My journey from the business of destruction to non-destructive

testing through Advanced Digital Industrial

Radiography

Klaus-Peter Finke-Härkönen

23, June 2015

The strategy of the fighter pilot

• Business is a dog fight.

• Your job as a leader: outmaneuver the competition, respond decisively to fast-changing conditions, and defeat your rivals.

• That's why the OODA loop, the brainchild of "40 Second" Boyd, an unconventional fighter pilot, is one of today's most important ideas in battle or in business.

• Keith H. Hammonds

http://www.fastcompany.com/44983/strategy-fighter-pilot

Colonel John Richard Boyd January 23, 1927 – March 9, 1997

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The Environment

• Accelerating change

• Real time news cycles

• Information explosion

• Growing complexity

• Fierce competition

• Globalization

• Increasing uncertainty

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The complex systems space

Copyright 2004 Alex and David Bennet Mountain Quest Institute

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Boyd Cycle (OODA LOOP) and Boyd’s Conceptual Spiral

Framework for: • comprehending • shaping • adapting

in an unfolding evolving reality that is:

• uncertain • ever changing • unpredictable

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My interest in the Boyd Cycle/OODA LOOP

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Commitment to excellence

The ability to innovate and adapt effectively in an increasing uncertain, complex, and decentralized environment, requires excellence in thought and in deed.

Excellence in thought requires both intuition and insight. (Fingerspitzengefühl) (Shih)

Excellence in deed is acting on that intuition or insight; not simply acting for the sake of acting.

Major Paul Tremblay Jr, USMC 7

Example of a short BOYD CYCLE, OODA LOOP

• Night Carrier Landing

• https://youtu.be/CvncJwCxxV0

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Boyd Cycle (OODA LOOP)

orientation shapes observation, shapes decision, shapes action, and in turn is shaped by the

feedback and other phenomena coming into our sensing or observing window.

entire “loop” “cycle” (not just orientation) is an ongoing many-sided implicit cross-referencing

process of projection, empathy, correlation, and rejection.

Competitive advantage comes from “relative” quickness over the entire “loop,” not just or even primarily from the O-to-O-to-D-to-A sequence.

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Boyd’s dialectic engine

• Analysis

• Destruction

• Pulling things apart

• Synthesis

• Creation

• Putting things together

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Implicit

Guidance

& Control

Implicit

Guidance

& Control

Decide

Unfolding

Interaction

With

Environment Unfolding

Interaction

With

Environment

Action

(Test)

Act

“Orientation is the Schwerpunkt.” “Shih”.

“Emphasize implicit over explicit in order to gain a favorable mismatch in friction

and time.”

“Interaction ( R&D Partners/Customers) permits vitality and growth, while

isolation leads to decay and disintegration.”

Observations

Observe

Feed

Forward

Unfolding

Circumstances

Outside

Information

Orient

Cultural

Traditions

Genetic

Heritage

New

Information Previous

Experience

Analyses &

Synthesis

Pumping up OODA “LOOP” speed

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Feed

Forward

Decision

(Hypothesis) Feed

Forward

Feedback

Unfolding

Interaction

With

Environment Unfolding

Interaction

With

Environment

Feed

Forward

Observations

Unfolding

Circumstances

Outside

Information

Implicit

Guidance

& Control

Action

(Test)

Implicit

Guidance

& Control

Observe Orient Decide Act

Cultural

Traditions

Genetic

Heritage

New

Information Previous

Experience

Analyses &

Synthesis

Explicit decisions are needed when no effective action

is available via the implicit link, such as when training

or experimenting.

However:

• Actions will still be influenced by (existing) implicit

guidance and controls until these are reset by

learning

• Explicit decision making and reorientation (learning)

always take time

Increasing uncertainity, What to do?

Orientation

• Clausewitz defined Schwerpunkt as 'the center of all power and movement (Zentrum der Kraft und Bewegung) ... upon which everything depends.‘

• SunTzu ”SHIH”.

