This WSJ Article About Lean Isn't Terrible (via GE and Larry Culp) - podcast episode cover

This WSJ Article About Lean Isn't Terrible (via GE and Larry Culp)

Jan 04, 202212 minEp. 318
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Episode description

Blog post: https://www.leanblog.org/audio318

The Wall Street Journal has an epic track record when it comes to always getting it wrong when they write about Lean or the Toyota Production System. They always focus on just the “just in time” pillar, ignoring “jidoka” (built in quality) as the other pillar (per Toyota). They ignore many other aspects of TPS, like the culture and the management style.

See some of that track record, including recent pandemic supply chain articles.

You're normally better off reading about Lean from the source.

But, they did better in this recent article about General Electric and CEO Larry Culp (who knows Lean very well from his time as CEO of Danaher):

Larry Culp Rewired GE. Then He Unwound It.

Transcript

Hi, it's Mark Raven here. Welcome to 2022. Happy New Year. I have been a little negligent in doing some blog posts. Recordings here, I've been blogging less during the pandemic I plan on doing more blogging in 2022. But anyway here is a post. This is going back to November 17th 2021, you can find this post at lean blog dot org, slash audio 31 Eight, the title of the headline on the post says this Wall Street Journal article about lean isn't terrible via GE and Larry Culp.

So the Wall Street Journal unfortunately has an epic track record when it comes to just always getting it wrong when they write about lean or the Toyota production system, they always focus on the just-in-time pillar. They get a lot of that wrong, but they ignore Concepts the other pillar of the Toyota production system judoka or

built-in quality. There's a link to the Toyota production system page on Toyotas own website in the post again lean blog dot org slash audio 318 the the journal you know sadly usually ignores many other aspects of TPS like the culture and the management style. I've linked to a number of posts I've written over the last 15

years. Looking at that Wall Street Journal track record Eluding, some reason articles about pandemic Supply chains where they really mischaracterize just in time again, you're normally better off reading about lean from the source, and I would point you to Toyota's website on that, but I'll give credit to the journal when they, they did better in this article from November 20 21 about General Electric and their CEO Larry call somebody who knows lean

very well from his time as CEO. Dana, her eye. He's been announced as one of the keynote speakers at this year's AME conference. Later 2022 in Dallas. Hopefully, I'll see you there and we'll hear Larry called speak. So the headline from the journal, said Larry call pre-wired GE and then he Unwound it. So the link to the article should be a free link that allows you to read the article.

Even if you're not a subscriber to most you, No, the big news is the quote, unquote unwinding of GE splitting up in the separate companies as was announced recently. Recently, when it was November, I'm more interested in the rewiring of GE, you know, the history of GE is that they really got in the Six Sigma in the Jack Welch era. Then they Embrace lean in more recent years. Larry Culp is, it seems, you know, a die-hard lean or TPS

guy. And I'm not trying to turn this into Eileen versus Six Sigma debate, but it said in the article you before, Larry called, decided to break up GE, he had to break it down. And as the article details called wasn't focused on, you know, kind of old, you know, kind of GE approaches to financial engineering. He was visiting factories and he was inspiring, if not leading Improvement at an operational level.

So the first example, from a factory in South Carolina, it said this in the article using white green yarn, the group traced, the Journey of a skill blade through the miniature plant, they discover the blade, which had been piling up at some stations traveled, nearly three miles on its 85 day. Journey Through the plan, the solution was clear, rip out the old machinery and rearrange, the production line to shorten, the green string in the process. GE upgraded.

The machines to help stop the log jams, when finished in early 22, the blade traveled just Feet and production time was cut by 42 percent. So again to recap they reduce they reduce the distance from three miles to 165 feet. So the meaningful detail here is core is of course not the idea of using light green yarn. Let's not all rush out to buy light green yarn. The key point is that they traced out the flow and realize that rearranging machines can

reduce travel distances. Which also reduces lead times and inventory levels in the article again. It said in the process call played bear an organization that belied its reputation for operational and managerial Excellence pouch. So you know GE generally has an amazing reputation when it comes to operational and managerial Excellence, I had to look up the word belie to make sure it meant what I thought it did. The word belie means.

