World-class status is not a singular stand-alone event.
I would like to define it as a journey through time for the company.
It is a series of events and activities, which add up to a process. It is a journey in search of new ways of working similar to those of Vasco-da –Gama and Christopher Columbus who set out to find new worlds.
The new worlds in our context will be work places. The new world allows the company to be competitive, best among the best in its class, profitable and fun to work for:
Some benefits of world-class excellence are as follows:
· Lower total cost of products
· Greatly improved supplier service
· Greatly improved quality
· Better design
· Improved administrative efficiency
· Increased productivity
A simple definition of a world class company is as follows: “ The right item* in the right place at the right time in the right quantity and meeting the customer (both internal & external) requirements each time and every time and everywhere in the company at the lowest summed up cost”.
Item* could mean information as well as material.
Many companies implementing JIT/TQC are surprised at the indirect effects than the obvious ones.
In this article we are going to go through a few materials related areas and discuss threadbare as to how one can be assessed by any assessment agency. One thing we need to digest is that assessment is not a faultfinding process. It is a process of judging the present levels of operations in the company and assessing with respect to industry best and then to customer requirement and finally to world class .
From here we target level 3 that is world-class status.
Please bear in mind that going from one level to another is not at all easy, as it seems on paper. There is a lot thinking, strategizing, tactical thinking and implementation and above all changing the mindsets, attitudes of the people. It is crucial to remember that we are dealing with different personalities who come from different cultures, have different upbringing, having different value systems, speak many dialects of the many regional languages and yet we have to unify these people to come together in the spirit of camaraderie and work to achieve world class status and sustain the company as a world class one.
As mentioned earlier I am going to walk you through the basics of some of the assessment criteria in the materials related area.
· Inventory turn over ratio: the measurement of inventory turn over ratio is perhaps the best method of determining progress towards world class. Many companies struggle to achieve four turns in a year i.e. Three months inventory on hand. Inventory turn over ratios must be raised to 18 turns, 22 turns, and 36 turns to be more competitive in the future.
Rm+wip+swp+sme
Fg
Performance measure
Target
Actual
Target
Actual
Formula used
Inventory turn overs/year
· Supplier delivery performance: actual receipt date in comparison to confirmed and required delivery date. Early receipt of goods, items and material is as costly as late deliveries. If you receive material one or two days ahead of schedule or requirement the inventories will rise and you will have to pay the cost of carrying it. As a thumb rule for assessment the higher the number of suppliers delivering on time and smaller the delivery quantity the more closer the organization will move towards world class. The goal to be set for each supplier or vendor is to deliver on the committed day or hour as the case may be.
Performance measure
Target
Actual
Formula used
Supplier delivery performance
· Record accuracy: in today’s scenario it is imperative that the information we use to plan is up to date and as close to reality as possible and we cannot use inaccurate information to plan.
· Just in time: being as good as our competitor is just not good enough. We need to analyze why we have problems and the reasons as to why our competitors don’t have them. Being the best is our goal. Some areas that come to mind are: - we must know that we are in a crisis of quality. We have grown used to rework and refurbishment, we are accustomed to sitting on huge levels of inventory. JIT is an approach, which seeks to minimize waste obsolesce and complexity while maintaining customer focus, satisfaction and high service levels. Steps in implementation of JIT are as follows:
· Understand the concepts of JIT. Attend seminars and visit implementing companies.
· Conclude that the philosophy of JIT is applicable to the business model and has the support of the top management.
· Work out a custom made strategy with quantified goals and time lines for achieving them.
· Appointment of project teams.
· Develop implementation schedules with budgets and timelines.
· Implement with everyone involved having knowledge of entire details of happenings.
· Involve key suppliers in the implementation process.
· Improve continuously
In order to implement JIT the following activities must be carried out as a part of the implementation process:
Ø Means and methods of controlling processes.
Ø Organizational restructuring to reduce specialist departments and replace them with cells as per the application.
Ø Simple and flexible job structures.
Ø Training programmes
Ø Process capabilities in manufacturing & process flow charts
Ø Process & methods to reduce change over time.
Ø Communication systems & channels at all levels
Ø Interfacing between internal & external customers and suppliers
Ø Goal setting and encouragement of continuous improvement across departmental barriers.
Ø Material flow controls across the internal supply mechanism.
Ø Factory scheduling
Some major benefits that could be achieved after implementation are:
· Improvement and strengthening of work culture
· Cost reduction achieved to operations would make the products more competitive.
· Inventory reduction and utilization of storage space for productive purposes.
· Improved customer satisfaction as a result of delivery of high quality products to the customer.
· Better relationship with suppliers & vendors.
Review of JIT level in a company would invite a probe as follows.
1) What is your organization’s vision?
2) Is there a JIT cell? Who are all involved?
3) Has any formal training been imparted?
4) Is there a panel making the make v/s buying decision? How does it function?
5) Is there a formal value analysis programme? How do you go about on a day-to-day basis?
6) Is there a prescribed way of problem solving?
7) Is there a formal budget and business plan?
8) Is there a formal sales plan?
9) Is there an aggregate planning procedure in existence?
10) Have areas of potential improvements been identified?
11) Are tracking and reporting of performance measures or performance indicators in place? Inventory consideration: reasons for inventory reduction programme are as follows:
Eliminate additional inventory carrying cost.
Expose factory within the factory
Minimize obsolesce
Respond to change so as to meet customer requirement quickly.
Eliminating high level of inventory will expose real problems and allow us to be more productive in our factories.
****************************************************************************************************************************************
Purchasing supply management : we need to possess the following supply system to be world class.
· Dedicated ancillary suppliers
· Supplier location as compact as possible.
· Knowledge of production plan and its scheduling to suppliers and vendors to ensure readiness to deliver as planned.
· Development of high quality suppliers who eliminate the need for incoming inspection.
· Innovative parts packaging and internal material handling system.
Lead-time, lot size reduction & set up reduction:
The above three areas are very vital and the following principles must be demonstrated at work.
1) Presence of fast changeover equipment, process or procedures in order to facilitate smaller lot size.
2) Procurement decisions must be based on quality and need rather than price.
In order to be world class, organizations must move from long production runs to flexible manufacturing.
1) Is there cost evaluation criteria established & adhered? If yes demonstrate and show proof in the following areas
a) Inventory carrying cost
b) Labour costs
c) Overhead costs
d) Product pricing
e) Other areas such as PLH &SME.
f) Packing
g) Carriage outwards
h) Scrapage and rework
2) Are demand forecast, production plans, reorder levels and safety stocks adequately reviewed and approved?
3) What is the schedule-planning horizon?
4) What is the requirement generation system and conversion into production plan?
Purchasing policy:
1) Has a purchasing policy manual been made and adhered to?
2) What are the purchase objectives?
3) What is the policy on vendor or supplier development?
4) Is there a system of approving purchase orders or scheduling agreements with specified authority levels? What are they?
5) Is there a supplier evaluation system? How often is it done? Does it relate to in totality to operations of the materials function?
6) Are source list and purchase requisition generated?
7) What is the system of receiving material?
8) What is the documentation process for receipts?
9) How are rejections handled at incoming and in process?
10) Does a system of EOQ, periodic and perpetual review system exist?
11) How are buyers assigned responsibility and authority?
12) Are there list of qualified, approved and certified suppliers in the system?
13) Are the buyer performance directly related to supply performance?
14) Is there a systematic approach to reduce the vendor base in a systematic manner?
15) What is the materials management organization structure?
· Material handling: as material moves in from the main gate through the incoming inspection there must be a pull that is attracting the material towards the manufacturing and obviously to the bonded storeroom.
A litmus test would be as follows.
1) What system is used to track inventories?
2) How are stores designed? Open or closed?
3) Is order picking and kitting done?
4) What are the storage principles used?
5) Are store orders /shop floor requisitions used?
6) Are work orders or shop orders handled as required?
7) Who does production planning?
8) Are lot-sizing concepts adhered to?
9) Are capacities planning techniques employed?
10) How is inventory measured and reported?
11) What inventory reports are generated and how are they acted upon?
12) What sort of equipment is used to handle material? Is it required?
13) What types of holding systems are utilized?
14) How are line balancing done with regards to kits during change over?
15) What is the time taken for vehicle to reach the store from the main gate? What is the vehicle holding time in the factory ?
16) How long does the vehicle wait outside the premises?
17) How do the warehousing personnel and security personnel track the vehicle?
18) How are the crates and other material handling equipment tracked by security?
19) How are material quantities verified?
20) What feed back system exists to report shortages?
21) What feed back system exists to inform management on defaulters?
22) What scrap disposal systems exists? Are forward auctions conducted by using e-sourcing tools?
23) How are inventories moved in the system?
And it goes on ……………………………………………………………….
Sunday, February 12, 2006
The Flow and Just in time
The flow is one of the most important concepts in understanding Kaizen, since there is always a flow of processes in all types of businesses providing products or services to customers.Looking at the flow provides us with crucial keys for KAIZEN.Take, for example, production systems, which can be classified into two major types: traditional system and just-in-time system.
Traditional SystemIn the former type, the planning department in the corporate office makes production plans based on sales forecast and issues production orders to the plant, which are converted into daily production schedules and forwarded to each process within the plant for execution.The shortcoming of this system is that the sales forecast never turns out to be correct.Sales people are afraid of having no products to sell when orders are received and, consequently, their forecast tends to be on the optimistic side, and production started on this basis inevitably leads to excess inventory.The problem is that, even to this day, majority of manufacturing companies subscribe to this system.It might be said that these companies are in the gambling business since they bet the future of the company on the most unreliable information.Many problems faced by today’s manufacturing companies are derived from this fact, and their problems are mostly intrinsic to the system they subscribe to, namely, traditional system.
