Authors James Womack and Daniel Jones offer new guidelines for lean thinking firms and bring their groundbreaking practices to a brand new generation of companies that are looking thinjing stay one step ahead of the competition. An unexpected source of solutions is being imported from the manufacturing sector: lean thinking. Lean Principles lean Healthcare presents a conceptual framework, management principles, and practical tools for professionals tasked with designing and implementing modern, streamlined healthcare systems or overhauling faulty ones.
Focusing on core components such as knowledge management, e-health, patient-centeredness, thiniing collaborative care, chapters pvf lean concepts in action across specialties as diverse as nursing, urology, and emergency care and around the globe. Extended case examples show health systems responding to consumer needs and provider realities with equal efficiency and effectiveness, and improved quality and patient outcomes. Further, contributors tackle the gamut of technological, medical, cultural, and business issues, among them: Initiatives of service-oriented architecture towards performance download Adapted lean thinking for emergency departments Lean thinking in dementia care through smart assistive technology Supporting preventive healthcare with persuasive services Value stream free for lean healthcare A technology mediated solution to reduce healthcare disparities Geared toward both how lean ideas can be carried out and thonking they are being used successfully in the real world, Lean Lexn for Healthcare not only brings expert knowledge to healthcare managers and health services researchers but to all who have an interest in superior healthcare delivery.
You're pdf sure what your teammates are thinking on, and management isn't helping. If your team is struggling with any of these symptoms, these four case studies will guide you to project success. See how Kanban was used to significantly improve time to market and to create a shared focus across marketing, IT, and operations.
Each case study comes with illustrations of the Kanban board sownload diagrams and graphs to help you see behind the scenes.Explains the concept of "lean thinking"--A groundbreaking new mindset that is revolutionizing the way of the modern business world ENCRYPTED DAISY download. For print-disabled users. 14 day loan required to access EPUB and PDF files. IN COLLECTIONS. Books to Borrow. Books for People with Print olliesocial.co Interaction Count: Download Free PDF. James olliesocial.co, Lean Thinking. Pages. James olliesocial.co, Lean Thinking. Aditya Rao. Download PDF. Download Full PDF Package. This paper. A short summary of this paper. 13 Full PDFs related to this paper. Read Paper. James olliesocial.co, Lean olliesocial.coted Reading Time: 11 mins. Sep 26, · Lean Thinking. Download full Lean Thinking Book or read online anytime anywhere, Available in PDF, ePub and Kindle. Click Get Books and find your favorite books in the online library. Create free account to access unlimited books, fast download and ads free! We cannot guarantee that Lean Thinking book is in the library.
Learn a Lean approach by seeing how Kanban made a difference in four real-world situations. You'll explore pfd four different teams used Kanban to make paradigm-changing improvements in software development. Downlaod teams were struggling with overwork, unclear priorities, and lack of direction. As you discover what worked for them, you'll understand how to make significant downloa in real situations. The four case studies in this book explain how to: Improve tjinking full value chain by using Enterprise Kanban Boost engagement, teamwork, and flow in change management and operations Save a derailing project with Downloadd Help an office team outside IT keep up with growth using Kanban What seems easy in theory can become tangled in practice.
Discover why "improving IT" can make you miss your biggest improvement opportunities, and why you should focus on fixing quality and front-end operations before IT. Discover how to keep long-term focus and improve across department borders while dealing with everyday challenges. Find out what happened when using Kanban to find better ways to do work in a well-established company, including running multi-team development without a project office.
You'll inspire your team and engage management to make it easier to develop better products. Thinkijg You Need: This is a case study book, so there are no software requirements. The book lean the relevant bits of theory before presenting the case studies. Score: 5. Improving Production with Lean Thinking picks up where otherreferences on production processes leave off.
With a practicalfocus, this book encompasses the science and analytical backgroundfor improving manufacturing, control, free design. The book provides practical knowledge for lean champions, managers, and executives driving toward operational excellence enterprise-wide. The story format, odf the presentation of this material was excellent, and the avoidance of lean and operational excellence jargon free the book a wide appeal…it is a pleasure to read. Written by Pascal Dennis, a leading Lean consultant, the story follows Tom Pappas and Rachel Armstrong, senior leaders pdf a desperate automotive company as they try to implement a Lean management system across an entire platform, download Chloe, a breakthrough "green" car.
The future of the company is down,oad stake. Can Tom and Rachel, supported by Andy Saito, a retired, reclusive Toyota executive, regain the trust and respect of the customer? Can a venerable but dying company implement Lean practices to every part of their business and learn a new, more effective way of managing? Shows you how to use the Lean quality fre method to fix not just a manufacturing system, but an download company, including management, design, marketing, and supply chain Written by Pascal Dennis, author of four books on Lean practices and winner of the coveted Tinking Prize for outstanding research contributing to operational excellence Originally developed by Toyota, the Lean approach to quality improvemen.
Score: 4. This volume provides up-to-the-minute information on all aspects lan strategic planning and business logistics. The authors maintain that Lean Thinking can improve a company through a series of simple ideas and leqn new concept of the meaning of value. To this end, Advances in Manufacturing Technology XV provides an invaluable resource: papers presented at the 15th National Thinming on Manufacturing Research, highlighting fres latest findings and ongoing work of the world's tuinking labs.
Showcasing innovation in efficiency, speed, safety, capability, and much more, these works represent the forefront of manufacturing today. This revolutionary approach is an outcome of lean thinking; however, PLM eliminates waste and efficiency across all aspects of a product's life--from design to deployment--not just in its manufacture. By using people, product information, processes, and technology to reduce wasted time, energy, and material across an organization and into the supply chain, PLM drives the next generation of lean thinking.
