Study Guide

The BEAD-BOX Game

The bead game with a message …..

 The Bead Box Game
n The original Dr. Deming Style

RED BEAD Experiment

This Study Guide is provided to assist you to get the most out of your
Total Quality Management Program and to make your role as a
facilitator easier while conducting the game. Please read the guide and
watch the video tape. In the back of this booklet, we have also
provided a list of resources -- organizations and written works -- to help
you obtain additional information about TQM. By the time you watch
the video, read the study guide and familiarize yourself with the
physical game, you will be ready to present this information to your
group. If you do not have direct access to the video tape, call and order
one today.
Visit our website at http://www.redbead.com for more
information and links to materials available on the Internet

The BEAD-BOX Game tm and the paddle shape is a Trademark registered to

Michael Arthur Johnson. All information, written materials, drawings, etc.
contained within this Study Guide is Copyright (c) 1983, 1994, - 2000 by Michael
Arthur Johnson. These materials may be reproduced for individual use
only. All other purposes for reproduction requires prior written
permission.
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 Dr. Deming Style RED BEAD Experiment

- Study Guide - -
THE BEAD - BOX GAME tm

Thank you for your interest in The Bead - Box Game tt mm and our
35-minute video "Beyond Total Quality Management -- Learn to
Live the Talk".
Whether you are a company owner, manager, supervisor, trainer or consultant, you are faced with
unending challenges in today's competitive environment. Obviously you are on a continued path of
improvement and are seeking tools to assist you in presenting Total Quality Management (TQM)
and customer satisfaction concepts to your audience. No matter what you call your program to
improve productivity and quality (TQM; Customer Satisfaction; Customer Delight; re-engineering;
empowered workforce; self managed teams, etc.), T h e B e a d - B o x G a m e will assist you with the
human relationship skills necessary making your program come alive.

With 4,000 wooden beads -- 3,200 white and 800 red.-- and a core group of 2-12 people
participating, you can tailor the game to a particular situation created at the time of play or a "real life"
situation at your workplace. During play, participants will readily interact while learning the
importance of communicating expectations clearly between one another.

U s i n g T h e B e a d- B o x G a m e a n d t h e v i d e o y o u w i l l l e a r n :

o The importance of driving fear out of your work culture.

o Why and how to stop blaming individuals for a problems, instead focus on solutions.
o Learn to call problems by their metaphorical name -- " R e d B e a d "
o How to create effective teams while building an understanding about the importance of
leadership versus supervision.
o How to understand the interactive nature of your company by creating synergistic ways of
thinking.
o To put pride and joy in customer service and workmanship back into the workplace.

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 Dr. Deming Style RED BEAD Experiment

SYNERGY ....
occurs when two or more people or organizations work together
to increase each other's effectiveness.

It is important to understand the importance of Total Quality Management and productivity improvement through
employee and organization involvement.

With today's competitive pressures, many organizations must realize that the traditional ways of conducting business
may not survive in the long run. Now, more than ever, managers must focus on quality, customers, people
flexibility, responsiveness and innovation. In other words, organizations need to begin programs applied in a
synergistic way.

PROGRAMS IMPLEMENTED IN A SYNERGISTIC WAY

By focusing on procedures as a series of steps, rather than unique events, we identify and eliminate the complexities
in the process. T h e B E A D - B O X G A M E assists you to identify techniques on how to stabilize all processes.
We may then use inductive reasoning to determine the proposed changes needed in the organizational system.
From this, you may then explore the solutions required to elevate the organization to a more competitive position.

THEORY and TOOLS

Incorporate the teachings of Dr. W. Edwards Deming that there are many things that make jobs difficult ( R E D
B E A D S ) and that there are problems inherent in a "system" or process which are beyond the employee's control.

TRAINING

Establish techniques to assist with effective task priority management, meeting agendas, self managing work teams
and continuous process improvement programs.

MORALE

Learn how to create an open environment that accepts positive and negative information from the willing workers.
Morale will increase as the workers feel a part of the organization. Customer satisfaction and employee job
satisfaction will increase as well.

TEAM BUILDING

As the work environment improves, the motivated employees begin to work better together and the success'
compound. Dr. Deming believes that men and women excel when provided the proper environment.

LEADERSHIP

The result of implementing programs in a synergistic way accomplish what most companies aspire to - having
quality leadership to boost the company's growth. Quality leadership does not exist solely at the top. It must prevail
throughout the entire company.

A focused effort in the leadership area to use the theory, tools, and training will result in less rework, greater
consistency, improved customer satisfaction, less frustration and improved employee morale. Teamwork is a result
of the enjoyment of work; not something that you try to teach.

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 Dr. Deming Style RED BEAD Experiment

T HE VIDEO TAPE
The video tape contains two parts. Part One shows a group playing T h e B e a d - B o x G a m e . You will see
how to set up the premise of the game and keep it moving. Part One also includes special playing tips that are also
included in this study guide. Part Two of the tape is a conversation with Mike Johnson, one of the developers of
T h e B e a d - B o x G a m e and a noted TQM consultant. Mr. Johnson holds a discussion with the game's
participants and answers some commonly asked questions about the game and TQM. The study guide reinforces
many of the points Mr. Johnson discusses in this part of the video.

The video tape was produced for the following four purposes:

1. The worker

The video and T H E B E A D - B O X G A M E ) may be used directly with the worker to relax and assure them
that management understands the process, and that data collection will not be a report card on the worker.
Instead, data and its uses are a tool, like a calculator, used to make business decisions and to improve our work
environment and processes.

2. The supervisor

The video and T H E B E A D - B O X G A M E may be used directly with the supervisor of an area to assist
them in understanding the type of environment that must be created in order for the labor to achieve maximum
productivity as input/output devices in a process. In addition, the supervisor must be free of fear that
management will not use the data a report card on them.

3. The management (at all levels including owners)

The video and T H E B E A D - B O X G A M E may be used directly with the management to enlighten them
as to their responsibility to create an environment to reward problem solvers. These are the people that fix
problem issues for good, not just hide (Band-Aid) them where they may come back later in the process or as a
defect in the customers hands. Problems rarely just "go-away", they must be eliminated from the process through
careful data gathering, analysis and organized corrective action. This process must start with a clear and
measurable set of expectations or operational definitions between all parties. Communication of these
expectations to all levels is also a must!

