Throughput

Mr. Lean (aka Harry Wood)

2009-07-31T11:11:00.000-07:00

"What we have here is,
failure to communicate."

Guess what?
Saving money is a good thing!

I am pleased to announce that Throughput.us LLC has added a consultant to help with those clients that seek to reduce costs and eliminate waste. Harry Wood. Here are some highligths from his last assignment.

Cost reduction specialist in fabrication, welding, and assembly.
Reduced costs and improved throughput from design to assembly.
Completed projects exceeding $1MM in annual savings.

Specialties
Cost reduction: plan, direct, and coordinate waste reduction and Kanbans
Manufacturing cost reduction
LEAN accounting
Engineering Changes
Production scheduling
Purchasing and Vendor Management.
Capital Equipment justification projects
Proficient with Access, Excel, SmartCam, Optimation, JDEdwards, and Crystal Report Writer
Knowledgeable in: ProE, SDRC, AutoCad

But the real question is quite simple: What can he do for your operation?

Give him a call to find out.

Harry Wood
Senior Lean Facilitator
+1 843.564.4754
hdwood@throughput.us

There has never been a better time to cut waste!

And no better way to communicate it: put Harry to work just as soon as you decide to change direction and take charge of your expenses.

©2009 Throughput.us LLC. All rights reserved.

The Right People

2009-07-28T12:07:00.000-07:00

Stop. Hang up the phone. Close the Door.

Minutes ago I received a phone call from a client. He asked a simple question. Basically, he wanted to know if I wanted to help create another stream of income. For both of us.

Duh!

I know people sitting around, reading the paper, wondering why the phones are not ringing... or wondering where the foot traffic is, that is NOT in their store... or wondering why the hits are not happening fast enough on their web site.

You need a plan. Some execution moxie. Passion.

But mostly, you need a dream. I was re-reading portions of Carly Fiorina's book (Tough Choices) this morning over my coffee, and noticed a portion where she talks about a leadership role at a new posting, where she was a bit out of her element. So she dove into the system to better understand it and discovered huge mistakes in the invoices that her department was paying each month (yes, this is an oversimplification; I needed to make the context fit the space available).

So she took action.

Are you "The Right Team Member"? Or, do you sit around and complain? Read the paper, and talk of the "good old days"?

Carly dreamed of making a difference. Everywhere she went.

I left the world of IT/IS for several reasons, but one was the fact that any gains I created in the IT/IS arena were soon lost in the scheme of the larger whole. My efforts were often wasted or made of little impact by wrong-headed thinking at higher levels in the organization. How sad.

As a business consultant, I now only work on the bigger picture (and as most of you know, I focus solely on the weakest link in every business or startup). Your "bigger picture" is much brighter when the "right" people are on board, contributing without thought of "who will get the credit?"

Consider the importance of systems thinking with regard to your cash flow. Got the right people addressing it? If not, why not?

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

NOTE: This is a re-post from August 28, 2008. It was that good!

©2009 Throughput.us LLC. All rights reserved.

Results based Consulting

2008-12-05T10:08:00.001-08:00

Just under six minutes and still too short!

This is a great short on the power of communicating the right message for the desired results. How important are results to your efforts?

Worth investing five minutes and fifty-five seconds?

I thought so.

In over twenty years of helping business owners reach their goals, I have yet to find a sport that is more exciting day in and day out. Sure, jumping on the vRod and blasting down to Daytona Beach is a lot of fun. But that adventure comes to and end. Business adventures should not end.

There are only better exit strategies.

How often to do you seek outside advice? If you are like most business owners (of privately held firms in the United States of America), not enough.

Sure, there is that entertaining Mike Judge film, Office Space. But compare it to this movie short about helping others to achieve their goals. If the guys you are working with are more like Bob and Bob, it is time for a change.

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
ski@throughput.us
(330) 432-3533

©2008 Throughput.us LLC. All rights reserved.

Producing Project Results :: Part 2

2008-11-02T05:38:00.000-08:00

LinkedIn is a great tool

Yesterday, someone posted a question about projects. You know the kind, "What do I do about XYZ?" Where in this case, XYZ was along the lines that we only hit about 50% of goal. We expected to complete 100 projects this past year but only delivered on 48% of the projects.

I quickly see where this might not be much of an issue, if the people on the various projects were only paid 48% of their promised wages. If we could reduce payment on G&A expenses likewise. Leasehold and equipment payments too.

How realistic is that approach?

Yea, I did not think so either. The query went on to say how "matrixed" the organization is, and mentioned an approach that was under consideration. How sad. If this happens (by acccident) to describe your organization as well, you have my prayers.

Why?

First, let me tell a short story. Remember the "red pill, blue pill" from the movie The Matrix? That was a simple test to determine if a person wanted to know the truth. The whole (and very painful) truth, and nothing but the truth. Later in the movie, one of the main characters says, "Man, I wish I had picked the blue pill."

Why?

As Jack Nicholson told Tom Criuse, "You want the truth? You can't handle the truth!"

Are you sitting down? If you want the truth (the red pill), once you know the truth, you can no longer claim ignorance. No longer will you be able to place blame everywhere but at the source. When otherwise well-meaning colleagues say, "Look over there. That is our problem." You will not be able to blindly follow along.

Why?

You will know the truth. Yes, it should set you free. But will it? Probably not. In many cases, you will attempt to explain it away. In others case, like the 80% (80/20 rule) of your peers, you will say, "That does not apply to our situation." I understand. You would be wrong, but I understand your hope that you are somehow different. Why not assume for a minute or two that it does apply?

How liberating.

How refreshing. What if the answer I am about to share is in fact your answer? What if you embraced it whole-heartedly? What if you attempted to verify (or disqualify) my assertion?

That is my simple request.

Ready? Here it comes: Eliminate bad multitasking

I have proof that 80% of the companies in America (probably the world) can double throughput of projects by attacking this simple (but not easy) challenge. Look back on our example: the goal was to accomplish 100 completed projects this year. Are you still seated?

I am telling you that you could have completed 200 projects.

With the same exact resources. Plus, those projects would have been completed on time. Within budget. With all the promised functionality. Sound too good to be true?

Then take the blue pill.

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
ski@throughput.us
(330) 432-3533

P.S. Remember (and never forget!) the ulimate definition of throughput: more money in your pocket now, and even more money in your pockets in the future. As the wise old sage said, "You do not know, what you do not know." I would add, "But, do you want to know?"

©2008 Throughput.us LLC. All rights reserved.

How Big is Too Big?

2008-10-28T16:50:00.000-07:00

"I've been following you on the web..."

"And I wondered if we could talk about a possible position I have open for a Constraints Management consultant?"

You have to love those phone calls. My response, "Sure!"

But as it turned out, it was for a publicly traded entity. Not my cup of tea. It is not about size, but it has everything to do with control. If one were to properly chart "command and control" in a public "for profit" business, it is my opinion that you would find a large number of disconnects.

"Tell me how you measure me, and I will show you my performance."

Makes perfect sense, however, it is anything but common practice where the focus is on "making the quarterly numbers." Especially in this economic climate.

Let me remind my readers of the perfect gig (at least to me):

Private USA "for profit" corporation
All locations within continental USA
Might be a startup with some funding
Might be first or second generation, family owned
Might be manufacturing or distribution or retail
Gross annual revenue < $100MM

Sound boring? Great. Companies that fit this mold are anything but... yet, I can understand your thinking so. Again, "big" is not measured simply in terms of revenues or workforce, I love to seek out those companies with big opportunity for growth. Maybe a "turn around" opportunity.

As I write this, I am in Northeast Ohio for an extended period. The best candidates for my services are located here as well. But Hilton Head Island, Las Vegas and Ft. Lauderdale might work as well. With enough incentive (can you say Cash?) a lot of other spots might make sense too.

But here is the sixty-four thousand dollar ($64,000.00) question:

"Hey SKI, we have done a lot of things right, but do not seem able to break through. In fact, sales are headed in the wrong direction. Profit margins too. We have a great workforce, and we know that lay offs are wrong, but we just don't know what to do. Can you help?"

Yes. I can help.

See, business is a lot like a game of chess.

You have to "see" several moves into the future. Think. Think some more, in fact, think a lot more before taking action. Know what might happen if you choose a given strategy. Know what happens if you select a different strategy. Know the possibilities that might result from the merging of two or more strategies. Know what tactics might make sense. Know what variations in implementation might be required. But I digress...

The more one is willing to think logically, the better the results.

Need help? Call me.

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
ski@throughput.us
(330) 432-3533

P.S. Remember (and never forget!) my definition of throughput: more money in your pocket now, and even more money in your pockets in the future.

©2008 Throughput.us LLC. All rights reserved.

Constraints: Fact or Theory?

2008-10-08T07:34:00.000-07:00

Do you experience unlimited Throughput?

One of the biggest challenges in the life of a throughput guru is battling the unseen forces at work in the mind of the prospect. Please recall that a suspect is everyone that should have a need for your goods or services. A prospect is someone that has expressed interest in one or more of your offerings.

A number of years ago I watch an unlikely team win the World Series in Major League Baseball. The Arizona Diamondbacks. After that game I wrote a short article to explain the win from my vantage point. Question: Do you appreciate how important the concept of "vantage point" is to your success? A topic for another day. I tend to digress...

Curt Schilling: Mr. November, 2001 (wikipedia)

Recently I was in a discussion with a business leader and the subject of theories came up. Again. As it should. In the scientific world, the concept of a working theory makes a lot of sense. However, that does not play well on Main Street. Most every consulting project over the last ten years started something like, "I don't care about any theories, just give me the facts!"

In November 2001, H. William Dettmer had yet to discover Colonel John Boyd. In fact, I had yet to complete my training in the Logical Thinking Process under Dettmer's cautious tutorship. But I wrote this article describing what I had observed on the ball diamond. In the light of my knowledge at that time.

Mr. November: Curt Schilling (12k PDF)

Still a great read today... especially when those Diamondbacks went in all sorts of different directions and some like Craig Counsell went on to earn at least one more World Series title and ring. Some great players spend their whole career in the hunt for such rewards and come up empty handed. Too bad about the Brewers this year, Craig. You made some great plays! But I digress...

Fast forward to 2008. Dettmer wrote and released Strategic Navigation. I wrote and released Purple Curve Effect. Chet Richards wrote and released Certain to Win.

Today, Goldratt's Theory of Constraints (TOC) has IMNSHO evolved into Constraints Management Model (CMM). By removing the phrase "theory" from a great body of work, and combining the hard work and brilliance of Colonel John Boyd, we now have a proven (thoroughly tested in every imaginable endeavor) set of tools to solve your every business challenge.

I am now a fan of Lean Six Sigma (LSS). But have found the real power (and therefore), the results available by using CMM to focus one's efforts like LSS or Deming's Total Quality Management (TQM) or as the U.S. Marine Corps calls it, Total Quality Leadership (TQL) are producing even greater results than predicted. In some cases over an 80% increase in throughput.

So, as the Prophet of old said:

"Do not despise your small beginnings."

However, do take a few minutes to understand how "best practices" evolve.

And do write me if I you would love to debate the future of Constraints Management Model.

Want to increase your Throughput? Start by reading and/or searching my web site and my blog (SKI on Throughput). Pick up one of the many books that I have reviewed and recommended. Then, when the light goes on, give me a call. I am always looking for more ways to help more people create more throughput... as Dan Ackroyd said in The Great Outdoors, "Its what I do. Its what I do!"

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
ski@throughput.us
(330) 432-3533

©2008 Throughput.us LLC. All rights reserved.

