Is Social Media the Next Lean Tool?

This year, facebook reports membership at more than 500 million active users with over 50% active each day and more than 30 billion pieces of contact shared each month. This would make facebook the 3rd largest nation in the world behind China and India, easily exceeding the US population.

Twitter seems to be the dominate microbloging player with 75 million estimated users although the numbers are not confirmed. We have LinkedIn, Blogs, YouTube, iPhone Apps just to mention other popular communication tools.

With the growing popularity with these forms of social media and the vast number of communication offerings, can they be used to improve how we conduct business or more specifically, can they be used in a lean transformation?

This is just one of the experiments that Xerox is trying in their Lean Six Sigma initiative according to Aqua Porter, VP corporate Lean Six Sigma Operations in her presentation today in the Lean Manufacturing Track at Noria’s Reliable Plant Conference 2010.

This is not the case of a hammer looking for a nail. No, it is simply a method to bridge poor communication. This includes slow communication, lack of sharing best practices, lack of interactive communication, etc. It is viewed as the way to improve customer dialogue as well as internal communication, both vertically and horizontally within the company.

One application in particular under test at Xerox is the use internal microbloging tool Yammer. Yammer describes their platform as "a tool for allowing companies and organizations to become more productive through the exchange of short frequent messages. The standard Twitter question is "What are you doing?", whereas with Yammer you answer the question "What are you working on?'".



Since this is still a new tool to their Lean Six Sigma approach, the results are still pending. I applaud Xerox for their boldness and open-mindedness to experiment with social media.

Despite the overall popularity of social media and unlike Xerox, the typical corporate viewpoint on social media is not one I would consider “embracing with open arms”. In my experience, the typical corporate viewpoint on social media is based on fear, control and legal protection. It is not viewed as a positive tool and certainly not something to be done “while on the clock”. Does this closed-minded view limit us in tapping into the power of social media might offer?

What do you think? Is your company embracing social media? Does social media mix with the lean journey?

Spare Parts

What do you see in this picture? Beside a lack of any real 5S, what thoughts come to your kaizen mind about the motors?

Perhaps you may think about what are the motors used for? Do we really need them? Are they critical? How fast can we get one if we needed it? What is our process to decide what parts to keep in stock? Or how much do they cost?

One of the elements of a solid Total Productive Maintenance (TPM) program that does not get much attention is our spare parts. By simply taking good care of our machines and equipment does not entirely eliminate the chance of them breaking down. When that happens, the fire drill begins.

Go to any Maintenance Department in any company in the country and you find many things in common like a storage area for supplies and parts. Since this is typically viewed as a non-production area, we tend to ignore it.

With a kaizen approach, we need to improve all areas of our company including spare parts. With good TPM program, we should develop standard processes that establish the method to what parts we keep on hand.

First, a team based approach is best used to identify the critical parts that we may need. We can use the recommended spare parts list by the manufacture but only as a starting point. Many times this list of parts can include more parts than we should keep. Look at the machine history but also take care not to include a part just because we got burned back in 1982 when it broke down for 6 months.

As a guideline, critical parts can be identified as recent chronic problem areas and difficult to obtain within 24-48 hours. Cost should NOT be a factor. If the chance of a problem is high and we are left waiting days or weeks for the parts to come in, it’s better to keep these parts on hand no matter what the part cost is. Compare it to lost business, customer disappointments, etc to factor in the decision. Discuss this with your team and company management to determine what makes the best sense in your situation.

Once we have a plan, set up a spare parts list by each pieces of equipment and clearly identify them in our stock area.

As all things in lean, this is not a static process, it’s dynamic. The spare parts list needs to be reviewed on a regular basis, perhaps once a year. Machines fall out of warrantee or the manufacturer not long supports this model in either service or parts.

Without a standard process for our spare parts, we may find parts on the shelves like the picture above.

In Defense of Kaizen Events

Over the past several years, I have encountered a growing negative view towards kaizen events, continuous improvement events, rapid improvement events, kaizen blitz or any other name we assign to a typical week long, team based improvement activity. I have been told by one company executive “That kaizen events are too expensive and the results are not sustainable.” I have heard from many different people that “Kaizen events are just a way for consultants to make quick and easy money.” The negative comments go on as one senior company executive told me that “Kaizen events are a sign of immaturity on the lean journey.”

