So times are tough and we are concentrating on earning money. This means that we are trying hard to reduce tasks to billable tasks only. In a projectized environment, this means that if we work for an hour, we want to be able to charge for that hour.
Isn't this Lean anyway?
But there is an obvious missing component...and that missing component is the investment in continual improvement.
Here at Genoa, we normally have dedicated time each week for working on Lean projects. But in a projectized company, during times when every single dollar in the cashflow equation counts, the last thing we want is to be working on non-billable work. We want to work for an hour, be paid for that hour, deposit the money in the bank account, pay bills, make payroll, and climb back out of the debt we have built up over the last year, trying to keep the team together and stay alive during the down-turn in the industry and economy.
But then we miss the most important part of our transformation to a World-Class Lean company, and that is the continual effort to get better.
And one of the more difficult parts of being a projectized company is managing resources so that they perfectly coincide and balance with project work-level requirements. Projects suddenly slow down due to external (client) circumstances. Projects often come to a stand-still for short periods of time. Then all of a sudden...the heat is on and there are not enough hours and not enough people to get the job done in time for the client's needs.
So how do you juggle short bursts of unexpected availability?
We have started the Mini-Kaizen.
Basically, a "job-jar" with specific personel assigned (based on expertise) with a mini-budget, scope of work, specific deliverables, and a time limit.
So now when people have a short wait for some unexpected reason beyond our control, we have the "job-jar" ready.
Yes, in these times, it can be difficult for the culture of the office to accept and understand the importance of investing time in the continual improvement program. Some may think it is better to stay on the project, and forge ahead, albeit a bit slow and with an inefficiency you may be willing to swallow in the interest of keeping busy....but we have learned this leads to nothing but disaster and loss. I'll cover that topic some other blog....
Right now, we are ready to start our "job-jar".
I'll let you know how it works out.
Monday, June 28, 2010
Tuesday, June 15, 2010
Time to focus again...
In the midst of economic struggles, fighting to bring work into the office, staying flexible when seeking and choosing work, making difficult decisions to downsize or modify the team, one cannot lose sight of the continual pursuit of perfection. I don't think we can afford to lose sight of Lean principles.
Lean is what can makes the difference between me and my competition. In the present and in the future. There has never been a time when this is more important to the life of my company.
I find it is not necessary to have achieved a specific level of Lean business practice. People do not look for that from me. But it is necessary to be dedicated to Lean. People do look for that. It is necessary to be dedicated to the fifth and most important Lean Principle. Continual pursuit of perfection.
Continual pursuit of perfection. Continual means continuing indefinitely over time, without interruption. Quite simply, this means we can never stop.
So in times of difficulty, I do what I have to do. I change focus, I place emphasis on doing the work. But I do not stop making notes in the background. I do not stop analyzing. I focus on the work at hand, but I keep my eyes open. I use all that we have developed to get our work done faster, of better quality with the reliability of our defined process. But I take the time to make a few notes. I continually take a look at what is going right and what may be going wrong. I save these notes.
The time will come very soon to bring out the notes and make some more improvements. The time will come when those notes will help us make up the next A3 and help us to discover the root cause just a little bit quicker than we expected.
I think I have to fous on the driving, but I cannot take my eyes completely off the dashboard.
Yes, I just talked circles around the time at hand at Genoa. We are focused on the work. We don't have a spare dime to invest in a well-needed improvement at this time.... but we are still making notes.
We all need to be taking notes.
Lean is what can makes the difference between me and my competition. In the present and in the future. There has never been a time when this is more important to the life of my company.
I find it is not necessary to have achieved a specific level of Lean business practice. People do not look for that from me. But it is necessary to be dedicated to Lean. People do look for that. It is necessary to be dedicated to the fifth and most important Lean Principle. Continual pursuit of perfection.
Continual pursuit of perfection. Continual means continuing indefinitely over time, without interruption. Quite simply, this means we can never stop.
So in times of difficulty, I do what I have to do. I change focus, I place emphasis on doing the work. But I do not stop making notes in the background. I do not stop analyzing. I focus on the work at hand, but I keep my eyes open. I use all that we have developed to get our work done faster, of better quality with the reliability of our defined process. But I take the time to make a few notes. I continually take a look at what is going right and what may be going wrong. I save these notes.
The time will come very soon to bring out the notes and make some more improvements. The time will come when those notes will help us make up the next A3 and help us to discover the root cause just a little bit quicker than we expected.
I think I have to fous on the driving, but I cannot take my eyes completely off the dashboard.
