It’s Engineers – Not Bankers – Who Create REAL Wealth February 16, 2009
Posted by Jeff Fuchs in economy.Tags: economy, manufacturing
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President Obama said recently, “investing in science, research and technology” are paths to financial recovery.And Congressional leader Nancy Pelosi said in a recent radio interview that if you want “four words to describe” the economic recovery package “it’s science, science, science and science. The science, technology and engineering…to keep us competitive in the future. This is not your grandfather’s public works program of the 1930′s…”
This renewed national interest in science and technology couldn’t come at a more opportune time as National Engineers Week kicks off February 15-21, 2009. Each year, this national campaign is designed “to raise public understanding and appreciation of engineers’ contributions to the larger society.”
And just what do engineers do? Above all, engineers create real wealth by solving problems rather than creating “paper” wealth by playing with the stock markets.
The Soiciety of Manufacturing Engineers recently ran an excellent article on the value of engineering, which the recent financial crisis has served to underscore.
Read the full article here.
30 Rock’s Six Sigma Retreat to Move Forward February 16, 2009
Posted by Jeff Fuchs in six sigma.Tags: six sigma
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For those of you who may have missed it, NBC’s comedy 30 Rock recently ran a parody of Six Sigma. Two of the show’s main characters end up going to GE’s Six Sigma Retreat to Move Forward. For the Master Black Belt/Bronze Certified/Certified Jonah/CPIM set out there, it was pretty hilarious. Or familiar and sick, depending on how you look at it.
GE is a big adherent of Six Sigma. One can only wonder how much of this episode needed to be heavily researched and how much came from the writers’ notes from their recent real world experiences.
The American Society for Quality asked in an email how readers felt about the episode. Responses will be published February 25th. Naturally, we will cover this breaking story for you!
Watch the full episode on NBC’s website here.
Your Own Process and People, Not the Internet February 16, 2009
Posted by Jeff Fuchs in Lean Thinking.Tags: Lean Thinking
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Over at the LeanBlog, Mark Graban noted a recent post asking a question about lean implementation. The question, as he notes, was basically asking for “the right answer” for a given application. Mark observes that the right thing to do is to go to gemba – where the work gets done, involve people, look for waste, follow lean principles, and logically arrive at the effective countermeasure. In other words, to observe, think, and solve the problem.
Read Mark’s full, thoughtful posting here.
Indeed, I “feel his pain.” If cut-and-paste solutions were all that was necessary, then continuous improvement would be exceedingly simple. James Womack’s book would not have been titled Lean Thinking; he would have more appropriately named it Lean Copying. There is no substitute for true lean thinking. “Best practices”, in many cases, is dangerous territory because the simple replication of a countermeasure short-circuits the deep observation, logical analysis, learning through experimentation – the whole critical thinking process. Copying the work of others may deliver the short term benefit of a static, one-time upgrade to a process. But processes are dynamic, and continuous improvement is just that: continuous. Blindly using the solutions that others have developed before you does almost nothing to build the skills necessary to continuously improve.
Lean in the Classroom February 16, 2009
Posted by Jeff Fuchs in government, Lean Thinking.Tags: Lean Thinking
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Over the years, several universities and vocational programs have implemented lean courses as part of their curriculum.Through its Manufacturing Extension Partnership, Massachusetts has utilized grants to offer lean training at both the college and vocational levels. Worcester Polytechnic Institute applied a National Science Foundation grant to develop hands-on lean training. The curriculum includes a simulation in which students assemble clocks using a multistage process.
Just like any other manufacturing environment, the students have sales, shipping, production and quality control departments. Students are asked to come up with their own solutions to improve process flow without reducing the workforce.
MassMEP had a similar program in place for three years aimed at attracting at-risk youth between the ages of 16 and 22. These students learned basic manufacturing terminology and lean principles through simulations. The program attracted about 100 participants a year – and then it ended when the funding dried up.
Read more about efforts to inject lean into the classroom here.
