Curious Cat Management Improvement Blog: Deming, lean thinking, innovation, customer focus, continual improvement, six sigma.
August 31, 2005

What Kind of Management Does This?


Already Mired in Sales Slump, Gap Closes Two Most Popular Internet Stores

Both Gap.com and OldNavy.com have been closed for the past week, driving frustrated shoppers like Kira Storch of San Francisco to other Web sites to buy clothes.

Hoping to minimize the customer inconvenience, Gap waited until after most back-to-school shopping had been finished before launching a “soup-to-nuts” overhaul of its major e-commerce sites, said company spokeswoman Kris Marubio. She said the changes were too complex to enable the site to continue running.

What? What? Ok, I don’t know what they have to deal with but still this strikes me as crazy. It baffles me that they think it is acceptable to go offline for days to make a change, even a major one.

Deming and the New York Times

Steve Brant, in All The News That’s FIT To Print, mentions that the New York Times applied some of Deming’s ideas in the past. He also links to several articles that mention those attempts.

One article is from the The New Yorker by Ken Auletta, 1993: Opening Up The Times:

Sulzberger [the Times' publisher] has prescribed the management theories of Dr. W. Edwards Deming, a professor emeritus at New York University and a business philosopher whose theories helped revitalize Japanese industry after the Second World War. Sulzberger and a team of Times managers studied Deming’s theories during four days of seminars in Washington in 1990.
August 30, 2005

Statistical Consulting

In the current issue of AMSTAT News (American Satistical Association) the President’s letter is focused on Statistical Consulting and W. Edwards Deming. He makes a good point, echoing those others have been making for quite some time:

More and more, we need to define ourselves, perhaps as an internal consultant, by striking out on our own. That self-defined role is a lot more challenging, risky, and fun, too!

ASA bio of Deming - Curious Cat biography of Deming

The Curious Cat Management Improvement library offers the following articles related to Statistical Consulting:
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Critical Chain, TOC Email List

Email lists have been going out of style, but they can be a useful way to interact with a shared community (when moderated properly). The Theory of Constraints (TOC) email list (Yahoo group) CriticalChain, is useful for those interested in TOC concepts.

This list is for those who are interested in project management via Critical Chain Scheduling and Buffer Management, as well as the application of other aspects of the Theory of Constraints to project management.

The target audience for this discussion list is broad, consisting of:

Those who are experienced with Critical Chain (either by living with it or by helping others implement it),

Those who are attempting to implement Critical Chain in their project(s),

Those who are curious about Critical Chain and the implications it could have for their project environment

and . . .

Those who have heard about Critical Chain and think that it is either misguided or that there is nothing really new about it, but are willing to discuss it with an open mind. It’s this last target group that can add real spice to the discussion. (After all, as Eli Goldratt has said, “The strongest force FOR improvement is resistance to change.”)

Another good email list is the Deming Electronic Network list.

August 29, 2005

Deming on Management

Topic: Management Improvement

I have added a new section to Curious Cat Management Improvement Connections titled: Deming on Management.

W. Edwards Deming’s management ideas have greatly influenced modern management practice. Many quotes and thoughts are attributed to him. Sometimes these represent his ideas accurately, and sometimes they do not. In the Deming on Management section, I attempt to clearly indicate what he actual said and include some of my thoughts on the topic.

For example, Dr. Deming is often incorrectly quoted as saying: “you can’t manage what you can’t measure.” In fact, he stated one of the seven deadly diseases of management was running a company on visible figures alone.
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Lean Manufacturing at Castcon-Stone

Lean manufacturing transforms operations at Saxonburg company:

Kerckhoff said redoing certain portions of products accounted for about 12 percent of the company’s volume of work last year. However, after implementing the new lean manufacturing initiative, the number is now down to about 4 percent, and most of the rework is so minor that the company would not have tracked it in the past.
August 28, 2005

Toyota in India

Topic: Management Improvement

The Toyota Way Goes Bottom-up by Subir Roy, Business Standard (India). An interview with managing director of Toyota Kirloskar: Atsushi Toyoshima.

Toyota’s official vision is a 15 per cent share of the global market by 2010. But that is just a convenient number. The key internal focus has been set by the new president who has identified three goals: offer drastically better value in terms of environment, safety, quality and cost; contribute to the economy; and give something back to society through non-business activity (corporate social responsibility).

None of the 3 main internal goals are directly related to profit. See the previous Curious Cat post on this topic: the Purpose of an Organization. Toyota is the most profitable automobile company in the world. I believe other companies would be wise to learn from them.

He sees a change in India and has an observation to share. The number of Indian manufacturing companies applying for and winning the Deming prize (named after an American expert who helped post-war Japan set out on the holy grail of quality) is indication of the desire for excellence.

In several ways this article from India shows the incredible globalization taking place. The paragraph above has an American who influenced Japan who are now influencing India. And the comments of a Japanese, Toyota executive stationed in India are being listened to worldwide (such as by me, in America, and now you - wherever you are). It just struck me, in this particular instance, how small a world it has become in some ways.

