tag:blogger.com,1999:blog-37821562024-03-13T06:03:40.005-04:00Learning about LeanA journey to respect people and eliminate wasteJoehttp://www.blogger.com/profile/13512468867035574112noreply@blogger.comBlogger570125tag:blogger.com,1999:blog-3782156.post-21840022172043566162022-02-02T16:34:00.000-05:002022-02-02T16:34:09.592-05:00The Wisdom of Tempered Optimism <div><span id="docs-internal-guid-15e887ce-7fff-50c0-9c2d-7d137843726b"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; white-space: pre-wrap;">The new project is appealing. The new purchase has pizzaz. The new franchise will surely work well. The new training should pay handsomely. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Many of us want to believe the Next Thing will fix our current malaise. Be it corporate, financial, educational, psychological or relational...we want very badly for the Next Thing to fix the “it” that’s bugging us right now. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">And maybe it will. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">But maybe it won’t. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">How can we tell? </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">What if we trained ourselves to ask some questions beforehand? </span></p><ul style="margin-bottom: 0; margin-top: 0; padding-inline-start: 48px;"><li aria-level="1" dir="ltr" style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">What if it brings in half the expected revenue?</span></p></li><li aria-level="1" dir="ltr" style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">What if it takes twice as long to complete? </span></p></li><li aria-level="1" dir="ltr" style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">What if the relevant authority refuses to approve it? </span></p></li><li aria-level="1" dir="ltr" style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">What if the costs are double the projection? </span></p></li><li aria-level="1" dir="ltr" style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">What if it chews up every free weekend I have for the next two years? </span></p></li></ul><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">If significant components go wrong and the outcome is still good, perhaps your optimism is well-grounded. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">If you need everything to go right, for all the best-case scenarios to happen to get a positive outcome, walk away. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Many times, a spreadsheet with ranges of revenue and cost will help. A timeline with expandable decision points will instruct. A one-page essay answering the question “If, a year from now, this thing fails, what will be the reason?” can be enlightening. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">But it only happens by asking the questions before making the decision. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Persevere. </span></p><div><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></div></span></div><div><br /></div><div><br /></div>Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com2tag:blogger.com,1999:blog-3782156.post-10874887099586638062022-01-25T09:57:00.003-05:002022-01-25T09:57:53.504-05:00“Do” or “Responsible”?<div><span id="docs-internal-guid-d2f89532-7fff-b7d5-4ef2-f539c12cca4f"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">“So, what do you do?” Perhaps the most common question in business.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-left: 36pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">“I flip burgers.”</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-left: 36pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">“I’m a manufacturing supervisor.” </span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-left: 36pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">“I analyze loan requests.” </span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-left: 36pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">“I umpire Class A minor league baseball”</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-left: 36pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">“I’m a project manager.” </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Each describes an activity. How the person spends her time. Perhaps enjoyably. Perhaps only to pay bills.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">What changes if, instead, the question is “So, for what are you responsible?” </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Taken seriously, the answers might be:</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-left: 36pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">“I’m responsible to properly cook hamburger patties when I get a request from the front line crew.” </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-left: 36pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">“I’m responsible for 15 people’s safety, training, productivity and quality processes to serve our customers.” </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-left: 36pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">“I’m responsible for proposing loan decisions which allow our bank to take on appropriate risk.” </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-left: 36pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">“I’m responsible for the smooth execution of baseball games allowing each player to compile accurate statistics in his quest to move closer to the Major Leagues.” </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-left: 36pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">“I’m responsible for delivering new product prototypes according to its specifications and timelines.” </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Being responsible is being professional. It’s owning the purpose of your job and the results of your job. It’s the opposite of just punching in and taking up space. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Likely, people will ask “What do you do?” </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">But try answering it with your responsibilities next time. It changes your view of your job. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Persevere.</span></p><br /><br /><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">*My thanks to </span><a href="https://tompeters.com/" style="text-decoration-line: none;"><span style="color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">Tom Peters</span></a><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"> for triggering this concept for me many years ago. </span></span></div><div><br /></div>Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com0tag:blogger.com,1999:blog-3782156.post-70051408032948133022022-01-19T10:50:00.002-05:002022-01-19T10:50:55.914-05:00Fewer, Better Decisions?