Visual Controls Make "Cents"

As many of you know, in addition to consulting, I am an adjunct professor at a college with a large number of international students. Normally I teach statistics, but recently I had the opportunity of familiarizing newly arrived international students with U.S. cultural and business communications.

As part of the workshop for new international students, I engaged the class in a discussion about what they have found to be problematic since their arrival in the United States. Surprisingly the one reoccurring topic that challenged the students, was our coins.

At first I was stunned. Of all the things in this country, the most challenging to newly arrived foreigners was our coins? After considering this for a moment, it made perfect sense. How?

Think about it, the designed system lacks visual clues; it relies almost entirely on the tribal knowledge of the user. It is hardly intuitive; the smallest coin, the dime, is worth more than the larger penny and nickel! Now combine that with the fact that none of our coins have large, easy to read numbers denoting worth; we can “cents” and understand how this combination can pose problems for newly arrived foreigners.

Given the lack of effective visual controls on the coins, it’s easy to comprehend why the newly arrived find this challenging and frustrating.

Now ask yourself, what in your business is not visually intuitive and causes problems? Simply put, are problems going undetected because the visuals controls in your workplace are ineffective? Can you walk into a material storage location and see what needs to be reordered? Can the leaders tell the status of the business simply by walking through the facility and observing?

Excellent examples of effective visual controls are the arrival and departure boards at an airport. First of all, these boards are easy to use, clearly labeled, and very intuitive. Even if you have never been in an airport before, you can look at the board and obtain the information about your flight. Not only does the board display the information, it will provide visual alerts by flashing when flights are changing status.

This information is not closely held and limited to only the airport’s managers. The status of every flight into and out of the airport is readily available and viewable by all. Just as importantly, the board provides only the necessary information and doesn’t overwhelm the traveler with unnecessary details. The required information is freely placed into the hands of those who need it and problems are easy to see.

Now expand on that concept and apply it your business. Does your staff know the status of inventories, deadlines, and other critical information? Are your visual controls improving information flow and process control?

More importantly, what benefits can you experience from an effective visual workplace?

• Higher job satisfaction – Individuals experience less stress because they have the required information to perform their jobs

• Safer work environment – Walkways are clearly labeled keeping individuals at a safe distance from moving vehicles and machinery

• Higher quality – Fewer defects/errors as problems become easy to see

• Greater efficiencies - Required information/material is readily available resulting in less downtime

• Improved appearance – Workplace is neat and orderly

• Improved Bottom Line – Reduced errors plus greater efficiency equals a better bottom line.

A visual workplace, which is often times associated with a 5S program, should be self-ordering, self-explanatory, and self-regulating.

If your business is experiencing problems because you can’t tell the status of the business simply by walking through and using tools deployed as part of a visual workplace, then I encourage you to consider launching a lean sigma program. It makes “cents.”

Please leave your comments or email me directly at royce.williard@gmail.com

Learn more about the author by checking my LinkedIn profile at http://www.linkedin.com/in/roycewilliard

 2009, The Williard Group

Photo Source:

Figure 1: Public Domain Photo of U.S. dime. Source: Clipart Graphics

http://www.freeclipartnow.com/money-business/coins/

It’s Never About The Number, It’s What The Number Is Telling You

It’s Never About The Number, It’s What The Number Is Telling You

Successful Control Charts For Every Business Environment

All successful leaders know how to see around corners. What is their secret? They use Key Performance Indicators (KPIs) complete with early warning systems. Both are components of any successful Lean Six Sigma program.

If it can be measured, it can be improved. But how do you know if the process is stable, and producing predictable results? The answer is simple, use control charts.

Many people often think the use of control charts as being limited to a manufacturing environment. This is an incorrect assumption. The application is much more widespread and successful, especially in today’s economic environment. These charts, commonly used in Lean Six Sigma, are appropriate for any process that can be measured.

A control chart is useful for…

• determining the capability of the process (expected range).
• determining if the process is under statistical control (stable).
• identifying special cause variation in the process.
• determining when and if corrective actions are required to the process.

By definition, a control chart is a graphical depiction of variance about a centerline over time. The mean (often referred to as an average) is commonly the centerline used in business applications. When using a mean as the centerline, the control chart is referred to as an `X (X bar) control chart. `X is nothing more than a fancy way of referring to the mean.

