Deming — Transcript
Full transcript
- 0:02hello we're back so now we're going to
- 0:04learn some more about Deming he's a
- 0:06crazy guy he had all sorts of really
- 0:09neat things that he did and changed a
- 0:12lot of management styles as we've
- 0:13already seen I mean it's it's pretty
- 0:16interesting um Demming was a
- 0:19statistician he did
- 0:23statistics and Demming is actually one
- 0:25of the reasons the United States won
- 0:27World War II
- 0:30yeah he actually won got got the medals
- 0:32and stuff for helping us win World War
- 0:35II and he did it through
- 0:37statistics so at the beginning of World
- 0:40War II it took about 10 hours of
- 0:42Maintenance to fly an airplane for one
- 0:44hour so 10 man hours for every hour of
- 0:48flight and when a part would break down
- 0:51they would just replace the part well
- 0:52Deming says that's not a good idea let's
- 0:55keep track of what parts break and then
- 0:59read designed those parts instead of
- 1:01keeping keeping bad stuff go through to
- 1:04redesign the parts and he they did at
- 1:08the end of World War II it took two
- 1:10hours of labor for one hour of flight in
- 1:13Germany and Japan it still took 10 is
- 1:17this an advantage during war yeah it's a
- 1:20great Advantage so when they would build
- 1:22F he would look at factories and look at
- 1:23the capacities of factories so let's say
- 1:26they have an airplane Factory that
- 1:27builds one airplane a day
- 1:30if they needed three airplanes a day
- 1:32they would just build two more factories
- 1:34Demi says no no no no no that's a bad
- 1:36idea let's break up the assembly line
- 1:39and look at the capacity of each section
- 1:42of the assembly line and then the what
- 1:45the the sections of the assembly line
- 1:48that are slower let's just double those
- 1:50up or triple those up so if let's say
- 1:54one section can make three planes a day
- 1:56another section can only make one three
- 1:59and two
- 2:00he just says well let's look at that
- 2:02choke point let's look at that one spot
- 2:03that only make one and let's add two
- 2:06extra sections on there think about how
- 2:09big of an advantage this is during a war
- 2:12and at the end of the
- 2:13war they said Mr Demi your ideas are
- 2:16great but we're not at War any longer so
- 2:19we don't need you he goes no no
- 2:21employees don't make mistakes all
- 2:23mistakes are caused by poor management
- 2:24poor job design they no no no no no
- 2:26that's only during a war we're not at a
- 2:28war go away and so he went away and he
- 2:32went to
- 2:33Japan now the stuff coming out of Japan
- 2:36in the 50s was
- 2:39junk trash right here's our junk trash
- 2:43cheap Japanese trash right but also the
- 2:48word junk is kind of interesting the
- 2:52word junk what does the word junk junk
- 2:54means trash but it also is the the word
- 2:57to describe these beautiful boats that
- 3:00they had in Japan was beautiful Japanese
- 3:03junk boats not trash boats junk boats
- 3:06but that was the name in other words the
- 3:09stuff coming out of out of Japan was so
- 3:12low
- 3:14quality that they're saying that that
- 3:16that the Japanese stuff is trash it's
- 3:20kind of like if they said hey um it's a
- 3:22bald eagle and it's garbage not go so
- 3:27what's that oh that's a bald eagle it's
- 3:29a car
- 3:30wow that's a pretty big insult isn't it
- 3:33so that's where the word junk came from
- 3:35Wow W now let's be fair though Japan
- 3:39what did Japan look like after World War
- 3:41II yeah it wasn't a happy place to be
- 3:45right but the stuff coming out of Japan
- 3:46was junk the
- 3:491960s cheap Japanese junk trash you did
- 3:54not want Japanese
- 3:55products
- 3:581970s started getting better started
- 4:01getting a lot better right now it's it's
- 4:03as good as anybody else is right then
- 4:06the
- 4:0680s pow right the stuff coming out of
- 4:10Japan was world class nobody could touch
- 4:13the quality of stuff coming out of Japan
- 4:16they were so far above and beyond what
- 4:19everybody else was uh it just was world
- 4:21class and then so the company said hey
- 4:23Mr
- 4:25Deming come on back Japanese are killing
- 4:28us come on back and show us how to fix
- 4:31our stuff so he says
- 4:35okay right so he went to a company
- 4:38called Delta Delta remember our buddies
- 4:42Delta yeah yeah and so Delta exact said
- 4:45okay Mr Deming tell us about how this
- 4:48works and he says it's real simple
- 4:50employees don't make mistakes all
- 4:51mistakes are caused by poor management
- 4:53poor job
- 4:54design yeah about that let's skip that
- 4:58what's the rest right and they said
- 4:59that's it that the whole
- 5:04key yeah but we've got some pretty bad
- 5:07employees Demi says that's your fault
- 5:09that they're bad employees
- 5:13oh uh we'll try it and they tried it for
- 5:16about three years and it didn't work and
- 5:19and management at Delta said
- 5:22look Deming your stuff works during a
- 5:25war we know that it works in Japan
- 5:28Japanese people are different than
- 5:29Americans
- 5:30uh but it's not going to work
- 5:32here really let's look at something
- 5:36let's see why did it not work with Delta
- 5:38first of they didn't want to admit it it
- 5:40takes a lot of guts to say hey it's my
- 5:42fault doesn't
- 5:43it it takes a whole lot of guts to say
- 5:47hey this is my fault right Delta
- 5:49management did not want to accept
- 5:50responsibility also Delta tried it for
- 5:53about three years how long did it take
- 5:56the Japanese to per perfect it
- 6:00about 30
- 6:01years isn't that a little arrogant to
- 6:04say oh we can do in three years what the
- 6:07Japanese can do in 30 years and then
- 6:09when it doesn't work it's like well was
- 6:10a bad
- 6:12idea wow that's why remember that list
- 6:16of all the airplanes falling out of the
- 6:18sky look in the 80s not good not good
- 6:22good good now there was another company
- 6:24called Harley-Davidson remember we
- 6:26talked about Harley-Davidson in the mid
- 6:2880s Harley-Davidson motorcycles
- 6:32were junk they were trash you go to a
- 6:36Harley-Davidson dealership and there
- 6:38would be cardboard underneath brand new
- 6:41motorcycles to catch the oil as that
- 6:43drip from the
- 6:46motorcycle wow W so Harley-Davidson was
- 6:49getting beat up by Honda Honda was going
- 6:51to take them was Honda had it Hondas
- 6:54were better faster cheaper safer
- 6:58better so Harley-Davidson said hey Mr
- 7:00Deming we're going to go away we can't
- 7:03compete with Hana can you help us and
- 7:06then Deming went to harleydavidson
- 7:08looked around and said it's real
- 7:11easy employees don't make mistakes all
- 7:14mistakes are caused by poor management
- 7:15or job
- 7:17design so the reason those motorcycles
- 7:19are Shunk is because of you management
- 7:24management
- 7:25says okay we'll bite because we're going
- 7:28to go away we have no no choice y okay
- 7:31it's our fault what do we do he says
- 7:33it's real easy go talk to your
- 7:35employees and tell them the truth say
- 7:39you're getting ready to go away you talk
- 7:42to this Deming guy and he said that
- 7:44management is at fault for it first off
- 7:48they know it's Management's fault right
- 7:51then you ask them for help and you say
- 7:54to them look Deming says it's our fault
- 7:57we agree we think it is our fault right
- 8:01but we can't fix it because Deming says
- 8:03that employees don't make