August 27, 2005

Lean Manufacturing at Delphi

Streamlined by Derek Smith, Kokomo Tribune.

Each morning for local manufacturing workers begins with a “huddle meeting” in which groups discuss a variety of operations issues.

Guggina said Delphi has been recognized as an industry leader in its application of lean manufacturing.

In 2004, Plants 7 and 9 of Delphi’s Kokomo operations earned the coveted Shingo Prize for Excellence in Manufacturing.

August 25, 2005

Managing with Control Charts

Ideas from the Tiger’s Head by Simon Caulkin, The Observer. This is a remarkably nuanced short article on control charts given that it is a newspaper article (which normally overly simplify such concepts to the point not much of value is left).

This is a critical distinction: if managers mistakenly tamper with a stable process, believing an occurrence is exceptional, they introduce an external cause, which destabilises it. Targets do the same thing.

If a system is stable, as a matter of logic you can only force it to deliver a target beyond its limits by improving it, distorting it or fiddling the numbers.

Previous post relating to the last sentence: Dangers of Forgetting the Proxy Nature of Data

Measures of Success

Measures of Success interview of Alex Knight by Michaela Rebbeck. The interview discusses a model of measurement based on Theory of Constraints ideas.

The fundamental difference with my proposition is the shift in the mental model we have about measures. I believe in replacing the ’stick and carrot’ mentality with commitment to a culture where measures are used to help identify key opportunities for improvement and contribute to a ‘no-blame’ measurement mindset.
In a nutshell, I am suggesting that the purpose of any operational measurement is to measure the execution of our strategy by helping us answer the question ‘How well are we doing compared to what we were expecting to happen?’

This implies you must know what was expected, a great reminder of Deming’s statement that Management is Prediction.

August 24, 2005

Six Sigma Interview with Alan Harrison

Six Sigma Interview with Alan Harrison, Weir Pumps Ltd:

Everyone has been trained to some degree on what we have termed the Weir Production System, which includes but is not limited to TPS and Six Sigma. We have created a pragmatic pull improvement system (driven by business needs) where we define what is needed, when it is needed, and how to make it happen.

Google Talk

Google is at it again. They have announce Google Talk:

Google Talk is a simple and free way to talk with and send instant messages to your friends. Like Gmail, Google Talk uses Google’s innovative technologies to help people communicate more effectively and efficiently. Think of it as Google’s approach to communications.

Google Talk is easy and intuitive to use. All you need to make free calls is an Internet connection, a microphone, and a speaker. After you download Google Talk, sign in with your Gmail username and password. Invite your friends to download Google Talk, and once they do, you’ll be able to talk or IM with them instantly.

The rumors sure got this one right. Google Talk is already, and will continue to get Google a huge amount of publicity. It sure seems like the love affair with Google is cresting. Those pointing out problems (privacy…) are increasing. It will be interesting to see how much longer Google can retain the golden touch.

August 23, 2005

Japan Airlines using Toyota Production System Principles

Toyota Production System Steers JAL Group Cargo Operations at Narita, press release from Japan Airlines (via Lean Manufacturing Blog)

By applying the ingenuity and originality of the Toyota Production System to their cargo operations at Tokyo’s Narita Airport, Japan Airlines are on the way to saving millions of dollars annually and making huge strides in improving efficiency and productivity, while at the same time maintaining service quality and safety.

I don’t think I have ever seen such a press release. It reads like a good article for actually learning about their lean efforts. Unlike most press releases, it is actually worth reading.
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August 20, 2005

Has Six Sigma been a failure?

My response to the message, Has Six Sigma been a failure? on the Deming Electronic Network email list (DEN).

I think Six Sigma has been a success. Do I think it the best option? No, I would prefer a Deming based approach. But I think Six Sigma can be a successful improvement strategy. Like most any management strategy, many applying it do so poorly (hacks as Deming would say). But if most any DEN participant worked with the leading thinkers in the Six Sigma community you would find they fit very well within the community of the DEN, though with some distinguishing traits.

To varying extents the Six Sigma thinkers might not accept the level of importance we place on certain items, things like: “joy in work,” co-operation (vs. Competition), the need to change the organizations culture, the importance of unmeasurable factors, or eliminating performance appraisals. But the best minds (as I see it) in the Six Sigma community share our beliefs, to a large extent. The approach they have taken is to work with the current culture more than most of us would like, if we could instead have the culture move toward a more Deming based culture.

Many Six Sigma proponents have done great things: Gerry Hahn, Roger Hoerl, Soren Bisgaard, Bill Hill, Ron Snee, Forrest Breyfogle. They happen to all be statisticians, I believe; as were most (though not all) of those who taught with Deming. I think there is a connection. Statisticians that follow the applied statistics school of thought fit very well with Deming’s ideas, and with the good practice of Six Sigma.
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August 19, 2005

LA Jail Saves Time Processing Crime

After efficiency study, L.A. jail saves time processing crime by Dan Laidman Los Angels Daily News (pointy hired boss broke the link so I removed it)

Last week, Chief William Bratton told the Board of Police Commissioners that Toyota methods have produced dramatic changes in a jail division once beset by delays, inefficient transportation, personnel shortages and troubles with medical treatment.

