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Reflections On Excellence:: R. Keith Mobley'S 15 Laws For Continuous Improvement
Reflections On Excellence:: R. Keith Mobley'S 15 Laws For Continuous Improvement
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All things are possible if you are willing to roll up your sleeves and do it.
At the cajoling of friends and associates, this is the first in a series of letters that will share my experience and observations gleaned from
a career devoted to continuous improvement in manufacturing. If nothing else, almost 50 years of involvement at all levels of plant and
corporate management has shown me what does not work and hopefully what is needed to be successful and competitive.
As the oldest son of a millwright, the official start of my career was working the night shift as a maintenance technician to pay for my
education. I was introduced to the business world by stories my father shared about his perception of management and how its baling
wires and band aid mentality destroyed equipment and morale. This perception seemed to be confirmed when viewed through the eyes
of an 18 year old engineering student.
After college, my career evolved much quicker than most growing from a first job as a plant engineer to plant manager at 25, V.P.
Engineering and Manufacturing at 30, and E.V.P and C.O.O. at 40. Looking for even more of a challenge, I have spent the past 27 years
helping clients around the world transform and achieve their full potential.
Two factors are responsible for my fast-track growth. First, a God-given talent for seeing beyond the surface conditions and truly
understanding the underlying cause of problems and factors that limit performance has been the cornerstone of my growth and success.
I have dedicated my life to honing what was given and using it to its best advantage.
The second factor was pure, dumb luck. When I needed it the most, I had the opportunity to meet and work with three gifted men who
also had the insight to understand what companies need to succeed. Dr. Edwards Deming, Philip Crosby and Joseph Juran helped me to
focus my vision on how to create a sustainable, highly successful company. I treasure the education and mentoring that these gentlemen
provided to a brash, perhaps egotistical, young man. Without them, my career would have been quite different.
Now, as I too quickly near the end of my career, it is time to share as much as I can with others and this series of letters is one avenue for
sharing what I have learned. As you know, I live to worknothing gives me more pleasure. At 67 I must face the realization that no one lives
forever, but I am still convinced that we can create legacies that do. While I dont presume to be on the same level as my mentors, creating
a legacy is important to me. Hopefully, the lessons that I have learned the hard way will help and in some small way be my legacy.
In this series of letters, titled Reflections on Excellence, I will share my observations of the characteristics common to all highly successful
companies; how they were able to overcome the myriad problems that limit performance; and the pitfalls that should be avoided in your
journey to sustainable world-class status. I think that these characteristics may surprise you. They are not complex or sophisticated. In fact,
most are common sense and cost nothing to implement.
Let me share an example. A few years ago we evaluated the performance of a food processing plant and found that their asset utilization
was 27%. They controlled 70% market share, but with only a marginal operating profit. When we sat down to discuss these and other
issues, the client could not or would not accept that low utilization was a problem. Once this was overcome, we tried to discuss possible
solutions that would better utilize their installed capacity and improve their operating profit. The client was adamant that nothing could be
done. We suggested private labeled products as a means to increase utilization; exporting to larger markets; and consolidating plants to
match their footprint to demand. For each solution the client had 101 reasons it would not work.
It took two years of almost constant education, but the client finally moved away from their it cannot be done attitude. They are
exporting products, producing private brands for the domestic market and have consolidated plants to eliminate duplication. The
result is a much-improved operating profit and positive growth trend that should take them to the next level.
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His time on the floor was essential for two reasons. First, the
simple fact that John cared enough to spend his time on the plant
floor listening and learning about the issues and problems that
impacted the workforces ability to meet performance standards
had a positive impact on everyone. The key to his success was that
he really listened and learned.
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If you are not too far removed from your days on the factory
floor or a true member of the workforce, try to remember what it was like to be on the receiving end of these mandated changes. How did
you like being told that you must change the way to think, the way your work is to be performed, and how your worth would be measured?
