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Fifth edition
by
John Bicheno
Buckingham Lean Enterprise Unit, University of Buckingham
and
Matthias Holweg
Saïd Business School, University of Oxford
PRODUCTION AND INVENTORY CONTROL, SYSTEMS AND INDUSTRIAL ENGINEERING (PICSIE) BOOKS
BUCKINGHAM, ENGLAND
2016
ii
Table of Contents
1 THE LEAN JOURNEY ................................................ 1 5 MANAGING CHANGE ........................................... 76
1.1 WHAT IS LEAN….? ..............................................1 5.1 PEOPLE AND CHANGE IN LEAN ............................ 76
1.2 LEAN EVOLUTION ...............................................1 5.2 SOCIO TECHNICAL SYSTEMS ................................ 76
1.3 THE DOUBLE DIAMOND .......................................2 5.3 RESPECT AND HUMILITY .................................... 77
1.4 LEAN, THE S-CURVE AND INNOVATION ....................3 5.4 THE PEOPLE TRILOGY ........................................ 79
1.5 WHERE TO START? LEAN TRANSFORMATION 5.5 MODELS FOR CHANGE MANAGEMENT ................. 82
FRAMEWORKS ...................................................4 5.6 CREATING THE LEAN CULTURE ............................ 90
1.6 VALUE STREAM MAPPING (VSM)..........................4 5.7 THE ADOPTION CURVE AND KEY PEOPLE............... 93
1.7 THE HOUSE OF LEAN ...........................................4
1.8 THE LEAN ENTERPRISE HOUSE ...............................5 6 SUSTAINABILITY–MAKING CHANGE STICK ............ 97
1.9 SHINGO PRIZE FRAMEWORK .................................6 6.1 BACKSLIDING ................................................... 97
1.10 THE HIERARCHICAL TRANSFORMATION FRAMEWORK.8 6.2 THE FAILURE MODES OF LEAN IMPLEMENTATIONS . 98
1.11 OTHER APPROACHES TO LEAN IMPLEMENTATION. ..11 6.3 A WORD OF WARNING ON LEAN IMPROVEMENT ... 102
2 THE LEAN MINDSET.............................................. 13 6.4 PROCESS (AND SYSTEM) SUSTAINABILITY ............ 102
6.5 STAFF SUSTAINABILITY..................................... 104
2.1 THE ‘IDEAL WAY’, ‘TRUE NORTH’, AND PURPOSE ...13
2.2 THE FIVE LEAN PRINCIPLES .................................13 7 STRATEGY AND DEPLOYMENT ............................109
2.3 LEAN IS NOT TOOLS – OR EVEN A SET OF INTEGRATED 7.1 WHAT IS AN ‘OPERATIONS STRATEGY’? .............. 109
TOOLS! ..........................................................15 7.2 FORMULATING AN OPERATIONS STRATEGY.......... 109
2.4 GEMBA AND GENCHI-GENBUTSU .........................15 7.3 TRADITIONAL PLANNING .................................. 111
2.5 PULL ..............................................................15 7.4 HOSHIN KANRI – DEPLOYING AN OPERATIONS
2.6 MUDA AND THE SEVEN WASTES ..........................17 STRATEGY .................................................... 111
2.7 THE ORIGINAL SEVEN WASTES ............................18 7.5 ‘NEMAWASHI’, ‘HANSEI’ AND ‘CATCHBALL’......... 113
2.8 THE NEW WASTES ............................................21 7.6 CONCLUDING REMARKS ON POLICY DEPLOYMENT . 115
2.9 LEAN IS ALL ABOUT PRODUCTIVITY .......................24 7.7 BUSINESS MODEL GENERATION ........................ 116
2.10 LEAN IS SYSTEMS THINKING ................................25 7.8 VALUE STREAM ECONOMICS: WHAT TO MAKE WHERE
2.11 LEAN IS CONTINUOUS LEARNING .........................29 .................................................................. 117
2.12 LEAN IS BOTH REVOLUTION AND EVOLUTION..........29 7.9 THE ESSENTIAL PARETOS ................................. 119
2.13 LEAN IS ‘DISTRIBUTED DECISIONS’........................30 7.10 DISRUPTIVE TECHNOLOGIES ............................. 122
2.14 LEAN IS GREEN .................................................30
2.15 LEAN IS COMPRESSION ......................................31 8 PREPARING FOR FLOW .......................................124