But the collaboration between Toyota and the LAPD marks the first time law enforcement has used the principles in running a jail, said Mike Morrison, the dean of the University of Toyota.

The City of Madison Police Department applied Deming’s ideas in the 1980’s. Quality Improvement and Government: Ten Hard Lessons From the Madison Experience by David C. Couper, Chief of Police, City of Madison, Wisconsin, USA.

Doing More With Less in the Public Sector: A Progress Report from Madison, Wisconsin by William G. Hunter, Jan O’Neill, and Carol Wallen, June 1986.

Transforming Aggression into Creative Problem Solving

Transforming Aggression into Creative Problem Solving by Margaret J. Wheatley and Geoff Crinean

With their intelligence awakened, people want to contribute, want to change things, want to make things happen. They will work with existing structures and processes, but they will be altering and adapting them as needed, almost without noticing. Too often, leaders fear a loss of control and attempt to rein in such groups. Their own fear pushes them back into aggressive patterns of command and control.

A previous post making this point: Managing Fear

I think, some can leap to the conclusion that managing fear means you must avoid doing anything that may bother some people. That is not the case. If things need to be changed, that still must happen; even though people may fear change.

But managers must understand the psychological effects of fear and seek to move forward in the most effective way possible. That means taking into account the effect of the change, and the way the change is brought about, on those affected by the change.

Failed Practice: Forced Ranking

The ABCs of Rank and Fire Management by Mark Edmondson

Due in part to the influence of GE, employee ranking has become more widely adopted over the past 20 years. According to a 2004 study, currently about 34 percent of firms rank employees.

Our clients have learned that a performance management system that reinforces a culture of engaged employees can be at tremendous competitive advantage. While at least one-third of your competitors are alienating employees with some sort of dysfunctional ranking practice, you’re creating a high-performance culture by leveraging your most valuable asset- the minds and hearts of your people.

Previous Posts on the failures of Performance appraisal Process:

August 17, 2005

Going Lean in Health Care

Going Lean in Health Care a report from the Institute for Healthcare improvement based on presentation by James Womack and others. This report is an another excellent resource from IHI, which I have mentioned before is doing great things. This is defineately worth reading.

Lean principles hold the promise of reducing or eliminating wasted time, money, and energy in health care, creating a system that is efficient, effective, and truly responsive to the needs of patients the “customers” at the heart of it all.

The concept called lean management” or “lean thinking” is most commonly associated with Japanese manufacturing, particularly the Toyota Production System (TPS). Much of the TPS way of thinking is based on the work of quality guru W. Edwards Deming, who taught, among other things, that managers should stop depending on mass inspection to achieve quality and, instead, focus on improving the production process and building quality into the product in the first place.

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David Anderson CMMI Webcast Aug 18

CMMI Webcast Scheduled for August 18th

David Anderson will present the Microsoft Solutions Framework for CMMI Process Improvement material live at 11am Pacific Daylight Time on August 18th. After the presentation he will answer questions in a chatroom session.

Microsoft Solutions Framework (MSF) for CMMI Process Improvement is a highly iterative, adaptive planning, agile software development process which meets the requirements for the Software Engineering Institute’s (SEI) Capability Maturity Model Integration (CMMI) level 3 and provides a smooth transition all the way to level 5. In this Webcast, David Anderson (PM for MSF for CMMI Process Improvement, author and award-winning blogger) will introduce this feature Visual Studio Team System. Immediately following the Webcast, there’ll be an online chat with David and other members of the MSF team.

Register for the webcast

Prevoius Curious Cat Management Improvement posts on David Anderson’s ideas:

Collaboration Rules

Collaboration Rules by Philip Evans and Bob Wolf:

We have found that Toyota’s managerial methods resemble, in a number of their fundamentals, the workings of the Linux community; the Toyota Production System (TPS) owes some of its vaunted responsiveness to open-source traits. In fact, Toyota itself is evolving into a hybrid between a conventional hierarchy and a Linux-like self-organizing network.

Both emphasize granularity: They pay attention to small details, eliminate problems at the source, and trim anything resembling excess, whether it be work, code, or material. Linux members, for example, share an obsession with writing minimal code, compiling each day’s output before proceeding to the next and extirpating programming flaws as they go along. For their part, TPS engineers are relentless in applying short cycles of trial and error, focusing on just one thing at a time, and getting inside and observing actual processes. Both groups carry those principles to apparent extremes.

Monetary carrots and accountability sticks motivate people to perform narrow, specified tasks. Admiration and applause are far more effective stimulants of above-and-beyond behavior.

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