- 8:05mistakes we can't fix it because if we
- 8:07try to fix it we'll make a mistake it's
- 8:09another one of our ideas so what Deming
- 8:11says we should do is ask you for help
- 8:14and if you can help us improve this
- 8:18Factory you'll keep your job right but
- 8:20if you don't if if we're g to keep
- 8:22fighting each other like this it's
- 8:24nobody's going to win and we're going to
- 8:25all be
- 8:26unemployed and so the employees said
- 8:29okay yeah you don't really care what we
- 8:31have to say and Manu says yes we do in
- 8:35fact come up with some ideas on how to
- 8:37improve the motorcycle and we will do
- 8:39them well the employees were skeptical
- 8:42and they go you won't listen try us so
- 8:45they came up with an idea the employees
- 8:47came up with an idea went to management
- 8:49says here's our idea and management says
- 8:53let's do it and employes are going what
- 8:57yeah sounds good let's let's Implement
- 9:00that let's see if that that works you
- 9:02mean you're going to listen to our ideas
- 9:04yeah yeah yeah yeah yeah and then so
- 9:06they came up with more ideas and more
- 9:08ideas and more ideas see before
- 9:10everybody had a tiny brain didn't they
- 9:12they had a mad brain they didn't get
- 9:14along management and and employees just
- 9:16buted heads and fought and had strikes
- 9:18and Union problems they had just it was
- 9:20a mess right then all of a sudden
- 9:23management says Hey give us your ideas
- 9:26and they're like they employees have the
- 9:27tiny little brain and then they go can
- 9:29actually listen to our ideas yeah yeah
- 9:32we'll do it and all of a sudden their
- 9:33brains got bigger and they got more
- 9:35creative and it just kept going and
- 9:37going and going here's a
- 9:40question whose ideas do you like more
- 9:43your own or somebody
- 9:47else's I like my own ideas right I I so
- 9:50if somebody tells you you need you like
- 9:52this food you know don't tell me I like
- 9:55you like durian no I don't like durian
- 9:59you love green peppers Andy no I can't
- 10:02stand green peppers right so somebody
- 10:05tells me that I no I don't but I like my
- 10:09own ideas so here's a question if
- 10:12management comes up with an idea and
- 10:13they shove it down your throat you're
- 10:14gonna go let's see if this works but
- 10:16it's not gonna but what if you come up
- 10:19with the idea and management says let's
- 10:20do it and it doesn't work quite so well
- 10:24are you going to work extra hard so you
- 10:25don't lose face are you going to make
- 10:28darn shirt that that thing works so now
- 10:30it's their own ideas and they're driving
- 10:33home and instead of driving home going I
- 10:35hate Harley-Davidson I hate Harley
- 10:37Davidson instead they're driving home
- 10:40saying I wonder how we can fix those
- 10:42motorcycles wonder how we can make stuff
- 10:44better because they're giving us a
- 10:47chance let's run with this it it changed
- 10:49the whole mood of the whole Company the
- 10:51company just changed like overnight now
- 10:54does Harley-Davidson make good
- 10:56motorcycles they make real good
- 10:59motorcycles don't they in fact they they
- 11:03were so successful in turning around
- 11:05Harley-Davidson management actually
- 11:07travels around the world providing
- 11:11Deming Management
- 11:14training because deming's dead of course
- 11:17this was a long time ago he's way too
- 11:18old he's he's dead so now
- 11:20Harley-Davidson actually provides
- 11:22Management training on deming's
- 11:23principles so
- 11:26Harley-Davidson about as American
- 11:28company as you can get
- 11:30is teaching Japanese management
- 11:33principles around the
- 11:35world which were really deming's
- 11:38American practices so it's like a
- 11:40mixture of all this stuff yeah and it
- 11:43worked yeah Deming Deming was a really
- 11:47interesting fellow so if you look at the
- 11:51way a typical company is structured
- 12:05if you look at how a typical company in
- 12:08the United States is
- 12:10structured they're structured like
- 12:14this right you have multiple levels of
- 12:19management so it's shaped like a pyramid
- 12:23isn't it so the person the CEO the head
- 12:25of the company is at the top
- 12:29and he likes to be up at the top because
- 12:31the boss gets paid better than anybody
- 12:34else a lot better he gets treated a lot
- 12:37better and the idea is he's really
- 12:40really smart so we want the smartest
- 12:43person at the top of the company and all
- 12:46the ideas go
- 12:48downhill so he comes up with ideas he's
- 12:51got all the good ideas all the go down
- 12:54here so these guys are not as smart as
- 12:56he
- 12:57is these guys aren't as smart as he is
- 13:00these guys aren't as smart as he is
- 13:02guess who's the dumbest person on this
- 13:06chart not entrylevel employees it's the
- 13:11customer yeah yeah Chevrolet Chevrolet
- 13:15did some research from management and
- 13:18management decided that you know what
- 13:20people really want on
- 13:22cars are cup
- 13:24holders they do people want cup holders
- 13:29I had a Chevy uh Chevrolet Avalanche it
- 13:32had eight cup
- 13:34holders do you need eight cup holders do
- 13:38you when you go car shopping you say
- 13:40give me lots of cup holders because I
- 13:42love cup
- 13:44holders no you don't
- 13:48right Toyota they they asked the
- 13:52customers what they wanted they said we
- 13:53want a car that
- 13:55works oh okay so my idea here is the
- 13:59customer's dumb customer doesn't know
- 14:01what they want you can you fact I know
- 14:04there's a steakhouse in Seattle that if
- 14:06you go and order a steak well done they
- 14:09won't serve you a well done steak so you
- 14:13say I like my steak well done they go no
- 14:15we don't do that why not because it's a
- 14:18bad steak and we won't sell you a bad
- 14:20steak but I want my steak cooked well
- 14:24done no we don't do it we won't we will
- 14:27not overcook and ruin that
- 14:30steak wait don't you know what you want
- 14:34if you want a well done steak I think
- 14:36you should get a well done Stak but no
- 14:38they they know better than you okay so
- 14:41in a typical company like this customer
- 14:44has problems they go to the first level
- 14:46of
- 14:47employee now the first level employees
- 14:49they're not paid very well they're
- 14:51stupid they're not stupid but they're
- 14:53treated stupid nobody listens to them
- 14:55they have no Authority they can't do
- 14:57anything even if they know it's the
- 14:58right answer they can't they they can do
- 15:00very little so then if you have trouble
- 15:03with the first level employee you say I
- 15:06speak to your boss please they speak to
- 15:08the manager now the manager is by
- 15:10definition better looking they're by
- 15:12definition smarter they're better paid
- 15:14they're none of they better paid that
- 15:16that's about it in real life but they
- 15:18got some authority to make you happy if
- 15:22they can't make you happy you go to the
- 15:24next level and you keep going all the
- 15:26way up to the top right so if a problem
- 15:30makes it all the way to the top in this
- 15:33organization that means there's only two
- 15:36possibilities one it's a big problem and
- 15:40only the boss can solve this
- 15:43problem the other is these people didn't
- 15:46do their
- 15:48jobs that's it no other answer right
- 15:53it's either a big problem or they didn't
- 15:54do their job so if you call up Amazon