4. The trainer, coach or consultant

The video and T H E B E A D - B O X G A M E may be used directly with the trainer or coach that is being
challenged with the task of "making all of this happen". Many times the middle level manager is this person and
other times it is a human relations (training department) person or outside consultant that is expected to perform
miracles.

T I P : T h e v i d e o a n d T H E B E A D - B O X G A M E may be used with all levels of

people and should not be used just once and put away on a shelf! Just like other tools in our
trade, i t s h o u l d b e k e p t o n t h e c o r n e r of our desk and used frequently to make a point;
defuse a situation or remind a supplier that a problem issue is " j u s t a R E D B E A D " not a
personal threat to them!

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 Dr. Deming Style RED BEAD Experiment

Part One -- of the video

The beginning of the tape is a brief history of how TQM came to be through W. Edwards Deming,
Ph.D. Here are some important points to remember:

Ø Dr. Deming was a statistician who designed a Total Quality Management process that would
respect workers, conserve resources, and create healthy, profitable businesses that would last
for generations.
Ø After World War II, Dr. Deming presented his ideas and process to American
business. At that time, Americans were too busy building prosperity to listen. Dr.
Deming was then approached by the leaders of Japan. They listened and implemented
his methods. The rest is history.
Ø Business in America and around the world has suffered setbacks and losses for the past
20 years.
Ø Today, leaders in all sectors of business throughout the world are searching for innovative
ways to make improvements and effectively conduct business to compete in the world
market.
Ø Total Quality Management is not a trend. Employee satisfaction, dynamic problem solving
techniques and a synergistic workplace will strengthen the health of business now and in the
future.

THE BEAD-BOX GAME

After this historical overview, the video continues with a re-enactment of the game in play. By playing the
game you will discover that it's designed as a consciousness raising tool and is an effective ice-breaker for
your TQM presentation. As the Facilitator, you create a non-threatening and entertaining environment that
you , the game participants and the audience will enjoy learning in. You will discover that this unassuming
little box and its contents are revolutionizing people's understanding of the workplace.

T h e B e a d - B o x G a m e contains 4,000 wooden beads -- 3,200 white and 800 red along with a
spatula with 50 indentations and score sheets.

PLAYING THE GAME

The Facilitator gathers the group into a comfortable setting, preferably sitting around a table with T h e
B e a d - B o x G a m e in the center. Choose enough players to maximize the effectiveness of the game. You
can have as few as three players or as many as 12. The more players, the more time it will take for each
W i l l i n g W o r k e r to get at lest two turns. More players, however, also allow for more personalities and
more drama or humor. You'll notice there are spaces for six W i l l i n g W o r k e r s on the score sheet.
You can also expand your staff to include these roles

You will see in the video that two Willing Workers (line workers), a Chief Inspector (line supervisor), a
Controller (bead counter and number cruncher) and the Office Manager (oversees order processing) are
assigned their duties.

TIP: If your company is non-manufacturing or service oriented, you

can rename the roles of the player. Your Willing Workers may be
customer service representatives and the Chief Inspector could be
r e - n a m e d S u p e r v i s o r . T h e a d v a n t a g e o f p l a y i n g T h e B e a d- B o x G a m e
is that you can readily adjust the role.

Next, The Facilitator welcomes the volunteer work force and introduces everyone. The Facilitator sets the
scenario and the rules. During this time, the Facilitator points out that the red beads are flaws and
problems. The Facilitator also gives instructions on how to hold the paddle and dip it into the box of beads.

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 Dr. Deming Style RED BEAD Experiment
TIP: You can set the rules any way you'd like. One possibility is
setting quotas for the number of Red Beads the workers can have.
This can be as stringent as you think necessary. You may also want
to tie their bonuses to how many red beads they have in a given week.

The Facilitator then has Willing Worker #1 dip the paddle into the bead box to see the results. The Chief
Inspector counts the number of Red Beads and the Controller records the result on the score sheet. The
paddle is then handed to Willing Worker #2 and the same process is repeated.

TIP: At this point, the Facilitator injects fear into the workplace.
Use intimidation, guilt, unrealistic expectations, praise, threat of job
loss. Keep the pressure on. You can s ay things like Willing Worker
#1 you've had a terrible start. Now I've told you what I wanted. I
guess we'll just have to see what Willing Worker #2 can do. Maybe
he/she can make up for your poor performance". Adjust your
response to Willing Worker #2 accordingly, and so on as each
worker takes his/her turn until they're all finished.

Repeat the process by having the workers continue taking turns dipping the paddle in the box. You will
notice in the video that the Facilitator starts "carrot dangling" by offering a monetary bonus when one of the
workers dips the paddle and comes away with less beads than the other worker during previous turns. The
Facilitator then gives the "we need 110 percent" speech and the importance for the workers to "give that
extra effort". the pep talk is supplemented with "I don't want to hear 'can't be done' or 'won't work'".

TIP: To liven-up the game, one or more of your volunteer players

could be a ringer; do some role playing and rehearse with them
ahead of time so they can add to the game. The ringer's job during
the game is to either be a protagonist or antagonist to the Facilitator.
The ringer can jump in anytime and offer comments (either positive
or negative), suggestions or solutions .

When the workers repeat the process and the scores are recorded, the Facilitator acts more exasperated
because red beads are still showing up. By now the Willing Workers have made comments to the effect
that no matter how hard they try they will still have Red Beads. The Facilitator at this point can consult
with the manager and staff to obtain suggestions of how to stop this Red Bead problem. Discussion can
center around making different rules, requiring employees to work over time, lay-offs, changing bead
suppliers and even painting the Red Beads white. This is a good time for creative conversation and
educational interaction. The idea is that the appearance of the Red Beads are the Willing Worker's faults
and not management’s o f t h e p l a y e r s a n d t h e s i t u a t i o n t h e y f i n d t h e m s e l v e s i n
to your specific needs

TIP: If the volunteers are having trouble getting into the spirit of
the game or their attention is waning, if appropriate, get the audience
more involved. Take their suggestions. The more outrageous, the
better. If the interaction gets out of hand or is taking too much time,
remember you, as the Facilitator, are the boss and can regain
control.

