Four Legal Terms Regarding Ethics Procurement Professionals Should Review

ethicsEthics in procurement has been a hot topic for many years. Ethics is more than just what is right or wrong or what is legal or illegal. Your company’s ethical practices reflect the culture of your organization as a whole. Simply put it’s your organizations moral principles put in action.

Being ethical doesn’t mean you can’t be a firm negotiator or a make shrewd business moves. On the contrary, ethical negotiations provide organizations the high ground needed to operate in good faith.

Every Lean Practitioner in procurement should be aware and review periodically the main laws governing ethics in the workplace.

Disparagement – This refers to making statements of fact that are misleading or untrue regarding another company’s product or service. This is typically done to influence consumer not to buy the a competitors product.

Libel – Is published false statement that is damaging to a person’s reputation; a written defamation. The value of your reputations is highly valued in the United States and there are laws protection individuals and companies from defamation.

Slander – This is simply Libel in oral form. Libel is written defamation and slander is spoken defamation.

Bribery – Commercial bribery refers to giving of gifts, cash or other favors in return for business. Throughout the years rules on gifts and gratuities especially for governmental entities has tightened substantially. What used to be standard business practices may now be illegal. Be sure your company is up to date and familiar with the latest rules and regulations.

What are your thoughts regarding ethics in procurement? Do you any stories to share would you like to submit a guest post on any form of continual improvement? If so just let us know.

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Has your parent company had “The Talk” with you? You know that sometimes awkward talk about Lean Manufacturing principles. Awkward because parent companies themselves have tainted and wasteful pasts and probably isn’t really practicing safe Lean even today.

Most companies from my experience fall in three categories.

1. Have “The Talk” continually but never relinquish the reigns of control to implement the teachings.

2. Have “The Talk” because it’s a good marketing bullet point plus they don’t want employees learning it on the street.

3. Have “The Talk” serious about implementation relinquished enough control for rank and file to operate only to have a disease flares up and stall progress.

Lean Manufacturing is simply a continuous improvement activity that seeks to remove all waste from the process. Lean solutions are common sense practices that should be woven into the moral fabric of your organization. Most larger organizations talk and train on this relentlessly. However culture change is difficult when it’s not organic.

Like most things corporate or governmental it (The Lean Talk) has to be named packaged and delivered in a sterile regimented and cookie cutter fashion normally delivered from an outsider. Implementation is oftentimes overly complicated with little room for variation. Without ability for each product to choose its own path or solution the parent oftentimes sets up an arranged solution. Continue reading

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Continuous improvement is more than just a business philosophy but also a personal endeavor. I recall one anecdote in my childhood that always stuck with me. It was geared toward teenage girls however its true for both male and females of any age.

It goes like this …..

While walking home from work at the mall one day you look down to find a hundred dollars in cash! You’re incredibly happy because it was payday and you had a $100.00 check in your pocket. You notify lost and found at the mall who says the money is yours if no one claims it in seven days. You rush home and tell your parents who are happy for you and proud of your honesty. However they ask one interesting question.

Today you had $200 all at once, $100.00 in cash and $100.00 found. Which $100.00 dollars do you value more and why?

Most kids will give you a puzzled look since both check and found money are monetarily equal. After a moment of reflection they will almost always say the check is of more value.

Why, because I had to work for it.

As parent this is your time to provide the relevance of the question.

Remember if someone wants your time and affection make them work for it. If they’re not willing to put in the work that should let you how little they value you. I’d much rather be earned money than free money! What about you?

Have an anecdote you like to share, I would be glad to publish.

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SCRUM – Has Your Time Come?

Fast job!Scrum “The Art of Doing Twice the Work in Half the Time” is a book written by Jeff Sutherland Co-Creator of the Scrum methodology. The word scrum is from rugby you know when players form up with arms interlocked and heads down, and push forward against a similar group from the opposing side. So you get the symbolism.

This book is yet another attempt to get across the lean manufacturing concept derived from Japanese manufacturing practices. Continue reading

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Book Discussion – Fast Forward Leadership

Most Lean Practitioners have a full library books, periodicals and professional publications. After a while they all melt together in the same old themes simply regurgitated with keywords of the moment. I decided to look over my bookshelf and discuss some of the books that broke the mode or at least were memorable and I believe worthy of discussion. Below is one I actually forgot about.

