Tag Archives: Six sigma

Management Improvement Blog Carnival #162

The Curious Cat management blog carnival is published 3 times a month with hand picked recent management blog posts. I also collect management improvement articles for the Curious Cat Management Articles site; an RSS feed of new article additions is available.

  • Stress Solutions, Not Blame by Kevin Meyer – “My organization often hears me say that 90% of problems are the result of poor processes, not people, and 9%… are probably due to poor leadership.”
  • The Real Leadership Lessons of Steve Jobs by Walter Isaacson – “Caring deeply about what customers want is much different from continually asking them what they want; it requires intuition and instinct about desires that have not yet formed.”
  • Kanban and Lean Startup: Making the Most of Both by Alexei Zheglov – “Kanban is an important process-improvement tool for technology organizations. Lean startup is a new approach to discovering new, innovative ways to do business. To get the most from both, it is important to understand how they relate to each other.”
  • Is Agile too inefficient for start-ups? by Jason Yip – “You Ain’t Gonna Need It was about creating a culture of simplicity (you must justify building more than you need to), which tends to preserve cash, versus a culture of anticipation (you must justify why you’re not building something that handles every imaginable scenario), which tends to burn cash as if it magically falls from the heavens.”
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Why Use Lean if So Many Fail To Do So Effectively

If less than 1% of companies are successful with Lean, why are we doing it?

Lots of us are not. I would say the efforts I see “fail” are because they don’t do it. They have something they call TQM, six sigma, lean management or whatever and try out 10-30% of it in some half-measures, with big doses of Dilbert’s pointy haired boss methods and then don’t get great results. Wow.

The biggest complaint (with some merit) I see is why is lean/Deming/six sigma… so hard to actually do. If companies constantly fail to do it at all (even when they use the name) isn’t that an issue. Isn’t that a weakness of the “solution.” My answer is: yes. The caveat is, until someone comes up with the management system that both gets the results using Deming’s management ideas can, and is super easy for organizations to actually fully adopt (and have the great success that doing so provides) I know of nothing better than trying to do these things.

Certainly I believe you are much better off attempting to use Deming, lean or six sigma than listen to someone that tells you they have management instant pudding that will give you great results with no effort.

My belief is that a partial success rate is much higher than 1%. While many organization never go beyond slapping a few good tools on a outdated management system those few tools actually have good results. Maybe 50% of the implementations are so lame they have almost no positive results (not even getting improvement worth the time and effort). They could be seen as “failures,” to me. Those that actually have a right to say they are practicing “lean” I would say is a pretty small number but still above 1%?

There is also an advantage to this stuff being hard to do. You really don’t have to invent anything new. If you just have persistence and keep continually improving along the path applying ideas proven over decades from Deming, Ohno, McGregor, Christensen, Drucker, Scholtes, Womack, Roger Hoerl (six sigma)… you have a great advantage over all those organizations that ignored the ideas or made a bit of effort and then gave up.

Related: Engage in Improving the Management SystemRethinking or Moving Beyond Deming Often Just Means Applying More of What Dr. Deming Actually SaidManagement Advice FailuresManagement Improvement FlavorsHas Six Sigma Been a Success?

2011 Management Blog Roundup: Stats Made Easy

The 4th Annual Management blog roundup is coming to a close soon. This is my 3rd and final review post looking back at 2001, the previous two posts looked at: Gemba Panta Rei and the Lean Six Sigma Blog.

I have special affinity for the use of statistics to understand and improve. I imaging it is both genetic and psychological. My father was a statistician and I have found memories of applying statistical thinking to understand a result or system. I also am comfortable with numbers, and like most people enjoy working with things I have an affinity for.

photo of Mark Anderson

Mark Anderson

Mark Anderson’s Stats Made Easy blog brings statistical thinking to managers. And this is not an easy thing to do, as one of his posts shows, we have an ability to ignore data we don’t want to know. Wrong more often than right but never in doubt: “Kahneman examined the illusion of skill in a group of investment advisors who competed for annual performance bonuses. He found zero correlation on year-to-year rankings, thus the firm was simply rewarding luck. What I find most interesting is his observation that even when confronted with irrefutable evidence of misplaced confidence in one’s own ability to prognosticate, most people just carry on with the same level of self-assurance.”