2.16 THE 25 PRINCIPLES OF LEAN ...............................32 8.1 DEMAND MANAGEMENT ................................. 124
2.17 THE TOYOTA WAY ............................................35 8.2 DEMAND ANALYSIS......................................... 125
2.18 THE DNA OF TPS: FOUR RULES AND FOUR 8.3 VALUE STREAM ORGANIZATION ........................ 128
QUESTIONS ....................................................35 8.4 TOTAL PRODUCTIVE MAINTENANCE (TPM) ........ 129
8.5 TAKT TIME, PITCH TIME, PLANNED CYCLE TIME, AND
3 THE SCIENCE OF LEAN .......................................... 38
CADENCE. .................................................... 134
3.1 THE KINGMAN EQUATION ..................................38 8.6 ACTIVITY TIMING, ACTIVITY SAMPLING AND WORK
3.2 LITTLE’S LAW ...................................................42 ELEMENTS .................................................... 135
3.3 CRITICAL WIP ..................................................43 A NOTE ON ACTIVITY SAMPLING ......................................... 136
3.4 BUFFERS .........................................................45 8.7 5S ............................................................... 136
3.5 INVENTORY TRADE-OFF CURVES ..........................46 8.8 VISUAL MANAGEMENT.................................... 140
4 IMPROVEMENT.................................................... 49 8.9 STANDARD WORK, STANDARDIZED WORK AND
STANDARD OPERATING PROCEDURES ................ 142
4.1 HOW TO GET STARTED .......................................49 8.10 TRAINING WITHIN INDUSTRY (TWI) ................... 146
4.2 GEMBA WALKS, AND THE GEMBA ........................49 8.11 CHANGEOVER REDUCTION (SMED)................... 148
4.3 IMPROVEMENT CYCLES: PDCA, DMAIC, AND 8D ..51 8.12 SMALL MACHINES, AVOIDING MONUMENTS AND
4.4 ROOT CAUSE PROBLEM SOLVING .........................54 THINKING SMALL ........................................... 151
4.5 KATA ..............................................................57
4.6 KAIZEN ...........................................................62 9 MAPPING AND ANALYSIS....................................153
4.7 MESS MANAGEMENT ........................................68 9.1 WHAT IS THE AIM OF MAPPING? ...................... 153
4.8 A3 PROBLEM SOLVING AND REPORTS ...................69 9.2 BEFORE YOU BEGIN MAPPING…........................ 153
4.9 COMMUNICATIONS BOARD ................................71 9.3 INTRODUCTION AND WARNINGS ....................... 153
4.10 ORGANIZING FOR IMPROVEMENT ........................73 9.4 THE FIVE STAGES OF MAPPING ......................... 154
9.5 TYPES OF MAPS ............................................. 160
iv
9.6 A NOTE ON INTERVENTION THEORY AND CHANGE .. 95 14.6 MAIN LEAN DESIGN TOOLS .............................. 256
14.7 ADDITIONAL TOOLS FOR LEAN PRODUCT
10 LAYOUT, CELLS AND LINE BALANCE .................... 175 DEVELOPMENT .............................................. 262
10.1 LAYOUT, CELL AND LINE DESIGN, LEAN PLANT LAYOUT
................................................................. 175 15 CREATING THE LEAN SUPPLY CHAIN.................... 272
10.2 MAJOR TYPES OF LAYOUT: THE PRODUCT PROCESS 15.1 WHAT IS SUPPLY CHAIN MANAGEMENT? ............. 272
MATRIX ...................................................... 175 15.2 THE THREE SUPPLY CHAIN ‘ENEMIES’ .................. 274
10.3 GENERAL LAYOUT: GOOD AND NOT SO GOOD AT THE 15.3 SO WHAT MAKES A SUPPLY CHAIN LEAN? ............. 275
FACTORY LEVEL............................................. 175 15.4 DYNAMIC DISTORTIONS – THE BULLWHIP EFFECT . 275
10.4 MATERIAL HANDING: GOOD AND NOT SO GOOD AT 15.5 MANAGING SUPPLIER RELATIONS ....................... 278
THE FACTORY LEVEL. ...................................... 180 15.6 SUPPLY CHAIN COLLABORATION ........................ 284
10.5 CELLS .......................................................... 181 15.7 LEAN LOGISTICS.............................................. 285
