Standard Work - A Component of Lean Management

Standard Work, also called Standard Operating Procedures or SOP’s, are a goal of most organizations and a key component of Lean Management. There are many misconceptions about Standard Work that hinder the adoption of these best practices.
Here are my top 5 observed arguments against SOP’s:
1. Standard Work is too restrictive. (I don’t want to use my right hand to open the jar.)
2. Standard Work limits creativity. (If you write SOP’s the improvement stops.)
3. Standard Work is often wrong. (We don’t do it that way anymore.)
4. Standard Work is not easy to understand. (I can’t find the “help” key on the computer.)
5. Standard Work takes too long to create. (I am too busy doing my job to write it down.)
And the BONUS, and often unsaid; argument I have encountered –“If I help write Standard Work, they will replace me!”

For ease of writing and possibly ease of your reading, I will address these issues in separate articles. Let’s take on the bonus argument first. Experienced workers are often concerned about job security. Writing down what they do may sound exactly like, “Tell us what you do so we can replace you.” Oh, and by replace we mean fire you. I have met very few workers that are really interested in getting replaced, much less fired. So the real issue here has nothing to do with creating a best practice, it is all about ensuring the worker is secure in their position and employment status. For many years the efficiency and improvement efforts have specifically stated reduction of headcount as a goal. This is not very encouraging to the workers. As a former General Manager, I remember trying to reduce labor cost. The workers always saw this as headcount reduction, while I approached it as freeing employees to do more value added work. This could be the classic “glass is half full or half empty” argument.
There are two ways to overcome this misconception; the workers can trust the company’s efforts to use Standard Work are not about headcount reduction or the company can demonstrate commitment to assuring job security while implementing Standard Work. I believe the best option is to do both. I have seen contracts written in organizations that clearly state; “No employee will be eliminated as a result of the improvement achieved through Standard Work implementation.” People often base their trust in others on past experiences. If you do not have a record of demonstrating employment security in the past, a written commitment may be necessary.
There are many benefits of using Standard Work – You must include removing misconceptions in your implementation strategy.

No Longer Give Allowance

How does an allowance relate to adding value or improving?

As a child, my parents dabbled in giving me an allowance. I had a base amount given to me each week for doing assigned tasks and I could earn extra by completing additional chores. We even set up a checkbook type notebook with debits and credits. What a grand idea - until it failed.

Allowances have a basic flaw. Often allowance means giving something for nothing. Let's say you were to give your child an allowance for making their bed each day. What is the value for which you are paying? I believe it has nothing to do with making the bed, but it is about teaching accountability. When was the last time a worker was paid for cleaning their desk each day? And has anyone ever been fired for not cleaning their desk? Not cleaning your desk or making your bed is simply a symptom of lack of accountability. What you really desire is accountability.

Now, where does accountability fit into the world of value? Accountability is making oneself liable for providing value. In other words; if my son painted our house, he would be providing value - something I would gladly pay to have done. Being accountable means delivering that value within the expectations of SQDC. Without accountability, the value will disappear. Using a poor quality paint, not finishing before he heads back to college or spending $30,000 on an air sprayer system reduces the value for which I will pay my son.

Dave Ramsey has a fabulous perspective on allowances - he doesn't give them. He says, "I won't pay my children for anything I wouldn't pay another person to do." Giving you kids money for taking out the trash will only teach them to become trash men.

The next time you think about giving an allowance, ask yourself, "what is the value I am trying to receive?" If you can clearly define the value you are seeking, then paying for that value becomes easier. We are often let down when we don't define the value sought and it comes time to pay. My childhood allowance system failed because it was set up to reward me for things that did not provide value to my parents (the people paying) and was really about adding value to me (the person receiving the pay). Wouldn't that be grand - you receive the value and get paid to do it!

When searching the web for "Allowances," I came across this game called "Allowance."

I am not rushing out to buy it. The game is out of stock any way. Humorous isn't it.

Becoming a Complimenter

Optimism is often described as seeing the glass as half full of water. Pointing out things with an optimistic attitude is a path to becoming a complimenter. Not sure if that is a word or not, but that is what I will call a person who gives compliments. People with a natural ability to compliment have always amazed me. They make it seem so easy and always seem to have the compliment at the opportune time to boost the confidence of a team or individual. There have been many books that have highlighted the value of compliments (although the authors may use a different word: encouragement, positive feedback, rewards, etc.) The Inspire Project at Penn State even produced the poster shown on the right to list examples of compliments for children to use.

Compliments add value to the recepient by communicating to them the things they are doing right. It also helps build self esteem and self confidence which everyone needs to be successful. Coaching is most effective when it includes compliments. Coaches will lose effectiveness when all they do is criticize. Balancing compliments with criticism is vital to keeping students engaged. Whenever I give feedback, I end with a compliment to help the student feel successful and encourage them to come back for more feedback. A sensei is powerless if he cannot provide feedback. Growing is demonstrated when behavior changes after receiving feedback.

