Category Archives: Investing

Printer Product Development Using Design of Experiments

Posted on June 29, 2008 by John Hunter

MEMS development in less than half the time by Christopher N. Delametter, Eastman Kodak Company The traditional approach to optimizing a product or process using computer simulation is to evaluate the effects of one design parameter at a time. The problem with this approach is that interactions between design factors and second-order effects are likely to result in a locally optimized design that will provide far less performance than the global optimum. Kodak researchers use DOE to develop tests that … Continue reading →

Posted in Design of Experiments, Investing, Systems thinking | Tagged

Losses Covered Up to Protect Bonuses

Posted on March 24, 2008 by John Hunter

Does it surprise you to learn traders would cover up losses to protect bonuses? It shouldn’t, it happens over and over. Would it surprise you that almost any bonus (or quota) scheme increases the odds that the data will be doctored to meet the goals? It shouldn’t. Intelligent measures to make such doctoring difficult can help reduce the practice. But it is a likely risk of any such goal. As we have quoted Brian Joiner as saying: there are: “3 … Continue reading →

Posted in Deming, Investing, Management, Psychology | Tagged , | 8 Comments

Management Advice from Warren Buffet

Posted on March 4, 2008 by John Hunter

As usual, Warren Buffett’s letter to shareholders is packed with wisdom. He is best know for his investing genius but his writing provides great thoughts for managers also: Berkshire Hathaway 2007 Letter to Shareholders: We will soon purchase 60% of Marmon and will acquire virtually all of the balance within six years. Our initial outlay will be $4.5 billion, and the price of our later purchases will be based on a formula tied to earnings. … This deal was done … Continue reading →

Posted in Economics, Investing, Management | Tagged , , | 1 Comment

12 Stocks for 10 Years – Adding Danaher

Posted on February 5, 2008 by John Hunter

With Microsoft’s offer for Yahoo I am replacing Yahoo with Danaher in the 12 Stocks for 10 Years portfolio. Other stocks in the portfolio include Google up 137% since purchased, PetroChina up 132%, Amazon up 106% and Toyota up 44%. I have considered Danaher since creating the portfolio and now looks like an attractive time to make the change. Other stocks I like now are Google, PetroChina, Toyota and Tesco. The bias toward companies that practice what I discuss in … Continue reading →

Posted in Investing

Danaher Expands Lean Thinking One Acquisition at a Time

Posted on September 24, 2007 by John Hunter

Sybron Focuses on Operations Nearly 18 months into becoming part of Danaher Corp., life is different at Sybron Dental Specialties Inc. “Sybron was really a sales and marketing focused organization … and operations (were) part of supporting that,” said Don Tuttle, president of specialty products for Sybron, which is moving from Orange to Anaheim next year. “What Danaher brought to us, and has been successful with, is bringing us an operations focus.” Sybron has adopted principles known as Danaher Business … Continue reading →

Posted in Investing, Lean thinking, Management, Management Articles, Manufacturing

Amazon’s Amazing Achievement

Posted on July 24, 2007 by John Hunter

I have mentioned I like the way Amazon, and Jeff Bezos, have been managing in several posts. Recently Amazon has added very strong financial results to that portfolio of things they do well. Amazon earnings announcement: Net sales increased 35% to $2.89 billion in the second quarter, compared with $2.14 billion in second quarter 2006. Excluding the $46 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 33% compared with second quarter 2006. … Continue reading →

Posted in Innovation, Investing, IT | Tagged , , ,

Google Exceeded Planned Spending on Personnel

Posted on July 19, 2007 by John Hunter

Often people have trouble understanding Dr. Deming’s disapproval of arbitrary numerical targets. What he was trying to prevent is what many see every day, such as managing to quarterly earnings targets. There are several problems with numerical goals but in here lets focus on one. The change from managing for what is best for the business to managing to hit a target. Google Profit Trails Analyst Estimates; Shares Slide: The company hired more people than expected last quarter, Chief Executive … Continue reading →

Posted in Deming, Google, Investing, Management, Performance Appraisal, Psychology, quote | 3 Comments

Eliminating Quarterly Earnings Guidance

Posted on May 25, 2007 by John Hunter

It is good to see more people understand the bad practice of excessive short term focus on quarterly profits. It is also a bit amusing to see the Chamber of Commerce pushing an idea Deming was called unrealistic for pushing. The right way to handle a surprise: The U.S. Chamber of Commerce is calling for companies to halt “earnings guidance,” or coaching analysts, toward a precise target for quarterly profit. “The incentive to meet that number is an incentive to … Continue reading →