Under the traditional system, it is difficult to devise a smooth flow, because production plans are made on forecast which is often untrue, and the plans are subject to change, thus, disrupting the smooth flow. Since batch production is employed in the traditional method, it is another reason why the flow is disrupted between processes.In other words, the traditional system is plagued with an intrinsic shortcoming of disrupted flows. Whenever the flow is disrupted, inventory is accumulated. The quality suffers. Delivery commitment to customers is not fulfilled. This leads to require far more managerial and administrative procedures, interventions and documentations (commonly called as indirect work) and these activities are often carried out in the corporate office far removed from Gemba.These interventions include such activities as production planning, production instructions, instruction of production changes, checking the level of inventory, logistics between processes, warehousing and many more. Further, it leads to require managers or persons to work on these “indirect” assignments at each process.Just –in-timeIn just-in-time production, on the other hand, all activities are triggered from the most reliable information.....customer orders,In the final and ideal stage of JIT , customer orders are forwarded directly to the final production process, namely, assembly process. Based on this information, the last process (assembling process) produces as many number of products as have been ordered, and ship them to the customer directly from the plant, without going through the warehouse. In the meantime, the information on the products assembled in the final process is fed back to each previous process through such means as one-piece-flow and KANBAN. Thus, the information which was started from the customer is forwarded throughout the entire processes, until it reaches the first process of production, namely, purchasing of raw materials and supplies.Take, for example, the case of purchasing of parts and components. Again, in the ideal form of JIT, the role of purchasing is to place orders only as many as have been consumed in the downstream processes, instead of placing orders in big volume, in advance, based on forecast. This is a natural outcome of the reverse flow of “pull” information which started from the customers. Thus, there is a long flow of information starting from customers and going through various processes, and finally, reaching purchasing , and suppliers.
Thus, the flow of information is much simplified in the case of JIT, making the job of managing the entire processes very easy, since one only has to look at the flow and take actions whenever the flow is disrupted. Taiichi Ohno, who was a driving force in developing Toyota production system at Toyota, once said that in JIT system, the “flow” manages the processes, while in the traditional system, management must manage the processes.The core activities of building JIT system is to engage in never-ending KAIZEN activities to make, shorten and minimize the flow, and as a result, to reduce the total lead time. Under this system, the first step is to review all the processes and try to make a flow by connecting separated processes. Once the processes are put together, the next step is to shorten the flow, and minimize the lead time.
Thus, in KAIZEN terms, any bottlenecks that disrupt the flow must be dealt with, and solving these bottlenecks are called KAIZEN. KAIZEN is an indispensable means to build JIT system. In short, any company that has subscribed to traditional system needs KAIZEN. Since the concept of “flow” has been virtually non-existent in the traditional system, KAIZEN is needed in almost all spheres of the business including production, must be carried out involving everybody and continually in other words on the daily basis.
Minimizing the flow offers the following advantages:1. It identifies MUDA (non-value-adding activities) of all kinds.2. It identifies unbalances between processes.3. It shortens the lead time of production, and realizes prompt delivery.
4. It reduces inventories of both work-in-processes and finished products.
The following are the conditions for making, shortening and maintaining the flow.
1. Standardization
As the traditional system is disconnected almost at every process, building JIT system comes class to negating and undoing almost every thing has been done in the past.
Every time a new way of doing the job has been established, it must be standardized so that Gemba does not go back to the same old way. There is always a strong tendency for Gemba people to go back to the same old way, to which they feel comfortable most. Even after KAIZEN was made to build a flow, the manager often finds on visiting the site several weeks later, without checking from time to time, everything has gone back to the old way.
This is also partly because they find the new way uncomfortable, and because they feel that what they had been doing was slighted.
Thus, standardizing the new process and making certain that everybody follows the new standards becomes a key factor to stabilize the new procedures.
2. 5S
As was detailed in the book, Gemba KAIZEN, 5S’s, the five steps of housekeeping, are one of the three pillars of Gemba KAIZEN, together with standardization and muda elimination.
From the standpoint of making a flow, 5S’s are absolutely necessary steps. To make a flow, between processes and shorten the distance and minimize the time of transporting materials within the shortest lead time, everything must be at the right place, which is 5S’s.
In case there is a distance between two processes, for materials to be brought to the next process to make a flow, first, the location to place the material in each process must be fixed. The volume of material must be minimized, avoiding a big batch.
An operator working on a work bench should have all the parts placed within arms’s reach for quick handling to shorten the cycle time.
These activities are all 5S’s.
In the contrast of JIT systems, 5S’s are conducted to make a most efficient flow, and the specific locations for all the materials represent the result of 5S’s activities, namely, standardized 5S’S.
3. MUDA elimination
Taiichi Ohno said that elimination of all types of MUDA was the TASK of Toyota Production System. He listed 7 types of MUDA which were commonly observed on the shop floor, but, in a broader sense, we can say that anything and everything that distracts the smooth flow, is MUDA to be eliminated.
4. Visual management
In the course of developing JIT system, many visual tools have been developed in Gemba so that Gemba people can identify abnormality in real time. Many of them have been developed to help Gemba people to recognize abnormality and take corrective actions in real time and on the spot.
When a total flow has been established, connecting all the processes in the plant, a manager in charge only needs to manage the flow, and Gemba workers are also empowered to maintain the flow. Visual management is the means by which Gemba people, both the manager and workers, assume the responsibility of making the products away from those who are managing Gemba from an isolated office.
5. Recognizing management structure
Once a flow has been established, the relations between production Gemba and other functions such as sales & marketing, physical distribution production planning, production instructions, engineering, quality, industrial engineering, R&D, purchasing, Human Resource Development and Finance go through profound changes.
The responsibility of production falls on the line management, and the roles of other functions are to serve the line. Where Gemba used to be regarded as a problem-child, where thins go wrong, and a good manager would rather not be involved in Gemba affairs. In JIT system, Gemba emerges assume all the necessary responsibilities and accountabilities.
For instance, quality used to be regarded as a job of quality professionals, but in the new role, it is the line management’s role to realize quality, and line management requests the assistance from quality.
In industrial engineering too, Gemba often comes up with a new idea and requests industrial engineering to cope with it.
For instance, Gemba may decide to install a low-cost, small equipment to be installed on the dedicated line for a slow-moving product. The engineering, then starts designing such equipment based on Gemba’s requirements.
On the other hand, once a flow is established, we only have to watch the flow, because the flow manages the processes as Ohno has said.When a flow is established and shortened, only one manager in charge is needed to oversee the entire flow of a particular line or product, and make certain that the flow is running smoothly without disruptions. In effect, JIT not only creates lean production system but also lean management system.In this case, the manager and workers in charge of the flow in Gemba become star players of the game, and are motivated to perform their tasks because they are in direct contact with the customer’s daily requirements and the situations in Gemba, and are empowered to manage them.
As the Gemba people begin to share more responsibilities, the management structure that hitherto has supported traditional system must undergo profound transformation.
Top management is required to review its management system and cross-functional activities with Gemba management in the center.
This is the reason why I believe that we should be using the term JIT management system, rather than JIT production system.
Last but not least, a few words on 5S and visual management. What are the purposes of these activities? My interpretation is that these activities are required in order to make, shorten and minimize the flow, and bring the managerial hegemony to Gemba. No matter how hard one may work to clean the work place with 5S, it is useless unless it leads to shorten the flow.
To sum up, the following shows the difference between the two systems.
Traditional Just-in-time
Production is based on forecast. Production is based on firm orders.
Changing plans is difficult in Gemba. Changing plans is easy in Gemba.
Production plans are dictated by Production plans are dictated by
corporate planning. customer orders.
Managing the flow is complex and The flow is simple and managed by
time consuming. the manager and employees in Gemba.
It requires much managerial and Decision is made in real-time and on the
administrative interventions to Gemba spot in Gemba.
by people who are physically and Gemba managers and employees are
mentally isolated. responsible for managing the entire
flow on their own.
Traditional SystemIn the former type, the planning department in the corporate office makes production plans based on sales forecast and issues production orders to the plant, which are converted into daily production schedules and forwarded to each process within the plant for execution.The shortcoming of this system is that the sales forecast never turns out to be correct.Sales people are afraid of having no products to sell when orders are received and, consequently, their forecast tends to be on the optimistic side, and production started on this basis inevitably leads to excess inventory.The problem is that, even to this day, majority of manufacturing companies subscribe to this system.It might be said that these companies are in the gambling business since they bet the future of the company on the most unreliable information.Many problems faced by today’s manufacturing companies are derived from this fact, and their problems are mostly intrinsic to the system they subscribe to, namely, traditional system.
