Thought

Points for Leadership (Updated) Part X

Points for Leadership (Updated) Part X

'Eliminate slogans, exhortations, and target for the workforce asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships... as the bulk of the causes of low quality and low productivity belong to the system owners and thus lie beyond the power of the workforce.'
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Points for Leadership (Updated) Part IV

Points for Leadership (Updated) Part IV

'End the practice of awarding business on the basis of price tag. Without adequate measure of quality and service, business drifts to the lowest bidder... low quality and high total cost being the inevitable result. Instead, minimize total cost!' Translate this 'minimize cost' to 'optimum batch size' ... see below. When automation is used, the transaction cost is lower; when batch size is smaller, the transaction cost is lower. Total cost on both instances is minimized. The holding cost remains steady.
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