Articles by: Ankit Patel
12/17/09 by Ankit Patel | modeling lean | No Comments »
Now we have models what do we do? Whether you have one or multiple customers doesn’t change your planning too much but it does matter the number of inputs and outputs. I want to cover the two main flows we encounter mostly and that’s the single inbound and multiple outbounds and the multiple inbounds and multiple outbounds with one customer.
Single inbound Multiple outbounds
Think of this like a doctor’s office or restaurant. You have everyone come through the door and up to a certain point they all follow the same process but afterwards they go in different paths. It’s important to note all the value streams (the possible combinations of flow for specific outcomes that the customer wants) that can happen and then make them work together. For instance in a restaurant some possible outcomes might be satisfying meal, fun happy hour, great atmosphere and food to impress a client, etc. Each one of these outcomes is really the value your restaurant offers the customer and each outcome may have a different value stream.
Multiple inbounds Multiple outbounds
Think of a manufacturing facility where you have multiple ways of taking an order and you have clients like large businesses, individuals, and the government. They all have different processes on both inbound and outbound and may even have different processes int he middle. Again you have to define your value streams so you can begin to see what the customer values and how you can maximize the results not your metrics.
So how do you tackle making the processes better. Once you define your value streams then you simple start working on eliminating waste, increasing flow, remove overburdening, and make sure you have a culture of continuous improvement. Most businesses are aligned by silos and not by value streams. Just changing that will shift your thinking on how you service the customers.
Imagine if a doctor got paid on the result of the care instead of the test he/she ran. How would we change the way we practice medicine? How would hospitals and doctor’s offices change their practices?
12/17/09 by Ankit Patel | Uncategorized | No Comments »
Only 1 in 5 employees is willing to go the extra mile for the company. Many times we look at lean from the P&L aspect and forget the most important part about lean, the people. It is commonly known that if you do a lean implementation correctly you will have great financial results. The thing that doesn’t get publicized is the fact that part (I would argue all) of the success comes from having a happier and more engaged work force. But why are people happier? Are you paying them more? Are you giving them more rewards?
I’m a big fan of continuous improvement on everything including my own life. I have listened and practiced to Tony Robbins materials and the way he models human satisfaction and happiness is by the six human needs:
1) Certainty
2) Variety
3) Significance
4) Connection
5) Growth
6) Contribution
In other words if you have all six then you will be a pretty happy individual.
Certainty
We like to have a certain amount of stability to what we do. With lean we measure to certain outcomes so stability and certainty are a major part.
Variety
Ironically we don’t like too much certainty. We need some spice by adding in variety. Continuous improvement is a way of life with lean so if you aren’t constantly changing and trying to get better you are not practicing lean. Lean also encourages cross training so you may not work in the same area all the time.
Significance
Everyone wants recognition and the feeling of importance. Lean turns the work area over to the people who run the work area. They have control and feel like they have ownership of the area and the responsibility to take care and improve their area. Their roles become 100x more significant once they have those responsibilities.
Connection
We want a connection with others; we are after all social creatures. With lean we have a more team oriented approach that tends to bond team members together. People have to communicate more with each other and once the system is viewed as the problem then it stops the finger pointing and helps with bringing people closer together.
Growth
We want to grow and develop from our current state. Most companies that implement lean implement cross training that gives people growth opportunities. People also grow by learning new skill sets that come with a lean environment.
Contribution
We like to give back and throw in our two cents. In a lean environment this is an expectation of everyone. Contribution is rewarded even if it isn’t fruitful.
You can see why lean is so great for employee satisfaction. You notice pay isn’t on the list and in fact if you look at other lists money is never the #1 factor. If you want to improve your bottom line look to make your workforce happier.
12/16/09 by Ankit Patel | modeling lean | No Comments »
First I’d like to say a model is never 100% accurate but it is a great way to help you get better with your processes. I was thinking the other day how do you apply lean across the board in any business and I came up with some interesting thoughts and please provide feedback. You can break up any process into inbound and outbound and it breaks down into these categories. Single means a single place of entry or destination and multiple means multiple places of entry or destinations.
