Thursday, January 29, 2009

Discerning Leadership Potential

We're interviewing folks over the next several days for an open first-line supervisor position.  All internal candidates, there is quite a bit of interest.
What have you found to be useful questions to ask in such situations?  What observations might you advise us to make? 
Thanks for any help!

Tuesday, January 27, 2009

Generating Waste via email--an example

The concept of "Just in Time" not only applies to presenting a manufacturing process with the correct material just when required.  It applies to information as well.  And too much information is waste. 
 
Here's an example you may recognize.
 
A project leader emails a request to a group of people.  "Please do this task by the 20th of the month."  The leader can then monitor which persons have completed the task. 
 
On the 19th, the project leader sends out another email, perhaps even a copy of the first email only with a more emphatic subject line, to the entire mailing list she sent it to originally.  "Please, please, please do this task by the 20th!!!!  Dire consequences await if not completed!" 
 
In so doing, the sender creates waste.
 
Each of the recipients who correctly did the original request, before the 19th, are now interrupted.  "Did I do it?  Did I do it correctly?" each asks.  She has to check to see if indeed she did it correctly.  Why, yes, she discovers, she did do it correctly.  "Then, why did I get this second, more frantic, email?"  More waste.
 
The principle of "Just in Time" would ask the original sender to contact only those individuals who had not completed the task correctly by the 19th.  Why doesn't this happen?  It is simply easier for the sender to re-send to the original mailing list.  A minute saved by the sender costs hours of waste by the receivers. 
 
If you do this, stop. 
 
If you see it done to you, find some way to raise the question. 
 
And, if you can't raise the question safely, find someway to influence the culture so you can.
 
 

Sunday, January 11, 2009

Doing Lean: Remember the Basics

I don’t know about you but the past week gave me some mental whiplash. The two weeks over the Christmas and New Year holidays went sleepily here in the US. Work was calm, I took some vacation, things seemed to flow with a happy, easy drift.

Monday, January 5 was a startling wake up. Like a race car coming out of a series of slow, easy turns onto a long straightaway, the sudden acceleration was alarming this week. It’s easy for me to lose my perspective in this sudden change; I suspect I’m not alone.

So, I’m reminding myself to pay attention to Lean basics this week, just to keep myself in the habit.

Make it flow I’m looking for anything that gets in the way of a product moving smoothly from start to finish, with no interruption. Evidence includes piles of stuff, people waiting, people in panic, wanting to “expedite”.

Cut the batch size A seldom-talked-about tool in Lean is to simply cut any batch size in half or thirds. Almost without question, just cut the bath size closer and closer to a single unit. But not just in a production setting. Have a monthly review meeting? Make it bi-monthly or weekly. Have a weekly status update? Do it on Monday and Thursday. It’s amazing to me but almost without exception, cutting the batch size improves customer service and speeds flow. I’ve got some work to do here.

Make the plan; measure the actual Assessing plan to actual shows many forms of waste and is so very, very easy to do. When actual is either better or worse than plan, I need to ask “Why” five times. This drives understanding and is a huge, almost free, source of improvement targets. But it assumes a) I have a plan and b) I can measure it. Both are easy. Both require a habit.

Local Improvements These three should unleash for us (and for you) a steady stream of improvements. Remember, world-class companies have 2 improvements per employee per month. Yes, per month. Find it, write it up, make it stick.

Here’s hoping for a very productive 2009 for all of us.






Click here to subscribe to Learning about Lean by email.

Wednesday, December 31, 2008

Book Review: "Chasing the Rabbit" by Steven J. Spear

Book Review: “Chasing the Rabbit” by Steven J. Spear

It was around Labor Day, 1999, when my copy of Harvard Business Review arrived. As usual, I quickly reviewed the Table of Contents and saw Decoding the DNA of the Toyota Production System by two guys I’d never heard of, Steve Spear and Kent Bowen. I read the entire article, twice, that same day. As a guy newly into seeing Lean work, the article explained much of what I was already seeing and challenged me deeply. It also seemed as if the writing style connected at a very deep level for me.

Since that pivotal time, I've worked hard to integrate the key findings he presented. I’ve given away dozens of copies of the article and read much of Spear’s subsequent work on the Toyota Production System. In each case, Steve’s writing seemed to resonate to me, being both readable and remarkably clear. Therefore, I was thrilled to review his newest book, Chasing the Rabbit which came out a couple months ago.

