Newsletter August 2006 - Issue #13

**************** Inspect Your Own Work

Traditional approaches to quality control/quality assurance is “inspection.’ We typically audit, inspect and/or test at the end of the process. Often we rely on someone else to perform this inspection. Lean does not do away with inspection but changes where, when and who does it.  We want self-inspection.  The Japanese say about defective product – don’t get, don’t make it and don’t pass it on.  Do the people doing the work know if what they received is right?  Do they know when they have done their work right?  Do they know how to inspect their work to see if it is right? Are they trained sufficient in these areas? Does each worker know when he/she has installed the work right?  Is he empowered to stop the work if something is not right?  We never want to install bad product. Field workers need the knowledge, equipment and time to make sure that the product being installed is working properly.  How do you make this happen? How do you know it is happening right?

**************** Leadership
When I visit contracting companies, I try to engage the employees in conversation about their commitment to the company. Very few seem to really know why the company exists and how his/her work contributes to the company’s vision. Joanne G. Sujansky, President, KeyGroup, talks about creating a goal-oriented culture.

A question for CEOs: Are your employees working toward clearly defined goals that advance your corporate vision? You may assume the answer is yes. But if you gather your top managers together to develop key initiatives and goals -- then expect that goals are set down through the organization and that people are clear about the direction of your company -- you're likely fooling yourself.

***************** GM wants it Lean

At the SMWIA/SMACNA 2006 Partners in Progress Conference held this past March, Jack Hallman, Director, Manufacturing Construction Management Worldwide Facilities Group, Capital Projects for General Motors and Richard Cramer, Chairman of the Board for of Dee Cramer Inc. presented on a project done for GM using lean techniques.  Part of the presentation included these points of interest:

***************** Inventory – Solutions to Causes

In the last newsletter we discussed some causes of inventory waste and possible solutions.  Here are some causes and solutions:

Cause: The farmer just-in-case thinking.  We hold on to returned parts and material just in case we might need it again. After all, it is already paid for!  Since we have the room we feel storing it is not a cost.

***************** Inventory – Solutions to Causes

In our last newsletter we discussed causes of waste by keeping inventory.  This and the next few issues will share some answers:

Cause: Poor quality work in the shop and in the field

Solution: This is an age-old challenge in construction. The solution is straightforward but not easy. To improve quality it starts with a clear definition of what is and is not quality work. It can’t be wishy – washy such as “I know it when I see it!”  Once defined all workers need to understand the quality requirements and that they are expected to meet the requirements. Work handed to them that does not meet the requirements should be sent back for rework. The work that they perform should be reviewed by them to ensure quality before passing it on. At Toyota they say – Don’t get it – Don’t make it – Don’t send it, in terms of bad quality.  To produce quality work one must be committed to doing it right the first time, measuring poor quality and implementing prevention countermeasures through root cause analysis. It all starts with supervision believing that defects can be eliminated and prevented, and not passed on.

High-Performing Contractor - NEWSLETTER

February 2006

**************** Leadership Fosters Success

A research study of the industrial products sector identifies four attributes that the stock-value growth leaders in that industry demonstrates. Their findings are also applicable to contractors too.

The study was done by Accenture. It looked at the financial, operational, and value systems of 100 public companies that consistently deliver "above-average return to shareholders and achieve growth and returns in excess of capital costs above the industry median." The research used the period of March 2000 to March 2005 for the stock price comparison. The study identified four "pillars" common to all the leading companies.  These are: