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.
Emergency Room (ER) Wait Times
The Emergency Room plays a vital role in patient care and plays an important role in communities and society. According to the CDC, there were 119.2 million visits to the Emergency Room in 2007 1. Indeed, the demand for emergency room care is great.
The Emergency Room plays a vital role in patient care and plays an important role in communities and society. According to the CDC, there were 119.2 million visits to the Emergency Room in 2007 1. Indeed, the demand for emergency room care is great.
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.
Goodbye Customer: Loyalty, Costs, Complexity, and Recovery
Goodbye 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.
Goodbye 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 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?
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.
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.
