The economy of scale is well known. The larger a company gets, the more efficient it becomes. However, this trend does not go on indefinitely, and eventually turns into a diseconomy of scale. In this post I will look at the diseconomies of scale, and also the very related Parkinson’s Law.
In my last post I looked at delivery sequences like FIFO, LIFO, etc. This second post looks at simple production sequences where you do have to deal with limited production capacity. If you cannot make everything at once, you need a sequence in which you process the parts.
Sometimes, when you need a part or product from your inventory, you may have more than one item in stock. Which one do you pick? In this blog post I want to present a few strategies for choosing which item to take. The most famous one is FIFO, but there are more options available. In my next post I will present similar strategies if you need to start production before the item becomes available.
When googling Hoshin Kanri, you will sooner or later come across an X-Matrix. It is a visually very impressive tool, but I am in serious doubt about its usefulness. It focuses on the creation of the Hoshin items, but to me this approach is overkill, and – even worse – may distract the user from actually following the PDCA, especially the Check and Act parts. While the article is highly critical, I hope reading it and understanding the shortcomings help you better understand how Toyota thinks.
Hoshin Kanri can be used individually, but its full potential is shown across the levels of corporate hierarchy. The goals of a Hoshin Kanri should be derived from the Hoshin Kanri of the next-level hierarchy above. This post is part of a larger series on Hoshin Kanri. Let’s look at the hierarchy structure:
In my first post on Hoshin Kanri I explained the details of making the list for the Hoshin. This now has to be combined with a PDCA (Plan, Do, Check, Act). The rigor of PDCA gives value and life to what would otherwise be a simple action list. Let me show you:
This week I will look at Hoshin Kanri (方針管理, policy management). The word is often used as a sort of miracle cure for the problems in your organization. The tool itself, however, is rather mundane, although it did significantly help Toyota. This, of course, did not stop the West from over-complicating and over-hyping it. This post is the start of a small series on Hoshin Kanri.
There is one word that currently takes the lean world by storm: kata, or more properly Toyota Kata, a method developed by Mike Rother. The idea behind it is not only a bunch of buzzwords (like all too often) but actually goes in the right direction. Overall, I like the concept, although the attention it gets sometimes feels overdone. Let me give you the gist of kata.