Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

naer889

Off-topic Posts

Recommended Posts

I believe, DB said, no charts under 15 minute time frame in that particular thread. He's trying to encourage more people to swing trade, or at least intraday swing, as most people do not have the luxury of actively day trading the entire session.

 

Schaefer

 

That is correct. However, trading for longer timeframes than the NY open to the NY close is clearly of no interest. And I see no point in posting interday stuff here if no one is interested. The intraday stuff can be found at ET.

 

So, if no one steps up to the plate by the end of the month, I'll just wrap it up and forward people to ET.

Share this post


Link to post
Share on other sites
That is correct. However, trading for longer timeframes than the NY open to the NY close is clearly of no interest. And I see no point in posting interday stuff here if no one is interested. The intraday stuff can be found at ET.

 

So, if no one steps up to the plate by the end of the month, I'll just wrap it up and forward people to ET.

 

Very much interested in opportunities that go beyond NY open to NY close, I tend to lean towards intraday trading so I can sleep easy at night, but, I would like to take on interday movements as it is hard to ignore what is on offer when one looks at the bigger picture.

 

Gamera.

 

There's no special technique to it. One just has to hold the trade. This works best when trading off the upper or lower limit, so it's not for the action junkie. But if one can hold on for a hundred points or more, why not? Stops are of course necessary.

multidaytrading1.thumb.png.95e36a89fa3a364ed9291143f0eb34c9.png

multidaytrading.thumb.png.6bc67aca1d533c07272eba098ecd960e.png

Edited by DbPhoenix

Share this post


Link to post
Share on other sites

Was not sure where exactly this post belongs so I fired it in here, DB feel free to relocate if it is more relevant in another thread.

 

Whilst I am back on terra firma, I have had a lot to think about over the last 3 weeks and most of that is to do with how I tackle ranges. As I alluded to in another post my plan as it stands is heavy on the SLA and weak on the AMT, the observations I made starting 5 weeks ago pointed out a few weaknesses that need to be addressed.

 

I have had a number of ideas and by going through my own charts I believe I can answer most of the following questions.

 

Can I identify a range? Yes, whilst at times I can be a little slow on the uptake, I can identify ranging behaviour. (chart 1)

 

attachment.php?attachmentid=39530&stc=1&d=1427248841

 

Do I know how to trade a range? Yes, wait at the extremes and ride the PA back to the opposite extreme.

 

Do I know what behaviour I will look for at the extremes? Yes, I have contemplated 4 possibilities for entry.

1: Enter because price hits extreme.

2: Enter because price starts to behave like it has found the extreme (e.g starts to ret at or near extreme)

3: Enter off a lower high (UL) or higher low (LL)

4: Enter when reversal is confirmed.

 

Whilst I could backtest all of the above, observations and experience have taught me some things so far.

1. Taking a trade just because price is at an extreme is iffy. In the time it takes price to reach an extreme the market may have decided that value belongs somewhere else, price might break out, or it might not but if it does I do not want to be on the wrong side of what could be a fast moving market, and if I am trading a range I may already be positioned to take advantage of a breakout so why would I want to limit myself, I can accept giving up a couple of points in order to be available for a range becoming a trend.

 

OTOH 3 and 4 might not happen until price has moved all the way back to the mean or even the opposing extreme. And from my perspective I don't want to take on trades where the potential risk is greater than the potential reward.

 

That leaves me with 2, enter when the behaviour shows signs of changing no confirmation necessary. Entry mechanism would be a trailing entry that could follow price up once price gets to within X points (backtest) of limit. Stops would be at most recent swing point or breach of range (backtest) and if breach does slightly surpass limits an entry could be made just off the extreme as to avoid being triggered on a BO retest (backtest) that might bleed through the limit a little.

 

Do I know how I will manage a trade? this may require a degree of finesse that I lack at the minute, should I be target or bust, should I look for tells e.g DT and DBs that might indicate traders are unwilling to take price further, do I observe how price reacts to the mean? can it get there, what does it do, does it move through it without effort or whipsaw.