It is important to note that when a process is deemed to be out of statistical control, investigation is required. The cause of the variation must be identified and correction measures implemented when necessary.

The use of control charts can be extremely valuable when managing processes. However, to be of value these charts can’t sit in dusty binders in the manager’s office. The charts belong at the work location and should be reviewed during the leader’s Gemba Walk.

Furthermore, control charts should not be viewed as the only tool necessary for continuous improvement. Control Charts are only one of many tools available in the lean enterprise’s arsenal in the war on waste.

While statistics are crucial in the measurement of business processes, it is never about the number. It is about what the number is telling the leaders about their business and what is being done differently because of the number.

Constructing a Zone Control Chart

To assemble an `X control chart, enough data must be collected to calculate the mean (average) and standard deviation (std dev). After calculating the standard deviation, you determine the mean (average) + 1, 2, and 3 standard deviations (std dev). Finally, plot the Excel line chart including the data points, mean, 1 std dev, 2 std dev, and 3 std dev. Text labels are recommended for the right side of the graph to label the mean and + 3 std dev (upper and lower control limits).

Process control charts can be broken into three zones on each side of the mean (average) for ease of analysis. Zone “C” is closest to the centerline and is bounded by the mean and + 1 times the standard deviation. Zone “B” is the area bounded by + 1 and + 2 times the standard deviation. Zone “A” is the area bounded by + 2 and + 3 times the standard deviation.

Having assembled the control chart, the next step involves understanding what the data is revealing about the business. More specifically, is the process data under statistical control? A process only has two states, in control and out of control. There is a series of rules that are used to detect abnormal conditions in which the process is said to be out of statistical control.

While there is some disagreement among experts over the rules for determining when a process is out of statistical control, these rules were defined by Dr. Douglas Montgomery in his 2005 book entitled Introduction to Statistical Quality Control.

1. One point or more points outside of the control limits (i.e. beyond Zone A)

2. Two out of three consecutive points three points > 2 std devs from the mean, on the same side of center, and within the control limits (i.e. in Zone A)

3. 4 out of 5 points > 1 std dev from the mean and on the same side of the mean (i.e. in Zone B or beyond)

4. Eight consecutive points on the same side of the center line (i.e. Zone C and beyond)

5. Six points in a row steadily increasing or decreasing

6. Fifteen points in a row on both sides of the centerline in Zone C.

7. Fourteen points in a row alternating up and down.

8. Eight points in a row on both sides of the centerline and beyond Zone C.

9. An unusual or nonrandom pattern in the data.

10. One or more points near a warning or control limit.

Learn more about the author by checking my LinkedIn profile at http://www.linkedin.com/in/roycewilliard

Reference

Montgomery, Douglas C. (2005). Introduction to statistical quality control, Fifth edition. USA: John Wiley & Sons, Inc..

Post Author: Royce Williard

Copyright 2009, The Williard Group LLC

Searching for Your Organization’s Susan Boyle

Before she sang, Susan Boyle, the 47 year old, unemployed, Scottish woman, and current Internet phenomenon, was asked why her dream of becoming a professional singer “had not worked before?”  To which she replied, “I have never been given the chance before.”  Moments later, she delivered an amazing rendition of “I Dreamed The Dream.”  Now ponder this, how many employees in organizations across the world could say they never had a chance to shine?  Here is one such story that I observed first hand.

 

Facing a significant financial and quality challenge, the leadership of an organization realized radical change was necessary.  They understood, as Albert Einstein once said, “The definition of insanity is doing the same thing over and over and expecting different results.” To avoid corporate insanity, their only option was to embark on a Lean Six Sigma journey.  Their first decision was to seek out the “informal” leaders in the organization.  Next they approached those key individuals with the ability to influence their peers; to make them aware of the issues and the plan to implement Lean Six Sigma.

 

One of the key influencers in the informal network was a long time employee who had the reputation of being negative and critical of management.  Reaching out to him, the leadership outlined the reasons for the changes and the new course of direction.  He was told that his opinion mattered and that his input was required to make the organization successful.  He began to share his very insightful thoughts and ideas.

 

After being recognized for a particularly thoughtful observation, the employee replied that he was now being praised for the same thing that would have landed him in trouble with previous management.  In retrospect, this employee was his organization’s Susan Boyle.  He was an amazing talent who had never been given a chance.

