Auto Union Chief Presses for Trade Reform January 26, 2009
Posted by Jeff Fuchs in automotive, supply chain.Tags: automotive, supply chain
1 comment so far
United Auto Workers president Ron Gettelfinger has taken aim recently at free trade policies as a factor in the problems that beset the American automobile industry.
“We must take action to fix our broken trading system,” he said in remarks prepared for an automotive conference. “We can no longer afford to have the most open market in the world, while other countries use currency manipulation and non-tariff barriers to keep out US-made products.” Gettlefinger tempered his message by saying that “the UAW is not opposed to fair trade, but it’s time to recognize that so-called ‘free trade’ is a fiction.”Gettelfinger noted further that the deficit in automotive trade alone is expected to hit 109 billion dollars and the US has an automotive trade imbalance with every one of its major trading partners, including Britain, which has a small automotive industry.
I am not quite sure that Gettlefinger is placing appropriate emphasis on the issues here. If we have a automotive trade deficit with every single one of our automotive trade partners, does this imply that every single one of them – including the British – are manipulating their currencies to create a competitive disadvantage for U.S. companies?
Toyotas and other non-American cars are assembled in the U.S. (mostly in the southeast) and use the North American supply chain for most of their parts, like the Detroit Three. How does currency manipulation of the yen or the euro figure into the competitive strength of non-U.S. players in the U.S. auto market?
Certainly, currency issues are a central factor in trade balance. However, Mr. Gettlefinger’s calculus is a bit oversimplified. For a more nuanced example of the factors at play, take a look at the recent Business Week article, The 65 mpg Ford the U.S. Can’t Have, to see some of the confounding reasons why we can’t seem to get a car made here that is double the typical available average new car gas mileage. By attacking trade policy, Mr. Gettlefinger draws attention away from labor components of new car costs.
Gettelfinger did say, though, that his UAW is willing to consider concessions like those spelled out in the terms of the federal bridge loans for GM and Chrysler. However, before the UAW agrees to any kind of wage concessions, he wants to be able to examine the books of Japanese companies such as Toyota, Honda and Nissan to how they calculate labor costs.
I can’t argue with a desire for an apples-to-apples comparison, especially if the government sets competitive benchmarks for the Detroit Three against Japanese producers. It has been well established, however, that the initial quality ratings and assembly times of Japanese versus U.S. automobiles have roughly reached parity in recent years, so the need for Uncle Sam and Gettlefinger to get into Toyota’s books are largely unnecessary, in my mind. The real issues are company overhead, development expense, and employee benefits.
Read Mr. Gettlefinger’s extended comments here.
What are your thoughts on the plight of the U.S. auto industry, the UAW, or trade policy?
Auto Union Chief Presses for Trade Reform January 26, 2009
Posted by Jeff Fuchs in automotive, supply chain.Tags: automotive, supply chain
1 comment so far
United Auto Workers president Ron Gettelfinger has taken aim recently at free trade policies as a factor in the problems that beset the American automobile industry.
“We must take action to fix our broken trading system,” he said in remarks prepared for an automotive conference. “We can no longer afford to have the most open market in the world, while other countries use currency manipulation and non-tariff barriers to keep out US-made products.” Gettlefinger tempered his message by saying that “the UAW is not opposed to fair trade, but it’s time to recognize that so-called ‘free trade’ is a fiction.”Gettelfinger noted further that the deficit in automotive trade alone is expected to hit 109 billion dollars and the US has an automotive trade imbalance with every one of its major trading partners, including Britain, which has a small automotive industry.
I am not quite sure that Gettlefinger is placing appropriate emphasis on the issues here. If we have a automotive trade deficit with every single one of our automotive trade partners, does this imply that every single one of them – including the British – are manipulating their currencies to create a competitive disadvantage for U.S. companies?
Toyotas and other non-American cars are assembled in the U.S. (mostly in the southeast) and use the North American supply chain for most of their parts, like the Detroit Three. How does currency manipulation of the yen or the euro figure into the competitive strength of non-U.S. players in the U.S. auto market?
Certainly, currency issues are a central factor in trade balance. However, Mr. Gettlefinger’s calculus is a bit oversimplified. For a more nuanced example of the factors at play, take a look at the recent Business Week article, The 65 mpg Ford the U.S. Can’t Have, to see some of the confounding reasons why we can’t seem to get a car made here that is double the typical available average new car gas mileage. By attacking trade policy, Mr. Gettlefinger draws attention away from labor components of new car costs.