 

That brings me onto trade 2 on the chart below

 

attachment.php?attachmentid=39531&stc=1&d=1427248841

 

it was a late entry as I waited for an HL to form, same as trade 1, price broke above 50% ret'd, failed to push higher then broke down through the 50% and previous swing low triggering an exit. I've thought about this one a lot and I am still not sure about it..... backtest.

(chart 2)

 

This is pretty much all covered in the PDF so it should not take long to reaffirm my conclusions but I feel I have a process to go through before I go live again.

 

Gamera.

Followed dear DB hint for pasting charts onto post but it has not worked as I would have liked.

 

There are several people on ET who are seriously trying to learn this. My posts to their threads may be helpful.

 

I've been following along and their threads and your posts are incredibly helpful, I seem to have certain ideas that occupy my thoughts, the answer (as if by magic) always seems to pop up when I think about the question.

 

Thanks again.

rangeidentification.thumb.png.85f71b2dc35c89df57baf0d71ecef1d9.png

nq180220151min.thumb.png.e65b4f962b80f13285dfae1bfb4b974b.png

Edited by Gamera

Share this post


Link to post
Share on other sites

Hi,

 

I have a quick observation/question. I realize that at its base supply and demand drive price. OK. Well in our 21st century economy, where in the US we waste 5 times the amount of food we consume(yet still have starvation), where we've had several price bubbles occur-how can you still maintain that this is the case? How is the demand for an APPLE iphone created? It was not there originally...there was just enough money float in order to CREATE demand through savvy marketing and salesmanship. Steve Jobs was great in that he BELIEVED in what he was doing-he first sold himself fully on his product, then he sold Apple and Apple marketing sold the public. It's not like there is a set demand for iphones out there...its just if you can plant the idea in enough people's heads that you can have a chain reaction. Novelty=demand?

 

The object of the demand need not be something essential.

Edited by DbPhoenix

Share this post


Link to post
Share on other sites

So all we're really waiting for is a loss of consumer confidence....but then again, if you view human beings as a natural extension of our environment-our feelings/wants are a reflection of reality in itself, so perhaps psychological demand has a mechanical presupposition within fundamental reality...ie you trust that human beings can rationally discover the "value" of something. Wait....

Edited by flowzen

Share this post


Link to post
Share on other sites

Tomorrow I will start my journal. The main objective is to practice reading the market and identifying opportunities to trade. Mainly day trading the NQ on a 3 minute chart, but will do analysis on the weekly, daily, hourly, 30 min, and 3.

Share this post


Link to post
Share on other sites

First red Arrow a short at the top of the channel.Didnt amount

to much so I scratched it.

 

The first Green Arrow a long on a retracement after the

range break. But it was close to the upper channel line

so I didn't expect much and just scalped.

 

The second red arrow a short after the price action showed

weakness a failure to go up and at the upper

trend channel line.

 

Fourth Red Arrow a short after price failed to move up

at that lower trend channel line. A break of the demand line

as well. this was a full stop out.

 

Fifth Red arrow a short after the demand line break and

a retracement back up.

 

I don't really like taking more than five trades a day and i am feeling

that I took these pretty quick, but those were the setups. Going to observe

now and see if something really solid sets up.

I see also that we broke down through a hinge on the daily

chart so I have more of a short bias.

 

Chart2: Took another short after the break of the support or bottom of range and a retrace back up to the support now resistance.

5aa7124e0df8f_NQ06-15(3Min)_TICK(3Min)5_6_2015.thumb.jpg.a8ca6f799289e3f442864a65b6d92921.jpg

5aa7124e168eb_NQ06-15(3Min)_TICK(3Min)5_6_2015-1.thumb.jpg.8e33da24ad7bed1f4f00817e63e57be9.jpg

Edited by SRspider

Share this post


Link to post
Share on other sites

I don't know what sort of comment you're looking for. You're welcome to borrow elements from the SLA to include in your trading plan, and they may help you to improve your results. But what you'll be doing won't be the SLA.

