Lean has reacted and supported the improvement of services through the foundation based on Deming’s 14 Points Applied to Services (Quality and Reliability). In Deming’s view, management was responsible for 85 percent of all quality problems and, therefore, had to provide the leadership in changing the systems and processes that created them. Management needed to refocus attention on meeting customer needs and on continuous improvement to stay ahead of the competition. His philosophy is captured in his 14-point program:
- Create constancy of purpose for improvements of product and service. Management must stop its preoccupation solely with the next quarter and build for the future. Innovation in all areas of business should be expected.
- Adopt the new philosophy. Refuse to allow commonly accepted poor levels of work, delays, and lax service.
- Cease dependence on mass inspection. Inspection comes too late and is costly. Instead, focus on improving the process itself.
- End the practice of awarding business on price tag alone. The purchasing department should buy on the basis of statistical evidence of quality, not on the basis of price. Reduce the number of vendors, and reward high-quality suppliers with long-term contracts.
- Constantly and forever improve the system of production and service. Search continually for problems in the system, and seek ways of improvement. Waste must be reduced and quality improved in every business activity, both front office and back office.
- Institute modern methods of training on the job. Restructure training to define acceptable levels of work. Use statistical methods to evaluate training.
- Institute modern methods of supervising. Focus supervision on helping workers to do a better job. Provide the tools and techniques to promote pride in one’s work.
- Drive out fear. Eliminate fear by encouraging the communication of problems and expression of ideas.
- Break down barriers between departments. Encourage problem solving through teamwork and use of quality-control circles.
- Eliminate numerical goals for the workforce. Goals, slogans, and posters cajoling workers to increase productivity should be eliminated. Such exhortations cause worker resentment, because most of the necessary changes are outside their control.
- Eliminate work standards and numerical quotas. Production quotas focus on quantity, and they guarantee poor quality in their attainment. Quality goals such as an acceptable percentage of defective items do not motivate workers toward improvement. Use statistical methods for continuing improvement of quality and productivity.
- Remove barriers that hinder hourly workers. Workers need feedback on the quality of their work. All barriers to pride in one’s work must be removed.
- Institute a vigorous program of education and training. Because of changes in technology and turnover of personnel, all employees need continual training and retraining. All training must include basic statistical techniques.
- Create a structure in top management that will push every day on the above 13 points. Clearly define management’s permanent commitment to continuous improvement in both quality and productivity.
I am a firm believer and follower of Deming. These 14 points apply as much today as they did when they were first written. However, I believe that many Lean Practitioners have taken these points and internalized them. We need to re-think these points placing the customer and user experience as the center.
It is difficult to end the SDCA Cycle in a week. This is the basis of improvement in the Lean Enterprise. If there is one indicator of successful Lean Companies it is their discipline to do Standard Work. Enclosed is a short workbook for you to attempt Standard Work. I have also included an outline of on how to implement standard work on a broader scale. We will discuss many of these items on a broader scale as we move forward.
The Five Lean Principles continue to play a major role:
- Specify VALUE of a specific process
- Identify the VALUE STREAM for each process
- Allow value to FLOW without interruptions
- Customer PULLS value from the process
- Continuously pursue PERFECTION
Can you identify how they apply to Standard Work? Think of the definition of value? We struggle many times because we must view from the customer perspective. I have seen it defined several times by “what a customer is willing to pay for.” However, is a customer willing to pay a retailer for a block and mortar building? So a further definition of value is needed, such as:
- Value Added ( what a customer is willing to pay for)
- Non-value added (incidental tasks that are necessary)
- Non-value added (tasks that are not necessary)
Typically, we can define the value added. If we do not know we at least know who to ask (the customer). Many people will call #3, waste or in many Lean implementations; low hanging fruit. We often rid ourselves of this by performing 5S and through the Standardization process. If not, it surfaces very quickly after we have standardized. Item 2 that incidental waste that we deem important and the customer is either unaware or really does not care (Bookstores vs. Amazon) creates the more difficult decisions. This is where PDCA comes into play. As Taiichi Ono says, Where there is no standard, there can be no kaizen (improvement). In SDCA and any improvement process (PDCA) or a design process (EDCA), we must come to an agreement about the work that needs to be done, a STANDARD.
A bridge between SDCA and PDCA:
Go to the next page; PDCA