Category Archives: Guest Post

Guest Post: Lean Material Handling: Making Production More Efficient and Profitable

Danielle M.Today’s guest post comes from Danielle M.  She has been a dedicated student of Lean Manufacturing methodologies since 2006. It was love at first sight when she read the motto, “Everything has a place; everything in its place” in her first copy of The Toyota Way.

Lean manufacturing seeks out and eliminates waste wherever it can be found. One process that can be overlooked in a manufacturing business is the very end, where products are stacked on pallets, wrapped and shipped out. What follows are a number of ways you can reduce wasted time, effort and money by finding efficiencies in your pallet packing processes.

Material handling and lean manufacturing go hand-in-hand. Without efficient material handling processes, factories and warehouses can’t fully integrate lean manufacturing into their operations.

If you want to increase production time and reduce waste in your manufacturing business, take lean material handling practices seriously. These suggestions should inspire you to make changes in your warehouse operations.

Reduce mistakes, eliminate waste

The most basic principle of lean manufacturing is eliminating waste — wasted time, inventory, movements or processes. Your production systems should be so efficient that employees know exactly what to do with each part, how to do it and when to do it.

It’s important to remember that working faster doesn’t always mean working more efficiently. Take the time to figure out the simplest method of doing something and make that the standard of operation. Ensure that all processes are scheduled to eliminate lag time between work stations; workers shouldn’t have to wait on needed parts, and materials should be worked on immediately.

Improve efficiency with standardized routes

Material handling routes can either make or break a production line. Standardized material handling routes ensure that the appropriate parts reach their destinations on time, that there are no waiting times and that production runs smoothly. Employ standardized schedules in these areas for an efficient material handling route:

  • Deliver all components on time. This is achieved by setting up kanbans (signposts or billboards) at predetermined locations so that material handlers know exactly which components to deliver to specific work areas. Each component retrieval cycle should take the same amount of time.
  • Use the right equipment to transport components. The weight and amount of components being transported should determine the kind of equipment needed to safely and quickly move them to the designated area.
  • Set up even pulls. The amount of finished goods pulled throughout the day should be enough for each employee to manage throughout the duration of his shift, without lag time or being overwhelmed.

Invest in necessary equipment

Using the right material handling equipment to transport and store inventory increases available space and improves production time. For instance, using forklifts to carry multiple heavy items — instead of using dollies to carry a few items at a time — is safer for employees and moves inventory from point A to point B quickly.

Automated storage systems aren’t exactly necessary, but they do accurately track inventory and allow employees to quickly find necessary parts. With these systems, employees input the materials they need into the storage system, and it automatically retrieves the item, without wasted time searching each shelf.

Accurately track material handling costs

Most — if not all — pricing methods in manufacturing are estimated based on actual production time and overhead. In order to get an accurate amount of time spent on an area of production, estimators must frequently communicate with employees and managers to find out where inefficiencies exist and figure out how to eliminate them.

Systems like cost-estimating software track the efficiency and processes using existing manufacturing standards and data. This makes it possible for estimators and accountants to change their company’s processes by adding and modifying the software’s data to accommodate specific needs. Doing so provides accurate information regarding production schedules and pricing, so your company can provide clients with more accurate quotes.

Material handling processes have come a long way from the inefficient systems of decades past, but there’s always room for improvement in the production industry. Constantly examining and identifying flaws in the system is key to making your business a lean, mean manufacturing machine.

Guest Post: Eliminate Waste by Improving Pallet Packing

Danielle M.Today’s guest post comes from Danielle M.  She has been a dedicated student of Lean Manufacturing methodologies since 2006. It was love at first sight when she read the motto, “Everything has a place; everything in its place” in her first copy of The Toyota Way.

Lean manufacturing seeks out and eliminates waste wherever it can be found. One process that can be overlooked in a manufacturing business is the very end, where products are stacked on pallets, wrapped and shipped out. What follows are a number of ways you can reduce wasted time, effort and money by finding efficiencies in your pallet packing processes.

Choosing the right pallet

The first step toward more efficient palletizing is choosing the right pallet. According to a study by the Fibre Box association, a pallet can lose 20 to 40 percent of its strength if only half an inch of product is hanging over the edge of the pallet. You should be able to load your product onto a pallet without anything hanging over. Put another way, for any given package, the pallet should be equal to or larger than the products you’re putting on it.

If you’re using wooden pallets, look into the possibility of switching to plastic ones. They are generally safer and last longer, but they do have a few drawbacks. Only you know whether plastic or wooden pallets are best for your business.

