Favorite Sport

As I explained in my post titled “Where is your favorite place to innovate?”, my favorite sport has become racquetball because of the way I can “zone” and and think while playing it. I wanted to know what other sports you use to relax, network, or just have fun with.

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How “The Goal” Changed My Perspective on Process

Having come from a non-business background, I didn’t have much exposure to operations or process before joining my current job. We recently read “The Goal” by Eliyahu M. Goldratt for a book club at work and it changed my perspective on looking at processes, especially bottlenecks.

I first noticed the change that reading this book had on me on Election Day. I stood in line for 1.5 hours and when I finally got to the entrance of the voting room (a cafeteria since we were in an elementary school), I realized what the problem was. The poll volunteers only allowed three people to enter the voting room at a time. This was problem number one since more than three people were entering the voting station per minute, so of course the line to vote was going to increase or in Goldratt’s terms, the inventory would build up behind the bottleneck. Once we were allowed to enter the cafeteria, we stood in line behind the sign-in table. There were three lines for this with about three people lined up in each one. I managed to choose the line with only one person ahead of me. After signing-in, I was brought to the actual voting booth. There must’ve been about 10 booths and only 3-4 were being utilized. This immediately made me realize the bottleneck was the sign-in table. The guy at the door was not in fact the bottleneck, he was just maintaining the flow of people to the sign-in table. Although this is a retrospective look at the voting process, the polling place could have increased throughput by adding a few more people to the sign-in table, allowing full utilization of the voting booths. Of course the sign-in process could have had it’s own improvements and probably would’ve needed some once the flow increased, but that is why “The Goal” has the full title of “The Goal: A Process of Ongoing Improvement.” As I read in the book, even if you make an improvement to one part of a process, other parts of the process will need to be improved as well. As my manager put it, you may even see a “balloon” effect throughout the process where, as in a balloon, if one part is squeezed, another part in the process/balloon will expand. When I brought my voting experience up in our next book club meeting, others shared my same thoughts. They had also recognized the bottlenecks in the process, though some of these bottlenecks varied from voting station to voting station.  One approach someone suggested was having poll volunteers walking through the line, signing voters in as they stood in line. Voting was definitely an eye-opening experience as to the applicability of Goldratt’s “Theory of Constraints.” Maybe some of the poll operators will read “The Goal” before the next Presidential election (when the most people actually vote) and streamline the process.

After reading “The Goal,” I have even started looking at the work I do differently. I tend to see my work now in terms of processes and bottlenecks. As I explained in a previous post, my team has started operating by using agile. The number of “stories” we have each sprint is essentially our Work-In-Progress (WIP) which can easily be translated into how much work is currently on a manufacturing plant floor, waiting to be finished and shipped. In “The Goal,” one of the ways Alex, the main character, improves the throughput of his plant is by reducing the WIP so that inventories aren’t building up for parts that aren’t going to be used immediately on widgets going out the door. This ultimately had the effect of increasing throughput and improving the cycle times for widgets. I see the same impact on throughput in the way we are using agile on our team.  Although our team is still adjusting to the way agile works, the whole point of using agile is to decrease the WIP while increasing throughput due to a focus on completing project components on a regular cadence. Our inventory, the amount of WIP that has yet to be touched, has decreased. Even though we have a backlog of stories to complete, they are not our focus during any particular sprint, so we therefore wouldn’t consider them analogous to our inventory. Just like in Alex’s plant, bottlenecks also start springing up in our WIP. When a customer or someone else we need to meet with in order to complete a story is on vacation or is sick, the inventory in our WIP builds up and we may not be able to deliver a final product by the end of the sprint, analogous to Alex not being able to ship a finished product from his plant on the planned deadline.

More and more I see the relevance of this book in my life. Although it was published over 25 years ago, I can see why for many business schools it is still required reading. The business landscape may have changed in terms of manufacturing plants, but the concepts in this book are still relevant to business.

Where is your favorite place to innovate?

Personally, I think of new ideas best when I am playing racquetball by myself. The monotone process of hitting the ball back and forth against myself drives me into a trance-like state where my mind starts wandering and I think of new ideas.  Because I know how to play racquetball now, my mind no longer needs to focus on how to hit the ball, so it’s free to think of other things.

I have heard that the same sort of effect works in many situations. One guy takes a walk every evening following the same path so that his mind doesn’t have to think about where he’s going and is free to wander. One of the more common methods is keeping a journal by your bed so that when you have trouble falling asleep because you’re thinking about a particular idea, you can write it down for the next day. The latter is one I should be adopting since anything I think of while falling asleep is quickly forgotten the next day.

What methods do you use?

Update: I just ran into this Lifehacker article that referenced a “The Oatmeal” article. My favorite quote from this article:

Inspiration is more like food poisoning: it sprays out uncontrollably when you need it the least.

Here’s the comic that the article references:

Line of Business vs. Business Segment

At my job, we sometimes mix definitions when referring to Line of Business (LOB) versus Business Segment, so I wanted to get some clarity on the difference between the two.

Business Segment

Typically also referred to as a business unit, a business segment is generally a major division in a large corporation. For example, General Electric has GE Energy, GE Capital, GE Healthcare, etc. These units often act like their own businesses complete with their own presidents, vice presidents, etc. Their revenue is also usually reported individually in the Income Statement. Below is an example of what a company with business segments might look like.

 

Line of Business

Unlike a business segment, where an entire corporate structure is necessary, a LOB is small classification of products  that might reside in a business segment.  Wikipedia describes LOB as:

Line of business (LOB) is a general term which often refers to a set of one or more highly related products which service a particular customer transaction or business need.

 

Going forward, I definitely need to keep these two separate since they are not the same things.

 

Poor Packaging: TGI Friday’s

 

If I hadn’t circled the instructions to “Keep Frozen,” would you have spotted it? Probably not. It took me about 30 seconds to finally find the crucial directions on this box. When you’re a consumer, the first thing you need to know once you’ve unloaded the car is where to put the food. It seems kind of obvious that it would go in the freezer and not the pantry, but what about the refrigerator? They should not have put black text over a repeating pattern of red and white, but especially not when it is probably one of the first thing a consumer looks for.