Tag Archives: TPS

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.

The Final Frontier

On May 5, 1961, Alan Shepard became the first US astronaut to journey to the “final frontier.”  Atop a Mercury rocket, Shepard launched into a fifteen-minute suborbital journey reaching an altitude of about one hundred miles before returning to earth.  His space capsule, Freedom 7, was a wonder of science weighing a little more than one ton and loaded to the max with avionics and life support apparatus. Yet, this pioneering venture into endless space would also afford almost no space for the passenger.  According to launch engineer, Guenter Wendt, “astronauts entered their capsules with a shoehorn and departed with a can opener.”   I remember watching footage of Shephard squeezing into his capsule.  The memory still creates pangs of claustrophobia.

Ironically, space constraints faced by NASA fueled a revolution in miniaturization evident in almost every innovation of modern society – from laptops to cell phones to transportation to medical devices to all things Internet.  The need to pack more utility into a small package has changed everything.  Or almost everything.  Here are some recent exceptions:

“We’re adding a new wing to manufacturing,” a colleague related to me recently, “we’re running out of space.”   As I glanced around a shop floor crowded more with material than machines, I asked, “What are you going to put in the new space?”  “We’re just going to spread out,” he said.  “This is a good time to build before interest rates start to climb.”

Another manufacturer advised recently that he was building a Lean warehouse.  “What’s that?” I asked.   “We’re relocating all of our raw material to a location that’s closer to the main highway,” he said. “We need to add several machines, so were Lean-ing out the space.”    “Aren’t you just adding more space and moving inventory farther from your floor?”  I asked.  His response: “Warehouse space is cheap.”

A major hospital requested Lean assistance to re-design its perinatal services in order to accommodate more patients.  After reviewing the current operation, I recommended that existing space could be repurposed to handle the projected growth. “No,” they said, “We’re cramped. We need more space and the budget is already approved.”

It seems that decisions regarding space are driven more by claustrophobia or perceived worth than actual need.   Flow distance may double or triple as a result of expansion, but additional space somehow still equates to growth.   More space is viewed as an investment, an alluring addition to the balance sheet, or a badge of success.   Only on rare occasions do I encounter a growing business that is interested in reducing space. Perhaps, then, space is the final frontier.  Not more space, but less.   I wonder how much Lean progress would be made if space were seen as a constraint for business as it was for NASA’s Mercury launch.

How much space do you have?  Too much?  Too little? Share a story.

O.L.D.

PS I’m teaching the Shingo Institute workshop “Continuous Improvement” at MassMutual in Springfield next week and a few seats remain if you’d like to join us. Learn more here.

PPS I’m also looking forward to presenting my monthly “Tea Time with The Toast Dude” webinar on June 20th. It’s free! The topic is “Silver Bullet Mania”. Intrigued? Read more and register here.

Lean Wizards

wizardOctober was Lean conference month for me: First our own Northeast Lean Conference in Worcester (pronounced “Wustah”), then the international AME conference in Dallas and finally, the mid-Atlantic Lean Conference in Timonium, Maryland.   These annual assemblages of Lean wizards are themed to inspire, inform and reinvigorate true believers and newbie wannabees;  maybe not wizards, but at least committed to continuous improvement at some level.  I’m always flattered when someone sees me at conference and wants a selfie with the “toast guy.”   But really, if we were wizards, there would be a lot more Lean magic out there in the workplace.   After forty-five years in the workforce, almost thirty of them spent personally pursuing TPS understanding, I worry sometimes that the major product of TPS so far has been more wizards, not more excellent organizations.   When I began my Lean odyssey, for example, there were precious few persons or functions in any organization dedicated to continuous improvement: no kaizen program offices, no value stream managers, no lean accountants, no lean trainers, no belts, and no lean consultants.  Today there is an entire industry dedicated to training, developing and placing these folks.

What struck me at October’s Lean conferences was how nomadic this community of wizards has become.   Rarely do I find a consultant, internal or external, who has remained with the same organization for more than a couple years.   Some have moved on for higher pay, but most it seems it seems are refugees from organizations whose commitment to improvement has waned.  Gallows humor regarding shifting sands beneath Lean foundations abounded in private networking discussions, and more than a few business cards changed hands.  While building a Lean culture has emerged as singularly important to Lean transformation, it seems that the wizards do not find enough stability within their organizations to stay in one place long enough to help to create that culture.

