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Balancing Two Types of Knowledge for Lean Transformation

Posted by markrhamel in Kaizen | No Comments

I am halfway through reading, what I consider (thus far), an important lean book. Robinson andSchroeder’s The Idea-Driven Organization: Unlocking the Power in Bottom-up Ideas is a very thoughtful,

practical book on the topic of employee engagement and daily kaizen.

Pure and simple, lean is not transformational without pervasive daily kaizen.

So, read this book.

…Anyway, Robinson and Schroeder refer to the work of Nobel Prize-winning economist Friedrich Hayek.I don’t know about you, but I wasn’t up on my Hayek. I’m glad that the authors made the introduction.

Hayek identified two types of knowledge:

1. Aggregate knowledge. This is ostensibly what top leaders possess (hey, stop snickering). It is

developed through some level of intimacy with macro-level data and financial and operational

performance information and analysis. This makes sense given the need for these folks to be able to

absorb the big picture, set direction and formulate strategy. However, aggregate knowledge does

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have its limitations, especially when it is in the hands of those

with a shortage of a key lean ingredient – humility. Even sufficient

aggregrate knowledge in the hands (or head) of the un-humble

can make top leaders feel that they know best. That means they

can have the grand illusion that they know better than the folks

who have the second type of knowledge, see below. This is folly,

as proven out on a daily basis in so many companies and, I dare

say, most every government organ. There’s a really good reasonwhy central planning doesn’t work – the central planners lack the

second type of knowledge, among other things (like true

“stakeholdership”).

2. Knowledge of the particular circumstances of time and place.

This type of knowledge is derived from real-life, consistent

gemba-based immersion. Folks who possess this knowledge, the

ones who do the actual work at the actual place, by definition

should be grounded in reality. (I say “should,” because not all

folks sufficiently grasp the situation – their lean thinking may be

immature or perhaps they’re not interested in acknowledging reality. It’s up to the leaders to helpthis along). In any event, with proper coaching and a good lean management system to facilitate

problem identification and the targeting and flow of ideas, the people with this second type of 

knowledge are THE proper and most effective force to conduct kaizen.

There are at least a couple of things that the “aggregate folks” can do to help themselves gain some

particular knowledge. Coincidentally, this will help the organization.

As Fujio Cho, now honorary chairman of Toyota Motor Corporation, taught, leaders should

religiously go see, ask why, and show respect. Much of this should happen within the context of 

well-developed leader standardized work.

Leaders can periodically participate in kaizen activities firsthand with the stakeholders. This willforce leaders to go to the gemba, directly and rigorously observe reality with their teammates, and

only then, earn some of the necessary insight to share in local PDCA.

Similarly, the “particular knowledge folks” can obtain a least a modicum of aggregate knowledge, morelike expanded line of sight, by the incorporation of frequent regular visual process performance metric

(people, quality, delivery, cost, and rate of continuous improvement) reviews as part of their naturalwork team huddles. Less frequently, they should be apprised of performance at the more aggregated

levels of value stream, business unit, etc.

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Now, we’re not saying that one type of knowledge is better than the other. Every organization needsboth in order to survive and ultimately thrive. However, like most things in life, there needs to be a

balance.

But, here’s my humble advice to the aggregate folks – set policy and create alignment, establish the leanecosystem vis a vis lean management systems, model lean leadership behaviors, challenge, encourage,

and coach the “particular guys,” …and in a large measure, get out of their way.

Related posts: Subsidiarity: A (Medieval) Lean Principle, Eight Ways to Avoid the Kaizen Roach

Motel, Why Do You Ask?

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Newsflash: Behavioral Benefits of 5S Are Clinically “Proven”Posted by markrhamel in 5S & Visual Management | 1 Comment

Larry Loucka, a close friend and colleague, recently pointed me to a February 16th Wall Street Journal(WSJ) article.

Now, before you roll your eyes and give me the WSJ-isn’t known-for-getting-the-lean-thing-right look,hear me out. What the Journal published is really, really good stuff…even if lean, and 5S in particular,

was the furthest thing from their brilliant mind(s).

