Friday, March 7, 2014

Knowledge for Becoming a Lean Enterprise

Top misconceptions of the Lean movement, according to founder Jim Womack

MIT 16.660 / 16.853 / ESD.62J Introduction to Lean Six Sigma Methods

Lean Leadership – Fundamental Principles and their Application
U. Dombrowski, T. Mielke
Procedia CIRP
Volume 7, 2013, Pages 569–574
Forty Sixth CIRP Conference on Manufacturing Systems 2013

Hoshin Kanri - Policy Deployment or Implementation - Customer Focus, Aligned goals on levels.
Importance of Gemba - Shop Floor or Work Place - Shop floor based management - Decisions based on first hand knowledge
Qualification - Long Term Development of Employees - Continuous learning
Improvement Culture - Striving to perfection, Accepting  failure as a possibility to improve
Self Development of the Leader - Lean leaders are role models - New leadership skills are necessary and they have to acquire them

9 Ways Leaders' Actions Can Sustain Lean Progress

There is a possibility that the momentum gained during the implementation phase of lean manufacturing become slack subsequently. If managers adhere to the twin objectives of effectiveness and efficiency every day this does not happen. But, we have a long period in the history of modern management (1895-2013), wherein productivity and efficiency improvement has not gone in parallel with product and service innovation to increase customer satisfaction. The Toyota managers brought out the importance of efficiency, a fact first advocated by F.W. Taylor in a dramatic fashion and now the productivity movement has taken the name lean thinking or lean management. Joe Panebianco and Mike Noonan, consultants of TBM Consulting Group suggest the following nine steps by leaders to keep the organization do continuous improvement.

1. Communicate the vision: This needs to be done managers periodically. They have to communicate long term and medium term and short term goals to their team. Productivity, efficiency and cost reduction goals also have to be part of the company plans.
2. Always update standard work: Toyota management lays great stress on standard work process which is the theme of industrial engineering basically. Every process must have a standard procedure. Managers have to make sure that standard procedures are visually available. Of course, continuous improvement demands that the processes are improved every month.
3.Go on Gemba walks: Gemba refers to the work place. Managers have to go on work place improvement walks to find opportunities for improvement. Standard Maintenance walks are different from improvement walks.
4. Build a Continuous Improvement Culture:
5. Foster a respectful, team driven organization - Team working to complete the flow operation is essential.  Respect for the people is essentially emphasized in the Toyota system. Toyota system says the same thing as Gilbreth said. The operator must first use the standard procedure and them come up with suggestions to improve it. But once Toyota's practice is a great example.
6. Continue to motivate employees.
7. Maintain regular training: Keep updating knowledge about both product innnovation and process innovation in the organization.
8. Reinforce Performance and Progress with Metrics and Visual Management Tools.
9. Post Continuous Improvement Score Cards
TBMCG Management Briefing March 2013

Leaning Lean: Don't Implement Lean, Become Lean
Michael Balle and Peter Handlinger
Reflections, Vol 12, Number 1, Pp.17-31.

Toyota, the inventor of lean, never sought to implement lean per se, it strives to become leaner every day. Actually in terms of Taiichi Ohno it becomes more productive every day, or reduces waste every day or reduces the cost of creating value for the customer every day.

Four lessons for the leaders given by the authors
1. Lean is a system of related learning activities
2. Performance is driven by people, not systems.
3. Learning must occur on the Job everyday for everybody
4. The organization's design must support on-the-job learning

Toyota has reinvented job by changing:

JOB  =  WORK   to

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