Pricing :: Part 3

2008-10-01T07:29:00.000-07:00

Market Segments

First, some assumptions for this adventure:

You have been in business more than three years
You are a distributor of goods produced by others
Times are tough and you are losing money

As yes, I know. "Your business is different."

Another day I shall attack just how stupid that statement is, but for now, I agree. No one else on planet earth is like your business. No one else has your people. Nor your exact ideas. Or your equipment. I get it.

Review my assumptions (above)... if you can respond that these three simple statements are true for you today, then you may continue reading this post. Or, if you compete with businesses that would confirm that those three little statements describe their business, you may want to continue to read my thoughts on Pricing when addressing market segmentation. Maybe not. You decide. If you tell me that you are not sure about your competition, then I must ask you to delete my materials from your computer memory banks... and suggest that you quickly enroll in a college or university and take a Business 101 course. ASAP. But I digress...

Of course I could have made this example about companies in the retail space. Or manufacturing. These concepts will for the most part, transcend industries. Or so it has been my experience.

Second, a simple (but not easy) requirement

You have read Part 1 and Part 2 on Pricing and can shake your head in the affirmative that you are in agreement with those posts, and my conclusions. Which is another way of confirming that you have identified the constraint in your business.

Or, you have a guess at the constraint for which you are quite proud. The great thing about Constraints Management Model (CMM) is that if you guess wrong, so what? The systematic approach will quickly identify your error, and direct you to the correct core constraint in record time. In days. In other words, not sure? Guess!

But get moving!

Now, for those still reading, let us dive into market segment pricing. Grab the following list of items. Right now. Do not pass "go" ...

Last year's P&L Statement (if your fiscal year closed in the last 90 days, grab the previous year's P&L)
Last month's P&L Statement
Current Customer List; ranked by Year-to-date Sales

Hopefully you will not need your accountant or CPA to do the following calculation:

Throughput = Total Sales - Totally Variable Costs

For example, consider this chart:

Here, we see that for distributing two products, "P" and "Q", on net sales of $12,000 we generated only $6300 of throughput. In other words, the mix of these two items contributed $6300 to cover the expense of doing business. Expenses like rent, salaries, utilities, etc.

In this example, we actually sold 100 units of "P" and 30 units of "Q" and made $300 profit. Therefore you now know that "P" sold for $90 per unit and "Q" for $100 per unit.

The $64 Question: How to make more money?

What if you learned that your competition had quoted "P" at $110 and "Q" at $130 per unit? How might you use that information? Let us assume that your constraint is the terms from the vendor in your supply chain that provides you with "Q". The vendor of "P" is constantly calling and asking if you can sell more units. And her terms are 2 10 Net 30.

Chaos would best describe the financial market today. Vendor "Q" wants paid in advance. No, not COD, but actually wants paid in advance in order to actually schedule your product for build. I was in that situation at least once. Unless they had my check in hand, they would not schedule production of a key component. Takes scheduling your production line to a whole new level!

Remember that no one wins a price war

So, given the relatively few details in this example, one approach might be to contact the competitor that was offering "P" at $110 and suggest that you have excess capacity and the ability to deliver "P" to them for $50 per unit.

Why?

Look at your costs! Each unit of "P" costs you $45. What are the chances that your existing customer base would refuse to take your product if you made this deal? Zero. Why would they? How would they know? And if the competitor did tell, so what. There are a host of reasons why this segmentation of the market would be to your advantage. And to your competitor.

Take a minute and think through a couple of examples.

This post is getting much longer than expected. In closing, let me point you to the airline industry. Or the hotel business. They call it the "pool side chat." Yes, there is actually a term for the activity of guests asking each other, "How much did you pay for your room?"

Airline passengers too (How much was your ticket?)

These are two industries to study to get a much better grasp on Pricing models.

By the way, if you are in the hotel business, using RevPAR as a decision-making metric will probably put you out of business. But I digress...

Think this post over.

Let me know your reaction.

More to come on Pricing!

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
ski@throughput.us
(330) 432-3533

©2008 Throughput.us LLC. All rights reserved.

Lets talk Pricing :: Part 2

2008-09-27T10:01:00.000-07:00

DO NOT PASS GO :: DO NOT COLLECT $200

Please do not confuse yourself (or me, if you write), please read Part 1 first. Which includes working the P&Q example out for yourself, on paper, showing your work.

Then, this part will make a lot more sense.

Honest

In fact, if you want my help (for free), you may fax me your proof (330.308.0236) of the P&Q and provide your phone number and/or email address and I will follow up. Plus, I will email you a spreadsheet that I use to work P&Q like challenges.

USA Only

NOTE: Anyone following my adventures for more than about ten minutes knows that I must focus in the United States in the short term. I am happy to exchange emails and talk via skype (my ID: TMXhelp) with most anyone anywhere in the free world, but I must limit my travels and therefore the bulk of the clients that I can help, to the USA.

The Answer

If you work the problem to the proper and logical conclusion, you will find that this manufacturing plant can make $300 per week, given the parameters of the P&Q. Working the issues as documented.

A number of clients over the years, have argued that one simply needs to hire another person for the constrained operation. Maybe. Maybe not. On another day, I will wax poetic about personnel issues and employee turnover... but not today.

If you look at your pricing model through the eyes of your sales manager, here is what you would discover:

Q sells at a higher dollar amount
Which means that Q pays more commission
Q does not require a purchase part
Which means no supply chain hassles
Q takes less time to build
Which means that we can produce more

All these factors will lead your sales team to take certain actions, which will lead the company down the wrong path. In fact, you probably have already put the wrong reward system into place!

No laughing matter

Do you see the importance of determining the weakest link in your operation? How can you set policy when you do not know the factors in play? Years ago (right after college), I was the Comptroller for a distribution company. It was in financial trouble when I got there, and my urgings to change direction was not welcome (I left after six months). The owner had started buying the franchises back, and was trying to grow the business from the retail side of the equation.

Wrong headed thinking, at best

His focus was broken and the expense of running numerous high traffic (read: expensive) store fronts was stripping all working capital from the business. He had failed to analyze the business from the holistic (or systems) thinking vantage point. But I digress.

As you now know, the key to P&Q is to produce all 100 units of "P" and back fill with "Q" based on the remaining time available. Which is 30 units of "Q". Based on most compensation plans, the salesman would be demanding all 50 units of "Q" be produced, which would result in a $300 loss per week!

Our second lesson of pricing: learn how to evaluate your whole business! In order to make the best possible decisions. In the case of P&Q, the first step is to align production to take full advantage of the market conditions and your individual strengths.

With my simple PQ.xls file, you would quickly learn that the best mix would be 160 "P" per week and no "Q" and yet, we have demand for 50 "Q" per week. We would make $1200 per week on just "P" if we could increase the demand. Should we throw the "Q" business away?

Never

What if we subcontracted "Q" out to a company that we could trust? If we even made just 5% for handling the bidding and billing processes, that would add another $250 per week to our bottom line!

The point is simple: until you know all the ramifications of your pricing model and the incentives that have been implemented around that strategy, you don't know squat!

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

©2008 Throughput.us LLC. All rights reserved.

Lets talk Pricing

2008-09-27T07:27:00.000-07:00

Are you selling the right Product Mix?

Before one can really answer that question, One must step back and explore the holistic nature of business. Your business.

I preach that business "templates" are just wrong. In 80% of the cases where they are used. Business is dynamic. My business is different from your business. In a past life in the retail flooring business, (as Operations Manager) I preached that we were the market leader.

I preached it to the staff. To my suppliers. On the rare occasion that I interacted with a customer, yep, you guessed it: I preached it to them too! More importantly, I preached it to myself. The only problem was that most people felt that an older (more established) business with more locations was the market leader.

Right up to the day when they closed the doors.

Out of Business

First pricing lesson to learn: You decide your fate. Not your competition. In this family flooring business where I worked for a year, part of our mission statement was a simple statement that we would not (I repeat) not be the low cost provider.

As I have shared before, when I was buying parts for a motorcycle that I bought wrecked, I asked the salesman a simple question: "Is that your best price?" His reply was classic...

"Yes."

Hawaii Mike went on to say that it was his best price, "If you want me to be in business next time you need me." That is what the buyer of that now defunct flooring business did not understand.

Do you?

Eli Goldratt is human. (Me too.) His use of templates might work for him, but they are dangerous in the hands of those less brilliant. Where he preaches "stock answers", I preach dynamic adaptations of those templates. Take his brilliant P&Q Example.

If you want to figure out the absolute best pricing model for your business, you must understand P&Q. Right now, follow this link, and print out the example, then work it out on paper.

Seriously

Until you "get it" (the lesson of P&Q) you cannot change. As Goldratt is found of saying, there is no inherent resistance to change. I agree. His perfect example: the lottery. If you hit the mega millions tonight, you will change your entire life tomorrow. Well okay, 99% of us would. The challenge is that you do not see "pricing" as important as winning the lottery. If you did, you would want to explore the best approaches to pricing in order to make more money.

Happy with Status Quo? Then I am probably not a good source of reading material.

Lets call this post, Part I

Until you stop what you are doing, and work through this example, no one can help you. It is that simple. Oh, is that too direct for you? Sorry.

Life is too short.

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

P.S. If you really are seeking results...

©2008 Throughput.us LLC. All rights reserved.

So, you seek results

2008-09-14T07:14:00.000-07:00

But are you ready to listen?

I am reminded of the old, old story of the great warrior Naaman that goes to visit the Profit in Israel to have his leprosy cured at the behest of his wife's hand maiden (II Kings 5).

"And Elisha sent a messenger unto him, saying, Go and wash in Jordan seven times, and thy flesh shall come again to thee, and thou shalt be clean."

But Naaman was "wroth" with the solution and questioned the Profit on several issues. The method. The setting (or environment) for the procedure. Plus, on some level he was upset at the simplistic nature of the cure: "Go and wash in Jordan seven times."

There must be more to it

No. We learn over and over that obedience is better than sacrifice. But yes, we are all human. It is a tough lesson to learn. Even after you experience the parting of whatever "waters" you are facing at the moment, it is so easy to fall back into disbelief. Especially in business.

Despite consecutive quarters of economic growth in 2008, some Democrats still insist the economy is in a recession. Senator Charles Schumer of New York tells Cybercast News Service, "I think if you ask the average middle class American, they would clearly say we are in a recession."
—Brit Hume, Fox News

Senator Schumer fails to mention that the "average middle class American" has been bombarded by the media calling this turbulent time a recession for over eight months! Although by textbook definition, it is not. (In fact, growth continues to improve significantly each quarter.)

Therefore, I understand when you ignore my advice

Take human nature (as exposed by Naaman's thought process) and throw in some public disbelief (peddled via a variety of channels), and one might easily conclude that tough times are here to stay.

But that is not true

Wrong headed thinking is still, wrong. No matter who or how many agree with the wrong answer. Les Brown loves to quote, "If you think you can't, you can't." As I have shared before, my favorite car salesman looks at life this way: "There is always somebody who needs to buy a car."

"When the student is ready, the teacher will appear"

Another favorite quote. If you awoke this morning, bumped into this article, read it, then went about your day like all the other days before it, then I can be of little help. On the other hand, if you awoke and said to yourself, "Today I will find my answer!"

You just did!

Gravity works whether you understand it and all of its ramifications. Business principals too.

Need a fresh prospective? Give me a call.

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

P.S. If you really are truly seeking results...

©2008 Throughput.us LLC. All rights reserved.

SKI talks Project Management

2008-09-05T15:32:00.000-07:00

Great 60 Second spot on Critical Chain

Just as a manufacturing production line has constraints that prevent unlimited throughput, and therefore, unlimited profits, so do projects.

