Curious Cat Management Improvement Blog: Deming, lean thinking, innovation, customer focus, continual improvement, six sigma.
August 30, 2008

Kiva Fellows Blog: Nepalese Entrepreneur Success

photo of Rita Bashnet

Kiva is a great charity and example of how to use the web effectively. Kiva has added a fellows blog - which is a great idea. The fellows are funded by Kiva (fellows are unpaid) to go to spend time in the countries Kiva facilitates loans for working with the local partners. This post is about Rita Bashnet (in photo) an entrepreneur from Nepal:

Field visits are by far the best part about being a Kiva Fellow. You’re given the opportunity to hop on a motorbike, hike up a village trail, and actually see the impact of a Kiva loan firsthand.

Five years ago, Ms. Rita took her first loan of NRs. 10,000 (USD $150) and purchased some extra seed and fertilizer in the hopes of expanding her small vegetable patch. With the profits from this initial investment and a second loan from Patan Business and Professional Women (they offer a graduated loan program), she then purchased her first dairy cow.

After hearing about a program that subsidized the installation of methane gas storage tanks, Ms. Rita took another loan and applied for the program. With this new system, she is now able to capture the valuable gas released from her cow’s waste in a simple controlled-release storage tank. Today she no longer purchases gas from the city and can even sell some during times of shortage.

Ms. Rita exemplifies the potential of microfinance. A combination of access to capital and strategic investment has allowed her and her family to drastically improve their economic situation in a short five years.

Great story, and exactly my hope for using capitalism to improve the standard of living for people around the globe.

I notice a few days ago, for the first time, some of those seeking loans are about to have their listings expire unfunded. Kiva gives listings 30 days to be funded. Yesterday Kiva announced they were providing funds to lenders as soon as the entrepreneur has made a payment (it used to provide the funds to lenders only once the loan was closed out). My guess is they were smart to create a backlog of available loan options before flooding the Kiva market with lots of extra capital (I, for example, now have over $500 available to lend. If they didn’t have a backlog when this change took place they would have created a situation whee lenders could log in to lend money and can’t find anyone to lend to.

I have no problem if some loans are not funded (I want to help entrepreneurs by providing funding to build a business - some loans are for things like adding a room onto their house, which is fine but not what I want to support with interest free loans from me). A significant number of the unfunded loans where for pubs (I think Kiva lenders might not have the same criteria as banks :-).

If you haven’t loaned money through Kiva, please consider it now. If you do, send me your Kiva lender link and I will add it to Curious Cat Kivans. We have a couple readers that have provided links (including fellow bloggers Kevin Meyer and Tom Southworth) but I really would like to see more.

Related: Using Capitalism to Make the World Better - Millennium Development Goals - Appropriate Technology - Provide a Helping Hand with Kiva

August 28, 2008

Posts from August 2005

  • Purpose of an Organization - New Economics, page 51: The aim proposed here for any organization is for everybody to gain - stockholders, employees, suppliers, customers, community, the environment - over the long term.
  • Going Lean in Health Care - Lean ideas will not work, as they should, without changes to the way the organization makes decisions. Failing to understand this factor is one reason some organizations are frustrated with the results they experience when trying to apply lean thinking.
  • The Impact of Six Sigma - 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).
  • Design of Experiments in Advertising - It is great to see the application of Designed Experiments increasing… I am also reminded of a fun article I ran across a few years ago: Three Romeos and a Juliet: - Our early brush with Design of Experiments.
  • Deming’s Seven Deadly Diseases - 1) Lack of constancy of purpose; 2) Emphasis on short term profits (Overreaction to short term variation is harmful to long term success. With such focus on relatively unimportant short term results focus on constancy of purpose is next to impossible.) 3) Evaluation of performance, merit rating or annual review…
  • Gap web site down for days - It baffles me that they think it is acceptable to go offline for days to make a change, even a major one.
August 25, 2008

