This is Part 5 of 6 of the Deming Red Bead Video Tutorial. In this video, we learn tricks to facilitating such an event. Watch below and be sure to also view Part 6, the final video in the Red Bead Experiment Series.

## Video Transcript

Steve Prevette: On to QA we go.

Male Voice: Six dismissed.

Steve Prevette: Well, okay. Put that back in. Now, the key here seems to be the second dip is always better than the first one. So do the second dip first. [laughter] Oh, a little modification here. Okay. Except that modification didn’t work too good. You left a hole. Can’t sell holes. Got to be sure of that count. I’m glad I have my ethical QA department here. Except you weren’t dismissed. Hold on.

Male Voice: Sixteen dismissed.

[audience groan]

Steve Prevette: Oh, sixteen. You see what happened when you changed side? Okay. Up. Forward. You just¦ I kept my best workers and¦ Yeah, we’re just trying to record here. I’ve got to make these beads and get them out the door. Just put them down there. [laughter] Now, you’re not dismissed yet. We’re slipping here.

Male Voice: Thirteen.

Steve Prevette: Thirteen. Well please total up the number of beads for the day, 29, 38, 42, something like¦ 57. Are you serious, 57?

Male Voice: You got me on the wrong line.

Steve Prevette: Fifty-seven.

Male Voice: You lost it. You haven’t got it.

Steve Prevette: Ah, it doesn’t matter. Fifty-seven. [laughter] Because we kept our best workers, and I had my worst day yet. So nothing more from you. Mr. President, we completed our fourth day of work with our best workers and we had 57 red beads. Our worst day to date.

Steve Byers: Well, all I can say is that the management team is stunned and disappointed. This is certainly not what we thought would happen keeping our best, above average workers. We have bet the company on this contract, and so because it has been cancelled, because of our poor performance, I’ll ask you to please dismiss the remaining workers as well as the QA team, recorder, and so on. We’re closed for business.

Steve Prevette: Here’s your severance pay and¦ [laughter] your severance pay. And please give our work force a round of applause.

[clapping]

Steve Prevette: Well that was the red bead experiment. Now this was a tool that Dr. Deming used during his four day seminars. And we’re using it here to demonstrate some ISMS principles and we’re going to critique what just happened. By the way, I’m Steve Prevette. I’m from Fluor Hanford, ES and H, and the president is Steve Byers, representing the American Society for Quality.

Well our first step here is, we used a lot of feedback here. ISMS sure includes a lot of feedback. But maybe we could do something different here and plot some dots. We’re just going to put a little graph up. If I can ask the president to help by reading off some points as we go, let us go forth.

Steve Byers: Ready?

Steve Prevette: Yep. Ready.

Steve Byers: Eight.

Steve Prevette: Eight.

Steve Byers: Ten.

Steve Prevette: Ten.

Steve Byers: Ten.

Steve Prevette: Ten.

Steve Byers: Nine.

Steve Prevette: Nine. Now, I came here to work early on with Tank Farms and they were wrapping one fiscal year after the other. Only producing first fiscal year data, and they put a nice curve function through on Harvard Graphics, and fed a curve like this and said, Notice the fine, improving trend to zero. [laughter] We won’t do that, of course. Okay. What was willing worker number five?

Steve Byers: Eleven.

Steve Prevette: Eleven. Hmm.

Steve Byers: Eight.

Steve Prevette: Eight.

Steve Byers: Second day.

Steve Prevette: What happened to that dip down to zero? Hmm. Oh, well. Second day.

Steve Byers: Ten.

Steve Prevette: Ten.

Steve Byers: Seven.

Steve Prevette: Seven.

Steve Byers: Thirteen.

Steve Prevette: Thirteen.

Steve Byers: Seven.

Steve Prevette: Seven.

Steve Byers: Ten and nine.

Steve Prevette: Ten and nine. Boy, it’s just bouncing all over the place, isn’t it?

Steve Byers: Seven.

Steve Prevette: Seven.

Steve Byers: Eleven.

Steve Prevette: Eleven.

Steve Byers: Seven.

Steve Prevette: Seven.

Steve Byers: Four.

Steve Prevette: Oh, four. Hmm.

Steve Byers: Eleven and nine.

Steve Prevette: Eleven and nine. And the last day with our best workers.

Steve Byers: Sixteen.

Steve Prevette: Sixteen.

Steve Byers: Thirteen.

Steve Prevette: Thirteen.

Steve Byers: Nine.