This book continues the style Spear showed in his earlier articles. It is clear, to the point and combines two things often held in tension; the rigor of an academic author and the story-telling skill of a fine novelist. As such, the book contains real substance, while at the same time being very readable, nearly a “page turner” for those of us fascinated by the pursuit of process excellence.

But what content? There is one central theme which makes this book compelling to me. That theme is complexity.

Many business books simplify situations for the sake of teaching. It is helpful, even necessary, for the person new to a topic to start with the simple case. Yet, I’ve been trying to drive Lean systems for 10 years now and it is painfully obvious to me that my company and our environment is anything but simple. I’ve thus had to extrapolate from the simple examples to our reality.

Spear takes this problem head on. He contends, with convincing evidence, market leaders simply understand complexity in an entirely different manner than market laggers. The key to the whole book, to me, is captured in this quote from page 229, describing Alcoa’s remarkable progress in worker safety:
Alcoa discovered that perfectly safe systems defy conceptual design but are very close to achievable through a dynamic discovery process in which (a) complex work is managed so that problems in design are revealed, (b) problems that are seen are solved so that new knowledge is built quickly, and (c) the new knowledge, although discovered locally, is shared throughout the organization.

Spear’s core theme is that excellence in any complex system cannot be designed in; we simply are not smart enough to anticipate every possible interaction that can happen. However, if we are philosophically and technically prepared to “listen” to what the complex system tells us, it will show us the breakdowns. If we fix each one, being careful to learn and then intentionally distribute that knowledge, we gain something impossible to replicate.

He repeats this theme in multiple ways, both in how it is done well and done poorly. He makes a significant contribution by drawing on excellence in spots besides Toyota. Aloca’s safety record and the US Navy’s Nuclear Power Propulsion Program are prime examples. He also breaks down significant failures; the loss of the Space Shuttle Columbia, medical mishaps in hospitals and the decline of General Motors. The themes of a failure to “listen” to the messages of complex systems coupled with a failure to disseminate the lessons that are learned show up repeatedly in the market followers.

It appears that Spear finished up work on this book in July 2008. I would really like to see some future work, using this method of analyasis, on the bank and credit meltdown which occured only a few months later. Would use of these principles have mitigated some of the financial mess we find now?

Spear’s observations resonate with the reality I’ve seen in my career. By making complex systems more explicit, along with specific recommendations on how to understand them, he does business a great service. Regular readers of Spears will recognize some of these themes from earlier work…his overarching summary, however, is a new synthesis and, in my opinion, a very accurate one.

I highly recommend this book. It is an important part of the business literature.




Click here to subscribe to Learning about Lean by email.

Saturday, December 20, 2008

Engaging Consumers to Fight Clutter

Is it possible to get untrained, uninitiated, unconnected people to participate in your efforts to deliver value? Consider this example that caught me totally by surprise in a very unexpected moment.

In October, I had the chance of a lifetime to take a 12 day vacation in Italy with my three sisters and our spouses. During our trip, we rented a house for a week in the not-too-touristy city of Lucca. Since we wanted breakfast and some other meals at the house, we had to figure out how to shop for groceries in a new city, not speaking any Italian.

Our spouses voted 4-0 that the Ely kids should make the first run to the grocery store. Once there, speaking no Italian, my sisters and I started to find the cereal, fruit, eggs, milk and chocolate...necessities each. In proper sisterly fashion, they dispatched me to find a shopping cart.

I observed other shoppers had carts but I could not see where to get one of my own. Finally, I noticed a covered rack of perfectly ordered carts in the parking lot. I went out to get one. And boy was I surprised by what I found.



The neat row of carts were cleverly linked together. Looking around for some visual clues, I saw some drawings which showed a one Euro coin (about $1.50) as the "key" to release the cart from the one ahead of it. My sister Anne came out looking for me. She fortunately had the right coin and plunked it into the small plastic gizmo mounted on the handle of the cart.



She pushed the red coin holder into the housing, the chain dropped and the cart popped loose.



We didn't exactly start singing opera but felt a little smarter. We did our shopping, were pleased my oldest sister's credit card was multi-lingual, loaded the groceries into our car and then wondered just what we were supposed to do with the cart. Pushing it back to the still-neat row of carts, I reversed the process, inserting the chain from the next cart into the plastic gizmo. Pop, out came the coin. And I finally realized what was going on. I thought "Wow, what a cool system!"