The Critical Chain Project Management method requires that full attention be devoted to the project's "due date" and by that I mean the first and primary due date. Focus is then applied to ensure that tasks are completed only as necessary to protect the final project due date. The concept of individual tasks finishing on time (or early) or even "late" is not a significant factor in most environments.

Let me repeat: individual task completion dates are not important!

Due Date Performance of the whole Project is the key metric.

Once you approach project modeling from the proper vantage point, it is easy to understand why so many projects are late. Yes, there is a lot more to it (than this blog entry will permit), but the key concept should be easy to grasp.

Project Plan

Consider a project to move one's residence from the present city "A" to city "B" which happens to be in another state over 2,000 miles away. Does it really matter whether you finish the bedroom packing before the laundry room? Usually not. Almost never!

The only date that matters is that the moving truck will arrive on date "X". And everything must be packed, staged and ready to "rock & roll!"

Therefore, your planning tools need revised.

New vision = new approach and new tools.

Simply Results.

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

©2008 Throughput.us LLC. All rights reserved.

Shingo Prize for Critical Chain Project Management

2008-09-03T07:00:00.000-07:00

Tinker Air Force Base earns Praise...

Using Constraints Management tools like Critical Chain Project Management to turbo charge your Lean Six Sigma efforts only make sense. Common sense!

Tinker AFB in Oklahoma earned the Bronze Medallion for the efforts of the B-1B Programmed Depot Maintenance team. Details are provided in the Air Force Material Command newsletter.

"The Shingo award establishes that the B1-B PDM is a world-class operation," said Kim Roe, 76th Aircraft Maintenance Group Bomber Transformation chief. "This award recognizes the mechanics and managers who have shown that critical chain theories are applicable at the depot maintenance level, repair and overhaul process."

SKI heads to Whippany, NJ

2008-09-01T06:05:00.000-07:00

The Raw Speed of Total-Matrix

Date: Tuesday, 16 September, 2008
Time: 8:30 AM to 5:00 PM Fee: $950
Register: +1 973 581 1885
Where: Courtyard Hanover Whippany

157 Route 10 East
Whippany, NJ 07981
The hotel is approximately 1/2 hour from Newark Airport (EWR). For accommodations, please call +1 973 887 8700

What:

This workshop consists of two physical simulations. There is no computing involved. The participants become the simulation. In the morning participants perform six projects, modeling the rules, the decisions, and the behaviors observed in their current organizations. In the afternoon participants perform the same six projects, modeling the rules, the decisions, and the behaviors expected within a Total-Matrix company. The increase in performance is so astounding that almost no one believes it, except for the participants, who experience it.

Featuring Project Management Guru, Tony Rizzo of the Product Development Institute.

Not happy with the results of your projects? You need to get to New Jersey, and, you need to bring the key members of your team. Why? Results. Period.

Do you realize how much time will be wasted if you attend, then try to go back to your leadership and convince them of the truths about project management that you will discover at this workshop? Time you do not have!

Plus, spend a few hours with Tony and I the night before at the Whippany Courtyard Hanover... it will be the most productive workshop that you will ever attend. Ever.

See you there.

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

©2008 Throughput.us LLC. All rights reserved.

The Right Team Member

2008-08-28T12:55:00.001-07:00

Blame Game

2008-08-10T11:56:00.000-07:00

A colleague on twitter tells a tale...

The Blame Game

"Ugly story that's way too common: Top line sales drop, operations suffer first. (Extreme case: Exec w/sales background blames operations.)"

Now what?

Before we examine this issue, lets vote: who do yo blame?

Sales? Or Operations?

Actually, write it down on a piece of paper. Better yet, email me your vote before you read any further! Then give me your thoughts after you read the correct answer.

First things first: Is this within your span of control? For most of us the short answer is "no". This is a great spot to make a simple decision, "Is this work environment for me?" Sadly, most folks are unwilling to explore the ramifications.

Secondly, if it is within your span of control, what is the most effective and rewarding approach? Actually, lets do some role playing. How does the Sales Exec look on the situation?

"I am busting my backside... the economy is tight for our product line at the moment. Our sales team is over-extended, trying to get around to each and every customer, prospect and even a lot of suspects in a massive effort to "put numbers in the hopper!"

Okay, sounds reasonable (on the face of it). No way to fault them. The call sheets are all filled out in great detail. Sales "calls" are up over 10% year to date. Yet sales are off almost 27% for the same period. Plus, it is not just us, our industry is also "off" in excess of 20%.

What say you, operations director?

"We are busting our humps too. Cost cutting measures (mostly due to the spike in fuel costs) are a significant factor in our approach recently. There have been some "minor" products dropped that were not pulling their weight relative to increased costs. And yes, that probably has had the single biggest negative ramifications to overall sales. But employee turnover is also a factor. In order to keep our efficiencies up, we have increased batch sizes and therefore, some shipments have been delayed even across quarterly reporting periods. It cannot be helped. Consider too the fact that sales asked us to expedite a line of products that now sit in the final assembly department, all ready to go, except for the fact that the actual "sale" never closed!"

Get the idea?

It is easy to understand most any debate from our own vantage point. But is that what passes for "leadership" today? I hope not.

The correct answer to this riddle is simple: both parties are right.

But they are right on the wrong question!

Business is a team sport. Consider GM (General Motors). One of the favorite whipping boys of the moment as a result of GM's focus on building gas guzzling trucks and SUVs while gasoline prices exploded past four bucks a gallon.

The CEO is responsible for strategy. But if the emperor has "no clothes" (or a faulty strategy), leaders within the organization must make their concerns known. What is the backup plan? What are the other components of our plan? Do we have too many eggs in one basket?

Lets us hear the conclusion to this matter: blame is counterproductive.

W. Edwards Deming said that success is 94% the by-product of your system. Yea, that is a loose paraphrasing (at best!). No success? Look at your system. Then your assumptions. Then the marketplace and your competition. Apple said it best: "think different!"

Guess what?

Thinking will keep you too busy to blame anyone but yourself.

Then, pick up the phone and call me. Together, lets challenge some of those assumptions that are destroying the bottom line. Lets start by asking the right questions.

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

©2008 Throughput.us LLC. All rights reserved.

SKI on Recruiting

2008-07-20T16:43:00.000-07:00

Scenario reprinted from Purple Curve Effect — SKI's Throughput on Command:

In a perfect world, Suzie the HR Director is going to read this book and say, “Wow!” Then she’ll call a "Throughput" practitioner and say, “Help!”

Great. Suzie wants to fix her department. Let’s help her.

Scenario:

Suzie leaves a phone message for Todd, a Throughput Guru.

He responded in person the very next day, “Hi Suzie. I’m Todd.”

“Oh! Todd. Thanks for stopping by. I guess I was expecting a return phone call. How can you afford to stop in for a free consultation?”

“Well, Grasshopper (a reference to the TV series Kung Fu for those of you who aren’t as addicted to the tube),” Todd grins, “you are not ready for that insight yet. In the meantime, please describe for me any undesirable effects (UDEs) your department is experiencing. Just list a few of the bigger ones, maybe six or seven. No order is required, just mention them as they come to mind.” Todd sees a smile come to Suzie’s face as his ability to help her “on-the-spot” becomes apparent.

Suzie thinks for a moment, “Okay, let’s see. Well the biggest challenge is trying to get everything done since the downsizing. My performance numbers have really slid. It used to take us about ten to twelve resumes per open job requisition to find a suitable person to hire. That number has jumped to more than twenty in the last three months. So, besides being short handed, there is now even more work.”

“Can you think of anything else or, should we interview some of the department personnel?” Todd’s words bring another smile to Suzie’s face.

“Perfect idea.”

Within minutes, Suzie has drawn three employees into her office and they all quickly offer their favorite UDEs. From this list of undesirable effects, it is easy to draw the Current Reality Tree (a logic diagram to understand the present circumstances and there affect on throughput), logically exploring the cause-and-effect issues that are driving the staff crazy.

Examination of the Current Reality Tree leads to the conflict or constraint that is the largest contributor to all their grief. Once issues have all been plotted in black and white, it is easy to spot and understand the core constraint. The one core constraint, when broken, will allow the HR Department to get back ahead of the curve. A true breakthrough!

Real Life Application

When I wrote those words late in 2003, I could not have foreseen the adventure that my consulting life would take, including spending almost six months in Britt, Iowa! But while there as Director of Manufacturing for an American OEM of custom motorcycles, I got to hire a few people. Those that follow my blog (SKI on Throughput) will know that Jim Collins is my hero in the realm of professional recruiting.

His message that, "The right people are your greatest asset" is brilliant.

Where I have been able to help in the recruiting and hiring process, my consulting assignments have performed even better than otherwise possible.

Why?

The right people. In Iowa, it was a painter. Lets call him Steve. Steve had the right attitude ("What can I do to help!")... and plenty of passion and enthusiasm for two! I had made a mistake on ordering gas tanks, a long lead item, and Steve was quick to jump in and make two custom gas tanks to keep production flowing.

Not sure about spending the big bucks to hire me to fix your strategy? Consider starting our adventure to greater throughput by hiring me to recruit that unique talent necessary for that pressing challenge (hidden under that stack of paper!) on the corner of your desk.

If finding and hiring the right person for a challenging role in your company is the weakest link, then you need me on that task. Today. Don't even consider putting this off for another day! Every day you procrastinate is another day your throughput is suffering.

Need recruiting help? Call me. Today.

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

P.S. The PDF of Purple Curve Effect (186 pages) is now available for Free! Paperback version for just $14.00USD plus three bucks S&H...

©2008 Throughput.us LLC. All rights reserved.

Definitive Throughput

2008-07-04T07:54:00.000-07:00

Throughput Accounting (TA) is a subset

However, there is more to the philosophy of "Throughput" than mere accounting. But let us start with TA (as documented on this great wiki page).

TA does not focus on "cost accounting" but rather the "managerial accounting" concepts taught every college freshman. Yes, grab your Accounting 101 textbook and look up the term managerial accounting. What most student miss is the subtle fact that cost accounting and GAAP are all about reporting financial results in a common framework. They are not, and were never intended, to be used for decision-making by managers seeking to guide their organizations. Yet at the end of that first semester of accounting, you know almost nothing about the managerial framework.

Managerial accounting (and therefore TA) is about measurements! But I digress: this post is not about Throughput Accounting.

As I said, TA is a subset of Throughput (with a capital "T")

In recent days it has become clear to me that my unique role on planet earth is simple: I am a Throughput Guru. I can hear your wheels turning; "Okay SKI, what exactly does that designation covey?"

Glad you asked!

Deming's TQM (Total Quality Management) is brilliant. No, not as I have pointed out repeatedly, not the Americanization of TQM, but the version that gave birth in 1950 (in Japan) to the Deming Prize. The bright students (in America) reading along will start to search their memory banks for the creation date of the Malcolm Baldrige National Quality Award.

1987. Yes, thirty-seven years later!

Why create a US version of the Deming Prize? From the NIST web site:

In the early and mid-1980s, many industry and government leaders saw that a renewed emphasis on quality was no longer an option for American companies but a necessity for doing business in an ever expanding, and more demanding, competitive world market.

Tell me that you recall this passage from Purple Curve Effect:

Why has TQM failed for the most part in America? Most implementations attempt to empower everyone in the organization. It is a misguided attempt to fix every problem at once. It is impossible. Not only that, it is a waste of money and valuable resources. Any attempt to fix any link in the chain that is not the weakest link is 100% wasted. The chain will still break at the weakest link.