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Schwerpunkt applied

• Represents a unifying medium that provides a directed way to tie initiatives of many subordinate actions with superior intent as a basis to achieve objectives.

• Employees or team members or suppliers, decide and act locally, but they are guided by a keen understanding of the bigger picture.

• What do we want to achieve together?

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Effective organizations

• Schwerpunkt connects vibrant OODA loops that are operating concurrently at several levels.

• Workers close to the action stick to tactical loops, and their supervisors travel in operational loops, while leaders navigate much broader strategic and political loops.

• The loops inform each other: If everything is working, feedback from the tactical loops will guide decisions at higher loops and vice versa.

http://www.fastcompany.com/44983/strategy-fighter-pilot 15

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What OODA “LOOP” speed really means

Know what to

do

Act Decide Observe Orient

Shared values;

common

experiences;

clear intent,

etc.

Unfolding interaction

with environment

And must be

able to do it

Action

(Test)

Implicit

Guidance

& Control

Feedback

Feed

Forward

Decision

(Hypothesis)

Feed

Forward

Feedback

While learning

from the

experience

Unfolding interaction

with environment

Feed

Forward

Implicit

Guidance

& Control

Observations

Unfolding

Circumstances

Outside

Information

Quickly

understand

what’s going on

Managing uncertainty and decision making – Top Gun style

• The OODA LOOP is well-suited for individual or small-team situations.

• Innovative leaders face the same problem as Boyd’s fighter pilots decades ago: they need to make decisions better and faster than the competition.

• Like fighter pilots, they must: – acquire data

– turn data into insight

– act on that insight

• Innovative leaders must enable entire organizations to have this capacity.

Mark Bonchek and Chris Fussel/Harvard Business Review 2013 17

Dean Lenane: CEO Fisher Dynamics Cologne, Germany

• Took his company from 20,000,000USD to 350,000,000USD in revenue from 2000 to 2011

• OODA LOOP and Boyd’s Concepts were keys to success

http://boydbusinessinnovationconference.com/dean-lenane/

https://youtu.be/rB3hikxs3_A

Konstantinos Spartiotis: CEO AJAT Espoo, Finland

• Industrialized high volume CdTe Crystal CMOS Hybrid x-ray sensor imaging production ( 2-4000 hybrids/month).

• Transformed high end digital dental extra-oral radiographic imaging market globally through patented direct conversion CdTe Crystal CMOS sensor & software technology. 2001-2015.

• 10% EBIT (2015).

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AJAT application focus

• Dental Radiographic Imaging • Extra Oral Laminograhic Panoramic and Cephalometric

• Intra Oral (VTT research Project)

• Medical • Medical/Dental Dose Efficiency/ Radiation safety requires more sensitive

detectors

• Medical robotics need better more accurate data

• Dose Efficient Scanning Applications/ Flat Panel Replacement

• XSCAN

• Fluoroscopy scanning beam digital x-ray ( SBDX)

• Security • MultiView HD Physical Security

AJAT application focus

• Industrial Process Control

• Industrial Process control will continue to grow and expand

• Titanium, Magnesium, Aluminum Parts, Low Molecular Weight Material

• Food Processing • Fishing Deboning System Only x-ray detector sensitive enough to find sigh bone

• PetroChem & Heavy Industrial Applications

• Oil and Gas Pipeline Girth Weld Inspection (Applus RTD)

• Nuclear Power (Primary Circuit Safety Critical Piping)

• Steam Generator/ Reactor Pressure Vessels Tube to Tube sheet welds

• Chemical Industry Heat Exchanger tube to tube sheetwelds(BASF)

Some customers

Industrial radiography challenge/NDT

• Evaluation of several cases has shown that bringing a new inspection technology from invention to commercial success takes as much as 35 years on average(Scruby, 2007).

• An illustrative example of the relative slowness of innovation in NDT is the history of one of the founding technologies of NDT, the radiography method, which uses X-rays or other radiation to make a picture of the inside of a structure.

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Market adoption of new NDT

• Milestone 1: Invention;

the technological principle is demonstrated and mastered.