Steve Prevette: Nine.

Steve Byers: Four.

Steve Prevette: Four.

Steve Byers: Nine.

Steve Prevette: Look at that. Linear regression right on down. Four. Okay. what was after four?

Steve Byers: Nine and six.

Steve Prevette: Nine and six. Boy, this is all over the place, isn’t it? And, of course, if we’re going to produce this as a chart, we’d probably put bars under it, and three dimensions, and colors, and the whole works, and there’s our performance chart, right? What does it mean?

Well, let’s offer something here. We’re going to make what is called a control chart, which is Hanford procedure 4294. When you work performance indicators and when you work ISMS, we use these control charts. Now the first thing you’ve got to do is determine what was the average. And we total up all the days, 56 and 56 and 49 and 50. I’m going to do this without a calculator even. Everybody thinks control charts are hard to do. I’m doing this without a calculator, without a computer. Twenty-one, 28, 2, 7, 12, 16, 21. Two hundred and eighteen¦ 218 total red beads, for 24 people pulled the red beads. And that gives me 9, 18, 36, looks like the average is nine.

So we draw a line across the screen at nine. An amazing thing occurs, does it not? Half the data’s above the average, and half the data’s below the average. That’s amazing isn’t it? Yet how many people are grading our facilities as above average, below average? How many people’s children get graded as above average or below average at school? We do performance appraisals. Who’s above average, who’s below average? We’re fating 50% of the population to be below average. And it’s always going to happen, right? Doesn’t say anything, but we do it.

Well, what we do that should be better is the next thing I’ve got to do is express the spread of this data, which is to put three standard deviation control limits on the line. Now, in this case, this is a plus on distribution because I’m counting defects. This works well when you’re counting defects. The standard deviation is the square root of the average. The square root of nine is three. Nice round number. Three times three, three standard deviations, is nine again. So the upper control limit is 18, and the lower control limit is zero. UCL average, LCL. There we have a control chart. No computer, no calculators, just a control chart.

Now we interpret this. What is happening is I actually have an extremely predictable process. We couldn’t understand why every worker was changing from day to day, from shift to shift. But I really have a predictable process. I average nine, I get no more than 18, I get no less than one, because zero is on the lower control limit. So anywhere from one to 17 red beads is what I get. And that’s what we got. We have no seven in a row above average, or any other rules for a control chart. So I have a stable process. A stable process.

Yet, what was I doing? What was the effect of having the $30 on the table? Nothing. Do we have bonus pay here? What’s its effect? What was the effect of doing performance appraisals? Do we do performance appraisals? Interesting. What was the effect of the procedure?

Male Voice: Controlled system.

Steve Prevette: Controlled system?

Male Voice: Controlled results.

Steve Prevette: Yeah, controlled results, but vary widely. It certainly did not meet the customer’s demands, did it? How about this numerical goal? Three. Weren’t you finally motivated when you had this number three out there? Yet in the MYPPs our numerical targets for OSHA recordable case rates. What good does the numerical target do? Interesting. So what can we do different? Well let’s take this in an ISMS context.

