Sharpening the Axe

Abraham Lincoln taught the value of adequate preparation when he said, “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” By nature and training, quality inspectors are focused on verifying the correctness of a product. A traditional inspector at the Lincoln Timber Company might have dutifully marked in her audit log the date and time, the type and size of tree, followed by the comment, “Cut down.”

But Honest Abe would have advised her to take a closer look at the tools and process used to complete the job. [Read more…]

Emerging Trends in Facilities Management

Manufacturing companies are struggling with the persistent and growing problem of finding employees with the skills needed to sustain and grow their businesses. This problem is commonly called the “skills gap.” Experts estimate that this skills gap may leave 2.4 million manufacturing positions unfilled through 2028, with a potential economic impact of $2.5 trillion (Deloitte 2018).

One of the key drivers of this gap is the rapid influx of technology into every aspect of manufacturing. New technology of course, requires new skills. In a 2019 article published by McKinsey, analysts identified six emerging trends in facilities management, each requiring new skills and each offering opportunities for career growth. (Adhikari, 2019) [Read more…]

Converting A Capability Index to PPM Defective

One of the most common questions I get from students in my Process Capability Class is, how can I use the capability index from my process to approximate a defect level for my process? [Read more…]

Profit, Profit, and More Profit

One of the common misunderstandings about business profit among non-finance professionals is that it there is more than one way to define it.

At its core, profit is calculated as Revenue minus Costs. If you bought a bicycle at a yard sale for $50, then sold it a week later on Craigslist for $80, your profit is $30. In a simple transaction, profit is easily understood. But within an organization, different types of profits have to be defined to better understand the flow of money through it. [Read more…]

The Value of Transferrable Skills

Several times during my career, as I’ve listened across the interview table to an eager and aspiring job candidate, I’ve realized this person has very few skills that will readily transfer into the position I’m offering. They spent years working at their previous company. But how much work will immediately apply to our open position. And conversely, how much work will be required to get them up to speed? And in that moment, I mentally moved them to the bottom of my “viable candidates” list. Why? Because that candidate has too few transferrable skills. [Read more…]

Risk-Based Analysis of Random Variables

Business today is more competitive than ever. As a result, successful business leaders often need to make quick decisions with less than complete data. The wrong decision could result in significant losses, layoffs, or worse. This is where quality professionals and other data-savvy specialists can offer some assistance: by making the best analysis possible given the available data. [Read more…]

Common Mistakes in a Capital Equipment Justification

Return on Investment Analysis (ROIA), sometimes referred to as Capital Equipment Justification, is the process of building and analyzing a financial model for the purpose of determining the net financial contribution of obtaining a major investment like a factory building or piece of production equipment.

ROIA is the link that connect the brilliant ideas of makers–the engineers, designers and builders—to the goals of the managers who hold organization’s purse strings. When thoroughly conducted, ROIA aligns the best estimates of the revenues and expenses related to a potential purchase with the years in which they will occur.

[Read more…]

What are the Best Reference Books for Quality Engineers?

In this age of infinite information at our fingertips, it seems that fewer people are finding reference books and investing in their own libraries. After all, googling whatever’s on your mind is free and easy. But books, especially reference books and textbooks, still have a necessary place in our information age. [Read more…]

Return on Investment Analysis for Engineering Managers

A commonly encountered fork in the career road for many successful engineers is to a) continue engineering or b) manage others who engineer. To continue engineering is an obvious choice, and an often desired one. [Read more…]