Cause and Effect
5 Whys
Gemba
Value of Respect
Hoshin Kanri
- Focus on a shared goal.
- Communicate that goal to all leaders.
- Involve all leaders in planning to achieve the goal.
- Hold participants accountable for achieving their part of the plan.
- Establish Vision and Mission Statements.
- A Vision is what value the company brings to its major stakeholders (owners, CEO’s, shareholders).
- Mission statement is what value the company brings to its customers.
- Establish current vs ideal states reviewing:
- Management
- Finance
- Information Technology
- Marketing and Sales
- Labor Force
- Space
- Equipment
- Client Base
- Capacity and scheduling
- Written policies and processes
- Establish breakthrough objectives.
- What are the milestones?
- What are the goals that will break through glass?
- Develop Long Term (60 months), Mid-Term (36 months), and annual (12 to 18 month) objectives.
- Use SMART design, SWOT analysis, Catch ball communication, WBS, Scan PDCA, CAPEX and AFE.
- Visual management, display objectives
- Signage everywhere
- Bathroom
- Breakroom
- Implement Objectives
- SOPs, train, audit
- Kaikaku and kaizens
- Review
- Daily standup meetings
- Weekly
- Monthly
- Annually
- Have we reached our goals? If not, why?
- What went wrong?
- What did we do right?
- How can we use strong Lean Enterprise methods to springboard us to a new level?
- Company Name
- Company address
- Phone number
- Email address
- Website
- Business Card
- Flyer
- Samples
- Testimonials
- Agreement
- Transportation: Are you planning your route to ensure the least amount of physical movement from point A to B?
- Inventory: (updated April 10, 2021) This concept is more holistic than you think. Nomally when you think of inventory, you're reminded of raw materials or products in a warehouse. That part is true; however, I expanded it to cover additional categories; namely: labor / equipment-tools-space / material (as previously noted / processes / environment. From a basic viewpoint, inventory suggests two things: Count and items. Number of material in a warehouse is a normal assumption. But open your mind and think about it, if you are to do a job, what are the basic components you would need to accomplish it? With labor, you would need not only the right amount of bodies, but skilled and competent enough to do the job. It serves no purpose of having the right amount of bodies with no skills or experience. Also, having expensive over skilled bodies costs the company money. As managers, it's important that you use your staff to the most efficient and productive manner possible, and to assure with confidence that the employees are fully competent to perform their jobs. With equipment - tools - space, it stands to reason that without the right equipment, tools or space, you would either have a difficult time doing a task or not at all, which is not good. Of course, you would need to determine the best method or way to accomplish your task. This is handled through standardized work tools like SOPs, Work Instructions, Job Aids, Job Tickets, and Batch Records. In addition, the subcategory of safety adds daily Job Hazard Analysis ("JHA"), Control of Work, Hot Work, Critical Lift Permit documents and so forth to the list of important documents. On this note, not only do you want the appropriate work instructions available, but the safety instructions as well to mitigate risks, hazards and perils that can cause illness, injury and property damange. And finally "ENVIRONMENT". This consists of any internal and external forces that indirectly and directly affects a job. It is a contributing factor, a "cause" to an "effect". Example, you are attempting a task outdoord that rigs up equipment, staffs about ten employees, uses temperature controlled materials and needs to be processed within a short period of time, but a snow storm, or hurricane ploughs through the area. Here's another one. The COVID-19 pandemic. Conducting business during this time had taken drastic twists and turns on so many levels that it required a great deal of creativity and meneuvering to face these challenges and maintain a certain degree of success. I realize that this is a long winded explanation, but it's important to understand how all of the components of inventory fits in on reducing waste and defects.
- Motion: Are you spending too much time moving from place to place, calling potential customers and not getting to the point? Or another example is flipping hamburgers on a grill. Why flip it every ten seconds when all you need to do is flip it after ten minutes, wait another ten minutes and call it good.
- Waiting: Are you waiting for something to happen? Or are you getting out there and creating opportunities? Here's where it happens the most. A job consistes of then phases or stations. What happens most of the time is when one job shifts to the other, a gap of time occurs. This waiting time affects the lead time and costs the company money.
