BHS - 8A - ‘Do They Have a Case’ with Wayne Resnick

AMERICAN MANUFACTURERS SEEK PERFECTION AS QUALITY ISSUES MOUNT
DO THEY HAVE A CASE? WITH WAYNE

Episode Transcript

(00:00):
You're listening to kf I AM sixforty the bill handles show on demand on
the iHeartRadio app coming up at thebottom of the hour. Do they have
a case with Wayne Resnik? Wayneand I start, well, don't we
do that? We've been doing thisfor I don't know how long I have
to ask Wayne that. Do theyhave a case where I will tell you

(00:21):
all the rules which are the same, they haven't changed. Some of the
big stories that we are covering.Russian President Putin just won his I think
sixth term or fifth term, sixyear term, and he won with eighty
seven percent of the vote. Ooh, what a shocker. What a shocker.
And a Costco Oh, Costco dues. That should start with Costco dues

(00:42):
because this is the most important thingyou can imagine whenever Costco makes a change.
Here's the change. If you werenot a member of Costco, you
could go to the outside food court, the ones they have outside and buy
those hot dogs and drinks for abuck fifty the chicken bake which I just
bought it a couple of days ago, and a drink, and they went

(01:03):
to Diet Pepsi. They didn't goto Diet Coke they switched over, which
I couldn't believe traders and anyway,they now demand to show your membership when
you buy food only members And forthose of us who are good, get
out. I don't want you infront of me in the line. In

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light of what's happening with Boeing andthe airline, the airplanes themselves, and
we got all kinds of issues thatdoor plug blowing off and the problem with
the Max, the super Max eightwhere you have two planes fall out of
the sky. There is a lotof attention has been brought to American manufacturers

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and there's two major things that havegone on. And as I explained earlier,
before I went to law school,I actually applied and was in school
for my MBA at cal State Northridge, and I was thrown out, not
because I didn't know what I wastalking about, which is one of the
reasons, but what ended up happeningis I couldn't pass calculus that was required

(02:07):
need to be averaged. So Iresigned before being thrown out. It's like
Richard Nixon resigning before he's impeached andthrown out of the presidency. It's one
of those things. So one ofthe case studies. And this is what
business school does it You look atcase studies, various ways that businesses have

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done it right and business has doneit wrong. Do you remember the tail
in all murders that happened where youhad that guy? I think it was
in Chicago put arsenic into the Thailandall capsules themselves, and a few people
died, which is why, bythe way, now those bottels are sealed

(02:51):
beyond sealed, and it's very difficultto get capsules. You now get cap
lets, you know, solid pills, because that's it's hard to put our
snake in those ones. And soI think it was Johnson and Johnson that
makes Tyland all. You can lookthat up. I'm not gonna do,
Siri, because I because I'm justnot go ahead. I dare you,

(03:15):
go ahead, I dare you,Hey, sirih what company makes Thailand?
All? Screw you? Bill Jackasked, I'm not your secretary. Okay,
thank you, I'm wrong McNeil Laboratories. Okay, they made tailand all.

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In any case, in business school, we studied cases where companies completely
blew it. And companies did agreat job with Tyland all they were actually
they are giving a lot of credit. They instantly went out in front of
it. They instantly said, here'swhat we're doing. Instantly they were totally

(03:57):
transparent, and they're giving kudos forthat. And then their companies sort of
hide what they're doing, don't gotransparent, want to gloss it over,
and they are nailed. So oneof the other cases of business school,
and as I said, there aretwo major huge innovations. One of it's

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still going on and the other onechanges completely. Actually there are three.
At the turn of the last century, in the eighteen hundreds, there was
a guy I think his name wasTaylor, and he did case studies.
He actually started doing timing with workers. How long did it take workers to

(04:41):
assemble plants? To assemble products atplants? And he was timing them and
the issue didn't get a whole lotof information. I mean, he's considered
one of the fathers of business,certainly of business measurement. And it turned
out the workers did great because theyknew they were being timed and they knew
they were being looked at, andthe russ of them did crap. So

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that started the science of manufacturing.The other major thing that happened, and
this was back I think in theseventies, and that was inventory in time.
So you had a car manufacturer GeneralMotors forward, and they would have
warehouses of spare parts or warehouses ofparts. So let's say they put seats