<span id="docs-internal-guid-d91ebda8-7fff-1017-0033-6299170da197"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Market data for 2021 show once again stock index mutual funds outperformed mutual funds managed by humans ( </span><a href="https://www.wsj.com/articles/stock-pickers-are-struggling-to-beat-the-market-11640692983" style="text-decoration-line: none;"><span style="color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">source</span></a><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"> ). Fully 85% of actively managed funds fared worse than automated funds which seek to simply mimic the aggregate behavior of the market. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Which got me thinking...why? Mutual fund managers are very smart people, deeply experienced in company analysis. They have clear incentives to outsmart the market. Yet, each year, a very few do. And those few will likely NOT be amongst the few who outperform the market next year. Why? </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Is it perhaps the complexity and volume of decision making required by an active fund manager? </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Consider the decisions a mutual fund manager must make to succeed in a single transaction:</span></p><ol style="margin-bottom: 0; margin-top: 0; padding-inline-start: 48px;"><li aria-level="1" dir="ltr" style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; list-style-type: decimal; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Which stock should I buy? </span></p></li><li aria-level="1" dir="ltr" style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; list-style-type: decimal; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">At what price should I buy it?</span></p></li><li aria-level="1" dir="ltr" style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; list-style-type: decimal; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">How many shares should I buy? </span></p></li></ol><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">And, with purchased shares in hand, two further decisions await:</span></p><ol start="4" style="margin-bottom: 0; margin-top: 0; padding-inline-start: 48px;"><li aria-level="1" dir="ltr" style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; list-style-type: decimal; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">At what price do I sell? </span></p></li><li aria-level="1" dir="ltr" style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; list-style-type: decimal; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Do I sell all or a portion of my holdings? </span></p></li></ol><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">The manager must make five decisions correctly to notch a profit from a single stock purchase. Given that most mutual funds have at least fifty, and oftentimes hundreds, individual stock positions, the number of decisions multiply like rabbits. As the portfolio turns over, there is more cash to invest and the cycle repeats. It’s virtually impossible to get all of the choices right. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Contrast these decisions with those facing an index fund. The index fund organizers simply spread the available cash across all the stocks in the underlying index in a predetermined proportion. The only buying and selling happens as customers send cash into or out of the fund. All of which can be automated. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Decision making takes time and mental effort. Even if skilled and speedy, the decision maker can only make one decision at a time. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Can I learn from this? </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Are there arenas where one can substitute a predetermined choice, like the index fund manager does, for a more involved set of choices, like an actively managed mutual fund manager does? </span></p><br /><ul style="margin-bottom: 0; margin-top: 0; padding-inline-start: 48px;"><li aria-level="1" dir="ltr" style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Can I predetermine always to eat a salad for lunch rather than choosing each day what to have? </span></p></li><li aria-level="1" dir="ltr" style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Can I predetermine to hit the gym four mornings each week rather than deciding if I’m up for it today? </span></p></li><li aria-level="1" dir="ltr" style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Can I predetermine what my restocking level will be for a supply rather than deciding afresh each time? </span></p></li><li aria-level="1" dir="ltr" style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Can I predetermine to only pursue a new product innovation if I have three independent market-size estimates rather than deciding anew on each proposal at the moment? </span></p></li></ul><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">We often recoil at the thought of making predetermined choices. Lunch will forever be boring!!! We recoil at the thought that a human can’t pick stocks better than an algorithm. You gotta know the company!! But are those reactions valid??</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">It got me thinking. </span></p><br /><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Persevere. </span></p><br /><br /><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">. </span></p></span><div> </div>Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com0tag:blogger.com,1999:blog-3782156.post-9491606015451419122022-01-11T14:57:00.001-05:002022-01-11T14:57:46.605-05:00“He was mostly honest”<div><div>A friend used these words in a recent conversation describing a former boss of his. </div><div><br /></div><div>I knew of that boss, from some distance. He had a position of significance in his organization and industry. Sadly, from my observations, my pal’s observation carried validity. </div><div><br /></div><div>Ouch. </div><div><br /></div><div>Is there a more incriminating description of a person? </div><div><br /></div><div>You can be “mostly” a lot of things. Mostly on time. Mostly calm. Mostly a good interviewer. </div><div><br /></div><div>But you are either honest or you are not. When others suspect your honesty, each word you say is therefore suspect. “Is THAT PARTICULAR statement one of the true or false ones?” Trust is destroyed. </div><div><br /></div><div>Protect your honesty, as if it was pure gold. </div><div><br /></div><div>Because it is. </div><div><br /></div><div>Persevere. </div><div><br /></div><div>.