- 15:59and you I don't know what their phone
- 16:00number is but you call up 1 1800 Amazon
- 16:04and Jeff Bezos answers the
- 16:07phone somebody did something wrong
- 16:09didn't they should Jeff Bezos be
- 16:11answering just random phones from Amazon
- 16:14no he's got to save his brain for the
- 16:17big important
- 16:19things yeah so what this does is only it
- 16:24it it stops the problems from going up
- 16:26any higher right the the problems they
- 16:29want to solve the problem it's because
- 16:30if the if the first level supervisor
- 16:33couldn't solve the problem and then the
- 16:35next level supervisor says it's an easy
- 16:38fix why didn't you do that they look bad
- 16:40don't they so what you want to do is the
- 16:42higher up you go you want to stop that
- 16:44thing from getting up to the top this
- 16:45gives you some problems though so we had
- 16:48a president of the United States his
- 16:50name was George HW Bush I did two
- 16:53projects for him I met him
- 16:55twice George HW Bush had been presid had
- 16:59been uh president of the United States
- 17:01for four years and he was running for
- 17:04reelection and he did what everybody
- 17:07does when they run for election or
- 17:09reelection they go around and Shake
- 17:12people's hands and say hi and kiss
- 17:13babies and things like that that's what
- 17:15they do they go and try to be nice right
- 17:17because remember it's a popularity
- 17:19contest see how see all this stuff's
- 17:21kind of rolling back in anyway so George
- 17:25Bush does does this he goes to a grocery
- 17:27store and he's touring the grocery store
- 17:30right he go he goes to the meat
- 17:32department says look at all these
- 17:33beautiful meats and then he goes to the
- 17:35veggies and says look at these wonderful
- 17:37vegetables are also pretty nice you know
- 17:39that's what they do right and he shakes
- 17:41people's hand and says whatever he
- 17:45says but then he goes to the checkout
- 17:49stand and there's a the Checker is
- 17:53scanning the little labels on on the on
- 17:57the ringing up the order right and takes
- 18:00a can of beans and
- 18:05goes that's a pretty good book isn't it
- 18:07sounds just like it I go to the store
- 18:09sometimes and I make that sound and
- 18:10they're like what what we
- 18:13overrated anyway that's that's one of my
- 18:15fun sounds I I I I have fun with that
- 18:17anyway so George Bush sees this he sees
- 18:22that sees this the laser scan it and
- 18:24makes that
- 18:26that and he goes oh my God
- 18:29look at this amazing Hightech Store look
- 18:32there's computers and lasers and look at
- 18:36all this stuff one of his his uh AIDS
- 18:40ran up to him says Mr President they've
- 18:43had these for 20
- 18:46years
- 18:47oops he didn't know what a grocery store
- 18:50to look like he hadn't been in a grocery
- 18:53store for 20
- 18:55years now let's be fair okay he had been
- 18:58president of the United States for four
- 19:00years does the president of the United
- 19:03States go grocery
- 19:04shopping no before that he had been Vice
- 19:07President of the United States for eight
- 19:09years does the vice president of the
- 19:12United States go grocery shopping no
- 19:15before that he was ambassador to the
- 19:16United Nations and the head of the CI
- 19:18those dudes don't go there either it had
- 19:20probably been over 20 years since he'd
- 19:23been in a grocery
- 19:25store wow now that's the next day Bill
- 19:29Clinton was running against him and Bill
- 19:30Clinton comes up and
- 19:32says I play the saxophone and my
- 19:36favorite food is
- 19:38McDonald's now wait wait a second do you
- 19:41really believe that this old fat dude's
- 19:45favorite food is McDonald's maybe I
- 19:47don't
- 19:49know
- 19:50but no really your favorite food is
- 19:55McDonald's I have a hard time with that
- 19:57I don't I don't believe that but why was
- 20:00he saying that then right because he was
- 20:02saying I go to McDonald's which he did
- 20:05go to McDonald's a lot right so he says
- 20:08I go I'm one of us I play the saxone
- 20:11this dude all he's ever done is
- 20:13government he doesn't know anything he
- 20:15doesn't even know what a grocery store
- 20:16looks like I go to McDonald's right and
- 20:18everybody says you go to McDonald's
- 20:21you'd probably be a lot more fun at a
- 20:23barbecue than George HW
- 20:25Bush which he would right and so he got
- 20:29elected wow wow so Denning says hey you
- 20:32got a problem with this this is a bad
- 20:35model in fact he says it's the worst
- 20:39model you can give so
- 20:42Denning
- 20:44instead says that the model should look
- 20:48like
- 20:50this he said it should be upside
- 20:53down right and the
- 20:57boss should be here at the bottom of the
- 21:01organization and because remember
- 21:04employees cannot make mistakes so what
- 21:06happens is these employees come up with
- 21:08an idea you get three employees that
- 21:10come up with an idea they go to the
- 21:13boss they say boss we got this idea the
- 21:17boss has two choices the boss either
- 21:20says yes let's do it or I need some more
- 21:25information the boss cannot say no why
- 21:29because the boss can be wrong who can't
- 21:32be
- 21:32wrong
- 21:35employees oh that's kind of weird isn't
- 21:39it yeah so he he cannot say say no so
- 21:42then the employees if he says no or
- 21:44which he's not he give me more
- 21:46information employees go back do some
- 21:48more research come back to the boss
- 21:50again with the same with with the new
- 21:52research and now the boss says two
- 21:55things yes or I need more information
- 21:58that's all now if they can't answer the
- 22:01question then of course that idea goes
- 22:03away it was a bad idea but who made that
- 22:05decision the employees the boss does not
- 22:07make the the boss doesn't say no they
- 22:11might say I I don't have enough
- 22:12information yet but they never say no
- 22:15because they can be wrong and they don't
- 22:16want to be wrong right so finally this
- 22:19first level boss gets enough
- 22:22information and says okay this sounds
- 22:26good I'm going to take it to my boss he
- 22:27takes it to his boss boss his boss has
- 22:29two choices right one is I need more
- 22:34information or the other is sounds good
- 22:36let me push it up to my boss that's it
- 22:40and then it keeps moving up and up and
- 22:42up and finally it gets to the head of
- 22:44the company and the head of the company
- 22:46has no choice they they they rubber
- 22:49stamp it they they don't make decisions
- 22:52like ours do so ours that the leaders
- 22:55make the decision not in Japan in Japan
- 22:58it's the it's the lower level employees
- 23:01that make the decisions now what does
- 23:04the boss do in in a Japanese company his
- 23:07job he only has one job his job is to
- 23:10make sure that these guys are well
- 23:12trained and taken care of that's all he
- 23:15cares about he wants to make sure that
- 23:17the he has the best employees working
- 23:19for him their job is to make sure that
- 23:21the other employees are better their job
- 23:23is to make sure the other everybody's
- 23:25happy right so he doesn't come up with
- 23:28the idea
- 23:28here this guy comes up with the ideas
- 23:30and they roll downhill you ever heard
- 23:31the phrase it rolls downhill roll
- 23:34downhill that's the idea here because
- 23:36it's the boss's idea and you got to do
