Tag Archives: GBMP

P-D Ratios

The last few weeks have been all things Shingo for me including a presentation at the Shingo Institute’s International Conference three weeks ago in Provo, Utah, followed by four days of Shingo Institute workshops at Vibco in Richmond, Rhode Island. Questions at both events about assessing for enterprise excellence caused me to reflect on a basic framework that Shingo himself used to explain the progression of what we refer to today as “Lean maturity”.

pdratioThe P-D Ratio was Shingo’s comparison of the time required to Produce a product to the time given by the customer to Deliver the product. A large P-D ratio, for example, was indicative of a producer who took much longer to produce a product than desired by the customer. In 1985, this was the condition in my business. We attempted to match the customer’s short “D” time by stockpiling inventory.   Our push production method, as Dr. Shingo called it, was “speculative”, that is to say we built to forecast. Unfortunately our forecasts were wrong much of the time and there was an abundance of Muda in our production system. The atmosphere in the plant was one of frenetic expediting, particularly at month and quarter end. I don’t recall using the word “culture” at the time, but in today’s terms we did not yet have a culture of improvement. Shortly after I took a job as materials manager, a question posed to me by a buyer from one of our largest customers, a compressor manufacturer, summed up our P-D ratio:

“Welcome to your new job, Mr. Hamilton.   Can you explain to me why your company takes sixteen weeks to fill an order for a product the size of my fist, while my company can make a product as big as a house and deliver it in a week?”

That mortifying question may very well have been the trigger for my first study of TPS. A read of Robert Hall’s Zero Inventories (1982) led via a footnote to Shigeo Shingo’s Study of the Toyota Production System (1981) and this is where the epiphanies began. The book was such a bad translation from the Japanese that it has become a collector’s item. (It was retranslated in 1989 to a more readable but less authentic form.) Using Shingo’s ideas, we began to shift our production from “speculative” to “authorized” – Mr. Shingo’s words to describe the shift from push production to pull. And little by little, the sixteen weeks reduced to ten and then five and eventually, over a period of years, to two weeks for our customer’s product. With starts and stops and lot of TPS learning opportunities, by 1990 we’d reduced the P-D ratio from 16:1 to 2:1, not exactly just-in-time, but improved enough to be recognized in 1990 by the Shingo Prize for Manufacturing Excellence.

By the fall of that year we were asked to tell our TPS story at the annual AME conference in Boston.   A team of seven persons from my company each told a piece of the story: what we’d learned technically and how we worked together to overcome challenges and develop an improvement culture. After our presentation, each team member sat at a different lunch table, anxious to hear from other participants. As I seated myself for lunch, the gentleman to my right was already talking about some impressive results: shorter lead-times, inventory reductions, lower costs. Not to be outdone, someone across the table talked about same day delivery.   Another told a story of enormous cost reductions. “These are really impressive results,” I thought to myself.

I broke my silence by announcing that while my company had worked very hard to improve, our results were not nearly so compelling as those described by others at the table. Hoping to capitalize on the experience of others at my table, I then asked, “What companies are you with?”  To my complete surprise, everyone else at my table was a consultant. One was pushing Theory of Constraints, another was into TPM and a third was an MRP consultant. The rest were Lean consultants, a relatively new idea at that time. All had business cards in hand. Suddenly their improvement claims seemed a bit less credible. In 1985, there had been almost nothing written about TPS and the only Lean (TPS) consultants were from Japan. It was hard to find companies that had even heard of TPS. But, by the 1990 AME conference, Lean consultants were apparently multiplying like lab rats.   The group at my lunch table outnumbered the doers by 9 to 1, a ratio that was later borne out more generally by other of my team members. “Lean is good business for consultants,” I skeptically thought to myself, “but what about their customers.”

pdratio2Revisiting Shingo and his ideas over the last few weeks at conferences and training, I’ve concocted a whimsical P-D ratio for us to keep an eye on: The ratio of Pundits to Doers. (Yes, I am now a Pundit too.)   Today’s pundits have titles superior to consultant: Lean Expert, Lean Practice Expert, Sensei, Master Sensei, Black Belt, Guru and so on. Have a laugh –  We’re even on Weird Al’s radar!   My unscientific application of this Pundit-Doer ratio leads me to believe that while there are many more Doers now than in 1990 (the good news), the Pundit-Doer ratio is getting larger (the bad news.)  There are more of us, both internal and external, than there are doers.

During a recent discussion with my board of directors, the question was posed: “What do we want GBMP to look like in ten years?” One astute board member commented, “Perhaps we should ask ‘What do we want our customers to look like in ten years?’”