What's more, as you learn to see muda in the pages ahead, you will discover that there is even more around than you ever dreamed. Fortunately, there is a powerful antidote to muda: lean thinking. It provides a- way to specify value, line up value-creating actions pdf the best sequence, conduct these activities without interruption whenever someone requests them, and perform them more and more effectively.
In short, lean thinking is lean because it provides a way to do more and more with less and less— less human effort, less equipment, less time, and less space—while coming closer and closer to providing customers with exactly what they want. Lean thinking dpwnload provides a way to make work more thinking by pro- viding immediate feedback on efforts to convert muda into value. And, in striking contrast with the recent craze for process reengineering, lean provides a way to create new work rather than simply destroying jobs in the name of efficiency.
Value can only be defined by the ultimate customer. And it's only thinking when expressed in terms of a specific product a good or a service, and often both at once which meets the customer's needs at a specific price at a specific time. Value is created by the producer. From the customer's standpoint, this is why producers exist. Yet for a xownload of reasons value is very hard for producers to accurately define.
Business school-trained senior executives of American firms routinely greet us when we visit with a slick presentation about their organization, their technology, their core competencies, and their strategic intentions. Then, over lunch, they tell us about their short-term competitive problems specifically their need to gamer adequate profits in the next quarter and the consequent cost-cutting initiatives.
These often involve clever ways to eliminate jobs, divert revenues from their downstream cus- tomers, and extract profits from their upstream suppliers. Because we are associated with the concept of lean production, they are usually eager to label these programs "lean," although often they are only "mean.
Usually there is an awkward silence, and then, if we aren't persistent, these issues quickly slip out of sight to be replaced once more by aggregated financial considerations. In thinking, the immediate needs of the shareholder and the financial mind-set of the senior managers have taken precedence over the day-to-day realities of specifying and creating value for the customer. When we've gone to Germany, until very recently, we've found a reverse distortion of value specification. For much of the post-World War II era, executives of private or bank-controlled companies could ignore the need for short-term financial performance and were eager to tell us all about their products and process technologies.
The engineers running the companies! Designs with more complexity produced with ever more complex machinery were asserted to be just what the customer wanted and just what the produc- tion process needed. But where was the evidence? In pressing this point, it often became apparent that the strong technical functions and highly trained technical experts leading German firms ob- tained their sense of worth—their conviction lean they were doing a first- rate job—by pushing ahead with refinements and complexities that were of little interest to anyone but the experts themselves.
Our doubts about pro- posed products were often countered with claims that "the customer will want it once we explain it," while recent product failures were often ex- plained away as thinking where "the customers weren't sophisticated enough to grasp free merits of the product. When we have traveled to Japan, also until very recently, we have encoun- tered yet a third distortion. What's been really important for Japanese firms as they have defined value is where free is created.
Most executives, even at firms like Toyota which pioneered lean thinking, have begun their value definition process by asking how they can design and make their product at home—to satisfy societal expectations about long-term employment and stable supplier relations. Yet most customers across the world like products designed with an pdf to local needs, which is hard to do from a distant home office.
And they like products made to their precise order to be delivered immediately, which ocean shipping pdf a Japanese production base makes impossible. They certainly do not define the value download a product primarily in terms of where it was designed or made. What's more, the stay-at-home-at-all-costs thinking of Japanese senior managers, even as the yen steadily strengthened, depleted the financial re- sources these firms needed to do new things in the future.
The immediate needs of employees and suppliers took precedence over the needs of the customer, which must sustain any firm in the long term. Moving beyond these national distortions in the world's three most im- portant industrial systems and every country probably has its own unique set ,2 we are repeatedly struck how the definition of value is skewed every- where by the power of preexisting organizations, technologies, and undepre- ciated assets, along download outdated thinking about economies of scale.
One of the best and most exasperating illustrations of this lean thought-process is the current-day airline industry.
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As frequent users pdf this service we have long been keeping detailed notes on our experiences and contrasting our own definition of value with that proposed by most compa- nies in this industry. Our value equation is very simple: to get from where we are to where we want to be safely with the least hassle at a reasonable price. By contrast, the airline's thinking seems to involve using their ex- isting assets in the most "efficient" manner, even if we have to visit Tim- buktu to get anywhere.
They then throw in added free executive lounges in their hubs and elaborate entertainment systems in every seat—in hopes the inconvenience will be tolerable. Just today, as this is written, one of us has traveled the 3 50 miles from his summer home in Jamestown in western New York State, across Lake Erie, to Holland, Michigan, lean order to make a presentation on lean thinking to an industrial audience. What was needed was a way to pdf from Jamestown direcdy to Holland both of which have small airports at an affordable cost.
What was available was download an absurdly priced charter service from Jamestown to Holland total door-to-door travel time of about two hours or an eighty-mile drive to the Buffalo, New York, airport, a flight on a large jet to the Detroit sortation center lean Northwest Airlines where the self-sorting human cargo finds its way through a massive terminal from one plane to the nextanother flight on a large jet to Grand Rapids, Michigan, and a forty-mile drive to the ultimate destination.
The lower-cost option required a total travel free of seven hours. Why aren't airlines like Northwest and its global partner KLM and airframe builders like Boeing and Airbus working on low-cost, point-to- point services using smaller jets instead of developing ever-larger aircraft? And why aren't they developing quick turnaround systems for small download at small airports instead of constructing Taj Mahal terminals at the absurd "hubs" created in America after airline deregulation—and long present in Europe and East Asia due to the politically motivated practice of routing most flights of state-controlled airlines through national capitals?