Couple this with your experience with all of the previous changes that invariably led to workforce reductions, expansion of workload and a
myriad of other negative impacts on your work life. What do you thinkwill mandated change really change anything?
Over my career, I have tried or been involved in every possible approach of effecting sustainable cultural change. Most of these early
attempts, patterned after my interpretation of popular methodology, failed. While we could create short-term improvement and gain the
appearance of change, the workforce would revert to its old habits as soon as management pressure was removed. As we progressed, we
tried everything from threats to incentives to get the workforce to accept the changes that we as management thought necessary to meet
business goals. Nothing seemed to gain traction with the workforce.
Three epiphanies, one quickly following the other, finally showed the way to successful change:
Identify true attributes of change: When I looked back at the changes we had attempted, it became clear that too often we were
attempting to change the wrong things. We were trying to fix systemic or infrastructural problems by forcing cost reductions, elimination
of overtime and other cosmetic changes that did little other than alienate the workforce. I remember sitting in a leadership team meeting
years ago. Around the table sat 21 vice presidents discussing a reduction in the hourly workforce. Business had not been good and we
were falling below our business goals. The obvious solution was to reduce the hourly workforce to compensateright? At that point in my
career, I was responsible for the manufacturing organization and knew we could not meet demand with the reduced workforce that was
being suggested. As an alternative, I suggested that three of usthe vice presidentsresign instead of cutting the workforce. Eliminating
three vice presidents would have the same impact on our bottom line and still support our ability to meet customer demand. What do you
think happened?
Continued on next page
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To be effective, change
must be at the individual
level. Each member of the
workforceno matter how
significant their rolemust
choose to change the way
they think and behave before
the work culture can change.
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The first step toward solving a problem is to acknowledge you have one.
Recently I rediscovered a passion that has been dormant for too longI returned to the classroom to lead a group of business leaders
through a year-long workshop that will prepare them to lead their companies on the journey to excellence. I had forgotten just how much
helping others really means to me. Now that this passion has been rekindled, more of my time will be allocated to the classroom.
Failures of cooperation: A fundamental lack of cooperation and communication between individuals and groups within firms and across
the supply chain has directly impacted our effectiveness. We all joke about the adversarial relationship between plant functions, such
as maintenance and production and fail to recognize just how much impact this lack of cooperation and coordination has on our ability
to compete and win market share. Recently, I visited an operation that not only had vertical silos (functions) that would not
communicateat any levelwith other silos but would not do so within the silos. Everyone held information close and refused to
share even the simplest data with others. Is it any surprise that this operation is losing tens of millions each year?
Continued on next page
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The first step toward solving a problem is to acknowledge you have one.
Continued from previous page
Government and industry at cross-purposes: The report cited the kinds of government interventionrather than the amount of
itthat have hurt productivity. We are the most regulated country in the world and these restrictions do adversely affect our ability to be
competitive in the global market.
No one can disagree with the deficiencies identified by the study. They should be obvious to anyone who can look inward and
dispassionately evaluate their companys current state. Is it depressing? Yes. Should we throw up our hands in defeat? What do you think?
The study countered these deficiencies with five imperatives that would at least begin the journey back to our once premier position as the
global manufacturing leader. Like the deficiencies, these recommendations are clear and achievable.
New manufacturing fundamentals: If we want to regain our ability to compete, we must rethink and change the way we evaluate and
manage our operations. The focus must shift from short-term, solely financial performance to long-term survivability and profitability. Shortterm profits may well suffer, but we must build a strong foundation by investing in the future. This shift in culture will not be easy. It has
become so deeply ingrained into the corporate psyche that change will take timeperhaps too much time.
New economic citizenship: We must increase the technological competence of our workforceat all levels. We cannot count on shortterm solutions to the failures in our education system; we must invest in direct training of our existing workforce and establish viable means
to grow our future workforces. Teaming with community colleges, technical schools and creation of in-house training capabilities is no
longer optionalit is a fundamental requirement for survival.
