The best winning strategy for the future does not stop at our plant walls. Even if we are the most efficient manufacturer in our industry with the hottest products, our business will fail if we have a weak supply chain. We must extend our improvement efforts to include our supply chain.
Just look at the recently reported problems at Dell with their supply chain problems namely part shortages. Or just look at all the recent quality issues with products coming from China.
As labor costs decline as a percentage of product costs, we naturally start to focus on material costs for opportunities for improvement. Most companies up to now, play the games of “Beat up our Supplier” and “Chase the Globe for Lower Labor Cost” along with “Outsource it All”. Many companies have rightly earned a bad reputation with these strategies that aim solely at cost reductions at the expense of building a stronger supply chain. These companies will drop any of their suppliers to save a dime or less on piece part costs.
This method certainly has proven successful at pocketing some financial gains in the short run but will quickly cause deterioration in the supply chain. If we start to calculate the true cost of these methods over time, we may find out that our actual savings is much smaller than reported or even non-existent.
A better approach begins with completely changing our thinking of our supply chain. Our supply chain is the backbone of our value stream and everyone in the supply chain is linked together as partners. We are stronger when our suppliers are stronger. Toyota knows this lesson well.
As a valued partner, we should open our doors to our suppliers. We must share best practices, teach lean principles, coach and encourage continuous improvements. How many of our suppliers visit our facility? (I am not talking about sales reps) How about production, quality, engineering and even shop floor associates?
Do we invite our suppliers to join a kaizen event? Do we send our people to a supplier kaizen event? Do we communicate problems on a daily basis? Do we team together to solve problems or do we just send out formal corrective action requests? Do we listen to our suppliers?
It’s no longer good enough to just improve our internal processes. Our future success will not be based on how good we perform rather on how well our supply chain performs.
Mike Wroblewski's blog on developing a Kaizen Mind focused on Lean Manufacturing, Lean Healthcare, Lean Government and Six Sigma Quality
Friday, August 31, 2007
Sunday, August 26, 2007
My First Toyota Sales Experience
There is no doubt that I am big fan of the Toyota Production System and the resulting Toyota vehicle product line. Despite these positive feelings, I have never owned a Toyota. Each time I am in the market for a new vehicle, I ended up buying a domestic brand including Buick, Chevy, Ford, and Dodge.
Yesterday, I went down to a Toyota Dealership in Indiana (name withheld) with a serious interest in buying a Toyota this time around. This was my first official Toyota sales contact although my wife visited Toyota dealerships before. All the vehicles were outstanding (I especially liked the newly redesigned Tundra). In direct contrast to the Toyota vehicles, my first time Toyota Sales Experience was not impressive.
Understanding that Toyota Motor Company does not own the dealerships and has no direct control over their operation, I suggest Toyota take a closer look at the dealership experience for kaizen. If Toyota can influence improvements in this experience, they can make a huge impact on continuing their growth. Otherwise, they may lose customers, not on the basis of the products but on the poor dealership experience.
The first major mistake was the arrogance of the Toyota Salesman. He hyped the Toyota products for features and engineering while slammed every domestic car manufacturing company and their products. We told him of our comparison shopping of other brands and he made us feel we were stupid to even consider them. Not a good sales technique! I was always taught NEVER to say bad things about any of your competitors. We even told him that we bought one of those terrible domestic vehicles in the past and it performed great. I guess we were just lucky?
The Toyota Salesman continued on his ego trip when we told him of another Toyota dealership my wife visited earlier in the week. He promptly pulled out some regional sales data sheet proudly showing his dealership ranking was extremely higher in number of vehicle sales than this other Toyota dealership. He continued his error by telling us that all he cares about is increasing the number of units sold to increase their ranking. I was a little stunned. Talk about results based management! What about us, the customer? Are we only a number to add to his tally sheet? Another poor sales method!
After working through the numbers (which did not change much from the list price), he tried the old “What will it take to get us to buy this vehicle today?” routine. We told him that we were going to look around and do comparison shopping before we made any decision. Yet, he pressed on with the pressure for a decision today.
The next poor experience was when we offered to trade in our vehicle. He did the routine vehicle check and asked us what we wanted for it. When we told him our expectation for the trade value, he laughed and stated that there was no way. We have a newer model, low miles, domestic vehicle with great options that we rated using both Kelly Blue Book and Edmunds. He offered us 35% less that the book value for our vehicle which was more of an insult to our intelligence than a good opening sales technique.
As we departed, we thanked him for his time. Before we even made it out of the showroom door, this salesman was off helping the next potential tally sheet addition in the sales lot.
Despite this poor sales experience, I will give other Toyota dealerships another chance. It would be unfair to judge all Toyota salesmen on this sample size of one but many other potential customers might not give them a second chance.
Yesterday, I went down to a Toyota Dealership in Indiana (name withheld) with a serious interest in buying a Toyota this time around. This was my first official Toyota sales contact although my wife visited Toyota dealerships before. All the vehicles were outstanding (I especially liked the newly redesigned Tundra). In direct contrast to the Toyota vehicles, my first time Toyota Sales Experience was not impressive.
Understanding that Toyota Motor Company does not own the dealerships and has no direct control over their operation, I suggest Toyota take a closer look at the dealership experience for kaizen. If Toyota can influence improvements in this experience, they can make a huge impact on continuing their growth. Otherwise, they may lose customers, not on the basis of the products but on the poor dealership experience.
The first major mistake was the arrogance of the Toyota Salesman. He hyped the Toyota products for features and engineering while slammed every domestic car manufacturing company and their products. We told him of our comparison shopping of other brands and he made us feel we were stupid to even consider them. Not a good sales technique! I was always taught NEVER to say bad things about any of your competitors. We even told him that we bought one of those terrible domestic vehicles in the past and it performed great. I guess we were just lucky?