Yes, I just talked circles around the time at hand at Genoa. We are focused on the work. We don't have a spare dime to invest in a well-needed improvement at this time.... but we are still making notes.
We all need to be taking notes.
Thursday, June 10, 2010
The Lean Entrepreneur
A blog for Entrepreneurs...and especially Lean Entrepreneurs.
I've been thinking about Michael Gerber's book, E-Myth Revisited. I also listened to him speak in St. John's, Newfoundland, last week. His overriding message is "work on the business, not for the business".
In other words, work on developing the business, do not immerse yourself in the day-to-day activities of the business. The bottom line is that every successful business contains as much value in the process as in the people. As the entrepreneur, you create the team, you lead the team, and you guide the team to create the process.
Of course without the right people, it is next to impossible to accomplish this. The staff and the culture play as important a role as any other aspect of the company's personality. In the end, the team owns the process as much as anybody. So we are not robots....but...
The truly successful business is defined by the ability for any staff member to be able to do their job exactly the same way that the previous staff member completed the same job...same as the person on holiday, or the person out sick, or the person on the other shift. Who completes the work and when should be of no consequence or concern to the customer.
So according to Michael Gerber, a successful entrepreneur is one who creates a business and creates a process for the business to run predictably, in a repeatable and reliable fashion. The successful entrepreneur is one who will spend the majority of time developing the system, and less time working within the system.
Well I say that the successful entrepreneur is a Lean Entrepreneur. And I do not necessarily mean that a successful entrepreneur uses Lean techniques throughout their day....I mean that the successful entrepreneur is focused on Lean. A successful entrepreneur creates a business that lives and breathes the 5 principles of Lean.
1. Identify the value.
2. Map the value (process).
3. Create flow (smooth and reliable, predictable, repeatable).
4. Create pull (don't over-produce).
5. Continually improve.
Any great Lean company does excactly what Michael Gerber recommends...and more...but let's keep to what Michael Gerber is talking about.
Let's think about what Mr. Gerber says to focus on. Focus on process. Focus on repeatability, predictability, reliability. Do not work within the system, work on the system. Yes...go to Gemba...but give the "doers" the power to help create, control and maintain the system.
Everything within Genoa Design, my company, is centered around an engineering process. All designers doing the engineering tasks exactly the same way every time. Sit two people side-by-side and what will you see? Identical process.
This is what makes a company valuable from an entrepreneur's perspective. Once you know the staff are doing their jobs every time, exactly the way they said they would do it, then you, as the entrepreneur, have the freedom to focus your energy on other things business.
Like getting more business, like continually improving, like creating more processes, like growing the business, like planning the next party for the staff!
What can separate you from the competition? How about the other 4 Lean principles?
Is there much difference between Michael Gerber's smart entrepreneur (one who get's it) compared to a Lean Entrepreneur? Well... the Lean Enterpreneur has another toolbox full of tools that can be used to continually improve the business. But the start point is the same.
Funny how all these cutting-edge thinkers are all singing the same song....maybe it is because they are right?
If you are an entrepreneur, visit Michael Gerber's website http://www.e-myth.com/
If you are further interested in Lean, start with http://www.lean.org/
I've been thinking about Michael Gerber's book, E-Myth Revisited. I also listened to him speak in St. John's, Newfoundland, last week. His overriding message is "work on the business, not for the business".
In other words, work on developing the business, do not immerse yourself in the day-to-day activities of the business. The bottom line is that every successful business contains as much value in the process as in the people. As the entrepreneur, you create the team, you lead the team, and you guide the team to create the process.
Of course without the right people, it is next to impossible to accomplish this. The staff and the culture play as important a role as any other aspect of the company's personality. In the end, the team owns the process as much as anybody. So we are not robots....but...
The truly successful business is defined by the ability for any staff member to be able to do their job exactly the same way that the previous staff member completed the same job...same as the person on holiday, or the person out sick, or the person on the other shift. Who completes the work and when should be of no consequence or concern to the customer.
So according to Michael Gerber, a successful entrepreneur is one who creates a business and creates a process for the business to run predictably, in a repeatable and reliable fashion. The successful entrepreneur is one who will spend the majority of time developing the system, and less time working within the system.
Well I say that the successful entrepreneur is a Lean Entrepreneur. And I do not necessarily mean that a successful entrepreneur uses Lean techniques throughout their day....I mean that the successful entrepreneur is focused on Lean. A successful entrepreneur creates a business that lives and breathes the 5 principles of Lean.
1. Identify the value.
2. Map the value (process).
3. Create flow (smooth and reliable, predictable, repeatable).
4. Create pull (don't over-produce).
5. Continually improve.
Any great Lean company does excactly what Michael Gerber recommends...and more...but let's keep to what Michael Gerber is talking about.
