Archive for the 'innovation' Category

Back in the fall 2007, the AIA Practice Management Digest asked Greg Howell, Executive Director of the Lean Construction Institute, to convene a panel of design and construction lean thinkers to write on lean design (for construction). I was one of the invited essayists. I wrote a paper with Greg and John Barberio. Our topic was Target-Value Design.

We proposed that Target-Value Design (TVD) turns the current design practice upside-down.

• Rather than estimate based on a detailed design, design based on a detailed estimate.
• Rather than evaluate the constructibility of a design, design for what is constructible.
• Rather than design alone and then come together for group reviews and decisions, work together to define the issues and produce decisions then design to those decisions.
• Rather than narrow choices to proceed with design, carry solution sets far into the design process.
• Rather than work alone in separate rooms, work in pairs or a larger group face-to-face.

Read the rest of this entry ¶

As 2007 came to a close, lean design and construction got some well-deserved press. The manufacturing community shares their successes and learning about lean through Association for Manufacturing Excellence (AME) and their "Target Magazine". Most lean manufacturers operate in buildings that were neither designed or built lean. That can change. Karen Wilhelm, writing for Target, spent quite some time investigating the lean construction movement. She shares what she learned in a cover story, Collaboration Makes Construction Lean.

"The culture of heroes works against the smooth flow of work."

I won't spoil the article for you by summarizing it. Not only does Karen write well, she shares a vision of what we can be doing in the built environment. I will offer one teaser… Read the rest of this entry ¶

I've been a long-time reader of Business 2.0. Good writing, timely articles, and clever presentation made this magazine great. Unfortunately, my view has been in the minority. Circulation has fallen steadily along with ad pages. A magazine can't keep publishing with that trend even when it is owned by Time, Inc.

Long live Fast Company!

I renewed my subscription mid-September and they processed my credit card. Two days later I read in the Wall Street Journal that Time would no longer publish B2.0. I feel swindled. Time is extending my Fortune subscription for one issue for each two remaining B2.0 issues. That doesn't make me happy, particularly since they took my money only a few weeks ago. One-for-one would be a fairer deal.

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Istarted mind mapping in the mid '80s. It was part of a program at my company to accelerate our learning. It was coupled with a speed reading program and rapid recall training. For the most part, all three stuck. But it's mind mapping that has been most useful over 20 years later.

Tony Buzan introduced the world to mind mapping. Essentially, it's an association technique for taking notes or collecting thoughts in a word-art fashion. Ideas are linked one-to-the-other making associations. According to Buzan, and in my experience, mind mapping increases your recall and helps make surprising connections of otherwise seemingly unrelated ideas. It is a great approach to use for planning, in preparation for innovation, and when in the midst of doing something creative.

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Thanks go out to Joe Ely for spreading the word on the Quick-n-Easy-kaizen community. A few people have been sharing their QnEKs. The experience so far has been good. And we're working like crazy to make the experience better. Thanks Kim! There's no guide to using the site. My aim is that it will be quick-n-easy. We'll see.

Please stop by to see what we're doing. Share your latest small improvement; leave a comment on QnEKs others have share; and leave us a comment on your experience. And by all means, visit again in a few days. I've got big plans for the month of August. You won't want to miss out!

There is such an urge to get our projects right. Not approximately right. Right, as "Do it right the first time." Projects are not like that, especially design projects. Norman Bodek has been speaking about two principal ways we learn: copying the successful actions of others and making mistakes. If making mistakes is part of learning, then we better be making many of them to produce successful projects. BW SmallBiz agrees: Fail Fast, Fail Cheap, June/July 2007, by Doug Hall.

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I frequently say to myself, "I've got to read this book again." But I usually don't make the time to do it. That's not the case with The Dip, by Seth Godin. I have to admit that not only have I been waiting for the book, I would be anticipating any book by Seth. Call me a groupie. I'm ok with that. This guy has an uncanny way of bringing an idea from the edge to mainstream. But still I was surprised. While Seth promoted his book about quitting, the book is really about mastery.

For my money, there's no better book about mastery than George Leonard's Mastery. He describes both his journey to embracing mastery and the nature and practices of mastery. However, Seth presents the choice we have of mastery. You can quit or you can stick, it's your choice. The earlier you decide the better.

