Lean and Metrics The FastCap Way

Paul Akers from FastCap answers the question from a follower on what Lean is and what metrics you measure in a Lean environment. Paul’s response is a great one and worth repeating. The following key points summarize Lean and Lean Metrics:

1) Make Lean so simple anyone can understand it.
2) Fix what bugs you and improve it everyday.
3) Every employee must make a 2 sec improvement everyday.
4) People fail sometimes and solutions may not valid but you learn from that.
5) Create a routine like: start day with Sweep, Sort, Standardize, then improvement time, then morning meeting.
6) Give people time everyday to experiment, train, and teach.
7) Simple metrics –
           a) 1 improvement everyday
           b) Orders out in 2 hours
           c) Less than 1 mistake a week
           d) Want customers to rave about us
8) Defects are something the customer sees.
9) Develop the skill and capacity to solve problems by everyone everyday.

Here is Paul in his own words:



Paul says he likes Lean compared to other methodologies because it is focused on the individual, respect for their creativity, and brings them into the process on a daily basis.

What do you think? Did Paul Akers get it right?

TPS: The Source of Human Progress

While on the internet the other day I came across these videos explaining the history of the Toyota Production System.  They appear to be from an older video that has been edited and then subtitled in Portuguese (I believe).  I think I had seen the original video before on the Art of Lean provided by Art Smalley.  Still learning about the history of the Toyota Production System can provide a look at the progress of manufacturing by human thinking.

Daily Lean Tips Editions #11

For my Facebook fans you already know about this great feature. But for those of you that are not connected to A Lean Journey on Facebook or Twitter I post daily a feature I call Lean Tips.  It is meant to be advice, things I learned from experience, and some knowledge tidbits about Lean to help you along your journey.  Another great reason to like A Lean Journey on Facebook.

Click this link for A Lean Journey's Facebook Page Notes Feed.

Here is the next addition of tips from the Facebook page:

Lean Tip #151 - The following three points are extremely important in establishing standard work.


The following three points are extremely important in establishing standard work:

The reality of the shop floor is clearly reflected in standard work.
Standard work must be realistic and applicable to the shop floor.
Standard work must lead to continuous improvement opportunities.

Lean Tip #152 - We must ask why the standard work times are not being met

Always ask youself "Why?" repeatedly while observing the shop floor in detail. Ask questions like,"Why is work performed in a certain way?", "Why are workers moving in a wasteful manner?" and "Why are we have trouble reducing standard work time?" Then, start thinking firmly about what you can do to improve the situation.

Lean Tip #153 - If there is a problem, go to the actual place and solve it if you want to get things done.

If there is a problem, go to the actual place and solve it instead of just criticizing it as if it does not concern you at all. This is one of the most fundamental practices that we can do to facilitate the ability to get things done.

Lean Tip #154 - Ideas are different from knowledge.

Ideas are different from knowledge. Anyone can aquire knowledge by reading books or attending school. In other words, knowledge can be readily purchased. On the other hand, ideas are aquired by ones own experience. You must apply your knowledge to create ideas.

Lean Tip #155 - Fix the problem immediately and move on.

Some managers point out a problem to workers and leave it to them until it is solved. This does not motivate workers to fix the problem right away. Taiichi Ohn always made sure his workers:

Fixed the problem immediately after it was identified.
Confirmed the result with their own eyes.
Ignoring problems means the waste remains in production affecting your process.

Lean Tip #156 - Visit the work area to understand and monitor improvement plans.

What can you tell at a glance? Here are some ideas to focus on:

What items are being worked on?
What items should be worked on?
What is the expected and acutal production rate?
What problems are the workers having?
How many people are needed?

Lean Tip #156 - Visit the work area to understand and monitor improvement plans.

What can you tell at a glance? Here are some ideas to focus on:

What items are being worked on?
What items should be worked on?
What is the expected and acutal production rate?
What problems are the workers having?
How many people are needed?

Lean Tip #157 - Make standards visually apparent to satisfy the customers need.

At a glance, employees and management should be able to tell what the customers need and what rate of production is needed to meet this. Any reason that the standards cannot be met should be visually apparent, so the problems can be solved immediately.

Lean tip #158 - Lean Tools can help create clear standards but they also need to be sustained.

Tools like 5S, standardized work, set-up reduction, and pull systems/kanban all help create a clear, standard work environment. But if these standards slip, then they quickly cease to become standards. Employees then become cynical about improvement and it slows down or stops.

Lean Tip #159 - Problem escalation should not be viewed as a sign of weakness.

Problem escalation should not be viewed as a sign of weakness. If an employee cannot handle a problem without assistance, he or she should ask for and count on management support. Making problems visible and solving them immediately should feel normal if you want to improve.

Lean Tip #160 - An effective idea system is not about the amount of savings obtained.

An effective idea system is not about how much savings are obtained from the ideas put forth. Typically we have many small problems compromising material and information flow throughout our companies, so it is many many small ideas that we are looking for.

Lean Tip #161 - Answer three questions to determine an inventory strategy for your pull system.

To implement an inventory strategy based on pull of the customer you need to determine three things:

How much inventory will you keep?
Where will you keep the inventory?
How will you replenish inventory based on customer pull?

Lean Tip #162 - Not all stock is the same, changes in demand requires different types of stock.

There are three types of inventory to consider:

Cycle stock: This is the minimum amount of goods being built for the next shipment and protects against average daily demand and demand through replenishment time.

