Lean Insider

Problem Solving and the Lean Journey

2012-05-07T14:08:00.002-04:00

Samuel Obara has published a great new book titled Toyota by Toyota: Reflections from the Inside Leaders on the Techniques That Revolutionized the Industry. This book comprises chapters written by former Toyota associates from locations around the world detailing their experiences learning, understanding, and leading Lean culture and methodologies.

Samuel was the main editor and composed a chapter on the problem-solving PDCA (plan-do-check-act) method. I recently asked him: "Why is problem solving so important along the Lean Journey?" Here is his response:

When introducing and implementing Lean techniques, one will certainly face many problems. For example, we cannot connect processes without hitting several problems; we cannot lower inventory levels without unveiling new problems; we cannot adjust to Takt time without encountering all sorts of problems.

With so many new problems being created so fast, solving them in an effective way becomes vital to solidify the success of each step in the Lean journey. Adopting early a methodology that has been proven effective can avoid the frustration of the constant hitting or missing. In today’s competitive environment, the winner is whoever misses the least.

One question that can start an effective discussion is: How well are we using the problem-solving methods that are widely available and have been proven effective? Sometimes the impression is that we overlook the connections between the facts and always end up with the solution we had preconceived way before we started.

Another question is: Why are we so afraid of problems? In many organizations people simply abolished the word problem. This forbidden word has now officially been replaced by opportunities. This attitude tells me people really have great fear of problems. As my colleague and mentor Darril Wilburn always says, "Opportunities are taken, problems must be solved.” He reminds me that problem solving is such a fundamental and intricate element of TPS/Lean that Toyota calls problem solving "the Toyota Business Practice." In reality, the common job description of all associates is problem solver.

Because a Lean journey implies that problems will always be created, we must ensure that we develop problem solvers that truly state the problem and understand the root causes. The better we are the less we fear.

How does problem solving function in your company? Does your company use a specific methodology?

Psychological Barriers to Lean Initiatives?

2012-04-26T10:32:00.000-04:00

Chris Ortiz has published many books on kaizen and its benefits, but his recent book -- The Psychology of Lean Improvements: Why Organizations Must Overcome Resistance and Change the Culture -- covers an entirely different area of Lean initiatives: the psychology behind why businesses avoid Lean transformations. I recently spoke to Chris and asked him, "Why are there psychological barriers to Lean initiatives?" Here is his insightful response:

Change is never easy. Even in micro-amounts, we as humans avoid change. Even though positive transformation can result, changing paradigm, breaking old habits, and discarding established routines can be tough transitions for anyone, management included. Resistance to change will come in a variety of forms and we as consultants can see it at all levels.

You can sense the anxiety in people when their work area is being changed and more severally when there is no real reason why (or at least in their minds). Front-line workers may or may not see Lean as “leaning people out.” Improved productivity and reduced cycle times may be perceived as less work, and then less jobs. Unless the company is nearing complete bankruptcy, Lean is not intended to eliminate jobs.

One psychological barrier is the concept of victimizing. Victimizing is the sense people have that the company is reducing waste with no real reason. It almost borders on a feeling of being personally attacked. People become very attached to their space and oddly enough, to things they don’t own. There is sense of oneness with the means at their disposal. Often it is the only place at work they feel they have control over. As the team is sorting tools and removing what is deemed unnecessary, I often hear from resistant workers, "What are YOU going to do with MY tools?" This is a good example of what you will have to deal with. People often find something "negative" or out of place to recognize and not the effective aspects.

This is just part of the resistance to change even if it does not involve the person making the comment. Fear of change. We all have it. We all deal with it differently. Some of us accept change immediately, some take a little time, others never get there.

What do you think of Chris' thoughts? Does his summation reflect your experiences? How have you overcome the resistance to improvement? Lean has been labeled "anti-intuitive" -- Is that a strong factor that leads to resistance?

The Self-Balancing Line Method -- The "What" and "Why"

2012-04-19T10:03:00.002-04:00

I met Gordon Ghirann about five years at an Association for Manufacturing Excellence (AME) conference. At that time, he was giving a presentation at the conference about the benefits of "Self-Balancing" line method. Now, in 2012, he has published a book on the method titled The Basics of Self-Balancing Processes: True Lean Continuous Flow.

I recently spoke with Gordon about this method and asked him quite plainly: "Why should the 'self-balancing' method be implemented at manufacturing organizations?" Here is his response:

First, it is quick to implement and very flexible. This is important if you are in a start-up mode and/or having frequent changes to your processes. The laborious task of trying to exactly divide the work content evenly is eliminated. With Self-Balancing, adding or removing work content does not cause your line to go out of balance, nor does adding or removing operators.

Second, even if your line is fairly stable, Self-Balancing has consistently been over 30% more productive than traditional line-balancing methods. This occurs mainly because all operators are allowed to work to their full potential (with all their natural variances), and the wasteful process of repeatedly setting the unit down between operators (only to pick it up later) is eliminated. The hand offs between operators with Self-Balancing promotes teamwork and communication, as well as breaking up the dehumanizing and repetitive work normally associated with assembly lines.