 

So whatever comments I make will depend on what it is you're trying to do. If you're trying to learn the SLA, some things will have to go. But if you're interested only in certain elements of it, that's another subject.

Share this post


Link to post
Share on other sites

Hi Db

I'm trying to stick to the SLA/AMT, so if your taking about the ma and the tick chart at the bottom I can remove those since I'm not really using them. Except maybe the TICK chart to better time an entry. Your comments are appreciated.

thanks

Share this post


Link to post
Share on other sites

I suggest you get rid of the candles as well, or at least plot them as black. The colors have nothing to do with trading price and can create a bias, and you don't need the distraction.

 

Trading the SLA today required only one trade: an entry below the range and an exit at the break of the afternoon SL:

 

attachment.php?attachmentid=39614&stc=1&d=1430949771

 

Also, don't forget to include the context. Knowing at least the previous day's high would prevent you from going long at the open.

050615.png.1b3c05b7651243b513eff1b9196f593a.png

Share this post


Link to post
Share on other sites

Db

Could you explain why knowing yesterdays high would prevent taking a long position of the range BO.

 

Well, "prevent" is a strong word. "Discourage" is more like it. Given that there was potential resistance (something that everybody could see) just above that range and nothing below it, I had no interest in going long. I didn't really think about it. I just wasn't interested. One could, of course, if he was prepared to exit or raise his stop when price stalled at R. I just didn't think it was likely.

 

What I would suggest to a beginner is to go ahead and take the long but keep a tight stop, for if it doesn't go right away it probably won't go at all. Then wait for price to pass back through that range and take the short. If that doesn't work either, then stop. As near as we were to the median, tho, I expected more, and we got it.

 

Of course, one must be able to recognize a range, something which so few at ET are able to do (when a self-proclaimed "experienced trader" says he can't recognize a range much less know how to trade a breakout from it, I have to wonder just how much experience this trader has).

Edited by DbPhoenix

Share this post


Link to post
Share on other sites

Db

Makes sense, I did not enter a long position my first resistance was at 4423.50 then 4428.00. So I had no intention of a long entry. I entered a short at 4402.50 which was a bit late I would of liked a fill at 4414.00 or 4412.00. Exit position @ 4372.25

Share this post


Link to post
Share on other sites

I know I probably did this all wrong but here is the logic

behind the trades today

 

First Green arrow was a long on a retrace after the break of

that small double top or small range.That stopped out so it leads

to the first red arrow which was a short on the failure which also stopped

out.

 

The second green arrow was a long based on the fact that

they were holding the 50% mark of the range. that

one worked out ok.

 

The Third green arrow was a long basded on a break out

of the range but it came back intot he range and stopped out.

 

I tried the long again on the fourth green arrow and was again

stopped out.

 

Not the best outcome today and I know probably didn't do things correctly.

 

Whether you did it "right" or "wrong" is way too early in this process. While I like the clean chart as it is so much easier to read, you should not be trading at all unless, as I said yesterday, you only want to borrow an element or two from the SLA.

 

But if you want to learn the SLA, you're going to have to spend some time observing without thinking about trades and where you'd enter and where you'd exit and where you should have entered and where you should have exited and so on and so on and so on. This is in a way of form of rewiring. The more messed up you are, the longer it will take, but with replay it won't take nearly as long as you might think.

 

My charts, which I posted to ET, follow:

 

While I don't want to nag, I do want to point out, again, the advantages of trading a longer bar interval. I realize no one who's posting is doing this, but I continue to encourage those who are not in a position to daytrade to explore this option.

 

upload_2015-5-7_6-52-55-png.152393

 

A 1m chart of today's activity. 0800 is not especially early, even if one works at home.

