The Lean Enterprise (Lean Thinking)

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The Lean EnterpriseThe Lean Enterprise(Lean Thinking)(Lean Thinking)

Carlo Carlo ScodanibbioScodanibbio presents:presents:

”” if it doesn't add value, it is wasteif it doesn't add value, it is waste””

a training event organised by:a training event organised by:

Lean Thinking is Lean Thinking is ““leanlean”” because it provides a way because it provides a way

to do more with less while coming closer to to do more with less while coming closer to

providing customers with exactly what they want.providing customers with exactly what they want.

questionquestionWhich is the primary objective of your Organisation?Which is the primary objective of your Organisation?

write it down on a piece of paper (1 minute)

(one and one only)(one and one only)

Key-Words: lean, manufacturing, power, point, presentation, value, waste, client, service, industry, perform, performance, world, class,

operations, adding, management, productive, process, flow, processing, production, 5S, creativity, people, method, kaizen, improvement, hr,

human, resources, strategy, strategies, tei, employee, involvement, responsibilities, course, carlo, scodanibbio, thinking, enterprise, stream, map,

mapping, spaghetti, diagram, 5why, 5w1h, communication, circle, tool, project, construction, planning, last, planner, ppc, toc, quality, total, poka,

yoke, poka-yoke, excellence, pull

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Airlines...Airlines...

THE STORYTHE STORY……

the fax!!the fax!!

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Banks...Banks...

Car Hire...Car Hire...

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5* Hotel...5* Hotel...

Customer Customer

Care...Care...

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LEAN THINKING: THE ORIGIN 1LEAN THINKING: THE ORIGIN 1Maybe you fish itMaybe you fish it……....

……maybe you farm itmaybe you farm it……....

LEAN THINKING: THE ORIGIN 1LEAN THINKING: THE ORIGIN 1

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……maybe you mine itmaybe you mine it……....


……maybe you breed itmaybe you breed it……....


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……maybe you mill itmaybe you mill it……....


……maybe you brew itmaybe you brew it……....


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……maybe you manufacture itmaybe you manufacture it……....


……maybe you construct itmaybe you construct it……....


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……maybe you simply sell itmaybe you simply sell it……....


or maybe you dance itor maybe you dance it……....


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You catch it, you farm it, You catch it, you farm it,

you mine it, you breed it, you mine it, you breed it,

you mill it, you brew it, you mill it, you brew it,

you manufacture it, you you manufacture it, you

construct it, you simply construct it, you simply

sell it or you dance itsell it or you dance it……

……no matter what you do no matter what you do -- you must generateyou must generate……..


VALUEVALUEfor your customersfor your customers

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Everyone that works in your organization is doing one of three tEveryone that works in your organization is doing one of three things:hings:

1. They are generating value for your customers 1. They are generating value for your customers -- oror

2. They are creating or reshuffling waste 2. They are creating or reshuffling waste –– oror

3. They are doing absolutely nothing3. They are doing absolutely nothing

The market leaders will always The market leaders will always

have the majority of their people have the majority of their people

dedicated to the first of thesededicated to the first of these

……in an office (or a bank, or a travel agent, orin an office (or a bank, or a travel agent, or…….) the floor .) the floor

cleaner may be adding more value than most employees..cleaner may be adding more value than most employees..

…….so, you would like your enterprise to be:.so, you would like your enterprise to be:

modernmodern

efficientefficient

financially soundfinancially sound……

really satisfying clients and employeesreally satisfying clients and employees……

guaranteed in its futureguaranteed in its future…………

productiveproductiveprofitableprofitable

????????

????????????

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…….so, you would like your enterprise to be: .so, you would like your enterprise to be:

Efficient Efficient –– Profitable Profitable –– Modern Modern ––

Productive Productive –– Financially sound Financially sound --

satisfying clients and employees satisfying clients and employees ––

Guaranteed in its future Guaranteed in its future ––

???? ???? -- ????? ????? -- ??????????????????????????

..in a nutshell: you would like your enterprise to..in a nutshell: you would like your enterprise to

performperform

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This is possible: it can be achievedThis is possible: it can be achieved……

…….it depends on you, .it depends on you,

entrepreneurs and managersentrepreneurs and managers……....

..it..it’’s just your choice..s just your choice..

But:But: there are 3 necessary stepsthere are 3 necessary steps……

….you would like your enterprise to be: Efficient – Profitable – Modern –

Productive – Financially sound – Capable of really satisfying clients and

employees – Guaranteed in its future – ???? - ????? - ?????????

