Rotman Management

The Perils of Internal Disruption

THESE DAYS, if something is said to be ‘disruptive’, we assume that it is highly innovative and therefore good — although industry incumbents might disagree. But when it comes to an organization’s internal operations, disruption can be very bad, both for the business and for employees.

Taiichi Ohno, one of the fathers of the Toyota production system, described three manufacturing ‘evils’ that every company should avoid: mura (unevenness), muri (overburden) and muda (waste). Not surprisingly, the three are interrelated: unevennness is often a cause of overburden, which leads to much of the waste that companies are so eager to eliminate.

Unevenness in any aspect of a business — customer demand, process time, quality of raw materials, staffing, etc. — results in overburdening some resources at the expense of others, or alternating between overburdening and underutilizing a resource over time. For example, the spike in toy demand at Christmas puts enormous pressure on factories, warehouses and logistics providers, to say nothing of front-line retail staff. Similarly, unevenness in machine availability will cause workers and machines in downstream processes to

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