppliers both like to deal with this company. WIP is low and inventory turns are high. Shipments are on time and of high quality. People look forward to coming to work each day, attendance is high, turnover is low and profitability is keeping everyone gainfully employed and rewarded. Let's face it; quality problems come from all directions and all departments. It is typical of most managers (hence, their employees) to find a band-aid, slap it on as quickly as possible and ship that product. They might fight among themselves or with the quality department. They might ignore the problem. They might secretly ship the problem 348 http://www.thequalitygame.com/ http://www.ryansystems.com/ mailto:jryan@ryansystems.com Developments in Business Simulation and Experiential Learning, Volume 33, 2006 Figure 1a On-line Playing Surface or rework it into a mess. But it is not nearly often enough that we get solid cooperation in terms of changing the system that causes problems. Most often, the rewards are attached to dollar values shipped on a monthly basis without reciprocal penalties instilled for returns, scrap, rework, complaints and lost customers. So, here's a fun tool to measure, help train and correct those brainiacs stuck in the "if it ain't broke, don't fix it" mud. I call it The Quality Game. The premises are these: 1. Every company has recurring problems that impact product and service quality 2. Those problems have causes 3. Small problems left unfixed tend to become large problems 4. Large problems cost a lot of money (which is usually lost to the competition). 5. Employees (managers too!) can be evaluated and can learn to eliminate system level causes. I know number five is a bit of a stretch, but I have found that it is possible to change attitudes. I have also found that it is easier to change attitudes from the bottom up than from the top down. Take a typical company, say in the five to fifty million annual sales range. Lots of WIP on the floors, MRB piled high, good sized rework and repair area, no engineers working the processes, shipments going out as usual with an acceptable return rate, lack of maintenance support. Sound 349 Developments in Business Simulation and Experiential Learning, Volume 33, 2006 Figure 1b Draft Graphics Sales Conference Room Human Resources Director Sales DepartmentVP Marketing and Sales Office Marketing & Sales Administrative Assistant Bathroom 36/72 36/72 Board Layout: The Quality Game Scale: 1/4" = 1'-0" Copyright 2004 A Decision Training Game by Ryan Systems Production Meeting Room Purchasing Manager Program Manager Quality Engineering Bathroom Director of Materials 36/72 36/72 CFO Finance Conference Room Engineering Department R & D Office VP Engineering CFO Administrative Assistant 36/72 36/72 President's Office Lunch Room Manufacturing Manager VP Operations Office Facilities Manager President's Administrative Assistant 36/72 Manufacturing Floor Planner Buyer Planner Buyer Expediter Receiving Receiving Inspection and Test MRB R e c e i v i n g D o c k Packing and Shipping Shipping Dock Raw Material Storage Finished Goods Storage Financial Records CPA CPA CPACPA Manufacturing Line D Manufacturing Line C Manufacturing Line B Manufacturing Line A Inspection and Test Rework & Returned Goods (Put the bill for these on the manufacturing tab.) Company Receptionist Main Lobby Employee Entry Welcome to Work! Good luck today. 36 /7 2 K i t t i n g HR Assistant 36/72 36/72 Sales Sales Sales Sales 36/72 Document Control 36/72 36/72 Bathroom Bathroom 36/72 Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem (The whole Lobby) Problem You need a rest. Lose a turn and go to the bathroom. The idea of work tires you out. Go back to the Lunch Room for a cup of coffee. No, you may not pass through the lobby!!! You need a rest. Lose a turn and go to the nearest bathroom. You look kind of hungry. Go back to the lunch room. Do NOT pass through the lobby!! Your pager just went off. Go back to the president's office. Hot Seat The Quality Game Manage Quality to World-Class Standards Or Run the Company Into the Ground and Get Fired Visitor Entry Problem Problem (Whoops!) Problem (Covers all Raw Materials - Bad Supply Chain) Purchasing TM 36/72 36/72 This is where the money you lose goes. The Competition's Money Place Five Million Dollars Here (See if you can earn some for your company) Customer's Money Computer Network Director Information Technology Programmer Systems Analyst Systems Administrator Web Master Information Technology Document Control Office normal? Figure that there are 100 employees more or less in the company spread throughout the usual departments: HR, operations, manufacturing, engineering, quality, document control, materials, information technology and research