The Demise of Quality - My Wife's Friend, British Airways and Air France

I was vacuuming the living room last evening, when my wife told me that her friend arrived safely in Egypt after a long flight from Washington with a connection in London. She then added that her 10 year old son is walking around in his swimsuit at home and her friend is wearing some old maternity clothes she had from a decade ago. I asked my wife "Did they lost their luggage?", she replied that no a single bag of the eight pieces her friend and her three kids had arrived.

It has been two days since my wife's friend family had arrived on board British Airways with no luggage. I mentioned to my wife that her friend should request a compensation of some sort, may $100 per passenger, so they can use this modest pocket money to go buy some clothes until their bags appear. My wife's response was "we are thankful that they arrived safely". Well, yes of course compared to Air France's latest flight that plunged in the Atlantic, the losses and inconvenience is minimal, and one should always be thankful, regardless of what one goes through". The point however is that the passenger's (customer) expectation is be transported safely along with his luggage from point A to point B. If customer's start changing their expectations, quality will automatically by definition change.

An attorney would seize the opportunity and ask the passenger to file a suit against the airline asking for some ridiculous amount of money as a compensation for damages. Maybe $1 million dollars per lost bag, or the highest that the court will allow. We have various mindsets of customers when it comes to settling disputes with a service provider. At one extreme a client will say no problem, just get me my bags if you can, when you can. On another extreme another customer will say meet me at court, and then there are infinite of perspectives in between.

What would you do? What would a good system's engineer do? Share your thoughts in the comments below.

Two Approaches to Use Statistics on Your Project

Most people don't like statistics, and most decision-makers make wild guesses when they need to take a decision. Statistics might not be the most straight-forward science during the college years, but it has tremendous value in providing insights and guidance for making rational decisions.

Using statistics one can show various properties of a set of data such as the mean, mode, median, dispersion and distribution. These parameters can be represented graphically using histograms, charts and other visual illustrations.

Another approach using statistics is to develop inferences, test hypothesis and develop forecasts through the use of sample data from a bigger population. Relationships between variables can be developed and illustrated using a scatter diagram or a regression equation.

Six Sigma's DMAIC vs. Design for Six Sigma's IDOV / DMADV

Six sigma's success is mainly contributed to its DMAIC model. The DMAIC model focuses on defining an issue with an existing process or product, measuring the deviation from the expected behavior, analyzing the data for insights to root causes, improve the current process or product through minimization of deviations or improvements and finally controlling the system to sustain the gains achieved.

IDOV and DMADV which are two design-based models slightly differ from DMAIC as follows.

Objective and Approach: DMAIC views the current process or product as correct and economical, but needs to minimize some gap leading to inefficiencies. IDOV / DMADV view the current process or product as in need of redesign or design change to achieve customer satisfaction.

Process Capability: DMAIC views current process as capable of satisfying customer needs, whereas IDOV / DMADV views current processes as a candidate for improved yield regardless of volume and complexity.

Design: DMAIC views the current design as satisfactory for the client's needs, whereas IDOV / DMADV views the need to consider various drivers for design, such as cost, manufacturing, producibility, maintainability, robustness, usability, efficiency, security, agility, compliance and testability.

Flexibility: DMAIC assumes that the current design and processes are flexible to meet customer demands and needs, whereas IDOV / DMADV highly considers potential customer demands and forecasts newly developed needs

Validation: IDOV and DMADV both consider validation and verification of the outcomes of a design or process in meeting objectives.

To read more:
[1] Chrisitian Madu, "The House of Quality in a Minute", Chi Publishers, 2006.
[2] Rod Munro, "The Certified Six Sigma Green Belt Handbook", Quality Press, 2008.

3 Practices to Becoming an Agile and Lean Enterprise

About a month ago I was approached by a client asking to give advice regarding some organizational changes and major layoffs they were embarking upon. The client sent me an email with about six or seven different options to pursue to cut on their operating expenses.

I noticed that all the options were focused on eliminating employees. My question to myself, if eliminating employees seems the favorable and only approach that comes to mind, why were these employees present in the first place? There must have been a need for them in the organization, otherwise why were they hired in the first place? What operations will suffer when these folks are let go?

