At last year’s Northwest Food Processors Association Expo, 72% attendees said food safety was a prime concern. A reason stated was that a single food safety incident can cause damage to your brand and to your bottom line. Do you think attendees would say they are making better decisions this year over last? What is missing in most cases is that Food Safety has never been tied to business objectives. How do you use Food Safety Data in Your Organization?
Join ApRecs for 3 exciting leadership sessions, learn the Field Data Scorecard Method.
February 13 @ 9:00 am PST: Creating a Quality Environment from Compliance: Dr. W. Edwards Deming introduced the idea that the best way to quality was to assure the quality of the processes that creates the product. Through this type of thinking, we stopped thinking of quality from perspective of inspection and whether it passed or not. Instead, we learned that quality took place in real-time and by the people doing the work. Compliance is very much like quality. The best way towards compliance is to move compliance into work processes and towards the place of work. As Lean taught us, quality/recordation can be used to improve our business process and achieve business objectives.
Creating a normalized process out of your field data
Ownership: Taking responsibility for the privacy and security of your data
Transparency: Trusted connections, who are they and what they do with your records
March 13th @ 9:00 am PST: Leveraging Compliant Data for Awareness: Most Packers/Shippers/Processors lack a system of measurement and a way to monitor field data performance. However, what would it be like if the status in real-time was displayed for all growers and product varieties with the capability to drill down instantaneously to any give field, block or individual record. What if these indicators were available for Sales Desks and at the fingertips of operations and productions? Ask Food Safety now for information and most of what you will receive is a thumbs up and/or information for the product much later in processing when a label has been attached. If there is a wrong chemical applied, an invalidated record, the issue would now surface practically immediately, not several weeks later from a lab report or discovered at the time of an audit. When discovery happens in real-time, problems can be handled when both risk and cost are at a minimum.
Quality tools what are they and how to use them.
CAPA: Corrective Actions and Preventative Actions
Develop Forecasting Tools
April 10 @ 9:00 AM PST: Putting Awareness to work thu Scorecarding: The Field Data Scorecard solution is a catalyst for change. The power of the scorecard lies in identifying opportunities to increase value recognition and predicting future performance with some confidence. If we improve our processes, we improve quality, conformance and the speed at which we do work. Meeting Business Objectives is a key part of the scorecard. It adds the dynamic characteristic needed to shift from compliance to awareness.
Delivering a Compliant Product
Privacy and Data Security
Brand Protection and Risk Management
There are undeniable short-term costs, but most of these will eventually become costs anyway. Creating new data does not mean simply putting it in a report. That would be wasteful. Instead, it should be used to spark creative solutions that, in fact, makes your organization better. The opportunity is to use the Field Data Scorecard to move from short-term fixes of avoidance to the long-term capability of awareness.
Learn the Field Data Scorecard Method
February 13 @ 9:00 am PST: 10:00 am PST: Creating a Quality Environment fromCompliance
March 13th @ 9:00 am PST: Leveraging Compliant Data for Awareness
April 10 @ 9:00 AM PST: Putting Awareness to work thru Scorecarding
When you start thinking this way about your Food Safety Data, your Field Data…there are endless opportunities to use your data in constructive ways.
There will be a short 10 minute introduction on the Field Data Scorecard before the regular ApRecs Packer/Shipper/Processor webinars. You can stay for the rest of the webinar or you can leave after you hear about the scorecard. ApRecs does not impose its platform to develop the Field Data Scorecard. You can use your existing system though it may have certain limitations across platforms that may need to be added or manually created.
Connect with your leads and build the relationship that will create repeat buyers.
It’s no secret that email is one of the primary ways of communicating important information. The problem we have seen over the years is an influx of companies that use this method of communication in a way that is impersonal and irrelevant. But notice how your attention is heightened when you get an email from a friend. Well, that is because people in Hollywood clearly understand some key, core concepts in psychology – and it works. Now the best thing is: it’s a science and you can learn how to do it – and apply it.
A 17-lesson online training program on how to use “soap opera email marketing” to get more customers and clients to your business, convert up to 46% of your prospects to buyers, and boost your email opens, clicks, and sales.