- 23:38what the boss says right here it's the
- 23:41employees ideas and the boss kind of has
- 23:43to say yes right but it gets even more
- 23:47interesting because where do you think
- 23:50these entrylevel employees get their
- 23:53ideas
- 24:07the
- 24:09customer on my screen it looks like it's
- 24:12backwards I don't know if that's but it
- 24:15says that says customer okay the
- 24:17customer have you ever heard the phrase
- 24:19the customer is always
- 24:20right yeah that's where this came from
- 24:24the customer's always right well
- 24:26customer is not always right yes they
- 24:28are oh no I had had customers that are
- 24:32wrong no right if you go to the
- 24:35steakhouse and you want your steak
- 24:38cooked well
- 24:39done and they
- 24:41won't are you going to go back to that
- 24:45Steakhouse no right and and if the
- 24:48customer is right what do they give
- 24:51you money that's why you're there that's
- 24:55why you're doing this business is to get
- 24:57their money right and so if you're not
- 24:59giving them what they want with the
- 25:00service they're going to go someplace
- 25:01else now but the customer isn't always
- 25:04right it is by deming's Theory deing
- 25:07says that the customer knows what they
- 25:08want and if they don't you don't give
- 25:10them what they want they'll go to
- 25:11someplace
- 25:13else huh would you want to drive a car
- 25:17that breaks down or has cup
- 25:20holders sorry do you want a car that
- 25:22doesn't break down or car with lots of
- 25:24cup
- 25:26holders yeah
- 25:28yeah yeah pretty pretty crazy ideas
- 25:32here okay so Deming came up with this
- 25:35idea of of
- 25:37quality he says what is Quality quality
- 25:42is the degree a good or service meets
- 25:45its
- 25:46standards does it do what it's supposed
- 25:49to
- 25:50do you go to McDonald's is McDonald
- 25:53supposed to be a fine dining experience
- 25:55oh no right is McDonald's food supposed
- 25:59to be delicious and
- 26:02nutritious no no what is McDonald's food
- 26:07supposed to
- 26:08be Bland and
- 26:12consistent is it
- 26:14Bland yeah is it
- 26:16consistent yeah but once in a while they
- 26:18have good food once in a while they'll
- 26:20do it nobody buys it you don't go to
- 26:24McDonald's for a $12 hamburger you don't
- 26:27you go to Robin some other place for a
- 26:30$12 hamburger that's not what that's
- 26:32your brain doesn't say let's go to
- 26:33McDonald's and get a $12
- 26:35hamburger even if it tastes good you
- 26:37don't you don't buy it right so everyone
- 26:39well to bring back the MCB guys know
- 26:42love that MCB oh
- 26:44yeah they do it because people come in
- 26:46there and they they'll buy it once just
- 26:48because wow we got the rib back I
- 26:50remember that when I was a kid and then
- 26:52they they go they come back they never
- 26:54they don't buy it so what happens is
- 26:56they put it on the on the on the menu
- 26:59just for a little bit to get you to come
- 27:01in to try that RI yeah cuz I remember
- 27:03that rib and then after you've um you
- 27:07come in there you go I don't want that I
- 27:08want cheeseburger and fries and a Happy
- 27:11Meal and that's what they so everybody
- 27:14says well McDonald's is low quality it
- 27:16isn't does McDonald's food do what it's
- 27:19supposed to
- 27:20do are there ever any surprises when you
- 27:23order McDonald's food well the Happy
- 27:26Meal okay Happy Meal gives you a little
- 27:27plas pizza toy that works for the the
- 27:31half an hour before it breaks but yeah
- 27:33okay but that's what you go there
- 27:36for yeah yeah yeah so let's look at
- 27:39performance what's quality what's
- 27:41performance is a Ferrari a quality
- 27:45car yeah I Ferraris are cool right
- 27:49everybody loves a Ferrari if you have a
- 27:51Ferrari people Don this right they look
- 27:54really
- 27:55snazzy they sound really cool
- 27:58they go really really fast they're
- 28:02maneuverable they're expensive they're
- 28:05rare it's a great
- 28:08car actually Ferraris do something else
- 28:11really really really well in fact better
- 28:14than any other brand of
- 28:16car they break
- 28:18down they do per mile operating costs
- 28:24for maintenance and everything for a for
- 28:26a Ferrari
- 28:28is the highest per mile maintenance cost
- 28:31of any major car company in the world so
- 28:36yes they go really fast they look cool
- 28:38they sound neat and you're going 200
- 28:41miles an hour and parts are flying off
- 28:44your car now do you buy a Ferrari for
- 28:49reliability if your answer is
- 28:51yes you're making a big mistake because
- 28:54they're not very reliable cars you have
- 28:56to do a lot of maintenance on them right
- 28:59but they're cool I want one is it is it
- 29:02a quality C yes but they break down now
- 29:06Porsche Porsche
- 29:08911 has some similarities to the Ferrari
- 29:11they're cool they're
- 29:13fast they're actually pretty reliable
- 29:15too but the problem is anytime you have
- 29:18to do maintenance you have to take the
- 29:19engine out you they're what's called a
- 29:22boxer engine right so the Pistons are
- 29:24going like that and you can't work on it
- 29:27so what do you do so something breaks
- 29:29down you got to pull the engine out of
- 29:32the car right go to a porch the
- 29:34dealership say can I go to the
- 29:36maintenance area and they think oh yeah
- 29:38we'll show you the maintenance area it's
- 29:39beautiful because it's state-of-the-art
- 29:41clean beautiful nice and you'll go and
- 29:43you see all these engines out of the
- 29:45cars because that's the only way to work
- 29:46on them right uh is is a Porsche of a
- 29:50quality car it it's what pors is is
- 29:54about the the most U maneuverable cars
- 29:56out there and they don't break down very
- 29:59much but if you've ever ridden in a
- 30:02porch of 911 very far you'll find out
- 30:05they're terrible cars first off they're
- 30:08loud they are loud especially the Cabret
- 30:11and if you have a Cabret sounds really
- 30:14cool the engine sounds neat it's all a
- 30:15lot of fun but if you take a long trip
- 30:19you will damage your hearing it's that
- 30:21loud so you have to wear earplugs right
- 30:24you take a short trip you don't really
- 30:25notice it you take a long trip you you
- 30:27will wear earplugs talk to anybody who's
- 30:28gone on a road trip like to the Grand
- 30:31Dam in back in a Porsche and
- 30:33they'll say yes I wore earplugs so
- 30:35number one it's like you have to wear
- 30:37earplugs when you drive the car number
- 30:39two it's terribly uncomfortable it is
- 30:43not a comfortable well I sat one it was
- 30:45nice not for four hours you didn't so I
- 30:48have a a good friend and he bought a uh
- 30:52a boxer brand new
- 30:54boxer he got this the top model of the
- 30:57boxer
- 30:58and um he sold it like two months later
- 31:02I said ow come you sold it that was a
- 31:03nice car he says I love that car my back
- 31:06hated that car that car is so
- 31:08uncomfortable now is Porsche a good car
- 31:12yes is f a good car yes is McDonald's
- 31:16food terrible yes but it's they're all
- 31:19quality aren't they but do they do what
- 31:22they're supposed to
- 31:23do yes right you do not buy a Porche
- 31:28to ride around comfortably you just
- 31:32don't and there's a reason the seats are
- 31:33so uncomfortable because they want it
- 31:35spe real snug so when you're going
- 31:37around these twisty Corners you don't go