Beware of the darkside of complimenting. This is when a compliment is used with the intent to manipulate someone into doing what is not "the right thing." Stephen M.R. Covey would refer to this behavior as a "counterfeit" and can quickly lead to a loss of trust. Without trust, you can no longer influence others which will mean your compliments will no longer add value. A easy example of this is when an ex-friend pays you a compliment and you can hear in your head, "What is he trying to do?" or "Why is she saying that?"

I am inspired to look daily for things that others do around me and give compliments generously. It may be good service at a restraunt or just a smile at the toll booth. Practice compliments and it will become easier to be a Complimenter.

Thank you for taking the time to learn about complimenting, you are an inspiration to me.

Ideas - Continuing to Success

So, you have the idea - what you do now? An idea adds value when it is implemented. That is why I hold all rewards for ideas until after they are implemented. If you have an idea and have taken the time to write it down, now we move to the validation step. To be valid an idea must improved SQDC (see previous post for description of SQDC). If the idea is valid then you immediately move to implementation. If there is any question as to if the idea is valid just ask a fellow team member or your supervisor. It is in these discussions that the idea may be refined. For example, I might have the idea to purchase a small ladder to help me reach a shelf. A team mate may recommend a step stool because it is less expensive and lighter. Another team member may recommend building a small platform or cutting the legs down on the shelf. All three achieve the goal of helping me reach the shelf, we must just decide which to implement. I try to respect the original idea of the person as much as possible.

Once the idea is validated, then you move to implementation. Ideas that meet the low cost/no cost rule can hopefully be implemented quickly. Less than two weeks is quickly for most organizations. There are 3 key things to define in the implementation plan - who is going to do what and when. That way, when no progress is being made on the idea, you know who to go ask. Follow up on the implementation on the defined commitment dates to keep the idea on track. My experience has been that someone will stop writing up ideas if they are waiting on older ideas to be implemented.

I have seen teams implement ideas at the rate of one idea per person per week. It should be easy to sustain one idea per person per month. Think about that, for an organization with 100 employees this means 1200 ideas could be implemented a year. Wow! This level of improvement will quickly result in significant operating improvements. Remember, to be valid an idea must improve SQDC.

Ideas - The Starting Point

Ideas are the starting point for continuous improvement.

So, where do ideas come from? My belief is that everyone has ideas. My experience has shown that 98% of employees can clearly state an idea they have for improving the workplace if you hand them an idea form and explain what an idea is.

So, what is an idea? An idea is something that improves Safety, Quality, Delivery or Cost (SQDC) - the four measures of value. If it doesn't improve one or more of SQDC, it is not an idea. This is a point that many supervisors and managers miss. They will call it a "stupid" idea which will be the last idea you ever get from that person. By keeping people focused on things that add value, you will eliminate many wasted hours chasing personal preferences that can be disguised as ideas - like "Can we paint the ceiling pink?"

Can you run out of ideas? After implementing over 1500 ideas in a 6 year period, one organization thought they may have run out of ideas. You may be thinking to yourself - that organization must have been a mess at the start; the truth is that they were one of the most profitable divisions in the company. And, after going through a simple training on the plant's idea system 96 new ideas were generated in less than 24 hours. Please note, not all ideas can be million dollar savings. A simple 1 minute saving per day can add up quickly to an hour in a 12 week period. You should do the math to see the impact if every employee in your organization saved 1 minute a day and translate that to dollars using an average pay scale.

How much money should be spent on ideas? Most ideas are free. I have been amazed at what employees can make out of scrap materials found in the factory. I have found that a modest budget of about $50 per month for a team of 8-10 people can go a long ways. The point here is, go for the low cost/no cost ideas first. If an idea doesn't cost anything and it adds value, then the payback is immediate. Typically, $50 falls way below the capital spending budget process and can be quickly accessed within a manager's budget. Of course ideas will come up that cost more than $50, so I recommend you have some form of cost justification process to analyze these ideas. The challenge is to look for the free ideas first.

There are many more points to make about a successful idea system which I will post in the next week. Feel free to post comments or questions that may help improve an idea system.

Child Safety

Michigan State Law just changed to require children under the age of 8 years old, under 4'9" and 80 pounds to be in a booster seat when restrained in a car. This is a big change from past years when the law only required those under the age of 4 years old to be in car seats. (Note: the map shown has not yet been updated to reflect the most current laws.)

Why the big change? Child safety! For the better? Yes!

Car seat belts are primarily designed for adult occupants. The laws of physics come into play for person of smaller stature (a.k.a. children) in a car accident. Improper placement of the belt and shoulder harness with respect to the neck and abdomen will result in severe injury and booster seats are designed to achieve the correct placement.