Next Generation Manufacturing Study Kicked Off February 16, 2009
Posted by Jeff Fuchs in survey.Tags: leadership, manufacturing, supply chain, survey
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The American Small Manufacturers Coalition (ASMC) recently launched a study to assess America’s progress in adopting manufacturing strategies necessary to win in the global economy.The Next Generation Manufacturing Study asks about participants’ current posture in six areas: customer-focused innovation, systemic continuous improvement, advanced talent management, global engagement, extended enterprise management, and sustainable products and processes.
Study participants will receive a customized benchmarking report comparing their progress to the overall results.
Read an overview about the study here.
Participate in the study here.
NASA Leans Out Ping-Pong Balls February 16, 2009
Posted by Jeff Fuchs in Lean Thinking.Tags: Lean Thinking
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National Aeronautics and Space Administration (NASA) researchers recently found ways to reduce the price of a ping-pong ball from $2,250 to as little as $33 as part of a lean effort. Multi-thousand-dollar ping-pong balls don’t really exist. They were fiction, and the exercise was all part of the Langley Research Center’s commitment to cutting waste and enhancing quality.Lean teams were charged with squeezing out manufacturing costs associated with the “virtual” balls. The “Langley Launchers” team not only reduced the price of a ball to $35.40, but also was able to reduce failures from 31 to 0, and production time from 10 balls in 20 minutes to 25 balls in 1 minute, 16 seconds.
Read the full article in SME’s Lean Directions here.
Of Course Inventories Are Swelling in Long, Slow Supply Chains February 16, 2009
Posted by Jeff Fuchs in economy, Lean Thinking, supply chain.Tags: economy, Lean Thinking, supply chain
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The LeanBlog notes a recent Wall Street Journal article that observes how inventory is backing up in transoceanic supply chains. Business leaders are frustrated.
To WSJ and business, all I can say is, “Well, duh.”
As the post notes, the WSJ spot quickly turns to the power of information technology as a way out. Blog author Mark Graban then does a great job linking the problems the WSJ article notes to a classic supply chain simulation. Information is not a savior here – a lean supply chain is. Graban goes on to link the article’s main points to good lean practices. Bravo.
Like Mark, I for one hope that the current economic crisis drives business practices a different way in the future. Hopefully, our emergence from this situation will see more companies developing shorter, leaner, more responsive supply chains with good lean accounting practices that show costs more accurately and holistically. While we’re at it, we can build strong, close relationships with companies and countries that have better labor practices, environmental compliance, and product safety.
Read the LeanBlog post here.
Manufacturers Consider Migrating Back to U.S. February 16, 2009
Posted by Jeff Fuchs in manufacturing, supply chain.Tags: manufacturing, supply chain
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A new study by Archstone Consulting shows that companies are contemplating the re-establishment of manufacturing domestically, amid rising costs and other strategic challenges within the off-shoring model. As companies reassess their manufacturing and supply chain strategies for today’s global economic environment, the trend may create significant job opportunities in the U.S., according to the recent study.The study found that almost 90% of the companies surveyed are considering changing — or have begun changing — their manufacturing and supply strategy and are being more and more selective in making off-shoring decisions. U.S. manufacturers have become increasingly aware of the need for a more sophisticated total cost model that considers factors such as supplier price and terms, delivery costs, operations and quality costs, customer-centric supply capabilities and other situational costs that arise.
Read the full article here.
LeanBlog Podcast: Part 2 with Norman Bodek February 16, 2009
Posted by Jeff Fuchs in Lean Thinking.Tags: Lean Thinking
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Norman Bodek continues his conversation with Mark Graban on the LeanBlog Podcast, talking about his discovery of a unique system in Japan, at Canon, called the “Super Meister” system that trains employees to be able to build an entire copier on their own. This was introduced in an earlier episode of the Podcast. Norman also talks a little more about Gerry Corrigan and his Lean/5S work in Ireland, employee ideas, and his video terminal that allows him to teach people remotely.Listen to the podcast here.
Is It Time for a Postal Service 2.0? February 16, 2009
Posted by Jeff Fuchs in Lean Thinking.Tags: government, Lean Thinking
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Calls for an overhaul of the U.S. Postal Service are getting louder. They’ll only increase in volume in the runup to a 2¢ increase in the price of a first-class stamp, scheduled for May 11.The extra postage is needed to cover the rising costs of a sprawling operation that employs 685,000 people, operates 37,000 retail locations, and in fiscal 2008 delivered 202 billion pieces of mail in every state, city, town, and village in the U.S. and its territories.
