Wednesday, December 28, 2011

LEI Webinars - Available Online

The Lean Enterprise Institute (LEI) has posted on their website several of their past webinars on Lean / Toyota Production System.   


This library is a good resource to learn about the basic tenets of Lean, ranging from Value Stream Mapping (VSM) to Standarized Work.

Tuesday, December 27, 2011

The Dumbest Idea In The World: Maximizing Shareholder Value

Steve Denning writes an insightful article about the conflict that CEOs of publicly traded companies usually face:   focus on customers vs focus on shareholders.   Focusing on customers is probably the adequate choice for ensuring the company stays in business in the long run, but focusing on shareholders increases the odds that the CEO maintains his job, as the usual performance measurement is based on stock price.


A usual  conflict between the long run vs short run, and one which probably doesn't have a satisfactory solution, as long as your stock trades on Wall Street.

Monday, December 26, 2011

Incredible Things That Happen Every 60 Seconds On The Internet

Business Insider has posted a great collection of images summarizing significant events that happen each 60 seconds.

Friday, December 23, 2011

Defining Value

Russ Aikman wrote a couple of great blog posts about defining value (in terms of what the customer is willing to pay for) and the distinction between value added and non value added activities, that is proposed in the TPS / Lean methodology.

His definition is very clear to guide efforts on eliminating "waste" or non value added activities.

Part 1
http://bit.ly/tN9yBP

Part 2

Thursday, December 22, 2011

Kaizen and Fabrics

John Miller explains a great analogy of the TPS / Lean mindset, using a "towel" analogy.

Could be a good alternative for the famous "chain analogy" used in TOC circles.

http://bit.ly/vAhsNv

Wednesday, December 21, 2011

The Death of the Spec

MG Siegler, of TechCrunch writes an excellent article about specifications, and how they have become irrelevant in the IT world.   In place of the spec, consumers now focus on simpler and more tangible things, such as "how fast the computer is", "how fast can I access the web", "what other services can I access with it".  

Although the article is based on the IT world, there are many lesson to learn.  In summary, the marketing approach for certain products and services, in this new "flat" world, has changed forever.

Tuesday, December 20, 2011

Beyond Budgeting

For those of us who are looking for alternative to traditional budgeting, Henrik Matterson gives some suggestions.


As you know, even if traditional budgeting seems to give a "sense of control" to management, it also has some negative implications.   

Monday, December 19, 2011

A Dose of Common Sense Goes a Long Way

Bill Waddell shares a great story about a problem a toothpaste company was facing, related to shipping empty boxes (without tooth paste in it).   It shows how by just using the minds of people in the work floor, you can find cost effective solutions that yield high returns, instead of paying consulting companies millions of dollars to solve your problems.   In some Lean circles, this is sometimes referred to as the "Eighth Waste", or "not using your people's talents".   


This story reminds me of the easy and practical solutions that Shigeo Shingo came up with, when working with Toyota as a consultant.

Sunday, December 18, 2011

Do you know what is holding your company back?

An article in the Economic Times talks about different Theory of Constraints (TOC) implementation in India, in different companies and industries.

http://bit.ly/vhwLqa

Friday, December 16, 2011

Five New Management Metrics You Need To Know

Bruce Urbin writes about five "invisible" things that you should check for, when being in management roles.   As Lloyd Nelson said:  "the most important figures that one needs for management are unknown or unknowable"

http://onforb.es/rrKt1Y

Thursday, December 15, 2011

Pasta with Real Value

Henrik shares a great story about understanding value, and how concrete examples can help selling, specially when selling intangibles such as consulting services.


Who would've known that crooked pasta is actually better for you!

Wednesday, December 14, 2011

Gemba Glossary - Value Stream Mapping

As part of his effort to spread Lean, Ron Pereira is offering the "Gemba Glossary", consisting of short videos where Lean concepts are defined and explained.  He does a very good job of explaining Lean concepts in a simple way.

As an example, here is the post for Value Stream Mapping and associated video.

Tuesday, December 13, 2011

Theory and Experience

As Dr. Deming said "experience without theory isn't learning", this article illustrates the importance of having a sound theory behind your actions, so you can correct your course and continuously improve.   

http://bit.ly/t5iC5w

Monday, December 12, 2011

Sarah Kay - Poet

Sarah Key delivers a TED speech, including two of her spoken word poems.   Her style is definitely unique.