Finally -- but there are many more -- you should implement Self-Balancing because it works. Whether it is an assembly line, service operation, or moving anything one piece at a time between people... it works, Traditional line balancing has many flaws, and is not designed to create continuous flow; never has, never will. Self-Balancing was developed to create flow. It has a bias for flow. Anything short of that is not Self-Balancing, and seeing true continuous flow for the first time is a beautiful (and nearly perfect) thing. It's what you have been waiting for.

What do you think of Gordon's remarks? I'd be interested in hearing from anyone who has used the Self-Balancing process and whether it has produced greater results than other line-balancing methods. How has it affected inventory and variation?

What is 3P and Why Should I Use It?

2012-03-29T09:27:00.001-04:00

I recently spoke with Allan Coletta, who is the author of a new book titled The Lean 3P Advantage: A Practitioner's Guide to the Production Preparation Process, and asked him directly: "What is 3P and why should it be used when developing new products?" Here is Allan's full response:

Lean 3P (Production Preparation Process) is an event-driven process for developing a new product concurrently with the operation that will produce it. 3P is a game-changer that results in better products that require less initial capital investment and lower ongoing costs.

Previously, Lean had been largely relegated to fixing existing problems in our manufacturing plants. 3P takes Lean principles upstream into the new product development arena, and applies them liberally at the point in the process where they can have the most influence on both product and operation. Enormous advantages are created by deeply understanding customer needs and developing alternative designs that will create breakthrough benefits. Time is no longer spent trying to fix “baked-in” problems.

New products and new operations require many functional groups working together, but traditional development is typically a series of successive sub-optimizations and hand-offs. Time pressure and a passion to quickly reach a design decision squashes innovation.

Lean 3P brings stakeholders together and sequentially takes them through a process where products are developed alongside of the manufacturing operations. Design engineers interact with process engineers, marketing, and research & development team members; each declaring their preferences and capabilities and developing alternative options against agreed criteria. Manufacturing and maintenance teams weigh in with preferences for operability and maintainability, standardization, ergonomics and flow.

The Lean 3P advantage is about rapid learning, collaboration, and innovation, and it works with new or established products and on any sized project. Companies in virtually every industry are applying Lean 3P to drive competitive advantage.

Why do you think of Allan's thoughts on 3P? Have any of you applied 3P when developing new products? What were the results?

GE Goes Lean In Louisville

2012-02-15T10:58:00.001-05:00

This very interesting article about GE Appliances' new hybrid water heater manufacturing facility in Louisville, Kentucky was just posted on the BuildingOnline site yesterday. Other than the potential to create 1,300 jobs in the USA by 2014, this facility has the distinction of producing the first GE Appliances' product -- the GeoSpring™ Hybrid Water Heater -- "designed and built using Lean manufacturing principles."

Although the piece mainly focuses on the benefits of the new product, it does point out that the that Lean initiative there"uses a cross-functional team of employees - including hourly manufacturing workers - to design the product and the manufacturing process." I'd actually be quite interested to hear more about the leadership and strategy that exists within the facility because these are the areas that sustain the initiative for the long term. It's up to the leadership now -- right at the beginning -- to build and hone the continuous-improvement culture throughout all areas of the facility. The application of some waste-reducing tools will generate some initial improvements and foster teamwork, of course, but it's the example set from "top down" that reduces that risk of the initiative stalling after a short period.

What do you think of GE Appliances' plans for this new facility? What do you think will be the key factors to a successful Lean system at this new manufacturing plant?

Here's a GE-produced video that focuses on the collaboration and teamwork at this facility:

The Denver Health & Hospital Authority -- The Results Are In

2012-01-25T14:10:00.001-05:00

Over on the Hospitals and Health Networks site, I read this great article about the Denver Health organization's incredible benefits resulting from its six-year Lean journey. Patricia A. Gabow, CEO of the Denver Health and Hospital Authority, believes the $135 million financial benefit since 2006 is a result of the adoption of Lean management techniques. In addition, in 2011, the hospital evidently saw "$46 million in financial benefits from Lean projects."

Other than the amazing benefits discussed in the article, I found this detail quite interesting: "There are 16 value streams and an organized method for picking improvement projects. Some are short term, others extend over multiple years, such as revenue cycle, the OR and community health. Each value stream has an executive sponsor and a steering committee that meets monthly. Gabow reviews metrics for all of the value streams and rapid-improvement events every month."

What do readers working in the healthcare industry think of this format for value stream maps? Are your maps used in the same fashion?

After winning the coveted Shingo Prize for Operational Excellence (the first healthcare organization to achieve this feat) , Denver Health now offers its own Lean Academy. Check out the video presented at the Shingo Award ceremony:

Lean and Agile Software Development: How Do We Make It Happen?

2012-01-10T13:08:00.001-05:00

Recently, I had the chance to speak in person with Michael Levine, author of a new book published this past December titled A Tale of Two Transformations: Bringing Lean and Agile Software Development to Life. His book provides entertaining and thought-provoking guidance on making organizational change.