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 Dr. Deming Style RED BEAD Experiment

Part Two -- of the video

POST-GAME DISCUSSION

After you finish playing T h e B e a d - B o x G a m e it is highly recommended you gather the game's
participants and, if appropriate, the audience, for post-game analysis. You can have a list of questions to ask
the participants and audience. Record the feedback on a flip chart. This discussion is key to the success of
the exercise. By now your group has relaxed and has learned through a non-threatening setting how " R e d
B e a d s " can affect the workplace. The following questions/comments, some of which are on the video
tape, are written to give you a jump start with your own list of questions and suggested answers. In addition,
questions that you may receive from participants are also included:

I. Y o u w e r e a l l i n v o l v e d i n The Bead-Box Game.. w h a t a r e s o m e o f t h e t h i n g s y o u

s a w o r f e l t p l a y i n g t h e g a m e ? Focus this question of the Willing Workers. Responses,
of course will vary. Make sure you appropriately respond to their reactions. Willing Workers will
often respond by saying they felt powerless - the Red Beads were beyond their control. Let the
participants fully express how they feel. Your role at this point is that of a listener.
II.Another suggested response to the first question may include: Now that you've seen the game in
action, you understand the purpose of the game. T h e B e a d - B o x G a m e ultimately shows just
how absurd and ineffective many traditional management styles are, and how unproductive the
workplace is when the basic system is flawed. No matter how you try to ignore it, by painting those
Red Beads white or blaming problems on the employees, a faulty system is an unproductive one.
III.Notice the purpose of the game was not defined for you before we played. The fun is in discovering
the messages as the game progresses.
Why play this game and when should you play it?
IV.W
V.You can begin your answer by telling the group you introduced the game as a way to illustrate the
importance of Total Quality Management. Talk about how fun the game is and how it helps with
improving communication skills, team work and the ability to problems. You can say that from now
on we can use R e d B e a d as an umbrella term to refer to problems in the workplace.
D o e s t h e g a m e h a v e t o b e p l a y e d t h e s a m e w a y e v e r y t i m e ? No Because the
VI.D
game is never the same twice in a row. The Facilitator's role is to do anything possible to bring out
the issues -- create a mood where people are laughing one minute and s a y i n g " a h , h a , n o w I
u n d e r s t a n d " t h e n e x t m i n u t e . The Facilitator is an "actor" presenting different personas --
being the mean boss, presenting solutions to false problems, superficially being a motivator and
supporter of the workers. Know your audience and present the game on a level they can relate to.
VII. H o w m u c h t i m e s h o u l d y o u a l l o w f o r t h e g a m e ? It depends on the number of
players and how much time is allocated. Allow at least 20 minutes. If the participants are feeling
comfortable and having fun, the game can be played longer. People tend to get restless if you play
much past an hour.
C a n a n y t y p e o f c o m p a n y p l a y The Bead-Box Game?
VIII.C ? Yes, that's a big advantage of the
game. Any company large or small with a mixture of top executives, middle management, factory
workers, and or customer service departments, and entry-level employees will benefit by playing.
What happens after the game, the discussion and the TQM presentation?
IX.W
The Facilitator will determine the needs of the group and implement the plan. You may want to
ask yourself whether or not to have an all day retreat for the company. Decide if the morning
session will be the game with the TQM presentation to follow. In the afternoon the group could
participate in a break-out session and assign a facilitator for each group.

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 Dr. Deming Style RED BEAD Experiment
W h y s h o u l d e x e c u t i v e s a n d e m p l o y e e s b e m i x e d ? It is important that top
X.W
management supports the TQM program before you introduce it to the employees. Because TQM
contributes to changing the way employees think and work within the system, it is imperative
management understand TQM and support it throughout the training and after.
W h a t i f m a n a g e m e n t i s n o t c o m p l e t e l y s u p p o r t i v e o f t h i s ? Then it won't work.
XI.W
Dr. Deming found that when managers are skeptical they are not going to be responsive unless
they believe a peer, or a person of equal status is proposing and endorsing it. If this is the case,
consider hiring a TQM consultant to come in and work with management.
C a n w e u s e t h e g a m e a g a i n - - w i t h t h e s a m e p e o p l e ? Yes. Once your TQM
XII.C
program is in place you can introduce the game time and time again. Each time you play with the
same group you can create new situations that need resolution. Playing the game again also is great
reminder to the group that it's more positive to refer to a problem as a "red bead".
XIII. I s t h e r e a n o u t l i n e I s h o u l d f o l l o w w h e n p l a n n i n g m y T Q M p r e s e n t a t i o n
a f t e r t h e g a m e i s p l a y e d ? The following outline is recommended. To further assist you,
tips are included in this section, particularly in the listing of Dr. Deming's 14 principles. Experience
playing the game has shown that people initially have trouble with five of the 14 principles (principles
4,7,8,11 and 12) which requires additional explanation. The outline provides a brief explanation of
each principle and includes tips of what you can say for the five cited above:

I. Historical overview

A. Dr. Deming and TQM

B. Japan story
C. Today's business and world economy.

II. Opener

A. 9 4 % q u o t e . "Did you know that 94% of all problems

in the workplace are problems are not with the
workers, not with performance, but with the system?

B. Tie quote back into The Bead-Box Game. " E x p l a i n t h a t The

B e a d - B o x G a m e clearly shows that there are situations
that are truly beyond our control.

C. Dr. Deming Quote- (overhead or slide and handout).

"U.S. business schools teach you how to survive in the current

American Business environment. They teach managers how
to destroy workers, how to be inefficient, how to waste
resources, how to perpetuate the current system, how to get
paid to make things worse. It's terrible ... discouraging.
But most of all it's killing us." Chicago Tribune Magazine,
February 16, 1992

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 Dr. Deming Style RED BEAD Experiment
III. Analysis of The Bead- Box Game

A. Discuss the game.

B. Reiterate " R e d B e a d " as metaphor.
C. Explain results of playing the game.
D. Assess whether or not you have " R e d B e a d s " in your system.
E. Statistical Control Charts.
1. Chart with few marks outside control range.
2. Chart with erratic plotting "common causes"
3. Chart showing some but not many marks outside control range.

