Shipulski On Design

Work can be good or bad, calming or frustrating, it can fly by or crawl.  What’s makes the difference?  Meaning.  When work has meaning you are happy, and when it does not you are not happy. (Or you’re happy for a different reason, likely because of a meaningful relationship.) You wear happiness on your sleeve when work has meaning, so it’s clear to all which camp you’re in.  Can’t hide it.  But what does it mean for work to have meaning?

Work has meaning when you see it as part of a bigger picture, when you see it as part of the bigger context, when you see it as knit into the big blanket of life, when you can see how other people benefit from your work, when you can see how society benefits from your work.  It’s not just the big jobs that can have meaning – they all can, regardless of pay or status.  Burger-flipper or CEO, teacher or janitor, writer or actor, all can find meaning in their work, or not.

Want to know if your work has meaning?  Answer these questions for yourself:

1. Who benefits from my work?
2. How are they better off because of my work?
3. How does my work enable others to help others?
4. How does my work help children? (my favorite)

The questions help you place your work in the spider web that is society – an intricate network of thin connections.  More connections radiating from your work, more meaning.  The further outward your work can jiggle the web, the greater the meaning.

Let’s face it, we spend a lot time at work.  You might as well enjoy it.  So, search for meaning, think about how your work helps others, and place yourself in the biggest, baddest spider web you can spin, and jiggle the hell out of it.

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Click this link for information on Mike’s upcoming workshop on Systematic DFMA Deployment

For too long we have praised financial enterprises for driving economic growth knowing full well that moving and repackaging financial vehicles does not create value and cannot provide sustainable growth. All the while, manufacturing as taken it on the chin with astronomical job losses, the thinnest capital investments and, most troubling, a general denigration of manufacturing as an institution and profession. However, we can get back to basics where sustainable economic growth is founded on the bedrock of value creation through manufacturing.

Continuing with the back-to-basics theme, manufacturing creates value when it combines raw materials and labor with thinking, which we call design, to create a product that sells for more than the cost to make it. The difference between cost (raw materials, labor) and price is profit. The market sets price and volume so manufacturing is left only with materials and labor to influence profit. At the most basic level, manufacturing must reduce materials and labor to increase profit. We can get no more basic than that. How do we use the simple fundamentals of reducing labor and material costs to resurrect U.S. manufacturing? We must change our designs to reduce costs using Design for Manufacturing and Assembly (DFMA).

The program is typically thought of as a well-defined toolbox used to design out product cost. However, this definition is too narrow. More broadly, DFMA is a methodology to change a design to reduce the cost of making parts while retaining product function. Systematic DFMA deployment is even broader; it is a business method that puts the business systems and infrastructures to deploy DFMA methods in place systematically across a company. In that way, it is similar to the better known business methodologies lean, Six Sigma and design for Six Sigma.

Click this link for the full story.

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Click this link for information on Mike’s upcoming workshop on Systematic DFMA Deployment

Improvement is good; we all want it. Whether it’s Continuous Improvement (CI), where goodness, however defined, is improved incrementally and continually, or Discontinuous Improvement (DI), where goodness is improved radically and steeply, we want it. But, it’s not enough to want it.

How do we create the Improvement Mindset, where the desire to make things better is a way of life? The traditional non-answer goes something like this: “Well, you know, a lot of diverse factors have to come together in a holistic way to make it happen.  It takes everyone pulling in the same direction.” Crap. If I had to pick the secret ingredient that truly makes a difference it’s this:

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People with the courage to see things as they are.

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People who can hold up the mirror and see warts as warts and problems as problems – they’re the secret ingredient. No warts, no improvement. No problems, no improvement. And I’m not talking about calling out the benign problems. I’m talking about the deepest, darkest, most fundamental problems, problems some even see as strengths, core competencies, or even as competitive advantage. Problems so fundamental, and so wrong, most don’t see them, or dare see them.

The best-of-the-best can even acknowledge warts they themselves created. Big medicine. It’s easy to see warts or problems in others’ work, but it takes level 5 courage to call out the ugliness you created. Nothing is off limits with these folks, nothing left on the table. Wide open, no-holds-barred, full frontal assault on the biggest, baddest crap your company has to offer. It’s hard to do. Like telling a mother her baby is ugly – it’s one thing to think the baby is ugly, but it’s another thing altogether to open up your mouth and acknowledge it face-to-face, especially if you’re the father. (Disclaimer: To be clear, I do not recommend telling your spouse your new baby is ugly. Needless to say, some things MUST be left unsaid.)

