Tag Archives: Decision Making

Lean Is Tough – The Phases of a Lean Transformation

Sometimes, consultants sell lean as a quick and easy way  to success that pays for itself. Unfortunately, this is usually not true, as many companies have found out the hard way. Getting lean in a company is similar to getting a lean body; it is usually neither quick nor easy. Let me show you the different phases of a lean transformation. Continue reading Lean Is Tough – The Phases of a Lean Transformation

Dealing with Uncertainty

UncertaintyA lot of decisions in lean manufacturing have uncertainty. How many products will I sell (and what is my customer takt)? Which layout is more efficient? Should I believe expert A or expert B? Uncertainty is a part of life in manufacturing. In fact, the higher up you go in the hierarchy, the more you have to deal with uncertainty. And often these are not just simple “A or B” type of questions, but highly complex and interacting decisions like “What should our new line look like?” Here are some suggestions on how to deal with uncertainty. Please note that they will not answer all of your questions but will help you make better decisions. Continue reading Dealing with Uncertainty

Reddit: I am Chris Roser, a professor studying the past, present, and future of manufacturing, and just published my first book. AMA!

reddit-logo-notextOn September 27, I did my first Reddit: “I am a … ask me anything.” With almost four hundred comments, I consider it a quite successful AMA.

I am Chris Roser, a professor for production management; a lean expert; a Toyota, Bosch, and McKinsey alumnus; and I’m interested in the past, present, and future of manufacturing. I lived and worked for multiple years in the USA, in Japan, and in Europe. I run a blog, AllAboutLean.com, and just completed my first book, “Faster, Better, Cheaper” in the History of Manufacturing: From the Stone Age to Lean Manufacturing and Beyond. Continue reading Reddit: I am Chris Roser, a professor studying the past, present, and future of manufacturing, and just published my first book. AMA!

Volkswagen Supplier Relations Failure

volkswagen-fightIn the last months, there has been an unprecedented power struggle between Volkswagen and its suppliers. Two of the suppliers stopped delivering, leading to a full stop of multiple production lines at six Volkswagen plants, including its main plant Wolfsburg. This whole mess comes on top of the separate problems Volkswagen has had with its Dieselgate. In this post I would like to look in more detail at what happened. Continue reading Volkswagen Supplier Relations Failure

The Problems of Cost Accounting with Lean

Calculator and MoneyAccounting is one of the cornerstones of the modern economy. Cost accounting in particular helps in decision making with the goal to maximize profit. Many decisions are based on these numbers. Unfortunately, cost accounting usually does a really poor job of capturing the essence of manufacturing in general and lean manufacturing in particular. Continue reading The Problems of Cost Accounting with Lean

American Automotive Market Strategy of Toyota and Others

Major Car MakersThe largest ten car makers sell over 200 different car models on the US market. Without vans, SUVs, and sport cars, there are still 100 consumer cars left. Toyota has the largest number with a total of 14 models, yet they still have an excellent market strategy and very little self cannibalization. BMW has much fewer models, yet still manages to cannibalize itself. GM has 13 models and also steps on its own toes, while completely missing another market segment. This post is based on a master’s thesis of one of my students, Amir Javanshir, and the detailed source is at the end of the article. Continue reading American Automotive Market Strategy of Toyota and Others

Lies, Damned Lies, and KPI – Part 3 Countermeasures

Kid with Glasses
How to measure good KPIs

There is an inflation of key performance indicators (KPIs) in industry. In my last posts I have explained how KPIs are often wrong, and why bad and fudged KPIs are a huge waste. Yet, you cannot really run a larger corporation without KPI. In this post I will finally give some advice on (1) what you need to do to measure good KPI, and (2) how to avoid fudged KPI. Continue reading Lies, Damned Lies, and KPI – Part 3 Countermeasures

Lies, Damned Lies, and KPI – Part 2: Effects of Fudging

Business fraud
About the ills of number fudging

Modern manufacturing works with a lot of performance measures, often called key performance indicators (KPIs). Unfortunately, they are rarely accurate, and often even intentionally misleading. In my previous post I described some examples of commonly manipulated KPIs. In this post I would like to explain the ugly consequences of incorrect or manipulated KPIs. In a final post I will also show some ways that you can reduce this negative effect. But first, how do bad KPIs (and hence most KPIs) hurt your company? Continue reading Lies, Damned Lies, and KPI – Part 2: Effects of Fudging