Your Workplace Culture -- Is It "Sick"?

This month, I had a very enlightening conversation with Robert B. Camp about his most recent book, Workplace Culture Matters: Developing Leaders Who Respect People and Deliver Robust Results. Written in a novel format, this book addresses the challenge of changing  "sick" cultures that exist in many organizations -- That is, it is directed at those organizations that wake up one day and realize they have become something they never intended. Their employees run scared. There is no innovation, only blind obedience. There are warlords within the ranks of management, and they fight over turf without considering the best interests of customers, their employees, or their organization as a whole.

During my conversation with Robert, I asked him specifically: "What are the most common causes of ‘sick’ workplace culture? Here is his full response:

Cultures become sick when leaders no longer care about their people, when they put products, clients, or profit ahead of the vehicle through which they achieve those things: employees (people).

Factories don’t make anything.  They’re just buildings. Machines, including computers, don’t make anything.  Without proper guidance, they are just inanimate objects. 

It is no coincidence that Toyota lists Respect for People among the two factors critical to its success (Toyota-global.com; Toyota Way 2001).   

In Workplace Culture Matters, there is a dialog that takes place that elucidates this concept.  Jim, the VP of Operations for Friedman Electronics, explains the following to Jack, the Branch VP of a troubled organization.

“At Friedman, we believe our future starts with hiring the right people,” Jim explained.  “While there are exceptions, we tend to hire for attitude and train skills."

“Wait,” Jack interrupted, “how do you know you’re getting people who can actually do the job   you’re hiring them for?”

“Good point, Jack,” Jim conceded.  “First, we try to grow talent within, so most of our openings are entry-level.”  

“Also, we have created step-by-step instructions — what is called Standard Work — for all our   jobs, so even if someone had come in already having done that job somewhere else, we’d have to retrain them to do it our way.  We’ve learned that, if we hire self-disciplined people with the right attitude, we can challenge and grow them for the rest of their careers.”

As Workplace Culture Matters makes clear, a healthy culture starts with healthy leaders, leaders who agree to common objectives and hold themselves accountable to them, before they hold anyone else accountable.  They then tailor and cascade those objectives down through the organization as a way of aligning everyone and giving them a way of independently knowing how they are doing.  

Finally, leaders of healthy cultures get out of their offices and go to where work takes place, both as a way of knowing what problems their people face and of engaging in dialogs that build bonds of trust and bi-directional loyalty.

What do think of Robert's view on how workplace culture becomes "sick"? How does the leadership in your organization function? Does it encourage or hinder a healthy culture?

Lean in High-Mix Low-Volume (HMLV) Manufacturing -- Does it Work?

Lean thinking and methodology have resulted in many organizations instituting powerful initiatives and gaining major improvements, but most still associate Lean principles with low-mix high-volume (LMHV) manufacturers. There are, however, a gamut of high-mix low-volume (HMLV) manufacturers that wonder if the power of Lean is really applicable to them given their very different factors regarding volume, variety, and scheduling.

I recently spoke with Shahrukh Irani – who actually just published a book entitled Job Shop Lean:  An Industrial Engineering Approach to Implementing Lean in High-Mix Low-Volume Production Systems – and asked him the very specific question: “How is Lean applicable in High-Mix Low-Volume (HMLV) manufacturing?” Here is his detailed answer: 

Of all high-mix low-volume (HMLV) manufacturers, a job shop has the most complex production system.  The classification of different production systems that is shown in Figure 1 provides the simplest evidence that forcing a job shop to adopt a production system and tools that were designed to improve a repetitive assembly line’s performance is like fitting a square peg into a round hole. 

Figure 1: Comparison of an Assembly Plant and a Custom Fabrication Job Shop

Currently, nearly every job shop has failed to realize the full gains from Lean because they have stopped at implementing only the Lean tools listed in the left-hand column of Table 1.  In contrast, the Lean tools in the right-hand column of Table 1 are ineffective, often inapplicable, in any job shop.  So how does any Lean job shop reap additional benefits from Lean?  By implementing a new “Job Shop Lean Toolbox” in which the Lean tools in the right-hand column of Table 1 have been replaced with other tools that were developed for job shops!  

