Posts selected fromManagement Blog - Engineering Blog - Investing Blog and other blogs - Our Policy is to Stick Our Heads in the Sand
The failure to adapt to a changing world (the internet is here to stay folks) is amazing. Most companies would benefit from just adapting to the changing world without elaborate innovation plans. Innovation is great, but challenging. Don’t ignore the possible improvements short of innovation. continue reading: Our Policy is to Stick Our Heads in the Sand - 10x Productivity Difference in Software Development
I think these orders of magnitude are not present between people in many jobs. And I think people’s ability to correctly access who are orders of magnitude better is often faulty. But my experience leads me to believe the difference between exceptional software developers and average (not even below average) is very high.
In many fields interruptions are costly (and multi-taking is wasteful. In software development those interruptions are often much more costly than in other fields. continue reading: 10x Productivity Difference in Software Development - Is Innovation Needed to Keep Manufacturing in the USA?
There is no ace in the hole. If countries want to keep manufacturing jobs they are going to have to do lots of things right. No country has such an advantage they can expect to rely on their country being more innovative (or offering cheaper labor, or their citizens working harder or…) than all the other countries in the world.
Innovation has been an advatage for the USA. It should continue to be an advantage for the USA but many other countries will innovate very well (Japan, Germany, China, Korea, Singapore, England…). The USA has many assets: transportation infrastructure, banking, rule of law, educated and skilled workforce, huge market, decent tax laws, engineering education… The key will be to keep focusing on the whole system (and fix things like huge budget deficient, huge current account deficit, excessive health care costs, excessive executive pay…).
I also believe a key competitive advantage will be in applying management improvement concepts such as lean manufacturing. continue reading: Is Innovation Needed to Keep Manufacturing in the USA? - Trust: Respect for People
Management then vowed that this (layoffs in 1950) would be the first and last time such an event would come to pass at Toyota, and, in a gesture of respect to former employees, Kiichiro resigned from his position as president of the company.
A bit different than laying off tens of thousands of workers and then taking huge bonuses [the broken link was removed]. And in case you don’t know, I think Toyota’s approach is more honorable and what should be aimed for (I wouldn’t say the president always should resign but it should be a significant admission of failure).
Does this mean no workers ever come into conflict with Toyota management? No. But Toyota’s respect for workers is qualitatively different than that of most companies.
Related: Bad Management Results in Layoffs continue reading: Trust: Respect for People - New Look American Manufacturing
Many factors determine whether the USA will continue to lead the world in manufacturing. The USA has to continue to support a dynamic economic system, maintain a transportation system, improve the health care system, improve the educational system, maintain the rule of law, reduce excessive legal costs, improve the management of manufacturers etc.. Each country has to work on these and other systems to stay competitive globally.
...
Excessive regulation compared to what countries – China, India, Germany, Japan? If you are talking about environmental regulation, the USA has more than China less than Germany or Japan. If you are talking about permits to get things done I think the National Association of Manufacturers (NAM) needs to go try to do business in Japan, China, India, Thailand, Mexico… and see how easy it is to navigate the undocumented processes.
And does NAM think the USA is good at nothing? Don’t manufacturers here benefit from being the USA? What cost advantages does that give them? I think being a manufacturer in the USA offers huge advantages as well as some challenges. The prospects are good. continue reading: New Look American Manufacturing - CEO Flight Attendant
This getting out and seeing work in action is exposed a great deal, including a lean management concept, Genchi Genbutsu – to go to see the problem in situ (not just reading a report about it).
The success of many management practices is more a matter of how the practice is done than if it is done. Also the success depends on the rest of the management system. Practices cannot just be copied. But you can learn from what others find useful and figure out how that idea would work within your organization. continue reading: CEO Flight Attendant - TQM for the Water Business
Deming did not like the term TQM. It was not defined, so each person using it meant something different. And the faddish nature of the term drew a large number of “hacks” (consultants who spoke with authority but without knowledge). Seeing the term TQM used now [2006] however, I find refreshing. To use the term TQM you must go against the temptation to talk only about the current fad (learning organizations, reengineering, balanced scorecard, six sigma, lean…). This author defines what he means by TQM... continue reading: TQM for the Water Business - Six Sigma Theory?
An interesting paper exploring what six sigma means and what it mean that what it means depends on who you ask. The ideas explored provide good information for most management improvement programs as most share common tools and concepts but vary significantly between implementations. continue reading: Six Sigma Theory? - Learning from Customers
 Create a management system focused on continual improvement that is engaged in seeking out customer feedback and continually improving the value provided to customers.
Most organizations do the opposite of this. They make put many barriers in the way of customers speaking to anyone that will listen. They put systems in place to discourage feedback from customers.
... continue reading: Learning from Customers - Ex-Toyota Manager Consulting with Porsche in 1994
While respect for people is an important part of the Toyota Production System, the practice of former Toyota managers were often the "tough love" variety. Today, many people are often too timid, in my opinion, to call out things that need to be improved for fear of making someone uncomfortable. Where that balance properly lies though is based on the culture of the organization (and what needs to be done - occasionally there is a need to "shake people up" in order to make change take place more effectively). continue reading: Ex-Toyota Manager Consulting with Porsche in 1994 - How Google Works
Google was driven from the beginning by engineers that sought to do what was best. Since those engineers were the founders of the company and still run the company Google has been able to keep the focus not on what is accepted as conventional wisdom but what actually works best. Google understands when you experiment things might not work out. Google’s solution is to experiement quickly and fail early (turn the pdsa cycle quickly). That is something every organization can apply. continue reading: How Google Works - Origins of the Toyota Production System
Our focus should be on improving our understanding of management. It seems to me the discussion has been beneficial thus far. I would also admit that this is probably of interest to a small sub set of those interested in lean manufacturing. That is fine. I do believe there is no benefit for discussions to degrade into negative attacks but when the discussion is mainly sharing views, information and ways of looking at the historical record I find it can be very interesting. continue reading: Origins of the Toyota Production System - Supplier Development Article
- Quality and Innovation
I really don’t understand how people can talk about innovation as if it were some new discovery. Yes I understand we can bring a different focus to innovation. We can reconfigure management structures to encourage and support innovation. That is good. And new ideas are being developed, but the innovation fad is silly. And accepting the notion that this innovation stuff is some new idea will make managers less effective than if they understand the past.
New Economics by W. Edwards Deming, published in 1992, page 7:
Does the customer invent new product of service? The customer generates nothing. No customer asked for electric lights… No customer asked for photography… No customer asked for an automobile… No customer asked for an integrated circuit.
Innovation has long been important to those interested in management improvement. continue reading: Quality and Innovation - The Exciting Life of Industrial Statisticians
All of this provides great new opportunities for industrial statisticians to serve as statistical leaders-a term popularized by the late and great Ed Deming (see Hahn and Hoerl, 1998). Statistical leaders engage principally in leveraging statistical concepts and thinking (see Hoerl, Hooper, Jacobs and Lucas , 1993), and focus their activities on mentoring and supporting the most business-vital and technically challenging problems dealing with getting the right data, and converting such data into actionable information.
continue reading: The Exciting Life of Industrial Statisticians
|