Single customer through the whole process
- Single inbound Single outbound (Custom boat building where you have to go to the store to order)
- Single inbound Multiple outbounds (Most service industries like restaurants. They come in through the door but they all order different items)
- Multiple inbounds Single outbound (Order products online or by phone but still get shipped to you)
- Multiple inbounds Multiple outbounds (Most manufacturing businesses like computer manufacturers)
Multiple end Customers through the whole process
- Single inbound Single outbound (Buying and selling a used car as a dealer)
- Single inbound Multiple outbounds (Buying a car and selling it to the dealer, individual, or to an auction)
- Multiple inbounds Single outbound (Buy old computers from multiple sources, fix them, and sell them back to the school district)
- Multiple inbounds Multiple outbounds (Buy old computers from multiple sources, fix them, and sell them to brokers, schools, government agencies, individuals, etc.)
In the service industry we usually see either single customer single inbound multiple outbound (doctor’s office) or single customer multiple inbound and multiple outbound (consultants). With manufacturing we usually see single customers with multiple inbounds and multiple outbounds. With re-manufacturing (aka refurbishment process) we see multiple customers with multiple inbounds and multiple outbounds.
Where does your business lie in the spectrum? I look forward to your comments.
12/14/09 by Ankit Patel | Uncategorized | No Comments »
I tell random people what I do and when I tell them I hope companies implement lean they look at me funny and say “you mean like a personal trainer.” The reality is that “being lean” in terms of your body is very similar to “being lean” with a company.
Similarity 1: If you just want a quick fix you can have it but it won’t last unless you change your habits and mindset. You can get liposuction and loose 10-15 pounds but keep eating the same food and being a couch potato and it won’t be long till you’re back to the same situation. You can start using the lean tools like 5S and Kaizen but if you don’t really understand how to use them and change the cultural mindset the gains you get will be very temporary.
Similarity 2: You have to focus on ALL aspects or you won’t be successful. With your body you have to focus on eating right, exercise, rest, and lower stress. All of those factors contribute to weight loss. With a lean company you have to focus on cultural changes, being a learning organization, being able to adapt, and knowing what tools to use and when to use them. Without at least these factors your efforts will not stick.
Similarity 3: You have to do what works for you. There is no one way to get a lean body mass. I use Crossfit for my exercise and eat a Paleo Diet for my nutrition. Other people might do Pilates for their exercise program and the South Beach Diet for their nutrition. With lean for a business you have to address the cultural factors and tools but your journey through the transition will not be the same as others. Many companies start with a 5S program in their manufacturing but that may not always be the best idea. You have to find what works for you and your business.
Similarity 4: You shouldn’t do it alone. Human beings are social creatures so if you want to be successful it usually helps to get others involved. With fitness it’s very important to get a coach to help you along the way to keep you heading towards true north. The same is true for a lean journey; you need someone to keep you on track so you don’t stray and get lost. Even the best athletes in the world have coaches to constantly guide them and get them better The best companies have coaches to keep them on track. Why wouldn’t you?
Similarity 5: Just like weight loss you will hit hurdles in your journey to be a lean company. How you deal with the hurdles will determine the character of you company and you. Are you going to crumble and start eating Twinkies and working out less or are you going to stay on track to your goals. Are you going to revert back to your old ways of doing business or are you going to stick with your lean methods? It won’t be easy but if it were then everyone in the world would be thin and in shape and every company in the world would operate at their optimal performance level.
Similarity 6: Everyone thinks they know best because they’ve done it their whole life. Everyone has to eat so because they’ve been doing it for so long then they think they know about nutrition so they don’t listen to real experts and don’t experiment with healthier diets. Same is true for exercise programs. With lean in business people are usually protective for the same reasons. They are the experts because they have been doing it their way this long and it’s gotten them where they are today. You have to let go of the “I’m an expert” mindset and listen and learn to keep on top and to get better.
The main points are really that it takes time to be lean in any situation. You have to work on several factors at a time and not just one if you want to be successful and you have to keep working at it.
How do you see yourself on your lean journey?
