Curious Cat Management Improvement Blog: Deming, lean thinking, innovation, customer focus, continual improvement, six sigma.
July 31, 2006

Lean Efforts at a University

Bringing Lean To the Office

A team of college students used lean to streamline processes in their university’s admissions office. The students were able to reduce a process took two to three weeks to about one day.

More lean thinking articles.

July 29, 2006
July 28, 2006

La-Z-Boy Lean

Richard K. — More about the Dayton plant

Nice example of the process of transitioning to lean manufacturing.

Two years ago La-Z-Boy embarked on its lean journey, moving from batch and queue to cellular manufacturing. The Dayton (TN) plant is about 25% of the way.

Then we want to do everything we can to sustain the progress. That’s why we’re training the supervisors with the simulation. The TPM (total productive maintenance) teach is another way to sustain. It gives us a checklist to ensure that once we have made the changes, we know how we are keep them in place?

It’s pretty exciting stuff. We’re just going to roll with it and see what happens. If this model works, we’re definitely going to look at deploying it in other plants.

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July 27, 2006

What Is Muda?

What Is Muda? by Norman Bodek

Excellent article on lean thinking, management improvement and eliminating waste.

Setup time and machine downtime are wastes and should be eliminated. I remember visiting a washing machine plant in Japan operated by Panasonic, where there was no separate maintenance department. The company taught operators in the plant to fix their own machines. And since Shingo’s great breakthroughs on setup reduction, changeovers are often done in seconds, not in hours.

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Investing Update

The recent performance of some of the long term stock picks has not been good. Several continue to have pretty good results so far, including: Google, Toyota, Templeton Emerging Market Fund, Petro China.

Several have had sharp declines recently including: Dell, Intel, Yahoo and Amazon. Is it time to sell any of these stocks? I don’t think so. I am a bit less confident about Dell and Intel than I was a year ago but I still think holding the stocks makes sense. Yahoo I think is fine and will consider buying more after doing some more research. Amazon continues to disappoint on the earnings front but I still believe the long term story is strong - though again I am a bit less confident than in the past.

My favorite stock, at these prices, is the one I most recently recommended: Tesco (the stock has been doing well since then). Overall I am happy with continuing to hold all the stocks.

July 26, 2006

Lean Thinking in Printing

How Going Lean Made Kell Better by Kevin Cooper

Lean is a total enterprise strategy. Lean thinking is not constrained to only manufacturing but a business strategy that involves the entire company. Many lean tools are implemented on a small scale to get momentum rolling, but your thinking about change should embrace the entire business model.

Well put.
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July 24, 2006

Another Quota Failure Example

Innocent People Placed On ‘Watch List’ To Meet Quota

You could be on a secret government database or watch list for simply taking a picture on an airplane. Some federal air marshals say they’re reporting your actions to meet a quota, even though some top officials deny it.

The air marshals, whose identities are being concealed, told 7NEWS that they’re required to submit at least one report a month. If they don’t, there’s no raise, no bonus, no awards and no special assignments.

“Innocent passengers are being entered into an international intelligence database as suspicious persons, acting in a suspicious manner on an aircraft … and they did nothing wrong,” said one federal air marshal.

If this is accurate it is another example of the problems caused by using quotas. Read some excellent thoughts on management problems caused by quotas - from Jim McIngvale, CEO Gallery Furniture and author of Always Think Big.
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July 23, 2006

VA Medical Care

The Best Medical Care In The U.S.

studies show that 3% to 8% of the nation’s prescriptions are filled erroneously, the VA’s prescription accuracy rate is greater than 99.997%, a level most hospitals only dream about.

This data certainly should make most hospitals interested in learning what is going on.

And for the past six years the VA has outranked private-sector hospitals on patient satisfaction in an annual consumer survey conducted by the National Quality Research Center at the University of Michigan. This keeps happening despite the fact that the VA spends an average of $5,000 per patient, vs. the national average of $6,300.

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July 22, 2006

Univ Michigan Hospital Adopts Toyota Methods

U-M hospital takes page from Toyota by Sharon Terlep. This continues the trend (trend rather than fad because I like that it is happening :-)) of hospitals adopting lean management methods.

In health care, the one-at-a-time approach could mean taking a patient’s call, pulling the patient’s records, scheduling a visit and performing the exam that day, rather than creating a backlog of appointments or letting people crowd a waiting room. That way, if something goes wrong, it’s easy to target where the problem happened and fix it right away.

This article gets some of the ideas down but I think presents them in a fairly confusing way. So take this for what it is a report on one more hospital trying these ideas. Then read the the many available resources to learn about one-piece flow, poka-yoke, eliminating waste, identifying errors, kaizen… rather than relying on this article. (more…)

July 21, 2006

Motivation

From the Deming Electronic Network: Incentives:
> I don’t think motivation deserves to be discarded to the archives of “Arbitrary Goals.”
> I have to pose this, though: was Deming explicit on best ways to handle motivation?

To me the problem is in the belief of needing to motivate workers (that is theory x thinking). I think it is much more accurate to say managers need to focus on eliminating de-motivation.

See page 125 of New Economics on the Forces of Destruction (destroying intrinsic motivation). The best motivation is internally generated. Also see pages 37-40 of Peter Scholtes‘ excellent book the Leader’s Handbook.

Most manager focus on motivating people is wasted time and effort. Instead managers would be much more effectively used improving the system, learning, coaching, eliminating de-motivation…

John Dowd says:
> I think many organizations could benefit from gain sharing/profit
> sharing plans. They generate a feeling of belonging and shared venture.