Many years ago I was asked to present at a Lean conference at University of Dayton.  They requested specifically that I speak on “Survival of the Change Agent.”  When I suggested that I felt uncomfortable with the topic, they pleaded, “But we can’t find another change agent who has survived.”  No doubt, that was an exaggeration, but even in 1992,  Lean transformers  were careful not to push the Lean envelope too far.   So perhaps nothing has changed in twenty-five years. Last week I received a request for help from a talented and insightful Lean change agent whom I will have known now through four different companies.  She continues to grow and develop her skills while the organizations from which she has moved on have plateaued in their Lean journeys.   Maybe there are just more wizards in flux today.   At the recent AME Dallas conference, a Lean colleague and vice president of opex for a large corporation mentioned to me  “I have never seen so many resumes from continuous improvement persons in transition.”

To my readers:  Do you also see this phenomenon?   What are the implications? I’m not sure what to think about this, but it’s a little spooky.   Happy Halloween.  : )

O.L.D. 

PS A reminder that the onsite discounted registration price for our 13th (another spooky coincidence?) annual Northeast Lean Conference was extended to November 8th. Don’t miss out on saving 30% per seat, simply by registering online in the next week.  Only $665 per person (normally $950).

Profitless Part Proliferation

leadwireI wrote a post a little more than five years ago about Variety Reduction Program (VRP), an amazing but little known product design optimization tool.  At the time I referred to VRP as an idea whose “time had not yet come.”  Last week, as I gave a short presentation on VRP, I realized that five years later its time apparently still has not come.  In the interest of creating more interest around this significant technique, the following post expands on my epistle from 2011 and provides a couple of tangible examples of that significance from my own experience.

First, I think the technique deserves a new, mnemonic and alliterative moniker:  Profitless Part Proliferation.   I suggest this clarification because the word “variety” has an unfortunate positive connotation in the sense of greater customer selection, and therefore turns off sales and marketing folks before you can explain that VRP is not about product line trimming.  That was my initial experience in my own company many years ago.  “Just another anti-customer maneuver by operations,” I heard.  In fact, VRP aka P3 is about trimming needless part variety and all of its associated costs (e.g. drawings, inspection, purchase orders, stocking locations, etc.)

Secondly, I would like to call attention to the false sense of profitability that is often created through the addition of new parts and assemblies.   Minimizing the functional cost of material (the one that shows up on variance reports) for a single product looks good on paper, but almost always creates huge overhead costs arising from complexity.  Engineers and cost accountants typically focus on the apparent profit from product X, but ignore the resulting system costs.   They can’t see the forest for the trees, so to speak.   The following two examples for common part commodities, one a purchased part and the other a sub-assembly, speak to this problem:

O-rings.  A project was initiated to examine O-ring specifications and dimensions – things like durometer, chemical resistance, temperature range, ID and OD.   The first thing we realized was that there was no single repository for this information.  Our computer part master record contained dozens of fields to support ordering and costing, but most important design information was squished unintelligibly into a description field.  After cataloging specs and dimensions for O-rings, we realized that twenty-nine different O-rings were stocked.  Our discoveries:

  • Our information system made it difficult for designers see what was already available when they were choosing parts. It was just faster and easier to go to a supplier catalog. An alarming amount of part variety arose simply from poor design tools.
  • Once we were able to view O-rings as a part type from a design standpoint, we realized there was considerable overlap in specs and dimensions. Of the twenty-nine O-rings we cataloged, we determined that all production needs could be handled by only five O-rings.
  • Of the five remaining O-rings, one had metric dimensions because of unanticipated tolerances with mating parts. Rather than deal with correcting the mating parts, a unique O-ring was selected as a “bushing.”  Incidentally, that particular new part required the addition of a new supplier.

