Tag Archives: shigeo shingo

You’re My #1 Customer

I sat on the phone on hold this morning,  serenaded by Christmas music, interrupted periodically by a recorded message, “Your call is very important to us . . . “  As I waited, I mused on that scene from the Christmas classic, “Jingle All The Way,” where Howard Langdon (Arnold Schwarzenegger) frantically tries to power through the queue of waiting customers.  At the end of each call, he reflexively concludes with the expression “You’re my number 1 customer.”    The scene makes me chuckle because I’ve been on both ends of that queue many times.  I do believe that most of us really want every one of our customers to feel like #1, just as we would like to feel that way when we are on the receiving end.  We want perfect quality and zero hassles; and in the information age, we order today because we want it today.

Alas, while most organizations aspire to create that level of customer experience, their systems and policies make it very difficult.  Like factory inventory, customers must be placed in queues when they cannot be served immediately.   Lines at supermarkets, traffic jams, waiting rooms, and, yes, phone queues.  The invention in 1989 (not so long ago) of the auto-attendant was intended to improve efficiency by automatically directing calls; a job that older folks like me will recall was once done by a person.  Where the desk of receptionist once stood, there is now just a phone with a sign above it:  “If you know your party’s extension, please dial it now.”  

If you are calling from outside there are  further enhancements to improve the waiting experience:

  • A clarifying greeting. (“Please listen carefully to the following options, as our menu has recently changed.”)
  • An explanation. (“All representatives are busy serving other customers.” Or, “ Due to high call volumes. . . .”)
  • An apology. (“We’re sorry.  Someone will be with you shortly.”)
  • Music. (Who chooses that?  Improvement idea: Give the caller the option to choose.)
  • A marketing pitch. (“Rated #1 in service by . . . .” )
  • A message to let you know where you are in the queue.  (“There are 14 callers ahead of you.”)
  • An offer to call you back. (“Dial 1 if you’d like us to call you back . . .” )
  • Or the old standard. (“Please leave a message . . . )

An advanced auto-attendant may, in fact, intermix all of these responses – or you may be encouraged to use an app (“For faster service please contact us at www. . . .”)  Of course, the nano-second capabilities of the Internet do not guarantee an immediate response.  Here’s a screen capture of an online inquiry I made in February 2021 🙂

Shigeo Shingo referred to these enhancements as “superficial improvements” because they automate the waste of waiting rather than eliminating it.   All of the embellishments exist only because the connection is not available.  Ultimately, if the proper party does not pick up, as Eli Goldratt might have noted, we have just moved the bottleneck.    

The original auto-attendant concept was intended to improve the flow of the customer’s inquiry by quickly directing it to the proper party.  If we were to consider only the operational time, that might be true.   But, for a customer faced with a nested process of choices based on 10 phone digits, there are plenty of opportunities for mistakes, rework, and frustration.  For me, there is nothing more surprisingly delightful than to reach a real person like Howard Langdon immediately.  But I will confess, if you try to reach me by phone, you may hear: “That mailbox is full.”  (A little 5S problem.)

In any event, have a Merry Christmas and remember: YOU’RE MY #1 CUSTOMER.  🙂

O.L.D.

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My First Lesson

Just a little over a year ago we lost Hajime Oba, one of the great pioneers of TPS learning in the US.  In 1992, he was the founding manager of the  Toyota Production System  Support Center (TSSC), a non-profit affiliate of Toyota Motors of North America (TMNA), established to share TPS knowledge with North American organizations that showed a sincere commitment to learn and apply what he referred to as “true TPS.”   My company, United Electric Controls, submitted a request to TSSC for assistance in 1995, and it was our good fortune to begin our TPS journey with Mr. Oba. In the next several weeks, I’ll share a few stories to honor his rare leadership. Here’s the first, which represented my first meeting with Mr. Oba, just before TSSC agreed to work with us:

On the day of Hajime Oba’s initial visit to our site, I had arranged for a short meeting with our owners to discuss the nature of TSSC’s service and to reaffirm our commitment to actively support the process.  Next, we went to floor to observe.  “Can you take me to shipping,” Mr. Oba requested.   This location, I learned sometime later, was selected because it was the point closest to the customer.   As we stood in an aisle next to the shipping department, Mr. Oba’s eyes traveled to persons working, then to pallets of material and then to the shipping dock.  After a minute, he turned his glance to me for a moment and then back to a scan of the shipping area.  He was sizing up the situation both as a whole and as a series of operations.  I heard a faint murmur as he watched: “Hmm.”