</div></div>Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com0tag:blogger.com,1999:blog-3782156.post-36522196231761404332022-01-04T11:01:00.001-05:002022-01-04T16:08:10.280-05:00Thinking Differently about Heroes<div><div>On an otherwise uninspiring Monday evening in early December, I went to a local grocery store to pick up a package of frozen puff pastry my wife needed. I knew where it was but didn’t see it in its usual place in the row of freezers. I asked a nearby store employee if perhaps it had moved. He helpfully looked but could see from the label on the empty shelf they were out. “I’m sorry,” he said sincerely. “Hey, supply chain issues even impact puff pastry!” I added, lamely attempting humor. I moved on to pick up a couple other items. </div><div>A few minutes later, as I was walking to the checkout line, the same employee came trotting down the main aisle, a package in hand. He caught my eye and excitedly handed me a box of the frozen pastry. “We had one more but it had fallen to the floor of the freezer!” </div><div>This was excellent customer service...I thanked him profusely and emailed the store the next day to tell them about it. He was a hero, going above and beyond normal expectations. </div><div>We celebrate such heroes and love these stories. But is there more we can learn? </div><div>What if that last package had NOT fallen to the floor of the freezer? What if the shelf design made it harder for a package to slip and fall? What if a daily routine for the frozen food folks included shelving anything that had fallen? What if there was a simple light sensor on the bottom of the freezer to alert staff something had fallen? </div><div>What if the hero wasn’t necessary at all? </div><div>A hero is one who performs a workaround which corrects a system failure. It’s the rep who drives four hours out of her way on a weekend to deliver a needed back order. It’s the mechanic who comes in at 4am to get a crucial machine running again. It’s the entry-level high school kid who realizes the customer who wanted puff pastry might still be in the store and tracks him down. </div><div>While thanking the hero, might we be wise to not stop there? And then say “how do we improve our system to make this workaround irrelevant in the future?” </div><div>Persevere. </div><div><br /></div><div><br /></div><div><br /></div></div><div><br /></div><div><br /></div>Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com0tag:blogger.com,1999:blog-3782156.post-69442610597983897522021-12-17T10:31:00.005-05:002021-12-17T10:31:40.641-05:00If I only...<div><span id="docs-internal-guid-9cabddcf-7fff-2a04-bc4a-f0535013bf81"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; white-space: pre-wrap;">If I only had that new set of golf clubs, my game would be more enjoyable.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">If I only had that powerful kitchen mixer, my breads would be more popular. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">If I only had that new laptop, my writing would gain a wider audience. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">We kid ourselves. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">The key to excellence is practice, repetition, learning from mistakes. Basic tools are all we need to practice. Continuous Improvement is the path to excellence. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">At the highest levels, the best equipment can give a slight advantage. And we will know it if we are at the highest level. And most of us aren’t. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Better to focus our energy on doing better with what we have. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Persevere.</span></p><div><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></div></span></div><div><br /></div><div><br /></div><div><br /></div>Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com0tag:blogger.com,1999:blog-3782156.post-42801039028408835232021-12-14T11:20:00.000-05:002021-12-14T11:20:00.268-05:00Learning About Lean is up and Running Again<div>After a nine-year layoff, I'm back to writing here. </div><div><br /></div><div>So where have you been, Joe??</div><div><br /></div><div>Glad you asked. </div><div><br /></div><div>Suffice it to say it got intense. I continued to lead our manufacturing efforts making medical devices. Business was good and I had a lot of leadership demands. We implemented Lean systems and kept driving that effort. </div><div><br /></div><div>At the end of 2020, I retired from Cook Biotech. Amazing to have reached that point in my life. </div><div><br /></div><div>I've spent much of 2021 retooling and pondering the next steps...I've never felt retirement was "shapeless leisure." Instead, it's a new purpose. </div><div><br /></div><div>One of those purposes will include more writing about business, processes, decision making, Lean and applications of these. </div><div><br /></div><div>I may update this platform but will link back to it. </div><div><br /></div><div>Lots to say...here we go. </div><div><br /></div><div><br /></div><div><br /></div>Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com4tag:blogger.com,1999:blog-3782156.post-27672485495394219902013-01-02T21:59:00.000-05:002013-01-02T21:59:00.055-05:00A new writing projectThis blog has been rather quiet for the past couple of months, which reflects two concurrent facts. <br />
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One is an incredibly busy period for my own manufacturing job. Good stuff, but hugely time-consuming, filling work days and leaving little mental space for blogging.<br />
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The other fact, however, gets closer to actual root cause of minimal posting. <br />
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The more I learn about lean systems, the more I come to grips with the utter centrality of just a few things. Particularly, the topics of pull, <i>kaizen</i> and respect for people dominate my perspective on leading a particular enterprise.<br />
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It's easy to write about what text to put on a <i>kanban</i> card. I find it harder, however, to write clearly about communicating <i>kaizen</i>, for example. Having little to say, I have chosen to not write. Why clutter your already-crowded in-box or RSS reader with mere drivel?? Overproduction waste...yuck. <br />
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In the past week, though, a bit of clarity emerged for me. <br />
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I've begun writing a (short) book on a specific application of <i>kaizen</i>. I hope to have it done by end of April. But I'll probably not be posting here much. There's only so much writing I find I can do. <br />
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I may well post some news on the project here...I may want your input to do <i>kaizen</i> on the <i>kaizen</i> effort. But this space may well be quiet for the next few months. <br />
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Thanks for reading and, by all means, keep on learning. <br />
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<span style="font-size: x-small;">Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.</span>Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com84tag:blogger.com,1999:blog-3782156.post-72017062832939119272012-10-26T16:30:00.000-04:002012-10-26T16:30:37.735-04:00Creating InterestFlow is a lot more interesting than batch. <br />