Future Directions for Agile Management

Agile management (agile software development specifically) is something that makes a big difference in my work life. David Anderson consistently provides great ideas on agile management and he does so again in this 90 minute presentation on the future directions for agile. As I learned about agile software development, what I saw was a great implementation of management improvement practices focused on software development that was very compatible with Deming’s management philosophy and lean thinking practices. The Agile manifesto:

Individuals and interactions over processes and tools
Working software over comprehensive documentation
Customer collaboration over contract negotiation
Responding to change over following a plan

The first line can seem to be at odds, but I think in practice it is not - though I admit it may seem that way based on the importance placed on process by Deming (I think you have to read on agile to understand why this is the case). For my use of agile software develop, a highlight of the most important ideas is:

  • Deliver working systems quickly (with limited features, add features based on user needs) - [management improvement practice: PDSA, pilot ideas on a small scale, go to the gemba (don't sit in conference rooms talking about what might be an issue for the computer application you want to see in 6 months, create working systems and then continually improve it)]
  • Build systems that cope well with uncertainty and allow for constant continuous improvement of processes (with IT systems that can adjust as needed to changing business conditions and desires) - [continual improvement - what is good enough today is not good enough next year]

Important concepts addressed by agile management: highly collaborative, risk tolerance, systems thinking, customer interaction, craftsmanship ethic [joy in work], eliminate waste. Great quote from the webcast:

What we know about knowledge work, and software engineering, is that coordination cost grow non-linearly with batch size. We’ve known this since Greg Brooks published the Mythical Man Month, probably longer than that. So that is a key difference with manufacturing, coordination costs do not grow with batch size in manufacturing.

Related: Kanban In Software Engineering - Management Science for Software Engineering - Improving Communication - webcast of David Anderson talking about applying Agile and Deming’s ideas at Microsoft - What is Agile Software Development?

August 22, 2008

Tiger Woods and Lightning Bolt

You have done pretty well when you can get people to post your ads on their blogs for the enjoyment of their readers. Enjoy this creativity and have a nice weekend.

While on sports I also will mention Usain ‘Lightning’ Bolt’s performances in the Olympics: they were amazing. In contests (100 and 200 meter dash where the victor is usually a few hundreds of a second faster he won the 100 by 20/100s and 200 by 66/100s officially [52/100 but that runner and the next were disqualified for running outside of their lanes]). Both were new world records.

Both the margins of victor seem to be the greatest ever (some news reports have said so, at least one I ready said matched the largest in an Olympic 100 final over the last 40 years - others say “the largest since Carl Lewis won by the same time at the 1984 Olympics”). It was very impressive. At the last Olympics he was 5th in the 200 (he didn’t start running the 100 until this year).

Related: Davidson Students Get Free Sweet Sixteen Trip - Science and Sports

August 21, 2008

Gobbledygook

How is this for Gobbledygook? Your home banking access code is expired! You must change your access code at this time. Your access code:

* may be between 4 and 20 characters in length
* must not have been changed within the last 0 days
* may not be one of 3 previously used access codes
* must not repeat the same character more than 0 times
* must not contain 0 characters from previous access code
* must contain at least 0 non-alphabetic character(s)
* may contain the following special characters: !”#$%&()+,-/;<=>?[\]^_`{|}*’
* must contain at least 0 alphabetic character(s)

1) What does “must not have been changed within the last 0 days” mean?
2) How about “must not repeat the same character more than 0 times” ?
3) Or “must not contain 0 characters from previous access code” ?

This kind of stuff is what makes people think computer programmers are crazy. I am sure the software allows users to set criteria. Then this screen is suppose to explain the criteria to users. It seems to me, if the selection is 0, then the correct procedure is to not display anything about it to the user.

Really I am not sure how “must not contain 0 characters from previous access code” is even to be applied if an positive integer were used. I guess you could not allow using any characters from the last access code, which seems crazy to me to begin with, but setting a number seems totally bizarre. I could see setting a requirement that says no repeat of the same sequence of x characters. I think that would probably not work well, but at least I understand what it would mean.