I asked Michael about one of the paradoxes of bringing Agile software development into organizations -- Although Agile preaches the centrality of the self-managed team, in practice many Agile migrations are imposed top-down by strong-willed executives. Can this really work? Here is his response:

Organizations vary dramatically from each other, and these variations must drive the approach to introducing Lean and Agile techniques effectively. An organization that is performing adequately and for which the risk of disruption is high must be addressed differently than an organization that is performing unacceptably and for which change is urgent.

That is why I draw out two approaches to change: Drive People, a top-down approach focused on processes and tools, and People Driven, an enabling approach focused on people, learning, and organizational design.

Ultimately agile success depends on becoming People Driven – aligning the skills and perspectives of the team members to the work at hand, with broad understanding and embrace of Lean and Agile principles. Some organizations can begin their Lean/Agile journey with a low-risk, gradual People Driven approach from the start; others do not have the capability or the time and need the kick-start of a Drive People approach. Both can work, so long as the end-game is a self-sustaining, continually improving People Driven culture.

What do you think of Michael's points? Do any readers who work in software development have any opinions or experiences to share in regard to Agile software development in a Lean organization?

The Visual Author

2012-01-03T14:21:00.002-05:00

Happy New Year! I hope everyone had a healthy and happy holiday season.

CRC Press, the parent company of Productivity Press, recently established a YouTube channel that will feature many Productivity Press authors discussing performance-improvement topics as well as methodologies explored in their respective books. I've decided to feature a sample of some recent videos in this blog post.

Patrice Boutier speaks about his forthcoming book The Seven Kata: Toyota Kata, TWI, and Lean Training here:

Robert Hafey discusses Lean Safety: Transforming your Safety Culture with Lean Management here:

Larry Fast discusses The 12 Principles of Manufacturing Excellence: A Leader's Guide to Achieving and Sustaining Excellence here:
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Daniel Markovitz discusses A Factory of One: Applying Lean Principles to Banish Waste and Improve Your Personal Performance here:

Please let me know your thoughts on these videos as we plan to shoot more and suggestions are always welcome.

"Lean Versus MRP" or "Lean and MRP"?

2011-12-21T10:50:00.002-05:00

I attend many Lean conferences throughout the year that focus on different areas of the supply chain. Presenters there often state how the concept of material requirements planning (MRP) is outdated and works as a detriment to Lean thinking. In addition, there have been many articles published that discuss the "Lean versus MRP" debate. I recently had an email conversation with Derek Singleton about this very topic. Derek is an enterprise resource planning (ERP) market analyst and writes for the Software Advice website. He has some interesting ideas about the use of software during the planning process, and I'd like to share his thoughts here:

Three Ways Manufacturing Software Can Adjust to Lean Principles

There’s a long-standing debate between manufacturing planning strategies. The debate is between proponents of material requirements planning software -- better known as MRP software -- and lean manufacturing advocates.

The crux of the dispute boils down to whether sophisticated software tools are needed to adequately plan production. Proponents of MRP software believe that today’s complex manufacturing challenges require formal planning tools to get an accurate picture of the production requirements. Lean advocates, on the other hand, argue that these planning tools actually get in the way of accurate planning because they’re too slow and transaction-intensive to pace to actual consumption, or adjust to demand fluctuations.

Three Components to Incorporate in Manufacturing Software

I see three main ways that manufacturing software can evolve to adapt to the demands of lean manufacturing. Each way focuses on bringing lean principles front and center of manufacturing software packages.

1. Make Value Stream Mapping a Core Software Component - One of the most important tools in lean manufacturing is create a value stream map to outline the flow of information and materials in the manufacturing plant. Modeling how information and materials flow through a shop floor will allow manufacturers to more easily identify production bottlenecks.

2. Monitor Cycle Times Intensely - The most important metric to know in manufacturing is how long it takes for materials to arrive on the dock and to leave in a completed product. In order to improve cycle times, these times need to be monitored and tracked. A subset of monitoring and tracking cycle times is keeping track of production status.

3. Locate Key Places to Add or Remove Inventory - While there’s ample functionality in manufacturing software for determining what to stock and how much to stock, there is little functionality to help manufacturers figure out where to stock. Functionality that can tell a manufacturer where to stock will help them figure identify the best places to protect against volatility, which will ultimately help avoid product shortages.

These are a few ways that I can see manufacturing software changing to adapt to the requirements of lean manufacturing. However, I’d like to hear your thoughts. What needs to change in manufacturing software to adapt it to lean manufacturing principles?

What do you think of Derek's ideas? What are your views on the role of MRP within a Lean initiative?

What are We Learning from Our Projects?

2011-11-28T11:36:00.001-05:00

Recently, I had the chance to speak in person with Dr. Willis Thomas, author of a new book published in November 2011 titled The Basics of Project Evaluation and Lessons Learned. His book provides the framework to conduct lessons learned using the Project Management Body of Knowledge (PMBOK) as a standard.