Gettelfinger did say, though, that his UAW is willing to consider concessions like those spelled out in the terms of the federal bridge loans for GM and Chrysler. However, before the UAW agrees to any kind of wage concessions, he wants to be able to examine the books of Japanese companies such as Toyota, Honda and Nissan to how they calculate labor costs.
I can’t argue with a desire for an apples-to-apples comparison, especially if the government sets competitive benchmarks for the Detroit Three against Japanese producers. It has been well established, however, that the initial quality ratings and assembly times of Japanese versus U.S. automobiles have roughly reached parity in recent years, so the need for Uncle Sam and Gettlefinger to get into Toyota’s books are largely unnecessary, in my mind. The real issues are company overhead, development expense, and employee benefits.
Read Mr. Gettlefinger’s extended comments here.
What are your thoughts on the plight of the U.S. auto industry, the UAW, or trade policy?
At the Whiteboard: Setting SMART Goals January 26, 2009
Posted by Jeff Fuchs in personal productivity.Tags: personal productivity
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BNET recently released a short video (under 4 minutes) that describes how to set SMART goals.
Now folks, this is pretty much Management 101 stuff. However, for all you Lean Thinkers out there, I will tell you that I have found many, MANY instances where the five points of SMART goals are violated when it comes to kaizen events. Take a look at this video and think about them in terms of the objectives that were set for you (or that you set as a leader, process owner, or sponsor) in your kaizen events.
Has it ever happened that you got to your kaizen out-brief and the person who chartered your kaizen or the leadership team in the audience ripped your solutions apart? If it has happened to you, remember how demoralizing that was for you and your team? Very often, train wrecks like this happen because they are engineered to happen: the train is sabotaged even before it leaves the station!
I have seen this happen when the solutions the team came back with are not the ones the leaders had expected – or wanted. The root cause? The problem statement or kaizen charter was not specific or measurable: SMART guidelines were not followed.
See the video here.
By the way, if you like those UPS whiteboard commercials, you will appreciate this series of videos. Very lean.
Have you ever sat through a meeting where the person holding the whiteboard pen scrawls sentences of text? How productive did you feel sitting there …. while …. he …. wrote … out …. every …. single …. word? Or how about when the stuff left on the board is like something a three-year old left behind? What does it mean? The motion of the pen certainly meant something in the context of that single instant of conversation, but what does it mean five hours – or five minutes – after the guy sits down?
The UPS commercials and these BNET spots show how your whiteboard in compelling ways. The visuals are simple, supplement your verbal presentation, and help structure your content. If you like this type of stuff, check out books like Back of the Napkin.
At the Whiteboard: Setting SMART Goals January 26, 2009
Posted by Jeff Fuchs in personal productivity.Tags: personal productivity
add a comment
BNET recently released a short video (under 4 minutes) that describes how to set SMART goals.
Now folks, this is pretty much Management 101 stuff. However, for all you Lean Thinkers out there, I will tell you that I have found many, MANY instances where the five points of SMART goals are violated when it comes to kaizen events. Take a look at this video and think about them in terms of the objectives that were set for you (or that you set as a leader, process owner, or sponsor) in your kaizen events.
Has it ever happened that you got to your kaizen out-brief and the person who chartered your kaizen or the leadership team in the audience ripped your solutions apart? If it has happened to you, remember how demoralizing that was for you and your team? Very often, train wrecks like this happen because they are engineered to happen: the train is sabotaged even before it leaves the station!
I have seen this happen when the solutions the team came back with are not the ones the leaders had expected – or wanted. The root cause? The problem statement or kaizen charter was not specific or measurable: SMART guidelines were not followed.
See the video here.
By the way, if you like those UPS whiteboard commercials, you will appreciate this series of videos. Very lean.
Have you ever sat through a meeting where the person holding the whiteboard pen scrawls sentences of text? How productive did you feel sitting there …. while …. he …. wrote … out …. every …. single …. word? Or how about when the stuff left on the board is like something a three-year old left behind? What does it mean? The motion of the pen certainly meant something in the context of that single instant of conversation, but what does it mean five hours – or five minutes – after the guy sits down?
The UPS commercials and these BNET spots show how your whiteboard in compelling ways. The visuals are simple, supplement your verbal presentation, and help structure your content. If you like this type of stuff, check out books like Back of the Napkin.