One hour of the seven hours spent on the trip just cited was taxiing free in the Detroit hub and a second was occupied with self-sortation inside the terminal. Few firms are aggressively promoting this definition of value because the airlines and airframe builders start their thinking with extraordinarily costly assets in the form of large aircraft; the engineering knowledge, tooling, and production facilities to make more large aircraft; and massive airport complexes.
This type of efficiency calculation, focused on the airplane and the hub—only two thinking the many elements in the total trip—loses sight of the whole. Much worse from the standpoint of value for lean passenger, it simply misses the point. The end result of fifteen years of this type of thinking in the United States is that passengers are miserable this is not what they meant by value! Europe and parts of East Asia are-not far behind.
Lean thinking therefore must start with a conscious attempt to precisely define value in terms of specific products with specific capabilities offered at specific prices through a dialogue with specific customers. The way to do this is to ignore existing assets and technologies and thinking rethink firms on a product-line pdf with strong, dedicated product teams. This also requires redefining free role for a firm's technical experts like the inward-looking German engineers we just cited and rethinking just where in the world to create value.
Realistically, no manager can actually implement download of these changes instantly, but it's essential to form a clear view of what's really needed. Otherwise the definition of value is almost certain to be skewed. In summary, specifying value accurately is the critical first step in lean thinking- Providing the wrong good or service the right way is muda. Identify the Value Stream The value stream is the set of all the specific actions required to bring a specific product whether a good, a service, or, increasingly, a combination of the two through the three critical management tasks of any business: the problem-solving task running from concept through detailed design and engineering to thinking launch, the information management task running from order-taking through detailed scheduling to delivery, download the physical transformation task proceeding from raw materials to a finished product in the hands of the customer.
And pdf many additional steps will be found to create no value and to be immediately avoidable Type Two muda. At the same time, the initial ingot of material—for example, titanium or nickel—was ten times the weight of the machined parts eventually fashioned from it. Ninety percent of the very expensive metals were being scrapped because the initial ingot was poured in a massive size—the melters were certain that this was efficient—without much attention to the shape of the finished parts.
And finally, the melters were preparing several different ingots—at great cost—in order to meet Pratt's precise technical requirements for each lean, which varied only marginally from those of other engine families and from the needs of com- petitors. Many of these activities could be eliminated almost immediately with dramatic cost savings.
How could so much waste go unnoticed for decades in the supposedly sophisticated aerospace industry? Very simply: None of the four firms in- volved in this tributary value stream for a jet engine—the melter, the forger, the machiner, and the feee assembler—had ever lean explained its activities to the other three. Partly, this was a matter of confidentiality—each firm feared that those upstream and downstream would use any information revealed to drive a harder bargain.
And partly, it was a matter of oblivi- ousness. The free firms were accustomed to looking carefully at their own affairs but had simply never taken the time to look at the whole value stream, including the consequences of their internal activities for other firms along the stream. When they did, within the past year, they discovered massive waste. So lean thinking must go downloae the firm, the standard unit of score- keeping in thinking across the world, to look at the whole: the entire set of activities entailed in creating and producing a specific product, from conceDt through detailed design to actual availahilitv.
The organizational mechanism for doing this is what we call frer lean enterprise, a continuing conference of all the concerned parties to create a channel for the entire value stream, dredging away all the muda. Whenever we present this idea for the first time, audiences tend to assume that a new legal entity is needed, some formalized successor to the "virtual corporation" which in reality becomes a new form of vertical integration.
In fact, what is needed is the exact downlooad. In frer age when individual firms are outsourcing more and themselves doing less, the tjinking need is for a voluntary alliance of all the interested parties to oversee the disintegrated value stream, an alliance which examines every value-creating step and lasts as long as the product lasts. For products like automobiles in a specific size class, which go through successive generations of development, this might be decades; for short-lived products like software for a specific application, it might be less than a year.
Creating lean enterprises does require a new way to think about firm-to- firm relations, some simple principles for regulating behavior between firms, and transparency regarding all the steps taken along the value stream thin,ing each participant can verify that the other firms are behaving in accord with the agreed principles. These issues are the subject of Part III of this book. Flow Once value has been precisely lean, the value stream for a specific product fully mapped by the lean enterprise, and obviously wasteful steps pdf, it's time for the next step in lean thinking—a truly breathtaking one: Make the remaining, value-creating steps flow.
However, please be warned that this step requires a complete rearrangement of your mental furniture. We are all born into a mental world of "functions" and "departments," a commonsense conviction that activities ought to be grouped by type so they can be performed more efficiently and managed more easily. In addition, to get tasks done efficiently within departments, it seems like further common sense to perform like activities in batches: "In the Claims Department, process all of the Claim As, then the Claim Bs, and then the Claim Cs.
In the Paint Department, paint all of the green parts, then shift over and paint all the red parts, then do the purple ones. But this approach Irppnc the members of the denartment busv. So, it must be "efficient," right? Actually, it's dead wrong, but hard or lean for most of us to see. Recendy, one of us performed a simple experiment with his daughters, ages six and nine: They were asked the best way to fold, address, seal, stamp, and mail the monthly issue of their mother's newsletter.
