Posts Tagged ‘quality’

To Pixar’s Ed Catmull, managing innovation means turning process control on its head

Thursday, April 22nd, 2010

Scott Berkun did a great job summarizing a talk Ed Catmull gave at a recent Economist conference. In Scott’s post were several transcriptions, one of which stopped me in my tracks:


The notion that you’re trying to control the process and prevent error screws things up. We all know the saying it’s better to ask for forgiveness than permission. And everyone knows that, but I think there is a corollary: if everyone is trying to prevent error, it screws things up. It’s better to fix problems than to prevent them.

W. Edwards Deming must be spinning in his grave. Catmull is saying precisely the opposite of what Deming, Juran and others began preaching in the years after World War II and which became ubiquitous in the 1980s and 1990s. The quality gurus taught us that detecting errors in manufactured products after they had occurred was expensive and wasteful. It was far better to identify problems as they occurred, “pulling the andon cord” if necessary to isolate and solve problems so that superior quality was baked into the product throughout the process, not created in a later inspection step.

This was a brilliant insight and helped revolutionize manufacturing, enabling just-in-time inventory, lean production and Six Sigma. But something else happened. Six-Sigma-like quailty processes were extended to processes like marketing, sales, product development, etc., processes in which variance was not necessarily a bug (in some cases it was a very valuable feature).

Catmull’s business is the polar opposite of the high-precision world of mass manufacturing. As he says in the interview, during the beginning of a film development process, “everything is broken.” You can’t measure conformity with specs because there are no specs. And variability is essential to the process. Only by putting lots and lots of wild ideas into the top of the development funnel do you have a chance to come out the other end with a work of art.

So his words are very helpful to think of when we are working with our business. Is this a conformity-based process? Is error bad? Or is it an artistic process, in which error is inevitable and, in fact, essential? When is it the situation of, “if everyone is trying to prevent error, it screws things up. It’s better to fix problems than to prevent them”?

The entire interview is here (the section I quoted is near the very end):

Related posts:
Processes as art and science
From the Mistake Bank: Make a mistake, get promoted

Great blog debates – Toyota edition

Friday, March 12th, 2010

I was really disturbed last week to read in HBR.org Jeffrey Liker’s otherworldly appraisal of the Toyota situation (”The Wrong Lessons From Toyota – And the Truth“. Reading more like a paid advertisement than a blog post, Liker, the author of “The Toyota Way,” minimized the complaints of Toyota customers, wrote that 2 million recalls actually represented only 10 instances of problems, and, in general, made a reader feel Liker was from outer space, rather than the University of Michigan.

Thankfully, a few days later, also in HBR.org, Robert Coles eviscerated Liker’s account, point by point (”No Big Quality Problems at Toyota?“.

Finally, yesterday HBR.org published a post by Joel Kurtzman, a consultant who had worked with Toyota in the 1970s, as it was still establishing its North American business. In “Toyota’s Problems Start At The Top,” Kurtzman does not take on Liker’s post directly, but instead contrasts Toyota’s leadership today with what he knew from their earlier days.

This has been fascinating. Blogging has brought a spirited debate about an important business subject out into the open. If Liker’s post had instead been a New York Times op-ed, any response would have been a heavily condensed letter to the editor, not something of equal prominence. It certainly wouldn’t have spawned dozens of public comments. And by sharing multiple viewpoints of experts with varying experiences and specialties, HBR.org has shown why new media, rather than necessarily being watered down, sloppy and amateurish, is, in many cases, far superior to the old.

If you read this blog, you could have seen Toyota’s problems coming…

Thursday, February 4th, 2010

Does anyone remember this post from nearly 3 years ago?

Toyota: The Inevitable Decline Starts Now
18 Feb 2007

It’s Toyota’s PR person’s dream: a front-page story in the Sunday New York Times magazine (by Jon Gertner), depicting your company as a comic-book superhero, slaying its competitors amid exclamatory sound effects (VVRRRMM!). And the article’s teaser hailing your company as not only “not only the best automaker in the world but also maybe the best corporation.”

The PR dream is the executive’s nightmare. Not only is it difficult to build from the pinnacle Toyota has reached; it’s impossible. The life cycle of industry titans lasts decades, but a life cycle it is. Ask NCR, Kodak, Xerox, Western Union, Sony.

Ask General Motors.

Forces beyond those under the control of any corporation conspire to bring it down, once it’s reached such an apex. The forces are shifts in demographics, culture, science–more than technology. Somewhere out there, those forces are at work, humming below the range of hearing, undermining the business model that Toyota has perfected over the past fifty years.

And, no, it won’t be a combined GM-Chrysler that eventually humbles Toyota. The US auto companies are deader than dead as far as the future’s concerned. Instead it will be a new company, perhaps born in a rural area not unlike Toyota’s home, failing humbly, learning lessons, remaining persistent, getting better, creating a vision for the far future, a vision far beyond the passenger automobile. Not unlike what Toyota itself once did.

Who are they? We’ll know in twenty years’ time.

(Illustration by Nathan Fox for the New York Times)

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