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Dec 11 2011

Russian Lean Blog Post about Cultural Differences

Via Scoop.it – lean manufacturing

This is a translation of my own comments in this discussion:

General statements about “the Japanese people” are never right. There are 130M of them, all with different personalities, and >1M companies. There is more to Lean than customer orientation and continuous improvement, namely specific tools developed over 60+ years, which must be learned rather than reinvented. People involvement, while necessary, is not sufficient. Company culture transcends national culture. We worked for Unilever in the Netherlands, the UK, Italy and the US, and the plants in all these different countries had much more in common than with plants of other companies in the same countries. Each country is special in some way, but these special characteristics mean little on a production shop floor. The only people who bring them up are those who want to prevent change.
Via www.leanforum.ru

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By Michel Baudin • Blog clippings 0 • Tags: Lean, Lean manufacturing, Management

House MD with whiteboard

Dec 11 2011

Problem-solving: Dr. House versus the Shop Floor

Dr. House‘s fictional team of doctors may be the most famous problem-solving group on the planet. Week after week, they solve daunting medical mysteries under an abrasive, unfeeling leader, working in their differential diagnosis sessions with nothing more than a tiny white board to write lists of symptoms.

In real life, Steve Jobs, a man with character flaws on  a par with Dr. House, was able to lead teams in the development of products from the Apple II to the iPad. In light of this, you may wonder why, when faced with problems like an occasionally warped plastic part or wrong gasket, we need to have a team go through brainstorming sessions in which no idea is called stupid, draw fishbone diagrams and formally ask five times why the defect was produced and why it escaped.

House’s team, Apple engineers and Pixar animators are in professions they chose and for which a thick skin is required. They are the product of an education, training and experience in which abuse is used to filter the uncommitted. By contrast, assemblers and machinists are there not to realize childhood dreams but because these are the best jobs they could get. In addition, if they have even a few years of experience in a non-Lean plant, they have been trained to do as they are told. Outside of work, they can be artists,  do-it-yourselfers, or community leaders, but they have not been expected to use the corresponding skills at work.

Over the past decades, many manufacturers have realized that this is a mistake, and that there are emergency response situations that are resolved faster with the participation of the people who do the work than without it, and many small improvement opportunities that are never taken unless operators take them on. But welcoming and soliciting their help is not enough. Historically, the first attempt was the suggestion system, dating back to 1880. It is still in use at many companies, including Toyota, but, while it is part of continuous improvement, it is not an approach to problem-solving. Employees make suggestions about whatever they have ideas about; problem-solving, instead, requires a focus on a subject identified by management or by customers, and usually needs a team rather than an individual.

Kaoru Ishikawa’s concept of the Quality Circle in 1962 was a breakthrough, not only in organizing participants in small groups but also in teaching them the 7 tools of QC to solve quality problems, as well as brainstorming, PDCA, and presentation techniques. The key idea was that pulling a group of shop floor people together was not enough. Quality Circles still exist, primarily in Japan, but the ideas  of providing technical tools and a structure to organize small-group activities around projects have propagated many other areas. Setup time reduction projects for example, can be run effectively like Quality Circles but with the SMED methodology taught instead of QC tools. Conversely, if working on quality issues, a Kaizen Event team may use the same technical tools as Quality Circles, but is managed differently.

To an uninvolved engineer, a scientist or a medical doctor, “problem-solving” as practiced by shop floor teams may appear crude and simplistic. He or she may, for example, view a fishbone diagram as a poor excuse for a fault-tree because it makes no distinction between “OR,” “XOR” or “AND” combination of causes. In the fishbone diagram, these details are not omitted for lack of sophistication but instead by due consideration of the purpose. You can fill out a useful fishbone diagram in a brainstorming session with a problem-solving team, but you would get bogged down in details if you tried to generate a full-blown fault-tree. There are many simple techniques that could potentially be applied. The value of a problem-solving method is that, for a given range of problems, it has shown itself both sophisticated enough to work and simple enough to be applied by the teams at hand.

In this as in every other aspect of Lean, it makes a difference whether an approach is adopted for internal reasons or to comply with an external mandate. A customer that has developed a problem-solving methodology may require suppliers to adopt it when responding to quality problem reports. The suppliers then formally comply, but it may or may not be effective in their circumstances. For example, a car company that buys chips from a semiconductor manufacturing may mandate failure analysis on all defective chips, but this analysis will provide information on process conditions as they were six months before, when the chip was made. Since then, the process that caused the defect has gone through three engineering changes that make the results irrelevant. These results would have been relevant for mechanical parts with shorter processes and less frequent engineering changes, but the car company doesn’t differentiate between suppliers.

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By Michel Baudin • Management 2 • Tags: Continuous improvement, Lean, problem-solving, Project management, Quality, Toyota

Dec 9 2011

Sundaram-Clayton wins Platinum in India Manufacturing Excellence Awards

Via Scoop.it – lean manufacturing

Continuing our round-the-world tour of awards, prizes and cups for Lean Manufacturing.
Via www.wheelsunplugged.com

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By Michel Baudin • Press clippings 0 • Tags: Awards, Lean manufacturing, Management

Dec 9 2011

Lean in the operating room

Via Scoop.it – lean manufacturing
This article points out that Lean in health care shouldn’t be just about administration and patient handling but should reach into the medical and surgical acts, and presents the case of a Danish hospital doing just that.   After all, the current operating room procedures are based on the work of industrial engineer Frank Gilbreth in the 1910s. Maybe it is time to revisit them…
Via www.news-medical.net

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By Michel Baudin • Press clippings 0 • Tags: Health care, Lean

I'm six sigma - I'm Lean

Dec 9 2011

Six Sigma R.I.P.