Many businesses fail to realize that a lot could be done way in advance to avoid shedding off employees. Letting go of your most valuable resources, your staff, should be the last thing to do, before closing shop. I list ten actions that can be done months before the crunch becomes severe to be forced to shut down.

1. Reduce non-valuable activities, a.k.a trivial work.
Non-valuable activities are those which your customers are not willing to pay for, they do not change the form or function of the product or service they are interested in. An example is rework, due to defects in a process used to produce the end product or service. Other examples are wait-time during the process. For example if you order a book online, you are willing to pay for the book to be shipped from the publisher to your location, you are interested in how much time it takes the book to wait at each regional hub for its next pickup. If there is a cost to the shipper to pay for the time spent at each shipping hub it will increase the cost of your book shipment and will not provide you any value. The only value you realize is the book being shipped to you as fast as possible. Instead of focusing on accelerating valuable processes, one should first eliminate non-valuable processes, as the effort of work will probably be less and the outcomes more effective.

Muslims also know non-valuable activities as "Lagow", an Arabic term mentioned in the Quran in several places, as deeds that have no benefit, or are a mere waste of time. These are deeds that keeps one's focus away from his purpose in life, which is the success in the hereafter.

Before improving valuable processes, it is important to get rid of as many non-valuable processes as possible. In the case of my client, they were focussing on products that yielded low profit margins, were difficult to market, promote and sell, and required large staffing and overhead.

2. Reduce waste
Waste is all around us in our activities. It is imperative that before we develop new processes to improve deficiencies we actually reduce waste as much as possible. Waste could be due to over production, excessive steps due to complexities of processes, queuing and idle time, defect correction and rework, poor organizational and planning processes, lack of controls and creativity stagnation.

Through some auditing and analysis it was found that my client had opportunities to reduce expenses of photocopying, utilities, rent and other non-valuable activities prior to let go of employees who were driving valuable activities for the end user.

3. Use facilitation to reduce cycle time and enhance efficiencies
A facilitator who is neutral to the different entities in your enterprise, and who has no authority or decision-making control, can bring tremendous value to your organization. The facilitator can apply collaboration concepts, systemic approaches and architectural thinking to decompose problems, address impacts in all areas of interest, and ensure a collaborative environment exists where the various team members can share ideas, brainstorm and foster creativity.

Controling Many Small Changes: Taming the Culprit for Most Accidents or Failures

As changes creep upon our processes, methods and systems; we accumulate little bits of inefficiencies which eventually become large and cripple the system.

Six Sigma helps ensure continuous improvement, through the use of data collection to analyze and understand how a process works or changes. The focus in this case is to reduce variations to processes or design ultimately leading to less defects. Common approaches to identify these variations or deltas is through the voice of the customer (VOC), quality function deployment (QFD), failure mode effect analysis (FMEA) among many others.

Lean improvement approaches can also help address change creep consequences. The focus in this case is more on waste minimization and elimination. Common approaches are value stream analysis, the five S, Kaizen events, just in time, work standardization and error proofing.

Feedback: A Core Component of a Successful Process

Processes comprise of a functions which operate on inputs to produce outputs. Data associated with the inputs and outputs can be used to further enhance the process quality. The data related to the process outputs could include important elements that when fed back to the input within a solid analytical framework could offer valuable insights and impacts on the process improvement.

Several key steps in designing the appropriate data collection, analysis and feedback system are summarized below:

1. Decide where to collect the data
Data can be collected at the input, various processing points, decision-points, at the output or any combination of all of these locations.

2. Decide what measurement systems to use
Various techniques exist to collect and measure data. Decisions need to be made on best statistical approaches, summarization techniques, collection methods and the levels of accuracy and precision needed.

3. Decide how to analyze the data
Approaches of data analysis need to be determined. It is important to determine cause and effects, root causes, correlation, regression dependencies and other relationships among the various variables and factors.

