Reaching Another Cross Road

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A Story Of Capacity Planning

Wien is my eldest daughter and she is 6 years old.

Last evening she happily approaches me to ask for all the old news papers that pile up at the corner of my house. She told me she wants it all for her recycle day organizes by her school 2 wk later.

I look at the pile, wow, it is a lot. I m ok to give away the old stuff but I wonder how she carry it to the school. It is too heavy to her age.

All right, ask mum to help you to carry the papers on the day you need. I only allow you to take half of it since it is too heavy to you and mum, I say.

But she refuses, she wants it all and she tells me she can handle the papers with her own. She is not requiring assistant from anyone. Hmm… I am interested to know her idea, why she is so confident she can do that with her little hand.

The answer from her is very simple and straight forward. She will carry some paper to the school every morning and she believe she can transfer all in 2 weeks time.

OK, now I agree to release all the paper she want for her schooling activity since answer from her is valid and justifiable.

I m impressed she can do such capacity planning at the age of 6. Before that, I thought this is a difficult topic because I have seen many experience IE unable to handle it well.

Girl, you know, you can be a good IE!

The Return of 10 Year Cycle

Today is a special day in my history. It is my birthday and it is a day worth to remember. I suppose to celebrate my day with fun and joys, but seem like my wish doesn’t come true.

Looks, this is the special gift I receive from the equity market. The global equity markets melt down due to the worry of worst than expected global economy slow down. This is the worst economy crisis that I ever experience since year 1997, exactly 10 years the cycle repeats. The world market started to shows some sign of crack after huge loss reported by Citi Group, Merrill Lynch, Bank of America and other key industrial players.

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Don’t forget, these are the Six Sigma companies in my list. But they are delivering result that big enough to shake the world wide economy. What happen and why ?

Now people started to review the effectiveness of Six Sigma approach in the equity market. Can Six Sigma approach powerful enough to solve the economy problem in US ?

Six Sigma & Lean Performance Measure

I receive a mail from Anas regarding the method of Six Sigma or Lean performance measure and monitoring. The mail from Anas as below

Dear BB

I am an intern student working in the CEE region for a non-multinational banking consultancy. We have recently received a proposal from GE Capital, who as you know, practice extensively the Six Sigma. I had no knowledge about this concept whatsoever before, so I started researching it from a managerial perspective (we are management consultants!), and though it is clear overall I still have one question, which probably you might be able to answer!

We are preparing a project proposal for the tender, and in it we need to specify how will we evaluate the project and the achievements, otherwise what are our quality criterias. We would like to draft this part in a way it is in line with the 6 sigma and lean principles, just as the rest of our proposal! So my question is whether there are some kind of a set of tools and techniques for evalution in lean and 6 sigma?

Thank you for your help in advance,

Anas

Junior Consultant

Here my answer :

From my point of view, we look at Six Sigma or Lean as an systematic improvement program that help company achieving business objective. Key Performance Index (KPI) is the indicator that establish to benchmark / monitor company performance in business operation as well as Six Sigma and Lean program.

Did I answer your question ?

The Aunties Talk – Six Sigma & Lean Topic

While browsing through my wife’s personal blog, accidentally I spot the post through the link attached on her page.

According to my wife, they are the aunties level who have limited knowledge in six sigma and lean topic, but they are trying to write something on this topic and the fun is when she ask me to give some comment on pots.

Well… not so………… bad lah… can lah…….:-) at least the effort is there…

Voice Of Customer – A Proton Case

Proton, is a company I like to talk about. It is a company who do not care about the voice of customer for the past 20 years. They run the business with their own way, develop product they like but not the market like, and do not emphasis too much effort in product quality and after sale service.

You may ask, how this company can survive for the past 20 years! Yes, this is a true success story of a company heavily support with influence of political power. Anyway, they only manage to survive in the boundary of Malaysia, not other part of the world.