Rather than the messy, spread-out, disorganized pockets of carts we see in most US groceries, this simple system provided an incentive for shoppers to return the cart. And when shoppers do it right, the use of the cart is free. I simply had to "loan" a coin to the store for the time it took me to shop.

Interestingly, during the course of the week's stay in Lucca, we made other trips to the store and observed another social dimension of this system. We saw several shoppers accept the help to load their groceries into their car. In return, the helper took the cart back to the rack and pocketed the coin; effectively a tip for the help.

I subsequently learned one discount grocer operating in America has the same system for their Aldi Foods shopping carts.

Why do I mention this? Because well-conceived systems with visual tools and simple economic incentives can eliminate a lot of wasted effort. And if it is possible to do this in a grocery store parking lot, how much more inside our companies?? We have a lot of room for creativity.

Updated: I learned, via a comment, I was wrong in my assumption Aldi was an American-based store. It is owned by a German company. My mistake.

Click here to subscribe to Learning about Lean by email.

Monday, December 15, 2008

Santa Really Does Know

Political cartoonists are at their best when they something widely known, exaggerate it a bit and retell it with a clever twist. Like this:



Interesting to me there is such broad awareness that Toyota and Honda run with a different culture, one of innovation and change. And, sadly, this is absent from domestic automakers.

While this is funny, the bigger challenge is for each of us to build that culture in our own organizations. And a culture never happens overnight.

Go make it happen.


Click here to subscribe to Learning about Lean by email.

Tuesday, December 09, 2008

Gettin’ Caught

On a recent vacation trip, I looked in the rear-view mirror and to see a State Police car telling me to pull over. Not having seen those flashers in 38 years, it was an unfamiliar experience for me.

I pulled my driver’s license out of my wallet and awaited the officer to appear at my window. I had forgotten that he was also going to ask for my car registration and insurance certificate; this meant a quick dive into my glove compartment while he loomed large to my left. The glove box had insurance certificates for 1998, 2002, 2003 but no 2008. I fumbled through old oil change receipts, extra fast food napkins, two tire pressure gauges and CD player instructions but found no current insurance certificate. Growing impatient, the officer said “Let me just check out this other stuff and you keep looking.” He headed back to his squad car. I finally found what I needed but was left with quite a mess as I sat and waited.

Eventually, the officer returned with a speeding ticket and an encouragement to “be safe.” I drove on and had plenty of time to reflect. What did this teach me?

5S applies everywhere. The obvious lesson was the mess in my glove box. I had way too many napkins (“just in case” I had a big spill, I had told myself). This excess inventory cluttered the limited space. I also had no labeling system for the crucial documents I needed, by law, to have at my fingertips. The officer could have concluded my sloppiness in the car could further indicate sloppiness in my entire driving record.

Failure of standard work. More broadly, I had done “non-standard work” on the road by exceeding the speed limit. The fact I disagreed with the officer on the degree to which I was “non-standard” did not change the fact I knew I was speeding. And, by doing non-standard work, I significantly lengthened the time it took me to reach my destination.

The audit process. In my day job, I’m often assessing standard work, trying to point out non-standard work. This experience on the highway was useful as it put me on the other side of the coin. It wasn’t fun having non-standard work pointed out to me, even when I knew it was an accurate assessment. It gives me more empathy on how to point out non-standard work.

One problem can point out another. By speeding, I was forced to find another, less obvious, problem; the mess in my glove box. There is a chain reaction when we pursue excellence. That’s a good thing.

Future prevention. Not surprisingly, I was a very careful driver for the remaining 12 hours of driving on this trip. As noble as many of us may think we will be, not needing any checkup, this thought is often an illusion. I haven’t had a speeding ticket since I was a senior in high school; I was pushing the limit. I needed a correction. And the remaining trip was clear and uneventful. At the speed limit.

Learning opportunities are everywhere, sometimes decorated with red and blue flashing lights. Don’t miss them.




Click here to subscribe to Learning about Lean by email.

Sunday, November 30, 2008

Simple or Simplistic?