10.6 CHAKU-CHAKU CELL OR LINE ........................... 187 15.8 MANAGING SUPPLY CHAIN RISK ........................ 286
10.7 VIRTUAL CELLS .............................................. 187 15.9 ORDER FULFILMENT AND PRODUCT CUSTOMISATION
10.8 MOVING LINES AND PULSE LINES ...................... 188 .................................................................. 288
10.9 ERGONOMICS................................................ 190 15.10 THE SCOR MODEL .......................................... 292
10.10 3P: PRODUCTION PREPARATION PROCESS .......... 191 15.11 MEASURING SUPPLY CHAIN PERFORMANCE......... 292
15.12 CREATING HIGH-PERFORMANCE SUPPLY CHAINS ... 292
11 SCHEDULING LINE PROCESSES ............................ 193
11.1 DIFFERENT PROCESSES REQUIRE DIFFERENT 16 ACCOUNTING AND MEASUREMENT .................... 295
APPROACHES TO SCHEDULING .......................... 193 16.1 LEAN ACCOUNTING ......................................... 295
11.2 GENERAL COMMENTS ABOUT SCHEDULING ......... 194 16.2 PERFORMANCE MEASURES ............................... 300
11.3 THE LEVEL SCHEDULE ..................................... 195 16.3 THE BASIC LEAN MEASURES ............................. 302
11.4 MASTER SCHEDULING AND FINAL ASSEMBLY 16.4 TARGET COSTING, KAIZEN COSTING AND COST DOWN
SCHEDULING ................................................ 196 .................................................................. 303
11.5 THE TEN VALUE STREAM SCHEDULING CONCEPTS .. 196
SALES AND OPERATIONS PLANNING (&)............................... 206 17 LEAN BEYOND THE FACTORY FLOOR ................... 307
11.6 KANBAN, PULL AND CONWIP ......................... 206 17.1 THE ROLE OF CONTEXT ..................................... 307
11.7 CELL OR LINE BALANCING ................................ 182 17.2 PRODUCT OR SERVICE? .................................... 307
11.8 APPLYING REPETITIVE SCHEDULING ................... 213 17.3 TYPES OF SERVICES ......................................... 308
17.4 A MANUFACTURING LOGIC FOR SERVICES? ........... 308
12 SCHEDULING BATCH PROCESSES ........................ 215 17.5 THE SEVEN SERVICE WASTES ............................ 309
12.1 KANBAN, DRUM BUFFER ROPE, AND CONWIP ... 215 17.6 PERFORMANCE AND WORKLOAD: PARKINSON’S LAW
12.2 BUFFERS: TYPES, SIZING, LOCATION .................. 216 AND SCARCITY ............................................... 310
12.3 THE BUILDING BLOCKS .................................... 217 17.7 LEAN HEALTHCARE.......................................... 313
12.4 SHARED RESOURCES ....................................... 219 17.8 LEAN FINANCIAL SERVICES ................................ 313
12.5 BATCH SIZING ............................................... 222 17.9 LEAN IT ........................................................ 314
12.6 THEORY OF CONSTRAINTS AND LEAN ................. 228 17.10 LEAN CONSTRUCTION ...................................... 315
12.7 CONSTRAINTS, BOTTLENECKS AND NON-BOTTLENECK 17.11 LEAN PROFESSIONAL SERVICES .......................... 315
RESOURCES: THE SYNCHRONOUS RULES ............ 228 17.12 LEAN IN THE PUBLIC SECTOR ............................. 315
12.8 THEORY OF CONSTRAINTS IMPROVEMENT CYCLE . 229 17.13 LEAN IN THE OFFICE ........................................ 316
12.9 CONFLICTS BETWEEN LEAN THINKING, TOC AND 17.14 LEAN START-UP ............................................. 317
FACTORY PHYSICS?........................................ 230
18 LEAN – HOW IT ALL CAME ABOUT....................... 318
13 QUALITY ............................................................ 233 18.1 LEAN BEFORE TOYOTA ..................................... 318
13.1 UNDERSTANDING CUSTOMER NEEDS: THE KANO 18.2 TOYOTA: THE BIRTHPLACE OF LEAN .................... 318
MODEL ....................................................... 233 18.3 WHY DO WE CALL IT ‘LEAN’? ............................ 320
