Sunday, 13 October 2013

Oh No..!

Taiichi Ohno was an Executive at Toyota and established many of the principles of  what became known as the Toyota Production System, called Lean Manufacturing in the USA...

Based upon the teachings of Edwards Deming he introduced, he developed the concept of the "Seven Wastes" or Muda in Japanese.

The Seven Wastes are;

1. Defects - waste due to manufacturing error
2. Overproduction - scheduling and planning
3. Transportation - movement of components and goods
4. Waiting - non productive time
5. Inventory - control and availability
6. Motion - efficiency of movement and flow
7. Processing - timing and sequence of operations

The principle being that eliminating or at least reducing each of these Wastes will improve the business - so far so good...

In order to evaluate these Seven Wastes, there are a whole range of measurements and statistics that are available to the Managers and supervisors - but one of my favourite is perhaps the simplest..

Welcome to the Ohno Circle...

This is simple a circle of painted on the floor of the production facility inside which Managers must stand and observe where and how improvements can be made

So if you walk around a manufacturing facility and see someone stood in side a circle making notes - they are not on the naughty bench they are making notes on what can be improved...


There are two downsides to this particular process, in my view;

1. The location of the circle will mean that not all things can be seen...

2. The height of the Manager will limit the view...

This phenomenon was first noted by another Japanese Management Guru - or Lean Sensei, called Mr Oba. Being only 4ft tall he noticed that much of the factory in which we worked was too high for him to see over.

So he introduced a rule that became known as the Oba Gauge; meaning that nothing should be able to block the view thus creating a "visual workplace" - it also became known as the 4-foot or 1.3 metre rule...

Notice how it's always the short guys that make the rules - would have been simpler to give him a box to stand on...

So here is our challenge as Entrepreneurs and Executives...

Using the principle of the Ohno Circle and applying it to your company or department, we have to solve three questions...

1. Where should the circle be placed..?

Metaphorically, where is the best place to be able to get a great view of your business..? It will be from above so that all aspects of your company can be seen without interruption - especially taking in to account the midget principle of the Oba Gauge.

Answer - someone who has an overall picture of your business operation and can see the division or department as a whole; or at least a team of people that collaborate..

2. Who should stand in it..?

There is another principle of management called Groupthink. This is a psychological phenomenon that shows up in teams groups. In principle, the desire for harmony and conformity to the group outweighs the desire for change and improvement. Essentially people don't want to rock the boat because even though it is sinking, it is sinking comfortably.

Answer - an outsider with no relationship to the team

3. How often should they stand in it..?

Looking at a process or environment once will give you an image, looking at it over time will give you a video in which trends and subtle fluctuations can be seen, as can the consequences of any changes made. 

As the Hawthorne Studies, specifically the work by Elton Mayo between 1928 and 1933 would demonstrate; the simple act of observing a manufacturing or assembly process, increases it's performance. People like to think that they are being included and having attention paid to them and when they do - they work more effectively..

This became known as the Hawthorne Effect..

Answer - Improvement is a process not an event; the process should be continuous

How MOOing can be good for you...?

This is exactly part of the value that Coaching brings to you and your team, so if you'd like to bring the benefits of MOO; Mayo, Ohno and Oba to your business - simply get in touch and we can explore the possibilities..

Thanks for reading and hope you enjoyed...

Contact - davidholland@resultsrulesok.com

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