“Full-time equivalent”, or “FTE” is a way to normalize staffing decisions. In the modern workforce, particularly in administrative environments, employees perform multiple functions or don’t work standard 9-to-5 schedules. Using FTE to determine the size of the workforce assigned to a process makes accurate productivity and cost measures possible. A Read more…
Businesses have an incredible amount of information flowing into them. It is often impractical for people to process the data and make quick assessments and corrections to the business without some sort of simplification tool. One such tool is the dashboard. It is simple view of the key metrics of Read more…
Toyota has unquestionably been instrumental in promoting Lean principles through its production system. The evolutionary, and sometimes revolutionary, path it has followed has been emulated by many, and is often held out as the beacon of Lean in the continuous improvement community. In his 2004 book, The Toyota Way, Jeffrey Read more…
Any time I hear the word ‘inspection‘, I think failure. An inspection is an admission that you haven’t been able to build quality into a production process. That said, I think there is a place for inspections, as long as there is recognition that they wasteful. But since even wasteful Read more…
The activity ratio is a measure of how quickly work moves through a process. It is simply the sum of the process times divided by the total lead time. For example, if the processing time was 30 minutes and the lead time was 2 hours, the activity ratio would be Read more…
The Balanced Scorecard is a management tool developed by Robert Kaplan and David Norton and published in their book titled The Balanced Scorecard. The book focuses on four areas: Financial performance Customer knowledge Internal business processes Learning and growth The term “balanced”, as explained in their preface, is many faceted. Read more…
In Lean, there are certainly some things that are open for debate. How aggressively to set goals, for example. When the criteria used to select a course of action are different for both sides, there is likely to be a disagreement. (See my recent video on using a decision matrix Read more…
I answered a question on a forum earlier this week, and it has had me thinking. It asked how we thought efforts to improve quality would be different in the future. My answer was that I saw a more predictive approach to quality. That just means that more companies will Read more…
I saw this sign at a coffee shop a while ago, and spent the whole day moderately amused. First of all, I am a big coffee fan. I joke that I can’t give blood because the caffeine in my veins would wake up patients during surgery. Second, I am not Read more…
A future state value stream map (VSM) is simply a projection of how a value stream should look in the future, generally 6 to 12 months. When a current state value stream map is created, problem areas become apparent. The bottlenecks where inventory piles up, processes with poor quality, and Read more…
Murphy’s law has been stated in various ways, but essential boils down to “If something can go wrong, it will.” There are many addendums to the law, such as “in the worst possible way” or “at the worst possible time”. The origin of Murphy’s law is somewhat murky but seems Read more…