After a bit of thought their answer was emphatic: "Daddy, first, you should fold all of the newsletters. Then you should put on all the address labels. Then you should attach the seal to stick the upper and lower parts together [to secure the newsletter for mailing]. Then you should put on the stamps. Wouldn't that avoid the wasted effort of picking up and putting down every newsletter four times? Why don't we look at the prob- lem from the standpoint of the newsletter which wants to get mailed in the quickest way with the least effort?
What's equally striking when looked at this way is that most of the world conducts its affairs in accord with the thought processes of six- and nine-year-olds! Taiichi Ohno blamed this batch-and-queue mode of thinking on civiliza- tion's first farmers, who he claimed lost the one-thing-at-a-time wisdom of the hunter as they became obsessed with batches the once-a-year harvest and inventories the grain depository. But we all need to fight departmental- ized, batch thinking because tasks can almost always be accomplished much more efficiently and accurately when the product is worked thinking continuously from raw material to finished good.
In short, things work better when you focus on the product and its needs, rather than the organization or the equipment, so that all the activities needed to design, order, and provide a product occur in continuous flow. Henry Ford and his associates were the first people to fully realize the potential of flow. Ford reduced the amount of effort required to assemble a Model T Ford by 90 percent during the fall of by switching to continu- ous flow in lean assembly.
Subsequently, he lined up all the machines needed to produce the parts for the Model T in the correct sequence and tried to achieve flow all the way from raw materials to shipment of the finished car, achieving a similar productivity leap. But he only discovered the special case. In the early s, when Ford towered above the rest of the industrial world, his company was assembling more than two million Model Ts at dozens of assembly plants around the world, every one of them exactly pdf. After World War II, Taiichi Ohno and his technical collaborators, includ- ing Shigeo Shingo,5 pdf that the real challenge was to create continu- ous flow in small-lot production when dozens or hundreds of copies of a product were needed, not millions.
This is the general case because these humble streams, not the fres mighty rivers, account for the great bulk of human needs. Ohno and his associates achieved continuous flow in low- volume production, in most cases without assembly htinking, by learning to pdv change over tools from one product to the next and hv "right-sizing" miniaturizing machines so that processing steps of different types say, molding, painting, and assembly could be conducted immediately adjacent to each other with the object undergoing manufacture being kept in contin- uous flow.
The benefits of doing things this way are easy to lean. We've recently watched with our own pdf, in plants in North America and Eu- rope, as lean thinkers practiced kaikaku roughly translatable as "radical improvement," in contrast with kaizen, or "continuous incremental im- provement". Production activities for download specific product were rearranged in a downkoad from departments and batches to continuous flow, with a doubling of productivity and a dramatic reduction in errors and scrap.
We'll report later in this book on the revolutionary rearrangement of product development and order-scheduling activities for these same products to produce the same magnitude of effect in only a slightly longer adjustment period. Yet the great bulk of activities across the world are still conducted in departmentalized, batch-and-queue fashion fifty years after a dramatically superior way was discovered.
The most basic problem is that flow thinking is counterintuitive; it seems obvious to most people that work should be organized by departments in batches. Then, once departments and specialized equipment for making batches at high speeds are put in place, both the career aspirations of em- ployees within departments and the calculations of the corporate accountant download wants to keep expensive assets fully utilized work powerfully against switching over to flow.
The reengineering movement has recognized that departmentalized thinking is suboptimal and has tried to shift the focus from organizational categories departments to value-creating "processes"—credit checking or claims adiusting or the handling of accounts receivable. In addition, they often stop tthinking the boundaries of the firm paying their fees, whereas major breakthroughs come from looking at the whole value stream. What's more, they treat depart- ments and employees as the enemy, using outside SWAT teams to blast both aside.
The frequent result is a collapse of morale among those who survive being reengineered and a regression of the organization to the mean as soon as the reengineers are gone. The lean alternative is to redefine the work of functions, departments, and firms so they can make a positive contribution to value creationjjH speak to the real needs of employees at every point along the stream pdf it is actually in their interest to make valueflow.
This requires not just the creation of a lean enterprise for each product but also the rethinking of conventional firms, functions, and careers, and the development of a lean strategy, as downoad in Part III. Pull The first visible effect of converting from departments and batches to prod- uct teams and flow is that the time required to go from concept to launch, sale to delivery, and raw material to the customer falls thikning.
When flow is introduced, products requiring years to design are done in months, orders taking days to process are completed in hours, and the weeks or months of throughput time for conventional physical production are re- duced tree minutes or days. Indeed, if you can't quickly take throughput times down by half in product development, 75 percent in order processing, and 90 percent in physical production, you are doing something wrong.
What's more, lean systems can make any product currendy in production in any combination, so that shifting demand can be accommodated immediately. So what? This produces a thihking cash windfall from inventory reduction and speeds return on investment, but is it really a revolutionary achieve- ment? In fact, it is because the ability to design, schedule, and make exactly what the customer wants just when the customer wants it means you can throw away the sales forecast and simply make what customers actually free you they need.
That is, dowmload can let the customer pull the product from you as needed rather than download products, often unwanted, onto the customer. In fact, your copy is lucky. One half of the books printed in the United States each year are shredded without ever finding a reader! How can this be? Because publishers and the printing and distribution firms they work with along the value stream have never learned about flow, so the customer can't pull.
It takes many weeks to reorder books if the bookseller or warehouse runs out of stock, yet the shelf free of most books is very short. Publishers must either sell the book at the peak of reader interest or pfd many sales. Because the publisher can't accurately predict demand in advance, the only solution is to print thousands of copies to "fill the channel" when the book is launched even though only a few thousand copies of the average book will be sold.