12/10/09 by Ankit Patel | information blindness | No Comments »
The title is a saying I heard the other day and well basically it means that if you have too much information you get information blindness. Much like the “Too Many Papa Bear Companies” post you not only need to right size the inventory but information flow needs to be right-sized as well.
Have you ever been shopping for a gift for someone and when you go to buy the present you learn there are 100’s of different factors to consider. I had this problem when I was buying a cooking pan for my mom. I started doing my research and found out there are too many things to know. I spent hours researching reviews, handle shapes, Teflon vs. non-Teflon, durability, temperature limits, etc. Needless to say I really couldn’t go to the store and pick up just any pan.
I had information blindness form all the information I was gathering and I couldn’t make a decision quickly and effectively. The same is true with your work; too much information can hinder your ability to make a good decision.
If you have ever read the book Blink you are familiar with the fact that decisions are best made from thin slicing all the facts. In other words you only need a certain amount of information to make the correct choices. The more of an expert you are in the field then more information can actually be useful. The example the book gave were mayonnaise experts who ranked mayonnaise in 40+ categories. The average Joe could pick the same “best” mayonnaise as the expert but couldn’t tell you why. If you had asked the average Joe to use a mayonnaise scoring card then they actually get it wrong and do not pick the “best” mayonnaise.
The message here is you don’t need all the information you think you need to do a good job. Being flexible and moving into action is sometimes better than looking at every little nuance of a situation. By the way I bought my mom a spa day instead of the pan. I thought she would like that better anyways.
How are you hit with information blindness on a daily basis?
12/07/09 by Ankit Patel | excess inventory, goldilocks of lean, lean manufacutring, right sizing | No Comments »
“JUST ORDER MORE WIDGETS! I’D RATHER HAVE TOO MUCH AND KEEP THINGS RUNNING THEN NOT HAVE ENOUGH AND STOP THE LINE.” How many have heard something like that? I’d be very surprised if you haven’t. I was dealing with a materials guy who was held accountable on uptime, I know a shocking statement right? I can tell you it was fun getting him from the “papa bear mentality” to the “baby bear mentality.”
Lean is about right sizing; I like to call it the Goldilocks zone: Not too much (papa bear’s items), not too little (mama bear’s items), and just right (baby bears or Goldilocks’s items).
To many times we don’t right size. This point really hit home for me one day when I went grocery shopping for the first time as a young adult. My first mistake was I was hungry and went shopping! Even the boxes that the food was in looked good to eat. I went to the fresh fruit aisle and I saw the best looking strawberries that I have ever seen or probably will ever see and would you believe they were on sale! I think you know where this is going. I bought way too many, trying to be a papa bear, and I ended up dozens of spoiled strawberries.
So what do I do now? For starters I don’t go to the grocery store when I’m hungry. I don’t get tempted to buy too much just because the item is on sale. Lastly I don’t buy as much at each visit and just stop by the grocery store more often. Yes it’s more trips but they are much faster trips. If I’m craving apples one day and strawberries later that week I can get exactly what I want when I want.
So what bear are you Papa, Mama, or Baby?
12/06/09 by Ankit Patel | Uncategorized | No Comments »
http://www.leanblog.org/2009/12/guest-post-its-about-people/
Like many of you I first learned lean on the job in a manufacturing setting. Some of us have applied to areas outside manufacturing with pretty good success but there are things where it just seems like it’s not sticking with the people. So how do you convey the message to your audience? What I’ve seen work pretty well is using the DISC system to communicate to people why it’s so important to make changes. Just a quick review below is the DISC personality system. Typically people fall into 1 maybe 2 categories as their dominant traits.
[DISC.jpg]
[DISC MODEL SQUARE.png]
First off how do you know what category someone falls into? I’ve used it enough to where you get a feel for someone after about 5-15 minutes of talking with them but you can always find free tests online.
I was once trying to convince a call center in a company that they needed to reduce waste using lean principles. Good news was that lean was being done at the company and had some great successes. Bad news was that it had the stigma of being just a “manufacturing thing.” The very first thing I did coming into the call center was to be very direct and very task oriented. I assumed that most were D’s and S’s because in the manufacturing setting that’s usually the people you get.
