Every continuous improvement project should start with data collection. Unfortunately, when that data is collected with a notion of how the results should look, not surprisingly, the results often come out as they are expected to. It is easy to introduce bias into a data collection effort, if you are Read more…
People make decisions every day about what tasks to add to their schedule. They basically have two choices. They can do the important stuff, or they can take on the urgent stuff. Urgent things are due immediately, and often have people hounding the taskee to get them done. Important things Read more…
People often hear what they think should be said, not the words that are actually spoken. This comes from the tendency of people to think faster than they talk. A listener makes assumptions about what they expect because their minds race ahead. This can be especially problematic when you misinterpret Read more…
Days sales outstanding is a measure of how effective an organization is at getting paid. DSO indicates how many days of sales are still left uncollected. Obviously, an excessively high number means a lot of cash is tied up in the cost of producing and shipping products. On the surface, Read more…
Days sales of inventory (DSI) is an accounting measure that gives an idea of how much inventory is on hand in a company. A large number means the company is generally inefficient at turning raw materials into profit. The formula for DSI is: The average inventory is calculated as follows: Read more…
The 1/3 – 2/3 rule of planning simply says that leaders should take a third of the time until a deadline to make a plan, and then provide their subordinates with the remaining time to develop their own plans and execute them. It is a simple rule of thumb that Read more…
Every company that is truly committed to continuous improvement has its decisions based in fact. That means loads of information. Another characteristic of those same organizations is that they try to empower and engage their employees. Sometimes, the combination of these two factors can make a person feel like he Read more…
Communication is the act of transferring information and ideas from person to person. It comes in many forms. Face-to-face conversations. E-mails. Phone. Voicemail. Non-verbal communication (i.e. rolling of eyes). Pictures painted on the walls of caves. Even chalk marks on park benches can be a form of communication between covert Read more…
The Policy Deployment Bowler is used to track progress on the targets shown on a Policy Deployment Matrix. In policy deployment, 3 to 5 year strategies are turned into annual objectives. To meet those objectives, leaders establish improvement priorities, which generally require new processes. If the progression through policy deployment Read more…
In continuous improvement, you often have to go out and collect information from people. Sometimes it is from observations. Often, though, you will be speaking directly to people doing the process, and you will be asking them questions. Keep in mind one important distinction. Interviews generally seek answers. Interrogations seek Read more…
When using drawers to store equipment, one expression stands out: Out of sight, out of mind. Things in a drawer tend to get piled up, misplaced, and forgotten about. Drawers take time to open and close, and slow down processes. They hide things. Bottom line: Drawers are fine for storage, Read more…
The terms “back office” and “front office” refer to customer contact. Those that have direct customer contact are the front office. Others who work in administrative roles are the “back office”. The terms originally came from the physical layout of an office building, but with the advent of improved communication, Read more…