peak-productivity-onfah

Alignment: Right Person, Right Role

Thu, 25 Jan 2024 15:29:31 GMT

The impact of placing the right person in the right role is nothing short of transformative - both for them and the organization. It aligns with the aspirations of lean, which continually reminds us to promote respect for people as they are the cornerstone for success. If done correctly, it will breed success.

Alignment with Goals:

Align roles to support your ongoing production goals. This involves defining deliverables, expectations, and what constitutes good versus bad results for the organization, department or value stream. Ensure that targets are set properly so that global results are always prioritized over local ones. It's always good to apply a synchronous mindset when designing work-rules to ensure that functional areas understand "the goal" of the organization.

Lean for Job Placement:

Look at your needs from a lean mindset. Be willing to remove any waste that stands in people's way. There should be no grey area they have to contend with. Provide a clear understanding of who owns what, who defines the standards and what responsibility each role has in designing and maintaining your processes. This should be done for standard and abnormal operations - who is expected to provide support when issues occur and what is done to resume standard operations. Defined handoff processes for abnormal conditions are critical and should not be left to chance.

Right Person / Right Position - A Baseball Analogy:

We should recognize that different team members bring unique skill sets which allow them to excel at various positions. Understand that all engineers or managers are not alike - what do you need from each role to be successful? This is crucial. Too often we bring in many short-stops (either because we were a short stop or the boss likes short stops) and don't have enough pitchers to be successful. Some people are better at following standards, some at creating standards and some are better at problem solving. Some are very experienced and some are green. You should assemble your team much as a baseball coach - so that each person can contribute according to their skills. Ultimately they should be put in a situation where they can be successful. That is your most important job - to give your people a reasonable chance to be their best.

Also like a good manager, you should anticipate scenarios and develop predefined reaction plans to ensure a standard and proactive approach to the challenges that will occur. Everyone needs to know what their role is if there are two outs, and the ball is hit to them. Anticipation of "What-If?" and coordination of responses will ensure success and promote winners.

Selecting the Right Coach:

Choosing the right leader to guide your team is a critical component. Leaders who can coach, teach problem-solving, and foster a learning organization environment create a foundation for continual success. This involves an emphasis on transparency, fact-driven decision-making, frequent feedback through Gemba walks, and tailored development plans according to the needs of their individual players.

Placing the right persons in the right roles is one of your most important jobs. By embracing lean thinking, streamlining responsibilities, and aligning with the principles of a learning organization, businesses can build teams that not only meet but exceed expectations. It's about creating an environment where individuals flourish, contributing their unique strengths in developing a culture of continuous improvement. After all, success is not just about the destination, but the journey.

Gemba Misconceptions

Thu, 18 Jan 2024 11:22:56 GMT

Have you ever asked someone to explain the concept of Gemba? If you ask for specific details about the Gemba, like who should go to the Gemba, and when to go to the Gemba, did you find variations in their answers? If you push the discussion deeper and ask about the individual’s experience with Gemba, like when they go to Gemba, how long they stay, and what is their purpose for going to the Gemba, what answers did you get? I find that opinions on Gemba can vary a lot from person to person which brings me to the topic for this blog. I want to debunk a few of the misconceptions about it.

1. Virtual is equal to or better than Gemba.

To me, the term virtual refers to a source from which information and data are pulled. The information is usually gathered remotely from the place where the data is generated, it typically gives little detail or information about the data and is used widely across most companies because of the ease of capturing, compiling, and reporting it to peers and management. On the other hand, Gemba is the location where work occurs and provides organizations with a large amount of information about the real-time status of their processes. It requires your time and energy to go and observe, provides tons of details and facts that contribute to the data captured virtually, and is usually seen as the last resort for information due to its remote location from the offices. In other words, virtual is almost always the opposite of Gemba. Don’t misunderstand there is a time and place for virtual. Reports can be easy to generate and can be very helpful in forming an initial understanding of a problem, and meetings that discuss the ideas, plans, and solutions of those issues are needed. However, complete dependency on a virtual approach can present a skewed perspective, which can lead to decisions based on incorrect or incomplete information. The delay in receiving reports, potential biases in data reporting, and the inherent risk of misinterpretation all contribute to a gap between data analysis (virtual) and reality (Gemba).

By placing more importance and emphasis on Gemba, you form a foundation built on the intimate nuances and details throughout the entire value stream. It is the source where data originates and as such it should be the filter that all virtual sourced information is checked. This filter eliminates the risk of confusion, incompleteness, and inaccuracy that occurs due to the gap between the data and reality. The misconception that virtual is equal to or better than Gemba needs to be guarded against. When people believe it, the tendency to rely on the virtual grows stronger since it is easy to obtain, very abundant, and can help build the case for wrong decisions and solutions. When given the choice between Gemba or virtual, select Gemba, so the decisions and solutions generated from the information may help to address and improve problems in Gemba.

2. Gemba is the shop floor.

How many times have you heard someone talk about going to the Gemba, which was code for the shop floor or manufacturing area? A lot of people use the term to define a very narrow space that includes only the parts of a process that physically transforms the product into a finished good. The problem with that limited definition is it ignores every process necessary to support Gemba. All other “support” processes like order entry, procurement, planning, scheduling, shipping, engineering, accounting, or hiring of new employees get excluded. This in turn limits the ability of an organization to make deep systematic changes that can bring enormous improvement to the business. I find the limited definition infuriating because it implies the shop floor is the only place that has problems that need to be uncovered and observed. I can say from years spent in many industries, that some of the biggest problems organizations face are not on their shop floors but instead reside in processes that are housed in cubicles, meeting rooms, and offices. Processes that are seen as untouchable or infallible, but when cracked open and observed contain numerous issues that without correction will never allow an organization to truly improve. This means the chances of generating significant cost savings and value-adding improvements from a Gemba focus would be close to 0% with this approach. So, the next time someone refers to the Gemba in that way, take the opportunity to explain the rich depth of knowledge that can be gained from the true Gemba. Gemba that moves and includes the place where ALL work takes place.

3. Any time spent at the Gemba is a Gemba walk.

Due to the size, location, equipment, products, and people needed, it becomes impossible to move the Gemba into your office or meeting space for observation. Instead, we must walk out to the process by taking a Gemba walk. Once again, a lot of people are misled to think anytime they leave their office and go into another area they have gone on a Gemba walk, which is not correct. Gemba walks are not performed to provide social interactions for management and the front lines (shaking hands and giving out accolades), handling specific problems or issues (safety concerns, production shortages, equipment breakdowns), or even daily management walks focused on understanding the current metrics, misses, and quick response to issues. All of those are important, necessary, and beneficial functions that team members and management perform throughout the day, but they shouldn’t be counted as Gemba walks. Gemba walks provide time to watch and listen, to question and observe, to reflect, and to form hypotheses and theories that can be tested. They're not rushed, and they don’t have a preset agenda or outcome. Because Gemba is a powerful tool and concept many organizations set goals for managers regarding the amount of time they should spend there. Even when time is available and used for a Gemba walk, once out of the office it can quickly turn into a management walk. This doesn’t mean you don’t try to make time for Gemba, but we need to be honest about the time we spend there and the outcome of the time. Once we see that reality, we can then work to create a plan to achieve both the management walk and the Gemba walk.

Remember, as continuous improvement leaders we stand at the precipice of decision-making, and Gemba must be the beacon that guides us. Gemba is not just a place or a concept; it's a philosophy that beckons us to transcend the confines of a hands-off approach(virtual) and embrace reality (Gemba). In our pursuit, let’s not lose sight of the profound wisdom it imparts. With its invitation for us to immerse ourselves in the heartbeat of ALL operations, we can find a profound understanding of the value creation so decisions that shape the destiny of the organization are based on reality!

Feedback Loops => Error Reduction

Thu, 28 Dec 2023 15:50:53 GMT

If you are like most organizations, you have too much rework and/or defects. It should come to no surprise that most processes do not have good standardized work. In theory, this should be very easy to see and deal with, but other things tend to consume our time. As a result of bad quality, we have to make more to meet demand or stop what we're doing and fix something. This puts us behind pace and have to throw more resources to catch up. In some value streams, poor quality can go undetected until much later downstream.

In some cases, final quality is hidden from view until right before packing! These firms use inspection only at the end of the process as a catch-all and pay the price. Poor quality moves unnoticed as it travels the value stream, adding significant costs along the way until they decide to deal with it.

In their groundbreaking HBR article, "Decoding the DNA of the Toyota Production Systems", @Steven Spear and @H. Kent Bowen clearly laid out four rules that simplify lean philosophy at Toyota. Rule 1 discusses the requirements needed for each activity, which we commonly refer to as standardized work. It states that if the activity is completed as specified, the good or service will be defect free. Rule 2 is concerned with the connections between suppliers and customers. Ideally, they should be direct and have clear communication to send requests and receive responses. Rule 3 deals with defined flowpaths and Rule 4 shows how to go about making continuous improvements.

Most people who come to work want to do a good job. The people on the front lines take a lot of pride in the quality of the work they do. Nobody wants the fear and drama that goes with making poor quality. In the absence of good feedback, they will default to what their ego tells them - and assume that they are doing things correctly. The defects and rework all over the place are the result of others not performing the work properly. Afterall, if there were causing bad quality, wouldn't their supervisor tell them?

The sad truth is, most workers live in a world of limited feedback. On your next gemba walk consider asking the following questions:

"What is your quality reject rate?"
"What is your yield compared to other operators?"

Unfortunately, we often treat our workforce as if they are fragile and we won't give them the information needed to get better. This is a lack of trust that should be corrected. Somewhere along the line we have allowed the "blame game" to enter our management philosophy and connected bad quality with bad people. This is incorrect - bad quality is a result of poor processes. And what about poor processes? They are a result of bad management practices and thinking.

Lean thinking means we respect people by making sure that time spent at work is productive. We show that we value their time by making sure that our processes are sound. When issues occur, we need to assume there is a gap in our processes that needs correcting. It is not a who, it is a how.

If your standardized work is not good enough, then you can adjust your Rule 2 thinking to compensate for it. Often you will know it by hearing certain words in your training program like "skill-level", "technique" or "feel". These are indications that your process is not robust and relies on people NOT making mistakes. In these cases, feedback is probably needed. It should be immediate, clear and provided 100% of the time. It is a countermeasure for the gaps in your Rule 1, and will prevent many larger problems from developing later on.

The better, quicker and complete the feedback is - the faster improvements can happen. You need to be transparent with the workforce. I cannot stress enough that when good workers know that they produce bad quality, they become engaged, and take the initiative to find out how to do better.

I once worked in a process that had extremely tight quality requirements. A consequence of that, coupled with challenges in process control led to high defect rates. Over time, an entire team was added that only performed rework operations. Unfortunately, their success rate was very poor, resulting in multiple rework loops for many products. Delivery and excessive labor costs were continual challenges. Management assigned a team to create an A-3 to reduce the multiple rework loops. We quickly discovered that no operator knew their pass/fail rate. Each of them recognized that things were bad, but didn't understand their contribution to the overall problem. They all assumed it was the other guy who created the problem. No reflection meant no changes. When we provided them with their individual high reject rates - they quickly told us to provide them a better way to know if they'd performed the work correctly. In addition, we ran a few experiments and determined that our rework process wasn't optimal. We changed the flow to correct the process and added feedback immediately after performing their work 100% of the time. Within a week, multiple rework loops were virtually eliminated.

Your process is your hypothesis. Each cycle is a test. Explain the expectations why following the standard work is vital. When issues arise seek to correct or fix your processes so that people can once again follow the standardized work. Simple PDCA - Plan, Do, Check, Act.

Without feedback, improvement is so difficult to accomplish. The journey towards lean and a culture of continuous improvement begins with acknowledging the importance of standardized work and respecting people enough to provide them meaningful and actionable feedback. Trust in your team's capabilities, empower them with direct knowledge, and watch as the ripple effect of positive change transforms your processes. Remember, it's not about pointing fingers; it's about refining how we work together.

Value Focused Insight - Challenging Assumptions and Conventional Wisdom

Thu, 21 Dec 2023 15:31:58 GMT

There are many advantages for organizations that have long-time employees. They can bring stability, knowledge, and understanding of the business’ organizational culture and they also have first-hand experience of their day-to-day processes and the products produced. While there are many great things associated with long-term employees, there is one potential pitfall that needs to be acknowledged and watched for. Continue reading this week's blog to learn what the pitfall is.

There are a lot of advantages for organizations that have long-time employees. They can bring stability, knowledge, and understanding of the business’ organizational culture and they also have first-hand experience of their day-to-day processes and the products produced. While there are many great things associated with long-term employees, there is one potential pitfall that needs to be acknowledged and watched for: this pitfall is accepting conventional wisdom and old assumptions that may no longer be, or may ever have been, true.

We can easily get caught up in accepting and blindly following “the way” things are done. Remember, a lot of our wisdom and assumptions are based on the culmination of all our learned experiences, memories, and knowledge. But as our world, processes, products, and people are always changing, we must continuously scrutinize the best practices of yesterday against the current environment to ensure they are still the best practices. Failure to do so leads to a potential trap of problem-solving and decision-making based on subjective ideas of what we think is true versus what is objectively true. When we surrender sound scientific and problem-solving methodology to subjective thinking and ideas of one's conventional wisdom, we open the door to wrong decisions and actions. Instead, we should listen to the thoughts and opinions of team members while keeping a watchful eye on data and PDCA to flush out the correct assumptions and knowledge from the incorrect ones.

Which do you use? Do you take what people tell you as a fact because they are experienced, well-trained, and can provide historical stories of years gone by? Do you take the time to discuss observations, data, and details with a cross-functional team in order to ascertain the facts? Remember, the goal is to challenge assumptions, opinions, wisdom, and common sense through hypothesis testing to move toward fact-based decisions that lead to positive growth for the customer and business. The testing may lead to checking the current condition data against those assumptions or it may include team-based observation to validate that the assumptions from a year ago are still true today. Whatever the test includes, remember, at the end of it you will be left with a deeper understanding that can help to form new opinions and develop better assumptions that improve the organization.

Having people who are experienced and knowledgeable is a wonderful asset and a strategic advantage for a company, but just make sure to ask questions to challenge all assumptions and opinions in order to make sure the time, energy, and resources spent on problems and problem-solving is focused on the right things. Things change over time, which means our conventional wisdom and perceived assumptions should as well. So, if you still think the same thing you did 3 years ago, it may be time to challenge the thought, assumption, or wisdom. What you think may be correct, or it may need to be modified.

I hope you are enjoying this series from Peak Productivity. If you have any questions or additional thoughts about it, please share them in the comments section.

Value Focused Insights - If I Could Ask the Right Question...

Wed, 13 Dec 2023 14:11:08 GMT

Imagine this scenario: your workplace receives a substantial order, demanding a 35% increase in production for a continuous six-month period, commencing at the end of the next quarter. The knee-jerk reaction for many organizations is to dive headfirst into hiring, adding shifts, and equipment. However, is this the most strategic move, or merely a countermeasure that might lead to a slew of unforeseen challenges?

If I Can Ask the Right Question…

Introduction: Imagine this scenario: your workplace receives a substantial order, demanding a 35% increase in production for a

continuous six-month period, commencing at the end of the next quarter. The knee-jerk reaction for many organizations is to dive headfirst into hiring, adding shifts, and equipment. However, is this the most strategic move, or merely a countermeasure that might lead to a slew of unforeseen challenges?

Avoid The Rush to Action: Urgency is good, panic is not. Breathe. Take a moment to understand the problem. When confronted with a surge in demand, the instinctive response is to jump into action—hire more people, order more equipment, add shifts, and whatever else can increase production capacity. It's like launching into battle without a comprehensive strategy. In the haste to address the immediate need, organizations often overlook a crucial step—understanding where cheap and easy opportunities exist in their current processes.

Countermeasure vs. Solution: Adding a shift or hiring more personnel is really more of a countermeasure, not a great solution. It's akin to treating the symptoms without diagnosing the underlying ailment. A reactive hiring frenzy will only bring its own set of challenges that will need to be addressed eventually. Ramping up with new employees quickly introduces risks of bad quality, safety concerns, how to properly train them while maintaining existing production needs, and the list goes on. What are you going to do with them once you've fulfilled that order? I get it, your boss wants an action plan tomorrow morning…. However, it's frankly bad leadership/management to just kick the can down the road if better alternatives exist that you can take today.

System Thinking: Your production process is a system, and like any system, it really requires a holistic perspective. Its design creates behaviors to support it and actions have consequences, both intended and unintended. Systems thinking mandates not only examining the probabilities of success/failure but also evaluating the potential unintended consequences of actions. Before making a move, it's crucial to consider how each action might reverberate through the entire system. Think of how a potential hiring strategy would impact your metrics. On the plus side, you will generate some incremental output. However, your costs, quality, safety and morale will suffer as a result. Perhaps worse, your entire organization will be consumed with implementing (and the consequences of) this countermeasure and not working on continuous improvements. There are often better options available if you are willing to look.

Leverage Points: In systems thinking, the focus should not be on the local view. It involves identifying global issues such as bottlenecks in your flow, design flaws, conflicting rules, or faulty paradigms and attacking them. If you don't have a good Value Stream Map already, consider developing one today or at least a solid A3 for your specific problem at hand. I suggest thinking of the exercise as generating an inventory of your waste. This will help to identify the real constraints within your system. These are the leverage points that, when addressed, can often lead to substantial improvements in overall performance. It's about finding the sweet spots in the system, the areas where a targeted intervention can create a ripple effect of positive change throughout your entire organization. The idea has been around for quite some time. I'm sure most of you are familiar with this famous quote by Archimedes:

"Give me a lever long enough and a fulcrum on which to place it, and I shall move the world."

That's what we're looking for - the right solution applied at just the right spot for maximum impact to the entire value stream.

Asking the Right Question: Let's say you already have a VSM. It reveals that 50% of your total installed capacity is lost during changeovers. Perhaps you can focus efforts on reducing some of this downtime and unlock substantial latent capacity without hiring. This might involve something as simple as tweaking run rules, streamlining processes, or adopting other innovative solutions. There might be some combination of actions that cost next to nothing compared to the time or cost required for new hires but produces the same results. In this case you've impacted output without negatively burdening quality, safety or cost at the same time. Often asking the right question allows you to come to a better solution - one that doesn't detract from achieving your other goals. At worst, you could reduce some portion of additional headcount needed.

Conclusion: The next time a large order lands on your doorstep or you need some quick improvement, resist the temptation to jump into immediate action. Instead, take a moment and determine if a better solution exists. Uncover the constraints and strategically use them as leverage points within your existing processes to address operational waste in a manner that doesn't play one metric against the others. As my old boss used to say, "If I could ask the right question, I could solve for all the metrics simultaneously". This approach not only avoids the pitfalls of hasty expansions but sets the stage for sustainable growth and continuous improvement. Need help with a similar issue? Please reach out to us.

Value Focused Insight - Respect for People

Thu, 07 Dec 2023 15:27:26 GMT

Today, companies face a tremendous challenge with staff shortages which should remind companies that people, specifically their employees, are the most valuable resources. Replacing or backfilling vacancies is a long and arduous process with the result not always guaranteeing a great match between the company and the new hire. Companies willing and eager to invest in their employees and appreciate their value and contributions to the company can turn the company-employee relationship into a “win-win”.

Today, companies face a tremendous challenge with staff shortages which should remind companies that people, specifically their employees, are the most valuable resources. Replacing or backfilling vacancies is a long and arduous process with the result not always guaranteeing a great match between the company and the new hire. Companies willing and eager to invest in their employees and appreciate their value and contributions to the company can turn the company-employee relationship into a “win-win”.

There are so many reasons why a company-employee relationship is severed. An employee may choose to leave an organization due to a relocation, a life-changing event, a better opportunity, better benefits, and pay, or a career path change. In those cases, a company may struggle to prevent the loss of the employee. However, sometimes the root causes stem from an unruly boss, frustration within the day-to-day work environment, or a belief that what they contribute is not valued or needed. Months of an employee feeling undervalued, disrespected, unimportant, and in some cases not heard or seen, lead to the point of resignation. In these cases, it is likely the resignation could have been prevented if we had stopped long enough to do the thing, we naturally do with process problems by diving into the root causes and taking the proper corrective actions to fix the problems.

How do we develop a culture within the company with this level of commitment to their workforce? It begins with embracing the belief that your most valued resource and asset is every single one of your employees, from the CEO to the plant manager, to the security officer, to the intern, to the front-line operator, to the janitor. Rank, age, pay, or seniority must not be the deciding factor on who is respected. Truly, every person is critical and must contribute to making the company, its’ processes, products, quality, and cost, better. However, you can’t just tell people they are respected and empowered to make improvements; this creates chaos, confusion, and loss of process controls. You must demonstrate respect and build systems that empower people.

After embracing the belief that your most valued resources and assets are your people, the second step is to create an environment that works in ways that remove frustrations and obstacles while providing opportunities for growth and continuous improvement by and for the employees.

1. Don’t waste time, energy, or resources on building processes or systems that make work, decisions, or improvement harder . This includes creating workarounds, band-aids, or adding layers of process redundancy. This may be required in the short term to prevent nonconforming products from getting to your customers, but they increase waste and, very often, add frustration among your teams.

The emphasis should be on engaging your teams in good problem-solving which addresses root causes. In doing so, the gains can happen quickly, since more people are working on them, while also providing long-term improvement. Your employees will thrive on the additional information they receive about their jobs, their increased voice in how their work is done, and the new challenges and interactions they can learn from.

2. Don’t allow a culture that accepts indecisiveness or permits subpar quality or processes. Allowing subpar to exist in a company not only creates a less efficient, more costly product or service, but over time, will undermine, permeate, and erode processes and morale in departments across the organization. Most employees are willing to struggle through short-term issues because they know correction of root causes takes time. However, when short-term issues become long-term, both morale and performance suffer. To prevent this, take time to gain the necessary knowledge (from Gemba), then quickly and decisively make the proper modifications. The goal is not to make things perfect, rather focus on small, quick improvements that make it better and better.

3. Design systems that allow for learning and engagement to gain deeper knowledge and understanding . In some cases, we need to allow people and systems to fail, so that through failure people reemerge stronger and wiser. Remember the goal is to have everyone in your company understand basic problem-solving and focus their thinking and knowledge on how to make the work, the products, and the processes better. The focus is not on building workarounds or blaming others.

In my experience, when people are respected, trusted, and valued, they understand they are a part of something bigger than just themselves. Companies can ensure that each team member can learn, develop, and grow into their role by not wasting time and resources developing subpar systems and processes, and not allowing indecisiveness among your ranks. Instead build systems that facilitate learning, engagement, and knowledge transfer by ensuring your workforce continues to build a culture and a longing for real, value-based improvement. How have you seen companies either fail or succeed at building systems and processes that incorporate the workforce into building respect for all its employees via continuous improvement? Feel free to post your thoughts in the comments section.

Value-Focused Insights - Developing a Team-Centric Culture

Wed, 22 Nov 2023 13:14:57 GMT

Great teams make things happen - whether it's pulling a win out at the last minute or beating metrics to save the quarter. Bad teams perform poorly, never seem to "catch a break" and eventually lead to management changes. This is the way.

If you are in responsible for a team - there is no bigger expectation than for you to build it into a cohesive force that wins.

What drives the people in your organization and how does your management behavior influence it?
Do you have a group of individuals that only work together when it's favorable for them or do you have a team that is selflessly focused on collective success?
How do you convert a team made up of "ME-people" into "WE-people"?

How do you get people to be less about themselves and more about the team? Your approach should be one that transcends individual accomplishments, emphasizing the power of a collaborative and team-centric culture. The good news is it doesn't have to necessarily start with your onboarding or selection process. That can easily be adjusted if you aren't getting people with the right values on the team. You can start from where you're at. Let's define how cultivating this mindset becomes a cornerstone for sustained excellence.

What drives the people in your organization and how does your management behavior influence it?
Do you have a group of individuals that only work together when it's favorable for them or do you have a team that is selflessly focused on collective success?
How do you convert a team made up of "ME-people" into "WE-people"?

Beyond HR: Organizational Alignment

Building a team of "WE-people" isn't confined to HR policies; it's a holistic organizational effort. Aligning the right person with the right role requires a strategic blend of skills, attitudes, and cultural alignment. It's an investment in setting up individuals for success within a collaborative ecosystem. Are you pitting people against one another through goals and advancements, or are you creating win/win strategies and celebrating the right behaviors?

Sacrificing Individual Glory for Team Success

Individual achievements pale in comparison to the glow of team success. Fostering a culture where individuals willingly sacrifice personal accolades for the greater triumph of the team creates an environment where everyone is a contributor to the collective victory.

How do you get people to be less about themselves and more about the team? Your approach should be one that transcends individual accomplishments, emphasizing the power of a collaborative and team-centric culture. The good news it doesn't have to necessarily start with your onboarding or selection process. That can easily be adjusted if you aren't getting people with the right values on the team. You can start from where you're at. Let's define how cultivating this mindset becomes a cornerstone for sustained excellence.

Attitude Trumps Skills

While skills are undoubtedly valuable, the right attitude is key and guides individual growth and team success. Initiative and perseverance, integral aspects of one's attitude, often play a more pivotal role than a specific skill set. You can teach skills, but having a proactive and resilient mindset is a far more important in the real world. Pure breeds with great pedigrees are nice to look at, but some dogs just don't hunt. Beware of entitlement.

Organizations in smaller towns often take advantage of great local talent and 2nd generation employees - don't be afraid of being who you are. Common sense, the ability to solve problems in a simple manner, treating people with respect and good character are more valuable within a team setting than who your parents know.

Aligning Individual Deliverables with the Value Stream

For a team to function seamlessly, each member should understand their role within the broader context of the value stream. It's about aligning individual deliverables with the collective objectives - what defines victory. This requires clear communication, defining responsibilities, and ensuring everyone comprehends how their contributions fit into the larger puzzle. Most sports fans will know the expression - "focus your efforts on doing your job." If you haven't sat down and developed this as a management team in detail - how can you begin to know what staffing levels are needed?

Standard Work for Consistency

Consistency in action leads to reliability of results. Establishing good standard work and leader standard work ensures that everyone is on the same page. It provides a roadmap for tasks, deadlines, and expectations. In a team-centric environment, consistency fosters trust and enables each member to depend on their peers. Imagine the choreography and foresight that happens before the pitch and then during a baseball play. Before - every player reviews what they will do if the ball comes to them. During - they execute to the plan. Disciplined adherence to standard work, along with a good PDCA process to improve it through honest reflection and problem solving is vital to a team-first culture.

The Right Personality for the Right Role

Organizations aren't just about skill matches; they're about aligning personalities with roles. If an individual's role demands supporting others, a customer-focus and helpful personality is essential. Avoiding conflicts and ensuring smooth collaboration often hinge on having the right personalities in complementary roles. We need good teammates and coaches who can help, not more critics or those not willing to get their hands dirty. Make sure people can be successful while not having to suppress or fight their personalities.

Nothing is more chaotic as when everyone on the team thinks and acts the same. Ensure your diversity promotes internal / personality differences as well as externals to avoid groupthink. Not everyone should want to be a CEO to make the cut. It's alright to have great individual performers who are happy doing the grind for 25 years. Imagine a team that doesn't rotate every 15 months!

Mindset: A Catalyst for Success

A team-first mindset goes beyond mere cooperation; it's about the eagerness to contribute to something larger. Individuals who find joy in making a difference, who are genuinely interested in their work, and who seek continuous improvement are the linchpins of a thriving team. The right mindset isn't just a predictor of success; it's the engine that drives it. If you've done a good job of designing your organization around team-centric values, people will adjust. In the case of the lone wolf - they might leave, but in my experience, most do come around eventually and become great teammates.

Conclusion: Building a culture where "WE > ME" isn't just a slogan but a way of operating that transforms a group of individuals into a cohesive, high-performing team. The success of each becomes intertwined with the success of all, creating an upward spiral of achievement and satisfaction. In prioritizing the collective over the individual, organizations don't just thrive; they evolve into dynamic entities capable of tackling challenges with unity and resilience.

Value Focused Insights - Stop and Solve

Wed, 15 Nov 2023 20:55:05 GMT

In today’s world of “go, go, go” the idea of stopping is hard to imagine. This same “go, go, go” mentality also applies in the business world. As managers, executives, owners, and employees, we find it difficult to stop, even when it is obvious that we should. This is especially true with defects and the process failures that allow them to occur. In this blog, I will discuss stopping the errors by building processes to prevent defects from getting to the customer.

