Sunday, February 16, 2014

Lean Management


Explanation of Lean Management by Jim Womack
Developer the Lean Thinking
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Lean Management - Explanation by Lean Enterprise Institute


Traditional management systems are largely based on disaggregating the functions of the organization and managing performance of each piece in short time increments. This approach assumes the performance of the whole is the sum of the parts. Abnormalities are largely perceived as performance shortfalls and managers are expected to lead the problem analysis and demonstrate proficiency at knowing the answers.


Lean organizations depend of developing the problem solving capabilities of the entire workforce allocating specific categories of problems to each layer of the organization. While there is still a need for deep expertise in specialty departments the emphasis is on the performance of the entire value stream and the customer which it serves. Leadership in this type of organization is less focused on being the problem solver and more focused on building the problem solving muscle of the workforce. While traditional organizations delegate problem solving within 10-20% of the workforce, lean organizations endeavor to have the entire organization actively engaged in problem solving.


The course is structured as repetitive cycles of Learn-See-Do. First we will teach a principle, then you will see how this principle is put into practice in three sectors; manufacturing, office & services, and healthcare. After that the class will participate in implementing the principle at Whishmaker, Inc. (a generic company created to illustrate the application of principles to a business) fulfilling the "do" cycle.
We will repeat these Learn-See-Do cycles until each element is covered and then examine how the pieces work together to support a problem-solving culture typical of a mature lean organization.


A Training Progam Plan by LEI

Elements that comprise the Lean Management System and an examination of how they work together to create a system of continuous improvement through collaborative problem solving.

The training course(LEI training course)  is structured as repetitive cycles of Learn-See-Do. First we will teach a principle, then you will see how this principle is put into practice in three sectors; manufacturing, office & services, and healthcare. After that the class will participate in implementing the principle at Whishmaker, Inc. (a generic company created to illustrate the application of principles to a business) fulfilling the "do" cycle. We will repeat these Learn-See-Do cycles until each element is covered and then examine how the pieces work together to support a problem-solving culture typical of a mature lean organization.

https://www.lean.org/Workshops/WorkshopDescription.cfm?WorkshopId=85



WHAT IS LEAN MANAGEMENT?
Shook, John
10/15/2008
http://www.lean.org/shook/displayobject.cfm?o=1447




Graham Ross

My definition of a Lean Manager

"A Lean Manager is someone who is passionate and technically capable of leading Continuous Improvement in Organisations, by inspiring people to problem solve and implement sustainable solutions. "

Putting The Lean Manager Role in context


Long term it is important that all of the Management Team is fully committed to Continuous Improvement.

It is the Lean Managers role to help foster this change through coaching, training and leading by example.

 As a Lean Manager you need to stay true to the cause and along with the other more positive members of the Management Team, to keep the organization going in the direction of achieving objectives and goals.

Continuous Improvement will only work where the overall Management Team is fully committed

So one of the first things that the Lean Manager needs to do is bring the other members of the
Management Team up to speed with what Lean and Continuous Improvement are all about.


1. As the Lean Manager,  you have to accept that you are not the "expert" to solve all the problems.

2. You can fully participate in the activity and  play a role as a Management Team member

3.You will be seen as the person that organised a very practical team building activity

4. You will have helped foster team spirit around a common enemy – WASTE

As well as organising this initial practical education you may also want to increase the other
http://www.leankaizen.co.uk/lean-manager.html




Total Lean Management System - Administration

Total Lean Management System is an integrated cross functional management system in order to run effective quality and activity control at the whole organization by means of everybody's commitment and participation, and thereby to continuously improve results and to achieve objectives of organization with the aid of control of policy and feedback of the result to subsequent financial year in order to achieve the optimal combination of QCD (Quality, Cost and Delivery).

http://www.japanqualitymanagement.com/totalleanadministration.html


Developing Leaders at Toyota
Lean Management Journal



The lean leader must possess the general characteristics and skills that we expect of effective leaders – painting a vision, getting to know what drives the people they lead, active listening, empathetic questioning, the ability to help people find a way to satisfy their needs etc.  But there are some  peculiar “lean things.” What are they?

Respect for people and continuous improvement. Respect for people means viewing them as long-term partners in the business that appreciate in value over time and then mining that value by challenging people to stretch themselves and grow. People who are unchallenged and stagnant, even if treated nicely, are disrespected. The way people can grow their capabilities is through participating in continuous improvement. Continuous improvement literally means making things better every day, sometimes taking big steps and more often taking small steps.

