Posted on August 9, 2007  Comments (6)

Many people state that data can lie. Obviously data can’t lie.

There are three kinds of lies: Lies, damn lies and statistics – Mark Twain

Many people don’t understand the difference between being manipulated because they can’t understand what the data really says and data itself “lying” (which, of course, doesn’t even make sense). The same confusion can come in when someone just draws the wrong conclusion from the data that exists (and them blames the data for “lying” instead of themselves for drawing a faulty conclusion). The data can be wrong (and the data can even be made faulty intentionally by someone). Or someone can draw the wrong conclusion from data that is correct. But in neither case is the data lying. It is also common to believe the data means something other than what it does (therefore leading to a faulty conclusion).

For a very simple example, believing if the average height for adults in the USA is 5 feet 9 inches that half the people must be taller and half the people must be shorter. You could then draw the conclusion that half the adults must be shorter than 5 feet 9 inches. But that is not what an average height means (it is basically what median means, though if you want to get technical, it doesn’t mean exactly that). You might draw the conclusion that the average height of an adult in California is 5 feet 9 inches but that is not supported by only the data that says what the height of an average adult in the country is. The same hold for drawing the conclusion that 5 feet 9 inches is the average height of a women. Now in this simple examples, hopefully people can see the faulty reasoning but such reasoning often goes on without consideration.

In a great speech by Marisa Meyer she speaks of Google makes decisions using data and that data is apolitical. One benefit of this, she says, is that Google makes decisions on what the data supports not political considerations. The belief that basing decision on what the data supports leads to better decisions can seem false for those that accept the quote about 3 types of lies (or those that see there is some weakness to this point if those supposedly basis decisions on data don’t really understand how to do so).
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Posted on August 8, 2007  Comments (0)

This podcast by Mark Graban with Dr. Sami Bahri, “The World’s First Lean Dentist” is well worth listening to. It offers a wonderful example of how to apply lean ideas (I really appreciate how obvious the focus on learning and thinking has been key to becoming a lean organization). Dr. Bahri does a great job of explaining how he learned and applied lean thinking with a big focus on one patient flow. He worked with Deming’s ideas and TQM… before, in 1993, he really focused on lean thinking in 1993.

It is easier to see this, I believe, when it is not as easy to just copy what some other organization is doing. Trying to copy is never a good idea. Learning the concepts and then applying them to your situation is what is needed. Seeing what others do can be helpful, but you must learn and then adapt the ideas to your organization – copying is not a good idea. Then practicing continuous improvement and use the PDSA improvement cycle.

Related: Going Lean in Health Care – Lean Health Care Works – PBS Documentary: Improving Hospitals – management improvement podcasts

Posted on August 8, 2007  Comments (1)

Workplace Management by Taiichi Ohno is an excellent management book. Taiichi Ohno is known as the father of the Toyota Production System (TPS), also called lean manufacturing. He dictated the text to the Japan Management Association (in a series of interviews in 1982), which gives the book a sense of listening to him talk about the ideas. I found the conversational tone made it very easy to read and reminiscent of Dr. Deming’s tone in many places.

Ohno focused a great deal on the faulty perceptions derived from cost accounting thinking. He discussed the importance of not letting your understanding be clouded by thinking with the accounting mindset. “If you insist on blindly calculating individual costs and waste time insisting that this is profitable of that is not profitable, you will just increase the cost of your low volume products. For this reason there are many cases in this world where companies will discontinue car models that are actually profitable, but are money losers according to their calculations. Likewise, there are cases where companies sell a lot of model that they think is profitable but in fact are only increasing their loses.” page 32

Another area covered in the book is the whole concept of one piece flow (with quick changeovers of equipment, just in time, small lot production…). This is one of the true innovations within the Toyota Production System. I don’t think this book alone can convey how it works and why it is important but this book does a good job of giving another take on these ideas, from the person most responsible for making it work at Toyota.

The book is full of wonderful quotes including:

“There is a sequence for implementing automation that must be followed, even though it is hard. Automation just for its own sake is a problem.” page 81

“If you are observing every day you ought to be finding things you don’t like, and rewriting the standard immediately. Even if the document hanging here is from last month this is wrong.” page 125
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Posted on August 6, 2007  Comments (3)

Interviews on how to hire in Silicon Valley. I especially like Guy Kawasaki’s comment – “the key to getting great people to work for you is to have a great product. That is why Google does so well. That is why Apple does so well.” I agree with the concept that a huge part of hiring good people is offering them a place where they feel proud of what they are working on. This is even more true when you talk about great software developers that have more choice than most in how they choose to earn a living.

via: How Are Companies in Silicon Valley Hiring?

Related: Interviewing and Hiring Programmers – Google’s Answer to Filling Jobs Is an Algorithm – Google Exceeded Planned Spending on Personnel

Posted on August 4, 2007  Comments (2)

Is There A Lean Employee Deficit?:

If you are looking a new job (or a company looking for skilled and knowledgeable people) the Curious Cat Management Improvement Job Board lists openings (and companies can post relevant vacancy announcements – 100% free). Current listings include: Quality Engineer, Director – Lean Manufacturing, TPS Consultant and
Director, Six Sigma Process Improvement. It is great there is a demand for skilled lean manufacturing experts; now we just need to make sure companies can get the right people in place so they can be successful and grow the adoption of lean management methods.

Related: Hiring the Right Workers – Signs You Have a Great Job … or Not – management improvement career related posts – USA Job Growth

Posted on August 3, 2007  Comments (2)

Toyota Reports Best Quarter Ever

One quarter doesn’t mean much but this is just the continuation of a long term trend. Posts on Toyota’s management system.

Posted on August 1, 2007  Comments (0)

Management Improvement Carnival #16 is hosted by Mark Graban at the Lean Blog. Some highlights include:

• How Toyota Handles Disaster, by Matthew May at “Elegant Solutions”:
  “Sometimes the Wall Street Journal has at best one use: wrapping fish. To wit, their ignorant article on the front page of the Marketplace section: “A Key Strategy of Japan’s Car Makers Backfires.”… Long story short: Toyota’s been there, done that. Read on if you want the story.”
• More Lean Companies, by Kevin Meyer at “Evolving Excellence”: “…the July 17th issue of Manufacturing News has an article by Cliff Ransom, President of Ransom Research. Cliff is one of the few Wall Street analysts that truly understands lean manufacturing and the impact it can have on company performance and valuation.”
• Kaizen Rules 1&2, by Ron Pereira at “Lean Six Sigma Academy”: “We must enter a “how it can be done” mindset instead of why it cannot be done mindset. The former is essential if we are to make any serious, long lasting change. This manner of thinking must also be taught to our associates. If everyone adopts this “how to” mindset change can occur rapidly.”
• Right is Cheaper, by Rob Worth at “Lean Services Blog”: “So if anyone tells you that higher quality is more expensive ask them to correct themselves and count the calories they burn as they do so.”

Please submit your favorite management posts to the carnival.