Then, he turned back to me and asked this question:  “Where’s the shipping?”   I responded, “It’s right here, we’re looking at it.”   Unimpressed with my answer, Mr. Oba murmured again as he turned away as if to invite me to watch with him.  As we observed, he declared, “I don’t see anything shipping.” 

“Oh,” I thought to myself.  He was not referring the department.  He was asking why no products were leaving the shipping to dock en route to the customer.  “It’s still early in the day.” I explained, “Our first shipment is not until 10:00 a.m.”   Even as I uttered these words, I realized this was a bad answer.  “Why 10:00 a.m.?” Oba inquired.  “Because that’s when UPS picks up,” I said.

Mr. Oba looked at me with an expression of mild impatience, but as I was waiting for another “why”,  he shifted his line of questioning.  I suspect he felt he’d already made his point.  Instead he walked to a pallet of goods sitting next to the aisle and, pointing to it, asked , “When is this shipping?”  A little frustrated at my ignorance, I explained that I’d have to check with the shipping supervisor to answer that question.  Mr. Oba waited while I went in search of information. 

I returned with an answer that I felt would conclude this line of questioning:  “The supervisor says this order is on credit hold.”  In my mind, the order status was beyond the purview of operations.   But Mr. Oba persisted.  “How long has it been sitting here?”  Once again, I had no answer and had to rely on my shipping supervisor who advised that that order had been sitting complete for nearly a month!  As I related that information to Mr. Oba, his gaze seemed to ask “What kind V.P. of Operations would let a customer order sit in plain site for a month?”  I was embarrassed, but foolishly persisted, “It’s on credit hold and we can’t do anything about that.” 

“Why is it on credit hold?”  Mr. Oba asked.   Flustered, I replied, “I don’t know, but I’ll find out.”   A call to our accounting department yielded a “We’ll have to check into that” response.  I promised Mr. Oba I would find the answer.  

About an hour later, I received an explanation that was both humiliating and illuminating.  The order was on credit hold because one of largest distributors, ABC Sales, had exceeded their credit limit.  “Are they a bad payer?” I asked, Bob, our accounts receivable associate.  “Oh no, they’re just  buying a lot this month,” he said, “and that puts them over their credit limit.”   “Then why don’t you release them from credit hold?”   I asked.   Bob responded, “We will, absolutely, if we are authorized by sales management.”  

My credit hold odyssey continued to the sales department.  “Why haven’t you released ABC Sales’ order from credit hold?”  I asked Charlie, the sales manager.   Charlie explained, “We have no internal visibility of orders on hold.  Unfortunately, we usually find out when customers like ABC Sales call us to complain about a late shipment.” 

Several hours had passed.  Mr. Oba had already departed, but was aware of my investigatory efforts if not the final answer to his question.   Ultimately, that answer led to a process change that would trigger a credit hold inquiry immediately rather than after a customer complaint. 

I asked myself, why had I not seen what Mr. Oba had uncovered in a glance?  I missed the details and I also could not see the big picture.  Perhaps that was Oba’s first lesson for me.

What do you see when you go to the floor?   Please share a comment or story.

O.L.D. 

BTW —  TSSC will be joining us on October 6-7 at our 17th annual Northeast L.E.A.N. Conference, as will the Shingo Institute, the Lean Enterprise Institute, MEP’s from New England, AME, SME, MHLN and a host of great presenters.  What a great opportunity to get out in a safe CDC-compliant environment to re-energize your Lean journeys and establish new relationships with other passionate Lean organizations. 

But – if distance or company policy prevent you from traveling this year, we’ll not only be live and in-person we’ll also be live streaming for virtual attendees – and recording  all sessions for all attendees!  Check out the outstanding agenda at this link:  Getting Back to the Future.  Hope to see you at the MassMutual Center in Springfield MA this October. 

When PDCA Meets Silos

PDCA – Plan, Do, Check, Act (or Adjust) — is one of those acronymic concepts that regularly finds its way into Lean discussions. Descended from Francis Bacon’s scientific method (hypothesis, experiment, confirmation), PDCA has become a ubiquitous catchword for business process improvement.   From standardization and problem solving on the front line to iterative product and process design to Hoshin,  this approach is the engine for continuous improvement.  But like many Lean concepts, when layered over a traditional organizational structure, PDCA can fall far short of its promises.