When I asked Willis why he chose the PMBOK approach for lessons learned he replied:

Project managers trust and are comfortable with the PMBOK for five Process Groups (Initiation, Planning, Executing, Monitoring/Controlling and Closing) and nine Knowledge Areas (Communications, Cost, Human Resources, Integration, Procurement, Quality, Risk, Scope and Time). Many project managers run projects using these categories.

The approach I take is very simple; to overlay what has been done right, done wrong and could have been done differently using these 14 process group and knowledge area categories. This matrix, creates a 5x9 table of 45 categories, with three variables per category (right, wrong, differently), which results in potentially 135 elements for review.

This compartmentalizes the collection process for lessons learned so that it is situation-specific. The project team can then determine what lessons to review -- that is, what went right during project initiation regarding communications. Of course, each factor should allow for comments to detail characteristics of the lesson.

A primary goal for lessons learned should not only be to avoid making the same mistakes in projects (summative reflection), but to strategize for improvement (formative thinking). This approach can help project managers to be consistent in their approach to evaluating projects.

What do you think of Willis' advice? Have any of you used this process?

To Be, or Not to Be... A Project Manager

2011-11-16T10:30:00.001-05:00

At the recent Association for Manufacturing Excellence (AME) conference in Dallas, I had the chance to talk with Adil Dalal, author of a new book called The 12 Pillars of Project Excellence: A Lean Approach to Improving Project Results. An important part of his book essentially provides the "5 Powers" needed to transform from a project manager to an advanced project leader. In addition, it provides groundbreaking techniques to achieve excellence in project leadership that can result in six sigma type results or failure-free projects.

I basically asked Adil what it means to be a project leader instead of a manager, and here is his response:

A project, by definition, is a "temporary" endeavor undertaken to create a "unique" product, service, or result. Thus, every project is like an expedition through the unknown terrain to reach the summit of success. When something "unique" is being created – how can we expect to manage it? Are we not required to lead the "unique" transformation effort? Today, most project managers fail because there is too much "management" and too little "leadership" during the journey. Only project managers who undergo a paradigm shift and transform themselves into project leaders by providing guidance and direction to their team can be truly successful in their expeditions every time. Attempting to manage a project is like trying to hang on to the tail of a wild tiger. The focus is always on countering the tiger’s every move to avoid the fatal jaws. Thus, a project manager is constantly in a reactive mode and there is no time for creativity. On the other hand, leading a project is like riding a tame tiger. Although there is a healthy level of anxiety and adventure, the focus is on guiding it in the right direction. Thus, a project leader is always proactive.

What do you think of Adil's ideas? What characteristics do you see lacking in most project managers? Does your organization have more project managers or project leaders?

Not Only Achieving the Excellence, But Sustaining It...

2011-11-03T10:19:00.002-04:00

Some surveys conducted during the past 30 years continue to find that upwards of 80% of the companies that start down the road to manufacturing excellence, using techniques such as TQM, Agile Manufacturing, Theory of Constraints, Lean, Six Sigma, Lean Six Sigma and others, end up stalled within two to five years. All these journeys probably began very seriously with high hopes for continuous improvement (CI), but early results eroded and hopes of sustaining long-term results faded. Based on the short-term results, every company that has used the various tools has found that they work. The point most often missed, however, is that continuous improvement is not, nor will it ever be, solely about the tools.

I recently asked Larry Fast (author of a new book titled The 12 Principles of Manufacturing Excellence: A Leader's Guide to Achieving and Sustaining Excellence): What does it take for companies to learn how to sustain their CI journey? Here is his response:

My book devotes almost no time on the use of tools but rather to those critical “infrastructure” items that must be in place for an enterprise to sustain the improvements for the long term. For example, the principles of safety and good housekeeping (#1 & 2) focus on the trust and discipline necessary to change culture while helping the hourly associates develop both competence and confidence in their ability to work a new way.

The principles (# 3 &5) of using only authorized formal systems/standard work further develops the discipline necessary for culture change while each important work process is being re-engineered for standardization and capability. A strong preventive/predictive maintenance system (# 4) demonstrates leadership’s commitment to making sure the machine operators always have equipment that is in proper working condition so they can control their process and deliver great products. Principles #10 and 11 provide the standard work necessary to perpetuate the replenishment of the trained people necessary to effectively fulfill their roles every day. Absent the sustaining of comprehensive training and communications, skills disappear, performance deteriorates and the dream of CI dies.

The final point is that the culture changes very gradually – that is, not because of some feel-good initiatives, but rather because the leadership has sustained their commitment on the pathways to excellence. When management reestablishes its credibility, it is because they have collectively provided the focus and organizational alignment consistently, day after day, month after month, year after year such that the workforce develops trust in their leadership. Further, when management provides the context for their work, provides the proper tools, training, maintenance, systems, processes, communications, follows up with attention to detail on commitments that have been made, then the associates experience the change. In fact, they live the new way of working and thinking, and begin to willingly take ownership/accountability for their work without feeling "put upon."

