I recently had a conversation with John W. Davis, author of Progressive Kaizen:: The Key to Gaining a Global Competitive Advantage and president of WFM Associates, and he discussed what he call "misguided pragmatism" in regard to Lean initiatives in US companies. I asked him to elaborate and here was his response:
It has been well over a decade since US industry was introduced to the Toyota Production System (TPS). During the same period, US manufacturing has gone through the greatest surge of plant closings and layoffs since the Great Depression - and the trend seems far from over. At first glance, this would serve to leave the impression that Lean Production has not been the panacea it was touted to be. But is the culprit Lean itself or how US industry typically aligns itself to the task?
That is a question that has and will continue to be explored in corporate offices and boardrooms across America. But to do the matter justice, the issue of conventional mindset and its impact simply cannot be ignored. Misguided pragmatism comes to bear when management accepts the need for change, but holds strong proclivities related to the way business has always been conducted. Coupling this with pragmatism surrounding the value of the change itself and the result will always be a restriction in the depth of Lean implementation pursued.
If the ultimate mission, assumed or otherwise, is to implement some of the tools of TPS, efforts will be applied at inserting various levels of Kanban, SMED, Poka-Yoke, etc. On the other hand, if the mission is aimed at fully and irreversibly changing the system of production (and is clearly understood as such by all concerned), strong efforts in achieving that goal can occur. The driving objective has to be more than making incremental improvement to an old and cumbersome system of production. It has to be aimed at establishing a mindset that a full and complete change to the system of production is absolutely crucial. If that one point is effectively understood, everything else will tend to fall in place.
What do you think of John's opinion? Do you feel that Lean initiatives have the tendency to merely "shine and polish" an outdated system instead of creating a transformation?
2.17.2011
Lean for the Public Sector
I recently spoke with Bert Teeuwen who has spent 12 years as trainer, coach, and implementer of Lean in both industrial and public environment and currently serves as a consultant with the WagenaarHoes organization. He recently published a book titled Lean for the Public Sector: The Pursuit of Perfection in Government Services.
I asked Bert: "The title of your book suggests that processes in government are so unique they demand a specific Lean method to improve them. Why are these particular methods needed?" Bert's reply was quite interesting:
Most books about Lean are written with industry in mind. All the examples are about machines and installations. Some books are about Lean in the office, but civil servants are not impressed by all these examples from businesses. Public servants want to read a book about Lean when it contains examples from their own working environment.
The main reason, however, is that Lean in the public sector is indeed different! Organizations in the public sector function on a non-profit basis, so what should they do with the time or money earned with Lean? Another point is that considering a citizen as a customer is not always correct. Citizens are customers sometimes, but often they are subjects, voters, taxpayers, and users. When a parking guard or a policeman gives you a bill for incorrectly parking your car. Are you his customer? Are you in the position to say no and go to a competitor? In addition, consider the application for a building permit. As far as the applicants are concerned, they can build perfectly without that permit. But the permit was not created to solely serve the applicants but, for example, to protect their neighbors against excessive and intruding extensions to the applicants' houses. There is a different discussion about who is adding value to whom in the public sector.
And what about the pull principle? What is pull in the public sector? Is pull in the public sector always better? No, sometimes push is better, because the government has a duty to provide certain services for its citizens, even when they don't ask for it.
What are your thoughts about Bert's reply? What do see as the particular needs of the public sector in regard to Lean initiatives?
I asked Bert: "The title of your book suggests that processes in government are so unique they demand a specific Lean method to improve them. Why are these particular methods needed?" Bert's reply was quite interesting:
Most books about Lean are written with industry in mind. All the examples are about machines and installations. Some books are about Lean in the office, but civil servants are not impressed by all these examples from businesses. Public servants want to read a book about Lean when it contains examples from their own working environment.