4. Decide on how to use the information resulting from the data analysis
Decisions related to the application of the information learned is important. For example will information be applied in real-time, or after process reengineering is brainstormed.

The Cruiseterminal - The World's Floating Dock

Even by Dubai's standards the Cruiseterminal is an extravagant project. Rigged to a foundation in the Persian Gulf it can host three of the largest cruise ships. Its an integrated system comprising of its own photovoltaic electricity generation subsystem, an entertainment and retail subsystem, a 180 room lodging subsystem, docks for tens of smaller boats.

A system such as the cruiseterminal brings new challenges not only to system design and development, but also system operations, support and maintainability.

To check pictures of the Dubai floating Cruiseterminal among other structures, check De51gn at http://de51gn.com/design/the-floating-world-of-koen-olthuis/

Using the Theory of Constraints & Six Sigma to Fix Critical Components of the Economy

Constraints are all around us. The theory of constraints is a lean problem-solving concept based on a simple concept, that a process can not move faster than the slowest part of the process.

Our economy as a complex enclosed system has constraints and it will respond to stimulus as quick as the slowest link in the economy. The chart on the left illustrates some major components of the economy. They all need to be improved for the stimulus to realize benefits, otherwise it will be a temporary patch.


The root of the problem lies in three areas:

1. The concept of printing money and the process followed to release cash into the market. The Federal Reserve Bank - which is not a government entity - is provided the authority to distribute the nation's currency and supervise banks which are members in the system. When the US releases currency into the market it requests the Federal Reserve Bank to print dollar bills in return for an interest payment on the amount. No real assets are provided as collateral to backup the value of the printed currency. The value of the currency is only backed up by the reputation and promise of the US government to accept the currency as a form of payment. As users of the currency lose faith in the governments ability to keep the promise the value can drop significantly. One reason for the poor confidence in the currency, is the automatic depreciation of the currency the day it was printed. For every US dollar printed a small percentage is due to the Federal Reserve Bank as interest on that printed dollar, in a sense every dollar released into the market is really worth 0.98 of a dollar, if we assume an interest rate of 2%. Add onto this, the fact that the US government is running into a non-stop deficit in social security, and other areas leading to increase in bond issuing to countries such as China and India, further diminishing the value of the US currency.

2. Interest rate or usury is another problem in the overall system. The fact that currency value depreciates today based on some future value determined by an interest rate automatically leads to inflation, and future depreciation of natural resources. Charging interest is like pumping steroids into a body builder, eventually at some point the body will collapse.

3. Selling what we don't own. The idea that goods and services can be sold without actually owning them creates a virtual commodity system, not backed up by real commodities or assets.

Unless these areas are fixed no stimulus package can work on the long term. Some simple steps to address this issue are:

a. Identify the constraints of the financial and monetary systems
b. Exploit the constraint or re-engineer
c. Subordinate other steps in the overall process to the improved constraint
d. Revise the constraint if it has not been eliminated by steps b and c
e. Repeat the steps above for other constraints

Applying this into practice can be as follows:

a. Identify the constraints of the financial and monetary systems
- Currency not backed by a true tangible asset (some natural resource like gold or silver)
- Currency being depreciated the day it is printed, solely due to interest
- Distribution and sale of products that do not exist (example lending money to a business when the bank does not have the exact cash reserved, selling a commodity that one does not own and has not yet paid for)
- Using interest rates to discount projects, assets and commodities to a future value, leading to valueless future assets, commodities, natural resources

b. Exploit the constraint or re-engineer
- Re-engineer the monetary system that issues a currency based on a true asset and not just a promise
- Re-engineer the concept of future valuation
- Re-engineer the concept of wealth circulation

c. Subordinate other steps in the overall process to the improved constraint
- Use a sustainable natural resource to backup the value of an issued currency
- Use joint partnerships, gifting (0% loans) and entrepreneurship, moving away from interest bearing loans of money that is not owned by lenders.
- Base future valuation on true-value (value proposition) provided to global society rather than a discounted interest rate.

d. Revise the constraint if it has not been eliminated by steps b and c
e. Repeat the steps above for other constraints

One Way to Ruin a Great Product Idea - When Design and Implementation Miss

A friend of mine sent me some interesting pictures for projects that might have seemed successful on paper, when in implementation they failed. This is where a systems engineer comes in handy, in cases like these.