Under the traditional system, it is difficult to devise a smooth flow, because production plans are made on forecast which is often untrue, and the plans are subject to change, thus, disrupting the smooth flow. Since batch production is employed in the traditional method, it is another reason why the flow is disrupted between processes.In other words, the traditional system is plagued with an intrinsic shortcoming of disrupted flows. Whenever the flow is disrupted, inventory is accumulated. The quality suffers. Delivery commitment to customers is not fulfilled. This leads to require far more managerial and administrative procedures, interventions and documentations (commonly called as indirect work) and these activities are often carried out in the corporate office far removed from Gemba.These interventions include such activities as production planning, production instructions, instruction of production changes, checking the level of inventory, logistics between processes, warehousing and many more. Further, it leads to require managers or persons to work on these “indirect” assignments at each process.Just –in-timeIn just-in-time production, on the other hand, all activities are triggered from the most reliable information.....customer orders,In the final and ideal stage of JIT , customer orders are forwarded directly to the final production process, namely, assembly process. Based on this information, the last process (assembling process) produces as many number of products as have been ordered, and ship them to the customer directly from the plant, without going through the warehouse. In the meantime, the information on the products assembled in the final process is fed back to each previous process through such means as one-piece-flow and KANBAN. Thus, the information which was started from the customer is forwarded throughout the entire processes, until it reaches the first process of production, namely, purchasing of raw materials and supplies.Take, for example, the case of purchasing of parts and components. Again, in the ideal form of JIT, the role of purchasing is to place orders only as many as have been consumed in the downstream processes, instead of placing orders in big volume, in advance, based on forecast. This is a natural outcome of the reverse flow of “pull” information which started from the customers. Thus, there is a long flow of information starting from customers and going through various processes, and finally, reaching purchasing , and suppliers.
Thus, the flow of information is much simplified in the case of JIT, making the job of managing the entire processes very easy, since one only has to look at the flow and take actions whenever the flow is disrupted. Taiichi Ohno, who was a driving force in developing Toyota production system at Toyota, once said that in JIT system, the “flow” manages the processes, while in the traditional system, management must manage the processes.The core activities of building JIT system is to engage in never-ending KAIZEN activities to make, shorten and minimize the flow, and as a result, to reduce the total lead time. Under this system, the first step is to review all the processes and try to make a flow by connecting separated processes. Once the processes are put together, the next step is to shorten the flow, and minimize the lead time.
Thus, in KAIZEN terms, any bottlenecks that disrupt the flow must be dealt with, and solving these bottlenecks are called KAIZEN. KAIZEN is an indispensable means to build JIT system. In short, any company that has subscribed to traditional system needs KAIZEN. Since the concept of “flow” has been virtually non-existent in the traditional system, KAIZEN is needed in almost all spheres of the business including production, must be carried out involving everybody and continually in other words on the daily basis.
Minimizing the flow offers the following advantages:1. It identifies MUDA (non-value-adding activities) of all kinds.2. It identifies unbalances between processes.3. It shortens the lead time of production, and realizes prompt delivery.
4. It reduces inventories of both work-in-processes and finished products.
The following are the conditions for making, shortening and maintaining the flow.
1. Standardization
As the traditional system is disconnected almost at every process, building JIT system comes class to negating and undoing almost every thing has been done in the past.
Every time a new way of doing the job has been established, it must be standardized so that Gemba does not go back to the same old way. There is always a strong tendency for Gemba people to go back to the same old way, to which they feel comfortable most. Even after KAIZEN was made to build a flow, the manager often finds on visiting the site several weeks later, without checking from time to time, everything has gone back to the old way.
This is also partly because they find the new way uncomfortable, and because they feel that what they had been doing was slighted.
Thus, standardizing the new process and making certain that everybody follows the new standards becomes a key factor to stabilize the new procedures.
2. 5S
As was detailed in the book, Gemba KAIZEN, 5S’s, the five steps of housekeeping, are one of the three pillars of Gemba KAIZEN, together with standardization and muda elimination.
From the standpoint of making a flow, 5S’s are absolutely necessary steps. To make a flow, between processes and shorten the distance and minimize the time of transporting materials within the shortest lead time, everything must be at the right place, which is 5S’s.
In case there is a distance between two processes, for materials to be brought to the next process to make a flow, first, the location to place the material in each process must be fixed. The volume of material must be minimized, avoiding a big batch.
An operator working on a work bench should have all the parts placed within arms’s reach for quick handling to shorten the cycle time.
These activities are all 5S’s.
In the contrast of JIT systems, 5S’s are conducted to make a most efficient flow, and the specific locations for all the materials represent the result of 5S’s activities, namely, standardized 5S’S.
3. MUDA elimination
Taiichi Ohno said that elimination of all types of MUDA was the TASK of Toyota Production System. He listed 7 types of MUDA which were commonly observed on the shop floor, but, in a broader sense, we can say that anything and everything that distracts the smooth flow, is MUDA to be eliminated.
4. Visual management
In the course of developing JIT system, many visual tools have been developed in Gemba so that Gemba people can identify abnormality in real time. Many of them have been developed to help Gemba people to recognize abnormality and take corrective actions in real time and on the spot.
When a total flow has been established, connecting all the processes in the plant, a manager in charge only needs to manage the flow, and Gemba workers are also empowered to maintain the flow. Visual management is the means by which Gemba people, both the manager and workers, assume the responsibility of making the products away from those who are managing Gemba from an isolated office.
5. Recognizing management structure
Once a flow has been established, the relations between production Gemba and other functions such as sales & marketing, physical distribution production planning, production instructions, engineering, quality, industrial engineering, R&D, purchasing, Human Resource Development and Finance go through profound changes.
The responsibility of production falls on the line management, and the roles of other functions are to serve the line. Where Gemba used to be regarded as a problem-child, where thins go wrong, and a good manager would rather not be involved in Gemba affairs. In JIT system, Gemba emerges assume all the necessary responsibilities and accountabilities.
For instance, quality used to be regarded as a job of quality professionals, but in the new role, it is the line management’s role to realize quality, and line management requests the assistance from quality.
In industrial engineering too, Gemba often comes up with a new idea and requests industrial engineering to cope with it.
For instance, Gemba may decide to install a low-cost, small equipment to be installed on the dedicated line for a slow-moving product. The engineering, then starts designing such equipment based on Gemba’s requirements.
On the other hand, once a flow is established, we only have to watch the flow, because the flow manages the processes as Ohno has said.When a flow is established and shortened, only one manager in charge is needed to oversee the entire flow of a particular line or product, and make certain that the flow is running smoothly without disruptions. In effect, JIT not only creates lean production system but also lean management system.In this case, the manager and workers in charge of the flow in Gemba become star players of the game, and are motivated to perform their tasks because they are in direct contact with the customer’s daily requirements and the situations in Gemba, and are empowered to manage them.
As the Gemba people begin to share more responsibilities, the management structure that hitherto has supported traditional system must undergo profound transformation.
Top management is required to review its management system and cross-functional activities with Gemba management in the center.
This is the reason why I believe that we should be using the term JIT management system, rather than JIT production system.
Last but not least, a few words on 5S and visual management. What are the purposes of these activities? My interpretation is that these activities are required in order to make, shorten and minimize the flow, and bring the managerial hegemony to Gemba. No matter how hard one may work to clean the work place with 5S, it is useless unless it leads to shorten the flow.
To sum up, the following shows the difference between the two systems.
Traditional Just-in-time
Production is based on forecast. Production is based on firm orders.
Changing plans is difficult in Gemba. Changing plans is easy in Gemba.
Production plans are dictated by Production plans are dictated by
corporate planning. customer orders.
Managing the flow is complex and The flow is simple and managed by
time consuming. the manager and employees in Gemba.
It requires much managerial and Decision is made in real-time and on the
administrative interventions to Gemba spot in Gemba.
by people who are physically and Gemba managers and employees are
mentally isolated. responsible for managing the entire
flow on their own.
Friday, September 16, 2005
Determination- a quality we must possess.
funduthoughts
In our day-to-day life as professionals we come across many obstacles.
Obstacles of different types.
Some of us encounter jealous colleagues. Some of us have nagging bosses.
In order to succeed we need to take all such obstacles in our strides and stay on our path towards our goal.
We need to focus on our goal.
We need to develop a trait called “determination” to help us in our journey.
Determination makes up for the lack of many other qualities, which we do not possess.
As human beings none of us are perfect. We need to identify our core competencies and work on them, so also we need to target our weaknesses and work hard to reduce their negativity on our approach if not eliminate them out totally.
Reading this article is very easy as all you need to do is to briskly run through the words that I have put down.
Remember it took me a long time to pen this article for you. I spent a long time on my couch going through the notes I made over a period of time. I woke up at 5.10 am for the past three days in order to find a logical way of putting down my thoughts for you to read and all through my journey from the time the idea germinated in my mind to the actual execution it was “determination” that guided me the way through the pathways of work to the end. The golden rule is “never give up” once you have made up your mind.
Going from one level to another causes pain. Pain is both physical and physcological.
We need to be cautious as going from one level to another costs something and we need to bear that little something. It is said that there is no gain without pain.
The difference between success and failure is wafer thin and it is the right proportion of “determination” to succeed that distinguishes between the winners and losers. Winners don’t like to do stuff so also losers don’t like to do stuff. But winners just do stuff and get on with life in spite of their personal dislike. This is the difference and it is determination that drives this spirit. Winners put in more than 100% always and thus succeed.
It is my opinion that there is nothing that can be second or third. It is either you have got the top rung or you have lost.
In our formative years our involvement in sports and competitive extracurricular activities sets the pace for determination. More the involvement the more is the chance that we would bring in the competitive nature with us in whatever we do.
Just the other day while shopping at a mall I heard a child yelling out at her parents. I was astonished at what she said to her parents. She said either you love me or you don’t, if you love me then you surely will buy me this doll. The doll was an expensive one and it really must not have been affordable for the parents. That’s a different story all together. We need to really understand is that the child was determined to get the doll and she decided to give her best shot by using the strong tool called “love”.