The Toyota Salesman continued on his ego trip when we told him of another Toyota dealership my wife visited earlier in the week. He promptly pulled out some regional sales data sheet proudly showing his dealership ranking was extremely higher in number of vehicle sales than this other Toyota dealership. He continued his error by telling us that all he cares about is increasing the number of units sold to increase their ranking. I was a little stunned. Talk about results based management! What about us, the customer? Are we only a number to add to his tally sheet? Another poor sales method!
After working through the numbers (which did not change much from the list price), he tried the old “What will it take to get us to buy this vehicle today?” routine. We told him that we were going to look around and do comparison shopping before we made any decision. Yet, he pressed on with the pressure for a decision today.
The next poor experience was when we offered to trade in our vehicle. He did the routine vehicle check and asked us what we wanted for it. When we told him our expectation for the trade value, he laughed and stated that there was no way. We have a newer model, low miles, domestic vehicle with great options that we rated using both Kelly Blue Book and Edmunds. He offered us 35% less that the book value for our vehicle which was more of an insult to our intelligence than a good opening sales technique.
As we departed, we thanked him for his time. Before we even made it out of the showroom door, this salesman was off helping the next potential tally sheet addition in the sales lot.
Despite this poor sales experience, I will give other Toyota dealerships another chance. It would be unfair to judge all Toyota salesmen on this sample size of one but many other potential customers might not give them a second chance.
Do your meetings start and end on time?
On our lean journey, we sometimes overlook the simple and obvious wastes. Take meetings for example. How many of your meetings start and end on time? For the past several months, I recorded the FPY (First Pass Yield) rate of meetings starting on time that I attended ending up with a poor 0% FPY rate. Not one meeting started on time and very few ended on time.
How much muda (waste) is accepted in your companies on a daily basis just because we can not start and end meetings on time. Is this problem just too complex to solve or do we just accept this waste as a by product of doing business today?
Of course, we should eliminate all unnecessary meetings as a first step. Then demand, encourage, reward, promote and expect all meetings to start on time and end on time.
How much muda (waste) is accepted in your companies on a daily basis just because we can not start and end meetings on time. Is this problem just too complex to solve or do we just accept this waste as a by product of doing business today?
Of course, we should eliminate all unnecessary meetings as a first step. Then demand, encourage, reward, promote and expect all meetings to start on time and end on time.
Wednesday, August 08, 2007
Prosperity
"If your want one year of prosperity, grow seeds.
If you want ten years of prosperity, grow trees.
If you want one hundred years of prosperity, grow people."
Chinese Proverb
If you want ten years of prosperity, grow trees.
If you want one hundred years of prosperity, grow people."
Chinese Proverb
Opportunity Calls
As I pulled into the company parking lot, a steady rain fell from the morning clouds. I made my way down the hall, turned on the office lights and fired up my laptop. After a quick email scan, it’s time for my gemba walk. Before I could make it out the door, my phone rings. It was the company VP of Operations and he was not happy.
Apparently, the President of the company went out on the shop floor late yesterday afternoon and found a couple of issues related to our lean efforts. The President naturally passed these concerns to the VP and now to me.
“Mike, we have some problems.” said the VP with a serious tone. I quickly answered.” That’s great news!”
Apparently, the President of the company went out on the shop floor late yesterday afternoon and found a couple of issues related to our lean efforts. The President naturally passed these concerns to the VP and now to me.
“Mike, we have some problems.” said the VP with a serious tone. I quickly answered.” That’s great news!”
Wednesday, August 01, 2007
We Need Human Andons
With my last post on andon lights, I pointed out the seemingly widespread misuse of this simple visual tool. More importantly, we don’t stop to fix the problems and problems remain hidden. Andon lights are just tools. The real mission is the quick identification of all the interruptions to process flow and the speedy countermeasures to prevent the problems from occurring in the future. What we really need is human andons.
How many times do you or your employees see a problem and quietly fix it?
Is this the right thing to do?
Did you really fix the problem so it does not appear again or just fixed it this time?
Is the company in a better position by this approach?
Do these problems show up again later in the day? Tomorrow? Next week?
What if, starting immediately, every single employee in your company with every single task and every single process, takes on the additional role of human andon by identifying every single occurrence of interruption to the flow?
Would you be surprised by the results? A little overwhelming to think about the potential staggering number of flow interruptions our employees deal with every single day.
But think of all the opportunities for improvement? Call it kaizen heaven.
For some lingering reasons from the traditional management school of thinking, we do not welcome the news of problems. We prefer to hear only good news. We glorify news of some miraculous feats of managerial leadership that “pulled out all the stops, to muscle the order through the shop” but don’t talk about the problems encountered and countermeasures to prevent them. We still are caught up in placing blame for problems.
Until we removed the current equation (Problems = Blame) from our mindset and replace it with the lean thinkers equation (Problems = Opportunities), we can not go forward on our journey.
How many times do you or your employees see a problem and quietly fix it?
Is this the right thing to do?
Did you really fix the problem so it does not appear again or just fixed it this time?
Is the company in a better position by this approach?
Do these problems show up again later in the day? Tomorrow? Next week?
What if, starting immediately, every single employee in your company with every single task and every single process, takes on the additional role of human andon by identifying every single occurrence of interruption to the flow?
Would you be surprised by the results? A little overwhelming to think about the potential staggering number of flow interruptions our employees deal with every single day.
But think of all the opportunities for improvement? Call it kaizen heaven.
For some lingering reasons from the traditional management school of thinking, we do not welcome the news of problems. We prefer to hear only good news. We glorify news of some miraculous feats of managerial leadership that “pulled out all the stops, to muscle the order through the shop” but don’t talk about the problems encountered and countermeasures to prevent them. We still are caught up in placing blame for problems.
