There was a very interesting article in this months HBR by Gary Hamel and Michele Zanini titled “The End of Bureaucracy” with an interesting example of how a Chinese company Haier, has adopted a very interesting business model to make it more efficient and agile in the market place. They have adopted the concept of ME (Microenterprises), whereby there are over 4000, each with 10-15 employees that serve the company both internally and externally. Continue reading “Bureaucracy – Fighting the “Waste” where appropriate.”
I am always amazed at what improvement potential there is for organisations, even profitable and well established ones. There is a perception that they are well down their “Lean” Journey, and that they have made significant improvements, whether it be through technology or process development. Organisations are rarely as well developed as they think they are, of course this breeds complacency. Maintaining the improvement “hunger” is a real challenge in large companies. Continue reading “The Difference Between Performing Organisations & Great Ones”
I read an interesting recent article in the Harvard Business Review about highly productive people. It was explaining the typical traits of these. These can range from being able to set stretch goals, showing consistency, maintaining focus, problem solving and may others. In our profession we spend a considerable amount of time working on productive work systems, but less time generally about productive people. Continue reading “Super Productive People”
There are numerous definitions of productivity, and a significant proportion of them are related to a company’s KPI’s in some form or other. If we take manufacturing as an easy example, these can be visualised as kg/hr , £/month or RFT (Right first Time) if we cover the elements of production, sales and quality. All of these have a direct relationship with the bottom line, and the cost of product made. However KPI’s are also important in the “transactional” environment such as the administration arm of a company, or in say financial services. Processing documents can be a significant proportion of any process, and errors or tardiness will also negatively effect the bottom line.
This is where an experienced coach/business consultant can help. Ones with significant industry experience in different sectors, can start to build connections on where the losses are. Continue reading “Different Perspectives on Productivity”
It sometimes feels as though we have entered a period of total doom and gloom with the global political turmoil, trade tariffs in the US, Brexit discussions etc. However the UK manufacturing sector is a lot more buoyant than the wider public may feel. I was lucky enough to attend two recent UK manufacturing events. At the MTA (Manufacturing Technology Association) annual dinner, the participants were extremely energised about the future opportunities and using technology such as AI to gear up for performance improvements and significantly helping UK manufactured goods. It was a similar story during a recent visit to the MTC (Manufacture Technology Centre) in Coventry. They are anticipating an upsurge in demand for their services including process support, prototyping and any other advanced manufacturing techniques post Brexit, as the UK will have to be potentially less reliant on non UK suppliers. These are premier manufacturing support hubs /platforms with a consistent message. A similar message was coming from another recent consultation briefing I attended on freight and logistics for the EA region. There is a shortfall in skilled labour to support these activities and companies in the supply chain sector are also clamouring, like the manufacturing sector, for more relevant training and education, both in the colleges and the universities. There was a sense that the new Apprenticeship Level Degree might go some way to meeting these needs, and both educationalists and employers in the room felt that “Necessity is the Mother of Invention”.
Reverting back to the current global volatility, this the opportunity to re-think everything, both manufacturing itself and related education to meet the demands of the future. This is now the next incarnation of “Lean Thinking”, and requires the relentless pursuit of waste elimination, employee engagement, collaboration and challenging behaviours. There is a new programme, National Manufacturing Competitiveness Levels (NMCL), created by the Government-sponsored Automotive Council and Aerospace Growth Partnership bodies as well as the SMMT (Society of Motor Manufacturers and Traders) and Aerospace, Defence, Securities and Space (ADS) trade associations. The purpose is to promote cross-sector learning, and the MTC have also been already facilitating the programmes with shared research, learning and development at the highest end, while respecting individual company IP.
This is a massive opportunity for the UK and, if others countries follow suit, an opportunity for them. Given that a lot of the work that these development hubs do is based on AI and digitisation, this is totally consistent with Industry 4.0 and what is termed as the fourth incarnation of the industrial revolution.
When we are looking at Productivity, we have a tendency to approach the easy stuff first. There is nothing wrong with getting “Quick Wins” in any Operational Excellence Programme, especially if you are trying to get traction in a new programme, by demonstrating the power of the system. However, there is a danger that we get ourselves into “Tick Box” mode, and we end up working through check lists. This means that we delay tackling the big issues, as we think we are making progress. This is not surprising as humans have what are known as cognitive biases. These are psychological states that can affect our rational thought processes and our ability to look at data objectively. There are many documented biases ranging from 15 to 20 in number. In this particular case we are talking about “Task Completion Bias”, which gives us the sense of achievement when we view a 70% or similar complete list. A recent two year study of 90,000 patients in the hospital emergency rooms, showed doctors not necessarily choosing the patients on the basis of the severity of their condition, which should be the primary focus. They were falling into this bias trap (HBR Paper – Task Selection & Workload)
I have seen some great examples of “Lean” thinking on my recent consultancy trips in Russia. A great one for “Takt Time” , and meeting customer demand for airline passengers. Not only is the immigration both rigorous and efficient at Domodedovo Airport, but they have set a standard of 40 minutes from the time when the plane hits the tarmac, to the time you clear the airport with your luggage. On each of the last 4 occasions when I have been there, my luggage was on the carousel before I got to it, and the shuttles were quick. It would be interesting to do a VSM (Value Stream Map) based around saved business time. I would imagine it would run into Bil. RUB. It would be great to see the same approach at Heathrow.
Some commentators have said that “Lean” has had it’s day, with the majority of western manufacturers, and those in the developing world, having run lean and similar programmes. These programmes show up under other guises such as “Production Systems” and “Operational Excellence”. However the fundamentals of these are founded in Lean . Lean has always been about continuous improvement and development.
As we get closer to a UK election there is a lot on peoples minds. The “snap” election has postponed slightly the “Brexit” discussions /negotiations. However, whatever the outcome of the election, because both the main parties have vowed to see “Brexit” through, business will have to be leaner and fitter than ever before. I have talked about speeding up the decision making processes before. Not only do businesses need to get their act together in their own facilities, they also need to look at the supply chain, and ensure they are protected without interruptions.
We know technology is advancing at a rate, but I have become aware of a great example. There was a recent article in The Economist around how a German online retailer OTTO, who are utilising AI effectively to improve the performance of their business and customer service. OTTO used technology developed by Blue Yonder and a deep learning algorithm originally developed at CERN for particle physics experiments, to analyse 3bn previous transactions with 200 variables. These included previous site searches. Armed with this capability they were able to purchase over 200,000 items, predicting what will be sold in 30 days with a 90% accuracy.