IV. Fourteen principles of TQM

1. Create constancy of purpose for improvement of product and service.

TIP: Constant improvements, whether they are achieved in small
or large increments in a product or system, will ultimately help
generate new business. Generating new business allows a
company to stay competitive in the marketplace for the long haul.

2. Adopt the new philosophy.

TIP: We're all in this together. No company can survive alone.
Management needs to provide a clear definition to their staff of
what the company's mission is and how everyone has and
important role to uphold the goals of the company.

3. Cease dependence on inspection to achieve quality.

TIP: Make the products right the first time - achieve quality
t h r o u g h o u t t h e e n t i r e p r o c e s s . D e p e n d i n g o n i n s p e c t i o n s d r iv e s
quality down and ultimately the price up. Management must
accept the responsibility to re- adjust the process to achieve
quality.

4. End the practice of awarding business on the basis of price tag alone. Instead,
minimize total cost by working with a single supplier.

TIP: Don't get stuck on the lowest competitive bidding system.

Instead look at total cost over time, including the cost of
mistakes and redoing things (rework, waste and changes in mind).
If you have a supplier you trust, chances are that supplier
understands exactly what your standards are and will follow them.

5. Improve constantly and forever every process for planning, production and
service.

TIP: TQM is on-going. It isn't a quick fix. You meet,

r e v i e w t h e d a t a , f i n d t h e Red Beads , p o s e s o l u t i o n s , t e s t t h e m
and meet again. TQM becomes reality when all employees
incorporate it into their regular work routines. The job is
never over and nothing is static.

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 Dr. Deming Style RED BEAD Experiment
6. Institute on-the-job training.
TIP: Management must recognize the worker's value and then
create an effective program explaining exactly what the job is,
why it is done and the worker's job responsibilities. An integral
part of the training should also include the importance of treating
co- workers as customers and looking at what each person can do
for one another. The only way training can truly succeed is if
top management understands the importance of effective training
and if he/she truly understands the function of each worker being
trained.

7. Adopt and institute leadership.

TIP: Most people think they already have leadership. But there's
a big difference between supervision and good leadership. Dr.
Deming defines a leader as someone who works constantly to
improve the system, recognizes everyone's skills and talents; and
creates interest, challenge and joy for every employee. An
effective leader takes ultimate responsibility but not ultimate
credit for the continual improvement of the company.

8. Drive out fear. F e a r i s a b u n d a n t i n c o m p a n i e s o f a l l s i z e s a n d

is usually driven by management.

TIP: Most people immediately understand this principle because

fear is the most common management motivation used today, and
the most damaging. It's the one thing that is liable to creep back
into any system, even TQM, because it's so familiar to managers
as a way to keep people in line. When fear is driven out of
organizations, workers feel more secure to suggest improvements,
thus increasing productivity. GET RID OF IT!

9. Break down barriers between staff areas.

TIP: Internal competition that is usually fostered by management

is not always positive and not for everyone. Most employees are
not effective at playing corporate politics. By implementing TQM
programs, barriers between staff areas can be eliminated.

10. Eliminate slogans, exhortation and targets for the work force.

TIP: Get rid of dependence on exhortations like "do it right the

fist time". Catchy slogans can be harmful to a system not
organized for TQM practices.

11. Eliminate numerical quotas for the work force and numerical goals for
management.

TIP: This is confusing to some people because TQM is based on

hard data and statistical measurement like Control limits. But
with TQM you use data and numbers to identify problems in
order to find a solution. TQM does not use numbers to control
people, regulate their performance or to set rigid rules and
arbitrary goals.

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A rr tt hh uu rr JJ oo hh nn ss oo nn
 Dr. Deming Style RED BEAD Experiment
12. Remove barriers that rob people of price of workmanship. Eliminate
the annual rating or merit system.

TIP: Workers shouldn't have to sweat a performance review that

usually has less to do with their work than with their personality
styles or the reviewer's biases. TQM's team approach means
groups work together to refine, improve and review. If a review
is necessary the team can review itself and its members or a
manager can meet the team for a joint review.

13. Institute a vigorous program of education and self-improvement for everyone.

TIP: Help people develop their minds! Provide educational

opportunities for employees that will elevate their levels of
thinking. When employees are learning their self- esteem
improves. All this leads to more productive lives both personally
and professionally.

14. Put everybody in the company to work to accomplish the transformation.

TIP: Everyone must work together to transform an organization.

Top management must be more committed than employees.
This takes effort, team work and open communication. Everyone
m u s t u n d e r s t a n d t h a t t h e i r r o l e i s v i t a l t o t he o r g a n i z a t i o n a n d
their input is important. By creating a culture that is
non- threatening and open, management components of TQM.

Flaws in the system -- are not the fault of the willing

workers
As we begin to look at the improvement of our work groups, organizations, companies, etc. to improve our
customer satisfaction, profitability, market share, etc.; we need to make some tough decisions as how to
manage and motivate our labor supply base. Sometimes we purchase labor (suppliers) and other times we
hire labor in the form of employees. N o t e - - i n t h i s d i s c u s s i o n , w h e n w e r e f e r t o
"supplier" we are referring to both direct employees or purchased labor through
a supplier.

There are labor laws that also come into play to assure that the direct employees are treated fairly. These
laws provide us with guidelines to the way we supervise our labor source.

It is our belief that there is no right or wrong answer as to how the decision to hire or outsource is made. It
is somewhat of a complex formula analysis based on the specific set of conditions in place at any given time.
However, it is our belief that there is an important difference in the way we manager our labor source.

As either an employee or a manager or business owner, we are sure that you have sometime in your work
life faced a job interview. Employers pride themselves in good advertising; good interviewing techniques; and
careful selection processes to find the best qualified candidate for the position.. Then once the employee is
hired, the boss outlines clear expectations and then over time coaches and mentors the employee to do a
good job at whatever they have been hired to do. Once and a while, the boss writes a summary performance
evaluation and includes a set of goal statements for the future. A g o o d p r o c e s s , Y e s ? , f o r t h e
most part!

SS tt uu dd yy G
G uu ii dd ee -- -- T
T rr aa dd ee m
m aa rr kk ss aa nn dd C
C oo pp yy rr ii gg hh tt (( C
C )) 11 99 99 44 -- -- 22 00 00 00 ,, M
M ii cc hh aa ee ll A
A rr tt hh uu rr JJ oo hh nn ss oo nn
 Dr. Deming Style RED BEAD Experiment
Now we ask! What should the process be for hiring a supplier to provide labor? We believe that the process
should be the same! However, we believe that i n r e a l l i f e i t i s n o t and in many cases the "good
process" outlined above is not really being followed.