 

upload_2015-5-7_8-59-55-png.152395

 

upload_2015-5-7_10-11-46-png.152396

 

upload_2015-5-7_10-24-32-png.152398

 

upload_2015-5-7_11-1-36-png.152401

5aa7124e240e6_NQ06-15(3Min)5_7_2015.thumb.jpg.bd37fcf58df1893941407065a5a2f26a.jpg

Edited by DbPhoenix

Share this post


Link to post
Share on other sites

Ok thank you for your feedback. After giving this some thought what I would like to be able to do is analyze the market via the Wyckoff method using the supply and demand lines ranges spring and up thrust tests climactic selling and buying pushes through supply or demand or breakouts while incorporating volume. In this analysis be able to spot trading opportunities on a 5 or 3 min chart managing my risk effectively. How do you think I should approach this ?

 

What do you mean by "spring" and "up thrust test"?

Edited by DbPhoenix

Share this post


Link to post
Share on other sites

Hi Db,

Regarding springs and upthrusts , its just terminology I picked up taking other courses and reading stuff on Wyckoff, if it is or is not (Wyckoff) I am not really sure and maybe its something made up.

But regarding reading the market. This is kind of what I mean , I noted on the QM chart of today. Its hindsight to its easier to see but to see it real time is what I would like to accomplish. I am willing to start over and erase it all if you can point me in the right direction.

 

You may have read the Evans' version of Wyckoff's course. Wyckoff's original course was not released from copyright until a few years ago.

 

I suggest you look at the Wyckoff Lite stickie uptop. It has a link to the original course, if you want to read the whole thing. If you don't, suggestions are made to abbreviate it. What is most important is Section 7.

5aa7124e36ae1_QM06-15(3Min)5_8_2015.thumb.jpg.a369266ff3c610120e023f8ac7d2a8df.jpg

Edited by DbPhoenix

Share this post


Link to post
Share on other sites

Thanks DB,

I will give it a go this weekend and post any questions if you don't mind. As far as the charts go , I'll just be watching for now and try and view in the context of what I will be reading.

Share this post


Link to post
Share on other sites

Ive been covering a lot of the material since yesterday and making notes. I can see how the context is extremely important in figuring out what trades to look for and where.

In determining topping or bottoming action i see that there are several indications.

 

1. Climactic volume

2. The slope of the incline or decline of the price action

3. The closing of the bars that poke the lows or the highs

4. Once that climax is identified a techical rally follows if it was a selling climax.

5. The key is then the secondary reaction which should create a higher low.

 

Not necessarily. Price may dip below the previous low but pull back up due to buyer interest. If this bar "closes" at or near the high, this indicates buying interest and can be bought just like a higher low.

 

The VSA people like to call this a "spring", but there's no need to come up with a special name for it unless you're trying to sell a system to somebody. Beginners like lots of lingo.

 

6. If this in turns breaks a supply line there is a good chance the market will enter into an accumulation phase and should be bought.

7. Then there should be some good volume increase on the up move after that secondary reaction. This is also key because buyers are willing to pay the ask

 

As far as buying on a dip in an uptrend. Several key factors come in to play

1. Coming down to a support area not necessarily. Be careful with regard to "support" and "resistance". Price is reaching a level where buyers are interested. You can't always know this in advance. Judge the market by its own action.

2. Shortening of the thrust down

3. Closes near each other

4. Low volume on the way down, because sellers are having to lower the ask in order to fill orders

5. Mini selling climax is oka

6. closes then near top of bars and higher volume on the way up, again because buyers are willing to pay the ask

7. Narrow range bars or narrower

When I start seeing this type of action it would be safe to buy that dip for a continued up move. He describes it as "dullness"

 

Works the opposite for selling a rally in a down trend.