• Milestone 2: Introduction;

the products are available for sale and can be transferred to others.

• Milestone 3: Diffusion of a standard product;

a standard product can be reproduced multiple times.

ISBN 978-90-8570-795-0 Casper Harm Philip WASSINK 24

Why innovate?

• One of the primary reasons often mentioned for going to a new technology is the relative performance of old and new technologies.

• In most of these cases the performance of the new technology has been evaluated in qualification projects and evaluation trials.

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Conceptual Spiral: Boyd’s Cycle, applied to Science, Engineering, Technology

• Science can be viewed as a self-correcting process of observations, analyses/synthesis, hypothesis, and test. Engineering can be viewed as a self-correcting process of observations, analyses/synthesis, design, and test.

• Technology can be viewed as the wherewithal or state of the art produced by the practice of science and engineering.

• Science, engineering, and technology produce change via novelty in unpredictable ways.

Ginger Richards Kettle Creek Corporation 26

Initative is Leverage

• If you are reacting to your environment, it is controlling and shaping you.

• If you are taking insightful, intuitive, initiative, you are shaping your environment and market.

• Taking initative means having leverage and thus enabling future actions towards your objective based on your initiative.

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What is Operational Risk?

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Operational Risk Management

Operational Risk refers to events unpredictable as to time of occurrence, that impact the operations of an enterprise causing injury, damage, or loss. Operational Risk Management (ORM) is the process whereby an enterprise takes actions to reduce the impact of operational risk events. If no actions are taken in anticipation of operations risks, the enterprise will experience a series of future losses. If funds are allocated to ORM, these future losses will be reduced. The greater the amount allocated, the greater will be the reduction. To optimize resource allocations one must quantitatively evaluate the anticipated operational risks, and then estimate the loss reduction of a range of proposed ORM.

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Asset Management (AM) broken down into the technical services typically used to reduce risk and optimize Life Cycle Cost of a plant

Casper Harm Philip WASSINK ISBN 978-90-8570-795-0

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Annualized loss expectancy (ALE)

Michael John Smith Judith Arlene Resnik

April 5, 1949 – January 28, 1986 April 30, 1945 – January 28, 1986

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Orientation to Risk/Loss

BN Lt.Jg Gary Abe killed 15th December 1986 A-6E Intruder1 60994/NJ-809 Crashed 10 miles south of the Boardman Range, VA-128 LCDR Dave Vaughn, IP

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How do you quantify loss?

LTJG Brian D. Myers,killed 6 May 1986 A-7 Corsair II 157524 NJ-224 off the coast near Eureka, CA, USA with LT Mark R. Pohlmeyer A-7 Corsair II 160727 NJ-201

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Understanding the frequency-consequence risks.

Probably Can Find Cost- Beneficial

Measures For These Threats.

You can try…

• Mitigation,

• Transfer (Insurance),

• Business Resumption

Low $ High $

Infr

eq

uen

t F

req

ue

nt

Well known so already

mitigated. Can’t improve?

High $

Impact,

must act!

Very rare…

OK to ignore

You would not

be here if

threats here

happened.

Management sets

these boundaries

Trivial

Heat Exchanger/Steam Generators

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Better performance going digital • Significant cost and manpower savings

– no consumables (no film purchase and preparation, no development, no chemistry necessary)

– faster testing: fast acquisition time per joint (<10s) and shorter total inspection time (1/10 of conventional testing)

– Handling

– inspection results available instantly

– computer-aided (supporting) evaluation

– no isotopes storage and transportation (no hazardous material)

– smaller radiation safety restricted access area (2x2 m² is sufficient), thus no disturbance of production processes at manufacturing site

– fully digital evaluation and documentation

– wider application area and testing up to higher requirements due to

– increased sensitivity: 0.2 mm pore diameter detectable in Ti and at least 0.3 mm in low-carbon steel detectable, whereas with Ir192 smaller than 0.8 mm cannot be seen

– feasibility of 100% testing (minor added costs, feasible inspection time)

– welding process optimization, due to immediate evaluation of results on-site 36

Codes versus Standards

• The difference between codes and standards:

Code has been adopted by a government body

and has the force of law. Adherence to Code is mandatory

Standards may or may not be adopted by industry groups and companies. Adherence to standards is voluntary

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Record ruling in 2010 gas pipeline explosion in San Bruno, California

Pacific Gas and Electric Corporation has been ordered by the California Public Utilities Commission (CPUC) to pay a record $1.6 billion in fines and penalties.

