The Right Metrics For Ergonomics: Industrial Engineer

Industrial Engineer
Engineering and management systems at work
THE RIGHT
METRICS FOR
ERGONOMICS
Choosi g what to measure

whe a ake all the
differe ce for your e terprise
How lean Six Sigma

improves military logistics
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Table of Contents
March 2016 | Volume 48 | Number 3 | www.iienet.org/IEmagazine
Cover Story
Features
28
28 | Measuring what ails your workforce

Ergonomics programs are effective when you choose
the right metrics
By Jack Kester
33 | Winning battles with lean Six Sigma

Combining methodology with strategy, operations
and technology improves military logistics capability
By Chris Hook
38 | Affordabilitys triple aim
the Front line
Advancing your organizations performance involves

targeting value, customer and cost
By Paul Odomirok
44 | Increase performance by 20 percent

Goal-setting and feedback process works
in manufacturing
33
By Timothy Stansfeld and Josh Manuel
perspectives
18 | Performance
Some unintended messages shouldnt be sent
Value
customer
38
20 | Management
Gauging your spirit of entrepreneurship
22 | Health Systems
Hoshin kanri for a professional society?
24 | Innovation
44
UN sets sights on sustainable industry and energy
26 | Member Forum
cost
12 | Mixed generations on the job

13 | Miss your incandescent lights?
13 | Falling down at work
14 | Workplace injuries add up
14 | Leveraging your enterprise's alumni
15 | Your perfect future is possible
15 | Bringing the virtual class to life
16 | Queensland offers energy effciency toolkit
16 | Robotics for agriculture
the institute
58 | New name for an evolving era
59 | ISEs and Disneyland: A perfect ft
60 | SHS has new president-elect, board directors
60 | Journey to the Far East
61 | In ergonomics, experience counts
62 | The saving grace of a true network
63 | UPS likes fruits of its generosity
63 | Abstract deadline nears
Out-of-the-box supply chain packaging
60
12
4
Industrial Engineer | www.iienet.org/IEmagazine
in every issue
6 | Editors Desk
10 | Trending at IIE
50 | Case Study
52 | Research
56 | Tools & Technologies
64 | Careers
66 | Final Five
March 2016 | Industrial Engineer
editors desk
Measuring the reality

of ergonomics
To reach me,
email mhughes@iienet.org
or call (770) 349-1110.
Ergonomics, like many IE concepts, has become more mainstream in

the past few years. Every media outlet seems to have a story on standing desks or adjustable workstations. Numerous material handling
products tout their safety as well as effciency. Some workplaces highlight their ergonomics programs to lure high-performing employees.
But plenty of room for improvement remains. As youll see on
Pages 13 and 14 in The Front Line, U.S. businesses are losing more
than $1 billion a day from workplace injuries, and fatalities from falls,
slips and trips increased 10 percent from 724 in 2013 to 793 in 2014.
Perhaps, suggests Jack Kester, theyre just not measuring reality the
right way.
It seems simple, right? The enterprise starts an ergonomics program and workplace injuries and OSHA recordable incidents decline,
while healthy employees become more productive.
But it doesnt always work that way, Kester writes in The Right
Metrics for Ergonomics, which starts on Page 28. Often, knowledge
of ergonomics brings problems to light. That nagging back or carpal
tunnel syndrome that workers thought they just had to live with?
Well, we can fx that, but uncovering the issue might lead to increases in workers compensation claims. Management might decide
the ergo process is causing more woes than its worth.
While injuries are valid long-term metrics, Kester points out a
number of better short-term metrics that management should use to
keep its nascent ergonomics program on track. In classic industrial
engineering parlance, choosing the right thing to measure when is
the key to fguring out and then fxing what ails your workers.
The March issue of the mag has plenty more ergonomics where
that comes from. The Front Line (Page 12) discusses how the aging
workforce will have ergonomists working on organizational dynamics. Tools & Technologies (Page 56) examines a program that can
help you review and promote healthier lifting techniques. And The
Institute has a Volunteer Snapshot with Tim McGlothlin, who has
been a driving force behind the Applied Ergonomics Conference.
Visit the conference (www.appliedergoco fere ce.org) for plenty of 3-D
activities in safety, applied research and the world-famous Ergo Cup
competition. Turn the pages to learn about ergonomics in our traditional, 2-D magazine format.
Plan Your 2016 Training

Spend your professional development dollars wisely! Apply new knowledge to your work
immediately with hands-on practice, tools and ongoing support from IIE Training. Expert
instructors will help you understand new concepts and specific applications for your job.
Process Improvement Courses
Ergonomics and Healthcare Courses
Six Sigma Green Belt
Lean Six Sigma Green Belt for Healthcare
March 21-24 | Orlando, FL
April 18-22 | Birmingham, AL
April 26-28 | Norcross, GA
Principles of Occupational Ergonomics
July 12-14 | Norcross, GA
March 29-31 | Norcross, GA
Lean Black Belt
Lean Black Belt for Healthcare
April 11-14 (Session 1) | Norcross, GA
April 11-14 (Session 1) | Norcross, GA
May 2-5 (Session 2) | Norcross, GA
May 2-5 (Session 2) | Norcross, GA
Lean Green Belt
Lean Green Belt for Healthcare

April 18-22 | Birmingham, AL
Management and Specialty Courses

Six Sigma Green Belt for Healthcare
Introduction to Industrial Engineering

June 6-8 | Norcross, GA

Project Management Fundamentals

Intro to IE in Healthcare
Introduction to Engineering Analytics

Healthcare Labor Management

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Financial Management for Engineers

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Register at www.IIETrainingCenter.org.
Industrial Engineer
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(ISSN 1542-894X) is published monthly. Copyright 2016 Institute of Industrial Engineers. Established 1969. Subscriptions for members included in annual dues, not deductible. Single copy $17.50. USA
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Trending @iie
The results are in from the IIE name change vote, and the membership has decided that the Institute
of Industrial Engineers will become the Institute of Industrial and Systems Engineers. The change will
be offcial in April, but members of the LinkedIn group are already sharing their thoughts. Facebook
group members weighed in on the most important qualities for industrial engineers to have based on
the December 2015 update of the Occupational Outlook Handbook.
LinkedIn posts
Brady Beckham
Owner/industrial engineer, REAL Systems
IIE is becoming IISE

I think this was [a] very good change, and it reflects the progress that has occurred for the profession of industrial engineering.
Leonidas Guadalupe
Continuous improvement consultant
This is a great change in an effort to showcase the evolution

of the profession.
Luis Mercado
Materials program manager, Cree
A much better name for the organization.

I recall the extensive discussion on the matter last year. Opinions at the time appeared to be fairly evenly divided. Let us
hope that the implementation date does not yet prove to be
prophetic!
John Wigley
Owner, Nightingale Management Services
This is a positive change and in alignment with the current

trends in our profession.
Arvind Shrikant Tripathi
Director/MBB LSS, Flowserve
I like it. One of the biggest challenges in our feld is that no

one seems to know what we do; this is a small semantic change
that helps to narrow that gap.
10
Diane Powers
Project engineer, Abbott
Years ago I started off as an industrial engineer and through

many additional classes naturally progressed to being a lead
systems engineer. The organizational and leadership skill sets
with the overall technical management of both makes the
change to IISE logical and benefcial.
Dirk Nelson
Program director, Business Navigators
And the pendulum swings once again! Im old enough to

have seen this go back and forth and back and forth
John Cesarone
Senior lecturer, Illinois Institute of Technology
Facebook posts
I a uary, IIE Membership Admi istrator Elai e Schwartz posted
a tem about the rece tly updated U.S. Departme t of Labor Occupational Outlook Handbook, which cited that the most importa t
qualities of IEs are critical thi ki g, liste i g, math, problem-solvi g,
speaki g a d writi g skills, as well as creativity. What skills would
you add to the list?
Correction
In the February cover story Unconstraining a Doctors Offce, the colors in the Figure 1 diagram on Page 30 are incorrect compared to the text in the article. The colors in the
second and third columns should have been yellow and red,
respectively. The scheduling buffers frst day is the red region,
the second day (tomorrow) is the yellow region and the third
day (day after tomorrow) is the green region.
Stella Marie Sasing-Mahakian: Systems thinker and integrator

Ernesto Vizcarra: Project management
Rico Andreano Fahreza: Lean thinker
Narayana Rao Kvss: Engineering knowledge is the primary requirement. Industrial engineers have to keep updating their engineering knowledge to improve the products
and processes.
Lean thinking is industrial engineering only with new emphasis on reduction of inventory.
Pablo Grosskelwing: Detail on voice of client criteria
Share and discuss

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networking to get into the conversation.
Help Future IEs Make

a Donation to the IIE
Scholarship Fund
The IIE Scholarship Fund recognizes industrial
and systems engineering students academic
excellence and campus leadership. Last year,
IIE awarded more than $50,000 in scholarships.
Paola Guiterrez received the UPS Scholarship for
Minority Students for the 2015-16 school year,
which recognized her work increasing awareness
of IE career opportunites through her IIE student
chapter, her internships in the eld and her study
abroad work.
Why did Paola

become an industrial
engineering major?
My favorite part about industrial engineering is
the practicality and versatility of the discipline.
Everything in life is a process and
industrial engineering gives you the
skills and understanding to quantify
and model these processes to improve
them and make them more efficient.
Going to class every day and knowing
youre gaining tangible tools to go out
and make a difference, whether its out in a
Paola is just one of the deserving students that IIE

is able to support with donatons from members
like you. Visit www.iienet.org/PlannedGiving to
make a donaton today.
manufacturing plant or a hospital floor, makes

learning a much more rewarding experience.
11
The front line
News from the feld
Mixed generations on the job