The culture of Operator-Led Process Control is not the starting point. It is the vision of the culture that we seek. And it will evolve as the outcome from meticulous execution of the first eleven principles to a level of Stage 4 excellence. But make no mistake: The first day any member of leadership decides to stop doing the training, the preventative maintenance, or the communications, that’s the first day that the business starts going backwards from whence it came.

What do you think of Larry's points? Do you agree with his comments about management credibility?

Toyota Benchmarked... Yet Again

2011-10-13T11:49:00.002-04:00

There's a great article worth checking out over on the CNNMoney / Fortune site. It's one thing to see software companies adapting Lean methodologies, but it's quite another to see them transform their culture, and Menlo Innovations seems to be doing the latter. Jeffrey Liker confirms: "Any piece you see in Menlo you'll see somewhere else. What you won't find [elsewhere] is all the pieces working together…."

The article covers four techniques that contribute to Menlo's success -- Assigning bite-sized pieces of work, Keeping projects in plain sight, Observing the customer in action, and Training workers to stay flexible -- but, it's this last area that I found quite insightful, and CEO Rich Sheridan's explanation of "towers of knowledge." Because all programmers at the company work in pairs, no one employee becomes the sole "owner" and facilitator of a particular project. This keeps programmers available to delve into other areas as well making all projects team efforts.

What do you think of Menlo Innovations' work atmosphere and business techniques? Will it become a benchmark for its own industry? Do you know of any other software developers that are building this type of culture?

"Made in the USA" -- Can it Happen Again?

2011-10-05T09:50:00.001-04:00

During the past 20 years, US manufacturers have moved their production operations, at a massive rate, to foreign countries that offer cheaper labor costs.The migration of US manufacturing jobs to such locations as China have resulted in cheaper products, but the overall effect on the US economy has been hotly debated. Will manufacturing in the United States ever see a resurgence?

Tim Hutzel and Paul Piechota recently published a very interesting and timely book titled Keeping Your Business in the U.S.A.: Profit Globally While Operating Locally, and they feel that the current adage -- "The US can't compete with offshore labor costs" -- is a mere myth. Both have spent the past three years researching companies that have flourished while manufacturing their products in the US and their book documents just how these organizations achieved this goal.

I recently asked both authors why they believe the US can recover from the out flow of manufacturing, and here is their response:

A burning issue that is certainly in need of a remedy is the mass departure of manufacturing from the US to foreign countries. The results of this exodus are felt every day. As much as you would like to buy US-made products, this has become an impossible task. It is heartbreaking and disturbing that so many products, such as bicycles, clocks, garments, shoes, and computers are not produced domestically anymore.

Manufacturing can return to the US because many companies have been hurt by the rush to outsource. We have heard the tales of many business leaders regretting their outsourcing decisions -– the unplanned costs, poor quality, uncontrolled processes, long delivery times, graft, monstrous order quantities, inventory nightmares, lost and damaged products, oversight trips overseas, confrontations, half-truths, excessive order-to-remittance times, and added debt. In addition, there are social and national implications of outsourcing -– unemployment, increased government jobs, loss of skills, weakened national defense, loss of tax base, and unbridled national debt.

In our book, we clearly illustrate three manufacturing companies that have been able to resist the outsourcing trend and achieve overwhelming success while keeping jobs in the US. We have examined the successes, failures, lessons learned, and methods used by each company to achieve and sustain profitability.

What do you think the future holds for US manufacturing? Will labor costs in China only eventually rise? Will shipping and inventory costs associated with production in foreign countries eventually be important factors in cost?

The Supply Chain Executive?

2011-09-28T13:52:00.000-04:00

I recently came across this great article written by Michael Koploy over on the Software Advice site. Koploy argues that technology companies must appoint more persons with strong supply chain backgrounds at the C-level (top-level executive) to operate at utmost efficiency. He believes that a talent crisis is, unfortunately, holding back this field from gaining increased exposure among executives.

Koploy notes Apple Inc.'s recent appointment of Tim Cook as new CEO of the company is groundbreaking because "a supply chain-minded executive is a rare sight" and believes "organizations need to take Apple’s lead and include supply chain-minded executives at the leadership table: to help organize, implement and manage strategies to improve the business’ value chain."

One of the most important points made in this article is essentially a statement that I've heard during many supply-chain presentations at various Lean conferences: Supply-chain experts must now "transition from a traditionally execution-based role to a strategic one."

Koploy's list of attributes for the ideal supply-chain executive candidate are:

Experience managing large, global supply chains.
A track record for being able to adhere to lean and just-in-time fundamentals.
Experienced enough with SCM software to know how to implement and leverage its benefits.
The ability to continually push both strategic and operational supply chain improvements.

What are your thoughts on Koploy's assertions? Should more companies follow Apple's example? How should the industry respond to the skills' shortfall?