When a defect occurs is it better to focus on fixing the defect or eliminating the error? Most defects happen because of an error, which may be caused by a machine, material, or person, and may be the result of an omission of a step or doing something incorrectly. With time and resources, you try to salvage the part via repairs or reworks, but what prevents it from occurring? I bet the same issue continues to occur until we address the error, which is why it is vital to eliminate the root cause as soon as possible by stopping and solving the problem.

In my experience rarely do we stop and solve the problem . In fact, stopping the processes is usually seen as a last resort, instead of the first step in corrective actions. We are content for lines to continue running materials and parts, as we add extra people to provide costly inspections and quality rechecks, all with the hope the customer doesn’t receive a bad part. Sometimes that works, and sometimes, even with all the extra effort, poor quality makes it to the customer. However, there are proven ways to break this cycle and save us from defects.

Start shifting from the old motto of “Catch the defect” and move to the new motto “Can’t make a defect” by applying these actions.

When errors and/or defects occur stop the process and investigation . The real-time information gathered helps to determine potential causes that could contribute to the defect. Look at the equipment, raw materials, work instructions, and work orders, along with discussing with the operators, material handlers, inspectors, and others involved to understand the circumstances that led to the error. It takes some time, but the more you follow this pattern of problem-solving, the deeper your knowledge will grow and the quicker you will move to problem resolution and error elimination.
Ask the right question . The question is not how to stop producing defects but rather how to prevent errors. If we only focus on eliminating the defect, we will be stuck in an endless game of Wack-a-Problem. We will focus on moving resources from problem to problem and while some may be resolved, you will find some of the same issues may reappear in the future. As you transition from catching defects to eliminating errors, you will find the number of defects, errors, and line stops will begin to drop as root problems are fixed. Remember, we stop the line, so we don’t have to stop the line. Take the hit on your metrics today, so tomorrow the processes run more efficiently with higher quality and improved metrics.
Design the process so that mistakes can’t be made . This is one of the hardest goals to achieve within a process. I don’t think I have seen one that was 100% successful because processes seem to always evolve or devolve. A process is either developed from a lack of planning and standardization with lots of variation and errors or is designed from the ground up. Over time, shortcuts, poor training, and out-of-date standards can introduce process creep to even the best-designed processes, which in turn increases errors and, thus, defects. If you find mistakes, errors, and omissions happening today, it is time to insert inspections throughout the process that are quick, real-time, and cover 100% of the products. Problems will be highlighted that lead to the detection of defects and errors immediately through poke-yokes, built-in tests, feedback loops, and source inspections. These tools protect your customer from poor quality arriving at their doorstep.

Customers want a quality product, part, and service so building a culture that encourages stoppages in the process when poor quality occurs helps save time, energy, and money for the organization while keeping the customer happy. In this environment, your process will continually improve as your team members move toward problem solvers that not only fix the defect but address the error to prevent future occurrences. The next time you have a quality issue or defects take a different approach by stopping the line and addressing the real issue, the system that allows the error to happen. You will find that stopping is the best way forward.

I hope you enjoyed this blog post and found the information helpful and informative. I would love to hear your feedback, thoughts, and opinions on it.

Value Focused Insights - Facts Over Opinions

Wed, 08 Nov 2023 12:49:01 GMT

Imagine the stakes: a critical issue surfaces in your value stream, threatening quality, flow, and customer satisfaction. The clock ticks, resources deplete, and every moment the problem remains unsolved, your organization is caught in a costly web of workarounds and compromises. It's all hands-on deck to execute quick and effective problem-solving.

So, how does your team meet the challenge and get to true root cause quickly and restore operations back to the normal levels? We'll unravel some common pitfalls —from the blame game, leadership biases and the perilous allure of hearsay and opinions. Join us on this exploration - of why, in your quest for solutions you need to demand a steadfast commitment of prioritizing facts over opinions.

Act: Choose Facts over Opinions

Picture this: an issue disrupts one of your crucial value streams. It's a complex problem, possibly impacting quality, flow, productivity, or safety. Each moment it goes unsolved, resources are drained in workarounds, and the specter of eroding customer credibility looms. Your team has the skills and certifications, but how effective are they in real-world problem-solving scenarios?

Training vs Reality:

Many organizations invest in extensive problem-solving training, earning their team members impressive plaques. But when faced with a real issue, do these teams reach for the tools they've mastered? The gap between training and application often reveals itself when the pressure is on. It's not just about having the tools; it's about using them effectively.

The Discipline Dilemma:

Disciplined problem-solving isn't just a process; it's a mindset. Effective teams follow a disciplined approach, ensuring that the process is not just a formality but a powerful guide. The discipline lies in adhering to a structured path, avoiding shortcuts that might provide temporary relief but fail to address the root cause.

When your business is in chaos - it is not the time to wing it. Show your team that you will stick to your processes and do what you said you would do. Urgency is fine, but abandoning the scientific method and shooting from the hip is not an effective strategy over the long run.

The Mirage of Responsibility:

One common stumbling block is the interdepartmental or functional blame game. Certain leaders or teams may be more concerned with finger-pointing than collaborative resolution. It's not about who's responsible; it's about solving the problem collectively and fortifying the system against future disruptions. Quickly and strongly stamp down this behavior or battle lines will be drawn and disrupt any chance of impartial investigation.

Leadership Biases and Blind Spots:

Leadership plays a crucial role, yet biases and preconceived notions can lead investigations astray. If leadership believes 'X' is the problem, the entire focus might shift, missing the trail of actual clues. Effective problem-solving requires a commitment to follow the evidence, not assumptions. Don't direct on hunch. Make sure your team is following the process - this may require coaching. It's never bad to ask - "How do you know that?"

The Snare of Hearsay:

In the world of problem-solving, hearsay is a dangerous guide. Using it to direct the team is akin to sending them on a snipe hunt — a wild goose chase that wastes time and resources. Real solutions emerge from diligent observation, data analysis, and following the trail of evidence. All relevant data should be confirmed by the team at gemba. Don't let the tail wag the dog on this one.

The Dangers of "I Just Know It Is...":

"I just know it is..." is a phrase that echoes through organizations facing challenges. While intuition has its place, it shouldn't replace a systematic investigation. What seems obvious might be a symptom, not the root cause. Effective problem-solving demands a willingness to question assumptions. Also beware of how your data systems can be a source of fog - this can lead to poor interpretations or used to justify positions. Understand what systems are insufficient and correct them today, before you are forced into dealing with bad data.

Conclusion: Choose Facts Over Opinions

The landscape of problem-solving is intricate, filled with pitfalls and distractions. To emerge successfully, teams must rise above blame games, leadership biases, and the allure of hearsay. Embracing a disciplined, evidence-based approach ensures that problem-solving isn't just a process — it's a journey toward lasting solutions. The effective problem solver doesn't choose to chase shadows; they navigate the trail of facts - evidence to illuminate the path forward.

Value-Focused Insight - Design Efficiency In, Not Waste

Wed, 01 Nov 2023 16:00:00 GMT

In this week's blog, we start a new series from Peak Productivity titled, "Value-Focused Insights - Hard-Learned Lessons from Gemba. In it, I discuss the need to spend the time and energy to create a plan that builds efficiency in the design and layout phase of the process, not remove waste after the equipment, flow, and processes are se t.

Wack-a-Mole, Tetris, or create a plan? Which describes your approach to lean design and layout?

The goal is to design in efficiency, not waste.

A poor design will haunt you for years to come. How often have you seen a company unbolt equipment and move it to provide more optimum flow and efficiency? I have sat in many meetings where equipment movement was discussed with great passion. Discussions around downtime, loss of production, idle employees, customer needs, cost, etc., with a final decision of “No, just make do with the space you have.” In fact, in my career, I have only seen a piece of machinery moved once to provide better flow.

So that brings up the question, how much time and energy are you spending on designing in efficiency and flow to your process? Does it resemble a game of Tetris or Wack-A-Mole? Does anyone have a 5, 10, or 15-year plan that could be used to model the facility's layout? It will not be a perfect plan, but it will be better than just dropping in equipment based on the given available space. If that is the approach then you are doomed to live with a wacky and inefficient flow, lots of inventory, and excessive material conveyance for the life of those machines and products, which could be 20-50 years.

Why do we do this to ourselves? I believe it is in part due to a false belief that we can drive the waste out later. Now, if you are in continuous improvement this sounds like job security until you retire, but it is a hard journey to take because the process will only be as good as the broken layout will allow. Maybe you can design automated conveyance systems while creating kanbans and visual inventory management, but one-piece flow or batch size reduction will be stymied. A bad layout will add significant material handling costs along with operating costs. Since the company cares about cost, you can’t afford to not spend time, energy, and money to create a great layout.

If a company does invest the time upfront to create a plan and layout for the process and equipment, who is involved or leads the plan? Hopefully, the answer is a cross-functional team, but unfortunately, many times the task is delegated to one person: an engineer, a project lead, or the blueprint owner, etc. All these people are very important to a successful layout or design , but a more diverse team is needed to ensure all perspectives are represented and optimized. What about adding a maintenance team member to work on accessibility to the equipment during repairs or TPM work, a line operator to look at operator controls, inventory drop points, and needed tooling, or someone who conveys materials through the area to look for pinch points, maneuverability issues, or staging areas? Also, include an industrial engineer to look at the overall flow of material, people, and inventory through the area. A good check is to review the overall shape that is formed with the flow of materials through the process steps. O, U, L, or Z are always good choices because they don’t require the products or people to backtrack in the process or travel great distances for the next process. If the overall layout looks like a Wack-a-Mole game, more work needs to be done to optimize the layout and design. The better the design and layout the less waste exists in the process which is the goal.

Please post your thoughts and experiences on lean design and layout in the comment section. As always, if you want to learn more information check out more blogs at Peak Productivity.

Value Focused Insights – Hard Learned Lessons from Gemba

Wed, 25 Oct 2023 13:36:33 GMT

There is an alarming statistic that 90% of lean transformations will fail. According to McKinsey, 74% of private-sector business initiatives will not achieve their objectives. In the public sector, similar types of projects can have failure rates as high as 80%.

At best, your next change initiative has around a 70% chance of failure. How do you change the odds in your favor?

Join Peak Productivity as we provide the answers in our upcoming series of articles, entitled: "Value Focused Insights – Hard Learned Lessons from Gemba".

The Reality

These are the complex, large-scale strategic plans we often are a part of in our professional lives. In the beginning, we are all pulled into a large room where we are given promises for all the pain and stress that will be removed from our daily jobs, provided with the customary water bottle emblazed with the approved project name/slogan, and introduced to a fantasy timeline for execution. We are told how everything will be different this time because we are going to be using XXX (insert your favorite buzzword – AI, synergy, deep diving, etc.). On opening day, every fan is excited by the prospect of the coming season. But by the end of that first day, half of us could already be frustrated due to a lack of execution or poor design.

At best, your next change initiative has around a 70% chance of failure. There are a variety of reasons you will not succeed according to the literature. Every organization’s unique problems are clumped together into 4-6 major categories.

It would be helpful to develop countermeasures for these before you begin, but the literature is written at a very high level and not always relevant or actionable. The conclusions are not specific enough to help you because your situation is unique, and the business landscape constantly changes. But you must do something to achieve financial targets, right? So, millions of dollars and resources will be wasted on the next round of inherently flawed programs.

What you need is a way to generate more value, in a manner that is both faster and cheaper. It is often said that you can only have two of the following: FAST, GOOD, CHEAP. That statement is wrong – it is possible to have all three simultaneously. You will need to think differently about your problem. Even then, it’s not always easy to do. Good news, there are those who know how to crack the code.

The Decision

With that issue in mind, Peak Productivity decided to introduce a new series of articles/blogs to provide help on how you can supercharge your improvement initiatives. We will let you in on how to generate multiple returns in value and do so on a budget – both in time and money.

These are not just simple guides to follow; they are the blueprints, the profound lessons, the secret sauce, the "aha" moments, and the best tactics/strategies that we have either developed or learned from some very smart people over our 50 years of collective lean working experience. In this series, we will explore lean thinking and improvement scenarios through the PDCA lens, providing you with these best practices, shortcuts, hacks, and force multipliers that have consistently delivered value.

Our goal will be to communicate the deeper level lessons in a way that you can use them effectively today, but without having to spend many years on practice or reflection. We hope to do so in a manner that clearly delivers both fundamental and actionable knowledge for you but allows you to retain the inherent humility that comes with time.

Plan

In the "Plan" phase, we start by unraveling how to generate value through stability. One higher level goal is we want to always support our customers. What better way than to develop stable and robust processes that will consistently achieve the needs of our customers? Everyone has internal and external customers – we need to understand how to effectively meet all demands and requirements, 100% of the time. To achieve that, we will develop hypotheses about our processes. Some of the higher level needs to be addressed will be reliability, quality, flow, and system designs.

In the course of fulfilling demand, we will need to continually test our hypotheses. Normal variation and randomness will identify weak points in our systems and create fluctuations in output. To counteract this, we must introduce strong people systems to support our "Do" phase, to effectively react and counter for standard deviations. It's more than just introducing concepts like backing-up someone; it's about developing the chemistry and understanding the unique dynamics that transform a group of individuals into a high-performing team.

How and when do they react to adversity?
What is the standard approach to reduce overcorrections?
What is my deliverable?

We will explore detailed strategies for fostering engagement, initiative, collaboration, and a shared commitment to lean excellence. We must uncover the subtle yet powerful elements that enable meaningful cultural shifts. These will become magnified when working across functional and organizational boundaries.

Check

As we transition into the "Check" phase, speed of execution becomes our focus. But it isn't just about speed; it's about integrating seamlessly with the “Do” systems for impact. Understand how an action-biased approach, coupled with a strategic sense of urgency, accelerates learning and the improvement process. Dive into strategies for swift, effective tests that stand up to scrutiny. Every data point comes at the cost of valuable resources. We need to make sure our processes can take advantage of and learn from every cycle.

It is vitally important not only to know when to react, but also when NOT to react. Knowing what we think we know is true – testing it to make sure that it is still valid. We need to respect the process, but not be afraid to grab the reins when needed to keep it under control.

Act

In the "Act" phase, we unveil the lessons of leverage. It's not just about implementing solutions; it's about strategically placing them for system level leaps in effectiveness. We will explore how targeted improvements, when strategically applied, create a ripple effect, multiplying their impact across the entire value stream.

Staying within the "Act" phase, the focus shifts to the Lean Innovation Process. Discover how to foster an environment where experimentation is not just encouraged but becomes the lifeblood of your lean journey. There is no end to improvement, and we should never rest on our laurels. Learn the art of embracing failures as opportunities for learning and growth. And always make sure you cross the finish line and don’t get distracted with the next thing too early.

Conclusion

As we discuss the power of these lessons, we invite you to not just read but to engage, reflect, and apply. Each lesson has been tested in the real world and stood up to the challenge. Stay tuned for the first installment.

We appreciate feedback. Please share your thoughts and experiences related to these upcoming lessons in the comments section. Let's build a dynamic repository of insights and wisdom that contributes to the collective understanding of lean principles and continuous improvement. Stay tuned for a series that promises not just knowledge but actionable strategies for transforming your Lean journey.

Conclusion of Embracing Slower Times: Building Resiliency for Long-term Success

Mon, 23 Oct 2023 12:57:11 GMT

Over the last few months, Tim Upchurch and I have shared blogs that we hoped would help you understand that slowdowns in your business are opportunities to drive improvements, so you not only weather the storm but emerge faster, more agile, with higher quality, and lower cost. Remember, while it may seem sensible to immediately cut expenses such as excess labor, overtime, major repairs, and delay capital expansions, this short-term strategy can cost your business in the long run by alienating your customers. You may struggle to meet the new lower levels of demand for several key reasons including absenteeism, time to backfill, and fear of layoffs.

Over the last few months, Tim Upchurch and I have shared blogs that we hoped would help you understand that slowdowns in your business are opportunities to drive improvements, so you not only weather the storm but emerge faster, more agile, with higher quality, and lower cost. Remember, while it may seem sensible to immediately cut expenses such as excess labor, overtime, major repairs, and delay capital expansions, this short-term strategy can cost your business in the long run by alienating your customers. You may struggle to meet the new lower levels of demand for several key reasons including absenteeism, time to backfill, and fear of layoffs.

At Peak Productivity, our perspective holds true for times of great demand or low demand and include

· Value is always king.

· Build resilience for all business environments.

· Continuously strive to improve your Value/Cost ratio. If demand is high, focus on delivering value and if demand is low, focus more on harvesting value.

In our blogs, we enjoyed discussing tips, insights, and recommendations on various lean and continuous improvement tools to deploy. When applied correctly they will drive needed improvements and lead to the future growth of your business.

Here’s a quick recap of each tool we highlighted with a short summary. You can find all these blogs on @Peak Productivity LinkedIn page.

1. How to Run at Lower Demand – When your demand for goods or services slows there are a few key points to think about. How do you protect the customer to make sure that you still meet their necessary demands and specifications? Are you running limited lines at the standard rate instead of running all lines below the standard rate? Are you leveraging your excess production lines or personnel to support improvement initiatives? These key points will help sustain your organization during lower times of demand.

2. 5S and Workplace Organizations-Deploy this tool when you want a low-cost implementation that is easy to teach and provides quick results. It is also a great tool to start on a lean journey because it is straightforward to apply and allows you to build and test your sustainment plan. The hardest parts of 5S are overcoming sustainment issues and potential negative impact on the short-term bottom line.

3. Right-Sized Problem-Solving Tools – You can define a problem as the difference between what is expected and what occurs. A process can be seen as a hypothesis - when you execute it, you have an expected outcome. If the results are expected, then there is no problem, however, if the results are different than expected, then there is a problem or opportunity for improvement. Some examples of problem-solving methods include TPM or Reliability Efforts, Quality and Defect reduction, Lean and Six Sigma Initiatives, and Safety Upgrades.

4. Standardized Work – This tool allows an organization to establish the least wasteful way of completing the process steps while meeting the customer’s demand. You can develop standard work by going to the gemba, calculating takt time and inventory levels, creating a rough draft of the work sequence, performing time studies, and reviewing and posting the results with team members.

5. Power of Leader Standard Work in Driving Stability and Continuous Improvement - In organizations where processes lack control, life is a never-ending cycle of firefighting. Leaders and teams find themselves consumed by addressing one crisis after another, leaving little time for proactive or improvement work. This constant state of reaction hampers productivity, innovation, and overall efficiency. Leader Standard Work is not a one-time checklist; it embodies continuous improvement principles. Every week, leaders should reflect on their LSW, assessing what’s working well and what can be improved. Three fundamental functions on the foundation of effective management are process stability, process improvement, and engagement.

6. Value Stream Exercises – Time and resource availability hurdles often slow the rate of implementation, meaning that slower times are the perfect opportunity to review, update, and improve your value stream map. Understanding your processes and the steps you can take to make them quicker, safer, and easier with higher quality, more communication, and better visuals should excite all team members.

7. Unleashing Efficiency through Total Productive Maintenance (TPM) – TPM starts with calculations of OEE and TAU to help you access your current level of efficiency. Using the different factors in the calculation you can determine which of the six losses is creating the greatest hindrance to your equipment’s effectiveness. The six losses include equipment breakdowns, setup, and adjustment losses, idling and minor stoppages, reducing speed losses, defect and rework, and start-up and yield losses. Once the losses are identified work may begin by improving safety, quality, productivity, and maintenance of the equipment and the products it makes.

8. Single-Minute Exchange of Die – Focus on SMED activities so a changeover can occur more often, thus producing a mix of product outputs that better align with your customer’s need. SMED activities will also reduce downtime on your machinery, improve quality, and improve visual management.

9. Daily Management Systems and the 10 Key Points to Lift the Fog and Discover Value – The 10 key points are:

1) The true value proposition for a DMS is to achieve predictable outcomes over time.

2) The primary goal of DMS is to achieve the target today.

3) Focus on “RED” and recover to standard condition.

4) Always go to the gemba to Understand the current condition and facts are found at gemba. DMS only deals in facts.

5) Use an accountability process to prevent cost creep.

6) Use metrics to identify improvement opportunities.

7) Use statistics to make decisions.

8) Focus on your KIV’s to achieve your KOV’s.

9) Referees drive compliance with rules.

10) Use impartial and experienced coaches to connect the dots.

10. Visual Controls - They should provide immediate information on the current condition, highlight a problem, create a basis for improvement, and keep management alert to deviations from the standard. Some examples of visual controls are andons, floor markings, kamishbai board, color coding, safety signs, checklist, and one-point lessons to name a few.

11. Rebuilding Quality Tools and Standards – Having quality tools and standards in place is critical to maintain and even drive future improvement within processes. There are six actions you can take to improve your quality quickly. Implement quality circles, develop visual tools and samples, perform source inspections, create poka-yoke for your processes and parts, focus on visual signals and controls, and challenge your conventional wisdom and assumptions.

12. Building Teams - Building and managing teams is not always easy but you should always incorporate other people in the process of improvement. Some quick ways to begin building teams are spending time in the gemba, cross-training team members, performing a job swap, or having an interdepartmental team-building activity.

13. Defect Reduction to Reverse the Narrative – Reducing defects will reduce cost and improve lead time to your customers. There are seven steps to help reduce or eliminate defects in your processes.

1) Validate your quality systems are intact.

2) Validate your process is being followed.

3) Review your process for variation and sources of hard work.

4) Understand your process capability and control.

5) Generate statistics about your defects.

6) Not all defects are financially equal.

7) Solve to root cause for sources of variation.

We hope you found the information within this series helpful and inspiring. Although the title of the series is Embracing Slower Times: Building Resiliency for Long-Term Success, you don’t have to wait until demand slows to embrace and deploy these lean concepts and tools. Any improvements made today will help build success for tomorrow. Go out and see what processes are having the most issues and cross-check those issues against the lean tool set. You will probably find at least one tool, that if deployed immediately, would help make that process safer, more efficient, less costly, with higher quality. All those improvements will lead to a happier customer experience.

Embracing Slower Times - Part 14: Defect Reduction – Reversing the Narrative

Wed, 11 Oct 2023 13:09:38 GMT

Few initiatives can provide the positive impact on both financial and delivery metrics as defect reduction efforts can. However, the path to minimizing defects and streamlining your processes isn't always straightforward. It requires a detailed approach that encompasses everything from organizational discipline to understanding which defects to attack. In this article, I provide seven key tools to incorporate in your defect reduction initiatives to both simplify and achieve quicker results.

Each tool will serve as a building block for enhancing your organization's quality and operational efficiency. Whether you're a seasoned quality/engineering professional or embarking on this journey for the first time, this article will equip you with the insights and strategies needed to lead your organization toward quality excellence. Join me to transform defects into opportunities for growth and improvement.

For previous articles in the series, please visit our company website or LinkedIn page. As always, we’d love to hear your feedback.

Welcome to the next installment of our series on building resilience during periods of lower demand. In this article I will present my perspectives and some costly lessons about defect reduction. I spent the bulk of my career as either a process engineer or supporting process improvements from leadership positions. Quality losses were always a primary focus.

Defects can lead to rework or scrap. They are often one of the primary reasons behind poor financial results and missed deliveries. Most organizations consume a significant amount of their physical and intellectual capacity in dealing with the result of poor quality. Quality gaps may appear minor at first glance, but when you add up all the extra resources being consumed - they could account for well over 50% of your total cost and time.

There are many schools of thought and tools available in reducing defects. I am not going to go into depth on specific tools that you can readily find better information and training elsewhere. The goal of this article is to communicate some key lessons I’ve learned on how to get results quicker and make sure that they stick. Most of these are simple to incorporate but often skipped over in the heat of the moment. When management focuses on defect reduction as one of their key initiatives, it is not uncommon for people to want to get results fast. This can cause them to immediately jump to solutions without taking the time to fully understand the problem. Let’s start there…

Step 1: Validate Your Quality Systems Are Intact

Your quality systems are the guardians of product or service excellence. They encompass policies, processes, and procedures that ensure your process results meet specific quality standards. However, systems can deteriorate or become outdated over time, leaving gaps that may result in defects.

To fortify your defect reduction strategy, regularly validate that your quality systems are not only intact but also effective. Are they aligned with industry best practices and standards? Do they address current customer requirements? Remember that you are being paid to meet the accepted quality criteria – you are NOT required to produce perfect products.

I have seen too many teams either misunderstand their criteria or believe they are protecting the customer and either scrap or rework items that are perfectly acceptable and meet all the requirements. They will spend 2X to 5X more to manufacture higher quality levels than the customer is paying for. This is overprocessing waste, plain and simple.

I recommend making sure your process is capable of meeting quality to some high sigma level. Seek to understand your requirements and build an inspection system that works for the full range. Make sure your inspectors or inspection systems are both not rejecting good products and not allowing bad quality to pass through.

To do this, your inspection processes should be able to pass an R & R inspection. An incapable inspection process will lead to missed production and financial targets. It will produce misleading results and you will constantly be reacting to opinion, misinterpretation and chasing noise. If your inspection process is not capable – you must upgrade its capabilities to reduce both Type I and Type II errors or remove the inspection. Don’t introduce inspection processes that are not valid.

Continually assess your systems through internal and external audits, seeking opportunities for refinement and enhancement. Ensure that employees understand and follow these systems consistently. Your goal is to create an environment where the defects you identify are genuine and not a result of system failures.

Another key point is to solidify how defects are being coded into your quality information systems. Are inspectors correctly identifying and classifying the defects they find? A good defect manual with photos that also properly defines each type of defect can help make sure inspectors are capable in coding data. Having too few/many defect codes, or not controlling what codes can be seen in each inspection area can also be problematic. If you use remarks or open textboxes in your data entry systems, make sure you are getting useful data input by your teams.

Hint – operators learn quickly when their input is not being used and will look for shortcuts on how to bypass systems. It’s hard for problem-solving teams to use data entries such as “…”, “qqq”, or “zzz”.

Step 2: Validate Your Process Is Being Followed

One of the cornerstones of effective defect reduction is ensuring that your established processes are consistently followed. Even the most meticulously designed processes can fall short if not executed correctly.

If you have been following along with this series, by now you should have already developed detailed standardized work. Do you also use Leader Standard Work to ensure compliance?

Regular audits and process adherence checks are essential to confirm that employees are following predefined procedures. These checks act as a quality assurance net, catching deviations before they lead to defects. Engage with your team to understand the reasons behind any lapses. Is it a training issue, unclear instructions, or something else entirely? Collaborate to address these root causes, reinforcing the importance of process adherence.

When your team is aligned and processes are faithfully executed, the discipline needed to support good defect reduction efforts is in place. In one of my previous roles, whenever a process would fall badly out of control, we would eventually get a visit from the VP of Engineering. He would gather us around a big table and as a group we would meticulously review all the process instructions. Then we would walk the entire process, front to back. Along the way, he would note all deviations – clearly providing feedback on the tools we used for achieving control. It was always painful, but it was also often that simple…

Step 3: Review Your Process for Variation and Sources of Hard Work

Excessive process variation is a breeding ground for defects. Review your processes on a regular basis to identify potential sources of variation. This may include equipment performance, lack of process

control, inconsistent materials, or unclear methods/instructions. Make sure you observe all shifts and operator experience levels. If you employ a training group, make sure they are incorporating best practices and techniques in their instruction methods.

Reducing variation through targeted improvements can significantly minimize defects. Work as a team to understand and address sources of hard/complicated work, especially ergonomic strain that could contribute to defects. Include the upper and lower 20% band of operators for physical characteristics such as height, strength, hand/eye coordination, etc. If you have Process Control / Process Discipline procedures, you should also validate that they can be performed with minimal variation. Operators and those directly involved in the process often have valuable insights on sources of work variation.

If your process uses fixtures, templates, or any specific tooling you will need to ensure that everyone physically can use it properly and that it is inspected regularly for wear/damage. Check to make sure that you have sufficient lighting to reduce eye strain. If there are other environmental controls required, ensure they are maintained.

I once had to travel across the country to resolve a quality problem with laminated panels not meeting dimensional standards. The process involved taking the panel out of a die and putting it onto a rubber form to cool. Sandbags were added to the top to maintain pressure during cure. Unfortunately, the surface they set the forms on was warped badly – not good when using rubber forms. In addition, there were no defined instructions of how many sandbags to use or where to place them. I also witnessed inspectors forcing panels to meet tolerance only to deflect back out when released. It took no time to find and solve.