Pallets and weight

Pallets are designed to hold only a certain amount of weight. Put too much weight on a pallet and you risk damaging it and the products it carries and injuring anyone who might be in the area. An overloaded pallet can lead to higher shipping costs as well.

An easy way to keep weight under control is to load the pallet while it sits on your industrial scales. This simple process can eliminate a lot of waste:

  • It keeps your pallets in good working order.
  • It ensures you keep it within any weight restrictions.
  • It eliminates the time wasted packing a pallet and then weighing it, only to find that it’s too heavy and must be redone.

Packing pallets

Packing a pallet safely means considering the safety of all people who use the pallet and the overall security of the products the pallet holds. Keep safety guidelines in mind and remember these pallet-packing tips:

  • Don’t stack pallets too high. Doing so raises the load’s center of gravity, which could lead to a pallet falling over, damaging the product and potentially injuring someone.
  • Don’t risk it. If a pallet looks damaged, it probably is — have it examined more closely and either repaired or discarded.

When it comes to wrapping products on a pallet, make sure you understand the difference between shrink wrap and stretch wrap, and that you keep the correct one in stock:

  • Stretch wrap is a lot like the cellophane wrap you use in the kitchen. It stretches a little and sticks to itself and does a great job of getting in its own way.
  • Shrink wrap isn’t so stretchy, but it shrinks when you apply heat to it, creating a snugger hold on the products on your pallet.

The key to efficient, safe pallet packing, though, is making sure that everyone who deals with pallets understands the processes you have in place and follows all rules. The greatest step toward cutting waste is educating your employees.

Guest Post: Initiative: Employee Empowerment

Today’s post is from Tony Ferraro, on behalf of Creative Safety Supply based in Portland, OR (www.creativesafetysupply.com). Tony strives to provide helpful information to create safer and more efficient industrial work environments. His knowledge base focuses primarily on practices such as 5S, Six Sigma, Kaizen, and the Lean mindset. Tony believes in being proactive and that for positive change to happen, we must be willing to be transparent and actively seek out areas in need of improvement. An organized, safe, and well-planned work space leads to increased productivity, quality products and happier employees.

Have you ever walked into a work facility and taken note of an atmosphere full of complaints and unmotivated workers? I have, and let me tell you first hand it’s not a fun place for anyone to be. In fact, it is basically the opposite of what is needed for growth and success. Why are these employees creating such a negative work environment? Or is the negative work environment caused by something other than employees? Well, many times the work atmosphere is a direct result of leadership. Great leadership can motivate employees, create an environment conducive to high levels of productivity, and create unparalleled levels of employee job satisfaction, while not-so-great leadership can single handedly flush an entire business down the tubes. Whether we want to believe it or not, good and strong leadership is essential to the success of a business.

Creating Good Leadership

Good leadership isn’t something that just happens on its own, good leaders have to be trained, empowered, and willing to help others reach towards success as well. By doing this, the leaders help to motivate and grow the employees by guiding and leading by example. In order to empower employees, there are some basic elements that contribute tremendously to creating strong and positive leadership:

*Create a Positive Work Environment: A productive work environment that yields high levels of success is similar to having rich soil in your garden. The richer the soil, the hardier and more desirable the harvest.

*Empower Others to Grow: Being a leader isn’t just about focusing on being a leader and growing oneself, but it is also about empowering others to grow as well. Good leaders take the time to discuss with employees where they would like their career to go and help them to develop and refine their skills to help them achieve their career goals. One of the most depressing things to an employee is to believe that they have no opportunity for growth and that they will be stuck in a dead-end job doing the same thing for the rest of their lives. When employees elicit this mindset, their levels of productivity drop significantly and they are attending work for only a paycheck and that is it. This is poison to the success of a business.

*Think outside the Box: According to Rita Mae Brown, “Insanity is doing the same thing over and over again but expecting different results.” Don’t harbor insanity, instead if you want to strive for different results, changes must be implemented. The same goes with leadership, when leaders embrace the practice of thinking outside the box and are willing to think creatively, the sky is truly the limit.

*Encourage Experimentation: This component of leadership is similar to thinking outside the box but this tactic is more about encouraging employees to engage in experimentation. Employees should be praised for coming up with new ideas to help enhance products and streamline processes.

*Always be willing to Help and Listen: A good leader should always be willing to help employees. Whether there is a disagreement between two co-workers or a machine that creates constant headaches, an effective leader is someone who will be there to help sort out the details and rectify any issues or problems.

