Shipulski On Design

We all have computer models – economic models, buying models, voting models, thermal, stress, and vibration. A strange thing happens when our models reside in the computer: their output becomes gospel, unchallengeable. And to set the hook, computerized output is bolstered by slick graphics, auto-generated graphs, and pretty colors.

Model fundamentals are usually well defined, proven, and grounded – not the problem. The problem is applicability. Do the fundamentals apply? Do they apply in the same way? Do different fundamentals apply? We never ask those questions. That’s the problem.

New folks don’t have the context to courageously challenge fundamentals and more experienced folks have had the imagination flogged out of them. So who’s left to challenge applicability of fundamentals? You know who’s left.

It’s smart folks with courage that challenge fundamentals; it’s people willing to contradict previous success (even theirs) that challenge fundamentals; it’s people willing to extend beyond that challenge fundamentals; it’s people willing to risk their career that challenge fundamentals.

Want to challenge fundamentals? Hire, engage, and support smart folks with courage.

Manufacturing creates value to pay for schools.

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Manufacturing creates value to pay for healthcare.

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Manufacturing creates value to build and maintain infrastructure.

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Manufacturing creates value to pay mortgages.

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Manufacturing creates jobs.

Doing new is hard and starting new is particularly hard. Once fear is overcome and new is started, doing new becomes a battle with discouragement. Not managed, discouragement can stop new.

Slumped shoulders and a head hung low are the signs and a mismatch with expectations is the source. Expectations are defined in the form of a project plan, but, since the work is new, expectations are not grounded, not calibrated. How long will it take to do something we’ve never dreamed of doing? Yet when disguised as a project plan, uncalibrated expectations become a hard deadline.

When you want to do new, you give the project to your best. When they use the right tools, the latest data, and the best processes, yet new does not come per the plan, your best can become discouraged. But this discouragement is misplaced. Sure, the outcome is different from the plan, but reality isn’t the problem, it’s the plan, the expectations. They did everything right, so tell them. Tell them the expectations are out of line. Tell them you think their doing a good job. Tell them if it was easy, you’d have given the project to someone else. Tell them they can feel discouraged for five more minutes, but then they’ve got to go back, look new in the eye, and kick its ass.

Change the culture. Easy to say, tough to do.  What does it mean, anyway?

Culture is a result of something – behavior.  I’ll go further – culture is behavior, behavior themes, but behavior still. Behavior is a result of behavior.

Want to change someone’s behavior? Wrong question. You can’t.  You can change yours, they can change theirs.  Those are the rules.

Want someone to change their behavior? Change yours to help them change theirs. Want to seal the deal?  Explain why. Why cuts deeper than behavior.

Don’t change the culture, change your behavior.

Inspiring work is art.

Inspiring work is rare.

Inspiring work is scary.

Inspiring work is thrilling.

Inspiring work is the reward.

Inspiring work is life changing.

Inspiring work is easy to recognize.

Inspiring work is difficult to recognize.

Inspiring work is an acknowledgment of self.

Inspiring work’s magnitude is proportional to the fear.

A recent article written by Leslie Gordon of Machine Design.

You have probably seen it yourself: images of Chinese workers toiling in mud-floored factories, each feeding a separate punch press, as if part and parcel of a living, progressive die. The lure of this cheap labor has sent many U.S. manufacturers scrambling overseas to cut production costs.

Although design-for-manufacturing tools that would have made this exodus unnecessary have been around for more than 20 years, companies continue to overlook them, says Mike Shipulski, chief engineer of plasma-cutter manufacturer Hypertherm, hypertherm.com, Hanover, N.H. “Companies are sticking their heads in the sand. Many U.S. firms have become too entrenched in doing things the same way. For example, a typical product-cost breakdown shows material to be the largest cost at about 72%. Overhead is around 24% and labor is only about 4%. The question becomes, why continue to move manufacturing to so-called ‘low-cost countries’ to chase 50% labor reductions for a whopping 2% cost reduction? And it’s sillier than that because companies don’t account for cost increases in shipping and quality control.”

The problem is that companies neglect to efficiently account for cost during the design side of product development….

Click for the rest of the article

In sourcing, out sourcing, off shoring, on shoring – the manufacturing debate rages. So what’s the big deal? Jobs – the foundation of an economy. Jobs pay for things, important things like food, schools, and healthcare. No jobs, no economy. The end.

What does lean, the most successful manufacturing business methodology, have to say about all this? Lean’s fundamental:

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Make it where you sell it

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because the shortest supply chains are least wasteful. Dig the ore in-country, make the steel in-country, forge it, machine it, and sell it in-country. With, of course, some qualifiers, some important ifs:

• If in-country demand is high enough to warrant the investment
• If your company is big enough to pull it off
• If quality can be assured.

All good, but I’m discouraged by what lean does not say:

• Regardless of the country, engage the design community to reduce material cost and waste
• Regardless of the factory, engage design community to make your factory output like two
• Regardless of the industry, engage design community to reduce part count.

We all agree the design community has the biggest influence on cost and waste, yet they’re not part of the lean equation. That’s wasteful. That violates a fundamental. That makes me sad.

Let’s put aside our where-to-make-it arguments for a bit, and, wherever you make product,

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Engage the design community in lean.

There are three categories of knowing: we know we know, we don’t know, and we think we know.

