Next BADUG Meeting - 1 April

[DanRobrtsn@aol.com]

BAY AREA DEMING USERS GROUP NEWSLETTER

Our next meeting is on Monday, 1 April 2002 from 6:00 to
8:30pm, at Acuson in Mountain View on the corner of
Shorebird Way and Shoreline Boulevard.  Detailed
directions available below.

PLANNED PROGRAMS: 

Please note that BADUG meetings are always open to all
interested parties.  Dr. Deming's teaching extended far
beyond the traditional confines of quality.  Consider
inviting a friend or work associate who might share
your interest in learning about, and discussing,
innovative and effective theories regarding
organizations, systems and management.

1 Apr:  "Creativity for the individual, the team and the
organization".  We live in times characterized by that
old cliché - the only constant is change.  To stay with
the game we need to be able to react rapidly and flexibly
- better yet, we need to be ahead of the game.  Too often,
we lose our position because we are caught on the wrong
foot and take too long to react.  So what is the answer?
-- Increased levels of creativity and innovation.

A body of knowledge has been built up about how
creativity and its close cousin, innovation, can be
harnessed by the organization.  Unfortunately -- most
organizations ignore it: creativity at the individual
and team level can and must be nurtured and captured
for the success of the organization.

This session will discuss creativity and innovation
- what are they and how do they fit into today's
organization.  It will then look at creativity at
several levels - the individual, the team and the
organization.  It will demonstrate some practical
techniques to encourage creativity and explore how
the organization can become truly innovative.

David Woodward, a senior consultant with Right
Management Consultants, will facilitate our discussion
on this topic.  His career has been mainly in two parts.
In the first he focused on developing systems with
information technology as a manager, consultant and
lecturer.  In the second he focuses on developing
people and on innovation.  He has consulted and lectured
in a broad range of subjects, but his passion and his
main focus is creativity and communication.  He has
taught at several British business schools, ranging
from Henley Management College to Oxford.  He has also
taught creativity and innovation on other masters,
doctoral and executive programs around the world.

ANNOUNCEMENTS: 

* The BADUG Systems Thinking Study Group meets monthly,
prior to -- and in the same building as -- the main BADUG
session.  April's session will be involved with
experiencing and refining a simulation (The Beer
<lemonade> Game) that the group has been developing.
Please contact David Camp at dcamp@ciena.com / 
408-366-4863 or Karen Takle Quinn at ktq@svpal.org /
650-964-5195 if you are planning to join the April
discussion.

* April 5-7, the Capital Quality Initiative of
Lansing, MI will host a Midwest Deming conference on
"Lifelong Learning in the 21st Century" at the campus
of Michigan State University.  Plans include topics
of special appeal to educators and learners at all
levels.  Look for further details at www.lcc.edu/cqi
or Contact Carol Towl at ctowl@lcc.edu, 517-483-1363
for further information.  

* April 19-21, the West Coast Forum: Creating New ROIs
will be held in Canoga Park, CA.  With planning
coordinated by participants from several of the Deming
Associations based along the US west coast, the
conference will take an systemic look at how we view
the concept of investment and explore new possibilities
for ROI -- Revolutionary, Radical Opportunities for
Innovation, Improvement, Interactions, and Inspiration.
Register now to assure your spot at the Forum.  For
further information contact Dan Robertson, Marcia Daszko,
or Bill Bellows (info@in2-inthinking-network.org).
Details on the conference can be found at http://www.in2in.org

* The Annual Transformation Forum will be held in
Doncaster, UK, 15-16 May, 2002.  This popular event
always provides great value!  Practical experiences and
cutting edge theory will both be explored.  Click to
http://www.deming.org.uk/ for further details.

* The International Association of Facilitators (IAF)
Conference provides workshops and sessions to develop
effective meeting skills, improve group efficacy,
mediation and individual development.  Attend the 2002
Conference, titled "The Quest for Transformation", to
take advantage of these sessions and give your business
and work life a boost in productivity and enrich your
experience.  When you register, you have the opportunity
to select the concurrent sessions you want to attend.
The topics will range from facilitation and technology,
large group interventions, diversity, facilitation basics,
and many more.  Many of these will have limited seating.
Avoid any disappointments by registering now.  The
conference is on May 23-26 in Ft. Worth, TX at the
Worthington Renaissance Hotel.  You can register online
at the conference web site http://www.iaf2002.org

* WE ARE VERY INTERESTED IN GETTING YOUR INPUTS FOR
UPCOMING TOPICS and SPEAKERS. If you have inputs, please
contact Marcia Daszko.  Also contact Marcia for details
about upcoming programs.  Her number is 408-247-7757;
e-mail address is MDaszko@aol.com. 