 

The beauty of the Lean Six Sigma processes is it provides for involvement from all levels of the organization.  It allows employees to voice their opinions and experiment with new ideas in try-storming sessions.  It allows their voices to be heard and their input considered.  It shouts you have value!  You are not simply a commodity!  You are a person with a brain!  When implemented correctly, it demonstrates to the employee that their input matters.

 

So what happened to that employee after he became engaged?  He went on to facilitate his plant’s Morning Market and was a leader in the deployment of 5S and Visual Controls.

 

 

I cannot emphasize enough that one of the key jobs of a Lean Six Sigma leader is to find and use the amazing talents of their employees who have been overlooked and/or underutilized by providing a vehicle for them to voice their ideas and shine.  After all, every company’s got talent.  

 

 

 

View Susan Boyle’s remarkable performance here:

http://www.youtube.com/watch?v=9lp0IWv8QZY

 

Learn more about the author by visiting my LinkedIn profile: http://www.linkedin.com/in/roycewilliard

 

Follow the author on Twitter at: http://twitter.com/rwilliard

 

 

Post Author: Royce Williard

Copyright 2009, The Williard Group

Are You Leadership Material?

When many people hear I run a business consulting firm specializing in Lean Six Sigma, they will frequently indicate that they are familiar with these principles and have implemented them into their own organization.  Many will then go on to highlight their accomplishments using staff reductions as evidence. This attitude is a common misconception among individuals who have simply read a book or two on Lean Six Sigma and consider themselves an expert.  My reply is always the same, “Actually, it is about respecting individuals and company resources while enabling them to participate more fully in value added activities.”  Lean Six Sigma is not about the elimination of jobs.  It is about the reduction of waste and improving overall quality while respecting the individual.  A core principle of Lean Six Sigma is respect for the individual.

 

So what does respect for the individual really mean?  In cases of old processes no longer performing adequately because of planned or unplanned staff reductions, respect for the individual can be demonstrated by removing the non-value added activity so that the individuals do not feel overwhelmed. 

 

Many companies today have already cut their labor costs to the bare minimum and beyond.  Unfortunately, as the size of the staffs reduced, the amount of work requiring possessing may not have reduced proportionately. The goal in these organizations is not to eliminate more labor.  The goal is to eliminate the non-value added activity so that the existing staff can perform the work consistently, efficiently, with quality, in a timely manner, and without being overwhelmed.  In this case, respect for the individual is demonstrated by making the jobs easier to perform.    

 

Another common misconception is that respect for the individual is synonymous with employment for life.  Respect for the individual doesn’t mean employment for life.  Respect for the individual refers to how you treat and respond to people.  Treating people with respect basically means following the advice given by parents around the world, treat others, as you would like to be treated.

 

When you’re speaking with someone, you need to make eye contact and listen.  When leaders conduct a Gemba Walk, don’t simply walk around observing and writing on a checklist. Engage people in conversation. Ask questions. Communicate.  Don’t be afraid to ask for input.  The insight provided may surprise you. Communication is not simply taking turns talking and formulating a response while the other person is still speaking.  Communication involves sending and receiving information.

 

Another way to respect the individual is to show interest in their development.  However, this doesn’t mean sending people to every training program imaginable.  This could be something as simple as taking the time on a Gemba Walk to explain why certain decisions were made or why certain things are important to the organization.  Educational moments present themselves all the time, a true leader has trained to take advantage of the opportunity when it presents itself.

 

Developing people provides the individual with additional skills that can be marketed if they need or elect to search for another opportunity. Respect is not employing people forever; respect is providing people with enhanced skills that can be used in the marketplace should the need arise.  I have been fortunate enough in my career to work for several good mentors.  They were good mentors, in part, because they were excellent role models who took an interest in my professional development. 

 

Everyday a leader has the opportunity to be a role model of the Lean Six Sigma principles.  Every leader can be an exceptional role model.  The choice however, belongs to them which type of role model they will be for their staffs. Will they be a positive or negative role model?  The choice is theirs. 

 

The Lean Six Sigma principle of respect for the individual is simply treating others, as you would like to be treated. 

 

Learn more about the author by accessing my LinkedIn profile at http://www.linkedin.com/in/roycewilliard

 

 

Post Author: Royce Williard

Copyright 2009, The Williard Group

Gemba, The Library, and Breakthrough Performance

I recently had an opportunity to visit a good friend at the library where she is currently a manager.  10 years ago we worked closely together in continuous improvement and the pursuit of excellence in a service environment. She is a regular reader of this blog and I was eager to see how she had applied the information. When I first arrived, she asked if I wanted to meet in the office or discuss the improvements in the backroom.  Of course, I jumped at the opportunity to go to gemba and see first hand how their new lean journey is progressing. 

