Daily Lean Tips Edition #81 (1216 -1230)

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.

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

Lean Tip #1216 - Establish Quality Circles

Quality circles are an empowering alternative to keeping employees boxed within the narrow confines of their compartmentalized functions. Choose a group of talented employees who are skilled at problem solving, and give them a work-related challenge you're trying to solve. Let them analyze the situation and present solutions. The more they do this, the stronger they become.

Lean Tip #1217 - A Proactive Company Culture Drives Employee Initiative

CEOs and top executives should develop a proactive company culture to ensure employees stay motivated to take initiative. They can establish and drive this type of culture through leading by example. Employees should want to be leaders in their workplace because they truly believe in the visions and goals presented by their company culture and top management.

Lean Tip #1218 - Empower Them to Think Differently

While it’s important to set clear goals and responsibilities, the key to having a successful business and engaged workforce is to empower all your employees to make decisions on their own. Make sure employees are comfortable and confident asking questions, bringing forward new ideas and even taking a different approach that may fail. Out of that failure will come knowledge and longer-term success.

Lean Tip #1219 - Create a More Inclusive Environment

If you really want to empower employees to be leaders in the workplace, create a more inclusive environment for them. Employees who are encouraged to give their opinions — and believe their insights are valued by top management — will feel more comfortable taking charge. An inclusive workplace acts not only as a resource for management to help grow business, but also to promote employee growth as well. Everyone wins!

Lean Tip #1220 - Create Opportunities for Employees to Shine

While every company is pleased to have natural-born leaders, others may need a bit more prodding. Empower those employees by providing them with a bit more freedom to pursue to their passions. Then give them the opportunity to demonstrate their work to other employees.

Lean Tip #1221 - Develop an Environment that will Encourage Continuous Training

Foster an environment that will make your employees see that the future of the company lies within continuous on job training. You should replace the idea of initial training with ability to develop and become a better equipped employee. Coming up with this kind of environment will empower your employees thus giving them the self motivation that will drive them to the need of improving themselves. Your business culture should be built around employee improvement and satisfaction. Integrate continuous on job training in your daily routines so that it can stick. Remember, employees that are encouraged by the fact that there is a good environment within which they can grow have high chances of being loyal to the company hence better productivity in the end.

Lean Tip #1222 - There has to be a Good Communication System for Improvement

The key for finding areas that need to be improved or adapting to all your employees needs is through having an excellent communication system. There has to be clearly defined channels of communication within the company to facilitate better flow of information from employees and the management team. You have to give your employees well defined goals and directions on ways to improve on their expertise. Also remember that for better communication within the organization, the communication has to be two way; getting comprehensive feedback from your employees as well communicating ways that will help them improve as part of the continuous training strategy.

Lean Tip #1223 - Learn Something New Each Day

Approach life with a beginner’s mindset and look constantly for one new tidbit or a new way to expand your expertise or knowledge. Be open to learning and at the end of the day reflect on what you learned or sometimes maybe even relearned. Document, meditate or contemplate the ideas you have learned to help ingrain the lessons learned. Then you can decide how to put it into practice.

Lean Tip #1224 - Teach Others to Learn Yourself

You learn what you teach. If you have an outlet of communicating ideas to others, you are more likely to solidify that learning. Start a blog, mentor someone or even discuss ideas with a friend.

Lean Tip #1225 - Put Learning into Practice

Skill based learning is useless if it isn’t applied. Reading a book on Lean isn’t the same thing as doing Kaizen. If your knowledge can be applied, put it into practice. Set out to do something you don’t know how. Forced learning in this way can be fun and challenging.

Lean Tip #1226 - Pay Attention to and Engage People in Conversation to Demonstrate your Sincere Interest.

Participating in courteous conversation is a powerful relationship-building tool. Staff will find the fact that you take time to engage them in conversation rewarding and recognizing. You also set an example when you establish courteous interaction as an expectation in your workplace.

Lean Tip #1227 - Never Underestimate the Value of Sharing your Time and Building a Relationship with Staff.

They appreciate your genuine interest in their ideas and thoughts about their jobs. They like bouncing ideas back and forth with you and look for your sincere input on their projects and goals.

The role of mentor and coach is powerful in training your organization’s culture and expectations. It is also a significant source of experiential knowledge, history, work approaches, and on-the-job training.

