Archive for the ‘ Books ’ Category

TPM for Supervisors by Kunio Shirose

TPM for Supervisors by Kunio ShiroseBook Review: TPM for Supervisors by Kunio Shirose

This simple, readable, easy-to-understand book for floor supervisors is an excellent introduction to TPM. While primarily written for an operations supervisor, maintenance supervisors will find it valuable as well.

This book is intended to give you, the shopfloor supervisor, the information you need to understand total productive maintenance (TPM) and your role in it.

Key Concepts

  • Operators need to work toward identifying problems early. Maintenance needs to help teach operators the skills to do inspections, and then respond to their needs in a timely manner.
  • TPM’s aim is to get the most effective use of equipment. To do this, it creates a comprehensive system of preventive maintenance designed to avoid accelerated deterioration and facilitate inspection.
  • Operator PM tasks (autonomous maintenance) revolve heavily around cleaning, lubrication, and inspection. Development of these tasks is the primary responsibility of operator-led TPM teams after adequate skill-building. Management and engineering provide support.
  • Designers and engineers must involve maintenance and operators early in the design stage in order to promote operability, serviceability, and safety while reducing maintenance requirements and improving energy efficiency.
  • Accumulated small defects (such as a dent in a chute or loose fastener) and imprecise settings in equipment lead to quality defects small production delays that add up to significant chronic problems.
  • There are six big losses that need to be addressed. Measure all losses and find/fix the biggest: breakdown losses, setup and adjustment losses, idling and minor stoppage losses, quality defects and rework, and startup/yield losses.

Useful Features

  • Cleaning and lubrication standards summary for autonomous maintenance (page 51)
  • Examples of visual control (page 57)
  • TPM audit request form (page 63)

Table of Contents

Chapter 1: Causes of Breakdowns and Defects

Chapter 2: What is Total Productive Maintenance?

Chapter 3: Characteristics and Goals of TPM

Chapter 4: Eliminating Equipment Losses

Chapter 5: Autonomous Maintenance Activities in Production

Chapter 6: Companywide Cooperation in TPM

Maintenance and Reliability Best Practices by Ramesh Gulati

Maintenance and Reliability Best Practices by Ramesh GulatiBook Review: Maintenance and Reliability Best Practices by Ramesh Gulati

Key Concepts

  • The role of maintenance is to preserve the function of an asset, not to run the asset itself. (For an explanation, see the chapter on PM Optimization, which describes RCM.)
  • Condition-Based Maintenance (CBM) has an advantage over time-based maintenance when the life of the equipment is variable or not known with much certainty.
  • In maintenance Planning & Scheduling (P&S), the planner determines what and how, and the schedular determines who and when.
  • TPM, 5-S, and Visual Workplace and fundamental tools in operations reliability.
  • Lagging indicators show after-the-fact results. Leading indicators are process measures. Well-designed and measured leading indicators are better are identifying sustainable performance improvements.
  • The generation gap plays a signficant role in workforce management. While individuals vary in their motivations, attracting talent from each of the generations requires different approaches. For example, Baby Boomers often prefer the prestige of job titles, opportunities for networking and learning, and long-term benefits. Generation Y prefers work schedule flexibility, change and challenges, and work that has a higher meaning.

Noteworthy Features

  • Calculations for economic order quantity (EOQ), page 117
  • Calculations for estimating reliability, page 138
  • Summary of CBM/PdM technologies, p. 215
  • Brief description of several maintenance & reliability analysis tools (fishbone, FMEA, standards, Pareto, RCA, Six Sigma, etc.) p. 308
  • List of trends and practices that are important to understand. p. 357

Limitations

  • The Basic Test on Maintenance and Reliability Knowledge (chapter 1) had some poorly-worded questions that made the intent unclear. Here are several examples with my comments.
    • Question 3 . All maintenance personnel’s (craft) time is covered by work orders.  T/F? Answer: “true” in order to ensure maintenance and repair costs are accurate. [My answer: false. Breaks and lunches are not generally covered by work orders.]
    • Question 7: Utilization of assets in a world-class facility should be above 98%. T/F? Answer: “true.” [Can we possibly be thinking of the same meaning of asset utilization?]
    • Question 12: It is a common practice for operators to perform PMs. T/F? Answer: “true,” assuming the organization is deploying TPM. [But the question does not say anything about TPM. The question asks if it is "common" for operators to perform PMs, not whether it is a good or best practice or whether it is a component of TPM.]
    • Question 13: P-F interval can be applied to visual inspections. T/F? Answer: “true.” [I still don't know what the question means by "applied." Visual inspections do not detect faults until near the end of the failure curve, so as a fault-finding task it will have to be done more frequently to ensure the fault is caught before total breakdown. Is this what the question means?]
    • Question 16: The primary purpose of scheduling is to coordinate maintenance jobs for the greatest utilization of the maintenance resources. T/F? Answer: “true.” [My answer: false. The purpose of scheduling is to maximize return on capital investments by getting the right work done at the right time and removing efficiency roadblocks. Maximizing maintenance utilization is a purpose only insofar as it promotes ROI. Therefore, the given answer is only a partial truth.]

Table of Contents

Chapter 1: Introducing Best Practices

Chapter 2: Culture and Leadership

Chapter 3: Understanding Maintenance

Chapter 4: Work Management: Planning and Scheduling

Chapter 5: Materials, Parts, and Inventory Management

Chapter 6: Measuring and Designing for Reliability and Maintainability

Chapter 7: The Role of Operations

Chapter 8: PM Optimization

Chapter 9: Managing Performance

Chapter 10: Workforce Management

Chapter 11: M&R Analysis Tools

Chapter 12: Current Trends and Practices

Making Common Sense Common Practice by Ron Moore

Making Common Sense Common Practice: Models for Manufacturing Excellence by Ron MooreBook Review: Making Common Sense Common Practice: Models for Manufacturing Excellence by Ron Moore

I picked this book up because it was recommended by the SMRP for the CMRP exam.

Ron Moore traces the transformative practices at Beta Manufacturing, a hypothetical manufacturing corporation with multiple plants. Beta is not the least efficient company in its industry, but it is a long way behind its top-tier competitor. Most of the practices at Beta will be familiar to anyone with 5 years experience.

The book is full of good practices and improvement opportunities, but it shines most near the end when personal experiences and insights are added. This begins in chapter 15 on leadership where Moore draws on his military and corporate background.

Key Concepts

  • A rational economy is built upon a foundation of manufacturing. Trading, distribution, service, and support are necessary and value-added. However, they should exist in addition to, not instead of, manufacturing. [One is greatly tempted to add the FIRE sectors: Finance, Insurance, and Real Estate, to this statement.]
  • As national success depends upon manufacturing, so does a company’s success depend upon aligning the marketing and manufacturing strategies. Manufacturing is not just the place that makes the stuff that marketing sells. Competencies and tradeoffs in manufacturing capabilities should tie in closely with marketing strategy.
  • Everyone has a part to play in reliability. Design, procurement, stores, commissioning, operations, and maintenance functions are all opportunities to introduce defects and reduce return on investment in capital assets.
  • Measure ALL losses from ideal production. Downtime, rate reductions, and quality defects are all permanent losses that can never be recovered. [Excellent details are provided on how to do this.]
  • The commissioning process should be more than ensuring that equipment turns over and puts product out the end. Detailed performance measurements and baseline data should be collected and added to machine records.
  • Nolan’s data on the high proportion of “random” failure patterns should not form the theoretical basis for maintenance practices at most manufacturing facilities because the data was developed from the specific experience of nuclear submarines, which have very different operating philosophies from manufacturing.
    Equipment failure patterns from the Nolan & Heap study
  • Most manufacturing facilities also do not have the data or equipment history to reliably perform statistical analysis of failure patterns.
  • “Religious” assessment of equipment condition leads to proactive maintenance approach without wasting effort replacing good parts
  • Use of contractors is not a panacea for high maintenance costs. When used improperly, maintenance costs will actually increase. Special questions of term and conditions, financial issues, and intellectual property are raised to a greater extent than with permanent employees.
  • A strong case can be made for having supervisors conduct training rather than have training specialists do all of the work.