Never underestimate the power of great leadership. However, it is a mistake to just assume that because someone is in a management position that he or she is or will be a great leader. Instead, a leader takes time to create and must be willing to learn the important and crucial elements that make a leader great.

Guest Post: A Lean Vacation

Today’s post is from Tony Ferraro, on behalf of Creative Safety Supply based in Portland, OR (www.creativesafetysupply.com). Tony strives to provide helpful information to create safer and more efficient industrial work environments. His knowledge base focuses primarily on practices such as 5S, Six Sigma, Kaizen, and the Lean mindset. Tony believes in being proactive and that for positive change to happen, we must be willing to be transparent and actively seek out areas in need of improvement. An organized, safe, and well-planned work space leads to increased productivity, quality products and happier employees.

When we think of lean, most people’s minds go straight to the business sector of manufacturing. While lean has been incorporated particularly well in industrial settings, lean has also experienced quite a bit of success in regular, everyday endeavors, not to mention in travel as well. The concept of lean was alive and well during a recent vacation I took. My last vacation went especially smooth due to a few lean practices that have been put into place to save time, money, and people’s sanity while visiting unfamiliar places.

Lean Airport (MSP – Minneapolis, MN) – The first inklings of lean processes were evident right at the airport before I even embarked on the actual vacation. After I made my way through ticketing and security, I set out to find my gate. Once I located my gate, it only took a second or two to notice the abundance of technology just radiating around me. There I stood in a sea of mini iPad stations just ripe for the picking. To put this into perspective, there was basically a built-in iPad station for every seat in the gate area. Not only were these iPads free to use but their use was actually encouraged. Sitting down at a station, I soon realized that these iPads were equipped with a multitude of different functions from checking flight statuses all the way to ordering and paying for various food items or supplies. As I was navigating through the iPad, I noticed that a person next to me was being served a drink right at his seat that he had ordered via the iPad. This is truly an excellent example of how an airport has utilized technology to make traveling easier and more pleasant for the customer.

Lean Rental Car Experience – My next encounter with lean happened shortly after I arrived at my destination. I’ve always considered obtaining a rental car to be one of the most tedious and dreaded parts of many of my previous vacations, however this time it wasn’t. A couple of weeks before I was set to leave for vacation, I called the car rental company Hertz and became a “gold” member which was quick and easy, and not to mention free. Being a gold member opened a whole new door of perks. I didn’t have to wait in any lines or deal with any sort of messy paperwork. Instead, I simply stepped off the shuttle at the rental car location, looked up at an electronic board to identify my name and stall number and simply walked to that parking stall. Once I arrived at my car, the trunk was open and the keys were in the ignition. Needless to say, I was thrilled with this efficient service and it took less than 10 minutes from start to finish and I was out on the highway enjoying the beginnings of my vacation. By signing up for the “gold” membership not only did I have an easier and faster experience, but I did not require any further help from Hertz employees which in turn helped to streamline the experience for them as well.

Lean Parking Ramp – I bet you think I’m going to say the parking ramp was lean because the entrance and exits were completely electronic and required no parking assistant and while this is true, it goes quite a bit deeper. The parking ramp I utilized was equipped with a fairly new technology known as “Park Assist.” Ok, I’m just going to say it, I love park assist. Any large and busy parking ramp could make their customers much happier with the help of parking technology. Park Assist features little green or red lights which are illuminated on the ceiling directly above the path where cars drive. If a parking spot is open the light will illuminate green, but if the spot is taken it will illuminate red. This type of technology increases more effective parking but also enhances safety. Instead of drivers constantly trying to look side to side while driving looking for the next open spot, all the driver needs to do is look for an illuminated green light and pull into the corresponding parking spot. Wow, this was impressive. Parking ramps can be pretty dangerous as there always seems to be people bobbing in and out between parked cars. This technology allows drivers to keep a greater focus on driving safely, but also helps them to find parking spots quicker.

The implementation of lean into daily life and travel has led to some monumental improvements which have helped to make once dreaded tasks much more palatable, and maybe even actually enjoyable.

Guest Post: NBA and Jon Spoelstra

This week is Lean series week at Beyond Lean.  The blog posts will center around strategy deployment (or Hoshin Kanri).  Justin Tomac, Chad Walters, Karen Wilhelm and Tony Ferraro will be guest blogging.  This will give you different perspectives from on strategy deployment all right here at Beyond Lean.