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This occured to me in recent conversations with one of our team leaders who schedules work for her area. A series of well-intended but misdirected steps had created a batch process in her area. She couldn't figure out how to fix it but we managed to reverse the errors well enough and regain flow. Two weeks later, she couldn't be more pleased.<br />
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"We are getting more done each day," she beamed. Why? I asked. "Well, there is more variety. We work on several different products each day and that stops boredom. Plus, by doing that we use different materials and are less likely to run out of our supplies." <br />
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There is all the theory of why flow trumps batch, why synchronizing production to sales works, why pull is better than push, why reacting promptly is better than predicting accurately.<br />
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Yet, when you get down to the core, it's also just a lot more interesting. <br />
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<span style="font-size: x-small;">Click here to </span><a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US"><span style="font-size: x-small;">subscribe to Learning about Lean by email</span></a><span style="font-size: x-small;">.</span><br />
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<span style="font-size: x-small;">.</span>Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com22tag:blogger.com,1999:blog-3782156.post-55117436328858406212012-10-11T19:13:00.000-04:002012-10-11T19:13:00.444-04:00Go Look at the Ears<div align="center">
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<span style="color: black; font-family: Arial; font-size: 18pt; language: en-US; mso-ascii-font-family: Arial; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;">"You know, farming looks mighty easy when your plow is a pencil and you're a thousand miles from the corn field."</span></div>
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<span style="font-size: x-small;"><span style="color: black; font-family: Arial; language: en-US; mso-ascii-font-family: Arial; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;">Dwight Eisenhower, Address </span><span style="color: black; font-family: Arial; language: en-US; mso-ascii-font-family: Arial; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;">at Bradley University, Peoria, Illinois, 9/25/56</span></span></div>
<div align="center">
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Ike had it right. Need we say more about getting out of the office and to the place where we add value? About showing respect for the folks doing the work by spending time in their worlds? About feeling the rocks in the soil and the insects crawling and the joy of a good harvest and the sweat by which it comes about? <br />
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No wonder the Allied Armies were willing to follow and fight for General Eisenhower. <br />
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<em><span style="font-size: x-small;">My thanks to </span></em><a href="http://www.industryweek.com/articles/going_to_the_gemba_25543.aspx?cid=nliwci"><em><span style="font-size: x-small;">Jamie Flinchbaugh</span></em></a><em><span style="font-size: x-small;"> for pointing me to the Eisenhower quote. </span></em><br />
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<span style="font-size: x-small;">Click here to </span><a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US"><span style="font-size: x-small;">subscribe to Learning about Lean by email</span></a><span style="font-size: x-small;">.</span>Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com33tag:blogger.com,1999:blog-3782156.post-66275867632471389902012-10-08T21:11:00.000-04:002012-10-08T21:11:09.247-04:00The Curse of SophisticationAs long as I've worked at implementing a Lean strategy, I continue to find it amazing how a description of it seems to fall flat on others' ears. A common reaction is "Well, it's just common sense." <br />
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Which is truly a comment which dismisses it as a viable strategy.<br />
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Lean works when folks accept the fact that "simple" works. That replacing what you sold is an effective inventory strategy. That a promptly-recorded, hand-written metric is an effective visual indicator. That a manager walking down the hall to see a situation for herself beats the daylights out of a screen-full of four decimal pointed figures. <br />
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Our access to technology and obsession with sophistication blinds us to simple processes. Simple processes are, less and less, "common sense". <br />
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And it is that simplicity which is truly Lean. <br />
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<span style="font-size: x-small;">Click here to </span><a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US"><span style="font-size: x-small;">subscribe to Learning about Lean by email</span></a><span style="font-size: x-small;">.</span>Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com9tag:blogger.com,1999:blog-3782156.post-84536228870037469372012-09-14T06:00:00.000-04:002012-09-14T06:00:14.293-04:00Ten Years of BloggingFlying well under any publicity banner, today marks ten years of this blog. My <a href="http://joeelylean.blogspot.com/2002/09/dwights-visit-old-friend-of-our.html">first-ever post</a>, on September 14, 2002, got this whole thing going. 568 posts later, allow me a few reflections. <br />
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Ten years ago, there were not many resources about Lean on the web. Blogging itself was new; the concept of self-publishing triggered consternation for many, worried that unedited text would lead the world astray. My rationale for starting this odd exercise was simple. I was learning more about Lean. Many of the vendors with whom I worked wanted to learn as well...we linked up electronically. Amazingly, others enjoyed it as well...people I never knew, around the world. I kept writing. The exercise helped me learn. <br />
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And a lot has changed. <br />
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Lean resources have multiplied on the web. There is terrific stuff out there in many forms...solid material by outstanding thinkers and writers. Blogging, as a medium, grew greatly and then faded as Facebook, Twitter and mobile apps unchained people from desktop and laptops machines. Attention spans also shortened. Even the <a href="http://sethgodin.typepad.com/">best blogs</a> use fewer words now than five years ago. <br />