VIBCO Award Video January 26, 2009
Posted by Jeff Fuchs in Lean Thinking, manufacturing.Tags: Lean Thinking, manufacturing
1 comment so far
At the Northeast Shingo Prize Conference this fall, I had the opportunity to meet some of the folks at VIBCO. What a great crew! This video was produced to introduce the company after they won a Rhode Island State award. From a leadership, culture, education, and involvement standpoint, this video shows that VIBCO clearly “gets it”. Manufacturers: you may see some things that VIBCO does that you do not. But, for the most part, they look very similar to many manufacturers. It’s not what they have, but how they think and work, that makes them an award-winning lean company.
See their YouTube video here.
VIBCO Award Video January 26, 2009
Posted by Jeff Fuchs in Lean Thinking, manufacturing.Tags: Lean Thinking, manufacturing
1 comment so far
At the Northeast Shingo Prize Conference this fall, I had the opportunity to meet some of the folks at VIBCO. What a great crew! This video was produced to introduce the company after they won a Rhode Island State award. From a leadership, culture, education, and involvement standpoint, this video shows that VIBCO clearly “gets it”. Manufacturers: you may see some things that VIBCO does that you do not. But, for the most part, they look very similar to many manufacturers. It’s not what they have, but how they think and work, that makes them an award-winning lean company.
See their YouTube video here.
States Seek Efficiency Through Lean Techniques January 26, 2009
Posted by Jeff Fuchs in government, Lean Thinking.Tags: government, Lean Thinking
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More state governments are applying continuous improvement techniques based on lean thinking to cut costs, improve service and make employees more productive. For example, Ohio has cut the time it takes to get a complaint decided at the Bureau of Workers’ Compensation from an average of 142 days to 34. Iowa has cut the time needed to obtain an air quality construction permit from 62 days to six. Massachusetts has cut the time to get a death certificate from 95 days to five. “It has taken off like wildfire around the country,” said Teresa Hay McMahon, performance results director in Iowa, where kaizen was first used in state government about five years ago.Read this extensive article dtailing many of the gains.
States Seek Efficiency Through Lean Techniques January 26, 2009
Posted by Jeff Fuchs in government, Lean Thinking.Tags: government, Lean Thinking
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More state governments are applying continuous improvement techniques based on lean thinking to cut costs, improve service and make employees more productive. For example, Ohio has cut the time it takes to get a complaint decided at the Bureau of Workers’ Compensation from an average of 142 days to 34. Iowa has cut the time needed to obtain an air quality construction permit from 62 days to six. Massachusetts has cut the time to get a death certificate from 95 days to five. “It has taken off like wildfire around the country,” said Teresa Hay McMahon, performance results director in Iowa, where kaizen was first used in state government about five years ago.Read this extensive article dtailing many of the gains.
Six Sigma in Government: Focusing on the Customer January 26, 2009
Posted by Jeff Fuchs in government, six sigma.Tags: government, six sigma
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Six Sigma, with its emphasis in many cases on hard, current-year results, is often not associated with government agencies and their processes. One reason is that a government’s mission is as much about providing services to the public and other stakeholders as it is about cutting costs and realizing efficiencies. In fact, there is frequently tension between these two aims.On one hand, government agencies want to provide comprehensive services. On the other, they want to be seen as lean and efficient, using tax payers’ money wisely. Likewise, the public and other stakeholders want – and indeed demand – effective services from government agencies; however, tax increases are always unpopular, even when they are used to expand service levels. Therefore, Six Sigma professionals working in government agencies must shift their focus from financial savings, the primary goal of projects in the business world, and make added value for customers their first priority.
Read the full article here.
Six Sigma in Government: Focusing on the Customer January 26, 2009
Posted by Jeff Fuchs in government, six sigma.Tags: government, six sigma
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Six Sigma, with its emphasis in many cases on hard, current-year results, is often not associated with government agencies and their processes. One reason is that a government’s mission is as much about providing services to the public and other stakeholders as it is about cutting costs and realizing efficiencies. In fact, there is frequently tension between these two aims.On one hand, government agencies want to provide comprehensive services. On the other, they want to be seen as lean and efficient, using tax payers’ money wisely. Likewise, the public and other stakeholders want – and indeed demand – effective services from government agencies; however, tax increases are always unpopular, even when they are used to expand service levels. Therefore, Six Sigma professionals working in government agencies must shift their focus from financial savings, the primary goal of projects in the business world, and make added value for customers their first priority.
Read the full article here.
