A cost reduction as we have already defined it in a previous blog results in an improvement against budget. A plethora of cost reductions can result in a significant reduction in overhead, which is increases the margin of every product in the building. Cost reductions immediately affect the bottom line. Cost reduction work has the […]
When working for a company that takes cost reductions seriously, we can expect to see some categories repeated. Let’s take a look at these and what they are: Cost reduction: we spend less on a line item than our budget Cost avoidance: we choose to spend and then decide not to (often occurs with capital […]
The Seven Circles approach (De la Maza, Michael. Rapid Chess Improvement, 2002) uses a repetitive approach to developing automaticity in chess strategy. For those in the automotive world, it resembles a layered process audit somewhat. It requires different levels, different speeds, exercises, and more. We suggest this approach is a good way to intensively educate […]
Consider a rather large project that like so many projects had some difficulties. The project team had a major component (subsystem) delivered from a supplier. The supplier has one set of processes and the customer organization another. This supplier delivers multiple versions of this major subsystem. The customer integrates this subsystem into the larger system […]
Ideally, the human resources function or department represents the employee to management and management to the employee. Sadly, in our experience, most human resources people are inclined to support the individuals who sign their paycheck and the employees are left swinging in the breeze. It is no wonder that employees will gravitate towards collective bargaining […]
Many raindrops make an ocean. We have seen a divisional vice-president sneer at a small cost reduction and tell us it was not Six Sigma material. We didn’t care, because permitting small cost reductions makes the practice part of the culture while still adding benefits to the firm. We have already shown in another blog […]
People in education often like to implement “programs.” In fact, we call this syndrome “program-itis” because it leads to inflammation of the budget. As with many corporation, we see people who want to improve a situation decide to follow “best practices” without verifying that these are, in fact, best practices. They can only be best […]
Risks can have origins in communications and are not the sole province of the stakeholders and sponsors of the project. Sometimes the organization damages itself via the structure. We are all familiar with the functional organization, often referred to as a line organization or stove pipe organization in which we group the company by discipline. […]
This blog post is born out of a response to the Named Risk post from Ed Arnold on www.LinkedIn.com. He left the reply below: In my experience, a lot of time/effort is wasted when project owners change. The knowledge gets lost, even if they leave their spreadsheets and power points behind. The answer: a collaborative […]
Over the years, we have heard executive level individuals cry out for cultural change in their organizations without understanding the ramifications of what they are saying. With cultural transformation as usually touted, we are talking about massive levels of upheaval. The upheaval approach can be counterproductive if it does little more than produce a culture […]