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Nevertheless, I continue to learn much about Lean...I'm almost 14 years into applying this framework for approaching processes. And I feel I'm going deeper into it. How do we implement it? How do I explain it? How do I bring others along, philosophically? <br />
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It's easy to explain a kanban system. But how to bring others along to grasp the criticality of a pull system? That's a different level of conversation. <br />
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That's what I'm learning. I less sure just how to write about it; thus not so many posts here in recent months. <br />
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But, man, am I still learning. And the blogging platform uniquely allows a "parking place" on the web for substantive thinking. So, I'll keep this alive. <br />
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After all, it would be a shame to not try to go for twenty years. <br />
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Keep learning. And thanks for reading. <br />
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<span style="font-size: x-small;">Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.</span>Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com5tag:blogger.com,1999:blog-3782156.post-89463495785537629052012-06-05T19:09:00.000-04:002012-06-05T19:09:00.337-04:00Probing the PerimeterOne of our supervisors recently began a very useful practice, its clear elegance being a model worth considering.<br />
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She was faced with a<a href="http://en.wikipedia.org/wiki/Theory_of_Constraints"> physical constraint</a> in her area, in her case a particular piece of equipment which seemed to limit her group's daily production. But to what extent did it actually limit production? She launched a very simple experiment.<br />
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Each day, she asked her team if they could produce one unit more than the day before. <br />
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While the group (and the supervisor) thought the limit was 254 units, they tried 255. It worked. The next day, they tried 256. Hmmm. She then asked what they learned with one more unit. The group made observations. And tried 257. The process has continued over the past month. And they have discovered they do have a constraint but the limit is both higher than they imagined and also more manageable they they had thought. <br />
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Goldratt says the second step of dealing with a constraint is to maximize it. This is just what she did. Just as a skilled physician gently probes around the perimeter of an abdominal mass to understand just what it is, this team gently probed the extent of the constraint and, in so doing, understood it in a remarkably new way. <br />
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Please note, this only works with a system bumping into a constraint. If the customer is not asking for one more item, you only create waste by making one more item. But, to understand a limiting factor, this is a very quick, simple and low-cost method to learn much. <br />
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Probe gently. Probe well. <br />
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<span style="font-size: x-small;">Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a></span>.Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com6tag:blogger.com,1999:blog-3782156.post-72997599192961074122012-06-04T19:57:00.000-04:002012-06-04T19:57:00.962-04:00Organizations Which SucceedWhile not a Lean expert, ESPN commentator <a href="http://en.wikipedia.org/wiki/Colin_Cowherd">Colin Cowherd</a> recently made a comment I found insightful. <br />
<br />
Observing three organizations which seemed to be consistently successful, he found this common theme amongst the San Antonio Spurs, the New England Patriots and the Boise State football program. <br />
<br />
<b> "Celebrate rarely. Grind always."</b><br />
<br />
All three teams consistently outperform any expectations made on the basis of the "talent" they have. All three have had long-tenured leadership which has maintained a consistent perspective on how to succeed. None are flashy. All repeatedly win. <br />
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Useful to consider. <br />
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<span style="font-size: x-small;">Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.</span>Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com5tag:blogger.com,1999:blog-3782156.post-8993477582030652262012-06-03T19:12:00.000-04:002012-06-03T19:12:00.589-04:00PDCA--a clear perspective<br />
One of shortest, best descriptions of the philosophy of Plan-Do-Check-Act I've seen in some time is <a href="http://sethgodin.typepad.com/seths_blog/2012/05/getting-serious-about-experimentation.html">here</a>, published a few days ago by <a href="http://sethgodin.typepad.com/seths_blog/">Seth Godin</a>.<br />
<br />
Mull on it. To your own benefit. <br />
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<span style="font-size: x-small;">Click here to </span><a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US"><span style="font-size: x-small;">subscribe to Learning about Lean by email</span></a><span style="font-size: x-small;">.</span>Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com1tag:blogger.com,1999:blog-3782156.post-53541458918818091192012-04-30T20:11:00.000-04:002012-04-30T20:11:00.283-04:00Just Hold the RelishWhy do we have the Hot Dog bun? <br />
<br />
Because a guy instinctively wanted to stop waste and improve his business. <br />
<br />
A soon-to-published <a href="http://www.npr.org/books/titles/151450134/how-the-hot-dog-found-its-bun-accidental-discoveries-and-unexpected-inspirations#excerpt">new book</a> recounts clever innovation. Here's how <a href="http://www.npr.org/2012/04/29/151451448/hot-dog-meets-bun-famous-food-discoveries">one reviewer described</a> the humble beginnings of the Hot Dog Bun, as recounted in the book:<br />
<br />
<blockquote>
...<span style="color: #333333; font-family: arial, sans-serif; font-size: 17px; line-height: 24px;">the best story comes out of St. Louis in the 1880s, and there was a street vendor who was selling [hot dogs]. At the time they weren't called hot dogs, they were called either red hots or frankfurters. And while selling them, he would give out white gloves, because when someone would buy the red hot they wouldn't want to get their hands scalded or wouldn't want to get too greasy. The problem was that a lot of the patrons were running off with the gloves, and this was really hurting his bottom line. What he ended up doing was going to a brother-in-law of his and saying, look I have this problem, and he was lucky enough that his brother-in-law was a baker and suggested the soft roll.</span></blockquote>
