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Lean Business Systems

Sun, 14 May 2023 19:59:10 GMT

What is a Lean Business System?

Shigeo Shingo said, "Lean is a way of thinking, not a list of things to do." If so, why do many companies still see Lean Management as a Manufacturing improvement methodology? The number of companies exploring the opportunities coming with Lean Management outside of the Manufacturing space has been increasing since the early 2000s. Luckily. With their long-term success, companies like Toyota and Danaher proved the sustainability of thinking about Lean Management as a Business System.

Shigeo Shingo meant that Lean is not just a set of tools or techniques that you can simply apply to your business operations to make them more efficient. Instead, it's a holistic mindset that approaches problem-solving and continuous improvement. If we would try to translate the meaning of the quote, we could end up with the following definitions:

Definition 1 – "Way of thinking":

Lean is a mindset applicable everywhere
MUDA (Waste), MURA (Unevenness), and MURI (Overburden) is our enemy in every function and area of the company
Improvements are Lean Principle-based

Definition 2 – "List of things to do":

The number of kaizens drives our actions
The number of [place a color] Belts defines success
Productivity Savings value is the driving force behind actions
Improvements are Lean Tool-based

To truly embrace Lean, you must adopt a "lean thinking" mentality and constantly look for ways to eliminate waste, improve quality, and optimize processes. This requires a deep understanding of Lean principles and values, such as customer focus, value creation, continuous improvement, and respect for people.

In other words, Lean is not just a set of prescriptive instructions or best practices to follow; it's a way of looking at the world and solving problems systematically and collaboratively. It requires a commitment to ongoing learning and improvement and a willingness to challenge the status quo and think creatively about delivering value to customers.

But how is this mindset built as a Business System, and what are the core elements, if any? The most important thing is to understand whatever setup your Business System has, it must follow Lean Principles (for the description of the 14 Management Principles, follow this Link ). Typical targeted areas are:

Strategy Process
Strategy Planning Process
Strategy Deployment Process
Strategy Execution Process
People Development
Leadership Development
Talent Development
Coaching / Mentoring Program
Overall Business
Muda – Waste elimination
Mura – Unevenness elimination
Muri – Overburden elimination
Manufacturing
Safety Improvement
Quality Improvement
Delivery Improvement
Inventory Management
Growth
Innovation Process
Development Process
Commercial Delivery Process

I was told by a friend that they have done Lean for a while and are now over Lean and focusing on Innovation. My response was: how do you have "done" Lean, and what kind of Lean Management system was it without having a focus on Innovation? A clear Business System with transparent areas to focus on and tools to use helps the organization to understand what to do and how to do it effectively and efficiently.

14 Toyota Management Principles

Mon, 08 May 2023 20:06:51 GMT

It is about the Principles, not the Tools.

The Toyota Production System (TPS) is a renowned manufacturing methodology that Toyota has used for decades to optimize its operations and achieve exceptional results. The 14 Toyota Management Principles are central to the TPS, which provide a framework for achieving operational excellence, continuous improvement, and customer satisfaction.

These principles are grounded in the philosophy of Kaizen, which emphasizes the importance of continuous improvement and the pursuit of excellence in all aspects of the organization. Organizations worldwide have adopted the principles, not just in manufacturing but also in healthcare, service, and other industries.

The 14 Toyota Management Principles are a set of guiding principles that underpin the Toyota Production System. They provide a framework for achieving operational excellence, continuous improvement, and customer satisfaction. The principles are based on the philosophy of Kaizen, which emphasizes the importance of continuous improvement and the pursuit of excellence in all aspects of the organization.

Lean Management

Tue, 25 Apr 2023 19:27:33 GMT

How to Implement Lean Management in Your Company

Are you looking for ways to improve the efficiency and productivity of your business operations? If so, then implementing a lean management business system might be the solution you're looking for. In this blog post, we'll discuss the basics of lean management and provide tips on how to implement it in your company.

What is Lean Management?

Lean management is a business system that focuses on eliminating waste and improving efficiency. It was first introduced by Toyota in the 1950s and has since been adopted by companies around the world. The core principles of lean management are:

How to Implement Lean Management in Your Company

Identify the Value Stream: The first step in implementing lean management is to identify the value stream. This involves mapping out the entire process from start to finish, including all the steps involved in creating and delivering the product or service.

Eliminate Waste: Once you have identified the value stream, the next step is to eliminate waste. This involves identifying any steps that do not add value and removing them from the process.