- 31:39sliding off the side so you can you're
- 31:41actually in control but that makes your
- 31:43back hurt
- 31:47so how about japanese cards which are
- 31:50better japanese cards or American cars
- 31:52now most people tell you Japanese and
- 31:53we'll talk about that here in a
- 31:56second not pickup trucks pickup trucks
- 32:00American pickup trucks are more reliable
- 32:03right Japanese pickup trucks they're
- 32:06they're they're they're not up to the
- 32:08standard of American pickup trucks so
- 32:10people say no Japanese trucks are so
- 32:12much better so I had a Ford F-150 pickup
- 32:16truck you know the truck right Ford
- 32:19F-150 pickup
- 32:21truck when I sold it it had 380,000
- 32:24miles on it when I sold it you took the
- 32:28key you put the key in the ignition and
- 32:30turn the key and it goes started right
- 32:33off okay it only broke down one time so
- 32:36yeah I changed the batteries I changed
- 32:38the belts I changed the tires brakes
- 32:40yeah yeah yeah that's maintenance stuff
- 32:42but mechanical breakdown it only broke
- 32:44down one time and the fuel pump died on
- 32:46it cost me $600 to get a brand new fuel
- 32:49pump put on put in it okay 380,000
- 32:55miles wow now that's a lot
- 32:58what you mean if I buy one I'll get that
- 33:00no it's called
- 33:01lucky right you're lucky but right now
- 33:05the standard is you should be able to
- 33:06make about quarter of a million miles on
- 33:09your pickup
- 33:12truck so Japanese cars can be better but
- 33:16not with pick if you look compare a Ford
- 33:18and a Toyota
- 33:20normally Toyota spanks Ford big ton but
- 33:24not in their pickup trucks yeah
- 33:32cost is something more valuable because
- 33:34it's
- 33:36expensive it's a higher quality since
- 33:39it's expensive do you want an expensive
- 33:41diamond or a cheap
- 33:44diamond I want an expensive one right
- 33:47and so you go to if you've ever gone
- 33:49diamond shopping they'll say oh here's
- 33:52the best this is a perfect Crystal it's
- 33:54got the highest quality with no thing
- 33:57and you look get it and you go okay it's
- 33:59a diamond right and you said well how
- 34:01much is that diamond they go $155,000
- 34:04but this is the best and go really
- 34:07what's a $10,000 diamond look like and
- 34:09they go well you don't want a $10,000
- 34:11Diamond you want $15,000 no don't show
- 34:14me the $10,000 and they bring out
- 34:16another diamond and you look at that
- 34:19that diamond and then you go see the
- 34:22color isn't quite as good you're looking
- 34:24at it you're
- 34:25going looks like the other one to me
- 34:29I don't see any difference oh yeah there
- 34:30is and then they pull up the original
- 34:32the 15,000 they put them right next to
- 34:35each other and they might even give you
- 34:36a little monacle thing to look at see
- 34:39there's different colors there's
- 34:40different okay how many times are are
- 34:43you're going to look at somebody's
- 34:44diamond on their hand and go we get out
- 34:47the thing let me get a color chart here
- 34:49to make
- 34:50sure you're not right you don't even I
- 34:53bet you if they if they had cubic
- 34:55zirconium next to it you wouldn't be
- 34:57able to tell it yeah it's a Porsche
- 35:02Porsche's a great car expensive still
- 35:05want one even though they're
- 35:06uncomfortable still want one so I told
- 35:09you I drive a Ed electric vehicle so
- 35:13it's a I have a a Tesla don't
- 35:17I not really but yes it is it's a Toyota
- 35:20Rav
- 35:214 with a on a Tesla body right so they
- 35:25just they put the Toyota ra 4 right on
- 35:27top of the the Tesla frame and Away you
- 35:29go right which would you rather have a
- 35:34Tesla or a Toyota ref
- 35:38for how many times do you think when I
- 35:42pull into the G to to the grocery store
- 35:45people look at my car and go oh wow
- 35:49that's a Toyota Tesla r
- 35:53or it's never happened nobody knows in
- 35:57fact nobody even knows it's an Eevee
- 35:59except it says Eevee on there and they
- 36:00probably think that that means something
- 36:02else not electrical vehicle they
- 36:03probably think it means Eevee is my
- 36:06daughter's name or something I don't
- 36:07know but nobody even get which would you
- 36:10rather have a Tesla S or Toyota Rav 4
- 36:14rather have the Toyota no you'd rather
- 36:16have the Tesla wouldn't you yeah because
- 36:18it costs more it's got to be better but
- 36:21it's a same car yeah yeah
- 36:28status which would you rather have
- 36:31Alexis or Toyota so I was getting ready
- 36:34to buy a car for my wife and she says I
- 36:37want the
- 36:39L for Lexus I don't know if she knew
- 36:42what Lexus meant but she knew what that
- 36:44L meant she wanted it they're both the
- 36:48same company right so I bought a Toyota
- 36:54Camry all the bells and whistles had
- 36:56every feat you could have on it right
- 36:59leather seats
- 37:01everything uh I paid $30,000 for that
- 37:03car okay now uh you say you paid $30,000
- 37:08for a toy on Camry this was a long time
- 37:10ago and back then Camry was more
- 37:12expensive especially with all these toys
- 37:15okay so what do you do when you buy a
- 37:18car what's the first thing you do when
- 37:21you buy a car on the weekend we take it
- 37:24for a road trip it's what you do isn't
- 37:27it here you're going to take it for a
- 37:28drive and goooo look at my car right so
- 37:30I took it on a road trip and I went up
- 37:32to uh
- 37:34lenworth and because it's a pretty drive
- 37:36and nice and I pull into leworth and get
- 37:40out of my car because I'm gonna go get
- 37:42lunch get out of my car I lock the door
- 37:44lock the car I'm walking to the
- 37:49restaurant what do you do when you have
- 37:51a brand new car you're on a road trip
- 37:55you just park your car lock it
- 37:58you're walking to the restaurant what do
- 38:00you
- 38:02do you turn around and look at your car
- 38:06that's what you do right you go that's
- 38:08my car so I looked at looked at my car I
- 38:12yeah that's my car and my wife looks at
- 38:14the car and she
- 38:15says look at that I go what she says
- 38:19look I go it's our car she says no look
- 38:22at look at the car next to it but it was
- 38:25the same car me r back when we looked in
- 38:28this car this car was the exact same car
- 38:32could not tell a difference except they
- 38:36misspelled Toyota they spelled it
- 38:40Lexus and instead of having that funky T
- 38:44all over the place it had an L all over
- 38:46the place that was it everything was
- 38:49identical there was no difference how
- 38:50much do you think they paid extra to
- 38:53misspell
- 38:56Toyota
- 38:58$110,000 probably so do you know Honda
- 39:02they sometimes they misspell Honda too
- 39:09Acura sometimes they misspelled
- 39:13Nissan
- 39:17Infinity yeah so wow status I've got an
- 39:20Infinity you got a Nissan look at your I
- 39:24got an Infinity it's the same car uh and
- 39:26what's weird Toyotas are actually more
- 39:28reliable than the
- 39:30Lexus it depends on how you how you
- 39:33evaluate that and I'll give you those
- 39:34data that data in little bit so how
- 39:36about features more features something
- 39:38has the better it is right so if you
- 39:41ever go to
- 39:42a uh Walmart and you want to buy a
- 39:49blender you go buy a Walmart blender and
- 39:51it's cost let's say it's $30 to buy a
- 39:54Walmart
- 39:55blender and that blender
