Deming’s Red Bead Experiment

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Deming’s Red Bead Experiment AICE Quality Conference Tuesday, 06MAR07 Win all you can Win Game Jim Clauson Breakthrough Systems http://jclauson.com/aice © 2007 Breakthrough Systems

Group Activity - V Game: Win As Much As You Can A Decision Making Exercise, Illustrating the Effects of Human Behaviors and Psychology on Performance Measures © 2007 Breakthrough Systems

© 2007 Breakthrough Systems Game Sequence There will be 10 rounds. Round 5 is worth 3 times normal Round 8 is worth 5 times normal Round 10 is worth 10 times Rounds 5, 8, and 10 follow Classroom Negotiation, for the others, only the Group Members confer. © 2007 Breakthrough Systems

© 2007 Breakthrough Systems The Payoff System Result Payoff 4 X’s X - Lose $1.00 Each 3 X’s 1 Y X - Win $1.00 Y - Lose $3.00 2 X’s 2 Y’s X – Win $2.00 Each Y – Lose $2.00 Each 1 X 3 Y’s X – Win $3.00 Y – Lose $1.00 Each 4 Y’s Y – Win $1.00 Each © 2007 Breakthrough Systems

© 2007 Breakthrough Systems Psychology – Impact? What impact did psychology have on the results? Did you compete or cooperate? What did you learn from this experience? “Who ya gonna trust?” © 2007 Breakthrough Systems

© 2007 Breakthrough Systems Questions? © 2007 Breakthrough Systems

© 2007 Breakthrough Systems Wrap & Roll… Ready for SPC? Jim Clauson jim@jclauson.com http://jclauson.com/aice [return here] © 2007 Breakthrough Systems