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Monday, March 31, 2008

Leadership versus Management

by Jamie Flinchbaugh, Lean Learning Center


For a long time, we have been saying that leadership is one of the top reasons that lean efforts fail. Many have begun to figure this out. Lean is more than changing a few systems and training a few people. But why does a support of improving leadership have to include a disdain for management. Management is like leadership - there is good, and there is bad. But it is different, and it is just as important as leadership.

There is a recent article in SME's Manufacturing Engineering Magazine called Leadership is Critical to Lean. This is of course true. But throughout it basically takes bad characteristics in organizations and calls it management. For example, management is described as:
  • Often doesn't listen
  • Stays detached
  • Unconcerned
  • Often insincere
  • Knows it all
  • In his/her office
Perhaps this is a description of bad management, but it is not management. Management is not as sexy as leadership. That's why writers don't like to write about it. But anyone who's ever been a manager knows there is more to it than authors think. I just happened to write about this in my latest Assembly Magazine Leading Lean column which you can read here.

Leadership is required to get things going. The quality and depth of leadership will determine how far and how fast you progress. But without management, it will be one step forward, one step backwards. Management is about accountability, daily problem solving, marshaling resources. Quality management is the backstop that sustains progress made. It's time to stop badmouthing management and instead focus on improvement management.

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LeanBlog Podcast #39 - Jeff Liker, Toyota Culture, Part 2

Here is LeanBlog Podcast #39, once again featuring Dr. Jeffrey Liker, Professor of Industrial and Operations Engineering at the University of Michigan. Dr. Liker is most recently the co-author (with Michael Hoseus) of Toyota Culture: The Heart and Soul of the Toyota Way and many other books, which can be found here on amazon.com. This is part 2 of what will be a 3-part podcast series, so be sure to check back. Today, we talk about some of the challenges that organizations face in trying to adopt a Lean Culture.

For earlier episodes, visit the main Podcast page, which includes information on how to subscribe via RSS or via Apple iTunes.

You can use the player (use the VCR-type controls) below to listen to a "streaming" version of the podcast (or click here for the streaming audio and RSS subscription). The streaming link is faster for one-time listening (hardly any delay to start listening). Or you can use the download link to put it on your iPod or other MP3 player.




MP3 File Right-Click to "Save As"

LeanBlog Podcast #39 Key Points & Links

  • Will Dr. Liker be writing more about companies who have gone through the Lean culture transformation, examples other than Toyota, ala his earlier book, Becoming Lean: Inside Stories of U.S. Manufacturers?

  • Bob Emiliani's book on Wiremold: Better Thinking, Better Results Case Study and Analysis of an Enterprise-Wide Lean Transformation

  • Why is it so hard to find examples of companies that have really adopted a Lean culture?

  • Thoughts on the impact of top American leaders departing Toyota (Jim Press and Gary Convis)

If you have feedback on the podcast, or any questions for me or my guests, you can email me at leanpodcast@gmail.com or you can call and leave a voicemail by calling the "Lean Line" at (817) 776-LEAN (817-776-5326) or contact me via Skype id "mgraban". Please give your location and your first name. Any comments (email or voicemail) might be used in follow ups to the podcast.


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Sunday, March 30, 2008

Safety, Quality (Starts), Delivery (to the Plate), and Coaches

Coaches grousing over mandatory helmets : Rockies : The Rocky Mountain News

Happy Opening Day to baseball fans out there. I grew up a huge Detroit Tigers fan (and a highlight was that championship 1984 season) and still like the game (although I'm not as encyclopedic as I was as a kid). Since the first two games were "outsourced" to Japan (that's an attempt at a joke, not outrage), this is not the first game of the season, but it's a new stadium in D.C. and the President threw out the first pitch. Pretty cool.

I'm sort of regretting my headline... it was admittedly a stretch to find baseball terms that fit the typical Lean "SQDC" model (Safety, Quality, Delivery and Cost). No, I haven't had too many opening day beers!

I saw a story on ESPN today that got me thinking. You might notice that the 1st base and 3rd base coaches are now wearing protective helmets, as pictured at left. The new rule (made mandatory by Major League Baseball executives) is a reaction to a tragedy last year when a minor league coach, Mike Coolbaugh, was killed when hit in the neck by a line drive.

It wasn't a particularly proactive rule, since there have been many near misses and it's a known danger in the game, especially when coaches stand outside of their "coaches box," putting themselves CLOSER to the hitter than they are supposed to be. The coaches have long violated the "Standardized Work" (if you will), but I don't recall ever seeing that rule enforced by umpires (can be ejected from the game, technically). Coolbaugh was standing in the box when he was struck.

As with any story, there are too sides. You might ask, "How can you question wearing helmets? Safety is paramount!"

But many coaches are upset about the new rule, as the article I linked to at the top of this post indicated (or do a google news search on the topic and you find a lot of articles about coaches complaining).

What are the coaches complaints?
  1. Nobody talked to us
  2. We're unlikely to be hit in the top of the head, so what good are the helmets? (Coolbaugh was hit in the neck, remember)
  3. Pitchers are in a dangerous position, why don't they wear helmets?
  4. If helmets are safe, why not full football helmet facemasks?
Complaint #1 is the most interesting. I wonder how much of the other complaining is triggered by the fact that the decision was made by an executive in New York and that decision was made without talking to the coaches. It's a general Lean principle that we should have "respect for people" and involve people in decisions and process improvement. Sounds like baseball execs, even if they're right, got everyone riled up by forgetting to respect and involve the coaches, the ones at risk.

Do you recall hearing similar complaints when safety glasses were first made mandatory in your factory? There are all sorts of parallels -- maybe people weren't involved, execs had no choice but to put the rule in place. Maybe there had never been an eye injury in the factory (just a lot of close calls). Maybe someone said "yeah, you're protecting my eyes, but what about my neck or hands?"

No easy answers. I'm sure, as with safety glasses, the helmets will seem normal to everybody before long, even the coaches. It just struck me that this fits a pattern of recent "top-down" decisions from sports leagues that didn't involve the players. First, it was the NBA and the new ball controversy, then the NHL and the new jerseys. In both cases, there was backpedaling after players complained -- the NBA went back to the old ball and some NHL teams have ditched the new jersey material for the old.

What do you think? Either in the case of baseball safety, or parallels you might use at work when talking about safety and rules?

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Saturday, March 29, 2008

Lean or 'L.A.M.E.' in a Hospital?

To build a better hospital, Virginia Mason takes lessons from Toyota plants

A number of you emailed me about the above article that was featured in the Seattle Post-Intelligencer about Virginia Mason Medical Center, a hospital that's seen as one of the leaders in the Lean healthcare movement. If you read this article (via Rona Consulting), you can see the very positive improvements that have been made in terms of patient outcomes and quality of care (I'll post more about that article in a future post.

The newspaper story is a fairly typical "Lean case study" article that you see in the news about the benefits from Lean methods.
"They began looking for a better way to improve quality, safety and patient satisfaction. After two years of searching, they discovered the Toyota Production system, also known as lean manufacturing. Developed in part by Japanese businessman Taiichi Ohno, the idea is to eliminate waste and defects in production. Virginia Mason has tailored the Japanese model to fit health care."
That's great, focusing on the benefits and the problems being solved. The point isn't to "implement Lean" but rather to improve the system for patients, providers, and payers.

The article talks about the lean tools that Virginia Mason has used -- identifying waste, kanban systems for replenishing supplies, standardized work, visual management, and a line stoppage system to immediately highlight and correct safety or quality problems.

But, again, beyond tools, it's the benefits that matter:
Virginia Mason said overall benefits include an 85 percent reduction in how long patients wait to get lab results back, and lowering inventory costs by $1 million. They've redesigned facilities to make patient and staff work flow more productive. The hospital reduced overtime and temporary labor expenses by $500,000 in one year and increased productivity by 93 percent. While direct cost savings aren't passed on to patients with the new system, less waiting, increased safety and more efficient care are.
That's good stuff.

The real fireworks came, though, in the Comments Page for the article.

You always have to take anonymous internet comments with a grain of salt, but it's interesting to see what comes up.

The first comment raises a good question:
I don't see any of the regular hospital staff quoted in this article (RNs, CNAs, etc.). What do they think of these cost saving measures? Do they feel more productive? Do they feel like robots? What do the patients think?
It would be great to see quotes from staff and patients. If lean is being done properly, they will benefit from the improvements. If lean is done properly, the front line staff are being engaged in the improvements through their suggestions and ideas. I've heard a hospital employee say "I feel like a robot," but that was BEFORE Lean. The employee (in a lab) was never asked by managers about improving the process. It was just "show up and do your job." In Lean implementations (including those I've worked on), employees always comment about how they enjoy finally being involved in improvement and how they enjoy being listened to. So, I'd argue that lean should make people feel LESS like a "robot."

Then, the comments start shifting into wild accusations and potential hyperbole.
Yeah....I left Virginia Mason because of this system. It has completely ruined morale among workers.
I tend to doubt complete blanket statements like this. There are always going to be some people who are upset with even the best lean implementations. Or, people could have legitimate complaints if lean efforts are approaching "L.A.M.E." territory ("Lean As Misguidely Executed").

The first complainer brings up a legitimate beef:
I was in the accounting office, but when they implemented this system I literally had a guy with a stopwatch standing over me for two days timing my every move, looking for ways I could accomplish more in less time. I can't tell you how demeaning that felt.
That description could be more L.A.M.E. than lean. If an "expert" is standing over you and watching, without getting your input, partnership, and participation, that would certainly be very demeaning. That's not how I would do time study or process observation like that. You have to involve people and you have to focus not just on "doing more" but also on quality and other factors -- making sure you're meeting customer needs, not just working quickly.

But, then the comment takes an uglier turn:
There's also such a thing as being too lean. This system has actually caused problems at Virginia Mason, most notably the death of an elderly female patient because they had gone so lean that a certain chemical wasn't properly labeled and she was injected with it.
I don't doubt that a patient would be injected with the wrong medication or chemical - it's a likely medical error that happens far too often. I've seen, in "pre-Lean" hospitals, unlabeled syringes and medications -- circumstances that violate hospital policies and best practices. So, to blame "lean" for that error is hopefully misguided blame. I can't think of a responsible lean project that would say "let's save money by NOT labeling chemicals or meds." That just wouldn't happen, not in a truly Lean environment. For one, you wouldn't cut corners like that. Secondly, there would be proper oversight and auditing of the "standardized work" that says everything must be labeled properly.

There are many more comments that I'd like to comment on... but let me address those in future posts.

What do you think is behind these comments? Real problems in how Lean is being down there or some sort of backlash driven by other factors?

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Friday, March 28, 2008

Linkedin.com Lean Networking

I don't know how many of you are LinkedIn users, but I've found it to be a very helpful and professional networking tool. If you're a member and want to connect on there, just let me know in your invite that you're a Lean Blog reader.