That actually practice of experimentation (PDSA…) needs improvement. Too often the iteration component is entirely missing (only one experiment is done). That is likely partially a result another big problem: the experiments are not nearly short enough. Mark offered very wise advice on the Strategy of experimentation: Break it into a series of smaller stages. “The rule-of-thumb I worked from as a process development engineer is not to put more than 25% of your budget into the first experiment, thus allowing the chance to adapt as you work through the project (or abandon it altogether).” And note that, abandon it altogether option. Don’t just proceed with a plan if what you learn makes that option unwise: too often we act based on expectations rather than evidence.

In Why coaches regress to be mean, Mark explained the problem with reacting to common cause variation and “learning” that it helped to do so. “A case in point is the flight instructor who lavishes praise on a training-pilot who makes a lucky landing. Naturally the next result is not so good. Later the pilot bounces in very badly — again purely by chance (a gust of wind). The instructor roars disapproval. That seems to do the trick — the next landing is much smoother.” When you ascribe special causation to common cause variation you often confirm your own biases.

Mark’s blog doesn’t mention six sigma by name in his 2011 posts but the statistical thinking expressed throughout the year make this a must for those working in six sigma programs.

Related: 2009 Curious Cat Management Blog Carnival2010 Management Blog Review: Software, Manufacturing and Leadership

2011 Management Blog Roundup: Lean Six Sigma Blog

For my contribution to the 4th annual management blog roundup I am taking a look at 3 management blogs. In this post I look back at the year that was at the Lean Six Sigma blog.

We are lucky to have so many great management blogs to read all year. They provide inspiration and great advice to managers. Though, one of my frustrations is how few good six sigma resources there are online. In this area we are unlucky. The disparity between the amazingly high number of very high quality lean blogs and agile software development blogs compared to almost nothing of similar quality for six sigma content is dramatic (and unfortunate).

photo of Ron Pereira

Ron Pereira

Ron Pereira is the managing partner of Lean Six Sigma Academy and the Gemba Academy which provide high quality online lean manufacturing training. One of the ways Ron stands out are his posts that make continuous improvement a family affair (which I appreciate given that I grew up in such an environment).

In Let’s Dance he looks at understanding psychology as it relates to working with groups/teams (in this case his daughters soccer team): “my coaching style and my assistant coach’s style had become a bit too intense and, as a result, the girls were playing tight and scared to make mistakes… We kept this ‘dancing’ theme alive for the rest of the season. During warm-ups before games I, and the girls, would dance like fools. The other teams watched us like we were nuts… but we didn’t care. We kept right on laughing and dancing.” Take a look at this post, it really packs in a ton of great thoughts for managers.

Another way Ron stands out is with his webcasts on discussion lean terms (the gemba glossary). In this webcast he looks at the topic of standardized work processes.

One of the great things about blogs is the focus on what people really deal with day in and day out. It is nice to read about a great management system in a book like the Leader’s Handbook by Peter Scholtes. But what do you do when you are in a much more common situation, where others don’t share your desire to reshape the management system into something new and better? Ron took a look at this in his post: 3 Things You Can Do When Your Manager Doesn’t Support Continuous Improvement: “The best way to combat this is to demonstrate the value without them asking you to. In other words, make something better and let them know about it. And when I say make it better I mean it. Do something to positively impact the business.”

Another wonderful family related post by Ron this year was Training Wheels – “Like most young people my boy was itching to take the training wheels off his bicycle… The best part of all is he’s learning to solve his own problems. He’s not waiting for people to hand him things on a platter… How many times do we continuous improvement practitioners moan and groan about the lack of management support when, in actuality, even though they may not care they won’t stop you from making things better?”

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Networking is Valuable But Difficult to Quantify

Networking works incredibly well. Unfortunately it isn’t as simple as peddling your bike where you want to go. The benefits of networking are unpredictable and not easy to control (to specifically target – you can do this, it just has fairly uncertain results). So networking can seem like you put in all this effort peddling up hill day after day, month after month, year after year, and yet you never get to see the beautiful rainbow or end up at a wonderful ocean beach.