Noteworthy Features

  • Procedure for Developing Vibration Specifications (p. 142), Motor Specifications (p. 144)
  • Worksheet for General Machine Information (p. 147)
  • The Predestruction Authorization Form (p. 188)
  • Operational Practices, including operator basic care (p. 206) and a shift handover process (p. 211)
  • Maintenance Best Practices (p. 238)
  • Best Practices for Use of Contractors (p. 305)
  • TPM Principles as they Relate to RCM (p. 317)
  • Strategic Training Plan ( p. 408)
  • Reliability Manager/Engineer Job Description (p. 453)

Table of Contents

Chapter 1. Manufacturing and Business Excellence

Chapter 2. Benchmarks, Bottlenecks, and Best Practices

Chapter 3. Aligning Marketing and Manufacturing Strategies

Chapter 4. Plant Design and Capital Project Practices

Chapter 5. Procurement Practices

Chapter 6. Stores/Part Management Practices

Chapter 7. Installation Practices

Chapter 8. Operational Practices

Chapter 9. Maintenance Practices

Chapter 10. Optimizing the Preventive Maintenance Process

Chapter 11. Implementing a Computerized Maintenance Management System

Chapter 12. Effective Use of Contractors in a Manufacturing Plant

Chapter 13. Total Productive and Reliability-Centered Maintenance

Chapter 14. Implementation of Reliability Processes

Chapter 15. Leadership and Organizational Behavior and Structure

Chapter 16. Training

Chapter 17. Performance Measurement

Chapter 18. Epilogue

Appendix A. World-Class Manufacturing—A Review of Several Key Success Factors

Appendix B. Reliability Manager/Engineer Job Description

The Back of the Napkin by Dan Roam

The Back of the Napkin by Dan RoamBook Review: The Back of the Napkin (Expanded Edition)

One of the newer books out there on visual communication is Dan Roam’s The Back of the Napkin. This is a reader-friendly and un-intimidating book that makes a good introduction to drawing for the purpose of communicating and selling ideas.

Roam presents a systematic framework for approaching complicated problems with simple figures and drawings in several ways and then combines them into a large codex.

The codex consists of two dimensions: the six ways of seeing, based on the six types of problems, and five characteristics of the drawing.

The Six Ways of Seeing

  1. Who/what problems and questions are best illustrated through portraits.
  2. How much problems and questions are best illustrated through charts. This is where most communication happens in business. While it is a perfectly valid tool, it is often overemphasized.
  3. Where problems and questions are best illustrated through maps.
  4. When problems and questions are best illustrated through timelines.
  5. How problems and questions are best illustrated through flowcharts.
  6. Why problems and questions are best illustrated through multi-variable plots. These plots are more complicated than the other drawings and might take more practice for the average user than the book provides. However, the book makes for a good starting point.

S.Q.V.I.D.: Picture Characteristics

  • S: Simple vs. Elaborate. For any of the above problems, a quick and bare picture can be drawn. Also, we could draw a picture rich in detail.
  • Q: Quality vs. Quantity. The picture could emphasize the subjective (quality) or objective (quantifiable, numerical) nature of the subject.
  • V: Vision vs. Execution. The picture could be of the end state (vision) or of the means of achieving the vision (execution).
  • I: Individual vs. Comparison. The picture could be of a standalone person or object, or it could be of the subject and other people and objects with differing characteristics.
  • D: Delta (change) vs. Status Quo. The picture could be of the change expected, or of the subject as it is.

Putting it Together

Most of the frameworks can be combined with most of the picture characteristics. (An exception is qualitative representation of a “how much” problem. It just doesn’t work.)

Generally, you’ll use the codex because you have a problem, so that’s the place to start. Pick which kind of problem it is, then try to draw a picture of it using circles, lines, words, and other simple shapes.

If you have difficulty, you refer to the S.Q.V.I.D. model to generate ideas.

The book contains detailed examples of the process, and is well worth a look. As a sort of “Visual Problem Solving for Dummies” book it will be most useful to people unacquainted with the subject. But if the exercises are performed and the content absorbed, the reader will not be a “dummy” on the subject for long.

Notes on the Science of Success Chapter 6: Decision Rights

The Science of SuccessMy notes on chapter 6 of The Science of Success by Charles Koch:

Quotes

  •  ”The market determines who shall [have what property and who shall do what work]. None of these decisions is made once and for all; they are revocable every day. The selective process never stops.”—Ludwig von Mises [Wikipedia]
  • “In the market economy, every owner is continuously obliged to justify, through service, his right to retain control of the resources he claims. Otherwise, consumers peacefully transfer the ownership and control into more capable, more productive, more serviceable hands.”—Paul Poirot
  • “Markets maximize benefits [when they are] supported by externally enforced property right rules that prohibit taking without giving in return.”—Vernon Smith [Wikipedia]

Concepts

  1. Property Rights. Must be clear and defined. Must be coupled with responsibility for the consequences of the use of the property so that owners reap all of the benefit of productive use and bear the full costs of what they destroy.
  2. The Tragedy of the Commons. That which is “owned” by everyone is cared for by no one.
  3. Division of Labor. Because humans vary in their talents, specialization and cooperation leads to greater production and satisfaction of human wants and needs.
  4. Roles, Responsibilities, and Expectations. An ongoing dialogue involving the employee, supervisor, and other interested parties. Employees are responsible for ensuring they are accurate, effective, and current.
  5. Roles. Not a job title. Description of position held and the functions performed by an individual.
  6. Responsibilities. Define products, services, or processes for which we are responsible, along with level and nature of responsibility.
  7. Expectations. Should be clear, specific, and measurable. Should be open-ended and challenging.
  8. Principled Entrepreneurship. Even if you lack decision rights, you can still take action by seeking out and persuading those who do have the decision rights to implement ideas.
  9. Decision Rights. Earned, not granted.
  10. Shared Responsibility. Not an excuse for failing to take critical action.

Source Note and Links

  1. Ludwig von Mises, Human Action. Regency Co., Chicago, Ill., 1963, p. 308. [Amazon]
  2. Paul Poirot, “Ownership as a Social Function,” Toward Liberty, Vol. 2, Institute for Humane Studies, Menlo Park, Calif.,1971, p. 296.
  3. Vernon Smith, “Some Economics and Politics of Globalization,” Speech given at North Carolina State University, Raleigh, N.C., March 2, 2005.
  4. Garrett Hardin, “The Tragedy of the Commons,” Science, 1968, pp. 1243 – 1248.
  5. Ludwig von Mises, Human Action. Regency Co., Chicago, Ill., 1963, p. 157. [Amazon]
  6. No external source.