Chad_WaltersToday’s post is from Chad Walters.  Chad is a Lean consultant and owner of Lean Blitz Consulting in Augusta, Georgia, a firm focused on continuous improvement for small businesses and sports organizations. He has run projects for the Atlanta Braves, the Salvation Army, Automatic Data Processing (ADP), Eaton Corporation, The Dannon Company, and the South Bend Silver Hawks among other companies. He has been practicing Lean and continuous improvement for over eight years, is a Six Sigma Black Belt certified by the American Society for Quality, and received his MBA from Indiana University’s Kelley School of Business, where he was a member of the Kelley MBA Sports & Entertainment Academy.  You can follow Chad on Twitter @LeanBlitz.

One of the great features of genuine hoshin thinking is focusing on the future and big picture goals while moving away from some of the negative focus on resource constraints. With hoshin kanri, we set a destination, and based on our current location determine the proper path to follow to achieve our destination. Worrying about what we’re not allowed to do is what keeps us from reaching for what is genuinely possible to achieve.

While I have been labeled a “devotee of lean management” in a recent article by a baseball writer (and I most definitely am) I absolutely love creative marketing. One of my favorite and most influential books I’ve read is Marketing Outrageously by Jon Spoelstra. He is the former President of the NBA’s New Jersey Nets and General Manager of the Portland Trail Blazers among other influential positions, but he is a marketing savant when it comes to driving revenue growth through creative marketing.

The following is a passage from Marketing Outrageously that has stuck with me ever since I first read the pages. Spoelstra shows that a top-down hoshin-like “What’s it gonna take to do this?” approach can have an energizing effect on a team.

~~~~~

In the late 1980s I was general manager of the Portland Trail Blazers. Even though I didn’t have the authority to draft or trade players I could call meetings with those who did. I assembled the coaches and plaer personnel managers and asked the question, “What’s it gonna take to win the championship this year?”

Logically, it was a foolish question. This was the era when Magic Johnson and Kareem Abdul-Jabbar were leading the Los Angeles Lakers to regular championships. When the Lakers didn’t win, Larry Bird and the Boston Celtics did. Lining up to cut in on the Lakers and Celtics were Michael Jordan and the Chicago Bulls. So how stupid was my question, “What’s it going to take to win the NBA championship this year?

On paper we didn’t have a chance; in our minds, less than no chance. We were, however, a pretty good team. We had won fifty-three games the year before. Considering all this, I wanted us to think beyond what we had.

The player personnel people took the question as an insult. I could hear them thinking, “Who does this marketing guy think he is?” They fumed and grumbled for a while.

I asked the question again. “What’s it going to take to win a championship this year?”

Silence. Finally, John Wetzel, an assistant coach, said, “One thing we need to do is really improve our outside shooting. We need some guy that can come off the bench and really fill it up.”

Two shooters,” said Rick Adelman, another assistant. “When we get to the playoffs, we can’t run our fast break as much, and the middle gets clogged up. We need two reliable shooters coming off the bench.”

We talked for two hours. Head coach Mike Shuler was enthusiastic, salivating over the thought of somehow acquiring two bona fide outside shooters. We made a list of players who might be available. We came away from the meeting with assignments for each of us to start making inquiries with other teams.

Later, Rick Adelman told me, “I’ve been in a lot of player personnel meetings over the years, and this was the best. We actually talked about winning a championship and what that would take.”

Did I think we had a chance to win the championship this year? Not really. But I knew we had no chance to improve unless we set the target higher than what was comfortable.

~~~~~

Sports teams that are a mish-mash of talented players that aren’t cohesive or working together generally don’t win championships. Companies don’t consistently “luck into success” – it takes an overarching end goal and a strategic plan to get there.

So why did this meeting change the mindset of the franchise? The leader set a high goal to achieve – win a championship – and instead of saying “now go do it” to his subordinates he asked what does the team need in order to achieve it? He didn’t talk about constraints or resources, he just wanted to know what was needed in order to create a championship team.

Now that the team’s genuine needs for winning a championship were identified, the load fell on everyone’s shoulders to procure those resources, whether it was outside shooters or additional money or anything else. However, the organization was aligned to this one goal and clearly it drove motivation because all were now pulling in the same direction. If they needed to eliminate resource constraints by finding more money, they would hire more ticket sellers.

By using a hoshin kanri approach the focus for the Portland Trail Blazers changed from “here’s why we can’t” to “What is it going to take?”

Guest Post: Moneyball – Hoshin Kanri

This week is Lean series week at Beyond Lean.  The blog posts will center around strategy deployment (or Hoshin Kanri).  Justin Tomac, Chad Walters, Karen Wilhelm and Tony Ferraro will be guest blogging.  This will give you different perspectives from on strategy deployment all right here at Beyond Lean.