A colleague in the Lean world, Tim Noble, has created a LinkedIn group for Lean healthcare professionals. If you're interested in joining, click here for the sign-up page. He also has created a more general group for Lean and Six Sigma.

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A Bright Green Future: Applying Lean to the Whole Planet

By Jason Turgeon:

In my first post a couple of weeks ago, I wrote about the tension between what I called "new" and "old" environmentalism. Not that I had expected to be the first to notice this tension, but I was both pleasantly surprised and somewhat humbled when A Brighter Shade of Green floated through my field of view just days later. The article makes my point far better than I did, explaining how Bruce Sterling phrased the argument as the new "bright green" vs. the old "dark green." Ross Robertson is a much more talented writer than I am, and I hope you can find time to read the whole thing. In case you can't, here's a capsule summary:

  • Environmentalists have been struggling privately for years with their misanthropic side. There is a certain feeling in the movement that the planet might be better off without people and/or technology, and the mainstream media and our conservative foes have picked up on this unspoken tension and magnified it.

  • Being branded as misanthropes is a really lousy way to get buy-in from the people who can make a difference.

  • Like it or not, people now control the planet and every natural system on it. And so far, we're doing a really terrible job of running the show. In the words of Stewart Brand of Whole Earth Catalog fame, “We are as gods, and might as well get good at it.”

  • The people (especially Alex Steffen) at WorldChanging, a blog that holds a top spot on Google Reader, have taken up the bright green torch and are busy offering up solutions to the problems we're facing today.

  • The bright green movement is in danger of swinging too far the other way: "the greatest danger for bright green today seems to be that the very thing that makes it so progressive—its attempt to integrate postmodern ecological consciousness into the modernist project of economic and social progress—is the same thing that threatens to drag it backward into an overly materialistic orientation toward sustainability and global development."

  • The conclusion is that the movement will succeed if it can make room for spirituality, not a surprising conclusion since the article appeared in What is Enlightenment magazine.
With a close reading, Lean followers will find a lot to think about in the article. If you'll pardon my excessive use of bullet points, here are a few examples:
  • When he quotes former Sierra Club president Adam Werbach talking about Dark Green's unspoken misanthropy being "political suicide," Robertson might as well have been talking about the need for buy-in from top management (something the green movement has never had).

  • In discussing the utility of WorldChanging's ecological footprint approach to measuring our impact on the planet, there is a strong parallel to Lean's emphasis on performance measurement.

  • Robertson's capsule summary of Cradle to Cradle touches on Lean's foundation in the elimination of waste. C-to-C is entirely about eliminating waste.

  • The coverage of the stated benefits of the current rural-to-urban shift, especially for women in the developing world, is another way of talking about Lean's respect for people.

  • When Robertson says that "World changing advocates open-source models of design, copyright, and licensing that encourage collaboration, maximize the appropriateness of solutions in local contexts, and allow for uninhibited retooling of technologies to keep pace with evolving realities on the ground," he could just as easily have been describing Lean's reliance on Flexible Tools.

  • Talking about James Lovelock's Gaia hypothesis, which views the earth as a single living superorganism, and the impact on earlier generations of seeing images of the earth from space for the first time, we can take a step back and relate to Lean's systems management approach.


It seems clear to me that there is a lot of room to apply Lean thinking as we develop our "Bright Green Future." Let me know what you think in the comments.

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Thursday, March 27, 2008

This UPS Ad Has it Backwards

Time to pick on UPS again (see the "UPS" link at the bottom of the post)... Has anyone else seen the UPS "whiteboard" ad (the ones with the annoying long-haired business-casual corporate hippie guy) that's running during almost every NCAA basketball commercial break?

The ad talks about globalizing your business and it shows boxes flowing on a conveyor from a factory in the east coast to rest of the U.S. Kind of a quaint old "we used to build stuff here" supply chain. Once the business is enabled by UPS, supposedly, boxes are now flowing from that factory to the entire world.... including TO CHINA.

Since the UPS website is maddening to navigate, I'll save you the virtual waste of motion, embedding the stupid ad below (kicking myself for giving them free publicity):



Really? That's the most accurate supply chain they could have portrayed? Our trade imbalance with China, in the month of January 2008 alone, was $20 Billion dollars. Don't most executives watching basketball want to send tons of boxes the opposite direction, from China's cheap labor to the U.S. and global markets? I'm not encouraging that myself, but I would have expected the UPS globalization ad to be reasonably accurate for this decade, that's all.

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A True Story, Best I Can Tell


I know this sounds like the stuff of urban legend, but I had someone tell me this story today, someone with no real interest in exaggerating, so I would tend to believe it.

He was Canadian-born, but recently became a U.S. citizen. At the ceremony, he was given a flag pin that, of course, said "MADE IN CHINA" on the backside.

There's not a single American source of flag pins anymore? I assume with all of the news anchors and politicians, there would be SOMEBODY who makes them domestically, just because.

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Cleaning Out the LeanBlog Backlog - March 27

Sometimes, I have a collection of news stories or links that I either don't have time to blog about, assume you don't have time to read about, or don't really merit a full blog post. So my "WIP" of "draft" posts or links I've set aside grows.

One administrative note - I'm having some technical glitches that are delaying my release of Part 2 of my Jeff Liker podcast discussion about "Toyota Culture" (episode #39). Hopefully, I'll get that out Friday or Monday.
"our Lean in Lothian service development programme has been extremely successful precisely because it does not elevate one group of healthcare staff above another. By empowering frontline staff to spot opportunities for improvements, and then supporting them in making the changes needed, NHS Lothian is liberating the skills and creativity of all of the members of our team – and it is our patients who are seeing the difference in terms of faster treatment."


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Wednesday, March 26, 2008

Dennis Quaid on 60 Minutes

Dennis Quaid Recounts Twins' Drug Ordeal, Actor Tells 60 Minutes' Steve Kroft Medical Errors Kill Thousands - CBS News

Did you see the actor Dennis Quaid on 60 Minutes last week? He talked about the sad case where his twin babies were mistakenly overdosed TWICE at Cedar-Sinai Hospital in Los Angeles.

His babies are recovered now, thankfully. The silver lining on the sad case is that Quaid, as an actor and celebrity can become a powerful voice and advocate for patient safety and preventing systemic errors - highlighting the problem AND suggesting countermeasures and systemic fixes.

As Quaid recounted the story, he first seemed to blame the nurse: "The nurse didn't bother to look" at the dose (the correct dose, on the right, and the incorrect dose are both pictured here). Later, he mentioned, correctly, that a series of errors had occurred. As I've said before, it's too simplistic to just blame or punish a single person when an error like this occurs. That approach certainly doesn't help prevent other such errors.

He said the babies had been given TWO massive overdoses in an 8-hour period "that we know of," he said -- again, the signs that there's suspicion of a cover-up. It also highlights what a systemic error this is, that it could happen twice in the same hospital. It was a chain of errors that occurred. First, someone in the pharmacy picked the wrong dose. Secondly, a pharmacist is supposed to double-check any medications that leave the pharmacy (an inspection step). That's two people who are supposed to "bother" to look at the label. Then, there's the person who delivers the medication to the ICU. Finally, the nurse is the last in that chain. But, the nurse isn't expecting that the adult dose of Heparin is even there in a neonatal unit. So, pretty easy to let your guard down, right? I don't think that's an excuse, that's just reality.

Quaid was right to say the errors were "avoidable" -- pointing out it was the same avoidable errors as the case where three babies died at Methodist in Indianapolis.

Quaid has become pretty obsessed with researching the topic (he was shown on the computer, maybe he's been on this blog?) and discovered the errors happen "everywhere." He cited the "100,000 deaths a year" number (which comes from the late 90's study from the Institute of Medicine. Quaid said, "This is bigger than AIDS, bigger than breast cancer... yet nobody seems to be really aware of the problem." I'm glad Quaid is trying to spread the word and to help others.

There was a lot of talking about the old labeling being too similar across the two bottles. The new label (pictured on the right) is better because it's not just a different shade of blue and it requires a different motion (tearing off a paper cover) that is not required for the smaller Hep-Lock dose that is intended for babies.

The old stock (the old, more mistakable labels) was NOT recalled. Cedar-Sinai was using up their old stock first (sure, it was "FIFO" or First-In-First-Out, something Lean folks generally like), but that shouldn't have been the case when safety was at risk. What responsibility does hospital administration take for this materials decision?

The maker of the drugs, Baxter, had a spokesperson on 60 Minutes who reminded us that people were supposed to read the label (again, casting blame), even though the labels had been mistaken many times before by other nurses in other hospitals. But they redesigned the labels after earlier incidents. It was not necessary to recall, 60 Minutes asked? The Baxter spokesperson said "No, the drugs were safe" and that it was due to preventable errors in the hospital's system.

The CEO of Cedar-Sinai admits it was human error, preventable error. The CEO said "you need backup systems" and CBS's Steve Kroft asked, "but you had backup systems, you had three people." How many more backups can you add? More inspections and more backups isn't necessarily more effective due to, here it is again, "human error" in inspection. When many people are checking something, it's human nature to let your guard down because the "other person" will get it.

So what is my advice? Hospitals need to bee proactive, with this and other known risks. Leaders need to manage the process, not just reacting after bad results. If you're in a similar hospital setting, are YOUR people double-checking the medications? Are you spot checking this to see if it's really the case? There was "standardized work" (the Lean term, the hospital probably called it "policy") in place to double check the medications, but administration took their eye off the ball (if it was ever on there). We need to move from "policies" (which are never "policed") to a "standardized work system" where supervisors and leaders are working WITH their employees, checking to see if key processes are being followed, BEFORE harm occurs.

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Tuesday, March 25, 2008

Kaizen and Theory of Constraints

I got a question from a reader and Theory of Constraints fan:
"One of the topics that I'm struggling with is the relationship between Kaizen and TOC. When Norman Bodek talks about the savings people have gotten through Kaizen, does he actually get measurable increase in throughput?

I'm tempted to implement his ideas, but wonder if they are going to make an impact if they are not addressing the current constraint in the system."
I won't try to answer on Norman's behalf, but these are my thoughts.

I'm sure there have been situations where his "quick and easy kaizen" method have been used to tackle throughput problems.

One thing I always focus on, with Lean, is solving the right problem, not just implementing Lean tools. For example, I'm working with a hospital's radiology department, where MRI throughput and capacity is the most pressing issue. So, almost everything we're working on is in the name of breaking that constraint. We're not calling it TOC, but (in my mind) the influence is there.

So, I think the best answer is that you certainly can try using Norman's methods to engage employees in how to improve throughput. I don't see why there would be any conflict. Now, it throughput increases are going to lead to job loss, then that method won't work. Management has to make the usual Lean commitment to not have Lean lead to layoffs (have to try to grow your way out of that problem).

Do you have thoughts on this? Click "comments" to participate.

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Monday, March 24, 2008

WWTD? Think!