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in, and car manufacturers don't manufacturethe seats, the bolts, the steering
wheels. They outsource that. Imean, they can't manufacture everything. So
you have companies that supply that,and they would sell to GM, for
example, and GM would keep thesemassive stocks of car seats, and then
they switched where it's delivery in time. They are delivered those parts. Those

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car seats for example, are deliveredjust in time to put in the cars.
So you have the massive manufacturers thatdon't keep inventory. It's all delivered
literally as the cars are going downthe assembly line. Now that takes incredible
timing, and when it works,it's brilliant. And that has sort of

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that has matured to the point whereokay, that one works, that makes
all the sense in the world.That saves a ton of money. And
when I come back, I wantto talk about the next one that has
fallen apart. And now companies arelooking at how important this is and how
it connects to what Boeing is doingand how it connects to what the car

(06:40):
companies are doing. And I'll explainthat before Wayne comes aboard at the bottom
of the hour. This is KFI. You're listening to Bill Handle on demand
from KFI AM six forty. Aswe continue with the program, and at
the bottom of the hour, dothey have a case with Wayne? We
do that every single Monday. Ofthe big stories that we are looking at.

(07:02):
President Putin of Russia remains President Putinof Russia his fifth sixth year term
and he is I think seventy orseventy one, and so he's good for
another twenty years. I mean,certainly he'll win another six year term and
after this one, and that putshim in his mid eighties. And believe

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me, if Joe Biden can runat eighty one, Putin can run at
eighty five, and so he isset. He'll be by far the longest
running leader of the Soviet Union.Well now Russia used to be the Soviet
Union, so he wins shocker.Former Vice President Pence Allowance announced last week
he was not endorsing Donald Trump,and the reason he gave is that he

(07:48):
disagreed with what Donald Trump did onJanuary sixth, just disagreed with it.
Are you kidding that crowd was callingfor Mike Pence being hanged? And you've
got the president, the former president, saying that those guys were patriots that

(08:09):
were screaming for Pence to be hanged. So now he's come back and said
he went way over that one andsaid, Okay, the guy doesn't believe
in the constitution and he just followingthe anti Trump mantra, which is kind
of interesting. And then the biggestnews of all of all Costco of course,
and Costco you have to be amember now to go to the food

(08:31):
court and buy your hot dog.Used to be they'd sell to anybody.
Now you about your membership card,which is great because I'm a mender,
a member, and those bastards infront of me, if they're not members,
get out, get out of mylife. Okay. Back we go
to what's happening to American manufacturers?And I told you before the break that

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there have been a couple of majoradvances made at the turn of the century.
Back then or in the eighteen itwas time study for the first time
done about manufacturing. How long ittook to make a particular product, and
that was the first scientific approach tomanufacturing. And then I talked about the

(09:13):
delivery in time and I don't knowexactly what they call it. That's one
of the reasons I got thrown outof business school just prior to law school,
is that in time delivery. Insteadof manufacturers major manufacturers, car companies,
airplane companies, etc. Keeping warehousesfull of parts to put in the
vehicles in the airplanes, what theydo now is the company's manufacture them delivered

(09:39):
them as those parts are needed,so there is no huge inventory and of
course that saves a pile of moneyand it makes it very efficient. All
right. The other thing that happened, and this started in I think the
seventies, and that is quality issuesgoing for perfection. G Has Boeing ever

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heard of? That each point ofmanufacturing going for utter perfection, And that
is a philosophy. It can bevery expensive. For one thing, you
do as much robotics as you possiblycan, because robots don't make mistakes humans
do. And if one follows utterperfection, then warranty issues you don't have

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to deal with. Then theoretically youdon't have planes falling out of the sky.
You don't have cars that are recalledby the millions, and that used
to be much more prevalent. Andthen what happened is everything became outsourced,
outsource, outsourced, outsource. Casein point, you've got Boeing. Of

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course, they used to manufacture theirown fuselages, and you've seen video of
the workers in the airplane factories rivetingall those fuselage parts, manufacturing them right
there. Well, Boeing doesn't manufactureits own fuselage for the seven thirty seven.