 

Ranges

can be accumulation or absorption or they can be distribution. Some of the clues obviously is the context that led to the range. But once in the range lets say we are starting to see bars with higher lows and higher highs within the range or pokes under the range that come back up through and the volume on higher closes is bigger than the volume on lower closes it may be showing signs of absorption .

the opposite for distribution.

 

Ignore all of that.

 

Buy a breakout through the upper limit of the range.

 

Short a breakout through the lower limit of the range.

 

Keep it simple.

 

There is a lot in that book to take in.

 

Am I getting this right?

 

Thanks for your help.

Edited by DbPhoenix

Share this post


Link to post
Share on other sites

Thanks DB for the input. When you buy a break out what might you consider to make it more probable that it is not a false breakout? I would imaging that the volume must be higher.

 

A question that is on everyone's lips.

 

The answer lies in collecting ranges and determining how many points price must rise above the range to signal genuine intent. This will vary, of course, depending on the instrument, so there's no point in testing a bunch of stuff you have no interest in trading. If you're interested in trading the NQ, collect NQ ranges. If you're interested in stocks, then I'm afraid you're going to have to collect data on each.

 

This is all part of the characterization process. If you don't go through it, you'll pay.

 

As to volume, I wouldn't bother. The gurus will tell you that volume must accompany a breakout, but this isn't true. Volume often waits a bar or two or several before kicking in largely because the breakout itself goes unnoticed. Only after the breakout does the volume come in. Or at least one hopes it does if one went long.

 

If you're interested in volume, I suggest you look at the volume thread, below.

Edited by DbPhoenix

Share this post


Link to post
Share on other sites

Ok thanks for that. It does make sense. I know it doesn't always happen but after a break out sometimes we get a reaction. I think for me I would rather wait for that to jump on , especially if I don't have the data on the ranges that you spoke about. I will though start looking more closely at the NQ since that is the instrument I trade mostly.

Thanks again.

 

This particular type of data gathering can be done with static charts. You can collect the data in just a few days.

Edited by DbPhoenix

Share this post


Link to post
Share on other sites

Some Observations today. I see we broke through the hinge that was forming and then retraced back which looked like an opportunity to possibly short. An we are near a SL on the Daily Chart.

5aa7124e40d41_NQ06-15(5Min)5_11_2015.thumb.jpg.1a9e8a613db7a07654e9ef1ec73cb49f.jpg

Share this post


Link to post
Share on other sites

from Ronald Siegel, heavily edited

 

In the Buddhist traditions from which many contemporary mindfulness practices derive, mindfulness techniques evolved as tools for deconstructing our usual view of ourselves and the world, for waking up from conventional, socially reinforced fictions about who we are and how to find happiness. This awakening occurs to the degree that we no longer believe in the self. It involves realizing what’s called in Pali — the language in which the Buddha’s teachings were first recorded — anatta, or non-self.

 

The mindfulness practice that leads to recognizing anatta is deceptively simple. It begins with cultivating concentration: choosing an object of awareness, such as [price movement], and returning attention to that object every time the mind wanders from it. Once some concentration is established, we open the field of awareness to attend to whatever predominates in consciousness. Throughout the process, we try to accept whatever arises, whether pleasant or unpleasant.

 

Ancient Buddhists described the process by which we construct reality and our sense of self much as modern cognitive scientists do. It all begins with sense contact: the coming together of a sense organ (the eye, for example) with an object of awareness. These sensations are then immediately organized into perceptions, conditioned by language, personal history, and culture.

 

The mind doesn’t stay at the level of perception for long, however. It immediately adds a hedonic or feeling tone to all experience (“I like this” or “I don’t like this”). And almost as soon as the feeling tone enters consciousness, intentions arise. Over time, we develop habits of intention that we might call dispositions or conditioned responses—collections of habitual responses to our likes and dislikes. These dispositions become important elements in our identities.

 

In Buddhist psychology, awakening to anatta, or non-self, is central to psychological freedom. And even glimpsing anatta in our mindfulness practice can have profound implications for how we [trade].

