The W. Edwards Deming Institute Blog

One-Piece-Flow Projects Create the Best Conditions for True Creativity

Guest post by Michael Ballé (repost from his Gemba Coach column on Lean.org)

Dear Gemba Coach,
For product development you need creative (maybe even chaotic) people. Are those people suited to follow such a structured method as lean? Like trying to achieve one-piece-flow in product development?

photo of Michael Ballé

Michael Ballé

Thank you. What an interesting question! As a writer and novelist, I like the idea that it’s okay to be chaotic! But aren’t we making assumptions about the nature of creativity? Let’s take a gemba example of a product we all have experience with: a gasoline pump. In product development terms, this product evolves at several levels:

  1. Solving quality problems of products now in production through engineering patches (or adding customer-required options)
  2. Introducing regular product refreshes through engineering improvements to keep the customers (gas stations) interested in refurbishing
  3. Reducing work content through smart engineering in order to drive manufacturing costs down
  4. Making step change improvement to key functionalities such as the meter and the pump to keep market leadership
  5. Making technological breakthroughs to invent the dispenser of the future, with technologies such as connectivity, VGA screens, Big Data diagnostics and so on.

Tom Edison and Steve Jobs
Each of these specific change points have their own rhythm, or takt, and require very different types of engineering and, in particular, different types of creativity:

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Minimal Viable Product

Minimal Viable Product is an important concept. The idea is to learn from customers (users) using the product/service as soon as possible. Having customers direct experience available as soon as possible allows those designing and creating the product to learn as early as possible from those customers.

The idea with MVP is to speed up the learning process. It also puts a premium on customer focus in a very Deming-like manner.

As with many good management ideas the benefit realized using the concept or tool will depend by how it is applied in the organization. Organizations that use MVP to quickly learn from customers and adapt and repeat that process can get great results.

But if that mission to learn from customers and experiment isn’t ingrained organizations can spend lots of energy without results. This graphic does a great job of illustrating what the process should look like.

minimal viable product illustration  - skateboard, scooter, bike, motorbike, car not pieces of a car until the last step

Deliver usable products to allow learning to take place. Illustration by Henrik Kniberg.

Keeping that illustration is mind should be very helpful. Even after that is done there is a tricky judgement call that has to be made about what is suitably viable and what is not. And that requires a good understanding of the customers for the product.

As with the PDSA cycle the idea with using MVP is to learn quickly and immediately apply that learning to a new cycle of learning.

Related: The consumer is the most important point on the production-lineCustomer DelightApproaching a Minimum Viable ProductThe Process of Discovery is Iterative (webcast with George Box)


Baking Apple Pies Using the Deming Management System

Deming Institute podcast icon

Paula Marshall, the CEO of the Bama Companies, discusses her adoption of Deming principles at Bama Companies. In the podcast she discusses going to see a Dr. Deming 4 day seminar in 1990 and then working with him for 3 years on bringing new management thinking to the Bama Companies. And she continues with the experience continuing to use Deming’s ideas to manage.

Bama Companies is best known for being the single supplier of the famous Apple dessert pies to McDonalds. McDonalds actually brought Paula to the Deming seminar in order to help their supplier improve. And Paula, Bama and McDonalds have enjoyed the benefits of that active focus on helping suppliers improve for decades now.

Book cover: Sweet as Pie - Tough as Nails

In the podcast she discusses her experience working with Dr. Deming as she tried to improve the performance appraisals at Bama Companies. Eventually she finally understood why Dr. Deming called for the elimination of the annual performance appraisal. And for the last few decades Bama Companies has benefited from eliminating that wasteful and damaging process from their business.

Paula’s latest book is Sweet as Pie: Tough as Nails.

Related: Deming Podcast: The Deming Journey at New York Label & Box WorksHallmark Building Supplies: Applying Deming as a Business Strategy


Effective Decision Making

We want to chose the best strategy. However, as the image by Randal Monroe (xkcd comic) shows we need to consider the whole system. It isn’t helpful to spend more effort to chose between two options than the difference between them offers.

