Applied Quality Engineering Education

Classroom projects translate into immediate workplace gains for working professionals in engineering [the broken link was removed]

In the final semester of his UW–Madison master’s degree, Bob Aloisi didn’t just earn a letter grade in his quality engineering class: He saved his company $50,000. It wasn’t the typical classroom outcome — but it wasn’t a typical classroom. As a student in “Quality Engineering and Quality Management,” Aloisi accomplished a major class project in quality improvement at his own workplace.

The project is the capstone experience in the College of Engineering’s award-winning distance-education program, the Master of Engineering in Professional Practice (MEPP) [the broken link was removed]. Designed for mid-career engineers who live and work all over the country, MEPP’s Internet-based curriculum strives to provide knowledge students can apply immediately at their companies.

“Our project was a very good example of the Kaizen approach,” says Aloisi. “It wasn’t one specific thing, a home run type of thing, that we changed to make our improvements.” Instead, his team met its targets through many small steps, including adjustments to equipment settings and better training for machine operators.

Good news. Related: Wisconsin ManufacturingImproving Engineering Education – Teaching Quality Improvement by Quality Improvement in Teaching [the broken link was removed] – The Lean MBA

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USA Healthcare Costs Now 16% of GDP

U.S. Health Spending Estimates [the broken link was removed]:

Health care spending growth in the United States slowed for the third consecutive year in 2005, increasing 6.9 percent compared to 7.2 percent growth in 2004 and 8.1 percent in 2003, the Centers for Medicare & Medicaid services (CMS) reported today.

The 6.9 percent growth in 2005 marks the slowest rate of growth in health spending since 1999, when growth was 6.2 percent. Health care spending reached almost $2.0 trillion in 2005, or $6,697 per person, up from $6,322 per person in 2004.

So the rate at which healthcare spending continues to increase is decreasing. That is better than increasing at an increasing rate. However, it is already a huge drag on the economy and the need is for the expenditures to actually decrease (not slow down the rate of increase) and for performance to improve. There are good things being done but much more is needed. Health care costs are a huge cost for companies.

Health Care Spending in the United States and OECD Countries [the broken link was removed]

This growing gap between health spending in the U.S. and that of other developed countries may encourage policymakers to look more closely at what people in the U.S. are getting for their far higher and faster growing spending on health care.

Related: USA Health Care Costs reach 15.3% of GDP – the highest percentage ever (2 years ago)Health care spending rose at twice the rate of inflation in ’05Health Care Costs Approach $2 Trillion – Bill takes on prescription costs [the broken link was removed]

Posted in Economics, Health care | Tagged , , | 8 Comments

How Do You Run a Business Without Managers

Ask the CHO: How do you run a business without managers

It seems that a lot of the problems seem to come from low to middle management and as someone who is looking to start my own software company I don’t want this to happen in my organization. A no managers approach seems pretty appealing.

So rather than have presidents, vice presidents and managers, all employees had an equal say in running the company. This was backed up by the fact that all employees were also co-owners, every new hire being offered a stake in the company after six months on the job. While I and my two co-founders retained a majority of the shares, this gave us no greater power in making day-to-day decisions.

Obviously this is a fairly special situation. Still I think it is a symptom of poor management practices that leave many wondering what value added “management” provides. Interesting read.
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Posted in Innovation, IT, Management | 1 Comment

Google Millionaires

Last week, in Google’s Answer to Filling Jobs Is an Algorithm, I mentioned Google’s turnover was only 4%. This is the context within which I thought that was impressive: O Googlers, where art thou? by Verne Kopytoff:

For Google, the departures present a new hurdle. Enticing as many old-timers to stay as possible is a priority because, with each farewell party, a piece of the company’s institutional knowledge and culture is lost. “We take a lot of time and care, in particular with our old-timers,” said Stacy Sullivan, Google’s human resources director. “It’s so important that we are paying attention to whether they’re being challenged.”

Google’s initial public offering immediately minted more than 900 millionaires at the company, by one estimate. Even many rank-and-file employees became instantly wealthy. The total has grown over time as its shares have catapulted in value. Financial freedom gave the former Googlers in this article wide latitude in deciding what to do with their lives. The reasons for leaving are many: Alack of new challenges, ambivalence about the company’s growth and a desire for a career change are just a few.

Google was named the best place to work in America (this is a horrible web site by the way – forcing a new click for about every sentence of info).

Posted in Google, Management | 1 Comment

Breakthrough Thinking the Toyota Way

The Elegant Solution: Breakthrough Thinking the Toyota Way (pdf) by Matthew May:

One Million. That’s how many ideas Toyota implements each year. Do the math: 3000 ideas a day. That number, more than anything else, explains why Toyota appears to be in a league all their own, playing offense on a field of innovation, while their competitors remain caught in a crossfire of cost-cutting. Here’s the thing: it’s not about the cars. It’s about ideas. And the people with those ideas.

I believe the best definition of innovation is the one given by David Neeleman, founder and CEO of JetBlue: “Innovation is trying to figure out a way to do something better than it’s ever been done before.” Thomas Edison would agree. Asked his philosophy, he said: “There’s a way to do it better—find it.”