The main reason, however, is that Lean in the public sector is indeed different! Organizations in the public sector function on a non-profit basis, so what should they do with the time or money earned with Lean? Another point is that considering a citizen as a customer is not always correct. Citizens are customers sometimes, but often they are subjects, voters, taxpayers, and users. When a parking guard or a policeman gives you a bill for incorrectly parking your car. Are you his customer? Are you in the position to say no and go to a competitor? In addition, consider the application for a building permit. As far as the applicants are concerned, they can build perfectly without that permit. But the permit was not created to solely serve the applicants but, for example, to protect their neighbors against excessive and intruding extensions to the applicants' houses. There is a different discussion about who is adding value to whom in the public sector.
And what about the pull principle? What is pull in the public sector? Is pull in the public sector always better? No, sometimes push is better, because the government has a duty to provide certain services for its citizens, even when they don't ask for it.
What are your thoughts about Bert's reply? What do see as the particular needs of the public sector in regard to Lean initiatives?
2.11.2011
Receiving Effective Feedback
I recently had a conversation with change management expert Rick Maurer, who recently published a second edition of his best-selling book, Feedback Toolkit: 16 Tools for Better Communication in the Workplace. While we agreed that feedback is essential at work, I stated that many would say that they don’t receive effective feedback. I asked Rick to offer his opinion on why many employees feel this way. Here is his response:
"Feedback can mess with our self-image. In spite of what we say, most of us don’t want people telling us that we fell short or are doing something the wrong way. So, we set up mechanisms to protect ourselves from hearing anything that might disrupt our fragile view of who we are. For example, we surround ourselves with the proverbial yes-men and yes-women or we send mixed messages. The movie model, Samuel Goldwyn, once said 'I want people to tell me the truth, even if it costs them their jobs.' Wise employees understood which part of the message to heed.
If we want a workplace where colleagues give us feedback, then we must do things that assure people we truly want to hear from them. Here are a few points to consider:
"Feedback can mess with our self-image. In spite of what we say, most of us don’t want people telling us that we fell short or are doing something the wrong way. So, we set up mechanisms to protect ourselves from hearing anything that might disrupt our fragile view of who we are. For example, we surround ourselves with the proverbial yes-men and yes-women or we send mixed messages. The movie model, Samuel Goldwyn, once said 'I want people to tell me the truth, even if it costs them their jobs.' Wise employees understood which part of the message to heed.
If we want a workplace where colleagues give us feedback, then we must do things that assure people we truly want to hear from them. Here are a few points to consider:
- Only ask for feedback if you are willing to hear what others have to say. Otherwise, you are setting them and yourself up for a very uncomfortable exchange.
- The only appropriate response to feedback is 'thank you.' Of course you can ask questions of clarification, but don’t make excuses or explain your reasons for doing something.
- Make it easy for others to give you feedback. Jack was a client of mine who asked people to anonymously write reactions to a new management initiative on index cards and submit them to his secretary. At the all-hands meeting, he first said 'thank you.' And then he picked up that large stack of cards and responded to questions and comments. He did not defend himself. He took responsibility for his actions and decisions, and used their feedback to engage them in a conversation about what comes next.
- Jack found a way that made it easy for him to take in what others had to say. Note that he did not ask for comments during the meeting. He knew that he might hear something that would cause him to go ballistic, and that would end the meeting. . Getting comments before the meeting gave him time to react privately before he met with the team."
What are your thoughts on Rick's comments? Does your workplace environment foster true communication or is it merely an exercise?
2.02.2011
The 2011 Lean and Six Sigma Conference
I recently received a brochure for the upcoming 2011 Lean and Six Sigma Conference in Phoenix at the end of February, and I am quite impressed with its program. The application of Lean techniques to nontraditional industries, such as health care, and to different areas within an organization away from the shop floor, such as administration and product development, has proliferated within the past 10 years -- It's great to see this conference reflect that. I'm glad to see more presentations focusing on creating Lean culture as opposed to strictly applying tools as well. In addition, such Productivity Press authors as John Casey, Robert Damelio, Mike Osterling, and Karen Martin lead sessions while Adil Dalal delivers a keynote address.