This void in how we hire, fire, motivate, and get our suppliers (... people ...)
involved in our businesses is the purpose behind our product ..... a product
m a d e f r o m a f e w w o o d e n b e a d s . . . . . T H E B E A D - B O X G A M E tt mm .

We have outlined a simple process of how to hire and put labor to work. It will work, but as the situation
becomes large and complex the energy and discipline to keep it working increases rapidly and many times
the process begins to experience problems and sometimes stops working all together. T h i s r e s u l t s i n
poor morale, loss of productivity and the potential, if it continues, to a loss in
business and/or the job itself!

Our goal is to put in place, a process that does not experience this problem and even more is so successful
that our employees experience "joy in their work". Also, productivity, profits, market share, customer delight,
and long term business prosperity are assured!

THE BEAD-BOX GAME tt m

m
is a tool to be used by both management and labor as a
communications medium. It is insightful, thought provoking and breaks down defensive barriers that prevent
the setting of clear expectations and the communication (all levels and directions) of the expectations.

In addition, T H E B E A D - B O X G A M E tt mm clearly points out that the majority of the problems faced
in our lives ( R e d B e a d s ) are not the fault of a single person or work group. The problems are inherent in
the system environment that has been created by a larger force (management) that we all must work within.
If we are not satisfied with the results of the system, we must make fundamental changes to the system.

W E M U S T N O T B L A M E t h e w o r k e r s f o r t h e f a u l t s o f t h e s y s t e m . The W i l l i n g
W o r k e r s are the input/output devices to the system. Through them we can collect data, analyze the
situation, make changes to the system using knowledge and monitor our success over time using statistical
process control tools. However, we must not forget that we can not fix the problems in our systems with a
" q u i c k f i x " . It takes time and should be a continuous improvement effort.

----
THE BEAD-BOX GAME(tm) as used in Team Building
LEARNING EXPERIENCE STATEMENT:

T h e B e a d - B o x G a m e when and selected topics from the book Dr. Deming, The American
Who Taught the Japanese About Quality, written by Rafael Aguayo, may be used as a team exercise.
The focus of a teams effort should be toward solving problems that are caused by the system
(common causes) rather than to waste time solving unique problems resulting from variation that is

SS tt uu dd yy G
G uu ii dd ee -- -- T
T rr aa dd ee m
m aa rr kk ss aa nn dd C
C oo pp yy rr ii gg hh tt (( C
C )) 11 99 99 44 -- -- 22 00 00 00 ,, M
M ii cc hh aa ee ll A
A rr tt hh uu rr JJ oo hh nn ss oo nn
 Dr. Deming Style RED BEAD Experiment
caused by chance. Another point is that without management's full commitment, the results of the
teams efforts will be short lived.

The building of a team is a result of the successful efforts of a group of people working closely
together to improve a system. Team building IS NOT just the techniques of interpersonal
communications. That is a requirement.

Team building is an element of Quality improvement....Pride of Workmanship or Joy in Work.

When a system is operating in the state of statistical control, such as T H E B E A D - B O X

G A M E (tm) with all defective points (R
R E D B E A D S ) falling within statistical limits, there can be no
further improvement by looking for individual causes of defects. Only by working on the whole
system can we achieve improvement.

The team's role is to first point out the types of problems using data collection techniques and
secondly; assisting management in the solution to the problems rather than temporary fixes that will
not last. Management also has a role to provide the proper environment to allow the team to operate
within.

REFERENCE STATEMENTS:

Dr. Deming, The American Who Taught the Japanese About Quality, written by Rafael Aguayo,
Carol Publishing Group, 1990. ISBN 0-8184-0519-8.

"Dr. Deming's theory makes some startling predictions about good management that contradict
notions many of us have." Introduction, Page xii.

"In Deming's philosophy, real profits are generated by loyal customers - not just satisfied customers."
Page 8.

" From a Deming perspective most managers' view of profit is backward. To Deming, a company
continually improving the quality of its goods or services improves its productivity and produces loyal
customers." Page 9.

"The management lessons of Deming are in direct opposition to what is currently taught in most
business schools and writers". Page 11.

"What happens when everyone is already giving 110 percent? Management working under an MBO
system looks at the goals for the next year and then lowers the costs a little more and increases the
goals a little more. But it is not physically possible for humans or machines operating in the same
system to produce more with less." Page 12.

"Improvement in the system is necessary to improve the output. As Deming says, "Let's not talk
about working harder. Everyone is already working their hardest. Work Smarter."" Page 31.

See Ford Transmission example, Page 40.

Another Ingredient of Quality: Pride of Workmanship or Joy in Work "Profitability was higher by
every measure, including profitability per employee, when the repair person did the job to his
satisfaction." Page 44.

Refer to RED BEAD EXPERIMENT, starting on Page 53 with conclusions

on Page 58.

SS tt uu dd yy G
G uu ii dd ee -- -- T
T rr aa dd ee m
m aa rr kk ss aa nn dd C
C oo pp yy rr ii gg hh tt (( C
C )) 11 99 99 44 -- -- 22 00 00 00 ,, M
M ii cc hh aa ee ll A
A rr tt hh uu rr JJ oo hh nn ss oo nn
 Dr. Deming Style RED BEAD Experiment
HO W T O G E T S T A R T E D?

Play P A R T O n e of the tape, play the game with your workgroup and brainstorm the problem
issues ( R e d B e a d s ) that exist that are present in your situation. Prioritize the issues and plan a
course of corrective action.

Next, watch P A R T T w o of the tape and look at some of the obligations and techniques that
must be followed. Review the fourteen points in detail with your workgroup.

Next, review the list of organizations and written works listed at the end of the tape. Here is where
you may get additional information, ideas or resources to assist in your effort.

Helpful Hints

The following are a few best helpful hints on how to " g e t s t a r t e d " with the game and answers to
the most often asked questions.