Morally I don’t vouch for the child’s behavior but aren’t we all children?
At times it is really confusing as to what we call determination. To have determination we need to have a strong mind and to have a strong mind we need to have a healthy body.
We all know that body follows the mind. Hence mind is the temple of determination.
The thought of determination by itself is inert if it is not backed up by strong levels of energy generated by our “prana” which is the link between our body and mind.
Don’t we at some time in our life visit a close relative or a friend or an acquaintance and be awe struck by their huge mansion with expensive rugs, artistic paintings of snob value, modern furniture, modular kitchen. When we closely look at most of these homes we find that the items by themselves are really very exquisite in taste but as a whole there seems that some of the items are out of place and the house now looks unorganized. In comparison some other homes we visit are simple in their furniture and are really pleasing to look at, as there is an element of symmetry and simplicity about them.
Our minds too are such. We need to arrange our thoughts such that they are logical and can be worked upon. If there is a clutter of thoughts, ideologies and theories then we will not be able to deliver even though we are determined to achieve our goals.
To complete this article on determination one last area we need to work on in “getting into the zone”. “Zone” is the state of mind where we are in a different plane all together.
To explain the concept of “zone” let us consider an inform cricket batsman. An inform cricket batsman who has set into the game will see the ball as big as a football. His eye too has set in and he will drive, pull, sweep, square cut with elegance. He is totally focused on amassing runs for himself and his team. We often see on the television during live coverage that the batsman at the non-striker’s end walks up to the batsman and mutters something for which the usual response is a nod of the head. Do you really think that the batsman is aware of what is said to him? If your response is yes then you are sadly mistaken. The batsman has conditioned himself to receiving praises and what ever the non- striker says falls on his deaf years and he continues his game in a determined fashion to accumulate runs.
In our day-to-day life as professionals we come across many obstacles.
Obstacles of different types.
Some of us encounter jealous colleagues. Some of us have nagging bosses.
In order to succeed we need to take all such obstacles in our strides and stay on our path towards our goal.
We need to focus on our goal.
We need to develop a trait called “determination” to help us in our journey.
Determination makes up for the lack of many other qualities, which we do not possess.
As human beings none of us are perfect. We need to identify our core competencies and work on them, so also we need to target our weaknesses and work hard to reduce their negativity on our approach if not eliminate them out totally.
Reading this article is very easy as all you need to do is to briskly run through the words that I have put down.
Remember it took me a long time to pen this article for you. I spent a long time on my couch going through the notes I made over a period of time. I woke up at 5.10 am for the past three days in order to find a logical way of putting down my thoughts for you to read and all through my journey from the time the idea germinated in my mind to the actual execution it was “determination” that guided me the way through the pathways of work to the end. The golden rule is “never give up” once you have made up your mind.
Going from one level to another causes pain. Pain is both physical and physcological.
We need to be cautious as going from one level to another costs something and we need to bear that little something. It is said that there is no gain without pain.
The difference between success and failure is wafer thin and it is the right proportion of “determination” to succeed that distinguishes between the winners and losers. Winners don’t like to do stuff so also losers don’t like to do stuff. But winners just do stuff and get on with life in spite of their personal dislike. This is the difference and it is determination that drives this spirit. Winners put in more than 100% always and thus succeed.
It is my opinion that there is nothing that can be second or third. It is either you have got the top rung or you have lost.
In our formative years our involvement in sports and competitive extracurricular activities sets the pace for determination. More the involvement the more is the chance that we would bring in the competitive nature with us in whatever we do.
Just the other day while shopping at a mall I heard a child yelling out at her parents. I was astonished at what she said to her parents. She said either you love me or you don’t, if you love me then you surely will buy me this doll. The doll was an expensive one and it really must not have been affordable for the parents. That’s a different story all together. We need to really understand is that the child was determined to get the doll and she decided to give her best shot by using the strong tool called “love”.
Morally I don’t vouch for the child’s behavior but aren’t we all children?
At times it is really confusing as to what we call determination. To have determination we need to have a strong mind and to have a strong mind we need to have a healthy body.
We all know that body follows the mind. Hence mind is the temple of determination.
The thought of determination by itself is inert if it is not backed up by strong levels of energy generated by our “prana” which is the link between our body and mind.
Don’t we at some time in our life visit a close relative or a friend or an acquaintance and be awe struck by their huge mansion with expensive rugs, artistic paintings of snob value, modern furniture, modular kitchen. When we closely look at most of these homes we find that the items by themselves are really very exquisite in taste but as a whole there seems that some of the items are out of place and the house now looks unorganized. In comparison some other homes we visit are simple in their furniture and are really pleasing to look at, as there is an element of symmetry and simplicity about them.
Our minds too are such. We need to arrange our thoughts such that they are logical and can be worked upon. If there is a clutter of thoughts, ideologies and theories then we will not be able to deliver even though we are determined to achieve our goals.
To complete this article on determination one last area we need to work on in “getting into the zone”. “Zone” is the state of mind where we are in a different plane all together.
To explain the concept of “zone” let us consider an inform cricket batsman. An inform cricket batsman who has set into the game will see the ball as big as a football. His eye too has set in and he will drive, pull, sweep, square cut with elegance. He is totally focused on amassing runs for himself and his team. We often see on the television during live coverage that the batsman at the non-striker’s end walks up to the batsman and mutters something for which the usual response is a nod of the head. Do you really think that the batsman is aware of what is said to him? If your response is yes then you are sadly mistaken. The batsman has conditioned himself to receiving praises and what ever the non- striker says falls on his deaf years and he continues his game in a determined fashion to accumulate runs.
Tuesday, September 6, 2005
gush of thoughts
It surely wasn’t the gusts of cold breeze sweeping across the bedroom that awoke me this morning.
Perhaps it was the sweet fragrance of jasmine that the languid wings of breeze carried onto themselves into my nostrils.
I rose from my bed and stretched my self real well. The stretch was a great sensation and is a ritual I abhor to skip each morning.
As I slipped into my “ mojhe”(kholapure styled leather slip ons) I pondered as to what the new day would bring to me.
I ambled across the ceramic floor of the room to the bathroom I could feel the gushes of cold breeze sweeping across the room onto my bare hairy chest and into my locks of hair on my head.
As I picked up my toothpaste and groped for the toothpaste a thought just flashed in my mind. “We live in a world that often focuses on the importance of making money.
For many people, it has become their obsession. . But for many of us, we have a stronger inner need, a desire for peace at home.”
I said to myself “Do you think for one minute that this thought is occurring to you
this moment as a result of an accident? Not a chance! You need to pay
attention to this immediately - your happy and abundant life may depend on
it. There are no accidents in life, and just like your life has a purpose, so
does this time sensitive message.
It is a rare occasion when something comes along so powerful and so deep
that you can literally have the best part of you awakened and reveals the
magnificence that your life is meant to be.
The purpose of this thought I reckoned is to introduce you to something that will lead
you along a beautiful pathway to a heavenly life. Was it??
I pondered deeply as I was executing those long stokes with the brush on my molars How can I make mylife happy? .
The heap of clothes in the plastic net hold on reminded me of by broken washing machine. Eureka, eureka, it dawned to me –another Brand new washing machine.
All I did was to give the dealer a call and as of today my wife operates the machine and has also taught the housemaid the complete operation.
After being poorer by eleven thousand rupees I still don’t rue the decision as whenever I move round in my house my wife flashes me the big smile.
Moral: TO HANDLE UR SELF USE UR HEAD TO HANDLE OTHERS USE UR HEART.
Perhaps it was the sweet fragrance of jasmine that the languid wings of breeze carried onto themselves into my nostrils.
I rose from my bed and stretched my self real well. The stretch was a great sensation and is a ritual I abhor to skip each morning.
As I slipped into my “ mojhe”(kholapure styled leather slip ons) I pondered as to what the new day would bring to me.
I ambled across the ceramic floor of the room to the bathroom I could feel the gushes of cold breeze sweeping across the room onto my bare hairy chest and into my locks of hair on my head.
As I picked up my toothpaste and groped for the toothpaste a thought just flashed in my mind. “We live in a world that often focuses on the importance of making money.
For many people, it has become their obsession. . But for many of us, we have a stronger inner need, a desire for peace at home.”
I said to myself “Do you think for one minute that this thought is occurring to you
this moment as a result of an accident? Not a chance! You need to pay
attention to this immediately - your happy and abundant life may depend on
it. There are no accidents in life, and just like your life has a purpose, so
does this time sensitive message.
It is a rare occasion when something comes along so powerful and so deep
that you can literally have the best part of you awakened and reveals the
magnificence that your life is meant to be.
The purpose of this thought I reckoned is to introduce you to something that will lead
you along a beautiful pathway to a heavenly life. Was it??
I pondered deeply as I was executing those long stokes with the brush on my molars How can I make mylife happy? .
The heap of clothes in the plastic net hold on reminded me of by broken washing machine. Eureka, eureka, it dawned to me –another Brand new washing machine.
All I did was to give the dealer a call and as of today my wife operates the machine and has also taught the housemaid the complete operation.
After being poorer by eleven thousand rupees I still don’t rue the decision as whenever I move round in my house my wife flashes me the big smile.
Moral: TO HANDLE UR SELF USE UR HEAD TO HANDLE OTHERS USE UR HEART.