Aging workforce means ergonomists now must tackle organizational dynamics
As the U.S. workforce ages, teamwork
and organizational dynamics are going
to be just as important as ergonomically
accommodating physical needs.
Already, one in fve American workers is older than 65, according to the
National Institute for Occupational
Safety and Health. The same thing is
happening in other Western countries
like Germany, where 35 percent of its
production employees will be in the 55to-65 age bracket by 2021, according to
Assembly magazine.
Diana Schwerha, an associate professor of industrial and systems engineering at Ohio University, said ergonomists
have been looking at how different age
cohorts blend in the workforce because
each generation brings different values
to the offce.
These days, younger people could
be working with, and even managing,
someone who could be their parent.
And many people retire and take up second careers in other sectors, so theyre
on the same learning curve as their
younger colleagues.
So that could cause some team dynamics between individuals who think
I dont turn anything in until Ive
proofread it three times versus the I just
want to get kind of a skeleton paper out
there and someone else will check it or
clean it up.
But lean tools can bring age-diverse
teams together, creating more cohesiveness. One of Schwerhas students, Kierra
Westmoreland, used her masters degree thesis to examine how lean training games affected different age cohorts.
12
Younger people perceived that

they did better on lean games that
were considered routine, ones
that didnt require creativity or
extensive past knowledge.
Older people perceived that
they did better on complex activities that required creativity or
previous knowledge.
Lean projects are, by default,
team projects. Some exercises will be more intuitive for
younger people, others more
intuitive for older people. Westmorelands research was a proof
of concept asking if lean tools
help teamwork in age-diverse Diana Schwerha of Ohio University said it will
groups. The answer was yes all be interesting to see how cohorts of different
age cohorts benefted from lean ages work together as the workforce gets older.
training games that promoted
discussion and communication so that
When it comes to the purely physical
the employees could align their goals aspects of aging, ergonomists are welland methods to achieve them.
equipped.
Corporate ergonomists also can deBut some research has shown that
velop age awareness training programs. leaning out processes and creating too
BMW did one that led AARP Interna- much repetition could make the ergotional to name the German carmaker nomics worse for that older person.
one of the best employers of people older
That, in Schwerhas opinion, is not
than 50. Such programs make the work- what lean should be. But ergonomists
force aware of normal aging changes and can look at strength requirements, fahow to improve the environment.
tigue issues and auditory and visual deErgonomists also can get people of mands because those things change with
different age groups together to think age.
through a project and the alternatives.
In addition, the issue of the sedentary
I dont have to necessarily scream, workplace is everywhere with sitHey, this is a better design for an older stand workstations a hot topic for several
person, Schwerha said. Its just like, years. But Schwerha cautioned that older
Hey, heres my user group, and these are workers tend to lose lower extremity
our abilities, and lets make sure we con- strength frst, resulting in hip, knee or
sider all of them.
back pain.
And standing all day isnt always

good for that, she said. We used to
think the opposite, like the pharmacist
who stood all day, he or she was the one
whod tend to get back and knee and hip
pain. Now its sort of like, Oh, people
are sitting too much, so get them up
and get them standing. But if an older
person already has hip and knee pain, I
dont think I want them standing all day

because that may exacerbate things.
Research always is changing and
advancing, and Schwerha said that different solutions could work for different age cohorts, with some benefting
younger people on the job and others
more appropriate for older employees.
Theres always going to be research
on whats the worst: repetition, force,

posture and the interaction between the
three, Schwerha said.
I think ergonomists are always going
to be working on trying to drill down
in those areas to understand whats the
best combination or worst combination.
But I think ergonomists are pretty good
at looking at their user groups by now.
Miss your incandescent lights?

MIT researchers might have an answer to those forlorn homeowners who miss the instant, bright warm glow of incandescent light bulbs.
Surrounding the flament with a special crystal structure in
the glass bounces back the energy lost in heat. The energy that
normally escapes returns to the flament where it creates new
light, The Telegraph of London reported.
Traditional light bulbs are about 5 fve percent effcient,
with LED and forescent bulbs coming in at 14 percent effciency. But the new bulb, which is at the proof of concept
stage, could achieve effciency levels of 40 percent.
The colors displayed are more natural than modern energyeffcient bulbs, which at their best have a color rendering index rating of 80. In addition, some researchers have warned
that their blue light affects melatonin levels, preventing people
from sleeping at night. Traditional incandescent bulbs rate 100
because they match the hue of objects seen in natural daylight,
the newspaper reported.
That is precisely the reason why incandescent lights re-
Photo courtesy MIT
Surrounding flament increases venerable bulbs effciency to 40 percent
In a technique they call recycling light, MIT researchers

have created an incandescent light bulb that could be 40
percent efficient, compared to the 14 percent found in most
energy-efficient bulbs.
mained dominant for so long: their warm light has remained

preferable to drab fuorescent lighting for decades, said principal research scientist Ivan Celanovic.
Prime Number
Falling down at work
Falls are among the most common causes of serious work-related
injuries and deaths. OSHA recently announced the preliminary
top 10 most frequently cited workplace safety violations for
fscal year 2015 and fall protection ranks as its top violation with
6,721 citations for the year. According to the Bureau of Labor
Statistics, fatalities from falls, slips and trips increased 10 percent
to 793 in 2014 from 724 in 2013. Transportation and material
moving occupations accounted for the largest share (28 percent)
of fatal occupational injuries of any occupation group.
13
the
thefront
frontline
line
Workplace injuries add up

Liberty Mutual index says U.S. business loses nearly $62 billion
U.S. businesses spend more than a billion dollars a week on disabling workplace injuries, according to the 2016 Liberty Mutual
Workplace Safety Index. The index annually ranks the top 10 causes of serious, nonfatal workplace injuries and their direct
costs.
Reprinted with permission of Liberty Mutual Research Institute for Safety, 2016
Leveraging your enterprise's alumni

When employees quit jobs, the knee-jerk reaction may be to blame a
bad boss. But a University of Illinois business professor shows that workers also leave good bosses, and companies can use that to their strategic
advantage.
Ravi S. Gajendran found that an organizations alumni, provided
they leave on good terms, can be a source of future business or information. Boundaryless LMX: Examining LMXs Impact on External
Career Outcomes and Alumni Goodwill, which will appear in Perso el
Psychology, found that good bosses invest in their workers, which means
the employees are more attractive in the workplace.
So while employees leave good bosses and bad bosses, employers
shouldnt be bitter. Instead, Gajendran said, they should pay more attention to the off-boarding process, just like they do to the on-boarding
process. Some companies are even creating social networks and events
for ex-employees to keep in touch.
The papers fndings are apt in industries with high-velocity and tight
labor markets.
Our paper shows that even employees who are leaving can be valuable somewhere down the line, Gajendran said.
14
Photo courtesy University of Illinois College of Business
Good boss? Bad boss? Study says workers leave both
Ravi S. Gajendran said companies can leverage

former employees for future business or information
provided the workers leave on good terms.
Your perfect future is possible
Book
Howenstine applies IE techniques to the self-help genre

What would happen if an accomplished industrial engineer
and corporate executive applied hoshin kanri to the self-help
book sector?
Well, you wind up with Perfectly Possible by Rona Howenstine. Howenstine uses IE tools to drill down to the key elements to consider at every stage of your life from insecure
high school student to questioning executive. Ever the IE,
Rowenstine ends each of her 11 chapters with two lists: key
takeaways and insight questions.
Howenstine admittedly is a self-help book junkie.
Throughout her life, such books have led her to scholarships
and jobs, while giving her ways to deal with perfectionism,
get organized, build relationships, handle motherhood, make
it through divorce and write a successful Ph.D. dissertation in
industrial engineering for the University of Pittsburgh.
The longtime IIE members goal with Perfectly Possible is
to provide people with the same kind of art of the possible
thinking that she received many times in her life like when
of the
Month
she made the diffcult decision to leave a 17-year career

at Rolls-Royce, where she
became global head of improvement for defense.
The move worked out
Howenstine now is vice
president operational excellence and claims for OneAmerica Financial Partners Inc.
So sometimes, Chapter 10,
Realizing When Change
Is in Order, will be applicable. Whereas millennials starting their careers will fnd good advice in the fourth chapter,
Proving Your Worth.
Perfectly Possible: Def i g Your Path to Success whe he
Odds Are Not i our Favor is available from Tate Publishing
($13.99).
Bringing the virtual class to life

Penn State to examine effectiveness for distance learning in engineering courses
As higher education increases online
course options, one fundamental problem remains: the lack of real-time, immersive interactions during classroom
instruction. A team led by Penn States
Conrad Tucker aims to change that by
combining three-dimensional scanning of an engineering classroom with
an Oculus Rift device ftted with Leap
Motion technology.
Students will be able to use their
hands to rotate, explore and dissect a
virtual model the same way a traditional
student would explore a physical object
or prototype with his or her hands, said
Tucker, an assistant professor of engineering design and industrial engineering.
The 3-D mesh of the room will let
students learning from a distance experience the furniture, computers,
whiteboards and anything else in the
classroom. For intangible classroom in-
Conrad Tucker grabs a virtual building block that exhibits similar physical real-world
properties such as gravity, color, rigidity, etc.
teractions, which involve communicating concepts and ideas, students will use
the virtual reality environment to create and augment how those concepts are
communicated, Tucker said.
Researchers plan to compare the ef-
fectiveness of each setting by testing

students who were present in engineering design, industrial engineering and
architectural engineering courses with
students who learned the concepts from
a distance.
15
the
thefront
frontline
line
site to see
Queensland offers energy effciency toolkit