A Financing System for Prosperity, Growth and Social Justice

My dear friend Mohamed El Habashy sent me a link to an interview that he was part of on PBS. He was one of several experts interviewed on hot topic of Islamic financing. It seems that the World suddenly woke up to realize that a system that was revealed to mankind some 1430 years ago is now all the sudden a good choice.

The Islamic financing system is based on one of three main models:

- Mosharaka (joint ownership through stocks, capital partnerships)
- Qard Hasan (good lending, a loan with no interest (0%) regardless of amount and maturity date)
- Mudaraba (entrepreneurship or partnership with effort and experience)

Several key concepts in Islamic financing are

1. Joint sharing in risk and reward (property/asset price increase and decrease) - is part of the definition of ownership in Islam, and it provides responsibility and fairness to all parties.

2. The concept of selling money (lending with interest) is prohibited. In Islam lending money as a form of investment is prohibited and not in compliance with the Islamic Shariyah.

3. Sales are only acceptable on items owned. This means someone can not sell an item (product, service, shares, commodity, etc..) unless he has paid for it in full and has full control on it. In Islam a person selling stocks that he never paid for is prohibited and not in compliance with the Shariyah.

As of today there are no 100% Islamic compliant financing vehicles in the US, the efforts mentioned above in the PBS article are good and trying to strive to get close to the fair and just Islamic financing. However due to regulations and other factors there are some gaps, such as the joint risk sharing in a partnership model. Islamic financing has been around for 1430 years from the days of Prophet Mohamed and it is implemented in many parts of the World (UK Links: 1, 2, 3, 4, 5) we in the US are just behind. There is a US institution that has started offering some Islamic vehicles.

There is no question that Islamic financing is fair, just and solid, providing fair social rewards to all parties involved, unlike other means of financing. Islamic financing can be used by non-Muslims as well whether they decide to fund or use the system.

Usury/interest was prohibited not only in the Quran, but Jesus and Moses were ordered to tell the people to not engage in usury. (proverbs 28:8, Ezekiel 18:8, Exodus 22:25)

Finally America Might See a High Speed Rail System

It's not about time that America gets a high speed rail. It is way past due. Japan had one for decades, and Europe has been there, did that ages ago.

These days there are discussions about two impressive high rail initiatives worth mentioning. In the West Obama is pushing for $13 billion ($30 billion total cost) high speed rail system (links 1, 2, 3) in California and the heart of America's Mid-West, Chicago, my favorite city. In the East King Abdullah is launching a high speed rail route between Makkah and Madinah.

Wikipedia has compiled a list of high speed rail projects across the globe. The Saudi project is impressive as it has the least cost / mile worldwide. The American is impressive because it is the first in the Western Hemisphere and second fastest worldwide reaching a little over 150 miles / hr.

Now here is the big project. China's high speed rail, the longest worldwide reaching over 800 miles and exceeding the American train speed. A really neat chart showing the world's top high speed projects can be found at infrastructurist.com by Yonah Freemark.

So the questions that pop up are: Why did it take America too long to initiate such a project? Will it be a success or another Acela (links 1, 2). Successful system development is contigent on many factors some of the critical ones are policies, supporting infrastructure, overall cost, stakeholder value proposition.

So why do I consider Acela a failure ( 1, 2)? Well, for one it was a very expensive system, secondly, it did not take away much volume from other modes of transportation. If it takes me an hr to drive from my home to get to an Acela station in Washington DC so that I can get to New York City in a couple of hrs, I might be better off driving up to New York in 2.5 hrs and pay less in gas and have the convienence of my own transportation in all the other pockets of cities and suburbs that lack public transportation. Just one of many aspects of the overall system that needs to be considered.

The boundary of a high speed rail system does NOT stop at the tracks, it goes beyond the tracks and stations to the supporting infrastructure that will allow people to get to the high speed stations, use the facilities and services within the service levels and value proposition a stakeholder will expect.