and development. Each department spends the day fighting the usual problems. Not an overabundance of teamwork (or interdepartmental love) going on. Everyone is just doing his or her jobs. So, how is the game played? The board below depicts a common workplace with departments, offices, hallways, a manufacturing floor, conference rooms and bathrooms. Dice are rolled and employees and managers representing 350 Developments in Business Simulation and Experiential Learning, Volume 33, 2006 their own departments (or othe their representative pieces thro "manage by walking around". "Problem". When an employee a problem caused by that depar from the problem deck and rea employee suggests a system lev department budget is rewarded surface and draft version of Th above as Figures 1a and 1b respe The primary goal is for the p critical level problems thereby e this manner, the company flouris and teams unable to work to problems cause the company to competition. When the compa company folds and the game between profitability and th willingness to implement syst (process redesign) is shown in company moves from no ac profitability improves. Individual players may bu budget to help their department the department budget by prov problems. When a player co problems at the system level, th up and the player is fired. Pro players consistently learn to ad mature manner (preventively). These player and company are tracked on the Company Stat F N System L Prevent (Proce Redesi Ban Corre __________________________ igure 2: Profitability and Preventive Actions o Fix evel ion ss gn) d-aid ction Profitability ___________________________________________________________________________ r departments) must move ugh the hallways as they Certain squares are labeled lands on a problem square, tment is randomly selected d to the employee. If the el solution, the employee's . An on-line playing e Quality Game are shown ctively. layers to team up and solve arning customer money. In hes and grows. Individuals gether to solve expensive lose company money to the ny money is depleted, the is over. The relationship e company's ability and em level preventive fixes Figure 2 below. As the tion to preventive action, ild their own departmental flourish. Players can lose iding band-aid answers to nsistently fails to address e department budget is used fitability is reached as the dress problems in a more financial gains and losses us Sheet (Figure 3 below). Figure 5 depicts the relationship between the players' abilities to think in terms of problem root cause and their conceptualization of preventive process redesign solutions. True prevention is not possible without determining problem root cause. As the players learn to think in terms of root cause, they must discover the game strategy for winning: Redesign processes in order to prevent their recurrence. What kind of problems does the game include? Here are a couple of samples for you to check your thinking against. 1. The purchasing department is overworked and feels it needs to add another employee to help handle engineering purchase orders. Purchasing personnel blame engineering and other departments because “they never fill out the purchase orders correctly”. This results in many hours spent clarifying departmental needs and cleaning up incorrect forms and redoing orders. Correct Solution: The purchasing department is at fault. The purchase orders are complex and have no instructions for completing the form. There is no written procedure for completion and the purchasing department has never trained other personnel in the correct procedures. The purchasing department must simplify the form and provide procedures and training. If purchasing did not come up with a preventive system level solution for problem 1, the player in the purchasing role would have had to pay engineering part of the purchasing budget. 351 Developments in Business Simulation and Experiential Learning, Volume 33, 2006 Marketing moves up the Quality, Engineer Manu facturin The result is the rele For Each Pass Through the Lobby Minor Problem = $10,000 Major Problem = $20,000 Critical Problem = $40,000 De partme nt/Player Dep Budg Finance/Acctg 200,0 Marketing/Sales 200,0 Engineering 200,0 Human Resources 200,0 Quality 200,0 Materials 200,0 Operations 200,0 Information Tech. 200,0 Document Control 200,0 Research & Dev. 200,0 Manufacturing 200,0 Company Total 5,000, Customer Total 50,000 Competition Total 50,000 Correct Solution: M should not have the without negotiating sche departments. That is operations meetings are its procedures to ass minimized and agreeme are in agreement wit capacity. 