Peter E. Pflaum - Golden Globe - The Synergy Network http://www.wiredbrain.net/ pflaump@cfl.rr.com RE: Benefit/cost models The traditional input out put model can not handle the complex reality of business, government, education or other social choices. This traditional model is: |--------------------------| | | INPUTS --- | PROCESS | ______OUTPUTS | | | |__________________________| | + make more | _______________FEEDBACK__________________| - make less ACTIVITIES OBJECTIVES GOALS Missions (Magangement by Objective MBO) The model is that labor, materials, information, capital goes into the "system" and products, profits, waste, come out the other end. If the "market" takes the goods the message is positive = make more - if the market or competition or other factors rejects the goods the feedback is negative "make less" or make better or make different. Waste taxes (pollution fees) provide feedback - make less waste! Experiment with the mix of inputs, more of this and less of that and process (new equipment) can change the ratio between inputs and outputs = productivity. Now if the "model" is goal seeking it gets information on its relative market share and moves in a strategic as well as tactical manner. WHAT IS WRONG WITH THIS PICTURE? It lacks intelligence, passions, perceptions. It is at best a robot mouse or insect. It is materialist, amoral, and has no sense of value (price of everything and the value of nothing). It lacks quality. The critical environmental information is only based on the success or lack of success of its current activities. What if (in the 1920's) the railroads had thought about other forms of transport - trucks and airplanes rather than running the railroad and selling stock? The single purpose, single mission model will not catch the major technological shifts. It lacks VISION. PATHOS LOGOS ETHOS Z-LEVEL----------------|------------------|---------------- adult SPIRIT | MEANING | SOUL Essence | | | | Y-LEVEL----------------|------------------|---------------- youth EMPATHY | SELF (EGO) | MORALS Language | | | | X-LEVEL----------------|------------------|---------------- Child PASSION | NEEDS | ME-VALUES Material | | FEELINGS THOUGHTS VALUES BEAUTIFUL TRUE GOOD HEART MIND SOUL Economic theory is Level 1, only concerned about NEEDS and ME-Values, maybe self-development and public appearance. (personality). It's a child or teenager. Traditional economic models need to "Grow up!" The question is how do we build into our models moral purpose, understanding of costumers needs now and in the future, the feeling of clients, the motivations of employees, the concerns of suppliers, regulators, communities, and the responsibility for the stewardship of planet earth. The first step is go beyond input-outputs = productivity models. Demning (Out of the Crisis) suggest a statistical model of process variables. In 1950 W. Edwards Deming, an industrial engineer, introduced to Japan a method of statistical quality control. Over the last several decades Deming's approach has become well-known as quality control circles. An analysis of Deming shows there is a basic misunderstanding of evaluation in manufacturing. INPUTS ---- PROCESS------OUTPUTS Quality of Inputs Quality of outputs System Variables Process (individual) Variables Quality is measured by direct contact of producers and consumers (internal and external). Each unit seeks to preform within its own understanding of mission and role. What are we doing? If it is providing a part for another process how is that part used and are the people who use it satisfied. Maybe there is a better way. Motorola put it this way in a want ad for production workers: "Workers need to be able to measure the parameters of the manufacturing process and report significant variance in quantity and quality . They should be able to design and conduct experiments to test the effects of changes in process, inputs or organizational methods to see if they improve quality. They should understand the companies international competitive position." So how do you do benefit/cost analysis? We need to get into the process and ask the participants how they are doing. We need to include values of a more progressive and long term range. Can quality be defined, or is it more accurate to view quality as a recognizable characteristic? Quality isn't something you lay on top of subjects and objects like tinsel on a Christmas tree. Real Quality must be the source of the subjects and objects, the cone from which the tree must start. To arrive at this Quality requires a somewhat different procedure from . . . . "Step 1, Step 2, Step 3" instructions . . . (Pirsig, Zen and the Art of Motorcycles maintenance 1974, p. 262). "Quality can be defined only in terms of the agent. Who is the judge of quality?" (Deming, 1986, p. 168). Deming sees determination of quality as involving three agents, including workers and managers as well as customers. Van Gigch, John P. TITLE: Applied general systems theory EDITION: 2d ed. PUBLISHED: New York : Harper & Row, 1978. foreword by C. West Churchman. Edition:2d ed. Riggs, James L. Introduction to operations research and management science : a general systems approach / James L. Riggs, Michael S. Inoue. : McGraw-Hill, <1975> McGraw-Hill series in industrial engineering and management science Weinberg, Gerald M. An introduction to general systems thinking / Gerald M.Weinberg. New York : Wiley, <1975> Wiley series on systems engineering and analysisNotes:"A Wiley-Interscience publication."Includes bibliographical references and indexes. Sutherland, John W general systems philosophy for the social and behavioral scences John W. Sutherland., Braziller <1973>The International library of systems theory and philosophy Includes bibliographical references. Baker, Frank, Organizational systems; general systems approaches to complex organizations Homewod, Ill., R. D. Irwin,1973 Series note: Irwin series in management and the behavioral sciences Kuenne, Robert E. The Polris missile strike; a general economic systems analysis, Ohio State University Press <1966> McDaiel, Herman, Applications of decision tables; a reader. Princeton, Brandon/Systems Press <1970> D. T. Schmidt and T. F.Kavanagh. --Manufacturing applications of decision tables, by D.T. Schmidt and T. F. Kavanagh.--Engineering data processing using decision tables, by B. Grad.--The value ofdecision tables in manufacturing, by T. F. Kavanagh and M.Allen.--Decision tables in the 1964 Census of Agriculture; views seminar, U.S. Bureau of the Census, Sept. 30, 1964.--Decision tables at the Bureau of the Census, by R. A.Hornseth.--Planning networks and resource allocation, by H.S. Woodgate.--Decision tables for regulations, from U.S. AirForce Pamphlet 5-1-1, Sept. 1965.--Simulation with decision Does anyone not want to READ this? Do not flame! ************************************************************ Peter E. Pflaum Ph.D. GLOBAL_VILLAGE_SUFI_SCHOOL 225 Robinson Road, New Smyrna Beach * IN THE WORLD - FL 32169-2176 (904) 428-9609 * BUT NOT OF THE WORLD PetePflaum@aol.com * URANUS GOD OF HEAVEN HUSBAND OF GAEA, GODDESS OF A SUSTAINABLE EARTH pflaump@mail.firn.edu Pflaump@freenet.fsu.edu ZEN IS THE ART OF GETTING YOURSELF OUT OF YOUR OWN WAY ************************************************************