Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Sun Nov 25, 2007 7:25 pm Post subject: Obstacle three: Wishing to “buy” or pay for a solution
In this series of articles I hope to discuss a few of the obstacles, that I have seen keep people from implementing the Deming philosophy with success. Many have made progress and gained rewards, but most fall short of full transformation of their business. A few months or years, a few gains and they are move on, feeling “Deming doesn’t really work.”
Obstacle three: Wishing to “buy” or pay for a solution.
It is very common in our society to try to solve problems with money. In fact there are very few problems that money cannot solve. Transforming a business is one such problem.
The first step toward improvement is always realization. Initially profits start to slowly erode and then business starts to fall off. It’s pretty easy to find excuses; the economy is bad in my area, unemployment is high, consumer credit debt, the high cost of gasoline, interest rates. None of these excuses are new and all have been around since the seventies. Eventually excuses are just that and the business must change or perish.
This is a critical juncture for the business. It is realized there is a problem and it “could” involve the way we do things. Most people also realize they need help and that its probably going to cost. At this point most businesses also still have considerable resources. Like solving most problems, folks first look for information, perhaps they Google auto shop management. Immediately they are bombarded with thousands of solutions, all for a price.
Everything from seminars to consultants are vying for those hard earned dollars. Perhaps the manager looks around at businesses that are successful. Eventually and after a lot of work, something is found that looks pretty good. Now, “How much and when will it be done?” Unfortunately anyone that can answer those questions is not in a position to help you with anything except lightning your bank account.
Dr. Deming was very clear, transformation can only be driven from the top down. The manager will have to do the work, put in the hours, learn the principles and change their methods. This is not a job that can be hired. Without full support, leadership and 100% buy-in from the top, the program will fail.
Ironically transforming a business takes very little in the way of cash outlay. The cost is in effort on the part of management and I think this is why so many people fail to accomplish transformation. The contributions [work] comes up front [in the form of learning and hard work] and the rewards come later. The ultimate reward is a very profitable business that is a joy to run and enjoys a sustained market. A business that is difficult for anyone to compete with. The cost is time, work and continual learning. Deming’s philosophy cannot be a purchase, it has to be an investment.
Example of the contrast in thinking
A large US printer maker was having problems with their circuit boards. The problem was traced to poor quality solder joints. The machine making these connections is called a wave-solder machine and cost several million dollars. The company was losing market share and defect were high, about 1 defect in 1000. “Solve the problem,” came the order from management. A new machine was bought and the problem dropped to 1 defect in 10,000. Management was pleased, money well spent.
Because of the cost, the old machine was sent to a Japanese subsidiary. There management began working with the machine to improve results. With PDSA they learned by insulating the wave area, temperature could be more closely controlled. They found by improving the procedure of cleaning the boards much better joints could be made. They experimented with different feed rates, solder mixtures, cleaning chemicals, board designs and many other things. Eventually the machine was producing less than 1 defect in 100,000 boards. The total cost of improvement was around $20,000.
Joined: 19 May 2007 Posts: 206 Location: Camp Verde, AZ
Posted: Thu Nov 29, 2007 10:19 pm Post subject:
I think they call it re-engineering. The process of changing the way a business operates. It is hard to change our thought processes. If we do manage to change them, but something stressful happens before they become habits, it is very easy to revert to the old way of doing things.
I think that when a business realizes it needs to change they hire an expert. The more money the expert charges the better they must be. The thought being that the expert can keep us from making mistakes, they know the “right” way to do things. They will pay for themselves. We need to be careful whos advice we take. Something about those that can't, tell others how to.
We are looking for an instant fix. Here is a problem, lets get it fixed and out of the way so we can tackle the next problem. Owners do not realize that in order to change they will have to do the work, put in the hours, learn the principles and change their methods.
I have talked with a few business consultants. They say it is amazing how many people will pay for their services, but then not use their advice. The other thing that happens is people use what they are taught for a while, then fall off the band wagon. They go back to doing things their old ways.
Can continual improvement be a habit? How to we make sure that we keep up with that habit? We are responsible for our employees, we need to keep them excited about working, or at least remove as many stumbling blocks as possible. But who keeps us motivated? Who picks us up when we stumble? It is sometimes frusterating to talk with other shop owners, all they talk about is how bad things are.
_________________ David Wittmayer
Owner / Manager
Hansen Enterprises Fleet Repair, LLC
Camp Verde, AZ
www.hefrshop.com
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Fri Nov 30, 2007 12:12 pm Post subject:
Hi Dave,
Dave wrote:
I think they call it re-engineering. The process of changing the way a business operates. It is hard to change our thought processes. If we do manage to change them, but something stressful happens before they become habits, it is very easy to revert to the old way of doing things.
The answer is fairly straight forward and at the heart of Deming theory. The Japanese have a word to describe it, Poka yoke. Basically this means making it easier to do things right than to do them wrong.
Most "improvement" efforts fail because it is [believed to be] more difficult to follow the new procedure than to do it the old way. When people get stressed they revert to the old way. This can be eliminated by simply making it easier to do it right.
This is a very misunderstood concept and one rarely implemented in the US. Instead the leader simply "decrees" the solution and expects it to be carried out. If not they add more supervisors, or revert to a carrot/stick incentive program.
Dave wrote:
I think that when a business realizes it needs to change they hire an expert. The more money the expert charges the better they must be. The thought being that the expert can keep us from making mistakes, they know the “right” way to do things. They will pay for themselves. We need to be careful whos advice we take. Something about those that can't, tell others how to.
Experts are fine, IF they can do just that, but they cannot replace leadership from the top. If the leaders wish to relegate their job to someone else, they should resign and put those people in charge, this would increase their odds of success.
An expert is a person who has produced consistent results over a long period of time. My experience is they will normally share their knowledge freely, because they are passionate about it.
Dave wrote:
We are looking for an instant fix. Here is a problem, lets get it fixed and out of the way so we can tackle the next problem. Owners do not realize that in order to change they will have to do the work, put in the hours, learn the principles and change their methods.
I have talked with a few business consultants. They say it is amazing how many people will pay for their services, but then not use their advice. The other thing that happens is people use what they are taught for a while, then fall off the band wagon. They go back to doing things their old ways.
Can continual improvement be a habit? How to we make sure that we keep up with that habit?
I believe Poka Yoke is a large part of the answer along with consistency, building a culture of quality and leadership.
Dave wrote:
We are responsible for our employees, we need to keep them excited about working, or at least remove as many stumbling blocks as possible. But who keeps us motivated? Who picks us up when we stumble? It is sometimes frusterating to talk with other shop owners, all they talk about is how bad things are.
It's just the job we drew Dave. It's lonely at the top and the higher you climb on the mountain, the harder the wind blows. For me, communicating with others on this site and speaking with clients helps keep me on track. I also read incessantly and look for the good where ever I can.
Travel also helps me keep focused. My wife and I both enjoy it and I always come back refreshed and full of new ideas. My best means of staying focused is writing. By writing my ideas and responding to others, it helps me think more clearly. Thanks Dave, I appreciate your reply.
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