Other than learning about successful applications and case studies, attendees also have numerous opportunities to network with the veterans who have lead or participated in transformations. These informal one-on-one, side conversations often prove invaluable to those just beginning the Lean journey.
Other than learning about successful applications and case studies, attendees also have numerous opportunities to network with the veterans who have lead or participated in transformations. These informal one-on-one, side conversations often prove invaluable to those just beginning the Lean journey.
1.26.2011
Mark Graban's "Lean for Haiti"
Today's blog entry features a special note from Mark Graban, author of the book Lean Hospitals: Improving Quality, Patient Safety, and Employee Satisfaction and founder and lead contributor of LeanBlog.org:
January 12 marked the one-year anniversary of the earthquake that devastated Haiti in January of 2010.
Last year, I was fortunate to meet a special person -- Russell Maroni, an x-ray tech at Akron Children's Hospital. He volunteered in Haiti for 15 days in February 2010 as part of the earthquake relief efforts. He was unexpectedly, and necessarily, pressed into service in a medical role, not only caring for patients, but also using his formal lean training from ACH to help improve processes and radiology patient throughput at a field hospital.
Russell wrote a very compelling, and very personal, journal during his time in Haiti. He and his colleagues took many pictures. We are sharing this all in a PDF eBook that we are freely distributing - to share the story and to create awareness for Haiti relief needs. We are asking people who read the book to consider donating to the Friends of the Orphans, which runs an orphanage in Haiti.
The journal isn't mainly a 'lean story,' although it does include his hand-drawn A3 plan. It's a very personal story, of his own prayer and contemplation of the trip, and his experiences in the midst of that tragedy.
To read more, go to the Lean for Haiti site, which has links to the PDF and other social media sites for the relief effort.
January 12 marked the one-year anniversary of the earthquake that devastated Haiti in January of 2010.
Last year, I was fortunate to meet a special person -- Russell Maroni, an x-ray tech at Akron Children's Hospital. He volunteered in Haiti for 15 days in February 2010 as part of the earthquake relief efforts. He was unexpectedly, and necessarily, pressed into service in a medical role, not only caring for patients, but also using his formal lean training from ACH to help improve processes and radiology patient throughput at a field hospital.
Russell wrote a very compelling, and very personal, journal during his time in Haiti. He and his colleagues took many pictures. We are sharing this all in a PDF eBook that we are freely distributing - to share the story and to create awareness for Haiti relief needs. We are asking people who read the book to consider donating to the Friends of the Orphans, which runs an orphanage in Haiti.
The journal isn't mainly a 'lean story,' although it does include his hand-drawn A3 plan. It's a very personal story, of his own prayer and contemplation of the trip, and his experiences in the midst of that tragedy.
To read more, go to the Lean for Haiti site, which has links to the PDF and other social media sites for the relief effort.
1.07.2011
Barnes-Jewish Hospital (St. Louis) and its Lean Results
According to a recent article over on the STL Today website, Barnes-Jewish Hospital in St. Louis has seen dramatic improvements during the past five years with its "patient-centered care" approach. With the hospital's focus on value stream analyses and standardized work, the term "patient-centered care" is quite synonymous with Lean management.
According to Dr. John Lynch (vice president and chief medical officer), streamlining the hospitals preparations for surgery saved about $1 million in 2010. The hospital performs about 40,000 surgeries per year. In addition, standardizing the installation of patients' intravenous lines "lowered the hospital's central line bloodstream infection rate by 40 percent in the last year."
I think Dr. Lynch's reply to the criticism that these techniques might cause rote "cookie-cutter care" is important -- according to Dr. Lynch "we only use standardization when it makes sense." The hospital does not resemble an assembly line: "We're more like a body shop, where every car comes in with its own problems," Lynch says. "We always allow room for individual patient variation. We're not telling the surgeon where to cut."