The white gloves constituted over-processing waste, doing too much to the product. Yet, he also had to keep the grease off the customer's clothes to prevent a waste of defects. Thus, he integrated the protection with the product. <br />
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<br />
<img height="312" src="http://cdn.funcheap.com/wp-content/uploads/2012/02/hot-dog.jpeg" width="320" /><br />
Explain this to your buddy next time you visit the ball park. Or better, bring along some white gloves to make your point!<br />
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<span style="font-size: x-small;">Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.</span>Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com1tag:blogger.com,1999:blog-3782156.post-66562417155131383312012-04-29T19:25:00.000-04:002012-04-29T19:25:00.206-04:00Plan to Actual, with chocolate icingOn my way to work recently, I stopped by the bakery of our local grocery store to buy a celebratory-looking cupcake. While making my choice, I spotted this sign on the counter. <br />
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<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh0EC5MWg-kFn0sQ2YLF6iM4A1_95_CUhFNl7xm3DUnTJ7YKUM9PhDEc_KS5Cbr65-NhHJCoiky5t7qh6Zu9IeBrS0W-uxFFSSYbvibmGiquKRHFIgiytfUhHMgfCFb_6fC4tyRnQ/s1600/Kroger+Bakery+Scorecard+Poster.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh0EC5MWg-kFn0sQ2YLF6iM4A1_95_CUhFNl7xm3DUnTJ7YKUM9PhDEc_KS5Cbr65-NhHJCoiky5t7qh6Zu9IeBrS0W-uxFFSSYbvibmGiquKRHFIgiytfUhHMgfCFb_6fC4tyRnQ/s320/Kroger+Bakery+Scorecard+Poster.jpg" width="320" /></a></div>
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Plan to Actual. With a twist...it was out there for all the customers to see. <br />
<br />
And I was surprised. Why was the target so low? And why was neither the store nor the bakery department hitting the goal? And how did they get these numbers in the first place? This is a well-run store and the bakery department in particular is very good...I've ordered any number of specialty cakes over the years and they always do a terrific job. <br />
<br />
"So how can I improve your score?" I asked. The manager smiled, thanked me for noticing and told me I could find a link on the bottom of my receipt where I could give voice to my satisfaction. <br />
<br />
So I did. <br />
<br />
And I figured out why the score was so low.<br />
<br />
I went to the site indicated at the bottom of my purchase receipt and found:<br />
<br />
<ul>
<li>A requirement to enter data from the receipt which was not so labeled on the receipt. I took a guess and got in. This took a couple of minutes</li>
<li>The survey was long, at least 5 screens worth. I skipped a couple of questions and got an error message demanding me to go back and answer all the questions. </li>
<li>Only deep into the survey did they ask about the actual bakery. </li>
<li>Almost 8 minutes later, I finished the survey and then got this screen message:</li>
</ul>
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<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEglKBY-DsXzC815cc5QrnsOoMlW95HcmG-LoI1C9JJXhOwa6aV1QyBqy64Fm0Vuh7dRdy3StJQzQQyB0Qv1CVxZrwxBFuyuvfCEuNgWye08c0rV9uZ9QUwNxyPHtFfy9n8EUzzuLA/s1600/Kroger+Error+Screen.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="157" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEglKBY-DsXzC815cc5QrnsOoMlW95HcmG-LoI1C9JJXhOwa6aV1QyBqy64Fm0Vuh7dRdy3StJQzQQyB0Qv1CVxZrwxBFuyuvfCEuNgWye08c0rV9uZ9QUwNxyPHtFfy9n8EUzzuLA/s320/Kroger+Error+Screen.png" width="320" /></a></div>
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Bummer. All that work and it didn't even take. I was a very satisfied customer. And I couldn't make a clear, simple statement to the store of that fact. And how did the store take 5 screens of data and boil it down to a single metric? Did anyone know? Did the bakery staff know? Why was the bakery's score "47%"? Percent of what?? I was willing and anxious to help bump up that score but was unable.<br />
<br />
Misalignment. <br />
<br />
It's a good thing, a very good thing, to have visual, transparent tools. It's a horrible thing, a very horrible thing, to have the method of making those measurements disconnected from the display. <br />
<br />
Could my customers figure out a way to bump our score? Can my employees figure out how to help our visually-communicated metrics? <br />
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Can yours?<br />
<br />
Be aligned.<br />
<br />
PS. What was the celebration about? The three of us die-hard baseball fans at our shop had a small ceremony to sing Happy Birthday on the 100th anniversary of baseball in Boston's venerable Fenway Park. Yeah, we really sang. Yaz would be proud.<br />
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<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjRRk4ES096kXYT5_7lIW5ivIMomwyYc7Y0yjqCp5CKSSW4bDJlfbtVCC69RsNbdIN9B0fdEe4FFy128Wjay4Phtyq44ElHsaaiwlz_NebmsQXztAB5FTe2lZno1Jk0vDXznqA03g/s1600/Fenway+Park+Celebration.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjRRk4ES096kXYT5_7lIW5ivIMomwyYc7Y0yjqCp5CKSSW4bDJlfbtVCC69RsNbdIN9B0fdEe4FFy128Wjay4Phtyq44ElHsaaiwlz_NebmsQXztAB5FTe2lZno1Jk0vDXznqA03g/s320/Fenway+Park+Celebration.jpg" width="320" /></a></div>
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<span style="font-size: x-small;">Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.</span>Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com6tag:blogger.com,1999:blog-3782156.post-86471732191300220922012-04-17T19:33:00.010-04:002012-04-17T19:33:00.272-04:00Tom Peters on SystemsI've long been a fan of <a href="http://www.tompeters.com/">Tom Peters</a>. Second only to <a href="http://en.wikipedia.org/wiki/Peter_Drucker">Peter Drucker</a> in business writers who have influenced me, Peters' often brash views have jarred and stretched me repeatedly ever since I read <a href="http://www.amazon.com/In-Search-Excellence-Americas-Companies/dp/0060150424/ref=tmm_hrd_title_0">"In Search of Excellence"</a> for the first time in 1982. <br />
<br />
I'm also a fan of systems...thus this blog about Lean. <br />
<br />
So, when Peters published a <a href="http://www.tompeters.com/docs/six_sigma.0328.12.pdf">short paper on the role of systems</a> last week, I read it with interest. While systems have a place, he says, it is SECOND place.<br />
<br />
What is more crucial than systems?? He suggests two things:<br />
<ul><li>Passionate <em>local</em> leadership</li>
<li>Corporate culture that supports superior quality work</li>
</ul>In that setting, systems work. Apart from these prerequisites, systems are inadequate. <br />
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The paper is worth your reading. It squares with my experience. <br />
<br />
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Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com5tag:blogger.com,1999:blog-3782156.post-32734967596329950122012-04-12T20:09:00.003-04:002012-04-12T20:09:00.108-04:00Five things to do when you walk through GembaLook each person in the eye and greet them by name. <br />