Related: Change Your Name - Bad Software Visual Controls - Complicating Simplicity - web usability resources - Schneier on Security

August 20, 2008

The Power of Small Teams

The power of small teams by Avi Muchnick

Choose a project that is simple to implement. Don’t try to create a complex suite of applications… Focus on solving a single problem. Philip Kaplan made email more efficient to use by stalling it instead of managing it. Dead simple approach and a great idea.Take the easier approach when possible.

Choose people that can wear multiple hats. Can your designer code? Can your programmer manage a community? Can your marketing guru fund raise? Can one guy do it all?

All documentation should be available via a central location. A wiki can work really well for this purpose. Good documentation lessens the loss from communication failures.

Arrange your workspace in common areas. Segregating your team in different offices is a recipe for lost communication data and with it, a need for additional people. You’d be surprised at how many roles can be shared by multiple people, so long as they have the ability to communicate instantly and unimpeded with each other. Put people between walls, and those shared tasks will need to be managed by additional team members.

Amazon and Google do a lot with small teams and I think they have it right. I have worked on small IT teams for several years now and find it great. Combine with agile management methods small teams allow for great focus (you are naturally guided toward appropriate project sizes instead of huge monster projects), great results and joy in work. I have no desire to work in large teams.

Related: Team Handbook - Measuring and Managing Performance in Organizations - Keeping Track of Improvement Opportunities - Curious Cat Management Articles

August 19, 2008

Lean IT Systems - Not ERP

I am not sure, IT needs to get lean on manufacturing, does the clearest job of explaining some things, but it does state some things well:

you can see how typical offshoring doesn’t work here, as it is counterproductive to true lean manufacturing. If your plant is 8,000 miles away, you need to plan even further out, building in as much as an extra month for transoceanic shipping. Manufacturers also need to carry a larger safety stock in case shipments do not arrive on time. Due to the high costs of shipping, especially with fuel costs rising, manufacturers typically order more than is needed in order to reduce per unit shipping costs, filling an entire container rather than ordering by the smaller palette size.

SAP or Oracle MRP are a problem because they cannot set up an “execution” system to perform based on lean principals.

It is this new concept that is the biggest stumbling block for IT in terms of adopting lean manufacturing. Most major companies have invested multiple millions in their ERP system, and it’s IT’s job to run the system. On top of that, these software-acquisition decisions for the major ERP systems are made by the CEO and CIO, who don’t understand the shop floor.

What the article is really talking about IT departments providing the proper tools for organizations to manage. IT should also adopt lean methods for their operation (many in IT that are practicing lean are doing so with agile software development methods). Toyota, not surprisingly does well at using IT to support lean manufacturing.

ERP stand for Enterprise Resource Planning and in IT circles referrers to amazingly complex IT systems to manage the organization. Some people think they are useful, I think they are overly complex, poor management implementations that end up having organizations conforming processes to the IT system instead of having an IT system that support the organization. And they are far too complex - web 2.0 type applications should be the focus not ERP. IT should liberate people to be more flexible with designing processes, PDSA… not act to enforce rigid rules.

Related: lean manufacturing articles - Information Technology and Management - Agile Management

August 18, 2008

Lean Management in Policing

photo of Jacksonville Sheriff Office Lean Team

Justice served up Jacksonville–style is all lean by Joe Jancsurak:

The Jacksonville Sheriff Office’s (JSO) Crime Reducing Initiatives Management and Enforcement Strategies (CRIMES) measures, tracks and analyzes crime-fighting statistics, such as the number of arrests and value of stolen and recovered property. Such findings are instrumental in determining the overall effectiveness of the JSO and where improvements need to be made.

Investigations stress uniformity. Lean “changed how we approach investigations,” says Sheriff Rutherford. “We found that three officers investigating three different burglaries might ask three different sets of questions. So we developed a standard form showing the questions that should be asked to ensure consistency.”

Hiring of school crossing guards made more expedient. “This one’s amazing,” Sheriff Rutherford chuckles. “It was taking us 68 days to hire someone from our eligibility list because we were sending candidates all over for different parts of the interview process. Now it takes us just three days to make a decision because we’re practicing ‘one-stop hiring.’”