However it is well worth it, especially for those that have valuable skills and experience. To some extent it might work just to get opportunities anyone with a decent attitude could get. But networking is most effective, I think, when you have special skills that those in the community can share with those that have opportunities and give you a decent shot at a job. A big reason this works is that the job market is very inefficient – thus networking can greatly increase your odds (if it were efficient this would matter much much less).

I have been able to get jobs and consulting as a result of networking. It didn’t give me jobs, I couldn’t have gotten otherwise, but it allowed to know of opportunities, to be sought out by others, and to be seriously considered when I approached others.

I have long believed it is very valuable to build a personal brand online (for knowledge workers anyway). The return for doing so may well be difficult to measure. But it can definitely help open doors and give you opportunities for jobs and consulting.
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One factor at a time (OFAT) Versus Factorial Designs

Guest post by Bradley Jones

Almost a hundred years ago R. A. Fisher‘s boss published an article espousing OFAT (one factor at a time). Fisher responded with an article of his own laying out his justification for factorial design. I admire the courage it took to contradict his boss in print!

Fisher’s argument was mainly about efficiency – that you could learn as much about many factors as you learned about one in the same number of trials. Saving money and effort is a powerful and positive motivator.

The most common argument I read against OFAT these days has to do with inability to detect interactions and the possibility of finding suboptimal factor settings at the end of the investigation. I admit to using these arguments myself in print.

I don’t think these arguments are as effective as Fisher’s original argument.

To play the devil’s advocate for a moment consider this thought experiment. You have to climb a hill that runs on a line going from southwest to northeast but you are only allowed to make steps that are due north or south or due east or west. Though you will have to make many zig zags you will eventually make it to the top. If you noted your altitude at each step, you would have enough data to fit a response surface.

Obviously this approach is very inefficient but it is not impossible. Don’t mistake my intent here. I am definitely not an advocate of OFAT. Rather I would like to find more convincing arguments to persuade experimenters to move to multi-factor design.

Related: The Purpose of Factorial Designed ExperimentsUsing Design of Experimentsarticles by R.A. Fisherarticles on using factorial design of experimentsDoes good experimental design require changing only one factor at a time (OFAT)?Statistics for Experimenters

Factorial Designed Experiment Aim

Multivariate experiments are a very powerful management tool to learn and improve performance. Experiments in general, and designed factorial experiments in particular, are dramatically underused by managers. A question on LinkedIn asks?

When doing a DOE we select factors with levels to induce purposely changes in the response variable. Do we want the response variable to move within the specs of the customers? Or it doesn’t matter since we are learning about the process?

The aim needs to consider what you are trying to learn, costs and potential rewards. Weighing the various factors will determine if you want to aim to keep results within specification or can try options that are likely to return results that are outside of specs.

If the effort was looking for breakthrough improvement and costs of running experiments that might produce results outside of spec were low then specs wouldn’t matter much. If the costs of running experiments are very high (compared with expectations of results) then you may well want to try designed experiment values that you anticipate will still produce results within specs.

There are various ways costs come into play. Here I am mainly looking at the costs as (costs – revenue). For example the case where if the results are withing spec and can be used the costs (net costs, including revenue) of the experiment run are substantially lower.
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Problems with Management and Business Books

We really need to change how we improve the practice of management. Far too often management strategies are just the latest fad from some new book that successfully marketed an idea. The marketing effectiveness of a book, or consultant, has very limited correlation to their ability to improve management, in my experience. It is often true that they make very good keynote speakers, however. So if you want an entertaining keynote speaker looking at the authors of the best selling business books may make sense. But if you want to improve management, I don’t see much value in doing so.

Year after year we have the same basic business books repackaged and marketed. They present a magic bullet to solve all your problems. Except their bullet is far from magic. Usually it does more harm than good.

They amazingly oversimplify things to make their bullet seem magic. This also fails miserably in practice. There are usually not good management options that are simple and easy. Usually the answers for what should be done is a lot of “it depends,” which people don’t seem to like.

