Lean Transformation a Journey

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Lean concepts evolved from the JIT philosophy pioneered in Japan by Toyota and embodied in their Toyota Production System (TPS)The emphasis of JIT is the elimination of waste throughout the supply chainIn the 1990's companies adopted the term lean in place of JIT

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  • Lean TransformationA Journey

    Anand Subramaniam

  • You are here to enrich the world, and you impoverish yourself if you forget the errand.

    - Woodrow Wilson

  • Origins of LeanLean concepts evolved from the JIT philosophy pioneered in Japan by Toyota and embodied in their Toyota Production System (TPS)

    The emphasis of JIT is the elimination of waste throughout the supply chain

    In the 1990's companies adopted the term lean in place of JIT

  • Basis of Lean ThinkingLean means producingWhat is neededWhen it is neededWith the minimum amount of materials, equipment, labor, and space

    The goal of an enterprise adopting leanMake each process as efficient and effective as possibleConnecting those processes in a stream or continuous chain that is focused on flow and maximising customer value

  • Lean PrinciplesSpecify value in the eyes of the customerIdentify the value stream and eliminate the wasteMake value flow at the pull of the customerInvolve and empower employees (there is no better source of insight than the employees who are performing the work)Continuously improve (kaizen) in pursuit of perfection

  • Note..It is a systematic approach to drive customer satisfaction and operational excellence

    Be flexible and vary the approach depending on your organisations culture

    It is a journey / endurance race for continuous learning and improving top & bottom line

    It requires leadership, discipline, and buy in on lean philosophy

    Process improvement and people development must go hand in hand

    It is on the job, real time learning & training

    Lean is 20% Technical and 80% Behaivioral

  • ChallengesViewed as technical transformation (not cultural transformation)

    Looked upon as One-size-fits-all approach

    Lack of commitment and understanding of effort required by C Level and All Levels

    Most organisations never get deep enough into the lean process to achieve true success

    Focus on departments rather than value streams

  • Internal Challenges

  • Best in Class Strategic Actions

  • Improvements from Lean Implementation

  • Lean Transformation Implementation

  • Lean Transformation - Enterprise Approach

  • Enterprise Level Roadmap High LevelEntry / Re-entryCycleAdopt Lean ParadigmDecision to pursueEnterprise TransformationEnterpriseStrategicPlanningLong Term CycleFocus on theValue StreamDevelop Lean Structure &Behavior

    Create & RefineTransformation Plan

    Focus on ContinuousImprovement

    Implement Lean InitiativesInitial Lean VisionLean VisionLeanTransformationFrameworkShort Term CycleDetailedCorrective ActionIndicatorsOutcomes onEnterpriseMetricsEnvironmentalCorrectiveAction IndicatorsEnterpriseLevelTransformationPlan+Source: MIT Lean Aerospace InitiativeLean Impact

  • Enterprise Level Roadmap Detailed

  • Example - Enterprise Level Roadmap

  • Benefits of Enterprise Level Roadmap Facilitates enterprise focusProvides sequence for enterprise transformationIncreases understanding of what went wrong in previous transformation attemptsFocuses on people/leadership issuesProvides an organising framework for enterprise wide transition

  • Enterprise Transition to Lean

  • Lean Enterprise Self Assessment

  • Checklist, Process & ProcedureLean Structure & BehaviourOrganise for Lean Implementation (checklist)Identify & Empower Change Agents (process)Align Incentives (process & procedure)Adapt Structure & Systems (process & checklist)

    Create & Refine Transformation Plan Identify & Prioritise Activities (checklist)Commit Resources (process)Provide Education & Training (procedure)

    Implement Lean Initiatives Develop Detail Plans (process & Checklist)Implement Lean Activities (As-Is/To-Be process, checklist)Enterprise Transition to Lean (process & checklist)Measure Improvement / Self Assessment / Lesson Learnt (checklist)

    Adopt Lean ParadigmBuild Vision (process & checklist)Convey Need (process & checklist)Foster Lean Learning (procedure)Make the Commitment (process)Obtain Senior Management Buy-in (process)

    Focus on Value StreamMap Value Stream (process & checklist)Internalise Vision (process & checklist)Set Goals & Metrics (process & checklist)Identify & Involve Key Stakeholders (process)

    Focus on Continuous ImprovementMonitor Lean progress (process & checklist) Refine the Plan (process)Capture & Adopt New Knowledge (process)

  • Example Lean Structure Phase Lean Structure Behaviour

    Outcome Change Management Plan

    Process Strategic AlignmentTop Management support & commitmentSense of Urgency and proritiesStakeholder InvolvementOrganisational StructureGoals and ObjectivesTransformation PlanMonitoring and Nurturing

    Checklist Customer need assessmentCommunication assessment Readiness assessment Training Needs Analysis

  • Example - Change - Checklist

  • Example - Convey Need Phase Adopt Lean ParadigmOutcome Build a VisionProcess review (culture, internal & external process, success criteria, stakeholder needs, training needs, case studies of successful lean implementation, research) Checklist -

  • Example - Implement Lean Phase Implement Lean InitiativeOutcome Baseline and improvement level using 5 S - Increase productivity, product quality & safety at work : reduce manufacturing cost: improve on-time deliveryProcess Clearout and Classify - Clearing items no longer required : Tagging items that may be required and storing away from workplace Configure - A place for everything & everything in its place Clean and check - Identify cleaning zones, establish cleaning routines Conformity - Roll out across the organisationCulture and practice- Monitor process adherence & continually validate Checklist

  • Example - Value Stream Map

  • Lean Building Blocks

  • Waste Elimination

  • Reference - Leanwww.lean.orgwww.productivityinc.comwww.productivitypress.comwww.leanadvisors.comBuilding the Lean Machine, Advanced Manufacturing, January 2000. Fiore, Clifford, Accelerated Product Development: Combining Lean and Six Sigma for Peak Performance, Productivity Press, NY, NY, 2005. Hamilton, Bruce, Toast Kaizen, An Introduction to Continuous Improvement & Lean Principles, Greater Boston Manufacturing Partnership, University of Massachusetts, Boston, MA, 2005 (DVD). Insights On Implementation-Improved Flow: Collected Practices and Cases, Ralph Bernstein, Editor, Productivity Press, 2006. Jacobs, Robert F. and Chase, Richard B., Operations and Supply Management: The Core, McGraw-Hill/Irwin, NY, NY, 2008. Nahmias, Steven, Production & Operations Analysis, 5th Edition, McGraw-Hill/Irwin, NY, NY, 2005. Nave, Dave, How to Compare Six Sigma, Lean, and the Theory of Constraints, Quality Progress, March 2002, pgs 73 78. Thinking Beyond Lean - How Multi-Project Management is Transforming Product Development at Toyota and Other Companies (Cusumano, M. A. & Nobeoka, K. 1998)

  • To improve is to change. To be perfect is to change often.

    - Winston Churchill

  • Good Luckhttp://www.linkedin.com/in/anandsubramaniam