Free, online package has engineering lecturers, students in mind
Queensland University of Technology has launched a free and courseready virtual classroom designed for engineering lecturers and their students.
The cloud-based Energy Effciency Education Resources for Engineering was developed by a national team led by Queenslands Cheryl
Desha, with involvement from the schools science and engineering
faculty and educators from the University of Adelaide, University of
Wollongong, Victoria University and the Royal Melbourne Institute of
Technology, according to the Australian news site Engineers Australia.
The available tools equip engineering students with ways to conduct
energy effciency assessments and improve energy performance across
major sectors of the Australian economy.
The package, available at bit.ly/1Sge4Cq, includes 10 videos, lecture
and tutorial notes, two deep-dive case studies and a virtual experience
3-D model through a commercial building.
The resources can be spliced into existing lecture material, while the virtual reality components let students navigate
worksites and conduct energy effciency assessments from their home, offce or classroom.
Quote, unquote
Robotics for agriculture
Driverless tractors are in the early stages of commercialization, and up to this point have
been in the prototype stage. With that said, we expect that the next few years will be a time
of signifcant growth for this category, with approximately 500 unit shipments in 2016
marking the beginning of true commercialization about 1,600 units in 2017, and more
than 4,100 in 2018.
Clint Wheelock, Tractica managing director, quoted Jan. 21 on the EnterpriseTech website about a
report on how robotics is leading to driverless tractors, drone crop dusters and automated milking
Dilbert
16
2015 Scott Adams. Used by permission of UNIVERSAL UCLICK. All rights reserved.
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Register now. Early-bird savings end April 8.
www.iienet.org/Annual
17
performance
Some unintended messages shouldnt be sent
Three of my favorite people recently

received the same less than desirable
holiday gift from their employers
unexpected early retirement. In all three
cases, the changes were made in the
spirit of cost savings and improved future
performance for their organizations. But
all three cases sent unintended messages
across the workplace, as dedicated people were told that their services were no
longer needed.
Admittedly, Im biased. But I also
know how much effort these people
gave to their companies over time. I
get the need to make such decisions
for the good of the business, but I
also have been around the business
block enough to recognize the potential faws in the decision-making
processes used to decide who has to
retire.
My brother was the frst victim. For
the past six years, he and his family have
been serving on a mission in Indonesia.
Yes, it is true missionary teams can
get downsized. Even though the entire family had made personal sacrifces
to support the organizational mission,
the choice was made to let a signifcant
percentage of that missionary team go.
What type of message does that send to
others who knew my brother and the
quality of his work?
On the same day my brother was
asked to leave, my life partner was given
similar notifcation. She had been with
her company for 36 years, and like my
brother she easily had given well more
than an average days work to her com-
18
By Kevin McManus
pany on a daily basis. Like my brother,
her contributions went well beyond time
served signifcant emotional and quality of life sacrifces had been made. She
was respected by myriad suppliers and
teams she had helped over the years, just
as my brothers congregation respected
him. What unintended messages were
sent internally and externally to stakeholders by forcing these people out?
One of my closest business friends was
victim No. 3. He gave so much to his
company in terms of travel time away
The alternatives were

evaluated using incomplete
data sets.
from home and invested emotion that
his relationships away from work were
compromised to some degree. His commitment, like the other two folks in this
story, went well beyond a 40-hour-aweek focus. Operations teams across his
company appreciated his service as well.
Like many management decisions, the
alternatives were evaluated using incomplete data sets. Wage and overhead costs
may be obvious, but where do the daily,
positive cultural impacts from these people show up in fnancial reports? Where
does loss of morale and focus for those
left behind show up in the product or
service costing models? What is the true
cost of these unintended messages?
If process excellence and sustainabil-
ity are organizational goals, how do you

ensure your costing models accurately
gauge the true pros and cons of a given
management choice? Where quantitative data cannot be had, how do we
design our decision-making models to
consider the soft costs of what appears
to be a sound management choice from a
budgetary perspective? When the market creates the need for headcount reduction, how do we decide who stays
and who goes?
I am confdent that each will emerge
from this shift unscathed. In fact,
I think all three will be better off
personally and will have the chance
to help even more people in high
impact ways. Their organizations
will regret each choice to some degree.
Sadly, the greatest need for regret
will go unrecognized the impact on
morale and performance that is felt from
letting high performers go while possibly allowing underperformers to remain
in their jobs. Choices such as these are
necessary at times, but the processes that
are used to make them all too often need
redesign. Could the cost-cutting choices
you make as a leader send unintended
messages?
Kevi
cMa us is a performa ce improveme t coach based i ai ier, Orego , a d
a 33-year member of IIE. He has writte
workbooks about perso al a d team effectiveess. McMa us is a lum i exami er for the
Malcolm Baldrige Natio al Quality Award.
Reach him at kevi @greatsystems.com.
19
management
Gauging your spirit of entrepreneurship
We recently hosted a panel of entrepreneurs to discuss the hurdles they

faced starting their businesses. All had
achieved some success in their ventures
but were working hard to achieve stable
proftability.
Each launched their enterprises when
their highly paid jobs disappeared, several during the fnancial crisis of 2008.
Rather than attempt to land a similar
job, they took the plunge and launched
new ventures. Interestingly, only one
started out alone. The others
quickly found partners.
All cited raising capital as the single most diffcult hurdle. Our panelists were highly educated graduates of prestigious universities with
impressive business experience, yet
they were forced to obtain seed capital
from friends, family, angel investors and
even U.S. government-insured small
business loans.
These executives emphasized that
the management teams experience and
skills were the most important selling
feature when raising money. All crafted
impressive business plans with well-documented strategies, yet investors wrote
checks based on the people who actually
would implement the plan. When asked
how they would change their approach,
most agreed they would spend less time
crafting plans and more time promoting
their team.
Interestingly, despite plenty of business experience, none had run an enterprise in their new industry. Investors
didnt seem to require that.
20
By Paul Engle
Two entrepreneurs started small,
fne-tuning their products, services and
business processes until they achieved
success at a single location. Once the
concept proved fnancially viable, the
enterprises rolled out cookie-cutter copies in new geographies.
Risk was effectively managed because
they made their mistakes early at a single
location, where course corrections were
easy.
All expressed frustration at the slow
All expressed frustration at the

slow pace required to expand.
pace required to expand. Leasing storefronts took up to 12 months and required multiple visits. Each new location required signifcant resources and
distracted the entrepreneurs from running the core business. Most were forced
to add administrative staff earlier than
planned in order to grow.
Government offered help but created hurdles. With an SBA loan for seed
money, regulatory concerns quickly appeared during every phase of the project. Attorneys were required early and
often to keep things moving.
All of the entrepreneurs emphasized
the level of commitment required from
themselves, their partners and staffs.
Most worked seven days per week for
months, and all served multiple roles.
Finally, all expressed satisfaction from
their resulting enterprises, and they

would do it all over again.
One common thread was the panelists desire to give back to the community. All provided a portion of their
services free to the neediest members of
the community, and one business leader
set up a nonproft foundation to mentor lower income students and channel
them to higher education. These leaders
recognized early that they needed to add
value to all elements of the community
rather than focus on a particular
segment.
Is entrepreneurship right for
you?
Most businesses fail within two
years for a variety of reasons, the
most common being a shortage of
capital and managements poor estimate
of the time and resources required to be
successful. Many enterprises start small,
adjust their business approach until success is achieved and then grow.
Most of these entrepreneurs started
when they were young, with lots of energy and few responsibilities. Their motivation included a desire to escape large
corporations and gain upward mobility.
All appeared to view their decision as
the right one.
Paul E gle is a ma ageme t co sulta t
with a
BA i
a ce. He has more
tha 0 years of experie ce i a ageme t,
operatio s, product developme t, sales a d
marketi g, strategic pl i g d busi ess
process improveme t. You may co tact him at
paulfe gle@outlook.com.
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your location and provide hands-on training that advances your business goals.
All of the courses in the IIE Training Center, including the online on-demand classes, are available for
corporate training:
Lean and Six Sigma

Engineering Management
Industrial Engineering Skills
Healthcare Management Engineering
Supply Chain Management
Quality Systems
Applied Ergonomics
Explore available courses at www.iietrainingcenter.org.
When youre ready to schedule your training,
contact Larry Aft, P.E., at laft@iienet.org.
21
health systems
Hoshin kanri for a professional society?