This reminds me of the first efforts I know of for such efforts in policing (from the 1980s): Quality Improvement and Government: Ten Hard Lessons From the Madison Experience by David C. Couper, Chief of Police, City of Madison, Wisconsin.

Via: Upcoming Podcast: Lean Law Enforcement

Related: Failure to Address Systemic SWAT Raid Failures - LA Jail Saves Time Processing Crime - The Public Sector and Deming - Curious Cat Management Improvement Search Engine

August 16, 2008

Management Improvement Carnival #41

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

  • Could Microsoft’s Windows Be Disrupted? by Scott Anthony - “as Clayton Christensen pointed out in his seminal book The Innovators’ Dilemma, market leadership isn’t just an insufficient buffer against disruption, in some cases it is the root cause of failure.”
  • Learning to say no by Dan Markovitz - “The CFO says no when the president want to renovate the offices or hire new people, and the company can’t afford it — that’s part of her fiduciary responsibility. You have a responsibility, too — you have to set expectations about what can be accomplished with the resources (time and people) available.”
  • Connecting to the Customers by Lee Fried - “It is amazing how much you can learn in a short period of time by spending time listening to the voice of the customer. What is just as amazing is how much you can learn from talking to the people who spend forty hours a week listening to the customer”
  • Remembering the Model T by Jon Thompson - “So on the 100th anniversary of the Model T, it seems worth tipping the Toyota hat to Henry Ford and the production techniques he so cleverly harnessed. Those techniques put us all on wheels.”
  • The Hard Sell for Cells by Jon Miller - “The cell brings processes together, thereby bringing people together. The basic unit for natural work teams to form work zones that connected physically and in terms of work flow. When the person working to either side of you directly depends on the work you do to be successful, team spirit can take root.”
  • Why my oil company can’t deliver by “They could make fewer, or at least better timed visits to the customer… I’m guessing because they can’t predict my oil use that well and if they targeted a refill at a 1/4 tank, I’d run out of oil sometimes… And what’s horrible about it is a little extra free information is all they’d need to cut visits and still not have anyone run out of oil.”
  • Systemic problems in US healthcare? by Bill Harris - “Treating the symptoms might make things better in the short term, but we shouldn’t be surprised when they return if the disease remains present. That’s where the systemic approaches come in: they can help us find the structures at work creating our problems, and they can help us test our theories about proposed solutions.”
  • Be Careful with Copying by Mark Graban - “Unfortunately, there are no short cuts to this process. Copying someone else’s layout may end up being suboptimal for your needs.”
  • Interactions and Systems by John Dowd - “Successful managers understand these interactions, how they work and they manage them as well as the main effects.”
  • (more…)

August 11, 2008

Don’t Do What Your Users Say

In, Don’t do what your users say, Hanford Lemoore, provides a nice illustration of why customer focus is important but must be done with care.

in UI design it’s important to understand that what a user says and what a user is telling you can be two different things.

I got a good variety of comments back. Constructive thoughts. But I noticed an interesting trend: The most common thing suggested was “Add an undo to the game.” It seems almost everyone who tested the game had asked for an undo option.

I wanted to find the root cause of the “undo” request. I had some friends of mine host a playtest party at their house

During the party I got a lot of great feedback. Just watching someone play my game and see them learn from their mistakes was an incredible experience. But mainly I was watching closely to see if and why anyone was going to request an undo feature. What I saw was surprising.

After the user test is was clear to me that the root cause for undo requests was that the controls were too sensitive for the average player. There were a few other things that were revealed too. People really loved solving the puzzles in the game — the first time. But if they had to restart, they really did not enjoy redoing the puzzles they had already solved. This was another cause of wanting an undo in the game.

This is a great example of looking for the root cause and going to the gemba. You must focus on customers but you must bring thought into how you react. Just doing what they say is likely a bad idea. Ignoring them is also bad. But listening and learning and then adjusting is good.