Aside: Today, I now know that effort applied to the non-constraint is not only wasted, it is actually stealing finite resources from the real problem, and thereby, putting the whole organization at risk of extinction! But I digress...

Assumptions

Every consulting assignment for me starts with the assumptions. Define them, or set myself up to fail! Mine and the clients. In business today there are a lot of assumptions. Failure to flesh them out (at least most of them, if not all of them) is one of the biggest causes of poor performance. At least for businesses in the United States. Need proof?

Cost Accounting

Need more proof? Or, is your mind still trying to comprehend that simple statement of cost accounting as proof? First things first. Remember the P&Q example? Every time that a person new to the exercise works through it, they get it wrong. Me included! Further analysis would show that the company in the example used cost accounting principles to create the constraint that prevents them from achieving significant improvements in throughput.

Recall that my definition of Throughput is simple: the act of creating excess money (beyond all expenses, including but not limited to acquiring and paying for necessary physical assets to operate your business, securing raw materials and labor, etc.), and then to put that excess money in your pocket, now, and even more in the future.

More proof?

Is Apple the low cost provider? Hardly. I have written a lot about Apple and their supply chain. As a publicly traded company certain details are public knowledge. Like Tim Cook's effort to significantly increase inventory turns. A measurement. But I digress... know that Throughput is not a "low cost provider" thing. It is a focus thing.

In conclusion, consider common sense.

Why are the states of our union banning hand held cell phone usage? People are lousy multitaskers! What you focus on gets done. Simple and pure. Logic in its most basic form. Just because something that you do not focus on might get done, in no way negates the affirmative version.

You need someone to focus on your results. Someone to instruct you in the shortest path to profitability. Take your wisdom and knowledge in your field of expertise and combine it with a process and measurement expert (like me!) to move your company out of the "also ran" category and into a position of leadership. In profits. In that all-important measurement: "cash in your pocket!"

What gets measured, gets done. Uncommon sense.

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

Quality Expo Presentation

2008-06-13T03:56:00.000-07:00

SKI speaks on Project Leadership

Quick trip to Detroit (in and out in less than 24 hours) proves quite valuable. If you were otherwise engaged on June 12, 2008, the presentation is available (via PDF). Simply email SKI with the subject line "Quality Expo PDF".

Nothing in print will have the impact of attending that live session, however, the material will covey why every Lean Six Sigma project manager needs to know who Colonel John Boyd was, and why his OODA Loop is "must know" material for today's business leaders.

Once you have reviewed the references in the Quality Expo Detroit presentation, we may discuss the value of the material to your business operations. This is a great ice breaker for those standing in the street, gazing in our shop window.

After the presentation, once gentleman remarked, "I loved your definition of throughput."

Simply put, Throughput is the business of "putting money in your pocket now, and putting even more money in your pocket later."

If your business is successful at spending more money than it earns, it would be prudent to contact SKI sooner rather than later. Before your competition does... this fact was covered at some length in Purple Curve Effect:

TENET #11:
Only by fixing cashflow can most
businesses survive long enough to
find and fix the true weakest link.

Strategy & Tactics & Execution

2008-04-12T15:26:00.000-07:00

A Systems Approach to Business Strategy
STRATEGIC NAVIGATION
by H. William Dettmer

This book is my bible when it comes to strategy... and a significant influence on tactical issues. Plus, the "rubber meeting the road" of execution. As I have recapped before, I was in a Barnes & Noble in Myrtle Beach, SC when Dettmer called to share his discovery of Col. John Boyd.

If one understands that strategy, tactics and execution are nothing but a holistic project to be managed, it is easier to develop and deploy amazingly effective business plans. Remember that a business plan is nothing more (or less) than a vision of one's future.

As others have pointed out, one's competition is a major consideration in rolling out effective business plans. Without competition, a lot more well intentioned entrepreneurs would be living the "high life" rather than wondering "what went wrong?" It is Dettmer's combination of Goldratt's Theory of Constraints (TOC) and Col. John Boyd's OODA Loop that gave birth to the Constraints Management Model (CMM) and his book on strategy.

I did the wondering thing... and only in the last year came to terms with my own shortcomings in the strategy arena. It has always been easy to treat strategy formulation as a black box kind of exercise where one might "hit" or one might "miss" the right strategy. Then, implementations (tactics) were all over the place. Again, hit or miss. Worse yet: execution!

Now there is an answer as close as your nearest book store (online or otherwise): Dettmer's Strategic Navigation. No more guessing. Those familiar with his work can attest to his thoroughness. He leaves no stone unturned. No sentence, incomplete. No thought, unformed or unexpressed. In other words, it takes for ever to read a Dettmer book!

Thinking is Required

As Dettmer lays out a given paragraph, documenting it in great detail, including much (if not all!) of the ramifications of each and every possible scenario, I find myself rereading most every paragraph. And I am constantly stopping to weigh my thoughts against his in order to fully comprehend the impact on my affairs. Yes. He is that good.

When I launched Throughput.us LLC (TPU) he is one of three calls I placed before "jumping" into yet another adventure. However, do not measure Dettmer by my successes or failures... in the end, it is my application that determines my effectiveness. Or ineffectiveness. But know that if I have any measure of success, it is a huge tribute to the man and his message.

Do unto others

Yet, the best way to learn anything is to teach it to others. And that is one of the great joys of my life: teaching. In fact, my dad asked many years ago, "What are you going to do about the fact that you are a natural born teacher, and the fact that there is no money in teaching?" I looked him in eyes (I recall this like it was yesterday although it has been over 25 years) and said, "Consulting."

Consulting

TPU is about your success. My value in life is exactly proportional to the value I create for others. As Mike Murdock has taught us, my reward is based on the problems that I solve. Not making enough money? Solve bigger problems. Yea, I know... easier said... but I digress.

The success of my business is based 100% on the success of those that I help achieve their dreams. If you happened onto the web site, instead of wasting time wondering why, ask "why not?" Why not pick up the phone and call me? I cannot be interrupted. I refuse to let it happen. I remember when my kids were little and the phone rang at supper time. They thought that a ringing phone must be answered. No. Regardless the time of day (or night) give me a call if you have a question or need my help... or just my thoughts on an important topic.

Every phone has an off switch

When I call it a night, I turn my phone off. Sounds pretty simple, right? I list my phone number on most every post I make now, just in case someone wants to discuss a post at some length. In case someone wants to hire me. It makes it a lot easier to solicit new clients if they have access to me!

My favorite business: the startup. Yes, I have consulted with a few Fortune 1000 companies. But I prefer the privately held business, less than $100mm in sales. No sales? Even better.

When you are ready, the teacher will appear...

1. Check out my three years of posts on my blog:
http://consultski.blogspot.com/

I am still on google's blogger for a lot of reasons... check out the search feature in the upper left corner of the screen (once on the blog). See what I have said on a subject that you know something about. Like "Machine Shop" just to pick an unusual topic.

2. Buy (and read!) my book, Purple Curve Effect:
http://www.applyingcommonsense.com/buynow/

The PDF is just $3 so everyone can have access to the material. It is a personal business leadership guide. I talk about taking charge of your life... making lists, testing theories, getting off the couch and making something happen!

3. Buy (and read!) Dettmer's Strategic Navigation (birthplace of CMM):
http://consultski.blogspot.com/2008/04/constraints-management-model-cmm.html

Then give me a call. Lets make something happen. Together. Soon...

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

©2008 Throughput.us LLC

Purple Curve Effect :: The Book

2008-03-22T17:26:00.000-07:00

Which came first?

The content or the title? Those that chose "title", should guess again.

After Thayer and I finished the edits on the final manuscript, by the way, the working title of the book was "Applying Common Sense", we talked branding. One of my favorite colors is purple. I had Ramona Harmon, the illustrator, do the artwork while we made those final edits. She also tweaked the three graphics used inside the book. I was extremely pleased with the final art, it conveyed exactly the sense that I was looking for, and the look the book required.

I met Ramona through a Toastmasters chapter in Ft. Lauderdale, FL. We exchanged ideas at the Borders bookstore on Sunrise and that was that! Mission accomplished.

Book Review

WWW.THROUGHPUT.US (TPU) is about results. Simply results. Not always easy, but it should always be simple to deconstruct the challenges facing a business and then to invent a solution. The book attempts to walk the average person through my mind's vantage point of the world around me, and to present evidence that will convince the reader to pursue the application of the Purple Curve Effect to their unique situation. Business or personal.

I heard in Vegas last year that Eli Goldratt was writing a book on the personal application of his Theory of Constraints to one's personal affairs. I told the bearer of this news that I had already done so!

The Foreword

Goldratt exposed me to common sense, applied. But it was H. William Dettmer that made it come alive. TOC has evolved. More than I realized at the time, and it was Dettmer that would champion the most profound improvements (ala his "Strategic Navigation" [SNAV] text), creating his Constraints Management Model by combining Goldratt's TOC with the late Col. John Boyd's work. The OODA Loop (Observe, Orient, Decide, and Act) in particular.

Dettmer's foreword places all the elements on the table for the reader to appreciate not only where we are, but how we got here, and why we are not "somewhere else." It also did not hurt that he said some nice things about my labour of love.

If you were only going to read one page in the book, make it "X" as in the tenth page of introductory materials before the real numbering of pages begin. Definitions. A problem properly defined is 80% solved. Those that know of me from my posts on various newsgroups will attest that I am always seeking to first clarify the queries of other posters. Many of my fellow participants jump to solutions/suggestions/opinions! Wrong.

I recently presented my Dynamic 4^3 Process workshop in Minneapolis and tried to preach the concept of "vantage point." The half-glass of water example from the book. I had some success. I wanted more. But I digress.

Purple Curve Effect (the book) is all about asking the reader questions. Getting them to think. Hard work for sure! Socratic Method to the max. Thayer interacts with me and the reader via dialog boxes on numerous pages. Although basically a "first person" story, I was unwilling to write the book without Thayer figuring out some mechanism to participate. To help me keep the reader focused on my message. As Dettmer pointed out, this is not a textbook. For me, it is an owners' manual.

Own your competition

The tenets (in the first two parts of the book) and then the "Purple Curve Insights" are there to prepare you for battle. So that "he that runneth" may read it and know the key actions required to win. If you were to call me up and ask for help on most any challenge, I would ask you to read my book first. Then, we could communicate clearly and success would be ours for the taking.

If you put your strategy up on the wall of your office (bedroom, cubicle, etc) you will know exactly where you are headed. Otherwise, I would be of little help.

The Purple Curve

You cannot argue with facts. A lot of people "try" to, but they are only kidding themselves. 99% of the businesses in America are on the red or green curve. Why? Lack of focus. Lack of a worthy vantage point. Until you make my thoughts your thoughts, or at least until you understand how simple success is to accomplish, I will be of limited help.

I wrote in the book about the custom motorcycle industry. Then, went out and jumped into the business with both feet. I built that one special custom Red Horse for myself that I talk about in the book. My web based dealership, Turismo Cycles, was a dream come true. I also turned Red Horse Motorworks around in just 90 days using the Purple Curve Effect as acting Director of Manufacturing. Then, watched in horror as the owner allowed a subcontractor to undo all my efforts in just one week.

Golden Rule

He who owns the gold, makes the rules.

If you need a victory in short order, you need my book. IF we become fast friends, AND you live in the southeastern portion of our great land, AND you want and need my help, THEN you can expect me to be on-site within 24 to 48 hours to help secure your future. Which as Zig Ziglar points out, will do nothing but help secure mine.