What Toyota Team Members Have to Say

2011-09-21T11:35:00.001-04:00

Productivity Press recently published a very special book -- One Team on All Levels: Stories from Toyota Team Members, Second Edition. This book, written by Tim Turner and his colleagues at Toyota's Georgetown, Kentucky facility, is far from another technical explanation of the Toyota Production System (TPS) -- It is rather a clear illustration of the culture it creates.

One such insightful recollection was provided by Raymond Bryant, an assistant general manager in the assembly department. He writes:

We often say that the most valuable resource we have is our workforce, the team members. I don’t just believe this, I know it.

Our company functions on the basic principals of the Toyota Production System (TPS). The Toyota Way guides us as we go about doing daily and longer term operations. When asked, "What is TPS?" the reference is usually to the tools widely talked about (andons, kanbans, etc.). As one of the many students of TPS (we all are still studying and learning), I have come to the conclusion that the success of TPS is in the commitment of our workforce to pursue it.

The tools are easily copied and put into place. They are, for all practical purposes, simple. The ability to understand and use them is equally as simple. The commitment to use them seems to be the struggling point for many organizations. Why? This is the "million dollar question."

I believe that our success is in the very simple understanding of what TPS really is. This I would define as:
1. Always doing the right thing.
2. Always knowing that you can do better.

The significance is in the "simplicity" of these two concepts. All of our workforce, each team member, can understand, make decisions, and feel proud of these two guiding thoughts.

Pulling the andon is simply "doing the right thing." Alerting your staff or assistant manager when a problem has come up in a project is also done for the same basic reason. The one making the decision to notify and possibly seek help, along with the one that is receiving the news and/or request both know that this is the "right thing" and expected in our culture. This naturally carries beyond our work life into our personal life.
We sadly lost a team member some time ago in an automobile accident. Along with the strong support you might expect to see of the family during the days after this tragedy, many of the team members and leaders gathered together several weeks later to complete a home project that he had started. This was the "right thing to do."

My role is pretty basic in the grand scheme of things:
1. Setting clear goals that, if met, equal success (this requires face-to-face discussions to clarify and provide the why behind them) approving the ideas and methods suggested on how to reach those goals (this requires even more discussions, primarily listening, coaching, and the willingness to see many other points of view).
2. Supplying the support and/or resources needed (this really requires the highest amount of listening skill, because the secret is knowing when not to give input).

A successful manager knows not "when to say something," but when "not to." Thousands of minds, all working to "do the right thing." Everyone understanding that "we can always do better."

What are you thoughts of Raymond's ideas? Have any of you visited Toyota's facility in Kentucky? Have any of you experienced Toyota's leadship firsthand?

What Happens When Two Automakers Cross Paths at an Airport?

2011-09-08T14:06:00.000-04:00

I actually had to read this great article over on the International Business Times site a couple of times to ensure I got it right! Toyota and Ford Motor Company will work together to develop a gas-electric hybrid fuel system for their respective pickup trucks and SUVs. According to the article, the seeds of the idea were planted when Ford CEO Alan Mulally and Toyota CEO Akio Toyoda "crossed paths at an airport." I guess it should not be that surprising considering Alan Mulally was an executive at Boeing prior to his position as CEO at Ford -- Boeing was an ardent adopter of the Toyota Production System, which helped develop one of Boeing's best-selling jet airliners: the 777. I'm glad the article included some lines about the long history the two companies have shared dating back to the 1930s -- especially Kiichiro Toyoda's (Toyota automotive founder) admiration for Henry Ford's 1926 book Today and Tomorrow.

What are you thoughts on this joint venture? Is it a win-win? Do you think it will ultimately benefit the consumer?

Mapping the Process -- Finding the Waste

2011-08-11T11:28:00.001-04:00

Robert Damelio published a second edition of his best selling book The Basics of Process Mapping this year, and I recently spoke with him about it. I asked him: "While you were developing the second edition of your book, which of the most important concepts in your book still often gets misunderstood?" Here is Robert's reply:

One of the most important (and often misunderstood) properties of work is "waste." Those familiar with the cost of poor quality concept often tend to equate “waste” with defects, rework, returns, inspection, appraisal, failure in test or operation, etc. In general these are forms of waste related to work outputs.

It turns out that more forms of waste, and much greater cost are associated with the resources used and applied during a work activity. This is why waste is defined as any work that does not create value as perceived by the customer.

Here is a table from the new edition of Robert's book that illustrates his points:

What do you think of Robert's table? Do you think his definitions and examples are accurate? What are your experiences with process maps? Do they help diagnose and improve work?

Are Team Conflicts Often Part of the Process in Lean Design Projects?

