Lean Quote: Quality Comes Not From Inspection But From Improvement

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.

"Quality comes not from inspection but from improvement of the process." — Mary Walton

Unfortunately, there are not enough organizations that understand quality. Quality is not additive or final. It must go beyond the product or service. We cannot add it at the end of the line or inspect it into the product. At best that is only a false sense of security. If we want a quality product it must be made with quality processes by quality minded people.

Nothing is perfect and everything can be improved. We must continuously review how and what we do in order to find better ways of doing it. This means accepting the occasional mistake and having the courage to admit it, along with the strength of mind to find a better way of doing things in the future.

Generally the most effective way to achieve quality is to avoid having defects in the first place. It is much less costly to prevent a problem from ever happening than it is to find and correct the problem after it has occurred. Focusing on prevention activities whose purpose is to reduce the number of defects is better. Companies employ many techniques to prevent defects for example statistical process control, quality engineering, training, and a variety of tools from the Lean and Six Sigma tool kit.

Process-centric thinking does not have to be overly complex. Sometimes, all it takes is a thoughtful examination to uncover significant areas for improvement. Rather than tolerating mistakes and repeat errors, facilitate process-centric thinking to continually improve, correct, and overcome execution difficulties.

Start with the idea of preventing defects, not waiting until they are identified and correcting them. Many companies have an active Zero Defects policy where defect prevention is paramount and quality inspection is almost just a verification of what they already know – that the product is defect free. If we can start with quality and maintain that quality throughout the process we will have a quality product.

 

Quality is Defined by Customer

Like beauty and truth, quality is in the eye of the beholder, your customer. Quality is an ever evolving perception by the customer of the value provided by a product. It is not a static perception that never changes but a fluid process that changes as a product matures (innovation) and other alternatives (competition) are made available as a basis of comparison.

Quality and excellence are not what you say they are.  Quality and excellence are what your customers say they are.  Customers of your products and services define quality!

Quality involves both hard and soft numbers. Actual quality is a hard number that companies often have measured precisely. It is quality from the point of view of the manufacturer. Perceived quality and expected quality are soft numbers that measure quality from the customer point of view. Perceived quality is the quality of product received by the customer. Expected quality is the quality expected by the customer before receiving the product. These three measures form a product quality model: perceived quality = actual quality - expected quality. To keep perceived quality above zero, managers should: define customer needs through talking with customers; pay attention both to customer desires and expenditures of resources; realize that industrial engineering and human behavior both have impact on product delivery; and emphasize processes that have the flexibility to respond to customer feedback.

Customers want quality that is appropriate to the price that they are prepared to pay and the level of competition in the market.

Key aspects of quality for the customer include:

•           Good design – looks and style

•           Good functionality – it does the job well

•           Reliable – acceptable level of breakdowns or failure

•           Consistency

•           Durable – lasts as long as it should

•           Good after sales service

•           Value for money

The objective of “Quality" is to satisfy the ever-changing needs of our customers, suppliers and employees, with value added products and services emphasizing a continuous commitment to satisfaction through an ongoing process of education, communication, evaluation and constant improvement.

Lean Quote: Freedom is a Chance to be Better

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.

"Freedom is nothing but a chance to be better." — Albert Camus

Tomorrow, we celebrate Independence Day in the US. The 4th of July is an extremely patriotic holiday where we celebrate the independence of our country. People celebrate with family and friend gatherings, barbecues, parties, games, food, fun, festivals, parades, musical events and fireworks.

Freedom is not just the natural right of every human. It is the state of mind that enables people to create the greatest and the most inspiring things. The spirit of freedom gives us the power to conquer new heights, whether it is a real mountain peak or a bold business challenge.

Lean is all about finding better ways to do things, so that they require less effort, less time and fewer resources. It is not about cost reduction – penny-pinching, cutting investment, taking out people – it is about finding better ways to get work done. It is about developing a mindset, methods and tools to identify and eliminate waste in all its forms at every opportunity. It is about freeing-up resources because you no longer need to use them.

Lean manufacturing provides your workforce the freedom that they need to own and maximize their productivity. In a Lean production plant, the "freedom to control one's work" replaces the "mind numbing stress" of mass production. Armed with the skills they need to control their environment workers have the opportunity to think actively even proactively to solve workplace problems.

