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Jan 6 2014

We passed 200,000 page views!

Yesterday, the cumulative number of page views since the start of this blog crossed the 200,000 mark. I was hoping it would happen by December 31 to make it an even year since the previous milestone at 100,000, but it came a few days late.

A big thank you to the readers. Please keep making comments.

I hope to keep your interest in the future.

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By Michel Baudin • Announcements • 4 • Tags: Michel Baudin, michelbaudin.com

Jan 2 2014

Lean and Management Processes

An online sparring partner of 15 years, Bill Waddell, concluded our latest exchange with the following:

“Lean is comprised of three elements: Culture, management processes and tools. While you obviously have a keen awareness of the culture and tools, you continually under-appreciate the management processes, Michael.”

It is a 3-step progression: first, Bill makes a general statement of what Lean is, then he points out a serious shortcoming in my thinking, and finally he misspells my name.

As I am not trying to go global cosmic with Lean but instead remain focused on Manufacturing, rather than Bill’s three elements, I see Lean as having the four dimensions identified by Crispin Vincenti-Brown. Whatever you do has some content in each of the following:

  • Engineering, in the design, implementation, and troubleshooting of production lines.
  • Logistics and Production Control, covering both physical distribution and the processing of all information related to types and quantities of materials and good.
  • Organization and People, covering the structure, sizing, responsibilities and modes of interaction of departments in production and support, to run daily operations, respond to emergencies, and improve.
  • Metrics and Accountability. How results are measured and how these measurements are used.

Attention must be appropriately balanced in all of these dimensions and, if one is under-appreciated in the US, it is Engineering, not Management. Metrics and organization issues hog the attention; what little is left over goes towards Logistics and Production Control, and Engineering is taken for granted. The tail is wagging the dog, and reality bites back in the form of implementation failures.

What is a management process, and how does it differ from a tool? The term sounds like standard management speak, but, if you google it, the only unqualified reference to it that comes up is in Wikipedia, where it is defined as “a process of planning and controlling the organizing and leading execution of any type of activity.”

Since Henri Fayol, however, we have all been taught that the job of all managers is to plan, organize, control, and lead. In those terms, there doesn’t seem to be any difference between a “management process” and just “management.” All other Google responses are for the processes of managing different functions, like the “Project Management Process,” “Performance Management Process,” “Change Management Process,” or the “A3 Management Process.” The corresponding images are a variety of box-and-arrow diagrams, pyramids, wheel charts, dish charts, and waterfalls/swim lanes, as in the following examples:

From the Open Learning World
From Agilitrix
From Cedric Saldanha’s Public Sector Management site
From C3 Project Risk Management
From Lee Merhofer Consulting
Harvard Business Review Management Process Dish

A manufacturing process is the network of tasks to make a product from materials — with routes that merge, branch, and sometimes even loop. A business process, likewise, is a network of tasks to turn inputs into outputs, like the order fulfillment process that turns customer orders into deliveries. A political process  is also a network of tasks leading to a particular result, like the election of a president or the approval of a budget. So, what about a management process? And what is the level of appreciation that it deserves?

Bill is the one who should really explain it, but, if I were to use this term, at the most basic level it would be for what I have been calling protocols, by which I mean the part of management work that is done by applying sets of rules or procedures rather than making judgement calls. They are pre-planned responses to events that might occur but are not part of routine operations. It can be the arrival of a new member into a team, the failure of a truck to show up, or a quality emergency.

This is the spirit of Toyota’s Change Point Management (CPM), in which the pre-planned responses are prepared by the teams that are potentially affected by the events and posted in the team’s work place. When the event occurs. all you have to do is retrieve the plan and you know what to do. And it is usually a better plan than what you would have improvised in the heat of the moment.

At a higher level, I would call process a protocol used to organize the way you make judgment calls. You can’t set the strategy of a company by applying rules, but you can use Hoshin Planning to organize the way you do it. A process like Hoshin Planning is akin to the rules of a game; it doesn’t determine how well the managers play. If they just comply with a mandate and go through the motions, they will produce a certain result. If, on the other hand, they understand what they are doing, connect it to their own work, and see the value in it, then they will produce a different result.

A good process does not guarantee a good outcome, and great teams have been able to coax performance out of dysfunctional processes. What is the proper level of appreciation for these management processes? Clearly, there is more to management than processes, and the best managers are those who excel at endeavors for which there is no script.

I learned to appreciate the relationship between management and engineering in Manufacturing from working with my mentor, Kei Abe. When he took me on as a junior partner in 1987, one of the first things I learned from him was to approach problems in a holistic manner, simultaneously at the technical and the managerial levels. I saw him coach a shop floor team on the details of SMED in the morning, and the board of directors on company strategy in the afternoon. It’s not a common mix of skills, but I believe it is what a manufacturing consultant should have.