I heard an interesting quote a while back (and I can't remember the source!). The speaker said something to the effect of:
"The more we try to copy Toyota, the less Toyota-like we are becoming."
In my Lean career, I've heard so many stories of companies copying Toyota or doing something because they read it in a book. A friend recently told me the story of a company that implemented U-shaped assembly lines, "because that's Lean." When pressed for more of an explanation, he couldn't get one.

My friend (who is very experienced with Lean from other companies) then explained to them how a U-shaped cell is particularly handy when a single operator is running multiple machines... but this company had stationary assembly employees (that weren't balanced anywhere near Takt time).

That shape and layout might also be a benefit for a single supervisor to help a team that's located inside the U, for improved communication, but this company's supervisors were in meetings and their office most of the time. So what was the benefit? Why spend the money re-configuring the line?

When you copy, you're more likely to miss the mark than you are if you actually think through situations yourself. That's why Toyota execs like calling TPS the "Thinking Production System." There's no substitute for thinking, learning from experience, and PDCA... but too many companies want quick answers and copied solutions.

I always challenge my Lean client teams with a few ideas. First, quit asking "What does Lean say we should do about....?" Lean doesn't say anything. Lean is a set of concepts and principles that we have to think through. I've often said, "A U-shaped layout is the best thing, unless it is not." You have to think about it and consider different alternatives. What Would Toyota Do? Think!

Another thing I challenge them with is always being able to explain "why" we are doing something. "What problem are we solving?" should be the focus, not "What Lean tool are we implementing?"

There are no easy answers, just thinking, and Plan-Do-Check-Act. I guess that's one reason why I never get bored with this stuff.

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Lowest "Respect for People" Score Ever?

Employee's suit: Company used waterboarding to motivate workers - Salt Lake Tribune

This isn't a "Lean" article, but holy moley, you have to read the linked story and think about how a company culture gets that far off the rails.

First off, there's really no formal "scorecard" for a company's performance on the "respect for people" principle of the Toyota Production System... but if there were, a Utah company called "Prosper" might have earned an all-time low score... not that they're a company that's trying to do anything Lean. I guess it goes to show that "respect for people" has to be spelled out as a Toyota Way principle because there are too many workplace examples of disrespect...

As you can see in the headline of the linked article, yes, a former salesperson has accused a manager of "waterboarding" him in a "motivational" exercise:
The suit claims that Hudgens' team leader, Joshua Christopherson, asked for volunteers in May for "a new motivational exercise," which he did not describe. Hudgens, who was 26 at the time, volunteered in order to "prove his loyalty and determination," the suit claims.

Christopherson led the sales team to the top of a hill near the office and told Hudgens to lie down with his head downhill, the suit claims. Christopherson then told the rest of the team to hold Hudgens by the arms and legs.

Christopherson poured water from a gallon jug over Hudgen's mouth and nostrils - like the interrogation strategy known as "waterboarding" - and told the team members to hold Hudgens down as he struggled, the suit alleges.
The company president, Dave Ellis, does NOT deny that the exercise occurred... it was just a misunderstanding, since it was something that Socrates supposedly did to demonstration that you should be willing to fight for something as hard as you had to fight to breathe.

The allegation is being questioned of course, and this could be an example of a former employee exaggerating the situation.

The other allegations include:
However, the suit claims Christopherson "intentionally engaged in physically and emotionally abusive conduct" to punish workers who did not meet company performance goals.

"Prosper's management passed by and through Christopherson's team area and was able to see mustaches on its employees, missing chairs and Christopherson's paddle," the suit alleges.

Ellis said no managers have said they saw the activities described in Hudgens' suit, and the employees reported they are "more along the lines of fun."

"It's voluntary, it's humorous, it's team and camaraderie-building," Ellis said.
Ah ha -- "did not meet company performance goals." This sounds like an extreme case of the typical "carrot and stick" system of management by objectives... reward those who do well (with boat trips) and humiliate or punish those who don't meet the objectives. If managers were pounding people's desks with a paddle and drawing mustaches on them, I doubt there were control charts to see if the difference between "boat trip" and "chair taken away" was statistically significant or not!

I'm sure the company started off with good intentions... but their traditional view of rewards and performance-based recognition went haywire. Why is it that companies are much more willing to fire and punish "poor performers" than they are to look at the systemic causes.... oh, because the executives might have to look in the mirror?

Or, Prosper might suggest that you hire.... well, hire Prosper, Inc. If you look at their website, it's a bit creepy. They claim to be a company that has training and other services to coach other companies and entrepreneurs in being successful. Their product is so good, apparently, that they have to waterboard their salespeople into pushing whatever crap it is that they have?

A quote on their home page:
"We are the solution! From the beginning... like the rings of waves on the surface of the pool of success."
Those rings of waves are emanating out from someone who is being drowned in a motivational exercise, apparently!

A more recent news story claims that the publicity "hasn't hurt business." Go figure...

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Sunday, March 23, 2008

Lean in Russia - Part 3

Here is Part 3 of my exchange with Slava Boltrukevich, from Moscow. Here are Part 1 and Part 2 of our discussion about Lean in Russia.

Mark: Is there a "James Womack of Russia" or do people there tend to look to the international figures like Womack?

Slava: Very good question! Short answer is NO. No one can substitute Jim :-). In fact thanks Jim for the spread of lean in our country. The first book on the subject was Jim's "Lean thinking". It was published only in 2003 - some 5 years ago. Right after that we have published Ohno's classic "Toyota Production System". So actually we can admit, that Jim has introduced Lean to Russia. It's funny though, that he has never been to our country yet (I met him in Boston last summer and we had a nice conversation).

Although we do have very respected professionals in the area of production management. Yuri Adler, Vadim Lapidus, Yuri Rubanik - all of them are well known professors, who has been playing major role in transformation of management systems of many Russian companies.

Mark: What are the most popular Lean books that have been translated into Russian?

Slava: Answering the previous question I have given part of the answer. Here first of all I would like to thank Maura May and her colleages at Productivity Press for thier work of producing many great titles on the subject. We have been closely working with them for several years, and have published over 15 books so far. I hope we will continue realise our common mission to provide information on lean mass audience.

Speaking about concrete titles, I can say that Ohno's "Toyota Production System" is well known book. Very stable sales for a few years in a row so far. We have published most of the books from the Shopfloor Series (of Productivity Press). "5S for the Operators" is a bestseller. Shigeo Shingo's "A Study of TPS" is a respected title by professionals. We are proud, that Pascal Dennis's business novel "Andy and Me" we have published last May was recognized as the best business title published in Russia in 2007.

As I also said, Jim's book "Lean thinking" is a popular title, as well as Jeff Liker's "Toyota Way". Some other titles have been published during the last 4 years.

Mark: Do you know if any Russian hospitals or healthcare facilities have used Lean principles?

Slava: No, unfortunately lean is been developed in the manufacturing industries only so far. I don't even know a service company that would be dedicated to lean. The reasons are different though.

Hospitals are mostly non-private so far in Russia. Thus, since there is no clear "owner" or shareholder, who would be interested in implementing lean, the process is not going anywhere. No one at the top who should be dedicated.

In our service industries (banks, insurance, retail...) there are very concrete shareholders who seek for profit. But another problem is the absence of a real competition. Every company's growth is tens of percent every year. They grow fast, thus there is no "need" for lean. This situation will continue until they are confronted with hard competition for the customer.

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Another Wisconsin Lean Story

Appleton Post-Crescent: Little Chute company sees a sharp future

Here's another story about a small company in Wisconsin -- they're using Lean to get more competitive. Valley Grinding & Manufacturing (nicknamed "VG") makes equipment that's used to sharpen blades and grinders. Wisconsin seems to have a real concentration of Lean stories, both in factories and hospitals like ThedaCare. Or maybe the newspapers just like writing about Lean more up there. From the article:

For the lean venture, the company brought aboard Pete L'Empereur, continuous improvement manager, in late 2006. Van Vreede said they started on the manufacturing side of the operation where they see their biggest return. The lean measures next will be applied to the sharpening side of the firm.

A $425,000 machinery expansion is designed to accommodate a "one piece" flow of product through manufacturing. "The whole flow aspect is huge," L'Empereur said. "Anytime you have to stop and start and stack and unstack work, it causes a lot of inefficiency."

There's not much detail in the story, but it's always great to see small companies taking control of their destiny. Hard work, business acumen, and Lean is always nicer to see than excuses and complaining, as we often see from large companies. Good luck with your lean efforts, "VG."

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Saturday, March 22, 2008

How a Non-Lean Culture Can Harm Patients

Sometimes people ask me, "how does Lean apply in a hospital?" The critical issues in a hospital are more often about culture and environment (although using technical lean methods for improving processes and flow are important also).

Many hospitals, unfortunately, have "current state" cultures where people (particularly nurses or technologists) are afraid to speak up in the name of safety or quality. They are often afraid to speak up because they're intimidated by administrators or physicians or surgeons.

If somebody knows something unsafe has happened or is about to happen, they might keep quiet because:
  1. They are too busy to speak up
  2. They are too scared to speak up
  3. Speaking up didn't get anything fixed last time, it just brought them grief, so why bother
This reminds me of my time in the GM factory, circa 1995. There was nothing "lean" about that environment (until we got new leadership).

It's sad that hospitals are often this way. The employees deserve better and patients certainly deserve better.

The Lean approach and the Toyota Way philosophy are very different than this. People are supposed to speak up, to "stop the line" when there is a quality or safety concern. Thankfully some hospitals are working on improving this culture (like Virginia Mason and ThedaCare).

Tracing this back to Deming, employees are supposed to be able to have pride in their work. Not letting them speak up, knowing something bad might happen destroys that. It's also not very customer/patient focused. As Deming said, we have to eliminate fear from the workplace if we want quality, and that includes hospitals. Especially hospitals. It requires leadership. People preaching about "this is what a lean culture should be" won't be enough.

I'm curious to read more about the aviation concept of "Crew Resource Management" and how it is being applied in medicine. Many airline crashes were traced back to a root cause of subordinates not being willing to question or challenge the pilot who was "in command" and infallible. But guess what, pilots (and doctors) are human and therefore fallible. It seems intuitive that applying CRM methods and coaching could potentially help change hospital or O.R. cultures (if people are willing to admit there's a problem with the current culture). Physician, heal thyself, eh?.

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Friday, March 21, 2008

3 Years of Lean Blogging

I just realized I was too busy to stop and recognize the "birthday" of the Lean Blog, as we turned "3" in March. I'm proud of the blog and very grateful for the constructive and friendly community that we have in the manufacturing and lean blogging space. I've made some good friends through the blog - those who comment on posts or email me, those who have contributed to the blog as writers, and other bloggers who collaborate with me.

In three years, I think the site has come a long way:
  • The blog used to be the "Lean Manufacturing Blog" and looked like this (pretty sparse and ugly!). We're now just "Lean Blog" as the focus has shifted from manufacturing to the Lean and Toyota Production System concepts in general.