It’s not always easy to be around the courageous souls willing to jeopardize their careers for the sake of improvement. And it takes level 5 courage to manage them. But, if you want your company to contract a terminal case of the Improvement Mindset, it’s a price you must pay.

Click this link for information on Mike’s upcoming workshop on Systematic DFMA Deployment

Anytown, Any Country – Imagination died on Friday, May 14, 2010, following a long and courageous battle with continuous improvement.

Imagination was born in a time long ago in a place we no longer recognize. Nurtured by her parents Individualism and Free Thinking, Imagination had a wonderful childhood. As a youngster, she was known to make significant contributions to science and technology. Galileo, a long time friend of Imagination, credited  her with new thinking about our solar system as well as the invention that made it all happen – the astounding telescope. To the end, Galileo’s support of Imagination never wavered, even after his relationship with her led to the incarceration that shortened his career.

Stories like these are commonplace throughout history. Selflessly, Imagination helped many people throughout her life. She took a behind-the-scenes approach to her work, and never sought credit. She was known to be involved with the most important thinking of our generations including: the Round Earth Theory, the Theory of Relativity, the internal combustion engine, the first lunar landing, and Velcro.

In recent years her health declined as the two new thinking systems, lean and Six Sigma, tricked companies into severely constraining their thinking, and, eventually, there was no longer a place for her. Though she battled valiantly, she finally succumbed to their rhetoric.

In lieu of flowers, memorial donations may be made to The Anti-Lean and Six Sigma Foundation.

Click this link for information on Mike’s upcoming workshop on Systematic DFMA Deployment

I’ve heard product cost is designed in; I’ve heard it happens at the early stages of product development; And, I’ve heard, once designed in, cost is difficult get out. I’m sure you’ve heard this before. Nothing new here. But, is it true? Is cost really designed in? Why do I ask? Because we don’t behave like it’s true. Because was it was true, the Design community would be responsible for product costs. And they’re not.

Who gets flogged when the cost of new products are too high? Manufacturing. Who does not? Design. Who gets stuck running cost reduction projects when costs are too high? Manufacturing. Who does not? Design. Who gets the honor of running kaizens when value stream maps don’t have enough value? Manufacturing. Who designs out the value and designs in the cost? Design. (That’s why they’re called Design.) If Design designs it in, why is the cost albatross hung around Manufacturing’s neck?

It sucks to be a manufacturing engineer – all the responsibility to reduce cost without the authority to do it. The manufacturing engineers’ call to arms –

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Reduce cost, but don’t change anything!

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Say that out loud. Reduce the cost, but don’t change anything. How stupid is that? We’ll it’s pretty stupid, but it happens every day. And why constrain the manufacturing engineers like that? Because they don’t have the authority to change the product design – only Design can do that. So you’re saying Manufacturing is responsible for product cost, but they cannot change the very thing that creates all the cost? Yes.

What would life be like if we behaved as if Design was responsible for product cost? To start, Design would present product cost data at new product development gate reviews. Design would hang their heads when product costs were higher than the cost target, and they would be held accountable for redesigning the product and meeting the cost target.  (They would also be given the tools, time, and training to do the work.)

Going forward, Design would understand the elements of product that create the most cost. And how would they know this? First, they would spend some time on the production floor. (I know this is a little passé, but it still works.) Second, they would do Design for Assembly (DFA) in a hands-on, part-by-part, piece-by-piece way. No kidding, they would handle all the parts themselves, assemble them with production tooling, and score the design with DFA. That’s right, Design would do DFA. The D in DFA does not stand for Advanced Manufacturing, Operations, Supplier Quality, Purchasing, or Industrial Engineering. The D stands for Design.

I know your manufacturing engineers are in favor of rightly burdening Design with responsibility for product cost. But, your Lean Leaders should be the loudest advocates. Imagine if your Design organization designed new products with half the parts and half the material cost, and your Lean Leaders reduced value waste from there. Check that, Lean Leaders should not be the loudest advocates. Your stockholders should be.

Click this link for information on Mike’s upcoming workshop on Systematic DFMA Deployment

If I was a country I would care about the well-being of my people.  I would truly care about the health, education, and happiness of my families.  That’s easy to say, but hard to pay for.  How would I fund it?  I would make stuff, lots of stuff.  My rationale – jobs, lots of jobs.  I would create a sustainable economy built on the bedrock of manufacturing.  I’m not talking about designing things, but actually making them, with real factories, real machines, and real people, because as a country, it’s more important to make things than to design them.

