Blog Archives

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.

Best of Beyond Lean in 2013

Today I am highlighting the five most popular posts written in 2013.  Then in January I will post the Top 10 posts for the year.

Enjoy and have a Happy New Year!!!!

5.  Visual Management at Home (February 2013) – A great example of a visual board used at home of a friend of mine.

4. Hoshin Planning – Catch Ball (April 2013) – A great video explaining the process of catch ball during the strategy development process.

3.  My Continuous Improvemnt: Personal Kanban 3rd Revision (January 2013) – The latest update to my evolving personal kanban for work.

2.  Guest Post: Moneyball – Hoshin Kanri (March 2013) – Chad Walters does a great job explaining strategy deployment using the movie Moneyball

1.  When Standards are in Place, Everything is an Experiment (May 2013) – Talks about the importance of setting standards and using them to understand your processes.

Have a Happy New Year!!!!

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: Can Lean be Taught to Children?

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.

Lean is something that is often associated with businesses and focuses mainly on reducing waste and adding value. However, lately I have been pondering the thought “Can lean be taught to children?” Wouldn’t it be great if children learned the concepts of lean at a young age? My mind literally boggles at the sheer possibilities. I’m not talking about sitting children down in a classroom and teaching them lean exclusively like reading or math, but instead just weaving the concepts of lean through life’s regular and everyday activities.

Imagine the Possibilities

The concepts of lean have been credited with high levels of success in the workplace, so why can’t the same concepts be beneficial in other areas of life as well? The truth is, they CAN! Creating a generation of innovative thinkers, ready to add value to society sounds like a pretty wonderful idea to me. Many of us have not been introduced to the concepts of lean until later in life, and unfortunately our minds have not had the opportunity to truly expand and grow with the concept. However, we can change that with the introduction of lean.

How to Start the Lean Mindset

The first thing we have to remember is that children are just children. We cannot expect them to act like adults. However, one of the benefits of starting lean concepts early is that when children are young their minds are very malleable. If children are taught to reduce waste and participate in value added activities early in life, that mindset will usually follow them through into adulthood. The key is to really start out simple and introduce the obvious and most tangible ways to reduce waste. This may include engaging in activities such as reusing and recycling. Instead of simply throwing out old clothing that does not fit, teach children that it can be reused and given to places such as the “Goodwill” or “The Salvation Army” so other children can wear the clothing, thus adding value for another person. Engaging in activities such as this puts the act of reducing waste into terms that children can understand. Furthermore, children can also be involved with activities such as household chores to practice lean. In fact, lean can be weaved into even the simplest task such as dish washing. For example, loading a dishwasher by putting all forks in one compartment and all spoons in another takes less time to unload since the flatware has already been separated. Doing this reduces wasted time.

The possibilities are limitless when it comes to the lean mindset. The truth is that lean can be implemented anywhere and everywhere; it is not just strictly for business use. When lean concepts are implemented and practiced at an early age they become just a normal part of life. Providing children with the tools necessary to be independent thinkers, who are capable of seeking improvement and reducing unneeded waste, will help to create a society of endless possibilities and opportunities.

Guest Post: Lean Logistics: Going Lean is Going Green

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 logistics offer a systematic way of managing logistics from when the order is placed until it arrives on a customer’s doorstep. They include a highly detailed organizational approach to managing logistics while cutting out the fat of inventory, fuel costs and middle-man handling. However, there are challenges to this approach to logistics of real world operations with factors, such as natural disasters, social chaos and unpredictable markets, that come into play. Yet companies and technologies have put lean logistics concepts into action with great results.

Challenges in a Lean Transportation System

The transportation industry is expected to see drastic changes in the near future, with the implementation of natural gas and EOBRs. However, according to the lean system of logistics, these changes are vital to the continual operation of the trucking industry. Robert Martichenko, the CEO of the LeanCor Supply Chain Group, notes that transportation is a necessary evil. He states that looking at transportation costs as a separate entity is a fruitless effort. Instead, consider the total logistics cost, which includes purchasing, transporting, warehousing and ordering costs. Martichenko continues by identifying five guiding principles associated with lean transportation including strategy, waste, performance, cost structure and daily event management. For example, by shipping according to customer’s demand, rather than storing products in warehouses until they are requested as does Amazon, lean logistics reduces the amount of work associated with inventory control and warehousing.

