Helios Factory, Germany 1892
A former boss and mentor emailed me this story a while back. I’d give credit to the author if I could, but it’s one of those random internet stories that go around the world a dozen times, and get changed along the way. In fact, I’ve heavily edited the story for content and added a title, so maybe it bears little resemblance to the original. In any event…
Toothpaste Engineering
A toothpaste factory had a problem: they sometimes shipped empty boxes, without the tube of toothpaste inside. The problem was thought to be in the production line setup.
Manufacturing engineers will be quick to point out the difficulty in designing 100% reliable production lines. Small variations in the environment, worker attitude and moral, lighting, and other small imperfections which can’t be engineered out of the equation must be controlled with quality assurance checks up and down the production line. If you don’t, the eventual outcome is customers getting mad at you and switching another brand instead.
A woman worker driving a trolley in the National Shell Filling Factory - Chilwell, England 1917
Understanding how critical this issue was, the CEO of the toothpaste factory got the top people in the company together and they decided to start a new project, in which they would hire a consultant, an outside engineering company to solve their empty boxes problem. Their own inside engineers were already stretched too thin trying to keep production in the factory going.
The project followed the usual process: budget and project sponsor allocated, request for quotation, third-parties selected, and six months (and 8 million bucks) later they had a fantastic solution — on time, on budget, high quality and everyone in the project had a great time.
The engineering consulting company solved the problem by using high-tech precision scales in the production line that would sound an alarm bell and flash lights whenever a toothpaste box would weigh less than it should. The line would stop, a line worker would walk over and yank the defective box, and then restart the line.
A while later, the CEO decides to have a look at the Return on Investment of the eight-million-dollar project: amazing results!
No empty boxes ever shipped out of the factory after the scales were put in place. Very few customer complaints and they were gaining market share. ”Now that’s some money well spent!” — he says, before looking closely at the other statistics in the report.
As it turned out, the number of defects picked up by the scales was exactly zero after three weeks of production. There should have been several dozen rejects a day, so maybe there was something wrong with the report.
The CEO had his inside engineers look at the report, and after some investigation, the engineers come back saying the report was actually correct. The scales really weren’t picking up any defects, because all boxes that got to that point in the conveyor belt were good.
Puzzled, the CEO travels down to the factory floor, and walks up to the part of the line where the precision scales were installed. A few feet before the scale, there was a $20 desk fan, blowing the empty boxes out of the belt and into a bin.
“Oh, that,” says one of the workers “one of the guys put it there because he was tired of walking over….. every time the damn bell rang“.
So what’s the moral of the story? Just what my former boss was always fond of saying: listen to the worker bees, they’ll save you money.
The grunts who work on the production floor are just as smart as the management, and come come up with innovative ways to same time and effort. Japanese industry, with their collective approach to problem-solving and quality circles, has made good use of this principle.
How about that second photograph? How would you like to have a job driving a trolley train full of explosive 6″ howitzer shells? Might that be a little risky? As it turned out, there was a huge explosion at the National Shell Filling factory in 1918, killing 137 people. Maybe the ladies who worked on the factory floor of the National Shell filling factory might have had a suggestion or two on how to properly store TNT.
Listen to the worker bees…
Awesome story, I hadn’t heard it before.
Reminds me of another I heard: NASA spent 4 years and $25 million to engineer and build an ink pen that could write in space, upside down, anywhere. The Soviets…just used pencils.
John @ Married (with Debt) recently posted..Job Loss Protection: An Emergency Plan
Well, the story is apocryphal, but I’m sure many others like it have occurred. I love the Soviet example. Much the same way they changed the barrel on a T-72 tank. The crew could simply drive it over to a down-sloping embankment, put it in park, unscrew the old barrel, and screw in a new one. For the same operation on an Abrams, it’s a fully equipped workshop with teams of tech specialists.
What if there was a giant desk fan blowing shells off the conveyor? Sounds like a recipe for a giant risk, haha.
PK recently posted..Predicting the S&P 500 – January 2012 Edition
If I had something like that, it would be my biggest fan.
Politicians should read this, maybe we actually get something fixed instead of just complaining about it.
krantcents recently posted..The 3 C’s of Success
Indeed… but politicians aren’t exactly known for innovation and risk-taking.
That is quite the story 101 – always listen to the people on the ground, they’ll figure out the easiest (and usually cheapest) way to solve the problem, but that does beget the question: Would the fan have gotten installed if there was no scale and no alarm? The guy was tired of walking over there and shutting off the alarm, which had nothing to do with whether or not the boxes were filled
Jeff @ Sustainable Life Blog recently posted..Becoming A Vegetarian
Good point, Jeff. Which is not to say that the workers might have not volunteered the fix if they’d been asked, pre-consultants.
I love a good story. I guess my line of thinking is similar to Jeff’s. Why didn’t the worker just develop this solution in the first place pre-8 million dollars? But then again, it’s quite possible the higher ups never asked any of their workers to provide a solution.
