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Resources and gender pay inequality

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Gary KapanowskiMoeller ManufacturingCLSSMBB

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� The 8th Waste� Examples in Silicon Valley� American Association of University Women’s Study� Gender Pay Inequality’s Financial Impact� Violation of Toyota Production System (TPS)� SAP: Internet of Things – Manufacturing 4.0� Action Plan: Lawrence Technological University PDC

Women’s Forum� What Can We Do?

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�

Why is this still occurring?

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� 7 wastes in the Toyota Production System (TPS)

o Transportation

o Inventory

o Motion

o Wait

o Over-Production

o Over Processing

o Defect

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� The 8th waste is the use of Resources or Talent o De-motivating of the workforce

o Not incorporating your team members in the input phases of the process

o Not recognizing success

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� People Focusedo Know what the expectations are for the tasko Method to keep problems from returningo Influence & correct problems

� Establish mutual trusto People developmento Promote team worko Voluntary continuous improvemento Create positive environment for problem solving

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� Why LEAN is not a “One Size Fits All” applicationo Implementation is what is expected (adjust) in the current cultureo Environmento Social o Economic

o As explained in the book: “The Machine that Changed the World”, Womack, Jones, & Roos• LEAN is not a singular culture driven methodology• It can be implemented in any situation• Adjusted to your environment with people as the focus for

continuous improvement

� LEAN will change over time7/31/2015 8

� The 8th waste is the use of Resources or Talent o Knowledge worker named by famed management consultant

Peter Druckero Management’s responsibility to align the tasks with the

resources

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� The 8th waste is the use of Resources or Talent o If performed properly, the knowledge workers will be more

motivated to accomplish their tasks and the organization will produce profits

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� The results on equal pay for womeno There have been many studies to indicate the wage inequality

o The only issue is really by how much• 2% to 4%, segmented data• +20%, macro view

o “Coaching the Alpha Male”, Harvard Business Review study• Teams and collaboration management style more favorable to

produce positive results in today’s business environment • More common with women managers than men• Metrics should improve for women in future

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� Results from within the organization on equal pay

o Over the past 25 years, women have outpaced men in earning college degrees by 60% to 40%

o However, the top management and board positions held by women are 20% and 25% respectively

o The variance still exists after 50 years of the Equal Pay Act

o Why do we see such a large variances?

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�

One industry example

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� Empirical and Statistical results on equal pay for womeno The “Lean In” book by Facebooks COO Sheryl Sandberg

demonstrated the issue on a hiring experiment within Facebook

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� Twitter funds frat party for employees, highlighting Silicon Valley bro culture: By Jennifer Booton : 7/22/15

� Exposed by female Twitter employee then activist group Global Tech Women using #diversitymatters and #brogrammers

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� Non-diverse work culture in Silicon Valley

� Among the top tech companies, glaring percentages

� Twitter: 70% staff male, 90% tech jobs male� Facebook: 69% male� Apple: 70% male

� What is the diversity percentage at your workplace?

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� Non-diverse work culture in Silicon Valley

� Current class action lawsuits for discrimination:o Twitter: March 2015 Complaint by former software engineer

• Glass ceiling culture

o Google: March 2015 Complaint by former software engineer• Secret spreadsheet highlighting gender & minority wage inequalities

� Venture capital firm Kleiner Perkins Caulfield & Byers won a discrimination lawsuit filed by Ellen Pao considered as a landmark decision, 3/2015

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� Non-diverse work culture in Silicon Valley

� Utilizing US Department of Labor data from 2014

� Female software developers were paid 83.9% when compared to their male colleagues

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� Can you provide examples of the gender pay inequality?

� In your industry?

� At your company?

� At your volunteer organization?

� Discuss with another or as a team

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�www.aauw.org/research/the-simple-truth-about-the-gender-pay-gap/

www.aauw.org

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� A national study by American Association of University Women and National Partnership on Women and Familieso Equal pay is critical to families’ economic security

• With a record number of women in the workforce• 2/3 of women functioning as the primary earner in the family

o Women experience a 7% pay inequality or earn 93 cents when compared to men for college graduates just one year after graduation

• After controlling for factors known to affect earnings:• Occupation• College major• Hours worked

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� A national study by American Association of University Women and National Partnership on Women and Familieso As of 2013, women earned 77 cents compared to every dollar by a

man• The inequality was larger for women of color

• Pay inequality appears early in a woman’s career• After one year out of college, working full time, paid on average 82% of

male counterparts

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� A national study by American Association of University Women and National Partnership on Women and Familieso The difference between the 93 cent and 77 cent pay inequality

indicates:

• Different distributions for women and men, why?

• What do the distributions look like? (bimodal / skewed)

• Correlation between the data of men and women?

• What does the short and long term data tell us bout the process capability?

• 7% not explained, why?7/31/2015 23

� A national study by American Association of University Women and National Partnership on Women and Families

o Wage inequality disappears in 2086 for the state of Michigan

o Higher paying careers had larger disparity

o Average loss by women in career is $530,000

• This is the Cost of Poor Quality (COPQ) for this variance or waste• What does this represent for the economy?• Is this a zero-sum game?