Common Symptoms and Related Mental Models

From a business troubleshooting summary:

If you observe these SYMPTOMS The root cause may be in this MBM DIMENSION These MBM MODELS may help create the solution
  • Things slip through cracks
  • Finger pointing
  • Task vs. results oriented
  • Limited risk-taking/experimentation
  • People in wrong roles
  • Confusion, chaos, conflict
  • Roles determined by tenure or seniority
  • People wanting excessive definition
  • Victim mentality
DECISION RIGHTS
  • Collective Action Problem
  • Comparative Advantage
  • Conflict Resolution
  • Diversity, Specialization, and Division of Labor
  • Externalities & Public Goods
  • Market-Based Organizational Structure
  • Mobility of Labor
  • Ownership and Accountability
  • Private Property
  • Roles, Responsibilities, and Expectations
  • Tragedy of the Commons

“Establishing the Right Climate”

From another document showing what happens when a piece (knowledge processes) of the MBM framework goes missing:

Establishing the Right Climate: Decision Rights

The MBM Framework: Knowledge Processes

MBM Results Tools
Decision Rights Appropriate authorities with clear and measurable accountability are in place, allowing people with the best knowledge to make decisions.
  • RR&E
  • Authorities (amount & type)
  • Performance reviews
  • Decision making process

Applying MBM as a Supervisor: Decision Rights

In addition to answering these questions for yourself, how are you ensuring your direct reports are striving to get results with their own direct reports?

“Ensuring the right people are in the right roles with the right authorities to make decisions and holding them accountable.”

Your direct reports know what good performance looks like and are held accountable. Employees’ RR&Es are individualized and focus efforts on long-term value creation.
  • What changes to the authorities of your direct reports may be appropriate? Why?
  • Are decision rights clear, reviewed, adjusted based on performance, and aligned in a way to optimize business decision-making and employee development?
  • How do you ensure that all direct reports are in a role that leverages their comparative advantage?
  • How are you holding your direct reports accountable for results, behaviors aligned with the Guiding Principles, advancing the application of MBM, and (for supervisors) development of direct reports?

MBM Blog (Rooted in Prosperity) Posts in Category “Knowledge Processes”

The Seven Habits of Highly Effective People by Stephen Covey

The Seven Habits of Highly Effective PeopleBook Review: The 7 Habits of Highly Effective People

I can’t think of a single book that has added so much to the lexicon of corporate jargon. Proactive. Synergize. Think win/win. Urgency vs. importance. Circle of influence. Creative cooperation. Personal mission statements.

I don’t know how many of these terms were invented by Stephen Covey, but it sure seems like that he popularized them. Their current familiarity indicates that this book, published 23 years ago and still in print, has stood the test of time.

Despite the fact that some people only know these ideas through parody—as evidenced by  Scott Adams’ Dilbert book Seven Years of Highly Defective People and 7 Habits of Highly Defective People (ironically out of print)—the book is actually pretty good.

I first read The Seven Habits in 2002, but I picked it up again recently to see what additional perspective 9 years of life might add to the content. I was pleased with most of it.

The Seven Habits

The seven habits referred to are:

  1. Being proactive: taking responsibility for yourself
  2. Beginning with the end in mind: creating a vision of yourself and the impact you want to have in your life
  3. Putting first things first: setting aside time for those important activities that support your vision from habit 2
  4. Thinking win/win: whenever possible, being willing to walk away from deals where both parties are not happy with the outcome
  5. Seeking first to understand, then to be understood: practicing empathic listening before trying to impose your view
  6. Synergizing: creatively cooperating with other people to come up with “third way” solutions that are better than either person’s original idea
  7. Sharpening the saw: recuperating in the physical, mental, spiritual, and social domains.

The habits are organized in a specific order. The first three habits move an individual from dependence—a child-like existence of irresponsibility—to independence—an more adult state where you take can take care of yourself. Those habits are focused on private victory.

However, independence is not the end state of an effective individual. Interdependence—working with other people to mutual benefit—is the objective. The second three habits focus on public victories which improve interdependence.

The last habit nourishes body, mind, spirit, and relationships so that one does not burn out.

One of the key points in the book is that independence is a necessary intermediate step on the way to interdependence. One can not be an effective collaborator until they can provide for themselves.

The model of the seven habits looks something like this (my own rendition considering the limitations of my diagramming software):

The Seven Habits of Highly Effective People: Model by Stephen Covey

The Seven Habits of Highly Effective People, reformatted from the original Stephen Covey model

The Seven Principles

The very first chapter, Inside-Out, describes the early 20th century rise of the personality theory of effectiveness and leadership over the character-based theory. According to personality theory, people behave certain ways at certain times, which leads to success. The older theory (quite old, actually) is that a person possesses character traits or follows principles that lead them to behave in a certain manner, which then results in success. The popularity of the personality theory resulted from its promise of “shortcuts” to success. It seems that business and management literature is starting to move back to character, or trait, theory, but personality techniques are still popular.

Covey describes this process in detail and eschews “techniques” in favor of principles.

So, what I initially found interesting about the model is that it puts the “techniques” (the habits) first.

However, these habits are mere manifestations of underlying principles. Based on this idea, I reformulated the seven habits model into a “principles” model:

Seven Principles of Highly Effective People, adapted from Stephen Covey

Seven Principles of Highly Effective People, model adapted from Stephen Covey

The reformulated model works as follows:

  • Following principles of personal vision leads to being proactive.
  • Following principles of personal leadership leads to beginning with the end in mind.
  • Following principles of personal management leads to putting first things first.
  • Following principles of interpersonal leadership leads to thinking win/win.
  • Following principles of empathic communication leads to seeking first to understand.
  • Following principles of creative cooperation leads to synergizing.
  • Following principles of balanced self-renewal leads to sharpening of the saw.

This also makes is a little more obvious that the first three principles are about private victory, and the second three principles are about public victory. Finally, the linear path from dependence to independence to interdependence is clearly illustrated.

Bottom Line

The bottom line is that the book is worth reading (or re-reading) for just about anyone. Although the last chapter delves a bit too deeply into new-agey mysticism for my taste, the content forms a sound basis for living, working, and developing relationships.

Training Programs for Maintenance Organizations (Maintenance Strategy Series Volume 5)

Training Programs for Maintenance Organizations (Maintenance Strategy Series Volume 5) by Terry WiremanBook Review: Maintenance Strategy Series Volume 5 – Training Programs for Maintenance Organizations

Overview

We’ve finally reached the final published book in the Maintenance Strategy Series, and I have to say this one was my favorite.

The series begins with preventive maintenance as the foundation. Once an effective program has been established, as evidenced by 80% planned work, the focus shifts to inventory and stores.

Once stores has been improved to the point that service levels are 95-97%, the organization is ready to improve and standardize work processes.

Then, a significant amount of data should be generated, which will require a CMMS/EAM to manage effectively.

Once a computer system has been selected, implemented, and is being successfully used to drive further improvements, the series turns to training programs. And what a topic it is!

Maintenance Strategy Series Step 5: Technical and Interpersonal Training

The Perfect Storm

Like in previous books in the series, it begins with the case for addressing the topic at hand. For training programs, the triple threat to industrial success is:

  1. an workforce aging
  2. a compromised public education
  3. a disintegrating “first rung” on the skilled trades career ladder (apprenticeships)

With 78 million baby boomers beginning to retire in 2010, valuable knowledge and skills are leaving the workplace, yet companies have no plans to deal with it.

In itself, this situation would be recoverable if it were not for the reduced quality of general education. Literacy is in decline in the United States. Vocational education is being cut due to liability issues and expenses.

And for those students who are not college bound (or the roughly half of college students who don’t earn a degree), there are few paths in between professional careers and unskilled labor.

Despite labor shortages in skilled trades, young people see them as dead ends or poor prospects. They are taught by parents, teachers, and counselors that the only path worthy of a bright student is college. Therefore, even when well-paying opportunities for trades arise, they are rejected.

In light of a failed education system and lack of apprenticeships, the skill gap between younger workers will cost businesses dearly. For some businesses, it may be an existential crisis.