In reflection, all these comments about kaizen events may indeed be true depending on the circumstances. I have seen kaizen events which are expensive along with a high amount of backsliding from the initial results. Certainly, there are many lean consultants and practitioners out there that use kaizen events as their primary (only) method of getting process improvements. But the comment that had the most impact to me was the last one, kaizen events are a sign of immaturity.

As an infant straight from the womb, our single source of nourishment was milk. In the beginning, that is all we need and the only thing we could digest. Eagerly, we suckle the warm milk and we begin to grow. As our bodies grow and mature, we soon need more than just milk. Our diet starts to change. First we move to soft foods which satisfy our new needs. After a short time, our development continues and we have greater needs. Slowly we add solid food. Before we know it, we have a complete diet.

Much like milk, kaizen events are the sole source of our nourishment as begin our lean journey. It is all we need and we are not ready to consume anything else. The main purpose of a kaizen event is to grow and develop people. To help us practice observing, solving problems and experimenting in a high energy, fast paced environment. Events are great team building experiences. Kaizen events should engage people to improve, a chance to experiment and fail, to learn from our mistakes and to hone our thinking skills. Ultimately, we begin owning the improvement process, growing and maturing as we add more to our lean diet.

If all we feed ourselves is milk, we will restrict our growth and development. As lean leaders, if all we teach others is to warm milk, what results would you expect? The key is add to our diet as we need it and can digest it; going from milk directly to solid food will not work and may cause harm. Adding to our diet as we grow and mature does not mean that we completely abandon drinking milk either as some may suggest. The nourishment found in milk does not change.

Motor Intake TPM

Here is a simple kaizen for motors which can be part of our Total Productive Maintenance (TPM) program.

1. Remove the motor intake cover over the fan.
2. Clean and repair fan as needed.
3. Re-attach cover and place filter over vent area.
4. Add motor inspection and filter replacement to operator checklist.

It does not take much dirt to collect in the fan to restrict airflow which causes the motor to run at higher temperatures and leads to premature failure.

Which is easier, better, faster and cheaper: Replace a filter or replace a motor?

Beer Kaizen

If you like the Toast Kaizen Video like I do, here is a funny parody video called "Beer Kaizen" done by KCOE. Laugh and Enjoy!

New Lean Blog 2LP

I stumbled across a relatively new lean blog called 2 Lean Principals or 2LP for short. It features lean thinking from Jason Ballard and Tom Riney. Welcome to the lean blogging world, Jason and Tom. I hope to learn much from the both of you.

Kaizen using Tennis Balls

Here is a great “creativity before capital” idea using tennis balls. I have actually seen this used with excellent results in a plant lunchroom. Put tennis balls on the legs of the chairs.

Without this tennis ball protection, the chairs can mark up the floor as it slides around resulting in extra work to clean the floor. In addition, the noise level of chairs screeching across the floor is disturbing to the nearby office and training room. The tennis balls act as sound deadening devices. To some this may not appear too stylist however it is an inexpensive solution that is easy to do! What do you think?

For more tennis ball ideas, check out a post from the past by Jon Miller, A few more kaizen ideas involving tennis balls.

Toxic Employees

Over my career, I have run across “difficult” people. These include no particular group; they have been bosses, co-workers, employees, team members, rank-and-file, clients, suppliers and customers. Most cases, these difficulties are overcome through improved communication and team building behaviors. In the cases that are not so easily improved, I typically find a “toxic” employee.

What I mean by toxic employee is one with a negative attitude and makes it part of their mission in life to drag everyone around them down to their dark side view of the world. They are the hard core, concrete heads that fight all improvement efforts. They seem to always have a sarcastic comment about every topic and management decision. If things go their way, all is good but stand back if things go counter to their liking. They could be openly negative or take little shots from a distance. They sap the energy and life force from everyone around. In general, most people don’t like to work near them.

What do you do in a situation like this?

But what if this employee is a rock star salesperson or contributor but has the bad attitude? Do you put up with the attitude issue for the great performance?

Does performance override character? Or do we want performance and character?

What if this person when confronted, justifies their behavior with “it’s the truth and I’m the only one with the guts to speak out”? What if this person is a top executive with political ties to the company President yet others below feel the pain?