A colleague recently returned from a management conference where she heard a presentation by a software firm about their new inventory management package. She was intrigued; it had a fully configurable tool to calculate buffer inventory levels based on shipment levels. As sales rose or fell, the tool would raise or lower the buffer inventory every two weeks according to the methods selected by the user. In addition, the package provided signals to production to ask for replenishment of the buffer as customers purchased goods.

Impressed, she complimented the presenter on coding an efficient pull system. He shuddered at her suggestion. “Oh no, this is not a ‘pull system’, this is a predictive system, driven by the program.” She paused, asked some clarifying questions, the answers all pointing to this as a well-conceived pull system capable of managing inventory levels of tens of thousands of SKUs according to the user’s wishes. Yet, the company was adamant they had not made a “pull system,” as if the term was a label they wished to avoid at all costs.

Why? Why the apparent revulsion?

I suspect it has something to do with the confusion of “simple” with “simplistic.” Most of us are comfortable with the former but less so with the latter term. Pull systems are simple. Take one, make one. That’s it. To manage the huge variety of finished goods most customers want, software can do a dandy job of keeping track of the ins and outs, all the “take ones, make ones” signals. The software is complex; the concept is not.

Holding fast to the simple principle, while seeing the need for complex tools to implement the idea is key. But denying the ultimate simplicity, the clarity and the visibility of the principle is downright foolish.

Be simple…not simplistic.



Click here to subscribe to Learning about Lean by email.

Saturday, November 01, 2008

Book Review: Managing to Learn

I just got the new book by John Shook, Managing to Learn. I was surprise and pleased by what I found

The book describes the use of the “A3 Process.” This process is, on the one hand, simple; it uses a piece of 11”x17” paper to tell a story of a problem and how to approach it.

Yet the book is anything but simple. And is anything but a description of how to write on a big sheet of paper.

Shook does the Lean community a great service in the book, comparable to his service in writing “Learning to See” in 1999 describing Value Stream Mapping. Shook delivers this value in two unique ways.

First, he uses the story format, with a young employee learning from a seasoned executive how to produce a good A3. “Oh, no, not another book of forced dialogue” I thought to myself when I learned this was the format. Rather than trying to be Eli Goldratt, however, Shook tells two stories; one from the perspective of the learner, one through the eyes of the teacher. The stories are side by side, in two different colors, presented simultaneously. The learner can’t understand why his early approaches aren’t good enough; the teacher struggles to know how to help the learner be enthusiastic while correcting his short-sighted efforts. The rhetorical tool works well.

I live in both of these roles and Shook’s description was right on the money. Rather than just showing the mechanics of filling out a form, he goes much deeper, to the learning process allowing people to see more, learn better and lead more effectively.

Second, the pace of the book “walks the talk” of the book. Central to the A3 process is finding the root cause of a problem. Shook forces the reader to agonize through this process. It does not happen as quickly as I would have liked. I found myself saying as I read, “John, get me to the point. Please!” And he didn’t. He forced me, the reader, the learner, to grapple with the difficulty of finding root cause, particularly in strategic, non-mechanical problems. For me, with Lean not a new thing at all, this was the most important lesson. The effort to get to root cause is difficult. And worth it. Shook forces me along that journey, a journey I need to take. Too many Lean books illustrate only the easy cases, the obvious paths to root cause. Shook takes a tougher path and it is worth it.

This book is a significant contribution to the Lean community. I suspect it was long in the making, as the book shows much reflection and a distillation of much knowledge. I recommend it highly.

Click here to subscribe to Learning about Lean by email.

Friday, October 17, 2008

Going Deep into the Basics

Had a wonderful conversation this morning with one of our supervisors. The ostensible topic was a scheduling question. But, from that, she asked a most wonderful, telling and profound question.

“So just what does ‘single piece flow’ mean anyway?”

This supervisor has been in on and supportive of our Lean efforts from day one. She knows about single piece flow. Yet, as she explained the context of her question, it showed a growing depth of understanding. She was no longer mimicking the simple answer to the question; now she was grappling with the principle underneath the technique.

We went into the specific matter prompting her question. It had process criticality, major quality demands as well as logistical challenges.

“So just what does ‘single piece flow’ mean anyway?”

The seemingly simple question was actually deep. We grappled with the application in this setting. We left it for her to assess how best to apply it. She does, after all, know the setting better than anyone else in the company.

And, more encouraging, is asking the question. It challenged me to keep asking basic questions. I hope it does you as well.



Click here to subscribe to Learning about Lean by email.