Since changing the massive education bureaucracy is unlikely, progressive businesses will have to grab the bull by the horns and take on the responsibility for training workers themselves.

Training Objectives

Training is expensive, in time and money, so some companies turn to On-the-Job training. But if the training is not structured, not documented, and not based on any long-term plan, it can be only a transfer of the senior employee’s bad habits to the junior employee.

On-the-Job training can be done, but without structure and objectives for each training session, the effort is wasted.

Well-defined objectives are the starting point for any training unit, no matter how small. Whether the training is in the classroom or on the job, the trainer should know exactly what the trainee is supposed to learn.

The book goes into great detail on preparing instructional objectives because those objectives will guide all that comes after in terms of instruction and activities.

Key Points

  • Training objectives are crucial, as stated above.
  • The different generational cohorts have different expectations of the workplace and different attitudes towards work. Baby boomers differ from Gen X and Gen Y in competitiveness, patience, and expectations. Rather than criticize and attack each other, Baby Boomers should recognize the creative and independent spirit of younger workers and work harder to retain them correctly. Meanwhile, younger workers should recognize the accumulated wisdom and skills of the boomers. The generations are interdependent, not special interest groups lobbying for special privileges at the expense of each other.
  • Learning and training styles differ. Trainers should learn and understand those differences, and understand how to deal with difficult trainees.
  • Knowledge management is essential. Without a structured way of transferring knowledge, the business will incur the cost of re-learning it. [Unfortunately, many older workers see their special knowledge as job security.]
  • Training is only a solution to a problem in select situations. If there is a large performance discrepancy, the job plan is clear, proper resources are planned and provided, poor behaviors are not rewarded (perverse incentives), the job is properly supervised, a genuine skill deficiency exists, the job can not be simplified, and the person is capable of being trained, only then is development and implementation of training “the answer.”

Useful Features

  • A detailed task description for mechanics is included in Appendix A, which could serve as a template for starting a training program.
  • Differentiation between objectives and methods are illustrated through the book.
  • As always, a chapter is dedicated to metrics to indicate how effective the training program is.

Table of Contents

Introduction to Volume 5

Overview of The Maintenance Strategy Series

Chapter 1: The Current Condition of Technical Skills in Maintenance Organizations

Chapter 2: The Training Development Process

Chapter 3: Duty – Task – Needs Analysis

Chapter 4: Learning and Training Styles

Chapter 5: Preparing Instructional Objectives

Chapter 6: Identifying and Developing Training Materials

Chapter 7: Training the Trainers

Chapter 8: Effective Classroom Conditions

Chapter 9: On-the-Job Training

Chapter 10: Measuring the Results

Chapter 11: Continuous Improvement in Training

Chapter 12: Managing the Next Generation of Technical Employees

Chapter 13: Knowledge Management

Appendix A: Mechanical Task Descriptions

Appendix B: Suggested Reading List

Index

Successfully Utilizing CMMS/EAM Systems (Maintenance Strategy Series Volume 4)

Successfully Utilizing CMMS/EAM Systems (Maintenance Strategy Series Volume 4) by Terry WiremanBook Review: Maintenance Strategy Series Volume 4 – Successfully Utilizing CMMS/EAM Systems

Overview

The title of this book is far too narrow. The subject matter is far broader than CMMS  (Computerized Maintenance Management System)/EAM (Enterprise Asset Management) implementation and utilization. While the “business of maintenance” has been a recurring theme throughout the Maintenance Strategy Series, this volume dedicates a larger-than-ever share to space to the subject.

In the first steps of developing maintenance strategy, there was an increasing focus on good documentation. Especially when the focus turns toward work processes in volume 3, the amount of paperwork will be steadily increasing.

It is at this point that computerization of the system becomes desirable, not only to reduce the number of file cabinets, but to allow analysis of the mass of data being collected.

Therefore, it is after (and only after) work process development, refinement, and implementation that attention should be directed toward finding and implementing a CMMS/EAM. A CMMS/EAM system will only add another burden to an already poor work process, so if the system is only “on paper” it should be kept that way until the work process is mature. 

Maintenance Strategy Series Step 4: CMMS

CMMS vs. EAM

Briefly, the difference between CMMS and EAM is one of scope. A CMMS will generally include one or more of work orders, equipment hierarchies, bill of materials, and spare parts inventories.

An EAM system ties together many functions. An EAM should include everything a CMMS includes plus time and payroll, materials requisitioning, purchasing, and planning, RFID tracking, inspection and calibration data, project management, human resources, and detailed reporting.

If a company depends upon its return on capital investment, then integrating the CMMS in an EAM will yield valuable information to business analysts and production planners making business decisions.

If equipment capabilities—and performance in terms of OEE (Overall Equipment Effectiveness)—are not known, then it is difficult to make optimal decisions about where and how to make products.

Therefore, an EAM system is the way to go IF the resources and work processes are in place to support it.

Key Points

  • In selecting a CMMS/EAM, it is first necessary to take stock of where you are and where you want to go. [At large companies, I have generally observed that an EAM system is put in place due to demands by accounting and finance, and maintenance is along for the ride. In these cases, a decision should be made based on input by all stakeholders if an optimal result is desired. If maintenance has to live with an EAM, someone from maintenance should be able to articulate what the requirements of the CMMS portion will be.]
  • Price the entire package when comparing options. Hardware, software, implementation man-hours, and fees for extra services can dramatically change the financial picture. Check for a maintenance fee in addition to the licensing fee. Pricing on software alone is a mistake that can cost millions.
  • Implementation resource requirement guidelines are substantial. Notably, Wireman recommends 1 man-hour per nameplate for equipment and assets and 1 man-hour per inventory item. [For a large site, I would recommend hiring inexpensive temporary help for much of this and using skilled, experienced employees only to monitor the quality of data entered. However it is accomplished, I doubt that most sites are given anywhere near this much time to enter data.]
  • Data entry and analysis takes time and can not be accomplished with a skeleton workforce once the system is up and running.
  • Quantify the costs and benefits of the system up front. Have specific goals and a plan for getting there. If maintenance savings or increased efficiency is expected, start tracking spending or efficiency and track it through implementation. [Guidance is given in chapter 8.]

Useful Features

  • Chapter 2 contains a lengthy Maintenance Strategy Assessment covering the maintenance organization, training programs, work orders, planning and scheduling, preventive maintenance, inventory and purchasing, maintenance automation, operations involvement, reporting, predictive maintenance, reliability engineering, financial optimization, continuous improvement, contracting, and document management. Each of these sections contains numerous questions designed to uncover potential gaps that will reduce ROI in capital assets.
  • A list of maintenance functions is provided in chapter 3, which should assist maintenance in articulating what a new CMMS/EAM system should be able to do. Upon review, items could be integrated into a Kepner-Tregoe decision analysis that would ideally be prepared for the purpose of selecting a CMMS/EAM.
  • A step-by-step implementation process is provided in chapter 5 to ensure that necessary steps are not skipped.
  • Metrics and performance indicators are given for system implementation.
  • A sample of Detailed module requirements is given in Appendix A, which would be most useful in selecting a system.