What if this person is not an employee but a customer?

Is it following our “respect to people principle” by not addressing this person’s behavior?

Do you have toxic employees in your organization?

Back from my Summer Break

As you may have noticed or perhaps not, my posting has been non-existent for the past couple of months. No worries, just focusing on my clients, traveling and taking a little family summer vacation hiking in the Great Smoky Mountains National Park to recharge. New and exciting posts about my lean learning will follow. The mountain water was extremely cool on a hot, humid summer day!

The Surprising Truth about what Motivates Us

Here is an amazing presentation by RSA animate with a talk by Dan Pink on what motivates us. Great information. Enjoy and learn.

Tear Down This Wall

“The Air Conditioners versus Non-Air Conditioners”, this is how one employee explained it to me today, from his eyes on the shop floor, of the great wall that still exists between management and shop floor operators. This wall that can feel as vast as the Great Wall and as high as Mount Everest remains one of the most difficult and lasting challenges in our quest for productivity.

Salary versus Hourly.

Management versus Shop Floor.

Management versus Union.

The list of labels that designated each side of the wall goes on and on.

From my first days on the management side of the wall in the early 1980’s, many of the ways we treated each side differently, easily seen by the perks like reserved parking lots, separate dining facilities, country club memberships, huge bonus and stock options etc, have long gone the way of the dinosaur. Well, at least some of them have disappeared. This has certainly been a positive step to bring down the wall but we still have a long, long way to go.

Don’t be fooled into thinking that this is not a big problem today. This wall still very much exists and continues to divide us. Just as we must see the waste before we can eliminate it, we must acknowledge this great divide before we can eliminate it.

If I knew the answer to this problem, I probably could go to sleep tonight a very wealthy man. Like many of the problems we face, there are no easy, quick fixes. It will take focus, a willingness to solve the problem along of plenty of hard work. Building trust and true culture change takes time.

As company leaders, do we put the same passion and drive into tearing down this wall as we have for cutting costs?

Altering slightly the words of President Regan in his famous Berlin Wall Speech, June 1987:
“If you seek profits, if you seek prosperity for the company and all the stakeholders, if you seek productivity: Come here, to this gate. Mr. CEO, open this gate. Mr. CEO, tear down this wall.”

Northeast Shingo Prize Conference 2010

The Northeast Shingo Prize Conference will be held in Providence, Rhode Island on October 19-20, 2010. This is another conference I will be attending this year and thrilled to be invited as one of the speakers. Please stop by if you are attending.

Reliable Plant Conference 2010

The Reliable Plant Conference 2010 will be held in Nashville, Tennessee on August 31 thru September 2nd. I plan on attending and honored to be included as one of the speakers in the Lean Manufacturing section talking about my favorite topic SMED. If you are able to attend, I would enjoy meeting with any fellow lean practitioners.

Show Me the Results

One cultural aspect of American business that is both a driving force and a curse is our obsession with getting results. It does not matter if we are looking at company performance or individual performance. It does not matter if we are looking at strategy, marketing, sales, manufacturing, or finance. Neither does it matter if we look at our lean progress or any other business approach, our business metrics or our stock performance. Bottom line, everything and everyone is rated and evaluated on results and only on results.

Just as in sports, all the matters is the final score, who won. What do we see in the majority of sports headlines…who won, who lost and the score.

For most of us, this is just a fact of life, a given, part of our competitive nature, our culture. I can not argue against results entirely, results are important.

Sometime we can easily quantify the results making them objective. Sometime we can not. Results that are subjective are like beauty, it is in the eye of the beholder. Despite our efforts to make all results objective and quantifiable, in many cases, subjectivity remains.

Overlooking this problem, we obsess over results. What is our stock price? What were our quarterly financials? Did I hit my quota? What is our 5S audit score? What is our OEE? What is my direct labor costs? Was this project a success? What are each employee’s talent matrix rating? Just tell me the score.

But does this tell us the whole story? Are we focused long-term? Does it reflect the struggle? What about the knowledge gained? Does it matter? What impact will it have on our future? What was the cost of our success? Were there any negative consequences in getting our results? Do we care?

In our obsession with results, do we actually miss something, perhaps something greater?