In an effort to rein in costs, the Postmaster General floated the idea of cutting back on mail delivery to five days a week from six.
But what USPS may need most is a technological revamp. So say two startups that specialize in digital document delivery. Earth Class Mail provides mail-scanning services for consumers and small businesses. The company’s CEO, Ron Wiener, says it’s cheaper to deliver a document over a computer network than by hand, especially when the recipient lives in a remote area, and so much of what is delivered via mail begins its life as an electronic file.
He may have a point. But what will become of all those free flyers that I use to start fires? Whom will the neighborhood dogs chase? And what will I put on the post at the end of my driveway?
Read predictions about the future of mail here.
The Electric Car Battery War February 16, 2009
Posted by Jeff Fuchs in government, green business, manufacturing.Tags: government, green, manufacturing
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President Barack Obama has set a target of 1 million electric cars on U.S. roads by 2012. Most experts agree that lithium ion, which can be used to create batteries that weigh far less and store more power than those in today’s hybrids, will be the dominant technology.The big question is whether any U.S. battery maker will be a major player by the time a mass market develops for electric cars, which could take a decade. The field is already crowded.
Should Uncle Sam provide billions in loans and grants to a promising but unproven business? Or should the government wait for the market to sort things out before it backs a U.S. company? The risk is that by then another major industry could go the way of memory chips, digital displays, the first solar panels, and the original lithium-ion batteries used in notebook PCs and cell phones. American scientists, funded by federal dollars, were at the forefront of each of those. Yet the industries-and the high-paying manufacturing jobs that go with them-quickly ended up in Asia. U.S. labor costs and taxes drove many operations abroad, but often industries fled simply because Asian governments, banks, and companies were more willing than Americans to risk big capital investments.
Read the full article here.
Electric Garbage Truck is Powered by Garbage February 16, 2009
Posted by Jeff Fuchs in green business, new products and technologies.Tags: green, new products and technologies
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In what is believed to be a world first, a small town in the UK has debuted an electric municipal garbage truck that’s powered by the garbage it collects. Kirklees council has deployed a modified Ford Transit with a 40kWh lithium-ion battery pack as its first silent garbage truck – and the trash it collects is burned back at the Energy from Waste center, generating enough energy to recharge the truck’s batteries and pump another ten megawatts back into the power grid.
Read all about it here.
Obama Needs a Secretary of Innovation February 16, 2009
Posted by Jeff Fuchs in Creativity & Innovation.Tags: Creativity & Innovation, economy
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BusinessWeek’s Thomas D. Kuczmarski ponders the importance of hiring a chief innovation officer to join the new presidential administration. Government officials, he says, often don’t see the need. They argue that innovation is everybody’s job. Or they confuse it with research and development and say it already is being done. However, he says, innovation is a multidisciplinary and disciplined process that needs to be managed and led. If everybody is in charge, then nobody is, and little gets accomplished, if anything at all. Or worse-and this may sound familiar to anyone who has followed Washington-there is a lot of action based only on guesswork, not on a careful exploration of what really is needed.Now, in the midst of recession, companies need to innovate more than ever. Yet too many are choosing instead to hunker down, postpone investments in R&D, and avoid risk-taking until the market has stabilized. The companies that continue to build an innovation culture and make modest investments to keep the innovation pipeline full will be the ones that enjoy a big competitive advantage a few years from now.
Read the thought-provoking article here.
How does this apply to your company and innovation in a downturn?
Adjusting Continuous Improvement in Hard Economic Times February 16, 2009
Posted by Jeff Fuchs in economy, Lean Thinking, six sigma.Tags: economy, Lean Thinking, six sigma
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The events of the last few months can only be described as an economic perfect storm. Both junior companies and large conglomerates around the world went from planning their next multi-million (or billion) dollar expansion to putting projects on hold and cutting production, seemingly overnight.The focus should now be on managing costs, controlling expenses and improving efficiencies. It is the perfect time for continuous improvement initiatives to step up and show their worth. These initiatives, however, need to adjust their strategies so that the most value is returned in the shortest period of time. To do this, continuous improvement professionals need to:
- Concentrate on core processes
- Speed things up
- Create a sense of urgency
- Cut costs faster than falling revenue
Read the full article here.