Where is your company on Shingo’s P-D scale?   Where do you want to be in ten years? Please share a thought.

O.L.D.

Hey! Speaking of Shingo, there’s still time to register for our next Shingo Institute Discover Excellence Course, June 9-10 at Smith-Midland in Midland, Virginia. You can register here.

Also, this week is the last call for the early bird registration discount for our 11th Annual Northeast L.E.A.N. Conference on September 29-30, 2015 in Springfield MA – a great event to meet, hear from and share with other “doers” just like you.  Read more and register here.

Finally, I hope you’ll join me for my next “Tea Time with The Toast Dude” webinar on June 2. It’s FREE! I’ll be discussing Overcoming Organization Obstacles to Lean. Get the scoop here.

A Holiday Miracle

Viewing Bill Murray’s “Scrooged” last week for the twenty-fifth time in as many years, I recalled a kind of holiday miracle I witnessed shortly after I began consulting.

holidaymiracleI was working with a manager team at a food processing plant shortly before Christmas, observing a packing line set up especially to pack hams for the holiday.   Imagine a rapidly moving serpentine conveyor transporting hams from a chiller to a rotating shrink wrap platen and thence to boxing and palletizing operations.   Operators stood at key points, to inspect, load and unload. Because the shape of each ham was unique, proper positioning and repositioning of product was also important to prevent jams and spills.

Observation was something new for this manager team. Not that they weren’t on the floor regularly, they just didn’t spend much time focused on the process. This day we were essentially standing in Ohno’s Circle, watching the work of young lady, call her Martina, stationed at the sealing platen.   Hams arrived every twenty seconds on a conveyor positioned next to the platen, where Martina would quickly do a visual inspection and then load and activate the shrink wrapper. The packing line was paused briefly, and with the help of her bilingual supervisor we inquired of Martina if she experienced any difficulty in her work.   As none of our group could speak Spanish, we could only observe facial expressions and body language.   Her supervisor spoke to her in Spanish and then turned to us with a smile on his face: “I asked if she has any problems and she responded that ‘she really likes working here.’ I think she’s a little nervous.” Martina was looking at our team with a big smile also.

Moment of truth: The top manager in our group responded directly to Martina in English. “We know you’re a very good worker and we’re happy to have you working for us. Is there anything that we can do to help you in your job?”   Her supervisor translated to her, apparently adding a few personal words of encouragement. Martina provided a longer, animated response, demonstrating how she loaded the hams from the conveyor to the platen. We watched as she as she suddenly made a long stretch to a spot where the conveyor took a right angle turn.   Her motion was reminiscent of a first baseman stretching to shag an errant throw.   She looked at us again with a smile. Pointing to the area of the “stretch”, her supervisor translated: “Martina says, that occasionally, a ham will fall off the conveyor at this turn, but that she is always watching and is able to catch it before it hits the floor.” He paused, and then smiled again. “And, she wants you to know that it’s not a big problem, and she really likes working here.”

The packing line was restarted, and we observed this time with a better understanding, watching for the occasional falling ham. There were a couple near misses, but no opportunities for Martina to demonstrate her first base stretch. So it is with occasional problems; only the front line sees them.

Before we moved on, from the top manager came a sincere thank you to Martina for her help, and a direction to engineering to add a higher barrier to the conveyor at the point where hams might tumble. For both management and employees it was a holiday miracle, an epiphany: Each had become visible to the other.   As Goodyear’s Billy Taylor put it at our Northeast Lean Conference “if you make somebody visible you make them valuable.” This is culture change, one small miracle at a time. But, in the words of Bill Murray’s Ebenezer Scrooge, managers have to “want to make it happen every day.”   It’s management’s part of “everybody everyday.”

My New Year’s challenge to every manager: Show your personal passion for continuous improvement every day. Make the miracle happen in your organization. Make your employees and yourself visible.

Best Wishes to All for an Incredible 2015.

O.L.D.

P.S. GBMP wants to help you get 2015 off to a great start with lean training events to benefit your whole team – including Job Instruction Training, Lean for the Office, Six Sigma Green Belt, Total Productive Maintenance, Value Stream Mapping for Healthcare, benchmarking plant tours, free webinars, Shingo Institute workshops and much much more!  Visit www.gbmp.org and click on Events to see the entire list.