THE 3 NECESSARY STEPSTHE 3 NECESSARY STEPS

1) Understand the environmental 1) Understand the environmental

change and manage itchange and manage it

2) Be prepared to abandon the 2) Be prepared to abandon the

““formulaformula””

3) Have a clear direction and tell 3) Have a clear direction and tell

people about itpeople about it……..

4) 4) …….and something more.and something more……....

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STEP 1)STEP 1)

Understand the environmental Understand the environmental


….the world has changed….

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COMPLEXITYCOMPLEXITY

clients are monstersclients are monsters……..

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STEP 2)STEP 2)

Be prepared to abandon the Be prepared to abandon the


the the ““formulaformula””::

the the ““CampariCampari”” syndromesyndrome

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the the ““formulaformula””The “secrets” of success

The do’s and don’ts

The “taboo” and “holy cows”

The “how to do things”

The areas of “influence”

The “who and what is to be respected”

The “institutionalised” values and principles

The rules

The policies

The procedures

The “descriptions” (jobs, tasks…..)

…………..

the the ““formulaformula””

EMPHASIS

On 3 key departments:

DESIGN/ENGINEERING

TECHNOLOGY/OPERATIONS

MARKETING/SALES

Emphasis on Structure, Organisation, Hierarchy,

Departments & “Compartments”

Emphasis on Control (the “Controller”…..)

Emphasis on Efficiency

Emphasis on Stability

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protect the protect the ““formulaformula””!!

The Formula must be protected, because it has

generated success for many years:

---- > resistance to change!> resistance to change!

Protection = Vertical ControlProtection = Vertical Control

preserve its integrity!preserve its integrity!

the GUARDIANSthe GUARDIANS’’ function:function:

Vetting/Approving amendments to the

formula or to its main parameters

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effects of the effects of the ““formulaformula””

Top and mid level managers, with time, get used to the

Formula, and learn how to stick to it.

At lower levels (supervisors, shop-floor workers),

unwritten, similar rules filter down and become

applied.

FlexibilityFlexibility

ReactivityReactivity

InnovationInnovation

little….. (or none)

The Enterprise becomes The Enterprise becomes ““closedclosed””

People become People become ““staticstatic””

the the ““formulaformula”” (after midnight(after midnight……))

If some indicators start showing signals of serious

inadequacy of the Formula all that may happen is a

“reshuffle” of the old status-quo:

CostCost--cutting exercisescutting exercises

Increase in efficiency of less Increase in efficiency of less

powerful department/areaspowerful department/areas

And/or: technological revampingAnd/or: technological revamping

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the obsession to change the obsession to change (the (the ““formulaformula”…”…))

The Formula is The Formula is ““blockedblocked””, and the whole , and the whole

Organisation is Organisation is slowslow and and ““reluctant to learnreluctant to learn””

If signals show very poor performance, If signals show very poor performance,

the need to restructure the Formula and to the need to restructure the Formula and to

change may become an obsessionchange may become an obsession

BUT:BUT: in the end things remain the same.....in the end things remain the same.....

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homework?homework?

..oh, yes!!!..oh, yes!!!spot the spot the ““formulaformula””

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STEP 3)STEP 3)

Have a clear direction in your Have a clear direction in your

mindmind…….. .. (and tell people about it(and tell people about it…….).)

the visionthe vision

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TELL YOUR PEOPLE ABOUT THE TELL YOUR PEOPLE ABOUT THE

““LEANLEAN”” DIRECTIONDIRECTIONBUT!! before doing so, some checkBUT!! before doing so, some check--points:points:

“…“…is everybody in your enterprise is everybody in your enterprise -- at at

top/middle level top/middle level -- convinced that people make convinced that people make

the difference between failure andthe difference between failure and success?success?””

“…“…is the vision shared at top/middle level?is the vision shared at top/middle level?””

“…“…is the is the ““integrationintegration”” concept clear and concept clear and

understood at top/middle level?understood at top/middle level?””

This is a “pass the Rubiconpass the Rubicon” situation

– there is no come back – it must go

right. So, make your checks “before”!

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worldworld--class, class,

““leanlean””

performanceperformanceperformance managementperformance management

1 1 -- MEASURE PERFORMANCEMEASURE PERFORMANCE

4 necessary steps4 necessary steps

3 3 -- SET PATH TO IMPROVEMENTSET PATH TO IMPROVEMENT

4 4 -- MAKE IT HAPPENMAKE IT HAPPEN

performance managementperformance management

2 2 –– IDENTIFY THE GAPIDENTIFY THE GAP

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HOW TO MEASURE HOW TO MEASURE

PERFORMANCEPERFORMANCE

Step 1Step 1

……..know where you stand!!!..know where you stand!!!

