Deming in Japan

Great article by John Dowd [the broken link was removed], How the Japanese learned to compete:

This is a key lesson because with attention to quality, the company begins a journey on a “virtuous circle” of simultaneously improving quality and lowering costs. As quality improves, there are less rework, scrap and waste of all kinds. As products become more attuned to customers’ needs, there is less effort spent producing items people don’t want. Costs go down. Quality improves. Thus paying attention to quality becomes the primary competitive strategy. Understanding this is vitally important.

Related: Management Improvement HistoryDeming on ManagementDeming related blog postsPDSASpeech by Dr. Deming to Japanese Business Leaders in 1950My First Trip To Japan by Peter R. Scholtes

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Management Improvement Search Engine

Google has launched a nice new feature that allows users to create customized search results. I have talked about this idea before: Improve Google. Last year I posted about Rollyo, which allowed what Google now does (using Yahoo for the underlying search). I liked Rollyo but the new Google offering is better, so I have switched to using Google.

Try our Management Improvement search engine

This searches, using Google technology, over 50 management improvement web sites that I have selected. Sites include: (this blog, Curious Cat Management Improvement Connections, Curious Cat Management Library…) and the best management improvement sites (in my opinion), including: The W. Edwards Deming Institute, Lean Blog, Panta Rei, Center for Quality and Productivity Improvement, Superfactory, Got Boondoggle?, In2:InThinking Network, Peter Scholtes, Center for Quality of Management, and many more. I will also be adding more; please share your suggestions.

Add the Management Improvement Search box to your site.

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Lessons from Toyota’s IT Strategy

Another interesting post from Panta Rei: Lessons from Toyota’s IT Strategy [the broken link was removed]:

In order to use IT effectively as a tool, we think that it is important for the top management to not see IT as something that can be applied superficially. First they must see the facts of the business, the facts of the gemba, and on top of this foundation further consider the feelings of people and how to motivate them. Then rules must be written and standardization must be done properly on the basis of the global business framework, before IT is implemented.

The words hardly seem revolutionary. The importance, I believe is understanding how differently Toyota acts upon what it says. For more on Toyota IT see: Toyota IT Overview.

Related: Infromation Technology management improvement related postsToyota IT for KaizenDell, Reddit and Customer FocusIT Management Training Program

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Deming Prize 2006

The Union of Japanese Scientists have announced the 2006 Deming Application Prize [the broken link was removed] winners:

  • Nishizawa Electric Meters Manufacturing Co., Limited (Japan)
  • Sanden International PTE Limited (Singapore)
  • Sanden International, Inc. (USA)

Also announced:
The Deming Prize for Individuals: Dr. Yoshinori Iizuka, Professor, Graduate School of Engineering, The University of Tokyo (Japan)

The Japan Quality Medal: GC Dental Products Corp. (Japan)

Recently Thailand and India had been dominating the awards: 3 of 4 in 2005, 6 of 6 in 2004, 6 of 7 in 2003, 2 of 2 in 2002 and 3 of 4 in 2001. Prior to that trend, nearly all awardees were based in Japan. Sanden International is the third USA based organization to win: Florida Power & Light Company (1989), AT&T Power Systems (1993).

Companies are eligible for the Japan Quality Medal only after they have received a Deming Prize. An official award ceremony will take place November, 7th.

Related: 2005 Deming Prize2004 Deming PrizeDeming Prize informationDeming management method related blog posts

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Management Consulting – Web Site Evidence

In, How Wipro Adapted the Toyota Production System to IT Work [the broken link was removed], Jon Miller highlights several keys to adopting lean thinking: involve everyone, learn and then do, and learn together.

In Wipro’s case they should also take advantage of what is available on lean IT thinking such as: Lean Software Development.

As I have mentioned before a look at Wipro’s web site does not provide me much confidence in their commitment. Read their overview of IT services offered [the broken link was removed – I am not at all surprised they didn’t even follow basic web guidelines to avoid breaking urls] – just the standard language, nothing that provides details on their lean thinking. The web site of management consulting firms provides a great way to judge what they actually value. Maybe you shouldn’t judge a consulting firm by its web site but it seems like a pretty good indicator to me (even small firms can posts thoughts on a blog or a couple articles).

Related: IT related blog postsToyota IT OverviewIndian Firms Learning From ToyotaIf Tech Companies Made Sudoku

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Deming Institute Conference: Tom Nolan

I attended the annual W. Edwards Deming Institute conference this weekend: it was quite good. Tom Nolan [the broken link was removed] lead off the conference with: Developing and Applying Theory to Get Results.

He discussed the theory of knowledge: how we know what we know. See my attempt to introduce the idea of the theory of knowledge within Deming’s management system. It is probably the least understood of Deming’s four areas of profound knowledge, the others areas are: knowledge of variation, appreciation for a system and psychology.

Theory of knowledge is also something people have difficulty relating to what they do every day. The most obvious connection, I believe, is the understanding that much of what is “known” is not so. People manage with faulty beliefs. With an understanding of the theory of knowledge decision making can be guided to avoid the pitfalls of basing decisions on faulty beliefs. This is, of course, just one aspect of how the theory of knowledge impacts Deming’s management system.