Related: Pleasing Customers - Confusing Customer Focus - What Could we do Better? - Good Customer Service Example - Find the Root Cause

August 10, 2008

Toyota Winglet - Personal Transportation Assistance

Winglet Personal Mobility Device from Toyota

Toyota has a long term vision. The population of Japan is aging rapidly. Toyota has invested in personal transportation and personal robotic assistance for quite some time. I must admit this new Winglet doesn’t seem like an incredible breakthrough to me (their earlier iUnit seems much better to me - though I am sure much more expensive too). The interest to me is in their continued focus on this market which I think is a smart move. The aging population worldwide (and others) will benefit greatly from improved personal mechanical assistance.

The Winglet is one of Toyota’s people-assisting Toyota Partner Robots. Designed to contribute to society by helping people enjoy a safe and fully mobile life, the Winglet is a compact (you stand just above the wheels and it reaches about the level of your knees) next-generation everyday transport tool that offers advanced ease of use and expands the user’s range of mobility.

The Winglet consists of a body that houses an electric motor, two wheels and internal sensors that constantly monitor the user’s position and make adjustments in power to ensure stability. Meanwhile, a unique parallel link mechanism allows the rider to go forward, backward and turn simply by shifting body weight, making the vehicle safe and useful even in tight spaces or crowded environments.

Toyota plans various technical and consumer trials to gain feedback during the Winglet’s lead-up to practical use. Practical tests of its utility as a mobility tool are planned to begin in Autumn 2008 at Central Japan International Airport (Centrair) near Nagoya, and Laguna Gamagori, a seaside marine resort complex in Aichi Prefecture. Testing of its usefulness in crowded and other conditions, and how non-users react to the device, is to be carried out in 2009 at the Tressa Yokohama shopping complex in Yokohama City.

Toyota is pursuing sustainability in research and development, manufacturing and social contribution as part of its concept to realize “sustainability in three areas” and to help contribute to the health and comfort of future society. Toyota Partner Robot development is being carried out with this in mind and applies Toyota’s approach to monozukuri (”making things”), which includes its mobility, production and other technologies.

Toyota aims to realize the practical use of Toyota Partner Robots in the early 2010s.

On a personal note, I bought some more Toyota stock two weeks ago. The stock had declined a bit recently. Toyota is one of the companies in my 12 stocks for 10 years portfolio.

Related: Toyota Develops Personal Transport Assistance Robot ‘Winglet’ - No Excessive Senior Executive Pay at Toyota - More on Non-Auto Toyota

August 7, 2008

Individual Bonuses Are Bad Management

Gojko Adzic provides a nice post on Mary Poppendieck’s presentation at Agile 2008 on bonus, compensation and motivation: Paying programmers: are bonuses bad and what to do about it?

In software development, it is very hard to establish the effects of individual contributions and good teamwork is key to the project. Most individual compensation schemes, according to the presentation, absorb vast amounts of management time and resources and leave nobody happy, but team compensation strategies are not easy to implement. Mary presented results from HP’s experiments during the beginning of the nineties, when HP allowed 13 local organisations to experiment with team-incentive plans. All programs were discontinued by the 4th year, due to constant changes to the plans which were needed to distribute available money among the teams and a wide dissatisfaction with the plans by employees.

Use profit sharing schemes instead of bonuses to tie people to the organisation goals.
keep in mind the norm of reciprocity — if people feel that they are being treated generously, they will reciprocate it with increased discretionary effort.

As usually Mary Poppendieck provides good advice: Mary Poppendieck webcast on Leadership in Software Development. The idea that bonuses are bad management is one of the more difficult management improvement ideas for people to accept. See related posts for much more on the problems with them and what to do instead.

Related: Interview with Mary Poppendieck - The Defect Black Market - Deming on the problems with targets or goals - Incentive Programs are Ineffective - Problems with Bonuses - Measuring and Managing Performance in Organizations

August 6, 2008

How to Develop Thinking People

Toyota’s Top Engineer on How to Develop Thinking People

Hayashi says, “Developing people requires physical endurance.” Frequent follow up is necessary, in person. It is not acceptable to give an assignment and follow up or scold only after three months, during a progress report meeting. Specific actions and detailed follow up are necessary.

Excellent advice.