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Observe the visual management tools in the area. Note what is normal and what is not normal.<br />
<br />
Have one conversation of at least three minutes with one associate. <br />
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Explain "why" to one person. <br />
<br />
Have a hearty laugh with someone. <br />
<br />
<br />
<span style="font-size: x-small;">Click here to </span><a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US"><span style="font-size: x-small;">subscribe to Learning about Lean by email</span></a><span style="font-size: x-small;">.</span>Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com3tag:blogger.com,1999:blog-3782156.post-34128388661288049892012-04-11T19:51:00.001-04:002012-04-11T19:51:00.216-04:00Control ChartsThe more I use them, the more I'm amazed at Control Charts. <br />
These simple, visual tools have been around for a long time. And, I've observed, those with keen numeric skills have made them more and more complex. <br />
<br />
Yet the simple is good. And handwritten is even better for communicating the state of a process to those involved in that process. <br />
<br />
<img height="157" id="il_fi" src="http://thequalityweb.com/Images/xbarcht.gif" style="padding-bottom: 8px; padding-right: 8px; padding-top: 8px;" width="320" /><br />
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Think about it. It is a simple graph. Time is plotted along the bottom. It can be hours/shifts/days/months. It doesn't matter what but the period needs to be appropriate for the data. Then, each period, a person places a dot to measure the parameter in that period. <br />
<br />
The 3 horizontal lines are a mean or target level for the paramater and upper and lower control limits (UCL and LCL). Typically, these lines are placed 2 standard deviations above and below the mean. <br />
<br />
This recognizes that there is inherent varability in a process. If the varability stays within bounds, the process is working. If a point exceeds the bounds or shows a trend within the bounds, there is un-natural variablility. <br />
<br />
In the first case, we say the variation comes from common causes. In the second, we call is special cause. To mess with common causes is called "Tampering". To ignore special causes is called "Neglect". Don't tamper. Don't neglect. <br />
<br />
It's that simple.<br />
<br />
Yet, the beauty of the control chart is not the dots or the lines or the statistics. It is in the conversation the chart data provokes. The chart focuses attention on the right thing...is the process stable? If not, what causes the instability and how do we fix it so it stays stable, longer? It allows the group to avoid finger pointing and talk about issues that matter. <br />
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It happened again for me this morning. It never gets old. <br />
<br />
If you are not using this simple tool, try it. <br />
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<span style="font-size: x-small;">Click here to </span><a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US"><span style="font-size: x-small;">subscribe to Learning about Lean by email</span></a><span style="font-size: x-small;">.</span>Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com8tag:blogger.com,1999:blog-3782156.post-48317440567202287682012-04-10T19:58:00.004-04:002012-04-10T19:58:00.941-04:00Environmental FeesOne of my jobs is final checkoff on all our invoices before payment. And I've noticed a trend over the last year.<br />
<br />
More companies are adding small fees to the bottom of invoices called "Environmental Fees". These fees tack on $5 to $20 to each bill. I'd expect that from chemical companies getting rid of some waste products. Perhaps from others with difficult disposals. Yet that's often not the case. On fully 3/4 of these invoices the companies offer no clear explanation why this fee is appropriate. <br />
<br />
Which makes me wonder.<br />
<br />
Are these fees valid? Or are they just surcharges, adding no value, disguised in a manner to which our green-oriented society cannot object? <br />
<br />
Much of it feels like a different type of waste. Which lowers value. <br />
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<span style="font-size: x-small;">Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.</span>Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com0tag:blogger.com,1999:blog-3782156.post-91140693429689417072012-04-09T20:58:00.000-04:002012-04-09T20:58:34.122-04:00Explaining Single Piece Flow<div class="separator" style="clear: both; text-align: center;"></div><div style="margin-left: 1em; margin-right: 1em;"> </div><br />
<br />
Try this next time you try to explain flow. <br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="http://whatsyoursalesstory.com/wp-content/uploads/2009/06/bones2.bmp" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="200" src="http://whatsyoursalesstory.com/wp-content/uploads/2009/06/bones2.bmp" width="158" /></a></div><br />
A system with single piece flow is like a domino chain. <br />
<div><br />
</div><div>Think about it.<br />
<ul><li>The entire system is stable when not acted upon</li>
<li>A single event provides the stimulus to start the flow</li>
<li>After that event, the flow is predictable by step and time</li>
</ul>One stimulus brings about predictable results. And this applies to physical flow as well as information flow. <br />
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<span style="font-size: x-small;">Click here to </span><a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US"><span style="font-size: x-small;">subscribe to Learning about Lean by email</span></a><span style="font-size: x-small;">.</span></div>Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com2tag:blogger.com,1999:blog-3782156.post-28661796524164763082012-04-08T22:05:00.000-04:002012-04-08T22:05:36.893-04:00Slow Drawing Stops Fast TalkingThe vendor had hardly sat down when the deluge began. We had asked his company for a proposal on a modestly-priced piece of equipment. When we met, however, it was as if he felt he had to blurt his entire proposal in 90 seconds or it would somehow evaporate.<br />
<br />
But it wasn't 90 seconds...it continued, unabated, for 10 full minutes. My head hurt. I wondered what I could do to gain some clarity. <br />
<br />
"Can I draw a picture of what I think you are saying?" I finally asked, pretty much interrupting the spiel. He wasn't quite sure what to say.<br />
<br />
I flipped a page over and sketched a bell curve based on data he presented. I slowed my pattern of speech and asked some short, specific, yes/no questions. We finally got clarity. <br />
<br />
Why?? <br />
<br />
The simple drawing altered the communication pattern. It stopped the talking. The drawing helped sort reality from hype. It slowed the mind well enough to ask good questions of the essential facts.<br />