The title of the WSJ article is “Messes and Wrong Guesses.” Much of the content is ostensibly gleaned

from a work written by Boyoun (Grace) Chae and Rui (Juliet) Zhue, entitled, “Environmental Disorder

Leads to Self-Regulatory Failure.” It was published in the December 16, 2013, on-line Journal of Consumer Research.

I’m guessing most Gemba Tales readers aren’t very familiar with that journal.

But, I digress! Here’s the pertinent stuff.

Chae and Zhue conducted several revealing experiments with two different populations of volunteers.

One group of participants was placed in a messy and chaotic environment. The other group was placedin a more organized environment.

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Both groups were subjected to several tests. The results reflected that the folks in the messyenvironment, in comparison to those in the more organized environment:

1) were willing to spend more for a variety of products (including a high end TV, vacation package, and

pen),

2) took longer to complete a tricky, brain teaser type test

3) demonstrated less stamina when attempting to solve a difficult (actually unsolvable) puzzle.

Now, I don’t know what the sample size was, but the WSJ article stated that, “[i]n each case, volunteers

in the organized environment did better…”

The researchers, Chae and Zhue, “say the results show that disorganized surroundings threatenpeople’s sense of personal control, which in turn taxes their self-regulatory abilities.”

So, next time someone challenges you on why 5S is a good thing, look them in the eye and tell them it’s

(sort of) proven that it lowers stress and enhances the self-regulatory abilities of everyone in theworkforce. That sounds like respect for the individual AND a greater capacity for execution and daily

kaizen.

 

Related posts: What Happened to 5S’ Fourth S? Let’s Standardize! [Guest Post], Ineffective VisualControls – 9 Root Causes

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Eight Ways to Avoid the Kaizen Roach MotelPosted by markrhamel in Kaizen | 8 Comments

I see the same cycle in so many places.

What cycle?

This one, more or less:

Step 1. Altruistic leaders sincerely (?) ask the associates for their improvement ideas (a.k.a. suggestions,

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kaizens, CI’s, etc.) in an attempt to foment some daily kaizen.

Step 2. Associates (not all of them), somewhat skeptically, call leadership’s bluff and submit their ideas.

Step 3. Leadership is pleased with the response (the number of ideas, that is) and then…panics. They

determine that the quality of the ideas is uneven at best and they can’t effectively respond to andimplement even a fraction of the ideas that have been submitted.

Step 4. The associates come to the realization that their ideas are on a one-way trip to kaizen’s versionof the Roach Motel. You know, the Roach Motel, where ideas (or roaches) check in, but they don’t check

out. The most jaded associates chide the ones who were gullible enough to think that their ideasmattered. Improvement ideas slow to a trickle.

Step 5. Leadership organizes a tiger team to make a dent in the huge inventory of ideas.

…and so on.

I don’t need to tell you that it doesn’t always end well.

How can we break this cycle?

Here are eight ways.

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Build the right ecosystem. Kaizen, especially daily kaizen, doesn’t happen in a vacuum. An effective

lean management system helps drive good standardize-do-check-adjust (SDCA) and plan-do-

check-adjust (PDCA) thinking. It integrates solid visual controls, andon response, leader standard

work, and regular team reflection meetings during which the team engages in, or at least initiates,

problem-solving and then follows through. Of course, the ecosystem doesn’t work without solid lean

leadership behaviors.

Teach and coach basic problem-solving capability. Good problem-solving skills aren’t necessarily

innate. One of the most futile things is to launch a quick and easy kaizen system, suggestion

system, etc. without any formal training. That’s when you get unintelligible problem statements,

countermeasures that are wholly unrelated to the root cause, etc. Folks need practical training,

practice, and coaching all the way up and down the organization.

Keep the system simple, transparent, quick, and local. Bureaucracy is the enemy of kaizen. People

need to understand the system, easily know the status of their ideas, and get nearly immediate

feedback when they first submit their idea…like in 24 hours. Think “subsidiarity,” push

improvements and decisions around the improvements down to the lowest possible level – usually

the natural work team.