Relying on Memory Leads to Rework January 26, 2009
Posted by Jeff Fuchs in government, Lean Thinking.Tags: government, Lean Thinking, poke-yoke
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Mark Graban in the LeanBlog points to Chief Justice John Roberts’ flubbing of President-elect Obama’s swearing in as an overreliance on memory in lieu of a mistake-proofing checklist. He has a good point. Just as a pilot or (increasingly) as a medical doctor would rely on a checklist to avoid an error, Chief Justice Roberts could have used his note cards. Now, just like having to “go around” on a landing or opening up the patient to retrieve a sponge, the oath of office had to be readministered.
Whatever you call it – poke-yoke, mistake-proofing, error-proofing, Justice-proofing – looks like a few billion people just saw a huge lean case study!
Read Mark’s deeper discussion and examples here.
Relying on Memory Leads to Rework January 26, 2009
Posted by Jeff Fuchs in government, Lean Thinking.Tags: government, Lean Thinking, poke-yoke
add a comment
Mark Graban in the LeanBlog points to Chief Justice John Roberts’ flubbing of President-elect Obama’s swearing in as an overreliance on memory in lieu of a mistake-proofing checklist. He has a good point. Just as a pilot or (increasingly) as a medical doctor would rely on a checklist to avoid an error, Chief Justice Roberts could have used his note cards. Now, just like having to “go around” on a landing or opening up the patient to retrieve a sponge, the oath of office had to be readministered.
Whatever you call it – poke-yoke, mistake-proofing, error-proofing, Justice-proofing – looks like a few billion people just saw a huge lean case study!
Read Mark’s deeper discussion and examples here.
Value Stream vs. Functional Organization Design January 26, 2009
Posted by Jeff Fuchs in Lean Thinking.Tags: Lean Thinking
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To remove the conflicts between value-stream management and the traditional management found in a functionally organized company, Sunnen Products Company created a new organizational structure focused around value streams. The St. Louis-based machine builder decided to dedicate some resources to value streams while others are shared or remained at the corporate level to have consistent policy decision across the value streams. The story by LEI faculty member Bill Kerber includes a table and chart showing shared resources and the new reporting structure, respectively.
Read the article here.
Value Stream vs. Functional Organization Design January 26, 2009
Posted by Jeff Fuchs in Lean Thinking.Tags: Lean Thinking
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To remove the conflicts between value-stream management and the traditional management found in a functionally organized company, Sunnen Products Company created a new organizational structure focused around value streams. The St. Louis-based machine builder decided to dedicate some resources to value streams while others are shared or remained at the corporate level to have consistent policy decision across the value streams. The story by LEI faculty member Bill Kerber includes a table and chart showing shared resources and the new reporting structure, respectively.
Read the article here.
Report: Getting More from Lean January 26, 2009
Posted by Jeff Fuchs in leadership, Lean Thinking.Tags: leadership, Lean Thinking
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Executives interviewed for the report “Getting More from Lean” by The Boston Consulting Group said lean transformations are difficult to implement for a variety of reasons, including cultural resistance, lack of skills, poor knowledge of processes, and leadership problems. BCG identified seven important keys to implementing a successful lean conversion:
- Sselect strategic, customer-centered projects
- Think big, but start small
- Involve everyone from top managers to line workers
- Tailor your approach to your culture
- Assign dedicated, experienced people
- Use metrics to drive progress
- Communicate, communicate, communicate
The report can be found here. (Published by The Boston Consulting Group, October 2008.)
Report: Getting More from Lean January 26, 2009
Posted by Jeff Fuchs in leadership, Lean Thinking.Tags: leadership, Lean Thinking
add a comment
Executives interviewed for the report “Getting More from Lean” by The Boston Consulting Group said lean transformations are difficult to implement for a variety of reasons, including cultural resistance, lack of skills, poor knowledge of processes, and leadership problems. BCG identified seven important keys to implementing a successful lean conversion:
- Sselect strategic, customer-centered projects
- Think big, but start small
- Involve everyone from top managers to line workers
- Tailor your approach to your culture
- Assign dedicated, experienced people
- Use metrics to drive progress
- Communicate, communicate, communicate
The report can be found here. (Published by The Boston Consulting Group, October 2008.)
Six Ways to Manage Leadership Stress January 26, 2009
Posted by Jeff Fuchs in leadership, work-life balance.Tags: leadership, work-life balance
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Effective leaders know that stress can be a good thing. But stress can also be toxic, especially in the brutal economic environment we’re in. Article author John Ryan found that managing leadership stress comes down to a handful of critical elements: maintaining perspective, exercising, opening up, welcoming feedback, streamlining, and recharging.Read the full article here.