If you remain at your desk, you will miss so many opportunities to reduce variation. Simply watching someone performing the work and addressing sources of variation collaboratively, you not only reduce defects but also enhance operational efficiency. It's a win-win approach that strengthens your organization's commitment to quality.

Step 4: Understand Your Process Capability and Control

One of your primary goals is for your process to be in control and capable. This means not only how well your process can consistently produce products or services but also how to make them acceptable to predefined specification limits. You should be using the standard process tools such as run charts to track your process for variation.

Once your process is stable, I recommend developing control charts to maintain it. These are simple rainbow charts that have pre-determined reaction plans based on how the process is performing. The chart is broken into ranges along the vertical axis – upper red, upper yellow, green, lower yellow, and lower red. The horizontal axis indicates time between readings. If your process moves from the green range to the upper yellow range, you respond by performing a predetermined reaction X. Different reactions are designed for each area except green, where you simply continue normal standard work. A reaction can be as simple as to check the fixture, validate the measurement or to perform a task to recover. This makes sure everyone responds the same to variation and helps from overcorrecting.

Imagine driving down a long straight road. To stay safe, we’ve painted lines for you to stay between – this is your goal. We don’t want you to go veer off into the woods, so we’ve built a strong metal barrier to stop that from happening. If you hit the barrier, it will most likely be costly, so we’ve added rumble strips between the white lines and the barrier. These will alert you that you are outside the normal process so you can self-correct before doing damage. In our example:

Green = the painted lines represent normal process limits when in control
Yellow = the rumble strips represent variation outside of normal, but still within process specifications
Red = the barrier represents defects

Build control loops into your process to self-correct before creating defects and introduce barriers to stop the process if they can be made.

It's important when you find significant shifts in results to always check and validate your measurement systems as a first step before you go changing inputs. This is especially true for automated inspection processes.

Step 5: Generate Statistics About Your Defects

In-depth analysis requires accurate and comprehensive defect data. I’ve already discussed the need to ensure your data systems are clean. In that way you can use collected statistics on defect types, their frequency, and where they occur within your process. Additionally, establish a timeline to identify when defects are most likely to arise. Analyzing this data provides valuable insights into patterns and trends. Engage operators and other professionals in gathering data and obtaining their insights. Create an environment where feedback is encouraged and valued.

I loved using defect maps when I was an engineer. For those not familiar, defect maps show where the defects were located, what the type of defect was and how many were found. I took photos of each product type from several viewpoints and placed them on a document. The document included a legend for each type of defect by color. In the upper corner, I added a box with all the numbers from 1 to 100. Each time a part was inspected, the inspector crossed off the next numbered box. If they discovered a defect, they would place a small colored dot sticker corresponding to the type (per the legend) on the photo view. I would pick up the sheets every couple of days. Something similar could be very easily done now online.

There are many great tools available now that can assist in presenting large datasets in visually meaningful ways. They are very powerful and can provide great insight – if you know what you’re doing. I always found it helpful to add an extra black belt to each project to specifically challenge team logic and math as a devil’s advocate. Statistics can be confusing to some and counterintuitive at times. It is always better to make sure that your team is not chasing normal variation before running experiments.

Step 6: Not All Defects Are Financially Equal

Imagine you manufacture smartphones. A minor cosmetic scratch might not affect functionality and can be easily tolerated if internal, but a defect in the battery that leads to fires poses a catastrophic financial and reputational risk.

To prioritize your defect reduction efforts, you may want to understand the impact from different types of defects. If so, start by defining categories, like critical, major, and minor. Assign cost or other factors to each category. This approach allows you to focus limited resources on addressing high-impact defects first, thereby protecting your bottom line or brand reputation as necessary. The goal isn't merely reducing the quantity but optimizing your quality investment by tackling variation where it matters most.

Other factors to consider in analysis may include:

Rework Costs – by resources and time
Rework Success Rate
Downstream Customer Costs / Impact – external vs internal
Upstream / Downstream from your constraint? (reference Goldratt’s “The Goal”)
Warranty Costs

What you prioritize will depend on your specific business case. A point to remember is that most people will tend to default to internal measures in times of uncertainty. This often leads organizations to prioritize targeting financial incentives, which could lead to conflicts with customers. My suggestion is to make your decision only after reflecting on your goals with each of your stakeholders.

Step 7: Solve to Root Cause for Sources of Variation

Addressing defects is like treating an ailment; you need to target the root cause, not just the symptoms. Root cause analysis, often accomplished through techniques like the "5 Whys," helps you delve deep into the underlying reasons for defects. See our previous article on problem-solving for more details.

Engage your team in this process. Collaboratively investigate defects to uncover the fundamental issues. This not only leads to more effective solutions but also fosters a culture of continuous improvement.

Sometimes, challenging conventional wisdom and adopting first-principle thinking can lead to interesting insight. By questioning assumptions and revisiting your processes from the ground up, you gain a deeper understanding that can lead to innovative solutions.

Conclusion: Transforming Defects into Opportunities

Defects can be elusive adversaries, lurking beneath the surface and negatively impacting your organization's performance. But they are not invincible. With the right strategy and commitment, you can transform defects into opportunities for growth, efficiency, and quality excellence. The seven steps we've explored in this guide provide a roadmap for your journey toward defect reduction and process optimization.

Defect reduction isn't just about patching up problems as they arise; it's about forging a path to excellence. The pursuit of quality is an unending journey, but it's also a journey of continuous improvement and growth. Embrace the challenge of defect reduction, and you'll find that it's not just about fixing what's broken; it's about building a culture of quality and excellence.

For organizations seeking expert guidance and support in their defect reduction endeavors, connect with us at Peak Productivity . Our team of experienced professionals is dedicated to helping you achieve excellence in quality and operational efficiency. Together, we can build a future where defects are not just reduced; they are eliminated.

Embracing Slower Times - Part 13: Team Building

Wed, 04 Oct 2023 15:40:03 GMT

Embracing Slower Times: Building Resiliency for Long-Term Successes by Building Teams

This is blog 13 in the 13-part series titled “Embracing Slower Times: Building Resiliency for Long-Term Successes”. In it, I will discuss the importance of teams and teamwork in building long-term success for your organization.

My first job was as a Lean Engineer. My sensei was very knowledgeable about lean, continuous improvement, and problem-solving. He was also very patient, especially when it came to the “new kids” like me who had a lot to learn! One of my early project assignments was to improve the flow in an area that housed a piece of equipment and included several machine operators, and material conveyance. It was the first project I led on my own and to say I was excited was an understatement! I was ready to spread my wings and begin making improvements!

Like all good project leaders, the first thing I did was to meet with my manager and sensei where we discussed the scope of the project, the current metrics, and the goals of the project. With all this information in hand, I headed to the gemba.

Over the next week, I logged several hours observing the forklifts, the operators, and their tasks on each shift. At the end of the 1 ^st week, I had a list of solutions that would help improve the flow, so I set out to start working on implementing the list.

My first goal was to create new visuals along with updating some older ones. They helped to improve the flow by clarifying the movement and status of materials in the area. Along with the visuals, the area needed some general 5S work. After some time on the computer and a quick stop in the supply room, I was back out on the floor. I spent several hours taping, marking, and hanging labels. When it was all finished, I asked the operators and the forklift drivers to join me in a walk-through. I took time to explain the changes and discussed how the improvements would positively impact the flow. I answered a couple of questions, thanked them for the time, and returned to my office. The following day I reviewed the changes with management and my sensei and scheduled a follow-up for two weeks later. I felt like the project was going well.

During the review session, my sensei asked for my overall thoughts on the project. When I suggested it was close to completion, he suggested I perform some audits on the changes to ensure they were sustaining and to troubleshoot any issues. I agreed and scheduled some time to head back to the floor.

When I got there, I was surprised and disappointed the flow didn’t appear to have improved. The area looked better with new signs, floor markings, and added 5S, but the flow still seemed stuck. As I continued to observe the area it became apparent the solutions weren’t working and the project was in jeopardy. I needed help and knew my sensi would offer some great insights.

His recommendation was simple; a team consists of more than one individual. He went on to explain the solutions were not working because I failed to include the people working in the process. I didn’t show basic respect to my fellow co-workers by learning more about the current state, asking their thoughts about issues, and incorporating their ideas into the solutions. As I headed back to the office, I realized the project was on the edge of being a disaster instead of a success. What a way to learn about teams and the power generated when many minds work on a problem.

Determined to get this project back on course, I went back out to the floor. Instead of doing observations, I talked with the operators, followed them around, and had them explain what they were doing and why. In a short time, I learned that I had missed a lot of details in my observation and had minimal understanding of the process. Before I left the area, I asked the operator and a forklift driver if they would be willing to work as a team. Both were very eager and excited to assist and immediately started sharing a wealth of knowledge and ideas on what and how to improve. A couple of weeks later, the team completed the recommended changes, and it was time to see the results. This time it worked. The visuals, 5S, and process improvements helped the flow through the area. In fact, the team members had made some additional changes that drove more improvement.

At that point, it was time to have a follow-up meeting with my sensei. I remember him asking what I had learned from my experience. The answer: “Try to always incorporate others in the process improvement.” The team members were part of the conversation and part of the solutions. They provided details I could not see by watching the process alone. This lesson really stuck with me! To this day I do not like doing projects solo. I find tremendous value in building relationships with others, learning from them, and using the knowledge to collaborate in problem-solving. The input that you get from other people, the insight, the way they look at the area, and the way they process the work provides so much more depth of information.

My recommendation for anyone working on continuous improvement is to go to the gemba, select a team, talk with them, and learn from each other to grow your business for the future. Invest the time and energy to build relationships. They will help carry the company forward when demand returns. So, what are some quick ways to build better teams in your organization when demand is low?

1. Spend time hanging out in the gemba . I like working with operators performing hands-on job tasks. Rolling up my sleeves and working alongside the operators gives me so much insight into the challenges of each task. You get to see, feel, smell, and hear the good and bad contained within those tasks. It also allows me to develop deeper relationships by growing mutual respect.

2. Do a job swap. Take an operator from one area and have them go to another area to observe and learn what others do within the plant or department. Then reciprocate that by having someone from the second department go into the first department to do the same thing. The point is not to cross-train the individuals, but rather as an introduction to other areas, tasks, products, and processes.

3. Cross-train team members. Companies like to grow people's skills and increase their value. Creating the time and space for team members to learn other jobs is critical in the current job market. Prior to training, create a cross-training matrix to understand which areas are lacking coverage. Not only does this help the company by having redundancy across positions, but it can help build camaraderie and a sense of a team.

4. Have an interdepartmental team-building activity. Taking time to bring operators and departments together provides an opportunity for people to meet one another, learn, and grow. You can increase learning by having people share information about the products they make, and the steps required to make them. It always amazes me how often co-workers don’t know what other products or processes exist within the same plant.

Being on a team isn't always easy and managing a team can be difficult due to differences in opinions, personalities, job experience, how we think, and the way we see the world. But I think when you come together as a team, those differences start to blend and mesh so that weaknesses become stronger, ideas become refined, and success is more likely to be sustained. As I look back over the years, I've had the opportunity to work with some wonderful team members. We have agreed, disagreed, succeeded, failed, laughed, and cried. If you’re reading this blog and I ever worked with you on a team I want to say thank you. I have so many wonderful memories of time spent learning from each of you. You brought unique perspectives to the team and helped shape my way of thinking. I truly love teamwork.

At Peak Productivity , our approach is always team-based. Whether we're running a Kaizen event, working on short-term projects, or providing simulations and modeling, we do it as a team. If you haven't read the other 12 blogs in this series, please feel free to check them out at the Peak Productivity website. As always, we're interested in hearing your thoughts and your questions about teams and continuous improvement, so feel free to post them in the comments section.

Embracing Slower Times - Part 12: Rebuilding Quality Tools and Standards

Wed, 27 Sep 2023 15:38:08 GMT

Welcome to the next installment of our series on building resilience during periods of lower demand. In this article I will discuss options to either rebuild or introduce quality tools into your processes. Unfortunately, most quality tools are often introduced and then never seriously reviewed or challenged again. Any slowdown in production is a great time to check up on your quality systems and determine if you need to revise or upgrade them for when volume returns. This can range from a quick check to verify everything is still working as planned or may even require a total rebuild of the systems. Regardless of your current condition, you need solid quality systems in place to support stable processes. They constitute the foundation for continuous improvement in all organizations.

I will explore both traditional and innovative strategies such as quality circles, visual tools, real-time feedback loops, preventative measures, and visual controls. I hope to challenge some of your established assumptions, encouraging you to rethink and rebuild your approach to quality in ways that promote lasting resilience and success. If you're ready to strengthen your quality systems, join me in this latest edition.

For previous articles in the series, please visit our company website or LinkedIn page. As always, we’d love to hear your feedback.

Introduction: In today's rapidly evolving business landscape, taking advantage of any slowdown in production to rebuild or upgrade your quality tools and standards is an effort well spent. This article explores how organizations can harness this period to enhance their quality practices to ensure for long-term success.

1. Implementing Quality Circles

During slower times, it's crucial to foster collaboration and idea generation among your teams. Quality circles are small groups of employees who meet regularly to identify and solve work-related problems. This can be a powerful tool for engaging the team during uncertain times.

Quality circles are a concept that has been around for decades, and the principles remain as relevant as ever. They provide a structured platform for employees to discuss quality-related issues, share insights, and collectively devise solutions. These circles promote a culture of continuous improvement, where every team member has a voice.

The implementation process involves several key steps:

Formation: Identify interested employees from various departments. Seek to get representation from all job classifications and experience levels when developing the teams. The best examples I’ve seen are when they include people who have the ability and authority to get changes implemented, such as engineers.
Training: Provide training on problem-solving techniques and quality improvement methodologies. Make sure to emphasize customer-supplier relationships, so the team members don’t only focus on what makes their jobs easier.
Meetings : Organize regular meetings where members can discuss challenges and suggest improvements. Make sure you take advantage of going to gemba to see the problem firsthand. It’s also crucial to make a good set of team rules at the start so everyone understands the expectations and norms. Don’t allow individuals to hijack the meetings. If someone is not participating, use techniques to pull them in or replace them.
Action Plans: Develop action plans based on the best ideas generated during meetings. Use the team members to communicate any proposed changes to the shop floor and management. It’s important they both take responsibility and show engagement.
Tracking Progress: Monitor the implementation of these plans and measure their impact on quality. If an idea doesn’t work, explain that it was a good effort, but stop it. Treat their improvement efforts like you would any other and hold them to the same standard. They want to be respected on merit.

Quality circles empower your workforce to take ownership of quality improvement, fostering a sense of responsibility and engagement. If for any reason you are struggling with gaining traction in the beginning of the initiative – talk about safety or procedures that are difficult to perform. These normally include a quality aspect that needs to be improved. A few early wins usually get the team moving forward.

2. Developing Visual Tools and Samples for Inspection

Visual aids can significantly enhance your quality and production processes. This section discusses the creation and utilization of visual tools, such as checklists, flowcharts, and sample products to streamline inspections and maintain high-quality standards.

Visual tools serve several purposes:

Clarity: They should provide a clear and easily understandable representation of process outputs, making it easier for employees to follow and adhere to quality standards. Unfortunately, most documentation is copied from engineering prints or quality standards that are often complex or require specialized training to understand. In some cases, these are 2D representations with shaded areas of 3D products to differentiate requirements by location on the product. Painted samples can offer a quick method for operators to compare for better understanding. Always test your instructions or samples to ensure broad compliance.
Consistency: Clear visual tools ensure that everyone involved in a process performs it consistently, reducing variations and the risk of errors. Many visual inspection processes can’t pass an R&R inspection. In fact, many locations will avoid any test of their visual systems for that fact. You must find out what isn’t working and keep improving your visual tools/processes until they can pass it. Sorry, but there is no shortcut here. This is the only method I’ve seen work. Any expenditure upfront will generate huge payback compared to the costs of poor quality over time.
Training: Visual tools aid in the training of new employees, allowing them to grasp processes quickly. Make sure you have enough tools available for operators, good tracking for quality inspections and a quick method to recreate them if damaged or lost (it happens). Make sure they are clearly labeled if you have similar looking products with different zones.
Problem Identification: Standard Work processes can be improved to provide more clarity on instruction or better tests to alert workers of common quality issues. Many quality gaps are a result of a poorly designed work environment – make sure your processes don’t contribute to errors or mask them due to ergonomic or lighting conditions. Short term countermeasures should be SHORT TERM. Take the time to implement root cause solutions or the accumulation of short-term countermeasure costs will quickly turn into financial problems.

3. Source Inspections: Implementing Close and Timely Feedback Loops for Learning/Improvement

Embedded source inspection loops are a great way to ensure defects don’t get passed along to your customer. To achieve this, you must change your focus from searching for defects to searching for errors. All errors must be quickly communicated back to the source, so that action can be taken to eliminate the possibility of a defect being produced.

The sooner the better. If you can create solid built-in tests at the operator level, then they can self-correct for most variation. This may still require assistance from technical or management to bring processes back under control, but it will help them stop passing defects.

However, this is not always possible in many production processes. Often quality requirements are hidden from the view of the operator until much later. In these cases, you must provide excellent feedback to the source. I don’t know how many times I’ve spoken to operators who have no idea what their quality performance is, and/or only receive feedback on rare occasions like annual reviews.

How can they improve if they receive NO FEEDBACK?
What do you think the default condition is for an operator who receives no feedback?
"NOTHING IS WRONG!"
"I’m doing great!"
"Rework and defects must be caused by others!"
YOU MUST create systems to provide 100% feedback to everyone, and this must be done as soon as possible for every step in your process.

In my experience, over 95% of rework can be quickly and easily eliminated by solving the problem of effective feedback to operators. People want to do a good job – it is our responsibility to create systems that allow them to add value.

4. Preventative: Poka-Yoke Your Processes

Preventing defects is more efficient and cost-effective than fixing them after they occur. This section deals with the concept of poka-yoke, or mistake-proofing, and how it can be applied to your processes to ensure quality from the start.

Poka-yoke strategies aim to make it impossible for errors to happen. No errors = no defects. There are many excellent books and training courses available that provide details on how to implement prevention systems into your organization. Major strategies include:

Design Improvements: Modify product or process designs to eliminate potential sources of error. For example, using unique / biased shapes or connectors to prevent incorrect assembly.
Checklists and Guides: Provide workers with checklists, guides, or digital tools that assist them through each step of a process, reducing the chance of missing crucial tasks. For very critical or safety related work, having two groups read and check off tasks can be helpful to ensure compliance. A lot of early work on human systems and checklists were developed in the nuclear industry and have been incorporated into healthcare in recent years.
Automated Inspections: Integrate automated inspection systems into your processes to detect variation in real-time. These can be very helpful in dangerous environments. Vigilance is required to validate periodically and ensure null-values default to error conditions in case of failure.
Error-Proofing Devices: Implement error-proofing devices that prevent incorrect actions. An example is a car's automatic transmission, which doesn't allow you to start the car unless it is in neutral or park.

By applying preventative principles, you're not just catching defects; you're actively preventing them, which is a proactive approach to quality management. Effectively combining 100% source inspection, immediate feedback loops with reaction and poka-yoke can virtually eliminate defects in most production environments.

5. Focus on Visual Signals and Controls - Control Charts, Andon Signals, Tin Soldier Inspections

Visual signals and controls are essential for monitoring and reacting to quality in real-time. As I’ve discussed in prior articles, part of your standard work development should include building visual signals, showing performance to standard for both for input and output metrics. When you combine these with triggers and pre-determined reaction plans, they become visual controls.

One of the more common types of visual controls is control charts. They are a valuable tool for achieving process stability by identifying trends or variations. By regularly plotting data points on these charts, you can quickly detect when processes are deviating from the norm. Using some simple statistics, it is easy to determine if the variation is normal for your established processes or requires intervention on your part.

You can also combine control charts with pre-determined reaction plans to keep your process in check. For example, instead of adding many gallons of an acid solution to a mixture when the pH rises above acceptable levels, you can add smaller levels, checked more frequently to prevent the process from going out of control and shutting down. Control charts are often used when automated control systems are not in place, or to verify that automated systems are meeting requirements.

Andon signals, visual or auditory alarms can alert support personnel to quality or process issues as they arise, enabling immediate action. This not only minimizes defects but also promotes accountability and quick problem-solving. These can be triggered automatically or by production personnel in response to process shifts.

Most processes will have some type of quality check done at the start and finish of the run. This is important to show that quality is maintained between runs. However, this is only two points in time – and does not show variation from part to part or part to whole. If you ship in batches of products, it may be useful to conduct “tin soldier” inspections. Entire blocks or shipments are laid out as a group – lined up to help identify part to part variation. This can make it very easy to determine “what is different” and help establish where variation occurs in your process. When product runs on different machines or with different batches of materials, tin soldier inspections may be very helpful to proactively achieve consistent quality throughout your entire process. It's also a powerful way to instill a culture of quality consciousness by visibly seeing changes and then searching for the causes.

6. Challenge Your Conventional Wisdom and Assumptions

Much of the conventional wisdom and assumptions that your team uses are based on hard learned lessons from the past. However, it is not uncommon for them to be false and in fact responsible for much of the waste in your current design. I’ve encountered numerous issues where this is the case for many reasons:

Variables shifted that gave the illusion the problem was solved.
It was true for previous conditions, but now is wrong because those conditions have changed (larger, faster, etc.).
Management said it was so.

It's easy to fall into the trap of "this is how we've always done it." However, change and improvement require a willingness to constantly question the status quo. Encourage your teams to challenge conventional wisdom and to test all your common assumptions. Do this regularly. Ask yourself – “How do I know this?”.

Conduct detailed root cause analyses to uncover the underlying reasons behind all issues. Seek to achieve “first principle” thinking about the basic assumptions and science behind your processes.

Most importantly, foster a culture where experimentation is encouraged, and failures are seen as opportunities for learning and growth. Don't be afraid to try new approaches, technologies, or methodologies that could lead to breakthrough improvements in quality.

Conclusion:

In times of reduced demand or slower business activity, the focus should shift from mere survival to strategic improvement. By implementing quality circles, leveraging visual tools, establishing feedback loops, adopting preventative measures such as poka-yoke, using visual controls, and challenging conventional wisdom, organizations can rebuild and fortify their quality tools and standards. This proactive approach will not only ensure resilience but also set the stage for long-term success in an ever-changing market.

If your organization needs guidance in revitalizing its quality tools and standards, Peak Productivity is here to help. Reach out to us to discuss how we can assist you in your journey toward improved quality and creating more stable processes to ensure sustainable growth.

Embracing Slower Times - Part 11 Building Resiliency with Long-Term Sucess using Visual Controls

Wed, 20 Sep 2023 23:00:00 GMT

This is the 11th blog in a 13-part series titled “Embracing Slower Times, Building Resiliency for Long-Term Success using Visual Controls.” In it, I focus on the lean manufacturing tool, Visual Controls, and how they can be used to help build long-term success for your organization. Visual Controls are included in an organization's standardization toolset and are one of my favorites to deploy.

This is the 11 ^th blog in a 13-part series titled “ Embracing Slower Times, Building Resiliency for Long-Term Success using Visual Controls.” In it, I focus on the lean manufacturing tool, Visual Controls, and how they can be used to help build long-term success for your organization. Visual Controls are included in an organization's standardization toolset and are one of my favorites to deploy. As the name implies, they contain pictures, drawings, schematics, charts, checklists, etc., that can communicate operational status, instructions, feedback, safety needs, and much more. When deployed correctly they help you identify problems within processes that impact production, cost, lead times, inventory, safety, quality, and other key metrics.

What are Visual Controls? It is a set of lean tools that help team members and management understand the current condition by reviewing key inputs and outputs within a given process. They are highly visible and intuitive. Visual Control uses the standard to measure the status and highlight problem-solving opportunities, along with communicating important information personnel need in the area. They support Visual Management systems, which are key to moving to a more mature lean organization.

Let’s look at a couple of non-work examples. A lot of our day-to-day functions like driving or shopping would be less efficient and more hazardous without Visual Controls. Just think, when you approach an intersection, and the stoplight isn’t working, what happens? How do you approach the intersection? Most people become more cautious and aware of the other vehicles at the intersection. Of course, there are rules on what to do when the light is not working, but not everyone follows them. What about when a store redesigns its layout, moving products from one area to another? How quickly do you find the items you need? Do you have to ask someone for help? Are there signs that point you in the right direction? I am sure finding your way in those scenarios is much easier with visuals in place. A working stoplight or someone directing traffic at the intersection is safer and more efficient. Having a map and signs in the store helps you orient quickly. I think most of the time we are more aware when visuals are not present than when they are in our daily life activities. So why don’t we have that same level of Visual Control in our work environments?

In our work environments, most companies do a good job with safety-type visuals, like Personal Protective Equipment (PPE) signs for hearing or eye protection, or lights and alarms that indicate when something is not working properly on equipment. But don’t we need and want more information than that? Maybe it is time to start looking at Visual Controls as a cohesive system to improve standardization and communication, not just covering the basics. Don’t you want to have people walk into a company and know how things are going without the need to publish reports and attend management meetings? A company that is committed to a Visual Management system and supporting Visual Controls ensures you can understand how things are going without asking someone for the answer.

At a minimum, Visual Controls should provide immediate information on the current condition, highlight a problem, create a basis for improvement, and keep management alert to deviations from the standard.

Help everyone understand the current condition and highlight problems in the area . The current condition includes output, safety, quality, staffing, inventory, and machine status. I remember one time I was touring a manufacturing plant and during the tour, we went to a small staging area that held inventory for a downstream process. The plant manager gave some basic information about the process and then asked if I thought they were having a good day or not. After looking at the visuals posted on the walls and the floor, I suggested they were behind by 2 hours. He smiled and nodded in agreement. He went on to explain that anytime he needed to know about current conditions, he didn’t ask his managers, he came to this small area and looked. When they were on schedule he would go back to his office, when they were behind, he would go to the upstream and downstream areas to see what the problem was. It became very apparent the efficiency gained for his entire team because of the robust visuals in place. Anyone who understood the visuals could determine the status and even potential root cause.
Create a basis for improvement . Since Visual Controls are a type of standardization they should be reviewed, modified, and updated like standardized work. There must be an ever-present pull to make processes more efficient, less wasteful, faster, safer, and lower cost. Implementing key Visual Controls can help you achieve this goal.
Indicate when a process has stopped following the standard. When the process is no longer performing at the standard, problems need to be solved to return back to the standard or to improve it.

There are many types of Visual Controls, and each one has a different purpose for application. How do you know which Visual Control to use within your process? Let’s review some of the more common ones.

Andon provides a signal indicating the status of a process or equipment. The andon can show when the status is or is not meeting the standard. For example, an alarm might sound when the line stops running, or a green light turns on when the line is running. Andons can be visual or auditory.

Floor marking indicates where materials, supplies, inventory, or WIP are staged and should highlight the direction of material flow and the amount of materials needed. They can also be used to help maintain the flow of people and conveyance equipment (forklifts, AGVs, etc.)
Color coding uses different colors or combinations of colors to indicate status or communicate vital information. In some cases, there are industry standards for color coding that should be applied.
Safety signs communicate safety information, status, or standards. Many of the safety signs are standardized and should be applied accordingly. For example, stop signs are octagon-shaped with red and white coloring.
Kamishbai board incorporates the use of a board that holds tee cards. Each card is associated with an action, task, or audit. The color of the tee card or the position of the card will indicate if the item is completed or still pending.
Checklists standardize an audit of a process, task, or product. They are usually self-administered and typically highlight when steps or tasks are omitted or incomplete, or when products are not up to standard.

One of the things that I like about Visual Controls is they are usually simple to create and install. Also, they usually don’t require a lot of training for team members; a quick review will usually suffice. Their purpose needs to be clear by answering:

What are they communicating and to whom?
What actions are needed to correct issues or problems highlighted by Visual Controls?

They become even more impactful when they are incorporated with other lean tools like inventory management, TPM, standardized work, 5S, etc.

The reason to build your Visual Management System using Visual Controls when things are slow is because you have resources available to work on them. However, one universal challenge is the funding needed to create and install them. To determine how much time and money is needed, head out to the Gemba and review the visuals currently in place.

Are they up to date?
Do they meet the standards in size, color, font type, etc.?
Is the information clear and concise?
Are they damaged, dirty, or worn?
Do they provide the desired results?

These questions will determine the scope of work and resources needed. Usually, it is not people-intensive, but it does require knowledge of Visual Controls and how to implement them, computer knowledge and access to design them, and a printer capable of making them. Much of the cost, beyond the allocation of resources, results from the ability or decision to print them in-house or to have them supplied by a vendor. It is important to standardize their look, so consider fonts, colors, sign size, medium, mounting types, etc. My recommendation to reduce costs from rework is to create mock-ups internally, verify their correctness, and then, if necessary, send them to a vendor to be produced.