Lean Tip #1228 - One of the Best Forms of Recognition is to Provide Opportunities for a Contributing Employee.

Opportunities can take many forms. Employees appreciate chances for training and cross-training. They want to participate on a special committee where their talents are noticed. They’d like to lead a team that is pursuing an important objective. They are happy to attend professional association meetings and proud to represent your organization at civic and philanthropic events. They’d appreciate the green light relative to implementing an idea they have for increasing morale in your workplace. They are eager to stop doing portions of their job that have become rote in favor of new goals and assignments that stretch their skills and build on their abilities.

Lean Tip #1229 - Employees Want to Know That They Have Done a Good Job – And, Especially, That You Noticed.

Employees want to be thanked and appreciated, every day, it can sometimes seem. But, a leader of employees makes other people feel important and appreciated, so frequent recognition sends a powerful message. The foundation of this successful relationship is the leader’s ability to make people feel important. This is critical when a manager’s success is dependent on whether employees want to follow him. In addition to words of appreciation, a manager’s actions speak loudly to employees about their value. Keep your commitments to employees.

Lean Tip #1230 - Link Recognition With Performance Goals.

The key is to promote behavior that will lead to better attitudes and improved performance. Therefore, every manager must know how to tie recognition with individual goals and the company objectives. If safety is a corporate goal, be sure to reward individuals for avoiding accidents or coming up with a new system to prevent them by making safety a priority. Connecting the recognition and a specific behavior helps drive future performance which will play a key part in achieving those corporate goals.

Problem Solving Starts With Defining The Problem

Accurate problem statements save time and effort by focusing the team on root cause identification. A well-stated problem statement is a clear and concise statement that describes the symptoms of the problem to be addressed. It speeds a robust corrective action process by identifying potential root causes and eliminating bias and noise.

Unfortunately, many don’t take the time to accurately define the problem. Here are three common errors in defining a problem:

1. Stating a solution in the problem statement

Bad – We need a new furnace because it doesn’t stay warm.

Good – The temperature is 20 degrees below specification.

2. Too large of a problem

Bad – The quoting process takes too long.

Good – The spare part quoting process takes 5 business days.

3. Vague problem statements

Bad – Customers don’t like the product.

Good – Customers returns of product X are 35%.

Consider the check engine light in your vehicle. It gives you a warning that there is a problem but it is poor at defining the problem. The light can come on for a number of problems. This doesn’t help you solve the problem and usually means you have to bring it in to a repair shop.

The problem statement is a clear and concise statement that describes the symptoms of the problem to be addressed. Defining the problem statement provides three benefits for the team:

• creates a sense of ownership for the team
• focuses the team on an accepted problem
• describes the symptoms in measurable terms

Accurate problem statements save time and effort when they contain all these elements:

• Keep it brief
• Avoid technical language
• Quantify the problem – Don’t solve it!
• Explain the costs
• Define the scope
• State the consequences/benefits of possible solutions

The following four guidelines are effective in creating a problem statement that is clear and concise:

Define the problem - In the problem statement, team members define the problem in specific terms. They present facts such as the product type and the error made.

Identify where the problem is appearing - Identifying where the problem is appearing, or manifesting, as specifically as possible helps the team focus its improvement efforts.

Describe the size of the problem - The size of the problem is described in measurable terms.

Describe the impact the problem is having on the organization - The description of the problem's impact on the organization should be as specific as possible.

The truth of the matter is that the more specific the statement, the better the chance the team has of solving the problem. An inadequate problem statement can lead the team down a dead-end path. When defining the problem statement try to avoid these four common pitfalls:

• The problem statement should not address more than one problem.
• The problem statement should not assign a cause.
• The problem statement should not assign blame.
• The problem statement should not offer a solution.

Another simple and effective method of defining a problem is a series of questions using the five W’s and one H approach (5W1H: who, what, where, when, why, how).

Who - Who does the problem affect? Specific groups, organizations, customers, etc.

What - What are the boundaries of the problem, e.g. organizational, work flow, geographic, customer, segments, etc. - What is the issue? - What is the impact of the issue? - What impact is the issue causing? - What will happen when it is fixed? - What would happen if we didn’t solve the problem?

When - When does the issue occur? - When does it need to be fixed?

Where - Where is the issue occurring? Only in certain locations, processes, products, etc.

