Eliminating Waste?

I've been thinking about lean operations, a lot, lately. What makes them lean is that they eliminate waste, i.e., any activity that does not add value. Generally credited to Toyota, the main sources of waste are typically:

1. waiting
2. defects
3. inventory
4. overproduction
   
5. unnecessary transport
6. unnecessary human motion
   
7. unnecessary processing.

As I explain in my forthcoming book, McGraw-Hill 36-Hour Course in Operations Management, "In examining a lean transformation system, activities are considered value-added (e.g., patient diagnosis); non-value-added but necessary (e.g., requiring patients to sign a HIPAA form); or non-value-added and not necessary (e.g., waiting for the doctor)."

Lean concepts are applied to a wide variety of operations, and can certainly apply to personal effectiveness. I recently learned of an application than I thought might have gone too far.

According to American Public Media's radio show, "Marketplace," Ireland-based "Ryanair, a budget carrier... is considering a plan to charge for use of its lavatories on short flights." Unnecessary... processing? According to the report, the airline wants to modify passengers' behavior on short flights. I can only imagine. I suppose an infrequently used toilet requires less service? Ultimately, if they are able to reduce the number of lavatories needed on each plane, they can add more revenue-producing seats.

But really, is it in the spirit of lean operations that they are eliminating... eliminating waste?

A Systems View of Vacation

I know I have committed a venial sin, not blogging for a month. Well, I have been on vacation, and did think about the blog...

Something I stress in my teaching is the need to take a systems view of an organization, i.e., don't just optimize your job or department, but understand how your domain fits into the overall organization, and work from that perspective. Establish feedback loops to monitor performance. The idea is to understand the interrelationships and the environment (i.e., the things outside the system over which you have no control, but the performance of your system is affected by these things).

For a typical business organization, the environment includes the competition, as well as political, economic, social, ecological, and legal considerations. Arguably, customers and suppliers are part of the extended organization, in its value chain. The value chain, in simple terms, is the set of links that transform inputs into outputs by adding value. Transformation occurs through alteration, transportation, inspection, and storage.

So, while I was on vacation (cruising the Inner Passage in Alaska -- thanks, Mom!), I thought about how a vacation transforms you. Or at least you hope that it does.

In my case, the inputs were a stressed-out me, baggage, the cruise facilities and staff, and cash. The outputs were a recharged me, luggage, souvenirs, photographs, memories, and referrals (it was a fabulous trip). The ways in which the cruise company transformed me:

ALTER: showed me new sights, provided new experiences, prepared food, pampered me
TRANSPORT: took me round trip from Seattle very comfortably
INSPECT: assured my security by issuing cruise cards and requiring passengers to scan them to get off/on the ship
STORE: provided a lovely stateroom for my person, stocked the kitchen with ingredients

The cruise line had a good operational system, including feedback loops to ensure that the passengers were pleased with the services. However, the system was also a good illustration of the Theory of Constraints.

But that's a blog for another day.