When we know we know – we understand fundamentals, we have a model, we have evidence, we can predict. We can build on this knowledge. We’re not often in this state, but it sure feels good when we are. The trick here is to understand the applicability of the knowledge. Change the inputs, change the system, or change the environment and we must question our knowledge. Do the fundamentals still apply?

When we don’t know – no fundamentals, no model, and no predictions. No danger on building on bad knowledge. Life is uncomplicated. Next task: develop the fundamentals; build a model. We’re in this state more often than we admit, and there’s the danger. It’s politically difficult to say “I don’t know.” But it must be said. Otherwise we’re expected to predict the future and to build on the knowledge (that we don’t have).

When we think we know – no fundamentals, no model, and predictions we bet our businesses on. Danger. It feels just as good as when we know we know, but it shouldn’t. Momentum in the wrong direction and we don’t know it. And we’re likely in this state more often than not. But this is a meta-state, an unstable state. The trick is to push on our knowledge so we tip into one of the other two states. Push on our knowledge so we know if we know.

Do you know the fundamentals? Do you have a model? Can you predict?

What’s worse than getting only one thing done today? Getting none done.

The problem? Our New Normal. Too many things. Dilution.

The answer? Stop starting and start finishing.

Environmental stability, aka, Green, is just starting. Most are still in reluctant compliance mode, hoping beyond hope that this newest of corporate initiatives dies on the vine, that it’s just another corporate initiative. Wrong. Very wrong. It’s the way we’re going to grow our business; it’s the way we’re going to make money. It’s time to open our minds, grab Green by the throat, and shake it. Green is here to stay, and Green will demand we change our thinking, will make us see our problems differently, will require we dismantle our intellectual inertia, will require innovation.

Pretend you’re a manufacturer of jeans, the blue ones, the ones that feel so good when you put them on, the ones you’d like to wear to work if you could. (Maybe that’s just me.) Year-on-year your innovation efforts focus on adding pockets then removing them, adding holes then removing them, zippers here then there, dark wash then light, baggy then tight, and yellow stitching than red. What else can a jean innovator do?

Corporate sends the memo: “We’re going Green.” Green jeans. They hire the best sustainability consultants and you, the jean innovator, sit through the sustainability audit results. Their recommendation – reduce carbon footprint: use materials that consume less energy, reduce electricity in your factories, minimize distribution’s fuel costs, and reduce travel miles of your sales folks. Brilliant. Whatever we paid these guys, it was too much. But then they twist your brain. The carbon footprint from the use of your product dwarfs everything else. Your customers generate a massive carbon footprint when they wash and dry your jeans, and you have no control over it. Your jeans are made once and washed and dried countless times. Whoa. Your eyes roll back in your head. What’s a jean innovator to do? First thing – forget about the stupid pockets. Next, figure out how to reduce the carbon footprint generated by your customers. Define the problem and innovate. But what’s the problem?

Why do folks wash their jeans? The obvious answer – they’re dirty. Let’s figure a way to prevent jeans from getting dirty, right? No. The real answer – they stretch, they get baggy and don’t fit right; so we wash them to tighten things up. We wash CLEAN jeans because they get baggy, not because they’re dirty. Let’s fix that.

Believe it or not, there are many likely innovative solutions to make jeans de-baggy themselves, but that’s not the point. The point is we must innovate on jeans that reconfigure, and must not innovate on keeping jeans clean (though we may innovate on that down the road) and must not innovate on pockets, zippers, and stitching.

Green shaped our innovation work. We now have Green jeans that feel good and spring back after wearing and fit great on day two – no washing required. We now have Green jeans that save customers time and money while flattering their backside. But here’s the point – we would have never invented de-baggying jeans without opening our minds to Green as a way to grow our business, to Green as a way to make money. Reluctant compliance won’t get us there. Grab Green by the throat and shake it…before your competitors do.

Companies (and countries) are slowly learning that moving manufacturing to low cost countries is a big mistake, a mistake of economy-busting proportion. (More costly than any war.) With labor costs at 10% of product cost, saving 20% on labor yields a staggering 2% cost savings. 2%. Say that out loud. 2%. Are you kidding me? 2%? Really? Moving machines all over the planet for 2%? What about cost increases from longer supply chains, poor quality, and loss of control? Move manufacturing to a country with low cost labor? Are you kidding me? Who came up with that idea? Certainly not a knowledgeable manufacturing person. Don’t chase low cost labor, design it out.

(I feel silly writing this. This is so basic.  Blocking-and-tackling. Design 101. But we’ve lost our way, so I will write.)

Use Design for Assembly (DFA) and Design for Manufacturing (DFM) to design out 25-50% of the labor time and make product where you have control. The end. Do it. Do it now. But do it for the right reasons – throughput, and quality.  (And there’s that little thing about radical material cost reduction which yield cost savings of 20+%, but that’s for another time).

The real benefit of labor reduction is not dollars, it’s time. Less time, more throughput. Half the labor time, double the throughput. One factory performs like two. Bring it back. Fill your factories. Repeat the mantra and you’ll bring it back:

Half the labor and one factory performs like two.

QC stands for Quality Control. No control, no quality. Ever try to control things from 10 time zones in the past? It does not work. It has not worked. Bring it back. Bring back your manufacturing to improve quality. Your brand will thank you. Put the C back in QC – bring it back.

Forward this to your highest level Design Leaders. Tell them they can turn things around; tell them they’re the only ones who can pull it off; tell them we need; tell them we’re counting on them; tell them we’ll help; tell them to bring it back.