six sigma
Cost Savings for a Fortune 500 Company
Cummins Inc.1 reported their Q4 2009 earnings call today. In that call, they reported a cost savings of over $500MM due to their emphasis on Lean Thinking and Six Sigma. In the words of Tim Solso, Chairman and CEO of Cummins Inc:
Cummins Inc.1 reported their Q4 2009 earnings call today. In that call, they reported a cost savings of over $500MM due to their emphasis on Lean Thinking and Six Sigma. In the words of Tim Solso, Chairman and CEO of Cummins Inc:
Lean Thinking and the Amazon Kindle
I receive emails from recruiters – frequently. So, as a favor to them, I am posting a job for your interest: the hiring company is Amazon.com.
Below is one job description and contact information, but if you go to the Amazon.com website, there are over 50 open positions looking for people with experience in Lean Thinking and Six Sigma.
I receive emails from recruiters – frequently. So, as a favor to them, I am posting a job for your interest: the hiring company is Amazon.com.
Below is one job description and contact information, but if you go to the Amazon.com website, there are over 50 open positions looking for people with experience in Lean Thinking and Six Sigma.
Turnaround and Change Management: Do Not Waste a Good Crisis
I’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.
I’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 Pharmaceuticals
King 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.
King 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.
Unappetizing Spaghetti Diagrams
A 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?
A 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?
Business and Garden-Variety Defects
Working 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
Working 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
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.
Process Bloat, a Hidden Indigestion
The Hidden Factory is a term that refers to activities in an operation that were not designed into it, but grew over time as workarounds for the current process. Most organizations have some form of a Hidden Factory and being able to “see” these hidden factories in an organization requires learning to see what waste is and understanding that waste in any operation — service or manufacturing — can be a substantial drain on the bottom line, top line, on employee morale, shareholders and, most importantly, the customer.
The Hidden Factory is a term that refers to activities in an operation that were not designed into it, but grew over time as workarounds for the current process. Most organizations have some form of a Hidden Factory and being able to “see” these hidden factories in an organization requires learning to see what waste is and understanding that waste in any operation — service or manufacturing — can be a substantial drain on the bottom line, top line, on employee morale, shareholders and, most importantly, the customer.
Customer Service and the iPhone
related update
In some organizations, the Customer Service function is largely viewed as a cost center, draining resources of the firm. I maintain that this viewpoint is largely false and is one that less mature companies support. I believe that Customer Service is an accurate litmus test of the overall health of the firm — indeed, Customer Service can play a very strategic role in the overall health of the product, service, and Firm.
related update:
In some organizations, the Customer Service function is largely viewed as a cost center, draining resources of the firm. I maintain that this viewpoint is largely false and is one that less mature companies support. I believe that Customer Service is an accurate litmus test of the overall health of the firm — indeed, Customer Service can play a very strategic role in the overall health of the product, service, and Firm.
The Atomic Rules of Kaizen
Systems that are internally consistent and externally pragmatic stem from just a few rules. Systems with exceedingly many rules typically fail or will not endure. For example,
- Most mathematical truths stem from just a few axioms
- Music stems from just a handful of finite notes
- Most Martial Arts stem from a few principles of angle, attack, force, etc.
Systems that are internally consistent and externally pragmatic stem from just a few rules. Systems with exceedingly many rules typically fail or will not endure. For example,
- Most mathematical truths stem from just a few axioms
- Music stems from just a handful of finite notes
- Most Martial Arts stem from a few principles of angle, attack, force, etc.
