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    Holger Danske

    Holger Danske

    Entries in Business (3)

    Tuesday
    Jun212011

    Lean Manufacturing

    As I mentioned yesterday, lean manufacturing didn't really take off in the US until the 1980s, despite being developed here first. I wonder whether this may be due to the baleful influence of Frederick Winslow Taylor. Taylor is an influential figure in US managament theory, but while he called his approach scientific management, there wasn't any real science to it.

    Management theory came to life in 1899 with a simple question: “How many tons of pig iron bars can a worker load onto a rail car in the course of a working day?” The man behind this question was Frederick Winslow Taylor, the author of The Principles of Scientific Management and, by most accounts, the founding father of the whole management business.

    Taylor was forty-three years old and on contract with the Bethlehem Steel Company when the pig iron question hit him. Staring out over an industrial yard that covered several square miles of the Pennsylvania landscape, he watched as laborers loaded ninety-two-pound bars onto rail cars. There were 80,000 tons’ worth of iron bars, which were to be carted off as fast as possible to meet new demand sparked by the Spanish-American War. Taylor narrowed his eyes: there was waste there, he was certain. After hastily reviewing the books at company headquarters, he estimated that the men were currently loading iron at the rate of twelve and a half tons per man per day.

    Taylor stormed down to the yard with his assistants (“college men,” he called them) and rounded up a group of top-notch lifters (“first-class men”), who in this case happened to be ten “large, powerful Hungarians.” He offered to double the workers’ wages in exchange for their participation in an experiment. The Hungarians, eager to impress their apparent benefactor, put on a spirited show. Huffing up and down the rail car ramps, they loaded sixteen and a half tons in something under fourteen minutes. Taylor did the math: over a ten-hour day, it worked out to seventy-five tons per day per man. Naturally, he had to allow time for bathroom breaks, lunch, and rest periods, so he adjusted the figure approximately 40 percent downward. Henceforth, each laborer in the yard was assigned to load forty-seven and a half pig tons per day, with bonus pay for reaching the target and penalties for failing.

    ...

    Yet even as Taylor’s idea of management began to catch on, a number of flaws in his approach were evident. The first thing many observers noted about scientific management was that there was almost no science to it. The most significant variable in Taylor’s pig iron calculation was the 40 percent “adjustment” he made in extrapolating from a fourteen-minute sample to a full workday. Why time a bunch of Hungarians down to the second if you’re going to daub the results with such a great blob of fudge? When he was grilled before Congress on the matter, Taylor casually mentioned that in other experiments these “adjustments” ranged from 20 percent to 225 percent. He defended these unsightly “wags” (wild-ass guesses, in M.B.A.-speak) as the product of his “judgment” and “experience”—but, of course, the whole point of scientific management was to eliminate the reliance on such inscrutable variables.

    One of the distinguishing features of anything that aspires to the name of science is the reproducibility of experimental results. Yet Taylor never published the data on which his pig iron or other conclusions were based. When Carl Barth, one of his devotees, took over the work at Bethlehem Steel, he found Taylor’s data to be unusable. Another, even more fundamental feature of science—here I invoke the ghost of Karl Popper—is that it must produce falsifiable propositions. Insofar as Taylor limited his concern to prosaic activities such as lifting bars onto rail cars, he did produce propositions that were falsifiable—and, indeed, were often falsified. But whenever he raised his sights to management in general, he seemed capable only of soaring platitudes. At the end of the day his “method” amounted to a set of exhortations: Think harder! Work smarter! Buy a stopwatch!

    The men who started lean manufacturing were engineers and statisticians, such as Henry Ford, Walter A. Shewhard [another success from Bell Labs!], and W. Edwards Deming. Unlike Taylor, they actually had a background in science and knew the value of experiments and good data. Taylor knew enough to talk about data, but he didn't really follow through, and inaugurated the Dilbert-esque practices of vacuous exhortation backed by spurious data that we all know and love.

    Monday
    Mar012010

    Efficiency and Expertise

    John D Cook links to a couple of zingers on efficiency in the workplace.

    I've been thinking about these sorts of things a lot recently, but I really like it when somebody pokes holes in Malcolm Gladwell's foolishness. Yes, for God's sake, 10,000 hours of effort cannot make anyone into a genius. It sure can help you get better, but talent and luck matter as much, if not more.

    The other is a bit more meaty. I've begun to suspect that American business has got much of the easy gains from efficiency improvements already. James Kwak apparently agrees. To be fair, once someone figured how to analyze work tasks formally, we discovered there was a lot that could be improved upon. And we did so. It is understandable that people think you can just keep on doing that ad infinitum. But it is probably wrong. There is definitely a point of diminishing returns, and the potential return is probably a lot less on creative knowledge work than it is on manufacturing processes. And even on manufacturing processes, sometimes you can't get any more efficient because it starts to get inhumane to work people that hard.

    Kwak is right on in his description of how productivity works for knowledge workers like myself. I have a Blackberry, and I really like it, but I am glad that it is not linked to my work email because it would be really annoying. I pay for my own Blackberry, and I use it primarily for personal things. GPS, maps, Facebook, searching for words when I am in random places, and such. I do have my work appointments on it, because I need to be in a lot of places all day long, and it is a God-send for that. It is also handy for tracking down wayward team members via text message [Where are you? We are ready to start the experiment and you said you wanted to be here.] I use it for Pandora when I am working in strange places too. My Blackberry is completely useless for actual work tasks, because it is simply not powerful enough. I cannot run SolidWorks on it, and that is fine. As long as you know how to use your tools correctly, this should not be a problem.

    Well, the efficiency expert may counter, all I need to assume is that a fixed percentage of your desk time is productive. But that’s still a big assumption. Maybe the real constraint on your daily productivity is mental energy, and you only have enough mental energy to do four hours of real work a day. Then your extra two minutes will all go to looking at pictures of cats with ungrammatical captions. Even more likely, maybe the real constraint is your internal sense of what a reasonable day’s work is. Many of us have either left early because we got a lot done or stayed late because we got little done. Maybe the real constraint is how much work your supervisor expects you to do. Maybe the real constraint is how much your colleagues get done, either for process reasons or simply because workplace norms are set by group as a whole. Maybe the real constraint is your motivation level. Maybe the real constraint is customer demand. (Another of LeBlanc’s examples is a cafe where the barista only spends half his time actually making a drink; the most plausible explanation is that you need to staff for potential demand, but actual demand fluctuates and is generally below potential demand.)

    I am all for the idea that the real way to increase productivity is to not do things that don't matter. I think this idea is lurking in the background of most productivity improvements, but you should just say it out loud. The problem is that the tool set of efficiency studies comes from Operations Research, so you are forced to do silly things like estimate the proportion of time spent at your desk that is "productive" and try to maximize that. The problem here is trying to quantify something that not really quantifiable. Some unproductive time with Aristotle might clear that up.

    Saturday
    Feb202010

    Fast Company 2010 Most Innovative Companies

    50 Most Innovative Companies

    My own employer did not make the list of the 50 Most Innovative this year, but we did end up on the All-Stars list