Six Ways to Manage Leadership Stress January 26, 2009
Posted by Jeff Fuchs in leadership, work-life balance.Tags: leadership, work-life balance
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Effective leaders know that stress can be a good thing. But stress can also be toxic, especially in the brutal economic environment we’re in. Article author John Ryan found that managing leadership stress comes down to a handful of critical elements: maintaining perspective, exercising, opening up, welcoming feedback, streamlining, and recharging.Read the full article here.
The Positive Business Manifesto – Hoshin Planning for Employee Engagement January 26, 2009
Posted by Jeff Fuchs in Lean Thinking, workforce.Tags: Lean Thinking, workforce
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Adam Zak recently described the importance of respect for people in achieving lean enterprise goals. Zak points out that even though lean leaders understand that positive leaders, positive work environments, and positive engaged employees produce positive results, few organizations actually create these conditions.
Zak points to the Positive Business Manifesto, written by Jon Gordon. It does, indeed, have some excellent and inspiring points about achieving positivity in the workplace.
Read Adam Zak’s comments and link to the document here.
The Positive Business Manifesto – Hoshin Planning for Employee Engagement January 26, 2009
Posted by Jeff Fuchs in Lean Thinking, workforce.Tags: Lean Thinking, workforce
add a comment
Adam Zak recently described the importance of respect for people in achieving lean enterprise goals. Zak points out that even though lean leaders understand that positive leaders, positive work environments, and positive engaged employees produce positive results, few organizations actually create these conditions.
Zak points to the Positive Business Manifesto, written by Jon Gordon. It does, indeed, have some excellent and inspiring points about achieving positivity in the workplace.
Read Adam Zak’s comments and link to the document here.
Corporate America, Swing Your Ax Wisely January 26, 2009
Posted by Jeff Fuchs in manufacturing.Tags: manufacturing
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In December, IAC Interactive CEO Barry Diller told the crowd at the Reuters Media Summit, in effect, that if you’re making money, you shouldn’t be laying off huge numbers of employees to please an investor base that’s unlikely to be appeased in any case.Although the temptation is to slash expensive workforce in a downturn, being more prudent might be a business advantage long-term. For talented employees, the prospect of job security is one of the best reasons to join a big, publicly traded company. Take that incentive away, and you give smart, energetic people one more reason to join a startup or branch out on their own.
Read the full article here.
Corporate America, Swing Your Ax Wisely January 26, 2009
Posted by Jeff Fuchs in manufacturing.Tags: manufacturing
add a comment
In December, IAC Interactive CEO Barry Diller told the crowd at the Reuters Media Summit, in effect, that if you’re making money, you shouldn’t be laying off huge numbers of employees to please an investor base that’s unlikely to be appeased in any case.Although the temptation is to slash expensive workforce in a downturn, being more prudent might be a business advantage long-term. For talented employees, the prospect of job security is one of the best reasons to join a big, publicly traded company. Take that incentive away, and you give smart, energetic people one more reason to join a startup or branch out on their own.
Read the full article here.
Who’s Keeping Score? January 26, 2009
Posted by Jeff Fuchs in supply chain.Tags: supply chain
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To keep up with how suppliers are performing, many manufacturers have started using “scorecards” to record statistics of their own. However, relatively few have done so in a way that actually generates much useful information, according to Sherry Gordon, president of the Value Chain Group, a supply management and performance excellence consultancy.”Everyone asks what KPIs should be on their scorecard, what everyone else is doing. But in reality, it comes down to what your company needs from the supply chain.”
Read the full article here.
Who's Keeping Score? January 26, 2009
Posted by Jeff Fuchs in supply chain.Tags: supply chain
add a comment
To keep up with how suppliers are performing, many manufacturers have started using “scorecards” to record statistics of their own. However, relatively few have done so in a way that actually generates much useful information, according to Sherry Gordon, president of the Value Chain Group, a supply management and performance excellence consultancy.”Everyone asks what KPIs should be on their scorecard, what everyone else is doing. But in reality, it comes down to what your company needs from the supply chain.”
Read the full article here.
Who's Keeping Score? January 26, 2009
Posted by Jeff Fuchs in supply chain.Tags: supply chain
add a comment
To keep up with how suppliers are performing, many manufacturers have started using “scorecards” to record statistics of their own. However, relatively few have done so in a way that actually generates much useful information, according to Sherry Gordon, president of the Value Chain Group, a supply management and performance excellence consultancy.”Everyone asks what KPIs should be on their scorecard, what everyone else is doing. But in reality, it comes down to what your company needs from the supply chain.”
Read the full article here.