Although Barnes-Jewish hospital has put such tools as kanban, poke-yoke, and root-cause analysis to great use, the major area for improvement is the reduction of wait time in the emergency department. Solutions here are difficult because of the dramatic increase of patient visits each year. Do any readers of this blog have some suggestions for increasing the efficiency for admitting patients? Should the focus be on decreasing the wait time or adding value to the wait time?
According to Dr. John Lynch (vice president and chief medical officer), streamlining the hospitals preparations for surgery saved about $1 million in 2010. The hospital performs about 40,000 surgeries per year. In addition, standardizing the installation of patients' intravenous lines "lowered the hospital's central line bloodstream infection rate by 40 percent in the last year."
I think Dr. Lynch's reply to the criticism that these techniques might cause rote "cookie-cutter care" is important -- according to Dr. Lynch "we only use standardization when it makes sense." The hospital does not resemble an assembly line: "We're more like a body shop, where every car comes in with its own problems," Lynch says. "We always allow room for individual patient variation. We're not telling the surgeon where to cut."
Although Barnes-Jewish hospital has put such tools as kanban, poke-yoke, and root-cause analysis to great use, the major area for improvement is the reduction of wait time in the emergency department. Solutions here are difficult because of the dramatic increase of patient visits each year. Do any readers of this blog have some suggestions for increasing the efficiency for admitting patients? Should the focus be on decreasing the wait time or adding value to the wait time?
12.15.2010
Porsche Gets Its Speed from Toyota
I just read this great article over at the Bloomberg Businessweek site titled Porsche ‘Shock Therapy’ Spurs VW, Lufthansa Efficiency Drive. Other than pointing out that Porsche currently has the highest profit margins in the industry, the article discusses how Porsche, under the auspices of CEO Wendelin Wiedeking, began benchmarking Toyota's Lean production techniques back in the 1990s. This current success could indeed be attributed to the lessons learned from Toyota.
One section of the article -- "Taught By Toyota" -- points out how Porsche fully embraced a JIT (just in time) delivery system in cooperation with its suppliers: "Porsche took steps to fine-tune cooperation with suppliers to ensure factories received parts just when they were needed on the assembly line."
For years, Toyota has been operating its "Toyota Production System Support Center" at its North American manufacturing and engineering headquarters in Kentucky "where it holds ongoing seminars for outside companies, as well as schools, hospitals and charities." It appears Porsche has followed this lead as well as it has established its own consulting division and has worked with such clients as "Deutsche Lufthansa AG, Volkswagen AG, and Meyer Werft GmbH" who have "all turned to Porsche to make their manufacturing processes more efficient."
In 1993, Porsche "had a net loss of 122 million euros ($162 million) and sales of no more than 14,000 cars" and now in 2010 posted an "operating margin in the automotive unit in the fiscal first quarter of 19 percent" and earned honors in J.D. Power & Associates’s annual quality study.
What do the readers of this blog think of Porsche's success? Does it come as a surprise? Is Porsche building a new culture within its organization?
One section of the article -- "Taught By Toyota" -- points out how Porsche fully embraced a JIT (just in time) delivery system in cooperation with its suppliers: "Porsche took steps to fine-tune cooperation with suppliers to ensure factories received parts just when they were needed on the assembly line."
For years, Toyota has been operating its "Toyota Production System Support Center" at its North American manufacturing and engineering headquarters in Kentucky "where it holds ongoing seminars for outside companies, as well as schools, hospitals and charities." It appears Porsche has followed this lead as well as it has established its own consulting division and has worked with such clients as "Deutsche Lufthansa AG, Volkswagen AG, and Meyer Werft GmbH" who have "all turned to Porsche to make their manufacturing processes more efficient."