Why - Why is it important that we fix the problem? - What impact does it have on the business or customer? - What impact does it have on all stakeholders, e.g. employees, suppliers, customers, shareholders, etc.

How - How many parts are involved? How are you going to solve the problem? Using what method or techniques?

Each of these answers will help to zero in on the specific issue(s) and define the problem statement. Your problem statement should be solvable. That is, it should take a reasonable amount of time to formulate, try and deploy a potential solution.

Einstein was quoted as having said that “if I had one hour to save the world I would spend fifty-five minutes defining the problem and only five minutes finding the solution.” This quote illustrates the importance that before jumping right into solving a problem, we should step back and invest time and effort to improve our understanding of the problem.

A well-stated problem statement speeds a robust corrective action process. It helps identify potential root causes and eliminate bias and noise. Accurate problem statements focus the team on the root cause of the problem. Only once the root cause is found can continuous improvement permanently eliminate it. Defining the problem statement is the first step in this process.

Lean Quote: Quality Comes Not From Inspection But From 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 comes not from inspection but from improvement of the process." — Mary Walton

Unfortunately, there are not enough organizations that understand quality. Quality is not additive or final. It must go beyond the product or service. We cannot add it at the end of the line or inspect it into the product. At best that is only a false sense of security. If we want a quality product it must be made with quality processes by quality minded people.

Nothing is perfect and everything can be improved. We must continuously review how and what we do in order to find better ways of doing it. This means accepting the occasional mistake and having the courage to admit it, along with the strength of mind to find a better way of doing things in the future.

Generally the most effective way to achieve quality is to avoid having defects in the first place. It is much less costly to prevent a problem from ever happening than it is to find and correct the problem after it has occurred. Focusing on prevention activities whose purpose is to reduce the number of defects is better. Companies employ many techniques to prevent defects for example statistical process control, quality engineering, training, and a variety of tools from the Lean and Six Sigma tool kit.

Process-centric thinking does not have to be overly complex. Sometimes, all it takes is a thoughtful examination to uncover significant areas for improvement. Rather than tolerating mistakes and repeat errors, facilitate process-centric thinking to continually improve, correct, and overcome execution difficulties.

Start with the idea of preventing defects, not waiting until they are identified and correcting them. Many companies have an active Zero Defects policy where defect prevention is paramount and quality inspection is almost just a verification of what they already know – that the product is defect free. If we can start with quality and maintain that quality throughout the process we will have a quality product.

 

Quality is Defined by Customer

Like beauty and truth, quality is in the eye of the beholder, your customer. Quality is an ever evolving perception by the customer of the value provided by a product. It is not a static perception that never changes but a fluid process that changes as a product matures (innovation) and other alternatives (competition) are made available as a basis of comparison.

Quality and excellence are not what you say they are.  Quality and excellence are what your customers say they are.  Customers of your products and services define quality!

Quality involves both hard and soft numbers. Actual quality is a hard number that companies often have measured precisely. It is quality from the point of view of the manufacturer. Perceived quality and expected quality are soft numbers that measure quality from the customer point of view. Perceived quality is the quality of product received by the customer. Expected quality is the quality expected by the customer before receiving the product. These three measures form a product quality model: perceived quality = actual quality - expected quality. To keep perceived quality above zero, managers should: define customer needs through talking with customers; pay attention both to customer desires and expenditures of resources; realize that industrial engineering and human behavior both have impact on product delivery; and emphasize processes that have the flexibility to respond to customer feedback.

Customers want quality that is appropriate to the price that they are prepared to pay and the level of competition in the market.

Key aspects of quality for the customer include:

•           Good design – looks and style

•           Good functionality – it does the job well

•           Reliable – acceptable level of breakdowns or failure

•           Consistency

•           Durable – lasts as long as it should

•           Good after sales service

•           Value for money

The objective of “Quality" is to satisfy the ever-changing needs of our customers, suppliers and employees, with value added products and services emphasizing a continuous commitment to satisfaction through an ongoing process of education, communication, evaluation and constant improvement.

Lean Quote: Freedom is a Chance to be Better

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.

"Freedom is nothing but a chance to be better." — Albert Camus

Tomorrow, we celebrate Independence Day in the US. The 4th of July is an extremely patriotic holiday where we celebrate the independence of our country. People celebrate with family and friend gatherings, barbecues, parties, games, food, fun, festivals, parades, musical events and fireworks.