Fast Forward Leadership

This is a management leadership book written by Louellen Essex. The books premise “How to exchange outmoded leadership practices for forward looking leadership today.” Published in 2004 it was quite relevant and on point. The book was straightforward and quite practical without all the typical guru jargon written to impress the boardroom. Thumbing though it today in 2015 it still appears relevant and thought provoking. Much of what is written is what the rank and file continuously tries to communicate to management to no avail. Below are a few points that really resonated with me. Continue reading

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Deming’s Principles of Training and Leadership

Edwards Deming

Edwards Deming

Today let’s have a short discussion on training and leadership as it pertains to the W. Edwards Deming training and leadership model. The aim of leadership is simply to improve the performance of man and machine. If done correctly the results will be improved quality, increased production and instill pride of ownership.

I’m particularly fond of the Deming model because leaders recognize that the system not the worker is responsible for most defects. Thus a leader’s main responsibility is to improve the process. Continue reading

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5 Real World Tips to Reduce MRP Nervousness

Do these terms sound familiar, expedite, and defer, damper and cancel? If so you’re most likely a Material Planner or Master Scheduler. If that is the case you’re well aware of the nervousness of MRP systems.

Most of the time it’s blamed on moving customers schedules however that really not the case. I’ve found the greatest numbers of issues are caused by sloppy system management.

For example there is a MRP message to order Widget 123 so you create the purchase order. The next day MRP generates a cancel message for Widget 123. What happened? Looking closer we found Marketing needed a show and tell part and Storeroom Clerk used a unplanned transaction to remove from stock which generated an order message. You guessed it marketing returned the part the next day and once returned to stock MRP no longer required purchase order and generated cancel message. This is just one of many internal issues that can cause havoc in your planning system. Below are my top five internal reasons for MRP nervousness. Continue reading

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Lean Manufacturing And The Milgram Experiment

During your Lean journey is becomes easy to become discourage and frustrated. The more you become familiar with the tools and philosophies more you become aware of all the conflicting practices within organizations. Those practices produce many conflicting goal which oftentimes creates conflicts between organizational silos. One silo is tasked to reduce shipping cost while another is to increase shipping frequency with smaller lots. Another unit is tasked to reduce inventory at any cost in direct conflict with yet another group tasked to add inventory in support of on time delivery and level material flow.

Sometime all you can do is laugh. This brings us to an unknown quality tool “HUMOR”! Global competition has bought some massive challenges to the workforce. It’s not unusual for a Lean Practitioner to feel as if they are characters in a Dilbert comic.

This brings me a chuckle I had recently. I was reading about the Milgram Experiment. For those that have never heard of this. Continue reading

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Additive Manufacturing: A Game Changer

amThroughout the decades I’ve been fortunate enough to witness the evolution manufacturing. I’m sure most of you old time I mean seasoned professionals remember the cam controlled chucking lathes. Cutting those cams to make the tool cut a certain path took skill and patience’s.

When manufacturing evolved into CNC digital machining then robotics I was simply elated and amazed at the progress. The simplicity of setup along with the repeatability and precision made these machines state of the art for many years. I can remember making my first .005 offset on a CNC machine then checking the part. It was an incredible feeling of power when the part checked exactly .005 smaller (big deal back in the day). In the past this offset took a touch of a surgeon using the positive stop method.But we’re here to discuss the latest emerging technology in machining called Additive Manufacturing. This is the newest innovation in manufacturing and it will simply change the game. Continue reading

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Develop, Manage and Motivate Beyond the Measurements

heartHearing the phrase “If you can’t measure it, you can’t manage it’ always gives me a reason for pause. Too often it’s the beginning of MBC (Management By Charts) which many employees are accustomed. Lean practitioners everywhere will tell you charts are valuable but rarely convey the true picture. For instance how do you measure loyalty, job satisfaction, ethics and values?

I know there are qualitative research models that can extract quantitative values that can be charted showing a trend. However this is lagging data and typically requires further study and interpretation. I prefer the stand by water cooler method; it’s real-time, cheap and not censored. Talking to real people can be frightening but also enlightening. Continue reading

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