However we can be drawn into such behavior by the management system and by our psychology. If you look back at whether the decision you make often amount to a great deal of effort for things that really you would have been just as well off if you just flipped a coin it may point to an opportunity to improve.

Fear and bureaucracy often drive organizations to behaving in ways that are not very useful. People often are pushed into being worried about blame and not being able to justify decisions so they spend a great deal of time justifying choices.

Some times it is important to spend a great deal of time to examine options and explore the best possibilities. But often that is just waste.

By the way time spent reading xkcd is pretty much the opposite of waste – even though your boss might not agree. So you might want to make sure they don’t see you reading xkcd comics all afternoon if they are a boss that wouldn’t understand how this will provide you important new insight into thinking creatively and questioning what you think you know (theory of knowledge).

Related: Effort Without the Right Knowledge and Strategy is Often WastedTrust Your Staff to Make Decisions (within a good management system)Making Better Decisions


Dr. Deming’s Work Papers at the Library of Congress

Much of Dr. Deming’s work is housed and available at the Library of Congress in Washington DC. The Library of Congress made a formal request for Dr. Deming’s professional papers soon after his death. They were donated by The W. Edwards Deming Institute and are available from the Manuscript Division of the Library of Congress.

It is a large collection that contains notes, correspondence and the drafts of Out of the Crisis and The New Economics.

The Manuscript Reading room is located in the Madison building of the Library of Congress. The Jefferson building, which is right across the street, is an amazing building (where the two photos in this post were taken); don’t miss the historic building if you go to see the Deming collection.

Main reading room in the Jefferson building

Main reading room in the Jefferson building, Library of Congress. Photo by John Hunter.

To access the Deming papers see the policies and procedures for the Manuscript Reading Room. Note, the Deming Papers are stored offsite. A researcher must identify the containers they would like to consult, then state the dates of their visit to the Library. Please contact the Manuscript Reading Room in advance of your planned visit at 202-707-5387 or by email at mss@loc.gov. Please allow a week for delivery.

The W. Edwards Deming Institute makes five travel grants available each year for study of the Deming Collection at the Library of Congress. Contact us if you are interested in taking advantage of a grant.

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Using Deming’s Management Methods to Enhance the Application of Taguchi’s Ideas

Deming Institute podcast icon

In this episode of The W. Edward Deming Institute Podcast (download) Bill Bellows discusses Genichi Taguchi, Ackoff, Deming and the efforts to use their idea to improve organizations. Bill is Associate Fellow in the InThinking Network at Aerojet Rocketdyne. Bill also serves as a board member of the W. Edwards Deming Institute.

Quote from the podcast by Bill Bellows:

If I wanted to advance Dr. Taguchi’s work in my day to day efforts I needed to really absorb Dr. Deming’s work.

By and large the application of Dr. Taguchi’s work [in our organization] were to things that were broken… We want to get into the domain of good to better to better, were in the domain of broken to good.

Subscribe to the Deming podcasts via RSS or iTunes.

Related: How Did We Do on the Test – Bill’s presentation at the 2012 Deming Institute annual conference. – Dr. Deming “If there were a fire here in this building and somehow we put it out that is not improvement, that is putting out fires.”


To Copy is to Invite Disaster

Dr. Deming explained the dangers of copying from other organizations: “To copy is to invite disaster.” (page 10 of The New Economics). The proper corse of action depends on the system.

This, like so much of Deming’s advice, relates to understanding the organization as a system. A Deming management view requires thinking about relationships, psychology, capabilities, culture and process when evaluating options. And a Deming organization always validates improvements; most often by using the PDSA cycle.

What these points mean is that the correct course of action at a specific point in time in an organization depend on the existing view of the organization as a system. While eliminating performance appraisals is a good management practice. That doesn’t mean doing it tomorrow in your organization is the wisest course of action.

