IESE Business School trounces Harvard Business School yet again ...

Sharing a good news with my friends .. Harvard Business School is considered the Mecca of management education. It has shown the world over the last one hundred years how the principles of management got formulated in its classrooms and faculty rooms. Set up in 1958, Harvard helped the University of Navarra in Spain set up the first business school (IESE) under Harvard tutelage outside US to offer the 2 year MBA program. That is how IESE was born. Formerly it was called ESA.

 

IESE is also the first business school to offer the 2 year MBA program in Europe..

 

As per the recent Financial Times rankings for 2023, IESE Spain at global #3. It is our son's (Easaw George's) alma mater  .. 🙏 

 

“Excellence is an art won by training and habituation. We do not act rightly because we have virtue or excellence, but we rather have those because we have acted rightly. We are what we repeatedly do. Excellence, then, is not an act but a habit.” - Will Durant

 

When Easaw secured admission to this school, after some heavy work and a good GMAT score with 6 years of work experience in Deloitte US India in Bangalore, I had promised him that all of us would be attending his convocation in Barcelona, come what may. We kept our word. 

For just four hours of his convocation at IESE and to motivate him, we spent almost  10 days, 38 hours of flying and a good amount of money to attend the convocation. Lot of good memories remain.

Financial Times Global MBA rankings

Top 10 B-schools in the world: Class of 2023

1. Columbia Business School: The United States

2. INSEAD: France/Singapore

3. IESE Business School: Spain

4. Harvard Business School: The United States

4. Stanford Graduate School: The United States

6. SDA Bocconi School of Management: Italy

7. University of California at Berkeley: The United States

8. Cornell University: The United States

9. Northwestern University, Kellogg School of Management: The United States

10. Yale School of Management: The United States

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Booth School of Business, Chicago set up with generous help from the Rockefeller Foundation, which was in the top group last year, has fallen out of the top ten this year. Wharton and Ross School, Uty of Michigan are the other schools missing from the top ten list this year. 

OpenAI has this to say on IESE - 

IESE Business School is a prestigious graduate school of business located in Barcelona, Spain. It was founded in 1958 and is affiliated with the University of Navarra. IESE has consistently been ranked as one of the top business schools in Europe and worldwide by various ranking agencies.

IESE offers a range of MBA, Executive MBA, and executive education programs, as well as Ph.D. programs. Its faculty is comprised of world-renowned professors who have expertise in a variety of business disciplines, including finance, strategy, marketing, operations, and organizational behavior. IESE's teaching approach is based on the case method, which involves analyzing real-life business scenarios to develop problem-solving and decision-making skills.

IESE's MBA program is highly selective and competitive, with an acceptance rate of around 15%. The program is known for its international focus, with over 80% of the students coming from outside of Spain. The program also offers a unique opportunity for students to participate in global immersion experiences in locations such as New York, Sao Paulo, Shanghai, and Nairobi.

IESE's Executive MBA program is designed for experienced professionals who wish to enhance their leadership skills and take their careers to the next level. The program is offered in both a modular format and a weekly format to accommodate the busy schedules of working professionals. The program also includes global modules in locations such as Silicon Valley, Shanghai, and Munich.

IESE's executive education programs are tailored to meet the needs of executives and companies looking to improve their leadership skills and business performance. The programs cover a range of topics, including leadership, strategy, finance, marketing, and digital transformation.

In addition to its academic programs, IESE also conducts research on various business topics, including entrepreneurship, corporate governance, and social responsibility. The school has several research centers, including the Entrepreneurship and Innovation Center and the Center for Globalization and Strategy.

Overall, IESE Business School is a highly respected institution that offers world-class business education and research. Its commitment to excellence and its focus on developing ethical and responsible business leaders make it an attractive option for anyone looking to pursue a career in business.

George..

Most effective tools in Lean Operations

There are several lean methodology tools available, and the effectiveness of each one depends on the specific situation and context in which it is applied. However, some of the most commonly used and effective lean methodology tools are:

1. Value Stream Mapping (VSM) - This tool helps identify the steps in a process that add value and those that do not, allowing organizations to focus on improving the value-added steps.

2. 5S - This tool helps create an organized and efficient workplace by focusing on the five principles: Sort, Set in Order, Shine, Standardize, and Sustain.

3. Kanban - This tool is a visual management system that helps teams manage and optimize their workflow by limiting work in progress and focusing on completing high-priority tasks.