Blend cooperation and individualism: Elimination of variability in the way that we identify, plan, manage and execute the myriad
of activities required by a best-in-class operation is essential; but survival also depends on innovation and continuous improvement.
Successful companies must develop a culture that balances the need for standardization and the individualism needed to drive innovation
and improvement. This must include replacing functional silos with a fully integrated operation where all share a single vision and work
seamlessly together to accomplish a common goal.
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Mobleys 10 TH Law:
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When I state, as I often do, that I am basically lazy, those who know me are incredulous. They know that my work is constant and almost
continuous. What they do not understand is that when you work smart, it is not stressful or tiringits actually quite enjoyable, even fun.
Have you ever observed an operator or maintenance technician fight a problem until the symptoms disappeared only to have the same
problem occur lateroften repeating this cycle for weeks or even months? This is a too-frequent example of working hard, not smart. We
too often mistake activity for value-added work, in this case problem-solving.
One of my favorite examples of working hard not smart
comes from a plate glass plant. I had the opportunity to
evaluate the effectiveness of their operation, including
maintenance. While reviewing their maintenance logs,
one shift stood out. Eight times during the midnight shift,
the on-duty maintenance technician was called to repair a
robot that unloaded plate glass from the production line.
He had to walk from his shop to the robotabout one-half
mile round tripto respond to each call. What caught my
attention was the action taken on each of the trips. In each
case, the technician reset the breaker and returned to his
shop. Perhaps that is an appropriate action on the first call. Surely one would recognize that something was causing the breaker fault
on the subsequent seven calls; but apparently not. On the following shift, a different maintenance technician responded to the ninth call
and found the mechanical binding that was the source of the repeated trips. In this example, working smart would be to trouble-shoot the
problem on the first call and prevent the subsequent calls.
Working hard is not a bad thing. In fact it is the foundation of every successful person and organization. But simply working hard is not
enough. It is fascinating to watch the frenetic activities that too many think is productive work. Another of my favorite examples is budget
development. The norm seems to be to consume the third and fourth quarter of each fiscal year developing the budget for the following
year. Hours upon hours of key employees time is consumed by
this one annual event. The sad part is that the budgets are too
There is absolutely no shame
often arbitrary rather than data or fact-based. We all know that
budgets are a recurring requirement of any business, so why not
in asking for help. No one can
automate the process and eliminate the excessive labor-hours that
know everything or be the
we offer up to the budget god each year? If each of the functional
groups that make up a company are effectively managing and
expert in every facet of the
measuring their operations, creating next years budget should be
a non-event.
business world.
Here are my fundamentals for working smart:
Plan before you act: One trait that has helped me more than any other is that I rarely do anything without a reason. Everything one
does should have a clear objective and your actions should be carefully evaluated before they are executed.
Use the 80/20 rule: As an engineer, this was one of the hardest traits for me. There are always many different ways to achieve a
desired outcome, but only one that will accomplish the objective with the least effort and investment of time and money. You must also
know when to stop80% is often perfectly acceptable.
Automate: If you know that a task or activity is recurring, create a work aida toolthat will eliminate as many of the repetitive
activities as possible. Those who know me accuse me of having a tool for everythingan exaggeration, but not by much.
Ask for help: There is absolutely no shame in asking for help. No one can know everything or be the expert in every facet of the
business world. Asking for help from others will let you accomplish your objectives much more quicklyand with better results.
Always look for a better way: As my father said, Son, if you have done anything the same way for years, odds are there is a better
way. Good advice then and now. Never restrict yourself to a certain set of rules just to maintain status quo. Think outside the box and f
find better, more efficient ways to accomplish your objective.
When you work smart, work can be enjoyableeven fun. It certainly eliminates much of the frustration and fatigue that are the outcome of
working hard. Take a hard look at yourself. Are you working smart?