The rub was that the most robust O-rings cost a few cents more than marginally acceptable specifications.  Cost accountants argued that using the most robust  O-rings would increase product cost, ignoring the additional costs of maintaining two-dozen unneeded parts.  In fact, as we were a low-volume high-variety producer, we pretty much had to order months of supply for every one of the different O-rings anyway.  Finally, engineers argued that the cost of an engineering change – particularly a drawing change – was too great.  “We have better things to do” I heard.   Fact is, engineers are typically not rewarded for fixing up old parts; they are recognized for designing something new. Ultimately, however, some concessions were made in the interest of experimentation and the O-ring variety was reduced.

Lead wires.  A more egregious example of Profitless Part Proliferation was the variety of lead-wire assemblies. As a manufacturer of electro-mechanical products, my company built thousands of different lead-wire assemblies to support perhaps three dozen product families. At one point we dedicated a full bay of ASRS storage to lead-wires.  Still, lead-wire assembly stock-outs represented a major cause of late customer deliveries. Lead-wires were cut and terminated in large batches owing to the long set-ups on the machine.  While working on set-up reduction of the lead-wire machine, a production team lead astutely wondered why many lead-wires differed by insignificant lengths, as little as 1/32”.  During a project launched to catalog the variety in gauges, stranded or solid, terminations, insulation color and material – and many other specs – we did in fact identify an important opportunity just in lead-wire length variety.  This variety, we suddenly realized, stemmed from a single statement regarding the length of the connection leads outside the end item enclosure.  Sales and technical literature read something like this “Lead-wire length:  12” outside enclosure.”  In fact, our customers would have been happy with “at least 12” outside enclosure.”   Twelve and one-half inches would have been fine, as would twelve and one-thirty second inches, and so on.  The authors of VRP advised us to be clearer regarding which dimensions should be fixed and which could be variable within a range.   Once the product specification was changed to reflect “at least 12 inches outside,” the number and type of lead-wire assemblies plummeted!  So did the stock-outs.

These are just two of many specific examples where parts proliferation was pointless and profitless.  Now, before you say to yourself, “Oh that would never happen in my factory,” I’d encourage you to choose a common commodity of a purchased or manufactured part, and investigate the variety.   Please share a story for our readers about your discoveries. (One lucky commenter will be selected to attend GBMP’s 12th annual Northeast L.E.A.N. Conference coming in October to Worcester, MA. I am delighted to reveal our four exceptional Keynote presenters will be: Art Byrne, John Shook, Steven Spear & Dr. Eric Dickson (not to mention the forty other educational, informative, motivational and fun breakout sessions).

Shigeo Shingo was quoted as saying “The worst waste is the waste we cannot see.”   Help us to see by sharing an example from your experience.   I’d hate to think that I’ll be reflecting again in another five years on an idea whose time still has not yet come.

O.L.D.

BTW: GBMP’s calendar of Shingo Institute workshops is jam packed through October. Check it out here and join us for a workshop (or two) soon.

lfxAlso, I’m happy to share that GBMP’s online streaming video subscription service which we launched in March and call Leanflix  is receiving terrific reviews. We are so glad that we have been able to provide convenient, low-cost, on-demand video training content to meet the varied and ongoing training needs of so many in our Lean community. If you haven’t checked it out, I hope you will set aside a little time this week to do so.

– Bruce

 

Traditional Lean?

Twice in the last month I’ve heard the phrase “Traditional Lean” used in public presentations.   In neither case did the presenter explain the expression, but traditionalleanone displayed a slide with a Venn diagram showing the overlap between Lean and Six Sigma.  I suppose this means that he defined Traditional Lean as meaning Lean plus something else, in his case, Six Sigma.   For both presenters, however, the word “Traditional” implied passé.  They were moving on.  Lean, or Lean-Sigma, if you prefer that definition of “traditional”, was a dated process, in need of enhancement or even replacement.  In the 1980’s, I referred to Lean and Six Sigma respectively as TPS and QC Tools.  Each was derived in part from W. Edwards Deming’s post-World War II reconstruction efforts in Japan.  In that pre-Lean era, there was little literature about TPS and few consultants.   Being one of those folks old enough to remember when there was neither Lean nor Six Sigma – at least in name – I find this latest buzzification of Lean to “traditional Lean” amusing.  It’s certainly not the first time we’ve been encouraged to employ alternative approaches to productivity improvement:

By 1985, when American manufacturing was reeling from declining market dominance, an HBS article entitled “MRP, JIT, OPT, FMS” began what has since become a veritable alphabet soup of acronyms each describing a supposed elixir to the problems of rising costs and disappearing customers.  The article is worth a read, if only from the standpoint of showing how focused we were at the time on better methods for scheduling production and reducing inventories.