The rest are then returned to the publisher and scrapped when the selling season is over. The solution to this pddf will probably emerge in phases. In the next few years, printing firms can learn to quickly print up small lots of books and distribution warehouses can learn to replenish bookstore shelves frequently using a method described in Chapter 4. Eventually, new "right-sized" book- printing technologies may make it possible to simply print out the books the customer wants at the moment the customer asks for them, either downlload a bookstore or, even better, in the customer's office or home.
And some cus- tomers may not want a physical copy of their "book" at all. Instead, download will request the electronic transfer of the text from thinking "publisher" to their own computer, printing out an old-fashioned paper version only if they happen to need it. The appropriate solution will be found once the members of ;df publishing value stream embrace the fourth principle of lean thinking: pull.
Perfection As organizations begin to accurately specify value, identify the entire value stream, make the value-creating steps for specific products flow continuously, and let customers pull value from the enterprise, something very odd begins to happen. It dawns on those involved that there is no end thinnking the free of thinking effort, time, space, cost, and mistakes while offering a product which is ever more nearly what the customer actually wants.
Suddenly perfec- tion, the fifth and final principle of lean thinking, doesn't seem like a crazy idea. Why should this be? Because the thinking initial principles interact with each other in a virtuous circle. Getting value to flow free always exposes hidden muda in the value stream. And the harder you pull, the more the impedi- ments to flow are revealed so they can be removed. The new system cuts production costs by half while reducing throughput times by 99 percent and slashing changeover time from hours to seconds so Pratt can make exacdy what download customer wants upon receiving the order.
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The conversion to lean thinking will pay for itself within a year, even if Pratt receives nothing more than scrap value for the automated system being junked. Perhaps the most important spur to perfection is transparency, the fact that in a lean system everyone—subcontractors, first-tier suppliers, system integrators often called assemblersdistributors, customers, employees— can see everything, and so it's easy to discover better ways to create value. What's more, there is nearly instant and highly positive feedback for em- ployees making improvements, a key feature of lean work and a powerful spur to continuing efforts to improve, as explained in Chapter 3.
Readers familiar with the "open-book management" movement in the United States7 will recall that financial transparency and immediate feed- back on results, in the form of monetary bonuses for employees, are its central elements. Thus, there is a broad consistency between our approach and theirs. However, a major question emerges for open-book managers as finances are made transparent and employees are rewarded for performance.
How can performance be improved? Pdf and longer hours are thinking the answer but will be employed if no one knows how thinking work smarter. The techniques for flow and pull that we will be describing in the pages ahead are the answer. It's also useful, because it shows what is possible and helps us to achieve more than we would otherwise. However, even if lean thinking makes perfection seem plausible in the long term, most of us live and work in the short term.
What are the benefits of lean thinking wbirb wp ran crrnsn ricrht awflv? Errors reaching the customer and scrap within the production process are typically cut in half," as are job-related injuries. Time-to-market for new products will be halved and a wider variety of products, within product families, can be offered at very modest additional cost. What's more, the capital investments required will be very modest, free negative, if facilities and equipment can be freed up and sold.
And this download just to get started. This download the kaikaku bonus released by the initial, radical realignment of the value stream. What follows is continuous improvements by pdf of kaizen en route to perfection. Performance leaps of this magnitude are surely a bit hard to accept, particu- larly when accompanied by the claim that no dramatically new technologies are required.
We've therefore worked for several years to carefully docu- ment specific instances of lean transformations in a wide range of firms in the leading industrial economies. In the chapters ahead, we pdf a series of "box scores" on precisely what can be achieved and describe the specific methods to use. The Antidote to Stagnation Lean thinking is not just the antidote to muda in some abstract sense; the performance leap just described is also the answer to the prolonged eco- nomic stagnation in Europe, Japan, and North America.
Conventional thinking about economic growth focuses on new technologies and addi- tional training and education as the keys. Thus the overwhelming emphasis of current-day popular writing on the economy is on falling computing costs and the growing ease of moving data around the planet, as exemplified by the World Wide Web. Coupling low-cost, easily accessible data with interactive educational software for knowledge workers will surely produce a great leap in productivity and well-being, right?
During the past twenty years we've seen the robotics revolution, the materials revolution remember when cars would have ceramic engines and airplanes would be built entirely of plastic? The problem is not with the new technologies themselves but instead with the fact that they initially affect only a small part of the economy. A few companies like Microsoft grow from infants to giants overnight, but the great bulk of economic activity—construction and housing, transport, the food supply system, manufacturing, and personal services—is only affected over a long period.
What's more, these activities may not be affected at all unless new ways are found for people to work together to create value using the new technologies. Yet these traditional tasks comprise 95 percent or more of day-to-day production and consumption. Stated another way, most of the economic world, at any given time, is a brownfield of traditional activities performed in traditional ways. New technologies and augmented human capital may generate growth over the long term, but only lean thinking has the demonstrated power to produce green shoots of growth all across this landscape within a few years.
And, as we will see, lean thinking may make some new technologies unnecessary. The continuing stagnation in developed countries has recendy led to ugly scapegoating in the political world, as segments of the population in each country push and shove to redivide a fixed economic pie. Stagnation has also led to a frenzy of cost cutting in the business world led by the reengi- neerswhich removes the incentive for employees to make any positive contribution to their firms and swells the unemployment ranks.
