Nuts & Bolts Guide: Section
Develop Trust (Principle)
Think about what trust is. It is, in effect, a shortcut. It means that you have faith in something, or someone, and have stopped double-checking on all expectations.
Lean Terms
Genchi Genbutsu
“Genchi genbutsu” is a Japanese term that loosely translates to “go and see”. Essentially, it means to go to the actual spot where actual work is happening on the actual product to confirm your conclusions. Similar to the term “go to gemba“, the spirit of genchi genbutsu is to avoid Read more…
Lean Terms
Indirect Costs
Indirect costs are those expenses that are not directly attributable to a single cost center or cost object (product line, service, etc.) Indirect costs may include shared resources or overhead. Administrative costs, website costs, IT infrastructure, and similar expenses fall into this category. One of the big challenges with indirect Read more…
Lean Terms
SMART Goals
“SMART” is a commonly used mnemonic device that helps you set effective goals. SMART stands for… Specific Measurable Attainable Relevant Timely Detailed Explanation of SMART Goals Specific: Goals should be well-defined and unambiguous. The person or group the goal is assigned to should also be specified. Measurable: There has to Read more…
Lean Terms
Soft Savings
Soft savings are the intangible benefits of continuous improvement. Contrast this with hard savings which are those that can be directly pointed to as a line item on some sort of financial record such as a receipt or an invoice. Soft savings include things like reduced frustration, improved job satisfaction, Read more…
Lean Terms
Hard Savings
Hard savings are those that are directly linked to reducing to an actual expense. There should be no confusion about how much was actually saved, as there is an invoice, payroll stub, bill, receipt, or the like associated with the expense. Even though there is a specific, quantifiable expense, there Read more…
Lean Terms
SWOT Analysis
SWOT analysis stands for strengths, weaknesses, opportunities, and threats. It is a structured approach for assessing a project, new business venture, ongoing concern, or similar situation. By itself, SWOT analysis has limited utility. It has much more value when used with a purpose, such as a product launch, an annual Read more…
Lean Terms
Break-Even Point
The break-even point is the point (number of units sold) where the company can “break-even” and start earning profit. When a product or service is sold to a customer, the company incurs both fixed and variable costs. Fixed costs are the same regardless of the number of units sold. Variable Read more…
Nuts & Bolts Guide: Section
Build Relationships (Principle)
“It’s just business.” That has to be one of the all-time worst expressions to come from the corporate world. The intent is to make people feel better about themselves when they are hurting others in order to get ahead. If you read into those three little words, the meaning is Read more…
Nuts & Bolts Guide: Section
Principles and Values
If you have done more than a simple cursory search about continuous improvement, you will probably have come across a discussion about guiding principles or values. Unfortunately, the use of those words, principles and values, is not consistent. This section attempts to provide clarity regarding these terms.
Prerequisites
None.
Section Details
Estimated Time for Section: <1 Day
Difficulty: Low
Risk: Low
Materials Required
- No special materials required
Lean Terms
WIFM?
“WIFM” is a near-acronym for “What’s in it for me?” People tend to be rather logical, cause-and-effect types of creatures. They act when there is a reason to act. The basic premise of this acronym is that when that result of an action is in the best interest of a Read more…
Lean Terms
Relationships
A strong continuous improvement culture requires extensive teamwork, and teamwork requires strong relationships. First of all, let’s start by defining what a relationship is. And its surface, a relationship is simply the way people or organizations behave toward each other. But there is also a deeper layer to relationships. They Read more…