2. Research and Developm for a new product to include the updated to product has to be rework Correct Solution: R detailed blueprints revie part of the process for n to manufacturing. Do you disagree wi are not thinking of th decisions. Problems no tend to reoccur time a company’s ongoing ina quality improvement. I learn to change your th department’s budget (a “penalties” and lost cust Figure 3: Company and Player Tracking Status Sheet 352 SUMMARY release date for a new product. ing, Material Control and g all have to hurry the release. ase of a marginal product. Company Status Sheet (Maintained by the Controller) Add $5,000 t. et Problem #1 Proble m #2 Proble m #3 Proble m #4 Problem #5 Problem #6 Proble m #7 Proble m #8 Proble m #9 Proble m #10 Weekly Bonus Tally 00 00 00 00 00 00 00 00 00 00 00 000 ,000 ,000 De partment Total Wee kly Bonus A lot of WIP on your manufacturing floors? Late deliveries? Running at 2 sigma? High returns, rework or scrap? Running over budget? Inventory turns low (3- 5/year)? Can't seem to get people to fix problems so they don't come back over and over again? Don't know how to get them to work the system issues so things smooth out and continuously improve? Stuck in the "If it ain't broke, don't fix it" way of thinking? arketing is at fault. Marketing power to crash release dates dule changes with all impacted what conference rooms and for. Marketing must redesign ure that crash releases are nts with impacted departments h regards to manpower and The Quality Game simulates the work environment to an extremely realistic level. The problems presented to the players have come from actual businesses. These problems are the type of problems managers and employees can expect to encounter on a daily basis. The game is an intensive test of the player’s ability to get to the root of the problem and provide system-level solutions. Player abilities and learning curves are tracked and can be used to determine training needs, promotion readiness and can be reported to upper level management for closer supervisory ent releases the specifications manufacturing but forgets to lerances for key parts. The ed by manufacturing. &D is at fault. Tolerances and ws should be incorporated as a ew product releases from R&D needs. th those solutions? Perhaps you e long-term impact of your t solved in a preventive manner nd time again adding to the bility to implement continuous n The Quality Game, you must inking or you will spend your nd the company’s profits) on omers. About the Author Dr. John Ryan is a consultant (http://www.ryansystems.com and past lecturer for the Graduate School of Business at the California Polytechnic State University in San Luis Obispo, California where he taught quality, operations, and project management as well as business statistics. He has written numerous quality and operations improvement articles for Quality, Quality Progress, Factory of the Future and other magazines. Dr. Ryan published his first book with the American Society for http://www.ryansystems.com / Developments in Business Simulation and Experiential Learning, Volume 33, 2006 Q C i T a a f p h m i p b d n W p p p t f w c d _ Figure 5: Determining Root Cause to Reach True Problem Prevention Through Process Redesign Not Possible to Prevent Problems Without Finding the Root Cause No Cause Found Root Cause Found Band-aid Correction Prevention (Process Redesign) No Fix ____________________________________________________________________________________________________ uality (The Quality Team Concept in Total Quality ontrol, ASQ, 1992). He has served for more than ten years n an expatriate role for companies such as Seagate echnology, Read-Rite, Sumitomo Heavy Metals, Destron nd others throughout South East Asia and has developed cross-the-web test software now used by web site owners or web site security and navigability improvement urposes. The Quality Game may be found at ttp://www.TheQualityGame.com. ABOUT RYAN SYSTEMS Ryan Systems provides the quality and operations anagement tools needed to achieve a continuous mprovement operational level. Our mission is to form artnerships with customers based on trust, support and ottom-line, measurable results. Our customers trust us to eliver the training and consulting support to meet their eeds in a rapidly changing global business environment. e specialize in customizing solutions to each operation’s articular problems and situation. Our recently developed Quality and Operations games rovide clients with a unique ability to evaluate and change roblem resolution thinking. These online individual or eam played games drive problem solving away from quick ix thinking to cross-functional prevention levels. We elcome you to join Ryan Systems and the growing list of lients making the change that has saved them millions of ollars and kept them ahead of the competition. Ryan Systems