Feb 16 2016

“Ohm’s Law” for WIP — Little’s Law Explained in Russian | Holz Expert

Sourced through Scoop.it from: holzex.ru

Translated from Russian: “Every production manager knows that the amount of work in process (WIP) — stacks of parts lying between machines waiting for processing —  should be reduced. In contrast to the raw materials in the warehouse,  work has already been done on it, and its cost increased by the amount of value added. This makes it an illiquid asset – in contrast to raw materials and finished goods, it cannot be sold. In addition,  WIP costs extra space, heating, transportation and personnel. But, before reducing WIP, it is necessary to properly evaluate it…”

Michel Baudin‘s comments:

 Even though it has a German name meaning “Wood Expert,” Holz Expert is a consulting group based in Moscow and specialized in the furniture industry.

I had not heard of them before, but Oleg Novikov pointed out this article to me on Facebook. It is well done. If you can’t read Russian, check it out with Google translate. They explain all the assumptions needed for the formula to be applicable, and give examples from furniture manufacturing. They even include a smiling picture of John D.C. Little.

Working with Russian clients, I was surprised that they insisted on mathematical formulas in consulting reports. To them, it was essential to the credibility of the recommendations, a feeling that I have never encountered among their counterparts anywhere else.

 

See on Scoop.it – lean manufacturing

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Feb 14 2016

Is Choosing a Consultant Truly The Second Step in ERP Implementation?

According to the previously cited guide from ERP Focus, choosing an implementation consultant is the second step of ERP implementation, right after selecting a vendor. In the consulting business, being a certification as an implementer from a leading ERP vendor is known as a license to print money. Even vendors of ERP products acknowledge that their customers spend more to implement the software than to buy it, and that much of this cost goes into consulting fees. The following are a few thoughts about the process of ERP implementation and the roles played by consultants, contractors, and the in-house IT team.

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Feb 1 2016

“Houston, we [the Germans] have a problem.” | Bodo Wiegand | Wiegand’s Watch

Bodo WiegandBodo Wiegand heads Germany’s Lean Management Institute. In his latest newsletter, on Wiegand’s Watch, he discusses the significance of recent problems in well-known German corporations, specifically VW, Siemens, and Deutsche Bank. The VW emissions test scandal has been covered in the media worldwide. Siemens executive were indicted for bribery last year in Greece, for acts related to the Athens Olympics in 2004, and the top management of Deutsche Bank was replaced in 2015 after scandals that included manipulating the London inter-bank lending rate (Libor), and mis-stating financial reports.

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Jan 26 2016

Is Vendor Selection Really The First Step in ERP Implementation?

A free guide that you can download from ERP Focus makes vendor selection the first of an 11-step implementation process, while defining success is the last.  In other words, they have you choose who you buy from before having a clear idea of what you are trying to accomplish.

It reminds me of a meeting at a client site where ERP implementation was about to begin. “This train has left the station,” I was told. The purpose of the meeting was to draw a “Value Stream Map” for the whole plant, in preparation for ERP, and the participants included managers from Manufacturing, Quality, Production Control, Maintenance, Purchasing, Sales, and Engineering.

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Jan 22 2016

What Went Wrong? (With Lean) | Bob Emiliani

Can Lean do a do-over? Nearly 30 years after the start of the Lean movement, there is widespread agreement that things have not gone according to plan.

Sourced through Scoop.it from: www.bobemiliani.com

 

 

Michel Baudin‘s comments:

Bob’s title for the article is just “What Went Wrong?” which I feel needs to be set in context.

I agree with him that the most popular “Lean tools” are peripheral at best. None of the ones he mentions — 5S, visual controls, value stream maps A3 reports, or gemba walks — would make my list of what should be taught and applied first in a Lean manufacturing implementation. I would, on the other hand, include SMED, cell design, assembly line design based on takt time, etc.

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Jan 15 2016

Lean’s Midlife Crisis | Bob Emiliani

“It seems to be common knowledge that the Lean movement is now suffering from a midlife crisis. Lean movement leaders are perplexed at the widespread continuing emphasis on Lean tools, narrow focus on cost cutting, and the slow uptake of the “Respect for People” principle over the last 15 years. This is the outcome, despite determined efforts to inform people otherwise. I’m not surprised.”

Sourced through Scoop.it from: www.bobemiliani.com

 

Michel Baudin‘s comments:

While I agree with Bob’s overall diagnosis of a midlife crisis for Lean, I object to a few details, the main one being his assertion that Lean descends directly from “Scientific Management,” the brand under which Frederick Taylor sold his consulting services.

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