With university applications up by over 20% and funding by £449m, are service cuts the only solution?

It would be impossible for the current economic climate not to have a direct and significant impact on public spending and university education is just one example.  But when we read about hundreds of millions of pounds being cut from the budgets of English universities, the next line in each report always seems to be focussed on cuts in services (See BBC News: http://news.bbc.co.uk/1/hi/education/8491729.stm ).  Any talk of efficiency savings seems to be pushed out of the limelight.

 Whilst it may be necessary to make some cuts in order to stay within the new budgets, it concerns me that this seems to be the first thought presented.  Why not consider reviewing the way in which universities are run, how money is spent and, crucially, what value is delivered, to find opportunities for improvement, rather than making cuts?  Can the people faced with making these cuts have confidence that they will achieve the desired effect?  And can they be sure of the other consequences?

 Applying Lean to the operation of a university can yield some surprisingly good results and may lead to savings being possible without such pressure to cut valuable services.  The University of St Andrews has some great case studies to show what can be achieved (http://www.st-andrews.ac.uk/lean/).  Food for thought?  I hope so.

 Tim Edwards, Senior Consultant

About Bourton Group

Bourton Group are specialists in achieving sustainable performance improvement.  We have a successful track record of improving complex processes in major public and private sector organisations stretching back over 40 years.

Contact

info@bourton.co.uk

Tel: +44 (0)1926 633333

www.bourton.co.uk

Should our belief in the philosophy and tools of Lean be shaken by the recent woes of Toyota?

A delegate on a training session I was leading today asked me if I was thinking of changing my references to Toyota when describing the origins of Lean.  I have to say that a recall of over 8 million vehicles worldwide seems like a pretty serious problem, even when put in the context of Toyota’s colossal annual output.  Over the past few weeks there were stories online about a further, unconnected recall of the hybrid Prius model (see Reuters: http://www.reuters.com/finance/stocks/keyDevelopments?rpc=66&symbol=7203.T&timestamp=20100208072100 ). 

Unsurprising then that the share price has dipped by over 17% in the last month and that people are asking all sorts of questions about Toyota’s future, so I can understand my delegate’s question!  But does this mean that Toyota’s way (and therefore Lean thinking) is no longer valid?  I think not!

If we look below the surface of the headlines it’s easy to see that, although this will clearly be a costly exercise and one which they would certainly have preferred to avoid, Toyota appear to be sticking firmly to their principles as they work to address their problems.  A key element of the Toyota Production System (and of Lean thinking) is Jidoka, or stopping when a defect occurs.  This means that errors go no further than the point they are identified and that nothing else is produced until the problem is resolved.  The result is the avoidance of further costs in rework and reduced delays, as well as improved quality and overall customer satisfaction.  This is exactly what Toyota are doing now, with production suspended on certain models pending resolution of the issues, coupled with the headline-grabbing recall programme.

I’ll certainly be leaving all the Toyota references in when I talk about Lean and continuous improvement.  To me the current situation proves that no company can ever stop improving and that, even when things are very tough, staying true to your principles will see you through.  I’ll be watching Toyota’s progress keenly!

Tim Edwards, Senior Consultant

About Bourton Group

Bourton Group are specialists in achieving sustainable performance improvement.  We have a successful track record of improving complex processes in major public and private sector organisations stretching back over 40 years.

Contact

info@bourton.co.uk

Tel: +44 (0)1926 633333

www.bourton.co.uk