Lean Quote: Monitoring Quality Goals and Rewarding Success Insures Excellence

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"Quality must be monitored: Not just encouraged; Rewarded: Not Just Praised." — Joseph L. Mancusi, Ph. D.

Quality in your processes must be measured. A quality measure quantifies the quality of a product or service, as defined by comparison to a criterion. A performance measure is a type of quality measure designed to assess the extent to which the actions of an organization conform to business guidelines or standards of quality.

Performance measures designed to move associates toward business goals can be a powerful catalyst for action. Because "you get what you measure," it is important to think through how and what you measure so you can achieve the desired results.

Long term financial performance hinges on overall quality, value, and customer satisfaction. However, when individual departments focus solely on maximizing their own financial performance, the profitability of the whole company is sub-optimized. A warning from the father of Total Quality Management, the late Dr. Deming: "Everyone propels himself forward for his own good, on his own life preserver. The organization is the looser."

A key performance strategy can be to use the service department to increase customer satisfaction levels. Customer complaints are considered a gift, an opportunity to learn about, then remove customer dis-satisfiers and secure high levels of customer satisfaction.

There are a number of other quality assurance measures that can be used to measure and monitor the quality of your processes like these:

Percent error in reliability projections
Percent of product that meets customer expectations
Time to answer customer complaints
Number of customer complaints
Number of errors detected during design and process reviews
Percent of employees active in professional societies
Number of audits performed on schedule
Percent of QA personnel to total personnel
Percent of quality inspectors to manufacturing directs
Percent of QE's to product and manufacturing engineers
Number of engineering changes after design review
Number of process changes after process qualification
Errors in reports
Time to correct a problem
Percent of suppliers at 100 percent lot acceptance for one year
Percent of lots going directly to stock
Percent of problems identified in the field
Variations between inspectors doing the same job
Percent of reports published on schedule
Number of complaints from manufacturing management
Percent of field returns correctly analyzed
Time to identify and solve problems
Percent of lab services not completed on schedule
Percent of improvement in early detection of major design errors
Percent of errors in defect records
Number of reject orders not dispositioned in five days
Number of customer calls to report errors
Number of committed supplier plans in place
Percent of correlated test results with suppliers
Receiving inspection cycle time
Number of requests for corrective action being processed
Time required to process a request for corrective action
Number of off-specifications approved
Percent of part numbers going directly to stock
Number of manufacturing interruptions caused by supplier parts
Percent error in predicting customer performance
Percent product cost related to appraisal scrap and rework
Percent skip lot inspection
Percent of qualified suppliers
Number of problems identified in-process
Cost of scrap and rework that was not created at the rejected operation
Level of customer surveys

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The Lean Sink

Washing our hands is an all too common process.  One we do so often we forget about the process.  Have you ever stopped to think about the waste within this process.  Maybe you start the water and wet your hand then reach for the soap.  Because the soap may be centrally located for a couple of sinks to share you let the water run.  While you get soap you are wasting water.  Then when your hand are clean you probably have to walk across the bathroom to dry your hands.  If you are lucky there is an energy efficient hand dryer instead of paper towels.  This process causes you to waste materials, has excess processing, and more transportation that necessary.

So what do you get when you combine this

with this 

and with this

Well, you get a Lean sink that combines all these steps into one unit.

Here is a video demonstrating this great invention.


and if you like this you will like Paul Akers find from Japan.

Developing Wining Teams in a Lean Organization

Jeff Hajek and I recently hosted a webinar on how to develop wining teams in your organization. A group is defined as two or more people who interact with each other. A team is a group with complementary skills who are committed to a common purpose defined by a set of performance goals and hold themselves mutually accountably. It can be said that all teams are groups, but not all groups are teams. Groups don’t just become teams because we use that name. Highly performing and effective teams use a set of values that encourage listening and responding constructively to views expressed by others, giving others the benefit of the doubt, providing support, and recognizing the interests and achievements of others. In this webinar Jeff and I share eight ways in which you can create a wining team in your organization.  Here are the slides from this webinar:
  

8 Ways to Develop Winning Teams in a Lean Organization

View more presentations from Tim McMahon

The Life of an Idea

The Life of an Idea Presented by Toyota

Every idea has a life. A moment of inception. A period of growth. Struggle. Realization. It can be big or small, simple or complex and evolve to change the course of human history. And the beauty is that anyone can have a great one. Meet the Ideas for Good gurus and watch as they take you through the challenging, dynamic and incredibly rewarding process of coming up with ideas and ultimately making them a reality.



Ideas are an important part of continuous improvement. Some ideas become reality and other ideas just get buried deep into the pile of bad ideas. But without ideas there would be no improvement.  And remember bad ideas are a necessary part of learning to solve the problem.


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Toyota's Ideas for Good Finalist Show Ingenuity

A couple of months ago I mentioned Toyota's new challenge called Ideas for Good.  The idea was to take Toyota's technology to solve a problem to make our world a better place like this idea to help during natural disasters.  



They have picked the 25 finalist, 5 from each technology category, from all the ideas submitted. 

Take a look at these ideas, you be impressed by the ingenuity. From now till April 30, you can vote for your favorite idea in each category. You can vote daily to support your five favorite ideas! 


With your help, the five winners will be crowned. They will be flown to Pittsburgh, PA, for a three-day weekend of designing and further developing their concepts with the mechanical masterminds from engineering firm Deeplocal at the world-renowned Carnegie Mellon University. In addition, they’ll get their pick of a new Prius, Venza or Highlander Hybrid.