The starting point for a lean leader is managing from the gemba. It means the leader has to be where the thing of importance is happening. That could be where the customers are (e.g., using the product, waiting in a hospital), where the finances are being done, where the product is being built, where the product is being tested, where components are stored in inventory, and more.



Learning how to add value at the gemba To add value requires skills that include many abilities: To understand the process and see waste; To ask the right questions and understand the problems; To generate some ideas, but more importantly to draw out the ideas of those at the gemba; To be a role model for good problem solving; To have the skills in problems solving to be a role model and coach.

http://www.leanmj.com/2012/08/developing-leaders-at-toyota/

Computer-aided Lean Management for the Energy Industry

Albert Boulanger, John A. Johnson
PennWell Books, 2008 - Business & Economics - 380 pages

In this new look at energy business operations, an expert team of scientists and engineers provide a road map for transforming energy business capabilities to meet growth imperatives in an increasingly competitive global economy. Extended to the energy industry are the best practices in computational sciences and the lean management principles currently used in other leading manufacturing industries. Computer-aided lean management (CALM) methodology uses the common-sense approach of measuring the results of actions taken and using those measurements to drive greater efficiency.

In their new book, the authors examine how CALM methodology will enable future electric power smart grids with the efficiencies necessary to serve urban expansion. CALM can also serve the oil and gas industry as it deals with dwindling geological supplies and emerging renewable resource competitors. In addition, the book explores the introduction of CALM in countries, such as China, India, and Russia, that are the new business environments of the 21st century and are therefore less inhibited by the need to transition from legacy systems. Developing the business capabilities of CALM will dramatically improve the business operations of all energy companies.
http://books.google.co.in/books?id=jvIbpdTj9XoC





A Comprehensive Approach to Lean Management Transformation


Lean Business Management or Lean Industrial Management or Lean Engineering Management leads to better results compared to the earlier management principles, practices, tools and techniques.

Effective lean transformations or lean management activities yield major improvements not only in productivity, but also in speed, quality, customer loyalty, employee engagement and, most importantly, growth.

Attaining these results, and ensuring that the underlying changes endure at the enterprise level, is possible only through lean management’s comprehensive approach.

Rather than focusing only on “how the work gets done,” in operational processes, lean management transformation must addresses all dimensions of a transformation at once, recognizing that each provides crucial support to the others.


• Put the voice of the customer at the heart of the business. 

Everything a lean organization does is to be geared to helping people in the organization work together in combination with the natural and capital assets of the organization more effectively to deliver exactly what customers value. So the managers have to understand what customers value in the company's offerings. Marketing management is essential to under the needs, wants and things they value in the company's offerings.

• Strengthen performance system (Organization). 

Lean involves reshaping the roles of people and supporting infrastructure to make performance and targets more transparent, to ensure effective deployment of resources. , and to encourage root-cause problem solving.

• Enhance organization and skills. 

Lean shifts responsibility towards the front line, and demands new styles of leadership. These new roles and responsibilities must be clear, and require stronger mechanisms to develop
skills and capabilities at all levels of the organization.

• Influence mindsets and behaviors. 

Lean management  recognizes the need to magnify the commitment of all employees to improve continuously.

• Make processes more efficient. 

To fulfill a customer need from initial request through to completion, an organization will mobilize a whole series of processes and resources that cut across internal boundaries. Focusing on how value flows to the customer allows the organization not only to identify and eliminate waste in time, resources, and energy, but also to make a dramatic difference in customer experience.

These five dimensions demand a reexamination of everything a current organization  does, beginning with very basic questions, such as: what our customers value in our current products and what do they want from us in the future? The questions quickly become more focused, asking whether, for example, employees have the skills and perspective necessary to probe for unstated needs?  Finally, the inquiry reaches the deepest issues, such as whether the sales staff believe that their approach to cross-selling is the right way to meet customer needs.
Related Article: Lean Systems Industrial Engineering

Source Lean Management: New frontiers for financial institutions, McKinsey Consultants


Videos on Lean Management by Jacob Issac Lowry
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Presentation by me (Narayana Rao) on Lean Management at Tata Steel on 14 Feb 2014

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