It is normal to have a few like-colored beads stick together when you first start to play. As you find
them, simply break them apart. They should not re-stick together in the future. It is also possible to
find one or two odd shaped beads or ones that have not been painted completely. We should always
be working with our suppliers to improve their process.
The proper technique to close the box is to place one finger of each hand at the extreme right and
left front corners of the box and press down. The box should close with a "snap". Next close the
locking tab and use the lock if you wish. A large paper clip works also.
To start playing, mix the beads either with the paddle or by shaking the box with the lid closed. This
should be done about every fifth draw and you may say that the housekeeping department is just
cleaning the building. Welcome everyone to your new bead business.
Select your staff of "willing workers" and record their names on the score sheet included with the
handout materials. Also select a customer from the audience and advise them to yell " R E J E C T !
I o n l y w a n t e d w h i t e b e a d s " you deliver the first paddle of beads to them (later).
Instruct the first "willing worker" to insert the paddle from either end of the box pointing downward at
approximately a 30 degree angle. The end of the paddle should hit the bottom of the box before the
half way point. Quickly lay the paddle flat against the bottom of the box and proceed to push the
paddle to the opposite end of the box along the bottom. Pull the paddle back to the mid point and lift
the paddle straight up without shaking. Tip the paddle with your wrist away from you just like eating
soup with a spoon. The excess beads should roll off. If you have empty holes, that is called
"REWORK" and the player will have to "double dip". If beads fall out of the box that is "SCRAP" and
the controller or "BEAD-COUNTER" should record it as such.

Next as the plant owner, deliver the first paddle of beads to your customer in the audience (selected
above). When the customer rejects the shipment say "but your purchase order only said you wanted
fifty beads". Now, make the point that it is important to have an operational definition between a
customer and a supplier as to exactly what is desired; a fifty percent wool sweater - the right or the
left half?

Continue playing the game with one of the scripts included. Over time, you may make variations as
you become more comfortable. P l a y t h e g a m e w i t h b i g a n d s m a l l g r o u p s o r w i t h
one or two people at a time.

SS tt uu dd yy G
G uu ii dd ee -- -- T
T rr aa dd ee m
m aa rr kk ss aa nn dd C
C oo pp yy rr ii gg hh tt (( C
C )) 11 99 99 44 -- -- 22 00 00 00 ,, M
M ii cc hh aa ee ll A
A rr tt hh uu rr JJ oo hh nn ss oo nn
 Dr. Deming Style RED BEAD Experiment
We encourage you not to play the game once or twice and put it away in a
c a b i n e t . It is a useful tool to be used several times a day. As you perform your discussions with
your staff or visitors, use the game to make one of the game points. Keep the script available to
refresh yourself. Place the game on the corner of your desk and use it as a conversation piece or "ice
breaker".

The game may be played with people of all education levels. We find that the game is just as useful
with top management as well as entry level personnel. It is especially helpful when working with a
group with a language difference gap.

Use the game at large meetings as a conversation topic or play the game as a part of the meeting
agenda. The more you use it the more you will learn and retain the points.

If you are going to play the game with a very large group 100 or more, please send us a FAX and we
will send you a script for use with groups in excess of 100 people.

Included in the handout material is a "score sheet." This may be copied as a clear overhead or
photocopy enlarged as a flip chart record. The Control Chart sheet may also be copied and used to
collect/record data. Feel free to photocopy the script and hand it out; however, please credit the
authors for Trademark and Copyright purposes. Resale of the materials is not allowed without prior
written authorization.

Should you or a colleague desire assistance using the game or "getting started" with a new program or
"putting new life" into an old program, we are available to provide consulting assistance, "train the
trainer" sessions or to speak to a large group. Please contact us for a price quotation.

Finally, you are ready to get started! But please remember:

I. We are all customers and suppliers of each other and we need to communicate our expectations
clearly between one another.
II. It is a never ending process of improvement ..... not just one fix it meeting!
III. Get started today! Do it now and don't look back.

G o o d l u c k a n d e n j o y t h e m a n y b e n e f i t s o f T H E B E A D - B O X G A M E ttmm !

SS tt uu dd yy G
G uu ii dd ee -- -- T
T rr aa dd ee m
m aa rr kk ss aa nn dd C
C oo pp yy rr ii gg hh tt (( C
C )) 11 99 99 44 -- -- 22 00 00 00 ,, M
M ii cc hh aa ee ll A
A rr tt hh uu rr JJ oo hh nn ss oo nn
 Dr. Deming Style RED BEAD Experiment

SAMPLE SLIDE S T A T E M E N T S

o A process" may be defined by grouping in sequence all the tasks directed at accomplishing one
particular outcome.
o A system" is where a group of related processes are involved to accomplish an end result.
o It is important to have a "goal" or desired result specified for the outcome of a system. That
goal should stem from a basic understanding of statistics. The meaningful specifications may
be referred to as "Operational Definitions".
o No one wishes to turn out faulty items or mistakes and we should try to reduce variation of a
stable system. Therefore, it is important to understand and control the variation of each
process in a system.
o The first priority in system improvement should be in reduction of the variation over time
(narrower range control limits).
o A "STABLE PROCESS" is one with no indication of a special cause of variation and is called
within statistical control.
o A process that is in statistical control is random and its behavior in the near future is
predictable.
o A "willing worker" has no control over a process or system that is in statistical control.
Improvement of a stable system requires fundamental change in the system.
o Fundamental change in the system may be complex or even costly. If the system is not worth
the cost of improvement one may wish to redirect their efforts to a system more in need of
attention.
o A system may be stable, yet turn out faulty items and mistakes. To take action to the system in
response to the faulty items or mistakes is to tamper with the system.
o The result of tampering is only to increase in the future the production of faulty items and
mistakes, and to increase costs - exactly the opposite of what we wish to accomplish.
o A special cause may turn out to be one that cannot possibly recur...a situation where the
vendor may have already taken steps to ensure non-recurrence.
o Or, a special cause may be one that will recur. If the recurrence is periodic, clues to the source
of the problem may be clear. Periodic recurrence may require more detailed study.
o Our strategy is to first stabilize all processes at their "natural precision" and then to use "problem
solvers" or "willing workers" to identify the complexities of each process step in order to
engineer ways to simplify the process.
o Everyone has a role in process/system control. Process control IS NOT achieved by
management desire, it must be by management commitment. Management must understand
and take responsibility for solving the majority of the common causes (problems).
o However, the workers have a role as well. But first, management must establish the proper
RED BEADS".
environment to make it all right for the "willing workers" to identify the "R
However, the environment should reward the true "problem solvers" or "willing workers" rather
than "FIRE FIGHTERS".
o R E D B E A D S " white and return then to the system. Over time
It is not "OK" to paint the "R
the white paint will come off and the problems will resurface as rework and extra costs.
o Once you understand processes and systems, you will be in a position to understand what
QUALITY means in the modern business world. It is important to understand that vendors
and customers are also part of your system and that customers who receive the outcome of
your work are in the best position to determine what quality is.

