Monthly Archives: May 2014

Lean Culture Change

Recently, I had the opportunity to tour a local company that does sheet metal work.  The company does not advertise being lean, although they are a part of our lean consortium.  When you walk in the manufacturing facility you would be surprised at what you DON’T see.  There aren’t 5S markings or visual production boards or kanban levels anywhere to be seen.

What the company is doing is the hard work.  The are working to change their culture.  They are focusing on it everyday from the leadership down to the floor.

The company is Webco Manufacturing.

What they have done is come up with The Webco Way.  Thirty-one fundamentals for everyone to focus on improving.  Here are just a few:

  1. Do the right thing
  2. Check your ego at the door
  3. Take ownership
  4. Practice blameless problem solving
  5. Be process oriented
  6. Continuously improve everything you do
  7. Embrace change

These are just a few.  I encourage you to visit Webco’s website to see the complete list and a description of each.

You might think 31 is a lot to remember.  I did too, but it is working for them.  They focus on one fundamental every single day.

A fundamental is chosen for the week.  A member of the leadership team sends out their perspective of the fundamental for the week every Sunday night to everyone with e-mail in the company.  During the week, every meeting consisting of more than 2 people is started by reading the quick description of the fundamental and giving an example of how it is brought to life.

This includes meetings with supplier and customers.  The meeting could be 1 Webco employee and 5 suppliers but they will start the meeting with the fundamental of the week.  This is to let customers and suppliers know what they are trying to do and helps to drive the same expectations from their customers and suppliers.

Webco may not claim to be lean, but the culture they are driving and the way they are going about it sure seems like a lean culture to me.

What are your thoughts?

Lean for Small Businesses

If you have followed my blog for awhile you know that my wife started a hand-poured soap and bath and body business a few years ago.  One of her suppliers sends out a monthly newsletter with different kinds of articles: how to make new products, different recipes and in the most recent newsletter an article on lean for the small business.

Though turning to “lean” operation processes may sound like a complicated undertaking best left to large corporations, small businesses are actually ideally equipped to leverage the advantages of a lean business model.

The author is correct.  Being a small business makes it easier to create change more quickly as long as you are dedicated to it.

There are some good points in the article and some that are not even close.  I know lean is a the en vogue thing to discuss but that doesn’t mean everything is always a good point of view.  Better to have it mentioned and start a discussion though.

Some of the good.

You probably spend a lot of time in a day communicating with your clients, vendors, and staff. But have you ever taken a close look at why you have so many of those conversations? If the topics of your business conversations tend to involve a lot of the same questions, standardizing your operations could present a huge opportunity to save time, and eliminate such redundancies. Take detailed notes of the email and phone conversations

…get creative about how you might develop a standardized system for addressing such recurring issues. If customers tend to email or instant chat with similar questions, develop various email templates that you can send to them in a matter of seconds could prove a real time saver. Better yet, incorporate clear language onto your website that answers the questions so they donʼt even have to contact you.

I am more of the thought about trying to get to the root cause and better incorporate the clear language onto your website.  This is a clear way to help eliminate waste and create more time to serving your customers specific needs.

Dave Kerpin suggests that you can improve the efficiency of every [meeting] (and save 900 hours a year) with a simple shift: Donʼt end the discussion until everyone clearly understands their next steps, and you actually begin your own. Kerpin insists this eliminates the odds that miscommunication and confusion linger (which will only lead to further conversation), and reduces the amount of time youʼll spend trying to fi gure out how you need to move forward.

Dave is talking about getting high agreement on what will be done and how it will be done.  This is one of the core lean principles.  He is right.  It helps reduce confusion and communication that comes later from it so the work can be done more quickly.

Some of the not so good.

To adopt the common principles of lean management known as the 5 sʼs (Sort, Straighten, Sweep, Standardize, and Sustain), start by taking a look at your business routine…

This is a smaller issue in that 5S isn’t really a principle but more of a concept or tool to help highlight quickly when something is abnormal.  The author never mentions this.  Just that it can help “clean up” and organize your routine.

This is the one comment that truly gives me heartburn.  It shows the engrained misunderstanding of economies of scale.

If you find yourself ordering inventory frequently, could you forecast more appropriately, to reduce the frequency and possibly, realize cost savings from placing one larger order?

Oh where to start with this one.  First off, you can’t forecast “more appropriately”.  Overcomplicated MRP systems have shown that repeatedly. If you are a small business and growing this is no way to forecast more appropriately.  Understand your lead times and put in a visual reordering system that will trigger with enough time to get your orders in.  You may need to adjust over time as you grow, but it is more efficient and cost effective.

More importantly, don’t just order in bulk to get savings.  This is not a smart move.  You need to understand what your demand is, how much space you have, how much materials cost and how long the inventory would sit around.  If you order a larger quantity to get the savings but it takes 8 months to go through the inventory, you have tied up your cash so you can use it to grow in another area.  As a small business, cash flow is extremely important.  Another factor is the space you have.  If the material is going to take up a lot of space that you don’t have, it is better to not have it spilling over in your work area.  This is something to consider the long term savings in space and cash availability versus the immediate savings of a one time buy.

It was good to see lean talked about in a different arena besides manufacturing.  The message may not always be perfect but it is better to start the conversation than not have it at all.