  • Here's what I was blogging about in March 2005.

  • The traffic numbers aren't the primary reason why I blog, but the # of daily visitors has grown from:
    • 40/day in March 2005
    • 200/day in March 2006
    • 600/day in March 2007
    • Still holding steady about 600/day, but we have more frequent spikes of over 1000/day, thanks to links from major business websites, like MSN Money.

  • Added a podcast in July 2006 (www.leanpodcast.org) -- now have 40 episodes.

  • The blog is what helped lead to the opportunity to write my book (thanks, Dean!)
Here are previous "birthday" / "hansei" reflection posts from previous years:
As I've said before, blogging is a great way to learn and can be a great networking tool if you're willing to work at it. The NY Times had a good article on blogging the other day. If you have a niche you are passionate about, start your own blog, give it try. Thanks, as always, for reading and participating.

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My Book's Cover Design


They say "don't judge a book by its cover," but I hope you like the cover that my publisher and I have come up with. I was pretty steadfast that Lean is about people and the cover should reflect that.

Some background: this is a photo that represents what a Lean improvement team might look like -- this could be from an inpatient unit, an O.R., an E.D., or any number of hospital departments. It looks like a team, don't you think? The MD's are part of a cross-functional team that includes nurses, techs, and others (represented by those in the scrubs). Many of the stock photos out there show an all-powerful MD standing, usually arms crossed, in front of their subservient support staff. To me, this photo represented "team" since they are all standing together, apparently working together.

It also helps illustrate that it's not an outside "expert" who is coming up with the ideas. There's certainly a role for consultants (conflict of interest: I'm a consultant), but the key is teaching people how to improve their own processes, teaching them how to identify and prioritize problems that need solving for the benefit of that patients, the staff, and the hospital. That's what my book is about. It's still due out July 23.

The cover design also reveals that the foreword for my book was written by J. Michael Rona, the former president of Virginia Mason Medical Center in Seattle, WA.

For more info, visit www.leanhospitalsbook.com (my "real" site design is still coming), where you can sign up for my newsletter with updates.

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Dr. Deming Video on YouTube

I always find it enlightening to see old videos of Dr. Deming. His commentary on the current state of business and management are just as relevant today, probably some 20 years after this video was made.



I'm sure everyone has just gone through their annual cycle of rewards, raises, recognition... things that Dr. Deming always railed against. His points about how annual review cycles stamp out intrinsic motivation and cooperation or teamwork are still just as relevant, right? Does anyone have tales or horror stories about those annual cycles?


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Thursday, March 20, 2008

Is your plant good enough for this?

by Jamie Flinchbaugh, Lean Learning Center

Assembly Magazine's 5th Annual Assembly Plant of the Year Award is looking for nominations. They are due April 16th. Is your organization ready? Think you measure up? This is a great test if you think you do.

The goal of the award is to identify and showcase a state-of-the-art manufacturing facility in the United States that has applied world-class processes to reduce production costs, increase productivity, shorten time to market, or improve product quality.

The previous four recipients of the award were:

  • Square D/Schneider Electric, Lexington, KY (2007)
  • Lear Corp., Montgomery, AL (2006)
  • Xerox Corp., Webster, NY (2005)
  • Kenworth Truck Co., Renton, WA (2004).

The award is open to all manufacturers—both large and small—in all industries. Facilities can use either low-volume manual assembly processes or high-speed automated equipment (or a mix of both). You can nominate through this form.

Good luck!

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Wednesday, March 19, 2008

Lean in Russia, Part 2

Here is the second part of my exchange with Slava Boltrukevich. He is the head of the Production Management Department at the Institute for Complex Strategic Studies, the leading publisher of Lean books in Russian (and the website is in Russian). Slava is also an assistant professor, teaching Lean in the Graduate School of Business Administration of Moscow State University

Mark: Is Lean a major factor in the Russian auto industry or factories? In which other industries?

Slava: As I have written in my previous message, lean has been widely used in the auto industry as well as in the metallurgy industry. The biggest domestic car producers are GAZ Group, AutoVAZ, and Severstal-Auto. GAZ was the pioneer in practicing lean, and they have a wide-spread use of lean techniques in almost all of their plants (over 20). AutoVAZ claims that they have built a new shop for producing their new model ("Kalina") according to the lean principles. Severstal is mostly an assembler of cars from foreign producers (Chinese) and they have good results from people involvement in continuous improvement.

Metallurgy companies have come to understanding that lean can help to improve productivity, which is very difficult in process industries. All of them, RUSAL, Nornikel, Severstal and others are working with major consultant companies to implement lean techniques in their work

My personal perspective on this is controversial. From one side , it seems that owners have no doubts that lean is the tool they have to practice. The evidence is the millions of dollars for consultants, continuous push of their managers, personal attention and gemba visits. From the other side, it seems that top-management don't "buy it" fully just because they "do not go for a long journey". It is a hard work with relatively no fast outcomes. So the success of lean implementation will depend on how top-managers will be committed to their business, and to lean approach.

BTW, a few days ago we have opened the first blog on production management in Russian www.leaninfo.ru. You may gave a link to it to your readers. It can be read with a Google Translator (link here).

Stay tuned for the 3rd and final part of our discussion.

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Skill Development Critical to Success

by Jamie Flinchbaugh, Lean Learning Center

Why do many of our best companies move to China or other countries? Some do it for the lower labor rates, but just as many move because they can't find skilled labor, engineers and other resources here in the U.S. This is a tragic reason. In today's politics there is an argument that the middle class is disappearing. This is not the fault of companies. It is the fault of all of us. We can't compete with low-wage countries on no-skill jobs, only skilled jobs. And on this front, we have drastically underinvested, as schools, individuals, companies and depending on your view, government as well.

Scotland faces many struggles as well (full disclosure, I'm part Scot). While by no means a cure-all, they are taking action. You might, and I might, disagree with some of the politics in how they are handling it, but the underlying point is vital.

Scotland to expand number of apprenticeships.

The BBC (3/18) reports that Scotland "is launching a bid to expand training opportunities for young people by delivering almost 30,000 modern apprenticeship places." According to the BBC, "The bill proposes to establish a right to undertake an apprenticeship for those aged between 16 and 18. ... The bill's consultation is being launched at the Carnegie College's school of engineering and technology in Fife." There the "the next generation of skilled workers" will be trained to "assemble the new Royal Navy aircraft carriers." John Park, a "skills spokesman," said that "[a]pprentice numbers in Scotland have increased significantly over the last 10 years." He added, "An apprenticeship gives you not just technical skills but core skills that will give you an edge in what will become in the future an increasingly competitive labor market."

If lean is to be about respect for people, it doesn't mean to keep people employed that don't have skills that you need. It means to develop people's skills and talents, and expect that they invest to the same end. Every manager, supervisor or executive should have a development plan for what they are doing to develop the skills and talents of those they are responsible for. This doesn't mean just filling out the corporate HR forms. This means engaging that individual and helping them through the process. And every individual should have their own self-improvement learning plan. I have mine. Do you have yours? Better yet, share some of your ideas here.

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Tuesday, March 18, 2008

Turn the Tables on Haier Management?

Chinese Refrigerator Maker Finds U.S. Chilly - WSJ.com:

Here's another case of where your bosses should NOT take manufacturing management practices from the WSJ. In an article about the Chinese refrigerator maker Haier and its founder, Zhang Ruimin:
"He developed a management system of strict discipline, with a strong emphasis on quality control. Workers in China who make mistakes must stand on a set of footprints outlined on the floor and publicly criticize themselves out loud, explaining why they erred and the lessons learned."
I think we should turn the tables and ask Mr. Zhang to stand on the metaphorical footprints of this blog... why would a quality "control" program like this likely do little to actually improve quality? Nobody is implying that Haier uses the Lean approach - it actually sounds very far from Lean.

Not surprisingly, this approach hasn't gone over well in their South Carolina factory:
But Haier's hierarchical culture has been a tough fit with U.S. workers. They rebelled against being forced to stand in the footprints when they made mistakes. Haier's Chinese management has tried to adjust to American tastes. Instead of humiliating bad workers, they now encourage the best ones to stand in the footprints for recognition.
When you click on the pictures for the article, you get some further explanation:
Since the plant oppened in 2000, the American workers rebelled against the "big shoe" footprints, and even rejected Haier's plan to force the best -- not the worst -- workers to stand in the footprints.
That's just silly, either way. You don't humiliate and shame people into better quality. Making them stand there as "recognition" doesn't seem to serve much of a purpose, either.

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Lean Success at a Blood Bank

Carter streamlines production - Fort Worth Business Press

I had a chance, last year, to take some local hospital clients to Carter to see their blood processing operations. So, it's nice to see them recognized for their Lean efforts. It can take a lot to get past the "we're different" hurdle.
Now, the manufacturing area contains four pods, or work stations. Small batches are made at each station, and depending how many products are moving through depends how many of the pods are up and running at any given time.
I saw these "pods" -- they're basically U-shaped cellular processing areas. They reduced batching, which of course reduces throughput time and helps preserve the freshness of the blood.

As with other good implementations, it's ultimately not about "doing Lean," it's about improving service and quality.
With a streamlined operation, Graham believes Carter will be better able to handle a crisis situation.

There are other new demands on the blood center. The growing population of the Metroplex area, new Carter clients like hospitals and the need for more blood products by patients that live longer have all contributed to increasing demands on centers like Carter BloodCare.

It also sounds like they went about it the right way - involving the front-line employees and committing to not laying off people as a result of efficiency improvements.

Michelle Stefan, chief administrative officer for the blood center, said that it was important to find a way to bring employees into the process of planning for change. Also, the company made it a priority not to cut any employees during the process.

“They’re the experts, they’re the ones making the changes,” Stefan said.

Their consultant described a scenario that should be familiar to manufacturing folks:

About 95 percent of process lead time, from start to finish, is non-value added. It’s stuff that the customer is not really worried about,” Reddic said, explaining that these are things that don’t effect the final product.

Many factories, before Lean, have 98% or more of their time as delay or waste.

It sounds like, as it did during my visit, that the culture of kaizen (or "continuous improvement") is taking root:

Carter will also continuously be looking for new ways to make things more efficient, Stefan said, and even as something as simple as putting frequently called hospitals on a phone’s speed-dial list can make an impact, she said.

“Now they’re thinking about it all the time,” Stefan said of employees. “I’ll be standing in line at the grocery store and wonder, ‘Why don’t they put this here? Why don’t they move that there?’”

Yes, it's hard to turn off your "Lean mind" once it's started developing!

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Monday, March 17, 2008

A Podcast with Jamie Flinchbaugh

No, not my podcast (but I'm hoping to do another episode with Jamie soon).