Until we removed the current equation (Problems = Blame) from our mindset and replace it with the lean thinkers equation (Problems = Opportunities), we can not go forward on our journey.
Tuesday, July 31, 2007
Andon Lights Make Us Look Lean
After visiting and working at numerous manufacturing plants across the United States this past year, I have come to the conclusion that we really don’t know how to use an andon light properly much less know why we should use them. In most cases, the lights are pointed out as one of the indicators that the plant does know about lean and practices lean principles. In these same plants, I see other things.
I have seen andon lights turned on and stay green all shift long regardless of multiple problems occurring. (Could it be possible the management yelled about the line stops and flashing lights so much that everybody is now afraid to pull the cord?)
I have seen andon lights turn on but all the bulbs were burned out rendering the light useless. (Maybe we should also work on our 5S audit program, lack of gemba walks and poor TPM program?).
I have seen andon lights flash and blink for hours but not one person comes running. (Why does the signal for help go unanswered and why don’t we look into the causes for the long delays?)
I have seen huge multi-stacked andon lights that nobody seems to remember why each color was needed. (How can we make the andon light system simpler?)
I have even seen andon lights used in shop floor pranks just to watch people frantically run around for the humor of the guilty light switch pullers. (Maybe we should read the story about the boy that cried wolf at our next shift meeting?)
Here is a simple visual signal that could improve awareness and responsiveness on the shop floor yet we don’t take the time to properly train and use this tool for its intended function. Just having andon lights is not an indication of being lean; it only helps make problems visible along with promoting the goal of FAST response.
I guess we have taken to heart what my old junior high football coach would regularly say to us on game day, “Boys, keep your jerseys tucked in and your socks pulled up. If you can’t play well, at least you are going to look like you can play well.”
I have seen andon lights turned on and stay green all shift long regardless of multiple problems occurring. (Could it be possible the management yelled about the line stops and flashing lights so much that everybody is now afraid to pull the cord?)
I have seen andon lights turn on but all the bulbs were burned out rendering the light useless. (Maybe we should also work on our 5S audit program, lack of gemba walks and poor TPM program?).
I have seen andon lights flash and blink for hours but not one person comes running. (Why does the signal for help go unanswered and why don’t we look into the causes for the long delays?)
I have seen huge multi-stacked andon lights that nobody seems to remember why each color was needed. (How can we make the andon light system simpler?)
I have even seen andon lights used in shop floor pranks just to watch people frantically run around for the humor of the guilty light switch pullers. (Maybe we should read the story about the boy that cried wolf at our next shift meeting?)
Here is a simple visual signal that could improve awareness and responsiveness on the shop floor yet we don’t take the time to properly train and use this tool for its intended function. Just having andon lights is not an indication of being lean; it only helps make problems visible along with promoting the goal of FAST response.
I guess we have taken to heart what my old junior high football coach would regularly say to us on game day, “Boys, keep your jerseys tucked in and your socks pulled up. If you can’t play well, at least you are going to look like you can play well.”
New Lean Survey 5 Why Style
Thanks to the lean thinking approach of Mark Graban from the Lean Blog, there is a new 5 Why type lean survey under experimentation to address the limits of typical surveys. This all started from the results of the Lean Enterprise Institute 2007 State of Lean Survey. Please give it a try-link to survey.
Thursday, July 19, 2007
Middle Managers are Biggest Obstacle to Lean Enterprise
According to the 2007 State of Lean Survey conducted by the Lean Enterprise Institute, the number one ranked obstacle to implementing lean is middle management resistance to change, jumping up from number three in last years survey.
Last years number one reported obstacle was backsliding which dropped all the way down to sixth place in this year’s survey.
It seems to be an interesting shift in just one year that it appears most respondents now can sustain gains better but must deal with the “concrete heads” of middle management to progress on their lean journey.
As a lean practitioner in the field working closely with several major clients, I have my own opinion on barriers to the lean journey. What about your obstacles to progress on your lean journey? Do you agree with these finding?
This survey was completed by 2,444 managers and executives within the base of LEI’s monthly e-letter subscribers. I wonder what the mix of senior level executives to lower level lean practitioners is within the 2,444 respondents. I see middle management resistance, employee resistance and supervisor resistance all making three of the top four obstacles to lean. Do you find that odd? Notice anyone missing from the list? Make me say, ummmmmmm!
From a senior executive point of view, I would say we could be a great lean company if it wasn’t for all our middle managers, supervisors and employees resisting change. Looks like the bus needs to makes a bus stop to let some (a lot of) people off. To make it more complete, how about adding supplier resistance and unreasonable customer demands to the list?
As a lean thinker, I find this difficult to believe. First, I would ask five whys to get deeper at the root cause of the obstacles to lean. It is not the five-who process to find the root blame. Until we stop trying to pin blame on someone else, we will not make progress on our lean journey. It is better that we should reflect on our own thinking and actions to see what obstacles we create and fix them first.
Despite my issues with the survey findings, LEI does an outstanding job promoting and teaching lean thinking along with helping organization on their lean journey. For more information, visit LEI at http://www.lean.org/.
Last years number one reported obstacle was backsliding which dropped all the way down to sixth place in this year’s survey.
It seems to be an interesting shift in just one year that it appears most respondents now can sustain gains better but must deal with the “concrete heads” of middle management to progress on their lean journey.
As a lean practitioner in the field working closely with several major clients, I have my own opinion on barriers to the lean journey. What about your obstacles to progress on your lean journey? Do you agree with these finding?
This survey was completed by 2,444 managers and executives within the base of LEI’s monthly e-letter subscribers. I wonder what the mix of senior level executives to lower level lean practitioners is within the 2,444 respondents. I see middle management resistance, employee resistance and supervisor resistance all making three of the top four obstacles to lean. Do you find that odd? Notice anyone missing from the list? Make me say, ummmmmmm!