 

Some changes are simple. Instead of asking, “How [does] that make you feel?” we inquire, “What’s happening right now?” Instead of [focusing on the] self, we highlight how everything changes moment by moment.

 

Grasping anatta [means] that we no longer devote our energies so relentlessly to scheming and strategizing about how to feel as good as possible [about our trading] to opening to whatever may be happening in the moment. This shift can be a tremendous relief. It’s as if the mind—worn and weary from endlessly wishing things would be other than they are—gets to rest in accepting what is. And when I notice how much of what I stress about all day involves trying to bolster my self-esteem or hold onto pleasure and avoid discomfort, the struggle gives way to an inner chuckle about my insanity.

 

This awareness of the price we pay for self-preoccupation comes most readily when we can see the thought-stream for what it is and not identify so much with the contents of our minds. Combined with seeing that our emotions are just a mix of bodily sensations, words, and images, this realization can lead to surprising fearlessness, even in the face of major [trading] challenges.

 

When we relate to each moment [during the session] as the impersonal unfolding of [price prints], rather than “my joy” or “my sorrow,” we can face more adversity with less resistance. There really is nothing to fear [if one is thoroughly prepared and focuses on those prints rather than on what one thinks about them, or "feels" about them].

 

As we come to see the reality of anatta and experience the relief and freedom that this realization brings, our orientation toward [trading] shifts. Egocentrism falls by the wayside as we [focus on price's movements rather than our "selves"].

Edited by DbPhoenix

Share this post


Link to post
Share on other sites
Guest arturzvaygzne

I have original course of Wyckoff.

 

So do we. For free.

