Lean Thinking Evolution

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Presentation transcript:

Lean Thinking Evolution E&Y Lean Course - Introduction Lean Thinking Evolution

Origins of Lean Thinking...? WW2 Boeing B17 bomber Venetian ship builders Carthaginian navy My great uncle’s WW1 Waltham watch 18th century RN frigate gun Colt Armoury Lean Thinking Evolution

FW Taylor & Scientific Management Development of Lean FW Taylor & Scientific Management W Edwards Deming Henry Ford Frank Woollard Schonberger TWI Lean Thinking Evolution Masaaki Imai

“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 Lean Thinking Evolution

Lean Thinking Development & Latest Thinking Lean Thinking (Womack & Jones, 1996) Demonstrated application in other sectors Described range of tools & techniques Lean ‘vocabulary’, eg Kaizen, Kaikaku, Hoshin Kanri JIT, Muda “Lean Principles” put forward “Great packaging job!” Lean Thinking Evolution

Lean Thinking Development & Latest Thinking Five Lean Principles Specify what creates value from the customers perspective Identify all steps across the whole value stream Make those actions that create value flow Only make what is pulled by the customer just-in-time Strive for perfection by continually removing successive layers of waste 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: Awareness Shop Floor Value Stream 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 Lean Thinking Evolution

Development of Lean Thinking Sectors Auto Manufacturing OEMs, supply chain, 1st , 2nd tier 1990 Other Manufacturing aerospace, other manufacturing, process industries Distribution Construction logistics, transportation, retailing After Sales Services repair & maintenance, back office Food Chain Consumer Services Public Services healthcare, defence, local govt ? financial services, insurance, legal Lean Thinking Evolution

“Lean Solutions” Solve my problem completely Don’t waste the my time Provide exactly what I want Deliver value where I want it Supply value when I want it Lean Thinking Evolution

Lean in Services...Issues Lean Thinking Development & Latest Thinking Lean in Services...Issues Impact of characteristics of services on approach to process improvement Also wide diversity / types of services Nature of value in services Added complexity in public services Applying 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 Lean Thinking Evolution

Sustainable System Lean Management Lean Thinking Development & Latest Thinking Sustainable System Lean Management Lean Management Not going to talk about the above the waterline elements Lean Thinking Evolution Source: P. Hines, P. Found, G. Griffiths & R. Harrison, Staying Lean, 2007

Top 10 Reasons for Lean Failure Lean Thinking Development & Latest Thinking Top 10 Reasons for Lean Failure Lack of a clear executive vision Lack of an effective communication strategy Failure to create and communicate a real sense of urgency Poor consultation with stakeholders Lack of structure methodology and project management Failure to monitor and evaluate the outcome Failure to mobilise change champions Failure to engage employees Absence of a dedicated and fully resourced implementation team Lack of sympathetic and supportive Human Resources policies Lucey, Bateman and Hines, 2005 Ask for comments – does this resonate with you? Lean Thinking Evolution Development & Latest Thinking Lean Thinking & Contact Centres

Fake Lean & Real Lean: Learning from The Toyota Way Respect for People Continuous Improvement Emiliani, 2007 Fake Lean “90% of problems in business are caused by management, 10% by the workman” F.W Taylor 1912 Real Lean Lean Thinking Evolution

Lean Thinking Development & Latest Thinking Jim Womack Lean Thinking Evolution

Lean Leadership Dan Jones Lean Summit, November 2011 Lean Thinking Evolution

So What is Lean About? (more than just waste..) Lean Thinking Development & Latest Thinking So What is Lean About? (more than just waste..) Muda (Waste) Mura (Unevenness) Muri (Burden) Lean Thinking Evolution Advanced Lean Service

Muda, Muri, and Mura Muda - waste - non value added Muri – 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 Lean Thinking Evolution

The Term ‘Lean’ Much debate about its name Negative connotation ‘lean & mean” etc Lean’s association with downsizing W&J ‘regret’ the label Some confusion “lean sigma”, “lean manufacturing” BUT: it really does not matter what you call it! Continuous Improvement xxx Production System, The Unipart Way etc Systems Thinking Lean Thinking Evolution

Lean Thinking Development Lean Thinking Development & Latest Thinking Lean Thinking Development Underlying thinking not suddenly invented /emerged ‘Lean’ ways have always existed Several academics & industrialists have contributed to its development W&J framework important Evolving nature & emerging themes ‘Traditional’ lean ≠ service lean Sustainability a key issue lean management >>> lean leadership Need for a contingent approach Not prescriptive Lean Thinking Evolution

Lean Thinking Development & Latest Thinking Lean Thinking is … …a Growth Strategy…an Improvement Strategy Understanding & focus on customer value & demand Improving quality Creating capacity to do more By Removing Waste Improving the flow of productive activities - throughput Reducing lead time Continuous improvement Taking a whole system perspective Lean Thinking Evolution

A Lean ‘Business System’… “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 Evolution

Lean Thinking…In Short Delivering appropriate customer value with the minimum of resources. Lean Thinking Evolution

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 leadership understand the need for an engaged, empowered workforce Many different ‘lean’ methodologies Organisations require their own, bespoke solution for sustained implementation a contingent approach to lean Lean Thinking Evolution

Bicheno’s 5 Revised Principles Value for Customers, Stakeholders, and Environment Waste (Muda) Value demand vs Failure Demand System end-to-end value streams holistic, integrated, with feedback Flow Add value without interruption Muri (overburden and capacity overload), Mura (unevenness, variation, amplification.) Perfection People Lean Thinking Evolution

Lean Principles Revised Bob Emiliani Lean Thinking Evolution

Lean Thinking Development & Latest Thinking 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