Table of Contents

Introduction

The Maintenance Strategy Series Process Flow

Chapter 1: Introduction to CMMS/EAM

Chapter 2: Maintenance Strategy Assessment

Chapter 3: CMMS/EAM Systems

Chapter 4: The Selection Process

Chapter 5: The CMMS/EAM System Implementation Process

Chapter 6: Utilization of the CMMS/EAM System

Chapter 7: CMMS/EAM System Optimization

Chapter 8: Return on Investment

Chapter 9: The Future of CMMS/EAM Systems

Chapter 10: Performance Indicators for CMMS/EAM Systems

Appendix A: Sample Detailed Module Requirements Specifications

Appendix B: The Past and the Future

Appendix C: Financial Case Studies

Index

Maintenance Work Management Processes (Maintenance Strategy Series Volume 3)

Maintenance Work Management Processes (Maintenance Strategy Series Volume 3) by Terry WiremanBook Review: Maintenance Strategy Series Volume 3 – Maintenance Work Management Processes

Overview

First, a preventive maintenance program is put in place and made effective—as evidenced by 20% or less break-in work. Next, an MRO inventory and purchasing program is put in place and effective—as evidenced by 95-97% parts in stock when needed. Then, it’s time to focus on improving the planning, scheduling, and execution of maintenance work.

Book three in Terry Wireman’s Maintenance Strategy Series focuses on work management processes within maintenance beginning with a lengthy essay on maintenance as a business.

Maintenance as a Business

How can maintenance be a business? Because maintenance is key to maximizing return on assets in the following ways:

  • Maximize asset throughput
  • Keep accurate records and cost information
  • Optimize capital equipment life
  • Minimize energy use
  • Regulatory compliance and safety improvements.

Without these functions, and many more, a business can not be be competitive.

Maintenance Strategy Series Step 3: Work Order Systems

Key Points

  • Maintenance is a business. Simple business management concepts such as a business plan, mission/vision statements, and performance management, are often neglected in maintenance. Most executives get very little business school training in maintenance, so they see it as a cost center to be minimized.
  • Planned work is less expensive than emergency work. If parts are on hand, job plans are accurate, and operators have equipment ready for work when maintenance arrives, it’s possible make shocking leaps in productivity.

Useful Features

  • Overview of Reporting Structures. Manufacturing facilities can have maintenance report to production, to engineering, or directly to the plant manager. There are tradeoffs and incentives (or disincentives) in each of these structures, which are elaborated in chapter 1.
  • Roles and Responsibilities. A template is provided for supervisors, planners, engineers, and managers in maintenance.
  • In-House or Out-Sourced? The book provides the tradeoffs for a spectrum of staffing options.
  • Flowcharts and Decision Tables. Just like in book 2, there are copious flow charts to get an organization started on the path to formal work processes.
  • Metrics. A whole list of metrics is provided both for work process indicators (i.e. % labor costs on work orders) and planning performance indicators (i.e. hours estimated on scheduled work vs. hours charged to schedule work).

Table of Contents

Introduction

Overview: The Maintenance Strategy Series Process Flow

Chapter 1: The Business of Maintenance

Chapter 2: Work Management / Work Identification

Chapter 3: Emergency or Breakdown Work Processes

Chapter 4: Maintenance Planning and Scheduling Overview

Chapter 5: Simple Planning

Chapter 6: Complex Planning

Chapter 7: The Preventive Maintenance Planning Process

Chapter 8: Shutdowns, Turnarounds, and Outage Work

Chapter 9: Weekly Schedule Process Flow

Chapter 10: The Work Execution Process

Chapter 11: The Work Order Closure and Analysis Process

Chapter 12: Work Management Key Performance Indicators

Appendix A: Equipment Types

Appendix B: Problem Code Master

Appendix C: Cause Code Master

Index

Notes on The Science of Success Chapter 5: Knowledge Processes

The Science of SuccessMy notes on chapter 5 of The Science of Success by Charles Koch:

Quotes

  • “When Soviet nail factories had their output measured by weight, they tended to make big, heavy nails, even if many of these big nails sat unsold on the shelves while the country was crying out for small nails.”—Thomas Sowell [Wikipedia]
  • “The greatest obstacle to discovery is not ignorance but the illusion of knowledge.”—Daniel Boorstin [Wikipedia]
  • “The worth and value of knowledge is in proportion to the worth and value of its object.”—Samuel Coleridge [Wikipedia]
  • “Not everything that counts can be counted, and not everything that can be counted counts.”—Albert Einstein [Wikipedia]
  • “Don’t measure yourself by what you have accomplished, but rather by what you should have accomplished with your ability.”—John Wooden [Wikipedia]
  • “It is one thing to wish to have truth on our side, and another thing to wish sincerely to be on the side of truth.”—Richard Whately [Wikipedia]

Concepts

  1. Trade. Primary determinant of society’s prosperity and progress. Mutual gain is at the foundation. Each party expects to be better off, even if one party is later disappointed.
  2. Geographic Impact on Innovation.Holland and England became trading centers because they were open with good ports and harbors. Africa, Central/South America, and Eastern Europe were more isolated so development was limited. [This is a drastically oversimplified explanation. Also conflicts with our belief that culture is an important factor. Begs question: what happens when the principle reaches it's final conclusion and we are "one world" under the new world order? Besides this, the idea conflicts with silos and "need to know" approach to information sharing that has become fashionable in the company. The opening paragraphs of this chapter are, therefore, in direct and unambiguous conflict with SRM and GP information management strategy.]
  3. Limitation of Internal Means of Improvement.“No company, no matter how capable its employees, can match the pace of innovation and improvement taking place throughout the world solely by internal means.”
  4. Knowledge Processes.“A knowledge process is the method by which we develop, supplant, share, and apply knowledge to create value.”
  5. Measures.Most fundamental: profit and loss. Knowing why something is profitable can be as valuable as knowing that it is profitable. Successful organizations strive to understand profitability of assets, products, strategies, customers, agreements, employees, and anything else it can.
  6. Quantitative vs. Qualitative.Measures should be quantitative when possible, but qualitative/intangible components must be considered.
  7. Accuracy vs. Precision.Accuracy is the first consideration in measures. It is often wasteful to develop more detailed information than is necessary. Outcomes can not be predicted precisely, so don’t try.
  8. CPV Triangle.Seller’s profit = price – costs. Buyer’s profit = value – price. For voluntary transaction to occur repeatedly, price must be in between seller’s cost and buyer’s value. If below seller cost, seller doesn’t make more. If above buyer’s value, buyer doesn’t buy.
  9. Differentiated Products vs. Commodities.Superior understanding of what customer’s value now and later leads to ability to meet demand at higher price (price seeking). Commodity providers, in comparison, are price-takers because their product is undifferentiated from competitors.
  10. Waste Elimination.“For example, if, after cutting costs, profitability drops when other factors have not changed, then we know that what was eliminated was not waste.” [Couldn't have said it better! Reducing costs and reducing waste are very different activities.]
  11. Marginal Analysis. Weighs costs and benefits of a change. What is the profit of one more unit of production? Larger vs. smaller investment? Must optimize base case before using marginal analysis.
  12. Benchmarking.Learn from the best in company (internal), best in industry (competitive), and best in world (world class). Measure in specific functions (IT, sales, operations, etc.) when possible. Requires objectivity and intellectual honesty. Good to benchmark other industries (i.e. airlines measuring against NASCAR pit crews).
  13. Opportunity Cost.True cost of any activity is the highest-value activity forgone. Working on profitable activity is waste when an even more profitable activity is passed up. Avoid this waste by rigorously examining all opportunities and alternatives.
  14. Profit Centers.Identifiable products, prices, customers, suppliers, and assets for which financial statements can be prepared.
  15. Internal Prices.Should represent the weighted average market price of the entire volume.
  16. Cost-Based Pricing.Creates faulty profit signals and bad decisions. [Prices should balance supply and demand. Therefore, an internal supplier has their price set correctly when they have as much work as they can handle, but not much more. Less work requires more marketing or lower prices. More work requires higher prices.]
  17. Service and Support Groups.Tend to maximize service rather than contribution to profitability. Put services under control of relevant business to avoid this. [Could be applied at SRM by putting maintenance under control of operations leaders.]
  18. Free Speech.Enables knowledge creation and sharing through verbal [and written] exchanges. Facilitates discovery and dissemination of knowledge.
  19. Republic of Science.When scientists are well informed about the work of others and free to choose which problems to pursue. Coordination by mutual adjustment of independent initiatives is the republic of science.
  20. Seeking, Sharing, Discussing, Challenging Ideas.Plays a crucial role in the organization.
  21. Trust and Respect.When promoted, employees share ideas and seek the best knowledge from others.
  22. Richard Whately onTruth. See Richard Whately quote, printed above.

