newsletter archive.
(Previously published under the title Extreme Profits
under ISSN 1925-8941)
Lean leaders, musts for leading lean
Did you know that companies undergoing Lean initiatives are successful in only five-to-seven percent of cases?
If your organization is undergoing a Lean transformation, this figure should give you pause.
Just in time, continuing the improvement
We have all experienced the "just in case" syndrome: “Let's purchase a few extra file folders, just in case we need them next month. Let's order an extra toner cartridge, just in case the one we now have runs out of ink too soon. Let's buy an extra steak, just in case George decides to come for dinner.”
While it is so wrong and so wasteful, many businesses still run on the "just in case" model. Instead, they should be running in the opposite direction - using "just-in-time" (JIT).
The hidden cost of rework, workplace faults
One of the biggest problems in business processes is rework. Anything that has to be re-done, re-built, re-packaged, re-anything is a waste. If the service or product is not done right the first time, the individual (and the organization) experiences rework, resulting in more time, materials, and cost to the final service or product. If you work by the hour, reworking your deliverable may look like you're getting paid a lot to produce very little. And you'd be correct.
Move it or lose it, time is money
Many years ago, I remember handling a multi-copy "request for service" form that contained an area for four signatures. One of the signatures was required twice, at two different steps in the form's process. This meant that one manager had to see the form twice, at two different times. Now think about this. Here's a form that is initiating a service, but it is being transported between different offices multiple times. You can certainly see the problem with this process, but at the time, not a single manager thought this form or its process was flawed. Nor did they consider how this process was impacting their customer.
Waste not want not, stock piled
When we think of inventory, we typically think of the manufacturing industry, but businesses in any sector have inventory: Food, retail, service, government, not-for-profit, professional associations...name the business and it's a guarantee that the business deals with inventory. Inventory is necessary for business operations, but when supply exceeds demand, problems arise, especially in the organization's bottom line.
Mr. Roboto, show me, don’t tell me
Human "robots" can be found in many "un-Lean" organizations where employees are not utilized to their fullest potential. If your organization has underutilized employees, the organization structure and values may be to blame. You may say, "So what, at least they've got a job." Not so. There's a huge impact on the organization's processes and customer value if underutilized people remain underutilized.
The 97 percent solution, braking waste
Edwards Deming, the father of the "quality movement," said that 97 percent of what happens to organizations is predictable and is caused by the "system," not the person. It is reasonable to presume, then, that an organization should be able to plan for and manage 97 percent of its operations.