Category Archives: imagineering

Focusing on Waste: Part 2 – Trade-offs

Continuing with the theme of focusing on waste rather than “just on improvement,” the secret to making breakthrough gains or “optimization” is in surfacing and addressing the hidden assumptions.

Optimization is the process of evaluating the trade-offs between two things that seem to be in conflict.

For example, as you increase inspection, you increase costs but you decrease the defects that get through. If you shorten your production runs, you can reduce your inventory but your production will decrease because change-over time required to change machines from producing A to producing B means more downtime.

With optimization, you try to find the exact point that minimizes the total cost.

But every optimization problem has some “givens.”

Taiichi Ohno, creator of the Toyota Production System, and his followers achieved breakthroughs by shifting their focus from finding the best trade-off to working on these “givens.”

When we talk about root cause analysis, we mean to focus on those “givens”  or “underlying assumptions” that cause you to try to find the path of least waste.

Once you find and address the underlying cause, assumption, or given, you can find and move to an optimum that is at a totally
new level – often referenced as the “Imagineered level,” or the way things could or should be if everything was right! 

Silo Treatment?

Bill Conway always said, “The biggest waste is found in the interfaces and interstices.”

Or, said another way, the waste is found at the seams of the value stream as it crosses  different organizational boundaries, which are often referenced as the “silos” in which many of us work.

Some time ago, we were involved in an exercise in streamlining office work and had set up an order processing operation that had lots of obvious waste analogous to the sort commonly found in office processes. The simulation was conducted a number of times, usually in one large room with different departments in different areas of the room.

Participants were always able to identify large amounts of waste, because it really is much easier to see waste in someone else’s process than in one’s own. The simulation helped participants to see the waste and then to draw analogies to opportunities they had overlooked in their own work. So light bulbs would go on and participants would generally be able to redesign the process to increase throughput up to ten-fold!

Then one day, the training facilities were different: no large room, just one mid-sized room and a number of breakout rooms.

Even more realistic, we all thought… the Credit Checkers were in one room, the Order Processors in another, and so on.

But when we reconvened to debrief, everyone seemed oddly comfortable with the whole process they had been executing. They identified little things they could improve within their small group, but they missed the elephant in the room — perhaps because it was in next room, or rather the hallway where no one owned it.

As Bill always said, the big waste was in the “interfaces and interstices… and, as noted in a previous post,  “It is easiest to think outside the box, when you are from outside the box” (or silo!).

5 Innovation Catalysts

Recent posts have focused on common barriers to innovation, so today we’ll share five catalysts or tools that can help an organization become more innovative.

  1. Capitalize on a need… It has often been said that “Necessity is the mother of invention.” One company observed that when their very survival was at risk, they began to implement a program of Continuous Improvement that called on everyone to contribute innovative implementable ideas. Because they had to develop new and better ways of operating, they did! Similarly, a start-up company with few resources must innovate or quickly wither away. However, it must be less scary to try something new and risk failure than it is to stay with the status quo, and people at all levels must have a sense of “amnesty” to reduce the risk of sharing new ideas.
  2. Involve outsiders… “It is easiest to think outside the box, when you are from outside the box.” Outsiders often come up with the best innovations, because they have no ties to the status quo. But outsiders often have a difficult time effecting real change because they are outsiders. A senior manager of a once innovative company wryly observed, “We say we like to bring in outsiders with fresh ideas, but when they share them we explain that’s not the way we do it here.”
  3. Know the marketplace…  Market instincts can sometimes be more valuable than technological know-how or financial heft. For example, when Xerox PARC created the mouse, it was simply amazing. But it cost $300 to build and only worked for a few weeks. To make the mouse truly innovative required something quite different: constraints. Steve Jobs had the vision and market insight to add the constraints: the mouse must cost less than $15 to make and operate reliably for two years.
  4. Imagine perfection… To foster true process innovation we must summon the courage to acknowledge the deep areas of waste that are part of our standard work. This might include inspection or rework or moving or waiting that is so intrinsically a part of the way we work that we cannot envision the work without it. Summon the courage to put that waste on the table, calling it what it is. Go ahead and imagine the process without the steps that add no real value — that just compensate for a flaw somewhere in the process — and then take the time to search for ways to get to that vision.
  5. Leadership… Nothing is more important than the right form of leadership to empower and unleash an organization’s creative talents and energy.  An innovative culture is not the default position — it must be carefully created.

Read the full article…

Challenging Assumptions?

To achieve a significant breakthrough through a significant process innovation and improvement, we must challenge and overcome assumptions.

This type of process innovation is one that significantly changes the speed, the cost, and/or an aspect of the quality of a process or service, and has the potential to change the competitive landscape.

A few examples:

  • An insurance company overwhelmed the competition by shortening the time between claim filing and payment from weeks to hours.
  • A small bank picked up market share through a process innovation reducing the number of days to approval by 80%.
  • Dell Computer went from upstart to market leader with a process innovation that dramatically shortened the time from start-of-build to ready-to-ship — enabling them to build-to-order and dramatically reduce manufacturing costs.

But every business operates under the constraints of operating assumptions, many of which are not recognized as such because they are considered simple  facts-of-life; because they are so ingrained in an organization’s paradigm that we assume they are irrefutable facts.

To challenge these “facts” is, of course, easier said than done.  We all want to achieve a process innovation that will remake the competitive landscape in our favor, and we all want to make improvements that will enhance our competitive position in the marketplace. But it is hard to accomplish these types of continuous improvements when people are running hard just keeping up with the day-to-day workload, and when some of the barriers to attempting significant changes appear to be irrefutable facts-of-life.

Consequently, game changing innovations are rare.

If your organization is going to identify and execute process innovation, you have to have created both the right human conditions and the best methods to successfully identify, challenge, and reverse the constraining assumptions that are keeping you and your competition trapped in the status quo.

The Way Things Could or Should Be

Our previous post discussed various ways of identifying waste, which can be defined as the difference between the way things are and the way things could or should be.

Imagineering” is an ideal process for making this type of determination, and for goal-setting, developing the best project plans, and for putting improvement ideas into practice.

As you may know, Imagineering was popularized in the 1940s by Alcoa to describe its blending of imagination and engineering. It was also adopted by Walt Disney a decade later, and is often referenced as a means of achieving “blue sky speculation,” a process where people generate ideas with no limitations…, where they try to achieve what “could or should be.”

Over the years we have consistently found that well-executed Imagineering workshops help people unleash their organization’s true potential and achieve breakthrough improvements.  Much more than traditional or simple brainstorming, the process starts with a strategic approach for imagining perfection, and ends with engineering this ideal state back down to earth.

You might consider the use of Imagineering as a means of generating innovative ideas and applying the principles to set goals and achieve breakthrough improvements.