Friday, August 19, 2005
Michael E. Porter and the Notion of Strategy
Michael E. Porter is the world's most influential business thinker, according to an Accenture study conducted in 2002. His book, Competitive Strategy: Techniques for Analyzing Industries and Competitors (Free Press, 1980) has been required reading on numerous Business Strategy courses ever since it was published over two decades ago. His notion of strategy has been debated and criticized in academic circles but Porter's ideas have often been adopted uncritically (and, perhaps, misunderstood) by business leaders throughout the world (Hammond, 2001).
According to Harfield (1998): "The question, what is strategic management?, often leads to the work of Porter. Strategic management texts inevitably contain his models, theories and frameworks which imply that they are ‘fundamental’ to the field. An historical journey through six prominent management\organization journals, Strategic Management Journal, Academy of Management Journal, Academy of Management Review, Journal of Management Studies, Organization Studies, Advances in Strategic Management, shows that Michael E Porter was not a constant contributor, in fact he is almost absent from the journals, but his work is often the study of empirical testing or theoretical debate ..."
In fact, Harfield argues that 'strategic management' is a myth with Michael E. Porter as its principal myth-maker.
Porter spent most of the 1990's concentrating on the competitive advantage of nations. Recently he has returned to look at corporate strategy and comments:
"It's been a bad decade for strategy. Companies have bought into an extraordinary number of flawed or simplistic ideas about competition -- what I call "intellectual potholes." As a result, many have abandoned strategy almost completely. Executives won't say that, of course. They say, "We have a strategy." But typically, their "strategy" is to produce the highest-quality products at the lowest cost or to consolidate their industry. They're just trying to improve on best practices. That's not a strategy." (Hammond, 2001).
He argues that this course has been adopted for three main reasons:
1. That people simply found strategy too difficult in the 1970s and 1980s - they had problems with it and it seemed artificial.
2. They were distracted by the pre-eminence of Japanese production techniques. This seemed to be about implementation rather than strategy: produce higher quality products at lower prices than your rivals and keep refining the process of production continuously.
3. More recently it was believed by many that change was happening too quickly for strategies to be of any value. Strategy was seen as rigid and inflexible in a world of speed and dynamic reinvention.
Porter argues that strategy and operational effectiveness need to be distinguished from each other:
"There's a fundamental distinction between strategy and operational effectiveness. Strategy is about making choices, trade-offs; it's about deliberately choosing to be different. Operational effectiveness is about things that you really shouldn't have to make choices on; it's about what's good for everybody and about what every business should be doing." (Hammond, 2001).
He contends that business leaders have concentrated too much on operational effectiveness rather than strategy. He points to the popular managerial enthusiasms of the late-twentieth century - total quality, just-in-time, business process re-engineeering - as examples of this. In his view, they were driven by the incredible competitiveness of the Japanese upto the 1990s when some companies 'turned the nitty-gritty into an art form'.
According to Harfield (1998): "The question, what is strategic management?, often leads to the work of Porter. Strategic management texts inevitably contain his models, theories and frameworks which imply that they are ‘fundamental’ to the field. An historical journey through six prominent management\organization journals, Strategic Management Journal, Academy of Management Journal, Academy of Management Review, Journal of Management Studies, Organization Studies, Advances in Strategic Management, shows that Michael E Porter was not a constant contributor, in fact he is almost absent from the journals, but his work is often the study of empirical testing or theoretical debate ..."
In fact, Harfield argues that 'strategic management' is a myth with Michael E. Porter as its principal myth-maker.
Porter spent most of the 1990's concentrating on the competitive advantage of nations. Recently he has returned to look at corporate strategy and comments:
"It's been a bad decade for strategy. Companies have bought into an extraordinary number of flawed or simplistic ideas about competition -- what I call "intellectual potholes." As a result, many have abandoned strategy almost completely. Executives won't say that, of course. They say, "We have a strategy." But typically, their "strategy" is to produce the highest-quality products at the lowest cost or to consolidate their industry. They're just trying to improve on best practices. That's not a strategy." (Hammond, 2001).
He argues that this course has been adopted for three main reasons:
1. That people simply found strategy too difficult in the 1970s and 1980s - they had problems with it and it seemed artificial.
2. They were distracted by the pre-eminence of Japanese production techniques. This seemed to be about implementation rather than strategy: produce higher quality products at lower prices than your rivals and keep refining the process of production continuously.
3. More recently it was believed by many that change was happening too quickly for strategies to be of any value. Strategy was seen as rigid and inflexible in a world of speed and dynamic reinvention.
Porter argues that strategy and operational effectiveness need to be distinguished from each other:
"There's a fundamental distinction between strategy and operational effectiveness. Strategy is about making choices, trade-offs; it's about deliberately choosing to be different. Operational effectiveness is about things that you really shouldn't have to make choices on; it's about what's good for everybody and about what every business should be doing." (Hammond, 2001).
He contends that business leaders have concentrated too much on operational effectiveness rather than strategy. He points to the popular managerial enthusiasms of the late-twentieth century - total quality, just-in-time, business process re-engineeering - as examples of this. In his view, they were driven by the incredible competitiveness of the Japanese upto the 1990s when some companies 'turned the nitty-gritty into an art form'.
thoughts...reflections
life is not always a cake walk.
not always easy
not always comfortable
and sometimes real hard.
things dont always happen as we like.
people dont always treat us as we would have liked(not that we treat people the way we would expected to be treated).
stuff does not happen as we wish.
we slog in and slog out and work real hard but get very few results.
grass seems greener on the other side.
it is at these times that we ought to pull ourselves togeather and put on our otherwise dormant thinking cap and get down to some serious reflecting time.
we need to succeed and for this we must try...........&try and try again.
we must believe in what we do and must not give up our conviction.
we must keep pushing, we must be patient.
problems ,difficulties ,catch 22 situations give us a chance to be stronger,better and tougher.
when we overcome our obstacles we we learn new things.we acquire new knowledge ,skills and new abilities .
we grow in experience.
we make the world around us a better place to live in.
so join me in making this world a better place to llive in.
work hard -party hard and leave a bit to luck and the rest to the supreme being.
not always easy
not always comfortable
and sometimes real hard.
things dont always happen as we like.
people dont always treat us as we would have liked(not that we treat people the way we would expected to be treated).
stuff does not happen as we wish.
we slog in and slog out and work real hard but get very few results.
grass seems greener on the other side.
it is at these times that we ought to pull ourselves togeather and put on our otherwise dormant thinking cap and get down to some serious reflecting time.
we need to succeed and for this we must try...........&try and try again.
we must believe in what we do and must not give up our conviction.
we must keep pushing, we must be patient.
problems ,difficulties ,catch 22 situations give us a chance to be stronger,better and tougher.
when we overcome our obstacles we we learn new things.we acquire new knowledge ,skills and new abilities .
we grow in experience.
we make the world around us a better place to live in.
so join me in making this world a better place to llive in.
work hard -party hard and leave a bit to luck and the rest to the supreme being.
Thursday, August 18, 2005
awakening to a new day-my thoughts
i awoke with a start this morn at 5.10am as there was a big commotion due to a fight between two packs of dogs.nothing could motivate me to get out of bed and drag myself to another day of rituals at the office.i somehow got up and went to my pc and switched on the suround sound so that i could wake up the neighbour hood too. "what a devilish ploy " ithought to myself to get even with neighbours who occupy my parking spot each time and everytime.i choose to play "lady in red " and backed that up with " smoke on the waters" followed bygreatest hits of eagles.refreshed i sat at my study table to complete the article i was penning " delegation -an art".well i would not mind awaking up every morning with a start if it will help me complete 23 articles that i am penning and yearing to find an end.well i thought to myself as was sipping some hot coffee from the mug (my wife had sort of emphatically thuded on the table some moments back),what is it that has driven me to complete the article?was it the early morning awakening ? was it the music? was it ?..........well as i swung my chair it occured to me ...to start a day on a no note basis is rather plain.as i had two choices either to go get it or laze.i chose the prior and am happy about it.
moral: failures happen because we dont try to do things.success occurs because we have an urge not to do things but we overcome this feeling and just do it.so positive attitude backed with postive actions will yeild positive results.
moral: failures happen because we dont try to do things.success occurs because we have an urge not to do things but we overcome this feeling and just do it.so positive attitude backed with postive actions will yeild positive results.
DELEGATION-AN ART
Can we delegate effectively to others? Do we like to delegate? Should we delegate?
Can we delegate when we are at the receiving end or when we consider our function a thankless job yet a glamorous way to be in limelight?
The strategy behind being able to delegate or being an able delegator is that there is an increased chance of moving up in an organization.
What really is delegation?
Where does the buck stop?
Many executives really confuse delegation with abdication of responsibility. It makes sense to be clear about certain fundamentals of delegation. I firmly believe any executive in the middle management (with reportees) having “fire in the belly” about climbing the corporate ladder must allocate time to correspond to relative importance of issues facing them. He must set a value added time/importance of the activity, function, job ratio and do justice to it. He must possess the ability to manage his time, so as to focus & channalise his energy on high value activity, job or tasks. This will finally determine his level of achievements.
This can be done only by delegating functions down the line. To relinquish your power to a reportee is not delegation. It is evasion of responsibility. Delegation in the true sense is entrusting another person a job together with authority to do it. Thus the delegate now acts on behalf of you like the emissaries of the days of yore or the diplomats of today.
If you happen to be the delegate then the function, task or job entrusted to you by someone in authority comes with the necessary power to complete it successfully.
