Dec 1 2011
About Michel Baudin
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Dec 1 2011
Railway Gazette: Russian Railways looks lean
Via Scoop.it – lean manufacturing
RUSSIA: Alstom Transport is to provide Russian Railways specialists with training in the implementation of lean manufacturing technology under a memorandum of co-operation which was signed during the Second Railway Congress in Moscow on November 19.
Via www.railwaygazette.com
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By Michel Baudin • Press clippings • 0 • Tags: Lean manufacturing

Dec 1 2011
Steven Spear on Problem-Solving with JIT: Not Bad for an Academic Paper
Steven Spear’s The Essence of Just-in-Time:Imbedding diagnostic tests in work-systems to achieve operational excellence is a working paper from Harvard Business School in 2002 focused on the interaction between JIT and problem-solving. It is an important topic, only briefly alluded to in Lean Logistics and covered in more detail in When to Use Statistics, One-Piece Flow, or Mistake-Proofing to Improve Quality, but there are many other improvement opportunities besides product quality, and shining a light on their relationship with JIT is useful.
Spear’s paper is worth reading because he did his homework: it is based on research that involved immersion in a Toyota supplier support team, visits to seven Toyota plants and 12 suppliers in Japan and the US, and working as an assembler in a non-Toyota plant for comparison. I recommend in particular sections 4 to 7. Section 4 is a case study of mattress manufacturing at Aisin Seiki, from which the following sections draw general conclusions.
You have to look past the other sections, which mainly reflect Spear’s membership in the academia tribe. His research is described as an “ethnographic study,” which conjures up the image of an American or European spending 15 years among the Guaranis of Paraguay recording what they are willing to share of their language and culture. That this vocabulary should be used in a study of Lean reflects how alien the world of manufacturing is to academia.
As an academic, Spear is obligated to reference other academics, but not non-members of the tribe, no matter how major their contributions. For example, the only Japanese author in the bibliography is Takahiro Fujimoto, from the University of Tokyo, but neither Taiichi Ohno nor Shigeo Shingo appear. Section 3, on Methods, opens with “Many scholars argue…” With all due respect, the arguments of scholars don’t amount to a hill of beans in Manufacturing, because, unlike Computer Science or Biology, it is not a field to which they have contributed much. From Taylor and Gastev to Ohno and Shingo, the key innovators in Manufacturing have almost all been self-taught, Lillian Gilbreth being the exception with a PhD. Why was Spear’s research not done in an Industrial Engineering department, where its content would normally place it? As I found in my own ethnographic studies of academia, the need for grants pushes researchers in other directions, like genetic algorithms.
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By Michel Baudin • Management • 2 • Tags: JIT, Just-in-time, Lean manufacturing, Ohno, problem-solving, Shingo, Takahiro Fujimoto, Toyota
Nov 29 2011
Aravind: an example of Lean health care in India?
Via Scoop.it – lean manufacturing
Heard on NPR this afternoon. Lean was not mentioned, but, if Aravind has found ways to perform cataract operations faster, better, and cheaper, it probably deserves to be called a Lean organization.
Via www.npr.org
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By Michel Baudin • Press clippings • 0 • Tags: Health care, Management

Nov 29 2011
More about Kanbans, and What it Takes to Use Them.
Ever since the world outside of Toyota started noticing its production system in the late 1970s, the Kanban system has received a disproportionate amount of attention compared to other features. It does not mean, however, that it has been accurately implemented in many of the factories that claim to have done it. To anyone who cared to study it, details have been available in English at least since Robert Hall’s Zero Inventories (1983), the JMA’s Kanban, Just-In-Time at Toyota (1985), Yasuhiro Monden’s Toyota Production System (1993), or an updated treatment in Lean Logistics (2005).
