From the Archives of a Common Sensei Volume 20: THE KANBAN CALCULATION


If your organization is beginning the “LEAN Journey” or if you are having difficulty executing your Kanban ordering, perhaps this blog volume 20 will help you. These formulas for “standard/ordering” and “inter-process” Kanban were derived from work we did at Toyota Industrial Equipment (TIEM) during the early days of the 1990’s, but may also be relevant in your organization. As you might suspect, the standard Kanban calculation formula is generally meant for external ordering, and the inter-process Kanban calculation is generally used only when material is transferred (moved) internally. When reviewing these formulas to be used as guides, I have presented the suggested formulas and considerations. These formulas have been used in a variety of JIT and Kanban driven environments since I left Toyota (TIEM) and have helped create enormous value in the form of: shorter order lead times, shorter processing time, less inventory expense, less handling, less space, better quality, lower engineering costs, less overall waste, lower financial costs, etc. for those who choose to take deployment seriously. The use of Kanban must be executed with high discipline! Anything less is likely to result in errors and shortages of supply. The implementation of Kanban alone in an organization is not likely to produce the intended benefits mentioned above! This is where the culture of many organizations MUST be tackled at the same time (as discussed in our previous blogs). Every associate must understand the seriousness of their actions and the consequences of not performing their role in the overall process.

True value creation requires that every associate understand their role in executing to plan AND perform that role as intended!

Max Allway

As has been stated in other articles/blogs, this example of methods used or previously used at a Toyota operation are only meant as examples for consideration in your organization.  Hopefully you will benefit from this and previous “ideas” we have included in our blog postings.

For More Information or help with your transformation effort, contact us at http://www.per-strat.com

Rapid Crisis Intervention/Facilitation Method


Organizations around the globe face critical instances that need a clear and consistent approach to resolving issues in a way that not only fixes a problem in the short term but also helps to ensure that the issue does not happen again.  Too many times organizations make knee jerk reactions to stop the bleeding and resolve immediate problems however, there is  no true resolution to make sure that the problem does not occur again.  Often times, these organizations face a make or break situation in terms of public perception as well as operational capabilities standpoints.  These situations demand rapid and corrective actions in mid-stream, without the luxury of re-starting operations from square one.  In most situations, there is time to right the ship and provide the necessary practical and technical leadership that is required to fix the current problems and to communicate a concrete plan and corrective solution to the organizations stakeholders.

Based on Crisis Intervention experience for organizations across the globe,  the following approach to standing up a Crisis Intervention Management (CIM) PMO has been established.  The goal of the CIM PMO is to coordinate, facilitate, and be a management tool for allowing organizational leads to direct and integrate resources allowing them to navigate the correct path within a defined period of time.

The Crisis Intervention Management (CIM) PMO is a well-defined and replicable methodology that is used to assist organizations in tracking, managing, coordinating, and communicating the successful remediation of the issues with systems that are in a rapid remediation mode.

Crisis Intevention Model

The Crisis Intervention Model above does not in itself contain the final solution to the specific problems that plague organizations/programs in crisis.  That is the function of the leadership, program, and technical resources that are tasked for this purpose.  Rather, the CIM is a defined methodology to help ensure that a rapid but replicable intervention process is followed and that the issues are identified and the solutions are implemented in a timely manner by the individuals with the required expertise.

From Kick-Off to Execution, the CIM Model envisions a six week project followed by the Delivery of the Solution.  The Kick-Off is used to establish the ground rules for interaction and to allow everyone to understand the role of the CIM PMO and how all of the stakeholders will work within this structure.  The Gap Analysis is done in a two day workshop format that will allow the Organization to identify their vision of the problem and their requirements, the current staff/vendors to present the current problems and the proposed solutions, and selected Industry thought leaders to evaluate the issues and identify gaps and propose innovative solutions.  The Solutions Definition workshop is an addition two day workshop that will include some of the key personnel from the previous meetings and builds upon the Gap Analysis by including additional Subject Matter Experts that may be necessary to build a solution.  The outcome of this meeting will be the roadmap by which the solution will be executed.  Project Planning is the concrete schedule of implementation events that will be conducted as a means to deliver a fully functional Solution.  Execution is the work that will be done by the incumbent team, coordinated by the CIM PMO, with oversight from the organizational Lead.  Finally, Solution Delivery is the rollout of the new fixes in a seamless and effective way so that stakeholders have fully functioning and user friendly solution to the problem.

During a period of crisis, organizations a facing a very difficult time and that there are many ideas and proposals being provided to fix the problems facing the organization.  CIM is not a  solution, it is an organized and efficient way to screen solutions and implement them in a clear and well-structured process.  Even in the toughest of environments, properly trained and experienced Crisis Intervention Subject Matter Experts are able to drive even the most difficult of organizations to the execution phase within six weeks.  A standard timeline is included below.

Outcomes of a Structured Crisis Intervention Management Methodology include,  stand up the CIM PMO, facilitation of a Kick-Off meeting, Gap Analysis, and Solutions Definition, as well as providing the organization with a detailed Project Plan,
Daily Updates, Weekly Status Reports, Strategic Talking Points, and a final debrief.  Additionally, it is necessary for the CIM PMO to work with the Organization leads to drive the successful implementation of the Solution Delivery team, providing the necessary personnel and bandwidth to provide the oversight necessary to resolve a very serious issue at a very delicate time.