Because companies often have a basic level of Visual Controls in place, they tend to believe the task of generating Visual Controls is complete. However, because they are part of process controls and standardization they should be looked at as vital and necessary to maintain a smooth and efficient operation. Don’t make the mistake of placing them in the “do it later” category. Instead, get your team involved in building a Visual Management system that is alive and robust. Since slower times mean there is the potential for resources to be reallocated, I feel that's a perfect time to go to Gemba, design, and deploy them. You will find when the demand returns your new Visual Controls will allow you to quickly access your status, identify the problem, troubleshoot it, and get back to the standard. In many cases, all this can be completed at the Gemba without the need for meetings to fit the issue.

Hopefully, this blog provided some insight into the benefits and types of Visual Controls. If you've liked it, let us know in the comments. If you have questions, post those in the comments as well. Also, if you miss any of the other blogs in this series, you can find them on the Peak Produ ctivity website or our linked-in page.

Embracing Slower Times: Part 10 - Daily Management Systems (DMS) – 10 Key Points to Lift the Fog and Discover Value

Wed, 13 Sep 2023 18:33:17 GMT

Welcome to the next installment of our series on building resilience during periods of lower demand. This article will address some practical applications and strategies for implementing a Daily Management System (DMS) in your organization. This is a key toolset for enabling process stability and helping your team on the path to continuous improvement.

Are you struggling to maintain stability and drive improvement during slower business periods? Discover the transformative power of a Daily Management System (DMS). I will focus on the why, a few of the how’s, and the cultural changes needed to successfully support an excellent DMS. Join me as I explore some best practices to foster accountability, enabling proactive problem-solving, and building a culture of continuous improvement - making your organization more resilient than ever.

For previous articles in the series, please visit our company website or LinkedIn page. As always, we’d love to hear your feedback.

In times of rapid change and uncertainty, organizations often find themselves grappling with the need for structure and stability. The key to thriving during both slower periods and full production lies in creating a solid foundation for continuous improvement. One powerful approach is the implementation of a Daily Management System (DMS). Implementing a DMS can be a game-changer for any organization, fostering a culture of accountability and continuous improvement.

There are many excellent resources about DMS. One of my favorites is " Creating a Lean Culture " by David Mann. In this article, I won't attempt to summarize Mann's comprehensive guide; instead, I'll provide some of the best practices and insights that I’ve learned over the years. I will focus on the why, a few of the how’s, and the cultural changes needed to successfully support an excellent DMS. If you want to gain an edge in your DMS rollout, I suggest you integrate as many of the Key Points into your design as possible.

Why Do You Want a Daily Management System (DMS)?

It's crucial that you develop a solid value proposition for any initiative before you start. A good DMS offers several key benefits:

Enhanced and Real-Time Visibility : In a well-implemented DMS, production boards are ideally located in the path of workers. This visibility ensures that critical information about performance and issues is readily accessible to those who need it most—your frontline employees. The boards also support team huddles and shift turnovers.
Supportive Leadership: Meetings are held with management visiting the team at their production boards. This practice is not just about monitoring; it's about providing support, understanding challenges firsthand, and fostering a culture of collaboration.
Proactive Problem Solving: A DMS encourages proactive problem-solving and empowers teams to take ownership of daily challenges.
Continuous Improvement: It creates a culture of continuous improvement by identifying opportunities and a defined structure for eliminating root causes of problems.
Fostering Accountability: A DMS fosters accountability at all levels of the organization, from frontline operators to top executives.

Keep in mind that once created, there is a continual cost to maintaining a DMS. Efforts should be made to ensure you are getting a good return on both your initial and ongoing investment.

At the end of the day, you want predictable results from your processes. Until you have effectively controlled the major sources of excessive variation, you will never truly have stable outputs. The DMS is an excellent tool that can do this over time. Exceptional gains in productivity, quality, safety, and cost metrics can be achieved through a well-designed and executed DMS.

Key Point 1: The true value proposition for a DMS is to achieve predictable outcomes over time.

To achieve any level of consistency with DMS – you MUST have standard work established, timely visual controls/metrics to determine status and good leader standard work to maintain it.

The role of the operator is to perform their standard work.
If the operator cannot perform their standard work, supervision should be able to identify the gap, step in to support them in resolving the problem and restoring the environment back to normal.

Therefore, the primary purpose of the DMS should be to support the current condition. Your goal as a leader should be to focus on what prevents your team from running to their established standard. Can they achieve their target and have a perfect day?

Regardless of what your efforts are, you will not be able to change the result from yesterday. Your efforts today can only impact current or future outcomes.

Key Point 2: The primary goal of DMS is to achieve the target today.

You should have a good idea what inputs are critical for hitting your target. These would commonly be such items as: staffing, number of machines, quality of incoming materials, WIP and raw materials, quality systems in control, and the environment. A SIPOC or a detailed FISHBONE/ISHIKAWA diagram are great tools to identify them. Ensure before each cycle that they are in control – in other words “GREEN”. Any concerns or deviations should be identified as “RED”.

You should focus only on the “RED” items. Whenever a condition changes from “GREEN” to “RED” your management or support team should be engaged. This should happen not only at the beginning of the day, but continually occurring for each cycle. Understanding when inputs go wrong and responding in a timely manner are paramount to creating a stable production environment. Each cycle is a test of your hypothesis – treat each process cycle as an opportunity to learn.

It is crucial for everyone supporting the production work to clearly understand their priorities, expectations, and deliverables. When production cannot achieve the goal – local visual controls should identify the deviation. If front line support cannot resolve quickly, they should signal for management support in resolving the problem. Management should remain engaged until standard work is restored.

Key Point 3: Focus on “RED” and Recover to Standard Condition

As support groups attempt to leverage automated systems to help them identify problems, there is a growing tendency to do problem solving remotely. Many of these improvements are great, but they can leave you blind to other issues. My strong advice is to always GO TO GEMBA and validate before you start changing things. Don’t assume the problem you’re told is the actual problem that exists.

There is often a fog in many production areas that can make problems hard to see, and the story can change the farther it gets from the source. GO TO GEMBA and see for yourself. I don’t know how many snipe hunts I’ve seen over the years when people assume. Understand the problem from the source.

Key Point 4A: Always GO TO GEMBA to Understand the Current Condition

Information is often associated with power in many organizations. A caveat to Key Point 4 above – do NOT allow people to speculate during your DMS meetings. Either you KNOW something because you went to GEMBA and saw for yourself, or you don’t. Whenever you hear the following phrases, be prepared to hold your ground and demand evidence:

“I heard…”
“Someone said…”
“Could it be…”
“I think…”

Most people are well intentioned and really try to help – so this is not to be critical. However, sloppy problem solving based on opinion (especially when leaders have hunches) can lead the entire team down an endless rabbit hole.

Key Point 4B: Facts are found at GEMBA. DMS only deals in FACTS.

Not every problem can be immediately identified and solved. Some will require short-term countermeasures to be put in place so that production can resume. My old boss used to say, “every time someone says the word countermeasure, you should hear the sound of a cash register opening in your head”. That is because countermeasures often add significant cost to your standard process. Even worse, if you add a countermeasure and never remove it, over time your costs will escalate out of control.

If this sounds familiar, you are not alone. Many organizations suffer from this approach. Unable to solve to root cause in a timely manner, teams will band-aid their processes with countermeasures whenever they have issues. But they never go back to remove them. Over time their once clean process is now littered with expensive duct tape holding it together.

To counter this – you should employ an Accountability Process as part of each DMS board. The Accountability process is to ensure that the problem is not “solved” until root cause analysis is completed, and the final solution is implemented. It can be as simple as post-it notes used on a weekly board by function or listed as they are identified on easel papers. Regardless of the method, you MUST drive this home.

Key Point 5: Use an Accountability Process to Prevent Cost Creep

So far, we have been talking only about the primary role of DMS – to maintain the current condition at GEMBA. There is a secondary purpose to support your longer-term continuous improvement goals.

We track results/metrics as part of the DMS. Historical values can be used to identify trends or repeat problems that need to be addressed. Tracking of impact by reasons for downtime occurrences, quality issues or other output metrics are excellent ways to identify and justify longer term improvement projects. It’s easy to get a support function engagement when you can show 48 hours lost per week at a constraint operation because of problem X. Recall Key Point 4B - facts speak loudly.

Most DMS’s track output metrics covering four key attributes:

Quality
Safety
Cost
Delivery

Many organizations also use tiered processes within their DMS, and some also roll them up into an organizational site OBEYA room where they conduct plant level meetings. Once again, the focus should be on “RED” with leadership focus on what help is needed. There are plenty of great videos, books, and other resources if you decide to expand your DMS to include it.

Key Point 6: Use Metrics to Identify Improvement Opportunities

Unfortunately, DMS’s can unwittingly be hijacked by management who, with best intentions, think they need to “know” what happens when targets are not achieved. Their desire to help, coupled with their need to answer questions from their bosses drives conversations away from our goal of creating predictable processes. Discussions go from “what” the issues are and how can I help, to “who” is responsible. If there is no process to correct quickly from these types of distractions, your DMS can lose focus and turn into another expensive and useless meeting.

There are two other major reasons that often derail DMS efforts:

Mistaking normal variation as special/assignable cause
Overreacting and/or focusing on results instead of inputs

All processes exhibit some normal variation. You should chart your data to understand what is normal for you. Understand the difference between your expectations and what your process can produce. Just because you don’t hit some arbitrary target is not necessarily an indication your process is failing – it may not be capable.

Key Point 7: Use Statistics to Make Decisions

Results are important, but they are only a single outcome based on many inputs and their interactions. Focus efforts in achieving control of your input KIV’s (Key Input Variables) and you will have a chance to achieve the output KOV’s (Key Output Variables). A good rule of thumb for results is you can claim some stability if you can meet the target 19 out of 20 times.

Key Point 8: Focus on Your KIV’s to Achieve Your KOV’s

In your design phase for your DMS, it is vital to establish clear rules and desired behaviors for the participants. This should include the goals, the outcomes, and the correct conversations/discussions of all in attendance. I strongly suggest you also delegate someone who WILL maintain the rules and effectively “herd the cats” whenever the meeting drifts. Discipline is key – you should consider a very experienced coach to help you through the initial roll-out phase. Someone who is not an owner, but who is just there to keep the process tight. They should be able to intervene and coach the team as they learn their new behaviors and to ensure they develop the correct habits. They are responsible for coaching the team in terms of content, pace, and adherence to the rules. Daily reflection and immediate feedback are powerful tools they can use to assist with the cultural change.

Key Point 9: Referees Drive Compliance to Rules

Is Your Culture Ready for a DMS? As you can see, implementing a DMS isn't solely about processes and tools; it's deeply intertwined with your organizational culture. As you consider whether your team is ready for this transformation – an effective DMS thrives in cultures that value:

Transparency: Is the team comfortable in sharing performance data openly, even when it's less than stellar? Is it safe?
Accountability: Are employees and leaders willing to be held accountable for their daily tasks and commitments?
Continuous Improvement: Is there a commitment to continually identify and solve problems rather than just firefighting? Is data or opinion the driving force for projects?
Collaboration: Are cross-functional teams willing to collaborate and share insights to improve operations?

To develop the right culture, one of the first things you may need to address is the tone and interactions in your conversations. I alluded earlier to the need to focus on facts and the change in roles needed to support a good DMS. Gone are the days when management directed activities from a distance based on computer reports and hearsay. The goal is delivering to target, and leaders are expected to support GEMBA, not the other way around. Both leaders and team members must develop skills in having the following types of conversations:

Data-Driven Discussions: Base discussions on observations, real-time data, and performance metrics. Verify your facts.
Root Cause Analysis: Coaching how to perform RCA to drive accountability from short term countermeasures.
Positive Language: Promote a culture of constructive feedback and solution-oriented discussions. Focus on WHAT instead of WHO.
Accountability for Deliverables: Hold individuals and teams accountable for their commitments and actions. Ensure that people have adequate bandwidth and authority. Don’t allow a few to own all the action items. Provide support when needed – asking for help is a sign of strength, not weakness.

Most teams struggle during transitioning to DMS’s because they lack one or several of these traits. As mentioned before – having an impartial and experienced coach to guide your team through the rollout is critical.

Key Point 10: Use Impartial and Experienced Coaches to Connect the Dots

Conclusion:

A well-implemented Daily Management System (DMS) can be a game-changer for driving stability and generating impactful projects for improvement during slower times. It's a strategic tool that enhances visibility, drives continuous improvement, and fosters a culture of working as a team. By nurturing a culture of accountability and continuous improvement, you can navigate challenges with confidence, ensuring that your teams stay focused on the right priorities.

Many organizations start down this path and lose momentum over time. Most will fail, not due to effort, but due to not adhering to one or more of the key points I’ve mentioned.

If you think that a DMS is right for your organization but are not sure how to implement it, don't hesitate to contact us at Peak Productivity . We will guide your team successfully along each stage of the initiative. DMS’s can be the transformational project that pays significant dividends for years to come. I have personally seen it work wonders and completely turn around organizations that commit to it. Call us to discover how we can help.

Embracing Slower Times - Part 9: Building Resiliency for Long-Term Success with SMED

Wed, 06 Sep 2023 21:09:06 GMT

In this week's blog, I continue the 13-part series "Embracing Slower Times: Building Resiliency for Long-Term Success" by applying SMED, Single Minute Exchange of Die. In this blog, I discuss what is SMED, how to apply it, and its' benefits. As always, I love hearing your thoughts and ideas on SMED, so post them in the comments section.

In blog 9 of the 13-part series “ Embracing Slow Times: Building Resiliency for Long-Term Success, ” I discuss SMED, Single Minute Exchange of Die. It is a set of tools deployed to reduce the changeover times and reduce the quality issues at start-up after a changeover. Just like most lean tools, SMED requires people, machine time, parts, and supplies to be successful. Usually, SMED teams include technical team members from operations, maintenance, engineering, tool room, purchasing, and quality. The team may focus on tasks like ordering correct tooling and parts, redesigning or modifying equipment, reducing quality issues, and 5S application, along with creating visual controls and standard work for the changeover process. Because of the skill set required for a SMED activity, slower times are the perfect opportunity for redeploying personnel to review the Value Stream Map, select process changeovers to improve, and implement successful solutions.

Let’s start by defining the term changeover . It is the time required to go from the last good part, through the equipment set-up, and ends when the first good quality part is produced. Some companies only include the time the equipment is not running but that misses quality issues and small tweaks required to obtain a quality product. Let’s say it takes 15 minutes to change the machine to the new set-up and an additional 20 minutes to get the quality right, your changeover time would be 35 minutes, not 15. Including both numbers is beneficial to highlight the dual focus on quality improvements and downtime. Quality improvements should provide pinpoint accuracy and minimize the amount of tweaking while downtime moves internal tasks to external, improves internal tasks, and runs tasks in parallel with each other.

Since most companies don't have enough product demand to create dedicated lines for only one product, the same equipment must produce multiple products, thus creating the need for changeovers. Most companies don't like changeovers because of the impact on production and output, while people don’t like them because of the time and work required. As a result, we try to avoid them. Typically, the longer the changeover, the less frequently the changeover occurs. This practice drives high inventory levels of some parts while creating outages of other parts. In extreme cases, it may be several days or weeks before the customer’s parts are produced. However, in that situation, the schedule is usually interrupted, and an additional changeover is added to produce the needed parts. This in turn forces another changeover to get back on schedule. These changes bring chaos throughout the process and the supporting, upstream, and downstream processes.

The reason to focus on SMED activities is that changeovers occur more often, which should produce a mix of products that aligns with customer's needs. SMED creates an environment for smaller batches of production and flexible and agile schedules that respond to day-to-day needs. It is a misconception to think the only reason to improve the changeover time is to reduce the downtime. It is not uncommon for SMED activities to provide reductions in cost by reducing inventory levels, creating less scrap and rework while increasing output.

What are the benefits of SMED activities?

1. Reduction in downtime of your machine . Every minute a machine is not running quality product; is a missed production opportunity. By reducing downtime, you can improve your output without increasing cost.

2. Quality focus and improvement . I have watched many processes that require a lot of time to get the quality right after the changeover. In some cases, it takes more time to get the quality right than it does to get the equipment ready to run. So, during a SMED event, the team should focus on how to get a quality part the first time. We all have seen machines and processes that run well, then you complete a changeover, and now the line just won’t run good product. This is where a quality focus during the SMED activities drives better yields.

3. Improved visual management . Using 5S, visual controls, and standardized work should improve quality outputs and help set clear expectations during the preparation and execution of the changeover.

4. Not just about machinery and equipment . I think there is a misnomer that SMED is all about equipment and machinery. I believe the methodology behind SMED can be applied to any process that requires a transition from task A to task B. A few examples of non-traditional changeovers:

a. A hospital procedure room being cleaned and prepared for the next patient.

b. A doctor's office exam room being cleaned and prepared for the next patient.

c. A landscape crew completing work at one client’s property and starting work at another property.

d. A customer service representative completing one call and starting the next.

e. An office team member completing one report and starting another report.

f. A hotel housekeeper finishing tidying one room and starting the next.

None of these examples included changing over equipment, but they do have a common thread of finishing job A and moving to job B. So, you could apply the same methodology deployed for a traditional SMED activity. Start by observing the process to see if the person had the tools and supplies, they needed. Did the person know what task to complete next? Was the quality acceptable from the start, or were corrections needed? The answers indicate if non-traditional SMED activities could benefit your processes.

How do you perform a SMED event ? In an ideal state, a changeover is completed in 10 minutes or less. In my experience, that is usually not achievable with the first SMED event, so you may start by setting a target of 50%-75% reduction. A SMED event typically is formatted as a kaizen activity so before beginning the activity create a team charter, select the cross-functional team, and spend time at the Gemba collecting data on the current changeovers. If the changeover time is short and occurs frequently, then the team should observe several iterations of the process. If the changeover is long or occurs infrequently, you may want to video a changeover and then use the video for the team to observe. If you video the process, include all the operators and steps.

Once you've completed the observations, you're then ready to create and prioritize the list of improvements. Possible improvements may include:

· 5S toolboxes and tools.

· Visual display board and tool work boards. Along with color coding the tooling.

· Standardized work of the process for changeover.

· Equipment modification and testing.

· Equipment and tooling repair.

· Tooling replacement.

· Quality tooling and gauges replaced or repaired.

· Quality standards posted.

· General cleaning and repairs.

· Prepping for a changeover to reduce internal tasks (tasks that can only be completed when the equipment or line is stopped)

At the end of an SMED event, complete a new time study and verify other deliverables like inventory levels and scrap rates.

Can your company benefit from SMED ? Look at the questions below and see if any of them seem familiar.

· Do your changeovers take more than 10 minutes?

· How much time does it take to get the quality correct after a process has a changeover?

· How many people are involved in a changeover?

· Do you find your customers are waiting on parts that are scheduled to be run later?

· Do you find you have outages of some parts and products and a surplus of others?

· Does your WIP between processes have large swings of high and low levels?

· When you observe a changeover do they run smoothly and seem well planned? Does everyone have the parts, the products, and the materials and tools they need?

· Does the line know what product is running next?

· Do you see team members assisting one another during a changeover?

The answer to these questions will help you see it’s time to build long-term success by applying SMED tools to your changeovers.

Hopefully, this article has provided insight into SMED, why perform SMED activities, and how it can help build resilience for future success when things are slow. At Peak Productivity, we are always interested in hearing your thoughts and your comments, so feel free to post in the comments section. Also, post your questions or your experiences with SMED work. And as always, if you've missed any of the series of these blogs, feel free to check them out at our Peak Productivity website.

Embracing Slower Times - Part 8: Unleashing Efficiency through Total Productive Maintenance (TPM) Applications

Wed, 30 Aug 2023 13:12:05 GMT

Unleashing Efficiency through Total Productive Maintenance (TPM)

Hint: It's NOT about just checking the boxes....

Welcome to the next installment of our series on building resilience during periods of lower demand. This article will address some practical applications and strategies for implementing Total Productive Maintenance (TPM) in your organization. This is a key toolset for enabling process stability and helping your team on the path to continuous improvement.

In this article, I will be discussing Total Productive Maintenance (TPM) – a comprehensive approach to increase equipment reliability, boost productivity, and drive continuous improvement. For machine-based processes, TPM provides a solid foundation for organizations seeking stability and long-term success.

Without stable equipment to support your processes, output can vary greatly due to downtime and yield losses. If your current environment is one of constant firefighting – then perhaps TPM is a toolset you should consider looking into during slower times.

There is a vast amount written on TPM that is readily available for your team to access. I would suggest that before you seek to copy/paste these tools, you look closely at your specific business case. I would approach the application of TPM tools just like any other. I would look for ways that support my unique processes and equipment, while providing an excellent return on any investment. I will focus this article on those tools that can pay the quickest returns for your efforts.

Your customer wants good quality products, on time and at a reasonable cost. They normally are not willing to pay extra for you to have a TPM system. So, you will need to develop solid financial analysis to justify the cost of implementation to your management team. Without good historical data, this can be difficult. I recommend you start with a simple understanding of your true output capacity for each step in your process. If you’ve followed our series, you should have a good understanding from our Value Stream Map article. Assume no restrictions at first – unlimited demand, with unlimited inventory to run, no yield or startup losses, and your current process mixture with zero setup and changeover time. It should be your total scheduled time multiplied by your designed output rate. This is your Scheduled Calculated Capacity for each step in your process. Your Total Calculated Capacity is your output if you ran 24X7.

Compare the scheduled capacity to what you are currently producing in shippable product. The difference is your potential opportunity. You have also just provided yourself with a simple means of approximating your Overall Equipment Effectiveness (OEE), and your Total Asset Utilization (TAU).

Your OEE = Current Good Output / Scheduled Calculated Capacity
Your TAU = Current Good Output / Total Calculated Capacity

Your final number will be a percentage less than 100%. Your total opportunity is 100% - Your TAU.

OEE and TAU: Measuring Performance and Downtime

If you want to calculate your OEE and TAU exactly, then you will have to first calculate the component metrics and then multiply them all together. There are many common misconceptions about these metrics that can hinder your improvement initiatives. I’ve included some key points to always keep in mind when communicating them.

OEE measures the efficiency of equipment by assessing the product of the availability, performance, and quality. OEE provides a comprehensive view of equipment performance compared to the organization’s plan and helps identify improvement opportunities. You can perform the calculation for a specific piece of equipment or combine for a collection of machines.

OEE = OA X PR X QR , where:

Operational Availability (OA) = Actual Runtime / Total Available Time

Productivity Rate (PR) = Actual Output Rate / Designed Output Rate

Quality Rate (QR) = Good Product / Total Product Produced

When you calculate OA, you are allowed to make allowances for exceptions when the machine is scheduled to be down. An exception might be for scheduled downtime to perform maintenance or because you don’t work on Sunday. These are planned events by management. The exceptions are removed by subtracting all excepted time from the total time – leaving you with the Total Available Time in the denominator. OEE tells you how well you operate when you’re scheduled to run.

Total Asset Utilization (TAU): Is very similar to the OEE calculation but does not allow for any downtime exceptions. It assumes that you are paying for the machine 24X7 and tells you how you are running to an absolute reference (perfection). Once again, it can be calculated for one or a group of machines.

TAU = UT X PR X QR , where:

Uptime (UT) = Actual Runtime / Total Time

Productivity Rate (PR) = Actual Output Rate / Designed Output Rate

Quality Rate (QR) = Good Product / Total Product Produced

The only real difference between OEE and TAU is that OEE takes your defined exceptions into account. Each metric tells you different things – OEE about how well you are operating when you are scheduled to run and TAU about how well you are performing absolutely. They should be used to compare “like machines” to themselves between time periods. They are not as effective in all cases when comparing different types of machines for several reasons.

These metrics are intended to empower organizations to analyze downtime, identify patterns, and prioritize improvement initiatives that directly impact production efficiency and quality. In my experience there is significant misunderstanding of what these metrics mean and what they tell management about the current condition. There are many written references about “World Class OEE” is equal to X%. Unfortunately, this can lead some management teams to set the target at an arbitrary level. Recall from earlier that OEE and TAU are not as effective when used to compare dissimilar resources. The metrics are very effective when used to compare similar machines in time A to the same equipment in time B. However, it would be irresponsible to compare the TAU of a continuous flow furnace to a highly manual set up machining process. They are two very different processes. We need apples to apples comparisons to determine “goodness” and to evaluate true opportunities. I strongly suggest you use the metrics to compare machines to either themselves or similar machines – with the baseline before improvement and after improvement to determine what you’ve gained.

Seeking to achieve some artificial target number can lead to overproduction because operations may continue to produce more than required just to achieve the arbitrary target. Your target level for OEE or TAU (including how much improvement you seek) should be based on your business needs. Any excess improvement could be considered overprocessing if not balanced in the process.

A dirty secret – if you increase your design speed on the line but not your output target, your OEE or TAU will actually DECREASE . By running the line faster, you will achieve your target output sooner. So now you will need less time to run – so your OA or UT will be lower. That’s perfectly OK – but oftentimes it is misunderstood by management as a step back. You will need to be able to explain how your improvement will impact OEE, in this case negatively. By increasing the speed of the equipment, you don’t need as much runtime to produce the same amount of output. So, you should also lower your target for OEE and TAU.

Now that you’ve established your current condition, you should compare your current output levels to your business needs. You can now calculate backwards to determine what improvement level is needed for OEE/TAU. As noted, if you plan to change design speeds, keep in mind that OEE/TAU changes may counterintuitively be affected.

To achieve your production stability, I suggest initially striving to meet the daily goal for 19 out of 20 days. This means you will need to build some level of excess capability into your OEE/TAU target so that you have enough of a passing gear to overcome minor disruptions and failures that always are present at gemba. How much excess you will need is based on how much noise you currently have in your processes. As you start to make improvements it is important to track your outputs for signals – what is the data telling you. Make use of simple statistical analysis to determine how your output levels are changing over time – you may need to both reduce your variation and increase your performance to achieve the required target levels. You can also perform simple simulations to test different target levels to improve your predictability in meeting business needs.

The 6 Big Losses: Where to Find the “Gold Nuggets”

TPM activities focus on eliminating six major losses that hinder equipment effectiveness:

Equipment breakdowns
Setup and adjustment losses
Idling and minor stoppages
Reduced speed losses
Defects and rework
Start-up and yield losses

By meticulously addressing each loss with tailored countermeasures, organizations can regain control over their equipment's performance and dramatically enhance overall efficiency. TPM's proactive approach emphasizes continuous monitoring, early detection, and swift resolution of issues, ensuring optimal equipment availability.

If you have good data for downtime, this can be very easy. If not, there is no better time to start than now. But it comes at a cost – my suggestion is going for speed with some accuracy instead of 100% accuracy in 6 months with some fancy automated system. Don’t seek perfection. A simple paper chart or log will be fine. Have the production team perform a quick sniff test to see if the data reflects their understanding of gemba. Develop pareto charts or similar visuals and go after the repeat issues and larger downtime problems first.

Equipment Breakdowns :

If you don’t have standard work and setup documentation for both operations and typical maintenance repairs – this should be addressed immediately. This should include troubleshooting instructions for the most common issues that negatively impact productivity.

Your maintenance record database should tell you what is breaking, where it’s breaking and how frequently it’s breaking. Engineering and maintenance leaders should already be using that data. Augmenting their efforts with operators and maintenance personnel can provide interesting results – it’s not uncommon for log entries to be misleading or not filled out completely. Getting your data validated is important before you jump in and start to solve any problem. Most decent systems will allow you to develop pareto charts by process, downtime reasons and date ranges. Work with the production team to understand operational constraints and focus improvement efforts there first. You can also use metrics such as Mean Time Between Failure (MTBF) and Mean Time to Repair (MTTR) to track maintenance team improvement.

Setup and Adjustment Losses:

The best way to understand these losses is by simple observation and documenting what you find. Include your most experienced operators here. They can probably identify multiple sources of variation occurring on the shop floor. Their insight can provide key information on what tools or improvements need to be made to simplify or stabilize changeovers. A good metric to track is the total time from the last good part completed to the first good part completed after the changeover.