This podcast is the first in a seriesdeveloped by Bosch Rexroth’s Linear Motion and Assembly Technologies group, each eight- to ten-minute lean manufacturing podcast episode will present guest experts and information to help manufacturers and OEMs understand and apply lean principles and practices in their businesses.

The first episode, with Jamie, can be found here. In the episode, called
“Developing Front-line Supervisors to Succeed in a Lean Environment:"
Flinchbaugh examines the critical role front-line supervisors play in helping their companies successfully implement and sustain lean manufacturing practices. He also discusses guidelines for ensuring that supervisors are effectively trained and supported to fulfill their roles in lean operations. All too often, he says, front-line supervisors who are expected to perform in a lean environment are not equipped with the specific skills they need compared to those used by traditional supervisors.

Check it out. A lot of what Jamie says would also apply to hospitals. I like the phrase "taking super workers and making them supervisors." We can all do a better job of training new managers and supervisors about how to be leaders, with Lean or without.

Update: If you have iTunes, you can get to the podcast series via this link.


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Sunday, March 16, 2008

"Lean Hospitals" Book Update

Lean Hospitals Book

A few quick updates on my book, Lean Hospitals: Improving Quality, Patient Safety, and Employee Satisfaction. It is still due out July 23, 2008.

If you want to sign up for my email newsletter about the book, there's now a sign up box in the left column of this page and on www.leanhospitalsbook.com. I have a "real" design in progress for that site, planning for a launch in late April.

I have updated my LeanBoard Message Board to have some sections specific to Lean in hospitals and my book. The old discussion sections are still there. I'm going to expand the board to include areas for each chapter/topic in my book.

For those who are interested in the process. The book is currently going through copy editing and we are looking at cover design options. I'll share the cover design when it is public.

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Non-Value Added, but Fun!

Completely non-value added and not "boss approved" (that means do this from home)... it's the LeanBlog tourney contest.

Winner gets a copy of the Lean Enterprise Institute book "Reflections on Lean." Good luck!

Click here to enter my Yahoo! Sports bracket (password is kaizen). Group # is 79681.

On a sad trivia note, my alma mater (Northwestern) is the only of the "power conference" schools that has NEVER been in the NCAA men's basketball tourney.


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A Virtual Japan Lean Tour

I know a lot of you also read Ron Pereira's Lean Six Sigma Academy blog, but I wanted to make sure you see his outstanding series of posts about his trip (led by our friends at Gemba Research).

I'm sure there is more to come. Thanks for sharing your trip with us, Ron! We're planning on doing a podcast together to talk about his trip.

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Dallas Lean Networking

Some of you might remember me advertising a "Lean Lunch" gathering here in the Dallas area. Well, we had that yesterday, with some great discussion and networking about Lean. We had four different industries represented, but it goes to show how much similarity there is in Lean issues and challenges, we had some really good discussion.

A question came up about the annual Shingo Prize conference that's being held here in Dallas the week of March 31. I'm, unfortunately, going to be out of town -- it's the one week in a long while where I actually have to travel (since I've had a local client project). I wish I could be here, especially considering a bunch of Lean Blog readers are coming, I'd suppose.

I'm also disappointed that I'll miss out on the chance to see Gwendolyn Galsworth present, you might remember her podcast here. I think we're going to do another one soon.


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Saturday, March 15, 2008

The Waste of Handwritten Notes

Nurse + Blog = PixelRN: 16% of the US economy runs on scrawly, handwritten notes.

PixelRN is a blog written by a nurse (who is unfortunately considering leaving the field). She writes about the problems involved with handwritten orders, charts, and notes that are used in so many hospitals. This is particularly a problem in hospitals without "electronic medical records" (computer systems that can be helpful, but they're also not the cure-all that vendors would claim -- more on that later in this post).

Charting and records -- that's an example of how quality and efficiency go together. EMR can be faster (but not always) and it can also help prevent errors or miscommunications. PixelRN writes:

I made a mistake yesterday. I didn’t just miss one order. I missed A WHOLE PAGE OF ORDERS.

Why? Because the doctor wrote them on a separate page and stuffed them into the side pocket of the binder, rather than putting them in the proper place.

Here's a process error that could really impact that patient's care. Part way to a root cause, we could ask "why didn't the MD put the orders in the right place?" The RN probably just gets blamed for not finding them (and blamed for not reading the MD's mind). If we put an electronic system in, we still have to rely on people using it properly (assuming they're trained and they understand the implications of not following the standardized work). PixelRN again:

Fortunately no one was harmed, although the patient did have to stay in the recovery room for an additional hour because I didn’t see the order.

This was my mistake and believe me, I owned up to it. I apologized to the patient for creating this delay and I apologized to the attending for missing his order, but I know that this mistake could have been avoided if the recovery room used a computerized ordering system.

Or if the MD had properly utilized the paper chart binder. Why is the RN apologizing?

She writes further:

And yet there is such a lack of standardization in the way that doctors write their orders, so it can be difficult to carry them out. Do the recovery room nurses care about this? The answer appears to be no. Whenever I ask the nurses about this situation their reply is this, “Oh we’ve been fighting this battle for years. Nothing ever changes.”

How do you get beyond that kind of apathy?

It requires Leadership! This isn't something that Lean can solve if there's not leadership and a drive to fix problems like this. It's so sad to hear about the frustration (and to see it first hand)

I've seen cases where a hospital HAD the electronic systems and they were used inconsistently. Some MD's refuse to use the Computerized Physician Order Entry Systems (CPOE). The electronic charting systems are often slow and glitchy, leading nurses to workaround the problem by writing down and carrying lots of paper notes around. So what was really solved?

I'd argue that hospitals need to focus on "process" as much as (if not more than) technology. Don't expect technology to be a cure-all, because it's not.

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Friday, March 14, 2008

Lean *is* About Quality, Folks

Time for a low-carb Lean Six Sigma?:

Stuff like this irritates me to no end:
"Lean Manufacturing has us analyzing process flow and delay times at each activity within a process. And while Lean Manufacturing principles help speed things up, they don't really focus on quality control. Think of it as 'improving process speed.'"
It's a huge pet peeve of mine when people create the dichotomy that "Lean is about speed and Six Sigma is about quality." Hogwash.

Lean and the Toyota Production System are primarily quality-focused systems. Lean and TPS are focused on the waste of defects and rework and the methodology gives approaches for preventing errors and improving quality (poka yoke).

The "Toyota House" diagram's two pillars are Just-In-Time (flow and speed) and Jidoka (quality at the source). The two ideas are connected -- improving flow (in itself) ends up improving quality and improving quality improves flow.

If you hear someone say "Lean isn't about quality," it's tempting to tune them out as they don't know what they're talking about. Have some people implemented something they called "lean" in an environment that didn't care about quailty? Sure -- but that's not an indictment of the Toyota Production System.

The author I linked to DOES make some good points on a related topic about how you can't just rely on measurements. Deming made this point, that sometimes the important things CANNOT be measured (as opposed to the common misquoting of Deming supposedly saying "You can't manage what you can't measure." It's a good point that I don't often see made... but I almost quit reading when I read the false statement that unfairly characterized Lean.

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Thursday, March 13, 2008

A Lean Nursing Example in New Zealand

Hospital's shake-up gives nurses more time

Here's a nice news article about the use of Lean in a hospital in New Zealand (hat tip to Michael for sending it to me).
Middlemore Hospital is the first in the country to implement the "Releasing Time to Care" scheme, which works with nurses to improve the efficiency of their daily duties.
That's a great title for a program. Although they clearly state they are implementing Lean concepts, the primary goal is never "implementing Lean" - the goal is better patient care and this is often done by reducing waste for the nurses and staff, allowing them to spend more time on patient care.

Middlemore gets it -- they aren't using Lean to drive layoffs:
Despite the amount of time freed up for nurses, no redundancies would follow, general manager for quality improvement Allan Cumming said.
There are so many good anecdotes and examples in the article, I won't try quoting them all -- check out the article. This one point jumped out at me though:
Mr Cumming said nurses generally spent about 33 per cent of their time with patients. That figure was expected to double as the scheme was introduced.
That 33% number jumps out since I also saw that number cited in an article about Virginia Mason Medical Center in Seattle - their nurses were also only spending about 30-33% of their time with patients. I've also observed and calculated that exact same number when I've worked with nurses in an inpatient unit.

The remainder of that time is spent on some activities that are "value adding" without the direct patient contact (such as charting) and a lot of activity that is clearly non-value-added, such as searching for missing medications (medications that shouldn't be missing if a better process were in place).

From Middlemore:

* A ward which used to have only two thermometers to share between nurses has switched to disposable thermometers. They cost less and can be stored at each bedside, saving a substantial amount of time each day.

* Storage areas have been cleaned out and reorganised to the nurses' specifications, meaning a search for supplies takes seconds, not minutes
This is really encouraging. I hope we start seeing more examples of Lean concepts helping nurses and helping patients.

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Wednesday, March 12, 2008

Learning from Restaurants

Cutback Cuisine - WSJ.com:

If you're a regular reader, you know I like to try to draw from non-traditional sources and industries. This article from WSJ caught my eye and made me think of some Lean concepts.

As in many businesses, restaurants are caught in a double pinch right now. Raw material costs (food) are going up and the sluggish U.S. economy is dampening demand, especially for some moderately-high to high priced restaurants.
"Price increases are across the board; the commodities have just gone crazy," says Brett Reichler, a corporate executive chef of B.R. Guest Restaurants, owner of the Blue Water Grill. "Flour is up 30, 40%. Beef's on the rise, fish is on the rise. Nothing is inexpensive any more."
Some restaurants are going the route of many manufacturing companies -- trying to "pass along" the costs as if it's an entitlement. This is no more true for food than it is for automobiles. Just because the price of steel goes up, that doesn't mean you can automatically increase the price you charge for cars. The prices are all driven by supply and demand, as is true in any industry that's totally warped by regulation or monopoly power.

The WSJ article focuses, however, on the restaurants that are taking action instead of just complaining or trying to raise prices. Some restaurants are looking at what menu prices customers are willing to pay and they are "engineering" the food and ingredients to hit a profitable cost in comparison to that menu price.

This is reminiscent of the Toyota practice of "value engineering" where products are designed to hit a cost that allows profitability given a market-driven price. This is different than the old "cost plus" mentality where manufacturers try to "tack on" a profit margin on top of designed or incurred costs.

Some examples from the article (which make me drool because a weakness of mine is nice restaurants):

Restaurants have long engineered menus to allow the bigger profits from pastas and vegetable side orders to subsidize such loss leaders as rib-eye steaks. But rising prices have prompted a furious new round of behind-the-scenes shuffling. San Francisco's Slanted Door is known for its rack of lamb. On many days, chef and owner Charles Phan offers a more-profitable lamb sirloin stir-fry instead, shaving his food costs by a third. It is a temporary fix that draws some complaints. "Everyone wants that rack," he says.