From a senior executive point of view, I would say we could be a great lean company if it wasn’t for all our middle managers, supervisors and employees resisting change. Looks like the bus needs to makes a bus stop to let some (a lot of) people off. To make it more complete, how about adding supplier resistance and unreasonable customer demands to the list?
As a lean thinker, I find this difficult to believe. First, I would ask five whys to get deeper at the root cause of the obstacles to lean. It is not the five-who process to find the root blame. Until we stop trying to pin blame on someone else, we will not make progress on our lean journey. It is better that we should reflect on our own thinking and actions to see what obstacles we create and fix them first.
Despite my issues with the survey findings, LEI does an outstanding job promoting and teaching lean thinking along with helping organization on their lean journey. For more information, visit LEI at http://www.lean.org/.
Wednesday, July 11, 2007
Visual 5S Scores
As I pointed out in a previous post, lean grade inflation has found its way into plant assessments like 5S Audits. To address this issue, try converting from the common point scoring system (as seen above) to a green/red or pass/fail system (as seen below). For an added punch, supplement the green/red rating visual signal with a happy/sad face. At several plants where we made the switch, the change has proven successful and fun.

Friday, July 06, 2007
What's Next for Toyota?
I just read an outstanding piece in the latest Harvard Business Review (July/August 2007), “Lessons From Toyota’s Long Drive”, an interview of Toyota’s President Katsuaki Watanabe. If you want to learn more about the Toyota Way and the future direction of Toyota, it’s absolutely worth getting a copy. If you don’t want to spend the high cover price for the magazine, just run down to your local library to read it.
President Watanabe provides great insight to the Toyota Way in many of his comments.
In regards to Toyota’s vision for their factory of the future:
“The new manufacturing process at Takaota will completely change the way Toyota makes cars. We call them the “simple, slim, and speedy” production system. Right now our processes are complicated, so when a problem occurs, it is difficult to identify the cause. We’ve tried to make the processes at Takaota simple, keep the facility slim, and have people close by observe the process.
When the first line at Takaota opens, this summer, it be Toyota’s fastest production line, and it will cut lead times, logistics, and assembly time in half.
Instead of transfer bar, we will use robots. That will allow the line to move 1.7 times faster than it used to. We have cut the length of the line by half. A new painting process allows us to apply three coats at the same time, without having to wait for each coat to dry. This will shorten painting times by 40%. To build in quality, we will go beyond visual inspection and use high-precision instruments to measure several parameters.”
As for manufacturing flexibility, President Watanabe goes on to say:
“We will have more flexibility than ever before: Each line at Takaota will be able to produce eight different models, so the plant will produce 16 models on two lines compared with the four or five it used to produce on three lines. In the old plan we used to make 220,000 vehicles a year on each line; now we will be able to make 250,000 units on each line. Toyota needs such radical changes today.”
I was taught that inventory is one of the seven deadly wastes. In the United States, we view inventory as a necessary evil or a cost of doing business. The Toyota Way viewpoint is that inventory is an absolute evil. With this in mind, I found President Watanbe’s comments on material movement and number of parts very interesting:
“Take the movement of parts in a factory, for example. Moving components doesn’t add to their value; on the contrary, it destroys value, because parts may be dropped or scratched. So the movement of components should be limited as much as possible. I want our production engineers to take on the challenge of ensuring that things move as little as possible-close to the theoretical limit of zero-on the shop floor.”
“Our goal is to shrink the number of components we use by half.”
So how is Toyota achieving their vision of the future?
“Toyota must keep growing even as it builds a stronger foundation for the future; it has to do both for the company’s long-term health. There are three keys to building a stronger foundation: We must improve product quality, keep reducing costs, and, in order to attain those two objectives, develop human resources.”
President Watanabe provides great insight to the Toyota Way in many of his comments.
In regards to Toyota’s vision for their factory of the future:
“The new manufacturing process at Takaota will completely change the way Toyota makes cars. We call them the “simple, slim, and speedy” production system. Right now our processes are complicated, so when a problem occurs, it is difficult to identify the cause. We’ve tried to make the processes at Takaota simple, keep the facility slim, and have people close by observe the process.
When the first line at Takaota opens, this summer, it be Toyota’s fastest production line, and it will cut lead times, logistics, and assembly time in half.
Instead of transfer bar, we will use robots. That will allow the line to move 1.7 times faster than it used to. We have cut the length of the line by half. A new painting process allows us to apply three coats at the same time, without having to wait for each coat to dry. This will shorten painting times by 40%. To build in quality, we will go beyond visual inspection and use high-precision instruments to measure several parameters.”
As for manufacturing flexibility, President Watanabe goes on to say:
“We will have more flexibility than ever before: Each line at Takaota will be able to produce eight different models, so the plant will produce 16 models on two lines compared with the four or five it used to produce on three lines. In the old plan we used to make 220,000 vehicles a year on each line; now we will be able to make 250,000 units on each line. Toyota needs such radical changes today.”
I was taught that inventory is one of the seven deadly wastes. In the United States, we view inventory as a necessary evil or a cost of doing business. The Toyota Way viewpoint is that inventory is an absolute evil. With this in mind, I found President Watanbe’s comments on material movement and number of parts very interesting:
“Take the movement of parts in a factory, for example. Moving components doesn’t add to their value; on the contrary, it destroys value, because parts may be dropped or scratched. So the movement of components should be limited as much as possible. I want our production engineers to take on the challenge of ensuring that things move as little as possible-close to the theoretical limit of zero-on the shop floor.”
“Our goal is to shrink the number of components we use by half.”
So how is Toyota achieving their vision of the future?