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Our eyes are keen sensors. Fast talking only uses the ears. Better to use both. <br />
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<span style="font-size: x-small;">Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.</span>Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com0tag:blogger.com,1999:blog-3782156.post-86576112919949260752012-04-05T21:23:00.000-04:002012-04-05T21:23:30.598-04:00The Orbits of PDCAWe just passed through the end of a calendar month. That brought several reviews of metrics with colleagues. <br />
<br />
Which reminded me...it is easy to remember the short term Plan-Do-Check-Act. The kind that happens in a day or two. We try something, quickly, then see if it works. <br />
<br />
Yet PDCA happens in concentric circles, widened by longer time intervals. Did our bigger plans work last month? Last quarter? Last year? Over the past five years? <br />
<br />
The longer time frames require us to write something down, then pull it out to review. It's a stronger discipline. <br />
<br />
And more valuable. <br />
<br />
<span style="font-size: x-small;">Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.</span>Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com0tag:blogger.com,1999:blog-3782156.post-50912884414294996442012-03-25T19:39:00.000-04:002012-03-25T19:39:49.184-04:00A trip to the Doctor--A case study<div class="MsoPlainText" style="margin: 0in 0in 0pt;"><span style="font-family: Arial, Helvetica, sans-serif;">So here's an exercise for you and your team to liven up your next process-excellence gathering. </span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br />
</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;">The story below comes from a colleague of mine, who gave me permission to use it as written. On the one hand, we could read it and go "tsk, tsk, why don't medical facilities improve?" That does us no good, however.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br />
</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;">Try this instead. Distribute this story to your team. Then ask one person or sub-team to take the role of the physician, another one the role of the office administrator, another the role of the patient, another the unseen director of the clinic. Then make some proposals; how would you improve this? How would you communicate it? What principles would you employ? How would you measure it? Who would you involve in the discussion? How would change happen in this setting? </span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br />
</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;">By looking at others we learn about ourselves. </span><span style="font-family: Consolas;"> </span><br />
<span style="font-family: Consolas;"><br />
</span><br />
<span style="font-family: Consolas;">*********************</span><br />
<span style="font-family: Consolas;"><br />
</span></div><div class="MsoPlainText" style="margin: 0in 0in 0pt;"><span style="font-family: Consolas;">Went to the dr's this week for a simple dermatologic procedure. My appointment was set at 11 and I was told to expect to be there for an hour. I presumed the procedure would take about 30 minutes, and maybe prep work and post work would be the remainder. Not so. </span></div><div class="MsoPlainText" style="margin: 0in 0in 0pt;"><br />
</div><div class="MsoPlainText" style="margin: 0in 0in 0pt;"><span style="font-family: Consolas;">I arrived and was promptly taken to the procedure room by my nurse. She said the procedure indeed would take 15 to 30 minutes, but I should sit tight so she could find the dr so I could meet him. Odd, I thought, I figured we could break the ice before or after my procedure. She asked that I try not to be intimidated when I meet him, because he was "a real doctor, busy busy busy, lots of patients to see". </span><br />
<span style="font-family: Consolas;"><br />
</span><br />
<span style="font-family: Consolas;">And then came the real kicker, she listed the questions he would ask me and indicated I should "think about the answers because he needs to move on to his next appointment quickly". She left and returned 20 minutes later, indicating that he had another procedure scheduled at 11 and it would be an hour and a half before he could meet me. I started towards the door and told her I would need to reschedule, I couldn't wait that long. She asked that I stay; she said that she was going to be doing my procedure anyways so we could get started immediately. </span></div><div class="MsoPlainText" style="margin: 0in 0in 0pt;"><br />
</div><div class="MsoPlainText" style="margin: 0in 0in 0pt;"><span style="font-family: Consolas;">The following things struck me as odd:</span></div><div class="MsoPlainText" style="margin: 0in 0in 0pt;"><span style="font-family: Consolas;">- Why was the appointment made longer than procedure required?</span><br />
<span style="font-family: Consolas;">-Why did the nurse have to "hunt down" the doctor for a quick meet and greet?</span></div><div class="MsoPlainText" style="margin: 0in 0in 0pt;"><span style="font-family: Consolas;">-Why not stagger appointment times if this is really important?</span></div><div class="MsoPlainText" style="margin: 0in 0in 0pt;"><span style="font-family: Consolas;">-Why did she feel compelled to warn me of his busy nature? </span></div><div class="MsoPlainText" style="margin: 0in 0in 0pt;"><span style="font-family: Consolas;">-Why didn't she just finish my procedure first and give me the option to meet him afterwards?</span></div><div class="MsoPlainText" style="margin: 0in 0in 0pt;"><br />
</div><div class="MsoPlainText" style="margin: 0in 0in 0pt;"><span style="font-family: Consolas;">This clicked with me for a few reasons:</span></div><div class="MsoPlainText" style="margin: 0in 0in 0pt;"><span style="font-family: Consolas;">- I felt like a "part", something that needed processed and moved on, not a person that had questions or concerns with a medical procedure. </span><br />
<span style="font-family: Consolas;">- Do I make people feel this way?</span></div><div class="MsoPlainText" style="margin: 0in 0in 0pt;"><span style="font-family: Consolas;">- Do I respect the time of others, or make them wait on my own busy, busy, busy schedule?</span></div><div class="MsoPlainText" style="margin: 0in 0in 0pt;"><br />
</div><div class="MsoPlainText" style="margin: 0in 0in 0pt;"><span style="font-family: Consolas;">For me, a fundamental of Lean is in gaining efficiency and respecting people. This doctor had attempted to gain efficiency, but perhaps inadvertently not respected the time of others. </span></div><br />
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Click here to <a href="http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1812760&loc=en_US">subscribe to Learning about Lean by email</a>.Joehttp://www.blogger.com/profile/09405132833234395104noreply@blogger.com1