At Le Cirque in New York, diners can choose from four pasta dishes, up from two a year ago. "Pasta's a great item for reducing food costs," says co-owner Mauro Maccioni. He estimates that he is paying 5% more for the food his restaurant prepares, including big increases for truffles and butter. He touts as good values his new pasta dishes, which include a chestnut-flour pappardelle with wild mushrooms and a veal ragu.

In the case of the Slanted Door, I guess you could argue that the chef is not meeting customer demand (for racks of lamb). He has to weigh the trade-offs of profitability and the risk of driving away a loyal customer who might be upset.

They talk about some menu items subsidizing others. We can also see this at fast food restaurants. Do you think the price of a burger and the soda are driven by true costs? Of course not, they charge what the market bears. Sandwiches are often cheaper (compared to their costs), but they make up for it by charging a relatively huge markup on a beverage.

Chefs are also getting more creative in making full use of their food and ingredient purchases, to reduce waste:
Some chefs, such as Raphael Lunetta of JiRaffe in Santa Monica, are yanking pricey entrees from the menu to promote as daily specials. He says a good pitch by waiters for the roasted rabbit with herb polenta gnocchi, for example, helps sell more of the dish and reduces leftovers.

Another strategy is to offer less of an expensive meat and add a cheaper cut. Diners who order "Roasted Pekin Duck" at the Powerhouse Restaurant and Bar in Chicago get a half-breast and a duck confit instead of a whole duck breast. The substitution cuts costs nearly in half by allowing the restaurant to buy entire birds instead of individual duck breasts. "You're not paying for processing," says managing partner Mitchell Schmieding.
Anyway, I hope you have access to the full article, it's definitely worth reading. As you do, think through the possible parallels to your business. Can you learn something from your local fast-food joint or a snooty French chef?

One chef sums it up:
Skilled chefs, says Mr. Chang, transform whatever comes their way. "If you need to make real food out of nothing, that's real cooking," he says. Echoing a culinary maxim, he adds: "It's easy to cook a sirloin. It's harder to cook with potato scraps."
Not much whining there -- just good business.

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Tuesday, March 11, 2008

A Virtual Toy Drive for Children's Hospitals

I am currently doing some Lean coaching and implementation work in the radiology department of a large children's hospital. One thing I have discovered is that kids often have to lay in an MRI machine for long periods of time. Those who do not have to be sedated to hold still are given an opportunity to watch a DVD to help pass the time and to keep their mind off of their sickness.

There are also many waiting rooms where DVDs are used to help keep kids and siblings entertained (although that's one aspect of the experience we are working on reducing -- that waiting time).

I don't ask much of my blog readers -- but if you're looking for an opportunity to make a donation, please consider your local children's hospital. You can either buy new DVD's or new toys of all sorts. Different hospitals list their own policies on new versus used and the types of items they recommend donating (for example, stuffed toys are often not preferred because of cleanliness issues).

I'm listing some links to different hospitals around the country. You can use the comments feature if you'd like to publicly pledge (even anonymously) to the effort. If you're a blogger, please link to this page or feel free to copy my efforts here. If you set up your own page, please let me know so I can link to you and report on your efforts.

There's nothing like being in a children's hospital for helping one realize how lucky you are and how inconsequential other problems might seem.

List of Children's Hospital donation pages (feel free to add more in the comments)


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Monday, March 10, 2008

Reader Question: Model Lines

I received a question from a reader that was also addressed on the Daily Kaizen blog and Gemba Panta Rei. This question is from a hospital setting, but I think it's a good general Lean question:
One our our struggles has been defining the best process for implementing lean. We are establishing a model line in food services and are looking to begin spreading to other departments. Our model line is still in a very early stage of development and we have only 2 engineers to support the hospital. Our focus has been to begin with a lean management system as a starting point. Some of the questions we have are:
  • How far to we take the model line before moving out?
  • How much training should we do beforehand?
  • If we start with the lean management, how developed does this need to be before it is self sustaining?
  • What should our implementation process look like?
  • And the inevitable question of how much is too much change? (rhetorical)
After initial cop out ("give me more time to think about this... there are no easy answers"), here is what I wrote:

A quick answer (and maybe this will seem evasive) is to go through the PDCA process. Seems like you can pull back? Try it and see if the processes are being sustained. If not, jump back in, identify the root cause of the failure (lack of training, lack of time -- not really an excuse really -- misaligned incentives, etc). I'd make sure the burden of sustaining is NOT on the internal consultants. It needs to be on the shoulders of the leadership chain.

If a VP is not making sure a director's organization is sustaining, you need to coach both the director and the VP. The internal consultants can only coach and advise. That's not an excuse for the consultants to not care about the results, but the burden can't be on them, its not fair and its a workaround if the consultant makes it work for them.

If the consultant is involved daily, pull back gradually and see what happens (communicating this plan and making sure requirements of the line leaders is clear).

You will learn eventually, for your organization and your culture, what normally works. But each dept may be different.

I can usually tell early on which managers will actually sustain. If someone blows off the responsibilities of a lean manager by saying "Oh, I'm a hand's off manager" and they won't change... You might need to replace them. Managers can't always turn around.

I know I didn't touch on every aspect of his question. The reader wrote back and said it was a good answer, and that, basically, it's hard to fight the temptation to look for "best practices" instead of going through the learning journey.

What would you add?

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LeanBlog Podcast #38 - Bob Emiliani, "Practical Lean Leadership"

Here is LeanBlog Podcast #38, our guest today is Bob Emiliani of the Center for Lean Business Management and, most recently, the author of Practical Lean Leadership: A Strategic Leadership Guide For Executives. It's a workbook-style guide that forces you to think through your own leadership approach and your own situation, a book I enjoyed very much. In this podcast, we talk about "lean leadership," "value added behaviors," and some pitfalls to avoid in lean implementations.

For earlier episodes, visit the main Podcast page, which includes information on how to subscribe via RSS or via Apple iTunes.

You can use the player (use the VCR-type controls) below to listen to a "streaming" version of the podcast (or click here for the streaming audio and RSS subscription). The streaming link is faster for one-time listening (hardly any delay to start listening). Or you can use the download link to put it on your iPod or other MP3 player.



MP3 File Right-Click to "Save As"


LeanBlog Podcast #38 Key Points & Key Words

  • How Bob first got involved with Lean and, especially, the leadership component.
  • What's different about this new Lean book?
  • What are some examples of "non-value-added" management activities or behaviors?
  • A definition of kaizen that emphasizes that kaizen cannot be sub-optimizing, you must look at the whole
  • Some errors to avoid in Lean implementation, avoiding "fake Lean"
    • If you have feedback on the podcast, or any questions for me or my guests, you can email me at leanpodcast@gmail.com or you can call and leave a voicemail by calling the "Lean Line" at (817) 776-LEAN (817-776-5326) or contact me via Skype id "mgraban". Please give your location and your first name. Any comments (email or voicemail) might be used in follow ups to the podcast.


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      Saturday, March 08, 2008

      Clearing Out the LeanBlog Backlog

      Sometimes, I have a collection of news stories or links that I either don't have time to blog about, assume you don't have time to read about, or don't really merit a full blog post. So my "WIP" of "draft" posts or links I've set aside grows.

      I'll try to do this more often -- clearing out the backlog. What do you think of this type of post? Better to do a post like this on Mondays? Fridays? Saturday?
      Who can say "LeanBlog backlog" ten times fast?

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      Friday, March 07, 2008

      K-12 Lean

      by Jamie Flinchbaugh, Lean Learning Center


      Lean is very prevalent in manufacturing because manufacturing needs so much help. Jobs are being lost and profits and struggling, and so lean is one lever people try to pull to salvage the situation. Now that the healthcare industry is in so much trouble, they are running to lean in droves to try to improve both the quality of care and the financial situation. But our K-12 education system is equally broken. Students are not getting what they need, teachers are perhaps the most underpaid profession around and the costs continue to rise. But lean hasn't begun to touch this space.


      There are many reasons for this. One is that the work is very distributed. Teachers can come in, do their curriculum and go home and can get by without coordinated action. Adminstrations are focused on fighting for funds and looking to new areas and ultimating, making tough decisions about what programs to cut. Politicians are busy playing God thinking that with different federal funding scenarios they will magically solve the problems. But here we have what is ultimately our most vital industry - education - and lean can make a difference.

      I don't know how it's going to get traction but I write this with an item to share and a recommendation. The Pawley Institute at Oakland University, where I chair the board of advisors, has started exactly this effort with lean for schools. They just had their first workshop. Check it out here. Dr. Shannon Flumerfelt is leading the effort. If you think this is worth supporting, we're always trying to raise more funds to support the Pawley Institute.

      My request is this: get involved. Share what you know with a teacher or administrator. If you're in a company, open up your education programs to schools. Or go a step further and run for school board. Lean was brought into healthcare primarly by lean manufacturing folks, like LeanBlog.org founder Mark Graban, bringing it to healthcare. Perhaps lean can follow the same path into our schools.

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      John Boyd, Lean Fighter Pilot Part II

      By: Andy Wagner

      Harry Hillaker--Father of the F-16

      Toyota's Value Innovation: The Art of Tension

      Mark has written before about "Everyday Lean", those little examples of error-proofing or kanban or flow that we see in our day-to-day lives. In a similar vein, one of my enduring lean fascinations is all the places where lean thinking exists in big ways without people having called it "lean" or associated it with the Toyota Production System. As I said in Part I of this post, the work of Colonel John Boyd is a great example of this kind of undercover lean thinking.

      I first learned about lean as a design engineer, coming from the engineering side of the enterprise, rather than manufacturing. The idea of designing a product, especially a major system, like an automobile or airplane, based on optimizing what the customer values most and eliminating what the customer considers waste has always appealed to me. (Hence my vocal support for Boeing's 787-- the supply chain might be the embodiment of muda, but the product was designed for the customers).

      Before John Boyd presented his famous OODA loop, he developed the even more famous F-16 fighter, and the design approach would have made Toyota's chief engineers proud. In the 1950s and 60s, American fighter aircraft were designed with two things in mind: speed and technology. Each generation went faster than the last, and each generation added move gadgets and gizmos. Folks who have seen the movie know part of the story of Top Gun. In Vietnam our heavy, technology-laden F-4 Phantom went to battle carrying the best missile system money could buy, but no gun. At 42,000-lbs, the Phantom was being out turned and out maneuvered by the fleet 17,000-lb MiG-19 and our Sparrow missiles weren't getting the job done. The Korean War US kill ratio of 10:1 dropped to 3:1 and even 1:1 during Vietnam.