has been in business since 1990 and serves clients throughout the United States and Asia. Ryan Systems is headquartered in Laie, Hawaii. Ryan Systems, Inc. business made better 55-136 Anemoku St. Laie, HI 96762 http://www.RyanSystems.com http://www.TheQualityGame.com jryan@ryansystems.com Phone: (808) 346-0373 FAX: (808) 293-25833 353 http://www.thequalitygame.com/ http://www.ryansystems.com/ http://www.thequalitygame.com/ mailto:jryan@ryansystems.com Table of Contents Volume 33, 2006 Learning Assurance Using Business Simulations Applications To Executive Management Education Team Teaching In An Integrated Business Course Using Critical Problem Based Learning Factors In An Integrated Undergraduate Business Curriculum: A Business Course Success Personality Type And Strategic Planning Business Games As Strategic Management Laboratories The Relationship Between Students' Success On A Simulation Exercise And Their Perception Of Its Effectiveness As A PBL Problem Forecasting Accuracy And Learning: The Key To Measuring Simulation Performance The Business Strategy Game: A Performance Review Of The New Online Edition Using The Socratic Method And Bloom's Taxonomy Of The Cognitive Domain To Enhance Online Discussion, Critical Thinking, And Student Learning Using Negotiation Exercises To Promote Critical Thinking Skills Effective Leadership Experiences For Management Majors In A Futures Class The Role Of Learning Versus Performance Orientations When Reacting To Negative Outcomes In Simulation Games Is Pay Inversion Ethical? A Three-Part Exercise Simulations And Experiential Exercises - Do They Result In Learning? Have We Figured It Out Yet? Examining Program Management In Business Simulations: Student And Faculty Views Validating Business Simulations: Do Simulations Exhibit Natural Market Structures? Characterizing Business Games Used In Distance Education Utilizing Games In A Graduate Level Instructional Game Course Employment Interview Preparation: Assessing The Writing-To-Learn Approach Simulations - Bridging From Thwarted Innovation To Disruptive Technology Creating An Authentic Cultural Lens Using Case Dialogue Learning By Fire: Reflections Of A First Time Online Instructor An International Internship With A Service-Learning Focus Learner Participation In The Online Learning Experience: Help Or Hindrance? Any Given Sunday: Intervention In Pursuit Of Simulation Team Parity Beginning With The End: Creating An Experiential Exercise From Assessment Criteria Simulating Life Cycles: Life Span As The Measure Of Performance In Business Gaming Simulations It's Puzzling: Communications, Competition, And Cooperation Balanced Scorecard Implementation For Strategy Management: Variation Of Manager Opinion In Real And Simulated Companies Cases And Business Games: The Perfect Match! Three-Attribute Interrelationships For Industry-Level Demand Equations Using A Web-Based Module To Teach Information Literacy Decision Support System For Demand Forecasting In Business Games The Invalidity Of Profit=F(Market Share) PIMS Validation Of Marketing Games Online Market Test Laboratory With The MINSIM* Program The Gas Mileage Game - A Policy Simulation Delivered Cost And Differentiation Applied To Threshold 3rd Ed. The Effect Of Team-Leadership Modes On Team Performance: A Preliminary Study The Design And Use Of A Macroeconomics Simulation Using Maple Software: A Pilot Study The Instructor's Toolbox: A Meaning-Centered Framework For The Social Construction Of Experiential Learning Incorporating Strategic Product-Mix Decisions Into Simulation Games: Modeling The 'Profitable-Product Death Spiral' Group Composition And Groupthink In A Business Game A Direct Approach To Teaching Business Ethics A Decision Support System For Planning Sales, Production, And Plant Addition With Manager: A Computer Simulation Polish - American Entrepreneurial Business Cooperation Workshop Utilizing The Income/Outcome Simulation Student Leader Training Exercise Student Preference To Mode Of Learning In Hong Kong Experiential Learning For Technology-Based And Management Programme In Hong Kong: A China Study Tour A Price Game With Product Differentiation In The Classroom Discrete Event Modeling In A New Transportation Simulation Supply-Side Modeling In A Total Enterprise Simulation The Quality Game Towards A Massive Multiplayer Online Business Simulation Making The Connection: Improving Virtual Team Performance Through Behavioral Assessment Profiling And Behavioral Cues Individual Learning Producing A Learning Organization: 'Playing Dice With Polar Bears' Narratology and Ludology: Competing Paradigms or Complementary Theories in Simulation Framework For Evaluating Internet Research Using Children's Games To Illustrate Strategy Concepts: Is Less Better?