SS tt uu dd yy G
G uu ii dd ee -- -- T
T rr aa dd ee m
m aa rr kk ss aa nn dd C
C oo pp yy rr ii gg hh tt (( C
C )) 11 99 99 44 -- -- 22 00 00 00 ,, M
M ii cc hh aa ee ll A
A rr tt hh uu rr JJ oo hh nn ss oo nn
 Dr. Deming Style RED BEAD Experiment
o Please remember:
§ That only customers can tell you what they want and how they want it (operational
definition).
§ We are all vendors and customers to each other in this world business system of today.

o Tampering - To take action to the system in response to the faulty items The result of
tampering is only to increase in the future the costs.
o A special cause may turn out to be one that cannot possibly recur
o Once you understand processes and systems, you will be in a position to understand what
QUALITY means in the modern business world. It is important to understand that vendors
and customers are also part of your system and that customers who receive the outcome of
your work are in the best position to determine what quality is.

SS tt uu dd yy G
G uu ii dd ee -- -- T
T rr aa dd ee m
m aa rr kk ss aa nn dd C
C oo pp yy rr ii gg hh tt (( C
C )) 11 99 99 44 -- -- 22 00 00 00 ,, M
M ii cc hh aa ee ll A
A rr tt hh uu rr JJ oo hh nn ss oo nn
 Dr. Deming Style RED BEAD Experiment

REVIEW QUESTIONS
1 . W h a t i s T Q M ? W h o i n t r o d u c e d t h e c o n c e p t s o f T Q M ? - Page 6

2 . W h y i s T Q M n o t a t r e n d ? - Page 6

3 . W h a t c o u n t r y b e n e f i t e d mo s t b y t h e c o n c e p t s t o T Q M ? - P a g e 6

4. Playing the Bead- Box Game and using the video you will learn (circle
all that apply)

a. to create effective teams while building an understanding

about the importance of leadership versus supervision. -
Page 3, 11
b. the importance of keeping fear alive in the corporate
culture. - Page 12
c. to stop blaming individuals for a problems or "red bead"
and instead focus on solutions. - Page 3, 8
d. to help create synergistic ways of thinking . - Page 3, 4, 6
e. to put pride and joy in workmanship back into the
workplace.-Page 3, 6, 7, 8

5. The game cannot be tailored to a particular situation created at the

time of play or an actual situation in the workplace. ( ) true ( )
false - Page 3

6. How many beads does the Bead- Box Game include? - Page 6

7 . H o w m a n y p l a y e r s s h o u l d b e c h o s e n ? - Page 6

8. Can you set your "own" rules while playing the game? - Page 7

9. The red bead can be used as a metaphor to show?

_____________________ - Page 8, 9

10 Does playing the Bead- Box Game contribute to fear in the

o r g a n i z a t i o n ? - Page 7, 11

11 The Facilitator's role while playing the Bead- Box Game is to sit by
and just observe play.
( ) t r u e ( ) f a l s e ( i f f a l s e , e x p l a i n h i s / h e r r o l e ) - Page 8

12. What are the roles of the Willing Workers, Chief Inspector,
Controller and Office Manager? - Page 10

13. What is the purpose of having a post- game discussion? - Page 8

1 4 . W h a t i s t h e 9 4 % q u o t e ? - Page 9

15. What is Principle #8 of Deming's 14 principles of TQM? - Page 11

16. Internal competition fosters good employee morale, overall. ( )

true ( ) false - Page 11

17. What is the difference between leadership and supervision?

SS tt uu dd yy G
G uu ii dd ee -- -- T
T rr aa dd ee m
m aa rr kk ss aa nn dd C
C oo pp yy rr ii gg hh tt (( C
C )) 11 99 99 44 -- -- 22 00 00 00 ,, M
M ii cc hh aa ee ll A
A rr tt hh uu rr JJ oo hh nn ss oo nn
 Dr. Deming Style RED BEAD Experiment

18. According to Deming's principle #3, why should the inspection

process cease in an organization? Page 10

19. Why should one work with a single supplier? - Page 10

20. What does an organization have to do to accomplish

transformation? - Page 12

scripts

Script for aud iences to 150 people

A BEAD GAME WITH A MESSAGE

M/J OPENING REMARKS

Welcome to the Bead Manufacturing Company.....This is my factory and I AM

THE BOSS..........

R/C PUT UP SLIDE OF "EAST COAST" PRODUCTION

This is my new "WEST COAST" factory and we are opening it here in

the high technology area because Willing Workers are better trained and
they can do a better job of producing Quality than the "EAST COAST"
factory....they better do a better job !! Let me introduce my staff of
Willing Experts
A/M = Hiring Manager

R/C = Controller (Bead Counter)

J/D = Chief Inspector/Quality Manager
C/R = Customer Representative
M/J = Company Owner The boss

A/M HIRE TWO WILLING WORKERS FROM AUDIENCE

R/C PUT UP SLIDE TO RECORD RESULTS

M/J INSTRUCT WORKERS ON PROCEDURE

J/D TEACH WILLING WORKERS ON PROPER METHODS OF

DRAWING

A/M EACH WW MAKE TWO DRAWS

SHIP TO CUSTOMER CUSTOMER REJECTS

R/C PUT UP SLIDE OF PROCESS FLOW

SS tt uu dd yy G
G uu ii dd ee -- -- T
T rr aa dd ee m
m aa rr kk ss aa nn dd C
C oo pp yy rr ii gg hh tt (( C
C )) 11 99 99 44 -- -- 22 00 00 00 ,, M
M ii cc hh aa ee ll A
A rr tt hh uu rr JJ oo hh nn ss oo nn
 Dr. Deming Style RED BEAD Experiment
M/J EDITORIAL COMMENTS

A "process" may be defined by grouping in sequence all the tasks directed at

accomplishing one particular outcome.