4. Just-in-Time (JIT) - This tool involves producing and delivering products and services only when they are needed, reducing waste and improving efficiency.

5. Kaizen - This tool involves continuous improvement and focuses on making small, incremental changes to improve processes and increase efficiency over time.

Ultimately, the most effective lean methodology tool depends on the specific needs and goals of the organization and the specific process or system being analyzed. It is often beneficial to use a combination of these tools to achieve the best results. 

However at a personal level I have found Value analysis to be the most effective tool for personal development. Analysing each of our actions to identify value and remove wasteful activities or actions is definitely going to be the most useful.

 In the initial stages value analysis is reactive but in later stages it is very proactive in nature.

What is Heijunka in Toyota Production?

Heijunka is a Japanese term that refers to the process of leveling or smoothing production processes in Lean manufacturing. The goal of Heijunka is to balance production so that a stable and consistent rate of output can be achieved, with minimum inventory and waste. This helps to reduce the variation in production and meet customer demand more effectively. The Heijunka process involves the use of pull systems, takt time, and Kanban signals to achieve a smooth flow of work and reduce the effects of uncertainty and variability in the production process.

 

8A, 8B, 4C, 6D and 3E being done in 8 hrs

More often when we have many tasks to be done, we tend to finish them sequentially one by one. We say we can only focus on one task, let me finish it before going to the next one. More often than not, when we finish one task, may be the highest priority one, we get tired or lose interest in completing the others and decide to postpone those activities to another time.  We postpone to another time or day or procrastinate to the next occasion .. 

 

Toyota Production System on the other hand, believes in uniformly distributing the work during the available time so that no work is completed hastily and no work is postponed, ie. all work gets done with uniform pace spread right across the available time.

Industry 4 and industry 5, how they relate to each other ..

We all know that the recent five centuries have been very important and monumental in human civilization and development. From Industry 1.0 (1760 to 1840 AD) that focused on steam engines, printing press and the textile loom to Industry 2.0 (1870 - 1940 AD) where invention of electricity was a major prime mover , humanity developed a lot in the course of 200 years. Industry 2.0 saw the development of extensive transportation and communication networks with the development of the telegraph. (click here) The invention of mass production through the assembly line that came up at the Ford motor plants in US was a major development that saw improvement in industrial productivity and output.

Industry 3.0 known as the digital era starts with the invention of the digital computer with the development of the information theory system by Claude Shannon around 1940s. The first digital computer ENIAC came out in 1955. The invention and development of Internet from the text era to the multi media era, world wide web (www) was also a great development in Industry 3.0

Industry 4.0 refers to the fourth industrial revolution, characterized by the integration of advanced technologies such as artificial intelligence, the Internet of Things (IoT), and automation into manufacturing and other industries, Augmented Reality / Virtual Reality, 3D Printing, Bog Data and Block Chains. We are now at the frontiers of Industry 4.0 and are already visualising changes happening in the AI and 3D printing areas, not to mention of Augmented Reality changes taking place in the field of entertainment. Google Maps is one of the most popular AI app that is being used across the world freely by the public as well as corporates innovating to give a new experience to the customer be it in commerce, banking, logistics, healthcare retail and so on.

 

Looking from an industrial / manufacturing perspective we find the goal of Industry 4.0 is to create smart factories and other smart industrial systems that are highly efficient, flexible, and capable of delivering personalized products and services. The term is often used in the context of Germany's Industry 4.0 strategy, which aims to promote the adoption of these technologies in order to maintain the country's position as a leading industrial power. (click here)

 

Industry 5.0 refers to the fifth industrial revolution, which builds upon the human adaptability, environmental sustainability, digitalization and interconnectivity of Industry 4.0 by incorporating advances in areas such as biotechnology, quantum computing, and artificial intelligence. Industry 5.0 is characterized by the seamless integration of physical and digital systems, leading to new levels of efficiency, innovation, and value creation. 

 

The focus is on creating a more sustainable, human-centered industry that leverages technology to address societal challenges such as climate change and income inequality. The exact definition and scope of Industry 5.0 is still evolving, but it is generally seen as representing the next stage of industrial development that will shape the future of work and economic growth.

According to the European Union Industry 5.0 “provides a vision of industry that aims beyond efficiency and productivity as the sole goals, and reinforces the role and the contribution of industry to society.” and “It places the well being of the worker at the centre of the production process and uses new technologies to provide prosperity beyond jobs and growth while respecting the production limits of the planet.” - Jeroen Kraiijenbrink, Forbes, May '22

What are the similarities and differences in industry 4 and industry 5 ?