Chad_WaltersToday’s post is from Chad Walters.  Chad is a Lean consultant and owner of Lean Blitz Consulting in Augusta, Georgia, a firm focused on continuous improvement for small businesses and sports organizations. He has run projects for the Atlanta Braves, the Salvation Army, Automatic Data Processing (ADP), Eaton Corporation, The Dannon Company, and the South Bend Silver Hawks among other companies. He has been practicing Lean and continuous improvement for over eight years, is a Six Sigma Black Belt certified by the American Society for Quality, and received his MBA from Indiana University’s Kelley School of Business, where he was a member of the Kelley MBA Sports & Entertainment Academy.  You can follow Chad on Twitter @LeanBlitz.

The book Moneyball by Michael Lewis not only lays out the top-to-bottom game strategy employed by the front office of the Oakland Athletics under team general manager Billy Beane in 2001/2002, but it also serves as a demonstration of how major philosophical and operational changes require a leader willing to stay the course during trying times and full alignment of resources to accomplishing the overarching goal.

For those who are unfamiliar, Moneyball was a paradigm-shifting revelation to the way baseball front offices evaluated and valued players – greater focus on specific statistics (on-base percentage) and valuing the concept of “not making outs,” among other things. Not only did it change the way front offices operated, but it also brought the essentially-foreign concept of efficiency to a boys’ game. The Oakland Athletics, in an effort to compete with the big spenders while on a shoestring budget themselves, employed statistical analysis with baseball players to take advantages of inefficiencies in the game. In 2011 Moneyball was made into a movie starring Brad Pitt as Oakland Athletics general manager Billy Beane and Jonah Hill as assistant general manager Peter Brand (the name chosen by the writers when the real assistant general manager at the time Paul DePodesta wouldn’t permit his name to be used in the movie). The movie was great, but really only if you read the book first.

Lean practitioners who were also sports fans loved the entire concept of the story – it wasn’t just about doing things differently, but doing things smarter and better and bringing a cerebral approach to the game they loved. It was about change management in the face of adversity, only it happened to be in the industry of baseball.

The Athletics didn’t coin the term “Moneyball” but their overarching goal of maximizing the ratio of team victories to payroll through the use of statistics measuring team efficiency is a great example of hoshin kanri – the entire organization was aligned to the unique operational strategy to achieve this end goal of maximizing team on-field production.

In an industry where “the way it’s always been done” runs rampant moreso than any other due to the very public nature of the business, achieving organizational alignment was tough and the team’s leaders took steps to forcefully (rightly or wrongly) assure its implementation.

How did the Oakland Athletics demonstrate hoshin kanri?

  • Change management started at the top. “How baseball players are evaluated” was the change that occurred with the Athletics. They (like all other major league teams) had almost solely leaned upon scouts to evaluate players based simply on watching the players firsthand, because “that’s the way they had always been doing it.” Billy Beanewanted to change the approach to include statistical analysis, and because he oversaw the team’s scouting departmentand on-field operations it was his call. Contrast that with Peter Brand, who before being hired by Billy was a low-level advisor to then-Cleveland Indians general manager Mark Shapiro. Peter had no pull in the office, despite possessing superior education and mathematical analysis skills, so he would not have been able to influence such a monumental philosophical change.
  • “Adapt or die.” While this is quite the fatalistic view on change management, it was the philosophy Billy and the Athletics had to adopt. They had a payroll that was less than 1/3 that of the New York Yankees, so the Athletics had to go “bargain hunting” for undervalued players who featured the undervalued talents like high on-base percentages. In order for them to have a chance to compete with teams like the Yankees they had to be smarter with their dollars.
  • “Trust the process.” Billy and Peter believed in this new philosophy, and their faith was certainly tested when the team started the season poorly. They were aware that the successes would take time to arrive, and multiple tweaks to
    the process (and the process users) would occur. For example…
  • The organization’s activities had to be aligned with the overarching goals. The Athletics scouting department (including lead scout Grady Fuson) were fundamentally opposed to the idea of focusing on statistics instead of what they saw from players with their own eyes. The tension between the two philosophies became so heated that (according to the movie) Billy and Grady had an altercation that led to Grady getting fired. (Adapt or die, indeed.) While scary, it is important for all process users to buy into the change.
  • “So what’s our problem?” One of the favorite Lean tools is the “Five Whys.” When we encounter a problem, we should follow up our analysis of the cause by asking “why” five times. Billy did the same thing, continually asking “So what’s our problem?” to get down to the root of the issues.
    “We aren’t winning.”
    “So what’s our problem?”
    “We aren’t scoring enough runs.”
    “So what’s our problem?”
    “We aren’t getting enough guys on base.”
    “So what’s our problem?”
    “We are making too many outs?”
  • The ultimate poka-yoke. Billy and Peter had specifically signed former catcher Scott Hatteberg to play first base (because of his high rate of reaching base as a hitter), yet manager Art Howe refused to play him, instead opting for young first baseman Carlos Pena. Art Howe had not bought into the new philosophy. How could Billy make absolutely sure that Art would start Hatteberg going forward? Just get rid of all other first basemen on the roster! Billy traded Pena to the Detroit Tigers, Hatteberg became the new first baseman, and…
    Belief in the process and persevering can bring great rewards. …the Athletics set a record by winning 20 straight games on their way to winning the American League West division.
  • “The first guy through the wall gets bloody.” Billy was indeed the first guy to break down the wall, but the paradigm shift in all of baseball was on. In fact, the on-field success of the Athletics despite the miniscule payroll was so revolutionary that Billy Beane was offered the role of general manager of the Boston Red Sox (one of those teams with a huge payroll but inability to win the World Series). He turned the job down to stay with the Athletics, but the Red Sox won the World Series two years later with general manager Theo Epstein at the helm, using the same philosophies introduced by Billy and the Athletics.