“Toyota must keep growing even as it builds a stronger foundation for the future; it has to do both for the company’s long-term health. There are three keys to building a stronger foundation: We must improve product quality, keep reducing costs, and, in order to attain those two objectives, develop human resources.”
Wednesday, June 20, 2007
Toyota Hits the Brakes
In today's Wall Street Journal, I read an interesting article - Toyota's New U.S. Plan: Stop Building Factories. You can read it online with a paid subscription or check out the AP version.
With the past push to add capacity to match sales, it makes sense to look at this expansion plan if your sales are slowing down. Not a real surprise that the older, wise leaders of Toyota are asking questions about the need for continued US manufacturing expansion. I am surprised that each new US plant was not designed for more flexibility to run more that just one model.
Plenty of lean leadership lessons can be discovered if you look closer at this strategic shift.
With the past push to add capacity to match sales, it makes sense to look at this expansion plan if your sales are slowing down. Not a real surprise that the older, wise leaders of Toyota are asking questions about the need for continued US manufacturing expansion. I am surprised that each new US plant was not designed for more flexibility to run more that just one model.
Plenty of lean leadership lessons can be discovered if you look closer at this strategic shift.
Monday, June 18, 2007
Clean Up Aisle 5
Here is a problem I discovered on my Gemba walk. After I noticed a damaged box with components spilled on the floor, I called the first employee I saw, a Warehouse Team Leader, to show him. He looked at me with mixed emotions that I took for a combination of mainly embarrassment (since I found something wrong in his area), a bit of grief (here’s another problem to deal with first thing in the morning) and a dose of frustration (this was not a planned action item on today’s To-Do list). More than likely, he was also little angry however he did not show any of it to me.
So can you guess his response?
a) “I didn’t do it, it must have happened on second shift.”
b) “I’ll find out who did it and fire the #^@%*$ !”
c) “I am so sorry, I’ll get it cleaned up immediately”
d) “It happens all the time, but it’s not a big problem.”
e) All of the above.
While I have heard all of these responses, in one form or another, many times before in my manufacturing experience, answer c is the most common response. Most employees will promptly get help to salvage the parts and clean up the mess as soon as possible. Once the mess gets straightened out, the problem is solved and we get back to manufacturing our products.
But was the problem really solved?
Well, that depends on your idea of the problem and your definition of solved. Yes, the mess was a problem and yes, the mess got cleaned up which is the proper initial action.
However, the true problem I discovered on my Gemba walk was not a damaged box in a warehouse. The true problem is that our response was only reactive and failed to include any real corrective or preventative actions not to mention failing to record the damaged box condition (for kaizen). We think that simply cleaning up the mess quickly and scraping out the parts is all that is needed. In effect, the problem of box damage remains hidden.
We did not ask the 5 Whys. We did not list the broken box on a kaizen newspaper. We did not look for other damaged conditions in the warehouse. We did not change a single process. There was no kaizen so we are doomed to repeat this cycle another day, over and over again.
How would employees in your company respond? Are you doomed to repeat the same cycle?
So can you guess his response?
a) “I didn’t do it, it must have happened on second shift.”
b) “I’ll find out who did it and fire the #^@%*$ !”
c) “I am so sorry, I’ll get it cleaned up immediately”
d) “It happens all the time, but it’s not a big problem.”
e) All of the above.
While I have heard all of these responses, in one form or another, many times before in my manufacturing experience, answer c is the most common response. Most employees will promptly get help to salvage the parts and clean up the mess as soon as possible. Once the mess gets straightened out, the problem is solved and we get back to manufacturing our products.
But was the problem really solved?
Well, that depends on your idea of the problem and your definition of solved. Yes, the mess was a problem and yes, the mess got cleaned up which is the proper initial action.
However, the true problem I discovered on my Gemba walk was not a damaged box in a warehouse. The true problem is that our response was only reactive and failed to include any real corrective or preventative actions not to mention failing to record the damaged box condition (for kaizen). We think that simply cleaning up the mess quickly and scraping out the parts is all that is needed. In effect, the problem of box damage remains hidden.
We did not ask the 5 Whys. We did not list the broken box on a kaizen newspaper. We did not look for other damaged conditions in the warehouse. We did not change a single process. There was no kaizen so we are doomed to repeat this cycle another day, over and over again.
How would employees in your company respond? Are you doomed to repeat the same cycle?
Tuesday, June 05, 2007
Handoffs

Look at handoffs in your process for waste and hidden opportunities for improvement. Most obvious of these wastes are piles of inventory easily seen just waiting their turn to move through the value stream. Handoffs can be found in the “IN” box at various desks around the office. Handoffs can be found waiting on an approval or sign-off. You can see handoffs at tollgates like receiving, inspection, packing, or shipping. Look closely between functional responsibilities (ie production, quality, purchasing, engineering, etc.) within a value stream, many times different functions have different or conflicting priorities.
Look at the value added work but focus on the activity (or non-activity if slow moving) in front of the work and what happens directly after the value added work.
Does work flow First In, First Out? What are the signals to move work? How do you handoff (the sender’s actions and the receiver’s actions)? Is there a middleman involved? Where does it go, exactly? How does the next person/process in line want it presented? What is the distance traveled? What problems occur at the handoff? Are you pushing or pulling? Do you control the amount of inventory in the gap (Standard WIP)? How does each person in the process communicate to one another? Do you measure or practice your handoffs?
Just like a relay team, the race can be won or lost in the handoff of the baton.
Look at the value added work but focus on the activity (or non-activity if slow moving) in front of the work and what happens directly after the value added work.