Saturday, December 10, 2011

Cynefin and Continuous Improvement

As you may know, Cynefin is a "sense making" approach to understanding complexity in systems and managing them, created by Dave Snowden and some of his colleagues.  Cynefin categorizes systems and the environments they operate in into five kinds:   simple, complicated, complex, chaotic, disorderly.

Bill Dettmer published a paper recently talking about Cynefin and Continuous Improvement, which you download here:  (through Jack Vinson's blog)

The big insight of Cynefin for systems thinkers and continuous improvement specialists, is that a certain approach or action taken in one kind of system, may not work fo another kind of system.  In other words:  the tools under your tool set may only work on certain kinds of systems.   Additionally, a system and its environment are continuously under change, so a simple system may become a complex system, a complicated system may become chaotic, and so forth.

In Theory of Constraints (TOC) circles, Cynefin has been considered by many as a major insight into how to improve systems using the TOC solutions, where the Logical Thinking Tools can work, and when, definitely, they won't work and a different approach is needed.   The concepts were introduced in a recent TOC ICO conference, by Steve Holt of Boeing.

I personally had the privilege to ask Dr. Eli Goldratt directly about the relationship between Cynefin and TOC, and he responded that it was an interesting proposition, but he didn't expand further on the value of it.   

What is true is that the Cynefin framework will continue under development, and gives important insights on how to manage and improve systems.

Friday, December 9, 2011

The Shoes Story

You will perhaps have heard this very old story illustrating the difference between positive thinking and negative thinking:

Many years ago two salesmen were sent by a British shoe manufacturer to Africa to investigate and report back on market potential.

The first salesman reported back, "There is no potential here - nobody wears shoes."

The second salesman reported back, "There is massive potential here - nobody wears shoes."

Thursday, December 8, 2011

The Zappos Experience - ChangeThis Manifesto

Dr. Joseph Michelli writes about the basic principles behind the great customer service that is common place at Zappo's, and how to move your company in that direction.

http://bit.ly/uhnpfv

Customer Service and Root Cause at Amazon

Jeff Bezos talks about the importance of having perfect customer service, and his definition of  "defects" in this environment.   His ideas resonate to what many continuous improvement methodologies propose.



Curbside Haiku - NYC

A very nice example of using "haiku" to promote public and road safety.   This was recently implemented in New York.

http://bit.ly/vw4AJY

Wednesday, December 7, 2011

Kanban and TOC - Yuval Yeret

Yuval Yeret comments about the "synergies" between Kanban, Agile and CCPM.   Interesting read.


http://bit.ly/tzXyxY

SAP Implementation at Daiwa - CCPM focus

Bob Lewis from InfoWorld talks about a SAP implementation at Daiwa, using the CCPM methodology, and the 6 main lessons learned.   

http://bit.ly/rYLmJP

Also, from the same author, the "13 tips for turbocharging projects", which also includes many of the CCPM and good project management principles.


Enjoy.

Tuesday, December 6, 2011

Principles First, Tools Last - Mike Micklewright

Mike Micklewright, the "Deming Impersonator", has a nice story about the crucial difference between principles and tools, and how it is absolutely necessary to define a goal and necessary conditions before starting a journey into continuous improvement.


Evolving Excellence - Economies of Scale

I found these two articles that were written by Bill Waddell some years ago, about the "phallacy" of economies of scale, and how Toyota defied the basic assumption of "more production means lower costs" by creat.  Still incredibly relevant and on to point.

Part 1

Part 2

The Conflicted Toyota

Toyota, the continuous improvement world leader, is still struggling from it's quality problems found in the last couple of years.   I hope it comes out victorious and keeps setting the example of what leader in improvement means.

Monday, December 5, 2011

Great by Choice - Jim Collins

Jim Collins new book, focuses on trying to answer the question:  why do some companies thrive in chaos and uncertainty.

Matt May does a summary of the books main points.   Many of them seem closely related to continuous improvement methodologies such as Theory of Constraints (TOC).

http://bit.ly/twllRJ

RSA - Paradigms in Education

Following up on the link sent of the "divided mind", I found the excellent TED Talk by Sir Ken Robinson on "Paradigms in Education", also in an animated format by RSA.


Not especifically TOC related, but very interesting indeed.

Friday, December 2, 2011

The Heart Surgeon and The Mechanic

A heart surgeon took his car to his local garage for a regular service, where he usually exchanged a little friendly banter with the owner, a skilled but not especially wealthy mechanic.

