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Executives are the senior leaders in an organization. They make the sweeping decisions that affect a large cross-section of the company at the same time. These senior leaders are usually the ones responsible for bringing Lean into an organization and setting the course that it will follow. Many executives can Read more…
Net Present Value (NPV) comes from the principle that money today is worth more than the same face value of money tomorrow. Would you rather have $1,000 today or $1,000 in 5 years? That question is easy to answer. Most people would take the money immediately. What about this one: Read more…
A decision tree is a tool that helps calculate the expected values of the choices that are available to you. It uses probabilities of events happening and estimates of each possible outcome to help you make a decision. For example, if you called in to a radio contest where you Read more…
Competition is the act of trying to get your needs met over the needs of someone else. It could be competing in sports (your need to win over their need), in a job hunt (you against the thousand other applicants). Or it could be in a marketplace (trying to fight Read more…
Apples to oranges comparisons occur when people examine two objects and draw incorrect conclusions. The problem comes from the fact that the two objects are dissimilar and should not be compared. It happens often in Lean. Employees resisting Lean may compare the number of machines they run in a Lean Read more…
There are many ways to learn about your customers, vendors, or employees. You can watch how they behave. You can do research or purchase data about them. You can analyze the data you already have. Each of these, though, is somewhat passive, and thus limits the information you can gather. Read more…
The word “motivation” has two distinct, though related, meanings. In the more generic definition, motivation is simply something that provides an incentive to take action. This meaning also has something of a psychological component to it, as there is a linkage between the incentive and a behavioral response. In a Read more…
Creativity is the ability to break the mold of traditional thinking. Most people think of creativity as the ability to come up with new ideas. But creativity is also exhibited when people use existing ideas or information in new ways. Creativity is very important to Lean. It is easy to Read more…
Ambiguity is the state of uncertainty in meaning. Ambiguity is harmful to Lean companies for several reasons. Ambiguity reduces consistency. If a process is vague, it is hard to follow the same way every time. Ambiguity slows processes down. Requesting clarification breaks the rhythm of a process. Ambiguity misaligns goals. Read more…
A good definition of poka yoke is simply “mistake proofing”. Of note, the term is of Japanese origin and is one of the handful of the more commonly used Japanese terms that have become mainstream in Lean circles. Poka yokes keep processes from producing errors. Preventing errors obviously improves quality, Read more…
Discipline is the process of changing a behavior to make it conform to a rule or standard. For many people, discipline has a negative connotation to it, especially when it is their behavior that is being adjusted. In truth, though, discipline is more than repeating the standard and doling out Read more…
Results are the outcomes or consequences of actions. In the continuous improvement world, results are most commonly viewed as the intended outcomes of an operation, organization, process, or project. This is in contrast to unintended side effects of a process. Actual results are compared to goals to indicate how effective Read more…