The Illusion of Business “Logic” – Brilliant at Home, Illogical at Work
In this episode, you’ll be able to take away why many “logical” workplace measures and incentives can drive behavior that conflicts with Lean principles, and why comparing work decisions to everyday home-life decisions can make Lean concepts easier to understand and teach.
You will hear about various examples, including grocery shopping and volume discounts, which highlight purchase price variance and excess inventory. You will explore the concepts of push versus pull using the supermarket and kanban approach. You’ll gain insights into utilization and overall equipment effectiveness (OEE) and understand how “banking” uptime can lead to overproduction and unmet demand.
Additionally, you will investigate changeover strategies using a multi-part thermoforming case, illustrated through a barbecue analogy comparing hot dogs and hamburgers. Finally, you will discover why oil leaks and poor visual management are perceived differently in the workplace compared to a car context, including the use of dashboards, warning lights, signs, and scoreboards.
Timestamps:
- 01:31 Lean Accounting Origins
- 04:20 Buying in Bulk Trap
- 06:31 Pull Systems Grocery Lesson
- 08:05 Utilization Incentives Myth
- 11:27 Absorption Accounting Reality
- 12:44 Changeover Barbecue Analogy
- 17:52 SMED Rethink Changeovers
- 18:40 Fix Leaks Like Cars
- 21:38 Visual Management Everywhere
- 25:16 Bring Lean Home and Work