Source Note and Links

  1. Thomas Sowell, Knowledge and Decisions. Basic Books, New York., 1980, p. 215. [Amazon] [Wikipedia]
  2. Cited by Carol Krucoff, “The 6 O’Clock Scholar,” Washington Post, January 29, 1984. [Not available online.]
  3. Samuel T. Coleridge, Aids to Reflection and the Confessions of an Inquiring Spirit. George Bell and Sons, London, 1893, p. 36. [Amazon]
  4. F.A. Hayek, Individualism and Economic Order. University of Chicago Press, Chicago, Ill., 1980, pp. 77 – 91. [Amazon]
  5. Cited by Scott Thorpe, How to Think Like Einstein: Simple Ways to Break the Rules and Discover Your Hidden Genius. Sourcebooks, Naperville, Ill., 2000, p. 3. [Amazon]
  6. John Wooden and Steve Jamison, Wooden: A Lifetime of Observations and Reflections On and Off the Court. Contemporary Books, Chicago, Ill., 1997, p. 94. [Amazon]
  7. No external reference
  8. No external reference
  9. Michael Polanyi, Knowing and Being. University of Chicago Press, Chicago, Ill., 1969, pp. 50, 51, 54, 55 and 70. [Amazon]
  10. Richard Whately, Essays On Some of the Difficulties in the Writings of St. Paul, and in Other Parts of the New Testament. B. Fellowes, London, 1830, p. 33. [Amazon]
  11. Cited by Scott Thorpe, How to Think Like Einstein: Simple Ways to Break the Rules and Discover Your Hidden Genius. Sourcebooks, Naperville, Ill., 2000, p. 35. [Amazon]

Common Symptoms and Related Mental Models

From a paper on mental models reted to problems in the Knowledge Processes dimension of MBM:
If you observe these SYMPTOMS The root cause may be in this MBM DIMENSION These MBM MODELS may help create the solution
  • Information not shared
  • Poor feedback system
  • Poor economic and critical thinking
  • Repeated mistakes
  • Hoard knowledge
  • Missed opportunities
  • Duplication/redundancy
  • Uncertainty vs. risk
  • Low productivity/inefficiency
  • Sunk cost mentality
KNOWLEDGE PROCESSES
  • As Simple as Possible, but no Simpler
  • Benchmarking
  • Challenge Process
  • Continuous Improvement
  • Creative Destruction
  • Customer Focus
  • CVP Triangle
  • Discovery
  • Discovery Measures
  • Dispersed & Tacit Knowledge
  • Economic Thinking
  • Feedback
  • Financial Statements and Economic Reality
  • Freedom of Speech and Standards
  • Internal Markets
  • Knowledge Sharing
  • Law of Scientific Proof
  • Marginal Analysis
  • Marginal Utility
  • Opportunity vs. Sunk Costs
  • Personal Knowledge
  • Price Seekers vs. Price Takers
  • Profitability Measures
  • Republic of Science
  • Risk, Uncertainty, and Options
  • Role of Prices, Profit, and Loss
  • Subjective Value
  • Theory of Constraints
  • Time Preference
  • Trade
  • Transaction Costs
  • Transactional Excellence
  • Waste Elimination
  • Whole vs. Sum of Parts

“Establishing the Right Climate”

From another document showing what happens when a piece (knowledge processes) of the MBM framework goes missing (click for full size):

Establishing the Right Climate: Knowledge Process Deficiency

The MBM Framework: Knowledge Processes

MBM

Results

Tools

Knowledge Processes Value is created for customers and the company by acquiring, sharing, vetting, and applying knowledge and measuring key business drivers.
  • Challenge process
  • Economic thinking
  • Cost-Price-Value triangle
  • Performance measures (business and individual)
  • Continuous improvement processes
  • Audit processes
  • Discovery Newsletter & DiscoveryNet

Applying MBM as a Supervisor: Knowledge Processes

In addition to answering these questions for yourself, how are you ensuring your direct reports are striving to get results with their own direct reports?

“Creating, acquiring, sharing and applying relevant knowledge, and measuring and tracking profitability.”You acquire and share relevant knowledge. You measure profitability and value created. Results are appropriately communicated. You and your direct reports share bad news as quickly as good news. Decision making is continually improved through effective challenge.
  • How often are your key measures reviewed, analyzed and challenged by your supervisor and others who can contribute?
  • How are you capturing and sharing lessons from experiments (successes and failures)?
  • What are you doing to encourage your direct reports to constructively challenge you and their peers?
  • How do you ensure that knowledge is shared with and sought from peers, individuals outside your team, other capabilities or business groups?

MBM Blog (Rooted in Prosperity) Posts in Category “Knowledge Processes”