Create Flow: The next step is to create a continuous flow of products or services. This means ensuring that the process is streamlined and that there are no delays or interruptions.

Use Pull System: The pull system is a key principle of lean management. It involves using customer demand to pull products or services through the value stream. This means that you only produce what the customer needs, when they need it.

Continuous Improvement: Finally, lean management involves continuous improvement. This means that you are always looking for ways to improve the process and eliminate waste. This could involve using data to identify areas for improvement, implementing new technologies, or training employees on new processes.

Benefits of Lean Management

Reduced waste: By eliminating unnecessary steps in the production process, lean business systems reduce waste, which leads to cost savings and more efficient operations.

Improved quality: Lean business systems encourage continuous improvement and the elimination of defects, resulting in higher quality products and services.

Increased flexibility: Lean business systems are designed to be adaptable to changing customer needs and market conditions.

Increased customer satisfaction: By focusing on meeting customer needs and expectations, lean business systems can improve customer satisfaction and loyalty.

Enhanced employee engagement: Lean business systems involve employees in the improvement process, which can increase their engagement and satisfaction.

In Conclusion

Implementing a lean management business system can help your company improve efficiency, reduce waste, and increase customer satisfaction. By following the principles of lean management and continuously improving the process, you can achieve greater success in your business operations. There are many famous companies that have successfully implemented lean management principles to improve their operations and gain a competitive advantage. Here are a few examples:

Toyota: Toyota is often considered the pioneer of lean management, having developed the Toyota Production System (TPS) in the 1950s. The TPS emphasizes continuous improvement, waste reduction, and a "pull" production system based on customer demand. Toyota has been able to achieve high levels of efficiency, quality, and customer satisfaction through the use of lean management.
Amazon: Amazon has used lean management principles to revolutionize the retail industry. The company has developed a highly efficient supply chain, with a focus on reducing waste, increasing efficiency, and improving customer service. Amazon's use of robotics and automation in its warehouses is a key part of its lean strategy.
Nike: Nike has implemented lean management principles in its manufacturing processes to improve efficiency, reduce costs, and improve quality. The company uses value stream mapping and other lean tools to identify areas for improvement and optimize its production processes.

The most important step is the willingness to start and to understand that failure is part of the process.

Value Stream Mapping

183:901879861 (Metin Begecarslan) — Sat, 15 Apr 2023 18:52:38 GMT

Why and how to do a Value Stream Mapping?

Value Stream Mapping (VSM) is a Lean Management tool used to visually map out the flow of materials, information, and processes that go into creating a product or providing a service. The purpose of VSM is to identify waste and inefficiencies in the ramp-to-ramp process and to create a plan to eliminate them. Ramp-to-ramp describes the beginning and the end of the process you want to analyze. Ideally, this is the entire process, from getting the order to shipping the product or delivering the service. The characteristic of a good Value Stream is to get one process to make what the following process needs when it needs it.

Advantages of Value Stream Mapping:

It helps to identify areas of waste: Value Stream Mapping helps to identify areas of waste in the process, including overproduction, excess inventory, waiting, defects, and excess motion. Once identified, these areas can be targeted for improvement or eliminated entirely.

It helps to improve efficiency: By identifying areas of waste, Value Stream Mapping helps to improve efficiency by streamlining the entire process and creating a common language. This can lead to reduced lead times, increased throughput, and lower costs.

It provides a clear picture of the ramp-to-ramp process: VSM provides a clear and concise visual representation of the entire process, including the flow of materials and information. The visualization makes it easier to identify bottlenecks and areas of waste.

It promotes collaboration: VSM involves input from all functions team members, which promotes collaboration and communication. As a result, this can lead to a better understanding of the entire process and a shared commitment to continuous improvement.

It is a qualitative tool by which you describe how your facility should operate to create flow. Numbers are good for creating a sense of urgency or before/after measures. Value-stream mapping is suitable for describing what you will do to affect those numbers.

How to do Value Stream Mapping:

Define the scope:

Determine the product or service to be mapped and the boundaries of the process to be mapped. The PQPR helps to select the right product family. A family is a group of products with similar processing steps and common manufacturing machines. The choice of product family is very important. It may not be necessary to map value streams for whole products. We should select the specific products that the customer is really interested in.

Create a current state map:

Create a visual representation of the current state of the process, including all materials, information, and activities involved in producing the product or providing the service.

Some mapping tips:

Always collect current state information by walking along the paths of material and information flows.

