Why Lean 140816
- 1. Why Lean? Withclip-boardandstop-watchinhand I served mytime onwork-study. Thankfully thosedaysare overbut thenalongcame QualityCircles,GroupTechnology,Just-In-Time,WorldClass Manufacturing,Total Quality,6-Sigmaandforthe last couple of decadesLean,spicedalongthe way withSPC, TPM, MRP andwhole lotof otherTLAs (see TLA Busterbelow). All these managementsystemshave somemeritandare infact a progressionof ideasthatprobably go back to buildingthe pyramids. My conclusion?Do-what-works(DWW);Ihappilyuse whatever ideas,toolsandmethodologiesare effectiveandresponsibleforthe job.Butof all management systemsLeanisthe probablythe mostcomprehensiveandsuccessful. SowhyLean? Inmy view successful Leanaddressesthe needsof customers,employeesandof course,shareholdersby increasingprofits. Lean iswide inscope andextendsfromanorganisationsrelationshipwithcustomersthroughits operationsandsuppliers. Itincludesimprovingoffice processesas muchas shop-floor. It’snota simple collectionof independenttoolssuchasSMED, 5S or Value StreamMappingbutis a comprehensive managementsystem, baseduponsoundprinciples. The firstof these principlesisto “understandwhataddsvalue forcustomers”. Unlesscustomers’ needsare clearlyunderstooditisdifficulttoidentify andminimise activitiesthatare notvalue addingor waste.Althoughmostorganisationsclaimtobe customerfocusedI’moftensurprised how manydon’thave a clearideaof what addsvalue or evenwhotheircustomersare. Andthenthey seemtolose the plot - banksinthe noughties,forinstance. A clearideaof customersshouldleadtoa clear vision andstrategy. Withoutaclear strategyitis difficulttodevelopefficientoperationstosupportitandit isnot uncommonto findthe operationis drivingstrategy. Leanjargonfor the processof linkingstrategytooperationdesignandcontrol is “PolicyDeployment”–a whole bigtopic. Witha clearideaof what addsvalue forcustomersand the shape of operationstosupportstrategy Lean focusesonreducing “waste”. InLeantermswaste is anythingthatdoesnotadd value, includingwastedeffort,material,energy,systemsandpeople’seffortandtalent. Scratcha Lean practitionerandhe or she will come upwithlonglistsof differentcategoriesof waste,notall them obvious.Usingtoolslike Value StreamMappingmake waste visual,particularlyorganisational effort, allowingpeople tosee forthemselveshow toreduce it. The importantpointof course isthat if
- 2. productsand servicescanbe soldwithlesswaste thenprofits directlyincrease whichishow most Lean projects yieldafour-foldreturnoninvestment,sometimesmuchmore. Eventhe most perfectbusinessmodels,processesandproductshave toadapt tochanging circumstancesandso ContinuousImprovementisanecessityforcommercial survival. However, afteran initial projectortwo,manyorganisationsthinktheyhave “done Lean”andlookaroundfor the nextquick-fix.ButLeanisnot a quick-fix. Quick-winsare importanttobuildinitial confidence but are not the end-goal of a culture thatseekstoconstantlyimprove,andknowshow todo it. Continuousimprovementisthe ultimateaim;like goodathletesone of the qualifyingindicatorsof a healthyLeanorganisationisconfidence initsabilitiesbutrelentlessdissatisfactionwithitscurrent performance. “Happybutneversatisfied” aptly saysone managingdirectorIknow. More than anyothermethodology,Leanemphasisesconstantreview andimprovementwiththe engine foradaptiontochangingcircumstancesbeingwell-trained,confident,motivatedpeople. So an underlyingprinciple of Leanis“respect forpeople”,whichiswhythe phrase “Leanandmean”is out of place.Respectforpeople doesnotmeanbeingsoft,naiveover-payingorevenbeing democratic. Neitheris“respectforpeople”some kindof exoticphilosophynotapplicable to Westerncultures;experience shows“respectforpeople”inaLean contextisuniversal. Lean providesasensible emphasisondevelopingaculture thatmotivatespeople bygivingthemclear direction,trainingtosolve problemsandopportunitiestoimprove processesfor themselves,orseek experthelpwhenneeded. ManytimesIfindemployeesworkingwell below theirintellectual potential andcontributinglessthantheycould. Traditional work-studymethodstendedto encourage a sadlack of initiative andmutual respect thatultimatelyledtorigidcultures,unableto continuouslyimprove. Lean isnot a panaceaand no doubtwill be overtakenbybetternew managementsystems. Butmy betis that whatevercomesalongwillinclude alotof Lean thinking,asLeanhas developedfrom previousmethodologies. MeanwhileI’ll continue withDWWandthat includesagooddose of Lean. TLA-Buster DWW – Do What Works; pragmaticuse of toolsandtechniques –youread ithere first MRP – MaterialsRequirementPlanning;computerisedproductionandstockmanagement SPC– Statistical ProcessControl;asetof statistical toolsforminimisingprocessvariation SMED - Single Minute exchange of Dies;ananalytical methodtoreduce make-readies TPM – Total Productive Maintenance;methodforreducingbreak-downsandincreasingproductivity TLA – Three LetterAcronym;whatit says!