Aug 26 2013
Beware the Sirens of Management Pseudo-Science | HBR Blog | Freek Vermeulen
See on Scoop.it – lean manufacturing
“…A common formula to create a best-selling business book is to start with a list of eye-catching companies that have been outperforming their peers for years. This has the added advantage of creating an aura of objectivity because the list is constructed using “objective, quantitative data.” Subsequently, the management thinker takes the list of superior companies and examines (usually in a rather less objective way) what these companies have in common. Surely — is the assumption and foregone conclusion — what these companies have in common must be a good thing, so let’s write a book about that and become rich…”
Bill Waddell branded the author of this article “The Naysayer Personified,” which prompted me to read it. Vermeulen’s first target it “In Search of Excellence,” a best seller from the 1980s that pointed out “excellent” companies that didn’ excel so much after the book came out. I had read it at the time, and had found it little more than a cheer-leading compilation of the public relations literature of the companies. So far, I agreed with Vermeulen.
Further on, he bashes as management fads not only Six Sigma, TQM, and ISO-9000 — no argument here — but also Lean. Ouch! This is my stock in trade, and I really should argue that Vermeulen doesn’t get it.
But my heart is not in it. Much has been done in the name of Lean by now that amounts to little more than slapping the label onto ideas that are unrelated to the Toyota Production System (TPS), and it hasn’t been particularly effective.
That is not what Lean is to me. I see it as the adaptation to other contexts of the principles that have made Toyota successful in the car business, involving in practice the selection and adaptation of relevant TPS tools, as well as the development of new ones. And I admit readily that it is not a panacea. There are plenty of human endeavors to which it does not apply, but what interests me is the ones to which it does.
When you want to discuss this now, just can’t just say “Lean,” you have to qualify it as “Lean Deep” or “True Lean,” as opposed to “Lean Lite” or “Lean As Mistakenly Executed” (L.A.M.E.).
Could the same be said of the other approaches Vermeulen criticizes? To some extent, yes. Six Sigma and TQM, for example, are based on real contributions made in specialized areas, before their promoters went global cosmic.
See on blogs.hbr.org
Aug 27 2013
Piecework and Excellence Cannot Coexist | Bill Waddell
See on Scoop.it – lean manufacturing
“There are only a few absolutes when it comes to lean but one of them is that there has never been a company that achieved true manufacturing excellence that paid its folks on a piecework system. It can’t happen – ever – period. Either you want to make the right product at the right time … or you just want to make a whole lot of stuff. You can’t have it both ways.”
A couple points that could be added are:
In the 1990s, I was surprised to learn that 2/3 of factory workers in Germany were still paid on a piece rate, which I was told after observing an operator getting furious at a machine that he couldn’t get to start because of a faulty safety latch. I also learned the piece rates are not set by the company directly but by an external organization called REFA that is accredited for this purpose by the unions. In that plant, everybody was producing to 140% of the standard, the performance that generated the maximum income for the operators.
See on www.idatix.com
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By Michel Baudin • Blog clippings 1 • Tags: Lean, Piece rate, wage system