RISKLESS Innovation (and Other Fantasies)

Creating bold new processes and dramatically improving existing ones is an interesting challenge. Technical questions abound, certainly.

However, these are far from the only challenges. Intelligent risk management is another key factor in successful process engineering efforts.

Everybody loves the benefits of great process engineering projects. These upsides are pretty clear and obviously attractive to the process owners. These benefits include: the creation of new products and manufacturing capability, increased profits, and more robust processes.

However, ambitious projects are inherently risky, and there is no such thing as a free lunch.

As Richard Feynman said:

“For a successful technology, reality must take precedence over public relations, for Nature cannot be fooled”.

A new research concept might not be manufacturable after all, despite the best possible efforts. An innovative project to improve current production might be impractical as it is exposed to the rigors of the production environment. These things happen as we come up with great new processes.

A strong stomach is required to deal with these risks. Sometimes, difficult decisions must be made and rough patches in projects must be endured.

What is helpful during these challenging times is:

• Keep the why of the project in front of you so you understood why this effort was begun in the first place.

• Clear-eyed evaluation of the alternatives without excessive consideration of the sunk cost.

• Repeated testing to determine the practical manufacturing capability. This must be done in a predetermined, ruthless, and very controlled manner.

• Discussion of other options such as parallel paths or living with current capabilities.

• Examine the design of the process and consider if a redesign might aid the current situation.

• Being proactive and willing to recommend the work be stopped if it does not make sense anymore.

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My main learning from this line of thinking is that risk is an inherent part of the innovation process. Great manufacturing processes are not easily or casually built. Risk cannot be eliminated, and it should not be ignored. Unrecognized risks must be understood, made visible and dealt with swiftly and decisively.

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YOUR CHALLENGE THIS WEEK

Please think about your most risky process projects over the past 5-10 years…

• How did you manage the project risks as the projects unfolded?

• Are there (costly or painful) lessons from failures you need to be sure to not repeat? What simple system or checklist can help you avoid these risk-management problems in the future?

What have been your most valuable and insightful risk management experiences and lessons? We can help you systematically understand and manage your risks, enabling you to sleep a bit better at night. Please give us a call so we can help you manage your risks while still pursuing bold projects.

If you email me I’ll get back to you promptly, thanks.

All the Best,

Marty

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