  • Applying MBM 3/24/2011: References “personal knowledge” on the part of leaders on how to apply the concepts of MBM starting with understanding the underlying concepts. Proposes two kinds of starting mistakes: 1) satisfaction with understanding, failing to move to application, and 2) skipping conceptual understanding and progressing immediately to application.
  • Forecast: Cloudy With A Chance Of Luck 3/3/2011: Nouriel Roubini earned fame by predicting the great recession. Since then, he has made poor predictions. Lesson: always be leery of success. Sometimes success is random.
  • Discovering Experimental Discovery 2/23/2011: Questions how to apply the experimental discovery process in the nonprofit sector. Explores how changing market conditions can switch the top dog and their competitors within a year. Warns against complacency, even when you’re the best.
  • Rules vs. Judgment: The Sequel 2/18/2011: More about decision rights than knowledge processes. Compares incremental to categorical decisions. Several examples of zero tolerance-type categorical outlooks (“no child left behind, no one hurt by tainted food, every American goes to college”) which neglect the costs of achieving the vision, the concept of scarcity, and tradeoffs (what must be given up to achieve the end). Compliance matters such as accounting, hiring, manufacturing can not be compromised, but the question is asked whether inflexible policies which are not capable of reasonably quick revision should always be followed: dress code, IT policy, office supply protocol, etc. [Compliance has a particular meaning in MBM and is about following the law. SRM has a culture where every question about rules is or becomes a question of compliance. This needs to change. How can I help that change along?]
  • Rules vs. Judgment, Continued 2/17/2011: Covered in the previous Virtue & Talents notes.
  • Sea Stories: Shooting the Messenger 2/17/2011: Example of poor knowledge process in tech sector. Key concept: collective action problem (“[Describes] the situation in which several individuals would all benefit from a certain action, which, however, has an associated cost making it implausible that anyone individually will undertake it. The rational choice is then to undertake this as a collective action the cost of which is shared.”).
  • Rules vs. Judgment 2/17/2011: Covered in the previous Virtue & Talents notes.
  • A Feedback Quandary 2/8/2011: Compares confidential and anonymous feedback. Points out a program with confidential, non-anonymous feedback. Discusses arguments for and against.
  • Find Out What it Means to Me! 2/2/2011: Ties respect to value creation. Conclusion: Respect means “a culture in which ‘verbal exchanges lead to the discovery of new and better ways to create value.” [More respect => more knowledge sharing => more value creation]
  • The Pleasures of Measures 2/1/2011: Discusses metrics without the luxury of profit-and-loss. Presents summaries of the Kirkpatrick frameworkSuccess Case method, “directionally correct,” constellations, benchmarking, and Program Theory.
  • Challenging the Challenge Process: Team Learning 1/20/2011: Review of The Fifth Discipline: The Art & Practice of the Learning Organization. Book advocates “team learning” through “dialogue and discussion.” Differentiates between productive and nonproductive conflict. Productive conflict characterized by lack of defensiveness. Unproductive conflict manifests in one of two ways: lack of any conflict on the surface and rigid polarization. [How can "teams" learn? Food can't be digested in multiple stomachs at the same time, and ideas can not be digested in multiple brains. It seems to me that learning is an individual capability. Perhaps it is valid to consider individuals as learning to work better in teams, but the mental model of "team learning" is counterintuitive to me. Maybe if I read the book it would be more understandable.]
  • How Effective is Your Feedback? 1/18/2011: Links to nicecritic.com, a website that allows for anonymous messages for people who are too shy to provide direct negative feedback to people around them. [I think this kind of feedback is more likely to arouse paranoia. Face-to-face is much more effective. The etiquette perspective demands that the dynamics of an interaction favor the comfort of the other person. Giving anonymous feedback is about one's own comfort.] Reviews other mistakes of feedback: too strong so other person shuts down, and not providing enough, which indicates lack of respect (letting the other person fail).
  • Challenging the Challenge Process: Order Matters 1/13/2011: Meandering post about the challenge process.
  • Internally Providing 1/11/2011: Asks several questions around knowledge processes and associated symptoms for people who serve only internal customers.
  • Sea Stories 1/10/2011: Looking for stories about applying MBM.
  • Challenging the Challenge Process: Part II 1/6/2011: Covered in the previous Vision notes.
  • Get Out Your Pocket Protectors 1/4/2011: Covered in the previous Vision notes.
  • Privacy in the Organization1/3/2011: Compares the strengths of organizational transparency vs. opacity. [Quite a relevant post. The "rumor mill" could not operate in a climate of trust and complete transparency. Knowing why a decision, like a promotion or firing, was made could be a source of guidance for employees about expectations. Those who don't like the decision-making process might leave, but that might be a good thing. Benefits of transparency would have to be weighed against matters of personal privacy and compliance.]
  • “Failure” 12/27/2010: Wanders around before settling on a question: “How can we lower the social costs of making mistakes in order to create a learning culture?” Interesting comment: “I wonder if we, as humans, tend to chronically overestimate the social costs of making mistakes. A mistake that seems like a big deal to me is usually not at all to anyone else. So is the real question, how do we adjust our perception of what constitutes a true mistake and want constitutes learning to be more in line with how other people perceive us.” [I don't know that we overestimate the social costs. It seems to me that just as often, we underestimate. I suppose it depends which of the two primal emotions dominate. If greed, we underestimate risk and the downside of mistakes. If fear, we overestimate risk and the upside of success.]
  • Challenging the Challenge Process: Part I 12/16/2010: Proposes we might spend too much time on the analyzing side of the challenge process and not enough time on the creative side.
  • The Success Case Method 12/13/2010: Reviews book The Success Case Method and concludes that this method of measuring the results of training is too expensive and cumbersome for most organizations. 
  • Charity Begins at Work 12/9/2010: Meandering post on charity. [Point is unclear to me, but it might have something to do with Cialdini's concept of reciprocity.]
  • Theory to Practice Discussion Schedule 11/29/2010: Discussion group notice.
  • The Art of MBM: Norman Rockwell 9/29/2010: Meandering piece on freedom of speech and Norman Rockwell.
  • MBM Readings 8/3/2010: Covered in the previous Virtue & Talents notes.
  • Hunches 5/31/2010: Covered in previous Virtue & Talents notes.
  • Coolest Website of the Month 4/2/2010: Links to Wolfram Alpha.
  • Science 3/24/2010: Once scientists came together to agree on the definition of a planet, Pluto no longer made the cut. YouTube video explains why. Questions whether this change is an example of Polanyi’s Republic of Science of the Kuhn Cycle.
  • Hit the Open Field… The Power of Stories. 10/7/2008: Tell stories instead of blathering through Powerpoints.
  • Markets Fail When You Make Them 10/1/2008: Shows humility by admitting previous prediction of having gas in Georgia was wrong because other factors were more important. [While anti-gouging laws were a factor, they were not the only factor. Demonstrates the importance of understanding all of the factors that shape a market. However, stronger anti-gouging laws still would have made the situation worse than it actually was.]
  • Why there will be Gas in Georgia 9/12/2008: Georgia has weaker anti-price-gouging laws than neighboring states and is therefore more like to have gas in an emergency. Any shortages would be less severe than in equivalent circumstances nearby.
  • Not from the Onion but it belongs there 7/8/2008: There is no futures market for onions since 1958. Since then, prices for onions are more volatile than they were when there was a futures market. Futures markets are valuable knowledge processes.
  • The Importance of Vetting Knowledge 7/1/2008: Amusingly, gas pumps in Arizona are sometimes poorly calibrated, and half the time to the detriment of customers. [Reminds me of a Dilbert strip about 40% of sick days being Mondays and Fridays.] Calibrating pumps is $800 and the fine is $300, so owners typically allow the state to inspect their pumps for them, pay the fines, and recalibrate only the pumps found to be faulty. Thus, context makes the 1 out of 11 pumps having problems seem less surprising. [Also surprisingly, the analysis of the post fails to examine the issue from a compliance standpoint. If KII ran gas stations, should they regularly go to the expense of recalibrating their gas pumps to avoid the small fine? Could they stay in business doing so? If not, would this be a reason not to enter the industry? From a reliability standpoint, is this an age-related failure mode? Depending on the accuracy required, couldn't a station owner buy a scientific scale and check his own pumps before the state inspector came or pay someone to do so cheap? But once a pump is found to be not precise enough, isn't it already out of compliance? How could the station owner strive for 10,000% compliance?]
  • Do You Have a Bad Job? 5/30/2008: Good and bad jobs are relative, consistent with subjective value.
  • Physician, Heal Thyself 9/7/2007: Links to a Slate article on antiquated medical practices. Compares same-day reservations to expensive restaurants to weeks-ahead scheduling of doctor visits due to poor scheduling practices. [Might this apply to our maintenance practices? Do we really need to schedule jobs three weeks after they are identified? The rate at which work is done doesn't change, so what does this delay buy us? This would be an interesting problem to tackle, but there would be many success enablers for same-day maintenance that we do not have in place: good BOMs, good reliability, reasonable "inspection" volume, the right parts in stores or the ability to deliver very quickly, and blocks of time that remain unallocated through the week. Therefore, the premise of this article contradicts parts of our maintenance paradigm of 100% schedule allocation at least a week in advance. This might actually impose disruption costs because disruptions are almost inevitable in an unreliable manufacturing setting anyway.]
  • Anchors Away 9/5/2007: Initial opinions are “sticky.” The first piece of information you get on a subject is the most powerful. Cognitive bias is toward early information rather than good information. [Business application is that if you go in a new direction, get it right the first time, because there is no second chance to make a first impression. It is better to spend a little time working through bugs on paper using processes like K-T PPA rather than jumping into an idea and expecting details to work themselves out. If they don't, the project might be irrevocably spoiled for those watching. Recovery could be much more difficult if not impossible.]
  • The Five Percent Solution 7/31/2007: Already covered in Vision notes.
  • A Challenge Lesson from the Jury Room 6/28/2007: Study finds juries more accurate in assessing guilt than judges. Guesses that juries are better platforms for the challenge process. [The "jury process" has evolved over time. From the time one jury was held prisoner until they agreed to convict William Penn, who was in clear violation of preaching a quaker sermon, and never did, juries have the established right to judge the facts and the law. Jury nullification, which provides precedent to overturn bad or unclear laws, now goes against explicit instructions by judges not to do so. Thus, jurors are misinformed about their rights by courts. Also, the meaning of "jury of one's peers" has been changed over time to become increasingly meaningless as protection for the accused. Finally, some people have more group loyalty that might cause them not to convict the guilty for reasons of similarity or convict the innocent for reasons unrelated to the facts or law. Nonetheless, Thomas Sowell argues in Knowledge and Decisions that juries offer the "best" judgment for the "least" cost and that perfect justice, like anything perfect, costs more than people are willing to pay.]
  • The Rule of Law and the Cafeteria 5/3/2007: If the rules apply equally to all, then we will have better rules. [Does it work this way at SRM? Do rule-makers work under the same rules as rule followers? Does anyone get special treatment due to job title or rank the reduces the impact of intrusions?]
  • What Can You Learn from a Jar of Spaghetti Sauce? 4/25/2007: Links to Malcolm Gladwell talk from TED (17:33) about spaghetti sauce. [Note: My notes don't do the video justice.] Don’t ask what is the perfect spaghetti sauce. Ask what the most perfect sauces are. Look for clusters in the data. Hence, we have people who like plain, people who like extra chunky, and people who like spicy. Before Prego, there was no extra chunky, but one third of the country wanted it. Prego introduced extra chunky and came to dominate the market. Old assumption: to find out what people wanted, ask them. New assumption: We can’t always explain what we want. Critical point: horizontal segmentation (different products for different people). Cultural authentication is not the one and only way to please customers. Don’t overconcentrate on universals. The difference mean as much as the similarities. Embrace human diversity and offer variety rather than universals.
  • Know Thy Knowledge Processes: The Confessions of a Negative Saver 4/24/2007: Even though the author saves, funny data collection and interpretation counts him as a negative saver. Lesson: when you look at measurements, consider what they mean, how the data was collected, and what its limitations are. [The author is obviously way ahead of most people. However, gold does not deteriorate while cigarettes do, so he may want to modify his saving strategy. However, the rate of deterioration is relative. Cigarettes are a perfect medium of exchange in POW situations, but can never be a store of wealth or a medium of large transactions.]
  • Who Will Create the Jobs? 4/18/2007: Links to article from the Kansas City Fed about how economic incentives designed to attract large manufacturing firms to a city or state seldom pay off. Recommends fostering a climate conducive to entrepreneurship by people already living in the state.
  • The Bracketology of Crowds, Part V: Final Four and Championship Results 4/3/2007: Not much of a point here.
  • The Bracketology of Crowds, Part IV: Sweet 16 and Elite 8 Results 3/26/2007: No real point to this one.
  • The Bracketology of Crowds, Part III: 2nd Round Report 3/19/2007: No real point to this one.
  • The Bracketology of Crowds, Part II: 1st Round Report 3/17/2007: No real point to this one.
  • The Bracketology of Crowds 3/16/2007: People with little knowledge make random predictions that cancel each other out. Those who know place the marginal bets that make good market-based predictions.
  • Dr. Sneer-Quotes 2/20/2007: Compares fake diplomas and the loss of credibility to the title of “doctor” to consultants who don’t allow challenge process and concludes that titles don’t prove ideas correct. [A better analogy may be to the damage done to MBM when someone speaks the language but misapplies the ideas. Example: using "compliance" to describe anything other than following the laws and government regulations that pertain to the job.]
  • Sure you’re smart, but remember others can and should contribute 2/18/2007: Links to an article mostly about decision rights and V&T. Key quote: They should let employees influence decisions and listen when they say the company is getting off course. “If you’re going to make all the decisions, you might as well hire idiots,” says Pfeffer. “They’re cheaper.”
  • The Power of Dispersed Knowledge: A Tasty Example 5/12/2005: Points to an article on lobster, including both how the market coordinates individual actions to deliver product, and how government regulations were shaping the industry and causing confusion. Without access to the subscription site and without any personal knowledge of the fishing or lobster industries, the brief synopsis was difficult to follow.