Pressured to implement Kanbans by executives to whom it was little more than a buzzword, many manufacturing professionals found it more expedient to take old, familiar approaches like the two-bin system or reorder-point and call them Kanban. One such system implementing reorder-point through cards placed on a board has become so popular in France that I suggested calling it “French Kanban.” As can be seen in Figure 1, each column on the board is a mirror of the inventory level for an item. Each pocket filled by a card corresponds to an empty slot in stores, so that the remaining amount is visually indicated by the empty pockets on top. The reorder point is crossed when the cards reach the red zone.
Figure 1. French Kanban: Reorder-Point with Cards
Meanwhile, a few academics like J.T. Black at Auburn University or Robert Hall at Indiana University took the trouble to thoroughly investigate the Toyota system as a whole and the Kanban system in particular, but most of their colleagues didn’t, preferring a simplistic rendition of the Kanban system that made their own ideas stand out by contrast. In this context, insisting on the genuine Kanban system is perceived as nitpicking, because the differences are not in the big idea but in the details. You can easily dismiss these details as insignificant until you consider their cumulative effect on thousands of shop floor transactions every day.
Here are two examples, found today in a blog post:
- A common misconception is that you pull a Kanban from a bin when it is empty. If this were true, you would just be using a card to implement the Two-Bin system. The Kanban is not pulled when the bin is empty but when you withdraw the first part from the bin, to allow the bin to cover consumption during the replenishment lead time.
- Another in the same post was that the eKanban system did not involve physical cards. It is conceivable that, in the future, goods in transit will only be identified by RFID tags, but it is not the state of the art. They still need some form of human-readable identification and routing, for which a purely electronic system would require some kind of screen on each container. In fact, the electronic signal is used only in the return part of the loop, to eliminate the labor-intensive, slow and error-prone handling of unattached cards. On the supplier side, you print single-use cards that are attached to bins for transfer to the customer. When you detach the car on the customer side, you scan its barcode, and this triggers the electronic replenishment signal.
When evaluating or learning a tool like the Kanban system, you have to consider the following:
- The objects. They may be cards carrying specific data, bins of particular sizes and configurations, electronic messages of a given structure, … This is what we have to play with. Their physical nature makes a difference, not in a philosophical way but in basic, practical ways. For example, cards can be shuffled and posted on boards but bins cannot. When you send a card, you no longer have it, but when you send an electronic message, you still do. With the former, you have to make sure it doesn’t lose its way; with the latter, that it isn’t accidentally sent multiple times.
- The rules. These are protocols for users to follow. They specify who is allowed or required to do what to which objects when. In the Kanban system, the rules say who can issue new Kanbans or remove them from circulation, who attaches Kanbans to bins and detaches them, and what events trigger these actions. The rules give the objects meaning, as the rules of poker do to a deck of cards.
- The mapping to reality. This is what happens to materials and goods in production and logistics when people follow the rules. When applied rigorously in the right context, the Kanban system tells production operators and materials handlers exactly what they should work on. Unlike the traditional dispatch lists, instructions in the form of Kanbans leave no ambiguity and require no judgement call by the leader or supervisor.
Within its range of applicability, the Kanban system is both simple enough for people to apply and sophisticated enough to get the job done. This is a tall order, and we should not underestimate what it takes.
Even in Japanese, the word Kanban has many different meanings, the most common being a sign advertising a store on the street, as you can see by searching Google images for “看板” (Kanban). Figure 2 shows, on a sidewalk, the Kanban of a beauty salon located on the 2nd floor of the building.
Figure 2. A Kanban in everyday Japanese
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By Michel Baudin • Technology • 3 • Tags: Kanban, Lean manufacturing, Toyota
Dec 1 2011
The Project Game
The developments of the Airbus A380 and the Boeing 787 were both more than two years late. You might think that these two master aircraft builders would know better. Such performance, however, is not the exception. Generally, from kitchen remodeling to the development of a product or a production line, projects tend to be behind schedule, over budget, or both.
