Managing by Means and Not by Results

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Toyota has been successful at what they do for several years. Many have tried to imitate them only to be limited by their understanding of the “know why”. One of the main philosophical difference between Toyota and many others trying to follow their methods is that Toyota truly manages by mean and not by results. I just started to read “Toyota Kata” by Mike Rother. It was the interesting conclusion of the foreword written by H. Thomas Johnson which inspired me to write this post.

Lean Philosophy is less discussed topic for the practitioners who merely want to get on the “me too” boat. The blame partly goes to our existing management system which is too focused on end results than on the means to get there.

What are the means and why are they important?

Adopting the continuous improvement of process is the means for financial success and long term growth of the company. But if you focus on the financial results only and not worry about the means your people use it will harm the long term growth and success of the company. The means come before the profits. This wisdom is captured in the verse of “Bagvath Gita”:

Karmanye Vadhikaraste Ma Phaleshu Kadachana,

Ma Karma Phala Hetur Bhurmatey Sangostva Akarmani

It simply means “Do your duty, without the being obsessed about the results.” Our duty here is continuous improvement the process that delivers value to the customer.

Here are some of examples where ends become important than the means for short term gain, but ultimately causing long term harm:

  • When you ask to ship all orders o same day. It could lead to bad practices like having excess inventory or working overtime
  •  When you want better utilization of labor without considering the demand, it will lead to practice of over production

We see similar examples in our day to day life yet we fail to understand the subtle difference it makes when you put the right means ahead of the profit. What are your thoughts? Are you truly focused on the means or just the end?

 

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The Need for Training in Small Companies

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There is no doubt for an organization to learn and grow you need to develop your people. But the challenge especially for small companies is they neither have the time or money to deliver it. I think it is probably because we consider training as a luxury only for big companies with vast resources. This thinking needs to change. Training should be integral part of the routine and should be treated as an activity we pursue only if time permits.

I am not talking about training about specific tools, but the most basic training required for the people in the industry.  In my opinion it is learning the skill of problem solving. There may be specific tools to solve the problems based on type and industry but those are secondary compared to the basic scientific way of problem solving.

Why training is a challenge and why small companies need to address it?

Small companies cannot always hire experienced people due to high cost. So for many the best options are to hire a less experienced individual or someone freshly out of the college.  These people may not necessarily be equipped with all the skills to be effective at their job from the first day.  This is where it gets tricky. The companies know that these individuals need to be trained and developed, but instead it is thought of as an unnecessary cost and they are let on their own to find the answers. Over time if they are not properly guided, they become more experienced in just fighting fires than solving problems. Problems are not solved permanently, they recur and cause waste. The cost of this waste may be far greater than what would have been for the training. But since they are to relate to each other, it is never considered.

What could be the solution in this scenario where people can be equipped with right skills and also there is not strain on the budget or time?

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Understanding Kaizen Through Daily Life Example

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“Kai” change “Zen” for good .Even if you have never heard of it; there is a possibility of you already practicing it. Let’s take an example of cooking. If you are cooking for the first time, it is very likely you run into many obstacles. You may not easily find where all the ingredients are stored, and then locate the utensils. Once you are settled and starts cooking you realize, it would have been better to prepare the food before you start. You will try to solve each one the challenges as you start cooking regularly. This will involve small gradual changes. Even the recipes will be modified, tried, tested till they are perfected.

The gradual change to improve our process is called Kaizen .We take little steps everyday towards the better condition. This in a company where everyone is empowered to change their own process for good one small step at a time will be able to maintain the momentum for the change knowing how to create a culture is a challenge. Some cultures are more adapted to this philosophy then the other. Masaaki Imai in his book “Kaizen” says that it Kaizen that has helped Japan to masters of “Flexible Manufacturing”. Is it possible to create culture that accepts this philosophy of continuous improvement?

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The Lean Journey: Motivation gets us started but only habit can keep us going

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I am always interested in how to get people started on their lean journey and also how different cultures and companies behave, learn and progress on their journey. What I have seen working in India and here in US is that many times people get intimated by the change when you throw in all the lean jargon and fancy Japanese words. I learned about lean for more than a year at the beginning of my career without knowing that it is called “Lean”. It was just systematic application of common sense to solve problems and improve every day.

Many people start on the journey and few continue long enough to realize organization-wide transformation. Reasons may vary from place to place. The most common one is lack of commitment to continuous improvement from the top management.  Other one which may not be realized by many trying to transform the company is the change in the management from traditional to Lean management.  The biggest, and also least known, reason for not continuing is not being able to transform the mentality of the people involved.

Most people start on their lean journey because there is a desperate need. This may be increased cost, very long lead times which ultimately may lose a customer or close the whole business. This is their “Burning Platform”. This is often the motivation that gets many people started on lean journey but if they fail to transform the management to lean management and managers to lean manager, then they will go back to their old ways once the problem is solved. Burning platform is the opportunity to get into everyone’s mind because that is the time it is open for change. This change is possible by changing the habits,   one the tools to facilitate this change is Leader Standard Work. You religiously do the right thing every day till it becomes a habit.