Start with a quick walk along the entire door-to-door value stream to get a feel for the flow and sequence of processes. After the quick walk, go back and gather information about each process.

Start at the shipping end and work upstream rather than starting at the receiving dock and working downstream. This way, you will start with the processes most directly linked to the customer, which should set the pace for other processes further upstream.

Bring your stopwatch, and do not rely on standard times or information you have not personally obtained. Numbers in a file rarely reflect current reality. File data may reflect times when everything was going well, such as the first three-minute die change this year or the first time since the plant opened that no expediting was required. Your ability to visualize a future state depends on personally going where the action is and understanding and timing what is happening. (Possible exceptions to this rule are data on machine uptime, scrap/rework rates, and changeover times).

Few examples of typical process data are C/T (Cycle Time), C/O (Changeover Time), Uptime (on-demand machine uptime), EPE (production batch sizes), Number of Operators, Number of Product Variations, Pack Size, Working Time (minus breaks), Scrap Rate.

Map the whole value stream yourself, even if several people are involved. Understanding the whole flow is what value stream mapping is all about. If different people map different segments, no one will understand the whole.

Always draw by hand in pencil. Start your rough sketch on the shop floor while you are doing your current state analysis, and clean it up later - again by hand and in pencil.

The definition of time measures used in Value Streams:

Analyze the current state map:

Analyze the current state map to identify areas of waste and inefficiencies.

Create a future state map:

Create a visual representation of the ideal state of the process, including all improvements that will be made to eliminate waste and inefficiencies. The following questions give a guideline and sequence on how to create a Future State Map:

What is the takt time?
Should the value stream build to a finished goods supermarket or directly to customer orders?
Where can one-piece flow be implemented?
What is the pacemaker process?
What supermarket pull systems will be used between disconnected processes?
How will the pacemaker schedule and withdraw production to create level volume and mix?
What are the Kaizen events, projects, and Lean Methods that are needed to implement the future state?
What is the priority sequence of the Kaizen events and projects?

Implement the improvements:

Implement the improvements identified in the future state map, and monitor the process to ensure that the improvements are effective. The following principles should guide lean measures for performance:

Principle 1: Measures should encourage desired front-line behavior.
Principle 2: Measures should provide information for senior management to make decisions.
Principle 3: Principle 1 overrides Principle 2.

Review and update the process:

Review the process periodically to ensure that it continues to be efficient and effective. Make updates as needed to ensure that the process remains optimized.

The ramp-to-ramp process could also be for selected internal processes. Value Stream Mapping can be applied to the production process and other departments within a company, including sales, marketing, finance, and other support functions. The basic steps of VSM remain the same across all departments, but the specific processes and value streams will vary depending on the department.

For example, in R&D , the value stream may include the flow of information from market research to product development to testing and validation.

The VSM for R&D will help identify areas of waste and inefficiency in the product development process, such as delays in information flow, unnecessary testing, or excessive rework.

The result can be faster time to market and increased product quality .

In the sales department, VSM can be used to map out the sales process from lead generation to closing the deal.

This can help identify areas of waste and inefficiency in the sales process, such as long lead times, too much paperwork, or redundant steps.

Once identified, improvements can be made to streamline the sales process, which can lead to faster deal closing times and increased revenue .

In the marketing department, VSM can be used to map out the process of creating and launching a marketing campaign.

This can help identify areas of waste and inefficiency, such as redundant tasks, unclear communication, or inefficient use of resources.

Once identified, improvements can be made to streamline the marketing process, which can lead to faster campaign launch times and more effective marketing efforts.

In the finance department, VSM can be used to map out the process of creating financial reports or managing cash flow.

This can help identify areas of waste and inefficiency, such as excessive paperwork or redundant steps.

Once identified, improvements can be made to streamline the finance process, which can lead to faster and more accurate financial reporting and improved cash flow management .

In other support functions , such as human resources or IT, VSM can be used to map out the process of hiring new employees or providing IT support.

This can help identify areas of waste and inefficiency, such as redundant tasks, excessive wait times, or unclear communication.

Once identified, improvements can be made to streamline these processes, which can lead to faster and more effective support for employees and improved overall efficiency for the company .

Overall, Value Stream Mapping can be applied to any process within a company to identify areas of waste and inefficiency, create a plan for continuous improvement, streamline processes, and improve overall efficiency and effectiveness. VSM can also help to promote collaboration and communication across all company departments, leading to a better understanding of the overall value stream and a shared commitment to continuous improvement.