Management Improvement Carnival #82

Posted on November 22, 2009 by John Hunter

Mike Wroblewski is hosting the Management Improvement Carnival #82 on the Got Boondoggle? blog, highlights include:

  • A Problems First Culture by Mark Rosenthal “‘Problems first’ is one of the mantras used by Phil Jenkinson, the CEO character in The Lean Manager by Michael and Freddy Ballé. Now that I have had a few weeks to let it sink in and synthesize with my mental models, I am seeing a concept that is so fundamental I would think it would be hammered into students in every management and leadership course taught in the world.’”
  • Keeping Lean Japanese by Brian Buck “There is a trend towards removing the Japanese language or jargon from Lean transformations in the U.S. I understand why organizations would want to make lean thinking and the corresponding tools easier to digest, but I think we should seriously consider keeping it Japanese.”
  • Lean is about More than the Myths by Tim McMahon “It’s important when you are starting out your lean journey to understand what lean is really about.”
  • 17 Lessons I learned from Japanese Consultants by Jeff Hajek “Over the years I have worked with some premiere lean consultants from Japan. Here are some of the many lessons I learned from them.”
  • The Kipling Method vs. the Ohno Method by Jon Miller “Are you a Kipling person, taking the accepted tool or situation as given, or are you an Ohno person, constantly challenging the norms and looking for better ways?”

Related: Management Improvement Carnival #64 – Be Careful What You Measure – Do you Read Instructions Carefully Before Assembly?

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Lean Inventories Do Not Excuse Failing to Deliver

Posted on November 20, 2009 by John Hunter

Low inventory levels do not mean failing to have products available for customers. Now, if you manufacturing in huge batches and can’t respond to customer feedback then it might mean failure to predict customer demand does mean failure to deliver. But lean thinking has shown how to avoid this problem. People need to adopt lean manufacturing practices and gain the benefits of low inventory levels without the costs of failing to deliver what customers want.

Sorry Santa, We’re Out of Stock

The “it” gifts this year could swiftly vanish from store shelves, as retailers, with nightmares of Christmas 2008 markdowns dancing in their heads, have slashed inventories to some of the leanest levels in recent memory.
…
Retailers themselves are battle-scarred by last year’s fourth-quarter fiasco. Following the financial meltdown of September 2008 and amid the most severe economic crisis since The Great Depression, consumers retrenched.

That’s when stores hit the markdown panic button, slashing prices upwards of 75 percent. The result was the worst holiday selling season since 1970, according to The International Council of Shopping Centers.

But although leaner inventory levels should drive profit margin gains this holiday, “retailers might not have enough inventory to fully satisfy demand,” said Citigroup retail analyst Deborah Weinswig, in a research note. It is a risk they are willing to take.

“They would rather lose a sale than take the markdowns they had last year,” said Goldman Sachs analyst Adrianne Shapira.

The retailers need to design their systems with lean thinking in mind (not lean – as in cut expenses without thought). And they need to work with suppliers using lean manufacturing principles.

Related: Be Thankful for Lean Thinking – Guess What? Manufacturing in the USA is a Good Idea – Tesco: Lean Provision – Zara Thrives by Ignoring Conventional Wisdom – Operational Excellence – lean manufacturing articles

Posted in Customer focus, Lean thinking, Management, Manufacturing, Process improvement, Systems thinking | Tagged , , , , , , | 2 Comments

Highlights from Recent George Box Speech

Posted on November 16, 2009 by John Hunter

The JMP blog has posted some highlights from George Box’s presentation at Discovery 2009 [the broken link was removed]

Infusing his entire presentation with humor and fascinating tales of his memories, Box focused on sequential design of experiments. He attributed much of what he knows about DOE [design of experiments] to Ronald A. Fisher. Box explained that Fisher couldn’t find the things he was looking for in his data, “and he was right. Even if he had had the fastest available computer, he’d still be right,” said Box. Therefore, Fisher figured out how to study a number of factors at one time. And so, the beginnings of DOE.

Having worked and studied with many other famous statisticians and analytic thinkers, Box did not hesitate to share his characterizations of them. He told a story about Dr. Bill Hunter and how he required his students to run an experiment. Apparently a variety of subjects was studied [see 101 Ways to Design an Experiment, or Some Ideas About Teaching Design of Experiments]
…
According to Box, the difficulty of getting DOE to take root lies in the fact that these mathematicians “can’t really get the fact that it’s not about proving a theorem, it’s about being curious about things. There aren’t enough people who will apply [DOE] as a way of finding things out. But maybe with JMP, things will change that way.”