That it is technically possible to do better even with a large-scale project involving new technology is illustrated by the Apollo program: it reached the goal set by JFK 5 months ahead of the deadline at a cost of $24B, accurately estimated in 1961. Even NASA, however, did not repeat its Apollo performance with the Space Shuttle. 100 years before, another major project, the transcontinental railroad, was also completed in record time at a cost that was consistent with original estimates.
It is therefore legitimate to ask why we are not able to do better, given the tools we now have. The key is that project and program management are treated like technical fields when they should be viewed as games, meaning that outcomes are the consequences of decisions made by several independent agents. In project management as described in the PMBOK, you break a project down into smaller tasks, to which you assign durations, resources and constraints of timing or precedence. Then you run calculations that produce Gantt charts, load profiles for resources, the critical path, etc. The most commonly used tool is the Critical Path Method (CPM), as implemented in packages like Microsoft Project. Then there is Eli Goldratt’s Critical Chain Project Management, focused on resources, and the Design Structure Matrix (DSM) to manage task iterations.
These are logically consistent models, and good fodder for presentations, but cast aside in daily project management in favor of the primitive action-item lists. The most obvious problem with the use of the tools is that durations for elementary tasks are not known, and that I have never seen an organization make a serious effort at collecting this data. A project task is not like an assembly operation that you can time with a stopwatch or record on video. And project work is never completely repetitive: if you keep repeating the same action, it may be called production or transaction processing, but not project work. Since you have never done this project task before, you cannot tell exactly how long it will take, but you can get lower bounds based on its content — for example if it involves driving 60 miles or waiting for paint to dry — and you could estimate it based on similarities and differences with tasks you have done before, if you had kept track of them. Engineering work is organized by project, and the time of engineers is tracked through time sheets, but these sheets are filled out after the fact by the engineers themselves for accounting, and are not accurate.
There are ways to estimate task times better, but that is not the main concern of project managers. Instead, their thinking is centered on sentences that begin with “Nothing else matters if…” Initially, a manager commissioned to lead a project has to come up with a plan that needs to be approved and nothing else matters. The purpose of the plan is therefore not estimation but persuasion. How this is to be accomplished cannot be stated in a generic way, because it obviously depends on who is to persuaded. What is a constant is that the project manager is selling, and will do whatever it takes to close the deal.
Imagine a king who is single and wants an heir. He solicits three members of his council to manage the project and gets the following responses:
Assuming the king operates like most corporations, whom will he appoint? The first adviser’s proposal is physically impossible, no matter what resources are put to the task. The second adviser strikes the king as too cautious. The third adviser gets the job, because he is proposing an aggressive schedule that is not impossible. The adviser knows the deadline won’t be met, but he can deal with that later. The king knows it too, but is betting that the adviser will redouble his efforts to atone for his failure to deliver on time. Four years and eleven months later, a prince is born.
In this kind of situation, the task durations used in project planning are the shortest that don’t violate the laws of physics. The project managers make the sale on that basis, miss the deadlines, and work desperately hard to finish. As a result of surviving in this game, they are promoted and continue the same practices with the next generation.
The game does not have to be played this way, but the initiative must come from the top. Soichiro Honda set a different tone early in the development of his company, by engaging it in motorcycle racing. When participating in a race, nothing else matters if the vehicle, pilot, pit crew and supplies are not in place and ready at the start of the race. Such hard deadlines are also found in organizing concerts, preparing museum exhibitions, or launching a space probe to fly by multiple planets. They focus project teams on realism in task assessment and creativity in dealing with the unexpected. Besides the publicity, Soichiro Honda’s purpose was to infuse all the company’s projects with the “racing spirit.”
There are, of course, many other useful perspectives on project management, and I find that the most interesting to read are case studies. Following are some of my favorites:
Tom DeMarco’s The Deadline is not a case study but a novel about project management. It is about software development but is entertaining and enlightening even for readers in other fields. DeMarco is a deep and original thinker, but with the wit of a Tom Wolfe.
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By Michel Baudin • Management • 13 • Tags: Product development, Project management