In just 90 days

Unless you know me and have seen my passion for excellence "up close & personal", you may not believe me. Understood. Let me think; is there some way to convince you? Sure. I know.

Order the PDF today. Within 24 hours your vantage point will either align with mine... or not. I can only help those who see the light. The light as I see it. Yes, we must have differences in our opinions and approaches, but not on the fundamentals. If you do not understand that bad multitasking is the kiss of death, I cannot help. As much as I want to help everyone, it is not possible.

If my simple message brings hope, then lets get 'r done!

Did I mention that I am available?

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

P.S. There are still a few paperback copies of Purple Curve Effect — SKI's Throughput on Command left. Take Dr. Howard Meeks' advice and buy both versions!

Formal TMx Launch

2008-03-19T15:29:00.000-07:00

It has been a long time coming...
(required reading for all Throughput.us LLC Clients)

In the year 2000 I searched the internet for any and all Goldratt Theory of Constraints guru type people I could locate. One named rose to the top of that list. Tony Rizzo. He had more links to his 'stuff' and more people talking about his stuff, than even Dr. Eliyahu Goldratt himself!

Well long story short, we met at an APICS event in Texas, and became friends. He simply offered to help in any way possible. Those that know Tony know him to be a man of his word. I have tried my best (and fallen many times) to live my life the same: to say what I can do and then do what I said I would. Not always easy.

Fast forward to the summer of 2007. I get that now famous (or is that infamous!) call from Tony asking me to participate in the TMx product. First, to simply write the eCommerce portion of the application. Then, as the tool evolves, to help market TMx.

I recall the phone call to add a new web link for a second version of TMx for those without MS-Project installed on their PC. As I have recounted elsewhere, I refused. I was standing outside the Food Lion on the south end of Hilton Head Island, SC. Pacing as we talked. A few of you know that Rizzo is "Mr. Literal." Everything is black or white. On or Off. After all, he is an engineer by training (and it is a perfect fit!).

One would be hard-pressed to accuse me of ever having a conversation where I failed to introduce one or more (most oft many, many) analogies or metaphors to convey my thinking on any subject. When Tony calls, I look to see if I have several hours to devote to the conversation.

Why?

Communication is that important. We both kid one another about the laborious process of sharing ideas with the other, but we would not trade our exchanges for love or money. We both bring passion to the forefront, however, we do it in very different ways. But I digress...

Cut to the chase: there is only one version of TMx.

I explained that we would have only version. That this point was non-negotiable. And I would be happy to investigate coding solutions until the cows came home if necessary.

Why the big fuss?

Confusion leads to indecision. Indecision leads to a lack of action. No action equates to no results. In order to make money with TMx, people must take action. They must look at the presentation we have prepared. Both PowerPoint and PDF versions are online. The PP version offers a neat "bad multitasking" slide. If the presentation makes some sense, they must download TMx. They must install it on their PC in the prescribed method. They must experiment with TMx and try to accomplish something with the tool, all before they will ever hit my "Register TMx" button which leads to the collection of the $179 licensing fee (price subject to change without notice). Did I mention that we are giving away a fully functional, 100% fully supported version? It will function flawlessly for 30 days before requiring payment.

Sound complicated

It is not. Remember Tony is an engineer. If he wanted to go back to work, I would recommend that he call Apple. Apple is creating the neatest 'stuff' on the planet. Just think about Apple under Steve Jobs today. I have iTunes on every PC and Mac I come in contact with, everywhere in the United States of America. I own two iPods, and have given two away as gifts. I still own my NeXTstation with NeXTstep OS, which as the techies know, became Mac OS X. My granddaughter loves Pixar movies. But I digress...

TMx

Here is what I suggest to those readers that tuned in to learn more about Rizzo's Total-Matrix planning process and the add-in for MS-Excel that makes project modeling a bulletproof exercise in blowing the competition into the weeds: re-read this post.

Follow the suggested course of action outlined.

As I have mentioned before, I basically have never been outside the US of A. Have no interest in leaving this country. So I cannot comment on how effective this process may be outside America. Yet, Rizzo has informed me that organizations around the world are indeed using it.

And experiencing breakthroughs

I know for a fact this is the tool for anyone and everyone who must plan. It requires a PC. Sorry, no Mac version. It does not run on Vista. It does not work on Excel 2007. As most of you already know, the perfect upgrade to Vista is Mac OS X! But TMx may be ported to Excel's new internals at some point. Just not anytime soon. Not anytime worth waiting for... sorry.

So, as one MBA remarked after experiencing a one-hour web demo with Rizzo (allow me to paraphrase), "This is good. Good enough to grab an old PC and make sure I have Excel 2003 loaded on it."

"I charge a lot of money to help business owners increase throughput. As of January 2008, I require all my clients to use TMx. No TMx? No SKI."
—Jeff 'SKI' Kinsey

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

P.S. In case you missed it, the link to get started is here: TMx by Tony Rizzo

Constraintless Selling

2008-03-02T07:16:00.000-08:00

Ever draw in the sand on the beach?

In my blog post last week about internal and external constraints, I talked of drawing a line in the sand to better understand the concept. As you face the ocean (imagine yourself taking this photo of the ocean at Hilton Head Island), draw a line from your feet straight out to the incoming surf.

On the left, internal or conditions inside your organization, that prevent you from shipping more goods and/or services. On the right, external conditions preventing more sales.

Constraintless Selling

I just coined this phrase to explain sales for the company with internal constraints. They have more sales than they can ship. Their sales processes knows no bounds at this moment in time. A great position to experience. And the focal point of WWW.THROUGHPUT.US (TPU).

If your organization has orders inhouse, maybe even with deposits (or retainers), but almost no idea when they will ship, then we need to talk. That is our focus. Determining how to reinvent your organization around the simple concept of meeting demand.

Due date performance

Probably one of the most underrated measurements of our times. FYI: If your purchasing department is still using "low cost provider" as the primary metric, you better call me today!

Just to elaborate slightly, if you can consistently hit your due date, then you can steal market share. If you can steal market share, then fluctuations in the economy are not as painful. On the other hand, if your claim as a supplier (to another organization's supply chain) is based on price, someone can always bump you out with a lower price. Not much fun. But I digress.

When is selling not really selling?

When the customer is demanding more and more of your goods and services! Constraintless selling. The greatest service that TPU offers is simple: a new vantage point. As in "advantage point".

Take the example where your due dates change with every sunrise. Where the squeaky wheel gets priority each morning. Or just before the closing bell rings. Not much fun.

Let me give you one secret. For free. As in "no charge." Why? Because you will ignore it. Advice is worth exactly what you pay. The secret? Eliminate bad multitasking.

In just ninety days, I can save your business from all that red ink. If you have a backlog and customers still trying to buy from you. I do not even care if the backlog is valid. Humans cannot do two things at once. Not well. Argue all you want. Would you want a brain surgeon playing chess while he removes an aneurysm? Me either!

Applying focus is the key to success

Once you eliminate bad multitasking (simple? Yes. Easy? No), then you have free capacity. It is an absolute. It is impossible to overstate this fact. If you have not freed up capacity, then you have not eliminated the metrics that force your people to multitask.

I offer the best software on the planet for scheduling projects. cc-Pulse and cc-MPulse by Spherical Angle. Check out this infomercial on SKI TV. But it is worthless if your organization is not ready for it... no, actually, it could cause harm if used improperly. But I digress.

What if you only have ninety days?

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

P.S. It is not that I am some sort of a miracle worker, the fact is I discovered the simple truths that transform businesses, and am willing to bet my reputation on them. Given the chance, I will apply the pressure required to maintain your focus... on the weakest link. And only the weakest link. Right up to the moment it moves. Then we start over. Consider how much fun you could have, working half as hard, but profiting beyond all expectations.

Tuesday is Throughput Day

2008-02-26T03:52:00.000-08:00

Once upon a time...

I thought all the days were the same. Sure, some days were better than others, but it was hard to tell ahead of time exactly which days would be great.

There is a way to know beyond a shadow of a doubt which days will produce the most throughput. Remember that for me, "throughput" is defined as "more money in my pocket." I suggest that you adopt this definition as well. Who knows, someday it may end up in a book of Quotations at the neighbor Barnes & Noble. But today (Tuesday), let me share another quote:

"... there is nothing either good or bad,
but thinking makes it so."
— Shakespeare's Hamlet

I awoke this morning with a simple thought: Today is the day to create more throughput. If you know me, or how my mind works (although I doubt that even I know for sure!), then you know that if today is Tuesday, and because all we have is today, then this must be a great day to create throughput.

First things First

Make a decision that today you will act. On whatever. On the thing that you have been debating with yourself over. Time is up. Make a decision. Then do it. Act on it.

Need a mentor to hold yourself accountable? Call me.

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

P.S. Together, we can change the world. Starting with your business.

Re$ults for Hire :: The List

2008-02-16T12:06:00.000-08:00

Purple Curve Effect — SKI's Throughput on Command
by Jeff 'SKI' Kinsey with Thayer Bennett
foreword by H. William Dettmer

Chapter 4 :: The List

Okay, let’s start creating success by putting this “common sense thing” into action.

A family of four decides to trek from Ohio to Myrtle Beach, South Carolina, for a vacation week at the ocean. So, the mom and dad start planning the trip. The kids start telling their friends about the big trip. Six hundred and sixty miles to be exact. That is a long way from home to have forgotten something important. Like the baseball gloves. Or medicine. So, what is the first thing to do, first?

Covey was right: First Things First

Make a List.

I remember writing this in the winter of 2003/2004. As I shared my approach to achieving results, it came time to drop the hammer, chapter four... "The List".

In hindsight, probably should have called the chapter "The Power of the List."

Ever wonder why so little gets done? Not just at the office, but at home, at school. Most everywhere. After the better part of eleven years in South Carolina, I can say with all honesty that we purpose to take life a little slower. More deliberate. That is one of the reasons I moved my family south. Of course the weather was a big part of the decision. The ocean too. But I digress...

Thinking of hiring someone? Consider asking to see their planner. In other words, do they have a list of important projects (or tasks) that must be accomplished? With dates? A goal is not a goal without a due date.

I start most every morning over a Starbucks tall decaf and a note pad. Most often with my iPod (and now, my new iPod touch) blasting the background noises out of earshot. I write down the numbers, one through seven, down the left margin of the page... and then determine what the issues of the day are, that must be accomplished. In order to make money, and more money in the future.

How do you accomplish anything?

In fact, I am considering asking prospects to see their planner before accepting an assignment with them. I am tired of clients not making progress.

90 Days to Reinvent the World

Look, it took God six days to create everything. We ought to be able to make a difference in just ninety days. Seriously. Eli Goldratt used a great example: the lottery.

If you won the power ball lottery for say, $27 million (paid out over the next 20 years), how long do you need to reinvent your life? That is what I thought. About 90 days.

So what are you waiting for?

Get off your @#$ and make something happen.

-ski

P.S. Any initial consultation in the USA is free. Just provide T&E.

P.P.S. I am serious, "no list", no SKI.

----
Jeff 'SKI' Kinsey, Jonah
ski@throughput.us
(330) 432-3533

© 2008 Jeff SKI Kinsey. All rights reserved.

TMx :: Bullet Proof Project Plans

2008-02-03T10:03:00.000-08:00

Better Project Models

What chance would a bullet have against a train?

Not much. If any. What if your problems of missed delivery dates were simply a matter of bad planning. Ed McCullough observed a group of business professionals a number of years ago, attending an Eli Goldratt session and remarked, "How much of this will they remember, come Monday?"

Some.

Learning requires a systems approach. Hence my Dynamic 4^3 Process.