Edited by DbPhoenix

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Nice way to start! Don't get used to it haha. Netted 2.28R. However, I made a mistake with my position size calculation and accidentally only entered at 91.4% of the size I intended, so based on the actual risk rather than the intended risk, this trade was about a 2.5R winner.
    • Potential EUR/JPY short
    • 27 IS NOT 10 27 More Hilarious Spelling Mistakes That People On Twitter Can’t Stop Making By Michael Koh, February 8th 2014   31.4k             I just can’t believe that these men and women do not use spell check on their phones. I mean, doesn’t it come pre-enabled? They must be pretty confident in their spelling abilities! Here’s more spelling mistakes on Twitter for your enjoyment. Read the original 27 post here. 1. “apidimi” This word is seriously the epitome of all that is wrong with not spell checking. 2. “…winey” Wait, when they’re saying “winey” voices, do they mean drunk voices? 3. “…go to collage” You can’t go to collage, you make ’em. 4. “…barley…” Barley is a great source of fiber, I think. Right? 5. “Aifel Tower” 6. “corn roads” I’m just shaking my head right now. 7. “I’m a genious” 8. “sillowet “ 9. “human bean” *bangs head on desk* 10. “fake an organism” 11. “mysery “ 12. “lewbuttons” 13. “klamidia” 14. “flaming young” 15. “seizure salad” 16. “quarterroys” 17. “alluminati” 18. “…dairy air” 19. “…aliterate” 20. “sellulite” 21. “masterbait” Goddamn, people, TMI. T.M.I. 22. “subliminol” 23. “dognuts” 24. “…raping presents…” 25. “ginger rale” 26. “kukies” 27. “alphet” They mean outfit. There, I saved you the trouble of trying to figure it out. image – Twitter   Funny Humor Informative List LMAO Spelling Mistakes The Digital Age The Internet Twitter    
    • I will see your agreed and raise you another agreed.  
    • This took the article right out of my idea. There's always someone quicker than you though. Dont forget to like and subscribe I know you cant get your replies in quick enough these days but keep trying. Scraping the hull: Ridding your organization of barnacles Award-winning author Gary Conner is president of Lean Enterprise Training. 5-6 minutes   Editor's Note: A version of this article previously appeared in the March 2004Lean Into It newsletter. What do barnacles and lean manufacturing have in common? Let me explain. Barnacles are a form of sea life that everyone's heard of but probably knows little about. Many different types exist, but let's talk about the type of barnacles that attach themselves to ships. These crustaceans are roughly the size of a quarter, and they attach themselves to a host (ship) for life. The adhesive properties of the cement that they excrete are amazing. This small animal glues itself to a host with a compound so strong that it could hold the weight of a compact car (2,500 pounds). Estimated costs associated with speed loss (caused by increased drag) and increased fuel consumption resulting from these marine mollusks' growth on ship hulls are an astronomical $1.4 billion per year. "Fouling," as it is referred to, can contribute to an increase in fuel consumption of up to 7 percent after only one month and 44 percent after six months (Swedish International Development Authority, 1986). For ships, the traditional remedy has been a regular visit to the dry dock. There, barnacles and other organisms are scraped or sandblasted off the hull, which is then covered with a coat of antifouling paint designed to discourage their return. As long as 2,000 years ago, hulls were sheathed with lead and smeared with concoctions of oil laced with sulfur and arsenic. In 1625 a lethal recipe combining arsenic, copper, and gunpowder was considered worthy of an English patent as an antifouling compound. The danger for shipping companies is that the barnacles are hidden below the water line. Out of sight, out of mind. The only indication that fouling has occurred is the vessel's reduced performance. Barnacles-Non-value-added Activities Parallel Could our companies be fouled—slowed down or consuming resources unnecessarily— by barnaclelike behaviors? How do we "scrape the hulls" of our organization to ensure smooth, unrestricted, and cost-efficient advancement? Barnacles can be likened to the non-value-added activities we perform every day. During a kaizen event at a client company in Nevada, we performed a value-added, non-value added (VA-NVA) observation of a sawing process. The operator was a large man (325-plus pounds). He was working in 95-degree-F heat and wearing a shop coat over his coveralls. This poor man was sweating profusely, to the degree that I was worried about his health. The initial observation showed that he was able to spend only 19 percent of his day in a value-adding mode. Eighty-one percent of his day was spent on either necessary non-value-added tasks (things like paperwork and stacking parts), or, worse yet, unnecessary non-value-added tasks (activities like looking for a supervisor or a pallet). After the kaizen team rearranged his work area, developed a new work standard, and set his operation up to run at takt time, this worker produced three times as many parts. He now spent well over 60 percent of his time in pure value-added activities (still room for improvement). At the time of our kaizen presentation, he was unaware that he was producing 200 percent more material through his two saws. Before we told him about the documented improvement, we asked him if the new layout and new work steps were easier or harder. He expressed a great deal of satisfaction with the new process, describing it as "so much easier than before." He was producing three times as much, with less effort. Kind of like pushing a ship through water with less effort because the barnacles had been scraped off. Nondiscriminating Suckers Organizational barnacles can grow anywhere. Engineering, order entry, purchasing, finance, and, of course, the production departments may need to be put into "dry-dock" and examined for non-value-added activities. A fabrication team VA-NVA examination found that 25 percent of its time was spent in non-value added activities. For this $14M company, this meant $3.5 million worth of potential sales opportunity was being left on the table each year. Interestingly, after a ship has had barnacles removed, the entire hull must be treated to inhibit barnacle regrowth. So it is with organizations; sustainment is by far the hardest part of improvement. Changing the behaviors of the individuals who comprise the organization is necessary to avoid reverting back to non-value-added activities. Continuous Improvement Kaizen must become a way of life, and one trip to the dry dock will not create a barnacle free ocean or organization. Continuous improvementis not just a program title, it is a verb, and verbs demand action. I'm sure that scraping barnacles off a ship isn't easy work, but the rewards of improved performance and reduced costs must be worth it, because every viable shipping company in the world does it. So, where will you start scraping?
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.