Posted in Deming, Google, Investing, Management, Systems thinking | 1 Comment

Investors Business Daily on Deming

Posted on March 10, 2007 by John Hunter

He Pointed Firms To Quality [the broken link was removed] by Kirk Shinkle: Management responsibility took on an almost moral role for Deming. Failure in business and the resulting unemployment could be blamed almost entirely on leadership. Leaders, he believed, should commit to their employees, not hop around from job to job. He would likely have eschewed today’s renewed climate of zealous private equity buyouts and an increasing trend toward mobile management. In the introduction to his 1983 book “Out … Continue reading →

Posted in Deming, Economics, Investing | Tagged | 1 Comment

Firing Workers Isn’t Fixing Problems

Posted on February 26, 2007 by John Hunter

I commented on a post on Evolving Excellence that Jim Jubak is a wall street guy who has good ideas. He has posted another good article: Firing workers isn’t fixing problems [the broken link was removed] Both CEOs, Edward Zander at Motorola and Jeffrey Kindler at Pfizer, of course, kept their jobs and their paychecks. According to Motorola’s latest proxy statement, Zander received a salary of $1.5 million, a $3 million bonus and $2.3 million in restricted stock in 2005. … Continue reading →

Posted in Investing, Lean thinking, Management | Tagged , , , | 3 Comments

Danaher – Lean Thinking

Posted on February 14, 2007 by John Hunter

A Dynamo Called Danaher [the broken link was removed] DBS, as it’s called, is a set of management tools borrowed liberally from the famed Toyota Production System. In essence, it requires every employee, from the janitor to the president, to find ways every day to improve the way work gets done. Such quality-improvement programs and lean manufacturing methods have been de rigueur for manufacturers for years. The difference at Danaher: The company started lean in 1987, one of the earliest … Continue reading →

Posted in Investing, Lean thinking, Management Articles, Manufacturing, Toyota Production System (TPS) | Tagged , | 1 Comment

10 Stocks for 10 Years Update

Posted on December 11, 2006 by John Hunter

In April of 2005 I wrote: 10 stocks for 10 years. At that time I also created a fund through Marketocracy. Thus far the portfolio is up 15.8% annually (versus 15.3% for the S&P 500) – see more below… I have made minor changes to the fund during the year (less than 4% turnover). As I mentioned in June I would buy Tesco, but Marketocracy does not support it. Google is still doing quite well, up 122% since inception. The … Continue reading →

Posted in Investing | 1 Comment

Housing and the Economy

Posted on September 4, 2006 by John Hunter

Chart of home values from 1890 through 2006 (the chart is a misleading because it crops the lower end at 60 (not 0). The values go from 60-200 (it is an index showing the cost of the standard house in thousands of 2006 $s. House prices have ranged from $66,000-200,000 for the standard house from 1890 to 2006, and never above $130,000 until 2001. Larger view of the graph (via the New York Times) and the data set from Robert … Continue reading →

Posted in Economics, Investing | 2 Comments

Danaher Practicing Lean Thinking

Posted on August 22, 2006 by John Hunter

Manufacturer’s Acquisition Strategy Sets It Apart From The Pack [the broken link was removed], Investors Business Daily: “It’s adapted from the Japanese Kaizen system,” Holmstead said. “Kaizen is a way of removing waste and standardizing processes and bringing underperforming or slow-growth companies with maybe single-digit margins up to midteen margins.” The keys are standardization, measurement and innovation — all directed toward the goal of continuous improvement. “It’s basically a set of tools that allows Danaher to make whatever widget they … Continue reading →

Posted in Investing, Lean thinking, Management, Management Articles, Manufacturing | Tagged , , | 1 Comment

Gladwell (and Drucker) on Pensions

Posted on August 21, 2006 by John Hunter

The Risk Poolhttps://management.curiouscatblog.net/2006/08/21/gladwell-and-drucker-on-pensions/ by Malcolm Gladwell (author of The Tipping Point and Blink): The most influential management theorist of the twentieth century was Peter Drucker, who, in 1950, wrote an extraordinarily prescient article for Harper’s entitled “The Mirage of Pensions.” It ought to be reprinted for every steelworker, airline mechanic, and autoworker who is worried about his retirement. Drucker simply couldn’t see how the pension plans on the table at companies like G.M. could ever work. “For such a plan … Continue reading →

Posted in Books, Economics, Health care, Investing, Management, Popular, Systems thinking | Tagged , , , , , , | 1 Comment

Improving the 401(k) System

Posted on August 18, 2006 by John Hunter

401(k)s are a great retirement investment vehicle (for those in the USA). Since the introduction of 401(k)s they have proved very advantageous to those saving for their retirement. See our previous post on: Saving for Retirement. However, the experience thusfar shows a weaknesses in the system. Many people don’t even take advantage of a 401(k) to save for their retirement. From a public policy perspective it creates a huge long term problem. The economy will end up with millions of … Continue reading →

Posted in Economics, Investing, Management | 1 Comment