Dead See Scrolls

I participated recently in the AME conference in Jacksonville, Florida; a terrific rally for manufacturing excellence with the tongue-twisting theme “Strategic Success Through People Powered Excellence.”   I had a small role on a keynote panel that attempted to answer questions from attendees relating to generating the people power needed for strategic success.  The session evoked a sense of déjà vu, as the challenge to get everyone actively engaged in improvement  – referred to in pre-Lean times as Total Employee Involvement or TEI –  has resurfaced after nearly three decades of dormancy under the heading of people powered excellence. “This is a good thing,” I thought to myself, “that the Lean transformation discussion has moved to the social part of Lean, but why has it taken so long to resurface?”

When the panel discussion concluded, I retreated to further reflection: “Maybe,” I thought, “there never was a social part of Lean, only a set of techniques to be implemented and layered over a traditional organizational structure that valued only a few “thinkers” and treated everyone else as expendable ‘doers.” Maybe this was why the focus shifted in the early ’90s from Total Employee Involvement to Some Employee Involvement: Blitz Kaizen teams and black belts and subject matter experts and value stream leaders, none of which existed in the pre-Lean era. Maybe the Total part was just too hard or too foreign, so we retreated to our caste system of thinkers and doers and glommed onto the technical part of TPS. Technical problems, after all, are always so much easier to solve than people problems.

ideabookIn the late 80’s, Productivity Press (now CRC Press –  then the leader in bringing TPS thinking to America) published an excellent “TEI Newsletter”, a resource that provided tremendous insight about creating the environment that we are now referring to as ‘people powered excellence.’ I have all the old issues, but there is no reference to the newsletter on the Internet; and no reference to TEI in the popular Lean Lexicon or any other glossary I researched. The acronym and what it stands for have apparently been expunged from our Lean consciousness.   For those of you who’d like to revisit this prehistoric concept I recommend reading The Idea Book, authored by the Japan Human Relations Association in 1998. The book (once published by CRC Press) is now out of print, but available on Amazon for $0.01.

theoryzDigging farther into the pre-Lean period is another seminal text by William Ouchi, entitled Theory Z, a seminal dissertation penned in 1982 on creating a management system that stimulates employee engagement and loyalty.   This book came to mind during my keynote panel discussion. I wondered how many of the 1500 persons in the room had ever heard of it. Theory Z is also now out of print and available on Amazon for $0.01. Ouchi’s book is largely reflective of W. Edwards Deming’s thinking, and is still very important reading.

My post-panel musings caused me to venture to the AME exhibitors area for a visit to the CRC Press booth to peruse their latest offerings. Nearly all of the display was comprised of technical how-to books: 5S, A3, 3P, kaizen events, policy deployment, value streaming for this and that, and a host of Lean-for… texts (Lean for sales, Lean for healthcare, Lean for accounting, etc.) I asked the salesperson, “Do you still publish Ohno’s and Shingo’s books? I don’t see them here.”   He replied, “Yes we do, but we only bring new books to the conference.” (Shingo’s 1988 book, Non-Stock Production, is happily still in print, if not on the shelves.) As he answered, I recalled a warning from Shigeo Shingo that we should “not confuse means with ends,” for example, don’t think of 5S as an end in itself, but as a means to a higher purpose. All I saw for sale however was means type texts from latter day disciples.   Apparently the works from the likes of Shingo and Ohno and Ouchi have become more like the Dead Sea scrolls: they still exist, but almost nobody reads them any more. Call them the Dead See Scrolls to disambiguate.

O.L.D.

News Flash: DExc

Don’t miss this important Shingo Institute training event, Discover Excellence.
Date: January 8-9, 2014
Place: Haworth Inc., Holland, Michigan
Instructor: Me
For more information, visit www.gbmp.org and click on Events

BTW: This is the fourth anniversary of Old Lean Dude, a blog I started partly to promote management engagement in continuous improvement and partly as a means to blow off steam. Posting about twice per month since 2010 has, in fact, been helpful to my personal sense of well being, but I hope there has also been some value to others. Thanks to everyone who has responded to my posts. I really do appreciate your comments and observations.   Keep ‘em coming.  – Bruce

3P – Putting People Phirst

With our 10th Annual Northeast Conference just eight days away, I’ve taken a little poetic license with the conference theme, Putting People First, to highlight just one of the outstanding teams who will be presenting at the conference:

3p Phirst

The “ideas of many” built from cardboard and brown paper.