George Box is a great mind and great person who I have had the privilege of knowing my whole life. My father took his class at Princeton, then followed George to the University of Wisconsin-Madison (where Dr. Box founded the statistics department and Dad received the first PhD). They worked together building the UW statistics department, writing Statistics for Experimenters and founding the Center for Quality and Productivity Improvement among many other things.

Statistics for Experimenters: Design, Innovation, and Discovery shows that the goal of design of experiments is to learn and refine your experiment based on the knowledge you gain and experiment again. It is a process of discovery. If done properly it is very similar to the PDSA cycle with the application of statistical tools to aid in determining the impact of various factors under study.

Related: Box on Quality – George Box Quotations – posts on design of experiments – Using Design of Experiments

Posted in Data, Design of Experiments, Six sigma, Statistics | Tagged , , , , , , , , | 6 Comments

Learn Lean by Doing Lean

Posted on November 13, 2009 by John Hunter

In response to: Developing Your Lean Education Plan [the broken link was removed]

If you actually let the lean leaders practice lean management you are probably doing more to help them learn than anything else. Reading is great, but 10 times better when reading to find solutions you need to deal with issues you have in place. Same for going to conferences. Consultants can be a huge help, but if you just bring in consultants without allowing the changes needed to improve they are not much use.

Far more damaging than not approving training, or giving the lean leaders any time to learn, is not giving them freedom to adopt lean practices and actually make improvements in your organization. That is what kills learning, and the desire to learn.

A great lean education plan: give them opportunities to apply what they know. As they gain knowledge and have success give them more opportunities. I think often lean leaders (and management improvement leaders) have to spend so much effort fighting the resistance in the organization they don’t have the energy to seek out much new knowledge. If you can reduce the effort they have to spend on fighting the bureaucracy most lean leaders will naturally focus on learning what they need for the current and future challenges.

Related: Building Organizational Capacity – Helping Employees Improve – People are Our Most Important Asset – Respect People by Understanding Psychology

Posted in Career, Education, Lean thinking, Management, Respect, Systems thinking | Tagged , , , , , , , , , , | 6 Comments

Management Improvement Carnival #81

Posted on November 10, 2009 by John Hunter

Womack & Jones at the Gemba: “Spread” and Innovation by Mark Graban – “Jim says, basically, that you’re always going to be innovating and if the next area thinks they can just copy, then they’re missing the point.”

 The Curious Cat Management Improvement Carnival provides links to recent management improvement blog posts.

  • Kanban Results by David Joyce – “Through various means; working on the system… actively assigning, escalating and removing blockers, recognising and reducing bottlenecks, retrospectives, improving our process by separating common cause problems from special cause problems… implementing Kaizen… we have seen improved results which are depicted below in Statistical Process Control charts…”
  • Liars, Blowhards, Con Artists, and Management Consultants by Marc Hersch – “Many years ago I had a conversation with Dr. Deming in which I asked him about what my role as a consultant, should be. He explained that my role was to provide my client with an outside perspective and a set of a methods for figuring out how to optimize their system of enterprise.”
  • Distributed Software Teams by John J. Peebles – “it forced us extremely early on to invest in systems, processes, and a way of working that brought everything we did online. Project management, change control, bug tracking, issue tracking, source control, testing, collaboration, documentation, document management, communication, all of these things needed to be ubiquitous and consistently used by the entire staff.”
  • The 5 Universal Laws of Gemba Management by Jon Miller – “The frequency of leadership going to the gemba is inversely proportional to the number of walls separating them from the gemba.”
  • Intuition vs. Data-Driven Decision-Making: Some Rough Ideas by Bob Sutton – “The trouble with intuition is that we now have a HUGE pile of research on cognitive biases and related flaws in decision-making that show ‘gut feelings’ are highly suspect. Look-up confirmation bias — people have a very hard time believing and remember evidence that contradicts their beliefs.”

    • Continue reading →

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Management Webcast: Introduction to Lean Manufacturing

Posted on November 9, 2009 by John Hunter

Webcast introduction to lean manufacturing by Ron Pereira. This is a great 9 minute introduction to the topic, for those not familiar with lean thinking. It sets the context for lean thinking and provides some history on how lean manufacturing has developed. Get videos on learning about lean from the Gemba Academy.

Related: Oranges, Pebbles, and Sand [the broken link has been removed] – Dr. Russell Ackoff Webcast on Systems Thinking – An Introduction to Deming’s Management Ideas by Peter Scholtes – Eric Schmidt on Management at Google – Management Webcasts – Workplace Management by Taiichi Ohno

Posted in Deming, Lean thinking, Management, Toyota Production System (TPS), webcast | Tagged , , , , | Comments Off on Management Webcast: Introduction to Lean Manufacturing

Deming: There is No True Value

Posted on November 5, 2009 by John Hunter

There is no true value of anything: data has meaning based on the operational definition used to calculate the data.