Prioritize. When kaizen idea systems really kick into gear, expect dozens per person per year. Such a

magnitude of ideas can’t be implemented at once. Teams should apply simple ways to prioritize (forexample around impact on the team’s tiered performance metrics and the effort required to

implement) and work no more than a handful at a time.

Don’t separate finding from fixing. Folks are truly engaged when they “own” the improvement,

meaning they are invested in finding the problem and then personally fixing, or help fixing, it.

Similarly, it is impossible to understand PDCA if one only does “P.”

Provide nimble resources for implementation. Effective lean organizations invest in modest, but

targeted resources to help facilitate daily kaizen. These resources include the kaizen promotion

office and “moonshine” departments.

Share and manage the change. Horizontal sharing of improvement ideas (yokoten) is an excellent

way to recognize those who did the kaizen, while also inspiring others to “borrow” and furtherimprove on the improvement. At the same time, there needs to be a low bureaucracy way to manage

change to ensure that pragmatic standardization is maintained where needed.

Dole out the 3C’s. Leaders must constantly challenge folks to improve the process (easier, better,

faster, cheaper!), provide them with the courage to try new things (“fail forward”), and to apply their

creativity.

Do these eight things and avoid the Kaizen Roach Motel!

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Related posts: Want a Kaizen Culture? Take Your Vitamin C!, Bridging to Daily Kaizen – 15 (or so)Questions, Book Review: How to Do Kaizen

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Kaizen: From System to Principle-Driven [Lean ThinkerWebinar Series]

Posted by markrhamel in Kaizen | No Comments

Last month, I teamed up with Gemba Academy’s Ron Pereira and presented a two-part webinar on the

subject of kaizen. Both sessions were recorded and are right here for

your viewing.

The description of the webinar went something like this:

Many folks share an anti-kaizen event sentiment. Dailykaizen is the only way to go, right?

The truth is most successful lean organizations jump-started their transformation through the effective

application of kaizen events…and then they transitionedto a sustainable kaizen culture by balancing daily kaizen

and events.

 Join Mark Hamel, author of the Shingo Award-winningbook, Kaizen Event Fieldbook, and Gemba Tales blogger,for some insight on how to do both well.

While I have a face for radio and a voice for silent movies, I think

there’s some value-added stuff in these webinars. Of course, the fact that the recordings, accessiblenow only to Gemba Academy subscribers of their Complete Lean Package, are free to you should lessen

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the pain.

Speaking of Gemba Academy, I cannot say enough about their lean training offerings – including thescope, content, value, and state of the art HD video delivery method! Please check them out.

I hope you enjoy the webinars.

Related post: How to Avoid Kaizen Event Malpractice [Webinar]

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The Best or Nothing

Posted by markrhamel in Kaizen | No Comments

I just contributed a guest post of the same title to Christian Paulsen’s Lean Leadership blog. Please visit

his site to read my full post and to take in some of Chris’ excellent lean content. Chris shared some of his insight with us a while back in his Gemba Tales guest post, 5 Reasons You Need to Do a DMAIC.

______________________________________

Recently, Mercedes Benz introduced a new brand

claim. You may have seen it on TV or in print. It usesa direct quote from founding father Gottlieb Daimler,

“The best or nothing.”

It sounds cool. Not that I’m ready to shell out a boat-

load of money for a sexy new car. But, it clearly getsacross that the Mercedes guys are uncompromising.

As a top executive from Mercedes Benz put it, “For us,

[it] means we want to deliver the very best in all areas – be that in research and development,production, sales, service and aftermarket business or in purchasing.”

I have a hard time arguing with that. I know what they mean. It’s a powerful and noble principle.

And yet, the words grate on my (hopefully) lean thinking mind.

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…The figure below summarizes much of my thinking on this subject, while my full post can be foundhere.

 

click to enlarge

 Other Hamel guest posts: “Do” Only Gets You Half the Way There, or…“No Pie for You!” (on Mark

Graban’s Lean Blog), Subsidiarity: A (Medieval) Lean Principle (on Ron Pereira’s LSS Academy Blog)

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Line of Sight, Employee Engagement, and Daily Kaizen

Posted by markrhamel in Kaizen | 3 Comments

Lean culture is largely defined by, or at least manifested in, engaged and empowered employeespracticing voluntary kaizen. Engagement can be measured in a number of ways, but perhaps one of the

most telling is the number of implemented suggestions per employee per year.