Table 1: A New “Job Shop Lean Toolbox” for High-Mix Low-Volume Manufacturers

Lean tools that will work in job shops also	Lean Tools that will not work in job shops
Strategic Planning	Pencil-and-Paper Problem Solving
Top-Down Leadership	Value Stream Mapping
Gemba Walks by Managers	Assembly Line Balancing
Employee Engagement	One-Piece Flow Cells
Workplace Design with 6S	Product-specific Kanbans
TPM (Total Productive Maintenance)	FIFO Sequencing of Orders
Setup Reduction (SMED)	Pacemaker Scheduling
Error-Proofing (Poka-Yoke)	Inventory Supermarkets
Quality At Source	Work Order Release based on Pitch
Visual Workplace	Production based on Level Loading
Product and Process Standardization	Mixed Model Production with Takt Time
Right-sized Flexible Machines	Right-sized Inflexible Machines
Standard Work	Pull-based Production Scheduling
Continuous Problem-Solving	Manual Scheduling with Whiteboards

 

If the Tool Works for High-Mix Low-Volume, Then Job Shop Lean Uses It!

In Table 1, the tools in the left-hand column will also work in HMLV production systems.  “Top-down Leadership” and “Employee Involvement” are essential.  “Standard Work Instructions” and “Setup Reduction” are needed to minimize variation in setup times on any machine (or manufacturing cell) due to different parts having varying setup sequences, tooling packages, material sizes, tolerances, etc.  “Quality at Source” empowers employees to reduce costs, take pride in their workmanship and have ownership for their work.   “Right-sized Machines” appears in both columns of Table 1 because simple machines are easy to learn to use, setup, operate and maintain.    

If the Tool Does Not Work for High-Mix Low-Volume, Then Job Shop Lean Replaces It!

In Table 1, the tools in the right-hand column will almost never work in HMLV production systems because those tools are simply not applicable to MTO (Make-To-Order) HMLV production systems that do not operate like assembly lines.  It is these tools that have been replaced by a more effective set of tools, often enabled by software, to successfully implement Job Shop Lean.

What do you think of Shahrukh's observations? What are the experiences of those who work in a HMLV environment and have been part of a Lean initiative?

Applying Gemba Walks to the Service Industry

This week, I spoke with Robert Petruska, who recently published a book titled Gemba Walks for Service Excellence: The Step-by-Step Guide for Identifying Service Delighters, about the importance of "gemba walks" and their role in improving service organizations.
The Japanese term gemba roughly translates to "the place where value is created," and gemba walks in the service industry involve management visiting the point in the service process in which customers interact directly with the organization.

I asked Robert,"Why are gemba walks important for the service industry?" And, here is his complete response:

Customer expectations are always changing, and the challenge for service providers seems to be how to get ahead of the competition.  I think every company would like to delight customers, but could use some fresh ideas.   

A fabulous technique used to improve manufacturing is the gemba walk, and it is fairly new to the service industry.  The overarching goal of a gemba walk is to help companies identify new customer delighters by engaging the front lines in a creative way, thereby providing a competitive advantage. 

You may have heard about a reality TV show called “The Undercover Boss,” in which a CEO clandestinely works as a front-line employee.  It’s usually eye-opening for the CEO to experience the actual working conditions firsthand.  The important thing about this are the changes made as a result of the CEO getting out of the office.  In contrast, during a gemba walk, leadership works with a team to study an entirely different industry. 

To prepare for gemba walks, team members learn to observe an entire service experience with an eye for those subtle nuances unique to that industry.  During debriefing, the team is asked what happened during those “moments of truth” that could potentially delight customers. People are then asked to look outside of the box, innovate, and to come up with better ways of providing exceptional experiences for their own customers.  This opens the door for engaging the heads, hearts, and hands of people who represent the “face” of your company. Most importantly, leadership asks what was learned from all of this and what could potentially be incorporated into their own service portfolio. 

Most people want to do a good job, and gemba walks is a great tool that can be used to improve the service experience for your customers.

Do any readers in the service industry have experiences with gemba walks? Were they successful? Did they lead to innovation and eliminate waste?