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Feb 27 2014

A brief rant about the ABC’s | Bill Waddell

See on Scoop.it – lean manufacturing

“Apparently the folks writing about stratifying inventory into A, B and C items and building calculations of such into ERP packages didn’t get the lean memo.

Wikipedia is typical of such thinkers when they describe the ABC thought process as:

  • ‘A’ items – 20% of the items accounts for 70% of the annual consumption value of the items.
  • ‘B’ items – 30% of the items accounts for 25% of the annual consumption value of the items.
  • ‘C’ items – 50% of the items accounts for 5% of the annual consumption value of the items.

The idea of micromanaging some items and slacking off on others based on purchase price is the very same theory they taught me at the University of Cincinnati back in the days  when … ”

Michel Baudin‘s comments:

I agree with Bill that, from the point of view of manufacturing operations, the purchase price of materials is not the most important parameter. because the lack of a nail can prevent the completion of a product as effectively as the lack of a pump costing 1,000 times more.

It doesn’t mean, however, that classifying items to treat them differently is wrong, but it must be done by frequency of use rather than price, and I prefer to call the categories “Runners,” “Repeaters,” and “Strangers” rather than A, B, and C.

As a function of rank, I then look for the percentage of units actually built that can be fully assembled with only the items of this rank and higher. It starts at 0%, and, as long as it stays at 0%, I consider the items to be Runners, essentially items you can’t build any product without. At the other end of the spectrum, I call Strangers all the items without which you can make 95% of the units. And everything in-between is a Repeater.

Then you may decide, for example, to dedicate an easily accessible storage location to each Runner, and make special arrangements with suppliers. For Repeaters, you may use the Kanban system, with smaller dedicated locations.  And you don’t keep any stock of Strangers, but order them as needed and store them, if at all, in dynamically allocated slots.

See on www.idatix.com

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By Michel Baudin • Blog clippings 3 • Tags: ABC analysis, Lean, Low-Volume/High-Mix, Pareto, Runner-Repeater-Stranger

Feb 25 2014

About Frederick Taylor and “taylorism”

“What is “Taylorism” ? Why is it called ‘Taylorism’?” asked Emmanuel Jallas in the TPS Principles and Practice discussion group on LinkedIn. To understand Taylor, I would recommend reading not only his own works, particularly Shop Management, but also Robert Kanigel’s biography of him, The One Best Way.

Frederick Taylor was first an engineer and co-inventor of the Taylor-White High Speed Steel machining process. It is not what he is best known for today, but that he did this kind of work is revealing about the kind of man he was. While self-taught, he had enough depth as a young man to challenge established beliefs about metal cutting and conduct experiments that proved it could be done twice as fast. This work led to the development of a feed-and-speed calculation slide rule for lathes at Bethlehem Steel.

Another detail that struck me in the discussion of stopwatch time studies in Shop Management was the method he recommended to calculate times for production steps that are too short to be accurately measured individually. He proposes to measure them in groups, for example, from the 1st to the 5th, the 2nd to the 6th,  the 3rd to the 7th, etc. and  solve a system of linear equations to infer times for each step. Then he explained that this worked if and only if the number of steps in each group was relatively prime to the total number of steps. While true, it is beyond the level of arithmetic usually found in industrial engineering texts, particularly of that era.

Frederick Taylor quote
Frederick Taylor quote

Taylor’s technical depth, however, was coupled with such a crude and dismal view of human nature that is could be called “contempt for people.” His explicit goal in Shop Management is to prevent workers from colluding to curtail output, which he calls “soldiering.” See Perpectives on Standard Work for a discussion of the differences between his approach and that of Frank and Lillian Gilbreth.

He is best known for his use of stopwatch time studies for this purpose, but the confrontational and adversarial way he did it set the stage for decades of conflict with labor and ultimate defeat. While stopwatch time studies are the skill most associated in the public mind with industrial engineers (IEs), most university IE programs don’t even teach it anymore. Such studies are rarely conducted in manufacturing plants and, when they are, the results are so laden with allowances and fudge factors as to be meaningless.

The most commonly used alternative is predetermined time standards, mostly Maynard’s MTM or MOST, and the most effective way to analyze operations is not to time them directly with a stopwatch but to make video recordings and analyze them off line together with the operators involved. See Using Videos to Improve Operations, Parts 1 to 7. When doing this kind of work today, Taylor’s legacy is one of fear that must be overcome before starting.

A more enduring and positive Taylor legacy is his work on functional foremanship. While I have never seen a manufacturing organization follow his recommendations exactly, he defined a number of support functions for production that closely map the ones you do find today. What Taylor called a “Gang Boss” is now a Production Supervisor or an Area Coordinator; his “Speed Boss,” a process or manufacturing engineer; his “Routing Clerk,” the technical data manager; his “Shop Disciplinarian,” the Human Resource manager, etc. Taylor saw each production worker as having eight such functional foremen, which was obviously impractical and no one implemented. What remains is that, through the existing support departments, we can still see the categories he specified.

Taylor’s name is also often mistakenly associated with the invention of the assembly line. It was done at Ford, shortly before Taylor’s death in 1915, and he had nothing to do with it. His work is about individual operations, not end-to-end flow.

Taylor was also the first consultant. As a corporate executive, he was not successful, and found that he could make a living as an independent, selling advice instead. The profession he thus created has been a haven for corporate misfits ever since.