What ever happened to "integrated child seats" being installed in Chrysler and Volkswagen vehicles? Anton's Law put in place back in 2002 called for a study of integrated seats and the finding were less than optimal (see NHTSA report to Congress). It appears that one style of integrated seat could not meet the many size requirements of growing children and did not incorporate a rear-facing option. There has been little fanfare since 2005 for this idea. While integrated child seats add value for safety and delivery, the cost and quality (sizing) were not adequate. In today's automobile market, it is a much easier alternative to purchase aftermarket seats to ensure proper fit for children.

So why the law? Isn't it just common sense? To quote many people, "Common sense is not that common." The value of protecting children in a car crash seems indisputable and yet parents still need a law to remind them. The effectiveness of this law will be measured in the upcoming years by severity of injuries for children involved in automobile accidents and the quantity of citations issued for violation of the law.

The Kaizen opportunity still exists, how do we protect our children where there is no chance of mistake? How do we poka yoke automobile restraints? This will be an engineering challenge for years to come.

Customers Will Pay for Value

I was just asked to participate in a survey by J.D. Power and Associates. This is what they wrote in the survey introduction, "J.D. Power and Associates, the recognized "Voice of the Customer" and a global leader in market research, wants the consumer electronics industry to hear your voice! Your opinions and feedback make a significant difference in helping manufacturers improve and enhance the experience of customers like you." Had they just read my last post?

I was unfortunately disqualified from the survey with the first question since I had not purchased a camera in the past 12 months. It appears that the 5 cameras I had purchased in the previous 3 years was not a consideration. (To put your mind at ease, 3 of the cameras I purchased were gifts for family members.) I expect they were targeting a very specific audience for the survey and information on cameras purchased more than 12 months ago were not within their target. That is only a theory, since I didn't get past the first question.

Did you also notice the caption on the picture, I found from Benjamin Moore? In case the print is too small on your computer, it says; "THE WAY WE SEE IT OUR CUSTOMERS ARE THE WINNERS." Benjamin Moore is clearly one of the parties recognizing J.D. Power and Associates as the Voice of the Customer.

J.D. Power and Associates describe in their website (JDPower.com) that they conduct "proprietary (commissioned) tracking studies." That means that their customers pay for the services they receive. I doubt that I have surprised you with that information. It does illustrate the point of this post - Customers will pay for value. A simple way to measure value is if and how much the customer is willing to pay. I will make a disclaimer here, that sometimes value is only perceived by the customer when they put down the cash to pay. Even I have had an expensive item break shortly after getting home. The value then shifts to how easily I can get a refund or replacement.

A quick check on your ability to add value is what are customers willing to pay. For items in the store, customers pay with money. For educators, their customers may be paying with their time and attention. Customer loyalty, a.k.a. return business, is another way customers will pay the service provider. Think about what value you are trying to add and ask yourself' "What are my customers willing to pay?" Ask yourself this question frequently and at times when you want to add value. I find this question not only applies to my business; it is particularly convicting when I am trying to add value to my family.

Improving What?

If kaizen is continuous improvement, what are you going to improve? I believe improvement has two sides that describe the same objective. There has been much written about eliminating waste (seven, eight or more forms depending who you read - more about this in the future); I prefer to see the other side - adding value. I believe this is the "glass is half full" view and also makes you seriously consider what is value. Just like answering a multiple choice question, you can pick the best answer or eliminate all the wrong answers. If you can define value properly, you are way ahead of the competition and picking the best answer.

Value should be defined by the person(s) you are trying to serve. Four easy measures of value are Safety, Quality, Delivery and Cost. To be honest, when I bought my first car; a 1970 Ford Maverick, cost was the only factor I considered. Today's consumers are much more savvy and will look elsewhere if you fail on any one of these four basic measures. Voice of the Customer is one format to work on properly defining value. Marketing research has been on to this concept for years. It goes wrong when those listening apply their own bias and don't really hear what the customer is saying. It is easy to get off track because we can believe we know what is best for our customers.

Companies and individuals who define value well have an edge over those who do not. Staying focused on adding value and watching for value shifts; usually in the form of raising the bar, is the next level of accomplishment.

Choose the right customer to help you define value and your life will be changed.

First Post - Kaizen

Welcome!
This is the first post as I seek to share my observations and lessons on kaizen. Loosely translated, kaizen means continuous improvement. It is a management philosophy that organizations seek to adopt in an effort to keep there organization relevant. I see kaizen as a way of life. Life provides the change, I seek to provide the "for the better." My topics will sometimes be business focused and sometimes personal. Thank you for taking the time to read this post and I hope that I can provide value for you through my future writings.