- 39:58has about 25 different
- 40:00speeds right so you
- 40:02can or buttons and you press it or
- 40:05whatever you know what a blender
- 40:08is you want to buy a $200 blender or a
- 40:12$500 blender they usually have one or
- 40:15two speeds realistically do you use all
- 40:19those speeds no you know used to have uh
- 40:24VCRs people used to record movies
- 40:26because they couldn't before he had the
- 40:28internet they have to record nobody knew
- 40:30how to how to record a show on time or
- 40:33you did and then record half of the show
- 40:35and you missed it it was it was a big
- 40:36mess you didn't want Cadillac so
- 40:39Cadillac luxury cars right or nice cars
- 40:42Cadillac decided we're going to put a
- 40:45lot of features on we're going to make
- 40:46this car just absolutely incredible to
- 40:49drive we're going to put something
- 40:50called heads up display on it so instead
- 40:53of looking down at the needle to see how
- 40:54fast you're going it will project it on
- 40:56your windshield for you just like they
- 40:59do for fighter
- 41:00jets so fighter jets you when you're
- 41:03zipping around you don't want to be 's
- 41:05this right so they they put it up on the
- 41:07display so tells you so wow they onboard
- 41:10computers they when you get it in you
- 41:12didn't use a
- 41:13key no yet you pressed your code in on
- 41:17the door they were the first ones to
- 41:18come up with this code thing you press
- 41:20the codes on the door then your code is
- 41:22different than your spouse's code so
- 41:24when you press in your code the card
- 41:27seat would automatically adjust to the
- 41:30way that you like it the temperature
- 41:33would be turned to the temperature you
- 41:34like they would change the radio station
- 41:37to your favorite radio station it would
- 41:39adjust the mirrors all automatic for
- 41:43you it was an amazing car for the time
- 41:47right people hated that thing so what's
- 41:51weird about Cadillac Cadillac owners are
- 41:54very loyal if you buy one Cadillac
- 41:57you were going to buy another and
- 41:59another and another that's just the way
- 42:02Cadillacs work that Cadillac people are
- 42:05very loyal they came out with this car
- 42:07and people start stopped buying
- 42:10Cadillacs and they said they couldn't
- 42:11figure this out so thank goodness they
- 42:13were smart they went to their customers
- 42:15and they said why aren't you buying this
- 42:18new car this is a great car now let's
- 42:20think about a Cadillac owner a typical
- 42:23Cadillac
- 42:25owner there's one word that you can use
- 42:29to describe a typical Cadillac
- 42:34owner
- 42:36older older people typically buy
- 42:41Cadillacs now does an old
- 42:44person want to be flooded with
- 42:46technology and gadgets and stuff like
- 42:49that and want to program a computer just
- 42:52to go to the store to buy a quart of
- 42:54milk
- 42:58no so Cadillac ended up throwing all
- 43:02that stuff
- 43:04away they they just said it really
- 43:07wasn't because people were just freaked
- 43:08out haven't you had something that's way
- 43:10too complicated so I have some friends
- 43:12and then they live in a very large house
- 43:14and they have
- 43:16a a radio system that's built into the
- 43:19house right so you can change the radio
- 43:22station anywhere you want in the house
- 43:25and you you can also change other rooms
- 43:27so if if they're over in the kitchen and
- 43:31I'm in the living room I could make them
- 43:33listen to country music or rock and roll
- 43:36or Bluegrass but so you can control
- 43:39everything from
- 43:41everywhere
- 43:42well they bought this house and this
- 43:44house is about 20 years
- 43:47old nobody can figure out how to work
- 43:50it every room has one of these really
- 43:52super
- 43:551990 early 1990s consoles on the wall
- 44:00with all these buttons and gizmos and
- 44:03stuff the family cannot figure it out so
- 44:06then the family hired an
- 44:08electrician electrician comes in and
- 44:11says no clue they said well who could
- 44:15help us fix get this to work and they
- 44:18said I don't think anybody
- 44:22can so they end had put radios in every
- 44:24room I mean wow
- 44:29but it looks cool
- 44:32yeah
- 44:34reliability so a lot of people in in
- 44:37watching this
- 44:38video Drive Hondas Honda's a good car
- 44:41right nobody's going to tell you Honda's
- 44:43bad car Toyota is more reliable it is
- 44:46Toyota and I'll give you the stats here
- 44:48in a second because people like to say
- 44:49no it's not but the people who drive
- 44:53Hondas have a reason okay first off
- 44:57Toyota is more reliable not much this
- 44:59much but they are more reliable the
- 45:01operating costs on the Toyota are lower
- 45:04Honda's quite often you have to have
- 45:05premium gas Toyotas you're not supposed
- 45:07to put premium gas in and no premium gas
- 45:09does not give you better gas mileage or
- 45:11make your car go any faster
- 45:13or it's not also Hondas have engines
- 45:18tend tend to have what's called a uh
- 45:20zero clearance valve which means the
- 45:24Piston comes up and the valve
- 45:28closes but if the valve if if the the
- 45:32valve train if the uh the cam shaft
- 45:35breaks or so gets out of syn then the
- 45:37Piston will hit the valve and bend it
- 45:39and break it so you there's more
- 45:41maintenance on The
- 45:43Hondas so but why would you drive a
- 45:45Honda if Toyota is more reliable is
- 45:49cheaper to operate is for there's a good
- 45:52reason there's a real good reason why
- 45:53you're drive Honda because a lot of
- 45:55people say Hondas look
- 45:57better do you look at a Toyota Prius and
- 46:00go oh look at that hot machine better
- 46:03yet look go go look at a 1995 or 2000
- 46:07maybe that's when they came out go look
- 46:09at like the first model of the
- 46:12Prius that is one of the ugliest cars
- 46:16known to mankind a lot of people say I'm
- 46:20not going to drive that car because it
- 46:21is just so ugly you want a pretty car or
- 46:23an ugly car I want a pretty one so
- 46:25people with the Hondas they look cooler
- 46:28right they you don't look at them
- 46:31go with with one exception the older
- 46:33Honda insights were pretty ugly yeah but
- 46:37I got a Volkswagen sorry for your
- 46:40Volkswagen no Volkswagen's a good car no
- 46:44it's it's not all right a typical
- 46:46eight-year-old Volkswagen has three
- 46:50times as many problems as a
- 46:53Toyota three times
- 46:57well I got a Volkswagen and it hasn't
- 46:59broken down huh you know what that
- 47:04what's that word
- 47:06lucky so when I had my for F-150 with
- 47:10380,000 mil it never broke down Fords
- 47:13don't break down uh
- 47:16lucky yeah so I I don't believe you okay
- 47:20nobody believes me let's get some
- 47:23statistics going
- 47:25here so this
- 47:27is vehicle class Quality Index
- 47:31ratings so you see number one is
- 47:35Toyota number two is
- 47:39Toyota number three Hummer I don't
- 47:42understand how Hummer got that uh I
- 47:44don't know how that's working although
- 47:46Hummer's GNA come out with an
- 47:48EV yeah Hummer of all vehicles is going
- 47:51to be
- 47:53green okay Porsche hey we knew Porsche
- 47:58yeah Scion what's Scion that's oh that's
- 48:01Toyota again isn't it but they're doing
- 48:03away with Scion but he got sign W
- 48:07mercedesbenz okay Infinity Nissan Honda
- 48:12wow where's
- 48:16[Music]
- 48:19Volkswagen
- 48:20wow so any standard but when you when