New PMP Practice Book Released Today

I just received a proof copy of my new PMP practice book today. The book is a great tool for those who prefer the self-study route. It comprises of 15 chapters covering the concepts of project management, a project's life cycle phases, process groups and project domain areas (scope, schedule, cost, risk, communications, risk, procurement, quality, human resources and integration). It also includes a chapter on professional responsibility, and a chapter with extra 130+ questions. The whole book offers over 420 practice questions very similar to the exam. The book is not a study guide (it does not have content to study, just problems to practice), it does have a chapter on how to prepare for the exam and various tips ranging from "how to get to the test center" to "how to respond to questions"

It can be purchased online from https://www.createspace.com/3380201 or from Amazon.com

Tools Alone Produce Fools

Managing a project or defining a complex system requires the knowledge and skills of appropriate methodologies and processes to realize the objectives. An individual who only knows how to use a project management tool (see selected list of tools in the sidebar), but lacks the understanding of the iterative and progressive nature of projects and how to manage the different processes within each phase will not be able to lead a successful project.

There is a big difference between developing a schedule that works and a schedule that looks good in a tool. Expert project managers need nothing more than a pencil and sheet of paper to lead a project. Tools help automate calculations and enable updates and corrections easily, allow tracking of changes and ensure a controlled environment that is agile and flexible. Tools do not defie methodologies, approaches, strategies, or plans. Tools do not execute, monitor or control and tools do not communicate, coach, inspire, motivate and collaborate. Only project managers do.

Are your pencils sharpened?

High Availability Systems Failure

Does your business require availability capabilities? In today's complex business landscape and the demand for high accountability and transparency, high availability becomes a basic requirement in operations, information access and decision-making.

Interestingly most high availability environments that fail are unable to deliver the expected results no because of technology immaturity, but mostly due to poor management and oversight. A publicly known example is the State of Texas data loss as a result of invalid checks and balances and inappropriate technical management. In this particular case according to the article in the Dallas Morning News IBM has been fined $5.4 million. Of that, $2.7 million was for failing to resolve problems quickly and $1.2 million was for server outages. Data backup breaches, missed mail deadlines and taking more than 15 minutes to respond to serious incidents accounted for the rest, according to department records released this week.

Next time you implement a high availability solution, do not get fooled by the latest server technology, data backup system or disaster recovery tools. A high availability technology with a staff member who can not use it makes it useless.

Maryland is First in the Nation to Reach Recovery and Reinvestment Act Milestone

States are required to meet certain federal guidelines and requirements to be eligible to use recovery funds allocated to the State. On March 23rd, Maryland reached this milestone. According to the State of Maryland Governor's website, "Phase I of Maryland’s ARRA funded highway projects totals more than $224 million and has the potential to support up to 10,000 jobs".

On the top of President Obama's priorities are business integrity and fiscal responsibility. Vice President Biden has been assigned this responsibility. This will drive the need for certified project managers and professionals by contractors to ensure best compliance possible with sound business practices and accountability standards.

This is a great time to get PMP certified for professionals interested in pursuing recovery act projects. I am offering several workshops soon.

Risk Management Through Coaching

To manage risks on a project we tend to follow various processes such as planning for risk management, conducting qualitative and quantitative analysis, and responding to risk. These processes include specific details such as the definition of a risk, risk triggers and thresholds, steps the team will take to identify risks, the classification and groups of risks, risk prioritization and many other little details. These processes work very well - when implemented correctly of course - and are successful in avoiding the negative consequences of a potential risk should it occur.

Besides these well known and understood project management, agility or systems engineering processes, coaching and mentoring is another powerful tool for risk management. Having another project manager as your coach allows you to get a fresh insight on project health and can hold you accountable in an informal manner to project goals and aspirations. Your coach acts as a friendly auditor and makes collaboration even fun.

Next time you manage a project don't forget to have a coach or buddy, whom you trust. You will not only gain some insights on your progress, but you will also be motivated to raise the bar.