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By Michel Baudin • Management • 9 • Tags: industrial engineering, Kei Abe, Logistics, Management, Manufacturing engineering, Metrics, Toyota

Jan 1 2014

Internal Threat to TPS due to new Hiring Practices | Christoph Roser

See on Scoop.it – lean manufacturing

“Toyota with its Toyota Production System is the archetype of lean manufacturing, which also makes it to one of the most successful companies on earth. This success is due to outstanding management at Toyota; however, recent changes in hiring practices threaten the Toyota Production System at its core.”

Michel Baudin‘s comments:

Now a professor at Karlsruhe University, Christoph Roser is an alumnus of Toyota Research in Japan, so he has first-hand knowledge of the topic.

Toyota’s response to the Aisin Seiki fire of 1997 is certainly a shining example of its supply chain management practices at work, but its relevance to employee hiring practices is not clear to me.

Also, one should not confuse dominating a meeting with getting decisions to go your way, and learning to say “No” rather than “It would be a little difficult” is just being culturally sensitive.

Having this ability carries no implication on a person’s character.  Being articulate and assertive does not mean being selfish. Being selfish means only looking after yourself. Making sure that what you mean comes across clearly to the other side in a negotiation is perfectly compatible with seeking win-win solutions.

See on www.allaboutlean.com

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By Michel Baudin • Management • 1 • Tags: Hiring, HR, Toyota, TPS

Dec 28 2013

Manufacturing is Making Things — Service isn’t

With services being the dominant source of employment in advanced economies, more and more consultants are turning to this area as the next frontier for Lean, and engaging in debates as to which of Manufacturing or Service has the greatest variability. The level of variability, however, does not strike me as the fundamental difference between the two.

It is more obvious: Manufacturing is about making things, while Service is not. In manufacturing, a physical object is the output. In service, if there is a physical output, it is only an information support, a licence, a boarding pass, a stamped form, a prescription, or a report.

Manufacturing
Service

High volume/Low mix and Low volume/High mix activities exist on both sides. In manufacturing, you have plants making 1 million identical electricity meters per year while others make 200 custom-designed machines and fixtures. In service, you have organizations that issue drivers’ licences all day, every day, and others that provide advice on interior design that is custom for each home and occupant.

Manufacturing needs the appropriate technology and management to make things, including expensive facilities, often with large, noisy, dirty, and even dangerous machines, and a  support structure for logistics, maintenance, quality, etc.  It attracts some people and not others, and the experience of working together in production creates a level of camaraderie that is rarely found in service… I could go on and on.

The consequence is that improving Service is a different challenge from improving Manufacturing. I never bought the notion that a system like TPS, developed to make cars, could be a panacea for all business activities, and this is why I remained focused on Manufacturing.

Whether Lean is an expanded or watered down version of TPS, I consider that it has to prove itself in every new domain, even in Manufacturing. In Service, it seems to help in hospital operations, and the crossover value of industrial engineering in this field has been established since Frank Gilbreth redesigned  operating room procedures 100 years ago.

Would it help in the organization of distribution centers for eCommerce? Perhaps, but it is not a foregone conclusion. Does Amazon use Lean? The closest I could find to a positive answer is one sentence by Jeff Bezos in an Harvard Business Review interview quoted by Pete Abilla on Shmula:

“I literally learned a bunch of techniques, like Six Sigma and lean manufacturing and other incredibly useful approaches.”

Amazon fulfillment center shown on Shmula
Amazon fulfillment center shown on Shmula

Unlike other Shmula readers, I can’t jump from this to the conclusion that Amazon are based on Six Sigma or Lean. Instead, what I hear Bezos saying is “We studied what’s out there, and went our own way.” And that way is a game changer in retail worldwide, worthy of study in its own right.

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By Michel Baudin • Management • 6 • Tags: Lean, Manufacturing, Service

Dec 26 2013

What’s eating John Seddon?

I want you to cheatBack in 1992, Seddon published “I want you to cheat,” as a distillation of then seven years of consulting experience with service organizations in Britain. It contains some general principles, supported by examples. It is quite readable, and contains no personal attacks on anyone. While “I want you to cheat” does not reference any giant on whose shoulder the author sits, more recent publications from Seddon repeatedly acknowledge Deming and Ohno.

It was his comment that “This respect for people stuff is horseshit” at a conference in Iceland in 2012 that drew my attention to his work. While certainly aggressive, it was not a personal attack. The latest kerfuffle is about the following statements in his 11/2013 newsletter:

“Every time I have been to the jamboree they have had an American lean guru spouting nonsense and this is no exception. This time it’s the guru who claims lean fails because it is what he calls ‘fake lean’ and his lean is the way to go! His ‘real lean’ starts with ‘respect for people’. I can imagine ‘respect for people’ events and tee-shirts (he sells tee shirts) while there is no change to the system conditions that drive misery and other forms of sub-optimisation. Only in America; the home of the terrible diseases.