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It has been too long since my last letter, but 2011 closed with a burst of new problems with dire consequences that mandated immediate
attention. I am happy to tell you that all of these have been resolved and our clients enter 2012 with a much brighter future.
Let me start off the new year by sharing news that I received from a protg in South America. I had the opportunity to work with John
about five years ago and over a three-year period was able to share our approach to Reliability Excellence. As we applied this approach,
his company an alumina refinery achieved a first-year reduction in operating cost of more than $11M and firmly established the
foundation for continuous improvement. The refinery was well on its way to excellence. About three years ago, John was lured away from
the refinery by another company in the same country. They had heard of the refinerys success and wanted John to duplicate it for them.
When he accepted the position, everyone on his new employers leadership team was excited and eager for changeor were they?
One of my best Christmas presents in 2011 was an email from John sharing the results of his efforts. Without any support from senior
management and despite resistance from a bureaucratic organization, he was able to reduce operating cost by more than $9M and
identified an additional $4.5M that would be enjoyed in the first quarter of 2012. He took some pride in reporting this to his management
team and tactfully reminding them of the $25M potential that achieving Reliability Excellence would provide.
Needless to say, I am proud to have been a part of Johns introduction to and education in Reliability Excellence. His success in applying
what he learned is commendable, but I am most proud of his adherence to Mobleys 12th Law Never, never, never give up.
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Everyone has become so afraid of failure that they will not take
any risk. This translates into maintain status quodo not change
anything and you will not be blamed.
Change is inevitable; one cannot go through life without adapting, without changing. We begin life totally dependent on others to care for
us, over time reach some level of independence and as we near the end perhaps become dependent upon others again. Common sense
should make it clear that it is no different in business. If there is any doubt, look at commercial air travel. In the 1950s air travel from New
York to Paris took 20 plus hours and two refueling stops on a TWA Constellation, a four-engine, propeller-driven aircraft. In the 1960s,
Pan Am offered direct flights using their new 707 jet aircraft in eight hours. In the intervening years, both TWA and Pan AM failed to adapt
to the changing market and as a result no longer exist, yet another example of change or perish.
My reference library is full of books, many written before 1970, that tout the tenets of success. Almost all reference example companies
that support their theories of how a world-class company should be run. You know the names: AT&T, General Motors, TWA, Pan Am and
so on. These were the shining examples of how to be successful when I entered the business world; but look at them today. Many no
longer exist; others retain the name but are no longer the world leader that they once were. What happened? The one common theme for
all of them is that they failed to adapt. They failed to recognize the changes that were taking place all around them. They failed to change.
How about you and your company? Will you change or perish?
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I know what you are thinking; its the same rationale that we get
from almost all clients. You dont understand. We cannot wait.
You and they will cite tens or hundreds of reasonsranging from
operating profit to loss of market shareas reasons an immediate
solution is needed. While many of these arguments are based
in reality, quick fixes and permanent resolutions are diametric
opposites. The conundrum is that you are right; many companies
cannot wait. The problems have become critical and survival is a
real concern. How do you resolve both the short-term need and
a permanent change that will prevent a recurrence and assure
long-term survivability?
There is no short cut to the permanent solution. Patience and absolute commitment to doing it right is not optional. With that said, there
is no reason that one cannot integrate a parallel, more tactical effort that can be used to stop or at least slow down the bleeding. In most
cases, one can find problems or issues that can be resolved using viable tactical or technical efforts. For example, we were able to find
$11.3MM in unnecessary costs in a refinery that could be saved by changing the control logica quick fix that could, and most likely
would, reoccur without a permanent change in the way these logics are developed. There really is not any reason that temporary fixes
cannot be integrated into the journey to a permanent solution. However, one must understand that temporary fixes are just thattemporary.
Do not let impatience overrule logic. Do not let the short-term pressures, no matter how grave, prevent permanent solutions to the limiting
factors that prevent sustainable best-in-class performance.
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