lean

Shining Metal Pointing Direction

hoshin kanri, lean thinking, design thinking, ideo, strategy, vision, mission, backcountry.com, whiskeymilitia, john bresee, jim holland, jill escover layfieldHoshin Kanri is a management tool used at Toyota to align business strategy and mobilize the entire organization toward the business strategy. Hoshin Kanri means “Shining Metal, Pointing Direction” or “Directional Needle”.  In other words, Hoshin Kanri is a North Star or a Compass.

hoshin kanri, lean thinking, design thinking, ideo, strategy, vision, mission, backcountry.com, whiskeymilitia, john bresee, jim holland, jill escover layfieldHoshin Kanri is a management tool used at Toyota to align business strategy and mobilize the entire organization toward the business strategy. Hoshin Kanri means “Shining Metal, Pointing Direction” or “Directional Needle”.  In other words, Hoshin Kanri is a North Star or a Compass.

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Dichotomous Thinking at IDEO No More

tim brown, design thinking, shmula, ideo, ethnography, anthropology, lean manufacturing, lean thinking, six sigma, metacool, diego rodriquezRecently, Tim  Brown, the CEO at IDEO came to a realization that Design Thinking can coexist with Six Sigma and Lean.  For a while, his stance was really of black-and-white thinking: it’s either Design Thinking or Lean Thinking.  This position is akin to a student who believes that if he doesn’t earn an “A” in a class, he believes he failed.  Clearly, not healthy.

tim brown, design thinking, shmula, ideo, ethnography, anthropology, lean manufacturing, lean thinking, six sigma, metacool, diego rodriquezRecently, Tim  Brown, the CEO at IDEO came to a realization that Design Thinking can coexist with Six Sigma and Lean.  For a while, his stance was really of black-and-white thinking: it’s either Design Thinking or Lean Thinking.  This position is akin to a student who believes that if he doesn’t earn an “A” in a class, he believes he failed.  Clearly, not healthy.

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Respect for People, Underutilized People, and Waste

adoption, International, Domestic, Waiting, child, baby, infant, adoption, adopt, adopting, adoptionThe two pillars in Lean Thinking are Continuous Improvement and Respect for People.  What is not well understood is that most of what we know as The Toyota Production System comes from these two pillars.  The Lean sub-culture tends to over-emphasize the “tools” of Kaizen, but miss the point altogether, since the tools stem or originate from one of the pillars above.  The relationship between the 2 Pillars and Waste is subtle, but important.

adoption, International, Domestic, Waiting, child, baby, infant, adoption, adopt, adopting, adoptionThe two pillars in Lean Thinking are Continuous Improvement and Respect for People.  What is not well understood is that most of what we know as The Toyota Production System comes from these two pillars.  The Lean sub-culture tends to over-emphasize the “tools” of Kaizen, but miss the point altogether, since the tools stem or originate from one of the pillars above.  The relationship between the 2 Pillars and Waste is subtle, but important.

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Turnaround and Change Management: Do Not Waste a Good Crisis

poka-yoke, mistake proof, fail proof, drugs, embeda, lean, six sigma, cost to recover a customer, customer recovery function, customer service, customer solutions, loyalty, net promoter score, private equity, turnaround, ebitda, free cash flowI’ve been part of several turnarounds and have led a few in my short career. One thing that I’ve learned is this: one cannot underestimate the people-side of a turnaround.  In fact, it’s very likely that your turnaround will fail, if your people aren’t with you.

poka-yoke, mistake proof, fail proof, drugs, embeda, lean, six sigma, cost to recover a customer, customer recovery function, customer service, customer solutions, loyalty, net promoter score, private equity, turnaround, ebitda, free cash flowI’ve been part of several turnarounds and have led a few in my short career. One thing that I’ve learned is this: one cannot underestimate the people-side of a turnaround.  In fact, it’s very likely that your turnaround will fail, if your people aren’t with you.

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Goodbye Customer: Loyalty, Costs, Complexity, and Recovery

poka-yoke, mistake proof, fail proof, drugs, embeda, lean, six sigma, cost to recover a customer, customer recovery function, customer service, customer solutions, loyalty, net promoter scoreGoodbye Customer.

That is sometimes what we say, without knowing the full costs and burden that proposition means on the business.  Ironically, businesses are often unaware that their actions are pushing the customer away while at the same time trying to recover and retain them through expensive customer retention programs.  Metaphorically, this is like pushing the customer away and pulling the customer back — at the same time.  It is no wonder that customers have had enough.

poka-yoke, mistake proof, fail proof, drugs, embeda, lean, six sigma, cost to recover a customer, customer recovery function, customer service, customer solutions, loyalty, net promoter scoreGoodbye Customer.