Operators can have difficulty adjusting to SMED or team-based changeovers if they have spent many years working alone. You should recognize that these types of initiatives are just as much cultural changes as procedural changes. You will need to lay the groundwork and spend time on the reasons behind the changes, team skills, and the need for urgency. You may be tempted to skip this step, but don’t – hours spent upfront will save months later. Help them understand the “why” and then worry about the “how”. I’ve found that the pit-stop analogy works well if there is a strong business need connected to it.

Idling and Minor Stoppages:

Once again, observations are great if you don’t have a system in place to track these minor issues. Another really good way to build this dataset is if you have process cameras installed in the production areas. This can allow you to fast forward and skip normal operations and only focus on start-up where most issues are likely to be found. Make sure you have cleared the use of video for identifying productivity, quality, and safety issues with Human Resources to prevent any misunderstanding. Experienced operators have a wealth of knowledge here – they can tell you not only what the more common issues are, but also which machines tend to run worse. Issues resolved in this category can have a significant carryover to improving other loss factors – so they are attractive to focus on.

Reduced Speed Losses:

These are primarily linked to machines that can’t produce good quality products at their design speed due to various factors. There are also a few operational issues that can be found. Some of the more common I’ve seen are:

Variation in raw materials
Variation between machines
Slowing down the line due to breaks, shift changes, etc...
Training gaps – operator doesn’t feel comfortable at full speed

Once you understand the issues, there are numerous solutions and countermeasures available to correct them.

Defects and Rework:

You should already have a team working on defects. This is quite commonly performed by engineering and quality functions. When times are slow everyone automatically starts to focus internally and worry more about defect scrap since it’s very expensive. Most teams will focus their entire efforts on NET YIELD (NY%) and the costs associated with them.

My suggestion is to have a separate team focus on correcting your FIRST PASS YIELD (FPY%) to reduce REWORK . Most organizations have a very large hidden factory filled with non-standard/abnormal flow paths and rework processes that greatly impact stable output. It is not uncommon to have zero resources connected to solving this issue. I would assign a manufacturing leader and small team to look at the top rework reasons. A few quick and simple solutions here can often have a significant impact on variability of output. Many of the solutions for FPY% issues also improve the overall NY% because items are not scrapped during rework operations. This should be a key focus for your TPM efforts.

Start-up and Yield Losses:

One of the worst things that lower production levels bring is that you don’t need to run the equipment full-time. Many organizations will reduce headcount and even consolidate shifts for cost and control reasons. That can lead to higher running costs and greater yield losses.

Most production machines “like” to run and they perform better when in a stable production environment. Constantly shutting down, starting up and coming into process tolerances can negatively affect machine performance, quality output and raw materials wasted. It is likely better to run fewer lines, but to do so continuously. For example, if you cut out your night shift you will waste time at the start of the shift warming up machines, and at the end of the shift shutting them down and purging. If you must eliminate shifts for financial reasons, then you should consider small skeleton crews assigned to machine ramping or preheating.

Your more experienced operators can provide details on how this type of production scheduling will affect productivity and process yields. There are many countermeasures your team can use to limit the overall impact. However, this is an example of how your reaction to the slowdown in production could potentially be more detrimental to cost efficiency than just the loss of volume.

Empowering Operators: Autonomous Maintenance

Autonomous Maintenance empowers operators to take ownership of equipment care, fostering a sense of pride and responsibility. This approach involves cleaning, inspection, lubrication, and minor maintenance tasks, enabling operators to detect abnormalities and address issues promptly.

This is a great program to install if you have the bandwidth and the managerial courage to sustain it. However, any benefits you gain will be quickly lost if you push this initiative to the side once production demand returns. I have seen this happen many times, and loss of morale in the production and maintenance group can take a long time to recover. I do not recommend implementing this just because you have the time. Autonomous Care is one part of a larger site wide TPM initiative and needs to be developed in due course within the larger rollout schedule.

There are many ways to include the autonomous care mindset within the production and maintenance teams during periods of lower demand. One of these is to develop an overhaul schedule for production machinery. This can range from deep cleaning of machines to a complete tear down to bare metal and rebuild. During this initiative you can introduce basic systems to promote autonomous care practices such as early detection, lubrication, and cleaning procedures. Any significant downtime should also include many other types of improvements to the equipment in parallel:

Safety: guarding and power isolation for lockout/tagout initiatives
Quality: control systems, poka-yoke, inspection systems and presets for process controls
Productivity: SMED conversion, automation systems, and speed increases
Maintenance: Overdue and long cycle maintenance tasks, component upgrades, projects for ease of maintenance, early detection/predictive maintenance systems.

Conclusion:

TPM offers a comprehensive framework for organizations seeking stability and resilience, regardless of market fluctuations. By addressing inefficiencies, maximizing equipment performance, and fostering a culture of proactive maintenance, TPM lays the groundwork for long-term success. As you navigate the challenges of slower times, consider how TPM can empower your organization to optimize operations, drive continuous improvement, and thrive in the face of uncertainty.

Whether you need to embark on your own TPM journey, or just take advantage of some of the items we’ve explored in this article, reach out to us at Peak Productivity to discuss how we can support your team. Together, we'll pave the way for a leaner, more efficient future.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Embracing Slower Times - Part 7: Building Resiliency for Long-Term Success Applying Value Stream Maps

Wed, 23 Aug 2023 17:22:45 GMT

This is Blog 7 in a 13-part series "Embracing Slower Times: Building Resiliency for Long-Term Success." In this week’s blog, I will discuss using the slow times to build a Value Stream Map. Creating an up-to-date, current state Value Stream Map with future improvements identified can help drive improvements both now and, in the future, as well as reducing chaos. Time and resource hurdles often slow the rate of implementation, meaning that slower times are the perfect moment to review, update, and improve your value stream.

This is the 7 ^th of a 13-part series entitled “Embracing Slower Times: Building Resiliency for Long-Term Success.” For some companies, there is a normal ebb and flow to their demand, a seasonality of their products. For other companies, demand is more level and predictable. Understanding what to do with excess resources and capacity when things slow down can be a bit of a challenge. In this week’s blog, I will discuss using the slow times to build a Value Stream Map. Creating an up-to-date, current state Value Stream Map with future improvements identified can help drive improvements both now and, in the future, as well as reducing chaos. Time and resource hurdles often slow the rate of implementation, meaning that slower times are the perfect moment to review, update, and improve your value stream.

What is a value stream map? A value stream map is a tool used in lean manufacturing and continuous improvement to identify the customers and vendors connected to the process, the current steps within a process, and the systems that bind all three together. All this information comes together to create a drawing that represents how things currently flow and move from area to area.

There are a few rules which are typically followed in creating a value stream map. These include drawing the customers in the far top right corner and the suppliers in the far top left corner. Between the customer and the supplier are the information systems used to connect the company, the customer, and the supplier. This graphic depicts the information flow between software systems for inventory management, emails between customers or suppliers, printed order sheets and printed shipping labels, etc.

The bottom of the value stream map includes the process steps required to make the product or provide the service. Each value-added step for each process includes data boxes which contain pertinent information on the specific process step. This data can vary from process to process but typically includes, at minimum, changeover time, number of employees, cycle times and first pass yield (FPY). In some cases, a map may be created without data blocks. This is typically done when the process is unstable or if the map is very high-level map and spans multiple plants.

When creating a map, you should have 4 to 10 team members to represent a cross-section of the various processes included in the map. Be sure to include someone from the upstream and downstream areas so the overall impact of issues included in the map is fully understood. Ideally, depending on the company’s level of comfort, the team should include vendor and customer representatives.

With the team selected, it is time to draw. There are a couple of ways to create the map, depending on the value stream itself. When possible, I take the team to Gemba. At the Gemba, everyone makes observations, records data for the process boxes, and collects samples of paperwork and information used in the process. However, if the process is brand new or going to the Gemba is not an option, then the team will have to discuss the steps within the process, the customer needs, and the vendor’s capabilities. Once we have a consensus on the steps, sequence, and information flow, it is time to populate the data boxes. When the current state map is complete, the team identifies issues, gaps, and problems within the process. The items they identify are written on star-shaped graphics known as Kaizen starbursts. Most often, these starbursts key in on wastes within the process. A thorough understanding of the eight wastes can help focus and categorize these discussions.

Once identified, the issues and opportunities should be reviewed and prioritized. There are many tools which can be used to prioritize a value stream map’s kaizen starbursts. One of my favorites is the four quadrants map. To create the quadrants, let one of the axes be impact ranging from high to low and the other be cost, also ranging from high to low. The four quadrants are created by creating boxes consisting of the following areas on the graph: low cost and low impact, low cost and high impact, high cost and low impact and high cost and high impact. The principle is to prioritize improvements with high impact and low cost. Once the quadrants are drawn, starbursts are added and prioritized, the new future state map is generated.

In addition to helping the kaizen team understand the current state and opportunities, the map is also an excellent tool for communicating with the broader organization. The maps are shown to team members throughout the process to drive discussion on implementation plans and timing for improvements. These discussions will help generate support and buy-in from team members.

No organization likes slowdowns and the problems that they bring, but the organization that leverages the time and additional resources to drive improvement will be the ones that emerge from the slowdown strongest. Understanding our processes and the steps we can take to make them quicker, safer, and easier, with higher quality, more communication, and better visuals should excite all team members during the activities, and all of the shareholders once the results begin pouring in after demand returns.

Which processes should we start with? Those that would benefit most from more development, better efficiencies, better quality, or faster lead times.

One additional tip for companies that have seasonal demand: keep a dry-erase board next to the value stream map to track a running list of problems. In periods of high demand when there aren’t resources or time, but when problems are most clearly seen, grow the list with details of the issues, details on what and why and the consequences. When demand begins to slow, have the team prioritize the list to resolve problems and implement improvements. This work helps to transform the current state map into the new future state. Additionally, I have found that team members enjoy this approach because they know their problems and issues will be addressed, even if not immediately when they happen.

Hopefully, you have found this blog interesting and helpful! Feel free to post your comments on how you've used value stream maps in times of lower demand to help make improvements. As always, if you have questions or if you'd like more information on value streams, waste elimination, or the eight waste please feel free to reach out to me at Peak Productivity.

Embracing Slower Times - Part 6: The Power of Leader Standard Work (LSW) in Driving Stability and Continuous Improvement

Mon, 14 Aug 2023 14:31:53 GMT

This article is part 6 in our series on how to build resilience for long-term success during periods of lower demand. In this issue, I will address how Leader Standard Work (LSW) will keep you focused on your path to continuous improvement.

Many years ago, I had a recently promoted technician working with me that was struggling to understand how to improve the stability of their process and better support their production team. They had advanced primarily based on superior skills and performance as an operator. As leaders, we often mistakenly assume that because people are technically good at some activity, they automatically are suited to management or support roles. However, not every all-star player makes the transition into a great coach. In this case, the tech couldn’t empathize with others who were struggling to perform the standard work. They were adamant that everyone should be able to flawlessly perform the job, because “I could do it”. They quickly blamed any quality or productivity gaps on character issues such as operator attitude or poor work habits.

Luckily, I had just returned from a leadership meeting where the company invited David Mann to speak about his book, “ Creating a Lean Culture ”. As a bona fide process geek, I read the book on the plane and was eager to test his methods after hearing his talk. When I got back, I challenged the tech to learn LSW and to experiment with me as the test subject. Our initial goal was to improve 5S standards in our team’s office area. At the time we were near the bottom in plant scores. We would leverage what we learned in our little experiment to develop good LSW training for the rest of our engineering team. My hope was that this tech could step outside their “expertise-trap” and learn how to lead improvement without authority.

That was over twenty-five years ago and the lessons we learned together have stuck with me. I religiously use LSW. The last activity I do each Friday is to pull out my LSW for the week and reflect on my performance. I ask myself what worked, what didn’t, and how I need to change/update my approach for the following week. I take what I learn and build the next week’s LSW – that is the last action for the week. I try to keep up on the latest best practices for LSW and visual controls and incorporate them into my own processes. Over the years, I’ve run over a thousand LSW “experiments” on myself. In this article, I’ve compiled some key points that I hope can benefit your LSW journey.

The Need for Control: Preventing the Drift Towards Chaos

In organizations where processes lack control, life is a never-ending cycle of firefighting. Leaders and teams find themselves consumed by addressing one crisis after another, leaving little time for proactive or improvement work. This constant state of reaction hampers productivity, innovation, and overall efficiency.

Entropy poses a constant threat to the organization’s stability and success. Without proper management oversight, control and intervention, systems will tend to deviate from their desired state. This will lead to inefficiencies and suboptimal performance. During slower times, it is critical for leaders to recognize and address entropy by implementing standard processes and routines that stabilize operations. This entails setting clear expectations, defining roles, and establishing visual controls to monitor performance. By combating entropy through some process of control, organizations can maintain order, optimize processes, and prevent a decline into chaos.

David Mann's Vision: Focus on Inputs, Not Results

David Mann teaches us how lean is deceptively simple but requires strict discipline to achieve results consistently. To effectively apply lean practices, you must shift your focus from results-based thinking to process orientation. In other words, pay attention to the inputs instead of the outputs. He emphasizes the use of visual controls to provide real-time visibility into process status. By identifying gaps between expected and actual outcomes in key performance indicators, leaders can quickly identify deviations, address challenges, and make data-driven decisions. To support this, Mann introduces a standard accountability process, ensuring that leaders are actively involved in problem-solving and supporting their teams.

LSW is the framework for you to ensure your processes are in control. By diligently establishing and practicing LSW, you can achieve better stability and control of your operations. The fundamental principle behind LSW is to ensure that all necessary inputs are in place and that processes are monitored with sufficient frequency to withstand the inevitable effects of entropy.

LSW provides a powerful antidote to the cycle of chaos by instilling discipline and structure in how processes are managed. As leaders establish clear standards, monitor performance, and take timely action, they gradually bring processes under control. This shift from reactive problem-solving to proactive management empowers teams to focus more on continuous improvement initiatives and strategic projects. By using LSW to develop process control, organizations can break free from the cycle of firefighting and create an environment where time and effort are dedicated to making lasting improvements and driving success.

Watching and Reacting: Right Inputs Lead to Right Outputs

Results matter. Everyone is responsible for achieving specific results within their organization. An old boss of mine had a sign on his office door that said, “At the beginning of the day it’s all about opportunity, but at the end of the day it’s all about results”. Traditionally, management didn’t care much about how you achieved your results, as long as you did. Thankfully that has changed over time, but the objective still needs to be met.

Keeping your promises: As leaders, it's crucial to set clear expectations for your team and yourself. Frequently monitoring progress to the target and reacting to gaps is a powerful tool to drive accountability. It also creates urgency within the team to maintain an adequate pace. Just as LSW keeps us on track on whether we've accomplished what we intended; it also keeps us focused on the frequency to check progress – so that we don’t let things drift out of control.

Delivering on our commitments is essential. If we find ourselves falling behind, we must immediately intervene and/or seek support to get back on track. Timely communication about challenges allows leadership to marshal additional resources and support to address the issue effectively. Waiting too long to seek help can severely limit problem-solving options and impede the team's ability to fully recover.

Asking for help is a sign of strength, not weakness. If we make meeting customer requirements our priority, we will develop leaders who are more concerned with their customers than their own image. For long term success, it is essential to create teams that proactively ask for help whenever your customer might be impacted. Only then will we have an environment of accountability and openness, ensuring that challenges are addressed collaboratively and efficiently.

Understanding Hansei - The Need for Reflection:

Hansei, refers to the act of self-reflection, a critical practice in Lean and continuous improvement methodologies. As leaders, we must regularly set aside time to reflect on our LSW and its effectiveness. At the end of each week, taking a step back and assessing our LSW allows us to identify areas that need improvement. By doing so, we can reduce firefighting and enhance stability in our processes. The purpose of hansei is to allocate more time and resources to improvement initiatives and strategic planning, minimizing reactive responses to issues. Embracing hansei helps us evolve from a reactive leadership style to a proactive one, ultimately contributing to the growth and success of our organizations.

In the realm of LSW, humility plays a pivotal role in fostering a culture of continuous improvement. It begins with leaders genuinely understanding the significance of LSW and its potential impact on their processes. Before assigning LSW to others, managers must test their own ideas about its implementation on themselves. This act of self-reflection enables leaders to experience the challenges and opportunities firsthand, which, in turn, strengthens their ability to guide their teams effectively.

Dynamic Nature of Leader Standard Work:

Leader Standard Work is not a one-time checklist; it embodies continuous improvement principles. Every week, leaders should reflect on their LSW, assessing what's working well and what can be improved. Just as we expect our teams to follow the PDCA cycle, we should apply the same principles to our own leadership practices. The PDCA cycle is ingrained within LSW, serving as a framework for driving improvements. Each week, leaders Plan their activities, Do the work, Check the results, and Act on the lessons learned. This iterative approach ensures that our leadership practices continuously evolve, and we become more effective in supporting our teams and driving improvement initiatives.

Leader Standard Work is not a static set of procedures; it is a dynamic process that evolves as leaders gather more insights about their processes. Rather than being imposed from the top down, LSW is most effective when crafted by those who are directly involved in the work—the experts themselves, the leaders/owners of the process. This can be engineers, accountants, managers, or executives. They have an intimate understanding of the process, are best positioned to identify the critical tasks, set appropriate frequencies, and pinpoint potential issues.

Embracing the Spirit of Continuous Improvement:

The essence of LSW lies in fostering a culture of continuous improvement. By integrating hansei and the PDCA cycle into our LSW, we reinforce the spirit of kaizen. As we dedicate time for reflection and improvement, we empower our teams to do the same, creating a culture where everyone is engaged in seeking better ways of doing things. This collective pursuit of excellence builds a strong foundation for our organizations to thrive in both slow and busy times.

As with operator standard work, LSW also follows the four stages of learning:

1) "I understand,"

2) "I can do with help,"

3) "I can do by myself,"

4) "I can teach."

Starting with the understanding of LSW concepts, leaders progress through the stages of hands-on implementation and mastery. Eventually, they reach a level of proficiency where they can teach and guide others effectively in adhering to LSW principles. This continuous cycle of learning and teaching ensures that LSW remains a dynamic and powerful tool for driving sustainable improvement throughout the organization.

One-on-one meetings serve as an ideal platform for leaders to discuss LSW challenges and task frequencies with their team members. These conversations provide valuable insights into the real-time experiences of the operators, the issues they encounter, and the problem-solving efforts being employed to modify LSW for optimal outcomes. Such dialogues enable leaders to refine and tailor LSW based on the collective intelligence and expertise of their team members.

The Three Rules of Management: Achieving Stability, then Improvement

The foundation of effective management can be broken down into three fundamental functions:

Process Stability = Support systems to achieve your current condition
Process Improvement = Systems to improve your current condition
Engagement = knowing when to support / help as well as when to step back and return to Stability or Improvement

If your organization is always in firefighting mode, then you probably don’t have stable processes. To combat this, you should create two dedicated groups of resources: one to react to the noise and one to fix the noise. If you try to do this with only a single team, they will default to firefighting. Make sure your team is working to their own LSW processes and doesn’t enjoy chaos. Coach them to realize zero emergencies is the goal, not overcoming the emergency. Traditionally, we loved heroes who “just made it happen”. In our new enlightened view, we should promote those who can achieve results without drama and intervention.

If you have some level of process stability, you must make sure that the process is running to your standards. LSW, coupled with visual controls and run rules are great tools to maintain processes in control. When your processes are running in control you can focus your efforts on improvement activities. When the process breaks, you must return to supporting your process until it returns back in control. This is the engagement function of LSW. The better your process stability, the more time you and your team can focus on improvement. If your process is not stable, the best thing to work on during slow periods is gaining stability and developing good LSW to maintain it.

Holding the Line:

There is a great analogy attributed to Taiichi Ohno where he describes the improvement work on a process to a boxer working out to maintain his status in a certain weight class. If the boxer only loses fat, then the exercise he’s putting in is good and he is more efficient. But if the weight lost includes muscle, then his efforts are hurting his purpose and he’s getting weaker as a result. In the same manner, LSW should help us keep the gains we make during improvement, while keeping us away from the waste we remove.

In a similar way, the idea of a military campaign not giving back any ground is equally applicable in the business context. Once an organization achieves positive changes and establishes a foundation of stability through LSW, leaders must strive to sustain these gains and build upon them. This involves reinforcing the new practices, promoting a culture of accountability, and empowering employees to contribute to ongoing improvement initiatives. By continuously refining and expanding LSW, organizations can achieve long-term success and navigate through both challenging and prosperous times.

The Groundhog Day Approach – It’s ME competing against ME:

My favorite movie is “Groundhog Day”. At the bottom of my LSW sheet all these years is a question that Phil Connors asks his cameraman when he first starts his transition into becoming a better person. “Larry, what do you think?” If you watch the scene, once Phil asks the question, Larry straightens up and his chest puffs out. Until then, he was essentially forgotten. By asking for his opinion on creative input, Phil has now engaged Larry. You can see the power and bond it creates between them. That scene always hits home for me.

I keep “Larry, what do you think?” and other reminders at the bottom of my LSW sheet because I have blind spots. Personally, I continually need to remind myself to always engage others. You may have the same problem as me, or you may need different reminders to be a better leader. Regardless, LSW is about making sure we continually strive to be our best. And if that means I use a silly line from a movie – who cares? Each week my LSW is my best known ME going against the actual ME. Sometimes I succeed and other times I don’t. When I can’t achieve something, I don’t take it as I’m a failure, but as an opportunity to get better.

In one of my most successful roles, I was able to hone my LSW down to a couple of hours a day. The rest of my time was spent on coaching and improving the team at gemba. In other roles, I was lucky to finish all the work in 8 hours per day. Regardless, every week I reflected on what I needed to do to get better and created a new hypothesis and ran another experiment. LSW is about improving our own process.

Conclusion:

Getting back to our technician. Once we deployed LSW throughout our team, our processes started becoming very stable. As a result, we were able to spend more time on improvement and problem-solving. Eventually we reduced our primary metric by over 80%. People started getting promoted and given opportunities. It changed my life.

Leader Standard Work is a potent tool that enables organizations to combat entropy, achieve stability, and drive continuous improvement. By adhering to the discipline of LSW, leaders can create a lean culture that thrives in any business environment. During slower times, the power of LSW lies in its ability to maintain order, optimize processes, and foster a resilient organization ready to seize opportunities and thrive in the face of adversity. As leaders embrace the concept of LSW, they embark on a transformative journey towards building a culture of continuous improvement and long-term success.

We invite you to take a bold step towards unlocking the full potential of your organization. Peak Productivity stands ready to partner with you on your journey to implement LSW with all the benefits it can bring. Our team of experts brings decades of experience in crafting LSW strategies, fostering a culture of accountability, and driving continuous improvement. Let's connect to explore how we can guide you in shaping a leaner, more efficient future. Reach out to us today and let's embark on a transformative path towards sustainable success. Visit our Peak Productivity LinkedIn page or website for more information and to start your journey of innovation and excellence.

Embracing Slower Times - Part 5: Applying Standardized Work for Long-Term Success

Thu, 10 Aug 2023 18:43:43 GMT

In part five of the Peak Productivity series “Embracing Slower Times: Building Resiliency for Long-Term Success” I discuss standardized work and how to apply it during slower times. Standardized work is one of the foundational tools in lean and can be applied to create new processes or improve existing ones by minimizing the waste within them. It allows an organization to establish the least wasteful way of completing the process steps while meeting the customer’s demand.

In part five of the Peak Productivity series “ Embracing Slower Times: Building Resiliency for Long-Term Success ” I discuss standardized work and how to apply it during slower times. Standardized work is one of the foundational tools in lean and can be applied to create new processes or improve existing ones by minimizing the waste within them. It allows an organization to establish the least wasteful way of completing the process steps while meeting the customer’s demand.

First let’s review the three components of standardized work: work sequence, WIP (work in process inventory), and Takt time. Takt time is the time required to meet the customer’s demand per unit. The calculation is the work time available divided by the customer demand. For a process to achieve customer demand the cycle time per part must be equal to or slightly less than the takt time. When the cycle time is greater than the takt time, the customer demand will not be met. WIP is the amount of inventory needed within the process steps to get the process running smoothly. Work sequence is the order in which the process steps are performed .

How do you determine if standardized work is currently being followed? When you go to the Gemba and observe a process, it will become apparent if there are standards in place. An area that has standardized work is going to be very consistent with a controlled amount of WIP. The process area will be neat and organized. People will understand the process steps for work to be completed, the sequence of those steps, and who is completing them. The standardized work will be posted at the location where the work occurs and should include the rate at which the process must flow to satisfy the customer’s demand. Even if standardization exists takt time and WIP should be adjusted to match the new lower demand.

So, an area that has no standardized work will look very different from the one just described. There will be a lot of variation in what the operators do in the process, which may lead to confusion about who is completing the work, or even what steps are required to complete the work. You may see an overabundance of some WIP and a shortage of others. The rate of output may not be understood as well. Based on your observations, you can determine the areas that are lacking standardized work.

Why should an organization work on updating or creating standardized work when things are slower? One reason is time. It is fairly time intensive to build standardized work from scratch. This means that instead of sending a person(s) home when things are slow, you can have them help create improvement through standardization of the processes. Usually, this involves the team members performing the required steps while someone performs the time studies. Doing so could lead to an increase in inventory, which is one of the downsides during a slow period. Make sure to validate there is ample space for the additional inventory along with confirming there is enough WIP for the process to run smoothly. One trick to mitigate the inventory dilemma is to have the operators walk through the steps in sequence but not have them produce the materials. Just remember, if the lines are not running you will need to add the machine times into the elemental or step times to show when the operators are waiting on the machinery and to provide the correct cycle times.

Another pro to standardized work is the limited materials needed to build the standardized work. Basic supplies include a stopwatch, clipboard, pencil, and log sheet to record the steps and times. The upfront cost is mainly the inventory and salaries. Once you complete the time studies and are ready to build the standardized work you will need:

Camera (take pictures of elemental steps/machinery)
Computer
Printer
Work combination sheet
Workplace layout sheet
Work sequence sheet

With the supplies and team members ready to go, it is time to create standardized work. Here are my steps for developing standardized work.

1. Go to the Gemba. Before I start the time studies, I go to Gemba for several hours to just observe the process. This gives me a feel for the frequency of a cycle, the intensity, and the sequence of work. I can also see how much movement is involved along with raw material or work in process flow into the area.

2. Calculate Takt time and determine inventory levels . When I come back from the Gemba, I will calculate the takt time. I may need to consult with the production or planning department about the actual customer demand. Sometimes this can be very tricky since a lot of organizations don’t run to customer demand. Instead, they may run to an artificially created demand that is determined by forecasts, pending orders, etc. It is important to know if you are building to an actual or a theoretical demand.

Also, I will discuss the WIP and the raw materials levels with the production or supply chain department. The slowdown may create issues for either WIP or raw material thus requiring calculations to establish the new inventory levels. The change could add inventory to cover some slowdowns from other departments or a reduction of materials.

I will meet with management about any changes to the work schedule that will impact the available hours in the Takt time calculation. I typically don’t include overtime in the available time since it may create a pull toward adding waste in the process. If you include overtime, it may cloud and obscure the root causes. With all this information I am now ready to calculate the rate.

3. Create a rough draft of the work sequence. Before I begin the time studies, I like to get the order of steps on paper. This allows me to focus on the stopwatch and the work instead of having to record the steps along with tracking the time.

4. Perform time studies. I watch and record the times for each step. I try to capture between 5-10 cycles with a couple of different operators. This will help build a better picture since there tend to be slight variations from person to person. However, if the cycle times are long, I watch 3-5 cycles. Just remember that you want to observe an average cycle without much variation.

In previous blogs, I've talked about the importance of being in the Gemba and some ways to approach basic observation. Observations that are performed with stopwatches can be nerve-wracking for all involved. No one likes to be timed or notes recorded about the observations. To help everyone feel comfortable in that situation I make sure to explain to everyone in the area what I am doing and why. I will do a couple of dry runs with the team before I start the watch. If things don't go smoothly, it's not a problem, just continue practicing until everyone is comfortable.

5. R eview the results with the team members and modify them as needed. After the time studies are completed, I pull the team back together to review the results. Everyone can see the notes from the studies and then provide me with valuable feedback on how the process went and if further studies or modifications are needed.

6. Create and post the standardized work and review it with all team members in the area. Now the data has been collected, the takt time calculated and the WIP levels determined, it's time to pull all the information together into the standardized work packet. At this point I take pencil and paper to create the work combination sheet, the workplace layout sheet, and the work sequence sheet. If needed, I go back to Gemba and take photos to include in the workplace layout and work sequence sheets. The completed sheets are taken to the Gemba and posted in the location where the work is done. I review it with all the team members in the area along with management and include a reminder that they are living documents and should be updated anytime a change is made to the process.