Training 1: Profiling and Understanding Your Audience
Training 2: Creating Attention Through The Use of a Hook
Training 3: Open & Nested Loops
Training 4: Story Direction & Structure (Storyboarding)
Joyful and disciplined “agile” methodologies are the foundation on how Menlo Innovations have built their business culture. At this date, I am sure there is only limited seating left for this action packed day at Lean Frontiers outstanding training facility in Indianapolis, IN. In the August 26th session you will learn…
how Menlo’s iterative design processes uncover root problems and provide a framework for adapting project requirements as needed
the tactile methods Menlo uses to plan project tasks, ensuring transparency with project sponsors around project cost and timeline
about the importance of estimation and actual in project planning
about what it means to remove fear from your company culture and the impact on team communication around project deadlines and more
I had the pleasure of interviewing Menlo founder and chief Agilist, Rich Sheridan and discuss the Menlo WayTM below is an excerpt of the podcast where I asked him about the workshop.
Joe: Tell me about the upcoming workshop. Who is it for and who will get the most out of it?
Rich: We’ve been offering workshops for years; pretty much since our inception. It’s always been our intention to have education as part of our offerings. I’ve gotten to know Jim Huntzinger’s team down at Lean Frontiers in Indianapolis. “Jim, why don’t we bring our intro to the Menlo way on the road and bring it down to your crowd in Indianapolis?” So, Jim was gracious enough to offer his space to bring this message on the road.
What it is, is a daylong exploration of the culture we’ve created and the processes that support that culture. What you’ll learn about in this Intro to the Menlo way is a bit of my history, how did I get here, why is this important (not just to Menlo but to the industry), and what challenges the industry is facing. There’s a bit of introductory material. Then we start walking through our process. How do we do planning? How do we do estimation? How do we do work authorization? How do we measure ourselves?
Our simple, repeatable, measurable structure here works on these five-day gears that turn (if you will) on the plan, execute, and measure cycle which probably sounds a lot like PDCA for the Lean folks. We just walk through all these pieces and parts. Quite frankly, a lot of the day, I will be leading this session. A lot of the day is people just peppering me with questions because there’s so much that we do that’s paradoxical that people just want to start digging in. They’re like, “Really? Two people on one computer? How is that more productive than two people working individually? What do you do when two people don’t get along and how do you find people who like to work like this? How do you interview and hire them?” What I say about each one of these sessions is that it’s very unique because it’s driven by the questions. I got way more than eight hours worth of material to share. The only way I can pair that down is to chase down the questions that people are asking me as I walk them through the structure of the day.
Joe: I think that’s a great way to put on a presentation. Interactivity instead of looking at a bunch of PowerPoints and being taught is the participation.
Rich: There is no workbook. There is no PowerPoint. It’s very visual. I’ll probably show a few pictures because it’s on the road. I’ll probably have a projector with some pictures of our space so people can actually visualize it because we’re not going to be in the room.
The most difficult thing to do sometimes is to say I am done. How do you know when a product/service is finished? In Lean Thinking, we design (EDCA) for PDCA and only after we standardize do we consider the initial design finished. We are only finished when the product lifecyle is completed.
How are you at managing your Products Lifecycles? Are they being managed from Conception to Disposal or in a Green world, Recycled. I find this quite often an area that can develop rapid growth and additional streams of income very quickly. The organizations that are doing well in this economy are a result of taking a more outside in approach to the product lifecycle. Using a very simple Lifecycle diagram made up of five components, we can demonstrate this approach.
What most companies are doing:
Innovation & Engineering: Using new innovations tactic they are designing products with greater flexibility offer more product choices and flexibility later in the design process, Toyota Scion.
Manufacturing: Lean processes have made tremendous advances in manufacturing the past several decades and has changed the way we view our own products. Learning to See Customer Value from the eyes of the customer has allowed for significant improvements in quality and customer satisfaction.
Sale & Distribution: At the point of sale, customers now experience more choices, more flexibility and better pricing than they have ever had.
Maintenance & Repair: Our expectations due to the advancement in quality accept little if any repair or maintenance during the entire lifecycle. We probably will throw it away before fixing it. However, when we do we will take it to a specialist versus doing it ourselves.
Disposal & Recycling: We expect more of our items to be recyclable. Or is there is value left, saleable and that there is an easy distribution method for that to happen. A few examples are E-bay or Craigslist.