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They outsource, and there's a companycalled Spirit, not Spirit Airlines,
but Spirit that manufactures that fuselage.And what they're finding out, for example,
is parts were missing, and thenBoeing, on top of that,
did horrible maintenance because the manufacturing ofBoeing of the parts the airplanes. Now,

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after McDonald Douglas bought Boeing, Ithink in nineteen ninety seven, you've
got engineering. Total perfection of manufacturingwent straight out the window. It was
all about being cutting or being counting, being counting with being cutting, and
it has totally changed. And noweverybody now business realizes, oops, oops,

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maybe we don't want recalls, Maybewe don't want airplanes falling out of
the sky. Maybe we want maintenance, maybe we want to go back to
complete utter perfection. And that isnot just a philosophy, that's not just
saying it is a way of doingbusiness on massive scale. It is turning

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around a philosophy of a manufacturing company. Also service companies too, And it's
so no longer are you talking aboutmaking money, which of course you have
to make, but utter perfection isbetter for the sales, it's better for
customers, and you make actually moremoney because you're not talking about fixing it

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after the fact. So once youinvest, once you've bought the robotics,
and you establish that policy. Anda lot of small companies that supply our
suppliers. I ran across the oneguy who manufactured the screws for airplanes,
and screw screws for airplanes is verydifferent than screws you get in the hardware

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store. Every bit of the manufacturingprocess has to be noted, has to
be reported. I mean, it'sa big, big deal. And he,
like I had a ten million dollara year company, it says relatively
small company. And so Boeing andthis was for Boeing Aircraft. I think
for certain parts of their assembly theyrelied on him, and if he wasn't

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super carefully, if he didn't dothe job he did, you'd have a
faulty part. And so a philosophyof utter perfection, and it is a
way of doing business, it's away of life. And they're moving back
to that. Why well, becauseyou don't need cars blowing up, you

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don't need call cars with two hundredand fifty thousand recalls. You certainly don't
need airplanes falling out of the sky. And those are just the ones we
know. So we're going to returnto what is perfection as being one of
the ultimate goals in addition to makingmoney, and maybe even is more important

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Boeing. It used to be engineeringwas more important than making money until Douglas
spotted and then the being counters camein. So makes a lot of sense,
and I'm glad we're going to gothere. God, I wish I'd
studied that. I wish I hadtalked about that in business school because I
wouldn't have been thrown out. Probablyyeah, I would have coming out.

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Do they have a case with Wayne. We'll do that the bottom of the
hour as which is now, andwe do that every Monday, you're listening
to Bill Handle on demand from KFIAM six forty. At the end of
the show, last two segments,it is do they have a case?
Wayne and Me? Good morning,mister Handel, Good morning, sir.

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Wayne having been in the criminal justicesystem, the federal criminal justice system for
what almost thirty years, yes,twenty eight and a half, twenty eight
and a half years, and Ihaving been in the judicial system sort of
kind of for wow, when Iwas sworn into the bar. My goodness.

(15:28):
You might want to clarify that Waynewas in on the good side of
things. No, No, Iwasn't on the good side. Oh no,
but I'm saying that it made itsound like he was doing time,
you know, doing it, Oh, thirty years at a four yard Oh
you know what, that's great forpeople to think that. It never even
occurred to me. Thank you forpointing that out, Neil. I appreciate

(15:48):
it. Okay, Wayne, let'sdo it. Do they have a case?
All? Right? Here we go. This is a local case.
It happened to San Bernardino with theirChild and Family Services Division day. This
mom puts her baby on the bedand goes to wash her hands, comes
back, baby's on the floor.Don't know how baby, sorry, oh

(16:11):
yeah, yeah, yeah, okay, but fell off the bed. They
take the baby to the hospital immediatelyand they look at the baby and they
check the baby. They don't doany X rays, they don't do a
CT scan or anything like that,but they look at the baby and then
they go home. In the meantime, one of the nurses decides, you
know, the medical personnel are whatthey call mandatory reporters. If they believe

(16:36):
right that they're seeing signs of childabuse, they have to report it.
One of the nurses decides she's gotto call up Children Family Services and she
reports the incident and it gets assignedand immediately the social workers draw up They
call it a warrant, and theycall it a warrant of detention. But

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what it really is is it's athing that allows us to take the kid,
and a judge approves it, andnow they're like, all right,
we're gonna take this kid and we'regonna find out what's going on. Meanwhile,
the mother did go meet with theChild Family Services people, and nobody