Once the standardized work is complete, follow-up to reinforce sustainment is critical. The follow-up doesn’t only occur at the Gemba but also with management. As the demand changes, the WIP and Takt time should be updated to reflect it. Standardized work will provide better visibility of the process and highlight issues that occur within it. This in turn will lead to better output and higher quality. So, the next time your demand drops and things slow down, take the opportunity to improve your business and build standardized work for your processes.

I am always interested in hearing how other people deploy lean tools, so feel free to add your thoughts about standardized work in the comments section. As always, we at Peak Productivity are more than happy to answer questions and discuss in more detail this tool, its application, and its benefits.

Embracing Slower Times - Part 4: Right Sized Problem-Solving Tools

Mon, 31 Jul 2023 13:54:05 GMT

This article is part 4 in our series on how to build resilience for long-term success during periods of lower demand. In this issue, we will address some ideas on how to effectively incorporate hourly personnel to support your ongoing problem-solving efforts. Their insight and expertise can generate significant long-term value if directed appropriately.

For previous articles in the series, please visit our blog page or company LinkedIn page. As always, we’d love to hear your feedback.

Success in business is heavily influenced by market conditions and effective problem-solving capabilities. Hoping for good fortune is not an effective strategy. Market conditions will heavily influence what opportunities present themselves and what solutions are available and achievable. However, you always control the timing of your actions – what you do and when. When the market declines, you have a choice. You can use any excess capacity to generate long-term VALUE or cut headcount for short term cashflow.

How to effectively deploy any extra intellectual capital will depend on your overall strategy. Good tools to develop a comprehensive understanding of opportunities are Value Stream Maps or Strategic A3’s . Details on how to develop organizational-wide strategies will be presented in a future article in this series.

To address specific problems, there are many effective problem-solving methods available. They range from very simple to extremely complicated based on the type and difficulty of the problem. We will focus this article on the types of problem-solving methods that can be deployed to support the different improvement teams discussed in our initial article:

Safety Team - Safety Upgrades and Programs
Uptime Team - TPM / Reliability Efforts
Quality Team - Quality Improvements / Defect Reduction
Productivity Team - Lean / Waste Reduction Initiatives
Project Team - Six Sigma/Lean Sigma Project Support

It is crucial that any tools employed for the short term can be easily learned and adopted by the team members. Rapid training and onboarding are essential to ensure that individuals can quickly grasp the problem-solving techniques to efficiently contribute to the team's effort. Each team should be led by a competent expert in both relevant improvement methods and facilitation skillsets.

As the teams learn how to resolve issues, they should report their findings to management. It’s important for you to participate and listen to their stories. Support their efforts and encourage them but hold them to a standard. If you aren’t getting results, don’t hesitate to get involved and understand gaps. Make changes to team rosters, direction, or leadership if necessary. They will respond to clear direction with results.

Successful problem solving is the ability to face the facts objectively, tackle challenges head-on and develop innovative solutions. Problem solving is a skill, but it is also a process. It requires discipline and humility.

I was taught to define a problem as simply any difference between what is expected and what occurs. A process is fundamentally a hypothesis – when you execute it, you have an expected outcome.

If the result is what you expected, then there is NO problem.
If you get a different result than you expected, then there IS a problem/opportunity.

This simplified definition is very useful in business, and we can apply it to every single process, every single cycle. We test our hypothesis by performing the process and we get a result. If we don’t get exactly what we expected, we need to figure out why.

Your process needs to be stable and repeatable to achieve your hypothesis consistently. If you don’t have good standards built for your process and stable systems supporting it, then any idea of repeatability is just a hope. The foundation of both stability and improvement is good standard work.

Most of you will be familiar with what I’ve just described as the PDCA cycle, which stands for PLAN, DO, CHECK, ACT. Continuous improvement is simply the PDCA cycle done repeatedly - discovering a series of problems, solving them, and updating the standards as you learn. This is known as the PDCA/SDCA cycle – where the S is for Standardizing or updating the standard work. As you learn, you should improve your process either by being more productive or improving your predictability. Following the PDCA/SDCA cycle can generate significant improvements over time. It is the foundation of many of the problem-solving methods we will discuss.

Before you break everyone into their individual teams, we recommend some basic classroom training in problem-solving principles. It does not need to be extensive, but certainly should cover the framework with a few group exercises on the shop floor to gain confidence. Outline the investment the organization is making and then present them with the business challenges. Talk about how they can leverage their expertise and newfound skills to achieve the team goals. Show confidence in them and it will be returned.

Before you begin improvement work, you should already have good defined standardized work for your processes. This should also be created for standard maintenance and common repair work. A best practice is to also have written procedures on troubleshooting, and control charts established with pre-determined reaction plans to recover from common abnormal events.

If you don’t have these in place – use any additional personnel to support a standardization initiative.

Safety Upgrades and Programs

The normal plant safety organization should already have identified potential hazards. They typically utilize various data sources, such as incident reports, near-miss data, and safety audits, to identify patterns, root causes, and areas for improvement. Common safety methods such as Hazard Analysis and Critical Control Points (HACCP), Failure Modes and Effects Analysis (FMEA), and Job Safety Analysis (JSA) can be employed to assess risks, prioritize safety improvements, and implement preventive measures.

These are very important data sources and can provide good initial understanding of where problems occur or have the potential to. You might be tempted to start with this data and begin analyzing – but this might only muddy the waters. Data is only a reflection of what is happening. To get to a full understanding the team should go and see at gemba, which is the “actual place where value happens”.

The Safety Team will be made up of experts in performing the existing standard work. Have them observe work cycles for variation. This will require training to compare what they see against what is written in the standard work. Have them draw out their observations – show what problem is creating variation and why. Don’t worry about skill here, it’s about creating a simple storyboard. Work that is hard to perform by its very nature contains ergonomic or other safety risks. This leads to the work being done differently and creates noise in your process which shows up as safety, quality, and productivity problems.

If they have clearly captured and drawn the current condition, it will reveal what is happening and how it leads to variation. Any simple problem-solving tool such as brainstorming or 5 why analysis can then be used to generate acceptable solutions. Your team should use a before/after drawing to communicate what was found and what they recommend changing. They should then work with the production operators to implement and test. Afterwards, these simple drawings can be used to communicate across the organization to leverage the learnings of the team.

TPM / Reliability Efforts

There should already be a TPM/Reliability team in place that leverages downtime of equipment and equipment failures as opportunities for problem-solving. Their goals should be to minimize unplanned disruptions and increase operational efficiency.

However, most attempts to match downtime information between production groups and the maintenance department fails for a variety of reasons. This can be problematic for short term initiatives and leads to heated debates about what issues are really occurring, who is to blame and how it’s the other guy that needs to change their ways. It is recommended that you avoid this distraction and start the Uptime Team focused on a single metric for simplicity – reduce the number of service calls. An experienced and designated maintenance trainer should be assigned to the team as a bridge between the functional members.

There are two main reasons for service calls – either equipment issues or training gaps. If there are persistent issues with equipment, then events should occur normally for similar processes. If repaired correctly, equipment should run for a normal time until the next failure. If this is not the case, there are underlying issues. Good metrics to review are the frequency of the major downtime issues, the time to restore/recover and the number of repeated calls in a period (first pass yield for repair).

Have the team participate in a discussion of this prepared data analysis and ask what the data is telling them about variations of downtime events:

When is it going down?
What is the frequency?
What repeat failures are occurring and when?

You will probably see spikes or trends show up. These are where the opportunities can be found and addressed. Have team members observe downtime events and repairs for the top issues. They should be checking and searching for variations from the standard work and/or troubleshooting guides – both by maintenance personnel and the operators on the line.

Use drawings to clearly document any deviations from standard and develop countermeasures or solutions to those variations. It is not uncommon to be able to significantly reduce both the frequency and impact of top downtime events through simply adherence to or slight improvements in standard work and troubleshooting guides. The work by this team will also create better long-term working relationships between the departments.

Quality / Defect Reduction

For the Quality Team , problem-solving revolves around addressing defects, yield losses, rework, and scrap. By closely examining these quality indicators, they can uncover errors or failures in stability within processes. Through techniques such as root cause analysis, statistical process control, and error-proofing methodologies, the Quality Team can identify areas for improvement, implement corrective actions, and drive continuous quality enhancement.

Observations with before/after pictures are once again a great tool to correct for variation from standards. This process should be done at the start of the initiative to identify and correct any simple issues due to weaknesses in the process. Refer to the Safety Team for details on how to conduct.

One of the simpler quality tools the team can use is a tin-soldier inspection process after each benchmark. This is a fast tool for finding where variation is occurring. By looking at differences in quality across a spectrum of products, you can easily identify variation between runs or individual parts. This is one technique where the Quality Team members can probably quickly pin-point to where variation is happening in your process and start problem solving.

They can also provide key support to initiatives as part of your broader quality strategy. Some activities their expertise can offer help are:

Creating Control Charts and Limits
Developing pre-determined reaction plans for out-of-control conditions
Standardizing setpoints for Process Control Process Discipline (PCPD) Initiatives

For more difficult quality or process issues, a stronger tool is often needed to get to the root cause. My favorite tool is a modified funnel approach. I have been working and refining this method over the last 25 years. In essence, it is the standard funnel approach, but each of the components has a detailed definition that must be satisfied before moving to the next step. The tollgates for this process are common: Initial Problem Perception, Real Problem, Point of Cause, Direct Cause and Root Cause. I have found this process can normally be used to effectively solve 95% of simple quality and production issues.

Lean and Productivity Initiatives

The Productivity Team focuses on problem-solving to optimize work processes and meet standard performance levels. They monitor indicators of variation, such as deviations from standard cycle times or output levels, to identify potential problems or areas of improvement. Utilizing tools like process mapping, value stream analysis, and work measurement techniques, the Productivity team can streamline workflows, eliminate bottlenecks, and enhance overall productivity and efficiency.

Once again, the simplest tool to deploy for your Productivity Team is the before/after drawing. Most organizations have a simple kaizen form that can be used with such drawings. If not, there are many good examples to develop your own that are available online.

If you have larger or more complex problems, using A3 thinking is one of the better methods. You can use parent A3’s for larger problems to develop the higher-level opportunities, then use child A3’s for the individual leverage points. The single page format of the A3 assists by demanding good clarity in your problem understanding, as well as providing an excellent tool for communication and deploying the lessons learned.

Depending on the type of value your organization generates, another option might be to focus on reducing changeover and setup times as part of a larger SMED initiative. These are excellent problem-solving activities that will pay handsome returns in the long run.

There is no shortage of books and training on these tools. If you have a good lean team, they should already be deployed or available.

Six Sigma/Lean Sigma Project Support

Project Teams working in collaboration with engineers or other professional groups will employ more complex data analysis and problem-solving tools. Operators should always be included in these efforts, not only for their insight, but also as internal customers for any improvements. Such teams will employ statistical techniques with certified belts directing the work, under the framework of Six Sigma, Lean Six Sigma, or other improvement methods. Projects using these advanced toolsets are normally formed to address specific technical challenges, drive innovation, or achieve breakthrough improvements. Training for specific tools used by the team should be performed as part of each specific activity.

Conclusion

Problem solving lies at the core of business success. While luck and randomness may occasionally play a role, it is the ability of your organization to effectively tackle challenges that drives sustained growth and resilience. By leveraging your internal experts and right sizing your problem-solving activities you will engage your workforce, create a learning organization, and develop a lasting competitive edge in the market. When the market slowdown ends, your supercharged team will now “print” money!

At Peak Productivity , we recognize the importance of problem solving in achieving organizational success. Our consulting services are designed to help businesses optimize their problem-solving processes, implement effective methodologies, and foster a culture of continuous improvement. Together, let's unlock the power of problem solving and drive your business towards greater heights of success.

Embracing Slower Times - Part 3: Applying 5S for Long-Term Success

Wed, 26 Jul 2023 15:44:49 GMT

In part 3 of our series titled “Embracing Slower Times: Building Resilience for Long-Term Success, we look at the advantages of applying 5S and creating a workplace organization to set your organization up for long-term success. In this blog, I discuss the benefits of 5S and some of the pushbacks you may encounter when trying to deploy it during slower times.

What successes have you seen come from a proper deployment of a 5S journey? Please post your thoughts in the comments section.

To me, 5S is a tricky tool, not in implementation but in justification. It can be difficult to justify due to the low hard savings (ROI) paired with the time and resources needed to execute it well. There is no better time to start or reinvigorate a 5S journey than when things are slow since you have both the time and the resources available. That is why I have included it in the series “Embracing Slower Times: Building Resilience for Long-Term Success”.

5S is one of the foundational tools in the lean toolbox and a go-to for many companies. The reason it is so well-liked is that it is usually low-cost to implement, easy to teach and comprehend, creates quick results, and is flexible in time and resource requirements. It also allows an organization to see how well it sustains this straightforward tool, before jumping into other tools that are more challenging to implement and sustain. So, with all those positive attributes why is there pushback to deploy 5S when things are slow?

First, financially 5S doesn’t always have a big bottom-line impact. In fact, in some cases, it can negatively impact them in the short term. When you dispose of old obsolete inventory or machinery, it may hit the asset value, and thus create a negative result. Also, it takes employees to do 5S. When demand or production is low, it is less expensive to send people out than to have them work on 5S. In my opinion that is focusing on the short-term impact and misses a perfect opportunity to improve the safety and functionality of an area while increasing the value of employees through training and education. In a few situations, 5S will drive positive bottom-line impact like eliminating the need for rented overflow storage space or avoidance of footprint expansion by better maximizing the current footprint.

If you find the financials are a sticking point, do some homework. Are there any off-site storage or monthly rental like trailers/storage units/etc. that could be reduced or eliminated if space was available? Are there plans for expansion of the current footprint via building or moving that could be prevented if space was available? If your organization tracks soft savings, calculate the potential by using the current cost/square foot rate and show it as an avoided cost. I always like to include safety avoidance. Using the estimated cost associated with safety concerns, you could convert that into avoidance savings using your historical safety data.

Second, sustainment is hard! Sometimes organizations must continually go back and fix the areas that have completed 5S activities. If that happens, the organization should stop and address the sustainment issues before continuing with more 5S work. That will involve managing the issues that allow people to go back to the old way of doing things and requires building a process that eliminates this frustration pattern by deploying better standards, visuals, and ownership involvement.

Lack of ownership is very confusing for everyone. A manager may clearly understand who owns an area, but does everyone working in the area know? More importantly, does the owner know they are responsible for the area? These issues can be overcome by doing a couple of things before you begin the 5S activities. First, meet with everyone in the area and explain what 5S is and then establish clear expectations around maintaining the gains. Second, clearly communicate who the owner of the area is and help create a standard that incorporates them into the day-to-day review of the area.

In the past, I consulted with a hospital that wanted to start a 5S journey. The first 5S event was in a storage area. We met with the team to discuss the area, observe and document it with before photos and then we got to work. At the end of the event, we toured the area, reviewed the changes, and created standards (including pictures). Once the event finished the owner, using the standards created, inspected the room once a day at random times, and any issues were brought to the team for immediate resolution. After 6 months of daily follow-up by the owner, he was able to change to periodic review. Amazingly, the area continued to sustain the 5S even with fewer inspections by the owner. Everyone knew it was unacceptable for the area to not meet the standards.

I also had a similar outcome with a retail shop that applied 5S. By the end of the event, they were able to move out of an overflow storage space and cut their monthly rent by 25%. Yet another company cleared out space during a 5S event that allowed them to avoid expanding their square footage when a new product launched. I could go on and on with story after story.

So, should or shouldn’t a company work on 5S when business is slow? Absolutely. Providing knowledgeable employees with time to make improvements will lead to processes running smoother and as business demand begins to increase so will the benefits. A workspace that is neat, clean, and organized leads to improved safety and morale and reduces damage to supplies, lost inventory, and search time. You know the slogan: time is money. 5S is proven to save time, which saves money. Let me share one last example to show the power of 5S.

I worked with a manufacturing facility that was starting a lean journey and wanted to see how well it would be accepted within the organization’s culture. The area selected was called “the pit”. It was an interesting area with no clear purpose other than to collect stuff, like the kitchen drawer we all have! When I first met the team, I asked about the history of the area and its current purpose. A few people responded, “It was a storage area.” Another answered, “An overflow area.” My favorite, “Where things go to rot.” When I asked who owned the area, there was silence.

The first order of business was to photograph the area, followed by completing a time study. I asked employees familiar with the area to go pull items and tracked their time. It took 15 to 20 minutes; however, one person abandoned the search after 30 minutes. Over the next few days, the team got rid of obsolete or damaged parts, sorted out what items should stay and what should go, repaired shelves, cleaned the floors, and painted the walls. By

the end of the third day, you could see the impact. It was brighter, cleaner, safer, and much easier to get around.

At the end of the week, we brought the team and leaders together to review the changes and demonstrate the power of 5S. We selected a volunteer from the front office, who didn’t spend time any time in “the pit”, to test the 5S standards. She received minimum training and was sent on her way to find the part. We started the stopwatch and in less than 2 minutes she was back with the part in hand. The reduction in search time helped to reduce downtime in the assembly area, reduced replacement part requests, and improved output. There was a one-time negative cost impact due to the disposed of items, but based on the overall success, the company decided to continue its improvement journey.

If you're trying to do 5S and you're struggling to get people to buy in because there are no real savings, complete some time studies and convert it into time per day or week. Then ask if people would be happy with a 50% reduction. Count the number of obsolete and damaged parts or capture any overflow storage cost and see what a 50% reduction would save. All that data will provide support for spending the time and resources 5S’ing the area.

5S is a great tool that can be easily leveraged during a slow period. Scoping the area and work content to match the time given can make huge impacts over time. If it is done consistently and sustained, the financial ramifications will eventually appear. So go and look at areas that are full of stuff, that are messy, that are junky, and generally unloved. Those hold so much potential and are quietly waiting to be restored. You have the time, you have the resources, so go and do it!

What are your thoughts on 5S?
What type of improvements have you seen from 5S activities?
How did you capture the cost savings or justify the 5S resources and time?

Would love to see your thoughts or questions in the comment section . If you would like more information on 5S feel free to reach out to me.

Embracing Slower Times - Part 2: How to Run at Lower Demand

Tue, 18 Jul 2023 12:45:19 GMT

In part 2 of our series of articles on how to build resilience for long term success during periods of lower demand, we address how to staff and run at lower capacity while maintaining your edge. Several simple rules are provided that contain best practices or lessons learned during our careers. We also discuss how to effectively deploy excess personnel for driving a balanced approach to continuous improvement initiatives.

It is imperative that any costs more than what is required to meet demand are considered investments for the future – payback should be quick and provide an excellent return. This is NOT the time for any functional team to lounge. This is the time for the hard work of improvement.

It's not uncommon to face periods of low demand. These challenging times can be a cause for concern, but they also present an opportunity for organizations to optimize their operations and focus on continuous improvement. One aspect that organizations should consider during low demand periods is how to effectively manage resources such as personnel, machines, production lines, cells, or service teams while maintaining productivity and driving long-term improvement.

In our last article, we discussed the idea of an alternative perspective – one where VALUE is a priority over cost . You want to improve your ability to convert cost to VALUE .

When demand is high – focus more on running effectively and seek to deliver value consistently.
When demand is low – focus on harvesting value.

Peak Productivity recommends that you use times of lower demand to remove waste and build resilience in your organization. The key is to come out of slow periods better prepared to outperform your competition in every future business environment. This article will discuss several options and strategies. Your individual business condition will dictate which is best.

Regardless of your strategy, before you start making wholesale changes, understand the long-term impact and consequences of your action plan. I recommend someone very experienced play the role of devil’s advocate and pick apart your hypotheses. Some organizations will use urgency as an excuse to quickly develop and implement a plan. There is nothing wrong with taking a pause to develop a recovery-plan on how to “un-implement” if changes go south. “Never test the depth of water with both feet” is the old proverb that comes to mind. An alternative would be to run several ideas as experiments and then let the results dictate directions. Be humble and expect to make many course corrections as you adapt to the changing market expectations. First and foremost:

Rule 1: You must protect your customer.

If for any reason you cannot meet the lower production/service requirements, you must correct this immediately.
Never cut any process input so low that you can’t recover.

During periods of low demand, it's crucial to align production capacity with the reduced market requirements. Operating all machines or production lines at full capacity when demand is low results in inefficiencies, increased costs, quality issues, overproduction and will negatively affect morale. Make sure your actions exhibit respect for your team. People like to be challenged appropriately. Don’t add stress to inefficiency - nobody likes having to try and look busy when their boss comes around.

By consolidating production resources, organizations can achieve better utilization of available assets and optimize their operations. Here's several ideas and rules that an organization can use to effectively run with fewer machines or production lines during low demand periods:

Assess Demand and Right-Size Inventory: Thoroughly analyze the market demand and determine the appropriate level of production capacity needed to meet customer requirements. This assessment should consider factors such as order volume, product mix, and lead times. Identify the machines or production lines that can be temporarily shut down or operated at reduced capacity without compromising overall productivity. Prioritize shutting down lines based on historical performance. Before taking down any equipment, it's important to right-size the inventory in the pipeline. This means ensuring that you have adequate stock levels to fulfill current demand without excessive carrying costs.

Rule 2: Determine how many resources are needed to achieve the new demand level at standard work or productivity levels .

Staff the production/service areas to achieve demand at standard.
Ensure inventory levels are sufficient to prevent flow problems. Do NOT overproduce.
Determine if there are quality or productivity differences between lines.
The better performing lines should be used for production, the poorer performing lines should be improved.
Look at gaps in your cross-training matrix for opportunities.

Run Limited Lines at the Standard Rate: Running the lines at the standard rate helps ensure consistency in production output and quality. By adhering to established operational standards, organizations can avoid unnecessary variability and maintain a level of stability in their processes. If production spikes for a short period or if you fall behind pace and you're unable to recover with overtime, you should temporarily turn on idled lines to catch up. Once you've caught up, the extra lines should be immediately shut down. This approach helps avoid building excess inventory, which adds unnecessary cost.

Rule 3: Run the remaining staffed lines at the standard rate .

Never attempt to exactly match your staffing capacity to meet demand. If you recall from our last article, we provided ample reasoning why you would fail to achieve production/service requirements. Add the right level of excess labor to support, but NO more.
Do not make the mistake of running everything, but slower. All you will do is increase costs and create lazy behavior.
Run the lines with only the required level of personnel.
If you fall behind, turn on idled lines only to catch up, then immediately turn them back off.
Improvement work will be scheduled on idle lines – all disruptions should be minimized.

Focus on Preventive Maintenance: With fewer machines or production lines in operation, organizations can allocate a portion of excess personnel to focus on preventive maintenance activities. This approach ensures that in the long-term available assets can remain in optimal condition. Preventive maintenance and reliability activities help reduce the risk of future unplanned downtime and equipment failures, which can be costly and disrupt operations in normal markets. By proactively addressing maintenance needs or performing tear downs and rebuilds, you can improve long term uptime and performance. Total Productive Maintenance (TPM) and equipment reliability strategies will be addressed in an upcoming article in this series.

If major overhauls or maintenance activities are planned during low demand periods, it's crucial to connect with customers and be transparent about your intentions. Communicating any prolonged downtime to your customers helps manage their expectations. Based on their visibility of their own demand, it may spark discussions about level loading or other strategies to partner together.

Run Experiments with Technical Personnel: If you have repeat quality issues such as yield losses or rework, it is vital they be addressed during slow periods. Experienced operators working together with engineering and quality personnel can support running experiments and their insights can provide vital help in getting to the root cause of quality problems. They are the experts at running the process. They can help determine how varying inputs affect quality, or support teams seeking deeper understanding of the science behind your processes. Their skills are helpful in testing new technologies, implementing process improvements, or conducting trials for product enhancements. Teams of operators can work with operations personnel for innovative solutions on efficiency gains or product advancements. Running experiments during low demand periods ensures that these initiatives receive the necessary attention and resources and can lead to potential breakthrough improvements. Engaging the workers will provide long term impact – they are better informed of their process and what is vital in generating value.

Support Projects and Other Initiatives: Excess personnel can also play a vital role in supporting continuous improvement initiatives. Organizations should prioritize lean methodologies and encourage a culture of continuous learning and improvement. Assigning personnel to work directly on the production lines during slower periods allows them to observe processes closely, identify inefficiencies, and propose improvement ideas. These individuals can also assist in implementing and monitoring the progress of improvement projects. Examples that could provide return on investment are:

Safety Upgrades and Programs
Quality Initiatives such as Error Proofing and Defect Reduction
Lean Initiatives such as 5S, Standard Work Development, SMED
Six Sigma/Lean Sigma Project Support

By actively involving employees in continuous improvement efforts, organizations can foster a sense of ownership and engagement, leading to sustained operational excellence. Ideas implemented by operators require less enforcement than those generated by other groups.

Rule 4: Divide excess production/service personnel as needed to support improvement initiatives .

If you decide to rotate personnel from production to improvement work - plan out who is going to be where and when. Make sure any vacations or other absenteeism issues won’t impact Rule 1.
Establish challenging improvement targets for all improvement initiatives. There must be long term payback for your investment – communicate the business needs and consequences for failure.
Teach your operators to look for deviations from standard work and how to improve difficult activities – this is where the errors will probably be made in production.

Culture Needed to Support: This approach is going to ask a lot of your team. Does your current culture support all levels and functions working together to take on challenges, accepting responsibility, and actively engaging in making improvements? If you have made the decision to embark on this path, it is essential to ensure that your team and leadership can be successful. A key aspect of this will be shifting the focus of management:

Reactive to Proactive
Reporting Results to Actively Supporting
Results Focused to Process Focused
Victim Mentality to Accountability

The good news is that you can start changing your culture in any market environment. However, there are important questions you will need to address:

WHAT needs to change?
Maybe even WHO needs to change?
What HELP will be needed to make the changes?
HOW to create a successful plan?

As a leader, it is essential to start with yourself. If your own behaviors don't align with the desired changes, there is a slim chance that change will occur. You need to exhibit the changes you want to see. Take several weeks to work on fixing your own leader standard work before asking anyone else to change. Get a coach or engage someone to hold you accountable. As you change the questions you ask, the organization will respond and adjust in the right direction. Don't be the boss that says, "do as I say, not as I do". Lead by example.

For example, if you want to become less reactive and more proactive, examine how you approach discussions. Are you only asking questions about results? Are your systems designed to focus on outputs or inputs? Evaluate the amount of time you spend in meetings or interactions discussing things that already happened. As the leader, you set the tone for what is prioritized and emphasized within the organization.

By addressing the culture needed to support your desired changes, and starting with yourself as a role model, you lay the foundation for a more engaged and proactive workforce. Remember, culture change takes time and consistent effort, but the results can be transformative. Embrace the opportunity to shift your culture and create an environment where all levels and functions work together towards continuous improvement and success.

Take your organization to the next level of resilience and success. Embrace the strategies of running with fewer machines or production lines, optimizing resources, and fostering a culture of continuous improvement. By doing so, you lay the foundation for enhanced efficiency, innovation, and employee engagement. Change your perspective from a defensive posture of cost-cutting to proactively attacking waste and converting cost into value. Thrive in the face of challenges and print money when demand returns.

At Peak Productivity , we believe in the power of people. We know that under the right conditions, they can meet any challenge and thrive. If you're ready to elevate your organization's performance, reach out to us today. Let's have a conversation about how we can help you achieve your goals and take your organization to new heights. Together, we can build a stronger, more resilient future.

Embracing Slower Times - Part 1: Building Resilience for Long-Term Success

Thu, 13 Jul 2023 18:22:42 GMT

There will be periods of slower demand. You may be experiencing one now.

How your organization responds will determine how quickly you recover when demand returns and whether you gain or lose additional market share as a result.

Over the next quarter, Peak Productivity will be presenting a series of articles how to take advantage of slower times to build resilience for long term success.

In this first article of the series, we review the standard playbook many organizations use in response to slower demand and why it is not an effective strategy. We provide an alternative perspective to consider that leads us into future articles.

Organizations will occasionally encounter periods of slowdown in demand. Whether triggered by external factors, market fluctuations, or seasonal variations, these periods can pose challenges for businesses and create stress for employees. The knee-jerk reaction for many is to immediately downsize or assign people to non-value-added activities.