- 48:24you go look at at index
- 48:27uh on cars okay first off Mini
- 48:31Cooper who makes Mini
- 48:35Cooper
- 48:38mercedesbenz oh now that's interesting
- 48:40isn't it I think it's
- 48:42Mercedes-Benz either Mercedes-Benz or
- 48:45BMW I'm pretty sure it's Mercedes-Benz
- 48:47okay
- 48:49okay smart smart car isn't smart right
- 48:53those that's with the little two-seater
- 48:55cars where you sit right next to each
- 48:56other and you can either parallel park
- 48:57or back in they don't work Fiat Fiat
- 49:01always has troubles right fiat's always
- 49:04these three are always there at the top
- 49:07and Volks that's number one worst right
- 49:10U Volkswagen's always really really
- 49:13close too so let's look at at some other
- 49:16interesting
- 49:20statistics now this
- 49:22is move this up there we go long
- 49:26long-term Quality Index percentage of
- 49:29vehicles over 180,000 miles so in other
- 49:31words these are the cars that last
- 49:34forever who's number
- 49:37one
- 49:38Toyota who's number two Honda who's
- 49:43number three Honda who's number four
- 49:50Toyota yeah where's VW
- 49:57yeah now first off it gets this this
- 50:02these numbers are a little interesting
- 50:03here so
- 50:05oldmobile olds Mobile's way up there
- 50:08isn't it yeah yeah Oldsmobile they're
- 50:11great
- 50:12card old mobiles have some problems
- 50:15they're not the best car but think about
- 50:17it what type of person buys an old
- 50:23mobile an old person
- 50:27now how do old people drive their
- 50:30cars like you Andy shut
- 50:34up how do old people D they go slowly
- 50:37don't they and they don't go racing
- 50:40around or anything they're going let's
- 50:42turn that turn signal on and make sure
- 50:45there's nobody coming right and you know
- 50:48what I'm talking about right they last
- 50:51they keep them parked under a garage and
- 50:53they last forever and they okay so
- 50:56that's kind of that's kind of
- 50:58interesting on them now look though look
- 51:01at look let's look at the bottom again
- 51:03smart not smart Fiat no mini bad
- 51:10Porsche wait I thought Porsches were
- 51:14pretty darn reliable and pretty good car
- 51:16they
- 51:17are then why is Porsches so far down
- 51:21there first the repairs on a Porsche are
- 51:25insanely expensive
- 51:27you you're going to you spend a lot of
- 51:30money on maintenance and especially the
- 51:31older ones and how many people in here
- 51:34how many people watching the video have
- 51:37gone to somebody else's
- 51:38house and gone to their garage and seen
- 51:42a Porsche that hasn't probably been
- 51:44turned on in the last nine years you
- 51:48know what I'm talking about it's a it's
- 51:49a a garage Queen it lives in the garage
- 51:52and they only drive it on Sunny pretty
- 51:54days once in a great while
- 51:57and because operating costs are so high
- 51:59and they just they keep them there
- 52:03Jaguar actually Jaguars aren't very
- 52:06reliable they're pretty cars but they're
- 52:09uh and they're expensive but they're
- 52:11they don't last very long ago I I heard
- 52:13that this one guy bought a Jaguar not
- 52:15very long ago and he drove it across the
- 52:18country and it only caught on fire twice
- 52:21so
- 52:24yeah so
- 52:27but Andy JD Powers JD Powers says
- 52:31initial quality Volkswagen and Toyota
- 52:34are just as good as each
- 52:36other
- 52:38well yes and no no JD pow says that
- 52:42Honda and Toyota and Volkswagen are all
- 52:45have the same initial quality so this is
- 52:47where it gets kind of weird because I
- 52:48showed you those re I showed you some
- 52:50resources there and it said that
- 52:52Volkswagen's way down there and he said
- 52:54JD Power says Volkswagen's really
- 52:57and we're not even talking about that
- 52:58emission Scandal that almost bankrupted
- 53:02Volkswagen so how can they how can JD
- 53:05Powers must be wrong no JD Powers is not
- 53:07wrong they're right here's what
- 53:12happens JD Powers buys a
- 53:15car they take the car
- 53:19apart they measure all the
- 53:22pieces and if the car
- 53:28has
- 53:3199.999 66% of the parts are defect
- 53:36free it's considered
- 53:39perfect you have ever take a statistics
- 53:41class that's going to be called a Six
- 53:43Sigma limits so if you have a little
- 53:45bell curve bell curve that would say
- 53:49that and you looked at a part so let's
- 53:53look at a part for a bolt
- 53:57let's say a bolt let's say the
- 53:59specifications for the
- 54:03bolt here's a
- 54:09bolt so they say the specifications this
- 54:13bolt should
- 54:16be 3 in Long right so they want the bolt
- 54:20to be three inches long there's a
- 54:24problem a bolt can never ever ever be
- 54:29three inches long it can't by definition
- 54:34because a bolt is made out of metal and
- 54:38what does metal do when it gets warmer
- 54:41it expands what does metal do when it
- 54:43gets colder it contracts so there's no
- 54:47such thing as a perfect perfect perfect
- 54:513-in
- 54:53bolt so what they'll do is they'll say
- 54:56okay
- 54:57we want this bolt to be 3 in plus or
- 55:00minus 01 so one tenth of an inch let's
- 55:05just say that that number okay so if
- 55:09it's
- 55:133.01 sorry a 100th of an inch okay let's
- 55:16say 100th 3.01 inches long it's within
- 55:19standards it falls within the six sign
- 55:21limits if it's less it falls in right so
- 55:23it it it goes in so both Volkswagen
- 55:27Toyota and Honda all have n they have
- 55:32the same initial quality because they
- 55:33both have
- 55:3599.99999
- 55:3766% are within
- 55:40specifications and if I if we plot
- 55:46this on a chart
- 55:59if we put it on a chart so this
- 56:02is this is 3 Ines this is minus .3 and
- 56:06plus sorry minus .1 and plus minus .01
- 56:11and
- 56:12plus1 turns out that 99.999 66 are
- 56:16within the limits and it's considered
- 56:18perfect okay Mak sense this is what it
- 56:22looks like at Volkswagen
- 56:27this is what Honda and
- 56:31Toyota's chart looks
- 56:35like looks different doesn't
- 56:38it yeah yeah see
- 56:40Volkswagen management is in charge of
- 56:43quality control so at Volkswagen the
- 56:47boss walks around with tape measure and
- 56:52calibers and a chart and he measures the
- 56:55parts as are coming off and if something
- 56:58is not something is defective it's the
- 57:01boss's
- 57:02fault okay Honda
- 57:06Toyota management says to the
- 57:09employees you're in charge of quality
- 57:14and we want you to make it as perfect as
- 57:17you can so the employees at Honda and
- 57:21Toyota they say make it you want it as
- 57:23perfect as you can yes management at
- 57:27Volkswagen says get it within its
- 57:30standards make sure every part is within
- 57:32its
- 57:33standards and we're going to measure the
- 57:35standards right so it's perfect if it's
- 57:38a little bit longer or a little bit
- 57:40shorter as long as it's not too much
- 57:41it's perfect versus Toyota and Honda
- 57:44they say make it as perfect as you can
- 57:47get it so the employees are actually
- 57:49responsible for it so so okay so what
- 57:52does this make a difference because
- 57:56if you take a bolt so we got a bolt here
- 58:01okay and you put a bolt in
- 58:05a in into an engine block or something
- 58:08like that okay and you tighten it up if
- 58:10did you know that if you don't tighten
- 58:11up the bolt if you leave it Loose it'll
- 58:14vibrate won't it and when it vibrates