Delegation saves your time and develops people while failure to delegate eats your time.
Delegation is necessary in organizations. What matters in organizations is doing such things well, but of course in organizations it is difficult to do simple things well. Delegation is one such glaring example. It either does not happen too well or it does not just enough. That is very regrettable as both sins of omission & commission consume rather than save a valuable commodity called “time”. Where you could reap double the crop per acre you end up with a bad crop and then blame it on…………………………… .
Some comments made to me over a period of the last twenty years in various functions I have worked like: manufacturing, ancillary development, projects, planning, exports, costing, customer support, marketing and materials management are as illustrated.
v “I strongly believe that information is power. I would rather keep really important information secret. If I hand that over then perhaps one will be able to displace me.”
v “When I was away with influenza for a week the entire place came to a halt, so you see I am indispensable to the firm”
v “I really and strongly believe in delegation but just seethe monkeys & clowns I have working for me”
v “Unless they are trained I will have to continue to carry two bulging briefcases”
v “Most of them have psychologically retired even though they are not drawing their pensions”
v “Even though I delegate they will not perform as I would have done so myself”
v “My boss will not keep coming to me and will he bypass me to my reportees if I delegate.”
Research has revealed 9 top reasons why delegation does not take place irrespective of tier of the management.
Delegating is a high risk activity which need risk assessment.
We enjoying doing these things so why do we delegate?
It is a very slow process
we don’t want to sit and think
we would like to be “on top of everything”
Will our subordinate displace us from our positions?
No one can do it better than or as good as I can?
No one will come to me for solutions in that area
Why do I bring him into limelight for no rhyme or reason? After all I’m the mentor.
We can delegate authority to do the job and hold the person accountable for the performance. If the activity is done in the right way and spirit it will generate a sense of responsibility in the delegate. As you are ultimately responsible for what happens or does not happen as an outcome. A corollary to the above is that sufficient control must be maintained in order to protect your ultimate accountability.
Leadership is the second responsibility that cannot be delegated.
In reality any great leader will not delegate his leadership to others as in doing so all he will be left is an empty title while the ethos of his job lies elsewhere.
Another important thing to remember is that as a delegator you cannot divest yourself of the accountability and leadership. Last but not the least you should never allow any one to decide what you should delegate and what you should not.
There are certain key factors that a delegator may consider and constantly review for delegating or not doing so.
v Complexity: the complexity or delicacy of function, activity or job determines whether to delegate or not. A&M, policy decisions on pricing or budgets are examples of areas where you may feel that you need to handle yourself. The more the challenge in uncharted waters the more you should attack yourself. Similarly where there is a chance of major repurcations for good or bad on profitability, do not delegate to any other person.
v Confidence: one is more comfortable to delegate if he can trust his subordinate. The trust encompasses the professional competence and personal qualities. One must make sure that he is not either optimistic or pessimistic in varying degrees about his subordinate in order to delegate. We need to work with them, talk to them, advice them, guide them, spend time with them, observe them support them and then reflect about them before forming our judgments. Some will need hand holding and walking through initially in the introductory phase, some would do an appropriate job with a little risk of any negative impact. The best are capable to understand the business model, company’s philosophy and work towards execution of the function without consequences or mistakes. Be forewarned that many leaders believe in intuition, but rest assured intuition could be misleading and decisions taken based on a haunch could be disastrous in the real sense of the word.’
v Availability of time: crisis situation where time is short must not be delegated. The time taken to explain, cross check if the matter is understood as required by you, and action initiated by the delegate may not be there to give.
v Future development: delegation is centered on the routine and administrative chunks of a function. One must be however careful not to delegate all administrative work and work only on leadership. As for me I make it point to delegate everything that can be defined. This gives me the time to keep the scores on the delegated jobs and freedom to spend time in exploring new avenues or chase opportunities that lie ahead. My work style encourages me to select jobs I know best and could supervise them and delegate these once first. As a practice I work on my present activities and keep reviewing those to see if the time is ripe enough to delegate them .If the time is just ripe them I go ahead and delegate the job and am in a position to take decisions and follow up.
The correct approach is to assign tasks & functions to others though you remain ultimately accountable. One needs to keep in mind to strike a balance between needs of the company and development needs of an individual. We often come across organizations where there are senior managers who do not want to delegate because they want to do it with out delegation. These people have risen from the ranks through sheer hard work. The problem commences when these people are promoted beyond their level of competence. Such organizations or departments loose their momentum as even a minor decision has to be taken at the helm.
Skills of a delegator
SKILL
REMARKS
1) Select the right people.
If the people are incompetent or unwilling to do the job even with training you should get rid of them. Having the right people to do the job is the basic need of delegation. Remember there never are bad soldiers but only bad officers.
2)training
How ever high profile performers you have in your rank and file all the delegates need to be trained.
Demonstrate the job
Get feedback
Get delegate to do it
Delegate does it on his/her own
Delegate reports back on completion.
3)Knowledge and reason
Training and delegation is 2- way traffic. The function, activity or job must be clearly communicated and authority specifically defined. The delegate needs to know policies and goal so that he knows what he is doing and why he is doing it.
4)Support service
Resist the temptation to plunge in.
When the delegate approaches you for a solution never give him the answer but lead him to it. The aim is to develop the delegate so that he can cope up and do well as you have in the past.
5)control
Check the progress in your own defined way. It is important to know that it is not abdication but control that is the name of the game.
To sum up
· Delegation begins with a sense of value. From there stems a strong desire to focus on priorities and delegate the rest as it will leave free time to think plan and act very effectively.
· Delegation is not abdication.
· Delegators often complain that they have two bulging briefcases to work with when their subordinates are running out of worthwhile work.
· To be giving people power to make decisions and act in your place requires courage, judgement and faith in others because at the end “the buck stops with you”.
· Delegation is a great motivator as it enriches the job and raises morale.
· Delegation does not save the organization’s time but it saves yours.
Can we delegate when we are at the receiving end or when we consider our function a thankless job yet a glamorous way to be in limelight?
The strategy behind being able to delegate or being an able delegator is that there is an increased chance of moving up in an organization.
What really is delegation?
Where does the buck stop?
Many executives really confuse delegation with abdication of responsibility. It makes sense to be clear about certain fundamentals of delegation. I firmly believe any executive in the middle management (with reportees) having “fire in the belly” about climbing the corporate ladder must allocate time to correspond to relative importance of issues facing them. He must set a value added time/importance of the activity, function, job ratio and do justice to it. He must possess the ability to manage his time, so as to focus & channalise his energy on high value activity, job or tasks. This will finally determine his level of achievements.
This can be done only by delegating functions down the line. To relinquish your power to a reportee is not delegation. It is evasion of responsibility. Delegation in the true sense is entrusting another person a job together with authority to do it. Thus the delegate now acts on behalf of you like the emissaries of the days of yore or the diplomats of today.
If you happen to be the delegate then the function, task or job entrusted to you by someone in authority comes with the necessary power to complete it successfully.
Delegation saves your time and develops people while failure to delegate eats your time.
Delegation is necessary in organizations. What matters in organizations is doing such things well, but of course in organizations it is difficult to do simple things well. Delegation is one such glaring example. It either does not happen too well or it does not just enough. That is very regrettable as both sins of omission & commission consume rather than save a valuable commodity called “time”. Where you could reap double the crop per acre you end up with a bad crop and then blame it on…………………………… .
Some comments made to me over a period of the last twenty years in various functions I have worked like: manufacturing, ancillary development, projects, planning, exports, costing, customer support, marketing and materials management are as illustrated.
v “I strongly believe that information is power. I would rather keep really important information secret. If I hand that over then perhaps one will be able to displace me.”
v “When I was away with influenza for a week the entire place came to a halt, so you see I am indispensable to the firm”
v “I really and strongly believe in delegation but just seethe monkeys & clowns I have working for me”
v “Unless they are trained I will have to continue to carry two bulging briefcases”
v “Most of them have psychologically retired even though they are not drawing their pensions”
v “Even though I delegate they will not perform as I would have done so myself”
v “My boss will not keep coming to me and will he bypass me to my reportees if I delegate.”
Research has revealed 9 top reasons why delegation does not take place irrespective of tier of the management.
Delegating is a high risk activity which need risk assessment.
We enjoying doing these things so why do we delegate?
It is a very slow process
we don’t want to sit and think
we would like to be “on top of everything”
Will our subordinate displace us from our positions?
No one can do it better than or as good as I can?
No one will come to me for solutions in that area
Why do I bring him into limelight for no rhyme or reason? After all I’m the mentor.
We can delegate authority to do the job and hold the person accountable for the performance. If the activity is done in the right way and spirit it will generate a sense of responsibility in the delegate. As you are ultimately responsible for what happens or does not happen as an outcome. A corollary to the above is that sufficient control must be maintained in order to protect your ultimate accountability.
Leadership is the second responsibility that cannot be delegated.
In reality any great leader will not delegate his leadership to others as in doing so all he will be left is an empty title while the ethos of his job lies elsewhere.
Another important thing to remember is that as a delegator you cannot divest yourself of the accountability and leadership. Last but not the least you should never allow any one to decide what you should delegate and what you should not.
