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Jan 18, 2016
accreditation| certification | community
Lean Thinking Evolution
ORIGINS OF LEAN THINKING...?
Lean Thinking Evolution
Venetian ship builders
Carthaginian navy
18th century RN frigate gun
WW2 Boeing B17 bomber
Colt Armoury
My great uncle’s WW1 Waltham watch
DEVELOPMENT OF LEAN
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FW Taylor & Scientific Management
W Edwards Deming
Henry Ford
Masaaki Imai
Schonberger
TWI
Frank Woollard
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“THE MACHINE THAT CHANGED THE WORLD”
Term lean first popularised in 1990 book
Womack, Jones & Roos - MIT study
Illustrated performance gap between Japanese & western automotive industries
superior performance due to “lean production”
‘Lean’ -ie used less of everything
HUMAN EFFORT, CAPITAL, SPACE, STOCK, TIME - in all activities
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“LEAN THINKING”
Lean Thinking (Womack & Jones, 1996)Demonstrated application in other sectorsDescribed range of tools & techniquesLean ‘vocabulary’, eg
Kaizen, Kaikaku, Hoshin KanriJIT, Muda
“Lean Principles” put forward“Great packaging job!”
FIVE LEAN PRINCIPLES1. Specify what creates value from the
customers perspective 2. Identify all steps across the whole
value stream3. Make those actions that create value
flow4. Only make what is pulled by the
customer just-in-time5. Strive for perfection by continually
removing successive layers of waste
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How valid are the 5 principles today?
Lean Thinking Evolution
EVOLUTION OF LEAN THINKING INTO 21ST CENTURY
“From Prescription to Contingency”Four broad stages identified:1. Awareness2. Shop Floor3. Value Stream4. Value System
See paper “Learning to Evolve”
• Lean exists at 2 levels• Strategic• Operational
• Strategic universally applicable; operational tools not universally applicable
• Lean production for the shop floor tools (TPS); lean thinking for strategic value chain dimension
DEVELOPMENT OF LEAN THINKINGSECTORS
Lean Thinking Evolution
Auto Manufacturing OEMs, supply chain, 1st , 2nd tier
logistics, transportation, retailing
healthcare, defence, local govt
financial services, insurance, legal
repair & maintenance, back office
Distribution
Construction After Sales Services
Food Chain
Consumer Services
Public Services
aerospace, other manufacturing, process industries
Other Manufacturing
1990
?
“LEAN SOLUTIONS”
1. Solve my problem completely
2. Don’t waste the my time
3. Provide exactly what I want
4. Deliver value where I want it
5. Supply value when I want it Lean Thinking Evolution
LEAN IN SERVICES...ISSUESImpact of characteristics of services on approach to process improvementAlso wide diversity / types of services Nature of value in servicesAdded complexity in public servicesApplying tools developed for the world of manufacturing????Difficulty in classifying services
Development of new avenues of thought, use of concepts, techniques from other disciplines
Lean Thinking Evolution
“SYSTEMS THINKING”
John Seddon
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SUSTAINABLE SYSTEM LEAN MANAGEMENT
Lean Thinking EvolutionSource: P. Hines, P. Found, G. Griffiths & R. Harrison, Staying Lean, 2007
Lean ManagementLean Management
TOP 10 REASONS FOR LEAN FAILURE
1. Lack of a clear executive vision2. Lack of an effective communication strategy3. Failure to create and communicate a real
sense of urgency4. Poor consultation with stakeholders5. Lack of structure methodology and project
management6. Failure to monitor and evaluate the outcome7. Failure to mobilise change champions8. Failure to engage employees9. Absence of a dedicated and fully resourced
implementation team10. Lack of sympathetic and supportive Human
Resources policiesLucey, Bateman and Hines, 2005
Lean Thinking EvolutionDevelopment & Latest Thinking
Lean Thinking Evolution
FAKE LEAN & REAL LEAN:LEARNING FROM THE TOYOTA WAY
“90% of problems in business are caused by management, 10% by the workman”
F.W Taylor 1912
Respect for
People
Continuous Improvement
Fake Lean
Real Lean
Emiliani, 2007
Jim Womack
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LEAN LEADERSHIP
Lean Thinking Evolution
Dan Jones Lean Summit, November 2011
SO WHAT IS LEAN ABOUT?(MORE THAN JUST WASTE..)
Lean Thinking Evolution
Mura (Unevenness) Muri (Burden)Muda (Waste)
MUDA, MURI, AND MURA
Muda - waste - non value addedMuri – overburden
pushing a machine, person, or process beyond natural limits. Leads to long queues.
Mura - unevenness - non steady flow; slow down but work steadily. Launch work evenly
Mura and Muri lead to Muda
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LEAN THINKING DEVELOPMENT
Underlying thinking not suddenly invented /emerged‘Lean’ ways have always existedSeveral academics & industrialists have contributed to its development W&J framework important Evolving nature & emerging themes‘Traditional’ lean ≠ service leanSustainability a key issue
lean management >>> lean leadership
Need for a contingent approachNot prescriptive
Lean Thinking Evolution
Lean Thinking Evolution
LEAN THINKING IS …
Understanding & focus on customer value & demand
Creating capacity to do more
Improving the flow of productive activities - throughput
Reducing lead time
Continuous improvement
By Removing Waste
Taking a whole system perspective
Improving quality
…a Growth Strategy…an Improvement Strategy
A LEAN ‘BUSINESS SYSTEM’…
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“A lean business system aims to create strategic, process and functional excellence for organisations. An effective lean strategy creates/releases capacity
and focuses on activities that are valuable to customers and stakeholders, promotes effective flow
and a culture of continuous improvement and engagement.”
LEAN THINKING…IN SHORT
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Delivering appropriate customer value with the minimum of resources.
HOLISTIC PERSPECTIVE ON LEAN
Holistic, ‘systems’ approach to lean improvement
Lean more than simply improving processes through the application of tools
Successful lean organisations… employ lean strategies, apply lean leadershipunderstand the need for an engaged, empowered workforce
Many different ‘lean’ methodologiesOrganisations require their own, bespoke solution for sustained implementation
a contingent approach to lean
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BICHENO’S 5 REVISED PRINCIPLES
Value for Customers, Stakeholders, and EnvironmentWaste (Muda)Value demand vs Failure Demand
System end-to-end value streamsholistic, integrated, with feedback
FlowAdd value without interruptionMuri (overburden and capacity overload), Mura (unevenness, variation, amplification.)
PerfectionPeople
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LEAN PRINCIPLES REVISED
Bob Emiliani
Lean Thinking Evolution
NEW THINKING…?“There is nothing new under the sun”
Ecclesiastes 1:9
“There is nothing new under the sun…
…but there are lots of old things we don't know”.
Ambrose Bierce, The Devil's Dictionary
Lean Thinking Evolution