Lean is more than the traditional metrics of improved efficiency, reduced costs and increased throughput. The people-centric approach to the application of Lean creates a better future, driven by empowered individuals working in teams, committed to continuous improvement. It is this culture of responsible freedom and trust that allows employees and their organization to realize the positive benefits of Lean and achieve a successful outcome.

 

The Gemba is our Lean Classroom

Human beings can definitely learn by hearing, reading, watching, seeing, and analyzing…but when it comes to getting results there is no better way than to learn by DOING.

If you want to learn how to drive, you have to drive. Humans are natural learners. They learn from everything they do. When they watch television, they learn about the day's events. When they take a trip, they learn about how to get where they are going and what it is like to be there. This constant learning also takes place as one works.

Learning by doing, also known as experiential learning, happens when you use hands-on learning to engage in an ongoing cycle of action and reflection, deepening your understanding of concepts and mastering practical skills. As you take part in meaningful activities—instead of simply watching them—and then later evaluating what you have learned, learning is far more meaningful, memorable, and long-lasting.

Leaders/coaches assist in this process by facilitating appropriate experiences through which you can learn, and by leading discussions that reflect on those experiences. Learning comes from the floor, from the Gemba, where the condition occurs.

The word 'Gemba' is a Japanese word that means the real or actual place. You need to go to the real place and experience these conditions for yourself before being able to take the next steps.

Management must go to the Gemba to practice Lean management. Gemba walking teaches us to see in new ways what we have failed to see before. There you can identify problems, non-value added activities, or wastes through a deliberate observation of a particular area or process.

Learning requires two elements to be truly successful overtime:

PRACTICE: After completing a learning experience, create opportunities to apply what you learned as soon as possible and many times to refine your ability.

EXPERIMENT: Take a risk and try something new, even if you aren’t all that comfortable. We can learn as much, sometimes more, from our mistakes than from getting it right the first time.

Everything can contribute to our experience of learning. But as you may realize, learning is incomplete if we don't experiment and practice. These activities can only occur in the Gemba and for that reason I say the Gemba is our Lean classroom.

Lean Quote: Don’t Seek Immediate Perfection

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.

"An environment that calls for perfection is not likely to be easy. But aiming toward it is always a goal to progress." — Thomas Watson, Jr.

Perfection is futile.  To be sure, perfection is the goal but it can not be achieved in one single initiative.

If we all waited for perfection, we'd still be reading by candlelight and riding horses to work. The problem in the real world is that nothing is perfect. It sounds obvious, but it is not quite as obvious.

Shoot for better, 80% better. Once you get to a certain point (whether it's 50% or 80%, or another number that makes sense), then run with it. In other words, take action. Then, adjust as you go along.

The 80/20 rule states that 80% of the benefit comes from 20% of the work. The last 20% of benefit (the perfect) requires 4 times more work. Often people believe perfection (100% benefit) is only slightly more expensive/difficult than the good (80% benefit). That isn't true.

If you try to achieve perfection you may well be at the kaizen a very long time.  Perfection is elusive.  If you can accomplish 80% of what you set out to and meet the goals of the charter then call it complete.  You will be back to improve from this new state again.

If people are told that perfection is the goal, but that it is impossible, they will rightly think that management has not quite thought this one through. They will mistrust much of what else is said. Instead, people should be told that perfection is the goal and we simply don’t know enough at the moment to reach it.

 

Daily Lean Tips Edition #80 (1201-1215)

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.

Click this link for A Lean Journey's Facebook Page Notes Feed.

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

Lean Tip #1201 - Don’t Automatically Blame the Tool.

It’s not the hammer’s fault if the person swinging it uses the wrong end. It just won’t work well. Most tools are decent enough, they’re just used incorrectly. Rushing to change a tool because things aren’t working well may be a mistake.

Lean Tip #1202 - Identify Changing Requirements.

Over time your needs will change. You need to stay aware of this, so you can change processes accordingly. Keep a list of your top requirements to help you make better decisions on tools to use.

Lean Tip #1203 - Share More, Not Less.