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A while back, I developed an outline of AutolivBrigham’s daily kaizen journey (see figure below)

based upon information within the book, How to Do

Kaizen. Autoliv’s story is extremely compelling.

Often engagement evolves as employee line of sight

evolves. Line of sight is my euphemism for the scopeof the employee’s ability AND desire to see, to

understand, and to care beyond the self. Successfulorganizations are clearly much more than a loose

confederation of individuals.

Start SomewhereLean transformations have to start somewhere. Manytimes it starts with an average employee line of sight

that extends about as far as “self.” If that’s the case,then the lean leaders need to engage right there.

What does that mean?

Well, if the employee cares little beyond the self, then train and involve them in creature comfort kaizen

for themselves (as finder and fixers of the problems). Recognize their improvements and their creativityand share it with others. The four-fold goal of kaizen is easier, better, faster, and cheaper…in that

order. Start with easier and build from there.

This develops the employee’s kaizen capability and, if done effectively, their appetite and eyes forkaizen. But don’t stop there. Expand the context for kaizen. Extend the line of sight beyond just the

self.

Expand the Line of SightMost employees work within some sort of natural work team – folks who typically work together on adaily basis towards some common purpose. (Admittedly, sometimes the team in which they are a

member is less than “natural” and formed for management convenience and economics, not the flow of value. Not optimal, but often it’s still manageable.) There are a number of things that the lean leader

can do to facilitate greater engagement, including:

1. Deploy a daily accountability process. Effective lean management systems include the use of tiered

meetings to review team performance versus targets, plan for the next 24 hours, and identify issues,

barriers and countermeasures. It drives shared understanding of process performance, foments

dialogue, and “pulls” suggestions.

2. Provide more lean and team effectiveness training and time to use it.  The more actionable

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knowledge about lean and how to better perform

as a team, the better. While a lot of daily kaizen

can happen in the margins (breaks, before shift

and after shift), collaborative efforts are most

likely to happen if some time is provided on a

periodic basis during working hours.

3. Leverage performance management. It’s a game-

changer when the criteria on how people are

evaluated and compensated includes team and

company outputs as well as desired lean

behaviors.

4. Involve employees in organized kaizen.  Kaizen

events and facilitated kaizen circle activities will

further develop the organization’s problem-solving muscle and expand awareness and ownership.

5. Leaders transition to teachers and facilitators. Perhaps the toughest transformational challenge is

flipping the organizational pyramid “upside down” so that the leaders become enablers, not

bottlenecks.

6. Apply lean tools and systems that drive employee involvement.  For example: 5S is an supremelyintuitive and engaging tool…and it can provide near instant gratification. Visual controls, among

other things, share information with virtually every stakeholder. Talk about line of sight! TPM,

specifically autonomous maintenance, by its very nature requires direct involvement and ownership.

This is just the tip of the iceberg.

What do you do to expand the line of sight and engagement within your organization? How does that

drive daily kaizen?

Related posts: Book Review: How to Do Kaizen, Lean Management Systems and Mysterious Performance

Metrics, Easier, Better, Faster, Cheaper…in that Order

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Bridging to Daily Kaizen – 15 (or so) Questions

Posted by markrhamel in Kaizen | 5 Comments

My teenage education was (maybe) enhanced by substantial doses of Monty Python. Occasionally, Idiscover a lean metaphor somewhere within their body of work. One of my absolute favorite scenes is

from the movie, Monty Python and the Holy Grail. The three minute scene goes by two names: 1) the

Bridge of Death, or 2) the Three Questions.

Now would be a good time to watch the scene if you’re not familiar with it. Of course, if you’re like me,

even though you’ve seen it before, you’ll watch it again…and laugh.