Two weeks ago I had the honor of attending the ribbon cutting for the West Suburban Cancer Center in Needham, Massachusetts.   This innovative center was conceptualized in the spring and summer of 2012 by a diverse, dedicated cross-functional team of approximately 30 docs, nurses, technicians, physicists, architects, facilities engineers and administrators using a technical method referred to as Production Preparation Process, or “3P”.   While the structured, rapid brainstorming and prototyping methods used to design the new center design were important to the success of this large project, far more crucial were two principles that guided everyone’s thinking:

  1. A single-minded Patient First principle focused everyone’s thinking on the best possible experience and outcome for the patient and patient’s family rather than just maximizing local efficiencies of the providers.   Patient focus groups provided an essential perspective that kept the team grounded. Using tabletop models to simulate the patient flow, in one instance reducing patient moves from twenty-two to five, the team was guided by the philosophical position that the needs of the customer must come first.
  1. The project’s mantra, “The ideas of many are better than the experience of one,” challenged team members to collaborate in a way that encouraged everyone’s ideas.   With encouragement of BIDMC management and support from facilities and architects, the new center was actually designed by the people who work in the space. In the words of one team member, “We ended up with a design that no one could have foreseen when we started the project.”

As I entered the new cancer center and surgical pavilion, I recalled the original cardboard and brown paper structures that the team had built in order to test and improve their design. At the entrance, I was greeted by one of the physicians who participated on the 3P effort.   She remarked excitedly, “This new design really works!” That excitement was shared by other team members who attended the grand opening, and, I must admit, by me also. The technical achievement was outstanding, but would never have been possible without the focus on people.

There is so much more to this success story than I can relate in a post. I hope you’ll join me on October 1 and 2 at the MassMutual Center in Springfield, Massachusetts to hear more from this team and others who are ‘putting people first’. Still time to register and recharge your Lean efforts.

O.L.D.

Addicted to Lean

One of my early lessons in leading change came at the age of 19, while working in in a program known as VISTA, Volunteers in Service to America. The lesson was this:

Leading change is marathon not a sprint. Sometimes you just have to pace yourself, give your mind and body a break and do something frivolous and fun to maintain your balance.

In 1968, racial tensions were especially high in rural Florida, and neither my fellow VISTA workers nor I were feeling the love in the segregated communities we were supporting. We were mostly a bunch of passionate, idealistic kids, referred to by many of the locals as “outside agitators.”   For some of our volunteers, the tense, resistant atmosphere triggered a response that I call ‘passion overload.’ These volunteers responded to rejection and resistance by redoubling their efforts, a tactic that sometimes worked but ultimately left them without balance in their lives.   After several months of non-stop advocacy to disinterested and sometimes hostile communities, these overly zealous VISTA volunteers began to crash. Several quit the program while others just became paralyzed by overload and stopped trying. It’s not that they cared more deeply about creating change; they were simply unable to lighten up occasionally.

I escaped those fates, mainly because I had been serendipitously paired with a VISTA partner a few years older than I who was practiced at keeping things in perspective. At the end of almost every day, David T would find an amusing distraction to put the seriousness of the moment in perspective. Bear in mind this was the pre-internet era, not even television in the rural area where we worked. We found amusement in practical jokes and makeshift competitions like tossing rotten tangelos from the grove near our shack into the lake. Somehow that frivolous diversion was a counter balance to a very bad day on the job. It took a little practice for me to join in, but after a while I got the idea.  One night, while we were competing to see who could loft a tangelo the farthest, Dave commented about a fellow VISTA worker who had just quit out of frustration: “We can’t become addicted to our work or we’ll become ineffective.”

Fifteen years after VISTA, I found myself in another outside agitator role, this time in a manufacturing company that was resisting Lean. Managers liked the status quo, and workers distrusted the new kid in town. It reminded me of Florida. In particular, I thought about David T’s lesson. Be passionate, but don’t become addicted. To be effective, change leaders must take their work very seriously, but sometimes they also need to lighten up and have some frivolous fun. In that spirit, I have collaborated with my associates at GBMP to produce another short parody video dedicated to all you serious change leaders who need to lighten up a bit. We hope it adds a little balance to you work life: Click here if you feel like you’re becoming Addicted to Lean.

O.L.D.

By the way…

There’s still time to register for tomorrow’s free “Tea Time with the Toast Dude” webinar when I’ll discuss The Technical Side of Going to See. Starts at 3:00 pm EST and ends promptly at 3:45. Hope to “see” you there. Sign up here.

Also, for those of you who don’t already know (and for those who do, but haven’t finalized their plans), GBMP organizes an annual conference for lean practitioners from all business sectors, including healthcare. 2014 marks out 10th year celebrating the region’s lean community as we get together to learn, share, network and benchmark. We hope you are making plans to attend and getting a team together to take advantage of four exceptional keynotes, 5 concurrent tracks, more than 45 breakout sessions, a virtual plant tour, the Community of Lean Lounge and so much more. Get all of the details here.