By Amanda Mewborn
Like any worthwhile enterprise, IIEs Then, for the strategies, I listed what time-bound. We had developed goals by
Society for Health Systems (SHS) regu- SHS previously called objectives: Grow committee and tied them to the mission,
larly updates its vision, mission and stra- engaged members; ensure visibility and strategies and objectives.
tegic plan. The last revision took place in recognition of the profession and the
For example, one of the goals for the
2012, so this year the SHS board arrived society beyond SHS; align and collabo- Academic and Student Committee was
at Februarys Healthcare Systems Process rate with IIE strategy; build leadership; to present at IIE's student chapter and reImprovement Conference a day early to and host the annual Healthcare Systems gional conferences, and the Content and
revisit the plan and align it with market Process Improvement Conference, spon- Connections Committee aimed to deneeds.
sored by SHS.
velop a marketing and social media plan
A lot of advance planning ensures
Next, objectives, which SHS previ- for SHS, including a monthly newsletthat we spend our limited time together ously called operational defnitions, were ter. The Conference Committee was to
wisely, and my successor as SHS presi- outlined: Manage and build membership keep conference attendance at more than
dent, Joyce Siegele, started preparations and member benefts; make SHS the rec- 300 people. The Education Committee
in September. One technique, hoshin ognized point of contact for IE/systems was to provide at least nine webinars, six
kanri, comes straight from the lean tool- engineering in healthcare by organiza- for members and three to promote the
box. This strategy and policy deconference. The Membership Recployment tool aligns a companys
ognition Committee was to update
mission, strategies, objectives, goals
and document the diplomate proHoshin
kanri
helped
me
identify
and action items. The technique
cess. And the Young/Early Career
cascades the mission and strategy
Professionals Committee was to
opportunities for the board.
by converting it into specifc objecbuild the basic infrastructure needtives, goals and tactics.
ed to support the societys Young
Typically, senior management sets the tions that drive healthcare policy; have Professionals group.
mission and strategy, which are convert- SHS recognized as the expert resource
The fnal phase of hoshin kanri would
ed into objectives and goals for middle in key areas of performance improve- be to convert these goals into specifc
management. Finally, the objectives and ment; present shared (SHS and IIE) we- team actions. This work was done by the
goals are converted to specifc action binars and seminars; provide leadership committee members SHS equivalent
items for the front-line staff. I decided to opportunities for participation in SHS of front-line staff. Translating SHS vitry out this effective business tool with committees and board positions; provide sion, mission, objectives and goals into
SHS.
leadership opportunities for participation the hoshin kanri framework was useful,
Since SHS didnt use the hoshin kanri in formal and informal leadership roles informative and really helped prepare the
framework at the 2012 retreat, it was a in the healthcare industry; and through board for its face-to-face strategic planlittle diffcult to retroft SHSs mission, a successful conference grow engaged ning session.
strategies, objectives, goals and tactics. members, build leadership and ensure
Nevertheless, the hoshin kanri exercise visibility and recognition of the society.
Ama da Mewbor s a dustrial e gi eer,
helped me identify opportunities for the
The next cascade is for goals. I realized registere urse a d lea lack belt who works
board.
that the goals we had established were as executive director for project ma ageme t at
For the hoshin kanri framework, I not SMART, which stands for specifc, Piedmo t Healthcare. She ca e reached at
broke the mission into three statements. measurable, achievable, realistic and ama da.mewbor @piedmo .org.
22
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; Contrast historical labor levels
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levels, the cost of labor and
the components of a full labor
management system.
; Design department manager
accountability.
; Analyze the organizational

structure of health systems,
current and expected industry
trends, and the politics of the
healthcare workplace.
; Evaluate system constraints
that impact true optimization.
; Identify the impact of
reimbursements, fnances,
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decision making.
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23
innovation
UN sets sights on sustainable industry and energy
On Sept. 25, 2015, the United Nations

launched the 2030 Agenda for Sustainable Development, a global program
for advancing fundamental change.
By 2030, the agenda wants to achieve
17 sustainable development goals, end
poverty and inequality worldwide and
safeguard Earth for the future.
The 17 goals are broken down into
169 specifc sub-goals to be achieved
by coordinated government, private
and individual initiatives. Three
of the Global Goals would be of
particular interest to I dustrial E g eer readers: Industry, innovation
and infrastructure; affordable and
clean energy; and responsible consumption and production. I will
focus on the frst two.
Industry is an indispensable driver of
the kind of economic and social progress envisioned by the Global Goals
program, which states that manufacturing accounts for around 470 million
jobs worldwide in 2009, about 16 percent of the worlds 2.9 billion member
workforce.
Industrializations job multiplication
effect has a positive impact, as every
manufacturing job creates 2.2 jobs in
other sectors. Accordingly, several of
the industry, innovation and infrastructure targets encourage environmentally
responsible and sustainable industrial
expansion:
Promote inclusive and sustainable
industrialization and raise industrys
share of employment and gross do-
24
By Nabil Nasr
mestic product, doubling its share in
least developed countries.
Increase the access of small-scale industrial and other enterprises, particularly in developing countries, to
fnancial services, including affordable credit, and integrate them into
value chains and markets.
Upgrade infrastructure and retroft
industries to make them sustainable,
increasing the effciency of resource
Industry is an indispensable
driver of economic and
social progress.
use and the adoption of clean and
environmentally sound technologies
and industrial processes.
Enhance scientifc research; upgrade
the technological capabilities of industrial sectors in all countries (in
particular developing countries);
encourage innovation; substantially
increase the number of research and
development workers per 1 million
people; and boost public and private
research and development spending.
Likewise, the U.N. also recognizes
that energy production and distribution drives growth and prosperity. The
renewable energy sector presently employs around 2.3 million. Given the
gaps in information, this is no doubt a
conservative fgure. Because of rising
interest in energy alternatives, the campaigns 2030 goal is to have 20 million

people employed in that sector.
Clean and affordable energy targets
for 2030 include: Ensure universal access to affordable, reliable and modern
energy services; substantially increase
the share of renewable energy in the
global energy mix; double the global
rate of improvement in energy effciency; enhance international cooperation
to facilitate access to clean energy
research and technology, including renewable energy, energy effciency and cleaner fossil-fuel
technology; promote investment
in energy infrastructure and clean
energy technology; and expand
infrastructure and upgrade technology for supplying sustainable energy
for all in developing countries.
The Global Goals program is so comprehensive, detailed and ambitious that
some of it may not be achievable in its
15-year timeframe. However, Global
Goals is likely to infuence the direction of business and industry for years.
Therefore, it is worth serious attention
and consideration. For more information, visit http://bit.ly/1Kjk 0B.
Nabil Nasr is director of the Golisa o I stitute for Sustai ability (GIS) at the Rochester
I stitute of Tech ology (RIT) a d director
of the Ce ter for I tegrated Ma ufacturi g
Studies, a tech logy developm t d tr sfer arm of GIS. He fou ded the Natio al
Ce ter for Rema ufacturi g a d Resource
Recovery (NC3R) at RIT.
Oct. 18, 2016
Embassy Suites Chicago O'Hare Chicago

www.iienet.org/workstandards
25
member forum
Out-of-the-box supply chain packaging
Most of us have experienced gift-giving humor, receiving a large, nicely

wrapped box with increasingly smaller
wrapped packages enclosed.
This happens with supply chain
packaging too, but its no laughing
matter to manufacturing executives.
Few companies are profcient at engineering this outer shipping layer to
protect items during transit, and such
supply chain packaging mistakes cost
organizations more for everything, including freight, warehousing and waste management.
But engineering professionals have the tools to address these
pockets of ineffciency. The typical corporate contract holds suppliers
responsible for preparing products for
long-distance shipping. Rarely are
they liable for anything besides product damage. As a result, most err on
the side of over-packaging.
To make matters worse, many companies are anything but helicopter
clients when overseeing this function.
Few question whether the materials,
measurements and confgurations used
in supply chain packaging match their
products requirements best. And most
dont offer disincentives for transportation ineffciencies created by suppliers packaging decisions.
But its a good idea to examine your
supply chain packaging setup. Do you
notice a large size differential between
your products exterior packaging and
the product itself when goods are being unloaded at stores, fulfllment cen-
26
By Rajiv Saxena
ters or cross-docks? Do you see more
cushioning material than before? Do
boxes and crates have superfuous air
space? These conditions indicate room
for signifcant dimensional reductions.
Examine the confguration of container and trailer contents upon arrival
and how shipping boxes, crates or pallets are put away. A lot of empty space,
especially at the top, and items stored
in single or double rows or layers sug-
Supply chain packaging

mistakes cost organizations.
gest that your packaging materials
have a stackability or cubing issue.
Dont ignore how packaging fares
during your unloading process because if shipping containers cant be
picked up cleanly with a forklift or
other common material handling
method, that location could fall behind when products arrive or report
more product damage than usual.
An inordinate amount of cardboard
boxes, plastic containers or fller could
suggest the need for reusable packaging. There might be a better way to
keep product from shifting during
transit than overstuffng a box.
Many things can compromise supply chain packaging effciency, and
engineering professionals have numerous tools for improvement. From
identifying alternate packaging confgurations and conducting packaging
optimizations to performing simulations and building/testing prototypes,

engineers possess many of the core
competencies needed to bring a fresh
approach to this long-neglected supply
chain area, transforming it into a true
strategic performer.
So if you suspect your companys
supply chain packaging has been an afterthought, consider conducting some
of this due diligence. Then present
what youve learned and ask for
the chance to dig deeper into everything from the parts or products being packed to the scope of
transit involved.
Your employers or clients will
be grateful you encouraged them to
think outside of the box, especially
when they see the freight savings, carbon footprint effciencies and other
material handling improvements you
help them achieve.
Rajiv Saxe a is head of global supply chai
solutio s for APL Logistics, a global supply
chai pecialist. He also is preside t of IIEs
Logistics a d Supply Chai ivisio d ca
be reached at rajiv.saxe a@apllogistics.com.
Voice your opinion

To submit a column, email the text to Michael
Hughes at mhughes@iienet.org. Columns
must be 500 to 600 words and are subject to
editing. Include a brief bio that includes your
IIE membership status.
Submit Abstracts Now for ELSS 2016

Abstract submissions are now being accepted to present your research, case study or
application to Lean and Six Sigma practitioners, researchers, educators and students.
ELSS 2016 tracks:
Lean Six Sigma Applications
Lean Six Sigma Education
Lean Six Sigma Research
Share how Lean Six Sigma can

be used to achieve world-class
performance in a wide variety of
applications and industries.
Discuss the challenges and

innovations that academic and
industry educators have developed
to bring Lean and Six Sigma
into the classroom. Papers or
presentations that are databased or advance pedagogy are
encouraged.
Present basic research with a

focus on clear and practical
recommendations for improving
the conceptualization, efective
implementation, and sustainment
of Lean Six Sigma initiatives.
Manufacturing
Healthcare
Logistics and Supply Chains
Government and Nonproft
Service Systems & Retail
Education in Industry
Experiential Games and
Simulations
Lean Six Sigma in the Classroom
Administrative Lean in Academia
Process Improvement
Product and Service Design/
Development
Creating and Sustaining a Lean
Six Sigma Culture
Emerging Topics and the Future
of Lean Six Sigma
Submission deadline: March 25