However, it doesn't have to be that way. I advocate for a proactive approach where you "embrace the suck" – to consciously accept or appreciate something that is extremely unpleasant but unavoidable for forward progression. The best businesses are those that quickly adapt and thrive in times of change. Learning to use periods of lower demand to make your business more resilient will better prepare you for the eventual return of demand.

Over the next quarter, Peak Productivity will present a series of articles on how to achieve this. Join us as we provide an alternative approach to traditional business countermeasures during challenging times. We will offer a framework of solutions designed to improve all aspects of your operations based on our proprietary business improvement approach: process stability, engaged teams, action-biased execution, and key solutions. These are based on our past experiences, so your team can take advantage of the lessons we’ve accumulated throughout our careers.

I n the normal business cycle, companies will struggle to consistently meet demand due to various common business problems. In response, some customers will place more orders than necessary, creating artificial urgency and leading you to build more capacity than needed. When demand eventually slows, all that excess inventory built up in the supply chain escalates a bad problem into an emergency - rapidly decreasing or cancelled orders.

Many of us have experienced a sudden loss in demand. Layoffs are often the immediate response to stop the bleeding of cash. The impact is primarily felt by the people who create value, whether they are production operators in manufacturing or frontline workers in service businesses. The logic behind this approach is to balance labor costs with the projected level of demand for the foreseeable future. While it may seem sensible to immediately cut expenses such as excess labor, overtime, major repairs, and delay capital expansions, this short-term strategy can cost your business many times in the long run what you might save. It can also alienate your customers because you will inevitably struggle to meet the new lower levels of demand for several key reasons.

Reason 1 – Absenteeism: As a rule of thumb, if you are staffed exactly to meet your projected level of demand and productivity, you will need about 15%-20% overtime to just account for absenteeism. This figure applies to each specialized or certified role in your processes. If you fail to allow for the excess cost of overtime during slower periods, any significant time missed by employees will prevent you from meeting demand. If production flow is not steady, you may require even more overtime to counter. Your team knows when the workload is typically heavy and frequently plans their time off accordingly.

Reason 2 - Backfilling: Most organizations have some level of division of labor within their ranks. Different positions, roles, and skill levels are necessary to fulfill the total value and waste in your current process. Unfortunately, layoffs affecting workers are often determined by seniority or other factors that do not consider the workload of production or service. After every round of layoffs, gaps appear in the value stream, requiring workers to be moved from their current positions and retrained to meet new job requirements. Depending on the industry and roles involved, extensive training or certifications may be necessary, adding to delays. During the transition, new workers will not be capable of producing at the standard rate because they are not yet fully productive. If you use the current personnel who were not displaced to train these new employees, you will experience a double hit to production. They cannot train and maintain the standard rate simultaneously.

Quality and safety can be dramatically impacted during these transitional periods. Everyone needs time to adjust to new surroundings and processes. Newer employees pose greater safety risks and are more prone to making mistakes. Depending on the influence each person has on the overall quality of your product or service, the costs of quality lapses could be catastrophic. Without well-defined standard work, excellent quality checks, and detailed process understanding, personnel changes during slow periods will result in reduced safety and quality. The last thing you need during this time is cancelled orders due to poor quality or high costs of dealing with returned products.

Reason 3 – Fear: Human beings are not all the same. Some are more resilient than others. During periods of layoffs, previous trust built between management and the workforce will erode. The longer the pain lasts, the longer the impact on team morale. During this time, some people will be distracted and not focused on their work; they will be thinking from a position of fear. This impact on productivity is evident as people gather to discuss the latest rumors and more.

Safety and quality remain the biggest concerns. While many workplaces have become extremely safe over time, they can still be inherently dangerous if individuals are not fully “present” and paying attention to their surroundings. Quality escapes are always costly, but during times of lower demand, customers may turn minor quality issues into reasons for canceling or returning orders they no longer immediately need. As mentioned earlier, less experienced personnel make more errors, so any quality lapses during slow periods can quickly impact financials. You cannot allow any countermeasure to demand negatively impact hard earned quality and safety levels.

Assigning people "busy work" deserves a quick comment. If the roles were reversed and your company was going through layoffs, how would you feel if your boss assigned you to meaningless tasks? If you assign someone to a different task than usual, make sure you explain the business relevance and context so they don't fill in any gaps that might make them afraid or paranoid.

Reason 4 – Noise: In “The Goal”, Goldratt provided us with the mathematical reasoning why you can’t achieve demand with balanced capacity in a complex system. It’s due to two major reasons: dependent events and statistical fluctuations. He goes on to say,

“…when capacity is trimmed exactly to marketing demands, no more and no less, throughput goes down, while inventory goes through the roof”.

You will fail – not because your team is poor, but because your hypothesis is flawed.

Unfortunately, most organizations don't have a single round of layoffs but go through several rounds in response to rapidly changing market conditions. Each round of layoffs is followed by periods of lower productivity as management works to rebalance capabilities to meet the new demand. Value-producing workers are stretched further in each, making it harder to stabilize after every successive round of layoffs. Until the dust settles and everyone necessary to consistently achieve the final lower level of demand is in place, fully trained and capable of meeting productivity and quality requirements, your production output and ability to satisfy customers will struggle. This means you will likely fail to achieve your new lower production or service levels and may even risk losing additional market share.

I've experienced several of these cycles throughout my career. At some point, the tide changes, and orders ramp back up. Normally, the transition is just as violent going up as the slowdown was, and customer demand returns rapidly. Cost now takes a back seat to volume – delivery becomes the priority. If you have followed the cost reduction playbook for slower demand, you will now need to retool, rehire, retrain, refill your supply chain, and rebuild trust with your team. The bad news is that there is little chance that you will be able to meet normal recovery demand levels for those very reasons.

Retooling – You might have shut down equipment and even cannibalized parts from it to keep other machines running and save money. The ramp-up process will take time and may require requalification. Quality and productivity will be impacted during this period.

Rehiring/Retraining – Rehiring everyone immediately is unrealistic. Not everyone you want will come back, and you will need to consider new candidates. This means conducting interviews, testing, background checks, and other onboarding requirements. The initial plan will be needed in weeks but will take quarters to complete for a variety of reasons – this is not an HR issue, it’s a market and systems issue. Additionally, when new hires are finally in the building, who will train them while demand exceeds your current capacity?

Refilling Your Supply Chains – When your organization didn't reorder, your suppliers may have stopped producing materials. They may have found other customers or even gone out of business. Rebuilding your supply chain and replenishing your inventory pipeline to support higher demand will take time. Lead times will expand as suppliers ramp up, resulting in delays and interruptions to normal flow until all systems are stable again.

Rebuilding Trust – Forgiveness doesn't come quickly. Restoring trust requires doing the right thing consistently over several years. Don't expect the previous levels of commitment from people to return with demand.

Eventually, your organization will start to rebound and begin to back-fill levels of management that were removed. People that survived will be promoted, and new managers will take their place. As a result of the above conditions, the new team inevitably starts to miss delivery requirements. Customers may again place additional orders into the system. The new team will react and build additional capacity to meet that inflated target. The cycle starts again…

Do you want to repeat the cycle or break it and evolve?
Do you want to get ahead of the cycle instead of always being behind it?
Do you want to stop reacting and become proactive?

What if we approached these slower times with a different mindset? What if we saw them as opportunities for long-term improvement? At Peak Productivity , we believe that embracing slower times with an improvement mindset can be the catalyst for transformative change and continuous growth. Let's explore the idea of utilizing downturns to focus on improving both our people and processes, rather than wasting precious resources on unproductive endeavors with limited short-term results.

Opportunity 1 - Shifting the Perspective: During a slowdown, the natural inclination is to immediately cut costs to survive. However, as mentioned earlier, such short-term measures make us more vulnerable and have long-lasting negative consequences. Instead, view these periods as investments in the future. Shift from being a " fragile " and reactive business to becoming " anti-fragile " and proactive. The goal is to make the business more efficient and resilient to thrive in any cycle. To achieve this, we must change our perspective from a cost-centric to a value-centric mindset. Improved efficiencies will allow you to meet changes in capacity with lower cost and fewer required resources and to break free from the current wild swings in staffing.

Peak Perspective:

VALUE is always king.
Build resilience for all business environments.
Continuously strive to improve your VALUE/COST ratio.

- If demand is high, focus more on delivering value.

- If demand is low, focus more on harvesting value.

Following articles in this series will go into more detail on shifting the perspective and showcase other opportunities to embrace when demand is slow.

Embracing slower times to build resilience for long-term success is a strategic approach that can yield significant benefits for organizations. Instead of only resorting to short-term cost-cutting measures or idle activities, we suggest you redirect your focus towards investing in people and optimizing processes. Change your perspective to build stability and resilience in your organization. By engaging employees, reinforcing lean principles, and creating a roadmap for improvement, you lay the foundation for enhanced productivity, cost efficiency, and sustainable growth. By doing this, you can break away from large swings in staffing to consistently achieve customer demand with lower costs and resources for all phases of the business cycle. Any upfront costs you spend will pay huge dividends going forward.

At Peak Productivity , we understand the challenges that shifts in demand will bring. Our consulting services can provide guidance and support to help your organization navigate through slower times and emerge stronger than ever. Together, let's seize the opportunity to transform challenges into opportunities for long-term success.

Please be sure to visit our website at www.peakproconsulting.com or follow us on our LinkedIn page to receive updates on all future articles in this series. The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Without Standards, There Can Be NO Improvement

Wed, 28 Jun 2023 13:46:18 GMT

When processes don’t possess stability, reliability, and repeatability, what is the first action to take?

I learned Taiichi Ohno’s famous quote, “Without standards, there can be no improvement” , very early in my lean journey. Every time I read it, I always wondered how you would improve a process when things are not standard. When processes don’t possess stability, reliability, and repeatability, what is the first action to take? Fortunately, this is not an issue we run into very often since most processes have standards or at minimum are somewhat repeatable and stable. This stability makes it easier to see the process, to create a map like a SIPOC, value stream map, or flow diagram , and to make changes for improvement. However, that leads me to consider how someone makes improvements in unstable, non-repeatable processes.

Is it possible to make improvements in that type of process?
Does each person make changes that focus on improving their steps and process?
What tools do you deploy when the processes aren’t standard, stable, and repeatable?
How do you make improvements when there is little to no stability?

Thankfully these questions usually represent the exception rather than the rule of thumb, but it is still good to know what to do when the process isn’t standard. Knowing what tools to pull from the lean toolbox will help untangle an unstable, unpredictable process and transform it into one that is more stable, reliable, and predictable.

Several years ago, I was working with a healthcare organization that wanted to roll out lean methodologies to physician’s offices. After some in-depth discussions, we decided the first area of focus would be the front-end process. These processes included scheduling, phone calls, patient check-in, paperwork intake, along with reordering materials for the front office. We launched the 5-day kaizen by providing a brief introduction on mapping and kaizen and then headed out to observe the processes. Half the group observed the process of answering phone calls and scheduling, while the second group observed patient check-in and the general layout of the office. After about 30 minutes we switched processes, observed another 30 minutes, and then headed back to the conference room.

As we started the debrief it became clear that the team was struggling a bit. The same process observed by the two groups looked different. The process variation was very people-dependent, so depending on who was performing the task, determined how the steps were completed. Once I realized what was happening within the processes, I knew my standard approach wasn’t going to fit. Trying to map the process wasn’t going to be the best option. At this point, we altered the course to get the team moving toward some type of improvement plan. Immediately thoughts popped to mind, like brainstorming, affinity diagrams, or fishbone diagrams which would help identify and organize the variations so the improvement plan could be developed and followed. I considered jumping straight into standard work and visuals to create a documented process but felt we might miss some key opportunities without first understanding the variation. After carefully weighing my choices, I decided to pull out the fishbone diagram, otherwise known as the Ishikawa diagram.

If you are not familiar with the fishbone diagram, continue reading this paragraph. If, however, you are familiar, jump to the next paragraph. A fishbone gets its name from its appearance since it looks like the skeleton of a fish. To create the diagram, start by drawing a straight line horizontally across the paper, and at the end of the line write the problem. Now draw 6 lines (3 on top and 3 on bottom) diagonally off the center line and at the end of each line write one of the 6 Ms: Methods, Materials, Machine, Mother Nature, HuMan, and Measurement. You are ready to begin filling in the causes under each of the categories. This example shows a simple fishbone diagram with one cause per category, in real life, there will be several causes under each category.

After we drew up the initial schematic of a fishbone on the whiteboard, we were ready to begin populating the issues we saw in the front-end processes. Once all the issues were recorded on the board, we noticed there were some clusters around central themes. We divided up the clusters among the team and started working on solutions to address the root causes. As the week progressed, we started noticing that the improvements were positively impacting the processes, bringing repeatability and stability. By the end of the week, the kaizen team had produced flow diagrams and standard work for the processes, visual controls, and standardized work, along with 5S organization to help with supplies. On the final Gemba walk you could see the flow, stability, and standards.

That story brings me back to the quote about standards and improvements. I believe standards give a process structure that enables improvement to occur, but when there are no standards or stability, improvement can still occur. The first improvements must make the process stable and start to build the standards. Bringing that stability will in many cases make a huge impact on a broken process. So, the next time you find yourself in a Gemba that is hard to follow and map, maybe it is the right time to deploy a simple brainstorming activity, affinity diagram, or a fishbone diagram. Any of those tools will help you see the issues that need improvement to establish the first standards.

Points to Ponder:

1. What tools do you use to help bring stability to an unstable process?

2. How often do you see processes that struggle with stability or lack standards?

3. Should creating standards be part of the requirements for starting new processes?

4 Ways to Improve Your Ability to See Problems Within Processes

Mon, 12 Jun 2023 10:11:47 GMT

Remember to be aware of the 8 wastes - "DOWNTIME"

I started wearing eyeglasses at an early age. During a routine check, the doctor informed my parents I was having vision issues and referred me to an eye doctor. I remember his parting words, “Remember trees have leaves”. I didn’t understand what he meant until I stepped outside with my new eyeglasses and realized the trees had individual leaves. Things far away no longer looked like an impressionist painting but instead were sharp and clear. Because my vision changed slowly, I didn’t know I couldn’t see clearly. My new corrective lens helped reshape my world by enabling me to always see things as they really are instead of blurry and unclear.

You know, to solve a problem, you must first see there is a problem. That is usually easy when we first start in a new role or company. We can see things that could be improved to make systems better, but over time we can lose that sense of clear sharp vision and instead replace it with unclear and blurry sight. In extreme cases, we can be desensitized and not know the problem exists. We need to be able to see the reality around us, when things are going well, and when things are falling apart. We need clarity and focus to know if things could be better. Unfortunately, there are no glasses to help correct vision issues around problem-solving, the way to get better at seeing is to practice. So, let’s take a few minutes and look at some things you can do to help you see.

1. Look for the 8 wastes . I know there are several different versions of acronyms used to help teach the eight wastes. I prefer to use DOWNTIME . Let’s review the words and definitions.

a. D efects-anything that is not completed correctly the first time. This will cause the need to rework, repair, scrap, or remake it.

b. O verproduction-making more than is needed by the customer. It adds cost to store excess, increases the possibility of damage while stored, requires space to hold the inventory, and may become obsolete.

c. W aiting-pauses or stops in the flow of material and people. It creates a loss of revenue and production while increasing the lead time

d. N on-value-added processing-doing more work than required by the customer. Is 100% wasteful and should be eliminated.

e. T ransportation/conveyance-moving of materials, parts, and products which add no value in the process. It can lead to an increase in other waste like defects and inventory.

f. I nventory-materials, parts, products, and finished goods that are waiting to be used or shipped. This includes raw materials, work in process (WIP), and finished goods.

g. M otion-Movement of people including walking, bending, standing, reaching, etc.

h. E mployees’ untapped skills, knowledge, and abilities-Underutilization of people’s skills, knowledge, and abilities within the organization.

With the 8 wastes in hand, it is time to head out for a waste walk. A waste walk is a focused activity at the Gemba that provides time to walk and observe processes with the specific goal of looking for waste in the area. On your walk where do you see the waste? Is there one predominate waste or are they all present? Do some potential causes and solutions run through your mind as you see the waste in action? Repeating this exercise over and over will help your eyes focus on the waste and help improve your problem-solving vision. Once you are comfortable with the 8 waste it is time for the next step.

2. Gather up a small group of employees, teach them the 8 wastes, and go on a group waste walk . The purpose behind the group’s walks is twofold. First, it helps to teach others how to see the waste and second, it allows to fine-tune everyone’s vision in the group by allowing people to share what they are seeing. A few helpful hints to get the team moving quickly on their walks:

a. Position yourself at the back of the group so that they can hear you when you speak.

b. Proceed to walk the area and tell them what you are seeing and which waste category it falls into. This will begin to help people calibrate each waste and to ask questions along the way.

c. On the second walk pair them up to discuss what they are seeing as they walk and observe.

d. At the end of the walk, allow some time back in a meeting space so each team can highlight and discuss the waste. Once again this will continue to help everyone see more clearly.

e. On the third walk, have the team members take their notes and share the waste with potential solutions at the end of the walk.

A few questions to ask yourself about the report from the team members:

Is everyone seeing the same things you are?
Are any of the problems new to you?

Were there any problems the team members missed that you need to show them?

Over time these walks will become invaluable to the organization when deployed consistently. They will help drive a culture of continuous improvement and problem identification.

3. First impressions are powerful! Make sure to take new employees on a waste walk so they gain a clear picture of waste, which will put them on the right path to begin their journey as problem solvers. Once again, the first step is to teach them the 8 wastes, however, for the second step, I like to use the observation box . The process for an observation box is:

a. Go to an area in the Gemba and draw a box on the floor using chalk. If you are not able to mark the floor (like carpet) then just show the person where to stand. The area for the box should be a safe location, where the person won’t interfere with the flow of work but allows them to see the day-to-day activities. They should not talk with people while in the box since they may interfere with the flow, or they may miss a waste.

b. The person should plan to be in the box for an hour or so.

c. While in the box they should make notes on all the different waste they see. It will be helpful to provide them with a clipboard and handout reminding them of the 8 waste and space for them to take notes.

d. Once they complete the observation it is time to debrief their findings.

What did they see?

What questions did they have about what they saw?

What are their ideas on how things could be improved?

Do you need to go back to the area to review items they saw or didn’t see?

This activity will help reinforce the 8-waste training and develop a keener sense of sight for you and the new employee. It is also a great example of reducing the last waste, employees that are not fully utilized. By asking them to engage in the Gemba, you are tapping into their skills and knowledge to benefit the organization and themselves, a true Win-Win.

You can use this approach to go to the next level by asking any visitors if they saw any waste or problems while they were touring. If the visitor answers yes, follow up with their thoughts or ideas on how to resolve the problem. This is a great way of getting new perspectives and insights into issues through fresh eyes and demonstrates to everyone that the organization is dedicated to a continuous improvement culture.

4. Guided assessment is another tool that helps to develop one’s sense of problem-solving sight. There can be many variations to assessments from the number of questions to the formality of the report out, to the number of resources required to complete it. In my experience, guided assessment has several strengths when used correctly. Usually, an assessment leads you through a series of questions that help to fine-tune your vision by asking you to look for very specific items and waste. For example, with defects, the assessment will typically ask for a quantified value on defects using percentages or dollar values. It will also ask for a breakdown of defects by area, product, or reason/type of defect. Another strength of assessment is it requires more than one person to complete it. This will help to develop more individuals’ eyes that are trained and laser-focused on problems. Lastly, assessments contain reports and feedback given to the management team on the findings. This report will help to solidify and document areas that need help and provide a great starting point for focused improvement activities like kaizens. If the assessment is led by people outside of your organization or facility, then they will also bring a fresh perspective and reality check to it.

There can be negatives with an assessment that mainly revolves around the amount of time and resources that are required to complete it. These are both topics that should be addressed with consensus on the assessment plan before it is started. The other major issue with an assessment is a lack of follow-up. Once again before it starts the management team will need to provide a commitment to support not only the exercise of the assessment but also to prioritize and fix the issues highlighted by it. The lack of follow-thru will be seen by all involved and will be a frustration for the employees that continue to work on the problematic processes with known and documented issues but no improvement.

Everyone sees things a little differently and that is part of what makes teams so powerful. Over time you can grow your organization and help change the culture to one that sees, embraces, and solves problems. To achieve that level of cultural buy-in, everyone must be able to see the reality at hand. This begins by teaching everyone about waste and then through repetition reinforces their findings and strengthens their sight. Like Henry David Thoreau’s quote, “It’s not what you look at that matters, it’s what you see.” What do you see when you look at a process? Are you ready to put on your problem-solving lenses to see what the world looks like when viewed with a clear and sharp sight of waste and problems? Which of these techniques will you use to help strengthen your vision? Post your thoughts in the comments and if you have questions about assessments, reach out to me on linked in.

Improve Your Processes by Establishing a Cow-Path

Wed, 19 Apr 2023 13:35:37 GMT

With a few minor tweaks, your own "cow-path" can help transform your team to peak productivity.

I n our previous blogs, we stressed the need for leaders to go to gemba.

What should you do when you get there?

Believe it or not, you can learn the answer by observing the behavior of ordinary dairy cows.

Have you added a cow-path to your leader standard work?

Read on to learn more about how this powerful tool can help you understand your processes better, help your teams improve effectiveness and generate great ideas for your gemba walks or future initiatives.

Confession - I am not an expert on cows. Regardless, I believe there are several lessons we can learn from them that can help us improve and understand our processes.

If you were to take some time and observe a typical cow pasture, you will find paths worn in the grass that crisscross over the entire area. Once a path is created, other cows will tend to follow it most of the time unless there is a specific reason not to, such as a fallen log across the path. Cows generally walk with their heads down so following an existing path is most likely just a natural behavior to minimize energy. Afterall, we often mindlessly do the same thing in our human world of sidewalks, crosswalks, hallways, stairs, catwalks, roads, and intersections .

Now, if you were to also watch the behavior of the cows over some period, you would notice they travel around to different parts of the pasture during the day. For example, during hotter times they tend to move to the cooler spots. These might be areas of shade, lower elevations, or by sources of water. This is because like us, cows are creatures of habit and will naturally react to their environment. To move from warmer to cooler or cooler to warmer areas they use the existing cow-paths without a second thought. As the seasons change, there are slight variations in their daily rituals due to temperature ranges during the day, but the normal routes in their movement are consistent – they do not stray from the paths when traveling between locations.

It should come as no surprise that those who study cow-paths find they are not always the most effective routes for the cows to follow. In the business world, we would say that their processes contain waste. As far as we know, there is no "Kaizen for Cows", and we assume they just take the first “process” and follow it once established. There is no daily management system embedded in their routine to trigger a problem, nor a value stream exercise that looks at the metrics and determines a change is needed to improve performance. The cows just continue to follow the path until it becomes unusable. This tendency of the cows to blindly follow the first solution has been turned into a common business expression to “don’t pave the cow-path”. This means that you should ensure you have determined your process is optimized before you automate or lock it down. A poorly designed solution without adequate feedback loops for improvement should never be part of any process in modern organizations. If any of your current processes resembles this description for the cow-path, you are not alone - so there is no value judgment implied. This is not to say that the entire concept of the cow-path as a process is bad. For our purposes it just needs a few tweaks.

"You can’t find the right roads when the streets are paved."

- Bob Marley

Whenever I was responsible for an area or process during my career, I strived to visit each location at least daily. These were not scheduled gemba walks or daily management activities that will be covered in later blogs – they were my daily cow-path. Early in my miliary career, I became very familiar with the requirement of making rounds to all assigned areas as part of being on watch. Later as a process owner, I was expected by my manager to walk my processes a minimum of multiple times per day.

As I transitioned into early leadership roles, the concept of Management by Walking Around (MBWA) was very popular. It contained many of the concepts/elements that you would expect in a cow-path: unstructured walks where you would speak to employees to improve engagement and build personal relationships to understand and provide support. Over the years I found that my early attempts at MBWA/cow-paths were not optimal and depending on the day could either be helping or hurting the team.

HOW I WAS HELPING:

I could go and see what was happening that reports couldn’t tell me
I could understand problems and provide support or additional resources needed
I could witness gaps, coach personnel and understand challenges they faced

HOW I WAS HURTING:

My information was based on that moment, it was only a data point
I judged from that data point – I extrapolated and filled in any gaps in error
My help provided was often not based on the biggest problem, but the one I saw

I soon realized that my cow-path should be considered a process and therefore could be improved. I started to think that I should seek to create a better cow-path by performing experiments and keeping the good and doing away with the bad. Over the years – here are some general lessons I’ve been able to learn and apply to my cow-path successfully.

Lesson 1 – Start at the closest point to the customer

We all have customers. Our goal each day is to support our customers and achieve their requirements. When conducting a cow-path it is very easy to get caught up in an issue/conversation, or otherwise get distracted and run out of time. If I started my cow-path at the beginning of my process, I may miss the opportunity to help my customer today.

Lesson 2 – Vary the start time of the cow-path

If you show up at the same time every day, people will know your routine. You will not see the full range of problems because your team will change their behavior to accommodate your visits. Change the times and shifts you observe to see the rhythm of the entire shift and culture of your team. Look for evidence of batching, how effectively shifts turnover, how consistently output matches the standard, how/when the standard process checks are performed. How much time is lost during transitions or intersections within the processes? Larger or systemic problems you learn about by varying the time of your cow-path can be used to generate good topics for future gemba walks, projects and initiatives.

Lesson 3 – Vary the route of the cow-path

Like our dairy cow, if you only stick to the well-worn path, you will miss many opportunities to learn and improve your processes. Plus, everyone will learn your route quickly and all the problems will be moved off the beaten path. See Rule 2 if you need more convincing.

Lesson 4 – Don’t assume or blame, but seek to understand

Don’t assume you can see everything at once. Hold back any initial judgements as you conduct your cow-path. There is nothing worse than “Captain Obvious” swooping in and pointing out what everyone already knows but offers no tangible long-term solutions to help the team. Try to notice the issues that prevent your process from running to standard. Look for the shadows that your current condition and practices are casting all around. Strive to go down a few levels to understand contributing factors or interactions before you claim to have the answers. Investigate any countermeasures that were initially developed to combat short term issues that have now embedded themselves in the daily activities. In larger organizations, watch for cultural differences between departments and shifts. Also pay attention to how your leaders respond to their people when problems are brought to them.

Lesson 5 – I am here to support my team, not the other way around

The first leadership lesson often taught to new US Naval officers is:

“You can delegate authority, but you can’t delegate responsibility”

One of my favorite leadership lessons was taught to me early on as a night shift superintendent:

“All problems are management problems”

If you own the process, all the problems and gaps you find during your cow-paths exist because your process is not robust enough. It’s your responsibility to correct them - t o make your process more robust and able to withstand variability.

Depending on your findings, you may need or want to jump in and correct an issue on the spot. I would recommend only doing this when absolutely necessary. If you continually bypass your established help chain, you may send the signal to your team that you don’t have confidence in their ability to correct issues. For the most significant problems found you will need to assign projects or develop action lists for others to work on to correct. Regardless, at the end of the day it’s your job to support your team by getting their problems fixed. Over time, this will lead to massive improvements in output and stability.

Lesson 6 – The cow-path isn’t finished until the reflection is done.

You’ve taken the time to conduct your cow-path. You’ve walked your entire process and observed several eye-opening gaps. Don’t leave it there, it’s time to put what you’ve found into context. Take 5 to 10 minutes and reflect on what you learned. I would recommend you also document your observations. Over time, you may start to notice trends or issues that pop up and then quickly go away. These may be related to changes in the environment, systems or supporting processes that will need to be addressed for stability. Remember that your cow-path is a process, so it is NOT static or fixed. It needs to change and improve over time. After each cycle (cow-path) you should ask how it could be better or more effective. Use a simple Plan-Do-Check-Act cycle to improve your cow-path processes over time.

The ordinary dairy cow follows established but inefficient paths as it moves about its surroundings, reacting to its natural environment. Any process owner can use six key lessons to transform their daily walk into a highly effective tool for process improvement. I recommend you take the time to introduce the cow-path to your leader standard work and see how it can elevate your team to peak productivity. I would love to hear what you learn along the way. Good luck.

Cheers.

Target Condition

Tue, 11 Apr 2023 15:19:20 GMT

Where the Target Condition and Final Destination Meet

When I was a young girl, I always enjoyed looking at maps. Anytime my family traveled I would pull out the map of the state and follow the route on which we were traveling. It was cool to see all the different roads and towns we were passing through, and periodically my Dad would ask for guidance about a particular turn or a road to take. There were two critical pieces of information I needed to ensure I provided accurate information: our current location and our destination. I had never really thought about how this correlated to problem identification, but as I reflect on it, I believe there is one. Like many of you, I was taught that a problem is the gap that occurs between the current state and the target state. Similarly, planning a road trip requires that we possess a clear understanding of where we are and where we are going.