- Overproduction: Are you spending time making too many flyers and cards? Are you promising too much to the customer when you meet with them?
- Over processing: Are you spending too much time planning, practicing, editing and researching when you can be more useful hitting the streets (boots on the ground). It’s a mind and body thing. Use only what you need to accomplish the task. In Japan, judo is described as the gentle art. The following video shows an 80 l-year-old master, less than 100 pounds sparring with a much younger, stronger 8th degree blackblelt who pulls every trick in the book to throw his instructor. Notice how the master counters with the least amount of effort. https://youtu.be/2YS-WF6nlA0
- Defects: Are you visiting the customer, ill prepared and not provide a convincing story because you did not do your homework? Defects include mistakes which we all make. The goal is not to eliminate but recognize them when they occur, fix immediately and control the behavior or events that lead to them. We've addressed ways to reduce or eliminate defects, waste and constraints and, they are, certainly, doable. However, mistakes, on ther other hand, is inherent. The great Taiichi Ohno said once that an average person makes mistakes 50% of the time (geniuses 30% . He said it, so I believe him). With that said "to err is human, to forgive is devine." To wit, as hard as we try to be perfect and we, certainly, can do our best to seek perfection, but it would just be as effective, if not more, to "control mistakes" by implementing the "best practice" tools in this quality managment system and achieve a high level of operational excellence.
In LSS, there’s this tool called Ishikawa Fishbone Analysis that I use in determining cause and effect.
In business, there are four major categories: Labor, Equipment, Material and Process, which represent the ribs and skeletal structure of a business and require strategic planning and tactical maneuvering on a daily basis, as this is standard, regardless of the lack of formal written policies and procedures.
The tail that propels and directs movement represents the environment and what we would consider as external factors that affect outcome.
The head represents the product or service: positive, neutral or negative.
Although business owners may not see their company from a fishbone image or metaphor, the concept is contemplated. I think it’s clever, a picture of a fish bone. It immediately triggers this image when I evaluate a company’s performance. I observe who makes up management and staff; the building, equipment, technology; material quality and movement; and finally, processes.
As I make this observation, I’m aware of the circumstances surrounding the workplace and what external factors affect outcome. It’s a great tool which I teach and mentor, hoping that the concept helps. On another, and important note, business owners or rank-and-file staff can use this tool as a means to reverse engineer the steps to determine the root cause of a problem.
I’ve used this tool, successfully, multiple times with positive results.
Mistakes: We’ve made mistakes in the past, and with 100 percent certainty, we’re going to make more. Hard to believe. For some of us (like me), we make more mistakes than others will. Not consciously, mind you. It does happen and regardless of what you think, it’s something that happens; and when it does, you’ve got to make it right.
One note: Cause come in two forms: Common and Special Causes
We encounter "common" and "special" causes, each day, everyday. We essentially cause an effect good, bad or indifferent, changing or transforming something. Defect and/or cycle time specific, the goal is to be defects and waste free without sacrificing quality and safety. A goal is to be flawless each time every time, in effect creating perfect product and service.
Realistically, the laws of physics are against us. Thank God for something called tolerances.
I like to use the golf swing as my example to illustrate what I mean. First, I’m lousy at golf.
A good day is when I break 120 (I know, sad). With that said, it proves that I am far from perfect, but that should not prevent me from trying my best to execute a perfect swing.
Several times in my life I was able to drive past 320 yards and straight as an arrow, or making a 40 foot put knowing what I did right (or wrong) to create these “effects”. Whatever “cause” I created to end up with the desired “effect” was instantly lost in memory eye and hand coordination. No matter how hard I tried, I could not duplicate this near perfect event (perfect would’ve meant a hole in one, of course, on television, in front of Tiger Woods).
Resuming the discussion on cause and affect attempts to execute perfectly each and every time is not possible but products and services that fall within tolerance will satisfy customer needs, a least that’s the plan and has worked and been working. Any results outside tolerance will reject parts considered unacceptable.