13.2 A FRAMEWORK FOR LEAN QUALITY ................... 235 18.4 A LEAN CHRONOLOGY ..................................... 322
13.3 MISTAKES AND ERRORS................................... 235
13.4 VARIATION AND SIX SIGMA .............................. 240 19 FURTHER RESOURCES – WHERE TO GET HELP...... 326
13.5 COMPLEXITY ................................................. 245 19.1 COMPANION VOLUMES ................................... 326
19.2 CERTIFICATION ............................................... 326
14 LEAN PRODUCT DEVELOPMENT ......................... 247 19.3 RESEARCH CENTRES, RESEARCH PROGRAMMES AND
14.1 FOUR OBJECTIVES AND SIX TRADE-OFFS ............. 247 WEB RESOURCES ........................................... 326
14.2 LEAN IS DIFFERENT IN PRODUCT DEVELOPMENT .. 249
14.3 WASTES IN NEW PRODUCT DEVELOPMENT ......... 249 ABBREVIATIONS ............................................................ 327
14.4 SYSTEMS FOR NPD ........................................ 251 INDEX ............................................................................ 329
14.5 DESIGN THINKING .......................................... 254
v
THE LEAN JOURNEY │ 1
there for a purpose, not an end in themselves. emphasized that Lean is concerned with
Like Michelangelo chipping away all marble that enterprise not just with manufacturing. If you
was not David, so Lean tools are there to chip have already started on your Lean journey
away everything that does not enhance value for without involving design, marketing, accounting,
the customer. For a while, a pure tools approach HR, distribution, and field service, you will have
is not a bad thing. Like Michelangelo’s original to do so very soon or risk the whole programme.
marble block, a lot can be removed with little These functions have a vital role to play in
skill. Then came Lean through Principles – often answering what the organization will do with the
the 5 Lean Principles of Womack and Jones, or improved flexibility, times, and the rest. If the
principles of self-help, respect, responsibility answer is just ‘reduce costs’ management has
towards staff, customers and society. This is missed the point. But the Lean enterprise also
much better, and better still if systemically needs appropriate people policies, measures,
brought together. accounting, design and new product
But now some have begun to realise that ‘real’ introduction, supply chain activities, and service
Lean is behaviour-driven. What everyone does initiatives – perhaps ‘servitization’.
every day without being told. But how to get to David Cochrane makes an excellent point: Lean,
this state of nirvana? Behaviour is built through says he, is not what organizations need to do.
confidence and security. An example would be Lean is what organizations should become by
pulling the Andon chord when a problem occurs effective system design and implementation.
and doing this as a habit, in the confidence that One way of understanding Lean is to view it as a
this will be supported and expected. No ‘lip (proven) approach to dispense with increasingly
service’. And the habit of using an experimental inappropriate ‘economies of scale’ and to adopt
approach. Over time, with persistence, this builds ‘economies of time’. To conclude, take Ohno’s
the ‘world view’ – the things we take to be self- Method:
evident.
1. Mentally force yourself into tight spots.
The most important behaviour is that, at every
2. Think hard; systematically observe reality.
level, leaders are teachers – continually
reinforcing the correct usage of the principles 3. Generate ideas; find and implement simple,
and the tools. Not relying on a 10-day Lean ingenious, low cost solutions.
course, or a book, or intranet for their staff to 4. Derive personal pleasure from
learn the principles and tools – but by self- accomplishing Kaizen
demonstration and coaching every day.
