What’s the most usual image for strategy? Google Pictures leaves no doubt: Chess! These days, the FIDE World Chess Championship is held in Chennai, India. The reigning world champion Viswanathan Anand is playing on home ground against the Norwegian chess wonder Magnus Carlsen. In this regard, one of the readers of my blog asked me to explore the question: What does chess have to do with operation strategy?
Good news*: your operations can reach excellence in both Lean and Green. But to hope for success you need to treat Lean and Green as interconnected strategies—not isolated projects. That tip is a key take away from the SMARTLOG seminar “Lean & Green? Yes please both” that we arranged at SINTEF in Trondheim this week. Leading academics and corporations** in Scandinavia were invited to share their latest experiences on the topic. Do Lean and Green go well together?
Factories are like people; they come in all shapes and looks—some more attractive than others. There is no doubt that a good looking factory is nice for workers and visitors, but does it also have a significant impact on the plant’s operational and financial performances? How much should management care about factory beauty?
This week, the 2013 IAAF World Championships in athletics is held in Moscow, Russia. If plant managers watch carefully, they might pick up a few ideas for improving their factories. A specific concept that comes to mind is the notion of Factory Fitness – proposed by Kasra Ferdows (Georgetown University) and Fritz Thurnheer (Hydro ASA) in 2011. The key take away is the following: Whereas becoming lean is right for many, becoming fit is right for all. How to become world champion depends on the event.
Climbing the highest mountain in Northern Europe, a few thoughts on the Theory of Constraints came to my mind. To get to Galdhøpiggen, 2469 meters above sea level, the most common route takes you over a glacier where rope teams are used for safety reasons. In his must-read book “the Goal”, Eli Goldratt (1984) uses rope teams to illustrate an efficient production system. Why should you run your production as a rope team.? Why not?
A book review of This is lean!
‘If lean is everything that is good, and everything good is lean, what is then the alternative?’ Niklas Modig and Pär Åhlström ask this timely question in their book This is lean. The authors go on to suggest what lean is, and what it is not. But, at Amazon.com there are more than 7000 books on lean, why should you read this one?
A report from POMS 2013 in Denver
Are Lean and Six Sigma relevant for the 21st Century Manufacturing? An answer to this—and thousand other questions—is being suggested at the annual POMS Conference in Denver, Colorado, this week.
I have just returned from an excellent visit to Saudi Arabia, researching the implementation of ‘lean production‘ in a successful multinational company that produces the world’s highest quality of paints and paint systems. Going there, I heard that Saudi Arabia would be totally different than anything I’ve visited before. It was, and it was not. This post is about how foreign companies contribute to Saudi’s wealth and development, and slowly improves women’s rights through cultural exchange and mutual understanding. These companies and their expats colour the ‘country of black and white’.
‘The pearl of Africa’, as Sir Churchill once called Uganda, has yet to enjoy a rapid economic growth. That’s a challenge that Uganda shares with the majority of African countries. Multiple reasons for the African growth inertia have been suggested; unstable political environments, low education levels and insufficient infrastructure are usual suspects. The main reason for the slow industrialisation of Uganda, however, is neither political nor economical, it is cultural. This week in Kampala, Dr. Peter Lating at Makerere University, explained me the Ugandan mindset with a brilliant—and reportedly true—story. The story deserves to be shared, and it goes like this:
When it comes to quality management, there are surprising similarities between what was suggested in the 80s and what we barely have seen the start of in industry today. In this post, I discuss how Juran’s CWQM-concept from the mid-1980s is both valid and useful for companies rolling out global production improvement programs today.
What do the quality gurus of the 80s think when they read the modern literature on lean & co? Have we moved beyond their original ideas? Or do we just say the same things using fancy, new words? While preparing a paper for the TQM Journal, I recently re-discovered the wisdom of the 80s. And what a wisdom! This is far too important knowledge to discard as blasts from the past; the ideas of Juran, Taguchi, Garvin, Crosby, Shingo, Deming, Feigenbaum and Ishikawa remain fundamental for competitiveness. In this post, I briefly explain the key contributions of each of the top-eight quality gurus. Kudos to the gurus!
This week I drove through one of the most beautiful corners of this world; Nordfjord in the Norwegian west coast. There—in the rich and peaceful countryside—problems in China’s and India’s factories seem far, far away. But they really aren’t. Nordfjord is home to several successful apparel companies: Ricco Vero, Skogstad and Frislid are famous in Norway and beyond. Best known of all, however, is the iconic Moods of Norway. After repeated pressure from consumers and a Norwegian NGO, Moods of Norway has finally gone public with list of their worldwide suppliers [1-3]. That’s a good start, but not enough! It is admirable that they want to make “happy clothes for happy people”—but do they want to make people happy?
My mother just got her new car. After driving a problematic Renault for many years, she decided to go for a Toyota Yaris. That’s an excellent choice for her needs. Despite Toyota’s recent recalls, it continues to deliver the best quality at the best price. The choice of the Toyota also gives me a good opportunity to eventually write about an essential core of my research: The Toyota Production System—the mother of all XPSs.
Why do 9 corporate presidents and 20 other high-ranked employees from one company hand out buns and coffee at my university today? Surely they made my morning more pleasant, but that doesn’t deliver the shareholder’s return on investment. Or will it… in the long run? This company believes students are more important than one day of business-as-usual. This is the story of why quality starts at the university for a world-leading Norwegian firm: The Kongsberg Group.