**Get instructions on how to conduct the Red Bead Experiment >>>**

Blog Article | Excel | PowerPoint | Video |

Module | Description | Type | |

Overview |
## What is Six SigmaThe various definitions of Six Sigma is explained in this 5:42 video. We specifically discuss 6 definitions of "Sigma", ending with the most relevant definition which is related to the DMAIC Method of Problem Solving. |
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Overview |
## The DMAIC FrameworkIn this 4:17 video, we explain the DMAIC framework and give an introduction to each phase in DMAIC. We specifically show the storyboard for each phase in the DMAIC framework. |
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Overview |
## DMAIC versus PDCAArticle describes how PDCA is used in Lean and the similarities and common history between PDCA and DMAIC. |
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Overview |
## History of Six Sigma and LeanIn this video, we go through the various contributors of Six Sigma, their contribution, and why it's important in the practice of modern Six Sigma. We also go into the history of the Toyota Production System and how the term "lean" was coined. Video is 7:36 long. |
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Overview |
## Lean History and TimelineThis article shows a comprehensive history and timeline of Lean and of continuous improvement beginning in the 1600's. |
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Overview |
## Black Belt CertificationIn this article, we provide various resources where you may take the Black Belt exam should you choose to do so. We also discuss the positive and negative of Black Belt certification. |
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DEFINE |
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Define |
## The Define Phase StoryboardWe introduce the Define Phase and show the Define Storyboard, a high level map of what the phase is about and the expected outputs. Video length is 3:50. |
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Define |
## Business Needs AssessmentIn this video, we discuss how to identify business needs of an organization and how to take that knowledge and transform it into a formal DMAIC project that will get the backing and support from top management. Video length is 6:46. |
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Define |
## Project CharterIn this 5:37 minute video, we explain the role of the project charter and its importance in Six Sigma DMAIC projects. Video length is 5:37. |
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Define |
## Project Selection MatrixIn this short 2:51 minute video, we learn a simple and effective method for prioritizing between competing priorities. This method is important for the selection of an improvement project. |
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Define |
## Problem StatementArticulating the problem well gets you much closer to a solution. In this video, we show you how along with several real world examples of effective problem statements. Video length is 5:42. |
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Define |
## Stakeholder AnalysisIdentifying stakeholders and their needs is one of the most important steps in Define. This is especially crucial if there are any influential stakeholders that are resistant to your message. Video length is 2:47. |
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Define |
## Affinity DiagramAffinity Diagram is a tried and true method for brainstorming and coming up with ideas. Learn how to apply this technique in this video. Video length is 4:25. |
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Define |
## SIPOCIdentifying the key spots where measurements can be taken in crucial. This video will show you how to do it. Video length is 3:01. |
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Define |
## Voice of the Customer and CTQIn this video spanning 5:11, we explain Voice of the Customer and how Six Sigma is rooted in the customer. We explain how to translate Voice of the Customer into Critical to Quality Metrics. |
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Define |
## Critical to Quality TreeArticle explaining the critical to quality tree, with examples, and a template to download so you can create your own for your six sigma projects. |
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Define |
## Value Stream MapIn this 4:42 video, you will learn understand the value stream map symbols and learn how to design your own value stream map. We provide a zip file of VSM Symbols for you to download. |
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Define |
## Kano ModelWe explain the Kano Model to identify service and product characteristics that should be "satisfiers" and the ones that be "good enough" and don't need to go any further. |
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MEASURE |
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Measure |
## The Measure Phase StoryboardWe introduce the Measure Phase and show the Measure Storyboard, a high level map of what the phase is about and the expected outputs. |
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Measure |
## Data Types in Six SigmaIn this article we explain the various types of data, how they're different, and what they tell us about process behavior. We will also learn how to collect data. Video length is 5:24. |
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Measure |
## Descriptive StatisticsIn this module we learn various data measures that tell us key characteristics of a data set. We also begin the foundation for our discussion on distributions in a later module. |
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Measure |
## DistributionsThis is a brief introduction to statistical distributions and what inferences we can draw from them. |
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Measure |
## Graphical Representation of DataGraphically representing data effectively is required to effectively communicate meaning. In this module we learn various graphical methods and how to do them. |
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Measure |
## 7 Quality ToolsWe briefly introduce each of the 7 quality tools. We follow this video several videos where we focus on the detailed of each of the 7 quality tools. Video length is 4:46. |
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Measure |
## Check SheetsIn this HD video, we explain the checksheet, what it is used for, see various examples of checksheets, how to create one, and be able to download a checksheet template from the Shmula content library. Video length is 3:53. |
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Measure |
## Pareto ChartIn this 4:48 minute video, you will learn the history of the Pareto Principle, why it's important, and how to apply the Pareto Principle in your lean and six sigma efforts using excel. |
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Measure |
## HistogramThis video on the Histogram explains what it is, when to use it, and how to use it. Video length is 3:01. |
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Measure |
## Scatter PlotIn this 4:27 short video, we introduce the Scatterplot, what it is, why use it, and how it can be helpful in your six sigma projects. |
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Measure |
## Cause and Effect DiagramThis 5:21 minute video explains the cause and effect diagram - what it is, when to use it, and how to create one. |
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Measure |
## Control ChartIn this video, we introduce you to the control chart - what it is, where to use it, when to use it, and how it's used. Video length is 7:05. |
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Measure |
## Run ChartIn Progress |
In Progress | |

Measure |
## Process Cycle EfficiencyProcess Cycle Efficiency is a more modern tool that looks at processes from the perspective of value and waste. We show you how to do it and why it's important. |
In Progress | |