In 1993, Porsche "had a net loss of 122 million euros ($162 million) and sales of no more than 14,000 cars" and now in 2010 posted an "operating margin in the automotive unit in the fiscal first quarter of 19 percent" and earned honors in J.D. Power & Associates’s annual quality study.
What do the readers of this blog think of Porsche's success? Does it come as a surprise? Is Porsche building a new culture within its organization?
12.01.2010
Lean Labor Management
I recently read a very informative article by Stephen Jannise on the Software Advice site that covers a concept often left out of Lean manufacturing discussions: lean labor management. This article pinpoints three key effects that Lean principles can have on labor management, particularly within the manufacturing industry. These effects are:
- The metrics of effort and success will differ from a non-Lean environment because the goals for productivity have changed.
- Employees will be expected to work with greater flexibility and adapt to unique problems that arise each day.
- Relationships between co-workers, superiors, and subordinates will be reshaped to emphasize managed cooperation over individualized labor.
Jannise continues with a more detailed analysis of each of these areas and makes some crucial points, such as: "If managers in a Lean workplace are going to convince workers to handle more complex tasks, then they must devise ways to reward flexibility," but the overarching theme reinforces an overall transformed mindset. All those involved in the Lean initiative must be ready to exit their respective comfort zones and realize that the majority of the traditional metrics and behaviors not only don't apply, but will ultimately prove detrimental.
11.11.2010
The A3 Problem-Solving Process
One of the most effective problem-solving approaches used by Toyota is the A3 report. "A3" is actually a paper size (11" x 17") that was used at Toyota to keep problem-solving documentation consistent, structured, and clear.
I recently spoke with Daniel D. Matthews, who spent 14 years as trainer, coach, and implementer of Lean Manufacturing at Toyota and recently published a book titled The A3 Workbook: Unlock Your Problem-Solving Mind. I asked Dan: "What would you say is the biggest mistake people make when trying to solve problems and how can the A3 problem-solving process help?"
Here is his complete response:
"The one mistake that is consistent from class to class is that participants jump to potential causes or even countermeasures before they fully understand the characteristics of the problem.
My first step is to coach them to ignore their natural inclination to take some kind of action. In the A3 problem-solving process, you are encouraged to delay acting on the problem until you have stated it clearly and precisely.
It is critical that you identify the facts that explain what is actually occurring and try to make your first 'sense' of the problem more specific. To do this, you must remove the subjectivity and replace it with facts.
To accurately depict the current situation, it is important to look at existing data related to the situation. Make sure that you go and see the situation for yourself; don’t rely on others to provide you with the information you need.
The data you gather will also help you later in the process when you have to break the problem down. To truly understand the problem, you must break it down into specific characteristics. The key to solving any problem is to follow the process and let the facts lead you instead of acting on your opinions and feelings."
Are you using A3 reports to solve problems? Do they hasten the path to the root cause?
I recently spoke with Daniel D. Matthews, who spent 14 years as trainer, coach, and implementer of Lean Manufacturing at Toyota and recently published a book titled The A3 Workbook: Unlock Your Problem-Solving Mind. I asked Dan: "What would you say is the biggest mistake people make when trying to solve problems and how can the A3 problem-solving process help?"
Here is his complete response:
"The one mistake that is consistent from class to class is that participants jump to potential causes or even countermeasures before they fully understand the characteristics of the problem.
My first step is to coach them to ignore their natural inclination to take some kind of action. In the A3 problem-solving process, you are encouraged to delay acting on the problem until you have stated it clearly and precisely.
It is critical that you identify the facts that explain what is actually occurring and try to make your first 'sense' of the problem more specific. To do this, you must remove the subjectivity and replace it with facts.
To accurately depict the current situation, it is important to look at existing data related to the situation. Make sure that you go and see the situation for yourself; don’t rely on others to provide you with the information you need.