2011-08-04T13:45:00.001-04:00

Have any readers been involved in a construction project that applied Lean design techniques ? Most often, the benefits described involve reduced time and waste. This article over on the Construction Digital site discusses the reduction of risk such as "owner changes, constructability changes, incompatible design, rework, budget overruns, misinterpretations, unsafe construction, and project team conflicts." The success of a Lean design project relies heavily on the efficiency of the cross-functional team, which can include architects, construction managers, investors, and consultants. Although it is crucial for this team to in place right from the beginning of the project, I wonder how long it takes the players involved to overcome obstacles in regard to "territory" and autonomy. When these teams are first form, are interpersonal conflicts initially increased? Are personality conflicts and territorial issues greater for a team such as this because of the vastly different perspectives on the project each member brings to the table? Last year, Productivity Press published a book by Gary Santorella titled Lean Culture for the Construction Industry: Building Responsible and Committed Project Teams that touched on these issues.

I'd like to hear from professionals out in the field who have firsthand experience with these teams and if they initially appeared to hasten or hinder a project. The eventual measurable benefits of these teams greatly increases the success of the project, but do these teams cause initial rough spots?

Green in a Globalized World

2011-07-25T14:25:00.003-04:00

During a recent email exchange with Joao Neiva de Figueiredo -- co-editor of the recently released book, Green Products: Perspectives on Innovation and Adoption -- I asked him what he thought were the most important considerations for the sustainable adoption of green products and services in an increasingly globalized world. Here is his complete response:

"In analyzing examples of green product innovation and adoption in various countries around the world, I believe the three necessary conditions for sustainable adoption of green practices are:

The need for a systemic approach in which the different moving parts in the development and adoption of new technologies are addressed with attention to their many linkages. In addition, interrelationships between these new technologies and institutions and markets need to be considered systemically. It is not enough to have a brilliant solution for one part of the puzzle if the linkages to related issues are not examined and solutions found.

The need for mechanisms that align the incentives of all stakeholders to ensure widespread adoption of a green technology. The first step in the process is necessary to correctly identify the stakeholders and their objectives. This can be a complex process because often major stakeholders are not even at the table and therefore cannot explicitly defend their own point of view. Once stakeholders are identified, it is desirable that markets, society, and governmental institutions provide incentives for those stakeholders to behave in a way that favors adoption of the green innovation.

It is necessary for the innovative solution to address each of the three 'people, planet, profit' dimensions (i.e., social, environmental, and economic considerations need to be integrated in any large-scale proposed green solution). Furthermore, from an adoption standpoint it is helpful to use both a top-down and a bottom-up approach (i.e., policies that stimulate thinking globally and acting locally seem to be the most successful).

I've seen several cases that illustrate these precepts and therefore help sharpen our understanding of the necessary conditions for successful green product innovation and adoption. Whether tourism in the Galapagos or mass transport in Mexico City, whether ethanol in Brazil or electric cars in Japan, each case has lessons that are useful to us as we strive to make ours a greener planet."

What do you think of his conclusions? Have you seen any examples of green practices that have adopted these tenets? Have you seen green projects that have failed due to poor planning or incomplete considerations?

Lean and the Smaller Companies

2011-07-13T17:38:00.000-04:00

I recently read this article, authored by Glyn Finney, over on the Achieving Business Excellence site, about the effectiveness of Lean implementations within smaller organizations. Two interesting points stuck out:

Because smaller organization do not have the resources to employ Lean management senseis to drive the initiative, many now have the option of robust online courses.

Smaller organizations often comprise employees that work together much closer than their larger counterparts -- the Lean management systems will reveal waste much quicker.

Do you agree with Finney's points in his article? Do you think that online courses are improving to the point that they can be used in lieu of a sensei? Do any readers have any experiences with online courses? How about experiences with Lean initiatives in smaller companies? What were the particular challenges?

Perceived Quality and Market Share

2011-07-06T11:53:00.009-04:00

Last week, I had a phone conversation with Robert Fantina, co-author of the recently released book, Your Customers' Perception of Quality: What It Means to Your Bottom Line and How to Control It, about customers' buying habits and what they consider value-adds. Many attendees at conferences I attend often state that their companies' products and services are of very high quality, yet they struggle to maintain market share. Shouldn't the quality speak for itself? I posed this question to Robert, and here is a summary of his answer:

Unfortunately, many companies do all the right things in terms of quality, including reducing their defects to near zero, eliminating call waiting times, etc., and still struggle to hold onto their customers. Repeatedly, this appears to be because their customers do not perceive them as delivering quality.

High quality in products and services is vital but insufficient; despite high quality, customers may still perceive quality to be inferior. What is causing that perception?

The answers to that question are many and complex. Unfortunately, it appears that a variety of concerns experienced by customers translate in their minds into ‘poor quality.’ For example:

A customer that buys a product though a third-party distributor and has problems with that distributor, may view the quality of the product as poor.

A customer who loves his/her product, but then struggles to find some information on a difficult-to-navigate website, may begin to view the quality of that product as poor.

The company that orders 1,000 widgets, and receives them all individually wrapped, and must discard/recycle all that wrapping, may say that quality is poor.

While it is clear that none of these issues in any way reflects the actual quality of the product, they can influence customers' perception of quality. And if their perception of quality is poor, the actual high-quality of the product is meaningless.

Do any of you suffer from this situation? How did you recover? Have you experienced an instance in which the delivery of a product or service affected its popularity? How did you discover this?