Visit www.xcdsystem.com/LSS
for submission requirements.
Sept. 14-16, 2016

Embassy Suites Riverwalk-Downtown
San Antonio, Texas
27
THE RIGHT METRICS

FOR ERGONOMICS
prise
By Jack Kester
28
Performance measurement can be a key to success for

any operational or management process. The right
metrics enable an organization to focus staff members
on critical activities and outcomes that achieve the
desired revenues and earnings for shareholders. The
challenge is to identify those select metrics that will
focus your staff on what is most important for your business.
The devil is in the details.
Your ergonomics process is simply another management
process that must be implemented effectively to attain the outcomes that management is seeking. Many ergonomics processes have failed due to the metrics that were selected when
they were initially implemented. The management teams believed that metrics for their ergonomics processes were selfevident because they would reduce the number of workers
compensation claims related to musculoskeletal disorders and
reduce the costs related to those claims.
While those may be valid goals over the long term, using
those two metrics over the short term might disappoint your
management ranks. As the ergonomics process is implemented, more employees become aware of musculoskeletal disorders and their symptoms. At that point, the number of claims
and their related costs may increase, causing management to
rethink the wisdom of implementing ergonomics in their
workplace. While the increased incident rates may have been
a short-term phenomenon, many ergonomics processes have
been discontinued due to such perceived negative outcomes.
These false starts could have been avoided if the right shortterm and long-term metrics had been introduced when the
ergonomics processes were initiated. Lets take a look at effective metrics for ergonomics processes.
Sustainable ergonomics processes

Implementing an effective ergonomics process is not rocket
science, unless you are implementing it at Boeing or Northrop
Grumman. Most ergonomics processes have similar elements:
an ergonomics team, some form of prioritization system for
selecting jobs for analysis, an ergonomics analysis process, ergonomics training, etc.
However, many ergonomics processes do not provide
enough detail to create measurable process tracking and effective metrics. Many processes fail to provide enough data in a
format that enables the management team to make informed
decisions on ergonomics solutions. Most processes do not provide enough meaningful feedback to management or provide
a structure for engaging management in the process. These
missing features affect the effectiveness of the processes and
limit managements ability to develop metrics that address the
most meaningful activities.
Now, envision an ergonomics process that objectively prioritizes risk in the workplace to focus resources where they
will have the greatest impact. Consider a process that calcu-
lates the impact on risk and the potential return on investment

(ROI) when ergonomics solution options are submitted to
management for approval.
Think about how employees will react when they see senior managers actively involved in meaningful ergonomics
activities in their work areas. How would it feel to see fags
and displays at workstations that celebrate and illustrate the
effectiveness of the ergonomics solutions implemented at the
plants actual workstations? That is the difference that you see
and feel with a sustainable ergonomics process. And each of
those process elements can be measured if, at the outset, they
are designed thoughtfully.
One of the most important elements of an ergonomics process is an objective method for prioritizing risk in the workplace. One method of prioritizing risk is to use a risk assessment format that provides a means for scoring the level of risk.
A number of available risk assessment tools can quantify the
ergonomics risk, and it is important to select a tool that results
in consistent scores regardless of who completes the assessment. The ergonomics process should defne how and when a
risk assessment will be performed and how risk will be prioritized. A metric then could be established to track the effectiveness of the assessment process.
The risk assessment tool has a number of other uses. As ergonomic solution options are developed, the team can use the
assessment tool to project the potential impact on risk for each
option. That can be a meaningful data point as management
selects between the solution options.
The assessment tool also can be used to validate the impact
of an ergonomics solution after implementation. This confrms the effectiveness of the solution and enables the ergonomics team to recognize any unintended consequences that
result from how the solution was implemented. The follow-up
assessment is a critical activity that could be included in the
short-term metrics.
Metrics can be developed to track signifcant risk assessment
activities to enable management to track the implementation
of the process. For example, some meaningful metrics on risk
assessment may include:
The percentage of jobs/tasks with completed risk assessments compared to the time frames in the ergonomics process
The percentage of new or revised workstations with risk
assessments completed within 30 days
The percentage (or number) of ergonomics solutions implemented that achieved signifcant risk reductions based on a
post-implementation risk assessment validation
A sustainable process provides a simple mechanism for calculating potential returns on investment for ergonomics solution options. A spreadsheet calculator Figure 1 shows an
29
The right metrics for ergonomics
FIGURE 11
FIGURE
Ergonomics solution impact calculator

This ergonomics solution impact calculator provides a simple method for quantifying the costs and potential impact on operations
for various options. Based on the data provided, the spreadsheet calculates the return-on-investment and payback period for various
ergonomics solutions, allowing ergonomics teams and management to compare the data side by side.
Solution description: Install a self-leveling lift table
General data
# of employees on job
Hourly labor rate $22
$22
Annual WC costs for job
$15,000
Solution implementation cost
Productivity impact estimate
Cost factors
Costs
Equipment purchase
$1,400
High - Speeds up process
Level of increase
Installation costs
$100
Medium - Reduces wasted motion
Training costs
$50
Low - Improves comfort/reduces fatigue
Recurring costs
Mark 'x'
Solution effectiveness estimate
Other costs
Type of Solution
Total cost of solution
$1,550
Solution cost savings
Mark 'x'
Eliminates the exposure

Reduces the level of exposure
WC cost auto calculation
$6,000
Reduces the time of exposure
Productivity calculation
$4,400
Relies on behavior changes or training
Product returns & rework
Comments:
Absenteeism/employee turnover
Other factors
Total savings from solution
Comparative valuation of solution

First year return-on-investment
5.71
(projected savings - implementation cost)/implementation cost = ROI
Payback period (years)
0.15
(implementation cost/projected savings) x 1 year =payback period
example can estimate the potential monetary returns for

each solution and present the ROI calculations side by side
in a summary sheet to enable management to make informed
decisions as they select between solution options. This ROI
calculation also should be performed after an ergonomics solution has been implemented to confrm the operational impact.
The metrics should compare the ROI or payback periods for
ergonomics solutions to corporate expectations for ROI or
payback periods for capital investments.
Sustainable processes provide frequent feedback to the management team with data on the key metrics in a one-page,
quick-look report. A member of the ergonomics team reviews
the metrics with senior management on a monthly basis to
provide feedback on progress and to solicit management assistance or involvement when obstacles arise. The impact of
ergonomics solutions is reviewed with management during
these meetings, providing positive reinforcement that the ergonomics process is adding value to the business.
Management engagement is a prominent element of a sustainable ergonomics process. When senior managers perform
30
highly visible activities within the process, staff members recognize the importance of their roles in ergonomics. The management team also gets a close-up look at how ergonomics
affects the staff members and their well-being. This provides
positive reinforcement to management as well as other staffers,
along with providing potential metrics to hold management
accountable for its level of engagement.
Metrics that drive change

What gets measured gets done.
We all have heard that timeless theory about metrics and
effectiveness. The key to making this work is to ensure we are
measuring the right things at the right times.
For example, ergonomics processes can reduce workers
compensation costs. However, it takes time to implement the
ergonomics process and introduce changes to workstations
and workfow that will reduce risk for your staff. Measuring
the workers compensation cost reductions three months after
implementing the ergonomics process sends the wrong message to the management team and to hourly staff members
because such fgures are great long-term metrics but provide

no meaningful information over the short term.
Long-term metrics focus on the intended outcomes of the
ergonomics process once it has had time to be implemented
and become normalized. Long-term metrics can start to provide some meaningful data two or three years after the ergonomics process is functional. If long-term metrics do not meet
expectations, management should evaluate the ergonomics
process to identify faws or gaps.
For example, evaluating the process may show that effective
ergonomics solutions have been implemented, but employees
have not adopted the changes or are not using new tools and
equipment as intended. Armed with that information, the
process can be modifed to reinforce training and behavior
observation practices to improve the level of conformance.
Over the short term, the management team needs to track
upstream metrics the implementation of critical ergonomics
process elements that will achieve long-term goals. If the process is designed properly, the signifcant process elements will
include time frames for performance and procedures to gather
feedback and evaluate the quality of ergonomics activities.
The ergonomics process should be simple to translate into
upstream metrics to enable management to evaluate the level
of implementation. This provides the opportunity to identify
areas where implementation is lagging and enables management to identify and overcome any internal obstacles and
guide the process back on track. Better yet, when short-term
metrics reveal effective application of the process, management can provide positive reinforcement to team members to
encourage continued success.
The best management processes allow for mutual accountability, establishing roles in the process for all staff members,
from hourly workers to the senior management team. All staff
members should be held accountable for effectively fulflling
their roles in the process.
For example, the ergonomics team typically submits its
ideas for ergonomics solutions to management to gain agreement and to secure funding for solution implementation. The
management team should be accountable for making decisions
on the ergonomics solutions within a reasonable designated
time frame. Training the ergonomics team to estimate ROI
or payback periods for its solutions as well as potential risk reduction will facilitate management discussions and reduce the
decision-making time frames.
Lets look at some examples of typical short-term and longterm metrics used by prominent U.S. organizations.
Short-term metrics
As mentioned above, short-term metrics should be designed
to implement key ergonomics activities effectively. You need
to trust that the ergonomics process will achieve the intended
outcomes if management, ergonomics team members, and
other staff members fulfll their roles within the process.

