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Monday, June 02, 2008

 
BEYOND THE BUZZWORDS
By Reylito A.H. Elbo
Factory physics:
Doing more with less, less and less

 
BEING lean is still the current craze in management. Walk into a factory. Go to a bulletin board where managers are showing off their achievements with quality circles, suggestion schemes and production records beating last month’s ultimate facts and figures by a mile.

Then you’ll wonder how they could do all these.

The message of these programs is that “doing more with less” is no longer enough. In today’s highly-competitive, dog-eat-dog environment and back-stabbing workplace, when we hear one manager talking about how he was able to do more with “less resource,” chances are, he is about to be transferred to the company’s urinal-storage facility in Camote Island.

Forget about your service awards. And even your above-average performance if it’s not tested in a Balanced Scorecard setting made perfect by 360 Degree Feedback.

“Doing more with less” is not enough. You’ll have to do it continuously with less and less resources (capital, manpower, equipment, etc). These days, organizations want their managers who are never satisfied with their accomplishment. They want people who either make or demand the best in everything, someone who, if he had been in-charge of building Egypt’s pyramid would have said to his army of slaves:

“That’s an excellent pyramid but I’m not satisfied. I want you to build a much better pyramid and I want it by tomorrow morning!”

This is the kind of thinking that our dynamic managers are doing to continuously propel their respective corporations. Take the folks at Toyota Motor. For five decades since Hiroshima and Nagasaki were atomic bombed, the people at Toyota were not content in simply improving the design, make and performance of their cars and trucks.

That’s why most of the time, they talk of Kaizen (everything that works is obsolete) and JIT (just-in-time) production system and everything in-between. Toyota continues to build better motor vehicles and in greater numbers than General Motors and Ford, which continued to rely much on lean principles to close their plants.

But then came along Factory Physics by Wallace Hopp and Mark Spearman (3rd Edition, McGraw-Hill 2008) with the bold concept that pushes managers to internalize “the underlying behavior of manufacturing systems to identify opportunities for continuous improvement, design effective new systems, and make the trade-offs needed to coordinate policies from disparate areas.”

That’s the “short answer” for the purpose of this article. The “long answer” is found by buying the book, reading it from cover to cover, putting it in the proper context, focusing on operations management and manufacturing to bring about excellence in “manufacturing operations.”

The point is that finding excellence, or to be more accurate, “striving for excellence,” extends into the workers’ and managers’ personal lives as well. When they buy something, they buy the best one, as determined by (1) price (2) function and (3) lack of choice.

Filipinos buy imported rice. Or to be more precise about it, we buy smuggled rice. Not because we can afford it, but simply because there’s no choice as we’re stuck with a crisis-reactive government.

The same thing is true with Meralco and GSIS. We’re stuck with an enormous amount of incompetent officials fighting, simply because we have no choice because they are in power, literally and figuratively.

But going back to the matter at hand—factory physics—I should say that even the service industry like Meralco and GSIS should take it to heart that they, too, can lower the price of electricity with less and less resources.

Nobody is excused from the lean trend, much more with factory physics because you can use the same principle to convert it to office physics.

Mark my word. As long as you have the common sense to improve on things, then you’re not excused. I’m sure of that. So anyway, as I said, this got me to thinking about technology and buzzword, once again.

____

Rey Elbo is a business consultant specializing in human resources and total quality management as a fused specialty. Readers’ feedback may be sent to kairoshq@info.com.ph.

  
 

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