Lean manufacturing and psychosocial factors at work

Peter Hasle, Ph.d., Senior researcher National Research Centre for the Working Environment

ORP Valencia, May 6th 2010

Peter Hasle

Management concepts – a threat or a possibility for health and safety?

• More and more management concepts in organization of production processes

– Examples lean, TQM, balanced scorecards, business process reengineering, enterprise ressource planning (ERP), HRM

• How do management concepts influence work life and health and safety?

• The question is analysed in this presentation with lean as the example

Peter Hasle

Lean manufacturing – from cars to hospitals

• Lean manufacturing was invented for the car industry in the early 90ties

• Based on Japanese production principles mainly from Toyota

– Examples: just in time and kaizen• Moved from cars over general manufacturing to service

industry and public sector– Examples: administration and health care

• 20 years of experience with lean and effects on workers still disputed

Peter Hasle

Lean core activities

Creating value for the customer by reducing waste:

1. Identify processes creating value for the customer

2. Identify and eliminate waste processes

3. Introduce flow between all processes

4. Manage production based on pull from customers

5. Aim at perfection through continuous reduction of waste

Peter Hasle

Common lean tools

• Value stream mapping• Just in time (JIT)• Kaizen (continuous improvements)• Teamwork• 5S (layout and house keeping)• Total productive maintenance• U-cells (replace assembly lines)• Flow layout• Kanban (pull system)• Six sigma (quality control)

Peter Hasle

Lean and mean?

Lean as a way to increaseexploitation by continuouswork without breaks -resulting in tear and wear

Lean as empowerment of workers by participation in change and influencing the concrete work

Both possibilities find support in thelean thinking and in the health and safety litterature

Peter Hasle

A simple model for the effects of lean

Lean practice

Working environment

Health & well-being

Peter Hasle

Litterature review

Job function & working environment Health & well-being

Positive effects 3 1

Both positive & negative effects 2 3

Negative effects 4 4

No significant effects 1

No information 1 1

N 10 10

Jackson & Mullarkey 2000; Lewchuck et al. 2001; Parker 2003; Schouteten & Benders 2004; Seppälä & Klemola 2004; Sprigg & Jackson 2006; Conti et al. 2006; Womack et al. 2009, Ferrira 2009; Hasle 2010

Peter Hasle

Lean and stress in manufacturing industry

Increasing stress:• Higher work space, removal of resources, long working

hours, shorter cycle time, do work for absent colleagues, blame for quality faults

Problems highligted by lean which increase stress:• Poor workplace layout & lack of tools and equipment

Decreasing stress:• Participation in the change process, team organization &

support from management(Conti et al, 2006)

Peter Hasle

Lab technicians in Cancer department in hospital 1

Value stream mapping and a new work flowBefore:• The lab technicians were called after

arrival of out patient• Lab technicians walked from lab to

patients and searched for both patients and a vacant couch

After:• The patients walk to the lab technicians for

blood sampling and intubation of intravenous line

• A couch and a technician are ready for the patient

Advantage:• Less vaiting time for patients• More efficient use of lab technicians

Peter Hasle

Kaizen boards and reorganization• Weekly kaizen meetings• 84 small and large proposals, 68

implemented• Reorganization of lab• More efficient work, less mistakes and

more space

Outcome for lab technicians• Improvement of psychosocial factors

– Higher control, more variation, stronger social support

• Less stress and better mental health

Lab technicians in Cancer department in hospital 2

Peter Hasle

• n

Nurses in chemo out-patient clinic

Results• IT implementation problems• Experience of attack on

professionalism• Deterioration of psychosocial

factors

Standardization of patient booking

• New IT-program• From nurse to secretary

booking

Peter Hasle

A summary of risks and possibilities for psychosocial factors

Risks:• Intensification of work• Less control• Less variation due to

standardization• Less social support

Possibilities:• Removal of unnecessary tasks• Teamwork• Participation in changes• Variation due to continuous

improvements & U-cells

Often simultaneous advantages and disadvantages

– Intensification of workand

– Teamwork and participation

Peter Hasle

A first conclusion

• Lean as such has no direct effect on workers• But for manual assembly work it tends to increase

work intensity and impair health

• The effect depends on the lean practice formed by:

– The translation of lean thinking – The context for introduction of lean– The implementation of lean

Peter Hasle

Development of a lean practice

Lean context

Lean implemen-

tation

Lean thinking

Lean practice

Working environment

Health & well-being

Peter Hasle

Lean thinking – a strategic choice

Short term:• Strong potential for quick wins• Kaizen blitz may initative big

productivity jumps• The faster - the stronger

consultant and management control

• Often quick and dirty:– Line managers and

workers resist– Changes tend to

deteriorate and return to before situation

Long term:• Slow wins• More worker involvement• Less management control• Risk of been overtaken by

other pressing agendas• Potential:

– Committed line managers and workers

– Continuous improvements– Cultural embedment

Peter Hasle

Possibilities for improvement of psychosocial factors

Variation: Higher skills variety

Control: Worker participation in change proces and higher worker discretion over own work

Demands: Balance demands to control level and human capacity

Social support: Teamwork and management support

Rewards: Recognition of workers effort (attention, praise and benefits)

Meaning: Value to the customers creates meaning of work

Predictability: Participation in changes and transparant work processes

Peter Hasle

Lean context

External:• Market situation• Sector development• legislation

Internal:• Organizational social capital• Former changes• Change of management• Owner demands

Influence:• Management inter-

pretation of the need for lean

• Workers interpretation of management purpose with lean

Peter Hasle

A definition of social capital

• “Features of social organisation such as networks, norms, and social trust that facilitate coordination and cooperation for mutual benefit”

Putnam, 1995

Peter Hasle Peter Hasle

Organizational social capital

Performance

Collaboration

TrustJustice

Core businessactivities

Health andWell-being

Peter Hasle

Lean is challenging the organizational social capital

• Is the motives for lean to be trusted?

• Will the implementation be carried out in a fair manner?

• Will workers get influence on lean?

Peter Hasle

Examples of worker involvement in best practice Danish firms

• Discussion of lean principles in works councils

• Value stream mapping and other analytical tools applied by workers

• Communication and transparency by e.g. sticking results of value stream mapping to the walls in the production facilities

• Trial and error such as lean notice boards or new lay-outs designed by the workers

• Kaizen weeks performed by a small group of workers

• Weekly Kaizen meetings controlled by employees

• Training of workers and first line managers in lean

Peter Hasle

Building social capital

Participation in production changes

Collaboration about lean and the working environment

Peter Hasle

An expanded model for development of productive and healthy lean

Lean context

Lean implemen-

tation

Lean thinking

Lean practice

Perfor- mance

Social capital

Change manage-

ment

Psycho- social factors

Working environ- ment & health

Thank you for your attention

Peter Hasle pha@nrcwe.dk