And another thing. Why the heck does it take $8 million to solve a $20 problem? There’s a lesson in there that applies to regular folks.
Shawanda @ You Have More Than You Think recently posted..20 Rules to Follow After You Quit Your Job
Hi Shawanda – It might be that human trait, to assign quality to price regardless of value. We just spent millions, it *must* be a good solution.
Good one!
Love this story! As somebody who has worked on assembly lines in big factories, it drove me nuts when the high paid engineers with their fancy college degrees would come in and change the way we did our jobs without ever attempting to do the jobs themselves first. In most cases, they never even attempted to ask us “worker bees,” our opinions on how to improve the line. More often than not, their solutions only made production more difficult.
Matt recently posted..Creating Income From a Dying Profession, The Stay-At-Home-Mom
Hi Matt – in my day job where I outsource steel fabrication, from time to time we like to talk to the shop fabricators, and see if they’ve come up with any tricks to save time and money. Just talk and walk around. It’s a hive-mind approach on a small scale.
Very interesting story. You are very right. We need to manage from the bottom up so to speak. The people on the ground floor know the business best and can really contribute to decisions for the future. At my job I always try to engage people from all levels for this very reason.
Miss T @ Prairie Eco-Thrifter recently posted..Bond Laddering for Retirement
Hi Miss T, I’m not particularly fond of unions on a public scale, but I quite like the way they function in Germany. There, very often the union representatives have a seat or seats on the company board, and are very involved in company strategy. Perhaps a contributing factor to Germany’s reputation for quality and strength in manufacturing exports.
Which is not necessarily to say that it could be replicated elsewhere. Just like Swedish socialism is really nifty for Swedes and only Swedes, the German approach to unions might be a cultural fit only for Germans.
That’s a very good takeaway. Too often, “leaders” discount the ideas of workers instead of using that intellectual capital. One can get profound insights by connecting with people who are in the field.
Roshawn @ Watson Inc recently posted..3 Myths Regarding The Great Idea
Hi Roshawn – I like your quotes around “leaders”. I wonder how much ego gets in the way with certain self-centered managers.
There’s a related problem at most companies I’ve been associated with. The guy at the top doesn’t really want to hear what the workers think. He’s too busy lovin’ the VPs around him telling him that it’s the world’s most awesome operation…
AverageJoe recently posted..Should I Start an Emergency Fund or a Roth IRA?
“Loving the VP’s” LOL!!
I worked for a CEO a few years back that did exactly that.
Great story. I read a story about Toyota manufacturing line in the old days and they have a constant improvement philosophy. Anyone can suggest a change and if it works, the update will propagate throughout the company. It’s too bad most companies are top down these days.
retirebyforty recently posted..January 2012 Cash Flow
Hi RB40 –
Constant improvement is a key tenet behind ISO 9001 certification. Drives me nuts when I look at a company’s ISO manual and see a zero in the Revision box. (you just gave me an idea for a new post, by the way. Thanks)
Great story Andrew. This lesson reminds me of the way NASA tackled the problem of developing an effective writing implement for zero gravity. Of course they thre all kinds of resources at it, and produced a zero gravity pen…at great expense. The Russians used a pencil.
Hunter – Financially Consumed recently posted..Balancing Home Buyer PMI Options And Exit Strategy
Hello Hunter -
We’re in the middle of a ‘step change’ right now in my day job, and the KISS principle has to be reinforced each and everyday. There are some folks who are just drawn to complexity as a solution, as if motion expended has in itself intrinsic value.
Simplicity is the essence of great design – a wise person once said this. I hope your ‘step change’ is not a painful transition. Have a great weekend.
Hunter – Financially Consumed recently posted..Financial District Invests In Bomb-Proof Information
Great story, I really enjoyed reading it! This line is so true “The grunts who work on the production floor are just as smart as the management, and come come up with innovative ways to same time and effort.”, I saw this all the time in high school when I worked as a busboy at a local restaurant. Sometimes it felt like management had no clue as to what was going on.
Kanwal Sarai @ Simply Investing recently posted..Monthly Blog Roundup – Bringing You The Best of the Best
That’s a pretty hilarious story. 99.999% of the time the simplest solution is the best one! Engineers have a tendency to complicate things… I’m reminded of this story (I hope it’s ok to post a link) about trying to improve the bicycle… http://worsethanfailure.com/Articles/The_Complicator_0x27_s_Bicycle.aspx
Dollar D @ The Dollar Disciple recently posted..Case Study: House #1
Thanks, DD. That’s a hilarious re-design. Next up, using foot power to drive a car. It worked for the Flintstones, right?
Very entertaining post 101C! We see so many CEOs clueless about the company they are representing on the products they ship. Steve Balmer of MS comes to mind!
Himself never having programmed doesn’t really understand what it takes to develop software, though I admit his ‘developer’ antic was entertaining to watch!
