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Wednesday, September 7, 2011

Daily Lean Tips Edition #19

For my Facebook fans you already know about this great feature. But for those of you that are not connected to A Lean Journey on Facebook or Twitter I post daily a feature I call Lean Tips.  It is meant to be advice, things I learned from experience, and some knowledge tidbits about Lean to help you along your journey.  Another great reason to like A Lean Journey on Facebook.

Here is the next addition of tips from the Facebook page:

Lean Tip #271 – Determine the pacemaker point of your process.

A pacemaker is any process along the value stream that sets the pace for the entire stream. It should not be confused with a bottleneck process, which unintentionally constrains downstream process due to a lack of capacity. The challenge is to decide where the pacemaker should be located.

Lean Tip #272 – Milk runs can increase the velocity of your supply chain.

A milk run is a multiple-stop transportation route. The same vehicle will pick up at multiple stops or deliver to multiple stops. The milk run is an excellent tool to manage transportation costs while reducing lot sizes and increasing delivering frequency.

Lean Tip #273 – The 8 Guiding Principles of a Lean Fulfillment Stream.

1. Eliminate all the waste in the fulfillment stream so that only value remains.
2. Make customer consumption visible to all members of the fulfillment stream.
3. Reduce lead time.
4. Create level flow.
5. Use pull systems.
6. Increase velocity and reduce variation.
7. Collaborate and use process discipline.
8. Focus on total cost of fulfillment.

Lean Tip #274 – Reduce shipping and receiving costs by focusing precise planning.

The biggest costs in shipping and receiving are equipment and people. Excessive amounts of waste (in the form of waiting, inactivity, and unused inventory) are created when trailers full of materials and finished goods come and go or sit idle without precise planning. Identifying waste in shipping, receiving, and yard-management activities require an understanding of the flow of materials and movement of people.

Lean Tip #275 – Reduce inspection processes to create uninterrupted flow of materials.

Material (and information) should flow uninterrupted from suppliers to customers in a Lean fulfillment stream. Shipping and receiving inspections are non-value added processes and should be eliminated. To do this will require quality-at-the-source and poka yoke (or mistake proofing).

Lean Tip #276 - Make sure you're focusing on things with strong connections to overall objectives.

One of the biggest metrics mistakes is random selection. The best metrics start with the big picture. Identify the overall objective of your company or initiative. State it quantitatively. It should answer the question: "We'll know this is successful when we see _____ happen."

Lean Tip #277 - Select strongly connected success measures that allow you to control outcomes.

Metrics at the lowest layer of an initiative or organization have the highest actionability. A focus on the most actionable metrics is essential for 'moving the needle' of big‐picture metrics. When you identify a problem or opportunity that needs to be addressed, this is the symptom that you will explore for root cause analysis. Start with the observable problem or opportunity, not with possible solutions.

Lean Tip # 278 - Your metrics should be right-sized to your strategy.

Too many metrics create chaos and unnecessary work. Too few metrics will not provide enough measurement to ensure you’re your strategies are supported. Your metrics should provide insights into the progress your agency is making.

Lean Tip #279 - Metrics should be clear and not open to interpretation.

Organizations should figure out the story the metrics are supposed to tell and then stick with that outline. The metrics should describe the extent to which your organization is performing its mission. Metrics should explain your intentions and objectives.

Lean Tip #280 – Start with external metrics that assess your overall performance.

Metrics generally fall into two categories:

Performance Metrics are high-level measures what you are doing; that is, they assess your overall performance in the areas you are measuring. They are external in nature and are most closely tied to outputs, customer requirements, and business needs for the process.

Diagnostic Metrics are measures that ascertain why a process is not performing up to expectations. They tend to be internally focused and are usually associated with internal process steps and inputs received from suppliers.

A common mistake is to start first with your diagnostic measures - measuring yourself internally, rather than beginning with an external focus, namely your customer.

Lean Tip #281 - Expect the best and your employees will rise to that level.

How do you do this? You do it with the words you use. Are you expressing positive expectations, or are you using words (kind of, sort of, we’ll try, we have to, we haven’t done that before, and that will never work) that communicate negative expectations? What does your body language say about you? Does it say, “I’m ready to take on any challenge, and I expect you can also;” or does your body language say “Please don’t give me another problem. I can’t handle it.”

Lean Tip #282 - Take time to show sincere interest in your employees as people.

Understand what your employees are passionate about in their lives. What are their special passions? What are their personal needs? What brings them joy or pain? What are their short-range and long-range goals? Once you understand the answers to these questions, you can move them to a new level of motivation, because you cared enough to ask the questions and show interest in their success. Once you understand your employee’s needs and goals, they will take more interest in understanding and achieving your goals.

Lean Tip #283 – Walk the Talk, they are watching and learning.

