By Xavier Perrin (xperrin@xp-consulting.fr) Working capital represents the difference between a firm’s current assets and current liabilities. This financial definition isn't really useful for operations' managers. However, managing working capital is of foremost importance for companies, as when Working Capital Needs (WCN) increase, cash flow is reduced, and the need of short-term debt increases. A […]
By Xavier Perrin (xperrin@xp-consulting.fr) "Go See, Ask Why, Show Respect". The words of former Toyota Chairman Fujio Cho, as reported by John Shook in one of his insightful letters on the Lean Enterprise Institute website, sum up very well the principle of "going to the gemba". Gemba means "the real place", the only place where […]
By Xavier Perrin (xperrin@xp-consulting.fr) The sanitary and economic crisis we are living for several months have tremendous effects on supply chains worldwide: disruptions in supply, insolvencies, stockouts of strategic supplies (protective masks, respirators, hydroalcoholic gel, etc.). Entire sectors of economy are jeopardized and will probably never recover the conditions prior the crisis, as in the […]
By Xavier Perrin (xperrin@xp-consulting.fr) When I am working with High-Mix / Low-Volume (HM/LV) manufacturing companies for helping them to improve their dependability, reduce their lead times, and reduce their working capital need, a frequent misunderstanding comes from executives about pulling production from customer demand. As they produce only what their customers are ordering, they believe […]
By Xavier Perrin (xperrin@xp-consulting.fr) I often read posts on professional social networks which recall us that "Client is King" or "Client is the Boss". Most of the comments describe situations where it was missed to serve the client as a king, which is considered as a scandal. I'm always very annoyed by such messages. Indeed, […]
By Xavier Perrin (xperrin@xp-consulting.fr) Many articles, mostly related to lean principles, insist on "respecting people" as a necessary behavior of managers and leaders. This is often highlighted by quoting Toyota's leaders, like former president Fujio Cho and is famous slogan "Go see, ask why, show respect". Showing respect sounds obvious for most of leaders, especially […]
By Xavier Perrin (xperrin@xp-consulting.fr) Different mnemonics are used to help people remembering the 8 muda. Recently, I discovered a video using the acronym DOWN TIME for Defects, Overproduction, Waiting, Not utilizing talent, Transportation, Inventory excess, Motion, and Excess processing. TIMWOOD is another tip for recalling the 7 wastes of Toyota: Transportation, Inventory, Motion, Waiting, Overproduction, […]
By Xavier Perrin (xperrin@xp-consulting.fr) In a recent issue of the newsletter of the French Supply Chain Magazine (#2600 ; 20/11/2017), I found an interesting topic for illustrating the principle of muri. Muda is a well-known concept of lean, which is translated by "non-value-added activity". Lean thinkers also learn to identify mura and muri. Mura means […]
By Xavier Perrin (xperrin@xp-consulting.fr) For some time, articles and posts about Lean 4.0 are spreading over magazines, blogs and social networks. This idea – Lean 4.0 – is related to the concept of Industry 4.0, whose promoters explain that the emergence of new advanced technologies like 3D printing, robots, big data, and other digital applications, […]
By Xavier Perrin (xperrin@xp-consulting.fr) The following story makes us understand the deep meaning of the "kaizen spirit". This text has been written by Nampachi Hayashi when he was 70. Hayashi holds the post of senior technical executive, which is said to be the highest technical post at Toyota Motor Corporation TMC). Since being assigned to […]