Buffer Stock: These are goods held to protect against predictable common-cause variation in demand.

Safety Stock: These are goods held at any position in the stream to protect against unpredictable special-cause variation in demand.

Lean Tip #163 - Separating your stock can help you understand the source of abnormal inventory.

Separating inventory into buffer stock (to absorb customer variation) and safety stock (to absorb supply variation) aids in problem-solving by identifying the source of the cause of abnormal inventory (overstock or understock).

Lean Tip #164 - Reduce incoming and outgoing inspections to create flow in your supply chain.

Material (and information) should flow uninterrupted from suppliers to customers in a Lean supply chain. Shipping and receiving inspections are nonvalue-added processes and should be eliminated. To do this you will need quality-at-the-source and error-proofing.

Lean Tip #165 - Beware of Forecasting and Marketing Strategies When Looking at Consumption

When researching customer consumption, be sure to review forecasting and marketing strategies. Price discounting or promotions designed to push product into the marketplace will appear to increase ‘consumption” in the short run, but this rarely last for any extended period. Models that use historical data to forecast future consumption also can give inaccurate guidance.

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Platinum is Worth More Than Gold When Comes to Treatment of Others

You may have heard of the Golden Rule before. Many people aspire to live by it but the Golden Rule is not a panacea. Think about it: "Do unto others as you would have them do unto you." The Golden Rule implies the basic assumption that other people would like to be treated the way that you would like to be treated.  Is that the right assumption?

The alternative to the Golden Rule is the Platinum Rule:
"Treat others the way they want to be treated."

The Platinum Rule accommodates the feelings of others. The focus of relationships shifts from "this is what I want, so I'll give everyone the same thing" to "let me first understand what they want and then I'll give it to them." This rule presents us with a significant challenge, in order for us to follow it we must listen and inquire about the needs of others, and suppress our desire to tell them what it is that they need.

I believe the real goal of the Golden Rule is to treat others the way they would like to be treated. The Platinum Rule, distilled to its essence, equates to respect for others. After all, isn't it really about being considerate of others? Isn't it about understanding what their needs and wants are and empowering them to succeed by meeting those needs and wants? When you empower those around you, it makes for a positive and uplifting environment. Who doesn't want to be in a happy workplace?

The Platinum Rule not only applies to your employees but your customers, vendors, and partners. If you really want to deliver customer excellence and not simply deliver customer service then use the Platinum Rule. I think the best way to find out how your customers like to be treated is to ask them.

Customers may or may not like being treated in a standardized manner and they may or may not have the same preferences as the employees they are dealing with. In other words, they may want to be treated differently.

Knowing the personality preferences of others can help employees adapt their own behaviours to reflect the preferences of your customers. Reflecting the needs, wants and expectations of the customer – in a manner that creates a collaborative relationship – will achieve much greater success.

By teaching your employees to recognize, respect and reflect the customer’s preferences, by changing how you approach customer interactions, you can differentiate your company, its products and services from your competitors.

When you think about it the Platinum Rule is a value adding proposition while the Golden Rule is not. When dealing with others feeling valued can translate to respect. Respect for People is the most critical element for success in a Lean environment. So treat others the way they want to be treated.  It is worth more.

Lean Quote: Quality Improvement is About Management Improvement

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 in Client Services is a Team Issue, Top to Bottom." — Joseph L. Mancusi, Ph. D.

Before any action is taken, the management team must know and understand the areas where improvement can be noted.  Often, the problems are poor cooperation, poor communication, lack of commitment to team goals, poor management training and distrust of senior management.

By questioning workers in an interview or through a survey, managers learn how the organization is seen by the employees.  Go to the Gemba and engage the workforce to find what bugs them. They will show areas for improvement in management, morale, productivity and quality.  The first step to improve quality is to improve management team functioning.

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Respect for People - Support Japan

Source of Photo : AP

The last several days has been consumed with news from Japan after a magnitude 8.9 earthquake and devastating tsunami.  My company OFS is owned by FEC, a Japanese manufacturer, so I have been in touch with a number of colleagues since this disaster.  We have been fortunate that no employees in have been injured in this incident.  We have several plants that have been shut down since Friday with mostly infrastructure issues.


In Lean we talk of two main components: Continuous Improvement and Respect for People.  In Toyota, Respect for People extends past the staff of the company to the community.  Toyota strives to assist the communities where we live and work by supporting local organizations focused on the areas of environment, education and safety.  They believe this is there social responsibility and part of their long term (50 years or more) thinking.


In my experience Toyota and other Japanese manufacturers have given us a powerful business system in Lean Thinking.  This selfless sharing has transformed manufacturing in the US and around the world.  Maybe it is my personal connection but I feel we have this opportunity to give back in their time of need.

I encourage you to consider donating to the American Red Cross.  There are a number of other organizations that you can donate to as well.  It is important to pick a charity that has worked on the ground in Japan for a long time to avoid getting scammed.


Show your support for the Japanese people by practicing the important Respect For People principle.  Many of my colleagues in the Lean community have advocated support for Japan demonstrating we truly our a community.

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12 Ways to Start Building a Continuous Improvement Culture

Last week, Jeff Hajek from Gotta Go Lean Blog and myself gave a webinar on building a continuous improvement culture. We highlighted 12 areas of focus based on our experience implementing and teaching Lean thinking. Here are the slides from this webinar:

12 Ways To Start Building a Continuous Improvement Culture

View more presentations from Tim McMahon