Archives for April 2014

Kaizen at Walters & Wolf

Kaizen at Walters & Wolf

We had our first Kaizen events at Walters & Wolf last week.  Kaizen is the word for Continuous Improvement in Japanese.  It literally means, Change for the Good.  We sometimes use Kaizen to refer to the small incremental changes we are making each day.  But we sometimes use it as an adjective to describe a more focused improvement event.

I had attended a Kaizen event at another company a while ago (see my previous post about the slot machine company) and was very impressed with how much you could get done in a week with a focused group of people.  We have been searching for someone to help us with doing this at our company and I’m happy to say we have found a good guide.

If you’ve read Paul Akers book,  you will remember the story about how two young kids, Brad and John, came to Fastcap and helped Paul understand how to improve his setup times so that he would not have to build in batches and could produce his laser jamb product using pull and flow methods.  Brad came to our facility a few weeks ago and agreed to help us with learning more about lean and how it applies to our company.

We had two events this last week.  One in the shop and one in the office.  Both were tremendously successful and really helped establish how powerful it can be if you get a group of people together with a focused purpose to change or study a process.

I think the most interesting thing was looking at how the lean principles of flow and pull can be applied to any process.  Obviously our shop is a very physical process.  If you work in batches it produces inventory that can be seen.  You can typically identify your bottlenecks by the amount of material that stacks up before them.  You can watch people leave their stations to go and look for materials or information.  It is much easier to “see” what is happening.  In our office Kaizen, we were having very similar issues.  But here, you can’t walk up and see it.  In a virtual process, you have to create a map of what is really happening in order to start to see where you are creating batches and creating bottlenecks.

I learned a ton this past week.  I learned how to address an “unbalanced” line.  In our circumstances (office and shop) we don’t do the same thing every day or even every 15 minutes.  You can’t just do a simple operator load chart and balance our lines.  You have to address the fact that the line will be unbalanced at all times and find a way to address that to get the best possible throughput.  As in most things, the planning and communication are critical to the process.   I also learned how to analyze a physical process and also how to analyze a virtual process.   We learned how to see the Muri and Mura in our virtual processes and how to use Just In Time concepts to address them.

These coming weeks will be very interesting as we implement some of the ideas we came up with.  I will keep you posted on our progress.

System Thinking

System Thinking

Dr. Edwards Deming used to do a demonstration called “The Red Bead Experiment”.  He would call up 6 willing workers and have them try to sort through a bin filled with white beads using a paddle.  In the bin were a mixture of red beads or “defects”.  The point was to show that no matter how hard the workers tried and no matter what things management put in place  (quality control people, training from HR, etc…) the statistical probability of having some red beads on your paddle never changed.

Deming was trying to make the point that no matter how good your employees are, if you have a broken system, you will never get the results you desire.

This reminds me of the story of NUMMI.  You can find the full story here.  In 1982, GM closed its Fremont plant.  This plant was plagued with labor issues and workforce problems.  Drugs, sex, gambling and alcohol were all present inside the plant.  Quality issues were rampant.  GM decided it had enough.  The following year, Toyota and GM started up a new joint venture.  GM wanted to learn how to build smaller gas efficient cars and the smaller Japanese company called Toyota was looking to see how their “Toyota Production System” would work in America.  At the time, GM was 7 times the size of Toyota.

The interesting part of the story is that Toyota agreed to hire back the exact same workers.  They believed that the system is the key, not the people.  Even great employees in a bad system will fail.  So, when NUMMI opened, 85% of the workforce was the same as when GM closed the plant.  Toyota began flying workers back in groups of 30 to learn the Toyota Production System.  They trained along side their Japanese counterparts on the lines in Japan.  They saw a completely different way of building cars where people were respected and empowered.

So, what was the outcome?  Initial quality numbers off the line at NUMMI were the best in America.  They were equal to those in Japan right from the start.

So, same plant, same workers and a completely different outcome.

You can see this play out in all sorts of arenas.  When Singeltary coached the 49ers, he was quoted as saying he couldn’t win with those players.  Vernon Davis, Alex Smith and the rest of the team.  When he was fired, they hired coach Harbaugh.  Harbaugh came to the team during the players strike and didn’t have the luxury of making too many personnel changes or even very many practices before the season started.  Yet, in the new “system” that he brought to the team, they were one game away from the Super Bowl that same season.

In another example, imagine your company had to hire kids right out of high school with no college degree.  It had no way to pay great wages and every 4 years or so all the people you hired and trained would leave and new people had to be brought in.  How well would your company operate?  Yet the US Military is one of the finest organizations in the world despite this “handicap”.

Not big on military examples?  What if you had a football team that could only draft rookies.  Also, every 4 years, you have to trade all of your best and most experienced players.  How well do you think you could do?  Well, between 1992 and 2004, the De La Salle High School football team won 151 straight games.  12 years of excellence with different players joining and leaving the team every single year.

The point is, a great system with average people will beat the best people in an average system every time.  Our companies are the same way.  How many managers wonder why their people aren’t getting the required results and yet the system the company and the managers have established is severely flawed?  Broken processes, silos between departments, lack of clarity and leadership, etc…

If you want to get amazing results, build a system that can deliver them.