(17:22):
accused her of abusing the child.They had a discussion that the Child Family
Service people thought she should take thechild to Loma Linda Medical Center for another
checkup and a CT scan, Andthe mom said, you know what though,
that one of the doctors at thehospital that we went to, I
think it was high Desert, theywere concerned about the radiation on a small

(17:48):
child from doing a CT scan.So like there's you know, there's a
difference of opinion here. She hadno idea, and they didn't tell her
that if she didn't do what theysaid that they would go get this warrant
and take the baby away. Sothey get the warrant, they go to
serve the warrant, nobody's home.They come back the next day, nobody's
home. They come back one moretime in the afternoon, nobody's home.

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So they go ahead and escalate itto an actual custody hearing, and to
get to the point, they takeaway the baby for two months, and
then the baby is given back andnothing more happens because you know, really
they don't have a case against thislady. So the family sues and says,

(18:33):
you violated our constitutional rights because younever even told us when this hearing
was happening, and due process sayswe have a right to know when these
hearings happen, and the hearing happenedwithout us there because you never told us.
And they say, oh, wehave full immunity because we're kind of

(18:56):
like prosecutors, and you can neversue a prosecutor for their decision about who
to prosecute. And if you don'tlike that, we have qualified immunity because
even if it did violate your rightsthat we never told you when the hearing
was nobody ever said that that wasa problem before. And the lower court
said, no, no, youguys. You guys are getting sued.

(19:19):
You may not lose, but you'regetting sued. So they appeal to the
Ninth Circuit. And what do youthink, does this family have a case
or do these social workers have immunity? Okay, let's start with the fact
comparing it to prosecutors, that's acriminal action. This was a civil action,
so that that puts it in adifferent case. Also, did they

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act in good faith? And whenit comes to protecting kids, not only
is the law pro protecting kids,but public policy is to protect children.
And you go beyond, way,beyond the pale when it comes to that
protecting children, is that the ultimateultimate area of the law the high end.

(20:02):
Now do they have a right tohave that hearing? Could they have
just arbitrarily made the decision? Neil'swife does these and Neil Tracy has the
ability just to take a kid rightthere? Right? Well, no,
it's a voluntary system of sorts.But what Wayne said was right to Mike.

(20:26):
And I'm not a social worker,but it does go through a judge.
The judge makes the decision. It'snot the decision of the social worker.
The social worker. No, Iunderstand that the judge. And that's
predicated that's predicated on And by theway, is that hearing in front of
a judge or is in front ofan administrative officers in front of a judge?
Okay, and the well, whenyou're talking about in front of a

(20:47):
judge, here's where I'm going togo with that. If there is a
hearing to take away your child,I think the parents must be informed that
there is involved and they have tobe able to argue that the state or
the county should not have taken awaythe child. I think the parents win

(21:08):
on this. The parents win.Now, what they've won at this point
is the right to pursue the lossor do they still have to make their
case if it goes to a jury. But yes, the family has a
case. These two social workers tried, they tried to get immunity. Can't
get it right. Quick story,My daughter Barbara was acting up one day,

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she must have been eight years ofage, and I said, okay,
over in the corner. We haveactually we have a round tile thing
that's in the middle of our foyer. And you go into the corner,
you go into the circle. Youstand in the circle. You've seen that,
Neil our tile. Yeah, it'slike, no, it's not a
rotunda, it's a little tile rowround, just a thing on the ground.

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The thing on the ground, yeah, And that was the circle.
It's in the shape of a circle. And so I tell Barbara go go
stand in the circle, and aseight year old, she goes no.
I said go stand in the circle. And I remember she was acting up.
She literally said to me, I'mgonna call child protective services. This

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is my eight year old. AndI'm thinking, how does she even know
about child protective services for making herstand in the corner or in the circle.
So I handed her the phone.I said, go right ahead,
and by the way, the countymay take you away from us, and
you're gonna go into a step fostersituation. And if you think Cinderella had

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it bad with the stepsisters and thestep mother, you can't even wait till
what's gonna happen to you. Okay, okay, I'll go to the circle.
Child Protective Services, all right,we're going to come back. Foster
parents are poor. God, yeah, yeah, they do it. A
lot of them do it because theyneed the money. Not all of them,

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but they need the money. We'recoming back. We'll finish. Do
they have a case with Wayne?You're listening to Bill Handle on demand from
kf I am six forty. Beforewe go back to Wayne real quickly.
I was telling the story about whenmy kids were little and I instead of
putting him in the corner, Ialways say said, go to the circle.