If you google Six Sigma, you get the impression that it is a going concern, with all sorts of organizations offering training and consulting on how to implement it. If you dig just a bit deeper, you run into a Business Week article from June 11, 2007 entitled Six Sigma: So Yesterday? It explained how the best known Six Sigma icons, like GE, 3M, Home Depot, or Motorola were “dialing it back.” Whatever this may mean, it is difficult to imagine ambitious employees in a company showing enthusiasm for a program that is being “dialed back.”

The same article attributes the following statement to GE’s former CEO Jack Welch about Six Sigma: “Even if the concept is applied in areas where perhaps it shouldn’t be, it’ll be worth it in the long run.” It makes you wonder how he would have liked to work in such an area, with management knowingly pressuring him to implement an irrelevant method.

Now that the Six Sigma craze is over, there is no much merit in criticizing it. Ever since I was first exposed to it in the 1990s, I have perceived it as a welcome update of the now 90-year-old tools of Statistical Process Control (SPC), useful in industries where, if your process is mature, your product is obsolete. This applies in semiconductors and other high-technology manufacturing sectors, but not in mature sectors like automotive.

It never struck me as having the potential to be a revolution in business or comparable in scope and impact to Lean. Saying so 10 years ago made many people angry but I did worse: I put in writing, in an article entitled Six Sigma and Lean Manufacturing that was published by the SME in a Six Sigma newsletter in July, 2002.

If you google Motorola +Six-Sigma, you learn that Motorola no longer teaches Six Sigma business improvement. Given that Motorola is where Six Sigma was invented, the equivalent would be for Toyota to dump Lean. Maybe it is time to dial down the Six Sigma training programs.

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By Michel Baudin • Management, Technology 40 • Tags: Lean, Management, Quality, Six Sigma

Citroen C5

Dec 7 2011

Did Citroen Use Too Many Phone Calls and Emails in Developing the C5?

Wiegand’s Watch is a monthly letter from Dr. Bodo Wiegand, who runs the Lean Management Institut, the German affiliate of the Lean Enterprise Institute. This month, he focuses on what he perceives to be a wasted use of email and cell phones in the development of the Citroen C5 car. Following is a translation of his letter, followed by my comments:

€ 16 million wasted in the development of the C5 car
Today I was at the airport and saw a billboard.
The development of the C5 at Citroen used 1,410,475 cell phone calls and 3,155,546 e-mails. This is madness. If  a phone conversation lasts an average of 2.5 minutes, it works out to 14 670 man-days or 73 man-years.
Assuming  writing a  technical e-mail on average takes four minutes and that it is read six-times, then these emails took up  65,741 man-days or 321 man-years. Assuming that 50% of these cell phone calls and 50% of e-mails were necessary but non value-added, this adds up to 40,000 man-days or 200 man-years, or € 16 million were needed to do the following:

  • Fix processes that are out of control.
  • Define nterfaces that were not specified.
  • Rethink procedures with qualitative gaps.
  • To answer questions.
  • To solve problems.

What a huge waste!
What a potential for improvement!
And Citroen boasts about it.

My first reaction is to wonder what is wrong with >1,000 people involved in a multi-year project like the development of a new car communicating extensively? It brings to mind Frederick Brooks’s famous audit of the Tower of Babel project in The Mythical Man-Month. The goal was clear and its lack of feasibility played no part in the failure. Human and material resources were plentiful in Mesopotamia, and were not a problem either. What caused the project to fail was that team members could not communicate. 

Product development generates many documents that need to be reviewed, discussed, annotated, updated, revised, and organized. These documents must also be available easily to all those with a need to know, and kept secret from all others. I don’t know on what basis Dr. Wiegand concludes that a large part of Citroen’s communications by phone and email were waste. For all I know, they may have been meaty technical exchanges that improved the design of the C5…

Of course, you don’t need electronic means of communication if everybody is in one big room, but that only works for teams that are small enough. You would need a convention hall for a team in the latter stages of car development, and some activities, like testing in a hot desert or snow, or ramping up production, take place at multiple locations. While always desirable, face-to-face communication is not feasible for everything at all times.

Just based on the statements from Citroen, if I would fault them for anything, it would be for relying on nothing more sophisticated than phones and emails, which is so 20th century.  There are now collaboration and on-line meeting tools that combine much richer exchanges with better data security and revision control. For example, engineers at different locations can view the same drawing on their screens, annotate it while discussing through an audio conference, and read each other’s body language through webcams.

Instead of having multiple copies of documents floating around in individual mailboxes, you can keep them in a library on a server to ensure that all participants in a discussion are looking at the same version, and to prevent these documents from leaking out.

You can also fault emails for lacking the kind of structure you find in A3 reports, which discipline authors in providing particular data items while helping readers find them. But again, more advanced communication tools can provide that structure through on-line forms .

For voice communication, there are also alternatives to cell phones. For people whose work causes them to move around within the range of WIFI network, for example, there are wearable devices that allow them to call each other by name and communicate by voice instantly, as if they were side by side.

So maybe the issue is not that Citroen C5 development used to many engineer-years communicating, but that, next time, they should use the state of the art to do it.

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By Michel Baudin • Blog clippings, Management 3 • Tags: A3, Lean manufacturing, Manufacturing engineering, Project management

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