How to Kaizen

It is not important to know “how to kaizen” as it is “to kaizen”. It does not matter so much if we start with 5S on our lean journey as it is to start our lean journey. It does not matter how to use each of the lean tools as it is to use the tools to solve our problems.

Kaizen is a messy, bumpy struggle to improve. However, it is in this struggle that we will learn and gain knowledge. This is the only knowledge that will truly help us succeed in lean.

Each of our lean transformations will be different. It will not be like it says in any one book or how some other company operates in their lean approach.

Do not wait for perfect kaizen rather just kaizen continuously. Results from any kaizen are secondary to the act of kaizen itself. The only failure in kaizen is to no longer kaizen.

There are no right and wrong ways to kaizen, only the way we kaizen and better ways. There is always a better way.

The Winning Poker Hand of Corporate Metrics

When we say company metrics, many of us quickly think of Cost, Quality, Safety, Delivery and Morale. All are important metrics for any company however we tend to view them differently. Specifically, we focus our time and attention to one or maybe two metrics while virtually ignoring the rest because some are valued higher.

The King of all metrics is Cost.
The Queen is Quality.
The Ace is Safety.
The Jack is Delivery.
And the lowly 10 card is Morale.

Many companies consider these to be the top company metrics. In my experience, the overwhelming majority of companies focus primarily on COST as THE key metric. How do I know?

Just look at your company’s key performance indicators (KPI).

How many ways is cost charted, measured and analyzed? Could it be…
Sales dollar per employee?
Sales dollar per Direct Labor Manhour?
Direct labor cost per department, per shift, per plant, per product, per on and on?
Overtime cost?
Piece part cost?
Purchasing variance?
Overhead cost?
Capital budget?
EBIT?
The list goes on and on.

The metric that the majority of companies focus the least amount of their attention is Delivery. How do I know?

How many ways is delivery charted, measured and analyzed? Could it be…
On-time Delivery?
And that’s about it.

Quality, safety and even morale have more than one KPI.

Similar to delivery, morale does not rank high on anybody’s list of metrics. Many of us may think morale is too vague, not quantifiable and too hard to measure much less have any control in improving it. So we tend to ignore it, unless it is close to contract time for those of us in union shops. Besides, we can still post stellar financial results with low morale.

In any management meeting when the company metrics are reviewed, how much time is spent discussing cost? How much time is spent discussing delivery? And when was the last time morale was even mentioned?

Quality and safety are somewhere in the middle and time spent on these metrics is directly proportional to the number of safety incidents or customer complaint issues of late. No issues, not much discussion. But when an incident occurs, the discussion time goes up.

As a lean thinker, how should our time be spent with regard to our metrics? In my opinion, we should spend the majority of our time on Delivery, Quality, Safety plus Morale and spend less time on Cost. If you think about it, improvements in delivery, quality and safety are process focused while Morale is a good indication of employee engagement (ie employee suggestions). Focusing on these areas will end up improving cost.

As for single delivery KPI of on-time delivery, this is the perhaps the easiest one to achieve in most cases…just increase our inventory level, right? But is this the best course of action? Is on-time delivery the only measurement we should concern ourselves with? What about leadtime?

How many companies focus on leadtime reduction? Now how many of us relentless pursue leadtime reduction with the same passion as we tend to do in cost reduction? In our kaizen, do we focus on eliminating waste to reduce costs or shorten leadtimes? Do we understand the difference?

If we focused the majority of our time and attention on cost, our King card, it would be like holding a handful of kings. The best poker hand we could hope for is a four of a kind. But if we aligned the whole organization to follow suit, holding each our metrics in our hand, we beat a four of a kind every time, royally.

Is U.S. Productivity at its Limit?

According to the USA Today, printed in the Friday, May 7th, 2010 edition, a glimmer of economic hope is seeming given with news of U.S. productivity and our job market. The slowing of U.S. productivity to a mere 3.6% annual rate in the first quarter and applications for unemployment dropping over the last three weeks led analysts to predict an increase in hiring as growth in production, the output per hour of work, is predicted to slow even more.

As quoted in this article, Nigel Gault of HIS Global Insight stated, “Companies are close to the limits of what they can do with their existing staff. They are going to have to start rehiring people.”

