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Introduction to Lean

Lean Finds a Unique Solution for You !

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Evolution of Scientific & Modern Management

An American Invention

Frederick W. Taylor – Scientific Management

The Ford Motor Company, Machine that Changed the World (1906-1927) – Henry Ford

- Flow Experiments in Fabrication Processes

- Sequential Flow Assembly Line

- A connected and Synchronized Flow

Highland Park and Rouge Plant in Detroit

Evolution of Scientific & Modern Management

FORD RIVER ROUGE PLANT (1927)

THE PLACE WHERE

MASS PRODUCTION STARTED

PEOPLE PAVING THE WAY

Gottlieb Daimler Karl Benz Robert Bosch

Samuel Murrsell Walton

Frederick Winslow

Taylor Henry Ford Ernst Werner

von Siemens

Edison

Thomas John Watson

Peter Drucker

The General Motors – 1920 to Present

Alfred Sloan

• Customer Segmentation, Different Products to Different Segments with Different Prices

• Modern Organizational Structure- Divisions

• Rate-of-Return for Decision Making

• Maximizing the Output of Individual Processes

• Centralized Planning and Control Based on Managerial Accounting

•

• “We are not in the business of making cars, we are in the business of making money” (A.S)

The US War Bureau –

II. World War

• Re-Organization of Industrial Power

• Method Training

• Standard Work

• On the Job Training

• Shop Floor Industrial Relations

Sheward & Deming

• Statistical Process Control

• TQM

• Out of Crises

• More Influence to Japanese Industrial Revival rather than USA ?

Peter Drucker & Many Other Business

and Management Thinkers

• Management by Objectives , Practice of Management, 1954

• Human Side of the Enterprise (McGregor)

• Maslow

• Herzberg

• Skinner

• Kottler

• Gary Hamel (death of the modern management)

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HOW HAS LEAN EVOLVED ?

Introduction to Toyota Production System

Historical Evolution:

Seichi Toyoda – Invention of Automatic

Loom, 1920s

Kiichiro Toyoda (Birth of the Toyota Motor

Corporation) 1934 – 1950s

Taiichi Ohno

Eiji Toyoda, Soichiro Toyoda

Fuji Cho (Toyota Way, 2001)

Recent Troubles, Okuda, Watanabe

Akio Toyoda

EVEN MOST SUCCESSFUL COMPANIES

EXPERIENCE CRISIS

13

Destination

(Vision)

Starting Point

(Current Condition)

The Strategic Plan is

the “Road” to a Desired

Future State of the Organization

Use Hoshin to

remove the Big

Boulders, one at a Time

HOSHIN - ROADMAP

Use Continuous Improvement

to remove small obstacles

on an ongoing basis

Later

Later

Toyota Way – 4P

Philosopy (Management decisions based on long term thinking)

Processes (Perfect processes without waste )

People and Partners (Respect, challenge and improve

leaders, teams and partners)

Problem

Solving (Go and see yourself,

decisions by

concensus and

reflection)

Copyright 2007

Lean Associates,

Inc.

859-552-5326

…“ listening the customer,

with the principles of

respect for people and

contribution to society,

while progressively getting

rid of wastes; and

authorized workers creating

value while constantly

looking for perfection ”

Toyota Management System

TMS (Toyota Management System) TDS (Toyota Development System) Total TPS (Total Toyota Production System) TMSS (Toyota Marketing & Sales System)

Design

Engineering

Production

TPS

Marketing

Concept

Marketing Design

Production

Concept

Product Concept

TDS

TMSS

TMS

Production

Design

Sales, After sales

and CRM

Total TPS

Benchmark – Toyota Way

The Toyota Way

2001 is an ideal, a

standard and a

guiding beacon for

the people of the

global Toyota

organization.

It expresses the

beliefs and values

shared by all of us.

Hoshin Kanri = Direction Management

Function Hoshin

Division Hoshin

Department Hoshin

Individual Priority Themes

OJD

P/S

Horizontal Alignment

Vertical A

lign

men

t

Company Hoshin

Every Lean Organization Must

Address

• Purpose – Provide value to customers and society in order to prosper.

• Process – Through smoothly flowing value streams for design, make, and use.

• People – By engaging every employee touching value streams (including support streams) to sustain and improve the flow.