It’s About Knowing Your Audience

Decisions Don’t Start with Data.  This was a post found on the Harvard Business Review Blog.  This is another attempt to explain how marketers are the kings of the world telling us what we should buy and we are too stupid to know otherwise.

We buy goods and services because we believe the stories marketers build around them:  “A diamond is forever” (De Beers), “Real Beauty” (Dove), “Think different” (Apple), “Just do it” (Nike).

That was my favorite excerpt from the post.  Thanks marketers, because I wasn’t sure what running shoe I wanted but “Just Do It” has now made up my mind.

The point I got from the post was that people don’t make decisions based on data, it is based on emotions.

To influence human decision making, you have to get to the place where decisions are really made — in the unconscious mind, where emotions rule, and data is mostly absent. Yes, even the most savvy executives begin to make choices this way. They get an intent, or a desire, or a want in their unconscious minds, then decide to pursue it and act on that decision. Only after that do they become consciously aware of what they’ve decided and start to justify it with rational argument.

While I do believe this is true.  It does not mean it is right.  Just because executives do this does not mean we should succumb to their ridiculous decisions and not present the data.

I do believe we make decisions on data, whether it is consciously or subconsciously.

Apple may say “Think Different”, but if their product is crap and is breaking all the time a person wouldn’t buy it.

“A diamond is forever” doesn’t make me buy from DeBeers.  It is there customer service and quality.

There was some form of information that is driving the decision.

I do agree with the author that when presenting a group with a new and possible radical idea that a person should approach his audience in a way that will get their attention.

For some that may mean presenting straight data.  For others, presenting a story or a “what’s in it for me?” point of view and weaving the data in.

This isn’t about data and decision making.  It is about knowing your audience and adjusting your approach to help meet the audience see your point of view.

Apple Store Not Focused on Customer

I do like the Apple products.  I have found them to be easy to use and high quality.  I have the original iPad (although half my apps won’t update anymore) and I think the Apple music players are still the best on the market.

That being said, I think Apple is very limiting in it’s openness and they will do things their way at the cost of customers at times.  I use iTunes as an example.  It is very hard to buy music, books, movies, etc… on iTunes and then be able to use them on an Android device.

Recently, I had another experience that showed me Apple wants things their way and aren’t focused on the customer.  I bought an iPod Nano for my wife for her birthday.   I ordered it online so I could have it engraved and picked it up at a local Apple store which was the first time I had ever been in an Apple store.  My wife used it 3 times, did not drop it and the screen has completely popped off.

I decided I would take the 30 minute drive to the closest Apple store and get the iPod replaced.  I arrived at 2:30pm and was greeted by someone who then handed me off to someone else to here about my issue.  They were glad to exchange the iPod but there would be no engraving since they don’t do that in the store.  I wasn’t happy about that but the engraving was free and I was hoping to walk out with a new iPod so I was too worried about it.

I was then informed that I couldn’t exchange it until 6pm that evening.  Three and a half hours later!  My first question was “why?”.  I was told a technician had to do it and the earliest appointment for a technician was at 6pm.  Of course, I asked “why does a tech have to do it?”.  That is when I got my favorite response of all time, “Because it is a legal transaction and serial numbers needed to be written down.”

My jaw hit the floor as I asked how long it would take and the woman said, “Oh it will take less than 10 minutes.”

Now my eyes popped out of my head.  So, I was going to have to wait 3.5 hrs for a tech to do a less than 10 minute transaction.  A transaction that would have already been done by any worker in the store if I would have bought the iPod at Target or Walmart.

My first thought is that Apple does not respect their store employees because they don’t trust anyone to do a simple exchange transaction.  Really.  Think about it.  Think about some of the people that have done exchanges/returns for you at Walmart.  The process shouldn’t be that hard.

Secondly, here I am.  An upset customer because a barely used product 2 weeks old is completely busted and now I will have to wait 3.5 hours to get it exchanged.  Now I am doubly upset.

I did not have time to wait and took my iPod home.

A few days later, I took the iPod to the Apple store close to my place of work.  I went in without an appointment just to see what would happen.  I got a new iPod in minutes and was out the door.

I’m not sure if that was an Apple policy or a store policy causing the issue at the first store.  Either way, they weren’t focused on creating a good customer experience which can lead to lost sales and in my case my just do that in the future.

Sponges

There is nothing more invigorating than a sponge.

Not the type of sponge you clean with, but a person that soaks up everything and is eager to learn.

I recently have been working with a facility on implementing lean thinking.  At this facility is an operations manager that is trying to take in everything she can.  It is amazing to watch her.  Everything that is said and talked about is taken in, absorbed and thought about how it applies for her staff and herself.

One walk on the floor to spot issues in 5S and questions about if it is important to her whether it is maintained or not turns into a maintained 5S effort over the last month.  She didn’t just go out and demand it be done.  She asked the employees in the area if it was still needed and if so, what needs to be done to meet their needs.  The employees wanted it and now are maintaining it.

The next time more in-depth questions on maintaining material levels led to thinking and study of a process to be sure the material levels are maintained.

In the short time I have been working with the group, I can list of more examples of taking the learning and turning into action than the past year of efforts in other areas.

Seeing others start to soak up the lean thinking like a sponge and grow is an invigorating feeling that gets the blood pumping.

Are you a lean sponge?