Tom Nolan also discussed some interesting work that Paul Carlie and Clayton Christensen are doing based on descriptive “theory” and normative theory. My simple explanation is that descriptive theory reports on what is seen. This can be interesting, but has problems when people assign causation based on just observation (without experimentation). Normative theory involves testing theories (such as is done with the scientific method). Good article on this by Carlie and Christensen: The Cycles of Theory Building in Management Research [the broken link was removed].

Tom also discussed the PDSA cycle (he co-authored the best book on applying the PDSA to improve: The Improvement Guide). One point he made was that he often finds that organizations fail to properly “turn” the PDSA cycle (by running through it 5-15 times quickly and instead to one huge run through the PDSA cycle). One slow turn is much less effective then using it as intended to quickly test and adapt and test and adapt…

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Lean Canadian Company

Lean and mean might not be enough [the broken link was removed]

“I wanted all the machines working all the time,” Afeyan said as he watched a worker moving a stack of veneers into position for “cooking” in one of the pressing machines.

That was before a “lean manufacturing” exercise changed Afeyan’s mind about how his factory should be organized.

The article discusses that while great strides have been made the threat to success still exist from foreign (China) competition. And discusses that the company is trying to focus on production that is more difficult for foreign competition (short runs, small lead times). It is also one of the few articles to acknowledge that manufacturing production is up while manufacturing employment is down.

Related: Global Manufacturing Jobs DataGlobal Manufacturing Data by CountryLean Manufacturing ArticlesToyota Production System posts

But lean manufacturing is only part of an equation that has generated dramatic gains in manufacturing productivity over the last two years. Despite the large number of layoffs in manufacturing, the volume of factory output has actually risen since 2002. The job losses are a combination of efficiency gains at existing factories and turnover that sees more efficient producers replacing those who couldn’t survive.
The plant was reorganized to bring machines together to form production cells where cross-trained workers begin and finish orders one by one. Teams of employees now take plywood and cut it, sand it, groove it, insert hardware and package it for shipping – operations that used to be executed at separate stations. Similar changes were made in the plywood manufacturing area.

Now, orders move through the factory quickly instead of stacking up.

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Designing In Errors

TiVo’s “self-destruct button” destructs [the broken link was removed]

In so doing, they’ve created a bunch of potential failures in which the user is locked out of her own equipment.

It’s like those movies where an accident or a bad guy triggers the “self-destruct button” on a spaceship. Often the self-destruct button is locked away behind plexiglas and padlocks for safety, but wouldn’t it be safer not to include a single command that blows up the whole space-ship?

You know that is a pretty good explanation of the reasoning behind mistake proofing: eliminate as many possibilities for errors as possible. When you design products that create more possibilities for more errors you create products that will in fact fail more often.

Related: Usability FailuresDell, Reddit and Customer FocusComplicating SimplicityManagement Improvement Dictionary

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Righter Performance Appraisal

Speaking of “doing the wrong things righter” Microsoft has eliminated forced rankings in performance appraisal: to do performance appraisals righter.

Microsoft exec puts her stamp on human resources:

The forced curve was company policy. And it climbed up a list of employee gripes that grew as Microsoft’s stock, which accounts for much of the company’s compensation, languished.

In May, after barely a year as Microsoft’s human-resources chief, Lisa Brummel swept away “artifacts of the past,” starting with the widely disliked forced curve.

Good (see mini-Microsoft and our previous related post: Performance Without Appraisal), but the rest of the artifacts of the present should also be swept away.

Related: Failed Practice: Forced RankingNew Rules for Management? No!Performance Appraisal ProblemsDeming on Performance AppraisalsProblems Caused by Performance Appraisal

“The performance-management system tells you what it is in this company that we value and reward,” said Herman Aguinis, a professor of management at the University of Colorado at Denver Business School, and author of a recent book on the topic. “If you’re changing the things that you value and reward, people are going to change their behaviors accordingly, so it is a very powerful tool to change a company’s culture.”

True, so tell your people you value them for how there performance evaluation looks each year (not for them but the disembodied evaluation)? This is similar to Seth Godin’s post where he talks about hiring people based on good interviewing skills versus what is actually needed to do the job. This in not to say performance need not be managed, managers should be managing the people that work for them and the systems within the organization. The performance appraisal is just the wrong method.

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Doing the Wrong Things Righter

The more we manage, the worse we make things by Simon Caulkin

The distinguished systems theorist Russ Ackoff describes the trap as ‘doing the wrong thing righter’. ‘The righter we do the wrong thing,’ he explains, ‘the wronger we become. When we make a mistake doing the wrong thing and correct it, we become wronger. When we make a mistake doing the right thing and correct it, we become righter. Therefore, it is better to do the right thing wrong than the wrong thing right.’ Most of our current problems are, he says, the result of policymakers and managers busting a gut to do the wrong thing right.

I agree. There is too little understanding of what is important and too much focus on what amounts to tampering. As regular readers of this blog know I think Ackoff is great.

Dr. Ackoff related info: articles by Russ Ackoff – Doing the wrong things right podcast by Ackoff [the broken link was removed] – On Learning and Systems That Facilitate It by Russel Ackoff [the broken link was removed]

Related: Forget TargetsLife Beyond the Short TermManaging with Control ChartsManagement Advice FailuresLearning, Systems and Improvement

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