Let's think about what Mr. Gerber says to focus on. Focus on process. Focus on repeatability, predictability, reliability. Do not work within the system, work on the system. Yes...go to Gemba...but give the "doers" the power to help create, control and maintain the system.
Everything within Genoa Design, my company, is centered around an engineering process. All designers doing the engineering tasks exactly the same way every time. Sit two people side-by-side and what will you see? Identical process.
This is what makes a company valuable from an entrepreneur's perspective. Once you know the staff are doing their jobs every time, exactly the way they said they would do it, then you, as the entrepreneur, have the freedom to focus your energy on other things business.
Like getting more business, like continually improving, like creating more processes, like growing the business, like planning the next party for the staff!
What can separate you from the competition? How about the other 4 Lean principles?
Is there much difference between Michael Gerber's smart entrepreneur (one who get's it) compared to a Lean Entrepreneur? Well... the Lean Enterpreneur has another toolbox full of tools that can be used to continually improve the business. But the start point is the same.
Funny how all these cutting-edge thinkers are all singing the same song....maybe it is because they are right?
If you are an entrepreneur, visit Michael Gerber's website http://www.e-myth.com/
If you are further interested in Lean, start with http://www.lean.org/
Tuesday, June 8, 2010
Hoshin Kanri vs. Leverage Your Best
I just finished reading "Leverage Your Best, Ditch The Rest" by Scott Blanchard and Madeleine Homan. The book is subtitled "The Coaching Secrets Top Executives Depend On". What I found was a Hoshin Kanri approach to personal coaching. This is not a negative comment in any way...this is a very positive remark. I think the application is perfect for us Lean Champions.
The authors use a system we have been using at Genoa to monitor and move our Lean transformation forward. At Genoa, we use a Lean diagnostic to evaluate our progress within 16 categories of Lean implementation. We use the results to guide us and tell us where we need improvement...in which categories. We use the items on the diagnostic, which we have not completed, as an indication what needs to be done next. We prioritize according to our business goals, and then proceed.
This is exactly what the authors of the book have done for a personal coaching approach. The authors encourage the reader to complete a self-analysis that covers what they call "The Seven Leverage Points". These seven points outline areas of self-discipline and personal management, that if you master two or three of then at least, your life will improve drastically. As you analyze yourself according to these points, you focus in on specific ways to master elements within each area, and understand the benefits that you will realize once you have mastered an area, or gotten it under control.
They use the Hoshin Kanri method of getting life under control. Strategic Planning for your life. Strategic Management for your life. If you are inclined toward Lean Principles in your work-life, you will be inclined toward this approach toward personal life. Get the book and read it. www.leverageyourbest.com.
The authors use a system we have been using at Genoa to monitor and move our Lean transformation forward. At Genoa, we use a Lean diagnostic to evaluate our progress within 16 categories of Lean implementation. We use the results to guide us and tell us where we need improvement...in which categories. We use the items on the diagnostic, which we have not completed, as an indication what needs to be done next. We prioritize according to our business goals, and then proceed.
This is exactly what the authors of the book have done for a personal coaching approach. The authors encourage the reader to complete a self-analysis that covers what they call "The Seven Leverage Points". These seven points outline areas of self-discipline and personal management, that if you master two or three of then at least, your life will improve drastically. As you analyze yourself according to these points, you focus in on specific ways to master elements within each area, and understand the benefits that you will realize once you have mastered an area, or gotten it under control.
They use the Hoshin Kanri method of getting life under control. Strategic Planning for your life. Strategic Management for your life. If you are inclined toward Lean Principles in your work-life, you will be inclined toward this approach toward personal life. Get the book and read it. www.leverageyourbest.com.
Wednesday, June 2, 2010
Lean Engineering on the Shipyard Production Floor
A brief discussion with a shipyard today. Their vision is to have a virtual product model of the vessel available for the fitters, welders and shipwrights on the floor so that they can rotate, zoom in, zoom out, pan and analyze areas of the product model that will help them assemble the vessel. This will be combined with isometric assembly drawings with minimal annotation and dimensions. Makes for clean and low effort production drawings, increases the responsibility on the production floor to look carefully at the product model and see what the intent to build is. The care and guidance is focused on the sequence and Lean process. The waste in this case is the duplication of providing dimensions on coded and computer-cut parts.
The product model can be started at concept, and matured throughout the design spiral.
This is the way of the future as I see it.
The product model can be started at concept, and matured throughout the design spiral.
This is the way of the future as I see it.
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