Seeing the Waste

Value & Work Flows Across Functions

Sales Marketing

R&D

Supply

Chain

Human

Resources

Finance IT

Expanding the Business

Fulfilling Customer Orders

Cultivating People, and Creating Leaders Big

hori

zon

tal

bu

sin

ess

pro

cesse

s

Most important problems are cross-functional Suppliers Customers

• Focus - Production

• Budgets, SOP’s

• Make the numbers

• Leaders separated from the work

• People’s ingenuity used to “beat

the system”

• Supervisors “manage” people

Horizontal

• Focus - Process

• Purpose

• Make problems visible

• Leaders focusing on the work

• People’s ingenuity used to

“improve the system”

• Supervisors work with the people

to solve problems

Vertical

Purpose

Profit

Long Term

Success

Contribute to

Economy

Contribute to

Society

Good Quality

Long Term

Mutual

Prosperity

A Paycheck

Growth

Good Benefits

A Safe

Workplace

Meaningful

Work

Company Goals Employee Goals

Mutual Trust

Respect

Partnership

A Partnership between an Organization & its Employees

Mutual Trust

Continuous

Improvement

Organization provides Stable Employment &

Sustains or Improves Working Conditions

Employees Contribute Efforts to Realize

Company Objectives

Organizational

Prosperity is

achieved

through

Continuous

Improvement

Employees

Satisfaction is

experienced

through the

Continuous

Improvement

Process

Safety Quality Productivity Cost HR

Make problems & opportunities

for kaizen visible.

Standardized Work, 5-S

Visual Control (Andon, Line-stop, Visual Management)

Problem Solving

PD

CA

Standardized Work, 5-S Standardized Work, 5-S

Visual Control & Management

Set up

Standard

Check

Abnormality

Kaizen

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Our Acquaintance with Lean & Formation

of the Turkish Lean Institute

1994 Machine that Changed the World (MIT IMVP)

Koç 2000 Customer and Quality Oriented Management

Project - Preparation to EU Customs Union

Lean Thinking, Meeting James Womack

1998 First Lean Summit in Istanbul

2002 Formation of the Turkish Lean Institute

Progress from 2002 to present

Present Customer Base

Lean Global Network

• Lean Institute USA, 1997

• Lean Global Network, 2009

• Lean Institute Turkey, 2002

• Established in 2002

• Total 23 consultant/trainers & 5 admin people

• Trainers with minimum 10 years of industry experience

Books

Training Programs

Conferences / Seminars

Implementation Support

Successful Business Cooperations

21.8% of the Top 500 companies of Turkey

and also

46 of the Top 250 companies operating in

Bursa area

BTSO OSB – Bursa Main Industrial Zone

The Oldest and Largest Industrial Zone of Turkey

within Bursa Province has been one of our key

accounts with their full satisfaction.

We work with the Zone Authority for a Lean

Transformation Project. This cooperation gives

solid benefit for all the shareholders :

• Turkish State,

• Zone Management and People working within the Zone,

• 206 Companies in the Zone,

• Local Government and Bursa İnhabitants

Lean Institute Turkey – From 2002 to

Future

Yalçın İpbüken

President Ali Yalçın

Board Member

Ülkü Kulaç

Secretary General –

Consultant

Lemi Güngördü

Board Member –

Consultant

Nezih Soydan

Vice President –

Consultant

Cevdet Özdoğan

Vice President –

Consultant

Funda Şenyıldız

Consultant

Kürşat Kaya

Consultant Sabri Yalçın Akdemir

Asuman

Filiz

Bülent Sönmez

Consultant

Hüsrev Yaman

Consultant

Cezmi Aytekin

Consultant

Murat Bedük

Consultant

Seçkin Yılmaz

Consultant

Gülşen Demirkol

Office Manager

Murat Ihlamur

Board Member

İzzet Aytekin

Consultant

İsmail Baş

Consultant Buket Kanber

Special Projects

Responsible

Çiğdem Çınar

Office Staff

Can Yükselen

Consultant Sedat Canoğlu

Consultant

İdris Aydın

Consultant Ömer Faruk Tekin

Consultant

Sibel Börekçi

Consultant

Murat Kuter

Consultant

Hakan Akgül

Consultant

Customer profile

• Total of 288 companies from different sectors, 88 transformation projects led by Lean Institute Turkey

Some of our References