I agree with this. I wonder what others think.

More on Motivation from John Dowd

John Hunter

Army Lean Six Sigma

Lean Six Sigma eases fiscal constraint challenges by Beth Reece, Army News Service:

During fiscal 2005, the Army Material Command saw $110 million in savings and cost avoidance by implementing Lean Six Sigma practices. By removing waste and better controlling output, for example, Letterkenny Army Depot, Pa., reduced costs by $11.9 million in Patriot air defense missile system recapitalization. And Pine Bluff Arsenal, Ark., reduced repair cycle time by 90 percent and increased its production of M-40 protective masks by 50 percent.

Another press release on the Army’s use of Lean Six Sigma. See: online six sigma resources and lean manufacturing resources.

July 20, 2006

Lean Master Class with Jeffrey Liker (London)

I have very few details on this opportunity. All I know is what this Deming Electronic Network message says.

24-hour Lean Master Class with Jeffrey Liker
Start: October 10, 2006 5 PM
End: October 11, 2006 5 PM
London, United Kingdom

Rubicon Associates and The Deming Forum are delighted to present a Master Class with Jeffrey Liker. Prof. Liker is a world expert on the culture and methods behind the phenomenal success of Toyota and is offering an in depth view through this unique window.
(more…)

Lean Management Case Study

Learning the Rules…Playing to Win (pdf)

Lean concepts are taught through discussion and hands-on discovery, not lectures.” A popular part of the experience involves various simulation exercises including the beer game, which teaches that poorly organized systems will defeat the best of people, and the airplane simulation exercise, where student groups work together to build model airplanes.

On the first try at this simulation, typically one airplane is completed in the allotted time. At the end of the weeklong session — using lean methods, tools and applications – the number of completed models usually jumps to 10.

More on the beer game and drum-buffer-rope.

via: Lean Case Study: ZF Industries:
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July 19, 2006

Shaker Village of Pleasant Hill, Kentucky

photo of Shaker Bedroom by John Hunter

Photos from my visit to the Shaker Village of Pleasant Hill, Kentucky. The design of the spaces (living and working) and tools was beautiful and, in fact, very much reminiscent of lean thinking ideas like 5s.

On this trip, I also visited the Abbey of Gethsemani (where Thomas Merton was a monk) and Louisville.
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The Birth of the Kaizen Blitz

The Birth of the Kaizen Blitz

What happens when productivity improves to the point where fewer people are needed? Bodek says a layoff is a mistake. He says that Toyota, rather than eliminating the poorest performers, takes the best performers from a cell and gives them something more creative to do. It’s the human side of lean that provides the payoff.
July 18, 2006

Lean Podcast - Bodek

The lean blog has created their first podcast (they plan to make this a monthly feature) focused on Kaizen. I recommend it and look forward to more. They take after the good interviews they have posted in the past, including: Interview with Lean Guru Norman Bodek and Q&A with Jim Womack.

I also liked that Norman Bodek talked about the way Kaizen can help employees enjoy work (”joy in work”). Work is not likely to be all fun all the time, I have learned (my father was a professor and consultant and came pretty close to that - which gave me a skewed perception). But work is a huge part of our lives it should not be something we dread.

More posts on management improvement podcasts.

Curious Cat Management Improvement Dictionary: standardization.

July 17, 2006

Evolution of the PDSA Cycle

Evolution of the PDSA Cycle by Ron Moen and Cliff Norman. Another historical article that explores the growth of management improvement concepts - this time the PDSA improvement cycle.

via: Deming Electronic Network

See also:

Kaizen the Toyota Way

Excellent post: Kaizen Secrets of the Toyota Mind by Jon Miller:

The Toyota mind asks “What does my customer want from this process?” rather than “What do I want from this process?”

The Toyota mind builds brilliant processes that enable average people to be high performers, rather than flawed processes that enable even brilliant people to be only average performers.

Jon Miller has also been posting several items on the Words of Taiichi Ohno Sensei that have excellent material, including:

If you are going to do TPS you must do it all the way. You also need to change the way you think. You also need to change how you look at things.

Forever and ever, neither tiring nor ceasing.
July 16, 2006

Better Manufacturing in UK

My design for better manufacturing in UK by James Dyson:

The way forward is to make things that are better designed, better engineered and with better technology than our competitors’ products. This is the blueprint for 21st-century success embraced by Japan. It is why Japan makes six times as many patent applications as Britain and spends three times as much on research and development. The Japanese government is about to spend £128 billion on research and development. The figure in Britain is £1 billion.

He at least partially gets the idea. I think he could benefit from studying and exploring the Toyota Production System - perhaps he could attend the seminars by Toyota UK. Still he is encouraging some of the right stuff, and the innovative engineering school he is half funding seems like a very good idea.
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July 15, 2006

IT Outsourcing Slowing

Outsourcing bubble getting Busted: What should India do? - commenting on the 2006 Global IT Outsourcing Study

Essentially the study says the outsourcing IT will continue to grow though more slowly than it has. It also states the benefits of outsourcing have not reached the level that was predicted for a number of reasons. The study predicts vastly increased competition from China for IT outsourcing work (which reinforces the general consensus).

Perhaps most interesting, however, is the phenomenal growth in the expectations of China as an outsourcing destination. In 2004 only 8 percent of study participants expected to be outsourcing anything to China over a 3–5 year period. In 2005 this number had grown to 40 percent and in 2006 it sits at an impressive 56 percent. We believe that the hype of the Chinese outsourcing phenomenon has potentially outpaced reality.

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