Our employees model our behavior. If we are confident about a major change in the organization, our employees will follow our behavior. If we come in late and leave early, guess what will happen? Remember, even when you don’t think someone is watching…they are always watching. Set the example for others to follow.

Lean Tip #284 - Provide Meaningful and Challenging Work to Motivate.

When people feel that the work they are doing is meaningful - makes a difference in some way - and provides them with challenges that stretch them (but also mesh with their ability to achieve them) they become internally motivated. In other words they don't need anyone standing around coercing them into higher levels of performance.

Even the most mundane of work can be motivating if the leader helps the team member put into context the value their work brings either to the consumer or to the organization.

Lean Tip #285 - Design People's Roles So They Can Use Their Strengths

Assigning people to specific tasks and duties that play to their strengths is one of the best employee motivation techniques. Research has shown, more than anything, people who are able to make use of their strengths on a regular basis while at work are more likely to work in teams that perform at higher levels.

When people are playing to their strengths on a regular basis - they feel effective, focused and fulfilled ... a win for them and for their organization. The person becomes more internally motivated ... feeling upbeat and enthused by what they are doing ... and will feel inspired to continue more.


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Tuesday, September 6, 2011

Advice on Creating a Kaizen Event Charter

A reader recently asked me share some suggestions on a Kaizen/Team Charter.  So before we get into that it is important to note that while I like to strive for small incremental improvements daily larger scale events also have a necessary place in continuous improvement.  This is especially true for most in the early years of transitioning to a Lean thinking organization.  Improvement comes in many sizes based on the situation, organization, and know-how.

The Kaizen Charter is a planning tool used to increase the odds of success of an improvement activity.  It sets out the scope of the process that will be addressed in the event, establishes the goals and objectives of the event, identifies any work that must be completed prior to the event, and identifies the team members.

The charter is a contract between the Lean Champion (knowledgeable coach) and the project team created at the outset of the project. Its purpose is:

  • To clarify what is expected of the team
  • To keep the team focused
  • To keep the project and team aligned with organizational priorities
  • To transfer the project from the champion to the team
A charter may look something like this:

Click the photo for a larger view.
Download a copy here.


Here are some key points to consider when drafting the charter:
  • Pick a team leader – the leader will be the driver for the team during the event.
  • Determine event dates.
  • Make problem statement specific.
  • Set preliminary objectives for event.
  • Make the objective measurable.
    • Production rate, cycle time, lead time, set-up time, quality improvement, space utilization, WIP/INV reduction.
    • Calculate Takt Time if possible.
  • Focus on observable symptoms.
  • Describe current situation – background information.
  • Pick Improvement Team members.
    • Team should include those within the process as well as an outsider to challenge status quo thinking.
    • Get commitment from Team member’s supervisors.
  • Set boundary conditions that keep team focused on objective.
  • State resource limitations (Time, Money, People).
  • Determine initial training needs for the team with the Champion.
One last, piece of advice is avoid these common failures:
  • Assigning blame in the problem statement.
  • Setting non-obtainable goals.
  • Making the Charter too wordy.
  • Completing without the Champion.
  • Striving for perfection.
  • Poor team selection.
  • Uncommitted leaders.
A well-defined charter is one of the most important elements to make your Kaizen or Team activity successful. It aligns everyone's thoughts and actions to solving the problems at hand and delivering the expected results. It's open enough to allow for creativity and adaptation, but it also sets basic ground rules by which to act. Without it, even the most concerted effort can easily spiral into confusion and disagreement.



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Monday, September 5, 2011

Celebrating the Worker This Labor Day


Labor Day celebrations have come a long way since the turn of the century. It’s not so much an honoring of the workers anymore. It’s just an opportunity to get off work, and celebrate the end of summer (if that’s something to celebrate). Many people see the Labor Day weekend as merely an opportunity for a last summer fling. And whether they celebrate it playing golf, going camping or fishing, having a backyard steak barbeque, or attending a picnic in the park or at the beach, the true original meaning of Labor Day seems, for the most part, to have become lost in the enjoyment of the moment.

It’s a good thing to enjoy your last summer holiday. But it’s also a good thing to rejavascript:void(0)spect and honor those who didn’t have the favorable working conditions we have now. It’s a good thing to remember those who fought very hard for workers’ rights. The purpose of the holiday is to celebrate the social and economic achievements of America’s workers. Labor Day celebrates us all — our achievements and contributions to the strength, prosperity, and safety of our nation.

So explore whatever you like to do on Labor Day. But remember the original purpose of the holiday, as stated by the U.S. Department of Labor: “It is appropriate, therefore, that the nation pays tribute on Labor Day to the creator of so much of the nation’s strength, freedom and leadership – the American worker”. And we say…Amen to that!