Even in a small company, silos emerge. A practice of more sharing will help everyone stay in touch with what others are doing, and create a collective expectation. Keeping everyone pointed in the same direction is hard; sharing more about what’s going on, how you’re doing things, reasoning behind decisions, etc. will help.

Lean Tip #1204 - Teach Others What You Learn.

One of the best ways to deepen and solidify your new knowledge is to teach it to others. Give a presentation, run a seminar, teach a class, or volunteer to run a small internal workshop to teach others in your organization what you are learning. Real learning occurs when you share it.

Lean Tip #1205 - Develop Exceptional People And Teams Who Follow Your Company’s Philosophy.

Exceptional people thrive in environments that promote Continuous Improvement; however, organizations that have a powerful culture of CI are not those that demand that employees practice CI. Instead exceptional people are “developed” within the “system dynamics of an organization” – in other words, they work in a place where Continuous Improvement is second-nature.

People must feel secure; feel as though they are part of a team; feel challenged in their job; have some degree of autonomy and feel like they have some control over their work.

Without a culture of respect, where each person is valued for what they contribute to an organization, the chances of developing exceptional people who strive to improve what they do and how they do it every day becomes nearly impossible.

Lean Tip #1206 - Develop Dashboards that Provide Insights to Improve Decision Making and Increase Success.

Decisions are based on information. The more accurate, timely, and relevant the information, the better the decisions. Today’s technology enables organizations to provide customized dashboards that present staff with KPIs critical to their success. When properly designed with business goals in mind, these dashboards can increase transparency by communicating performance to selected stakeholders throughout the organization and alerting decision makers to situations that need immediate attention.

Lean Tip #1207 - Use Collaboration Capabilities to Enhance Teamwork.

Workers are especially interested in collaborative environments where they can share their ideas and feel involved in their organization. Organizations with greater employee engagement realize significantly higher productivity, profitability, and customer satisfaction. Additionally, they enjoy reduced turnover, lower absenteeism and fewer safety incidents. By providing technology that enables employees to participate in multi-way communication, organizations create stronger workforces more personally invested in their employers’ future and success.

Lean Tip #1208 - Employ Digital Teaching Aids to Increase Employee Knowledge and Advance Skills. 

Never before have so many people been connected with so much knowledge. And never before have they felt so motivated to utilize the available resources to improve their work lives. Employers who have realized this are reaping the rewards of computer-based staff training programs that engage and educate. Cost efficiencies are quickly realized as remote staff can learn online, and employee advancement improves through development of new skills.

Lean Tip #1209 - Demonstrate That You Value People

Your regard for people shines through in all of your actions and words. Your facial expression, your body language, and your words express what you are thinking about the people who report to you.

Your goal is to demonstrate your appreciation for each person's unique value. No matter how an employee is performing on his or her current task, your value for the employee as a human being should never falter and always be visible.

Lean Tip #1210 - Solve Problems: Don't Pinpoint Problem People

When a problem occurs, ask what is wrong with the work system that caused the people to fail, not what is wrong with the people. Worst case response to problems? Seek to identify and punish the guilty. (Thank you, Dr. Deming.)

Lean Tip #1211 - Listen to Learn and Ask Questions to Provide Guidance

Provide a space in which people will communicate by listening to them and asking them questions. Guide by asking questions, not by telling grown up people what to do. People generally know the right answers if they have the opportunity to produce them.

When an employee brings you a problem to solve, ask, "what do you think you should do to solve this problem?" Or, ask, "what action steps do you recommend?" Employees can demonstrate what they know and grow in the process.

Eventually, you will feel comfortable telling the employee that he or she need not ask you about similar situations. You trust their judgment.

Lean Tip #1212 - Encourage open communication.

Organizations that use a formal top-down communication hierarchy make it difficult for their employees to speak up. Even if they did gather enough guts to share their opinions, they may feel like their input won't matter much. After awhile, these people may give up on speaking up.

Create methods for direct communication. Acknowledge input. Foster an open exchange of ideas. Face facts — every idea isn’t good, but you won’t find the game-changers if you don’t explore new concepts.

Lean Tip #1213 - Provide Plenty of Context.