In some ways the word ‘Lean’ is an unfortunate 1.3 The Double Diamond
one, because it has connotations of being The ‘Double Diamond’ is a useful concept that
manufacturing only (but by no means is confined has been used for decades in value engineering,
to it), as well ‘mean-ness’ or ‘cutting back’, design (British Design Council), culture change,
generally in terms of headcount. On the contrary, and service. A typical example is shown in the
Lean is about growth and opportunity. For figure.
example, Toyota has grown not cut back. They
Within each diamond various alternatives are
have grown because they have capitalized on the
generated, considered, and the appropriate
huge advantages that Lean brings. It is better to
solution selected. Widen out the possibilities,
grow into profitability rather than to shrink into
then narrow the focus. Never go blindly after one
profitability.
solution – and then sometimes find it is a bad
This leads to another important idea – that of solution and all the work has been wasted.
‘Lean Enterprise’. Womack and Jones have
THE LEAN JOURNEY │ 3
but often implementation is iterative. Several continuous change for the better. There is
successful implementations have begun with the teamwork and emphasis on working together.
Policy Deployment roof. Moreover, the house is And there is Gemba - the approach of hands-on,
strongly tools oriented, rather than system going to see oneself rather than management by
oriented. Where does the customer come in? remote control.
What happens if you are failing your customers The pillars are now continuous improvement and
due to poor delivery performance? How do you respect for people. These two go back to the
deliver value? Sustainability issues often result origins of Toyota in the 1930s to 1950s with
because employees misinterpret tools such as 5S Sakichi and Kachiro Toyoda. Perhaps they go
– seen as clean up but not extending to the back to a main source of their inspiration, Samuel
power of visual management. Another example Smiles’ Self Help. These two support the Toyota
is Andon – seen as just a signal instead of a big Way – that hard to capture set of principles that
change in responsibility for both operator and Jeffrey Liker as attempted to summarise. And
team leader. Management becomes finally, the roof – thinking people – the real root
disenchanted because there is no impact on the of sustained performance.
bottom line, and little on customer satisfaction –
The concept of enterprise is important.
for quite some time.
‘Enterprise’ means that Lean is not limited to
‘manufacturing’ or ‘operations’. A Lean mindset
1.8 The Lean Enterprise House is necessary for all functions – accounting, IT, HR,
Toyota and TPS continue to evolve. Toyota, like marketing, sales, purchasing, distribution, and of
many others, have recognised the limitations of course design and development. And not just
too much emphasis on tools. They now use a waste, but value.
Lean Enterprise house that differs from the Appropriately some have begun to say that TPS
‘tools’ house. The enterprise house is a wider stands for Thinking People System, rather than
view and emphasizes philosophy and approach. Toyota Production System.
The ‘whats’, not the ‘hows’. The Toyota Similarly with customers. There are today’s
Production System may be a house of tools, but customers and tomorrow’s customers. And
the Toyota Enterprise system is far more broad. today’s customers come in different categories –
those that are very valuable, an intermediate set,
and a third set that are just not worth having.
Possibly your products or services are
inappropriately focused. So waste and value may
be perceived differently depending on the
customer group. A pensioner may be loyal
because extra time and attention is taken, but for
a businessman extra time could be waste.
Scott Adams, in the stimulating book, Good
Products Bad Products, gives dimensions against
which a product will be judged by customers as
Performance and Cost, Human fit and
ergonomics, Craftsmanship, Emotional appeal,
Elegance and sophistication, Symbolism and
cultural values, and concern for the environment.
The foundation is the ongoing challenge of Adams makes the point that it is well nigh
continually adapting to the needs of customers, impossible to score highly on most of these
employees, and environment. There is kaizen or factors, and that different customers will have
6 │ THE LEAN JOURNEY
through lenses that look at stability, trend/level, “Results” are assessed in terms of stability, trend,
alignment and improvement. alignment, and improvement.
The scoring system is based on a 1,000 point These categories – behaviours and results – are a
scale. The points are then divided between the valuable thinking framework for Lean
two categories (800 points for Behaviours and transformation even without knowing the detail.
200 points for Results). The elements of the Perhaps the greatest advantage of the Shingo
categories are weighted and then awarded Prize model is that it is a comprehensive and
points based on importance to the operational proven assessment method. (Other assessment
excellence model. models will be discussed in a later section.)
“Behaviours” are assessed on three levels – Arguably this may be the best way into Lean or to
leaders, managers, an associate - in terms of make further progress with Lean. As such it helps
their role. Other aspects of behaviour are prevent ‘pet projects’, ‘quick fixes’ and other sub-
frequency, duration, intensity, and scope. optimisations.