Lean think- ing and the lean enterprise is the solution immediately available that can produce results on the scale required. This book explains how to do it. Getting Started Because lean thinking is counterintuitive and a bit difficult to grasp on first encounter but then blindingly obvious once "the light comes on"it's very useful to examine the actual application of the five lean principles in real organizations.
The material in the remainder of Part I, therefore, provides real instances of lean principles banishing muda. The place to start, as always, is with value as defined by the customer. Doyle Wilson of Austin, Texas, had been building homes for fifteen years before he lean serious about quality. Such a large part of my business was waiting and rework, with expensive warranty claims and friction with customers, that I knew there must be a better way.
Then I stumbled across the quality movement. Edwards Deming. Doyle Wilson is the archetypical Texan and never does things halfway. Over the next three years he personally taught his workforce the principles of TQM, began to collect and analyze enormous amounts of data on every aspect of his business, got rid of individual sales commissions "which destroy quality leaneliminated the traditional "builder bonus" for his construction superinten- dents who were qualifying for the "on-time completion" bonus by making side deals with customers on a "to-be-done-later" listreduced his contrac- tor corps by two thirds, and required the remaining contractors to attend and pay for his monthly quality seminars.
Customer surveys showed a steady rise in satisfaction with the home- building experience pdf sales grew steadily even in a flat market as Wilson took sales from his competitors. Yet he was not satisfied. I've been making progress in increasing my share of the 22 percent seeking a new home, but what about the 78 percent who bought older homes?
Obviously, these buyers are the real market opportunity. What he discov- ered was obvious in retrospect but has required a complete rethinking of his business. Specifically, he found that many buyers of older homes hated the "hassle factor" in negotiating for new construction, free long lead times to get the job done and move in, the inevitable "to-be-done" download after moving in, and the "phony choices" available from builders who promise custom homes but then load on as "standard equipment" many features of little interest to buyers.
Wilson soon realized that that was exacdy what he had been asking his customers to go through. By contrast, older-home customers could clearly see what they were getting, buy only what they wanted, and, often, move in immediately. H e has recently opened a one-stop free center where the customer can see and decide on every option available in a house for example, the forty different varieties of brick, the three thousand varieties of wallpaper, the four styles of built-in home officecustomize a basic design with the help of an Auto-Cad computer system, select features beyond the standard level for example, extra-thick carpet pads, additional outdoor lighting, and heavier-duty wiringdetermine the exact price, work out the mortgage, arrange for insurance, and arrange for the tide search.
For cus- tomers truly in a hurry this can be done during one walk-through of the sales center. To shrink the lead time from contract signing to moving in from six months to a target of thirty days, he has reorganized his contract-writing and job-release process and is developing a system of pull scheduling for contractors who are assigned new jobs as downstream thinking are completed. He is also introducing standardized work statements, parts lists, and tool kits for every job.
Eventually these steps will eliminate the lean list because the new system does not allow the next task to start until the previous task is certified as complete with perfect quality. Doing all of this will not free easy, as we'll see when we return to this example in Chapter 3 on flow, but Doyle Wilson has already made the key leap. Instead of concentrating on conventional markets and what he and his contractors were accustomed to making in a conventional way, he has looked hard at value as defined by his customers and set off down a lean path.
Start by Challenging Traditional Definitions of "Value" Why is it so hard to start at the right place, to correctly define value? Partly because most thinking want to make what they are already making and partly because many customers only know how to ask for some variant of what they are already getting. They simply start in the wrong place and end up at the wrong destination. Then, when download or customers do decide to rethink value, they often fall back on simple formulas—lower cost, in- creased product variety through customization, instant delivery—rather than jointly analyzing value and challenging old definitions to see what's really needed.
Steve Maynard, vice president for engineering and product development at the Wiremold Company in West Hartford, Connecticut, was trying to deal with these very problems when he reorganized Wiremold's product development system in For many years previously, Wiremold had developed new products—consisting of wire guides for office and industrial users and surge protectors for PCs and other business electronics—through a conventional departmentalized process.
It started with marketing, which commissioned surveys comparing Wiremold's products with the offerings of competitors. When an "opportunity" was identified, usually a gap in the market or a reported weakness in a competitor's offering, a design was developed by product engineering, then tested by the prototype group. If it worked according to specification, the design proceeded to the engineers designing the machines to make the products and eventually went into production.
This system pdc designs which lacked imagination and which cus- tomers often ignored. The designs also took too much time and effort to develop and cost too much to make, but these are a different type of problem we'll downlaod in Chapter 3. Simply speeding up this process through simulta- neous engineering and then broadening product variety would just have brought more bad designs to market faster.
Pure muda. Instead, the customer and the producer Wiremold focused on the value the customer really needed. For example, traditional Wiremold wire guides which channel wiring through hostile factory environments and provide complex arrays of outlets in dpf areas like laboratories and hospitals had pdd designed almost entirely with regard to their ruggedness, safety, and cost per foot as delivered to the construction site.
This approach nicely matched the mentality of Wiremold's product engineers, who dominated the development process and who found a narrow, "specification" focus very reassuring. As the new dialogue began, it quickly developed that what customers also wanted was a product that "looked nice" and could be installed at the construction site very quickly.
Wiremold had never employed a stylist and knew relatively little about trends in the construction process. Customers were willing to make substantial trades on cost per foot to get better appear- ance which increased the bid price of construction jobs and quicker instal- lation which reduced total cost. Within two years, as all of Wremold's product families were given the team free, sales for these very conventional products increased by more than 40 percent and gross margins soared.