That is sometimes what we say, without knowing the full costs and burden that proposition means on the business.  Ironically, businesses are often unaware that their actions are pushing the customer away while at the same time trying to recover and retain them through expensive customer retention programs.  Metaphorically, this is like pushing the customer away and pulling the customer back — at the same time.  It is no wonder that customers have had enough.

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Poka-Yoke Pharmaceuticals

poka-yoke, mistake proof, fail proof, drugs, embeda, lean, six sigmaKing Pharmaceutical (NYSE: KG) recently had a drug approved by the Food and Drug Administration (FDA).  Their drug, Embeda, has an interesting property: If you take the medication as prescribed, it works fine; if you abuse the medication, it ceases to work.  This is Poka-Yoke (ポカヨケ) for Pharmaceutical drugs.

poka-yoke, mistake proof, fail proof, drugs, embeda, lean, six sigmaKing Pharmaceutical (NYSE: KG) recently had a drug approved by the Food and Drug Administration (FDA).  Their drug, Embeda, has an interesting property: If you take the medication as prescribed, it works fine; if you abuse the medication, it ceases to work.  This is Poka-Yoke (ポカヨケ) for Pharmaceutical drugs.

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Unappetizing Spaghetti Diagrams

spaghetti diagram, healthcare obama plan, democrat plan, lean, six sigmaA Spaghetti Diagram is a simple visual tool to demonstrate the flow of material, flow of information, and flow of money in a process. The word “spaghetti” is descriptive because it describes flow that is not easily understood, can’t easily be followed, or if the flow is literally all over the place.  Indeed, a Spaghetti Diagram represents a point-of-departure: what does the current state look like and what are the exact improvements we need to make?

spaghetti diagram, healthcare obama plan, democrat plan, lean, six sigmaA Spaghetti Diagram is a simple visual tool to demonstrate the flow of material, flow of information, and flow of money in a process. The word “spaghetti” is descriptive because it describes flow that is not easily understood, can’t easily be followed, or if the flow is literally all over the place.  Indeed, a Spaghetti Diagram represents a point-of-departure: what does the current state look like and what are the exact improvements we need to make?

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Business and Garden-Variety Defects

life is like a garden, lean thinking and gardening, root cause analysis, six sigmaWorking in the garden can teach us a lot about the natural course of plants, trees, and weeds.  Indeed, there are many corollaries between weeds in the garden and defects in a business setting.  What can we learn from the natural world that are applicable in business?

The Garden is the Gemba

life is like a garden, lean thinking and gardening, root cause analysis, six sigmaWorking in the garden can teach us a lot about the natural course of plants, trees, and weeds.  Indeed, there are many corollaries between weeds in the garden and defects in a business setting.  What can we learn from the natural world that are applicable in business?

The Garden is the Gemba

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Amazon and Zappos Sitting in a Tree

amazon.com acquires zappos.com, tony hsieh, customer service, jeff bezos, interviewAs most you know by now, Zappos has entered into a definitive agreement with Amazon.com and will become a wholly owned subsidiary of Amazon.  This is exciting and, after speaking with my friends both at Amazon and at Zappos, they are all quite excited too.  Congratulations to Amazon, Zappos, Tony Hsieh, and Jeff Bezos 1  2  3  4  5  6  7  8  9.

amazon.com acquires zappos.com, tony hsieh, customer service, jeff bezos, interviewAs most you know by now, Zappos has entered into a definitive agreement with Amazon.com and will become a wholly owned subsidiary of Amazon.  This is exciting and, after speaking with my friends both at Amazon and at Zappos, they are all quite excited too.  Congratulations to Amazon, Zappos, Tony Hsieh, and Jeff Bezos 1  2  3  4  5  6  7  8  9.

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The Source of Dirt

In Amazon’s 2008 letter to shareholders, Jeff Bezos shares about a Kaizen event he participated in:

At a fulfillment center recently, one of our Kaizen experts asked me, “I’m in favor of a clean fulfillment center, but why are you cleaning? Why don’t you eliminate the source of dirt?”

I’ve spoken numerous times about Bezos on Lean Thinking, some of which are here, here, here and here but there are many more — just browse shmula.

In Amazon’s 2008 letter to shareholders, Jeff Bezos shares about a Kaizen event he participated in:

At a fulfillment center recently, one of our Kaizen experts asked me, “I’m in favor of a clean fulfillment center, but why are you cleaning? Why don’t you eliminate the source of dirt?”

I’ve spoken numerous times about Bezos on Lean Thinking, some of which are here, here, here and here but there are many more — just browse shmula.

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