A "system" is where a group of related processes are involved to accomplish an

end result.

It is important to have a "goal" or desired result specified for the outcome of a

system. That goal should stem from a basic understanding of statistics. The
meaningful specifications may be referred to as "Operational Definitions".

M/J SAYS TO AUDIENCE....WHAT SHALL WE DO..

J/D SAYS HIRE AN INSPECTOR

A/M HIRE AN INSPECTOR

J/D INSTRUCT ON PROPER METHODS OF DRAWING

A/M EACH WW MAKES TWO MORE DRAW

P/I PLANT INSPECTOR INSPECTS EACH DRAW AND

REJECTS

J/D CHIEF INSPECTOR REMINDS INSPECTOR OF PROPER

TECHNIQUES

M/J AFTER 4TH DRAW, OWNER REMINDS EACH WORKER

OF IMPORTANCE OF CUSTOMER AND ZERO DEFECTS

R/C PUT UP PROCESS SLIDE

No one wishes to turn out faulty items or mistakes and we should try to reduce
variation of a stable system. Therefore, it is important to understand and control
the variation of each process in a system.

The first priority in system improvement should be in reduction of the variation

over time (narrower range control limits).

A "STABLE PROCESS" is one with no indication of a special cause of variation

and is called within statistical control.

R/C PUT UP SLIDE OF "EAST COAST" SHIPMENT HISTORY

M/J REMINDS WW OF RESULTS FROM EAST COAST PLANT

AND I KNOW THAT YOU CAN DO BETTER....YOU MUST
DO BETTER

A/M WW MAKES ABOUT 2 DRAWS ( ONE DRAW EACH WW)

SS tt uu dd yy G
G uu ii dd ee -- -- T
T rr aa dd ee m
m aa rr kk ss aa nn dd C
C oo pp yy rr ii gg hh tt (( C
C )) 11 99 99 44 -- -- 22 00 00 00 ,, M
M ii cc hh aa ee ll A
A rr tt hh uu rr JJ oo hh nn ss oo nn
 Dr. Deming Style RED BEAD Experiment
R/C FIRES WW

A/M HIRES TWO MORE WW

J/D TRAINS WW

A/M MAKES ABOUT 15 MORE DRAWS

R/C RECORDS RESULTS (M/J CALCULATES SCORE WITH

HELP OF AUDIENCE)

M/J INTERVIEWS WW .... is it possible that.....

A "willing worker" has no control over a process or system that is in statistical

control.

M/J EDITORIAL COMMENTS (referring to slide)

Improvement of a stable system requires fundamental change in the system.

J/D MAKES CHANGES

A/M MAKE TWO DRAWS

M/J EDITORIAL COMMENTS

A system may be stable, yet turn out faulty items and mistakes. To take action to
the system in response to the faulty items or mistakes is to tamper with the system.

The result of tampering is only to increase in the future the production of faulty
items and mistakes, and to increase costs - exactly the opposite of what we wish to
accomplish.

A special cause may turn out to be one that cannot possibly recur...a situation
where the vendor may have already taken steps to ensure non-recurrence.

Or, a special cause may be one that will recur. If the recurrence is periodic, clues
to the source of the problem may be clear. Periodic recurrence may require more
detailed study.

Our strategy is to first stabilize all processes at their "natural precision" and then to
use "problem solvers" or "willing workers" to identify the complexities of each
process step in order to engineer ways to simplify the process. Everyone has a role
in process/system control. Process control IS NOT achieved by management
desire, it must be by management commitment. Management must understand and
take responsibility for solving the majority of the common causes (problems).

SS tt uu dd yy G
G uu ii dd ee -- -- T
T rr aa dd ee m
m aa rr kk ss aa nn dd C
C oo pp yy rr ii gg hh tt (( C
C )) 11 99 99 44 -- -- 22 00 00 00 ,, M
M ii cc hh aa ee ll A
A rr tt hh uu rr JJ oo hh nn ss oo nn
 Dr. Deming Style RED BEAD Experiment
However, the workers have a role as well. But first, management must establish
the proper environment to make it all right for the "willing workers" to identify the
R E D B E A D S ". However, the environment should reward the true "problem
"R
solvers" or "willing workers" rather than "FIRE FIGHTERS".

R E D B E A D S " white and return then to the system.

It is not "OK" to paint the "R
Over time the white paint will come off and the problems will resurface as rework
and extra costs.

M/J CLOSING REMARKS

Once you understand processes and systems, you will be in a position to

understand what QUALITY means in the modern business world. It is important
to understand that vendors and customers are also part of your system and that
customers who receive the outcome of your work are in the position to determine
what quality is.

Please remember:

+ That only customers can tell you what they want and how they want it
(operational definition).

+ We are all vendors and customers to each other in this world business system of
today.

+ We enjoyed this opportunity to share our game

THE BEAD-BOX GAME tt m

m
.....A BEAD GAME WITH A MESSAGE

SS tt uu dd yy G
G uu ii dd ee -- -- T
T rr aa dd ee m
m aa rr kk ss aa nn dd C
C oo pp yy rr ii gg hh tt (( C
C )) 11 99 99 44 -- -- 22 00 00 00 ,, M
M ii cc hh aa ee ll A
A rr tt hh uu rr JJ oo hh nn ss oo nn
 -- Score Sheet --
The BEAD - BOX Game

Note: Production Lot Size 50 Beads per Operator per Day

Game Player Day of the Draw Summary

Employee Name 1 2 3 4 5 Total Ave Range

Total all players

Average

Inspector (1) _____________ Recorder: _______________

Inspector (2) _____________ Supervisor: ______________
Chief Inspector: ___________ Production Mgr: __________
Customer: ________________ Plant Mgr: _______________
Copyright © 2000 - Michael Arthur Johnson
Received: 15.Dec.00 02:15 AM From: 305-768-6186Mike To: 8008784260 Page: 1 of 1
- - The End - -

BBSTUDYGUIDE -- Price US $35.00

Revision: 2000-
2000-200

Email: redbead@aol.com - - http://www.redbead.com