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Friday, September 2, 2011

Lean Quote: People Want More Recognition

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"People may take a job for more money, but they often leave it for more recognition." — Bob Nelson


Despite popular belief, money isn’t the best way to recognize superior performance. In fact, research from the U.S. Department of Labor shows that the number-one reason people leave their jobs has nothing to do with pay or promotions -- they leave because they "don't feel appreciated."

Most managers only practice recognition after the fact – which is rewarding people for achievements. Rewards are great, however they are only a trade (first you achieve something and then I reward you for it) and they only cause short term motivation (if the rewards stop coming, performance will decrease as well, because the trade is out of balance).

But if you can recognize them before the achievement you can engage them. It makes them feel heard, valued, involved and important. Recognizing how people like to be treated; what training, information or tools they need to do their job; what their ambitions, talents, personality type and motivational drivers are, helps us to respond to them in a way that brings out the best in them. All this assures sustainable motivation.

Employee recognition is a powerful tool to sustain high performance levels in your employees. It is also a channel through which you communicate to your employees the kind of actions and attitude you like them to execute. Thus, you establish the performance patterns that enhance productivity and render you a competitive edge.

Does your company have an employee recognition program? One that works to engage, develop, and reinforce the highest level of performance from everyone.



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Thursday, September 1, 2011

Make a Statement about Manufacturing in America


The North American Shingo Prize recognizes business excellence in the United States, Canada and Mexico. It was established to create increased awareness, development, and implementation of lean manufacturing principles and techniques. The goal of the North American Shingo Prize is to make manufacturing facilities and other industries more competitive in the global marketplace, illustrating how world-class results can be achieved through the implementation of lean principles and techniques in core manufacturing and other business processes.


Consider attending the Northeast Shingo Conference in Springfield, MA on October 5-6, 2011. The theme is "Made Lean in America" and the idea is to gather hundreds of people to make a strong statement about the ability of companies to use lean to remain a strong and vital part of the American economy. For these organizations, Lean means creating employment opportunities at home: good jobs, a strong tax base, a brighter future. Long-term thinking is emerging: America can compete through the use of lean thinking. Add your voice this year.

If you are still not convinced you can revisit my review from last year's exhilarating conference.  It was such an energizing learning environment sharing Lean thinking with so many like minded practitioners.  I will be attending again this year and I know you will find this a valuable experience as well.

My dear friends at GBMP are the educational partner of Shingo Prize for Operational Excellence in the Northeastern region of the United States. It is an excellent opportunity for regional manufacturers, as well as other industries. The Northeastern region is comprised of 11 states: Maine, Vermont, New Hampshire, Massachusetts, Connecticut, Rhode Island, New York, Pennsylvania, New Jersey, Delaware and Maryland.




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Tuesday, August 30, 2011

The Lean Desk, Evolution of Continuous Improvement

Recently, I wrote about the importance of the stand-up desk for health and ergonomics.  Have you changed the way you think about a conventional office yet? If you are still contemplating this or you need some ideas to get you started then I have a video for you. Paul Akers takes you on his lean journey to creating a lean work place and a super lean office.





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Monday, August 29, 2011

Benchmarking: The Good, The Bad, and The Ugly

When organizations want to improve their performance, they often benchmark. Benchmarking is the process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries. The discussion of whether benchmarking is good or bad is an old one.

Benchmarking can be an effective means to learn new skills and to develop your organization. However, it should be a process of continual improvement. Once you have implemented changes, you should benchmark your business again to see the results. This will tell you what is working, and where you can still improve.

The process of benchmarking can benefit your organization:

An holistic approach: It is both qualitative and quantitative, ensuring more accuracy in developing a whole picture of your business.

Opens minds to new opportunities: While the results can make for uncomfortable reading, the process usually raises new challenges for businesses.

Leads directly to an action plan: Rather than simply highlight problem areas, it undertakes a strong review of turnover and profitability.

Improving productivity: Businesses following improvement action plans can expect gains in cost, cycle time, productivity, and quality.

Some feel that benchmarking can limit the true potential of an organization by focusing on how well their competitors are doing. Somewhere I heard the comment that "if you benchmark against your best competitors, your best product will look like your best competitor's crap.” Your competition won’t stand still and you shouldn’t either. Maybe there’s a case then for benchmarking organizations from other industries and not your competition.

The worst mistake is to simply adopt a best practice without first identifying the problem you are trying to solve. Tools and best practices must be applied in response to a specific, defined problem, not just because it seems like a good idea. Instead as we do in Lean you should learn about waste and value. Then analyze your processes to reduce waste and improve value to your customers. Learning from others can be very powerful, but you must learn to apply the right tools and ideas for your particular situation. The problems of your competition or that of other companies you benchmark may not necessarily be the same as yours.

Benchmarking is not a perfect process but done properly and consistently it can be the start of improving your business and creating a more optimal learning environment. Avoid using it as a means to judge your competition at the expense of creating customer value or solving someone else’s problems.

What are your views on the benefits or drawbacks of benchmarking?



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