To give a false impression of, to present an appearance, not in agreement with or to show something to be false or wrong. So again out, I mean, there's there's reputation and then there's the reality, the shop floor level and that doesn't always line up with reputation or perception again from the article. It says mr. Culp arrived at GE with reputation as a high priest in the world of lean manufacturing. I mean a management philosophy

that seeks to cut. Up waste and create a culture of continuous Improvement. So ah thank you. Thank you, Wall Street Journal for mentioning, the idea of a culture of continuous Improvement lien is usually portrayed, as you know, the risky elimination of inventory in that esteemed publication there their actual writing about just in time belies their reputation as a knowledgeable

business. Publication, again, back to this article, though, it said, one of cops first exposure, The lean management was in the early 1990s when he worked in an air conditioner, Factory in Japan for a week as part of a training exercise. He said there's nothing like being screamed at in a language. You don't understand. It's a tough love environment. So the key Point again, is not screaming at people, that's a decidedly old-school. Shinjitsu approach Jolene, that's not practiced by Toyota

people. Today when they go to work with suppliers or nonprofits through their tsst, Regroup, but it's great. I think that Culp is quote addicted to lean Improvement. As the article says, again, back to the article, they wrote the concept of lean manufacturing was unofficially invented in the middle of the last century out of the work of a Toyota engineer named.

Taiichi Ohno who was tasked with making production more efficient in the post-world war two years in Japan, the system centers on an approach called Kaizen, which focuses on seeking continuous Improvement through in-depth sessions. Is to assess to assess employees progress, that's easier. That's difficult to read out loud, in-depth sessions to assess employees, progress, it eventually became the Toyota

production system. So, again, I'm glad that the journal is, mentioning the Kaizen approach to continuous Improvement. It's not always, you know, sessions, if you will it, it happens in small increments every day. But I'm happy that the journal

is passing along. Corpse expertise, you know, in an art and it said, you know, they're they're kind of directly, citing him of how mr. Culp described lean or Kaizen, that there's three core ideas at work, one focus on the customer to elimination of waste 3, ruthless prioritization of work. Now that third phrase, that's not something I've heard from Toyota folks before some of that. And I'm not exactly sure what he means.

That said, in a typical strategy deployment approach that that management concept companies or Healthcare organizations shift away from everything being a top priority to being more selective, you know, it's better to get a few key, things done in the move on to more, rather than trying to do 200 or 300 projects. All at once, this is Something I've seen a Doctor, John Tucson has described in his writing and teaching for healthcare. I'm also happy that the journal

pointed out. Lean isn't just about Factory operations. They used to term. I love. And I've heard it recently from some folks carpet land. So, again, in the article, it says danaher eventually used the lean philosophy to run more than its factories. Its usefulness stretched into quote carpet, land is office based activities, were called when Even a task such as processing, an invoice or preparing a regulatory. Document can become more

efficient in time. Expended in resources used, And I'll add, you know, it's not just a matter of efficiency. I mean, quality matters and improves also through Lane, there's another cult than lean success story in the article, it said in early October, mr. Culp spent five days of the GE Aviation plan in Lynn Massachusetts, whereas Kaizen assignment, put him with a small team studying, a military engine

part that was hurting on time. Deliveries, the problem turned out to be an issue with welding on the part leading. The change has a twin from yielding. Usable part 59 percent of the time to 100% of the time, nine different teams and Lynn that week made changes the cut costs by two million dollars and reduced production Time by 62 days, according to a memo mr. Culp sent to employees.

So, again, it's great to hear that, that mention of quality, it's great that Culp understands lean and that he's leading the culture change. I think it's fantastic. They just willing to participate in Kaizen events as John Toussaint, did Himself as a healthcare CEO. So you just hope that culture change and the lean methods scale beyond the CEO being directly involved. The article shares culp's view on standard work where he says.

A basic concept of lean management is to create standard work processes in order to continuously improve at the same job is done differently. Every time or varies by worker there was no basis for finding Improvement, the same job must be done the same way. Every time no detail is too small. It says, quote, according Culp standard work is simply identifying the work steps required and the sequence of those steps the time required for each that go into making a process repeatable.

Cops said this in 2020. I'm getting toward the end of the article in the end of my post here. I'm also happy to hear Larry called talk about the application of lean to diversity equity and inclusion efforts as people like my friends, Christopher, Chapman Diandra, Wardell and Joy Mason or doing. It said in the article. Mr. Culp is said that lean processes are helping GE find ways to improve the diversity of its Workforce.

I love to learn more about that. Final thing may be a bit of a fun Point does Larry called practice lean at home. It says no quoting Culp in the article if you came and looked at my garage or my closet, you wouldn't see anywhere near the orderliness that you might see in a factory that I've been associated with. I usually end my training sessions with quote, but don't try this at home.

I mean it's that's funny. I mean you look you my view is that you can apply lean mindsets and practices at home if that suits you and if it makes life better or easier for You but you know culpas have his hands full with Dana her and now GE I won't fault him for leaving lean thinking at the office or the factory. I'm so if you want to read the full Journal article there's a link. You should again be able to read it without a subscription by going to lean blog dot org. Slash audio 318.

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