Therefore, short-term metrics, which have a time frame of
zero to three years, focus on the implementation and quality
of performance for signifcant ergonomics activities, such as:
Percentage of risk assessments performed within the process
timelines
Consistency of the scoring in the risk assessment process
Ergonomics job analyses performed for the selected number
of jobs/tasks defned as high risk within the risk assessment process
The number of ergonomic analyses completed for highrisk jobs with a range of potential solutions presented to
management with data on the potential impact on the risk
score and the estimated return on investment of each solution option
Management decisions made on the solutions presented for
the high-risk jobs within the time frames designated by the
ergonomics process
The number of ergonomics solutions implemented for
high-risk jobs
The number of validations of the reduction in the risk score
and the return on investment for ergonomics solutions implemented
The number of cases of senior management involvement
or engagement in critical and visible ergonomics activities,
such as behavior observations after the implementation of
ergonomics solutions, observation of risk assessment activities performed by the ergonomics team, ergonomics solution brainstorming sessions, etc.
The frequency of the status reports to management as defned within the ergonomics process
These metrics enable the management team to track the effectiveness of the implementation of the ergonomics process.
If the upstream metrics are not being met, management can
intervene to address issues.
For example, a common issue that arises is an uncooperative
production supervisor who will not allow ergonomics team
members to leave their jobs to perform risk assessments or job
analyses. When the risk assessment metrics are behind schedule, senior management can investigate the causal factors and
secure the cooperation of the supervisor. Training issues and
team confict are other issues that can be uncovered as management evaluates short-term metric performance.
Short-term metrics provide a valuable mechanism to spot
faws in the ergonomics process implementation quickly to
maintain momentum and achieve success.
Long-term metrics
Long-term metrics focus on downstream outcomes that add
value to the company. Management team members want to
31
The right metrics for ergonomics
HOT TIPS FOR HOT-DESKING

As technology has enabled employees to connect to the workplace from anywhere, the old idea of one offce and one desk per person
is morphing. Some workplaces are experimenting with hot-desking or hoteling, where multiple workers could share one physical
workstation making things even more diffcult for your offce ergonomics program, according to the REMI Network, a news and
information source for real estate managers. Ergonomists Catherine Smallman and Linda Miller wrote that shared workstations create
three common challenges.
First, people are different in size and stature. This makes it even more important to provide adjustable furniture and equipment.
Instead of a one-chair-fts-all philosophy, a better idea might be selecting one type of chair to accommodate smaller individuals and
another for larger people. Second, each employee also likely has different job task demands. Their requirements, along with the number
of monitors, will affect desk size and confguration. For example, desks with dual monitors need at least 30 inches of desk depth
for adequate viewing distance. Third, each employee likely has different individual needs. Providing each employee with a personal
keyboard, mouse and phone headset will control cleanliness and accommodate their individual ergonomic needs.
And dont forget to train each worker on how best to use the equipment, the ergonomists noted. While hot-desking allows facility
managers to reduce real estate and operating costs, those savings could evaporate if you dont take care of the comfort and health of
your workforce.
see the return that they are receiving for their efforts and resources allocated over the long term.
Are we avoiding employee injuries so our people are present
and productive at work? Are we implementing ergonomics solutions that signifcantly reduce risk and increase productivity?
The long-term metrics, which have a time frame longer than
three years, capture the operational impact of the ergonomics
process on the business.
Typical long-term metrics for ergonomics processes include:
32
to be resolved to make the ergonomics process operate as intended.
Ongoing focus on results
Number of ergonomics solutions implemented for highrisk jobs

Percentage of successful outcomes for the ergonomics solutions implemented, including measurable risk reductions,
quantifable productivity gains and acceptable ROIs
Number for workers compensation claims related to musculoskeletal disorders
Average cost per claim for musculoskeletal disorders
Total claim costs for musculoskeletal disorders
Operational metrics can drive positive trends in an organization if management selects and uses the right measures to
monitor the ergonomics implementation process and intervene to keep the process on track.
Upstream short-term metrics provide a window of opportunity to identify obstacles early in the process. Downstream
long-term metrics gauge performance and enable the management team to take a broader view of the ergonomics process
and its impact on the organization.
Metrics empower organizations to evaluate and continuously improve performance of management processes, including ergonomics. Enlightened management teams use positive
results from the short-term and long-term metrics to motivate
their staff to reach new heights. Effective use of metrics can
change your organization.
If long-term metrics are not heading in the right direction,

management should evaluate the ergonomics process to identify faws in the system. Is the risk assessment scoring accurate
and consistent? Do the ergonomics job analyses capture all of
the primary musculoskeletal risk factors? Are the estimates for
risk reduction accurate when solution options are presented
to management? Have the workstation changes been installed
improperly, or have the solutions created unintended consequences that create other risk factors?
A joint management-ergonomics team causal analysis may
generate discussions that lead to signifcant improvements in
the process going forward. One or two simple issues may need
Jack Kester is the director of solutio evelopme t for Creative Risk Solutio s LLC, where he works with corporate clie ts o afety, ergo omics a d i jury ma ageme t projects. Kester has served as the regulatory
complia ce ma ager at Argo e Natio al Laboratory a d leader of the
global workplace productivity a d ergo omics practice for Marsh Risk
Co sulti g. He has spoke t major risk ma ageme t a d ergo omics co fere ces that i clude the Applied Ergo omics Co fere ce, the
Natio al Ergo omics Co fere ce a d Expo a d the America ociety
of Safety E gi eers Professio al Developme t Co fere ce. Kester has
a B.S. i ccupatio al safety from Illi ois State U iversity a d has
ear ed the professio al desig atio s of certifed safety professio al a d
certifed i dustrial ergo omist.
Deploying lean Six Sigma in logistical battles

able methodology with militarys strategy, oper
y improves capability
By Chris Hook
Todays United States armed

forces are the strongest and
most advanced military force
the world has ever known.
This statement is thrown
around by many political pundits and talking heads alike, although
many times they dont think about the
signifcance of its implications.
Consider that according to the Stockholm International Peace Research Institute, U.S. military spending averages
$711 billion per year, representing 48
percent of the total military spending
in the world. There are 10 U.S. aircraft
carriers in service, while everyone else
has 10 combined. There are 8,400 attack
helicopters in the world, and the U.S.
owns 6,400 of them. These statistics
go on and on, all supporting the fact of
Americas unrivaled military might.
How did we get here? While the

United States has enjoyed unabated military prominence following World War
II, the post-9/11 military ramp-up in
spending to combat terror and support
two ground wars represents a watershed
moment in American history military
spending increased by 50 percent in the
following decade. This trend followed
the dogma of more money = more
military capability.
While the resulting increase in the
sheer abundance of resources is obvious,
the fallout from this spending, coupled
with fscal constraints set via congressional efforts to combat the federal governments fnancial defcit, had left one
logistics information technology (LogIT) military entity questioning if the resources acquired led to the right logistics
support capability. The warfghter de-
pends on the capability of LogIT systems

to support mission requirements every
day. This could range from the transfer
of requests for amphibious vehicle parts
in Djibouti to the relay of geographical information for service members in
theater. The ability of these systems to
function both exclusively and as a unit
was truly a life and death situation.
This questioning turned into a frm
recognition of ineffcient acquisition
practices as sequestration became the
new normal. The quick, knee-jerk,
hey, thats a great idea acquisition decisions of the early 2000s gave rise to a
bloated, capability-redundant LogIT
portfolio. Many systems accomplished
the exact same mission but treated data
in very different ways. This resulted in
not only confusion in how and which
LogIT systems to employ, but also un-
33
certainty in identifying authoritative

data sources within the portfolio.
That is to say, failing to improve upon
substandard acquisition practices to
adopt data-driven procurement methodologies during a period of excess
spending led to an inability to execute
vital service delivery in an environment
that required quick, uninhibited action
within the supply chain. In an organization composed of hundreds upon
thousands of individuals tasked to manage a disjointed LogIT portfolio with
the mission of providing rapid logistics
support to warfghters, leadership made
yet another investment decision. However, this investment was not for another
system or capability. Instead, it was a
dedication to quality through the creative, impactful employment of lean Six
Sigma methodologies.
Three tiers
to LSS improvement
While many might view lean Six Sigma as a process toolkit ripe primarily
for the manufacturing industry, practitioners sometimes fall victim to the
defne-measure-analyze-improve-control (DMAIC) framework. This strict
adherence to process alone shrinks the
scope of its impact as well as the fexibility of the tools methods. In large organizations, this can be fatal.
Military leadership recognized this
and attacked the seemingly singular
LogIT capability challenge by dividing
its application into three areas of impact
within the value stream of delivering
services to warfghters: LogIT capability
development strategy, LogIT operations
in place to enable the delivery of LogIT
support, and the actual logistics technology used to deliver the service within
the LogIT portfolio.
Strategy was evaluated from the
standpoint of macro-level LogIT capability development within the branch,
external to LogIT. What are the inputs,
outputs and communication protocols
for ensuring knowledge transfer? What
drives these decisions? And most importantly do we need this capability or
LogIT system?
As detailed in Figure 1, using root
cause analysis and incorporating the
fve-why method allowed leadership to
take the frst step in recognizing that the
lack of quantitative justifcation for investments in LogIT was but a symptom
of the siloed nature of capability development within the service as a whole,
due to the fact that LogIT lacked policy
direction. The analysis was being executed, frameworks were in place, but
a lack of communication on the part of
program offces stopped the free fow
of information to decision-makers. To
fll this void, the loudest voice in the
room culture won over.
This frst step embodies a fundamental principle in aligning strategy, operations and technology to the DMAIC
framework recognizing the alignment
or misalignment of communications
within your value chain. In many improvement efforts, youll fnd that one of
the biggest issues plaguing organizations
is inept, disjointed communication.
In this case, leadership found that, by
and large, program offces had the data
needed to assess systems and develop
greater capabilities, albeit this spanned
some 300-plus data systems, applica-
FIGURE
FIGURE 11
The right questions