What would you call a profound idea in this guru’s head? A tourist!”

bob emiliani
Bob Emiliani

The target of this attack, although unnamed, recognized himself. It’s Bob Emiliani, and he posted a response on his blog, entitled Kudos to John Seddon.  Bill Waddell then chimed in with John Seddon – Where Ignorance and Arrogance Collide. To Bob, Seddon is like a student who did not understand the concept of “respect for people,” while Bill dismisses Seddon as a blowhard from a backward little country who has failed to understand the depth and the subtlety of the US version of Lean.

Bill Waddelll
Bill Waddell

There is a good reason while the etiquette of on-line discussion groups forbids personal attacks: they cause discussions to degenerate into trash talk and name calling. It may be briefly entertaining, but quickly turns off readers who don’t have a dog in these fights and just want to information. Besides insulting Bob Emiliani, Seddon has steamed up patriot Bill Waddell with derogatory comments about America. You reap what you sow.

I have, however, heard comments that were as strident as Seddon’s from other consultants, from Japan. They were equally dismissive of US Lean, of American management in general, and even the country as a whole. This was usually, but not always, in private communications rather than in publications. These “insultants,” however, often got away with it, with audiences looking past the invective for useful ideas, and I think it is the appropriate response. Ignore the rant and engage on substance. If some is offered, you will be better off for it.

It is also worth pondering why people feel compelled to act this way. For John Seddon, I don’t know; I am not privy to his thoughts, but I can guess. We should remember that, in the market of ideas, we in the US have a worldwide home court advantage. Ideas command more attention and are more credible simply because of the “Made in America” label.

Lean is the most ironic example. The Toyota Production System did not come out of the US, yet the worldwide internet chatter and consulting business about it is dominated by a US version known as “Lean,” which is as faithful to the original as Disney’s Aladdin and The Hunchback of Notre Dame are to Arabian Nights and Victor Hugo’s novel. Borrowing, metabolizing and even distorting ideas from other cultures is done everywhere, and is to be expected; what is special about the US is that the American version radiates back to the world and overwhelms the original.

Last year, the Olympics opening ceremony in London reminded the world where the industrial revolution began. For more than a century, the world looked to Britain as a model for politics, economics, and manufacturing, but these days are gone, and for an idea to come from Britain is now a handicap rather than a credibility enhancer.

John Seddon happens to be British. For 28 years, he has been making a living as a consultant to service organizations in the public and private sector and, as anyone with this kind of experience would, he has developed an approach to doing it. We may or may not agree with it, but it deserves a respectful hearing. What I read into Seddon’s current stridency is that he has not been getting it. I think he is turning up the volume to prevent his voice being drowned out in the Lean tsunami coming out of the US.

Seddon dismisses Lean consultants as “tool heads.” I like tools. I use tools all the time, both in private and professional life. But I don’t use them indiscriminately. Following are three questions about a tool, that I would not ask about a hammer or a phone, but would about, say, Kanban or SMED:

1.    Who invented this tool?
2.    What problem was he/she trying to solve?
3.    Do I have that problem?

They strike me as a reasonable way to decide whether to apply it or not. And where did I find these questions? On John Seddon’s website. I think I will use them with clients.

 

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By Michel Baudin • Deming, Management • 8 • Tags: Emiliani, Kanban, Lean, Seddon, SMED, Systems thinking, Waddell

Dec 24 2013

Using Takt Time to Find Problems Earlier | Zsolt Fabók

See on Scoop.it – lean manufacturing

“The idea of takt time comes from car manufacturing. It shows the elapsed time between two completely assembled cars leaving the factory floor. If the takt time is 2 hours, it means that the factory produces 12 cars a day (24h/2h = 12)…”

Michel Baudin‘s comments:

A nice effort from a software developer to discuss the relevance of the concept of takt to his profession, or lack thereof. Unfortunately, he gets a few details wrong.

The first sentence is “The idea of takt time comes from car manufacturing.” Well, not exactly. Try aircraft manufacturing in Germany in the 1930s.

His example of a car manufacturing plant making 12 cars/day is a bit odd. I suppose such plants may exist in the extreme luxury end of the industry, but 1,000 cars/day at a takt time of 1 minute while working two shifts/day is more common.

“Car manufacturers are producing the same kind of car over and over again.” Well, not exactly. In the past 100 years, the industry has changed. You now make multiple models of cars on the same line, and each unit has its own build manifest with configuration options.

And car companies do not change the takt time every week. It’s more like every four months. Contrary to what the author says, the takt time is not a tool for throughput prediction. The throughput prediction is an input to the calculation of the takt time,  which is a tool to drive how you design and operate production lines. It is adjusted to reflect changes in demand, but not fluctuations, because changing the takt time of a line involves rebalancing the jobs in it.

Having worked in both worlds, I agree that car manufacturing practices are irrelevant to software development. Software development is development, not production. If you want similarity and management tools with crossover value, you should look instead at product development in other industries, not the production of existing products.

See on zsoltfabok.com

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By Michel Baudin • Blog clippings • 0 • Tags: car industry, software development, Takt time

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