But once we complete the workshop, and you have attacked the "bad multitasking" that exists in every business in America, then what?

TMx by Tony Rizzo

I challenge you to pick up the phone. I dare you. Call and just ask how profound TMx is to the folks using this tool. Once you know where you are headed (strategy and tactics), organized around the weakest link (think of a baton, as in a relay race), stopped interrupting key players on mission critical portions of their job, you are going to need TMx.

I have often asked clients the value of knowing which link in their business system will break next. Priceless is the most accurate response.

Ever get into a project, maybe six weeks gone in a twelve week project, and discover that a seemingly minor misstep in the original project model will now force a four week delay? I have. It hurts. Hurts morale. But more to the point, it delays cash from flowing into the business.

It gets worse. The project was accepted based on a profit point. A no longer valid profit point.

Who enjoys calling the customer and explaining we made a mistake, and then asking for more money? Me either.

"Everything is a Project"
—Jeff 'SKI' Kinsey, Jonah

Well, if that is true, that everything can be considered a project, then you need TMx. Better yet, you can download it for a thirty day evaluation. A free evaluation. Then, if you see the value in it, you can license it for just $179 per year (price subject to change without notice, just as soon as I convince Rizzo that he is not charging enough!).

Better still, you do not need MS-Project to use it. Just MS-Excel (PC only, no Apple Mac version [yet]). But if you do have MS-Project, it integrates nicely.

SMALL PRINT: It does NOT work with Vista or Excel 2007.

Bottom line: Your projects are much too valuable to leave them to mere luck. Catch a few breaks: Download TMx today.

TMx by Tony Rizzo

It sure makes my life a lot easier. Now, you know one of my secrets for producing breakthroughs in just 90 days. It is that good.

Pick up the phone. Call me.

-ski

P.S. Any initial consultation in the USA is free. Just provide T&E.

Jeff 'SKI' Kinsey, Jonah
ski@throughput.us
(330) 432-3533

Results :: Small keys open Big doors

2008-01-20T07:02:00.000-08:00

Mike Murdock shares this fact:
Small keys open Big Doors

Another way of saying what Malcolm Gladwell did in The Tipping Point, small things can effect large changes. What surprises me the most when taking on a new consulting assignment, is the large amount of despair relative to the ease with which most problems can be solved.

It is human nature. Few can see the way out of their own situation. I recall my daughter about age four, when instructed to "clean your room." Upon returning to the scene 30 minutes later, if anything, the room was worse. Asked why she had failed to clean her room, she replied in a most matter of fact tone, "it is too big a mess."

Obviously not, but it was from her vantage point.

At WWW.THROUGHPUT.US (TPU) we have a system. A framework. A process. A model. A method. Whatever term you like best, we attack your obstacles quickly, and organize the telling signs into a cause and effect logic tree. We find the core constraints, your weakest link, which is also the leverage point for generating success.

Until you change your vantage point, you cannot change your results. Albert Einstein said that the brain power used to create a problem will not be sufficient to break out of its grip. Enter TPU. Eli Goldratt said that the creation of the 4x4 Process for implementing system wide change was among his best work to date (circa 2001). I now agree.

"My Dynamic 4^3 Process is my best work to date.
It is Goldratt's 4x4 on steroids!"

I joined Toastmasters International not to overcome a fear of public speaking. I was (and remain) the class clown. Occasionally my thoughts lead me to wonder if I could make it in stand up comedy! Toastmasters taught me how to organize my materials for maximum reach and effectiveness. How to be a professional speaker. Not just vocal.

Goldratt taught me that use of the Socratic Method is absolutely necessary. He said that the better the manager is with it, the better he or she will manage. Or lead. Or effect change.

Until you can see your situation through my eyes, you may never understand how close to victory you stand. Right where you are.

Need a breakthrough in 90 days or less?

Call me.

-ski

P.S. Initial consultation free. Just provide T&E.

P.P.S. My interview on Ed McCullough's Talk of the Town is a good overview.

Jeff 'SKI' Kinsey, Jonah
ski@throughput.us
(330) 432-3533

Catalyst :: Dynamic 4^3 Process

2008-01-15T02:07:00.000-08:00

The Dynamic 4^3 Process™

Knowledge transfer. Have you ever shown anyone a "better way" of performing a task? We all have. Everyone has the ability to be the smartest person in the room, on at least one subject.

Structure

Four days of classroom (Mon/Wed/Fri/Sat)
Four hours per day (perhaps 9am to 1:30pm; 1/2 hour on-site lunch)
Four projects to complete (two individual/two group)

Alternating days offers two major benefits: Students can "decompress"' from the rigors of the previous day (and complete their homework!), and the instructor has time to incorporate the challenges (and breakthroughs) of the previous day's session into the next lesson plan.

The Dynamic 4^3 Process™ is heavy on strategy, knowledge transfer, and H. William Dettmer's Constraints Management Model (CMM), which is the combination of TOC and Col. John Boyd's OODA Loop. With my Purple Curve Effect (PCE) framework directing action behind the scenes.

Need to find the leverage point to move your business? Call me. Together we can plan the perfect workshop. For those leaders most responsible for making a difference within your organization.

Note that the price of this workshop is not small. It is not inexpensive. However, it might just be priceless.

Make 2008 your year to exceed all expectations!

-ski

P.S. Ask about our "results based" pricing model.

Jeff 'SKI' Kinsey, Jonah
ski@throughput.us
(330) 432-3533

How To :: Systems Thinking

2008-01-01T07:05:00.001-08:00

Systems Thinking Approach

A 'system' is a whole; it has a beginning and it has an end. Take the computer as an example. It requires input, performs one or more processes, then produces output.

I recall in class at Malone College (Canton, Ohio) working on a survival exercise. It was my first exposure to group dynamics in a formal setting. In analysis mode, if you will. We did the exercise first individually, then at the professor's request, we formed several groups. Of four people, if memory serves.

In case you did not already guess, based on the experts that prepared the exercise, the group results were always better than any one individual's score. That was profound to me then, but more so today. As we look forward, having just arrived at January 1, 2008.

It's relationships, SKI

Much of my formal education (both at Kent State University and Malone College) seemed (to me) to be focused on things. Stuff. Processes. Can you say "boring"? As I have shared before, during college, I felt that nothing could be more boring than manufacturing. Until I landed that first computer consulting gig in 1982 for a manufacturer. Wow! It was never, ever boring.

As a junior cost accountant (they could not afford me simply for data processing, so I had the privilege of performing other functions), performing time studies, I quickly learned the 'people' side of the equation. I still recall the explosion of unrest when we posted those first results of productivity from the new computerized job costing/payroll system.

People can be quite passionate

I hated it then; I love it now. Ever have someone say some to you, "Can't you just ignore it?" The "it" is whatever is wrong with the 'system' you find yourself in at the moment.

No.

I cannot. But one vantage point is not enough. I know that now. And the higher the observation deck, the more likely (not always, but too often) the desire to explain away the seemly minor problems. I recall time studying two operators performing the same task Both were seasoned veterans and very capable individuals. It turned out that one machine was fitted with a longer bar, that allowed its operator to complete the operation in four 'turns', while the other machine's shorter bar required five 'turns'. Obviously not fair.

Pointing this issue out to senior management resulted in no response. Yes, you read that correctly. No action taken. Well, in all fairness, they did suggest that they would look for a longer bar. When I left two years later, as I recall, one machine still had the advantage of a longer bar.

Take another look at the diagram at the top of the page. What does it say about systems thinking? For me, the answer is much clearer today: Everyone has their own problems to solve.

W. Edwards Deming suggested that if you want to know what is wrong with a company, get down to the production floor and ask the people actually performing the manual labor. They may not have all the answers, but they certainly have a unique vantage point. One that you must explore.

That, is a huge component of systems thinking at WWW.THROUGHPUT.US (TPU).

Exploring all vantage points in order to better understand the challenges we as a team face. Of course, once armed with the knowledge of "where we are", someone needs to tells us where we are headed.

The Goal

Eli Goldratt beat us all to the best title for a book about fixing businesses. But the goal is secondary for a business that is "up and running" and meeting needs in the marketplace. Consider H. William Dettmer's "Strategic Navigation." This metaphor works well for me. Perhaps it is my training in FDC (fire direction control) for Uncle Sam's United States Marine Corps. We surveyed the gun placements first, plotting them. Like spending time on the shop floor of a manufacturing company. Then, based on mission parameters, FOs (Forward Observers) would radio in coordinates of the target (the goal).

We spent a lot time studying weather in FDC school at Camp Pendleton. Consider it 'variation' in business world. What direction and force can be attributed to the something as mundane as the wind?

Navigation

My watchword for the new year. This past weekend I had short visit with a friend that owns a private airplane. We flew from Harry Clever field in New Phila up to Salem, Ohio. At 120 knots, we made great time (compared to the automobile I used that last time I made the trip to teach a session in a workshop at a Kent State branch).

But we could not aim the plane directly at Salem. There was a wind out of the west. So we had to navigate a bit into the wind, in order to reach our destination. Business requires no less. To me, business is the ultimate sport. Yes, there are a lot of moving parts. But the potential rewards for "getting it right" are huge!

So, when you are ready to move your business from point "A" to point "B" or some other spot in the marketplace, consider giving me a call. Let's chat. I am always happy to opine on next moves to consider. In fact, fly me in (your treat) and I will give you some options to consider.

If it looks like I can help, I am always willing to put my share of the rewards on a "pay for results" basis. Of course, I am also available for hire on a project basis as well. However, if you are unwilling to consider the system as a whole, I cannot help.

-ski

P.S. I am testing skype for its PC2Mac integration. Give me shout if you see me online: thruputSKI (as in, how do I create more throughput SKI?)...

Jeff 'SKI' Kinsey, Jonah
ski@throughput.us
(330) 432-3533

Biz Model :: One vs. Many

2007-12-30T05:44:00.000-08:00

Business Models 101

There is always a chain of events leading up to a breakthrough. And I would suggest that a number of people are key elements in the really profound ones. One such unsung hero in the affairs of WWW.THROUGHPUT.US (TPU) is Thayer Bennett.

We met in late 1997 as I recall, and Thayer helped with PR duties for the launch of eDivision. She became the editor for TOCreview magazine. Co-author of Purple Curve Effect. Thayer was part of the advertising team (way back when) that decided to offer Leggs panty hose in grocery stores. A breakthrough of huge proportions at the time (and for years following the introduction).

Well, in 2007 Thayer made another brilliant observation:

"Rather than contact several thousand suspects
in search of a few qualified prospects, I would
suggest that we target ten or twenty exceptional
companies in search of three or four, maybe five
perfect candidates."

This short and sweet remark hit a nerve. For years, I have been talking about the fact that it is relationships that matter most in business. At least for me. I have clients going back over twenty years, many with whom I still chat with every few months or so... and not for any reason other than staying in touch. Not to seek additional revenue.

Simply because that is one definition of friendship.

So, I said all that to say, just as Constraints Management is all about finding the one significant obstacle and applying focus (think Purple Curve Effect) to leverage your bottleneck (instead of being a victim to it!), TPU is all about working with a few organizations each year that want our help. Or maybe even just one.

Yet it is not all about us. Or me. After fifteen years in the Constraints oriented world of true systems based solutions, TPU has amassed a nice group of supporting talent. Mentors like Bill Dettmer, Tony Rizzo and Dr Lisa are seconds away via phone or fax or email. The "best of the best" of implementors are available to help almost at the drop of a hat.

