Kevin Meyer is hosting Management Improvement Carnival #35 on the Evolving Excellence blog, some of the highlights include

• Hidden Problems from TPM Log.  "We must encourage people to speak up and identify problems. We must
  also develop avenues for people to do so in a comfortable manner."
• It’s the People, Not Just the Tools from Shmula.  “what most folks forget is that ‘Kaizen’ was truly build upon the philosophy that ‘Toyota builds people and then cars’ - that is, Kaizen came from the notion that the collective intelligence of your line workers is valuable and that people, if given the training and the
  chance, can truly do amazing things.”
• True Work, Apparent Work, and Busy Work from Gemba Panta Rei.  “True work is of course the small amount of work in any process which changes form, fit or function as the customer desires.”
• Innovation on the Edge from Edge Perspectives.  “Why bother about the edge when everyone knows that all the profit is in the core?”
• Why Do Employees Underperform? from the Lean Six Sigma Academy.  “Muri means to overburden equipment or operators.  In many cases, muri can be avoided by the implementation of some basic forms of standard work.”

Read past management carnivals.

The recent drastic reductions again emphasize (once again) that changes in the federal funds rate are not correlated with changes in the 30 year fixed mortgage rate. In the last 4 months the discount rate has been reduced nearly 200 basis points, while 30 year fixed mortgage rates have fallen 18 basis points.

I have update my article showing the historical comparison of 30 year fixed mortgage rates and the federal funds rate. The chart shows the federal funds rate and the 30 year fixed rate mortgage rate from January 2000 through April 2008 (for more details see the article).

It is surprising to me how incorrect beliefs about what predicted federal funds rate cuts will mean for mortgage rates are so common when the data makes it clear that such beliefs (I should wait because the fed is going to cut the fed funds rate and so if I wait my mortgage rate will be lower) are unwarranted. But I should not be this type of behavior goes on all the time, inside organization and outside them.
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Chinese firms bargain hunting in U.S.

True this is still a relatively small macro economic factor. However, it is growing. The primary push so far is economic - not a move to lean manufacturing (as far, as I can tell) to put manufacturing close to the customer. What is the biggest factor? The USA is spending more than $400 billion every year more than it produces. The only way to consume more than you produce is to borrow (and take an obligation to pay back those that lend you money) or sell the stuff you own to those that are producing more than they are consuming. China is producing more than $200 billion more than it consumes every year.

For decades foreigners have taken debt from Americans that promise to pay back later (to pay for what they consumed). Now many are deciding that these debts are not attractive investments and are looking to own productive assets in the USA (companies, factories…). Which is smart on there part in my opinion.

Related: The Budget Deficit, the Current Account Deficit and the Saving Deficit - Moving Jobs to Silicon Valley from India - $2,540,000,000,000 in USA Consumer Debt - How to Keep the USA Manufacturing - Top 10 Manufacturing Countries 2006

Warren Buffett’s 2004 Annual Report:
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The Open Secret of Success

Very true, except one thing. Toyota’s innovation is not limited to process and execution. Toyota’s long term vision results in very dramatic innovation (that granted is not getting the press today - check back in 20 years, I think you will be reading about it then). For some examples see: Toyota’s Partner Robot, Toyota as Homebuilder, Toyota Engineers a New Plant: the Living Kind and The Birth of Prius.

A company truly driven by a focus on continual improvement, respect for all employees and reasonable executive compensation might be a company serious about adopting Deming and Toyota management principles. It is hard for me to imagine such a situation that doesn’t truly seek, as the primary aim of the organization, to benefit many stakeholders (workers, owners, suppliers, customers…) not just executives (or just executives, board and owners…).

Related: Toyota Management Develops the New Camry - Better and Different - Deming and Toyota - Toyota Keeps Improving - More Positive Press for Toyota Management - Good Execution is Important

Guest post by David Kerridge (originally posted to the Deming Electronic Network):

This is part of a series in which I recall striking or thought-provoking things that W. Edwards Deming said, but did not put into his books.

I remember taking a manager to his first Deming 4-day seminar. Afterwards my friend said to me “I was very impressed with that man. He said ‘I don’t know.’”

Something in our culture makes us ashamed to admit ignorance. We expect quick, slick answers, whether from politicians, managers, or consultants.

Deming said “I don’t know” more often than anyone I have ever known. Sometimes you heard the answer about two years later, in his seminar.

I also remember him saying “I have learned more in the last six months than in the previous ten years.”

Maybe one quotation explains the other.

Related: Dr. Deming quotes - Instant Pudding - Deming on being Destroyed by Best Efforts - Where to Start Improvement

The Clifton Gorge State Nature Preserve in Ohio is quite a nice short hike. Photos by John Hunter. If anyone knows what the green beetle is please add a comment.

I visited the preserve last year. Other sites from the trip include: Rocky Gap State Park, Maryland and Coopers Rock State Forest, West Virginia.

More photos: Rocky Mountain National Park - Mount Rainier National Park - Capital Crescent Trail (Washington DC) - travel photo directory

Please submit your favorite management posts to the carnival. Read the previous management carnivals.

• Introduction to Factorial Designs by Jonathan Mendez - “I like the idea of velocity in marketing — test, learn, test, learn, test. Instead of one large test I prefer focusing attention on certain areas or elements to achieve deeper understanding.”
• MIT’s Message about Lean Enterprise Transformation by Mark Edmondson- “1. Market leaders are good at embracing enterprise change; 2. Enterprise change requires a holistic approach that engages all stakeholders. This includes employees, suppliers, customers, unions, and investors/owners”
• Two Types of Bottleneck by David J. Anderson - “I now teach that there are two types of bottleneck: capacity constrained resources CCRs; and non-instant availability resources”
• Oranges, Pebbles, and Sand by Ron Pereira - “In this video my daughters and I demonstrate how meeting an objective is just the beginning to improvement.”
• Why errorproof when you can double-check? - “If you are in the position to prevent the error in the first place, why wouldn’t you? And, I’d argue, if you can write a tool to detect the screw up - ie, it is possible to programmatically figure out that the template is wrong,”
• Systems and Improvement by John Dowd - “Thus did Deming, over sixty years ago, show a basic model about how to think about quality and improvement.”

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