Lean Quote: Lean and Green, Think about Future Generations

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"Because we don't think about future generations, they will never forget us." — Henrik Tikkanen

Today, April 22 has been designated Earth Day which creates a moment of reflection.

For over 40 years, Earth Day—April 22—has inspired and mobilized individuals and organizations worldwide to demonstrate their commitment to environmental protection and sustainability.

Future generations should have the same opportunity that we have had using natural resources. Conserving and protecting our natural resources is important because some resources are not renewable and conservation is the only way that future generations will be able to access them. Since civilization is always pressing forward, the future generations should be focusing on how to preserve the remaining natural resources. We know little about the economic or long-term impacts of these energy resources.

In order for green technology to have an impact on the environment for the long term it must be sustainable for everyone everyday. Finding innovative and alternative technology that does not harmfully affect the environment or its people is the key.

Like the quote above indicates we need to think about our future generations. Many organizations fail to have this outlook in their vision. Lean and Green both require long term thinking to be successful. Not a few years but an outlook of generations, long after we’re done working. I have heard that Toyota thinks out 50 years into the future. When you think about your processes and products how long into the future do you consider? Would you change the way you do things based on a 50 or 100 year view?

So this Earth Day I challenge you to think long term in both your Green and Lean thinking. Your prosperity and sustainability depends on it.

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Bring Your Green to Work

Continuing this weeks discussion a Lean and Green has brought me to another resources for reducing energy at the work place. Energy Star has created an environmental challenge for organizations across the country.

The ENERGY STAR Challenge is a national call-to-action to improve the energy efficiency of America’s commercial and industrial buildings by 10 percent or more.

The Energy Star website has a section dedicated to Bringing Green to Work which has some useful tools.

Did you know that the energy used by a building to support just one office worker for a day causes more than twice as many greenhouse gas emissions as that worker’s drive to and from work?

One of the most useful tools I found was An ENERGY STAR® Guide for Identifying Energy Savings in Manufacturing Plants. This Energy Guide focuses on energy used in common industrial
applications:
       • Lighting
       • Heating, ventilation and air conditioning (HVAC)
       • Motors
       • Compressed air
       • Pumps
       • Hot water and steam systems
       • Process integration
       • Process heating – furnaces

Energy Star follow a process that looks like PDCA for their energy management program

This guide goes beyond the design of a energy program to provide opportunities for reducing energy with numerous case studies for reference.  I am sure you will find this information very helpful on your Lean and Green Kaizens.  

Saving energy saves our environment and resources which makes it cheaper to add value for our customers. Make a commitment this Earth Day to get started on your Lean and Green Journey.

Lean and Green Reduces WASTE

This Friday (April 22, 2011) is Earth Day so I would be remiss if I didn't mention the synergy of Lean and Green efforts and techniques to mutually eliminate waste.  This combination of thinking can help you make everyday Earth day in your organization.  Here is a portion of a popular article I wrote about a year ago.

Many manufacturers know the benefits of Lean manufacturing: higher productivity, better quality, reduced cycle time, plus enhanced employee engagement.  Lean is excellent at marshalling different groups and individuals into a high performing team focused on rooting out waste. That relentless focus on eradicating waste makes Lean a necessary partner for Green.

Environmental waste is any unnecessary use of resources or a substance released into the air, water, or land that could harm human health or the environment.  Environmental wastes are often a sign of inefficient production, and they frequently indicate opportunities for saving cost and time.

Lean efforts can lead to significant environmental gains since environmental wastes are related to Ohno’s 7 deadly wastes.  The table below from EPA's Lean and the Environment Toolkit  lists the environmental impact of these wastes.

Despite the relationships between Lean’s 7 wastes and environmental wastes, many Lean implementation efforts often overlook opportunities to prevent or reduce environmental wastes.  I have found adding the following 5 environmental wastes with the acronym WASTE to the traditional wastes helpful:

Water: leaks, waste streams from processes

Air: evaporation of chemicals, dust, particulate

Solid Waste: filters, excess material scrap

Toxic/Hazardous Waste: solvents, process residuals

Energy: machinery on when not in use, heat loss, oversized motors

These five wastes raise awareness of the opportunities for improvements that not only affect the process, but also working conditions and overall environmental impact.

Environmental benefits from Lean alone are often incidental; they are not a result of an environmental focus or concern.  Green and Lean should be synergistic not just additive or complementary concepts.  The integrated whole of both methodologies is often greater than the sum of the impacts from each approach.

Lean Meetings: A Better Way

Have you been to a meeting lately that seemed to take forever, drifted off the original objectives and agenda, and left you none the wiser of what was really achieved? By applying Lean thinking you will never have to have that experience again. Lean meetings give Structure, visibility and with a little discipline have the ability to drive improvement. 


Here is a great video from The Association of Manufacturing Excellence (AME) Western Australian Region explaining the improvement of meetings using Lean.



My friend Matthew E. May just posted an article where he explains how to hold Lean meetings.  He says Lean meetings has two key differentiators from traditional meetings:
First, meetings aren't necessarily scheduled.
Second, very little discussion occurs.

Matt, shares a method of transforming your meetings with 3P's:

Purpose: Determine why you're meeting, define the purpose.
Process: Determine the best way t accomplish the goals from above, create a plan.
People: Determine the participants and the roles required for a successful meeting.

So now that you have seen a better way to meet this advice will make it easier for you to start transforming meetings in your organization.