Very worthwhile read. And if you like it try the book – The Elegant Solution: Toyota’s Formula for Mastering Innovation by Matthew E. May and Kevin Roberts. The drumbeat of positive Toyota and Google news just keeps going – and with good reason.

Related: Management Advice FailuresToyota Production System blog postsinnovation blog postsCEO Flight Attendant
via: Guy Kawasaki

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Making Better Decisions

Comment on: When Times Are Tough, Do You Make Better Decisions? [the broken link was removed]

When times are tough you are more likely to do something – take some action, make some decision. When times are good, many are content to let things go: not make any tough decisions or any that might upset someone… When in a bind it is accepted that something has to be done, so you can often get past the “we are doing ok, why make us change…” objections.

Similarly it can encourage those to question a decision they don’t agree with (instead of, when times are good, thinking: well I disagree but I will just go along…). So it is possible that in a dysfunctional management system (which is alot of them) it can seem that when times are tough better decisions are made.

In addition, when times are bad any decision might seem good when things improve due to regression to the mean. Peter Scholtes illustrated this with a boss who yelled at his workers when performance become too bad. And his belief that this helped was reinforced as performance improved after the “tough talk.” Of course, the perception of increased performance may not have anything to do with the “tough talk.”
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Posted in Management, Process improvement, Psychology | Tagged , | 1 Comment

Competing On The Basis Of Speed

Competing On The Basis Of Speed (webcast) [the broken link was removed] by Mary Poppendieck discussing complexity, queuing theory, and constant innovation. Google posts presentations given at the Googleplex (including this one). In this one, Mary presents lean ideas as they related to software development.

Related: post on software developmentlean software developmentarticles by the PoppendiecksCompeting on the Basis of Time

Posted in Google, IT, Lean thinking, Management, Software Development, webcast | 1 Comment

The Psychology of Too Much Choice

An understanding of psychology is one of the four components of Dr. Deming’s management system. This understanding lies behind practices such as: driving out fear, respect for people and eliminating slogans.

In an organization all the components (practices, processes, investments, training, people, suppliers, customers…) interact with the others. Dr. Deming tried to develop a system that took that reality into account. This reminds me of Einstein’s thought that “Everything should be made as simple as possible, but not simpler.” Often people asked Dr. Deming for simple rules. To me, they asked for him to provide an answer that was simpler than possible (to be effective).

The choice he provided was to learn about understanding variation, systems, psychology and the theory of knowledge and to then apply that understanding to management. I think perhaps it is easier to market a management system that has been made simple (in my view too simple but…). This is stretching the notion of choice a bit, but I think the equating the notion of too much choice and complexity makes sense – as far as making this point goes anyway.

When focusing on providing solutions to customers, it is important to know that too much choice can be demotivating. As When Choice is Demotivating: Can One Desire Too Much of a Good Thing? [the link broken by columbia.edu was removed] by Sheena S. Iyengar and Mark R. Lepper discusses:
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Posted in Customer focus, Deming, Management, Psychology | Tagged | 2 Comments

Baldrige in Education

Superintendent’s method used by Boeing, Motorola [the broken link was removed] by Helen Gao

The three M’s – managing for innovation, management by fact and market focus – are unfamiliar phrases to most people in the educational establishment. But don’t be surprised if, in the coming months, leaders of the San Diego Unified School District start spouting corporate-speak. Management principles long embraced by companies seeking a competitive edge are making inroads in the public school system, as Superintendent Carl Cohn pushes the district toward “Becoming America’s best.”

When the training was over, one question on employees’ minds was: “Will the district follow through with Baldrige?” After all, other improvement efforts had come and gone.

Good question. I think the Baldrige criteria can help, but it is not the most effective strategy (it is too often just a surface attempt to apply some “tools” without real change). I believe improvement methods, strategies and tools can work for education but the education area has special factors to consider. I suggest the following resources: David Langford, Alfie Kohnbooks and articles by Kohn, Applying Lean Tools to University Courses, Ivan Webb’s School Improvement website [the broken link was removed], books on education improvement, k-12 education improvement links, Jenks Public Schools – 2005 Baldrige Award [the broken link was removed] – UW- Madison Office of Quality Improvement, Improving Engineering Education

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Z-List: Management Blogs

Ok, I am going to build upon the z-list meme. Hopefully my modification will be seen as acceptable. I have modified the zlist to shorten it to management related blogs. I was added to one with: Making Z-List and Checking It Twice. I don’t really see how Seth’s blog is a “z-list blog” [more like a-list] but it is the first place I saw the a z-list and knowHR included it and it is excellent so I included it.

Management Z-List:

Bob Sutton
Creating Passionate Users
Seth Godin

Curious Cat Management Improvement Blog
Chief Happiness Officer
H.R. eSources [the broken link was removed]
Lean Blog
Evolving Excellence [the broken link was removed]
Panta Rei
Shmula
Got Boondoggle?
Lean Builder
KnowHR Blog [the broken link was removed]

For other bloggers that want to pick this up and add to it (via the KnowHR): “The trick is to pick up this list from here and add your blog to the bottom along with a few more Z-List links that you think people should know about. I copied the list from Seth by grabbing links in the page source…you can do the same.”

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