Comments on: Updated: Southwest Airlines Would Say Delphi Management is Failing http://www.leanblog.org/2007/06/southwest-airlines-would-say-delphi/ Mark Graban's leanblog.org - Lean Healthcare, Lean Thinking, Lean Manufacturing, Toyota Production System Thu, 09 Feb 2012 22:59:58 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Ralf http://www.leanblog.org/2007/06/southwest-airlines-would-say-delphi/#comment-2228 Ralf Sat, 30 Jun 2007 20:13:00 +0000 http://leanblog.bigbigdesign.net/2007/06/updated-southwest-airlines-would-say-delphi-management-is-failing/#comment-2228 Hello,<br/><br/>I think Southwest is on the right track: people are the only power in a company:-)<br/><br/>Everything else comes from there.<br/><br/>Even though they probably don't name it Lean, it is "the Southwest Way", they are exactly doing what is necessary to stay competetive in a global world -in the long run.<br/><br/>Last week I attended a workshop on System Dynamics at MIT in Boston and we talked about People Express that emerged in the early 80s to be off the market bei '86. This example of rise and fall (to elimination from the market) is used to show the effects of feedback loops and their -in this case- deadly outcome.<br/><br/>Due to the low prices the airline grew fast and almost exponentially. Even though they valued the people at PE similar as Southwest does, they grew so fast that the quality of the personnel was decreasing and through that negative feedback get the "bad" word of mouth growing leading to the final decline.<br/><br/>Actually there exists an interesting management flight simulator (PC based program built by MIT) where one can simulate the situations from that years and trying to use strategies to overcome this kind of reaction.<br/><br/>If anybody is interested in further information on System Dynamics (connected to Lean) and similar management flight simulators please let me know via ralf_lippold@web.de<br/><br/>Best regards<br/><br/>Ralf <br/><br/>PS.: It is really a pity, as I tried to fly Southwest to get a life experience;-( Hello,

I think Southwest is on the right track: people are the only power in a company:-)

Everything else comes from there.

Even though they probably don’t name it Lean, it is “the Southwest Way”, they are exactly doing what is necessary to stay competetive in a global world -in the long run.

Last week I attended a workshop on System Dynamics at MIT in Boston and we talked about People Express that emerged in the early 80s to be off the market bei ’86. This example of rise and fall (to elimination from the market) is used to show the effects of feedback loops and their -in this case- deadly outcome.

Due to the low prices the airline grew fast and almost exponentially. Even though they valued the people at PE similar as Southwest does, they grew so fast that the quality of the personnel was decreasing and through that negative feedback get the “bad” word of mouth growing leading to the final decline.

Actually there exists an interesting management flight simulator (PC based program built by MIT) where one can simulate the situations from that years and trying to use strategies to overcome this kind of reaction.

If anybody is interested in further information on System Dynamics (connected to Lean) and similar management flight simulators please let me know via ralf_lippold@web.de

Best regards

Ralf

PS.: It is really a pity, as I tried to fly Southwest to get a life experience;-(

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]]> By: Andy Wagner http://www.leanblog.org/2007/06/southwest-airlines-would-say-delphi/#comment-2226 Andy Wagner Fri, 29 Jun 2007 12:24:00 +0000 http://leanblog.bigbigdesign.net/2007/06/updated-southwest-airlines-would-say-delphi-management-is-failing/#comment-2226 I read this morning that Southwest is delaying delivery of 15 737s to their fleet, slowing their fleet growth to match their reduced financial growth. Rather than laying off mechanics while the fleet expands, they're keeping costs low by not building the fleet. Plain and simple leadership.<br/>Is Southwest Airlines lean? Maybe not explicitly Toyota lean, but they are the peak of "respect for people" in their industry and they use relentless elimination of waste and reduced lead times as a competitive strategy. Sounds lean to me. I read this morning that Southwest is delaying delivery of 15 737s to their fleet, slowing their fleet growth to match their reduced financial growth. Rather than laying off mechanics while the fleet expands, they’re keeping costs low by not building the fleet. Plain and simple leadership.
Is Southwest Airlines lean? Maybe not explicitly Toyota lean, but they are the peak of “respect for people” in their industry and they use relentless elimination of waste and reduced lead times as a competitive strategy. Sounds lean to me.

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