The data you gather will also help you later in the process when you have to break the problem down. To truly understand the problem, you must break it down into specific characteristics. The key to solving any problem is to follow the process and let the facts lead you instead of acting on your opinions and feelings."
Are you using A3 reports to solve problems? Do they hasten the path to the root cause?
11.03.2010
Lean and Human Resources
I first met Cheryl Jekiel -- vice president of Human Resources for the Flying Food Group -- at an annual Association for Manufacturing Excellence (AME) conference a few years ago, and she recently published a book titled Lean Human Resources: Redesigning HR Processes for a Culture of Continuous Improvement.
I asked Cheryl to succinctly explain just how organizations can achieve greater success by applying what's now called "Lean Human Resources." Here is her response:
"Better performance requires knowing where you are, followed by setting the right goals and then taking effective steps to achieve them. Your goal achievement process works best when business managers and HR Managers partner together to involve everyone in the workplace -- which for many of us is a significant challenge. Many (if not most) attempts to improve results fail when your management team tries to go it alone. Applying Lean to the Human Resources (HR)function can provide a roadmap for how your organization can avoid the common mistake of leaving HR on the sidelines while you develop and execute your strategies. Building performance based strategies into all your people-related processes, such as recruitment, training, performance management and rewards, is not only the best way you can achieve new levels of success, but it prevents failure from leaving the HR out of the equation.
In addition, the positive impact of involving employees in the daily goals of your organization and understanding the needs of your customers generates noticeably more motivated employees. This enthusiasm creates a positive momentum that generates even more productivity and better customer service on all levels. In addition, more involved employees are great candidates for enlarging their job content to include more of their skills, such as teamwork, problem solving, and process improvement (which are often left untapped). Lean HR provides methods for putting more into job responsibilities in a step-by-step manner, including what processes must be changed to allow employees to participate more fully on a daily basis.
Lean HR is not a program to run through your organization, but a whole new way to utilize the talents inside your organization. Your customers will be quickly able to see that your organization is one where everyone is involved and on the same page about 'the customer comes first.' The results will also reflect satisfied customers who are willing to pay more for products and services from an organization that accesses their people more effectively."
Do any of you work in organization in which the Lean initiative has Incorporated the Human Resources department? Were there any initial barriers? Did it ultimately enhance success?
I asked Cheryl to succinctly explain just how organizations can achieve greater success by applying what's now called "Lean Human Resources." Here is her response:
"Better performance requires knowing where you are, followed by setting the right goals and then taking effective steps to achieve them. Your goal achievement process works best when business managers and HR Managers partner together to involve everyone in the workplace -- which for many of us is a significant challenge. Many (if not most) attempts to improve results fail when your management team tries to go it alone. Applying Lean to the Human Resources (HR)function can provide a roadmap for how your organization can avoid the common mistake of leaving HR on the sidelines while you develop and execute your strategies. Building performance based strategies into all your people-related processes, such as recruitment, training, performance management and rewards, is not only the best way you can achieve new levels of success, but it prevents failure from leaving the HR out of the equation.
In addition, the positive impact of involving employees in the daily goals of your organization and understanding the needs of your customers generates noticeably more motivated employees. This enthusiasm creates a positive momentum that generates even more productivity and better customer service on all levels. In addition, more involved employees are great candidates for enlarging their job content to include more of their skills, such as teamwork, problem solving, and process improvement (which are often left untapped). Lean HR provides methods for putting more into job responsibilities in a step-by-step manner, including what processes must be changed to allow employees to participate more fully on a daily basis.
Lean HR is not a program to run through your organization, but a whole new way to utilize the talents inside your organization. Your customers will be quickly able to see that your organization is one where everyone is involved and on the same page about 'the customer comes first.' The results will also reflect satisfied customers who are willing to pay more for products and services from an organization that accesses their people more effectively."
Do any of you work in organization in which the Lean initiative has Incorporated the Human Resources department? Were there any initial barriers? Did it ultimately enhance success?
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