Visiting more than 40 factories all over the world this year, I have seen both good and not-so-good practices for hosting factory visits. In this post, I share some learning points: here are ten best practices for factory tours.
The winter sport season has barely started as Norway’s victorious skier, Petter Northug, kicks off his mockery season of our neighbor to the east: Sweden. A few days ago, in the Cross Country World Cup in Gällivare, Sweden, Northug passed the finishing line first—before Sweden—and with a Swedish flag. As the anchorman in the Norwegian cross-country relay team, he made sure that Norway won over Sweden at their home ground once again—and took great care that they knew… At the same time, I spent my third week in Sweden this year. As a student of business, I know that Sweden is a world champion in a “sport” that isn’t publicly celebrated but matters thousand times more than cross-country skiing: Manufacturing!
This autumn, a brand new food factory opened in the small town Gevgelija in Southern Macedonia. The successful entrepreneur Viktor Petkov has since 1992 built a viable company that employs over 100 persons during peak season. His company, Vipro, produces organic food from fruits and vegetables. In September, Vipro ceremoniously opened their new facilities. My colleague Lars Skjelstad and I were invited to join as “guests of honour” because we have assisted Vipro in planning the new factory layout. In this post I tell how Closeness Rating Analysis (CRA) helps plan a flow-oriented layout.
This post is an excerpt of my newly published paper “Managing strategic improvement programs: the XPS program management framework”, published in the peer-reviewed and open-access Journal of Project, Program and Portfolio Management (Vol. 3, No. 1). The complete paper is available for download at my publications pages.
Yesterday, my colleague Daryl Powell successfully defended his PhD thesis titled “Investigating ERP Support for Lean Production” at the Department of Production and Quality Engineering at NTNU, Trondheim, Norway. Over the last three years, Powell’s research has received much interest from the international Operations Management research community and from industrial companies struggling with the mismatch between lean production and ERP (Enterprise Resource Planning systems). Is lean production and ERP solutions for pull production mutually exclusive?
I have visited three former Nissan Diesel factories in Japan this week (today owned by a foreign multinational). The plants operate according to the Nissan Diesel Production System—a bi-product of the famous Nissan Production Way (NPW). I believe that too many lean-lovers focus too heavily on the Toyota Production System (TPS), and know too little about alternative approaches to world-class production. The core idea of an XPS is exactly that the X should be tailored to the company, and not be a TPS-blueprint. In fact, the NPW might provide a better benchmark for many Western manufacturers than the TPS…
Respect for the Bangalorian bus driver—who probably has the world’s toughest job. While I visit Volvo factories in Bangalore this week, I feel the pulse of a thriving city that literally bursts into the streets with all its energy. The traffic in India’s third largest city is straightforward d r e a d f u l. Continuous honking seems to be the most important trick to come ahead and stay alive. In this total chaos of noise, pollution, people and vehicles, I am surprised to find the traffic flowing surprisingly swiftly. How do the Bangalorians create flow of mere chaos?
In the book Strategy Safari, management guru Henry Mintzberg said that no single perspective or theory can sufficiently cover strategy (or management) as a field; the field is an elephant that requires many eyes and minds to properly understand . Mintzberg is one of the speakers at the Academy of Management (AOM) annual meeting in Boston this weekend. But he’s not alone: more than 11.000 people (!) choose to spend the best time of the year in clammy conference rooms to present and discuss their incomplete opinions on management. (This is the point where I would make a funny remark about that, but the joke would literally be on me). At this mammoth conference, the elephant of management is—for the 72nd time—under attack.
Harley-Davidson! …no need for more introduction. This week, I toured the assembly plant in York—the biggest of four H-D manufacturing plants in the US. Together with H-D tattooed bikers with close-fit leather vests, I had the great opportunity of seeing the factory from inside. Harley is well-known for the feelings it evokes in its customer base, and the H-D culture is an unavoidable teaching case in any marketing course. Few other products better symbolize the American dream. Therefore, my question when visiting the York plant was naturally: is it an American dream factory?
Ever wanted to follow courses at Massachusetts Institute of Technology (MIT)? Harvard? Or, if your prefer, University of Cambridge, Oxford, Yale, Berkeley, Georgetown, University of Tokyo, or the Norwegian University of Science and Technology? Well, you can. It is free and you can easily Do-It-Yourself (DIY). Why not MIT DIY? … Here’s how I used iTunes University and YouTube to substantially improve my statistics skills over a few weeks.
The Renewable Energy Corporation (REC) has recently closed its second of two factories in its home country Norway. All the state-of-the-art technology and lean improvement initiatives in the world could not save the Norwegian factories from shutting down this year. The REC case is a good example of how benefits of process improvement programmes can be far outweighed by global politics. A natural question to raise is then; under such conditions – is an XPS programme insignificant?
In a recent article, The Economist explains how the electronic giant Honeywell International transformed “from bitter to sweet” over the last eight years following an XPS strategy. In my research I search for evidence for how and why corporate production systems (XPS) succeed and/or fail. The Honeywell article paints a picture of how the Honeywell Operating System (HOS) literally saved the company from bankruptcy and turned it into a multi-billion profit machine. Although the evidence is anecdotal, the managers interviewed in the article provide convincing statements of XPS success:
It has become extremely popular for companies in any business to pursue the principles of lean production, Six Sigma, TQM, TPM etc. A new development in recent years is that multinational companies develop global and group-wide systems for process improvement based on all these concepts: The XPS. Then, what are the top XPS/lean principles in use?