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Build Your Own Stand-Up Workstation: It is Free to Get Started

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This is for anyone who wants to try a standup desk for their office or home office

1. Free to get started

It is very easy to get started with Standup Work station. If you just want to test the idea without investing into any furniture, just stack few books or set a box on top of your existing desk . This setup will enable you to decide if this is will work for you. Standing up may be difficult for you initially, so don’t be afraid to sit every once in a while till you get used to it. It may take a week for you to get comfortable. The limited space on the desk makes it clutter free. you tend to keep only the items you need on the desk

2. I liked the set-up , now I want the real thing!

Now that you have tested your setup and you are comfortable standing you may consider building or buying a stand-up desk. Building your own desk is not possible for everyone so I have included some ready to use Stand up desks below. Click on the picture check them out and find the one that is suitable to your need.

Option 1 Option 2 Option 3

3.Accessories that you may need to build mobile stand-up station

This is for the ones who like to be out there on the gemba. If you want to take your desk anywhere on the shop floor all you need is the a stand-up desk with casters and a laptop with wi-fi(optional) connection. You may also consider buying a Power strip (shown below) if you will be out there for extended period of time.

I use a a desk-top computer with UPS which provide about 20 minutes of power when moving around. Since it did not come with a inbuilt Wi-Fi capability I have to use a USB Wifi Network Adapter. You may not need this if you don’t need to log into a network to access your files. It is better to avoid any distraction of surfing the web when you are on the shop-floor.
I hope this will get you started with your own Stand up Desk. Please feel free to share your experiences or pictures of your standup desks. I will keep posting my progress with this experiment on my blog and will try to incorporate suggestions provided by all of you.

 

 

You may be also  interested in:

1. Standup Workstation

2. Standup Workstation: After 2 Weeks

3. Stand Workstation: What is on the Wall?

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Stand-Up Workstation: What is on the wall?

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After a few email queries and comment received on the on previous blog post “Stand-Up Work Station: After 2 weeks” I have finally decided to reveal what is on that wall. It is still evolving I am just trying to see what works the best for me and sticks to the wall for long time.
I have tried to markup the picture to explain each thing displayed on the desk and the wall. hope this helps to answer all those questions.
For more details about the how this Workstation evolved you may check the following post
1. Stand-Up Workstation
2. Stand-Up Workstation: After Two Weeks

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Learn From Other’s Mistakes But Don’t Forget to Make Your Own!

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We we try something new often people find out how others have done it in the past to avoid doing the same mistakes . Like in lean transformation we try to copy the path taken by the successful companies and apply tools and methods exactly the same way thinking we can save ourselves the pitfalls of the change process. We want to learn how people failed doing something and then avoid doing it ourselves thinking we are saving ourselves from the trouble. This may help us for short time but is not necessarily the best way.
Each organization, each process and people are different. We cannot expect the same results by applying what others have done. There is a need to experiment, allow failure and learn from it. People learn a whole lot from failure than from a success. Failure forces people to think, by thinking we learn by learning we improve.
By all means get out there and learn from others but don’t stop experimenting yourself. Learning from your own mistakes will make you and your team confident and successful at implementing Lean Transformation and will make you experts specifically for your processes. This knowledge cannot be build within the organization by just learning about what others are doing.

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Mission Statement: Part 2- Decoding the Mission!

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I got some good feedback on my post about Mission Statement from the Lean Community (Link to Discussion). After considering the inputs and some thinking I have slightly changed the statement to the following:

“Right the first time on time by optimizing all resources in safe environment via engaging people towards the goals of our Organization”

Writing a good mission statement is just the tip of the ice-berg. Best Mission Statement could be useless if we don’t have a mechanism to convert it in to a language that is easily understood by everyone in the organization. To achieve the Mission we should be able to know what the objectives that enable to reach our goal are. Consider the manufacturing operation, how does the above Mission Statement relate to key objectives of a manufacturing operation:

Key Performance Objectives
1. Quality: Right the first time
2. Delivery: On time
3. Productivity: Optimizing all Resources
4. Cost: Optimizing resources
5. Safety: In Safe environment
6. People: engaging people
7. Alignment: towards the goals of our Organization

Breaking the Mission into “key performance objectives” help you to understand how to affect various processes. The next step would be to figure out how to measure this performance and ensure we are on right track.

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Pareto and Parkinson: Lean Project Management

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I got inspiration for this after reading the “4-hour Workweek” by Tim Ferriss. His advice on Productivity can be summarized by these two laws:

Pareto Law- Limit tasks to the important to shorten work time (80/20)

Parkinson Law- Shorten work time to limit tasks to the important

We have effectively used this to manage our projects in the past. The bigger the project, it is more susceptible to scope creep and also longer the duration of a project the tasks will unnecessarily  expand to fill the time available for its completion.

Our solution was to break down any big projects into multiple small projects which had a time limit of just 1 week.This forced the project managers to focus  only on the most important tasks. Also possible issues which affected the scope and cost of the project were realized much earlier and possible counter measure could be put in place. Many times the planing could reduced significantly when were similar type of small projects, the template developed for the first project could be used for subsequent projects.

These laws not only apply to project management , but also help us to be productive outside  our professional world.

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Mission Statement: What is the mission of Manufacturing Operations?

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For sometime I have been trying to develop comprehensive mission statement which could be used for any manufacturing operations.

It all started with the most basic requirement  of any operation:

” Right the first on time”

This did not encompass other important aspects of business; People, Safety and business goals. So the statement was  modified the statement:

” Right the first time on time by engaging people towards business goals in safe environment”

What according to you is the mission of manufacturing operation?

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