So, back the lean metaphor. Most folks are stuck on one side of the gorge (that would be the “Gorge of 

Eternal Peril”) practicing system-driven kaizen – organized kaizen, mostly directed by value streamimprovement plans. While this particular side isn’t terrible, it’s only a stepping stone to real lean. You

should be crossing the bridge to the other side, the side of principal driven kaizen – system-driven

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kaizen, plus daily (mostly voluntary) kaizen. Only then will the enterprise and the culture be truly

transformed!

Stop! Who would cross the Bridge of Death must answer me

these questions three, ere the other side he see.

In the Holy Grail movie, the only way to cross the Bridge of Death is to successfully answer the threequestions. For this kaizen bridge, you’ve got to answer at least 15 questions. Don’t worry, unlike the

Monty Python version, if you don’t answer any of the questions incorrectly (or at least not affirmatively),you will not be, “…cast in the Gorge of Eternal Peril.”

In no particular order:

1. Have all of your employees been trained in basic problem-solving methods and are they coached

how and encouraged to use them?

2. Is the environment one of problem-solving or problem-hiding?

3. Has the organization developed good PDCA rigor through the proper application of kaizen events

and has virtually everyone participated in multiple events?

4. Do you have an effective lean management system that employs: a) leader standard work, b) visual

controls, and c) cascading tiered performance metrics?5. Have you implemented a pragmatic suggestion system that emphasizes quick implementation of 

true incremental improvement (kaizen teian), typically by the person who suggests the improvement?

6. Do you broadly and virally share improvement ideas?

7. Do you apply the 5 why’s or the 5 who’s?

8. Do the lean leaders promote A3 thinking?

9. Has the organization sufficiently resourced the kaizen promotion office (a.k.a. lean function) to help

teach, coach and facilitate improvement activities?

10. Is the focus of improvement such that the order of importance is a) easier, b) better, c) faster, and d)

cheaper?

11. Are folks fearful of failure or do they, and leadership, see it as a necessary means of learning andimproving?

12. Are you internally capable (or at least getting there) or are you suffering from consultant

dependency?

13. Do folks know what “True North” is and how they can do their part to get there?

14. Is the culture one of humility and respect for the individual?

15. Is lean applied within the context of a holistic lean business system?

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I know there are a bunch more. What are your additions to the list?

Related posts: Book Review: How to Do Kaizen, Developing Leader Standard Work – Five ImportantSteps, Want a Kaizen Culture? Take Your Vitamin C!

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Want a Kaizen Culture? Take Your Vitamin C!

Posted by markrhamel in Kaizen | 5 Comments

Among other things, vitamin C boosts one’s immunesystem. That’s pretty important, especially around the cold

and flu season. But there is another type of vitamin C. Onethat is critical to the formation of an effective kaizen

culture.

The Toyota Way, as defined here  by Toyota, is founded

upon two main pillars: 1) continuous improvement , and 2)respect for people. The following “three building blocks”

shape their “commitment to continuous improvement:

1. Challenge  – we form a long term vision, meeting

challenges with courage and creativity to realize our

dreams;

2. Kaizen  – we improve our business operationscontinuously, always driving for innovation and

evolution

3. Genchi Genbutsu – we go to the source to find the facts

to make correct decisions, build consensus and achieve

goals.”

The first building block contains vitamin C in a threefold dose:

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Challenge. Constantly be ready and willing to question the status quo and look for better ways. The

challenge can be fomented by the envisioned ideal state and/or a specific target condition. It’s about

closing the gaps. Challenge should provide the “pull” dynamic for improvements.

Courage.  Be ever willing to test improvement ideas and learn from trial and error. This is

foundational to PDCA (they don’t call it “PDC”). Lean leaders must actively nurture an environment

within which people fearlessly (not recklessly) apply scientific thinking and trystorming.

Creativity. Trystorming without creativity is a sterile exercise. We must think and act differently –

“Keep on doing what you’re doing, keep on getting what you’re getting.” Unleash the inner

MacGyver!

So, take copious amounts of vitamin C and, as an effective leader, ensure that your folks do the same.

Boost that organizational immune system and foster a kaizen culture.

Related posts: Telling “How” Removes Responsibility, Kaizen Principle: Be like MacGyver, use creativity

before capital!