Measure |
## FMEAFailure Mode Effects Analysis is a tried and true method and technique for quickly identifying ways where process problems can occur and how to quickly mitigate them. Video length is 4:45. |
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Measure |
## Basic StatisticsIn this article, we go in depth to explain basic data types, scales, and the language of six sigma. |
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Measure |
## Using Z ValuesWe learn about Z Values or the Z Score with applications in Six Sigma projects. |
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Measure |
## Sample Size CalculationsIn this module we learn the underpinnings of sample size calculations and how they are used in six sigma. We provide a sample size calculator in the template section also. |
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Measure |
## Introduction to VariationThis article introduces the learner to the concept of variation and how it impacts the customer experience. |
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Measure |
## Red Bead Experiment Part 1Introduction to red bead experiment. |
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Measure |
## Red Bead Experiment Part 2In part 2, we actually do a quick run through the experiment. |
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Measure |
## Red Bead Experiment Part 3In this video, we explain and go through more runs of the experiment. |
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Measure |
## Red Bead Experiment Part 4In this video we continue our experiment and go through some of Dr. Deming's most famous quotes. |
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Measure |
## Red Bead Experiment Part 5Continuing the experiment, with a focus on how to best facilitate an event. |
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Measure |
## Red Bead Experiment Part 6In this last video in the series, we go through the key lessons learned from Deming's famous experiment on variation. |
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Measure |
## Measurement System AnalysisIn this video we discuss variation and how it impacts our methods of measuring. Video length is 5:28 and we show examples along with tips on how to deal with bad metrology. Video length is 5:28. |
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Measure |
## Gauge R&RIn this video we explain the Gauge R&R Test and provide various examples of where and how it may be applied in industry. |
In Progress | |

ANALYZE |
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Analyze |
## The Analyze Phase StoryboardWe introduce the Analyze Phase and show the Analyze Storyboard, a high level map of what the phase is about and the expected outputs. |
In Progress | |

Analyze |
## BrainstormingWe introduce various methods of brainstorming. Some conventional and some not very and more modern. Some of these methods are taken from Design Thinking and have been found to be very effective in identifying innovative and simple solutions to problems. |
In Progress | |

Analyze |
## 5 Whys and Fishbone DiagramIn this video we explain the 5 Why exercise and show many examples. We extend the 5 Whys and show how it naturally leads to the Fishbone Diagram. |
In Progress | |

Analyze |
## Verifying Root CausesWe introduce hypothesis testing and various methods for doing so including the Regression, T Test, Chi Square, and ANOVA. |
In Progress | |

Analyze |
## Hypothesis TestingIn Progress |
In Progress | |

Analyze |
## RegressionIn Progress |
In Progress | |

Analyze |
## T TestIn Progress |
In Progress | |

Analyze |
## Chi SquareIn Progress |
In Progress | |

Analyze |
## ANOVAIn Progress |
In Progress | |

IMPROVE |
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Improve |
## The Improve Phase StoryboardWe introduce the Improve Phase and show the Improve Storyboard, a high level map of what the phase is about and the expected outputs. |
In Progress | |

Improve |
## Change ManagementWe introduce you to several change management models that have been found to effective in practice. We show what they are, how to do them. |
In Progress | |

Improve |
## Solution Selection MatrixThe Solution Selection Matrix is a simple tool that helps a team vote and decide on which solution makes the most sense to put resources behind in improvement projects. |
In Progress | |

Improve |
## Process CapabilityWe discuss process capability and how it's different from a process not in control. We discuss its importance. |
In Progress | |

Improve |
## Cost / Benefit AnalysisWe introduce the concept of Cost and Benefit Analysis and provide several ways at showing cost savings from Six Sigma Projects. |
In Progress | |

Improve |
## Poka YokeAs part of the Improve Phase, we introduce the concept of Poka Yoke, or error proofing, as a way to prevent defects before they even occur. We show may examples and teach the principles behind Poka Yoke. |
In Progress | |

CONTROL |
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Control |
## The Control Phase StoryboardWe introduce the Control Phase and show the Control Storyboard, a high level map of what the phase is about and the expected outputs. |
N/AN/A | |

Control |
## Before / After ParetoWe show ways to visually see before and after results of your project. |
In Progress | |

Control |
## Standard Pig GameIn this 4:55 minute video, we show you a simple and effective game that teaches the importance of Standard Work. This video should be watched prior to the video on Standard Work. |
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Control |
## Standard WorkStandard Work is a foundation of Lean and Six Sigma. In this 5:36 minute video we explain Standard Work and show its role in continuous improvement. |
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Control |
## Control ChartsWe discuss the various control charts, why they're important, and how to create them given your process and given your data type. |
In Progress |