My initial exposure to the concept, Shigeo Shingo’s Zero Quality Control: Source Inspection and the Poka-Yoke System offered an unusual, non-technical insight into PDCA.   Referring to the concept in the context of quality improvement as “informative inspection,” Shingo posed a  couple of critical questions:

  1. How rapid is the feedback? and
  2. Who is involved?  

Traditional feedback loops were gated, according to Shingo, by a Quality Control function,  a group of subject matter experts “enshrined on a lofty mountain” far away from the “Production Village.”   Several outcomes of this approach were:

  1. Checking (inspection) was a batch process, separate from production, with all of the batch’s attendant delays.  Information was yesterday’s news by the time it reached the lofty mountain.  Whatever conditions may have caused a non-conformance were lost in time.
  2. The person’s doing the Checking were remote from the workers, both physically and interpersonally.   Division of labor became implicitly unequal: thinkers and doers.  
  3. The Doers in Production Village, no longer had responsibility for quality and often no longer had even the capability to Check.   

Regrettably, these outcomes noted by Shingo in 1985 are still commonplace today. As a consultant, I regularly observe long delays to set-ups caused by remote first-piece inspections and worse – forensic root cause analysis initiated long after defects are created.  But worst of all, the folks closest to the  problems are not at the table.  When PDCA meets silos, it too becomes siloed.  Information from production to QC flows through a semi-permeable boundary,  one-way at best and subject to bias and conjecture.  Not a very favorable environment for problem-solving.

Similar boundaries between production and engineering also obscure opportunities for process improvement. In a social model where production workers are doers and engineers are thinkers, the most critical process information is often lost.  An engineering manager once remarked to me “If all employees were engineers, we wouldn’t need mistake-proofing.”  Shingo spoke to this kind of silo as well, coining the term “table engineers” to describe engineers who just sat around a table to solve problems – no interaction with the floor.   These kinds of social barriers dwarf the technical challenges to effectively applying PDCA. 

At the executive level, strategy deployment often only feeds forward only and then typically only to middle managers.  In this case, the silos are vertical as well as horizontal.  Eli Goldratt likened this approach to a game of chess where the players were in a different room from the chessboard and can not see their opponents’ moves.  Check and Adjust steps are not even possible.  And the Doers — employees who must implement  — are frequently not even aware of the big picture. Small wonder that the deployment aspect of strategy deployment is frequently lackluster. 

In fact without acknowledgement of traditional organizational boundaries and application of intentional feedback loops,  PDCA can be short-circuited between any two disciplines yielding only the appearance of science.    The problem to solve is not technical.  As Steve Covey noted,

“A cardinal principle of total quality escapes too many managers: you cannot continuously improve interdependent systems and processes until you progressively perfect interdependent, interpersonal relationships.”

Where are your PDCA boundaries?  Are they barriers or intersections?  How are the interpersonal relationships?   Do pecking orders short-circuit PDCA?  What systems do you employ to foster the free flow of information?    Please share a  thought.

O.L.D.

PS I don’t know about you, but I personally am looking forward to “Getting Back to the Future” and seeing old friends and new, at the 17th Annual Northeast Lean Conference – LIVE & IN PERSON – in Springfield MA on October 6-7, 2021. Registration is open and there’s an early bird rate in effect until the end of July. Trust me, it’s a bargain. There will be four tracks, four super keynotes, dozens of presentations that will educate and inspire you and your whole team, plus benchmarking in the Community of Lean Lounge and networking at our Lean After Dark social event. Will you join us?

Tools or Culture?