Safety and Sustainability Are Not Barriers to Business Success

2011-06-20T11:34:00.008-04:00

Last week, I spoke with Dennis Averill (who recently published a book titled Lean Sustainability: Creating Safe, Enduring, and Profitable Operations) about employee and environmental concerns in relation to business success. I asked him, "How can a business create and maintain operations that are safe, sustainable, and profitable?" Here is Dennis' full reply:

Some business leaders still contend that protection of employees and the environment, and conducting their operations in a safe and sustainable fashion are barriers to business success. These myopic managers maintain that safety and sustainability are extra work that require additional resources, and divert business efforts away from the primary job of building efficient and profitable operations. It is a myth that safety and sustainability are contrary to business success.

The key to achieving safe, sustainable, and profitable operations is integrating and leveraging Lean methodologies in all areas of the business. Safety and sustainability are not additional or separate work, but rather, they are the way one runs a “Lean, Green, and Serene” enterprise. Lean, SHE (safety, health, environmental protection), and sustainability focus on similar objectives:

Eliminating accidents, incidents, waste, and losses.
Increasing operational efficiency.
Conducting business in a sustainable way that conserves resources and reduces the business’ environmental footprint.

By linking an organization’s Lean, SHE, and sustainability processes, a natural synergy and efficiency is created that benefits all areas of the business, and offers the enterprise a real prospect of achieving sustained profitable growth, or, as is commonly expressed, “the opportunity to do well by doing good.” However, as with any complex business endeavor, realizing the vision of “Lean, Green, and Serene” is easier said than done. In other words, the devil is in the detail. The novel and effective approaches that I've used are:

Autonomous Safety -- which supplies employees with knowledge skills, skills, and motivation.
Triple Zero -- the achievement of zero accidents, zero environmental incidents, and zero losses.
Green Value Stream Mapping -- the application of value stream mapping to environmental and sustainability issues.

Are any readers currently involved in an Lean initiative that considers both safety and sustainability? What was upper management's initial reaction to the plan? Did they feel it would merely reduce efficiency as well as profits?

The TWI Programs -- Who Needs a Trainer?

2011-06-01T11:10:00.005-04:00

Donald Dinero, author of two books on the topic of Training Within Industry (TWI) -- Training Within Industry: The Foundation of Lean and TWI Case Studies: Standard Work, Continuous Improvement, and Teamwork -- spoke at the recent TWI Summit in Florida. After his presentations, I mentioned to him in an email: "The TWI Programs appear to be very simple. Does one really need a trainer to start?" I decided to reprint his entire response here:

"Because the TWI programs are skill based, there never will be a 'how to' book for them. You can read and absorb as much as you want about the TWI programs but, as Walter Dietz says in Learn by Doing, 'One must learn by doing the thing; for though you think you know it, you have no certainty until you try it.' In my books, I've tried to pass on some of that knowledge from lessons learned by others. However, it cannot be emphasized too much that a short time spent with an experienced, competent trainer will save countless hours. You should know that the TWI programs will work for you no matter what organization you are part of. If you find that they do not work, it is because you are not using them properly. Back up, analyze the situation, and try again. When used correctly, they will yield benefits beyond what you have expected.

An experienced trainer is required if you want to be as good as you can as quickly as you can. Without a qualified trainer, you will experience much trial and error and may never achieve optimum results. As with learning any skill, there are many nuances that can cause one to succeed or fail. If these nuances were the same for everyone in every organization, they could be documented. Because every person is an individual and every organization has its own culture, we must rely on a knowledgeable person to coach us initially. The programs are standard and will apply to all organizations, but they must be implemented on an individual basis because each organization has its own culture."

Have any readers embraced the TWI programs within their organizations? Did you employ a trainer right from the start? What were the cultural hurdles?

The Virginia Mason Medical Center Discovers Its True Customer

2011-05-19T12:36:00.008-04:00

I found this great article by Michael McBride over on the DARK Daily website about the Virginia Mason Medical Center (VMMC) and its Lean journey. Other than the important financial turnaround that VMMC achieved, the medical center appears to have learned the most crucial lesson: "...that the patient, and not VMMC itself, was the true customer."

The article includes some quotes and insights from chairman and CEO Gary Kaplan, MD, who leads the Lean initiative, which began 10 years ago. He interestingly reaffirmed the pivotal role IT plays in process redesign: "You have to redesign your work first. The data comes first; and IT can help eliminate manually based errors." In addition, although it is is not detailed in the article, Kaplan achieved what can sometimes be one of the hardest early hurdles by "securing buy-in of all senior leadership at the hospital."

Are any of the readers of this blog familiar with the Virginia Mason Medical Center? Do you think it has set the right example for other medical facilities to follow? Are there areas that still lack improvement?

The story of the Virginia Mason Medical Center's Lean odyssey has been revealed in book titled Transforming Health Care: Virginia Mason Medical Center's Pursuit of the Perfect Patient Experience authored by Charles Kenney.