Lean Thinking Evolution PowerPoint Presentation, PPT - DocSlides

Lean Thinking Evolution

Origins of Lean Thinking...?

Lean Thinking Evolution

Venetian ship builders

Carthaginian navy

18

th

century RN frigate gun

WW2 Boeing B17 bomber

Colt Armoury

My great uncle’s WW1 Waltham watch

Development of Lean

Lean Thinking Evolution

FW Taylor & Scientific Management

W Edwards Deming

Henry Ford

Masaaki Imai

Schonberger

TWI

Frank

Woollard

“The Machine that

Changed the World”

Term lean first popularised in 1990 bookWomack, Jones & Roos - MIT studyIllustrated performance gap between Japanese & western automotive industriessuperior performance due to “lean production” ‘Lean’ -ie used less of everythingHUMAN EFFORT, CAPITAL, SPACE, STOCK, TIME - in all activities

Lean Thinking Evolution

“Lean Thinking”

Lean Thinking (Womack & Jones, 1996)Demonstrated application in other sectorsDescribed range of tools & techniquesLean ‘vocabulary’, egKaizen, Kaikaku, Hoshin KanriJIT, Muda“Lean Principles” put forward

Lean Thinking Evolution

“Great packaging job!”

Five Lean Principles

Specify what creates value from the customers perspective Identify all steps across the whole value streamMake those actions that create value flowOnly make what is pulled by the customer just-in-timeStrive for perfection by continually removing successive layers of waste

Lean Thinking Evolution

How valid are the 5 principles today?

Evolution of Lean Thinking into 21st Century

“From Prescription to Contingency”Four broad stages identified:AwarenessShop FloorValue StreamValue SystemSee paper “Learning to Evolve”

Lean Thinking Evolution

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”

Solve my problem completelyDon’t waste the my timeProvide exactly what I wantDeliver value where I want itSupply value when I want it

Lean Thinking Evolution

Lean in Services...Issues

Impact 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 servicesDevelopment of new avenues of thought, use of concepts, techniques from other disciplines

Lean Thinking Evolution

“Systems Thinking”

John Seddon

Lean Thinking Evolution

Sustainable System Lean Management

Lean Thinking Evolution

Source: P. Hines, P. Found, G. Griffiths & R. Harrison, Staying Lean, 2007

Lean Management

Top 10 Reasons for Lean Failure

Lack of a clear executive visionLack of an effective communication strategyFailure to create and communicate a real sense of urgencyPoor consultation with stakeholdersLack of structure methodology and project managementFailure to monitor and evaluate the outcomeFailure to mobilise change championsFailure to engage employeesAbsence of a dedicated and fully resourced implementation teamLack of sympathetic and supportive Human Resources policiesLucey, Bateman and Hines, 2005

Lean Thinking Evolution

Development & Latest Thinking

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

Lean Thinking Evolution

Respect for People

Continuous

Improvement

Fake Lean

Real

Lean

Emiliani, 2007

Jim

Womack

Lean Thinking Evolution

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 evenlyMura and Muri lead to Muda

Lean Thinking Evolution

The Term ‘Lean’

Much debate about its name

Negative connotation‘lean & mean” etcLean’s association with downsizingW&J ‘regret’ the labelSome confusion“lean sigma”, “lean manufacturing”BUT: it really does not matter what you call it!Continuous Improvementxxx Production System, The Unipart Way etcSystems Thinking

Lean Thinking Evolution

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 issuelean management >>> lean leadershipNeed for a contingent approachNot prescriptive

Lean Thinking Evolution

Lean Thinking is …

Lean Thinking Evolution

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’…

Lean Thinking Evolution

“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

Lean Thinking Evolution

Delivering

appropriate customer

value with the minimum

of resources.

Holistic Perspective on Lean

Holistic, ‘systems’ approach to lean improvementLean  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 workforceMany different ‘lean’ methodologiesOrganisations require their own, bespoke solution for sustained implementationa contingent approach to lean

Lean Thinking Evolution

Bicheno’s 5 Revised Principles

Value for Customers, Stakeholders, and EnvironmentWaste (Muda)Value demand vs Failure DemandSystem end-to-end value streamsholistic, integrated, with feedbackFlowAdd value without interruptionMuri (overburden and capacity overload), Mura (unevenness, variation, amplification.)PerfectionPeople

Lean Thinking Evolution

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