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Book Review: How to Do Kaizen

Posted by markrhamel in Book Review | 3 Comments

Many months ago, Norman Bodek sent me a copy of the book, How to Do

Kaizen: A New Path to Innovation (its sub, sub-title is Empowering Everyoneto Be a Problem Solver). Norman, the indisputable lean literature pioneerfrom the west, co-authored the book with Bunji Tozawa, a prolific kaizen

author in his own right. Norman is also the editor and publisher (PCS Inc.) of the book. The work was published in January of 2010.

My humble take is that How to Do Kaizen  is a very important book aboutvoluntary kaizen!

At 425 pages, the book is long. It’s probably longer than it has to be and

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Implementation keywords.  Encourage implementation ASAP – “for the time being,” “start with

part of the problem,” “if it doesn’t work, try something different,” etc.

This book exudes engagement and empowerment and reinforces how simple, fundamental stuff can

literally change a culture and leverage the creative talents of each and every person. If you want totransition from system-driven kaizen to principle-driven kaizen, this is an extremely helpful book.

Related posts: Kaizen in the Laundry Room…and My Domestic Shortcomings, Book Review: Leading the

Lean Enterprise Transformation

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Easier, Better, Faster, Cheaper…in that Order

Posted by markrhamel in Kaizen | 7 Comments

Lean is deep. It’s multi-faceted. Heck, even the “simple” stuff is profound.

OCT

22

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These characteristics, along with (or should I say, in spite of) my owndenseness, are why my lean learning never plateaus. Here’s a very recent

example of two experiences that refined my kaizen appreciation.

Experience 1. This week I attended and spoke at the Sixth Annual Northeast

Shingo Prize conference. It was a wonderful experience. (See below for apicture of the “four bloggers.”) The conference title was, “Easier, Better,

Faster, Cheaper.” Great title and great theme right? Like motherhood andapple pie. Who could ever argue with it?

Well, as many of us know, the title was derived from a Shigeo Shingo quote:

There are four purposes of improvement: easier, better, faster

and cheaper.

Cool, right? Except, there’s another sentence that immediately follows – a sentence that should alter themindset of most American allegedly “lean thinkers.”

These four goals appear in the order of priority.

Do you think that most executives would agree with that priority? I sincerely doubt it.

If we surveyed senior leaders, I would be quite confident that the order would be reversed.Unfortunately, such a hierarchy (no pun intended) does little to gain buy-in from the workforce and it is

often inconsistent with the notion of respect for people. Which leads to my next recent experience.

Experience 2. (Actually this experience happened BEFORE the conference, but it works better explaining

it in this order.) I was reading through the paper, “Transforming Kaizen at Toyota,” written by KoichiShimizu from Okoyama University. This 29 page paper is undated, but I would guess it’s circa 2000.

Shimizu presents a lot of information and analysis around volunteer and organized kaizen activities atToyota.

Some take-aways:Workers drive about 10% of the realized improvement and team leaders, production supervisors,

engineers, etc. drive 90%. Here “realized improvement” is ostensibly around cost reduction through

productivity and quality gains.

Workers principally engage in “voluntary kaizen” – kaizen circle activities and suggestions.

The purpose and effects of the voluntary kaizen, especially within Toyota’s US and European plants,

are mainly around:

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developing the (worker’s) kaizen mind and problem solving ability,

paying attention to quality and productivity,

perceiving the work-place as one’s own, and

developing self for promotion.

Occasionally, the worker generates a great idea around quality or working process improvement. But,

the primary focus for the worker is typically around the “humanization of work.“  In other words, itstarts with making the work EASIER. Just like Mr. Shingo said!

_________________________________________________________Here’s a picture of the four bloggers at the NE ShingoPrize conference. From left to right, yours truly (the

old guy in the group), Tim MacMahon of A Lean Journey, Dave Kasprzak of My Flexible Pencil, and

Mike Wroblewski of Got Boondoggle?  It was greatmeeting these very talented folks!

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Blog contents ©2009-2014 Mark R. Hamel. The views expressed herein are solely personal views and not those of associates, clients or employers.

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