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Nov 6 2013

Standards and Opportunities for Deviation

“Every time you set a standard, you create possibilities for deviations, and the need to respond,” David Meier said. The setting was a presentation on problem-solving at a corporate in-house conference. It struck me as a concise statement of why managers should issue standards only where clearly and unquestionably useful.

Unnecessary standards were discussed in an earlier post, but the topic is worth revisiting in greater detail, first because there are so many of them in companies, making work life more complex than it has to be, and second, to elaborate on their impact on the organization.

Standards are rules set for others to follow, and rarely welcome, particularly when these others are thereby  required to change behaviors they consider rational and appropriate, and sometimes more advanced than the standard. If you don’t enforce your unnecessary standard, your hurt the credibility of all your standards, including the useful ones; if you do, you turn into Captain Queeg, as he “tried to run the ship properly, by the book.”

All pens different
All pens different
All standard pens
All standard pens

The reception desk in the lobby of the building where the conference took place had a holder  full of pens for visitors to sign in. No two pens were alike. A Captain Queeg would have had none of that; he would have mandated a model of pen and a color of ink, and set  up regular audits to monitor compliance.

Office 5SThe example David gave was of office 5S zealots in Germany who had marked a location for a computer mouse on an individual’s desk and written him up for not complying. Last year, Mark Graban had posted a similar example of “5S” at a desk in the UK, shown on the right.

It reminded me of my experience of working in a Japanese office in the 1980s. It was a room with about 30 gray metal desks arranged in facing rows without any partitions. Everywhere else I have worked, each desk had its own supplies of staplers, staple-removers, scissors, glue sticks, etc., but it was not so in that office. These were shared resources, stored in a transparent plastic chest in the center of the room,  with a label for each compartment.

This arrangement sounds right out of a Staples commercial, but that was the way it was. What struck me about it,  however, was that the sharing created the need for labeled locations and for the discipline to return the items to assigned locations after use. This approach might make sense in offices used in hotelling mode. Everywhere else, however,  each office worker has a dedicated desk that comes with a set of  tools, that the employee organizes as he or she sees fit.

In the 21st century, the tidiness of desks does not have much to do with the performance of an office. What really makes a difference is the way information is organized on its computer network, and that is not visible when you walk through the office. But effective ways to do this are a whole other discussion. In factories, 5S in the offices is sometimes justified “to show solidarity with the shop floor.” It has been suggested to me that a better way to show solidarity might be to make the offices as hot, smelly and grimy as the shop floor.

Sometimes, the consulting companies that guide 5S implementation in client offices do not practice it in their own. In one particular firm, as consultants were in the field most of the time, they had no permanent desk, and grabbed an available one when they happened to be in town. With such a system, you might have expected the rooms to be numbered, and to have a magnetic board at the entrance with token for each present consultant to mark on a map of the facility where he or she could be found, but the managers felt that such a board would have been “ugly.” They never told me why they didn’t number the rooms. To locate a consultant you had to call his or her cell phone, and then follow instructions like “go left at the top of the stairs and it’s the third door to the right.”

Besides the size of steel balls at the end of motorcycle brake handles and company email addresses listed in my earlier post, there are many other things that are better off not standardized, and prominent ones include the analytical tools used in problem-solving.

The institutions of the quality profession in the US still promote as a standard the 80-year old tools of SPC, as if the art of collecting and analyzing data had not evolved since 1930. These tools are obsolete, but it would be a mistake to replace them with another set as a new standard.

There should be no standard. The professionals who work on improving quality should learn to use a broad variety of tools, and should be free to use whichever they think may help in their current circumstances. And they should always be on the lookout for new approaches and new technology.

Likewise, Value Stream Mapping (VSM) has, in the past 15 years, been elevated in the US to the position of a standard that all Lean practitioners are mandated to use. The need to map flows of materials and information in a manufacturing supply chain is often real, but there is no need for it to be done in a specific format with a specific set of symbols.

In fact, what happens in both situations is that formal compliance with the standard rapidly becomes the only criterion against which the outputs of quality or flow improvement teams are reviewed. The tools, their appropriate use, and their range of applicability are understood neither by the teams mandated to use them nor by the auditors who make sure they do, and the result is wallpaper.

 

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By Michel Baudin • Management • 2 • Tags: Captain Queeg, Quality, SPC, Standard Work, Standards, VSM

Oct 28 2013

Lean – Not Just for Manufacturing Anymore | Jabil Blog: Aim Higher

See on Scoop.it – lean manufacturing
“Although manufacturers have embraced lean and continuous improvement for decades, the concept is still relatively new in the entrepreneurial world. Led by Eric Reis and his groundbreaking 2011 book, The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses, innovators across the globe are using lean startup methods to launch new ideas and new companies.”