Does work flow First In, First Out? What are the signals to move work? How do you handoff (the sender’s actions and the receiver’s actions)? Is there a middleman involved? Where does it go, exactly? How does the next person/process in line want it presented? What is the distance traveled? What problems occur at the handoff? Are you pushing or pulling? Do you control the amount of inventory in the gap (Standard WIP)? How does each person in the process communicate to one another? Do you measure or practice your handoffs?
Just like a relay team, the race can be won or lost in the handoff of the baton.
Monday, June 04, 2007
Don't Unload Luggage
While on the road last week, I discovered a cool visual management aid at the Holiday Inn Express in Dundee, Michigan. It certainly catches the eye and helps inform guests to check in first to see if their room is in the next building before unloading luggage. Why can't signs in manufacturing be effective and fun like this one?
Wednesday, May 23, 2007
Lost in Translation
No matter how well you plan, prepare and perform, sometimes things just happen that you do not expect. Sometimes these things are painful and sometimes they are magical. And sometimes, things just get lost in translation. Kaizen events are certainly a great playground for the unexpected. More times than not, the priceless moments on a lean journey for me originate on kaizen events.
Last week, I led an office kaizen event focused on a key customer related process that proved to be a great challenge to improve. The team was diverse in both functional responsibility and heritage. We had one team member from the Ukraine, another from Columbia and one from the Philippines. It turns out to be a great mix of talent and only one member had any previous kaizen event experience.
The first morning we drill through some lean basics to introduce the kaizen approach. We cover a fair bit of information which included seeing muda (waste) to eliminate it. Of course, I stressed that the true learning will be at gemba (the actual place) with discovery and learn-by-doing.
At first, the kaizen team members were a bit on the shy side but by the end of the morning, they were a quite lively group. I love the raw energy that a kaizen event stirs deep within us, along with large bits of anticipation and nervousness. By far, the best feeling is the huge rush of “anything is possible” as the team embarks.
This entire team was extremely eager to start. I ended the morning session and asked if they had any more questions at this point and if they understood the next steps. After a few questions, I asked again, “Where are we going and what are we looking for?” One team member yelled back with high energy and in complete sincerity, “We are going the gumbo and we looking for Buddha!” A hush of silence. Then everyone burst out in laughter. It was a priceless moment. After wiping the tears from my eyes, the translation confusion was politely straightened out.
By no means is this story meant to offend anyone of the Buddhist faith or to make light of religion. To be perfectly clear, lean principles are not focused on looking for Buddha in our process and eliminating it. It is muda we want to eliminate.
Upon reflection on this event, maybe we are looking for Buddha after all; only in the sense that Buddha can refer to “anyone who becomes enlightened”. Isn’t the best place for enlightenment of our process found in gemba? Are we not seeking understanding before we can improve?
Epilogue: This team worked fantastic together during the rest of the week long kaizen event with over 13 aha moments. They reduced the process lead time 70% by Friday without open kaizen homework lists. Even with this huge reduction, the team sees more room for improvement which will continue the kaizen process.
Last week, I led an office kaizen event focused on a key customer related process that proved to be a great challenge to improve. The team was diverse in both functional responsibility and heritage. We had one team member from the Ukraine, another from Columbia and one from the Philippines. It turns out to be a great mix of talent and only one member had any previous kaizen event experience.
The first morning we drill through some lean basics to introduce the kaizen approach. We cover a fair bit of information which included seeing muda (waste) to eliminate it. Of course, I stressed that the true learning will be at gemba (the actual place) with discovery and learn-by-doing.
At first, the kaizen team members were a bit on the shy side but by the end of the morning, they were a quite lively group. I love the raw energy that a kaizen event stirs deep within us, along with large bits of anticipation and nervousness. By far, the best feeling is the huge rush of “anything is possible” as the team embarks.
This entire team was extremely eager to start. I ended the morning session and asked if they had any more questions at this point and if they understood the next steps. After a few questions, I asked again, “Where are we going and what are we looking for?” One team member yelled back with high energy and in complete sincerity, “We are going the gumbo and we looking for Buddha!” A hush of silence. Then everyone burst out in laughter. It was a priceless moment. After wiping the tears from my eyes, the translation confusion was politely straightened out.
By no means is this story meant to offend anyone of the Buddhist faith or to make light of religion. To be perfectly clear, lean principles are not focused on looking for Buddha in our process and eliminating it. It is muda we want to eliminate.
Upon reflection on this event, maybe we are looking for Buddha after all; only in the sense that Buddha can refer to “anyone who becomes enlightened”. Isn’t the best place for enlightenment of our process found in gemba? Are we not seeking understanding before we can improve?
Epilogue: This team worked fantastic together during the rest of the week long kaizen event with over 13 aha moments. They reduced the process lead time 70% by Friday without open kaizen homework lists. Even with this huge reduction, the team sees more room for improvement which will continue the kaizen process.
Tuesday, May 22, 2007
Lean Grade Inflation
Past headlines have brought to light a suspected phenomenon in our High Schools and Colleges in the United States where it is believed that the grading is too easy resulting in grade inflation. As a results, a higher percentage of students graduate with honors. Just having more honor students is not a cause for alarm but the implication that students are not grasping the subjects yet are giving passing grades is a cause for concern. It is also a great concern that our students may not be fully prepared to meet the challenges to compete in a global economy. From my recent experiences, this same phenomenon is evident in lean transformations.
Several facilities that I have worked on lean implementation along with many visits to numerous plants across the country this past year seem to all have the same grade inflation. For example, the scores for zone areas in 5S are all rated high regardless of what scale system is used yet when I take a gemba walk through the same area, the area is NG (translated as No Good). Could it be an issue calibration of different auditors? Sure. Could it be that waste or problems are not seen? Absolutely. Is it possible that we think something is good enough and not seek the more difficult path to perfection? Yes.