IDEO’s David Kelley wins Edison Award for Innovation February 16, 2009
Posted by Jeff Fuchs in Creativity & Innovation, leadership.Tags: creativity, leadership
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Many of you have heard me sing the praises of industrial design firm IDEO and it’s founder, David Kelley.
On April 1, IDEO founder David Kelley will be awarded the Edison Achievement Award by the Thomas Edison Papers at Rutgers University for his “pioneering contributions to the design of breakthrough products, services, and experiences for consumers, as well as his development of an innovative culture that has broad impact.”
Read the announcement in FastCompany here.
Fueling Innovation Through New Organizational Forms February 16, 2009
Posted by Jeff Fuchs in Creativity & Innovation, culture.Tags: creativity, culture
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New organizational forms have emerged over the past years. These new forms offer insights for organizational design and change and are key drivers for innovation and growth. This article is academic in its treatment of organizational forms, but covers a range of types. It classifies the forms and analyzes how they might influence innovation.
The article specifically examines organizations that are ambidextrous, collaborative, learning, or emergent.
Read the full article here.
50 Ways to Foster a Sustainable Culture of Innovation February 16, 2009
Posted by Jeff Fuchs in Creativity & Innovation.Tags: Creativity & Innovation
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The Idea Champions blog lists fifty actions to successfully establish a culture of innovation. Words are cheap. It’s easy to wax poetic about “culture change.” It’s quite another thing to make it happen, according to Mitch Ditkoff. These 50 things are more than just talking about it; they are tangible ways you can foster a culture of innovation in your organization.Read them here.
Calculating the Cost of Quality February 16, 2009
Posted by Jeff Fuchs in quality.Tags: quality
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In this Quality Progress (ASQ) article, a case study at an auto parts maker demonstrates a new way of calculating the cost of quality (COQ). The study focuses on the trade-off relationships among various quality cost categories. The authors calculated the point of balance, or the lowest COQ value, by comparing related total quality costs.Read th full article here.
Global Alliance Calls for Accounting Reform February 16, 2009
Posted by Jeff Fuchs in Lean Thinking.Tags: lean accounting
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An article in Lean Accounting News notes that a new report released by the Global Accounting Alliance, which is composed of professional associations around the world, including the American Institute of Certified Public Accountants, called for reforms that support Lean Accounting.
“Getting to the Heart of the Issue” is a 27-page report that addresses the complexity and principles of accounting practices and makes recommendations for needed reforms, particularly in light of the rapid emergence of a global economy and changes in business practices. The report is based on interviews with accounting “thought leaders” from different countries.
Although the report does not specifically address lean accounting, it does espouse many of the same ideals. In the executive summary, the GAA states the purpose for preparing the report: “. . . to ascertain views from a broad cross-section of stakeholders in the international arena to barriers to the practical application of a more principles-based accounting regime and how the current complexity and detail in listed company financial statements could be reduced, so as to focus on better communication with financial statement users.”
Download the report from the GAA website here.
Fault Tree Analysis Assesses What Leads to an Event February 16, 2009
Posted by Jeff Fuchs in quality.Tags: quality
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This article in Quality Progress describes Cause and
Effect Trees, which are used during risk assessments to identify dominant potential contributors before an incident occurs. They also show design and operational errors. “And” and “or” gates connect the sets of causes and effects, and a single item can be both a cause and effect.Read the article here.