Michel Baudin‘s insight:

When I read Eric Reiss’s “The Lean Startup,” I thought it was an interesting read, from which I could glean a few new ideas. What I failed to see, however, is any relationship between Reiss’s ideas and Lean Manufacturing. Reiss sees one, and says so, but I would be hard put to explain what it might be.

See on blogs.jabil.com

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By Michel Baudin • Blog clippings • 4 • Tags: Entrepreneur, Lean, Lean Startup, Reiss, Startup

Oct 25 2013

Top misconceptions of the Lean movement, according to Jim Womack | Financial Post

See on Scoop.it – lean manufacturing
“Misconception 1: ‘Lean is a cost-cutting exercise.’

Misconception 2: ‘It is about factories.’

Misconception 3: ‘Lean is a within-the-walls activity to fix your company.’

Misconception 4: ‘Lean is an improvement process production people can do — management doesn’t have to do anything.'”

 

Michel Baudin‘s insight:

I agree with points 1 and 4, but I have issues with 2 and 3. “The Machine that Changed the World” was a book about factories, and it was based on a worldwide benchmarking study of the car industry sponsored by the Sloan foundation.

Mission accomplishedLean is proven in Manufacturing, by the success of Toyota and a  few other manufacturing companies. That Lean is applicable outside of Manufacturing is possible, and plausible, but not proven. Even in Manufacturing, it is far too early to proclaim “mission accomplished,” as most attempted implementations in factories have yet to deliver the expected results.

As for expanding beyond the walls of your company into the supply chain, yes, you should do it but not before you have your own house in order. Toyota itself didn’t do it until the late 1970s.

Going to suppliers before you have  transformed your internal operations is not a recipe for success. Womack does not claim it is, but branding a focus on internal operations a “misconception” is an encouragement for managers to shift their focus to suppliers too early.

See on business.financialpost.com

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By Michel Baudin • Press clippings • 1 • Tags: Lean, Lean manufacturing, Womack

Oct 24 2013

Toyota Lagging in Part Standardisation and Platform Sharing | Autocar

See on Scoop.it – lean manufacturing
“Kanban-style just-in time parts deliveries, kaizen policies of continuous improvement – Toyota has been a banner-carrier for these and many other methodologies that long ago gave it an edge when it comes to productivity and robust, repeatable quality.

So it’s a bit of a surprise to hear, as we did last week in Toyota’s Nagoya headquarters, that the company has been a bit less effective when it comes to parts standardisation, platform sharing and common parts strategies.”

 

Michel Baudin‘s insight:

I was taken aback by the article’s original title, describing Toyota as a “master of mass production,” but read on nonetheless and found the rest intriguing.

In essence, it asserts that Toyota paid for the autonomy of its product development teams in the form of too many different parts and platforms, and is undertaking to change this for the future.

The article does not say how Toyota proposes to do it.

See on www.autocar.co.uk

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By Michel Baudin • Press clippings • 0 • Tags: Common platforms, Part standardisation, Toyota

Oct 22 2013

Employees are Colleagues, Not Assets | Eric Bigelow | IndustryWeek

See on Scoop.it – lean manufacturing

“A lot of organizations claim that employees are their greatest assets. To many this seems like a very profound way to view the employees. I disagree. I think that this terminology can be very harmful to organizational culture.

The word asset means ‘anything tangible or intangible that is capable of being owned or controlled to produce value.'”

Michel Baudin‘s insight:

This is a point I have grown tired of making in vain. Assets are things you own and, unless they are slaves, you don’t own the people who work for you. Saying “People are our greatest assets,” is not only inaccurate and distasteful, it also suggests that you want to have as many assets as you can.

In private life, it may be true: the more you own, presumably, the better off you are. Business, however,  is different: you want to generate income with as few assets as you can get away with. That’s why you monitor ratios like “Return on Assets.”

Assets and liabilities are mistakenly viewed as positives and negatives. They are in fact technical terms from accounting to designate respectively what you own and what you  owe. Whether you like it or not, you own excess inventory, and it is an asset you would rather not have. A 0% long-term loan, on the other hand, is a liability you are happy to have.

In and of themselves,  employees are neither assets nor liabilities. On the balance sheet, what the company owes them in benefits appears in the Liabilities column. So does the shareholders’ equity. There should be no value judgement attached to terms like Asset or Liability.

See on www.industryweek.com

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By Michel Baudin • Management • 1 • Tags: asset, liability, Management

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