With our annual Northeast LEAN Conference just a few days away, I want to relate a personal story about the theme of this year’s conference,

The Integration of Tools & Culture:

The first two books I ever read about Lean were Zero Inventories by Robert Hall and Japanese Manufacturing Techniques by Richard Schonberger.  In 1985, these definitive academic works were among just a few sources of information about what was then referred to as Just-In-Time, or JIT for short.   As I was just starting to manage a factory at that time with inventory turns of less than one (really), these JIT “how to” books seemed like the solution to my problems.    I owe Hall and Schonberger a debt of gratitude for their early reports about technical aspects of Toyota’s incredible improvement system.  But, for me, the single most important shred of information from these academic texts was a footnote in Hall’s book that referred to a then unknown industrialist by the name of Shigeo Shingo.  Hall cited Shingo’s book, A Study of the Toyota Production System: From an Industrial Engineering Viewpoint.  This book presented the technical aspects of Lean in a context of revolutionary concepts and principles.  The original 1982 version was a crude translation from the Japanese, but reading it created a sense of excitement about a wholly new way of thinking about work.   To be sure, Shingo’s explanation of tools echoed reports from Hall and Schonberger, but as one of the key inventors of TPS, Shingo shared a deep understanding that was grounded in unique personal experience and wisdom of a creator.  While he is most often remembered for introducing technical concepts like quick changeover and mistake-proofing, Shingo’s greatest contribution to my learning was in providing an integrated image of TPS, a system that was both technical and social science – tools and culture.  One could not exist without the other.  Beyond that, he conveyed his personal struggles to overcome what he referred as “conceptual blind spots” of his clients, Toyota among them.  He gave us the Law as well as the Gospel:  Lean is an immense opportunity but equally a daunting challenge to rise above status quo thinking.  “Keep an open mind,” he reminded us.  According to Mr. Shingo, management’s #1 job was “volition,” i.e., a passionate commitment to creating an environment that favored improvement. These were lessons that supported my organization and me as we learned new tools and unlearned old concepts at the same time.

Today I’m often asked, “What do we work on first, tools or culture?”   I answer, in context of the Toyota Production System, neither has substance without the other.  They are two sides of the same coin. We need to learn them together.   Our 2017 Northeast Lean Conference is dedicated to reinforcing that message.   Lean tools are essential as means for improvement; Lean culture is essential to enable us to see beyond the status quo. If you haven’t already registered, here’s a link with more information:

http://www.northeastleanconference.org/about-ne-lean-2017.html

Hope we see you next week in Worcester, MA for a couple of energizing, informing and inspiring days.

O.L.D.

Reflecting on Waste

For me, Taiichi Ohno and Shigeo Shingo are a bit like the Lennon and McCartney of waste elimination. Together they frame the technical and social sciences of what we call Lean today.

Taiichi Ohno tells us there are seven wastes that account for 95% of the elapsed time between “paying and getting paid.”  Most Lean students utilize an acronym like TIMWOODS as a mnemonic to help them remember each of the seven. Many, however, are seven waste parrots. They can repeat the wastes, but don’t have a deep understanding of their significance.

These wastes, according to Shigeo Shingo are measurable impediments to flow, if we only can see them. Much of Shingo’s writing deals with unmasking waste, hidden from us by our “conceptual blind spots.”  Shingo declares, “The most dangerous waste is the waste we do not recognize.” Wastes like MOTION, masquerade as work until we understand that breaking a sweat searching for a missing tool is not really work but something that gets the way of the work and flow of value to the customer. “Elimination of waste,” Shingo declares, “is not the problem. Identification of waste is the problem.”

Students of Lean are advised by Shingo that OVERPRODUCTION, producing more than is needed or producing too soon, is the worst of the seven wastes because it causes more of the other the other six wastes – more inventory, more transport, more waiting, more defects, more waiting and more processing.

Then Shingo adds an 8th waste, unmeasurable in an industrial engineering sense, but nevertheless according to Shingo, worse than all of the first seven wastes: Loss of creativity. Management’s failure to recognize the brilliance and experience of their employees places an insurmountable constraint on the identification and elimination of waste.

Ohno exhorts managers to “go to the Gemba” in order to see the waste and show support for employees.  He is not referring to visiting the floor only to review huddle boards: “People who can’t understand numbers are useless. The Gemba where numbers are not visible is also bad. However, people who only look at the numbers are the worst of all.“

Shingo says, “Any reasonable person will try to remove waste if he or she can see it.” On this one point, I must disagree with Dr. Shingo. On a daily basis, in my work, I visit the workplace with operating managers where we observe together waste in its many forms.  When we reach out to employees, they share problems and struggles with us, wastes that prevent them from doing their best.  But when I return to these sites, even after weeks have elapsed, the waste that employees have shown us often remains. So I’ll add a corollary to the worst and most dangerous wastes:  “The most demoralizing waste is the waste that managers DO see in the Gemba and yet do nothing about.”

O.L.D.