This is the normal lifecycle and expectations of most products and even services. So what makes you better? What differentiates you? It is a difficult chore to do it. It is even more difficult to get someone to notice it. And even more difficult to get someone to pay for it!!
What are the successful companies doing: Some companies make one of these areas a differentiator and target a customer segment that values that component. You can possibly charge more if that value proposition is strong enough for that segment or you can make it a minimal cost by burying it in the total cost of the service, such as a subscription rate. That price difference may seem minimal to that customer segment. Another way is to make one of these propositions an operational advantage that actually is saving you money. This is similar to the Theory of Constraints, Mafia offer. Companies are also partnering with others to create additional income streams and to maintain better customer “control”. For example, these companies may offer the ability to take and/or dispose of trade-ins. Or, additional service contracts, product attachments or aftermarket products may be possible.
What are the really successful companies doing: The really successful companies are not improving but looking at a totally different lifecycle. They realize that the value of product has diminished. There may even be little value place in the cost of ownership. The value is derived from the use of the product not in owning the product. So, they are looking at how to create value throughout the entire lifecycle.
Innovation & Engineering: Using Design Thinking Process, we focus on delivering to the customer Rapid Prototypes or Minimum Viable Products to garner their acceptance.
Manufacturing: These processes are becoming practically secondary in nature. This is not where you make your money but where you continue your journey of development. No longer is software delivered in a box, it is in the cloud. You sell iPads, iPhones and iPods or even cars but the value is in what this enables the customer to do.
Sale & Distribution: It is an entry point through a community and a joint-education process with the customer.
Maintenance & Repair: Maintenance and repair is practically non-existent. This is where we maximize the value for the customer and extend his ability to do business better.
Disposal & Recycling: Since there was little if any original value, there is little if any disposal or it is just a matter of returning it to you.
Think of what Amazon does.
Innovation & Engineering: They have created Kindle and made a unique shopping experience that few match.
Creating Content: They package, publish and inventory books.
Educations and Community: Over 50% of the books sold on Amazon are electronic. This has now created a one-time fee for the Kindle, the cost of an eBook and instant delivery at the point of sale has made the purchase a minimal part of the experience. The price is relatively not an issue in most cases. It is just as often a decision based on the time you have. They educate you about product and though it may be a stretch since they have been around so long, were introduced through a community or eWOM.
Maintenance & Repair: How often do you visit Amazon, just for a book purchase? They make a book purchase an adventure. You are updated, notified, asked for opinions, receive recommendations and watch your package travel to the destination. It is a journey with numerous touch-points that extend to your next purchase.
Disposal & Recycling: Accept used book returns and allows you to loan certain books on Kindle.
As you develop your product lifecycle to an outside–in-approach it creates more touch points and more opportunities to interact with the customer. It also allows you greater opportunity to add value to your customer’s experience. That value will become an integral part of the way they do business. The strongest differentiator you can have.
So what has happened to Lean Product Development and Lean Design? I had mentioned Allen Ward previously and his pioneering work in the area of Lean Development. Allen unfortunately passed away several years ago ( a tribute to his work) and his torch; I believe has best been picked up by Michael Kennedy who has written several books on the subject. The picture below was created from his book,Product Development for the Lean Enterprise: Why Toyota’s System is Four Times More Productive and How You Can Implement It and represents the change gap between past product design and future product design. As you can see design and innovation pulls from the expertise of the workers (knowledge-based) rather than management creating direction (structured).
This is Lean Design of the future. If you envision the Business Model Canvas of Alex Osterwalder’s as the value stream, you will see how Lean is poised to create the eco-system that is need for new product/service development. It is Lean Thinking, that culture of PDCA embedded in the workforce that creates the pull and the resulting flow from and with the customer. This is how demand is created. Without the existing culture, the existing eco-system every product has to be a breakthrough. Even Apple understands, watch this video.
I cannot think of a better description, of how I look at Design and how in the power of the story lies the secret to innovation. Dorsey also explains his admiration for Apple’s ability to tell epic stories. The secret of Apple’s success, I always thought were the exact points he describes in this video.
P.S. I agreed with so much of what this guy says that have to admit that I think he is brilliant!