Hogwash! Not even close! Yet Mr. Gault's prediction may end up correct despite the flawed data, in my opinion.

Instead of looking at their spreadsheets and computer models, these analysts need to go to gemba to see for themselves. The only problem is that they probably don’t know what to look for if they did. From my gemba perspective, limited to the small sample size of companies I know about, U.S. manufacturing companies have only made a small dent in productivity. They same goes for our service industries or any other category for that matter.

There are still vast amounts of waste remaining in our processes if we only could see it.

So I believe that there are still enormous opportunities in the U.S. to substantially increase our productivity.

On the other hand, I see limitations in what companies are doing to improve and the rate of their improvement. The majority of companies in the U.S. are not relentless pursuing a path of waste elimination and continuous improvement. As demand picks up (not really noted in the predictive analysis), companies may in fact start rehiring.

Management Improvement Carnival #97

Got Boondoggle is proud to host this edition of the Management Improvement Carnival. Please check out the following top posts from follow lean thinkers in recent weeks. Enjoy and learn!

Don’t Do 5S by Jamie Flinchbaugh – “So make sure that using 5S, at any point in the journey, is solving actual problems that you currently have. Start with the problem statement, then pick the tool. Don’t start by picking the tool.”

The Will, the Willow and the Frog by Jon Miller – “There are many stories from many cultures that remind us that with faith and will, nothing is impossible. The irony is that if you don’t believe this, you will never find out whether it is true.”

Leadership: The Power of Influence by Tim McMahon – “The challenge is to get people to follow in a direction they might not otherwise go.”

Continuous Improvement by Lee Fried – “Thus, there is no way an organization can claim to be promoting continuous improvement through events or projects. It will only occur when improving the work is the work.”

Kaizen in the Laundry Room and My Domestic Shortcomings by Mark Hamel – “Kaizen opportunities are often best identified (and done) by those who do the work.”

Lean Thoughts During Saturday Errands by Mark Graban – “In the course of these errands, I had some thoughts about lean or related to it (or just fun thoughts, maybe), including: Why 100% utilization isn’t possible or optimal, Visual controls with moving tape and Good “flow” from a store to a dental practice office.”

Some Growth is not Visible by Pete Abilla – “When you think about it, that’s how a culture is created. Not through some big program, or some big push top-down. Instead, true, long-term cultural change happens over a long period through many, many, small micro-interactions.”

3 Tips for Continuous Improvement by Ron Pereira – “In this article, I want to share some ideas for how to approach things such as workout programs and continuous improvement as they are surprisingly similar.”

Toyota the Bad Guy by John Shook – “Even so, we must recognize that even at its peak as an organizational GPS, Toyota was never as good as its reputation in some ways, but better in others. Both at once.”

The Human in the Loop by Mark Rosenthal – “If we truly want to construct a work environment where people make the best possible decisions, it behooves us to rid ourselves of decades old stereotypes and convenient beliefs about why people decide what they do.”

The Secret to Successfully Running a Lean Office: Daily Management by Jeff Hajek – “Daily Management is a proactive, systematic approach to balancing capacity and expected demand. In a nutshell, it is a process for using Deming’s PDCA cycle to manage a workday.”

Should I Pursue Waste Elimination or Lead Time Reduction? by Michael Balle as the Gemba Coach – “To respond to your question directly; there is no debate: Kaizen without a pull system will be disappointing.”

Bagel with a side of Jidoka by Evan Durant – “And the more we explore the concept of Jidoka the more we are forced to challenge our assumptions about what exactly the human and machine elements are. Often there are untapped opportunities to separate the two.”

We can't Handle the Truth

In the movie, A Few Good Men, Jack Nicholson playing the role of a hard-core, old-school, tough-as-nails Marine Colonel delivers the famous line in a military court, “You can’t handle the truth” in answer to Tom Cruise’s cross examination demanding the truth about a code red.

This is a problem for many of us. We can’t handle the truth. Maybe our huge egos prevent us from seeing the truth. Perhaps it is rooted deep in our survival genes to protect us from harm both physical and non-physical. Maybe it is our arrogance from our over-the-top self-image or self-importance. Whatever the reason, we can’t handle the truth if it is not in alignment with our thinking.