There are certain key factors that a delegator may consider and constantly review for delegating or not doing so.
v Complexity: the complexity or delicacy of function, activity or job determines whether to delegate or not. A&M, policy decisions on pricing or budgets are examples of areas where you may feel that you need to handle yourself. The more the challenge in uncharted waters the more you should attack yourself. Similarly where there is a chance of major repurcations for good or bad on profitability, do not delegate to any other person.
v Confidence: one is more comfortable to delegate if he can trust his subordinate. The trust encompasses the professional competence and personal qualities. One must make sure that he is not either optimistic or pessimistic in varying degrees about his subordinate in order to delegate. We need to work with them, talk to them, advice them, guide them, spend time with them, observe them support them and then reflect about them before forming our judgments. Some will need hand holding and walking through initially in the introductory phase, some would do an appropriate job with a little risk of any negative impact. The best are capable to understand the business model, company’s philosophy and work towards execution of the function without consequences or mistakes. Be forewarned that many leaders believe in intuition, but rest assured intuition could be misleading and decisions taken based on a haunch could be disastrous in the real sense of the word.’
v Availability of time: crisis situation where time is short must not be delegated. The time taken to explain, cross check if the matter is understood as required by you, and action initiated by the delegate may not be there to give.
v Future development: delegation is centered on the routine and administrative chunks of a function. One must be however careful not to delegate all administrative work and work only on leadership. As for me I make it point to delegate everything that can be defined. This gives me the time to keep the scores on the delegated jobs and freedom to spend time in exploring new avenues or chase opportunities that lie ahead. My work style encourages me to select jobs I know best and could supervise them and delegate these once first. As a practice I work on my present activities and keep reviewing those to see if the time is ripe enough to delegate them .If the time is just ripe them I go ahead and delegate the job and am in a position to take decisions and follow up.
The correct approach is to assign tasks & functions to others though you remain ultimately accountable. One needs to keep in mind to strike a balance between needs of the company and development needs of an individual. We often come across organizations where there are senior managers who do not want to delegate because they want to do it with out delegation. These people have risen from the ranks through sheer hard work. The problem commences when these people are promoted beyond their level of competence. Such organizations or departments loose their momentum as even a minor decision has to be taken at the helm.
Skills of a delegator
SKILL
REMARKS
1) Select the right people.
If the people are incompetent or unwilling to do the job even with training you should get rid of them. Having the right people to do the job is the basic need of delegation. Remember there never are bad soldiers but only bad officers.
2)training
How ever high profile performers you have in your rank and file all the delegates need to be trained.
Demonstrate the job
Get feedback
Get delegate to do it
Delegate does it on his/her own
Delegate reports back on completion.
3)Knowledge and reason
Training and delegation is 2- way traffic. The function, activity or job must be clearly communicated and authority specifically defined. The delegate needs to know policies and goal so that he knows what he is doing and why he is doing it.
4)Support service
Resist the temptation to plunge in.
When the delegate approaches you for a solution never give him the answer but lead him to it. The aim is to develop the delegate so that he can cope up and do well as you have in the past.
5)control
Check the progress in your own defined way. It is important to know that it is not abdication but control that is the name of the game.
To sum up
· Delegation begins with a sense of value. From there stems a strong desire to focus on priorities and delegate the rest as it will leave free time to think plan and act very effectively.
· Delegation is not abdication.
· Delegators often complain that they have two bulging briefcases to work with when their subordinates are running out of worthwhile work.
· To be giving people power to make decisions and act in your place requires courage, judgement and faith in others because at the end “the buck stops with you”.
· Delegation is a great motivator as it enriches the job and raises morale.
· Delegation does not save the organization’s time but it saves yours.
Planning for just-in-time (JIT)
Basically JIT is a programme directed towards ensuring that the right quantities are purchased or produced at the right time, and that there is no waste in terms of material or money anywhere in our supply chain. JIT fits well under the TQM umbrella, for many of the ideas and techniques are very similar and, moreover, JIT will not work without TQM in operation. It is essentially:
· A series of operating concepts that allows systematic identification of operational problems.
· A series of technology –based tools for correcting problems following their identification.
An important outcome of JIT is a disciplined programme for improving productivity and reducing waste. This programme leads to cost-effective production or operation and delivery of only the required goods or services, in the correct quantity, at the right time and place. This is achieved with the minimum amount of resources – facilities, equipment, materials, and people. The successful operation of JIT is dependent upon a balance between the suppliers’ flexibility and the users’ stability, and of course requires total management and employee commitment and teamwork.
1
AIMS OF JIT
The fundamental aims of JIT are to produce or operate to meet the requirements of the customer exactly, without waste, immediately on demand. In some manufacturing companies JIT has been introduced as ‘continuous flow production,’ which describes very well the objective of achieving conversion of purchased material or service receipt to delivery, i.e. from supplier to customer. If this extends into the supplier and customer chains, all operating with JIT, a perfectly continuous flow of material, information or service will be achieved. JIT may be used in non-manufacturing in administration areas, for example, by using external standards as reference points.
The JIT concepts identify operational problems by tracking the following:
1. Material Movements – when material stops, diverts or turns backwards, these always correlate with an aberration in the ‘process.’
2. Material accumulations – these are there as a buffer for problem, excessive variability, etc., like water covering up ‘rocks’.
3. Process flexibility –an absolute necessity for flexible operation and design.
4. Value-added efforts – much of what is done does not add value and the customer will not pay for it.
2
THE OPERATION OF JIT
The tools to carry out the monitoring required are familiar quality and operations management methods, such as:
· Flowcharting
· Method study and analysis.
· Preventive maintenance.
· Plant layout methods.
· Standardized design.
· Statistical process control.
· Value analysis and value engineering.
But some techniques are more directly associated with the operation of JIT systems:
1. Batch or lot size reduction.
2. Flexible Workforce.
3. Kanban or cards with material visibility.
4. Mistake- proofing.
5. Pull-scheduling.
6. Set-up time reduction
7. Standardized containers.
In addition, joint development programmes with suppliers and customers will be required to establish long-term relationships and develop single sourcing arrangement that provide frequent deliveries in small quantities. These
can only be achieved through close communications and meaningful certified quality.
3
THE OPERATION OF JIT
There is clear evidence that JIT has been an important component of business success in the Far East and that it is used by Japanese companies operating in the West. Many European and American companies that have adopted JIT have made spectacular improvement in performance. These include:
· Increased flexibility (particularly of the workforce).
· Reduction in stock and work-in-progress, and the space it occupies.
· Simplification of products and processes.
These programmes are always characterized by a real commitment to continuous improvement. Organizations have been rewarded, however, by the low cost, low risk aspects of implementation, provided a sensible attitude prevails. The golden rule is to never remove resources – such as stock –before the organization is ready and able to correct the problems that will be exposed by doing so. Reduction of the water level to reveal the rocks, so that they may be demolished, is fine, provided that we can quickly get our hands back on the stock while the problem is being corrected.
Successive phases of JIT may well become self-financing by rapid simplification of systems and work flows, JIT must never be regarded at the intermediate stage as the ‘quick-fix’. Management must contemplate:
4
THE OPERATION OF JIT
1. Long implementation times – typically 5-7 years.
2. A total or company- wide quality and just-in-time management programme.
3. Never ending improvement and reduction of waste.
The primary objective of JIT is the improvement of quality through elimination of waste. It demands that inventory is kept minimum, for inventory costs (insurance, interest, obsolescence, etc.) can be as high as 26 per cent of stock value, and significant improvements in costs and quality can be achieved by the reduction of inventory. Defective parts, materials, and workmanship are detected promptly and quickly fed back to the producing process. Where the problems are identified and corrected on the spot. In addition to quality improvement, there is no requirement for a profusion of warehouses, fleets of forklift trucks, rows of racks, scores of employees, and piles of cash to purchase, handle, and move the inventory.
5
THE OPERATION OF JIT
In some engineering and process industry applications the major obstacle in producing small lots is the set-up times of equipment and machines. Long set-up time make the small lot size uneconomical so, clearly, cutting set-up times is one of the first tasks. This will also reduce equipment downtime; work-in-progress costs associated with obsolescence, materials handling and control, and quality control. Shorter set-up times also result in shorter lead times, which provides greater flexibility for processes to adapt to changes in the market demand and requirements.
6
THE KANBAN SYSTEM
Kanban is a Japanese word meaning visible record, but in the West it is generally taken to mean a card that signals the need to deliver or produce more parts or components. In manufacturing, various types of record cards, e.g. job orders or tickets and route cards, are used for ordering more parts in a push type, schedule-based system. In a push system a multi-period master production schedule of future demands is prepared, and a computer explodes this into detailed schedules for producing or purchasing the appropriate parts or materials. The schedules then push the production of the parts or components, out and onward. These systems, when computer-based, are usually called Material Requirements Planning (MRP) or the more recent Manufacturing Resource Planning (MRPII).
7
THE KANBAN SYSTEM
The main feature of the Kanban system is that it pulls parts and components through the production processes when they are needed. Each material, component, or part has its own special container designed to hold a precise, preferably small, quantity. The number of containers for each part is a carefully considered management decision. Only standard containers are used, and they are always filled with the prescribed quantity. There are two cards of Kanbans for each container. The production or P-Kanban serves the work centre producing the part, whereas the conveyance or C-Kanban serves the work centre using it. Each container travels between the two work centres and one Kandan is exchanged for another along the way. No parts may be made at any work centre may come to a halt rather than produce materials or parts not yet requested. The operators will engage in other activities, such as cleaning, maintenance, improvement or quality-circle project work when no P-Kanbans have been submitted. These hold-ups often help to identify and improve bottleneck situations.