Walter Shewhart’s Statistical Method from the Viewpoint of Quality Control, forward by W. Edwards Deming:

There is no true value of anything. There is instead a figure that is produced by application of a master or ideal method of counting or measurement… no true value of the number of inhabitants within the boundaries of (e.g.) Detroit. A count of the number of inhabitants of Detroit is dependent upon the application of arbitrary rules for carrying out the count. Repetition of an experiment or of a count will exhibit variation.

Dr. Deming’s ideas on the theory of knowledge are the least understood and least seen in other management systems. The importance of understanding what data does, and does not tell you, is at least somewhat acknowledged in other management system but is often not found much in the actual practice of management. The execution often glosses over the importance of actually understanding statistics versus using formulas. Just using formulas is dangerous. It may be inconvenient but learning about the traps we can fall into in using data is important.

How often do you see the operational definition used to calculate the data you see with the data you are provided?

via: Shewhart, Deming and Data by Malcolm Chisholm

Related: How We Know What We Know – Pragmatism and Management Knowledge – Measuring and Managing Performance in Organizations – Dangers of Forgetting the Proxy Nature of Data

Posted in Data, Deming | Tagged , , | 9 Comments

Statistical Learning as the Ultimate Agile Development Tool by Peter Norvig

Posted on November 5, 2009 by John Hunter

Interesting lecture on Statistical Learning as the Ultimate Agile Development Tool by Peter Norvig. The webcast is likely to be of interest to a fairly small segment of readers of this blog. But for geeks it may be interesting. He looks at the advantages of machine learning versus hand programming every case (for example spelling correction).

Google translate does a very good job (for computer based translation) based on machine learning. You can translate any of the pages on this blog into over 30 languages using Google translate (using the widget in the right column).

Via: @seanstickle

Related: Mistakes in Experimental Design and Interpretation – Does the Data Deluge Make the Scientific Method Obsolete? – Website Data – An Introduction to Deming’s Management Ideas by Peter Scholtes (webcast)

Posted in Data, Software Development, Statistics | Tagged , , , , , , | 1 Comment

Management Improvement Carnival #80

Posted on November 3, 2009 by John Hunter

Jamie Flinchbaugh is hosting Management Improvement Carnival #80 on his new blog, highlights include:

Nominate your favorite management improvement posts.

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Russell L. Ackoff: 1919 -2009

Posted on October 31, 2009 by John Hunter

photo of Russell Lincoln Ackoff

We lost another of the absolutely best minds in management history, this week. Somehow, many managers, do not know of Russell Ackoff’s ideas. I find that amazing. Dr. Ackoff is one of two management thinkers that any manager, that is serious about improving management results in their organization, must study (the other is Dr. Deming).

The Curious Cat management library includes many articles by Russell Ackoff. Transformation and Redesign at the White House Communications Agency by March Laree Jacques is a great articles exploring adopting his ideas.

Like many management greats he had no limit to the great ideas he put forth. He believed in the value of people and the importance of social systems. He is well known his ideas on systems thinking and specifically human systems. He understood to create effective management structures the human element must be at the heart of the system. He firmly believed in respect for people and his management ideas built on providing the opportunity for people to flourish.

We lost another great management mind. But by reading Ackoff’s books and articles and learning from him we can continue the improvements he brought to management during his life. His ideas will continue to provide those that adopt them great success for a long long time. And the management community will continue to build on his work and that of others to help managers improve their organizations.

Earlier this year we lost Peter Scholtes, another management leader and friend of Russell Ackoff. Russell wrote the forward to Peter’s Leader’s Handbook.

Peter Scholtes is an education, not a guru. A guru is one who develops a doctrine and seeks disciples who accept and transmit it without modification. No deviation is acceptable…
Educators, on the other hand, encourage and even try to inspire progressive deviations from what they have said. Their objective is not to remove the need for further learning, as is the guru’s, but to initiate it

Those words also describe Russell Ackoff perfectly. He inspired those he worked with to adapt and transform his ideas as they worked to improve their organizations. Take this opportunity to learn more about his ideas, you will not be disappointed.

Related: Russell L. Ackoff, Management Consultant & Systems Thinker, 1919 -2009 – Ackoff, Idealized Design and Bell Labs – Quotes By Dr. Russell L. Ackoff – Dr. Russell Ackoff Webcast on Systems Thinking – From Mechanistic to Social Systemic Thinking – Traffic Congestion and a Non-Solution – Write it Down to Improve Learning – Designing a New Organization – Ackoff’s New Book: Management f-Laws – The Importance of Management Improvement

Posted in Deming, Innovation, Management, Respect, Systems thinking | Tagged , , , , | 4 Comments