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And in my foyer in the entranceto the house, there is a
tile inset in the shape is acircular tile inset. We put it in
there with various designs in it,and that would be where the kids would
go into the go to the circle. You know, they're twenty eight to
this day. When they come intothe house, they go around the circle.
They won't they won't cross it all. Right, back, we go

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to Wayne Resnik and do they havea case. As we end on a
Monday, March Monday, March eighteenth, all right, put on your football
hat. Bill. The coach atBerkeley High School, not the one not
up north, this is in SouthCarolina. The coach at Berkeley High School,
I should say, the former coachdecided he has a no punt policy.
Doesn't matter what's happening, he willnever have his team punt. A

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lot of people hate it. Itwas controversial. He is eventually told you're
not going to be the football coachanymore. You're going to be a counselor.
Oh okay then, and they neverannounced publicly why they were doing this
to him. Then somebody sent anemail to a bunch of people and said,

(24:37):
oh, because he's such an incompetentfool of a football coach. So
he sues for defamation, and theschool district says, oh, no,
you're a public official, and ifyou're not a public official, you're a
limited public figure. And so thestandard for defamation is super high. And

(25:02):
somebody might well believe that you're anincompetent football coach because you will not have
your team punt, ever, andtherefore you have no case. And he
says, I'm not a public official. I'm not in charge of governance or
laws or zoning. I'm in chargeof football. That doesn't make me a
public official. And I'm not alimited public official, because a limited public

(25:23):
official is someone who voluntarily injects themselvesinto some issue. I didn't do anything
except try to coach this team.I'm neither of these. The bar is
low. You don't have to provemalice for me. I have a case.
Does he have a case? Iknow, and I'll tell you why.

(25:45):
Okay, the way I see it. First of all, for the
purposes of this case, I amgoing to argue he is a limited public
official because he is a coach,and the coach is obvious to everyone,
and parents on a regular basis arescreaming about the competence of a coach.

(26:06):
They do it from the stands,they do it on email, they do
it to each other, screaming,you are incompetent, you don't know what
you're doing. That's I think theprice of being a coach, because that's
simply what happens as far as defamationis concerned. I don't think it goes
that far. As a matter offact, I'm going to argue that when

(26:27):
he became a coach, he wasopen to and knew that he was going
to get that kind of grief.I can't imagine there's a coach out there,
a college coach, a high schoolcoach, certainly a pro ball coach
who is a public figure. Sobased on that, I think that he

(26:47):
has no case. Now let's goto the defamation. I don't think that's
defamation. Hey, you're blind toa referee, okay, a baseball referee
behind the plate, yet blind youcan't see anything. Hey, I don't
think that's defamation. So he putall of that together and he does not
stand a chance. And if mykid is playing football and the coach doesn't

(27:11):
let the kid punt, I'm gonnastart yelling and screaming about him being incompetent.
So that's sort of a given.That's the cost of doing business when
you become a coach. Yeah,he loses, and you know they he
sold his house and moved out oftown and all ought because he said he
couldn't find a coaching position anywhere,all because of a strategy decision that he

(27:37):
would never punt. Well, yeah, that's by the way, him not
punting is ridiculous. I mean Iyell at him. I would not only
call him incompetent, I would callhim blind just for the hell of it,
you know, as a as aactual counselor in that school. When
he got switched, he said onlycollege, no trade schools. Okay,

(28:00):
that's considered a punt. Yeah,no, I get that. Yeah that
didn't work. All right, guys, we are done completely. We're back
again tomorrow, same team. Waynewill see you next week on a Monday.
Neil Amy and producer extraordinaire and meAmy starts tomorrow morning at five am

(28:21):
for wake up call and the restof us come aboard right up until now.
Kf I Am six forty live everywhereon the iHeartRadio app. You've been
listening to the Bill Handle Show.Catch my Show Monday through Friday six am
to nine am, and anytime ondemand on the iHeartRadio app.