It is usually opponents of an approach who reduce it to an “-ism.” Taylor and his supporters talked about “Scientific Management,” which is an overstatement; labor unions that fought it called it “taylorism,” which makes it sound like an opinion or a movement and denies it has any objective basis. You don’t ever hear of “newtonism” or “einsteinism,” but evolution deniers talk about “darwinism.” Likewise, today, people who oppose the implementation of Lean or TPS call it “toyotism,” which, to them, has the added advantage of sounding ominously like “taylorism.”

 

 

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By Michel Baudin • History 14 • Tags: Functional department, Taylor, Time Studies, Toyota

Feb 24 2014

One on one with John Shook | Lean Management Journal

See on Scoop.it – lean manufacturing
“LMJ Editorial Director, Jon Tudor, meets chairman and CEO of the Lean Enterprise Institute, John Shook, for the second in our One on one series. Jon asks some tough questions posed by a select few of the lean community’s …”

See on www.leanmj.com

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By Michel Baudin • Press clippings 0 • Tags: Lean, Six Sigma

Feb 22 2014

Chrysler WCM Academy Hosts First-Ever Awards Ceremony — WARREN, Mich., Dec. 13, 2013 /PRNewswire/ —

See on Scoop.it – lean manufacturing

Chrysler’s Rod Engle and his ETTEE award for reducing costs

“WARREN, Mich., Dec. 13, 2013 /PRNewswire/ — Lights! Glamour! Assembly lines? Chrysler Group’s WCM Academy Hosts First-Ever Awards Ceremony.

In true Hollywood style, Chrysler Group and the UAW rolled out the red carpet for the Company’s high achievers in manufacturing at the first-ever World Class Manufacturing (WCM) Academy Awards ceremony …”

 

Michel Baudin‘s comments:

Awards, and the rituals of presenting them to winners, are a tool of management communication. To give the desired message, you need to think through what you give the awards for, who you give them to, and the mix of tangible and symbolic rewards attached.

Chrysler awards categories are not all self-explanatory, and there some that I just don’t understand. The name of the awards, ETTEE, stands for “Excellence, Talent, Togetherness, Energy, Etc.”

There are no awards under the “Etc.” heading. All the “Talent” awards are given to individuals for “Highest Level of Project Savings.” In other words, the only form of talent recognized is that of individuals to reduce costs.

Under “Excellence,” you have more individual awards for “Trainer of the Year,” “Facilitator of the Year,” and “Most Projects Tracked by an Individual.”

Under “Togetherness,” you have awards for plants and teams: “HHH Best in Class,” “Highest Percentage of People Involved,” and “Excellence in Joint Leadership,”

Under “Energy,” you have plant awards for  “”Highest Percentage of Projects Tracked by Plant, ” and “Most Hosted Plant.” and and individual awards for “Most Training Hours Completed.”

For the “person of the year” type of awards, the name gives no indication of the evaluation criteria, and perceptions of fairness may be as difficult to achieve as in Olympic figure skating.

On the other hand, awards given based on metrics —  like cost savings, percentage of people involved, or number of hours of training taken — have objective criteria that individuals can understand and pursue. The key issue here is whether you really want your employees to do that.

See on www.prnewswire.com

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By Michel Baudin • Management 0 • Tags: Award Ceremonies, Awards, Chrysler, WCM, World Class Manufacturing

Feb 19 2014

When Toyota met e-commerce: Lean at Amazon | Marc Onetto

See on Scoop.it – lean manufacturing
“The spirit of lean management was already at Amazon when I arrived in 2007. Since the day he created Amazon, Jeff Bezos has been totally customer-centric. He knew that customers would not pay for waste—and that focus on waste prevention is a fundamental concept of lean. The company’s information technology was always very good at understanding what the customer wanted and passing the right signal down. ”

Michel Baudin‘s comments:

Read this article for a personal account from Amazon’s vice president of worldwide operations and customer service through 2013.

The title is misleading, in that the article is not about any assessment of Amazon by Toyota, and the connection between the Amazon practices Onetto describes and TPS or Lean are tenuous.

For example, a service agent taking a product off the website based on repetitive customer complaints on quality is described as “pulling the Andon cord,” which is a far-fetched metaphor.

An Andon cord, or stop rope, is supposed to be pulled whenever an operator notices anything wrong during the production process. It is not a response to repeated customer complaints and it does not result in pulling the product off the line.

Linking Amazon’s approach to Toyota is unnecessary. Amazon has been doing a great job; it is leading the world in e-commerce, an activity that is outside Toyota’s expertise. It is Amazon’s own approach, and they might as well call it the “Amazon Production System.”

See on www.mckinsey.com

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By Michel Baudin • Press clippings 0 • Tags: Amazon, Lean, Toyota, TPS

Feb 18 2014

(Still) learning from Toyota | Deryl Sturdevant

See on Scoop.it – lean manufacturing
“A retired Toyota executive describes how to overcome common management challenges associated with applying lean, and reflects on the ways that Toyota continues to push the boundaries of lean thinking.”

 

Michel Baudin‘s comments:

You just can’t pass up an article with the perspectives on Lean of a recently retired Toyota executive, even if it is in the McKinsey Quarterly. Most interesting are his stories about plants outside of Toyota that he visited recently, where he criticizes his hosts for complacency.

Because of the author’s background, when he says “Lean,” he means TPS or the Toyota Way. He also uses Toyota’s own “respect for people.” mistranslation of its “respect for humanity” (人間性尊重) principle.  Again, it’s not about saying “please” and “thank you” but about taking full advantage of the unique capabilities people have when compared to other resources.

See on www.mckinsey.com

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By Michel Baudin • Press clippings 0 • Tags: NUMMI, SMED, Toyota Production System, Toyota Way

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