Moneyball is the ultimate triumphant change management story, and we all aspire to such a heroic chain of events. It required a philosophy, leaders who not only believed in it but stuck with it through difficult times, process users and followers who were in alignment, and a lot of courage to try something new – unlike most traditional companies, the success of the Oakland Athletics is in plain sight for everyone in the world to see.

Guest Post: Tracing the evolution of strategy deployment

This week is Lean series week at Beyond Lean.  The blog posts will center around strategy deployment (or Hoshin Kanri).  Justin Tomac, Chad Walters, Karen Wilhelm and Tony Ferraro will be guest blogging.  This will give you different perspectives from on strategy deployment all right here at Beyond Lean.

kw-prof-dec2011-3qtr-tanToday’s post is from Karen Wilhelm.  Karen has inspired me to connect and learn more through blogging.  It has been great communicating with Karen over the last few years.  Her insights are always enlightening.  This is part one of a two part series.  The second part will post on Karen’s blog.

Part One: Japanese manufacturing leaders listen to Dr. Juran

As hoshin kanri — also called policy or strategy deployment — becomes better understood through Matt’s blog series, I thought I’d trace some of its roots, as described in some key publications. As with all things lean, hoshin kanri can mean many things to many people.  Three key figures who brought hoshin kanri to light saw it from different perspectives too.

In 1951, for example, Dr. Joseph Juran gave a talk at the Industrial College of the Armed Forces (ICAF, 1951) — formerly the Army War College — to engineers involved in procurement of high-precision parts for armaments. Titled “Quality Control and Inspection,” the lecture focused on product quality characteristics and the use of statistical quality control (SQC). He talked about how assuring quality in product design and manufacturing processes instead of inspecting and rejecting parts that did not meet specs. In this particular talk, Juran only fleetingly touched upon cross-functional communication, continuous improvement, and other critical concepts included in hoshin kanri.

As many of you know, around the same time, Dr. Juran (as well as W. Edwards Deming) was speaking to groups of Japanese manufacturers who were more interested in his quality message than those in the U.S. or Europe, Toyota began sending key managers to quality seminars as early as 1949. Along with other seminars, Dr. Juran was asked to hold a special one for the industrial leadership of Japan: 70 presidents of Japanese companies.

Dr_Juran_smallJuran never used the words hoshin kanri, but from the 1950s on, he described an integrated plan for integrating quality into the company’s management system (Juran, 1988). A company taking this path would be developing a quality strategy understood and carried out at every level of the company. Communication and coordination across functional departments would be effective. Upper management would understand and
perform the tasks needed to make the quality strategy take root.

Juran called the highest level of guiding and planning the strategy Total Quality Management (TQM) or sometimes Strategic Quality Management (SQM). Far beyond the control and inspection of product or service quality, these approaches encompass customer demand, competition, and feedback loops. They advocate creating processes to produce high quality products at a reasonable cost. Juran talked about quality deployment as part of the overall strategic plan, mostly with regard to products and their physical characteristics. Although he was sticking to quality deployment, not the deployment of a company’s entire business system, these concepts are hallmarks of hoshin kanri.

Part Two of Tracing the evolution of strategy deployment will be published in Karen
Wilhelm’s Lean Reflections blog.
References

Joseph Juran, Quality Control and Inspection, Publication L51-94, Industrial
College of the Armed Forces. 1951.