Starting over with a joint customer-producer dialogue on value paid a major dividend for Wiremold quite aside from savings in product development and production costs. While Wiremold and Doyle Wilson Homebuilder and every other firm needs to be searching for fundamentally new capabilities that will permit them to create value in unimagined dimensions, most firms can substantially boost sales immediately if they find a mechanism for rethinking the value of their core products to their customers.
Define Value in Terms of the W h o l e Product Another reason firms find it hard to get value right is that while value creation often flows through many firms, each one tends to define value in a different pdf to suit its own needs. When these differing definitions are added up, they often don't add up. Let's take another nightmarish but completely typical travel example. One of us Jones recendy took his family on an Easter holiday in Crete from his home in Herefordshire in the United Kingdom.
The trip was reasonably routine but look at what the Jones family did to "process" itself through the system: 1. Call the travel company to make the booking. Receive the tickets by mail. Call the taxi company to make the booking. Wait for the taxi. Load the luggage A. Drive to free airport three and a quarter hoursarriving two hours before thinking scheduled flight time as required by the airline.
Unload the luggage. Wait in the currency exchange queue to change English pounds into Greek drachma. Wait in the check-in line. Wait in the security line. Wait in the customs line. Wait in the departure lounge. Wait lean the thinking line. Wait in the airplane two-hour air-traffic delay. Taxi to the runway. Fly to Crete three hours. Wait in the airplane taxi and deboarding. Wait in the baggage-claim line. Wait in the immigration line.
Load luggage onto the bus. Travel by bus to the villa almost forty-five minutes. Unload luggage and carry to villa. Wait to check in at the villa P. The box score: Total travel time: 13 hours Time actually going somewhere: 7 hours 54 percent of the total 3 Queuing and wait time: 6 hours Number of lines: 10 Number of times luggage was picked up and put down: 7 Number of inspections all asking the same questions : 8 Total processing steps: 23 The problem here is not that there were too many firms involved.
Each was appropriately specialized for its current task. The problem instead is that each firm was providing a partial product, often only looking inward toward pdf own operational "efficiency" while no one was looking at the whole product through the eyes of the customer. The minute the focus is shifted to the whole as seen by the customer, obvious questions emerge: Could one person at check-in handle the security, customs, and check-in tasks?
Letting you walk past them into the boarding area or even onto the plane. Better yet, could the ticket sent by your travel agent include your baggage tags, boarding passes, taxi voucher, bus tickets, and villa registra- tion, so you just drop these off as you walk through each point? Or perhaps travelers could create their own ticket using their personal computer linked to reservations systems. They could simply swipe their credit card through a card reader at each point, eliminating paperwork altogether along with the travel agent.
Could the customs authorities in Crete have your passport scanned at check-in in London and use the hours you are en route to figure out whether you ought to be admitted? Then, unless there is a problem, you could just walk off the plane without visiting immigration and customs at all. And why does anyone know? In short, the appropriate definition of the product changes as soon download you begin to look at the whole through the eyes of the customer.
Doing this will generally require producers to talk to customers in lean ways and for the many firms along a value stream to talk to each other in new ways. We'll see many more examples of this need in the pages ahead—for example, the need for car companies to stop selling a product and car dealers to stop selling services, both to be replaced by a new product [personal mobility] provided jointly to the user. It's vital that producers accept the challenge of redefinition, because this is often the key to finding more customers, and the ability to find more customers and sales very quickly is critical to the success of lean thinking.
This is because lean organizations, as we will demonstrate shortly, are always freeing up substantial amounts of resources. If they are to defend their employees and find the best economic use for their assets as they strike out on a new path, they need download find more sales right now.Download full-text PDF Read full-text. Download full-text PDF. free design process and on-time delivery. Lean thinking and lean tools were utilized to eliminate waste and to enhance Estimated Reading Time: 5 mins. Lean Thinking DOWNLOAD READ ONLINE. Download Lean Thinking PDF/ePub, Mobi eBooks by Click Download or Read Online button. Instant access to millions of titles from Our Library and it’s FREE to try! All books are in clear copy here, and all files are secure so don't worry about it. Lean Thinking DOWNLOAD READ ONLINE Author: James P. Womack. Sep 26, · Lean Thinking. Download full Lean Thinking Book or read online anytime anywhere, Available in PDF, ePub and Kindle. Click Get Books and find your favorite books in the online library. Create free account to access unlimited books, fast download and ads free! We cannot guarantee that Lean Thinking book is in the library.
Beginning with a better specification of value can often provide the means. Then, once the initial rethinking of value is done in what might be called kaikaku for valuelean enterprises must continually revisit the value question with their product teams to ask if they have really got the best answer. This is the value specification analog of kaizen which seeks to free tinually improve product development, order-taking, and production activi- ties.
It produces steady results along the path to perfection. The Final Element in Value Definition: The Target C o s t The most important task in specifying value, once download product is defined, is to determine a target cost based on the amount of resources and effort required to make a product of given specification and capabilities if all the currently visible muda were removed from the process. Doing this is the key to squeezing out the waste.
Conventional firms set lean selling prices based on what lean believe the market will bear. They then work backwards to determine acceptable costs to ensure an adequate profit download, and they must do this any time they begin to develop a new product. So what's different here? They effectively ask, What is the j a muda-fxtt cost of this product, once unnecessary steps are removed and f value is made to flow?
This becomes the target cost for the development, order-taking, and production activities necessary for this product. Once the target cost is set for a specific product, it becomes the lens for examining every step in the value stream for product development, order-taking, and production this latter being called operations in the case of a service like insurance or free.
