More Lean Podcasts

New from the Lean Blog: Jamie Flinchbaugh on Educating Leadership
Previously: Jim Huntzinger on Lean Accounting, Norman Bodek on Toyota’s recent quality issues and lean leadership and Jamie Flinchbaugh on Lean Leadership. As expected these are well worth listening to.

Related: management webcast postslean thinking articles and online resourcesToyota production system postsarticles by Jamie Flinchbaugh

Posted in Lean thinking, Management, webcast | Comments Off on More Lean Podcasts

The Lean MBA

Kevin Meyer recaps the ideas of Improving Management Education [the broken link was removed] by M.L. Emiliani in his post – The Lean MBA. I suggest reading his post and the original article.

In the Curious Cat Science and Engineering blog, The Future is Engineering points to 2 great essays on the secret of Silicon Valley. Guy Kawasaki puts it well, though in my opinion far to kind to our current MBA system (the inordinate focus on accounting does actual harm above and beyond the harm of ignoring what managers should learn):

If I had to point to the single biggest reason for Silicon Valley’s existence, it would be Stanford University—specifically, the School of Engineering. Business schools are not of primary importance because MBAs seldom sit around discussing how to change the world with great products.

Some previous posts here that talk about similar ideas: The Purpose of OrganizationsManagement Training ProgramPerformance Appraisal ProblemsFind the Root Cause Instead of the Person to BlameRespect for PeopleManagement Advice FailuresWhat is Wrong with MBA’sCommon Data Analysis ProblemManage what you can’t measure

Posted in Education, Lean thinking, Systems thinking | Tagged , | 1 Comment

European Blackout: Human Error-Not

German utility E.On says major European blackout was caused by human error [the broken link was removed]

Germany utility E.On AG said Wednesday that a European-wide blackout earlier this month that left millions without power was the result of human error and not any technical glitches.

The Duesseldorf-based company said the power outage, which led to blackouts in parts of Germany, France, Belgium, Italy, Portugal and Spain on Nov. 4, was not caused by a lack of proper maintenance or enough investment in transmission grids and facilities.

The blackout was caused after a high-voltage transmission line over a German river was turned off in an aborted attempt to allow a newly built Norwegian cruise ship to pass safely under it.

That triggered a blackout that briefly left 10 million people without power, stopping trains in their tracks and trapping people in elevators.

Ok, the focus seems to be that we didn’t do anything wrong, just some “human” made an error, which seems to be implied is out of their control. Why would the organization not be responsible for the people and the system working together? Management needs to create systems that work. That system includes people and equipment and process management and suppliers…

E.ON says human error responsible for Nov 4 power outage [the broken link was removed]:

It said that its control centre shut down part of an ultra-high voltage transmission line without checking whether the outage of a second transmission line might overload the power grid.

About half an hour later there was an outage at a second transmission line, which ultimately created a domino effect that led to the temporary disconnection of the European interconnected power grid.

The German utility said that all systems reacted in accordance with standard procedures, effectively preventing a complete blackout across Europe.

It seems obvious the process was not well designed if they believe a mistake was made that led to the tens of millions of people being without power. Failing to admit that the process was designed poorly and needs to be improved is troubling. Blaming “human error” does not help or help improve in the future (and is not a way to develop a culture that respects people). And it reinforces the notion that this event is due to one special cause (or 2…). It seems to me, even with this very little evidence at hand, that this is a system problem.

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Posted in Customer focus, Lean thinking, Management, Process improvement, Quality tools, Respect | Tagged , , , , , , | 2 Comments

Fast Company: What drives Toyota?

Very good article – What drives Toyota? [the broken link was removed] by Charles Fishman:

So a team of assembly employees made a real decision. Don’t make the worker pick the parts; let him focus on installing them. The idea seems obvious in retrospect: Deliver a kit of presorted visors and seat belts–one kit per car, each containing exactly the right parts. The team applied the simplest technology available, the blue Rubbermaid caddy. “We went just down the road to Wal-Mart and bought them,” Artrip says. Now, the line worker doesn’t have to make any decisions at all. Just grab the handle of the blue tote like a lunch pail and step into the car.

Deceptively simple, like so much of the Toyota Production System. And that simplicity and the action is so important to successful application of the ideas.

This is exactly the kind of work Artrip has spent more than half his career at Toyota doing: looking for ways to make the assembly line faster, simpler, safer–ways to make it easier to do the work perfectly. Continuous improvement is not some add-on to the real work, it isn’t some special project Artrip has to do on top of his routine responsibilities, nor is he a guy who parachutes into the assembly line from an engineering building somewhere else. It is what he comes to the factory every day thinking about. It isn’t exhausting, it’s exhilarating.

Related: Not Innovation but Still InterestingTrust: Respect for People10 Stocks for 10 Years Update

Posted in Management, Manufacturing, Toyota Production System (TPS) | 1 Comment

Sub-Optimize

From the “you call this agile?” department by Joel Spolsky:

Yes, context switching is painful. Yes, you need to take into account the costs of context switching when you interrupt someone’s work. But every decision has pros and cons and when I hear a manager who is just talking about the cons without considering the pros, that manager is not doing their job.