Target Condition - Current Condition = Gap (Problem)

Let’s start with the steps required to ensure we have a very detailed and well-defined understanding of our current state. One of the first and most important methods is to spend time at the gemba as this is where we often gain the greatest amount of detailed information on exactly what is going on. The information gathered at the gemba can help create your own road map, a value stream map or a flow map. From there you can gather other data and reports which, using trends, statistical analysis, etc., helps to round out your understanding of the current state. Examples of this data and these reports include downtime, runtime, first pass yield, productivity, and cost. The combination of the map and the data collected provides the team with a pinpoint location of the current state.

With our starting point well defined we can set out to develop a detailed understanding of our target condition, just as we would our destination on a road trip. Before we dive into detail planning of our destination, we need to pause to understand the type of trip we will be taking. Sometimes we have a very specific destination in mind, and we want to get there as quickly and efficiently as possible. The same is true in problem solving in that we have a very clear problem, and we can progress to a specific solution very quickly. However, sometimes when we travel our destination is not clear. We are willing to ramble around a bit and determine our destination as we go. The analogous situation to this in problem solving is when the problem is broader and requires a more innovative solution or when the problem and solution isn’t clearly understood so the target condition is unable to be clearly defined at the onset of the journey. Understanding the type of problem helps us understand how to navigate the journey to a target state. In some cases, we want a very well defined and specific target, whereas in other cases, the destination specifics may be less defined causing us to rely on developing and modifying the target as we work toward the solution. In either case the target condition needs to have some thought behind it. A good target condition will help the team stay focused on the finish line and avoid diversions along the way. It will also help provide excitement and a clear sense of progress.

I believe a common problem within the problem-solving methodology is that we don’t spend sufficient time ensuring the entire team has a thorough and detailed understanding of the target condition. We leave teams with a semi-good target which may improve a few things along the way but lacks the clarity necessary to prevent wandering and to provide the transformation we all desire. The result is shortcomings in our solutions and frustration in our people. Returning to our road trip analogy, if the destination is not clearly understood, the route to getting there gets very blurry and out of focus.

When you think about projects or teams you worked on, how clear was the target state?
Did you take any time to develop a clear one?
If so, what was it based upon? Opinions? Theorical calculations? Incentive systems?
Alternatively, were they tied to well defined requirements linked to value creation and customer expectations?
Similarly, as you moved down the road from problem definition to solution, did your path forward get clearer, moving closer to great, or did it get murkier, leading closer to mediocrity?

Next time you’re in a problem-solving situation and things are not progressing smoothly, take a moment to evaluate how well you’ve defined your current state. Do you have a clear value stream map and data that helps the team understand the current location?

Thinking about your destination:

Have you determined if there is a well-defined final location and path?
Or is the destination and route still being developed as you travel toward the solution?
What steps do you need to take to clearly visualize your destination?

As you answer those questions, you will find that your problem-solving efforts will be more efficient and productive, leading to a quicker journey to your final destination.

Point to ponder:

When starting a new problem or project are you creating a clear picture of the current state?
How well defined is your target condition? Does the team know where they are going and what success will look like when the problem is solved?

Don’t Worry, the Game Goes On…

Tue, 28 Mar 2023 13:00:17 GMT

March Madness is in full swing again and by now most brackets are busted.

The experts and casual fans alike have once again been wrong.

Did your team reach the final four? If not, want to keep the excitement going?

It might be time to hitch your wagon to the team at gemba.

At this time of year, I can’t help but draw comparisons between the college basketball games going on in each of the tournaments and the reality of gemba in our workplaces.

Each has specific rules that must be followed to achieve the goal .
Each requires practice, dedication, concentration, and skillsets developed over years of practice.
Both are highly influenced by randomness, luck, and variation .
Great coaches, great players and team chemistry provide a significant advantage .
Both are played against the clock , with highly motivated players putting their bodies on the line for their teammates.
Sometimes key personnel are missing and the next person up has to step in and take the shot .
We collect and analyze numerous metrics to gain any edge .
Feedback is immediately provided, and improvement is possible if taken to heart .

I am sure you could come up with many more comparisons. Some may also see gaps in the approaches commonly taken for each basketball team that you haven't applied to your work processes and teams. This may be an opportunity….

“People may hear your words, but they feel your attitude.”

- John Maxwell

I find it very interesting that fans and alumni alike will spend thousands of dollars to travel across the country to watch a basketball game. An event that lasts a little over 2 hours. Many of us who don’t travel with the team are glued to the newsfeeds, TV broadcasts and online content. In recent years online sports betting has been added to ramp up the excitement and engagement.

Who will miss the most free-throw shots?
Who will hit the last shot of the quarter?
Which team will move on to the next round?

We can bet on almost anything – pulling us even more and more into the spectacle.

People watch at work, people watch at home, and many of us fill out the brackets - determined to win bragging rights. According to the NCAA, the odds of picking a perfect bracket if you randomly pick winners is 1 in 9.2 quintillion (9.2x10 ¹⁸ ). If you apply some basketball knowledge, the odds drop to 1 in 120 billion . For comparison, winning the Mega-Millions lottery is only 1 in 303 million . So, you’d have to be billions of times luckier to randomly pick a perfect bracket than to win the lottery. It probably says something about our society and understanding of statistics that we even engage in this new science of “bracketology”.

We have grown so enamored with the tournament. We love it because of the unpredictability and uncertainty. Unlike most things in our life – each game is finite and has a clear winner and loser . As fans, we may not like the conclusion, but love it because the result is so final, so real, and often so emotional . We get drawn in and go from being spectators to fully engaged. It becomes personal to us, and we create our own vested interest in the outcome. We are consumed by it, and we think the whole thing is vitally important in the moment.

Don’t get me wrong - the games are exciting, and I love it when my team wins. But when it becomes a part of your personal identity (even though we are just really observers), it seems a little much. It is estimated that lost productivity as a direct result of March Madness will cost employers up to $17.3 billion this year alone.

The thing that I find really curious is that most adults can participate in something just as exciting every day at work but choose not to.

I am talking about gemba – where work is performed and value is generated in a process. On any given day there are thousands of teams working together against incredible circumstances to produce value - either as a service or deliver some product quantity. Gemba is messy, it is variable, and the odds of success are often just as challenging as when a 12-seed squares up against a 5-seed in the tournament. Maybe there is a difficult deadline that must be met and the team is already behind takt time. Perhaps we are short-staffed today because of a flu bug going around, or the process isn’t running right since we shifted to that cheaper raw material, or the repair parts for the broken machine are blocked at the border and didn’t show up on time. These real-life scenarios happen in your business constantly. There are problems, noise, and urgency not only daily, but every cycle, every hour, and every shift. These are your people trying to hit the goal set for them and get a “win” for your team today. They are dealing with all the fluctuations, randomness and weaknesses in your processes. Like our favorite teams, sometimes they can pull out exciting wins under extreme pressure, and sometimes suffer “the agony of defeat”. And tomorrow it all starts over again.

As managers, we often choose to not participate in our own games. We have removed ourselves away from the action. We use data, screens, and reports to distance ourselves from the uncertainty and excitement of the gemba. We believe we can understand what happened by looking only at the summaries provided after the fact. Often, we don’t even look at the details and just focus on the results. We would never imagine that by only looking at the box scores we could understand the ebb and flow of one of our tournament basketball games. However, we have no issue with looking at a number in a report and think it tells the complete story of the shift / day / month. Worse, we also start to believe it tells us something about the character and work ethic of our teams. We decide to ignore the impact that luck and randomness play in environments with unstable processes. By doing so, we commit a great dis-service to our teams. We also miss the chance to be part of the solution, to participate in the noise and chaos which are always present when value is added - to lead improvement efforts from the front.

My challenge to you? Now that the tournament is wrapping up, we should all get some free time back. Let’s use that time to reinvigorate our passion about value and return to the game that really matters. Let’s get our data firsthand, from the source – let’s go to gemba. If you’ve been negligent, how about developing a nice cow-path and walking it several times each day? Go out to see what's going on instead of sending that IM message to the manager when the numbers are behind. What is working? What is running to standard? What isn’t working the way it needs to? Smell it! Maybe if you are lucky, you might even get your hands dirty or learn something from the people in "the arena". In the next meeting you won’t have to " I heard that X happened", you can confidently state that you saw it firsthand – “I was there”.

“No good decision was ever made in a swivel chair”.

- General George S. Patton

Do you run a food service business? Try busing tables during rush hour or deliver food to your customers. Understand the challenges that your staff is going through from firsthand experience. Do you run a manufacturing area? Draw a circle on the floor and stand there for hours, watching. When was the last time you actually spent the equivalent of a single basketball game really focused at your gemba? Observe the processes that are going on, the challenges and the countermeasures that your team has put in place to compensate for failing processes. Learn to understand that the game is not just about the result, but the inputs and the processes. More importantly, it’s about the players and their coaches. It's about how they focus on the key input variables every cycle, in order to achieve the key output variables.

Get excited about the live game happening at your workplace every day. I challenge everyone to transfer the passion shown for the NCAA tournaments and channel it into supporting your work teams fighting every day for a result. You do this for the next several weeks and I guarantee you will have a newfound respect for your teammates. And they will for you as well. Show them that you support them. Get to know your key players, their weaknesses, and their strengths. Understand the gaps in knowledge and about how your processes are really working compared to the way they are designed. Help your team problem solve by correcting the issues preventing them from being successful today. The cool thing about being in the game is you might get a chance to influence the outcome. Heck - you might even get back some of the $17+ billion lost this year during March Madness. I am confident that just by showing up you will impact the team and yourself in ways you didn’t think possible.

Cheers.

Why Go to the Gemba?

Mon, 20 Mar 2023 16:10:15 GMT

Key Points When Going to Gemba

Why go to the gemba?
Where is it?
When to go and who goes with you?

You might think these are simple, easy questions to answer but sometimes it can be tricky.

The gemba is commonly referred to as the place where work happens , but in many companies, it has been modified to mean going to the shop floor or work area for the purpose of management oversight or problem follow-up. However, I believe when used that way, we lose the heart of gemba, which at its core shows respect for the people and process by humbling oneself to admit we don’t have a deep understanding that is crucial to create key improvements. Maybe a more accurate definition is the place you go to learn about the current state of the process, materials, machinery, and people in order to more accurately solve problems. Most times the gemba will not be found in the conference room or online meeting space, although many problems are studied, reviewed, and “solved” in those spaces.

As pull is a key principle to the flow of product, so must there be pull, like gravity, on us to continually return to the area of work in order to build understanding, find the facts, and reveal the truth. The search for knowledge should not be limited to just manufacturing areas or shop floors but should also focus on the processes that support those areas such as scheduling work, ordering materials and supplies, hiring and on-boarding, quoting, accounts receivable and payable, all of which have to happen in order to continue the work on the floor. By ignoring those processes, or even worse, placing them off limits, we create a hopeless environment full of waste that is perpetrated by lack of understanding. This leads to strife and frustration among leadership across departments, erodes relationships, and strains resources, all while the gemba remains inefficient and full of waste. If we truly want to improve the entire value stream, all processes must be open to reveal the truths they contain.

But why is it important to go to the gemba? Maybe a better question is: Why not go? What stops us from making the journey? Are we afraid of what we will find? Will the problem be worse, more messy, more complicated, more demanding, than we originally thought? Or are we just more comfortable sitting behind our desk, with our computer, thinking we have full understanding, and are smart enough to fix problems without the facts? If we, as continuous improvement practitioners, students, and coaches, are truly committed to long term sustainable improvement that impacts individuals, teams, departments, machinery, and processes for the better, then how do we succeed without the facts? Going to gemba is a fact-finding mission that provides correction to wrong opinions, theories, false truths, biases, and accepted norms. This is why we go, is to learn, to be humble, to gather facts, to see first-hand realities, and to challenge our preconceived thoughts.

I have sat in meeting after meeting when subjective phrases such as: “we think”, “we hope”, “in my opinion”, “the theory is” are used throughout the discussion, usually with little to no push back. Just listen; you’ll hear them. What makes this practice so frustrating is key assumptions are made about the problem that leads to incorrect problem statements which ultimately lead to wrong solutions that are doomed to fail. We then head to the gemba to train everyone on the new changes to fix the problem and are shocked to find in follow-up reviews that it didn’t work or made things worse! Sometimes after those meetings I would go to the gemba to clear my head and gain some perspective. It wasn’t uncommon for me to run into a team member and together observe and discuss what we saw, often with the result of discovering facts which refute the assumptions or changes we had made in the meeting. With that newfound information, I would strike out on a path to correct the assumptions and push to modify the problem statement and solutions. Our jobs should be to make everyone’s life better by providing sound problem solving that starts and ends at the gemba.

I remember leading a kaizen which focused on a manufacturing process. On the first day we went out to observe the process and the team received much more attention than normal. In this case the interest wasn’t in what or where we were working but with whom. When the president of the company rolled up as a team member that week, dressed and ready to work, everyone noticed. His presence truly demonstrated that all employees are invited to come and learn the facts, the realities, and truths that are found only at the source. It beckons all to explore, watch, listen, and learn. Really, everyone who desires to make improvements should follow this example and allocate part of their time to observing the processes and people and reflect on the current condition. I believe the gemba would absolutely thrive if everyone did.

There have been times when I wished my desk was mobile and could move to the gemba. I could see minute by minute what was happening, which would allow a more precise understanding of the current state. Squeezing in time to observe and learn firsthand can be quite challenging, thus, careful management of your time can help maximize your experience and learnings. Here are some recommendations on when to go to the gemba.

Remember, this list contains the bare minimum, so additional time will provide more information.

1. As soon as you are given a project, kaizen, or improvement objective. The less you know about the process, the more time you need to immerse yourself. Realize it may require several trips over several days to gather the facts and data needed. If the process runs across multiple shifts, then observe more than just one to validate if the problem is a special occurrence on one shift or a problem on all. Don’t forget to spend a little time in the upstream and downstream areas to understand how they are being impacted.

2. At the initial project or kaizen team meeting. Fortunately, most companies understand the power in bringing a cross functional team together to work toward problem resolution. However, assuming all members understand the problem and process can lead to confusion; so, take the time to develop everyone’s familiarity with the process, area, and problem. As they watch the process together they will see the good, the bad, and the ugly and begin to brainstorm ways of improving it. They will revisit this common experience to answer questions and resolve disagreements as they progress toward implementation.

3. Anytime people begin to use subjective terms like “I think this is …”, “I hope ...”, or when everyone can’t agree on the current state of the process, a quick trip to the gemba can be beneficial. Subjective wording like “hope”, “think”, “sometimes”, “I’m not sure” indicate the team has left the realm of known facts and should be a red flag that more information is needed. At that point the gemba can move the group from opinions and conjecture, back to facts and reality. In the end the team will work through decisions and testing of solutions much quicker and with more success.

My respect and understanding for gemba has grown stronger the longer I have worked. I admit gemba isn’t always nice, pretty, clean, and organized. In fact, sometimes it is a “hot mess”, but that’s not its fault. With time, attention, patience, hard work, and determination of a group of gemba focused people, it can become a place of beauty, simplicity, and respect. It is a place that waits for you to come and experience all it has to offer. Just remember, when you answer its call, bring pen and paper while checking your assumptions and preconceived notations at the door. As you open yourself up to it, it will teach you, mold you, frustrate you, challenge and delight you with everything that occurs within its boundaries. It holds the knowledge that leads to respect and drives improvement. If you ever stand ready to walk through the door that leads to gemba but are unsure where to go, ask yourself this question, “Where do I go to observe (fill in the blank) moving through the process?” The answer will drive you to the gemba, and it will change the way you see the world.

Points to Ponder:

1. When was the last time you spent two hours in the gemba, observing, learning, and listening?

2. Could spending time in the gemba help deepen your understanding and knowledge?

3. How can you incorporate more gemba time in your project or teams?

Simplicity

Thu, 09 Mar 2023 16:14:10 GMT

The Elegant Solution...

"The way to get started is to quit talking and begin doing."

- Walt Disney

I would like you to take a moment and think about your favorite teacher or professor and the influence they had on your life. What was it that they were able to reach that others couldn’t? Was it the topic that fascinated you, their ability to get you excited about it, or how they challenged or went the extra mile?

I guess I always was drawn to the sophistication of simplicity but didn’t really recognize it until right before college. In my senior year of high school, I was introduced to the wonderful world of physics by a retired West Point Civil Engineer named Roscoe Barber. However, you did not call him Mr. Barber, he would only answer to Colonel Barber. He was eccentric and wonderful all at once. Much of our class time was filled with him telling stories about problems he encountered during his army career, or just about life in general. Peppered within these stories were simple nuggets of wisdom that resonated with me. I didn’t have the context to understand many of them at the time. However, quite often during my own career, I’d occasionally get an “Aha!” moment when one of his lessons would come into focus for me. It’s amazing what we can learn when we are open and listen, even from almost forty years ago.

Lao Tzu says in the Tao Te Ching:

"When the student is ready the teacher will appear."

We are all influenced by that one teacher that impacted us differently than the others. Colonel Barber was one of mine. Besides the stories, he was the first person to help me understand that math wasn’t only some dry theoretical exercise. He showed us how theory could be converted into something practical and useful. We learned how to derive an equation and use it predict the outcome of something in the physical world. I’m sure all my prior teachers instructed me of that fact, but for some reason I didn’t get it until Colonel Barber pointed it out.

At the time, it was revolutionary to me that math could be something useful. From that point on, forces of nature appeared both logical and beautiful to me at the same time. I started to see patterns emerge as logical, connected and very interesting. The idea that the simplest of formulas, F = ma could be used as a starting point to generate all sorts of equations used for describing bodies in motion was a significant turning point in my life. Developing a hypothesis and testing it against real world results became a vital skill for me that I would use throughout my career.

Prior to taking Colonel Barber’s class, I had no idea what I was going pursue in college. But after a few short months with him there was no doubt, I would be doing something technical for a living. His influence started me on a trajectory which directed a major part of my future life from that point on. You never can fully understand the impact that decisions have at the time they are made, but we all can appreciate them in retrospect. For my personality and interests, his influence was a game changer and I’m happy to have met Colonel Barber when I did. I am lucky I paid attention for once and acted on his gift for teaching. He taught me how to think about problems and that simplicity almost always trumps complexity.

As a consequence, I often sought out assignments and opportunities to increase my skillsets and knowledge about problem solving during my career. I have been very lucky to learn under some great coaches. I cannot thank all the individuals that supported and helped me along my journey enough. The best of them were constantly challenging me with interesting problems and keeping me humble about any successes. They taught me how to adjust my perspective to see value and how to harvest it. I’ve held many roles over the years and find that I have way more fun when doing “improvement” work with good people. I only want to do that for the balance of my work life, which is why we started Peak Productivity.

Many of my colleagues have heard me discuss my idea of the “elegant” solution. For context, my definition of an elegant solution is that it meets the following criteria: simple, cheap, quick and effective. Not too hot, not too cold, the elegant solution exists in the renowned Goldilocks’ zone – it is just right. Most of the time we walk through life, and we don’t witness the thousands of small, elegant solutions all around us. During our history, mankind has developed literally thousands of these simple solutions that we use without the second thought every day. The elegant solutions often hide in plain sight. They are subtle and ubiquitous in all manner of common tools we use every day. It is often so hard to see the elegant solution because it doesn’t call attention to itself. In the press, they often use the example of Apple products to describe design features of this type, but they exist in all manner of products in our lives – if you look hard enough.

Everyone can, however, always recognize the “non-elegant” solutions in our everyday lives. They are all around us and they are complex, expensive, slow and don’t work very well. The question begs asking – why do we continue to create complicated and expensive solutions when there are elegant solutions for most all problems? I think it’s about the internal list we have in our heads.

I have been told I bring a certain “intensity” when presented with a challenging problem. I like working on hard problems and am seldom happier than when either alone or with a team at a whiteboard, the elegant solution was achieved. I’ve been part of solutions that saved several hundred grand for less than $50 plus a few boxes of donuts by COB that day. I’ve seen it done way more often that you might think. Not every problem can be solved that easily, but most all solutions can be improved significantly. Anyone can improve some feature or incrementally increase some process metric, but to elevate and transform something through an elegant solution is addictive.

There are numerous books, techniques and websites about how to conduct problem solving well. Most all the techniques are fine if you choose the right tool based on the complexity of the problem. I have found most tools can be effective at solving problems to root causes if you are disciplined in following them. But for the most part, the solutions are not always well thought out and often come up short. We don’t apply the same level of scrutiny to solutions that we do to root cause. I believe that if you are going to take the time to understand the reasons and causes of a problem, you should at least do it justice by using as much creativity for the solution. Don’t allow yourself to check the box off in your head that you’re done.

As a manager, I have stressed many an engineer who has walked into my office and stated they solved some assigned problem and wanted to discuss their findings. I have a rule that I follow. I consistently ask them to wait an additional 24 hours before they tell me their solution. They can tell me about their findings and root cause, but I do not want to know about their solution.

I am not being cruel by making them wait. I have found when many people come up with their solution, they immediately stop improving it. They check off that tiny box next to that problem and their mind claims victory. That turns off that little program running in the background of our subconscious that operates constantly when working on difficult problems. In their minds it’s done. On to the next problem. By introducing a buffer day so that the problem isn’t truly completed, I force them to slow down and reevaluate their answer. That gives them more time to think about their proposed solution and time to improve it. And they always do.

I have found that normally initial solutions are not optimal, and rarely that good. They tend to be non-elegant. Essentially, initial solutions are more often countermeasures. As an old boss used to say, “Whenever you hear the word countermeasure, you should imagine the sound of an old-style cash register ringing”. Because you just added cost to your process, forever. However, if we can add hit the pause button and keep thinking and revising for another 24 hours - not on the problem, but on your solution, you will come up with a much better solution. And this new solution is inevitably simpler, cheaper, faster to market and more effective every time. It has become more elegant in 24 hours.

Delivering value is hard work and it takes a certain mindset to constantly want to improve the current condition. There are many pitfalls to the craft of improvement and lots of ways to decrease productivity if you’re not careful. The purpose of our blog is to boil the lessons of our collective working lives into a series of ideas that can be used to improve your probability of success. I hope the lessons/warnings can help prevent you and your organization from making some of the mistakes that I’ve been a part of over the years. You are not required to repeat the errors of my past to benefit from them. Think of this blog as research to help select easier paths for decision-making.

Cheers

Respect for People at the Gemba

Mon, 06 Mar 2023 17:22:10 GMT

Four key principles to grow and demonstrate respect for people at gemba

I have spent most of my career in continuous improvement, working as a Lean Engineer. My journey started right out of college and at the time I knew nothing about continuous improvement, but I quickly learned that it was a great match for me! In the early years, I was taught so much from my co-workers about the fundamentals of lean:

The need for process stability before true improvement can begin.
The connection between people and machinery.
The pursuit of just-in-time delivery and when possible, one-piece flow.

However, the one cornerstone that struck the deepest chord with me was the cultural aspect, respect for people. When I reflect over the years, respect for people has provided some of the greatest successes with teams, most creative solutions for improvement, and a much deeper understanding of empowering people. Without it, I have seen irreversible damage to teams, broken trust of individuals, and a lack of heart within companies. Lack of respect at its extreme can destroy the hope for any type of improvement within the organization for years and years to come. Over the years, I have had more than one conversation with team members regarding their fear of continuous improvement and how it might lead to layoffs and cutbacks. It is a real fear because people have seen that as the end result. Let me just stop at this point and make a statement: If that is the goal of your continuous improvement activity, please don’t start the journey! The damage you do may last a lifetime.

So how does one develop and grow respect for people? Well, that is a complex and challenging question. I believe a key aspect of respect stems from our connection with a person. For some of us developing a connection comes easily and for others not so much. This doesn’t make some of us good and others bad, or some in touch and others out. I have seen people who related effortlessly and also ones that struggled, and at times I have found myself in both groups. At the core, I believe to develop respect one must build trust and demonstrate empathy. The gemba is a key place for that to occur.

Before we go any further let’s define gemba , which means the place where work occurs. Many people will use gemba or gemba walk as a synonym for going to the production area, shop floor, or workspace, but it is actually so much more. Let me give you my operational definition, it is the place where you go to learn what is really happening in the process that you want to improve. Let’s say you want to improve your shipping process, then go spend time in your shipping area, watching how trucks are loaded and unloaded, what paperwork is being completed, and how your products are staged and prepared for shipping. This is not the same as going and sitting in the shipping manager’s office discussing the process and problems. Maybe you want to improve patient flow in the emergency room, go spend time watching how patients move from one area of the ER to another. You can even perform gemba walks in an office setting by following the paper trail (both physical and electronic) for billing, order entry, or new employee onboarding. These are all examples of going to the gemba.

Now you have a little better understanding of the foundational blocks, respect for people and gemba. Let’s look at some tips I have found useful in connecting with people at the gemba.

Talk with the person you want to observe before you begin your observations . I have completed countless observations and time studies and understand you don’t always have the luxury of choosing when to perform them, but allowing the person you are going to observe to have some say shows respect. During your initial conversation it is a good idea to explain what you are observing while reminding them it isn’t a performance evaluation. Sometimes the operator may indicate it isn’t a good time which probably relates to a couple of things: the line isn’t running well, or the operator is having a bad day. We all have an occasional bad day, so a little empathy and a few words of encouragement can go a long way in connecting with each other, making the time at the gemba a little easier. If, however, the person is reluctant due to current issues continue inquiring about the type of problems they are having. How long has it been running poorly? Are there any changes they have noticed to the raw material or the machinery? Has anyone from quality, engineering, maintenance, or management been out to talk with them about the issues? This open-format discussion demonstrates your interest and commitment to helping solve problems while letting you see firsthand the challenges they are facing. Whether you complete the observation at that time or come back later, thank them for being open to talk and that you appreciate their time. The next time you go work with them, you will find the conversation easier and discussion deeper.

LISTEN to what they say!! Talking with the person and asking related questions will not only help you gather critical information on potential issues to improve and drive to deeper root cause understanding but provide a platform to build a relationship with someone that is knowledgeable about the day-to-day functions within the process. In most cases, the repetition of daily work allows someone to gather tremendous amounts of information about materials, machinery, the sights and sounds of the area, so when they speak about those areas, processes, and problems, we should listen. They may provide great recommendations for potential solutions, or act as a sounding board for solutions that haven’t worked in the past. Either way, listen, take notes, and thank them for their time and valuable feedback.

Be part of the solution . As you talk with the person and listen to them, there may be issues and problems that are brought up that you could help resolve. If that happens, offer to provide support and help. Maybe you are not certified to run the line or maybe there are rules that limit your participation in processes, that’s OK! What are the things you can do to help fix the problem or provide support? Maybe it is as simple as following up with maintenance on a machine issue, or with quality on an issue. Possibly it is very complex and requires a lot of resources, data, and time. Either way, offering to follow-up and provide some support shows respect during their challenging times. Time spent digging into those issues opens the door for more learning opportunities about the machine, the product, the raw materials, and, most importantly, the person. There is one warning about offering support that brings me to the final point.

Don’t make promises that you are unable to keep. If you tell the operator you will follow up on an item, then do so. If you tell them you will speak with someone in maintenance, quality, safety, etc., about the issues you observed, then do it. It may take some time to get the information you need, but once you have it then go back to them and give an update. In some cases, you will have successfully resolved the problem, however, most of the time the item still won’t be completed. Either way, the follow through with the person is a giant step in building a relationship that may prove to be extremely valuable.

At this point if you have not realized it building respect will take patience. It won’t be built overnight or in one interaction with continuous application of these helpful hints, you will find your ability to show respect will grow along with your reputation of being a respectful co-worker. It will also take time to build this trust, which is also a luxury many of us don’t have. But I am not sure how successful you, your teams, projects, department, or company will be if you don’t take the time and energy to foster a culture from the ground up that is built on respect. It is interesting that the more respect I give others, the more respect I receive. Which, in the end, isn’t that really the type of place we all want to work, grow, and thrive?

Points to ponder:

How do show people respect at the gemba?
Which skills do you need to focus on improving or adding to your regular routine?
Can you think of someone you need to foster a deeper respect for or repair a broke respect?

Take a few minutes to jot down a few things you would like to try this week.