While eliminating inspection for quality is a good management practice. That doesn’t mean doing it tomorrow in your organization is the wisest course of action. The knowledge that elimination inspection is wise means you need to build your management system and processes so that they perform without this costly way of doing business. But if your processes are incapable today, the proper action is to fix that, not to drop inspections. You have to build to the point where you can drop inspections for quality.

A critical part of transforming an organization to take advantage of Deming’s management system is to understand the culture and psychology that exists today. People will react to statement, changes and proposed practices based on their experiences (both in your organization and in their entire lives).

If your organization hasn’t given people a reason to trust the pure intentions of management they are not going to do so. In such a situation, which is most organizations to varying degrees, the change process needs to be viewed as a long term, incremental process.

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Submit an Abstract for the 21st Annual International Deming Research Seminar

The 21st Annual International Deming Research Seminar will be held in Washington DC, 23 and 24 March 2015. The first 20 seminars were held at Fordham University in New York City, before the move to Georgetown University for 2015.

The W. Edwards Deming Institute is seeking research papers from diverse perspectives, businesses, organizations and industries that provide examples of Dr. W. Edwards Deming’s theories applied in the present day, or papers linking Dr. Deming’s work to that of other great thinkers.

Research papers must be original works. Please submit your abstract of 200 words or less electronically to The Deming Institute at wedresearch@deming.org by 7 November, 2014. Selected speakers will be notified by November 17th and invited to present their papers in a session at the Seminar in March 2015. Research papers will be due on 12 January 2015.

Audience
The Research Seminar brings together people from around the world, and from a variety of businesses and industries, to extend and illustrate Dr. Deming’s theories.

Join us to hear innovative new approaches and directions being tested by others to enhance operations, build trust, foster leadership, promote commerce, create ethical business cultures, and sustain success. Enjoy dialogue stirred by new thinking, and informal networking with Deming practitioners and leaders in the Deming community.

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The System Will Produce What It’s Capable of Producing

Guest post by Simon Guilfoyle

Deming was fond of saying, “By what method?”

In other words, if you want to see performance improvements you need to have an actual method for achieving them. This means understanding the system and improving system conditions to help the workers deliver excellent performance. No amount of inspirational leadership (or sheer hard work) can achieve this if system conditions constrain the workforce.

Taking the example of response times for the emergency services, let’s see how this concept works. In my experience, people who drive vehicles with blue lights and sirens usually already want to get to emergencies quickly; I’ve never known police response drivers deliberately drive slowly to a burglary in progress. Having a workforce that’s naturally aligned to organisational* purpose means there’s one less hurdle to overcome when seeking performance improvements.

drawing of stick police car

Next, you have to understand which systems conditions affect response times. There will be some that you can influence (e.g. amount of resources available, location of deployment bases, number of trained drivers) and some you can’t (e.g. road network, traffic conditions, weather). You would use this information in conjunction with data about the type and frequency of demand, then consider data relating to current response times, in order to establish the range of predictable performance and identify where opportunities for improvement lie.

Therefore, unless we assume frontline workers are bad and lazy, it should be obvious that the way to improve response times is to use our data / information about current performance to inform evidence-based decisions about how to improve the system. Actual methods could include boosting resources in a particular location in response to predictable demand, deploying differently, creating capacity by ‘switching off’ inappropriate demand, or something else. But you always need an actual method.

Which brings us to response time targets. Putting aside the arguments that numerical targets are arbitrary and prone to causing dysfunctional behaviour*, a critical further point is that targets do not provide a method. Neither do they provide additional capacity for achieving the improvements sought. Therefore, setting an arbitrary numerical target for response times (or anything else), simply does not change anything about those systems conditions that dictate predictable levels of performance. The system will produce what it’s capable of producing, whether the target is there or not.

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