Seth's examples are palpable. Read the rest of this entry ¶

Innovation can seem like such a big idea…just out of the reach of every person on your team. Matthew May wrote a book and a ChangeThis manifesto of the same name where he shares another of "Toyota's (lean) secrets." Everyday innovation is not only available to every team, it is the skill and practice that will separate you from your competitors. Read Elegant Solutions manifesto; share it with your team; and begin your own practice of innovation on your project.

 … or read the book.

Using standardized building system and standardized components NCC is creating customized apartments for the Sweden market. Their intent is to reduce the time to build, reduce the cost, and improve the quality of the finished product. NCC recognized that construction was costing more each year, while engineered products were falling in prices. Their delivery method takes advantage of the engineering approach. They currently have a production capacity of 1,000 apartments/year with 60 workers in their plant.

The industrial housing market draws on lean thinking, pre-assembly, direct purchase of raw materials, and short production cycles. They are also able to address ergonomic conditions for the workers. Construction time is reduced by 75%. Total labor is reduced by 50%.

NCC has been at this industrial leap for 4 years. Along the way they've encountered challenges:

• Suppliers and customers have a project mindset.
• Definition of building systems must be set before design.
• The range of variation impacts the ability to deliver standard components.
• Material supply is critical, otherwise it shuts down the factory.
• Close tolerances are required — millimeters not centimeters — are required for good finishes.

Read the rest of this entry ¶

There's a new kid on the block and from his early writing, I'll be paying close attention. Creativity Driving Innovation in Business is a weblog written by Sanjay Dalal. (I learned about him from Chuck Frey, perennial innovation blogger.) One of Sanjay's first postings is titled Toyota's Innovation Factory. He offers a good summary of The Elegant Solution: Toyota's Formula for Mastering Innovation, by Matthew May, just published last week. I haven't read the book yet, but my order is in.

Sanjay describes each of the guiding principles and the blocks to innovation.

Guiding Principles for Driving Innovation

1. The Art of Ingenuity

Lean projects are characterized by innovation and learning.

2. The (relentless) Pursuit of Perfection
3. The Rhythm of Fit

Blocking Innovation

1. Swinging For Fences
2. Getting Too Clever
3. Solving Problems Frivolously

This looks like a book worth studying…not just reading. Sanjay finished his review this way:

"Toyota has become the dominant car maker today based on large part due to the Innovation Factory. A Factory based on a foundation of creating elegant solutions through three guiding principles, avoiding three “temptations” and driving ten production practices."

Lean projects start with lean design. And throughout the project they are characterized by innovation and learning. It's time we all learned how it's done.

The editors at Fast Company think Wal-Mart is about to bring about a real reduction in the use of energy. In cooperation with GE, Wal-Mart has begun a year-long initiative to replace at least one incandescent lightbulb for each customer. That's 100 million bulbs that will go out of service. In their place we'll be screwing compact fluorescent lightbulbs (CFLs). Why am I writing about this? It's one ambitious project, that's why!

CFL sales are projected to reduce carbon emissions equivalent to taking 1.3 million cars off the road

The numbers are impressive. In FC's article How Many Lightbulbs Does It Take to Change the World? One. And You're Looking at It¹, CFLs last anywhere from 8,000 to 12,000 hours. This compares to 1000 hours for an incandescent. That's 8 to 12 bulbs taken out of service for each CFL. Each CFL bulb uses about 28% the energy of an equivalent 60 watt incandescent. At a savings in energy of $0.46/month the CFL pays back in 5 months. (If you buy the bulbs in an 8-pack at Sam's Club the payoff will come in 3 months.) It continues to generate savings for another 8-10 years! But that's not the best part.

If Wal-Mart succeeds, then their CFL sales are projected to reduce carbon emissions equivalent to taking 1.3 million cars off the road, or not burning 29,900 railcars of coal.

Now on to the project side of this. This initiative started by chance, like many company initiatives do. FC tells the story of a buyer who wondered what could be saved by replacing the incandescents in the ceiling fans with the fluorescent bulbs he saw in hotel rooms. Each lamp takes four bulbs. Each store has about 10 models on display. There are 3,230 stores selling fans. Wal-Mart alone was paying $6 million annually for the electricity for those incandescent lights. The buyers continued to wonder. And wonder some more. For me, this story is about a group of people that started with a lightbulb buyer to GE CEO Jeffrey Immelt, all considering just what might be possible.

Wal-Mart is demonstrating what is possible when someone wonders and others listen and act.