The same could be seen in lean assessments, judging our leanness on a scale. What or who determines the correct measure of leanness? This adds a whole new avenue for debate on if we are lean, lame, limp or lost. (LAME – Lean As Misguidedly Executed as coined by Mark Graban at Lean Blog) (adding to the list: LIMP – Lean, It’s a Manufacturing Program and LOST – Lean, Only Sees Tools).
It is said that “you can’t improve what you can’t measure” which is only true if you create a reliable and consistent measurement system. With grade inflation, I suspect that our measurement system is both unreliable and inconsistent.
In addition, the grade inflation phenomenon occurs in self evaluations and survey data. That is one reason that I tend to take all survey data with a grain of salt. Our self image is usually thought to be greater than what is seen by others. We tend to grade ourselves too high. Just as in the case of school grades, it is not really an issue of high scores as much as it is in grasping the subject or ability to compete. With higher scores we convince ourselves that we are not really that bad. We become comfortable and secure in the higher scores and everyone feels better. In reality, we miss the point.
On a lean journey, we should never be satisfied, never become comfortable, and never feel secure in the status quo. The grade matters less than gaining understanding and the constant effort to improve forever.
Several facilities that I have worked on lean implementation along with many visits to numerous plants across the country this past year seem to all have the same grade inflation. For example, the scores for zone areas in 5S are all rated high regardless of what scale system is used yet when I take a gemba walk through the same area, the area is NG (translated as No Good). Could it be an issue calibration of different auditors? Sure. Could it be that waste or problems are not seen? Absolutely. Is it possible that we think something is good enough and not seek the more difficult path to perfection? Yes.
The same could be seen in lean assessments, judging our leanness on a scale. What or who determines the correct measure of leanness? This adds a whole new avenue for debate on if we are lean, lame, limp or lost. (LAME – Lean As Misguidedly Executed as coined by Mark Graban at Lean Blog) (adding to the list: LIMP – Lean, It’s a Manufacturing Program and LOST – Lean, Only Sees Tools).
It is said that “you can’t improve what you can’t measure” which is only true if you create a reliable and consistent measurement system. With grade inflation, I suspect that our measurement system is both unreliable and inconsistent.
In addition, the grade inflation phenomenon occurs in self evaluations and survey data. That is one reason that I tend to take all survey data with a grain of salt. Our self image is usually thought to be greater than what is seen by others. We tend to grade ourselves too high. Just as in the case of school grades, it is not really an issue of high scores as much as it is in grasping the subject or ability to compete. With higher scores we convince ourselves that we are not really that bad. We become comfortable and secure in the higher scores and everyone feels better. In reality, we miss the point.
On a lean journey, we should never be satisfied, never become comfortable, and never feel secure in the status quo. The grade matters less than gaining understanding and the constant effort to improve forever.
CANDEW Cycle
The kaizen formula of Aha! + Eureka! =Wow! is just part of larger pattern, or a continuous improvement cycle, discovered on my lean improvement journey. At least this holds true from my lean journey experience. It’s the Confused-Aha-Nirvana-Darn-Eureka-Wow Cycle, or otherwise known in the back hills as the CANDEW cycle for short. It appears that we, both as an individual or as a team, pass through these varies stages before achieving actual improvement.
Stage 1: Confused
The confused stage is the beginning point of all continuous improvement where we are actually lost, clueless, and oblivious to the current state. We may think we know the facts but in reality we are blinded by assumption, opinion and arrogance. As we humbly open our eyes and minds by going to gemba, listening to our employees and using data, we start down the path of discovery.
Stage 2: Aha
Eventually, our path of discovery leads to Aha moments. Aha moments are where we see the light, everything clicks and we become one with our current state. We reach a point of genuine understanding. What was once hidden is now in plain sight. Often times, we wonder why we never saw it before now. This Aha Moment could be the view of whole picture or just an element of the current state. In either case, it is found most often in the seams or gaps of the process or between the traditional function silos of a business.
Stage 3 Nirvana
The Aha moment creates the flash of an idea, a vision of paradise or heaven as we clearly see what is possible and how to make it better. This vision is nirvana. A rush of excitement takes over our entire being and it is possible to actually jump for joy. Care must be taken to hold on to this fragile idea for this stage of nirvana is short lived. We will be challenged in the next stage of Darn where our idea or visions of paradise can quickly turn into just an illusion or fantasy.
Stage 4: Darn
The Darn stage is where we stumble and make mistakes. After walking blindly for so long in the Confused Stage, and finally seeing the light in the Aha Stage, we naturally try to run as fast as possible to the light. Since we are not used to running to the light, we can easily fall. In fact, it is not unusual to fall several times in the Darn Stage which makes this the most critical stage. Failure is often a result in the Darn stage and rarely do things go according to original plans. It is at this point most people give up and even question their Aha Moment and Nirvana vision as a neurotic mind trick. In the Darn Stage we may face many difficulties, road blocks and barriers in our path. It takes persistence to continue on the path.
Stage 5: Eureka
As we navigate through the treacherous Darn Stage, we will find it. It being the solution, the way to make our idea work. We find success.
Stage 6: Wow
The Wow stage is where we reflect on our success and share our joy. We share so others may learn and join us on our path of continuous improvement. Many times we discover the total impact of our Eureka moment at this stage. In the Wow stage, we reap the reward of our efforts.
Just as I stated at the beginning, this process is a cycle. If we stay too long in the Wow stage, we quickly find ourselves in the dark again. Everything changes so we must constantly seek improvement. The path of continuous improvement promises no certainty but only opportunity.
Stage 1: Confused
The confused stage is the beginning point of all continuous improvement where we are actually lost, clueless, and oblivious to the current state. We may think we know the facts but in reality we are blinded by assumption, opinion and arrogance. As we humbly open our eyes and minds by going to gemba, listening to our employees and using data, we start down the path of discovery.