      Boyd's team, known as the Fighter Mafia, set about designing a ”Lightweight Fighter” to prove that there was a different way to design an airplane. Boyd's research into what he called "Energy-Maneuver Theory", and the MiG-19 experience showed that agility was more important than speed and technology had to be applied in the right way to the right problems. Reading the way that Harry Hillaker, chief engineer for General Dynamics at the time, tells the story, you'd think he were talking about Toyota:

      The real issue isn't technology versus no technology. It is how to apply technology. For example, the F-15 represents a brute-force approach to technology. If you want higher speeds, add bigger engines. If you want longer range, make the airplane bigger to increase the fuel capacity… Our design was a finesse approach. If we wanted to fly faster, we made the drag lower by reducing size and adjusting the configuration itself. If we wanted greater range, we made the plane more efficient, more compact.
      In The Toyota Way, Jeff Liker called this Toyota's "No Compromises" approach to optimum product design. This approach is about finding a handful of key factors that matter most to the customer, and setting high, often contradictory goals, based on what matters most. Matthew May at Elegant Solutions described the Lexus development this way in his recent post on The Art of Tension:
      Greater speed and acceleration conflicted directly with fuel efficiency, noise and weight, because higher speed and acceleration required a more powerful engine, which in turn is bigger and heavier, thus making more noise and consuming more fuel.
      Lexus used concurrent methods to get the lowest coefficient of drag in the industry. That critical factor gave them speed, acceleration, fuel efficiency as well as noise reduction. They found what mattered most to the customer and optimized it. Much like the F-16 team, as Hillaker explains:
      Range was associated with fuel capacity...People tend to focus on one part of a given parameter…The typical approach to increase range is to simply increase fuel capacity. But increasing fuel capacity increases volume, which means more weight and more drag. People think that big is better. It's not. With the lightweight fighter, we wanted to achieve our ends through different means. We increased range by reducing size.

      How many times do we use the “brute-force approach to technology” rather than the “finesse approach”? Let’s face it. Brute-force is easier. The Toyota Way is tough because it teaches us to ask hard questions about what we’re trying to achieve and how best to achieve it. It teaches us to resist the siren song of technology. The first solution that comes to mind is never the right one. The right solution comes from iterating, questioning our assumptions, and in short, continuously improving. It doesn't much matter what you call it, or where you happen to find somebody doing it.

      John Boyd and his Fighter Mafia took this lesson to heart and produced the most revolutionary jet fighter the world had seen. They optimized around actual customer needs, rather than industry trends, to create a product that any Toyota chief engineer would be proud of. In my mind, that's as lean as any Camry.

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      Thursday, March 06, 2008

      A Silly Example of Mandates and Threats Not Working

      Cemetery full, mayor tells locals not to die - Yahoo! News

      Maybe this mayor has consumed too much Bordeaux wine. But this story is a wonderfully comical illustration of how ineffective management mandates, targets, quotas, and the fear of punishment can actually be.
      The mayor of a village in southwest France has threatened residents with severe punishment if they die, because there is no room left in the overcrowded cemetery to bury them.

      In an ordinance posted in the council offices, Mayor Gerard Lalanne told the 260 residents of the village of Sarpourenx that "all persons not having a plot in the cemetery and wishing to be buried in Sarpourenx are forbidden from dying in the parish."

      It added: "Offenders will be severely punished."
      I doubt they attempted a "5 Whys" exercise that went like this (imagine an Inspector Clouseau accent -- the Peter Sellers one, not the lame Steve Martin one):
      1. Why is zee cemetery full?
      2. Because people are dying!!
      Eh, sounds like zee root cause to me. Hmm.... let's drink more wine!!

      Talk about NOT getting to a solvable root cause of the problem!!

      And for any of you who are laughing at this or the mayor, he proactively responded:
      "It may be a laughing matter for some, but not for me," he said.
      Are any of our managers trying to manage the same way? Through mandates and threats? In the name of improving quality? Preventing errors or safety incidents?" Mandates, fear, and threats just lead to people hiding problems or being really creative in making things look good (rather than making real improvements). Have any examples to share?

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      Congratulations on 50 Years

      by Jamie Flinchbaugh, Lean Learning Center:

      This particular post is about as overdue as my contributions to LeanBlog, but it's always better to be late than never. Given how far industry has come, and in the spirit of how far we have to go, I thought it appropriate to acknowledge and congratulate Assembly Magazine on 50 years in print. That's an accomplishment for any business and perhaps particularly a magazine. As many of you know, I contribute a column called Leading Lean to the magazine each month and continue to be blessed by its popularity. Assembly Magazine has contributed to the knowledge and conversation around lean and progress in many forms.

      A very nice feature that sums this up is a 50 year history of assembly ranging from company mergers to the advent of certain technologies. Friend Austin Weber wrote 50 Years of Economic Change and Manufacturing Progress which I encourage you to read. And I hope Assembly Magazine can contribute another 50 years.

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      Wednesday, March 05, 2008

      PDCA at the TSA?

      ABC News: Airport Security To Be Easier for Families?

      I am probably giving the Transportation Security Agency waaaaaay too much credit here, but this story made me think of the "PDCA" cycle of "Plan Do Check Act" (known as the Shewhart cycle or the Deming cycle).
      The Transportation Security Administration is experimenting with checkpoint lanes designed for families to ease the pressure on parents struggling through an airport with young children.

      In one of the first efforts to ease airport security for infrequent travelers, "family" lanes are being tested at the Denver and Salt Lake City airports alongside "expert" lanes for travelers who know every nuance of security screening and lanes for "casual" travelers.
      The emphasis on "experimenting" is mine. That's what PDCA is all about -- a small-scale experiment to see if an idea works or not. We often do that in the Lean approach, where someone has a theory (hopefully somewhat thought out) that making a change will improve a system. Supervisors might probe and ask why that idea is a good one or the best alternative. More often than not, we want people to make at least a small-scale trial with an idea, such as this TSA policy.

      The article continues:
      Segregated lanes could open around the country if the tests show the concept speeds up security lines.
      That's the key -- spread the concept ("Act") if tests show ("Check") that the implemented concept ("Do") works well. If not, kill the program (another form of "Act") and try something new.

      I've self-segregated myself in airport lines for a long time. Given a choice, I'd alway prefer to get behind an "expert traveler" instead of a family juggling a few kids and all of their stuff.

      The concept is criticized in the article by someone with a somewhat undisclosed conflict of interest. Oh well, bad reporting. Of course the guy who wants to SELL expedited security passes to frequent travelers doesn't want the TSA to improve flow -- that lessens demand for his product.

      So this policy seems OK to me -- if it's proven to work. But, then again, I don't have kids. How do those of you with kids feel about the policy?

      Either way, maybe you can use this as an example of PDCA when you're talking about it in your workplace. My headline would have been better if I had called it "PDSA at the TSA" (Plan Do Study Act, an alternative way of saying the same concept).

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      Lean in Russia, Part 1

      Thanks to the global reach of the internet, I have a new correspondent for the Lean Blog in Russia. We have exchanged some emails and we now have a Q&A series that I will post here.

      My correspondent is Slava Boltrukevich. He is the head of the Production Management Department at the Institute for Complex Strategic Studies, the leading publisher of Lean books in Russian (and the website is in Russian). Slava is also an assistant professor, teaching Lean in the Graduate School of Business Administration of Moscow State University, the only Business school in Russia that has an MBA program with a focus on production management (MBA-Production Systems). He is also working to create the first Russian-language blog about Lean.

      Our first exchange:

      Mark: Is there any company who is credited with being the first lean standout in Russia? Any idea when Lean concepts started spreading there? Is Lean a major factor in the Russian auto industry or factories? In which other industries?

      Slava: Although it's hard to say who "brought" lean/TPS to Russia, I can say a few words on this subject. First of all, during the soviet times many factories in our country had very well developed quality systems. This was especailly inthose factories that were connected with the military. But let's turn to TPS.

      As far as I know, the company that "brought" TPS to our country, was a car manufacturer, GAZ. But as Sakichi Toyoda was the reason for TPS to appear (not Toyota overall), in our case that was Oleg Deripaska, the owner of the plant. This happened back in 2002. He translated the book "Toyota Production System" by Taiichi Ohno for internal use and this was the start of the wider spreading of TPS ideas in Russia. By the way, some time after that we have made an official Russian edition of the book.

      Right after that, Rusal (now the biggest aluminum producer in the world) started practicing TPS methods. And some other big manufacturers.

      Of course, there were some lean companies before 2002. One of the examples is Instrum Rand (a part of the Ingersoll Corp). By the end of the 1990's they have reached fantastic results and became the only Russian supplier of Mercedes-Benz. I am pretty sure there are more companies that pacticed lean before 2002. But, this point was the start of mass spreading of the TPS ideas in Russia.

      I can say that for now mostly only big production corporations are practicing TPS in their companies. This can be explained by two reasons:
      1. They have no choice as they are confronted with foreign competitors since they are global players;
      2. They have resources (for consultants, getting knowledge abroad).
      Auto makers (GAZ, Severstal, VAZ) and metal producers are leading on the list of the companies that practice TPS.

      -------------------------------

      Thanks to Slava for his input. Stay tuned for more Q&A in this series. Click on the "Russia" link below for the entire series of posts, as they are published.


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      Tuesday, March 04, 2008

      Deming on Education

      If there was any value to the Industry Week commentary that tried to link Deming and Obama, it was that it prompted me to re-read some of Deming's work, namely the "management of people" chapter from The New Economics.

      There's so much good stuff in there, including the 14 rules / guidelines for a manager of people to follow. You can read that online at google books (for free). There's so much that's re-stated, from Deming, in many of the more recent books about Toyota. You definitely see the Deming influence coming through. So it's sometimes interesting to go back and re-read earlier books.

      In the chapter, Deming rails against business schools, pointing out what they SHOULD teach, which is, of course, the opposite of what's taught. Deming says business schools should teach students about the "evils" of short-term thinking and the "evils" of the merit system and ranking people. There's also a somewhat bleak chart on page 122 that makes the case that schools and management systems do nothing but demoralize people throughout their lives until they die.

      Deming then, on page 145, rails against grading students and grading teachers or schools. Deming's argument is that grades (especially forced ranking and grading curves) rob students of their intrinsic motivation to learn (and probably robs teachers of their joy in teaching).

      Deming recommends:
      • Abolish grades (A, B, C, D) in school...
      • Abolish merit ratings for teachers
      • Abolish comparison of schools on the basis of scores
      • Abolish gold stars for athletics or for best costume
      He writes, "Our schools must preserve and nurture the yearning for learning that everyone is born with."

      In recent years, the trend has been toward "merit pay" for teachers and schools. Hogwash. Deming, the hypothetical presidential candidate, would undoubtedly be against the "No Child Left Behind Act" (but maybe for different reasons than Democrats).

      From the wikipedia page:
      NCLB is the latest federal legislation (another was Goals 2000) which enacts the theories of standards-based education reform, formerly known as outcome-based education, which is based on the belief that high expectations and setting of goals will result in success for all students
      High expectations and goals without a method? That's a recipe for failure and I assume Dr. Deming would have hated that. The focus is on measurement... but at the expense of learning? Given goals, people in any setting are clever about "gaming the numbers" (as the Wikipedia article points out) and educators are no different.

