<a href="https://bourton.wordpress.com/" title="Just another WordPress.com weblog"> Bourton

Tel: +44 (0)1926 633333

Continuous Improvement in action… right in front of you!

In Regular entries on June 22, 2010 at 3:37 pm

I often discuss with clients what “continuous improvement” actually means in practice. As you’d expect, we discuss things like engagement of people, the tools and methods deployed, the impact on the business and its customers and of course the challenges it presents. So why am I saying it’s right in front of you?

Since you’re reading this on a computer, or a phone, or maybe some other device connected to the internet, you are using something which has been improving continuously for decades. My thoughts were prompted when I heard about Britain’s first Vintage Computer Festival, held at the National Museum of Computing at Bletchley Park (http://www.tnmoc.org/vcf-gb.aspx). The exhibition covered the evolution of the first computers, up to the first home computers, like the ZX81 and Commodore 64. Technology companies have improved computers in several steps, some small, some large and some huge, with the overall effect being a better product for us, the users, and plenty of things we never thought were possible.

The market is tough and that keeps the companies under constant pressure to innovate and improve… sound anything like your business? Continuous improvement, with a customer focus, is a good thing… remember how you’ve managed to see this blog!

Tim Edwards, Senior Consultant

About Bourton Group

Contact

Tel: +44 (0)1926 633333

Lessons in stakeholder management from BP

In Regular entries on June 22, 2010 at 3:35 pm

The ongoing problems resulting from the disaster in the Gulf of Mexico are wide ranging and extremely significant, that is for sure. But what of the truth behind the incident? Who is right and who is wrong?

As with other events of this kind, the truth will certainly come out in the end and, until then, we are faced with conjecture, few facts and an array of opinions about what caused the problem in the first place. We’ve heard statements from BP, speeches from President Obama and now we’ve witnessed the congressional hearing where the assembled group attempted to uncover some facts, with limited success.

Even though the full facts are not yet clear, one thing is very clear – BP are being blamed for the entire episode and, in the court of public opinion, especially in the USA, they are already seen as guilty. Whether this is right or not, the way in which BP has managed it’s relationships with key stakeholders has had a significant impact on perceptions. These perceptions will be very difficult to change, even when the facts become clear and will that be all too late to repair the damage to the business? No matter what our views on BP, we can all learn some valuable lessons from this incident on how to manage stakeholder relationships.

Tim Edwards, Senior Consultant

About Bourton Group

Contact

Tel: +44 (0)1926 633333

Reduced prices AND increased profits… Impossible?

In Regular entries on May 17, 2010 at 9:22 pm

For suppliers suffering from margin pressure and for customers looking for cheaper prices for their products, the idea of finding a solution which keeps both parties happy seems like a pipe dream… Not so for a network of small farmers and two large NHS Trusts in Nottingham. (See BBC News: http://news.bbc.co.uk/1/hi/health/8679192.stm)

Queen’s Medical Centre and Nottingham City Hospital have thrown away the traditional supply chain approach to sourcing their food and have chosen instead to deal directly with a local farmers’ network. The hospitals are getting food faster, with improved controls and quality, and they calculate savings at £6million per annum. The farmers are getting regular demand for their produce, at better prices than they were through traditional, indirect arrangements.

OK, so we don’t all have opportunities to make these kind of savings in our businesses, but it certainly illustrates the benefits of questioning the status quo, reviewing how things are done and being prepared to listen to new ideas. If you’ll excuse the pun, there must be no sacred cows!

Tim Edwards, Senior Consultant

About Bourton Group

Contact

Tel: +44 (0)1926 633333

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

In Regular entries on February 17, 2010 at 12:49 pm

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

Contact

Tel: +44 (0)1926 633333

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

In Regular entries on February 17, 2010 at 12:27 pm

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

Contact

Tel: +44 (0)1926 633333