Stage 2: Aha
Eventually, our path of discovery leads to Aha moments. Aha moments are where we see the light, everything clicks and we become one with our current state. We reach a point of genuine understanding. What was once hidden is now in plain sight. Often times, we wonder why we never saw it before now. This Aha Moment could be the view of whole picture or just an element of the current state. In either case, it is found most often in the seams or gaps of the process or between the traditional function silos of a business.
Stage 3 Nirvana
The Aha moment creates the flash of an idea, a vision of paradise or heaven as we clearly see what is possible and how to make it better. This vision is nirvana. A rush of excitement takes over our entire being and it is possible to actually jump for joy. Care must be taken to hold on to this fragile idea for this stage of nirvana is short lived. We will be challenged in the next stage of Darn where our idea or visions of paradise can quickly turn into just an illusion or fantasy.
Stage 4: Darn
The Darn stage is where we stumble and make mistakes. After walking blindly for so long in the Confused Stage, and finally seeing the light in the Aha Stage, we naturally try to run as fast as possible to the light. Since we are not used to running to the light, we can easily fall. In fact, it is not unusual to fall several times in the Darn Stage which makes this the most critical stage. Failure is often a result in the Darn stage and rarely do things go according to original plans. It is at this point most people give up and even question their Aha Moment and Nirvana vision as a neurotic mind trick. In the Darn Stage we may face many difficulties, road blocks and barriers in our path. It takes persistence to continue on the path.
Stage 5: Eureka
As we navigate through the treacherous Darn Stage, we will find it. It being the solution, the way to make our idea work. We find success.
Stage 6: Wow
The Wow stage is where we reflect on our success and share our joy. We share so others may learn and join us on our path of continuous improvement. Many times we discover the total impact of our Eureka moment at this stage. In the Wow stage, we reap the reward of our efforts.
Just as I stated at the beginning, this process is a cycle. If we stay too long in the Wow stage, we quickly find ourselves in the dark again. Everything changes so we must constantly seek improvement. The path of continuous improvement promises no certainty but only opportunity.
Thursday, May 17, 2007
Contempt for 5S
There seems to be a swell of support against 5S activities which is certainly not a new phenomenon. The backlash against any attempts to organize areas like a person’s desk or workstation can be powerful, passionate and personal. This 5S backlash easily grows into contempt as we hear about extreme examples of 5S-Gone-Wild. This includes stories of companies that place footprints on desks for everything (computer, keyboards, phones, papers, etc) without regard of actual benefit, stupid rules that limit the number of personal items on a desk to an arbitrary number like 3, or label crazy consultants that have us labeling every possible object on site under the principle of visual management like in this Far Side Cartoon.

With the release of the new book, “A Perfect Mess: The Hidden Benefits of Disorder-How Crammed Closets, Cluttered Offices, and On-The-Fly Planning Make the World a Better Place” written by Eric Abrahamson and David H, Freeman, many supporters of the messy desk lifestyle are united against any and all actions to “fix” what they believe is not broken.
Maybe guilt over not being better organized is a factor that causes people to rationalize the mess and clutter. As pointed out in Mark Graban’s post Not Neatness for Neatness Sake at Lean Blog, it seems that the authors of the book are glorifying messiness.
To get a better insight to their supportive argument that messy is better, read Tom Peter’s Cool Friends interview with David Freeman about his findings. I find it curious that many of the findings in support of disorder are based on surveys which I tend believe are not all together scientific and most likely bias. I do admit that I have not read this book or verified the details on his research so I only present my opinion on the use of survey data as fact.
Take for instant Mr. Freeman’s theory that “People who keep messy desks actually spend less time looking for things then people with neat desks”. And what is the scientific proof cited by the author that supports his theory, “We did a survey for the book that backed this up” along with his comment, “Common sense backs this up.” For me, common sense tells me the direct opposite. I guess even what is considered common sense is up for debate.
My thoughts are that organization and 5S principles are critical to continuous improvement success. As I have learned on my lean journey, we should question all assumptions and actions to eliminate waste. Even activities thought to be lean requirements like 5S should be constantly monitored like any other process for the value of performing the activity. Remember, any activity that adds cost or time without adding value as defined by the paying customer is waste.

With the release of the new book, “A Perfect Mess: The Hidden Benefits of Disorder-How Crammed Closets, Cluttered Offices, and On-The-Fly Planning Make the World a Better Place” written by Eric Abrahamson and David H, Freeman, many supporters of the messy desk lifestyle are united against any and all actions to “fix” what they believe is not broken.
Maybe guilt over not being better organized is a factor that causes people to rationalize the mess and clutter. As pointed out in Mark Graban’s post Not Neatness for Neatness Sake at Lean Blog, it seems that the authors of the book are glorifying messiness.
To get a better insight to their supportive argument that messy is better, read Tom Peter’s Cool Friends interview with David Freeman about his findings. I find it curious that many of the findings in support of disorder are based on surveys which I tend believe are not all together scientific and most likely bias. I do admit that I have not read this book or verified the details on his research so I only present my opinion on the use of survey data as fact.
Take for instant Mr. Freeman’s theory that “People who keep messy desks actually spend less time looking for things then people with neat desks”. And what is the scientific proof cited by the author that supports his theory, “We did a survey for the book that backed this up” along with his comment, “Common sense backs this up.” For me, common sense tells me the direct opposite. I guess even what is considered common sense is up for debate.
My thoughts are that organization and 5S principles are critical to continuous improvement success. As I have learned on my lean journey, we should question all assumptions and actions to eliminate waste. Even activities thought to be lean requirements like 5S should be constantly monitored like any other process for the value of performing the activity. Remember, any activity that adds cost or time without adding value as defined by the paying customer is waste.
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