Finally, the Shingo Prize
framework should not be
thought of as a checklist
or ‘tickbox’, but rather as
prompting an integrated
set of questions that
should be asked.
1.10 The Hierarchical Transformation presented on three levels. The steps in Level 1 are
Framework the broad, general, early steps. The steps in Level
All too often Lean implementations have begun by 1 are then expanded upon in Level 2, and in some
collecting up a team and then immediately cases the Level 2 steps are further expanded on in
drawing up a current state value stream map Level 3. The corresponding tools discussed in this
followed by kaizen bursts based on the ideas of book are given in Levels 2 and 3. In each level or
the team. This is almost invariably a bad idea. sub-level the steps should be regarded as a set
While simple, it has been found too simplistic in rather than a strict sequence.
practice to guide you to the right improvements.
It is far better to stand back, understand Level 1: Gaining the Big Picture
customers, products and demand, review the At Level 1, the key objective is to set the scene for
‘system conditions’ such as KPI’s and the costing leading any Lean Transformation. This level is
system that drive behaviour, assess the skills and concerned with doing the right things. Lower
culture and then take actions that may or may not levels are concerned with doing things right. Doing
initially include value stream mapping. the right thing requires gaining an appreciation of
This chapter sets out a general framework for the many aspects that could be involved in both
Lean implementation. However, it is not intended the short term and the long term. Prioritisation
to be generally prescriptive. That would be will depend on circumstance, but understanding
presumptuous! Any framework will need local the Principles will apply in all cases. An
adaptation. There are overlaps with both the appropriate Strategy will always be required.
frameworks discussed earlier. A manager may Some quick wins may be possible, but sooner of
decide to adapt (say) the Shingo framework but later any Lean transformation needs to bring
rely on sections of the Transformation Framework together people, customers, money as well as
for the detail. Any framework for Lean must by its operations.
nature be iterative, adopting an experimental By the end, you should be familiar with the range
approach – trying, succeeding, failing, retrying, of topics that are needed for Transformation and
learning. have a ‘systems view’ of their interdependencies.
The Transformation Framework is intended to be The relevant book sections are Chapters 1 and 2,
hierarchical and iterative. The hierarchy is Sections 4.1, to 4.3; 5.1 to 5.3; 7.1 to 7.2. (You also
may want to read up on
the history of Lean in
Chapter 18.)
Level 2: Driving a
sustainable
transformation
At Level 2, the key
objective is
concerned with
‘doing things right’.
This Level gets into
the detail of the
‘whats’ and ‘hows’ to
achieve sustained
Transformation. By
THE LEAN JOURNEY │ 9
the end, you should be familiar with substantial Level 2.4: ‘Check’, map and develop the Future
detail of many of the tools and systems of Lean. State
This stage falls into many subcategories, which do Here, the main purpose is to develop expertise
not necessarily have to be addressed in sequence. with the vital mapping tools that are an essential
Iteration is likely. feature for any Transformation.
By the end, you should be familiar with a range of
Level 2.1: Understanding the principles mapping tools and how they may be integrated
effectively to transform a current state into a
At first, understand the principles that form the
future state.
basis of Lean. These are fundamental to all
activities, regardless of the firm’s context and Most relevant here is Chapter 9.
stage of the implementation. Chapters 2, 3 and 4
are relevant here. Level 2.5: Product rationalization and Lean
Design
Level 2.2: Understand the customers and the At this stage the main purpose is to achieve
nature of demand effective product design and rationalization so
Here, the main purpose is to provide the relevant that the right products are introduced effectively.
tools and systems for analysing and managing By the end, you should be familiar with concepts
demand. that relate to pre-manufacture. Design
By the end, you should be familiar with both methodologies that both reduce development
segmenting demand so as to gain maximum time and ensure quality products are discussed.
advantage from various demand patterns and The essential tradeoffs in product design and
with influencing demand to that demand variation rationalization are presented.
can be limited to what customers actually require See Chapters 13 and 14.
rather than by variation caused by the
organisation itself.