"So tell me," says the mechanic, "I've been wondering about what we both do for a living, and how much more you get paid than me.."

"Yes?.." says the surgeon.

"Well look at this," says the mechanic, as he worked on a big complicated engine, "I check how it's running, open it up, fix the valves, and put it all back together so it works good as new.. We basically do the same job don't we? And yet you are paid ten times what I am - how do you explain that?"

The surgeon thought for a moment, and smiling gently, replied,"Try it with the engine running.."


Wednesday, November 30, 2011

Zero Email Policy

I think this is a great direction of a solution for "information overload" in a company setting, but I am not sure if it will not have a lot of "unintended consequences", just as the Blackberrys and iPhones have caused, of creating a 'constant need' for communicating.



The Zen Master of Substraction

Another article about Steve Jobs, and his ability to focus.   Great example at the end of the article showing how he chose to prioritize.






--
__________________________________
Santiago Velásquez Martínez

"Life is a constant word problem" - Michael Owen

Tuesday, November 29, 2011

The Steve Jobs Code

Matt May blogs about the Steve Jobs Code, or the main lessons from Steve Jobs, extracted from the official Steve Jobs biography written by Walter Isaacson.




Sunday, November 20, 2011

Life of an Idea

Matt May of "In Pursuit of Elegance" shares some links of Toyota's "Ideas for Good" project, and also, a very nice video about the birth of an idea.


Enjoy.

The George Constanza Approach

HBR talks about a Seinfeld Episode where George Constanza, the famous insecure character, decides to do the opposite of what he's always done and things start to work out really well for him.


Seth Godin's great blog post of some years ago, "The Chief No Officer", is very similar to the approach described in the HBR article.   Here is an excerpt of Seth's writing at the time:

"Appoint a CNO—chief no officer. No longer can someone say no to an idea and leave it at that. If you want to turn something down, you've got to pass it on to your boss. Then either he says yes or gives it to his boss. For a "no" to be official, it's got to be approved by the chief no officer and countersigned by every manager along the way."

I guess it sometimes pays to be a contrarian, not only in the stock markets.

Friday, November 18, 2011

Beyond Budgeting

Henrik Matterson, TOC consultant in Europe, blogs about using alternatives to annual budget in corporations, just as Dr. Deming suggested, in his 14 Points of Management.

He also provides some book links with suggested solutions.

http://bit.ly/vFWLns


Stories - The Mobile Phone Story

Several men were in a golf club locker room.

A mobile phone rings.

"Yes I can talk," says the man answering the call, "You're shopping are you? That's nice."

The listening men smile to each other.

"You want to order those new carpets? Okay.. And they'll include the curtains for an extra five thousand?.. Sure, why not?"

More smiles among the listeners.

"You want to book that week on Necker Island?.. They're holding the price at twenty-two thousand?.. Sounds a bargain.. You want a fortnight?.. If that's what you want honey, okay by me."

Smiles turn to expressions of mild envy.

"And you want to give the builder the go-ahead for the new conservatory? Seventy-five thousand if we say yes today? Sounds fair.. sure, that's fine."

The listeners exchange glances of amazement.

"Okay sugar, see you later.. Yes, love you too," says the man, ending the call.

He looks at the other men and says, "Whose phone is this anyhow?.."


Taken from the web.

Thursday, November 17, 2011

Haircut "Unrefusable Offer"

An example of 'getting creative' in your product offerings when there are significant market changes.   Similar to what Goldratt referred to as an "unrefusable" or "mafia" offer.

In this case, the offer is probably a very different way into thinking about the "haircut" business.



Wednesday, November 16, 2011

The Third Alternative - Steven Covey

I don't know if Covey ever read about Goldratt's Logical Thinking Process.  But his new book resonates a lot with Goldratt's ideas of "questioning assumptions" and finding superior solutions to conflicts at any scale.

Even though Covey's books are usually a bit long, this should be probably a good read.



Quotes that represent deep mental models

I found this compilation of quotes somewhere on the net (can't remember where).

Nice summary of the "essential teachings" of great personalities.