Are we there yet? The last few years we are now seeing implementation of the Lean 3P principles of Design. Development of the 3P process is attributed to Chichiro Nakao, a former Toyota group manager and the founder of Shingijutsu company. The accepted meaning of 3P is Production, Preparation, Process. Toyota delivers product designs on schedule 98% of the time (as stated by @flowchainsensei on twitter). Now, I am not sure how I can confirm this statement except that I believe this source to be accurate and even if Bob was 50% wrong, it would mean Toyota still exceeds the majority. However, after interviewing Allan R. Coletta, author of a new book The Lean 3P Advantage: A Practitioner’s Guide to the Production Preparation Process and reading the book, I can understand and believe that statement. This is an excerpt from the book:
Lean 3P is a powerful enabler for invention and innovation because it creates a structure and a process for people to create both independently and collaboratively. However, 3P is not presented as a “one size fits all” means of creating brilliant new products that takes us from “blue sky” to product launch. It might work like that in some instances where a new product is a variation of an established product or in organizations where the same team is inventing, developing, and working together to launch a new product. With additional experience the role of 3P in the full product development will likely expand. For companies new to Lean 3P, the question might be how 3P will integrate into existing product development processes.
I highly recommend learning more about Lean 3P and the best place to start is with the podcast and/or eBook with Alan:
Before the podcast, I had been struggling on how, or even if I should use Stage Gates or Control Points in the Lean Service Design methodology. I questioned Ron about this. In an excerpt from the podcast, he explains how he has eliminated them.
Joe: That’s an interesting take on it, because it’s not necessarily a Kaizen event?
Ron: No. Other than the fact Kaizen events are a great example of how powerful this kind of intensive collaboration with a high focus can be. But it’s not a Kaizen event in the classical sense of being continuous improvement. It is an execution event, where you have, again, a standard preparation in advance. Everyone, within their role, comes to this very cross functional event with preparation, information, and in some cases completed work. When we get in the event, we follow an agenda of tools, discussion, and prioritization. Then ultimately, we have a standard output that determines the close of the event.
In fact, if we don’t close the event properly, if we don’t reach that outcome, we reconvene in a week or whenever we can, and we continue until we can reach that closure.
I think it’s a very powerful forcing function for timely decision making and for really getting all the voices together, looking at the same issues and problems, and answering the same question.
Joe: Do these happen at phase gates or control points of the process, then?
Ron: Actually, in my perfect vision of the world, the events become the phases and gates. Our market requirement event is a knowledge gate, so is our project planning event. The rapid learning cycle event, which is to burn down your early risk on a project, each of these, in a sense, are knowledge gates. So in my perfect word, we don’t use artificial governance gates like concept freeze gate and a detail design freeze gate or whatever they might be. We actually use these events as knowledge gates. But in most companies that already have a comfortable language of governance, we just embed the event at the appropriate phase and it will give you the outputs you need for your existing gate reviews.
Joe: So it’s really a way of distributing all the knowledge that needs and deciding on what knowledge you need to proceed with. Is that a simple explanation of it?
Ron: Perfect, perfectly well said. If you think about it, in product development all of the knowledge that is needed to create the best commercial product in the world resides in the heads of the cross?functional groups that you have in your company. It’s all in there somewhere. All they need is a problem to focus on and the ability to somehow pull all of that diverse cross?functional knowledge together in a way that’s optimal. So really that’s what we’re trying to get at here. Really, it’s forcing collaboration, not just names on a list, “Oh yeah, we’ve got a manufacturing person on the team. See here’s Joe, he’s listed down here on the list.”
It’s getting them in the room, break down the barriers to communication, have a common vision and a common set of tools they use so that we really do get that consensus input. Product development can’t be optimized without the contribution of virtually every function in the firm at one time or another.
We have moved from stage gate thinking across the top of the page to Event style collaborative agreement on a regular basis. These process can even be done concurrently to speed up the process depending on available personnel. Ron, also advocates that you don’t change the tools you are accustomed to using. If you reflect on the discussions about Leader Standard Work, you will once again see the commonality of overlapping responsibility and the practice of arriving at agreement, a consensus of what is best practice. This can only be done through involvement at all levels of the organization. We will discuss this more in the Hoshin section later this month.