- 58:16that causes the the strength of the
- 58:21steel to get it's called embrittlement
- 58:23it causes it to get really really hard
- 58:27and very delicate and breaks very
- 58:29easily so think of it this way let's say
- 58:31you take a
- 58:33pencil okay take a pencil and you go
- 58:36like this with a pencil and at first
- 58:40it's kind of hard and you break it
- 58:41you'll just break a little bit at a time
- 58:42just after you do this a little while it
- 58:45gets pretty all a sudden you can go and
- 58:47it will break apart won't it so the
- 58:51Volkswagen the parts have a little bit
- 58:53more wiggle room with it they're not
- 58:56locked in so they it flexes a little bit
- 59:00and so as it flexes it causes the parts
- 59:03to start to wear at to wear faster and
- 59:06to break more
- 59:07easily Volkswagen sorry
- 59:11Toyota it's locked in right if you go to
- 59:15you want to have have some fun go to a
- 59:18Toyota dealership look at a Toyota have
- 59:21them lift the hood up start the engine
- 59:23and put your hand on the engine
- 59:27then go to a Volkswagen dealership find
- 59:30a similar car so because you can't take
- 59:33a pickup truck and compare that to a
- 59:37two-seater car right get a similar car
- 59:40turn on the engine and touch the
- 59:43engine and you'll find that the Toyota
- 59:45is going to be is going to be quieter
- 59:47and it's not going to vibrate as much
- 59:49and that's why it lasts longer not the
- 59:52quietness but the vibration
- 59:57wow pretty fun so this is all Deming
- 1:00:00stuff he came up with all these
- 1:00:03ideas then he also came up with this
- 1:00:05idea called economies of
- 1:00:08scale economies of scale economies of
- 1:00:12scale means that the more you produce
- 1:00:14the more efficient you
- 1:00:16get okay so let's say for instance
- 1:00:19you're going to make
- 1:00:21cookies you make one cookie at a
- 1:00:24time you not very efficient are you if
- 1:00:28you make 10 cookies at a time are you
- 1:00:30going to be more
- 1:00:32efficient yes right so he says as you go
- 1:00:35from one cookie at a time to two cookies
- 1:00:37at a time to 10 cookies at a time to 100
- 1:00:41cookies at a time you become more
- 1:00:44efficient that's called economies of
- 1:00:48scale meaning but better you
- 1:00:51do so and and and that makes a lot of
- 1:00:54sense everybody understands economy a
- 1:00:56scale right it's more efficient to do
- 1:00:59something is it more efficient when
- 1:01:00you're unloading your car with groceries
- 1:01:02to carry one bag of groceries or two
- 1:01:04bags of groceries more efficient with
- 1:01:06two that's economies of scale it gets
- 1:01:10weird though let's say you can
- 1:01:14physically
- 1:01:16carry let's say you can physically make
- 1:01:19100 cookies in an hour if everything's
- 1:01:22perfect you're zoned in you're working
- 1:01:25as fast as hard as you can you can make
- 1:01:28100 cookies in an
- 1:01:31hour how many cookies should you
- 1:01:35make now most people would say 100 no
- 1:01:40Deming says you should make
- 1:01:4380 Deming says after 80% of capacity you
- 1:01:49start to become less
- 1:01:52efficient think of it this way
- 1:01:55race cars do race cars engines last very
- 1:02:00long A lot of times they throw those
- 1:02:02engines away after One race why because
- 1:02:06they're running at 100% aren't they
- 1:02:09right what if they took your race car
- 1:02:11engine and you didn't go 220 miles an
- 1:02:14hour what if you only went 70 miles an
- 1:02:16hour is the engine going to last longer
- 1:02:20a lot
- 1:02:21longer okay so let's say you're racing
- 1:02:25you're you're going to in a
- 1:02:27race and when I was in college I could
- 1:02:30actually do a FIV minute mile okay
- 1:02:32you're sprinting the whole time five
- 1:02:34minute mile right now I don't know if I
- 1:02:35can drive a five minute mile but I could
- 1:02:38run it back then okay let's say I need
- 1:02:41to to so I can do one five minute mile
- 1:02:43I'm killing myself I'm out of breath I'm
- 1:02:45completely so what if I have to run two
- 1:02:48miles should I try to run two five
- 1:02:51minute miles oh no I could barely do the
- 1:02:55one five minut Mile and I was I was like
- 1:02:57almost throw up after I was finished you
- 1:02:59know what I'm talking about right but if
- 1:03:01I tried to do two I there's no way I
- 1:03:03could could do that right so how can I
- 1:03:06if I have to go two miles what should I
- 1:03:09do I should slow down shouldn't I yeah
- 1:03:13so if I slow down I'm GNA be more
- 1:03:16efficient so what happens is a lot of
- 1:03:18companies a lot of factories they
- 1:03:20say we got we want to operate at
- 1:03:24100% you don't want to operate at 100%
- 1:03:27so let's say you have a th
- 1:03:30employees in your
- 1:03:33factory you need a th employees at your
- 1:03:36factory to operate at 100% what's the
- 1:03:39possibility all 1,000 people are going
- 1:03:42to show up on any
- 1:03:44day like zero somebody gets sick
- 1:03:47somebody gets married somebody has a kid
- 1:03:49what you know what I'm talking about
- 1:03:51right so to have a thousand people show
- 1:03:54up I
- 1:03:57guaranteed I need about
- 1:03:59,200 1,300 people
- 1:04:03employed okay so we'll we'll hire those
- 1:04:05extra 300 people okay what
- 1:04:09if 200 of those extra 300 that we hired
- 1:04:13just show up on the on a day now we got
- 1:04:161,200 people what do we do with these
- 1:04:17200 people there's nothing to do with
- 1:04:19them we tell them to sweep the it's
- 1:04:21inefficient isn't it so Deming came up
- 1:04:24with the idea he says you hire a
- 1:04:26thousand people but be happy with 80% of
- 1:04:30capacity Boeing Boeing decided that they
- 1:04:33wanted to operate at
- 1:04:35120% capacity a number of years
- 1:04:38ago so how do you operate at 120%
- 1:04:42capacity well they wanted to because
- 1:04:44they wanted to beat Airbus as far as
- 1:04:46production who they were having a big
- 1:04:48fight with Airbus who could produce the
- 1:04:49most planes and so they said we're going
- 1:04:51to go 120% well you can sure it's called
- 1:04:54mandatory overtime
- 1:04:57so in people normally would work eight
- 1:04:59hour shifts no now they have to work 10
- 1:05:03hour shifts well that's not so bad they
- 1:05:06get double time yeah but do you want to
- 1:05:09work 10 hours every day all day oh the
- 1:05:12weekends weekends we'll give you a break
- 1:05:14on weekends you only have to work eight
- 1:05:16hours on the weekends Thanksgiving
- 1:05:19Day you are coming in on Thanksgiving
- 1:05:22day we'll we'll pay you eight we want
- 1:05:23you here eight hours for Thanksgiving
- 1:05:25eat a late
- 1:05:27dinner okay now do you want to fly on an
- 1:05:31airplane that's built by forced labor on
- 1:05:36Thanksgiving what's your brain GNA be
- 1:05:38like your your whole family is home
- 1:05:40eating turkey and stuffing and having a
- 1:05:43ball and you're twisting a bolt on an
- 1:05:46airplane you're like going I want to be
- 1:05:49home yeah and you haven't had any time
- 1:05:51off for so that's really dumb it's a bad
- 1:05:54idea so Deming would said scale it back
- 1:05:56to 80 that's what you should do so
- 1:05:59that's called economies of
- 1:06:04scale so next video next time you see
- 1:06:10me I'm going to look
- 1:06:13different and I'll show you how later
- 1:06:16thanks have a good evening
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