MoneyCone recently posted..This one thing will make a huge impact on how your car handles in snow and ice
Yes, he did a great job making Microsoft *much* more relevant than Apple in popular culture.
Great story! I have not heard it before. Sounds like some of the practical and cost-effective solutions we came up with on our farm. You just use what you have, what is the easiest to implement, and what will allow you to get on with the rest of the days’ work.
Amanda L Grossman recently posted..The Zero Sum Financial Game: Ideas to Help You Juggle the Month
Hi Amanda, it’s not just an internet story. I’ve got several real-life examples from my day job. Simple solutions proposed by non-engineers or outsiders, but the not-invented-here syndrome prevails.
[...] Our soon-to-be-esteemed Blog Post of the Week! is by one of my favorite writers on the internet, 101Centavos, in his post Toothpaste Engineering and a Career Tip From a Former Boss. [...]
Great story. The higher level of responsibility one gets, the more detatched you naturally are to the day-to-day gruntwork of the business. Yet, it’s that “in the trenches” work that is often where traction happens: be it manufacturing processes as in this example, sales reps with customers, or whatever the case may be. Input and some empowerment of the worker bees is really important.
Story reminds me of how a former president, a few decades ago, seemed astonished by grocery scanning at a supermarket. Nevermind that the technology had been out for a while already
Squirrelers recently posted..Going Beyond the Resume: How will Job Searching Change in the Future?
Hah! I remember that incident. Made him look a bit like a boob.
[...] 101 Centavos, we have a story about companies who fail to seek the advice of their employees, and pay the [...]
Too funny. If this indeed happened (I know it might be entirely fictitious,) I hope the guy with the fan got a raise.
I saw a program about women making some kind of bullets in factories in WWII…scary stuff.
femmefrugality recently posted..Tax Help for the Deaf
Perhaps the fictional character got a raise. More than likely the consultant was called back to design a top-of-the-line blower system.
That is an awesome story! Such a simple solution to an easy problem is someone would just have listened!
Robert @ The College Investor recently posted..Preparing For Your First Tax Return
Hi Robert – I used to play indoor soccer with this Israeli guy, a great attacker. When we’d be on a fast break, he would always caution everyone with a shouted “Seeemple!”. Don’t get fancy, don’t get cute, just square the pass from the wing and set up the shooter. Seemple.
[...] Centavos once again finds itself in the roundup, due to this piece on clever engineering. How can I resist linking [...]
That was a great story…would fit in well at any organizational management course!
American Debt Project recently posted..Do I Need A Master’s Degree to Figure Out Extreme Couponing?
I’ve thought about that, ADP. Good story to memorize and practice delivering in front of crowds, to make a point. Anyone in manufacturing or business for that matter, would get a kick out of it.
[...] 101 Centavos had a neat little story about trusting front line people who engineer toothpaste. [...]
Great message, I’ve always thought the same. There needs to be more collaboration between the different levels within organizations. I hate when managers have the attitude that they “know” everything.
World of Finance recently posted..Finding a Bank that Fits Your Needs
@ WoF – one of the benefits of a ‘flat’ organization. I’ve met a number of effective leaders who surround themselves with team members that know more than they do in different areas.
I love that story. I used to be a process troubleshooting person. My job was to go into customers who were having quality problems and help them fix them. I was a “subject matter expert.” One of the first things I always do is ask to talk to the technician. The guy pulling the parts and running the machine. You wouldn’t believe how many times they have the solution but “management” doesn’t bother listening to what they have to say. It takes an “expert” to come in and regurgitate what the techs knew all along.
Great advice.
First Gen AMerican recently posted..Babci on Remodeling: Do 1 Room per Year
… and an outside expert at that. Good point, Sandy. All the more reason why consultants will always have work. Fresh eyes always see different things.
I worked in manufacturing for years. We swayed between trying to work with the workers vs. battling them (usually aligned around upcoming contract renewals). The good ones really do offer up some great suggestions and solutions. Even if things are acrimonious in general, it’s important to listen to the ones that want to be heard. It would be a shame to miss a great safety, design or efficiency idea.
Darwin’s Money recently posted..Diversification Strategies for Better Bond Upside
Darwin, I imagine that working in a manufacturing environment where unions play a strong hand can be challenging. My experience has been limited to more “guild-like” trade unions, like the Boilermakers. I prefer that idea rather than thinking along marked battle lines.
Awesome story! Most expensive doesn’t always mean the best. I recall a company I worked for. Poured tons of money on a project, there were so many glitches and bugs, it was scrapped. But not after burning through tons of cash. Unreal.
Buck Inspire recently posted..Facebook IPO: My Missed Millionaire Opportunity
Top of the morning, Buck! I suppose companies like that don’t stay around for long.
Great post. I see this often in colleges when the president of the college has never taught a day in her life yet passes down rules that affect all of the teachers.
Melissa@PersonalFinanceJourney recently posted..How Do You Know When a House is Right for You?