Tuesday, November 15, 2011

Evolution of Lean

A very interesting timeline of the different continuous improvement inventions that help develop LEAN.   For that sake, many of the events contributed to the development of several other methodologies such as Six Sigma and Theory of Constraints (TOC)

http://www.shmula.com/http://www.shmula.com/wp-content/uploads/Image/2010/10/evolution-of-lean-history-timeline-toyota1.png


Malcolm Gladwell piece about Steve Jobs

Gladwell writes a very interesting piece about Steve Jobs and the details of his character.   Very interesting read.

  

Examples of Distortions of IT Allocation Costs

An article showing many of the distortions that occur when allocating costs, looked through the lens of an IT department.  

Monday, October 17, 2011

Monday, October 3, 2011

The New "Mozart Offer"

Whoever thought an "unrefusable offer" could be built, for classical music interpreters?

http://www.mozartgroup.org/video.htm

If you've heard of the "purple cow" concept of Seth Godin, this is a perfect fit.

Friday, September 30, 2011

Some History on TOC Consultants

I stumbled upon this recently.    Don't know yet who the writers are, or the veracity of the information, but was an interesting read.


Another Multi Tasking Video

If you have seen the "I Love Lucy" multi tasking video, this is very illustrative as well.

Notice how the quality deteriorates as he is increasing his multi tasking.


Boxes and Thinking Out of the Box

Check your organizational design before asking people to think out of the box.



Saturday, September 24, 2011

TOC Implementation Journey Blog

Daniel Hampton of Australia, is starting a new blog where he will share his experience with a Theory of Constraints (TOC) implementation in a manufacturing company.   For all of you who follow blogs, this may be interesting to follow.

http://tocjourney.aussieblogs.com.au/

SPE Implementation In Small IT Company

Justin Roff Marsh published a video showing how to implement his Sales Process Engineering Methodology in a very small company. 


I became aware of Justin's Methodology around 2004, and quickly became an "evangelist" for it, due to its innovation approach.  As a reminder, his methodology aims to double sales development appointments without increasing  expenditures, and is based on two basic principles:

-Division of Labor
-Schedule Centralization

Justin is also currently writing a new book called "The Machine", where he explains in detail his Sales Process Methodology.  You can view the chapters written so far here:


Friday, September 23, 2011

Critical Chain Summary - Rob Newbold

TOC Expert Rob Newbold published a very nice Critical Chain Summary, using "task deadlines" in a very original and simple way.


PS - The presentation was done in Prezi, which is a very interesting to avoid the traditional "death by power point".

--
__________________________________
Santiago Velásquez Martínez

The Generosity Experiment - Sasha Dichter of Acumen Fund

In this wonderful TED talk (as all TED talks usually are), Sasha Dichter of Acumen Fund talks about an incredible "generosity experiment".  

http://vimeo.com/29140232

Acumen Fund is an organization that tries to solve problems in poor countries, using entrepreneurial approaches.

--
__________________________________
Santiago Velásquez Martínez


Thursday, September 22, 2011

Looking at Non Value Added through the P&L

Bill Waddell suggests a way to show non value added activities by "reshuffling" the categories of expenses in the P&L statement.


It may help to focus management on improving their performance, even if initially the approach is looking only at ways to reduce costs and not on how to increase revenues. 

-- 
__________________________________
Santiago Velásquez Martínez

About Organizational Structures

Manu from Bonkers world shows us in an illustrative way the different type of organizational structures that some top companies use today:


Another nice example would've been Semco, but you can always read about that by reading Ricardo Semler's landmark book.


So, the question at the end of the day is:  is the current organizational chart hindering your performance?

--
__________________________________
Santiago Velásquez Martínez

Monday, September 19, 2011

Harada and the Power of Self Reliance

Norman Bodek, a well known Lean expert, talks about the power of self reliance outside the factory floor in Toyota.  Self Reliance relates to how  organizations can succeed when any employee, inside or outside the plant, has the authority to solve problems on his own and make them aware to management, even when there is no company policy to handle them.

Monday, September 5, 2011

Errors of Commission and Ommission

Russel Ackoff was definitely one of the greatest systems thinkers.   He talks about  two types of errors management generally makes:  errors of comission (doing what should not be done) and errors of omission (not doing what should be done).

Goldratt uses these two types of mistakes to define TOC as well.


Enjoy.

Wednesday, August 31, 2011

Another Way to Board an Airplane

Lifehacker shows us the power of "questioning our assumptions" about how things are done in every day life.

As a passenger, loading an airplane often consumes a lot of your time.   This could be a nice alternative, if it could be implemented.