Level 2.6: Implement the Foundation Stones
Relevant sections are: Chapter 8.1. and 8.2.,
The Lean foundation stones are applicable in all
Chapter 13, and 11.1 and 11.2.
situations. Whilst they do not have to be fully or
even partly implemented at an early stage, a weak
Level 2.3: Strategy, planning, communication foundation leads to a weak and non-sustaining
Here, the main purpose is to identify those general implementation.
products and processes that will have the greatest The foundation stones are 5S in Chapter 8.7.,
impact on a Lean Transformation, and to develop Standard Work in Chapter 8.9., and the
and deploy strategy and tactics so that everyone is improvement cycles in Chapter 4.3.
empowered to take actions appropriate to their
level or function.
Level 2.7: The Value Stream Implementation
By the end, you should be familiar with the Cycle
formulation of strategy for Lean and the concepts
Value Stream implementation is a central, ongoing
of how best to deploy strategy and policy.
activity within a Lean enterprise. The main steps
Relevant books sections are: Chapters 5 and 6 and are given in Chapter 9.4., and some steps are
most importantly, Chapter 7. detailed further in Level 3.
10 │ THE LEAN JOURNEY
Level 2.11: Costing and Performance Measures Level 3.2: Cell and Line Deign
‘What you get is what you measure’ – so here the Cells and assembly lines are found in many Lean
main purpose is to appreciate the vital role that manufacturing environments. In this section,
accounting, costing, and measurement plays in guidance is given on how best to approach key
any Lean Transformation. points and issues in the design of these elements.
By the end, you should be familiar with the risks of See Chapter 11.7.
not involving the accounting function, the
distortions of costing systems, and better ways to
incorporate ‘the financials’ in a Lean
THE LEAN JOURNEY │ 11
Traditional Consultant
Leadership Systems Factory Physics Audit
Lean Blueprint
Toyota as Shingo
Approach Leadership Systems view Flow Blueprint
exemplar prize
Waste, A3 Evaluating
i/d failure Variation,
Early step (2) Events, A3 i/d priority keys change
Capability demand CONWIP
capability
Downplay;
Early; Classic Early; classic
Mapping Quite early Outline only; Quite early Later
VSM VSM
dirty data
5S part of
5S and std 5S, std work No 5S; no /
Early Later Early ‘demonstrating
work early; takt time little std work
change’
Tools Used Used Emerge Used Used Used
Expand to
Change
Concerns s/chain; extend Suppliers Intervention Software Suppliers
management
to enterprise
Blueprint
Automotive / Call centre /
Limitations/ approach
Toyota applies Scheduling ‘break – fix’ Math Scheduling
Weaknesses applied
everywhere Dominate
everywhere
Notes 1 2 3 4 5 6
Notes on table:
1. Womack and Jones are authors not
consultants or active implementers. Strongly
champion Toyota. The ‘House of Lean’ may
be one model that is used. Womack and
Jones also proposed the ‘Purpose, People,
Process’ trilogy.
2. Liker and Convis have written on Lean
Leadership. Koenigsaecker is an author and
also a CEO who has ‘done it’. Rother,
through ‘Kata’, sees learning cycles as the
way forward.
3. This is an attempt to capture the Vanguard
methodology. John Seddon is a leading
figure and author on Service, with emphasis
on systems. Recently ‘Ohno and Deming had
it right’ but many don't.
4. Goldratt’s Theory of Constraints (TOC) is
morphing into Factory Physics.
5. There are several Audit approaches.
Kobayashi’s 20 Keys is probably the original.
Often attractive to top managers who like a
simple score, but a danger is that tick box
develops. Shingo prize has emerged as the
big one.
6. Several large consultancies use a fairly
standardised Lean roll-out procedure,
beginning with top level contact.
The Lean Toolbox: A handbook for lean transformation
(5th edition, 2016)
is available from Amazon.com and Amazon.co.uk.
Swedish:
Ny verktygslåda för Lean-Filosofi, transformation, metoder och
verktyg,
Göteborg: Revere (with J Hillberg) ISBN: 9789163195488
Danish:
Lean værktøjskassen, LeanTeam.dk, ISBN: 9788799031641
Chinese:
Mechanical Industry Press, ISBN: 9787111531722