Productivity Accelerates As Companies Slash Jobs February 9, 2009
Posted by Jeff Fuchs in manufacturing.Tags: manufacturing
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The Wall Street Journal reports, “Companies continue to slash jobs and output, but are producing more goods with fewer workers, a sign that the labor market could stay sluggish for some time.” Even though “an increase in productivity is usually a good sign for U.S. economic growth” with “more output per worker helps drive growth,” the Journal notes that “the news isn’t as cheery as it appears. Productivity increased because total U.S. nonfarm output fell at a 5.5% rate in the fourth quarter while total hours worked by employees fell at a 8.4% rate, the steepest decline since 1975.” The numbers indicate that “companies cut hours aggressively last quarter as the economy slumped.”You can read the full article here (subscription required)
Lt. Randy Russell, Lean in Law Enforcement, Part 2 February 9, 2009
Posted by Jeff Fuchs in government, Lean Thinking.Tags: government, Lean Thinking
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This episode of the LeanBlog podcast is the second part of a two-parter with retired Lt. Randy Russell of the Jacksonville Sheriff’s Office, an innovator in the use of Lean methods for improving law enforcement (a link to Part 1 is here imbedded in the article). In this episode, Randy discusses examples of how Lean methods are helpful in law enforcement and how 5S or standardized work can help save a life.Listen to the podcast here.
Best of TED: Hans Rosling February 9, 2009
Posted by Jeff Fuchs in Creativity & Innovation.Tags: Creativity & Innovation
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Professor of international health at the Karolinska Institute in Sweden, Rosling developed a Flash program called Trendalyzer that allows people to easily compare and contrast large volumes of data with animated charts (Google has since acquired the software). He designed the software with his son and daughter-in-law after surveying Karolinska’s top medical students and discovering how ignorant they were about the world.Rosling’s demonstration of the software took place at the latest TED conference is one of the most popular on its web site. During his demo, as large and small bubbles representing countries raced across a chart showing their development over time, Rosling called out their positions like a horse race commentator. The demo raised questions about which countries could truly be considered developed.
Many of you have heard me rave about TED, an annual conference of technology, education, and design. TED never fails to disappoint. Watch this video. You will never be able to look at your boring Excel spreadsheet again! I guarantee, it will make you feel completely statistically illiterate. I can’t wait to get my hands on Trendalyzer!
Read the interview with Hans Rosling and see the video here.
A Resource Guide for the Unemployed February 9, 2009
Posted by Jeff Fuchs in economy.Tags: economy
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- Job-Hunting Realities: What ‘No’ Really Means. Oftentimes, rejection usually has more to do with the company than with you.
- Advice on Career Advancement in Tough Times: Focus on helping the company, don’t attack rivals, and know the pressures on your boss .
- How managers can help their people and themselves in adjusting to new business realities.
- Downsizing 101: Describes your ethical responsibilities if you are charged with giving someone the bad news.
- Recession-Proof Jobs: Highlights software development and sales positions, among others.
- Timing a Layoff to Get Severance: Key advice here is that if your company hasn’t offered you a bonus to stay until layoffs begin, start looking for a job now.
- As the economy struggles, one article warns that some companies are cutting severance benefits along with workforces.
- A video describes that with a lot less money to draw from in their retirement, many retirees are out looking for jobs.
- An article that notes that the benefits offered to unemployed workers – and whether your job situation qualifies for benefits at all – vary greatly from state to state.
- The latest news that projects future numbers, identifies repercussions, and looks at private and public fixes.
- The U.S. Labor Dept.’s Unemployment Insurance (UI) programs provide unemployment benefits to eligible workers who become unemployed through no fault of their own and who meet certain other eligibility requirements.
- Reports that unemployment rates are dropping make us happy; reports to the contrary make us anxious. But just what do unemployment figures tell us? Are they reliable measures? What influences joblessness?
- The National Employment Law Project: An online forum created after the 2001 recession for the nation’s jobless and underemployed workers.
Find the links in the article here.
Half a Million Job Cuts: Is There a Strategy Behind the Layoffs? February 9, 2009
Posted by Jeff Fuchs in economy.Tags: economy
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In a single week in January, corporations around the world laid off nearly 100,000 workers. Since September last year, more than half a million jobs have been eliminated, even at companies that were doing well some time ago. A number of observers are blaming this trend on the economic downturn or on a restructuring of the global economic system. But is this really the case? According to experts from Wharton and elsewhere, what companies are experiencing is neither an indication of a transformation nor a blanket prognosis for the rest of the economy. Instead, they say, the job announcements highlight operational weaknesses and strategic issues that have been lurking under the surface for years.
Read the article here.
