In my posting today, we are
privileged to have Bruce Nelson writing for us.
In this posting Bruce discusses the concept of change….and maybe more
correctly, necessary change.
Is Change Really
Necessary?
Bruce
Nelson
I guess the honest answer to that question
is: “it depends.” It depends if the
change you are making is really necessary, or are you just changing things
because you can? It depends if the
change is associated with a systems constraint, or is the change a
non-constraint?
Let’s talk about “unnecessary change”
first. Sometimes change just for the
sake of change can have destructive outcomes no matter how good the intentions
are. Unnecessary change is most commonly
associated with organizations that are working in isolation of each other with
no real “focus” on the overall goal of the company. Each individual organization has determined
some pre-defined goal(s) that they want to accomplish and they set out to do
so. Sometimes they do this without any
real understanding of the overall systems affects that the proposed change
might have on another organization. As
an example, suppose a sales organization wants to increase sales without a
concrete understanding of the internal capacity of the manufacturing
organization. More sales without the
necessary capacity will be very destructive to the manufacturing organization. There will be increased late orders, longer
lead times and unhappy customers. So, an
improvement in one organization can have a very destructive effect on another
organization. What started out with good
intentions quickly became a big problem for the entire company.
Now let’s talk about necessary change. Any change that can move the company closer
to its overall goal (make money) is probably a very good change to make. Any recommended changes brought forward can
be evaluated with a quick and effective litmus test. Ask yourself, “If I make this change will
throughput (T) go up?” You can also ask
“Will operating expense (OE) stay the same, or go down?” Or, “Will inventory/investment stay the same
or go down?” If the answer to any of
these questions is “NO”, then it is probably not a good or necessary change
make and should be shelved until another time.
However, making necessary changes does
require some accurate information. First,
you must know where the systems constraint currently resides. Second, is accurate (probable) information
about where the constraint will move next?
If the system constraint limits the system output, then any improvement
of the constraint will improve throughput through the system. The first litmus test has been passed! If you spend your time and resources
“focused” on anything except the constraint, you will miss the opportunity for
maximum “leverage.”
If you also have a good idea where the
constraint will move next, then the necessary planning can be undertaken to
deal with the next constraint. This
sequence of finding and fixing is exactly the same as the “Piping Diagram” that
has been referred to so many times on this blog. Find and fix the first constraint and move to
the next one. This sequence allows you
to make the necessary improvement because you “must” and not just because you
“can.”
I want to thank Bruce for writing this thought provoking piece. In our next posting Bruce will write a follow-up segment on change buy-in.
Bob Sproull
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