Surf the Worldwide Web to BADUG.  An overview of the
group, past meeting minutes, and an index of Deming-
associated sites can be accessed via your web browser.
Find the site at: 

http://www.cafm-services.com/badug/BADUG-TOC.htm

March's Meeting Notes: 

The Quality Implications of Increasing the Number of
Suppliers - Presented by John Flaig

Dirk Van Putten submitted this month's notes:

The question is how many suppliers should we have?
Dr. Deming encouraged trying to reduce multiple suppliers,
as organizations would look for many suppliers to provide
protection if goods/service flows were disrupted.  Some
companies want multiple suppliers for the same product
to get the suppliers to compete with each other.  John
reviewed a paper he has written on the topic (available
from John at JohnFlaig@yahoo.com).  It provides an
objective statistical analysis to help the reader
understand the true costs and impact on quality of
carrying additional suppliers.

The common model in tough times is to reduce operating
costs, reduce labor, and reduce material costs.  To
reduce material costs ask all suppliers to reduce cost.
Get additional quotes from new suppliers and pit
suppliers against one another based on price.  Deming's
guidance was to improve trust between suppliers/customers
and strive for long-term relationships.

Will adding suppliers tend to degrade product quality?
According to John, adding another supplier has a
significant chance of degrading system output, not even
taking into consideration the costs of supplier management.
The suggestion is that suppliers should be single sourced,
but not necessarily sole sourced -- There are situations
of high risk where a case can be made that having an
alternative supplier, in the event the primary supplier
can not perform, will make sense.

Is the environment in today's business culture different
between the early 90's and today? -- John believes it
may be worse today.  

Long term relationships allow suppliers to invest funds
into research and development, and product quality.
Doing business on price -- driving towards zero cost --
is a losing situation.  Multiple suppliers can affect
product traceability.  Working together between customer
and supplier for long term health provides benefit for
all stakeholders -- It keeps in mind that suppliers are
part of the total business system.

Is it worth the risk of bringing on another supplier?
Viewing business as a system, will we show a reduction
in material cost, but an increase in overall business
(system) cost?

Individual rewards to purchasing employees do not
recognize that the business is a system.

Supplier review and approval should be in-depth and
cross-functional.

Does this apply to service providers? -- John thinks
so, but has not measured it...

The business system that includes purchasing must be
adequate to provide leadership and direction in supplier
management strategies.  Product and/or service
specifications must be clearly stated when comparing
suppliers.

>From the group debrief -- Lessons learned:
- Plants burn down.  (So live with that very low
   probability fear!)
- Need to look at whole system cost
- Single sourced is different from sole sourced

Links to Deming:
- System thinking; optimization of the whole
- Theory of Variation
- Cease doing business on price alone

Unanswered questions:
- How to spread this knowledge
- Application to service situations

To receive the Bay Area Deming Users Group's newsletter,
contact:

Dan Robertson           -or-    Marcia Daszko
1141 Bruckner Circle            2752 Glorietta Circle
Mountain View, CA   94040       Santa Clara, CA  95051
650-964-9186                    408-247-7757
DanRobrtsn@AOL.com              MDaszko@AOL.com
                                www.mdaszko.com
                                www.itslonelyatthetop.com

Please supply us with a US Mail address, a fax number or
an Internet ID.  We encourage electronic distribution if
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that best fills your needs. US Mail distribution will be
provided for 12 months from your communication with us.

** Directions to BADUG meetings **
Venue: The Acuson Corporation Education Center,
Building I, at 1393 Shorebird Way in Mountain View.
Contact Dan Robertson if you have questions.

1/ From freeway 101 take Shoreline Boulevard,
   "Amphitheatre" direction (toward the bay).
2/ Turn right, off Shoreline, onto Shorebird Way
   (Shorebird is the next street after Spacepark).
3/ Building I is the first building on the right.
   "BADUG" signs will direct you to the meeting room.

The next BADUG meeting is Monday, 1 April 2002.