Employment is an exchange of work for money. In my last post I showed a few tricks on how operators keep management in the dark about the true workload. However, management is also not giving out all the details on their side either. Naturally, the true value of the work is difficult to asses. Even if companies could know exactly how much each employee contributes to the success, they probably would keep this information top secret.
More interesting, however, is the value of the target workload, where operators are able to work continuously at 130% capacity without problem. The following are my own thoughts, as I have never seen these conclusions anywhere else before.
Employment is an exchange of work for money. As with most negotiations, both sides would like to keep their cards hidden, so employers and employees use different tricks in an attempt to hide the true facts from the other.
This post looks at the tricks of employees, whereas the next post will look at those of employers. As employees have more control over the work than they do over the salary, this post shows how to keep management in the dark about the true workload. Continue reading How Operators Hide the True Workload→
To manage your shop floor (or any other part of your enterprise), you need to have reliable data about the situation on the shop floor. Even with reliable data, the remaining uncertainty makes good management a challenge. Many managers, to save precious time, rely on data and information provided to them by their people. This is a grave mistake! Always verify at least part of the data with you own eyes! You would be surprised how different – and usually worse – it is in reality. Continue reading Visit the Shop Floor or Your People Will Fool You! – Genchi Genbutsu→
Lean started with manufacturing, but since then has moved in many other areas of the economy, from lean banking to lean healthcare. One major part of modern economy is administrative processes, which includes things like making offers, procurement, accounting, engineering, research, and many others. By some estimates, more than half of the cost of producing companies are in administration.Up to 80 percent of the lead time is due to administration. A lot of the principles behind lean can be used in administration. However, there are also some unique challenges that are less prominent in manufacturing. Let’s have a look. Continue reading The Challenges of Lean Administration→
One of the famous teaching methods by Taiichi Ohno is the chalk circle. The method itself is simple. A circle is drawn on the shop floor near a point of interest. A disciple is put in the circle and told not to leave it until he is picked up again by the teacher.
The 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→
Often, implementing “lean” means management is picking the latest lean-related buzzword and telling their people to implement it. This is wrong on so many levels. For one, a lean project should always start with a problem, not a solution. On another level, good manufacturing is all about the nitty-gritty details. Both normal operations and improvement projects need a lot of attention to details. Unfortunately, this is frequently lacking in many companies. In this post I would like to show you the level of detail for operator training in some excellent companies. Continue reading Pay Attention to Details – Operator Training at Toyota and Scania→
Lean manufacturing is difficult. External expertise can help you in improving your business. However, the wrong consultant can at best have no effect, or worse damage your company, or at worst kill the company. Hence the consultant you hire will have a significant impact on the outcome of the project. This post will give you some advice on how to select a good consultant. Continue reading How to Find a Good Lean Consultant→