So what are these conditions that cause fluctuations in our attempts for perfection? In a golf swing, it could represent a whole host of things, inherent and unassuming. In our golf swing example, these are the hand placement, speed and timing, head face-ball contact, small and many nuances that reflect the outcome of the swing. We call these events “common cause variations” as they’re there, identified as problems but not typically significant enough to destructively affect the outcome. Special cause variation, however, are those that stand out like “sore thumbs” usually intermittent, and require immediate attention as these types normally adversely affect outcomes. Back to the golf swing these are the sonic booms or earthquakes or broken club type of causes.
As we work on Lean Six Sigma projects, we will face defects and cycle time decisions that will have us examine cause and effects and determine which cause variations to address. Some of them are evident such as replacing a burnt light bulb in a dark room; others may require identification quantifiable metrics and complex statistical analysis to come up with effective and appropriate solutions either way it’ll require the selection of the right tool for the right job from two large boxes called Lean and Six Sigma.
Again, by implementing standardized work and total quality management, common cause variable can be reduced.
Root Case Analysis or (RCA) is a method of backtracking to determine why you made the mistake and what you can do to prevent it from happening again.
There’s another technique called 5 Why’s. If you ask the “why” question five times, you’ll come close to finding the root cause.
For example. You get a call from a customer cancelling an order.
First why? Why did the customer cancel the order?
Answer: Because he said he was unhappy with the service we provided.
Second why? Why was he unhappy with the service?
Answer: Because I provided the wrong solution to his problem.
Third why: Why was it the wrong solution?
Answer: Because I told him my solution was better than what he wanted.
Fourth why: Why didn’t I listen to his request?
Answer: Because I wanted the sale.
Fifth why: Why did he come to you originally?
Answer: Because he wanted to find a solution to his problem that no one else could provide.
The root cause was a customer demand that was not fulfilled. Back to the first principle of Lean: Who is your customer and what does the customer value, value being defined as any product or service that the customer wants and needs delivered on time, hassle and defects free. In this case, the key word was “want.” The customer wanted a solution. The seller, hard up for a sale, attempted to force a solution. Think about it. It’s like telling a customer who wears a size 11 shoe that because you have sizes 3 through 5 in the back and not a size 11, you try to sell him the size 5. No matter how you look at this, it’s not right. Be sure that you understand this or you will find yourself in a world of grief.
As managers and staff, we require information each day to conduct standard tasks and major projects. Stuck behind a desk, reviewing and analyzing specifications, drawings, data, white papers, abstracts, and so forth, we rely upon facts and data acquired through metrics assumed validated and verified, data or fact gathering following a routine and standard practice. The question I ask: Is it controlled? Does it follow standard operating procedures?
Is the person, gathering data, trained to complete the task? Many questions appear that may change the results of the information.
One solution is to take the example from the Japanese and their oft practice term “Gemba” and “Genchi Gembetsu”. Both terms are related and has similar meanings as “the real place,” “crime scene,” “factory floor,” and “construction site.” The term was extracted to create a process called Gemba walk where the management, staff and customer physically walk to the area of concern and (Genchi Gembetsu) or “go and see.” I have read and told by colleague, the term or spirit of the term, has to do with the “truth.” The purpose is to physically go to the location of concern and with your own eyes see the truth.
In the workplace, we must be diligent about our perception. The goal is to be scientific, factual, and collect meaningful data, not corrupted by opinion, beliefs, and points of view. There are opportunities of interpretation where, what was seen by one is different from what another saw. The report developer measures and analyzes the data to determine its integrity and formulate an opinion. Compelling is what the eyes see requiring the assessment.