Lean Technology

While most in management consider lean logistics in conjunction with manufacturing, technology used for these companies also incorporate lean concepts. For example, the supply and demand giant Amazon has created Amazon Web Services that uses cloud computing to offer infrastructure investment (IT) services and application at a low cost. More importantly, cloud computing allows even the smallest of businesses to create customizable and full-service IT departments using cloud storage and capacity. This cuts out the extra cost associated with hiring and managing an entire IT department in-house. Businesses using cloud computing can purchase only what services they need, such as secure large-scale document housing, temporarily increased bandwidth and expansion of servers. Development and implementation of applications is also streamlined when using cloud services, which allows businesses to reduce the cost and time associated with customizing technology associated with logistics management.

Green and Lean Businesses

Going green for many in the logistics industry is an overwhelming process. Combined with the aspect of keeping with lean logistics, it can seem like an impossible task. However, green and lean are actually very similar, as lean logistics reduces the ecological footprint while streamlining the logistics process. One website focused on operations research with a green and lean foundation is GreenOR. This site offers suggestions for creating greener logistics, such as through energy efficiency, green supply chains, waste flow and renewable energy. For example, through the use a fleet management system such as those offered by Omnitracs, a trucking management team and its drivers are capable of cutting down on fuel costs by creating more efficient routes and by streamlining driving habits. The lean method is evident throughout the use of sustainable logistics methods, such as with the reduction of energy use and the establishment of green supply chains that reduce the amount of waste in the system.

Guest Post: Eliminating TIMWOOD

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.

Unfortunately, waste is something that is all around us. However, even though waste is common it does not make it any more acceptable. When businesses implement lean tactics in order to enhance productivity and efficiency, the elimination of waste is usually one of the biggest challenges, yet offers the highest rewards when done effectively. The elimination of TIMWOOD can help save your business time and money, while also helping to add value and increase customer satisfaction. When we mention eliminating TIMWOOD, we are not talking about eliminating a particular employee or person. Instead, the mnemonic TIMWOOD refers to the elimination of seven different wastes. When it comes to productivity, the sad truth is that only about 5% of employee work time each day is spent on value added tasks that actually benefit the customer. However, knowing that statistic, it leaves many of us wondering “What are employees doing with the other 95% of daily work time?” Some may insist the rest of the time is spent on waste or tasks that essentially add no value to customer satisfaction. In order to combat unwanted losses in productivity and waste, we must first identify and understand TIMWOOD and how the elimination of the seven wastes can make a difference.

What Does TIMWOOD Stand For?

Many people choose to use mnemonics in order to help them quickly and easily identify multiple items. The mnemonic TIMWOOD is also used for that purpose. Let’s take a look at each letter and how it contributes towards the elimination of waste.

  • T- Transport: Even though product transportation is virtually unavoidable, the time and distance are both controlled variables. Many times products are moved multiple times before reaching their final destinations. However, each time a product is moved it runs the risk of being lost or damaged which in turn eliminates value.
  • I – Inventory: When working towards lean, it is important to avoid an abundance unused and unsold inventory that just sits around on shelves or in storage. Whether the inventory is of parts, partially finished products, or finished items, the more inventory there is, the higher the loss in value since funds are tied up in unsold goods.
  • M – Movement: This waste is similar to transportation waste, but instead of focusing on the loss of value with products in transport, this waste focuses on transportation or movement equipment. When trucks, hauling vehicles, and other movement devices are used for unnecessary long amounts of time and for unneeded tasks the value goes down while the opportunity for damage increases.
  • W – Waiting and Delays: When products are sitting in limbo, somewhere between the start and finish of production they are not adding value to the business and are thus creating waste.
  • O – Overproduction: The waste of overproduction has been considered one of the worst wastes. Money is wasted because businesses must pay employees to manufacture the parts, find places to store them, inventory them, etc. All of these are redundant costs that could be avoided.
  • O – Over Processing: Over Processing basically means to do more to a product than technically needed, and if a product is not 100% perfect it is rejected and therefore wasted. Even though businesses aim to provide customers with high quality products that operate as intended, small imperfections that would not impede function, use, or aesthetics should not be automatically disposed of and reworked.
  • D – Defects: Defects do not add value. When products are created with a defect that hampers the function they must be reworked and remanufactured. This causes a waste in production, materials, and other resources such as electricity and machine wear and tear.

Waste is Avoidable!

With the right amount of dedication and drive, anyone can succeed with the elimination of waste. However, the first step is to identify the areas of waste so tactics can be implemented to revamp processes and practices to help reduce waste and start improving productivity. The best part is that any business can benefit from waste removal; TIMWOOD is not geared only towards industrial or manufacturing businesses as it can also be effectively implemented in nearly any work environment.

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: 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.

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