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Oct 21 2025

From MBO to Hoshin Kanri

In 1995, Peter Drucker conceded that Management By Objectives (MBO) was not “the great cure for management inefficiency” he had believed when he coined the term 41 years earlier. In the meantime, the technique had contributed massively to the decline of American industry by turning managers into metrics gamers.

On 10/7/2025, The Conversation published an article by Aurélien Rouquet, reassuring us that Management by objectives is not a Nazi invention, contrary to what historian Johan Chapoutot claims. Rouquet attributes its paternity to Alfred P. Sloan, the head of General Motors who made it the most powerful company in the world by the end of World War II.

Rouquet’s article also includes a link to another article, dated 9/2/2024, where George Kassar asserts in the title that At 70, management by objectives remains unsurpassed. The most surprising thing, for an article on such a subject, is that it does not cite any company whose performance has been improved by MBO. And the author seems to ignore the existence of an approach that has surpassed MBO for decades, the Hoshin Kanri, which perhaps has the misfortune of coming from Japan.

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By Michel Baudin • Policies, Uncategorized 2 • Tags: Bridgestone, Hoshin, Hoshin kanri, Hoshin planning, Lean, Strategy, Strategy Deployment, Toyota

Internal-Combustion-Pneumatic-Core5

Sep 29 2025

My Toyota Forklift

For most participants, Day 2 of the Global Lean Summit was a visit to the Toyota Material Handling (TMH) plant in Columbus, IN, organized by Sam McPherson and hosted by Tom Lego.  There were two busloads of us.

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By Michel Baudin • Case studies 2 • Tags: Global Lean Summit 2025, Toyota, Toyota Material Handling

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Sep 17 2025

Label your charts!

Charts you share with others need a bodyguard of text to be self-explanatory,  avert misunderstandings, and support learning. None of this matters when you chart exclusively for your own use, but it is obligatory when communicating with a team or making a case to management.

Generating an informative, actionable chart can take hours; documenting and labeling it should take minutes, yet we encounter charts with missing or unclear labels in business documents, published articles, and even textbooks.

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By Michel Baudin • Data science 0 • Tags: Axis label, Chart, SPC

Semiconductor quality

Aug 27 2025

Quality and Me (Part I) — Semiconductors

 

This is the first of several posts about my personal history with manufacturing quality. While I have never had the word “quality” in my job title, and it has never been my exclusive focus, I can’t name a project I have worked on in the past 44 years that didn’t have a quality dimension.

Controversial views about quality have earned me rebukes from quality professionals, who gave me reading lists. To see the error of my ways, all I had to do was study the complete works of Walter Shewhart, W. Edwards Deming, and Donald J. Wheeler. It never occurred to them that I might be familiar with these authors.

There are also other authors on quality that my contradictors ignored or dismissed, like J.M. Juran, Kaoru Ishikawa, or Douglas Montgomery. I didn’t see them as any less worthy of consideration than the ones they were adamant about.

Matsuo Bashō

I don’t think any of these authors intended their works to be scripture. Instead, they aimed to assist their contemporaries in addressing their quality issues with the technical and human resources available. We should do the same today. I recently heard from Sam McPherson of a piece of advice haiku author Matsuo Bashō gave to a painter in 1693: “Do not follow the footsteps of the ancients, seek what they sought instead.” This is what I have been doing.

 

 

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By Michel Baudin • History 1 • Tags: Quality, semiconductors, yield enhancement

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Jun 25 2025

Update on Data Science versus Statistics

Based on the usage of the terms in the literature, I have concluded that statistics has been subsumed under data science. I view statistics as beginning with a dataset and ending with conclusions, while data science starts with sensors and transaction processing, and ends in data products for end users. Kelleher & Tierney’s Data Science views it the same way, and so do tool-specific references like Gromelund’s R for Data Science, or Zumel & Mount’s Practical Data Science with R.

Trevor Hastie
Bradley Efron

Brad Efron and Trevor Hastie are two prominent statisticians with a different perspective. In the epilogue of their 2016 book, Computer Age Statistical Inference, they describe data science as a subset of statistics that emphasizes algorithms and empirical validation, while inferential statistics focuses on mathematical models and probability theory.

Efron and Hastie’s book is definitely about statistics, as it contains no discussion of data acquisition, cleaning, storage and retrieval, or visualization. I asked Brad Efron about it and he responded: “That definition of data science is fine for its general use in business and industry.” He and Hastie were looking at it from the perspective of researchers in the field.

 

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By Michel Baudin • Data science, Uncategorized 0 • Tags: data science, math, statistics

OilFillingSequentialMethod

Jun 17 2025

How One-Piece Flow Improves Quality

There is a phase in the maturation of a manufacturing process where one-piece flow is the key to improving quality. Once the defective rate is low enough, one-piece flow reduces it by up to a factor of 10. The magnitude of the improvement often surprises managers. The cause-and-effect relationship is not obvious, and the literature on manufacturing quality is mute on the subject. We explore it here.

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By Michel Baudin • Uncategorized 2 • Tags: Flow, Flow line, One-piece flow, Quality

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