In this week’s blog, I am continuing with a series of great leaders’ and thinkers' thoughts on different aspects of manufacturing. In the last blog, the discussion point was cost improvements as it was budget-focused. This blog is now moving on to the quality of the product going out the door.
Tom Peters, a Man of Excellence
This blog will focus on a quote from one of the top 10 Tom Peters quotes whose work I was introduced to very early in my career through his book In Search of Excellence, and what he wrote in that book is still pertinent today. I include a brief introduction below for the younger readers, and not included in this mini-bio is the fact that he spent time in the United States Navy, a very good foundation for discipline, as I know very well starting, having started off in a navy as well.
“Peters was born in Baltimore, Maryland. He went to Severn School, a private, preparatory high school, graduating in 1960. Peters then attended Cornell University, receiving a bachelor's degree in civil engineering in 1964 and a master's degree in 1966. “He returned to academia in 1970 to study business at Stanford Business School, receiving an MBA followed by a Ph.D. in Organizational Behavior in 1977. The title of his dissertation was "Patterns of Winning and Losing: Effects on Approach and Avoidance by Friends and Enemies." Karl Weick credited Peters' dissertation with giving him the idea for his 1984 article: "Small wins: Redefining the Scale of Social Problems." “While at Stanford, Peters was influenced by Jim G. March, Herbert Simon (both at Stanford), and Karl Weick (at the University of Michigan). Later, he noted that he was influenced by Douglas McGregor and Einar Thorsrud. “In 2004, he also received an honorary doctorate from the State University of Management in Moscow.” Source – Wikipedia at: https://en.wikipedia.org/wiki/Tom_Peters
One of the quotes that he made that will be discussed in this blog is:
Source – Supplychaintoday.com
In my book, The Plant Manager, quality is discussed around what is required to support this initiative, and why it is crucial to the longevity of the business. The impact of poor quality is covered as well, both as concerns material going out of the plant and material brought in that is part of the value chain.
The Cost of Quality
"Almost all quality improvement comes via simplification of design and of manufacturing layout, processes, and procedures."
The first point that must be understood is that the process of producing a quality product costs money to monitor and evaluate. These processes are sometimes hidden costs and perceived as waste, but no matter how you look at it, there is a cost attached that is not that apparent until it is challenged.
Let’s look at the four big hitters associated with achieving quality:
People – Quality departments seem to grow as they develop. More technicians are required to take and monitor samples. With that, comes in supervisory levels to manage these additional resources. There is a trend to move quality to source that is discussed in my book, but quality assurance is still required, such as someone collating data for high-level SPC trends as a tool for management, assessment of quality systems, and investigation of customer/consumer complaints.
Samples – Unless nondestructive testing is done on what is being produced, samples are removed from the line and checked. This holds true for all industries. These samples are seldom returned to the production lines and are destroyed or are entirely or partially reworked. This is hidden waste. All waste must be exposed. See my post on Taiichi Ohno and identifying waste for more on this.
Downtime – This, in my experience, is one of the biggest hidden losses due to quality any plant experiences. On startup process checks, lines are stopped while waiting for results. When operations are running, there are intermittent stops to take samples. In many industries, there are stoppages for cleaning driven by quality that is mostly for hygiene purposes.
Laboratory Equipment - This is usually one of the capital costs, in today’s terms, and because of the sophistication of the equipment, it is very high. Added to this is the servicing of the equipment annually by the suppliers, training of the users, and other consumable maintenance parts that need frequent replacement, including possible chemicals required.
What Tom Peters did in the run-up to his first book was, with a team, visit 62 various companies of which 43 allowed him a closer look. What was being looked at was, “Who is cool?”, “ Who is doing cool work?”, and “Where is great stuff going on?” This is the thinking that, in all probability, forms the foundation of this blog’s quote.
Almost All Quality Improvement Comes Via Simplification
Let’s look at Peter’s quote and see where the opportunities are in and around your plants. Quality improvement comes via:
Simplification of Design – All processes should be simplified, taking out unnecessary steps and actions. On a fixed operation that has been purchased, this will, in all probability, not be possible. Then, using improvement teams, small changes can be made that, without doubt, improve operations. The opportunity comes in when a new or upgraded plant and process are implemented. Time needs to be spent going over every operation looking for simplicity that will reduce costs and achieve good results.
Manufacturing Layout and Processes – This can be an ongoing nightmare. The reasons are usually space constraints that are created by putting the plant and processes in restricted spaces, which can result in minimizing design requirements all around. On the other side of the coin, having to transfer the process material to another, remote area leads to various losses and additional capital costs. This is sometimes done by design, but more often than not, it’s just a workaround. The plants need to look for cost-effective optimization in this area if given the chance during upgrades.
Procedures – This is also covered in my book. It is very important that they are up-to-date and kept enforced. The point made by Tom Peters is, the standard operating procedures (SOP) must be simple, able to be easily be followed, and quick-reference sheets should be readily available. Any good SOP will start with pages and pages of information on the equipment, safety, and what to do and not to do before getting to the “nitty-gritty” of how to start and stop the machine. It’s a “fool’s guide” on what needs to be done when a variation in output is experienced or if there is non-conformity in quality. The comprehensive SOP’s are really great and necessary for training and are usually kept in the manufacturing office or library. At the “coalface” (the actual point where the real work is done), simple directions that add value as a ready guide is all that is needed. This is a reference of what the operator already knows to ensure no balls are dropped and must be simple, clear, and concise. This is similar to an airplane pilot’s checklist, which is consulted before takeoff and landing, versus the entire operating manual for the aircraft.
This is where, once again, the “awareness” needs to be driven as there are many people in the plant who are doing a job and do not consider the impact it has or where improvements can come from as they do not really have an interest in doing this. Again, it’s the plant manager and the management team who have to instill this thinking and understanding to the workers.
The blog today looking at simplification in the plant, but must be extended to all departments, not only production, but logistics, finance, and HR, as so much time is lost on duplication with unnecessary checks and balances that were started when doing things done manually and never dropped when computer systems were put in.
Finally, ask, “Are we cool, doing cool work and great stuff?” If not, look for opportunities to close any gaps.
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Until next week…
EJ
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