      I'm not a NCLB expert... reading more, I'm guessing Dr. Deming wouldn't disagree with the whole act. Making sure that teachers are well qualified is a good thing. All things considered, I guess that Dr. Deming would suggest "leadership" as a replacement for NCLB. What do you think?

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      John Boyd, Lean Fighter Pilot Part I

      By: Andy Wagner

      The OODA Loop & You

      I love examples of lean thinking that come from unexpected angles. Mike Gardner at the TPM Log recently brought up one of my favorite figures from the world of folks who embody lean without knowing it, the late US Air Force Colonel John R. Boyd. Boyd is most known for being the father of the F-15 and F-16 fighter aircraft, but the most likely connection to the lean world would be, as Mike points out, the similarity of his “OODA loop”, Observe-Orient-Decide-Act, to the Deming Cycle, Plan-Do-Check-Act:

      Colonel Boyd believed the OODA Loop process could be successfully applied beyond military applications and used to benefit any business organization. Gadfly management gurus such as Tom Peters have thrown the OODA acronym onto Power Point slides and stated that "whoever has the fastest OODA Loops wins!" and "Ready. Fire. Aim!"
      Mike raises some great questions regarding how the two similar cycles relate to on another:

      I have some problems with that. To begin with, business is not the military and business competition is not the same as military competition. Concepts such as the Deming Cycle of Plan-Do-Check-Act encourage a bias for action, but emphasize taking the correct action rather than the fastest.

      In a sense, PDCA is actually two consecutive OODA loops, compressed together. Plan encompasses the first “observe-orient” phases. Do represents an experimental “decide-act.” Check is the second “observe-orient”, taking into account the results of the experiment. Act reflects a second decision and consequent action. While the Deming Cycle lends itself to a process engineer experimenting and developing a change, it doesn’t fit the kind of decisions and reactions that line workers have to make on-the-fly while the line is moving.

      Far from advocating, “Ready, fire, aim”, Boyd advocated simplifying decision making processes by removing waste from them. One concept, embraced by the US Marines in particular, is the idea of Commander’s Intent, essentially decentralization of decision-making. Rather than giving explicit, detailed orders, commander’s train their men in a standardized way, with a common philosophy, and give them orders in the form of what they intend to accomplish and why. It’s left to each subordinate to determine the specifics for their unique situation.

      Think about an andon cord. A line worker observes his surroundings and his immediate problem, including the takt time remaining. He orients himself based on his training, his understanding of standard work and why the job is done in a certain way. He decides how to act—fix the problem himself or get help, and then he acts. He can pull the cord if he has to, but he can also fix the problem himself.

      At the next opportunity, he begins another loop, this time, informed by the experience of the first decision during his “orient” phase. Perhaps he barely had time to fix the problem and he knows he’s running behind the takt time. If he sees the same thing again, he’ll know it’s time for a root-cause fix and pull the cord. Lean training methods and respect for people mean that each person on the line has the ability and authority to make their own decisions without being forced to involve a supervisor. This shortens the decision cycle and allows the whole facility to solve problems faster.

      In Part Two of John Boyd, Lean Fighter Pilot, I’ll write about Matt May’s recent post at Elegant Solutions on the Art of Tension and how John Boyd accomplished the same type of systems engineering in the design of the F-16 fighter, one of the world’s most successful and capable combat aircraft. Click here for Part II.

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      Monday, March 03, 2008

      Joseph Juran 1904 - 2008

      Joseph Juran, 103, Pioneer in Quality Control, Dies - New York Times

      I haven't run the numbers, but it's probably fair to say that Juran's lifespan was far beyond +3 standard deviations beyond the mean. His impact and influence on the business world, quality, Lean, and Six Sigma was certainly well off the positive end of the bell curve.

      It sounds like he never retired since he found so much joy in his work. Juran (to the left in the picture with Dr. Deming) is survived by a wife of 81 years, also living far beyond the mean. The NY Times obituary and the wikipedia page tells the story of a pretty amazing life. Rest in peace.

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      Ohio Manufacturing Jobs & Presidential Politics

      Politics | NAFTA bashing popular, but is it justified? | Seattle Times Newspaper

      Google News Search

      At the risk of stirring an unmanageable political debate (please keep the discussion in line with the "respect for people" principle and avoid name calling), it's interesting to hear so much about manufacturing jobs in Ohio. I was born in Dayton and I still have a lot of family in the Youngstown area. As a kid, we drove past the empty shells of closed steel mills as we went to my grandparents' house and that left quite an impression.

      So Ohio has been losing industrial and manufacturing jobs since well before NAFTA. NAFTA is being blamed today, particularly by Obama and Clinton, as the main culprit for recent job losses to Mexico or overseas. I'm excluding McCain and the Republicans from the discussion since the primary race is over and the news coverage is dominated by the Democratic side of things.

      I'm not an expert on any of this, so my questions, especially for readers in Ohio:
      • What has led to more job loss -- NAFTA or business mismanagement (including faulty business cases for moving factories or traditional "mass production" approaches)?

      • What, if anything, would lead to manufacturing jobs returning to Ohio -- repealing or changing NAFTA or more aggressively adopting Lean and newer management approaches?

      What do you think? Click "comments" to chime in. If you are going to link to news articles or websites, please use HTML formatting rather than just pasting in a URL. If you need help with that, visit this page for a tutorial.


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      LeanBlog Podcast #37 - Jeff Liker, Toyota Culture, Part 1 of 3

      Here is LeanBlog Podcast #37, once again featuring Dr. Jeffrey Liker, Professor of Industrial and Operations Engineering at the University of Michigan. Dr. Liker is most recently the co-author (with Michael Hoseus) of Toyota Culture: The Heart and Soul of the Toyota Way and many other books, which can be found here on amazon.com. This is part 1 of what will be a 3-part podcast series, so be sure to check back.

      For earlier episodes, visit the main Podcast page, which includes information on how to subscribe via RSS or via Apple iTunes.

      You can use the player (use the VCR-type controls) below to listen to a "streaming" version of the podcast (or click here for the streaming audio and RSS subscription). The streaming link is faster for one-time listening (hardly any delay to start listening). Or you can use the download link to put it on your iPod or other MP3 player.




      MP3 File Right-Click to "Save As"


      LeanBlog Podcast #37 Key Points

      • Overview of the book, how it builds on the previous books.
      • The people part is such a foundation of the Toyota Way, had to expand upon it.
      • Looking at the cultural assumptions in the 14 principles.
      • In the book, seeing a "day in the life" of a Toyota supervisor.
      • Get a clearer picture of the "respect for people" principle throughout the book
      • Thoughts on implementing Lean the "wrong way."

      If you have feedback on the podcast, or any questions for me or my guests, you can email me at leanpodcast@gmail.com or you can call and leave a voicemail by calling the "Lean Line" at (817) 776-LEAN (817-776-5326) or contact me via Skype id "mgraban". Please give your location and your first name. Any comments (email or voicemail) might be used in follow ups to the podcast.



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      Sunday, March 02, 2008

      "Patient Safety Week" Starts Today

      Patient Safety Focus Blog

      Patient Safety Awareness Week Site

      Today is the start of the annual "Patient Safety Awareness Week" in hospital world, running March 2 to March 8.

      I have mixed feelings about this. Not mixed feelings about "patient safety." That's obviously a good thing and I'm all in favor of patient safety and any steps that can be taken to protect it.

      But the idea of a "week" -- that's what I have mixed feelings about. Building awareness is good, but having a week makes patient safety seem like an add-on, rather than a core issue. Patient safety should be a priority every week and every day. Education and support for patient safety issues should be ongoing.

      I don't remember factories ever having "Quality and Customer Focus Week." Do any? If they don't have a week like that, it doesn't mean that quality and customer focus aren't important. Now, sometimes factories will send a message that quality isn't a core function by having a "quality department" that is somehow responsible. The best factories integrate quality into everybody's job, every day. I'd assume the best hospitals would incorporate patient safety into everything, every day, as well.

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      Saturday, March 01, 2008

      Deming Endorses Obama (?)

      Breaking: Deming Endorses Obama - IndustryWeek Forums

      A few people have emailed me about this and it's easier for me to comment here than it is to register for the IW forums. An interesting idea is posed by Brad Kenney: would Deming "endorse" Obama as the result of this quote?
      “Does experience help? NO! Not if we are doing the wrong things.”

      - W. Edwards Deming (consultant, statistician and educator, 1900-1993)
      That's hardly an endorsement and it raises the question of whether Obama really has "new" ideas or old liberal ones. The Deming quote is certainly a paraphrase of what Obama is trying to say about Hillary Clinton, that she has "experience" and it was the wrong things.

      Yes, things are broken in Washington DC, as the writer points out. My own position is that things are equally broken on BOTH sides of the political aisle. Kenney is trying to be clever in comparing government problems to business issues, but I think he misses the mark -- badly.
      The employees (us) aren't engaged, and the management (the three branches of government) range from hopelessly inept to criminally incompetent. Employee morale and "customer satisfaction" (approval ratings) are at an all time low (in the 20% range for both Bush and Congress). Our country is hopelessly in the red, and don't get me started on defect rates where legislation is concerned (Congress' first pass yield has got to be in the single digits).
      Whoa whoa.... the American citizens, the public.... we're NOT "employees." We do not work for the government. The government is supposed to work for us. "Customer satisfaction" is maybe a better analogy than "employee morale."

      Kenny equates political change to "pulling the andon cord." Maybe that's not a bad analogy. But, I don't think Dr. Deming would want change for the sake of change or merely "fresh ideas." I'll have to dig up some of his quotes from "The New Economics" for his thoughts on government, but I would suspect Deming would favor the PDCA process -- try a change, measure the results, see how it works. Too many government programs never go through the Check and Act phases... we just "Do" and programs are stuck in place forever.

      Deming wrote, on page 123 of The New Economics:
      Transformation is required in government, industry, education. Management is in a stable state. Transformation is required to move out of the present state, not mere patchwork on the present style of management. We must of course solve problems and stamp out fires as they occur, but these activities do not change the process.

      ... there will be cooperation on problems of common interest between people, divisions, companies, competitors, governments, countries.... the function of government should be to work with business, not harass business."
      I quoted selectively and hopefully not out of context. You can read the whole page online at the Google Books page for the book (scroll to page 123).

      If I had to guess Deming's views on the current election... he would be opposed to party divisions and the use of divisiveness to win votes. I'm guessing he would want a candidate with systemic solutions to broken government policies and systems, not just fire-fighting. I'm also guessing he would fall more along the Republican or Libertarian lines of not over-regulating or punishing business.

      Too bad Dr. Deming isn't alive to be a third-party candidate, because I would have voted for him in a second. Heck, Dr. Deming had plenty of foreign policy experience with all of the countries he visited during his teaching and consulting!! Deming for President!

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