This is a powerful Lean tool that if used properly results to positive outcomes. For example, years ago, I worked as a CNC machinist. I was in the set up stage of machining one side of a waterwell pump bowl. The blank was cast iron and pre-formed from a mold. Cast iron blanks were notorious in not falling within tolerance levels, usually having too much material then less. The challenge was making enough passes without taking too much time and not wearing out tools and inserts. The head machinist programmed the run based upon previous runs. When I went through the trial passes, I noticed that the turret and spindle were not operating as per program. I checked the screen and reviewed and it appeared correct. I could not find the problem. I went to the head machinist and described the problem. He checked his desktop and verified that it was the right program. We walked back to the computer run lathe and checked the terminal. What he saw was that the program assigned to the lathe was incorrect. The program that we both had in our systems was for a similar part. Had we not walked to the machine and collectively determined the problem, I would’ve scrapped multiple and expensive blanks and the tools and inserts to run them.
On the other hand, if used improperly, for example, relying upon a mis-perception to make a decision can cause more harm. Back to the same example, the head machinist could’ve diagnosed the right problem, but based upon the information he gathered, he made the wrong fix and created more issues. It’s best to double check the assessment and make sure the right choices made to run the right procedure.
It does open doors but creating a process, that everyone understands and makes part of their culture. By making it a daily event, the process is fine-tuned and the results reliable.
One final note is that the truth is not masked by lies and obfuscation. The goal is to see the facts and data for what they are. It may not be what is expected, but the truth results to conclusions and the right decisions.
Lean often aims at creating processes that drives the correct behavior.
Should behavior be something managed, microscopically, or should something else be examine?
You don't have to be mean to be Lean.
Lean Sigma is a science based management system that streamlines efficiency and increases production by reducing cycle time and eliminating defects. People, equipment and technology, material, processes and environment are coordinated to produce quality products or service. Operational excellence is the goal and Best Practice is the mode of achieving it.
As Lean Sigma practitioners, we focus on data, statistical analysis and specific processes to ensure desired effects. By doing so, we classify people as objects, conditioned, controlled and micromanaged by written work instructions, SOPs, and policies.
For the sake of meeting demands on a KPI index, we lose site of how we as humans treat other humans.
As a trained martial artist, I was taught conduct and manners. Not only was I asked to practice diligent karate, I was instructed based upon a ridged set of rules and etiquette traditionally taught in Japan.
In my observation, I've come to the conclusion that our culture is weak on common courtesy. Managers and rank-and-file feel they are entitled to speak and act when and as they see fit sometimes at the most inopportune time. As confrontations, cross boundaries, points may be proven, but are done so at the risk of weakening working relationships. I understand that people do not have to like each other, but if attitudes are not checked, work quality is affected.
I learned from martial arts is to be loyal to duty. For example, I once worked in a situation where the consequences could have ended catastrophically. A co-worker and I shared strong political debates. At times, we engaged in heated discussions, faces inches apart from each other, voices raised; we could have been mortal enemies. However, as co-workers, we were, like Samurais, duty bound to get the work done. Each week our department would receive a truckload of orders. It was difficult and demanding, requiring us to move heavy pallets off a truck and quickly transfer them to designated areas in the warehouse. It was not one of those “happy” jobs. There were others, but I would be the first he would asked.
He did so because, without fail, I would drop what I was doing and be part of his crew. We could not have made up a perfect team. Imagine what would have happened had I allowed my feelings and beliefs to get in the way. Our working relationship could have worsen to the point of an altercation.
Years ago, I earned a living picking grapes in the San Joaquin Valley. I was in my teens and worked with elderly Filipino and Mexican farm laborers who did this work, as hard as it was, appreciative and thankful. The job paid low wages, and required long hours under inclement weather conditions. I remembered driving by a lettuce field, in Santa Maria. The rain was pouring hard. I barely could see through the windows. To my astonishment, I saw farm labor crews, dressed in yellow rain gear, harvesting the produce.
I respected farm laborers, their roles and what they represented. Years ago, I was one of them. The prospect of waking up each day to hard labor was not ideal, but it provided an income that paid bills and raise families. Others would look at them as below class. I revered at them as honorable and hard working.
When I participate in a Gemba Walk, I do so with an open mind and reference for those who place themselves on the line.
Creating processes that control the behavior provide no benefit if the fundamental heart and soul of the labor force are not included. "Respect” is the key that directs the philosophy on how management are to treat their employees. When Lean Officers create processes, they are to remember that employees are the most essential part of a company.