Also, when we are required to deliver results with speed, we only give our subordinates small projects so that even if they fail they have time to recover. In the end, we give them the solution. We must firmly carry on the practice of developing thinking people. Mr. Ohno often said to us, “Don’t look with your, look with your feet. Don’t think with you head, think with your hands.” He also taught us, “People who can’t understand numbers are useless. The gemba where numbers are not visible is also bad. However, people who only look at the numbers are the worst of all.”

And more wisdom. Great stuff from Taiichi Ohno, Nanpachi Hayashi and Jon Miller’s translation and great blog.

Related: Respect for People and Taiichi Ohno - Toyota IT for Kaizen - Management Improvement - Workplace Management by Taiichi Ohno - Posts on Respect for People

August 4, 2008

India Lean Management

India’s Economic Times has an interview with James Womack, Now is the time for lean management, with an interesting quote:

When I last visited India in 2002, I looked carefully at several operations of the TVS group in the Chennai area. I found that they were the best examples of lean manufacturing I had ever seen outside of Toyota City. In my mind these facilities completely eliminated any questions as to whether “lean” would work in India. However, I have not visited India in six years and I have no data on the performance of Indian firms on average, so I can’t say what the trend is or how many success stories I might find if I had the time to visit at length. How-ever, I have high expectations for the potential of Indian firms to embrace the full range of lean principles and methods.

I have discussed TVS several times in the past; TVS has won several Deming Prizes.

Related: TVS Group Director on India - Manufacturing, Economy… - Deming Prize 2007 - Indian Deming Prize Winner Expanding - Toyota Chairman Comments on India and Thailand - Curious Cat Lean Manufacturing

August 1, 2008

Management Improvement Carnival #40

Mark Graban is hosting the Management Improvement Carnival #40. Mark recently authored a new book, Lean Hospitals. Health care highlights from this carnival include:

  • Hospital Error - Heparin in the news again (The Lean Thinker Blog): “I am reasonably certain that the two workers who went on “voluntary leave” (yeah, right) will absorb more than their share of blame as the system solves the problem by asking the “Five Who?” questions.”
  • Management 101, 201, 301, and 401 (Paul Levy - Running a Hospital): “The only role of management is to create an environment where people left to their own devices and unsupervised are most likely to engage in behavior that advances the goals of the organization.”
  • Why I Work In Healthcare (Lee Fried - Daily Kaizen): “Great people that were trying to work in a broken system.”
  • Competing Podcast Interview with Mark Graban (Dwight Bowen - Lean Thinking Network): “Most everyone has been aware of the increasing costs of healthcare - the general public is recently becoming more aware of the patient safety and quality risks they face in a hospital. And these are all problems that can be addressed with Lean.”
  • 5S, Poka-Yoke, and Visual Controls (Bryan Lund - TWI Blog): “I need a visual control to tell me if the standard is met, in order to avoid mistakes or failure.”

Related: previous management carnivals - Curious Cat health care article library - Curious Cat Management Improvement blog Health Care posts - improving health care links

Multitasking Decreases Productivity

The problems with multitasking are becoming more and more well know, thankfully. Here is another article on the lower productivity multitasking produces - Multitasking Madness Decreases Productivity by Barbara Bartlein:

In a recent study by Eric Horvitz and the University of Illinois, a group of Microsoft workers took, on average, 15 minutes to return to serious mental tasks, like writing reports or computer code, after responding to incoming e-mail or instant messages. They often strayed off to reply to other messages or browse news, sports or entertainment web sites.

These findings are similar to those of David E. Meyer, a cognitive scientist and director of the Brain, Cognition and Action Laboratory at the University of Michigan. “Multitasking is going to slow you down, increasing the chances of mistakes,” said Meyer. “Disruptions and interruptions are a bad deal from the standpoint of our ability to process information.”

“Many people delusionally believe they’re good at this,” he says. “The problem is that we only have one brain and it doesn’t work that way. In reality, nobody can effectively do more than one remotely complicated thing at a time.”

Related: The Siren Song of Multitasking - Multi-Tasking: Why Projects Take so Long - Flow (the opposite of multitasking)

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