WITHOUT INVENTORY FLOW AND FIFO DON’T MIX

The purpose of lean manufacturing is simply to eliminate waste and increase value for customers and shareholders. The theory is to have optimum linkage and flow throughout your value stream. The rate of your production should match the rate of the demand. Sounds easy enough unfortunately there are always two assumptions made that typically derail the project from the start.

  1. The Customer demand will be level or will allowed to be leveled.
  2. Shared resources can be managed easily.

I’ve found these two assumptions the most common reasons lean implementation fails. Continue reading

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CORPORATE OR ORGANIC CONTINUOUS IMPROVEMENT

If you work in a medium or large organization I’ll bet there is a continuous improvement activity, in progress, planned or just completing. With so much emphasis on continuous improvement its mind boggling the 80% of implementations fail according to the Center of Excellence in Operations. That doesn’t surprise me while I’ve witnessed pockets of excellence yet to experience anywhere near the full potential of Continuous Improvement or Lean Transformation programs.

 
The reason for failure are numerous and typically obvious to most within an organization. Failures are result age old issues nothing new to see here.

 
• Focus on short term financial goals.
• Lack of Leadership.
• Silos competing and wrestling with conflicting goals.
• Targeting the wrong metrics
• Ineffective Communication

Continue reading

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What Every Supply Chain Graduate Should Know

Congratulation you just received your degree in supply chain management. You have chosen a rewarding, challenging and oftentimes frustrating profession. The business schools do an excellent job teaching the theory of supply chain management but it never comes close to simulating the real world experience. Without fail every graduate I’ve trained or mentored was more than mildly surprised at both the simplicity and complexity of the profession. Here are some of the comments of new supply chain professionals.

  • The position is nothing like how it was portrayed in college.
  • Did I really need a degree for this?
  • Business processes are not as robust as portrayed in college textbooks.
  • Does the organization recognize all the waste and inefficiencies?

If you’re a seasoned professional I’m sure that sounds familiar.
Continue reading

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Sasquatches, Yetis, Big Foot and Kanban

Have you noticed all the reality shows today in search mythical creatures? You have your Ghosts, Bigfoot’s, and Swamp Monsters of course don’t forget Aliens. Must admit some are entertaining I enjoy a good laugh or scare as well as the next guy but come on its entertainment first and foremost.

Whenever I watch these programs one thought keeps jumping into my mind. This reminds me of so many continuous improvement programs I’ve witnessed. Let me explain.

The narratives of these reality programs have slowly evolved. What once was a journey to prove the creature exists evolved into a hunt for a real creature!

For example a Bigfoot “expert” was interviewing a witness about a possible sighting. The so called expert had doubts about the validity of the claims because it didn’t follow a normal Bigfoot behavior. What? How can creature a mythical creature have behavioral attributes? That’s fine its television but the experts speak with the authority and gravitas that some viewers accept as fact. Now we see folks with big guns stumbling through fields and forests making elaborate traps trying to capture or kill a monster they have yet to prove exists! This is surely an accident waiting to happen.

Does this sound like a continuous improvement activity you’ve participated in? Whereas Bigfoot is one piece flow, zero defects, perfect inventory levels and 100 percent on time delivery. The consultants tell us the only place this beast can exist is Toyota. Everyone then tried to become Toyota to lure the beast out only to sadly discover it was never there.

Continuous Improvement is about getting better every day and knowing perfection in production just like Bigfoot doesn’t exist. Like the Bigfoot reality shows organizations have moved from the search for perfections to believing it really exists!

This belief will have organizations stumbling blindly through the forests spending money and setting traps to catch a creature that isn’t real. Each lean event like each TV episode will end with an empty trap with all the experts pointing to evidence that your almost there, just missed it.

Instead you should make incremental changes of improvement which is real. Remember you don’t have to be perfect just better than your competition.

 

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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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THE BIRDS AND BEES OF LEAN MANUFACTURING

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.

THE LEAN TALK
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.

CHOOSING A PATH FORWARD
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 FOR TEENS – SELF WORTH

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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