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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

Lean Thinking Evolution

FW Taylor & Scientific Management

W Edwards Deming

Henry Ford

Masaaki Imai

Schonberger

TWI

Frank Woollard

Lean Thinking Evolution

“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”

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

Lean Thinking Evolution

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

Lean Thinking Evolution

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

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 evenly

Mura and Muri lead to Muda

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 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’…

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 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

Lean Thinking Evolution

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

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