The fve whys offer a simple yet effective solution for initiating root cause analyses.
34
tions and data warehouses. However,

these offces did not communicate this
data to LogIT data managers, who were
then unable to integrate the necessary
capabilities to the LogIT portfolio. The
fact is that communication within supply chains not only ensures that expectations are met, it also provides the fodder
for innovation.
Had program offces provided and
LogIT data managers sought this data,
overlapping capabilities may have been
less of a challenge. That would have allowed this system to provide warfghters
with greater capabilities more effciently
like timely supply drops in Afghanistan.
As in our example, using a top-down
approach to voice-of-the-customer outreach is an effcient way to gauge the
degree of alignment between strategy
and action at different managerial levels.
Starting with top level leadership will
provide insight into the why. What are
the overarching principles or policies affecting the delivery of our service? How
should this be carried out?
After identifying intent, look for
how this logic aligns at sublevels. In the
case of LogIT, those leading this effort
found that while top-level leadership
favored the agile development of logistics systems, program offces and lower
level data managers continued to operate according to legacy principles. This
caused a disconnect in capability expectations and transfer of authoritative data,
contributing to the lack of data needed
to make effective acquisition decisions
across the service.
Youve identifed the strategic defciency within your organization, now
FIGURE 21
FIGURE
Getting unbiased insight

The Delphi method of communication is a fexible strategy for leveraging input from vast spreads of expert participants.
what? The key here is to organize this

information in a way that your leadership, as well as middle and lower level
stakeholders, can clearly see the current
state. Compare this to the strategic outlooks of all parties involved.
In our example, this was accomplished
via value stream mapping for capability development. Although this method
can be politically challenging, shedding
light on strategic defciencies and gaining insight from different organizational
tiers will give you the necessary insight
to evaluate operations better.
Delivering service
Operations are the crux of service delivery and the wheelhouse of lean Six
Sigma application. However, this service area represents one of the largest
and most complex military entities in
the world. Transforming the departments business operations and aligning
its strategy, controls, people, processes
and technology to affect this transformation is an enormous challenge.
To augment the effectiveness of lean
Six Sigma principles, leadership leveraged custom process simulation software. This enabled leadership to assess
virtually the impact of lean methodologies on internal processes in real time.

One of the challenges of process optimization is the lack of data and documentation to defne a process concretely,
which was the case with LogIT operations analysis. In this instance, strategic
analysis identifed that minimal policy
support rendered the left hand ignorant
of what the right hand was doing.
To combat this challenge, the Delphi
method of structured communication,
depicted in Figure 2, was effective in
gaining an unbiased insight on operating procedures. Experts or process
stakeholders answer questionnaires in
two or more rounds. After each round,
the facilitator provides an anonymous
summary of the previous questionnaires
as well as the rationale supporting each
answer. Experts then adjust answers until a consensus is reached.
This method espoused yet another
principle in executing this or any other improvement framework to mold
your chosen technique creatively around
a given problem and resist forcing your
challenge into an existing framework. If
youre familiar with the lean Six Sigma
body of knowledge, then youre aware
of the numerous sections corresponding

to the subcriteria within the DMAIC
process. Within these subcriteria are
selected methodologies, or toolkits, corresponding to the principles within each
lean Six Sigma phase.
Too often, practitioners execute improvement initiatives with an almost
dogmatic adherence to these phases and
the tools therein. This lack of fexibility
and completeness in challenge defnition is one of the main reasons lean Six
Sigma projects fail.
In one example, in 2010 a highly visible home improvement organization
shifted to lean Six Sigma to combat the
effects of recession. Although this organization experienced higher profts
initially, success was short-lived. The
practitioners who executed this initiative viewed improvement in isolation
solely dependent on tangible, lean operational enhancements. This included
laying off numerous knowledgeable customer service employees in exchange for
younger, arguably less motivated talent.
As time passed by, this organizations
once revered reputation, and profts,
began to falter, largely due to the loss
of once loyal, repeat customers. These
35

36
longtime patrons, a crucial element of it can mean different things to differ- tions be executed? What technology
success, grew frustrated with lackluster ent stakeholders. As the Department of will ensure the realization of strategy
assistance from less-experienced cus- Defense does not produce revenue, the and facilitate successful service delivery
tomer service personnel excellent ser- argument begins at the point of capa- via improved operations?
vice had been a historic hallmark of this bility per dollar spent.
Aligning the levels of an organizaorganizations reputation.
What does that mean? The truth is tion to a custom application of lean Six
In this case, practitioners viewed this that we may never know exactly what Sigma produced considerable results.
organizations challenge strictly as an op- that means.
In regards to identifying, pursuing and
erational endeavor. Had they recognized
However, as capability is an objective assessing new capabilities, the destructhat knowledgeable customer service term to describe value within LogIT, tion of communication silos reduced
operations represented a cornerstone of leadership sought to determine what cycle time by upwards of 60 percent. In
strategy, their lean
streamlining comSix Sigma program
munication between
may have produced a
service entities, duBeing all they can be by using less
more favorable result.
plications of efforts
Logistics information technology isnt the only military function benefting from
To ensure your
were discovered and
the application of lean Six Sigma.
method is the most
adjudicated,
leadAccording
to
the
U.S.
Army
News
Service,
10
Army
organizations
were
fexible
technique
ing to a signifcant
recognized last fall for streamlining their business operations, eliminating
possible, scrap your
reduction in waste.
redundancies and saving millions of dollars via lean Six Sigma practices. The
body of knowledge
This service branch
Army Lean Six Sigma Excellence Awards Program is in its seventh year, and
and think tools.
was able to assess new
the
latest
winners
included
teams
working
on
logistics,
healthcare,
aviation
Yes, you have to decapabilities more rapfne your problem
idly and more effecmaintenance, ergonomics and contract negotiations.
before solving it, but
tively. Whereas prior
Acting Undersecretary of the Army Eric Fanning hosted the Pentagon
recognizing the conacquisition decisions
ceremony.
nection between pilwere executed based
Its not just the cost savings and avoidance that you realize, Fanning said.
lars of organizational
on the functionality
You actually introduce real effciencies for our soldiers, for their families and our
existence (strategy,
of a proposed syscivilians. You make a difference in peoples lives every single day. You make their
operations and techtem alone, decisions
lives easier.
nology) will provide
are now adjudicated
the foundation for
based on a proposed
this discovery. Visualize your highly exactly makes a system valuable to the systems contribution to the capability of
touted, exclusive frameworks as merely end user. As before, leadership leveraged the LogIT portfolio at large.
a collection of your personal toolkit.
the input of warfghters to determine
In our LogIT example, running the wants and needs of LogIT systems. Strategy-operationssimulation software to assess logistics However, this also was built upon to technology
technology support is not found within include elements of quality function de- Operations cannot be executed contrary
the lean Six Sigma body of knowledge. ployment to defne what exactly would to the direction of strategy, just as the
However, the principles offered by the be the most valuable subcriteria to the technology (or tools) used to accomplish
lean framework powered this tool and warfghter.
a mission must ft within operational
offered a more holistic and cost-effecThis allowed the leadership team to workfows.
tive technique. This allowed decision- develop standards to track data within
A great way to ensure that the DMAIC
makers to visualize the improvement the portfolio. Just as importantly, this methodology (or any improvement
wrought by lean Six Sigma application spurred a shift from basing acquisition toolkit) is employed to its greatest efprior to implementation.
decisions on LogIT system capability fectiveness and elasticity is to view chalNow on to the LogIT technology. alone to investing systems based on its lenges through the lenses of strategy,
The primary challenge here was uncer- respective ft within the capability of the operations and technology.
tainty about the LogIT portfolios capa- portfolio at large.
Strategy represents the why, or the
bility and authoritative data sources. If
What was the key here? It was bring- overarching mission of an organization.
youre familiar with Department of De- ing the pillars of your organization full In our military example, this began with
fense acquisition, a very dangerous term circle. Why are we providing this kind developing LogIT capability. What was
is return on investment (ROI) because of LogIT service? How should opera- LogIT providing to warfghters? The
FIGURE 31
FIGURE
Big impact
Viewing the application of lean Six Sigma as a method of integrating strategy, operations and technology will yield the greatest impact.
department managed LogIT systems

used by military personnel on battlefelds and offce spaces alike. Why were
they doing this? To ensure capabilities
espoused via these systems were reliable,
uniform and effective.
Operational analysis will provide the
how. Leadership realized that people
and background capability development
processes represented the crux of ensuring that strategy was realized.
Finally, technology represents the
what. What tools within operational
workfows are used to ensure successful
service delivery? Obviously, this repre-
sented the LogIT systems themselves. As

shown in Figure 3, this is not necessarily
a process in and of itself, but a viewpoint
to be used to direct the implementation
of lean Six Sigma (and other continuous
process improvement) methods to yield
the greatest impact.
Lean Six Sigma is a valuable toolkit.
It offers a proven framework with a set
of fexible methodologies for reducing
waste and defciencies. But thats exactly
what it is a set of methodologies to use
in conjunction with an organizations
strategy, operations and technology to
increase your impact and identify essen-
tial linkages within an organization.