Without getting into too many details let’s just say it was like pushing a wet noodle on a sticky floor. I decided to step back and review what was going on and saw that my communication style was way off for my audience. Can you guess what profiles dominated my audience? Yup I’s and S’s and some C’s with very few D’s.
What I found that worked best with the people in the call center was to tell them stories about lean and how it helped. I told them about how we had people running themselves ragged fire constantly fighting issues. When we implemented standard work those same folks felt like “the 3000 lbs ball they were carrying was lifted off their shoulders.” I told how the team members were happier after lean because they felt like they had a stake in what was being done. I would even bring in some of the manufacturing folks and have them do a testimonial. We had an office worker, a line worker, and a manager but the people were all the I and S profile. Because unlike magnets, with people like attracts like.
Once the initial hump was tackled then we could get down to business with the details but if it hadn’t been for the shift in communication style we wouldn’t have been able to help the call center as quickly as we did. I’d love to hear some of your stories on how you’ve used different communication styles with different personality types.
12/04/09 by Ankit Patel | Uncategorized | No Comments »
http://jamieflinchbaugh.com/2009/12/sweat-the-small-stuff-it-may-save-your-life-guest-post/
Flying is the safest form of travel in the world and a safe takeoff and landing is arguably a true 6sigma process but accidents still happen. Did you ever wonder what were the causes? Believe it or not it is rarely 1 huge catastrophic failure like an engine dying or a wing breaking off. In fact it’s usually the small mistake that we’re told not to sweat that causes the problems. Not just 1 failure but a series of on average 7 failures for airplane crashes and catastrophic failures.
The cumulative failure affect is a common phenomenon that happens across the board in all processes. Most processes aren’t as robust as the taking off and landing of an airplane so there may not be 7 failures that need to happen before a catastrophe. Think about some of your own experiences and how many “small failures” happened before a big failure.
I actually had this experience the other day the supermarket. I only had 3 items but I it took me 23 minutes to check out (yes I actually timed it). First issues was that there were not enough employees at the checkout counter so there were 6 people in front of me with full carts. Second issue was that I thought the other line was moving faster so I get into that line. Third issue came when I was next in line for checkout and the person in front of me needed cigarettes. Fourth issue, the key for the cigarette case was with the manager who was with an irate customer at the time. Fifth issue (now I’m actually checking out) was one of my items rang up 2x the price as the list price so they had to do a price check. Normally one of those issues isn’t too bad but the combination of the 5 in a row put me in the line for 23 minutes.
So what do we do about all the little mistakes? For starters you need a robust continuous improvement/problem solving system. The typical top down management doesn’t work because it’s too much to manage. Get the people who do the jobs on a daily basis to solve their problems and give them the latitude to experiment (yes they will make mistakes). It’s trickier than it seems but how serious are you about sweating the small stuff? What do you do to address the small stuff?
12/03/09 by Ankit Patel | computer outsourceing | No Comments »
I recently an article on how LG is going to outsource all their computer manufacturing. This is an interesting trend in the industry because all computer companies (Dell, HP, Apple) are moving from design and manufacturing to just designing the computers and just outsourcing the rest.
What does that mean? Well imagine your in a boxing match and instead of 2 arms you’re fighting with only 1. Before computer companies like LG could design the the computer, and leverage their supply chain and manufacturing to deliver to the customer exactly what they wanted and when they wanted. Now because they have introduced a middle man their lead time grows tremendously and are not able to respond to customer demands very quickly. Now they have to have the best designers to be on top and they are only fighting with 1 of their arms.
You might say so what? Well imagine there was an issue with a motherboard and the computers needed rework. In the old scenario you have a shorter lead time and less inventory so you aren’t affected as much and are able to recover quickly. Now imagine you have to store 10X more finished goods inventory because you have a 3rd party vendor manufacturing your product. This scenario actually happened at a company that I worked with and it was not a pretty sight.
Unfortunately they didn’t learn from their mistake and continued with the outsourcing process. Do you think this is a good idea for LG to to make this move?
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