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:
Freedom within Framework
A fence keeps us safe from harm – often, from harming ourselves and from harming others. In deployments of Lean Thinking at organizations, the principle of Freedom within Framework describes our approach well.
Disambiguating the Fence
A fence can be understood a few different ways:
- A Silo: A fence marks “mine” from “yours”. This is NOT what we are talking about.
A fence keeps us safe from harm – often, from harming ourselves and from harming others. In deployments of Lean Thinking at organizations, the principle of Freedom within Framework describes our approach well.
Disambiguating the Fence
A fence can be understood a few different ways:
- A Silo: A fence marks “mine” from “yours”. This is NOT what we are talking about.
In Their Natural Environment
I scheduled a meeting this week and a room for our meeting. During the course of our conversation, we began to discuss process and other items related to the their work. Gratefully, I had enough awareness to stop the conversation and we, as a team, walked out to the Gemba and continued our discussion there.
I scheduled a meeting this week and a room for our meeting. During the course of our conversation, we began to discuss process and other items related to the their work. Gratefully, I had enough awareness to stop the conversation and we, as a team, walked out to the Gemba and continued our discussion there.
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.
Shining Metal Pointing Direction
Hoshin 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 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.
Why Transformation Efforts Fail
Transformation or Change efforts sometimes fail. In fact, the numbers are staggering – most of them fail. While the root cause is wide and varied, there are general themes or characteristics that are important to keep in mind in your own transformation efforts. Think of these as symptoms also — that a failure is around the corner if you see these characteristics creeping-up or, better yet, you can course-correct if there’s still time.
Transformation or Change efforts sometimes fail. In fact, the numbers are staggering – most of them fail. While the root cause is wide and varied, there are general themes or characteristics that are important to keep in mind in your own transformation efforts. Think of these as symptoms also — that a failure is around the corner if you see these characteristics creeping-up or, better yet, you can course-correct if there’s still time.
Respect for People, Underutilized People, and Waste
The 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.
The 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.
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.
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.