8
PLANNING JUST-IN-TIME (JIT) MANAGEMENT
· JIT fits well under the TQM umbrella and is essentially a series of operating concepts that allow the systematic identification of problems, and tools for correcting them.
· JIT aims to produce or operate, in accordance with customer requirements, without waste, immediately on demand. Some of the direct techniques associated with JIT are batch or lot size reduction, flexible, standardized containers.
· JIT implementation requires the foundations of quality, low cost, minimum lead times, high flexibility, through the core techniques of pull scheduling, JIT purchasing, buffer stock removal, multifunction workforce and enforced improvement.
· As with TQM, a steering committee, a project manager and project teams are enforced improvement.
· Purchasing is an important feature of JIT. Long-term relationships with a few suppliers, or ‘co-producers’, are developed in networks of trust to provide quality goods and services.
· A series of operating concepts that allows systematic identification of operational problems.
· A series of technology –based tools for correcting problems following their identification.
An important outcome of JIT is a disciplined programme for improving productivity and reducing waste. This programme leads to cost-effective production or operation and delivery of only the required goods or services, in the correct quantity, at the right time and place. This is achieved with the minimum amount of resources – facilities, equipment, materials, and people. The successful operation of JIT is dependent upon a balance between the suppliers’ flexibility and the users’ stability, and of course requires total management and employee commitment and teamwork.
1
AIMS OF JIT
The fundamental aims of JIT are to produce or operate to meet the requirements of the customer exactly, without waste, immediately on demand. In some manufacturing companies JIT has been introduced as ‘continuous flow production,’ which describes very well the objective of achieving conversion of purchased material or service receipt to delivery, i.e. from supplier to customer. If this extends into the supplier and customer chains, all operating with JIT, a perfectly continuous flow of material, information or service will be achieved. JIT may be used in non-manufacturing in administration areas, for example, by using external standards as reference points.
The JIT concepts identify operational problems by tracking the following:
1. Material Movements – when material stops, diverts or turns backwards, these always correlate with an aberration in the ‘process.’
2. Material accumulations – these are there as a buffer for problem, excessive variability, etc., like water covering up ‘rocks’.
3. Process flexibility –an absolute necessity for flexible operation and design.
4. Value-added efforts – much of what is done does not add value and the customer will not pay for it.
2
THE OPERATION OF JIT
The tools to carry out the monitoring required are familiar quality and operations management methods, such as:
· Flowcharting
· Method study and analysis.
· Preventive maintenance.
· Plant layout methods.
· Standardized design.
· Statistical process control.
· Value analysis and value engineering.
But some techniques are more directly associated with the operation of JIT systems:
1. Batch or lot size reduction.
2. Flexible Workforce.
3. Kanban or cards with material visibility.
4. Mistake- proofing.
5. Pull-scheduling.
6. Set-up time reduction
7. Standardized containers.
In addition, joint development programmes with suppliers and customers will be required to establish long-term relationships and develop single sourcing arrangement that provide frequent deliveries in small quantities. These
can only be achieved through close communications and meaningful certified quality.
3
THE OPERATION OF JIT
There is clear evidence that JIT has been an important component of business success in the Far East and that it is used by Japanese companies operating in the West. Many European and American companies that have adopted JIT have made spectacular improvement in performance. These include:
· Increased flexibility (particularly of the workforce).
· Reduction in stock and work-in-progress, and the space it occupies.
· Simplification of products and processes.
These programmes are always characterized by a real commitment to continuous improvement. Organizations have been rewarded, however, by the low cost, low risk aspects of implementation, provided a sensible attitude prevails. The golden rule is to never remove resources – such as stock –before the organization is ready and able to correct the problems that will be exposed by doing so. Reduction of the water level to reveal the rocks, so that they may be demolished, is fine, provided that we can quickly get our hands back on the stock while the problem is being corrected.
Successive phases of JIT may well become self-financing by rapid simplification of systems and work flows, JIT must never be regarded at the intermediate stage as the ‘quick-fix’. Management must contemplate:
4
THE OPERATION OF JIT
1. Long implementation times – typically 5-7 years.
2. A total or company- wide quality and just-in-time management programme.
3. Never ending improvement and reduction of waste.
The primary objective of JIT is the improvement of quality through elimination of waste. It demands that inventory is kept minimum, for inventory costs (insurance, interest, obsolescence, etc.) can be as high as 26 per cent of stock value, and significant improvements in costs and quality can be achieved by the reduction of inventory. Defective parts, materials, and workmanship are detected promptly and quickly fed back to the producing process. Where the problems are identified and corrected on the spot. In addition to quality improvement, there is no requirement for a profusion of warehouses, fleets of forklift trucks, rows of racks, scores of employees, and piles of cash to purchase, handle, and move the inventory.
5
THE OPERATION OF JIT
In some engineering and process industry applications the major obstacle in producing small lots is the set-up times of equipment and machines. Long set-up time make the small lot size uneconomical so, clearly, cutting set-up times is one of the first tasks. This will also reduce equipment downtime; work-in-progress costs associated with obsolescence, materials handling and control, and quality control. Shorter set-up times also result in shorter lead times, which provides greater flexibility for processes to adapt to changes in the market demand and requirements.
6
THE KANBAN SYSTEM
Kanban is a Japanese word meaning visible record, but in the West it is generally taken to mean a card that signals the need to deliver or produce more parts or components. In manufacturing, various types of record cards, e.g. job orders or tickets and route cards, are used for ordering more parts in a push type, schedule-based system. In a push system a multi-period master production schedule of future demands is prepared, and a computer explodes this into detailed schedules for producing or purchasing the appropriate parts or materials. The schedules then push the production of the parts or components, out and onward. These systems, when computer-based, are usually called Material Requirements Planning (MRP) or the more recent Manufacturing Resource Planning (MRPII).
7
THE KANBAN SYSTEM
The main feature of the Kanban system is that it pulls parts and components through the production processes when they are needed. Each material, component, or part has its own special container designed to hold a precise, preferably small, quantity. The number of containers for each part is a carefully considered management decision. Only standard containers are used, and they are always filled with the prescribed quantity. There are two cards of Kanbans for each container. The production or P-Kanban serves the work centre producing the part, whereas the conveyance or C-Kanban serves the work centre using it. Each container travels between the two work centres and one Kandan is exchanged for another along the way. No parts may be made at any work centre may come to a halt rather than produce materials or parts not yet requested. The operators will engage in other activities, such as cleaning, maintenance, improvement or quality-circle project work when no P-Kanbans have been submitted. These hold-ups often help to identify and improve bottleneck situations.
8
PLANNING JUST-IN-TIME (JIT) MANAGEMENT
· JIT fits well under the TQM umbrella and is essentially a series of operating concepts that allow the systematic identification of problems, and tools for correcting them.
· JIT aims to produce or operate, in accordance with customer requirements, without waste, immediately on demand. Some of the direct techniques associated with JIT are batch or lot size reduction, flexible, standardized containers.
· JIT implementation requires the foundations of quality, low cost, minimum lead times, high flexibility, through the core techniques of pull scheduling, JIT purchasing, buffer stock removal, multifunction workforce and enforced improvement.
· As with TQM, a steering committee, a project manager and project teams are enforced improvement.
· Purchasing is an important feature of JIT. Long-term relationships with a few suppliers, or ‘co-producers’, are developed in networks of trust to provide quality goods and services.
success
Success breeds success.
Nothing is as sweet as success.
It is the journey through pain, agony, hard work, planning, strategy and bits of luck that cultivates what is known as success.
The difference between success and failure is wafer thin.
The greatest success principle I have come across is “learn from the experts”. Don’t reinvent the wheel. If you want to succeed find out what other successful people are doing and do the same things until you commence to reap similar results. Most successful people have on comman trait i.e. they are “very well organized” and in order to be so they use their time very well. They are highly productive and get more work done than average people for a similar period of time. These successful people are high performers with qualities to be both capable and efficient. They do things right in the right way at the right time with the right approach having the right attitude and aptitude. As a result their contributions in the spheres of work are far more than an average individuals .
another trait in 75% of successful persons is that they possess some maverical traits. it is this trait that drives them to compete with themselves first and then others. they drive themselves to unimaginable limits and thus give a better prioductivity than average persons working in that sphere of work.
succesful people also have their share of badluck but when they are unsuccesful they dont lose sight of the moral and gear up to encounter the nadir with a strong determination to move up the performance curve and feel the zenith .
Nothing is as sweet as success.
It is the journey through pain, agony, hard work, planning, strategy and bits of luck that cultivates what is known as success.
The difference between success and failure is wafer thin.
The greatest success principle I have come across is “learn from the experts”. Don’t reinvent the wheel. If you want to succeed find out what other successful people are doing and do the same things until you commence to reap similar results. Most successful people have on comman trait i.e. they are “very well organized” and in order to be so they use their time very well. They are highly productive and get more work done than average people for a similar period of time. These successful people are high performers with qualities to be both capable and efficient. They do things right in the right way at the right time with the right approach having the right attitude and aptitude. As a result their contributions in the spheres of work are far more than an average individuals .
another trait in 75% of successful persons is that they possess some maverical traits. it is this trait that drives them to compete with themselves first and then others. they drive themselves to unimaginable limits and thus give a better prioductivity than average persons working in that sphere of work.
succesful people also have their share of badluck but when they are unsuccesful they dont lose sight of the moral and gear up to encounter the nadir with a strong determination to move up the performance curve and feel the zenith .
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