The single most important equation for me as a country is

Price – Cost = Profit.

While companies care most about profit, as a country I care most about cost – manufacturing cost. I want to incur the cost of manufacturing within my borders, and for good reason – that’s where jobs and money are.  For a product that sells for $100 with a 20% profit margin, costs ($80) are four times larger than profits ($20).  No big deal you say?  Pretend you are a country and look at the three components of cost from my perspective – labor, materials, and overhead, and then ask yourself if it’s a big deal.

Labor
My people get paid for their time. (For me, as a country, that’s magic.)  They buy food, clothing, and shelter and have a little fun.  In turn, they pay me income tax, which I use to educate my children.

Material
My dirt, rocks, and sticks are used in products and my people get paid to dig, move, mix, and cut. (More magic.)  And the machines to do it all are made by my people. We then make the same trade as above – they buy food, clothes, shelter, they pay me income taxes, and I use the money to pay for healthcare.

Overhead
My dirt, rocks, and sticks are dug and moved to make electricity.  My people get paid, they spend, and I provide services. A good trade for all.

I’m not an economist, and I’m oversimplifying things.  And I know there’s more than a hint of nationalism here.  But, even still, when I pretend to be a country, all this makes sense to me.

If you were a country, what would you do?

Click this link for information on Mike’s upcoming workshop on Systematic DFMA Deployment

Pent up demand is everywhere.  After almost two years of cutting inventories and pushing out purchases, companies are ready to buy. And with credit coming back on line, they’re ready to buy in bulk.  Good news?  No, great news.  We’re back on our growth path. And that’s good because Wall Street now expects growth. But, together this wicked couple of pent up demand and Wall Street’s appetite for immediate growth has created a powder keg that’s ready to blow.

Companies want more new products to satisfy the pent up demand (and Wall Street).  Growth through new products is a theme heard around the globe; there’s a relentless push for more products – early and often. Resources be damned, best practices be damned, we’re going to launch more products. Were going to market and will fix it later. The battle cry – Don’t launch, don’t sell!. However, the real battle cry is more aptly – Ready, fire, aim!  We’re going too fast.

I’m all for productivity, but we’re heading for a cliff, a cliff some have already accelerated off of, albeit in an unintended way.

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We’ve forgotten the golden rule – provide value to customers, or you’re hosed.

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Customers value function, or “what it does”.  Function first. But in this need-for-speed environment that’s just what’s at risk. To reduce time to market, we eliminate tasks (best practices?) in our product development processes. All good unless we eliminate tasks that make the product function as intended.  All good unless we load our engineers so heavily they don’t have time to design in functionality.  We must be careful here.  If you’re first to market and your product doesn’t work, you should have waited.

I believe launching too early is worse than launching too late because a botched launch can damage your brand, the brand you’ve taken years to build. (Click this link to see a post on brand damaging.) As we know, word gets around when your product doesn’t work (or accelerates on its own).

Satisfying the siren of pent up demand can run you into the rocks if you’re not careful.  So block your ears to her song, and take the time to get your products right.

By reducing parts count and easing assembly, one plasma cutter maker explores customized manufacturing.

By Jean Thilmany, Associate Editor, Mechanical Engineering Magazine

Ask nearly any engineer or manufacturer about customized manufacturing and—to a person—they’ll all say the same thing: Have you heard the Dell story?

Dell is offered up again and again as the number one example of customized manufacturing done right and done successfully. Shortly after its founding in 1984, Dell began what it calls a configure-to-order approach to manufacturing. The computer company lets customers customize their own computers on the Dell Web site. Buyers select how much memory and disk space they desire and the resulting computer is manufactured and shipped to them.

The approach has helped the computer maker see skyrocket growth. Last year, it held the second-highest spot for desktops and laptops shipped, behind Hewlett Packard, according to market-share numbers from research firm International Data Corp. in Framingham, Mass.

Manufacturers—particularly electronics manufacturers—have long been taking notice. Many of them are investigating how the configure-to-order model could be put to use at their own companies. And some of them have implemented the method—along with the necessary software to get the job done—with great success.

Take Hypertherm Inc. of Hanover, N.H., maker of plasma metal cutting equipment. The company has recently started allowing customers to choose online from ten CNC Edge Pro product configurations, up from three configurations in the former product line, said John Sobr, head designer on the project.