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�

Market value impact on organizations

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� If we assume for our hypothesis test:

� Talent / skills are distributed evenly across genders

� Gender pay inequality and glass ceiling at C-suite exits

� If there is a misallocation of resources, the economic impact would indicate a market that is not in equilibrium and not maximizing profits

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� Predictive result:

� This dilutes talent at the C-suite

� Organizations with diverse C-suites has the ability to produce abnormal growth / profits when compared against male dominated C-suite organizations

� In our case, incorrect decisions would occur to devalue the market value of the non-diverse organization

� Market inefficiencies produce higher consumer prices and greater risk for recessions

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�

Toyota production system (TPS) and gender pay inequality

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� The heart of lean is eliminating waste (muda)

� Waste can be defined as anything that does not add direct value to the end service or product from the customer’s perspective

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Unnecessary movement of people; multiple hand-offs

MotionWaiting

Elapsed time between processeswhen no work is being done

Over-production

Making or manufacturing in excess of customer requirements; providing a

service that is not really needed

Over-processing

Adding unnecessary steps to aprocess; redundancies between

processes

DefectsAnything that does not meet

the acceptance criteria

InventoryMaterial or product that is used

to cover for inefficiencies

Transportation

Unnecessary movement of material or product

TalentDe-motivating the workforce

by not asking for inputor recognizing success

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TYPES OF MUDA: “TIM WOODS”

1. Transportation:2. Inventory:3. Motion: 4. Wait Time:5. Over-Processing: 6. Over-Production: 7. Defects: 8. “Separated” From Employee Creativity: Big Waste

IndustryDoes NotMatter

Quality is Free

Hoshin Kanri:

Long-term

meets short-

term goals

Use customer

input to improve

your products

and services.

2. Continuous flow “bring problems to the surface”

I. Long Term Philosophy

II. Right Process –Right Results

III. Senior Management Leads the Charge

IV. Solve root causes

3. Use pull system “produce only what’s needed”

4. Level workload “ balance need - heijunka”

5. Quality right first time “ stop, fix, do it right - jidoka”

6. Create standards“ ensure continuous improvement”

7. Visualize “ don’t hide information” 8. Keep it simple

“ reliable and standard processes, structure, and technology”

9. Grow your own leaders“ understand, live and teach

work”

10. Develop Teams“ success is based only on teams”

11. Respect Partners“ help and challenge supplier”

12. Go and See“ experience the situation”

13. Slow - Fast approach Nemawahsi

“ make decision slow, implement fast”

14. learn“ reflect - measure and improve -

kaizen”

Not why did you fail, but why did the process fail

The Toyota way can be applied to

every process

1. Long Term Philosophy

“base your decision on long-term goals”

LEAN Principles: Toyota Production System (TPS)

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� The principles violated by not eliminating the pay inequalityo 1. Long Term Philosophy: base your decision on long-term goalso 5. Quality right first time: stop, fix, do it right - jidokao 6. Create standards: ensure continuous improvemento 7. Visualize: don’t hide informationo 9. Grow your own leaders: understand, live and teach worko 10. Develop Teams: success is based only on teamso 11. Respect Partners: help and challenge suppliero 12. Go and See: experience the situationo 14. Learn: reflect - measure and improve - kaizen

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�

Manufacturing 4.0

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� In Manufacturing 4.0, business will be run using cyber-physical systems to monitor, analyze, and automate business

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� In Manufacturing 4.0, business will be run using cyber-physical systems to monitor, analyze, and automate business

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� In Manufacturing 4.0, business will be run using cyber-physical systems to monitor, analyze, and automate business

� The benefit:o New insighto New business opportunitieso Strategic cooperationo Smart network connecting the manufacturing process to the customer

� The demand on workers will favor womeno Additional analytics, college educated laboro Flexible management of work content and timeo More worker autonomyo Work-life environment that will place women equal with their male

counterparts for the first time in manufacturing history

� Provide for another level to eliminate the wage inequality7/31/2015 36

�

Corrective measures initiated by Lawrence Technological University Professional Development Center (LTU PDC) participants

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� As lean professionals, we are chartered to identify and eliminate waste when we cano Identified several continuing educational professional students

having a difficult time finding work even after completing classes

o After placing the individuals on a spreadsheet, I realized that the segment having trouble were women transitioning from a non-manufacturing to a manufacturing environment

o The group of nine women were contacted and asked to participate in a women’s forum to discuss their issues regarding employment

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� As lean professionals, we are chartered to identify and eliminate waste when we can o During this Lean ‘Huddle’, we identified the necessary skills

needed for employment and met the following week in a Kaizen blitz to improve each professional’s resume, LinkedIn profile, and elevator speech

o All completed in one session with industry experts for each area

o The results were impressive with seven of the nine women receiving job offers within 30 days and all nine receiving job offers within 60 days

o Mentor program, either formal or informal, works

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� Results supported by research from UCLA Women's Law Journal by Schipani, Morehead Dworkin, & Ramaswamio This is not a supply problem

• Workforce is represented by 42% men and 58% of women• 53% increase since 1963

• Number of working mothers have grown to 70% from 54% (1962)• A record number of Title VII sex discrimination cases were filed in 2012• 88% of women completed High School or more• 37% of women completed four years of college• 11% of women completed graduate school compared to 8% of men

• Overall gender breakdown:• Women with master degrees: 60% to 40% men• Women with PhD degrees: 52% to 48% men

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�

How can we make an impact?

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� If we can agree that the gender pay inequality is waste, we need to utilize our “Lean Eyes” to eliminate it

� This can be performed during the yearly performance review

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� Start informal or formal mentor program to overcome challenges to networking for women with dependents

� Supported by research from UCLA Women's Law Journal by Schipani, Morehead Dworkin, & Ramaswami

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� REMEMBER: LEAN = PEOPLE

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� Pass the Paycheck Fairness Act (S. 84/2199 and H.R. 377)� Pass the Fair Pay Act (S. 168/H.R. 438)� Supported by the American Association of University

Women7/31/2015 45

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