JIT was the popular surrogate for TPS in the mid-80’s, often juxtaposed with MRP (Material Requirements Planning.)  Back then, the pejorative “traditional” adjective was used to describe push-production of which MRP, a network scheduling system, was a part; we called it “traditional manufacturing.”

FMS, flexible manufacturing systems, was a techno alternative to TPS that proposed superior flexibility through use of robotics and automation to move material and information through the factory.  In a notorious example of FMS, General Motors attempted in the 1980’s to create fully automated facilities.  All told, GM spent 90 billion (yes, billion) dollars to “modernize” its operations.  While TPS sought to elevate employees, GM tried to automate them out the picture.   Ultimately, GM’s lights-out people-less plants were deemed unworkable and were mothballed.

As for OPT, Optimized Production Technology, this was another alternative to TPS from Eliyahu Goldratt (author of “The Goal”) to develop a computer-assisted queuing model that scheduled around bottlenecks.   After taking a couple of Dr. Goldratt’s classes in the late 80’s, I decided that if I could actually define all of the parameters needed to run OPT, I would know so much about my plant that I wouldn’t need any software to schedule around bottlenecks.  I’ve always been an Eli Goldratt fan, but this particular TPS alternative, like MRP and FMS was yet another software/ technology solution to a problem that went far deeper than automation of information and material flow.  Interestingly, all of the alternatives to TPS noted in the HBS article, proposed information and production automation as viable solutions to flagging productivity and competitiveness.   Even TPS, was thought to be only a scheduling model.

In the 1990’s, along with renaming TPS to Lean, came more techno solutions: Agile manufacturing, boasted Lee Iacocca at Chrysler, would “leapfrog” Lean.   Agile, described at the time as the next step “beyond Lean,” promised faster response and greater flexibility through a combination of IT integration and physical re-organization.  It was big on concept but light on details.  At the same time, Jack Welch, CEO of General Electric, popularized yet another improvement method, 6s (Six Sigma), presented at first as an alternative to Lean and later through the marketing genius of a large consulting firm, mashed into “LeanSigma.” The mid-90’s, also brought us business process reengineering, BPS, an IT-driven methodology aimed at radical process change.  This top-down change method had a de-humanizing impact on organizations; a condition that many understand today is a major deterrent to continuous improvement.

And all of these software-assisted tools can be rolled into one mother acronym, ERP, which is MRP plus all of the above except TPS.   Readers of one my recent posts will recall ERP referenced as “the granddaddy of excuses” for not spending time on continuous improvement : )

So what does all of this have to do with “traditional Lean?”  Here’s my take:  Over the last three decades, organizations have spent too much time searching for technical alternatives or supplements to Lean without first understanding Lean basics.   I’ve listed just a few of these experiments: MRP, FMS, OPT, Agile, BPS, 6s, ERP.   Perhaps you can add some others.  While there may be merit to some of the thinking behind each of these concepts , they have unfortunately  diverted attention and resources away from the hard work of learning people-centric TPS.  I think “traditional Lean” is TPS.  It’s what Lean was before we consultants got our mitts into it.  Call me a TPS ideologue.  I’m good with that.   Do you agree or disagree?  Share a thought.

O.L.D.

And don’t forget:

  1. Today is the last day to get the early bird price on registration for The Northeast Lean Conference coming October 4-5 in Worcester MA. Visit www.NortheastLeanConference.org to learn much more.
  2. We’re still accepting list items for Kanban misconceptions from my last blog post and will randomly select a winner for one free registration for the conference on Friday of this week. See Eye of the Beholder to add your comment.
  3. GBMP’s calendar of Shingo Institute workshops is jam packed through October. Check it out here and join us for a workshop or two soon.