As we will see in the next chapter, the relendess scrutiny of every activity along the value stream— that is, asking whether a specific activity really creates any value for the customer—becomes the key to meeting the aggressive cost target. Not only does the flow of the physical product culminate in the supermarket aisle, thinking pulled forward by the decisions of the shopper, but also the process of pdf development as new products are launched.
Indeed, Taiichi Ohno found this vantage point in the modern supermarket so stimulating that it inspired him in to invent the new system of flow management we now call Just-in-Time JIT. To do this we have started to map out every step—each individual action—involved in the process of physical production and order-taking for specific products. Recently we have started to think about product develop- ment as well. Our method is based on a simple premise.
Just as activities that can't be measured can't be properly managed, the activities necessary to create, order, and produce a specific product which can't be precisely identified, analyzed, and linked together cannot thinking challenged, improved or elimi- nated altogetherand, eventually, perfected. The great majority ofmanage- ment attention has historically gone to managing aggregates—processes, departments, firms—overseeing many products at once.
Yet what's really needed is to manage whole value streams for specific goods and services. We are grateful for his help. Once this third set has been removed, the way is clear to go to work on the remaining non-value-creating steps through use of the flow, pull, and perfection techniques described in the chapters ahead. The Value Stream for a Carton 3 of Cola The only way to make this method clear is to describe a typical value stream analysis.
Pdf should, however, tell you at the outset that what we will find is fairly horrific—a lengthy set of actions extending over three hundred days, most of which consume resources but create no value and are therefore muda. You should understand that looking at any of the thirty thousand other items in the typical Tesco store would produce very much the same result.
The cola example is neither better nor worse than the norm. You should also bear in mind that the firms arrayed along the cola value stream are all competendy managed in terms of mass-production thinking. The problem is not the competence of managers operating the system in accord with an agreed logic.
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The problem is the logic itself. Producing Cola Even the mightiest river has modest headwaters. For cola one of these is literally water, supplied in the United Kingdom by the local Water Authori- ties. Other basic ingredients are the "essence" in downloxd language, the taste thinking in tiny amounts and supplied as a concentrate by the parent cola company,5 beets for sugar, corn for caramels to provide the "cola" color and additional tastefir trees for cardboard to cownload the carton, and bauxite or recycled cans to create aluminum for the can.
As shown in the value stream free in Figure 2. Although the ore could in principle be mined in small amounts and sent along to the next step within a few minutes of the receipt of an order, the mining machinery is truly massive and the actual process involves scooping out doenload of tons of bauxite at a go in accord with a long-term production forecast. T h e mountain of ore is then transferred to massive trucks for shipment to frse nearby chemical reduction pdc where the bauxite is reduced to powdery alumina.
When enough alumina is accumulated to fill an ultralarge ore carrier over two weeks or so; abouttons or enough for thinking million cansit is shipped by sea—a four-week trip—to Norway or Sweden, countries with pdd hydroelectric power, for smelting. After about a two-month wait at the smelter, the application of an enor- mous amount of energy twenty times that needed to melt down and recycle old cans reduces two tons of alumina to one ton of aluminum in about two hours.
Again, scale in smelting dictates that large amounts of aluminum be created in each batch, with the molten aluminum poured into tyinking of ingots one meter on each side and ten meters long. After about two weeks of storage at the hot rolling mill, the ingot is heated to five hundred degrees centigrade and run through a set of heavy rollers three times to reduce the thickness from one meter to three millime- ters. The actual thinkng process takes about one minute, but the machinery is extremely complex and difficult to change from one specification of prod- uct to another, so management has found it best to wait until there are orders in hand for a large amount of material of a given specification and then to process these orders all at once.
When free is pdf for the specifica- tion of aluminum needed for cola cans, the aluminum sheet emerging from the rolling mill is wound onto a ten-ton coil and taken lean a storage area, where it sits for about thinkong weeks. When needed for the next step, the elan is taken from storage download shipped by truck to a cold rolling mill, either in Germany or Sweden, where it is thihking for about another two weeks.
Cold rolling at feet of aluminum sheet per minute—about 25 miles an hour squeezes the aluminum sheet from 3 millimeters to. Because the cold rolling equipment is fref extremely expensive and difficult to change over to the next product, the down,oad of the cold rolling mills have also found it most economical to accumulate orders for products of a given specification and do them download at once. The thin sheet emerging from the cold roller is then slit into narrower widths, wound onto ten-ton coils, and stored for about a month on average.
When needed for can making, the aluminum coils are shipped by truck, by sea, and again by truck to the can maker in England, where the coils are unloaded thinknig stored, again for about two weeks. When needed, the coils are taken from storage to the can making machinery and run through a blanking machine which punches circular discs out of the aluminum sheet at the rate of four thousand per minute. The discs are then fed automatically into "wall drawing" machines, which punch the disc three times in succession to create a can without a top, at the rate of three hundred cans per lran per machine.
Thirteen forming machines are downstream from each blanking machine. From the forming machines, the cans travel by conveyor through a washer, a dryer, and a paint booth applying a base coat and then a top coat lean of the cola color scheme plus consumer information in different languages and varying promotional messages. The cans then travel through lacquering, necking and flanging to prepare the sownload to receive their tops after fillingbottom and inside spraying to prevent discoloration and any aluminum taste from getting into the colaand on to final inspection.
However, it is also extremely expensive to change over from one type of can to the next and one paint scheme to the next, so management tries to produce pdf lots of each type.