However, the sunny day cannot be last for ever. Those Proton big shot sitting in the big office seem like do not have the awareness of disaster. Continue their traditional business practice and selling their aging products.

If I remember correctly, Proton started surfer a big loss about 3 years ago due to stiff competition for other local car manufacturer like Perodua, Naza and other Japanese big name. Resulting of over 50% loss in market share and share price depreciation. The big shots were asked to leave due to criticism from the share holder due to the poor performance.

The second man from Perodua (Datuk Syed Zainal Abidin Syed Mohd Tahir) was invited to take over the role. Hopefully he manages to change the situation. Since day one he takes over the position, I expect him to bring in the business strategies from his previous company as well. Hmmm… he meets my expectation finally. At least they willing to open their ear and listen to the voice of customer. Deliver products that the customers want.

Even with a minor change, but the customers are happy with it (at this moment). I see some sign of recovery for Proton under the new management.

Keep it up…

In Search of Stupidity

Early morning, I see a name of a big shot appear in my mail box. Oh no, must be another status update request on one of my “Screw UP” project. Quickly I open the mail and check what he wants.

Piusss…. it is just an unofficial mail with a power point attachment contain of the introductory part of the book In Search of Stupidity, over 20 years of high-tech marketing disasters by Merrill R. Probably my name was wrong clicked and therefore I receive the mail.

Generally, I seldom pay attention on the junk mail flying into my mail box, most of the time I just delete without screen through the content. Anyway, since this from a big shot, it draws my interest to read through the content.

From the title, the books doesn’t give me a good impression because I don’t like the word like “Stupid”, “Concern”, “Cannot”, “Failure”, “Impossible”. I quickly read through the introductory portion and keep it one side.

Basically the book is just record the failure history of the few IT companies in the past 20 years. I can sense the original objective of the author is to provide a reference of lesson from the past, so that readers do not repeat the similar mistake in their business decision making. The author also tries to make use of the opportunity to pin point the mistake of Happer & Row in their publication: In Search of Excellence: Lessons from America’s Best-Run Companies

Well, pin point people’s weakness or mistake is much easier than appreciate the strength that people have. This is why people prefer to spend more time in fault finding instead of developing themselves by learning something good from others.

Don’t forget, all idea comes with a motive of objective behind, regardless the original intent of an idea is to be good or bad to the society. Objective only meet when ideas were executed at the right time, right place, right environment and getting people’s support. (天时地利人和).

A success story of a company once upon a time may not be necessary applicable for you in different millennium, geographical location and culture. Similarly, a failing story may not be bad for all. Therefore, why bother so much about the success or failure of the past?

People with too much of worries to fail will have problem to move forward. Too much of concern, not dare to take up new role, new responsibilities and challenges, they prefer to stay in a comfort cubical, day in day out doing the same task.

I had seen peoples spend hours in a meeting just discussing people’s mistake, discussing the corrective measure to prevent themselves to be stuck into the same trap. Or trying to twist and turn the situation and get themselves out from the story.

Answer to you, the best Poka Yoke solution today is; don’t do, just go back and sleep.

Risk is unavoidable in our daily life, every single activity we do involve risk, risk level varies depend on the complexity. Past experience is very important to make risk more manageable. No doubt, we can tab on peoples experience, but how effective is it, is still another open topic to discuss. I still believe personal experience is the key to manage the risk.

You may argue; how to gain the experience if you don’t have the change to experience?

Simple answer to you, Never Stop Learning and Never Stop To Involve.

Mc Donald Production System II

Toyota production system classifies WIP or Over Stock as one of the major waste in the production system. But in Mc Donald, people seem like having different point of view.

Photo below shows the WIP accumulated on the soft drink dispensing machine. I observe this while waiting for my turn to place order in one of the Mc Donald restaurant in Melaka Raya.

This is definitely not a good idea to me. In fact, this is not the 1st time I observe the similar case in Mc Donald, just can’t understand why the management allow such practice repeat again and again.

Simple question; why you produce if you don’t need it?