 

Like most organizations today, the library has found themselves unable to replace permanent staff that have resigned.  Furthermore, lacking the necessary capital to invest in state of the art automation, they had no choice except to pursue a lean enterprise solution. They immediately began to attack the visible waste.   To learn how to swim, you must get in the water and they proceeded to jump in with both feet.  The eagerness they displayed for learning and adopting lean concepts serves as an example for all.

 

Their first project was analyzing their check-in process and focused on removing the lean waste of motion and transportation.  In the pre-kaizen current state, the staff staged the material to be checked-in on one side of the workstation then, after check-in, moved the material to the other side of the workstation, before finally placing the material on a cart for re-shelving.  Additionally, the process included re-shelving the material when only 1 of 3 shelves on the cart was full. 

 

The problems occurring in the pre-kaizen state included …

·      the checked-in material could not be located prior to being re-shelved

·      checked-in and material waiting to be checked-in was frequently comingled

·      the staff was making excess trips to reshelf the material due to underutilized carts

 

In the post-Kaizen process, the staff moves the checked-in material directly to the cart for re-shelving.  Furthermore, the carts have been colored coded by library location and are moved only when 2 of 3 shelves on the cart are full.  The new process has reduced the number of trips to re-shelve the material by 50%.  The process has also enabled the staff to locate material waiting to be re-shelved and has greatly reduced the risk of comingling unchecked-in material with checked-in material.

 

At this point some of you may be gasping because the re-shelving is a batch process.  The beauty of lean is that it is adapted to each individual environment.  Lean is not about ensuring use of all the tools, lean is about breakthrough performance and doing what is right for the organization. 

 

Are there still improvements required? Absolutely, but kudos to my friend and her staff for realizing and addressing the need to change.

 

Post Author: Royce Williard

Copyright 2009 The Williard Group

5S, Not Just a Cleaning Program

When I first heard of 5S many years ago, the company leadership positioned this as a cleaning project and keeping the building “tour ready”.  Unfortunately, this misconception is not all that unusual. Many times when a 5S program is launched, business leaders and the implementation team focus exclusively on the first three S’s (Sort, Set in order, and Shine).  Often times the implementation teams tend to overlook Standardize and Sustain, only to see the implementation become a short-lived housekeeping program, rather than laying the foundation for a much broader lean implementation.

 

One thing is certain, by overlooking the final two S’s the company “cleaning” program will quickly fall by the wayside and they will be right back where they started within 3 – 6 months.  To maintain the culture change necessary to make the improvements “stick”, it is necessary to develop and document the new standards for the area. For example, take a photo of the area when in compliance, then post the photo. The more visual controls the better, employees need to be able to quickly and easily see if areas are not in compliance. 

 

In addition, some companies have met with success by not only posting photos of the area while in compliance, but they go so far as to post the photo of the employee responsible to ensure that the area is in compliance.  This practice quickly creates individual ownership and pride for the area.  In larger companies there is a side benefit, enabling employees to “match the faces to the names” of everyone in the organization.

 

Shadow boards are great simplistic examples of a visual control.  For instance, when using a shadow board for tools, simply paint an outline of the tool(s) on the pegboard and hang the tool back in its location when the task is complete.  Doing so will keep employees from wasting time searching for something that should be readily available.

 

Once you have established, documented, and posted the new standards, you will need to create a management system and culture to sustain these improvements.  The leadership should do daily (or more frequent) Gemba walks.  Take the opportunity to educate the staff on what is important to you and why it is important.  For lean to be successful, a company will need a “teach down” approach.  Install measures as and where appropriate.  If an area is out of compliance with the standard, emphasize the importance and obtain a commitment on when the area will be back in compliance.  Lead by example, demonstrate that the standard is important, and follow up to ensure adherence.

 

5S programs can either build a solid foundation for the remainder of your lean implementation or they can be a “flavor of the month” cleaning program, the choice is yours.  Choose wisely.

Learn more about the author by accessing my LinkedIn profile at http://www.linkedin.com/in/roycewilliard 

Post author: Royce Williard

 

Copyright 2009 The Williard Group