Be transparent with your employees. Tell them why you make certain decisions and what direction you're planning on taking the company. If we can do a better job of sharing the core values and the important business goals, we can hope to draw out team members’ talents and energy.

Lean Tip #1214 - Require Accountability.

The best way to do this is by discussing setbacks and recognizing extra efforts among your people. Why would someone want to continuously work hard if they don't think that their efforts are appreciated?

Empowered people are confident, knowledgeable, and able to be more productive without being micromanaged or having excessive oversight. They demonstrate initiative and own their work. At the end of the day, this is better for you as their superior and better for the organization as a whole.

Lean Tip #1215 - Give Employee the Chance to Fail -- and a Safe Place to Land When They Do.

Not all employees are risk-takers. Fortunately, the willingness to take risks can be taught -- or at least modeled.

First, stomp out micromanagement in your organization. If your employees feel as if they have to seek approval before making every decision, or if their day-to-day routine is filled with monitoring and correction, they’ll never take initiative.

A manager shouldn’t be a babysitter. Encourage every manager to be a mentor, and give employees opportunities to push out of their comfort zone. If employees fail, train your managers to treat those mistakes as teachable moments. Train your managers to help employees try again -- and to give them the tools and motivation to do so.

The Six Elements of Success

How do you define success? For some business leaders, success is defined by monetary rewards, while others say success is having a positive impact on others.

The mundane definition of success is of course a company that provides "value" to its customers, owners, shareholders, society and employees. This encompasses the entire business cycle from generating profits, using capital efficiently to delivering superior customer service.

Sure, success in business and in life means different things to different people. Whether or not you are successful depends on how you define success, and on the tradeoffs you are willing to not just accept but embrace as you pursue that definition of success. We can have a lot but we can't have everything.

Success is every organization’s goal. But what is the key to success?

1. Clear Shared Vision

In today’s rapidly changing world, it’s not just enough to have a purpose for existing.

Identifying and communicating a clear vision is one of the most important functions a business leader can perform. Leaders have to focus the organization’s resources on the greatest opportunities. Not only does a clear, shared vision help define the values of your company and its employees, but it also helps guide the behavior of all employees.

2. Bias for Action

It is basic human psychology that people do not change the way they do things unless there is a pressure for change. If you do nothing, nothing changes. Things at rest have a tendency to remain at rest. High performance cultures are impatient to get things done. They are doers, not talkers, keeping an eye on where the value is to ensure their actions will enhance the business. Failure cannot be unduly punished. Unless people feel free to make mistakes, they will not feel free to take bold actions.

3. Engaged Staff

Without people being engaged in continuous improvement and wanting to participate you will simply encounter resistance. People today want some direction and structure, but they also want freedom and encouragement to develop their skills and knowledge. Effectively managing people requires balancing constraining forces (providing direction, structure, organization, some rules) with liberating forces (encourage personal growth, development and creativity).

4. Capability

The ability to be able to successfully deliver products and services to the customer base of a business is tied up with the maturity of its capabilities. These capabilities—the collective skills, abilities, and expertise of an organization—are the outcome of investments in staffing, training, compensation, communication, and other human resources areas. They represent the ways that people and resources are brought together to accomplish work. They form the identity and personality of the organization by defining what it is good at doing and, in the end, what it is.

5. Efficiency

Business operations should also see efficiency as a primary goal. The efficiency focus began with practices such as lean management and systems management used primarily in manufacturing circles, but the concepts soon found their way into other industries. How the business arranges its production chain physically, how many steps of the production process it can do at the same time and what the downtime of its equipment or process is are all vital factors in increasing efficiency. The goal is to produce as many goods in as short a time as possible.

6. Quality Control

While the steps of the operational process are important, the organization must also assess its work at the end of the process. Quality control examines the final product and looks for defects and ways it can be improved. Most businesses will only accept a certain level of defects or problems -- some prefer not to accept any at all. This improves product flow and solves minor problems that could become major issues later on.

Success in business is not by chance. Success does not find you. There is no shortcut. It takes hard work and a long time. And success would not exist without failure. Failure is not final. If you want to succeed where others fail, you have to step fight over the failure and keep walking. Success is a journey not a destination. Follow these keys to success and you will be on your way to success.