3.5 million km of pipelines in 120 countries https://www.cia.gov/library/publications/the-world-factbook/fields/2117.html

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Digital radiographic solution

RayScan is the latest development in the field: COST SAVINGS: no consumables SAFETY: dose reduction (up to 90%) Real Time Imaging Results with Digital Archiving, reporting Dramatically reduces the need for re-shoots FASTER

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4

3

Old innovation structure in Europe & USA

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TRL (Tech. Readiness Level) & the “Valley of Death”

Basic

Principles

Observed

Technology

Concept

Formulated

Experimental

Proof of

Concept

Technology

Validation

In lab

Tech valid.

In relevant

environment

Demonstration

In relevant

environment

Demonstration

In operational

environment

System complete

and

qualified

Successful

mission

operations

1 2 3 4 5 6 7 8 9

Fundamental research

Pillar 1: Technological research Pillar 2: Product demonstration Pillar 3: Competitive manufacturing

The KET (Key Enabling Technology EU HLG) Version

Basic

Principles

Observed

Technology

Concept

Formulated

Experimental

Proof of

Concept

Technology

Validation

In lab

Tech valid.

In relevant

environment

Demonstration

In relevant

environment

Demonstration

In operational

environment

System complete

and

qualified

Successful

mission

operations

1 2 3 4 5 6 7 8 9

Fundamental research

Pillar 1: Technological research Pillar 2: Product demonstration Pillar 3: Competitive manufacturing

Was in EU 7FP from 1-4, (pre-competitive research) In EU H2020 from TRL 1-7 with pilot lines, etc.

Scale Description

TRL 1 Basic principles observed

TRL 2 Technology concept formulated

TRL 3 Experimental proof of concept

TRL 4 Technology validity in a lab

TRL 5 Technology validated in relevant

environment

TRL 6 Technology demonstrated in relevant

environment

TRL 7 System prototype demonstration in

an operational environment

TRL 8 System completed and qualified

TRL 9 System proven in operational

environment.

• Information and data organized around similarities.

• Promotes building of new knowledge and innovative practices.

• Organizing information and data around decision points.

• Real-time data and information.

• Promotes efficient and effective decision making.

CLUMPING

CLUSTERING

DECISION

AUTHORITATIVE Research & DATA

SOURCES

New network based innovation structure

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Networks are key to winning

• Recognize the value of relationship networks.

• Identify your personal network of relationships.

• Consciously choose to develop, expand and actively sustain these research, development, application relationships through continuing interactions.

• Stay open to sharing and learning through your trusted relationship network.

Relationship Network Management occurs when we recognize the potential of these relationships and use them to share and learn,

creating and sustaining a conscious flow of information towards an intended shared objective.

Copyright 2004 Alex and David Bennet Mountain Quest Institute

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A leader is best

When people barely know he exists

Not so good when people obey and acclaim him,

Worse when they despise him.

But of a good leader, who talks little,

When his work is done, his aim fulfilled,

They will say:

We did it ourselves. Lao Tzu

The true leader

Dave Bennet, Mountain Quest Institute

The art of success

Shape or influence events so that we magnify our spirit and strength ……. as well as sway others… so that they are drawn toward our philosophy and are empathetic toward our mutual success as research partners, customers and suppliers, as an industry, solving compelling and immediate challenges and enjoying opportunities.

178 49

My personal journey from destruction to non-destruction.....and beyond

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Klaus Peter Finke Harkonen

http://www.dir2015.ugent.be/Programme/

Questions.....Commnents??

Thank you for your time!

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