Projects like this take a bunch of selling…ideas, not light bulbs. The implications turn out to be huge. By committing to provide the CFLs GE was also committing to forgo the sales of 600 million incandescents over the next few years. That would require shutting down at least one factory. It's a decision that GE eventually made.

More decisions and plans had to be made. Displays had to be created. Education programs for shoppers were developed. Shelf stocking in all 3,230 stores had to change. These are just some of the actions that we know about that had to be coordinated. Wal-Mart didn't tell FC their whole plan. I predict we'll be compelled to make the switch. Even non-Wal-Mart shoppers will buy CFLs, and many will become Wal-Mart shoppers in the process.

Selling CFLs are not like designing and coding software, nor like designing and building buildings, nor new product introductions. No, it's much bigger. Selling 100 million CFLs will take legions of people acting in concert so the bulbs are ready for you and me and then we'll replace our bulbs. While this may not save the planet, Wal-Mart is demonstrating what is possible when someone wonders and others listen and act.

1. The article will be available online to everyone on Sept 1, 2006. Subscribers and newsstand buyers can get access now by using the access code "FCSEPTCUST". [ ⇑ back ]

Why are construction companies reluctant to adopt new ideas? This UK-based study suggests it is a matter of habits.

Drivers for Innovation in Production Management

Carl Abbot, et al

The researchers compared the construction industry to all other industries. They found that in the areas of product innovation, process innovation, and long term views construction firms exhibit far less innovative actions than others. They conclude that the big majority of companies are focused on survival.

"Small involvement with innovation can move firms out of the survival mode."

Looking at different innovation processes and the results, it is easy to focus on the improvements. The researchers claim that what firms learn while innovating is far more important to on-going improvement. (That doesn't seem quite right to me.)

"Notions of learning and knowledge sharing have much to contribute towards achieving organizational performance."

The tide has turned in contracting. No longer is low price the only basis for selecting contractors. An approach known as best-value is being widely adopted in the private and public sectors. The approach uses predefined assessment criteria. Price is often weighted heavily in the determination of best-value.

Pennsylvania is one of the recent states to legalize best-value as the basis for selecting contractors for state work. ENR reports in the October 24, 2005 issue that the Associated Builders and Contractors (ABC) has sued the state to overturn the new law. ABC contends,

"…the process is secretive, invites favoritism, and is a poor substitute for hiring contractors based only on competitive bids."

The ABC goes on to claim the contract awards are "secretive and subjective," according to Hank Butler, ABC Director of Government Affairs.

What a way to spend ABC member dues! One reader¹ agrees writing a letter to the editor in this week's issue,

"If ABC spent more time and money trying to make their members better contractors, then maybe they wouldn't feel so threatened when their only bastion of safety — the low bid — is challenged by owners who want more value for their construction dollar."

Not only is the ABC behind the times, but they show a distinct indifference to the needs of their prospective clients. I predict ABC will lose this lawsuit along with the goodwill they already squandered.

By the way Hank, of course best-value has subjectivity in the process. Value is an assessment. Value is whatever the person says it is. Those contractors who take the time to listen to their prospects' concerns will be positioned to make best-value proposals. Maybe that is the real issue of the lawsuit: perhaps the ABC knows that its membership doesn't listen. If that is the case, then the only avenue is to sue your prospects.

1. Steven B. Chesley, Executive Manager, Quad Cities Chapter, National Electrical Contractors Assoc., Davenport, Iowa. [ ⇑ back ]

'Leaders know that the value-added revolution rests upon: Emphasizing Experiences!'

Tom Peters has been on a whirlwind worldwide speaking tour. From a look at Tom's PowerPoint slides his general message is about the same as it's been for the last five years. In true Tom Peters style there are over 300 slides in these presentations. Set aside about 30 minutes to view one of more than 20 presentations.

For me Tom's message on customer experience rings as one of the biggest opportunities for delivering projects. Customers get excited about their projects. Let's get excited with them. At least one company has responded by creating the position CXO — Chief Experience Officer. What other ways can we put more of our attention on the experience we create for our clients?

A very interesting project has begun to develop trustworthiness in open systems software. It goes by the name of TROSTing. The project investigations are quite ambitious:

• How can we be reliable at delivering open-systems components with demonstrable trustworthiness?
• After that, how do we continuously strive for achieving and sustaining new levels of trustworthiness?

While I wonder what will come of such an ambitious project, I can't help but marvel at the thoughtfulness that has gone into the creation of the symbol of trust.