People are not “cogs in a wheel.”
The ability to understand and practice “respect” is a precept that makes Lean Management powerful.
Trust. Honest. Respect. Remember this and you will benefit.
The discipline of Hoshin Kanri is intended to help an organization, and, unfortunately, it can get complicated. A3 X matrix has been touted the go to form, but old timers like me, find them hard to read because it’s busy, has too much information that you’ve got to tilt your head sideways way too many times to figure out what it all means.
A3s, by the way, are 11x17 sheets that provide a snap shot of what’s going on in a particular activity and used to share amongst the company or selected group to provide a general direction of communication. It’s a popular method of communication, but tend to be easy for some, difficult for others. It should be used cautiously.
Hoshin methodologies can be addressed in further detail, but to get back to basics, I’d like to provide you with some of the key points in developing a good Hoshin planning.
It assumes daily controls and performance measures are in place because careful thought was made previously to design its goal and purpose: "With hoshin kanri... the daily crush of events and quarterly bottom-line pressures do not take precedence over strategic plans; rather, these short-term activities are determined and managed by the plans themselves."
In Japanese, hoshin means "compass needle" or "direction". Kanri means "management" or "control". The name suggests how hoshin planning outlines the steps of putting dreams into a reality.
So what does it mean for a small business?
This abbreviated section shows you a small part of what large companies do to plan out their future. Planning is a key component to achieving success. To wing it, doesn’t cut it in the competitive world. I intentionally added this part to help you think about what you and your partner(s) can do to make your company more than a dream. You’ve got to purposely map out your future in writing. If you’ve learned anything from this small chapter, it’s the act of “hansei” or self-reflection: to give yourself quiet time by the beach, mountains or even at a coffee shop. Bring a pad and pencil and start writing what your goals are; what personnel, equipment, materials and processes you’re going to need to hit these milestones; what potential problems (FMEA – Failure Modes and Effects Analysis) may occur; and what monies you will need to get you there. Start out by asking questions.
By simple brainstorming outside the confines of your business, it can result in making key decisions. Give yourself room to breathe and think this out.
Writing it down in your own chicken scratch is best because it makes the process deep-within-your-heart personal, like drafting a contract with yourself.
There is no argument that if a business is to survive, it needs a steady flow of income.
Companies small and large require a marketing and sales force whether by one of the owners or a massive subdivision within a multi-billion dollar company. Broken down to its core, the process requires a series of tasks that encourages a customer to buy. This process has to be successful and repeated time after time with clarity and purpose; otherwise, you end up with no sales, no revenue, no money, no company, no wife, no home, no car, and then nothing. Marketing and sales are not new to the business world. Many methods and techniques have been used to optimize results, some more successful than others. Relatively a new concept in this discipline, Lean Six Sigma in the past has saved millions and created a culture of excellence in administrative and operational functions of a company. Several visits on the Internet have my colleagues talking about the virtues of LSS. So far, no one provided clear examples on how this created measurable results. I’ve yet to read a hypothesis proven good or bad using LSS.
So in one of the meetings I had with a group of young entrepreneurs, I was asked the question: How do you use Lean Enterprise techniques to bring in new business?
This was a question that I knew would be asked. I had answers, not a Lean answer. My answer is a combination of old and new school thinking. First of all, in my line of work, consulting, like many owner operators, require face-to-face encounters. I’m not experienced nor savvy with technology to perform this function for this line of work. It requires “boots on the ground” meetings with potential customers. The standard methods of using print and television media and direct mail are appropriate, but costly.
Marketing and sales are tasks like what you do when you go camping out in the mountains.
The goal is to set up a campfire. The marketer’s job is to dig a large hole in the ground, line it with rocks, pile up dry wood, center a small patch for kindling, and line thin sticks around the fire for marshmallows and hot dogs. Ready to fire up, he hands the match to the sales representative to light up the campfire.
As you may wish to spend most of your time lighting up camp fires and making ton loads of money, it requires a great deal of preparation. Marketing is a science and art that requires skill and timing; it takes a strong plan and the willingness to adapt to resources and change.