Industry 4.0 and Industry 5.0 share some similarities in that they both represent new stages of industrial development characterized by the integration of advanced technologies into manufacturing and other industries. They also both aim to create more efficient, flexible, and innovative industrial systems that deliver improved products and services to customers.

However, there are also some differences between Industry 4.0 and Industry 5.0:

• Focus: Industry 4.0 focuses primarily on the digitalization and automation of manufacturing processes, while Industry 5.0 places a greater emphasis on sustainability, human-centered values, and the integration of biological systems with digital and physical ones. Preserving earth's ecological and resource integrity by promoting circular economy, Carbon neutrality, renewable integration and resource efficiency will remain the focus of Industry 5.0 (click here)
  

• Technologies: Industry 4.0 is centered around technologies such as artificial intelligence, the Internet of Things (IoT), 3D Printing, AR/VR, Block chains and automation, while Industry 5.0 adds new technologies such as biotechnology, quantum computing, and advanced materials to the mix.

• Outcomes: Industry 4.0 aims to improve efficiency, flexibility, and innovation in manufacturing, while Industry 5.0 has a broader goal of creating a more sustainable and equitable industrial system that addresses societal challenges such as climate change and income inequality, focusing on efficient, sustainable and recyclable resource usage.

Overall, Industry 4.0 and Industry 5.0 represent two distinct stages of industrial development that build upon each other, with Industry 5.0 incorporating new technologies and values to take industrial systems to the next level.

Bain research published in HBR '21 (Future proofing your organisation, Micheal, Garten and Schwartz, Sept, '21 HBR) speaks of how Industry 4.0 is redefining our organisations and employees helping align them with the pressures of Industry 4.0 and 5.0.

Overall, the environment looks set for our technological transformation to the new paradigms that will redefine the way we act, interact and live through the next hundred years as we move from mechanisation, electrification, automation, digitalisation and personalisation in the five IR stages.

George.

Learning from the tennis ball Kaizen game played on 31 jan 2023 in ASB

The "Tennis Ball Kaizen" game that was played in the ASB MBA sem4 Lean Operations class is full of valuable lessons to learn. It is a continuous improvement exercise used in Lean methodology that aims to identify and eliminate waste.

The playing of the game helped students to get the concept of Continuous Improvement embedded in their minds. Some of the lessons that can be learned from playing this game include:

1. The importance of teamwork: Participants work together to find and eliminate waste, emphasizing the importance of teamwork and collaboration. Everyone in the team gets to participate, get heard and contribute his ideas.

2. The value of continuous improvement: The game demonstrates the continuous improvement process and the benefits of continuously seeking ways to improve processes. It reinforces the belief that continuous improvement is a never ending process that keeps the participants always on their foot looking for practical, simple steps to reduce and eliminate wasteful actions.

3. Identifying waste: Participants learn to identify different types of waste in processes, such as wasteful actions and movements, overproduction, waiting, defects, over processing, unused talent, and unnecessary motion.

4. Root cause analysis: Participants learn to identify the root cause of waste and to come up with solutions to eliminate it. Asking why five times mostly helps to identify the root cause and plan as a team to eliminate it.

5. Implementing solutions: Participants learn to collaborate, share, discuss, listen to other ideas and open up on how to implement solutions to eliminate waste and continuously improve processes.

6. The operational excellence that is at the core of Kaizen, ie. Continuous Improvement gets reinforced by this tool

Overall, the "Tennis Ball Kaizen" game provides an effective and interactive practical way to learn and apply the principles of Lean methodology and continuous improvement. The impact of Artificial Intelligence in Lean operations is limited but can be used to

1. Automate and optimise repetitive processes

2. identify areas for improvement by analysing data

3. Data analysis can also identify patterns helping take correct decisions

4. help identify future trends in the manufacturing shopfloor or service sectors

Some of my earlier writings on the lessons from the Kaizen game and reading are given below

1. Lessons learnt, student responses click here

2. Gary Hamel outlines Employee Driven Problem Solving as one of the greatest 12 innovations of the past century click here

3. Creating a Kaizen culture, based on 2019  HBR article by Arvind and John click here 

4. Kaizen is at the topmost P in the 4Ps of Toyota click here

This gives an interesting explanation of the principles behind kaizen, Mohini Mohandas talks of the 10 broad principles of Kaizen  click here  

George