The symbol is a keeper. The important work remains.

Dennis Hamilton, the designer, calls the symbol "a fusion" of the Shewhart/Deming Cycle of Learning, Fernando Flores' Action Workflow, partnership, and an ever-progression (spiral) of one interaction to another.

I met Dennis when my auto-responder for the Let's Play Catch! mini-course failed to deliver one of the lessons. He wrote asking for the missing lesson. One thing led to another, soon we were deep into exploring what each other was doing. Dennis is in the midst of finishing his thesis for a masters degree in IT. He is also writing a weblog on open systems along with starting to build a community to explore trustworthiness in software.

I can't help but think of the application of a mark of trustworthiness for the project environment. Can you imagine the equivalent of the Good Housekeeping Seal of Approval on a company offering to do project work? What could that mean? The AEC industry can be so contentious and generally distrusting. What if there were a collection of firms that were known broadly for just the opposite behaviors? There's no telling what might be produced by a consortium of those firms.

It's easier to talk about trust than it is to be trustworthy. I commend Dennis for putting this issue in front of us. Let's join him in his pursuit.

After a handful of reader comments and another handful of reader emails I've decided I need to comment further on Wednesday's posting Innovation and Lean Go Hand-in-Glove. I wrote it in response to Joyce Wycoff's Do Less, Have More appearing in her weblog Good Morning Thinkers! Joyce argued for more slack time so people have time to be innovative saying that companies focus on "sucking out all the fat" so they are left with a "lean machine" eliminates the time to be innovative. I commented that lean initiatives create slack time. Each reader essentially has the same thing to say to me. I've included the text of one of those emails followed by my response.

  >
  > You and Joyce Wycoff are talking two different things. When a company
  > goes "lean," they often take out too many employees "because they are
  > going to work smarter." The thing that happens is the work is not
  > analyzed for best procedures and risks, so the remaining employees are left to
  > carry an extra work load and have no time to think or act proactively.
  > You, on the other hand, are talking about solving problems before
  > removing employees — and no where did you indicate removing employees is
  > necessarily part of the plan. What you could be removing is time, or
  > waste, or effort.
  >

One way of seeing the situation is that Joyce and I are talking two different things. However the risk is that most people will not see that. When we communicate there is always the denotative meaning, the connotative meanings, and the oh-so numerous misunderstandings. Those misunderstandings have numerous sources. Here are two. The first is a blindness to the denotative meaning in the choice of words used. The second is a blindness to the listeners' knowledge of denotative meaning. As David Schmaltz points out in his comment to my posting there is a growing understanding of lean to be mean. It is that definition that Joyce conveys. It is unfortunate. I encounter one person after another that has objections to lean initiatives because they anticipate mean consequences. I've traced this back to Chain-Saw Al Dunlop's driving Sunbeam into the ground under the banner of lean. We have to change this. We can't let anyone think that Joyce and I are writing about the same thing. Lean has a very specific meaning that everyone in business must know to be successful.

The lean approach has separated Dell from everyone else in their industry. Dell is able to invest in new US factories at a time where others are off-shoring. The lean approach allows Toyota to build cars in each of the markets they serve rather than exporting from Japan. The lean approach is responsible for an Ohio general contractor expanding in a very competitive and scarce market these last two years while other firms struggle for their existence. A hallmark of all three firms is how they've systematically tapped the everyday-always inventiveness of their people. Invest in Dell and Toyota. They will continue to thrive as will other firms who take a lean approach. Too bad you can't invest in the Ohio GC. It's a 100% employee owned firm.

I have my own take on why innovation is stifled. It has to do with the Two Great Wastes: not listening and not speaking. But that's for another time…

So thank you Joyce for continuing to write on innovation. I'll keep visiting your weblog Good Morning Thinkers!. And thank you everyone who wrote comments and emails. You've given me the opportunity to sharpen our understanding of lean.

Here's a treat for the weekend. Seth Godin published his book Purple Cows yesterday. It's a book about setting yourself apart. Seth says "Be reamarkable!" To coincide with the publishing of the book he wrote an ebook of purple cow examples — remakable people and companies. You can get it here for free, or from Amazon for 10 bucks. You choose. You might be wondering why I can give it away for free? It was Seth's way of saying thank you for a nomination I made for the ebook. Although he didn't publish my nomination, he did send me the ebook and his encouragement for me to share it. Nice!

Get a dose of remakability — 99 Cows.