You’re going to need to learn the basics:
You’ve got to have something to give a prospect. It’s basic. Hard to leave an impression without physical evidence.
So what next?
Since small businesses don’t have deep pockets, the inexpensive way, I know of, is to get in front of a client by knocking on doors.. Forget about telemarketing. It worked in the past, doesn’t work now. My preferred routine is to stop by a prospect and ask if I can get a business card from him or her. Nine times out of ten, the business cards are displayed right in front of you. Sometimes, you don’t need to introduce yourself. The less conspicuous the better. Your goal is to collect business cards. Why? Because business cards have email addresses! So the Lean process here is to collect business cards: Collect a zillion the better. If you can use the internet to get addresses, then do it. It might cost, but it saves time. The goal is to develop a database where you can send email blasts.
Now that you’ve got a nice collection of emails, you’re next step is to put together an effective email marketing campaign. Don’t make the mistake of sending long winded, five page stories. If you’re like me, I spend on the average five to ten seconds on one. If interested, I’ll dig into the email. Otherwise, I’m off to the next email. (Advice: Make sure your subject line is short, simple and compelling. It’s the hook!!!) Your goal is not to sell the idea but to get the reader to get a snapshot of what you represent. The shorter the message, the better. The reason why I say this is because it’s how the mind works. We take snapshots of information every day. The time we read is if we have or want to. Believe me, we do not have the time to read lengthy emails. If a person is interested, be sure to have available a link to your website.
This helps open a door of opportunity; it might even lead to an immediate sale or a call. Remember, this is not the rule. It’s an exception. Do not expect people to call just because you emailed them. It’s a tool to get the prospect familiar with your company name and what you represent.
So who do you target? Let’s review principle number one: Who is your customer and what does your customer value, value defined as any products or service that your customer wants and needs delivered on time hassle and defects free. Sound familiar? Now I’m not asking you to spend zillions of dollars to determine the perfect demographics to round up this “WHO” list. As a small business, I suggest going with gut instincts. If you’re a machine shop, you might want to target companies that normally go to shops like yours for service. If you’re a website developer, you might want to hit the young crowd of entrepreneurs; if you’re a solar panel contractor, you may want to target anyone who owns a home without panels.
I recommend sending email blasts for about a month, a new email once a week. Don’t send one every day. Customers will delete you faster than a bad habit.
After a month of sending, I recommend stopping by the customer’s location to introduce yourself as the person behind the emails and ask if you can drop off a flyer, card and if you have it a sample. You may want to call first. There are instances when this can back fire especially if you’re not good at making phone calls. One small advice. It’s like a job interview, dress and act appropriately. Do not visit a machine shop in a three piece suit, nor do you visit a doctor’s office in a pair of shorts or tank top. Use common sense. Dress and be the part, confident and sure: Enter in representing a position of power. Come in like a scared Chihuahua and you’ll lose everything that you’ve built up to now.
In your sales presentation, I recommend being a good listener. Those that talk tend to bore.
Come in as a person who has a solution. Don’t introduce it unless you know what the problem is. The customer has that information and it’s your job to listen and be interested.
When the problem is addressed, throw a sales pitch that covers each and every point the customer discussed. Talk enough to cover those points.
And please, if you see any signs of buying, don’t keep yapping. Stop and close the deal. Trust me, by talking too much, you stand a chance of talking yourself out of a sale.
Okay, so this is one small example of how I’d do it. Is it Lean?
Let’s tie some of the processes to the principles.
Who is your customer and what does your customer value, value defined as any product or service your customer wants and needs that’s delivered on time hassle and defects free.
In pre-screening your potential customer, you find that she wants new furniture, has a budget, and needs to have it by a certain date. You are a furniture sales representative and has in inventory that day to be delivered what she wants and needs. It’s 20% over her budget. As a salesperson, you negotiate a deal to drop 10%. She sees the value in what she chose and the immediate delivery that she decides to cut the deal, even for a 10% hike over budget.
Lean is a good tool. Use it wisely and it’ll pay dividends.