This is a simple article about basically choosing to sub optimize a part to optimize the whole. One of management’s roles is to determine when to trade a loss to one part of the system for the sake of the overall system. One of the big losses for software development is interruptions which distract developers.

The general consensus is that the loss from interrupting developers is much greater than for interrupting most other forms of work and therefor a great deal of effort is placed on improving the system to allow developers to focus. However, that should not prevent decisions that factor in that loss and conclude that taking that loss is worth the gain (to the rest of the system).

Related: Management Science for Software EngineeringStretching Agile to fit CMMI Level 3post on Joel Spolsky’s ideasJoel Management

Posted in Customer focus, IT, Management, Software Development, Systems thinking | 2 Comments

TPS and Jidoka

TPS & Jidoka, interview of Tomo “Tom” Harada by Art Smalley:

There are two different parts to Jidoka. The first meaning is to separate man from machine. It was normal in the original parent company for a single young woman to operate many machines since they were automated.

So when Mr. Ohno came to the automotive company after WWII and saw one man operating one machine tool he thought that it was strange and inefficient. He embarked upon a path of breaking down the notion of one man one machine in the engine shops. Instead of “monitoring” machines the operator was to walk between two machine tools and keep them both up and running. Then three machines and four machines and so on.

Related: TPS v. Lean ManufacturingOrigins of the Toyota Production SystemJidoka descriptionblog posts on the Toyota Production System

Posted in Lean thinking, Management, Manufacturing, Quality tools, Toyota Production System (TPS) | Comments Off on TPS and Jidoka

Ackoff’s F-laws: Common Sins of Management

Russ Ackoff once again does a great job of providing insight into management. I highly recommend A Little Book of f-Laws [the broken link was removed] where Ackoff, with Herbert Addison and Sally Bibb, present 13 common sins of management, such as:

Managers who don’t know how to measure what they want settle for wanting what they can measure

See: Deming’s thoughts on unknown and unknowable figures. A book with over 80 management flaws (er I mean f-Laws) will be published in January – you can even submit your own [the broken link was removed].

Related: Ackoff articles and booksblog posts on Ackoff’s ideasManagement Advice Failures
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Posted in Data, Deming, Management, Management Articles, quote | Tagged , | 1 Comment

Information Quality In Health Care

The Life and Death Results of Information Quality by Doug Johnson:

I believe poor information and the inability to make medical decisions with correct, complete and timely information kills more people than any single disease in the United States. In the same way we have tagged diabetes with the term “the silent killer,” poor information quality creeps into our decision-making capabilities like a thief in the night. When patients die because their blood glucose levels get too high after surgery, we say, “We didn’t know they were diabetic.” When lab results come back negative for cancer, we are happy to go on our way only to find out months later that the disease spread and the patients are now terminal. We then say, “We got faulty lab results.”

Related: heathcare related postsposts on how to use data properlyEvidence-based Management

Posted in Data, Health care, Management | Comments Off on Information Quality In Health Care

Lean Education Meeting Slides

Presentation slides from the joint The Lean Aerospace Initiative [the broken link was removed] and LEAN joint meeting (October 16-18, 2006) are available [the broken link was removed – the links that relied on MIT to retain historical information using technology over the long term failed. It is sad MIT doesn’t understand how to manage information using technology more effectively. They really should learn how to do the extremely basic tasks of combining technology and management if they expect to be respected in that field it seems to me. It is embarrassing they are doing so poorly now.]. From Jim Womack‘s slide:

What Is Lean?
Lean = Purpose + Process + People
Purpose = solving customer problem while provider prospers.
Process = 3 primary value streams and many support processes, some involving customers.
People = engaging everyone touching every value stream to operate and improve it steadily (kaizen)
and dramatically (kaikaku)

Related: Lean Education Academic Network Spring MeetingLean Education Academic Network

Posted in Education, Management | Comments Off on Lean Education Meeting Slides

Amazon Innovation

Jeff Bezos’ Risky Bet [the broken link was removed]

And, he hopes, making money. With its Simple Storage Service, or S3, Amazon charges 15 cents per gigabyte per month for businesses to store data and programs on Amazon’s vast array of disk drives. It’s also charging other merchants about 45 cents a square foot per month for real space in its warehouses. Through its Elastic Compute Cloud service, or EC2, it’s renting out computing power, starting at 10 cents an hour for the equivalent of a basic server computer. And it has set up a semi-automated global marketplace for online piecework, such as transcribing snippets of podcasts, called Amazon Mechanical Turk. Amazon takes a 10% commission on those jobs.

In my view Amazon is doing some very interesting innovation. As with most true innovation it is not easy to understand if it will succeed or not. I believe Amazon uses technology very well. They have done many innovative things. They have been less successful at turning their technology into big profits. But I continue to believe they have a good shot at doing so going forward (and their core business is doing very well I think). Innovation often involves taking risks. Bezos is willing to do so and willing to pursue his beliefs even if many question those beliefs. That means he has the potential to truly innovate, and also means he has to potential to fail dramatically.

Related: Bezos on Lean ThinkingMaking Changes and Taking Risks10 Stocks for 10 Years UpdateA9 Toolbar for Firefox Browser

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Posted in Creativity, Innovation, Management, Popular | Tagged , , , , | 10 Comments