Zig Ziglar (another mentor of the first order) says, "I am so positive minded, that if I were to go after Moby Dick, I would grab the tartar sauce before setting sail!" That is my approach as well. A positive mental attitude alone is not enough. But it sure helps.

Therefore, if your company (privately held, small business of less than $100 million in annual revenue, located in one of the 48 continental USA near a Starbucks) is in trouble, or simply under performing, give me a call. Thayer and I will continue to seek you out, focusing on organizations that are way behind the curve in due date performance, but the fastest way to the front of the line is to call us. As I oft remark, "before your competition does."

-ski

Jeff 'SKI' Kinsey, Jonah
ski@throughput.us
(330) 432-3533

Scenario :: Results Based Pay

2007-12-26T10:10:00.000-08:00

So, what is the big deal about Spherical Angle?

That is a great question. It is a major component in your future success. But rather than talk about a tool, lets talk about potential.

Are you sitting down?

Good. Let me describe a typical prospect for our services. WWW.THROUGHPUT.US (TPU) is a consultancy created for one simple purpose: produce results for our clients. Measurable results. "WOW!" kind of results that encourage our clients to pay our extreme fees with very large smiles on their faces.

Our fee structure includes a 100% "results based" option. But it is not for the faint of heart. However, perhaps you are one of those entrepreneurs that has an ego to match their abilities... and further more, you understand how percentages work. A number of years ago, Ed McCullough and I were having a cup of coffee at Starbucks (south end of Hilton Head Island, SC). I mentioned that for a particular project, that I would pay a 10% commission forever. He said, "Forever?" As only Ed can. My response was profound: "Yes. Forever. Remember I get the other 90%"

A typical implementation

Less than $100,000,000 in gross annual revenue
Established name recognition in the marketplace
Privately held; Founder is President and/or CEO
Accounts Payable exceeds Accounts Receivable
Using MS-Project to manage Projects
Headquartered in one of the 48 United States
Headquarters near a Starbucks

Those that have taken the time to read my book know that I am serious about the Starbucks remark. First, the company is well run. Has great health (and other) benefits for its employees, most of which are part time. So don't tell me you can't do it! Second, I love the atmosphere for thinking. Third, in software development, you learn the value of pizza. In business, the fuel needed to put in long hours is coffee. But I digress...

How would 100% results based pay work, exactly?

Allow me an example. Your organization did $60 million last fiscal year. You can prove to yourself (and me!) that you should grow to $66 million with out my help. So, we set a base line of $66 million in annual revenue. I show you how (with my help) you can do at least $80 million with almost no increase in fixed costs, and then, drum roll please, you pay me 20% of the increase above the base line. In other words, You get 80% of the additional $14 million. Yes, $11.2 million. Yes, depending on your product and industry, maybe half of that goes to variable costs. So, an extra $5.6 million straight to the bottom line. Impressive.

Instead of the 10% profit before taxes you would post on the projected $66 million, you should make over 15% on gross sales (before taxes). Instead of just $6.6 million on your bottom line, it should jump to over $12.2 million. Not bad, if it is possible.

Well, it is possible. With the proper focus. And I am willing to bet my share of those revenues (yes, my $8.8 million). Not willing to part with that kind of money? Fine, cover my fixed expenses and pay me just 10% ($4.4 million).

Now that your head is spinning, you can understand why I ask you to sit down.

Maybe these numbers are too large for you. Cut them in half. Better yet, lets say your business is just one-tenth the size mentioned in this example. The great thing about math, simply divide every number by ten. You had gross sales of $6 million this year? You expect to grow t0 $6.6 next year? I am telling you that instead of $660,000 in profit before taxes, I can help you make $1.2 million on sales of $8 million. And we both grin all the way to the bank.

The amazing part? I can prove this works for your business in just 90 days.

No, not produce all the results in 90 days. But show you enough of the proven system that within 90 days you are willing to "stay the course".

Want to learn more? Call me.

Before your competition does...

-ski

Definition :: Bad Multitasking

2007-12-24T08:53:00.001-08:00

Time to clear the air

Multitasking is necessary. The fact that computers running UNIX or LINUX are masters of multitasking is a good thing. Your administrative assistant better be almost as good!

Bad Multitasking

When goals go unmet (or are delayed beyond promised due dates), the first place I look to place blame is at the feet of multitasking. Bad multitasking. Then, I start preaching "balance" as a way to help put the wheels back on... but I digress.

Just as money is not the root of evil (the love of money is), splitting one's precious time between tasks is in and of itself, not bad. It is easy to forget to say that little three letter word (the word 'bad'), and therefore, send the wrong message.

Unless you just tuned in, you are aware that at WWW.THROUGHPUT.US (TPU) we sell and implement business strategies as well as project management solutions. Until Tony Rizzo of the Product Development Institute (PDI) helped CCPM (Critical Chain Project Management) evolve into Total Matrix Planning (TMX), I just could not get excited about CCPM.

But the times, they are a changin'

Towards a more robust definition of "bad multitasking", allow me this statement:

Bad Multitasking is the act of dropping a primary function or activity for any length of time, in order to take up another task, simply to show that progress is being made on more than one project.

Allow me to clarify. Look at the chart above. Note that task "A" should take just 9 hours to complete. All things being equal. Which they are not. After 18 hours have elapsed in the chart, twice the time required to complete task "A", the activity is still not complete.

This chart simply defines "multitasking" — not "bad multitasking."

The results on the chart on neither good or bad. Just fact.

Without a mission statement, like making money, these isolated facts have no bearing on our business. Remember too that a lot of multitasking is required. Necessary. Like your company's receptionist. Do you really want him to finishing typing that nine page report before he answers the phone?

I didn't think so.

Consider your CFO (Chief Finance Officer). There may be a thousand or more decisions the CEO must make at the beginning of a new month, or the new year. Important stuff. Life altering actions might be required. However, until the financial statements from the last month (quarter and/or year) are completed and reviewed by the CFO, it would make sense to delay one or more of those decisions.

So, do you want your CFO multitasking, when her task "A" is finalize the year-end financials?

I did not think so.

That, is an example of bad tasking.

Now, add one more thought: the critical chain of events in a project.

When your CFO has a task on the critical chain, do you want her to multitask it with non-critical chain tasks?

-ski

Jeff 'SKI' Kinsey, Jonah
ski@throughput.us
(330) 432-3533

Unconventional Business Practices

2007-12-22T14:20:00.001-08:00

One of the nicest compliments that anyone has ever paid me.

"SKI, your approach is unconventional to say the least."

I remember a series of advertisements in the Wall St. Journal a number of decades ago (if memory serves), that featured "head shots" of the major forces in the advertising agencies, long on copy, with praise for advertising campaigns these veterans had waged using the Journal. To great success. One of these insiders even mentioned that common wisdom held that "no one reads long copy."

Bogus. To think no one reads long copy.

Wrongheaded thinking back then. Wrong today. More wrong with each passing day.

If it is timely (to the reader) and well written, and covers a topic of significant importance, it will get read. If written somewhere that folks can readily access. Like a blog.

Like Blogger. Owned by google.

Indexed every day (maybe more than once a day?). Index by google. Yes, that google, the search engine with the keyword alert service. See where this is headed?

WWW.THROUGHPUT.US (TPU) uses blogger as its "web site" rather than a conventional web hosting approach. The blog is simply limited to displaying only one post. This gives the impression that our "home page" is being updated nearly every other day. It is.

But with a lot less effort.

Unconventional.

Thanks.

Now, consider your business model. Conventional? Or not?

Thought so. When are you going to start thinking outside the box? It was easy for me, in 1998 when I launched eDivision, I could not afford a box. Or an office. So I began meeting prospects at their office. When they wanted to meet at mine, I directed them to the nearest Starbucks.

Consider writing 80% of your Starbucks habit off your tax return! Legally. Call me to discuss your business strategy.

Throughput.us LLC: "Simply Results."

-ski

P.S. For more of the story, see my interview on Ed McCullough's Talk of the Town on WHHI-TV.

P.P.S. The beach scene on Hilton Head Island is brought to you in honor of my "line in sand" post.

Jeff 'SKI' Kinsey, Jonah
ski@throughput.us
(330) 432-3533

Critical Chain Project Management

2007-12-18T18:01:00.000-08:00

Talk of the Town
WHHI-TV

Recently, I sat down with friend and TV talk show host Ed McCullough to discuss one aspect of WWW.THROUGHPUT.US (TPU) and the world of results. Clicking my photo will launch a new browser window with instructions for viewing the show over the internet.

It is not obvious at first pass, but the episode is "shot" in two sessions, of one take each. Just, "Action" and hold on! No stopping the tape and making another approach. No fancy editing. Say something stupid, and it is captured for all the world to see.

Just like life

For the most part, I am pleased with the episode. One "correction" (or more accurately, an amplification) would be to state that there are four principals at Spherical Angle. Ted and Susan in addition to Tony and Scott. It was not intentional. My deepest apologies.

I was trying to relay the call that got me "back in the game" of consulting after a lackadaisical five plus years: the call from Tony Rizzo asking me to empower his TMx application. Which led to my becoming a cc-Pulse (and therefore cc-MPulse) reseller.

At a presentation last week, TMx and Spherical Angle were mentioned as necessary (but not sufficient) components to a successful Critical Chain Project Management (CCPM) implementation. Along with a major (and severe) reduction in multitasking.

As TPU took shape (in just 90 days), it was amazing to come "face to face" with the evolution that has occurred in the Constraints Management Model (CMM) arena. In fact, Eli Goldratt's Theory of Constraints (TOC) has become CMM mainly through the efforts of H. William Dettmer and his revelation that what was holding TOC back (my words; no one else may see it as clearly as I do), was a lack of a call to action. Enter the work of the late Col. John Boyd. But I digress...

Want to know more about generating throughput? Watch the video. Then drop me a note if you want to discuss the ramifications for your business.

Besides "simply results", I am fond of saying, "It is relationships, stupid."

That is a reflection on me alone. My failure to elevate the building of relations is responsible for slowing my growth. Something I strive to never repeat.

Need help? A mentor? Or just a second opinion? Drop me a note.

-ski

Jeff 'SKI' Kinsey, Jonah
ski@throughput.us
(330) 432-3533

Simply Results

2007-12-16T03:26:00.001-08:00

"So SKI, what exactly is Throughput.us all about?"

"Simply results."

After several months of perfecting the "art of the start" (thanks Guy Kawasaki!), WWW.THROUGHPUT.US blasted into the ether on December 1st 2007. How does one focus on the important stuff, when in the beginning, everything seems important?

Exactly.

Focus.

Focus? Yep. I wrote "Purple Curve Effect" (PCE) to help folks like me focus on the right stuff... the "first things first" kind of stuff. You make a lot of lists. But you gotta have a goal. Did I happen to mention that I read PCE every month or so? Why? It is that good. Plus, my memory is only so good (yours too!).

Simply Results

Eli Goldratt told me that some of his best work ever, was the creation of the 4x4 Process for getting an organization to understand where it is, to properly document where it would rather be, and to create the execution plan.

During a recent visit to Las Vegas (on business), I interviewed a number of consultants on the state of the union on the 4x4. My biggest concern, was confirming (or refuting) my experiences in such knowledge transfer exercises. They did.

Things Change

If you have not yet bought (and read, more than once) my book, then I cannot help you. If you have not bought (and read more than once) H. William Dettmer's book, "Strategic Navigation" then you probably cannot help yourself. FYI: If you are not a military history buff, skip the first 26 pages.

However, if you have taken these first two steps and you would like to grow your business significantly over the next twelve (to twenty-four) months, call me.

I can help.