Joseph Juran, Juran on Leadership for Quality: An Executive Handbook, The Free
Press, division of Macmillan. 1998.

Takahiro Fujimoto, The Evolution of a Manufacturing System at Toyota, Oxford
University Press. 1999.

Guest Post: Hoshin Planning: Clear Business Objectives Help Guide Success

This week is Lean series week at Beyond Lean.  The blog posts will center around strategy deployment (or Hoshin Kanri).  Justin Tomac, Chad Walters, Karen Wilhelm and Tony Ferraro will be guest blogging.  This will give you different perspectives from on strategy deployment all right here at Beyond Lean.

blogphotoToday’s post is from Tony Ferraro, on behalf of Creative Safety Supply based in Portland, OR (www.creativesafetysupply.com). Tony strives to provide helpful information to create safer and more efficient industrial work environments. His knowledge base focuses primarily on practices such as 5S, Six Sigma, Kaizen, and the Lean mindset. Tony believes in being proactive and that for positive change to happen, we must be willing to be transparent and actively seek out areas in need of improvement. An organized, safe, and well-planned work space leads to increased productivity, quality products and happier employees.

There are many businesses out there proposing new and creative ideas but somehow lack the guidance and direction to make a good product idea a successful reality. What is it that curbs these business ventures? Is it funding? Is it technology? Or is it a true sense of guidance and leadership? In most cases, the unfortunate truth is that a great product idea or truly unique business plot will flounder and fail without a strategic direction and strong force of leadership helping to guide business objectives. One of the ways to meet this need is to implement the principles of Hoshin Kanri or simply Hoshin Planning. Hoshin Planning is a Japanese term that basically means “strategic planning.” This type of planning strives to really involve all employees in the objectives and improvements within the organization. Top levels of management make it a priority to assure that that all employees feel involved and that they are working as one big team towards a common goal. With this mindset there are no winners or losers within the company, it is purely a team effort and everyone participates and is accountable to help in meeting the identified objectives. The need for continuous improvement is also a highly valued component in this type of planning.

Possible Hoshin Objectives

One of the first and most important steps within Hoshin Planning is to identify the areas in need of improvement, and since Hoshin Planning is about setting clear business objectives it is important identify which objectives are most valuable to the livelihood of the business. Some common continuous improvement objectives include: increasing production, improving current market share along with new market sales, reducing raw material costs and also reducing direct and indirect labor costs. The reason this step is so vital is because everything can’t be tackled at once, think of the analogy that the “big rocks” must be taken care of first in order to start focusing on the “little rocks.”

Organizing Objectives for Clear Measurement

Unfortunately, objectives are merely a list of far-fetched desires if they are not organized properly for action. Sure, a group of leaders can set aside some time to devise a list of company objectives and write them neatly upon a fancy sheet of paper. However, without a concrete plan to guide the objectives the objective planning session would be deemed useless, and the paper may even end up getting lost in someone’s briefcase only to stumble upon it again weeks later. Instead, once objectives are identified they need to be taken seriously and should be categorized and organized for efficiency. For example, once a group of leaders has clearly identified the objectives they would like to implement into the business, they could categorize them into four different types such as improvement projects, specific action projects, 3-5 goals, and annual objectives. By doing this, top company leaders as well as employees will be able to visualize the different objectives and goals and really understand the time frames behind them as well. Essentially this sets the stage for developing the approaches needed to help pursue the stated objectives and goals when moving on to the strategy development phase of Hoshin Planning.

Hoshin Planning is really a dynamic and multifaceted form of strategic planning which involves all areas of a business. However, in order to reach optimum effectiveness all staff should be on board and involved. With that said, and in conjunction with the right objectives, Hoshin Planning can be a huge asset to any business looking to improve overall company performance.

Guest Post: A Few Thoughts on Policy Deployment

This week is Lean series week at Beyond Lean.  The blog posts will center around strategy deployment (or Hoshin Kanri).  Justin Tomac, Chad Walters, Karen Wilhelm and Tony Ferraro will be guest blogging.  This will give you different perspectives from on strategy deployment all right here at Beyond Lean.