Freedom is not just the natural right of every human. It is the state of mind that enables people to create the greatest and the most inspiring things. The spirit of freedom gives us the power to conquer new heights, whether it is a real mountain peak or a bold business challenge.

Lean is all about finding better ways to do things, so that they require less effort, less time and fewer resources. It is not about cost reduction – penny-pinching, cutting investment, taking out people – it is about finding better ways to get work done. It is about developing a mindset, methods and tools to identify and eliminate waste in all its forms at every opportunity. It is about freeing-up resources because you no longer need to use them.

Lean manufacturing provides your workforce the freedom that they need to own and maximize their productivity. In a Lean production plant, the "freedom to control one's work" replaces the "mind numbing stress" of mass production. Armed with the skills they need to control their environment workers have the opportunity to think actively even proactively to solve workplace problems.

Lean is more than the traditional metrics of improved efficiency, reduced costs and increased throughput. The people-centric approach to the application of Lean creates a better future, driven by empowered individuals working in teams, committed to continuous improvement. It is this culture of responsible freedom and trust that allows employees and their organization to realize the positive benefits of Lean and achieve a successful outcome.

 

The Gemba is our Lean Classroom

Human beings can definitely learn by hearing, reading, watching, seeing, and analyzing…but when it comes to getting results there is no better way than to learn by DOING.

If you want to learn how to drive, you have to drive. Humans are natural learners. They learn from everything they do. When they watch television, they learn about the day's events. When they take a trip, they learn about how to get where they are going and what it is like to be there. This constant learning also takes place as one works.

Learning by doing, also known as experiential learning, happens when you use hands-on learning to engage in an ongoing cycle of action and reflection, deepening your understanding of concepts and mastering practical skills. As you take part in meaningful activities—instead of simply watching them—and then later evaluating what you have learned, learning is far more meaningful, memorable, and long-lasting.

Leaders/coaches assist in this process by facilitating appropriate experiences through which you can learn, and by leading discussions that reflect on those experiences. Learning comes from the floor, from the Gemba, where the condition occurs.

The word 'Gemba' is a Japanese word that means the real or actual place. You need to go to the real place and experience these conditions for yourself before being able to take the next steps.

Management must go to the Gemba to practice Lean management. Gemba walking teaches us to see in new ways what we have failed to see before. There you can identify problems, non-value added activities, or wastes through a deliberate observation of a particular area or process.

Learning requires two elements to be truly successful overtime:

PRACTICE: After completing a learning experience, create opportunities to apply what you learned as soon as possible and many times to refine your ability.

EXPERIMENT: Take a risk and try something new, even if you aren’t all that comfortable. We can learn as much, sometimes more, from our mistakes than from getting it right the first time.

Everything can contribute to our experience of learning. But as you may realize, learning is incomplete if we don't experiment and practice. These activities can only occur in the Gemba and for that reason I say the Gemba is our Lean classroom.

Lean Quote: Don’t Seek Immediate Perfection

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.

"An environment that calls for perfection is not likely to be easy. But aiming toward it is always a goal to progress." — Thomas Watson, Jr.

Perfection is futile.  To be sure, perfection is the goal but it can not be achieved in one single initiative.

If we all waited for perfection, we'd still be reading by candlelight and riding horses to work. The problem in the real world is that nothing is perfect. It sounds obvious, but it is not quite as obvious.

Shoot for better, 80% better. Once you get to a certain point (whether it's 50% or 80%, or another number that makes sense), then run with it. In other words, take action. Then, adjust as you go along.

The 80/20 rule states that 80% of the benefit comes from 20% of the work. The last 20% of benefit (the perfect) requires 4 times more work. Often people believe perfection (100% benefit) is only slightly more expensive/difficult than the good (80% benefit). That isn't true.

If you try to achieve perfection you may well be at the kaizen a very long time.  Perfection is elusive.  If you can accomplish 80% of what you set out to and meet the goals of the charter then call it complete.  You will be back to improve from this new state again.

If people are told that perfection is the goal, but that it is impossible, they will rightly think that management has not quite thought this one through. They will mistrust much of what else is said. Instead, people should be told that perfection is the goal and we simply don’t know enough at the moment to reach it.