Notes on Other Books

  • Personal Knowledge by Michael Polanyi: Explores scientific epistemology and the relationship between language and knowledge. Describes the idea of tacit knowledge: things we know but can not explain (like how to ride a bicycle). Compare tacit knowledge to explicit or articulated knowledge.
  • Knowledge and Decisions by Thomas Sowell: As the title implies, explores the ways in which knowledge influences decisions, with emphasis on economic and political decisions. One key idea also ties back to incentives: when there is a feedback loop to the decision maker, more effective decisions are made. Compares scientific truths with consensual truths. Consensual truths might be a bit like Polanyi’s tacit knowledge. Presents classification scheme of ideas by relationship to authentication process:
    Kind of Idea
    Relationship to Authentication Process
    Theory Systematically prepared for authentication
    Vision Not derived from any systematic process
    Illusion Could not survive any reasonable authentication process
    Myth Exempts itself from any authentication process
    Fact Has already passed authentication processes
    Falsehood Known to have failed, or certain to fail, authentication (includes both mistakes and lies)
  • Introduction to Objectivist Epistemology by Ayn Rand: Quite out of fashion for twentieth century thinkers, argues for the existence of objective reality and the capability of reason for understanding it. Focused on the epistemology of philosophy.
  • Philosophy as a Way of Life by Pierre Hadot: Emphasizes spiritual exercises as a means to achieve tacit knowledge. Examines Socratic and Hellenistic philosophers (emphasis on Stoics and Epicureans) emphasizing similarities and generally showing some differences to be superficial.

Other Articles with Application in Knowledge

  • Are Your Wasting Money on Useless Knowledge Management? 1/20/2011: Offers 2-dimensional mental model of knowledge management: information dispersion (how many know inside and outside firm) vs. codification (explicit vs. tacit). Key image (ignore the acronyms, click for full size):
    Knowledge Diffusion and Codification
    Generally, value creation opportunities are to codify knowledge that is only held by experts so that non-experts can apply it (moving systems “up”), and to protect movement of systems to the right by protecting trade secrets and intellectual property. [The second opportunity would not apply to social media firms, where the value creation opportunity is to move to the right as far as possible. This incentive strongly contradicts the users who desire privacy.]
  • Knowledge Management Below the Radar 1/4/2011: Idea of “pre-emptive” knowledge management, assuming that knowledge will eventually be outdated. Another mental model of knowledge management, this time historical/pre-emptive vs. formal/ad hoc:
    Knowledge Management Below the Radar

Team Discussion Questions

  • How do you manage all of the information in your life to ensure you have the right information at the right time? To avoid missed opportunities?
  • What would our facility look like if we were great at managing and processing knowledge?
  • What would be the result for safety/quality/reliability/production if we were great at processing knowledge?
  • As a team who practices knowledge sharing, how should we react when we are faced people who are acting like internal competitors? What is in our rational self-interest?
  • How much time do we spend in our daily jobs and lives sharing knowledge and seeking out new knowledge for ourselves? How much time should we spend?
  • Is it possible to reconcile knowledge sharing and value creation with a “need to know” culture? Should we pursue a need-to-know culture? What does “need” mean in the context of “need to know?”