Today’s post is from Justin Tomac.  Justin and I have worked together for the last five years.  My knowledge of strategy deployment has really grown since I have worked with him.  Justin Tomac has been a Lean practitioner a year or two shy of two decades.  His Lean background consists of various deployments with hands-on office, engineering and shop floor transformations with mentoring and training being provided by TBM and Shingijutsu consultants.  A GE certified Six Sigma Black Belt, he has an Industrial Engineering degree from South Dakota School of Mines & Technology and an Engineering Management masters from Wichita State University.  If you would like to contact Justin he may be reached at justintomac@yahoo.com

A lot of articles and books have been written about Policy Deployment, with the focus primarily on the high level concept with exhaustive studies on implementation.  Most of us understand conceptually what Policy Deployment is, where it appears to break down is during the implementation and sustainment.  As you may know, sustainment is a key indicator of how well a concept is understood and implemented by an organization.

Below are a few key characteristics of what a Sustained Policy Deployment look like:

1)      Organic and Living.  Policy Deployment should not be a one and done planning and execution exercise.  Monthly reviews with Quarterly or Semi-Annual Adjustments highlight an active Policy Deployment. The health of these Reviews or Adjustments can be determined by How meaningful the actions and results are.

2)      Influences the Behavior and the Culture.  A robust Policy Deployment process exists to solve the various issues related to horizontal and vertical alignment of objectives, goals and priorities for a Company, Division or Department.  What the boss measures and deems important only lasts as long as the Culture allows.  Organizations that struggle with accountability, communicating (vertically and/or horizontally) strategies or tactics, simplification, etc., have Cultural issues.  I heard a saying, “Culture eats Strategy for Breakfast”, why not flip this and make Culture the main dish for the morning meal?

3)      A flexible, structured Process (not a fill-in the blank exercise).  I find it interesting that when Policy Deployment is brought up, out fly the different templates, forms, etc.  In the end, does the form or template set the Strategies or drive the priorities?  Policy Deployment should be a process that examines the business top down and sideways, irregardless of what form or template is used.  In the long run, it is what your Culture will allow or likes that will dictate what your Policy Deployment looks like.

Based upon your experiences would you agree and/or add to these?  What say you?

Guest Post: Business Leader Antics That Fail to Inspire

Patrick and Joyce Del Rosario are Filipino business and career bloggers. They work at Open Colleges, one of the pioneers of Online education in Australia and one of the leading providers of diploma of management and small business courses.

In every business there are defined leaders that help steer teams in the right direction. Problems arise when these leaders put antics before strategy and begin to conjure up different and detrimental ideas about how the business should be motivated to operate. These antics have the potential to change the course of project or company and can be either the success or the downfall of an organization.

If you are a leader, chances are you are aware of the tactics and strategies you use to keep your employees motivated. What you are likely unaware of is the true impact this can have on their motivation and work performance – that is until you get the end results and then it may be too late. Here are some of the top antics to avoid doing as a business leader.

  • Don’t treat employees like a number – Your employees are people. They come to work like you do and they have lives away from the office like you do too. Treating your employees like a number and pushing away their personal needs is a sure fire way to lose acceptance in your leadership skills and respect for your position.
  • Don’t forget your own mission statement – You may have sat down with your team to outline a mission for a project or for the company, but can you remember all of the components that went into drafting this important statement? As a leader, you must live and breathe this mission statement in all you do and all you motivate your employees to do. Not knowing it shows a lack of care on your part and your team will notice.
  • Don’t forget to encourage positive performance – Praise goes a lot ways, especially in the workplace. When you praise your employees, you inspire them to continue doing their best. When you recognize them for nothing but their downfalls, they will curl away from you for fear of more lashings and not have the motivation to do better.
  • Don’t leave your team behind – When you show up late and leave early every day you are sending a signal to your team that you have no care for your position or for their hard work. Instead, as a leader you should stick by their side as they tackle a difficult project or encourage them as they put in the extra effort it will take for your team to go from good to great.
  • Don’t look like a slob – Non-verbal cues are just as meaningful as what you say. When you show up dressed like you just rolled out of bed with stains on your shirt and your hair a mess, your employees will see your lack of care for your position before they hear it. Instead, wear clothing that you will be proud to be seen in. This will allow you to command respect instead of disgust.
  • Don’t blow off e-mail or voicemail responses – When a person takes the time to e-mail you or call you, they have spent a portion, albeit a small portion, of their time reaching out to connect. When you blow off this connection you essentially let the other person know that you have no respect for what they were calling to tell you leaving them feeling frustrated and pushed aside. This can be detrimental to team morale. To avoid it, keep current on your e-mails and do your best to call people back quickly.
  • Don’t make threats – Threats can come in the form of something as simple as telling someone that they could be easily replaced or by commenting about future performance reviews. If an employee needs a boost a better tactic is to encourage and mentor them to achieve their best.

As a boss, the way you act and speak has a profound impact on an office. Use these tips to help remember what not to do.

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