This is not about relinquishing control of the design process. It is about gaining more control over implementation. Collaboration does not insure the best answer gets enacted. It typically insures that something does get enacted. It takes away that paralysis from planning. No longer are we trying to gather buy-in to get something accomplished, but rather change is being driven from the bottom up with a sense of joint accountability. The best answer becomes the best implementable action. Eventually through continuous improvement a better answer will surface than was originally conceived.
Chesbrough is to open innovation what Christensen is to innovation in general, and his concepts and ideas are spot on. Chesbrough is the executive director of the Haas Center for Open Innovation, rethinks the concept of open innovation to tackle a new economy.
In his new book, Open Services Innovation, Chesbrough offers the tools to apply service-focused innovation to avoid what he calls “the commodity trap.” Chesbrough explains,”Innovating in services is the escape route from the commodity trap and a solution for growth, giving firms a significant competitive advantage. As they innovate into the future, companies must think beyond their products and move outside their own four walls to innovate.”
If you enjoy this, you may want to listen to the podcast I had with Lance Bettencourt, Service Innovation – Rethinking Customer Needs. Lance believes that true service innovation demands that you shift the focus away from the solution and back to the customer. To achieve this shift in your business–one that takes you from making educated guesses to building a clear model to guide service innovation—Lance Bettencourt instructs on the finer points of how to rethink your approach to the customer’s needs: how the customer defines value in a product or service. Lance’s book, Service Innovation: How to Go from Customer Needs to Breakthrough Services lays out a road map for developing a winning service strategy.
The differences in Design between Lean and Six Sigma are not in the tools that they use but in the paths, they have chosen to take. The initial paths of each into the design fields were driven by the fact that most cost and problems to include quality and variability were designed into a product/service before it went into production or use. The need for early customer feedback became apparent and Voice of Customer (VOC) and Critical to Quality (CTQ) or Critical to Satisfaction (CTS) issues were recognized. However, to a large extent these processes were still internalized and only recently as a result of the Lean Software community has the customer become more and more part of the design process. This will be covered in more detail later this week.
The typical Design Processes of Six Sigma:
DMAIC: Define – Measure – Analyze – Improve – Control (This is basically a 5-step version of PDCA)
DFSS: Design for Six Sigma – A process that drove the statistical thinking aspect of Six Sigma into design.
DMADV: Define – Measure – Analyze – Design – Verify (The most popular form of Six Sigma in Design)
Implementing this type of design resembles a funneling process characterized by a design process flow that is controlled by stage gates or tollgates. The tollgate is used to d measurable objectives that will allow a design to pass through the gate or to the next stage, or be held until the objectives are completed. Tollgate Reviews help determine whether all the goals within each stage have been achieved successfully and whether the design can progress to the next stage.
There are many other variations and one that I particular like for services is
DCDV: Define – Characteristics – Design – Verify
Define: Design the problem statement from the outside in starting with customers and markets and ending with the process. You continue cycling through the statement until it is defined.
Characteristics: Segment customers designing a core set of needs and targets.
Design: Start with a high-level definition of solutions and funneling to a solution through iteratively applying creativity and rigor.
Verify: Prototype and eliminate the non-value, reducing risk and cost till the project is ready to roll-out. Knowing that field testing ultimately provides the results of stability and capabilities.
As you may notice just in the description of this process, it seems a little more iterative and as a result a little more “Leanish”. The world of software development and Agile and Scrum with the umbrella of Lean has exploded to take the design once thought of as a step by step method to one of iterations and collaborations.
One of the Lean leaders of the movement outside of software was Steelcase and several years ago I had the co-authors of Innovative Lean Development: How to Create, Implement and Maintain a Learning Culture Using Fast Learning Cycles on the podcast, Innovative Development. The transcription of the podcast can be found at Innovative Development eBook. Their single-point lessons start depicting the path between the stage gate process (calling them flow interrupters) and the more fluid concepts of Learning Cycles.
Marketing with PDCA (More Info): Targeting what your Customer Values at each part of the cycle will increase your ability to deliver quicker, more accurately and with better value than your competitor. It is a moving target and the principles of Lean and PDCA facilitates the journey to Customer Value.