Hypertherm recently redesigned its plasma metal cutting equipment to reduce part count by 27 percent while doubling the number of inputs available. Customers can now choose from ten product configurations.

Link to full article

Ask a company or team to do DFMA, and you get a great list of excuses on why DFMA is not applicable and won’t work. Product volumes are too low for DFMA, or too high; product costs are too low, or too high; production processes are too simple, or complex; production mix is too low, or too high.  That’s all crap – just excuses to get out of doing the work.  DFMA is applicable; it’s just a question of how to prioritize the work.

To prioritize the work, take a look at product volumes.  They’ll put you in the right ballpark. Here are three categories, low, medium, and high volume:

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Is it patented? Can we patent that? We need a @#!$%& patent and we need it now! You hear that a lot these days. Everyone wants to be part of the new economy, the thinking economy, and patents are the key, right? No.

Patents are the results of something – good, old-fashioned innovation. The big mistake companies make is to focus directly on patents instead of focusing on innovation which can then be patented. Sounds like a subtle difference, but it’s as subtle as the difference between lightning and lightning bug. (Stolen from Mark Twain.)

Patents are the currency of innovation, not the innovation itself, just as our paper money is the currency for wealth, and not the gold reserve itself. We use paper money to stand for the gold, but, implicitly, there’s wealth backing it up. Just as it’s misguided for a country to print money without something to back it up (strong gold reserves), it’s misguided for a company to create patents without something to back them up – innovative technologies, technologies that make a difference to the customer.

Innovation is the gold that backs up patents, the currency of innovation.

Would you rather have lots of paper money and no gold, or lots of gold that allows you to print lots of money? We get this one wrong when we focus on paper patents instead of golden innovation. Why do we mess it up? Because printing money and filing patents are easy, and digging gold and doing innovation are hard. Patents are fast and innovation is slow. Companies want the free lunch, there’s no such thing.

What to do when there are no patents? Do innovation. What to do when there is no time to do innovation? Do innovation. What to do when there is no money to do innovation? Do innovation.  What to do?  Do innovation.

The road to a full portfolio of innovative technologies is a long one, but it’s paved with gold.

There is a groundswell of interest in innovation across the planet. As historians know, the interest in innovation is cyclic, and this year it’s surely in vogue. Everyone wants more of it, even if we don’t know what it is – we want it. And we want it because we want it; it’s an emotional want. Never mind that we don’t know how to do it, damn it, we’re going to do more innovation come hell or high water. Not knowing how to do innovation is an obstacle, but it can be overcome with the right tools, processes and a good training plan. Our people are capable and willing, so there’s no problem there. But there is a show-stopper out there: the innovation edict is incremental work – it’s another thick layer of work slopped onto our already full plates. Even before the innovation edict, we’re doing two or three jobs, we’ve extended the do-more-with-less mantra beyond the ridiculous, and we’re stretched to the breaking point with workloads that defy all tests of reason. How can we be expected to do more?

The truth of the matter is we cannot do more; we’re already diluted beyond all effectiveness. Any more dilution would be like watering down water with more water. It has no meaning. And what makes the innovation edict especially ludicrous is that innovation requires a lot of thinking time, quality thinking time, uninterrupted thinking time. It’s a thinking person’s sport. And not just mortal thinking, it requires novel thinking, thinking we’ve never done before. Do you have time to think with your current workload? I don’t think so.

Thinking? You’re crazy. We don’t have time to think, we need to do innovation!

As we know, managers have extreme difficulty discerning activity from progress, and not many think that thinking is progress. It sure doesn’t look like activity. If you want to aggravate a manager, sit at your desk and think. When they ask you what you’re doing, tell them you’re thinking. Then watch their face turn colors like a New England foliage.

What do we do about it? The answer comes from Jim Collins – create a stop doing list. We must create innovation bandwidth by stopping work on lower priority activities. Stop. Stop. Stop. And don’t just talk about stopping, actually stop doing things. It’s the only way. Of course this is difficult because it requires prioritization. It requires judgment and guts. And feelings will get hurt because some projects will stop. So be it. Actually, I think major disagreement, anger, and long, difficult meetings are objective evidence that activities are actually stopping. No anger, no difficult meetings, no freed up innovation bandwidth. Do you want to do innovation or just talk about doing innovation?

There’s no free lunch with innovation. Innovation requires our most precious resource – our time.