-ski

P.S. Did I mention that WWW.THROUGHPUT.US is all about helping you achieve YOUR goals?

Jeff 'SKI' Kinsey, Jonah
ski@throughput.us
(330) 432-3533

Action Items :: The List

2007-12-07T18:48:00.001-08:00

Black N- Red Journals

I had to spend real money on a journal this last time... the discount (junk) store where I usually bought my ninety-nine cent journals had closed. I bought a Black N- Red. I like the unusual calendar feature inside the front cover.

Action Items

How do you make progress?

Consider the family vacation. Do you chance it? Or do you work on a list (or several lists) in order to ensure a great vacation? As insurance against forgotten medicine or swimming attire?

For TPU (WWW.THROUGHPUT.US) it is all about relationships. Once a dialog starts with a suspect, my list-making jumps into action. Even to the point of making lists of lists. Dr. Eli Goldratt suggests in "Its Not Luck" that one exercise for companies, is to make a list of the undesirable effects experienced by one's customers. What better way to reach your client, than to understandd their challenges, and offer to help them eliminate the challenges?

At TPU, our problem solving framework is big on generating lists, including lists of "Use Cases" of the various "actors" in the clients' domain. Tech-speak for capturing important details about most every facit of a consulting assignment.

It is easy to assure you that TPU will never be the "low cost provider" of a given good or service. But as Zig Ziglar asks, "Are you concerned with cost, or price?"

Not sure?

Call me.

-ski

P.S. Interestingly enough, the first entry in my current journal is from April 28, 2007. From Hilton Head Island's south end Starbucks at 9:32am (and the temperature was seventy degrees)! One list item of note: Renew lease. I did.

Jeff 'SKI' Kinsey, Jonah
ski@throughput.us
(330) 432-3533

Motivation :: What moves You?

2007-12-06T16:40:00.000-08:00

Motivation

Zig Ziglar's favorite word. One of mine as well.

Why do what we do? This past summer while back in Ohio, I bumped into a high school classmate. Not great friends, but we did cruise the boulevard on occasion. He retired from Timken in Canton, Ohio. We both were machinist. The biggest difference, I knew going into my junior year (the first of a two year program) that I would never work in a machine shop.

Notwithstanding the machine shop I helped acquired as a part of a LBO years later. I served as assistant to the president and integrated the data processing issues. Speaking of Timken, they sent us "The Letter" as it used to be called: implement EDI (Electronic Data Interchange) or stop supplying components. We did. But I digress.

TPU (WWW.THROUGHPUT.US) is biz number ten.

Why?

Motivation. Frustration. Just because.

Because there are problems that I am well suited to solve. Perhaps uniquely so. Because of those "certain needs" that I spoke of in an earlier post. Because as Tim Pipher told me, "You can only play so many rounds of golf before its gets boring."

TPU is first and foremost a sales organization. As Zig is fond of saying, "Nothing happens until someone sells something!" Second, it is a consultancy. In 1989 I created micro/SKI to sell and service computer hardware. Why? No one was doing it the way that it should have been done. IMNSHO. But Dell was close. But in 1989, they still had a number of issues to sort out.

Strategy

Until you read and explore H. William Dettmer and his landmark book, Strategic Navigation, I would suggest that you are leaving a lot of money on the table. Look at your transactions for last month. What if you were to close just 20% more sales? What if on all those sales, including the extra 20%, your margins were improved by a mere 20%? One more "what if" — what if in the course of making those extra sales, with those extra margins, it took you 20% less time?

The key: Focus

If you are a business owner, headquartered and operating in the USA, and you would like to learn more, call me. Night or day.

Before your competition does.

-ski

P.S. Consider this challenge: Take Saturday off. Buy an Apple Mac Mini. The CRT you have for your PC will work fine. For now. Spend just 15 minutes playing around on the Mac. Question: When you finally looked up, how long had elapsed? If day has turned to night, may I suggest that you keep it?

P.P.S. Wondering what the Apple Mac Mini has to do with motivation? I wanted one. It is a cool product. So I was motivated to do the work necessary to afford one. I had been one of the first buyers of a Mac, back in 1984. But the corporate rat race had worn me down... in 2005 a project required I have a PC to run MS-Access. How boring. Un-Motivating. The Mac with built in open source tools (and the ability to install lots more, like SugarCRM) is fun. If you gotta work, make it as much fun as possible. Finally, my mini serves as a reminder that cool products are still possible. With the iPhone and new iPod touch (and the remote control I recently blogged about), Apple is "in" as they say. Are you motivated to make your company and its products cool? If not, quit. Go home. Get out of Dodge.

Or, find a way to make it cool.

Hire SKI.

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Jeff 'SKI' Kinsey, Jonah
ski@throughput.us
(330) 432-3533

The System :: For Results

2007-12-04T17:12:00.000-08:00

Input :: Process :: Output

What comes to mind when you think of a system?

Results.

If results are not the first thought that comes to mind, it is not too late. Life oft attempts to fashion the landscape; not necessarily in a positive manner. Consider the CPU (central processing unit) of a computer. Like my Apple Mac Mini.

It has a purpose. A goal. A mission statement.

Input goes, well, "in", and some sort of processing takes place. As I press the "Z" key, the alphabetic character known as "Z" appears on my screen. The ultimate result of so much processing is the web page you are reading. A great system.

TPU (WWW.THROUGHPUT.US) is a system. A problem solving system. "Suspects" have desires, say to achieve more. More market share. More (or some!) profits. Preferred vendor status. More fill in the blank.

As we court the suspect in order to determine if a match is possible (our ability to deliver results that would be of value), a system is being used. There are inputs, activities (processes), and a variety of outputs. Perhaps a formal bid. Our labour may give way to a "Prospect".

Maybe not.

It may not be obvious to the casual passerby, but TPU is a collection of systems. Which came first, the goal? Or the system? The dream! Once the dream was, well, dreamed, it was obvious that a very robust methodology would be required to accomplish it. Sooner. Rather than later.

Purple Curve Effect to the rescue!

The are few accidents in the universe. There is no better framework for jumping into action than the approach I carefully documented in the book, Purple Curve Effect. Consider buying your very own copy. Today. Do not pass "GO". Until you do. Please do not launch until you have read it at least twice. FYI: I read it almost every month. Yes. monthly. It is that profound. However, your mileage may vary.

One of the lists that I created for the launch of TPU was a list of required reading. Col. John Boyd required his faithful to read over 300 books! My list was just slightly over 12. What quickly emerged was a blueprint of the perfect startup. Perfect for this moment in time. Given the suspects and the prospects in the business commmunity seeking to "do more with less."

Timing is everything.

However, that was not one of the 12+ books.

Start with Purple Curve Effect — SKI's Throughput on Command.

-ski

P.S. In case you have not experienced my approach to applying the Constraints Management Method (CMM), let me share the $64 dollar word that makes all the other words take on real value: dynamic. I can only know the the next, best, book for you, once I know more about your dream!

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Jeff 'SKI' Kinsey, Jonah
ski@throughput.us
(330) 432-3533

Mission Statement :: The Goal

2007-12-02T05:02:00.000-08:00

To Make Money Now

And More in the Future

I have worked with more than one hundred business owners and/or CEOs over the last twenty plus years. On a variety of adventures. I have started a number of businesses. Had to make payroll week in and week out. Rain or shine. The memory of buying that fifth desk, fifth file cabinet, and third Wyse terminal (two of us used PCs) will forever be etched in my mind.

In all that time, the clearest explanation that anyone ever gave for their existence was Eli Goldratt. He defiantly says that business owners should have an overriding goal or purpose, "To make money both now, and more in the future."

Yes, there are people like Steve Jobs that exceed their wildest expectation by choosing another path. However, my focus for WWW.THROUGHPUT.US is more base. Sorry if that offends you.

Yet, money alone has rarely motivated me. Until recently.

As one of the stars in the film, "Real Genius" says, "Recently, I have become aware of certain needs." I guess the passing of time can alter one's vantage point.

TPU (Throughput.US) is the result of all my adventures to date. Including the five years that I spent a great deal of time roaming the USA on a variety of motorcycles. Yet the most impactful data point was the call from Tony Rizzo.

"Hey Jeff, would you consider working your eCommerce magic on my TMx project planning tool? I want users to be able to try the tool for free, then simply purchase online quickly and painlessly if they find value."

Of course today, you know that I ultimately said, "Yes." But I said "no" first and at least on one more occasion. I did the eCommerce thing. Built multimillion dollar web sites. My eDivision.net LLC was, "The Power behind the Submit button!" I was burnt out.

But a friend in need... so I agreed.

That tiny spark sent me down a path of new adventures, that led to this creation of TPU.

And the launch, effective December 1st, 2007.

The Secret

The law of attraction is real. Untold wealth has and will continue to accrue to those that harness this law. It is not a theory. Not a wish. Not smoke and mirrors. The Purple Curve Effect is my (and Thayer Bennett's) representation of that simple truth. I often call it focus.

The Goal

Make Money Now
Make More Money in the Future
Make a Real and Lasting Difference in the World

-ski

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Jeff 'SKI' Kinsey, Jonah
ski@throughput.us
(330) 432-3533

Wanted: Project Management Gurus

2007-12-01T01:24:00.000-08:00

Wanted: Project Management Gurus

Requirements, in order of importance:

1. USA resident
2. Constraints Management "Jonah"
3. 2+ years Constraints Management experience
4. 1+ years Critical Chain experience
5. Project Management Institute Exposure
6. Ability to focus on task
7. Active Blogger

NOTE: This list has been revised significantly in the last 30 days. For those that have read Purple Curve Effect, you know testing is important. A must for those that understand Col. John Boyd and his OODA Loop.

Interested? Please contact me.

-ski

P.S. I know what you are thinking, "Hey SKI, I have four out of seven, can I help?" Perhaps. I would still like to hear from you. One of the components of THROUGHPUT.US is affiliation, and the ability to profit from your connections in the business world. At a minimum, point your newsreader to our RSS feed, and stay in the loop!

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Jeff 'SKI' Kinsey, Jonah
ski@throughput.us
(330) 432-3533 (cell)
(954) 252-3927 (fax)

Welcome to www.Throughput.us

2007-11-24T18:20:00.000-08:00

December 1, 2007

The end of the beginning... I am pleased to announce that WWW.THROUGHPUT.US is an authorized reseller of the Project Planning software from Spherical Angle: cc-Pulse™ and cc-MPulse™. If you use MS-Project, including Office Project 2003 Enterprise Project Management (EPM), then you might just find answers to questions that you thought were impossible to answer.

For example, "Given our current status, which is roughly two-thirds of the way into the heart of a twenty-seven month project, how close are we to actually completing on time, in budget, with all the promised features?"

Yes. Spherical Angle is that good.

But it is more than good software. It is based on sound and rigorous logic. Until you hit that first "smart tracking" calculation, you simply cannot appreciate the effort that has gone into cc-Pulse™ and cc-MPulse™.

But please do not take my word for it, download your own copy:

http://www.sphericalangle.com/Mpulsedownload.asp

Better yet, call me. Together, let us tackle your biggest obstacle. Or as I like to say, "Together, we will determine your planning department's weakest link, apply rigorous 'cause-and-effect' logic to determine your best strategy and/or tactics, then together, we apply focus. To overcome any roadblock."

Most professionals are well aware of the power of focus. Few have experienced the successes possible with laser-like focus. Bruce Lee knew. I know. Do you?

Call me.

The best time to start a new habit is yesterday.

-ski

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Jeff 'SKI' Kinsey, Jonah
ski@throughput.us
(330) 432-3533