We all believe in truth however the truth is not always easily believed. What blinds us from seeing the truth? What in our minds automatically blocks us from seeing the truth? Why do we not want to believe the truth? How do our perceptions create different lenses in seeing the truth?

According to Jon Miller in How to scold like a Kaizen Sensei, the role of the Sensei is “to speak truth to power in ways that a member of the organization could not.” This honest, insightful and raw truth telling skill has very powerful results depending on the delivery by the sensei and the reaction of the learner. Regardless if you are an outside consultant or inside the company, there is a risk in truth telling.

It is easy to see why this truth telling skill does not work coming from within an organization. Unfortunately, the proverbial “kill the messenger” is alive and well in American business. People who speak the truth are often labeled as a non-team player, a disrupter, a trouble maker or the current tag of being “not a good fit”. End result the person either quits or is fired.

Have you ever compromised the truth to keep your job? What about keeping silent? How does your company leadership handle the truth? How do you handle the truth?

It doesn’t take much to see that the truth can get watered down, altered or hidden entirely inside a company, especially as it moves vertically up the ladder. We may believe, at least in the short term, that this is the best way considering the risk, political correctness and social politeness but at what cost? In the long term, is the cost greater? Doesn’t this render our problem solving capabilities as impotent? Isn’t our continuous improvement quest towards perfection halted without seeing the truth?

“New knowledge is the most valuable commodity on earth. The more truth we have to work with, the richer we become.” Kurt Vonnegut, Breakfast of Champions

Management Magical Mystery Tour

I strongly believe that one of the keys to a successful lean transformation is management involvement, not just management support. Involvement means full contact, hands-on, go and see for yourself approach. Involvement means leadership. That means more time away from the comfort of your desk and spending this time on the shop floor, in the office areas, in the warehouse, or going to customer sites.

Company executives have gotten so comfortable with seeing their company through the lenses of reports, emails, charts, graphs, boardroom meetings or what their staff tells them that many never venture out for a first hand experience. Charts and graphs are fine tools however I would prefer to know about my operation by experience. Which gives you a better understanding of Hawaii – a) reading travel brochure, looking at pictures and hearing stories by people who went there or b) by your own travel adventure walking on the warm sands of Maui, taking in a deep breathe of ocean air and seeing the waves crashing onto the shore?

Unfortunately, we get distorted glimpses of C-Level executives going “undercover” in TV shows to see first hand what is going on in their company as some great revelation. Kevin Meyer has a great post, MBWA is not a Gemba Walk, that I tend to agree with.

Closer to reality is the planned visit by the high level leader to a site which turns into huge parade of leaders trying to look their best, normally part of a Management Magical Mystery Tour. It’s just like if you invited your priest or pastor over for dinner, you get your house all cleaned up and a special meal is planned and prepared (not a typical night at home, right?).

The plant is notified well in advance so the facility is cleaned up (even to the extent of hiding stuff out of view until after the show) along a pre-determined tour route. Everybody practices and rehearses their lines for the presentation. The smell of fresh paint is hanging in the air. We are ready. Places everyone.

The show usually starts in a conference room with a presentation by the plant staff. If the plant manager is cunning, he will give the executive time to pass on some words of wisdom which can easily take up some of the time for the planned tour. At best, the tour will be rushed which minimizes the chance for problems to surface. It is even possible that the tour is canceled because the meeting, which there was great discussion, took all the time allocated for the visit. Then the C-Level and his entourage travel to the next site.

The only thing missing is the official tour t-shirts. What a wasted opportunity.

How can we get out of this management magical mystery tour routine. First, the C-level executives should visit so often that the event is not special. Second, a visit should not always be a planned event that prompts a show and tell. Third, the C-level executives should not make it a visit to punish but a visit to learn, teach and mentor. Fourth, visit with a purpose and not make it a social hour. It’s nice to talk with people but don’t let that become the mission. If a problem is found, help by coaching and not seeking to blame someone. This would be a good start.

A true lean transformation changes the way the entire business operates from sales to the shop floor. This requires a hands-on, personal approach that cannot be delegated to staff or outside consultants. It is a new way to run the business that requires behavior changes. It is not a project or event. It demands leadership based on first hand experience and it must start at the top.