Aligning your challenges to strategy,
operations and technology will ensure
that lean Six Sigma, or any methodology for that matter, captures the big
picture associated with a potential defciency, not just an isolated incident.
Chris Hook is a co sulta t for The Boulevard
Co sulti g Group. He is a IE member a d
a SQ-certifed Six Sigma black belt. He
holds a bachelors degree i olitical scie ce
from James Madiso
iversity a d has led
umber of improveme t i itiatives for public
a d private sector clie ts.
37
Affordability a triple aim

for improvement
alue,
is where true perfor
By Paul Odomirok
Value
customer
38
cost
FIGURE 1
Wherever you are on

the process improvement
spectrum, your solutions
be they strategic, operational or tactical must
encompass three distinct
focal points: value, customer and cost.
Every organizations overarching goal is
to provide affordable products and services. Properly understood, applying the
theory of affordabilitys triple aim can
help your enterprise reach that goal.
The power of three

Affordability is all about the integration
of value, customer and cost for continuous improvement. Affordability applies
to the entire workforce, every operational issue and every process improvement tool, be it lean, Six Sigma, the
Baldrige framework, balanced scorecard, re-engineering, PDCA or the
host of other tools in your improvement kit. Before proposing solutions,
and even before digging deep into
symptoms and root causes, its best to
establish an understanding of the factors of value, customer and cost along
with where and how these critical factors intersect.
Figure out the value, purpose and intent of the targeted organization. Identify, categorize and describe the details of
the targeted organizations external and
internal customers from the perspectives of what they require, need, wish
and want. Defne the costs and expenses
involved in delivering the organizations
products and services from an actual,
reasonable, competitive and acceptable
standpoint internal to the organization
and external to the institution, including customers and suppliers. From this
universal viewpoint, an aim can be set
and established for continuous improvement.
This approach is designed to leverage strategic models, such as balanced
scorecard, operational models like lean
and Six Sigma and tactical models for
process improvement. Affordability
can be used at the top leadership level,
the middle management level and the

value-added level, the place where the
organization provides the products and
services the customer is willing to buy.
Where value and customer intersect,
youll fnd the point where customer
requirements, needs, wants and wishes
occur. In addition, youll fnd delivery
requirements, quality requirements and
reliability requirements. The conditions
for growing the customer base, along
with what it takes to beat the competition and increase market share, is within
this zone. It also is the area for defning
and determining what you need to do
to improve your products and services.
Where customer and cost intersect is
where pricing, logistics, delivery, value
analysis and customer cost/beneft reside. Cost is not just an internal organization metric for affordability; it helps
generate the external metric of price for
the customer. The entire price or cost
includes both upfront and ongoing costs
for the customer, including the purchase
price, maintenance and sustainment.
Reducing internal costs could help you
lower external costs, which are the prices your customers pay for your deliverables. Lower prices mean higher value to
your customers and increase the probability of growing your customer base.
The area where cost and value intersect defnes the necessary operating expense to provide the high-quality products and services that your customers
want, fulflling your organizations purpose. Some of the items in this area are
cost of quality, or in this case cost of
affordability. This is where the valueadded costs, value-added support costs
and non-value-added costs dwell. It also
includes costs extended to suppliers and
any other costs affliated with delivering
value.
As shown in Figure 1, the aim is the
red area where all three elements intersect. This aim is to increase and improve
value, grow the customer base and market share and decrease costs while pursuing excellence and continually improving. Combining greater value with
The theory
of affordability
Your organization should aim to improve
value, grow your customer base and
reduce costs.
a larger customer base and lower costs

achieves performance improvement, accomplishing continuous improvement.
The House of Affordability in Figure
2 displays the theorys key components.
The center point or pillars of the infrastructure are value, customer and cost.
The roof contains the strategic elements
of purpose, vision, value, mission, strategy and systems for direction, alignment
and integration. The steps of the foundation are composed of responsiveness
(faster) and excellence (quality), leadership, modifcation (change and transformation), improvement (creativity and
innovation) and the foundation (people,
process and performance).
The top portion of the model shows
the framework for developing, conveying and accomplishing the defned strategic direction, alignment, motivation,
communication and execution. This
section is dedicated to establishing intent, creating and executing a strategic
plan, defning the systems and processes
that defne the work and functions of
the organization, mapping the structural
design and governing the institution.
This area characterizes the paradigm of
how the organization will be successful.
The middle portion describes the
salient components that connect the
strategic part of affordability with the
operational and tactical parts. The three
39
Affordability a triple aim for improvement
FIGURE 2
The House of Affordability

To architect a solid affordability plan, a solid foundation must work with the three pillars of value, customer and cost to hold up the roof
the ultimate purpose
p of yyour organization.
g
pillars of value, customer and cost provide the aim as well as focus for the organization to understand what it must
do to improve continually. The pillars
operate at the strategic, operational and
tactical level of every group, team and
individual. The pillars connect the value
of what each individual does with the
purpose of the organization.
The pillars also connect cost to all levels of the organization from the individual to the team to the whole entity. All
columns are pertinent, and all columns
must be addressed with the same level of
importance and relevance.
The platform portion includes the fve
components for achieving operational
and tactical excellence and improvement. The frst level of the foundation,
faster and better, is concentrated on the
quantitative values of systems, processes
and functional performance for delivering products and services that meet
customer expectations, value and cost,
all while conforming to requirements
and complying with standards (product,
market, industry and defacto).
The second level, leadership and
management, connects the strategic
components with the operational aspects
40
and the tactical facets. The third level,

change and transformation, provides the
methods and methodology for moving
from the current state to the future state.
The fourth level, creativity and innovation, provides the means for generating
new ideas to the full implementation of
those ideas for improvement.
And fnally, the ffth and most critical
level of all, people process performance, provides the engine for moving
forward.
People, process and performance
are components of a cyclical function
aligned with and centered on purpose
that leverages the organizations people
who operate and improve the process,
which results in performance and leads
to fnancial and social proftability,
which drives and fuels prosperity and
achievement of the people.
Affordability employs the people of
the organization to drive the process,
collaboratively solve problems and institute solutions for continuous process improvement. The solutions are targeted at
anything related to the organizations
processes and systems, ultimately yielding performance improvement. Common metrics of performance are both
qualitative (the satisfaction of customers,

people and suppliers) and quantitative
(time, quality and cost). The outcome
of performance improvement is success that profts the organization and its
people.
A winning formula
Decades of experience has taught that
organizations fail at continuous improvement for various interrelated reasons. Unsuccessful enterprises often lack
an accepted and established aim and true
purpose that touches strategy, operations and tactics. Their continuous improvement programs dont enjoy the full
support of leadership and management.
Or they lack support and motivation in
their employee base, suffer from an absence of tools and resources or have a
limited or even nonexistent plan and
design for success.
This leads us to the formula or equation of affordability:
Affordability = purpose a d visio or
directio d alig me t + i volved leadership
a d ma ageme t + e gaged people +
appropriate tools a d resources + a co cise
pla d desig
Within lean, we pursue waste

elimination, perfection, fow, pull
and value. Research has documented that more than 70 percent of
change and transformation efforts
and initiatives fail. The 30 percent
that succeed have the content and
components of affordability.
One of the primary drivers of
lean success is the whats in it for
me principle. People who know
whats in it for them are more involved and linked to the endeavor,
which optimizes your probability of
success.
Effective lean initiatives succeed
by concentrating on value, value
stream, fow, pull and elimination
of waste, incorporating the people
and involving the leadership and the
hoshin kanri or policy deployment
approach for strategy.
Successful Six Sigma efforts pursue reduction of variation, elimination
of defects and process performance improvement using a plan with full leadership and people involvement.
For both examples, value, customer
and cost are the three common elements. Strategic, operational and tactical
schemes are deployed via affordability
with alignment and integration. The
programs ensure speed, responsiveness,
quality and reliability through leadership
and management engagement, solving
problems using creativity and innovation by way of the foundation based on
people, process and performance.
The strategic purpose of your organizations improvement is deployed
through the operational and tactical layers. Strategic improvement targets involve what you do, who you do it for
and how much is involved to attain performance excellence. When you seek to
increase your value, grow your customer
base and demand for what you provide
while constantly reducing your cost and
expense, you can achieve superior operational performance. Affordability,
as a theory, involves integrating value,
customer and cost for continuous im-
provement. It should be the aim of any

organization that wants to incorporate a
constancy of purpose in making everything it does better.
Two case studies

Aerospace production facility. The
concept that served as the basis for the
theory of affordability emerged in 2007
during the early part of a project at a major defense aerospace production facility
in California. That plant, even though
it produced an excellent product, was
scheduled to close in August 2010. Its
role at that time was only to fulfll the
product replacement and sustainment
needs of its customer, the U.S. Department of Defense.
The improvement team aimed to incorporate lean methods and behaviors as
part of an ongoing corporate endeavor
of continuous improvement. The only
customer for this product was the U.S.
Department of Defense, and the product
was an advanced version of an aircraft
frst released in 1978.
The project and program became
known as Affordability. It provided
a purpose and target consisting of the
primary components of value, customer

and cost. The plan was to deploy lean
over a three-year period to encompass
all facets of the organization. The product was the Northrop Grumman F/A18 E, F and G models, used primarily
by the U.S. Navy and Marine Corps. I
helped provide training for the project,
and going in, we didnt know that lean
efforts had failed at that plant in 2000,
2002 and 2004.
This time, however, Northrop
Grumman program manager Dave
Armbruster, who formulated the transformation idea, had the full support of
George Vardoulakis, the newly appointed senior vice president of the division. In fact, Armbruster and Vardoulakis were two of our frst dedicated and
committed participants during project
startup in May 2007.
The approach involved one week of
training and development, including
defnition, design and project charter
for improving a select process area of
the organization. A follow-up week
a month later enabled more advanced
development and celebration of project
completion.
41

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Industrial Engineer

Engineering and management systems at work

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