Authors fail to place their book (or their trademarked strategy they hope turns into a movement/fad) in the appropriate context. Most books just take a few good ideas from decades old practices add a new name and leave off all references to the deep meaning that originally was there. I guess quite often the authors don’t even know enough about management history to know this is the case; I guess they really think their minor tweak to a portion of business process re-engineering is actually new. This also would make it hard for them to place their ideas within a management philosophy.

On a related note, I find it interesting how different the lean manufacturing and six sigma communities are online (and this has been going on for more than a decade). One of the problems with six sigma is there is so little open, building on the practices of six sigma. Everyone is so concerned with their marketing gimmick for six sigma that that don’t move forward a common body of work. This is a serious problem for six sigma. Lean manufacturing benefits hugely from the huge community of those building openly on the body of knowledge and practice of lean. You can find 10 great lean manufacturing blogs without trouble. You will have difficulty finding 3 good six sigma blogs (and even those spend most of the time on other areas – often lean thinking).
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Engage in Improving the Management System

To actually improve management you need to engage in continual improvement of your management systems. This requires doing the hard work of challenging complacency. The job of those improving the practice of management is not to make everyone happy and just ignore that the words about improvement are not actually carrying through to changes in behavior.

Do Executives “Get It?”

So many times executives spout the importance of new initiatives like wellness programs, safety programs, or improvement projects like Lean, Six Sigma, etc. They talk about how great they are and how everyone should embrace them so the company can improve, but when push comes to shove, their actions indicate they really don’t believe in them.

If you are trying to bring about change you need in-process indications of actual success at improving the management system. Instead it seems to me, most of the time, the focus is on spinning what is being done to convince others that what is being done is good. This is not helpful and not useful.

Without in-process indications of how the movement to a better management system is performing the pattern is all too common. People want to show they are doing a good job (which often includes not being too negative – because if they criticize results they can be branded as negative). So instead we end up with actions that would be used if one assumed that while we had problems with the last 4 management fads we implemented, now we have this wonderful new idea it will avoid all the problems.

So we start our new process, and write up reports and presentations for meetings talking about our successes. We are careful to ignore any warning signs. Then, after 1, 2… years (in a good economy this can last quite a bit longer), the boss says the results are not improving, this isn’t working. Everyone quickly agrees and the improvement effort is dropped. Usually there will be a period of time taken until and a new fad is found that everyone agrees is wonderful for 2-5 years until they then all agree was a failure. Repeat for the rest of your career.

To break this cycle and actually continually improve we can’t go along with the in-process indications that the management improvement system is not really working. We need to seek out indications that it is not working and address those issues and build a strong continually improving management system.

Related: Management Advice Failuresflavors of management improvement effortsmanage what you can’t measureFederal Government Chief Performance Officer (a specific example of the repeated failure to improve), just pretending the failures in the past didn’t exist doesn’t help the current effort

Good Process Improvement Practices

Good process improvement practices include:

  • standardized improvement process (pdsa, or whatever)
  • Going to the gemba – improvement is done where the work is done. You must go to the where the action is. Sitting in meeting rooms, or offices, reading reports and making decisions is not the way to improve effectively.
  • evidence based decision making, data guides decision making rather than HiPPO
  • broad participation (those working on the process should be the ones working on improving it and everyone in the organization should be improving their processes)
  • measurable results that are used to measure effectiveness
  • pilot improvement on a small scale, after results are shown to be improvements deploy standardized solutions more broadly
  • visual management
  • Standardized work instructions are used for processes
  • one of the aims of the improvement process should be improving peoples ability to improve over the long term (one outcome of the process should be a better process another should be that people learned and can apply what they learned in future improvements)
  • quality tools should be used, people should be trained on such tools. The tools are essentially standardized methods that have been shown to be effective. And most organization just ignore them and struggle to reinvent methods to achieve results instead of just applying methods already shown to be very effective.
  • the improvements are sustained. Changes are made to the system and they are adopted: this seems obvious but far too often process improvements are really just band-aids that fall off a few weeks later and nothing is done to sustain it.
  • goals, bonuses and extrinsic motivation are not part of the process
  • The improvement process itself should be continually improved

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