Step 1Step 1HOW TO MEASURE HOW TO MEASURE


……..know where you are!!!..know where you are!!!

Enterprise PerformanceEnterprise Performance

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(KEY PERFORMANCE COMPONENTS (KEY PERFORMANCE COMPONENTS –– KPC)KPC)examples

COMMERCIAL PERFORMANCECOMMERCIAL PERFORMANCEMarket penetration Market penetration –– Market share/expansionMarket share/expansion

Effectiveness of Marketing ActivitiesEffectiveness of Marketing Activities

Sales Force EffectivenessSales Force Effectiveness

Customer LoyaltyCustomer Loyalty

Rate of Acquisition of New CustomersRate of Acquisition of New Customers

Dealers/Wholesalers PerformanceDealers/Wholesalers Performance

Brand Identity LevelBrand Identity Level

Communication EffectivenessCommunication Effectiveness

Reputation Reputation –– ImageImage

THE MAIN COMPONENTS OF THE MAIN COMPONENTS OF

ENTERPRISEENTERPRISE’’S PERFORMANCES PERFORMANCE

Operational Efficiency (Labour, Machines, Materials, Indirect ArOperational Efficiency (Labour, Machines, Materials, Indirect Areas)eas)

Economical Efficiency (Labour, MaterialsEconomical Efficiency (Labour, Materials……..)..)

ProductivityProductivity

Quality of Product and ServiceQuality of Product and Service

Value AddedValue Added

Plant/Equipment PerformancePlant/Equipment Performance

Personnel PerformancePersonnel Performance



examples (KEY PERFORMANCE COMPONENTS (KEY PERFORMANCE COMPONENTS –– KPC)KPC)

OPERATIONAL PERFORMANCEOPERATIONAL PERFORMANCE

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TurnoverTurnover

ProfitabilityProfitability

Industrial Culture Level/ModernityIndustrial Culture Level/Modernity

Effectiveness of Change ManagementEffectiveness of Change Management



examples (KEY PERFORMANCE COMPONENTS (KEY PERFORMANCE COMPONENTS –– KPC)KPC)

ECONOMICAL PERFORMANCEECONOMICAL PERFORMANCE

CULTURAL PERFORMANCECULTURAL PERFORMANCE



(KEY PERFORMANCE COMPONENTS (KEY PERFORMANCE COMPONENTS –– KPC)KPC)

Rather than to Functions and Departments, Performance

Components should preferably be attached to ProcessesProcesses and subsub--

ProcessesProcesses

very im

portan

t!

very im

portan

t!

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Product Development Process Product Development Process –– ““AchievementAchievement”” factorfactor

AfterAfter--Sales Service Process Sales Service Process –– ““Speed of InterventionSpeed of Intervention”” factorfactor

Invoicing Process Invoicing Process –– ““CorrectnessCorrectness”” factorfactor

….and, for instance…

Goods Returned Management Process Goods Returned Management Process –– ““FunctionalityFunctionality”” factorfactor

examples (PROCESS PERFORMANCE INDICATORS)(PROCESS PERFORMANCE INDICATORS)



All significant Performance Components (KPC) should be

measured adequately

If feasible, significant and practical, a

Key Performance IndicatorKey Performance Indicator (KPIKPI) should be associated with a KPCKPC to

monitor it

(KEY PERFORMANCE COMPONENTS (KEY PERFORMANCE COMPONENTS –– KPC)KPC)



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MEASURING QUANTIFIABLE PERFORMANCE COMPONENTSMEASURING QUANTIFIABLE PERFORMANCE COMPONENTS

Certain Performance Components may be mathematically measured

MEASURING UNMEASURING UN--QUANTIFIABLE PERFORMANCE COMPONENTSQUANTIFIABLE PERFORMANCE COMPONENTS

Any (apparently) un-measurable Performance Component may actually be

measured with the aid of suitable

QuestionnairesQuestionnaires and Scoring MethodsScoring Methods

COMPANY CLIMATE QUESTIONNAIREPARAMETERSPARAMETERS

Company (internal) ImageCompany (internal) Image

relationships with Managementrelationships with Management

interinter--personal relationshipspersonal relationships

interest in own workinterest in own work

interinter--functional relationshipsfunctional relationships

work informationwork information

work flow and work flow and ““fluidityfluidity””

““physicalphysical”” work environmentwork environment

examples

MEASURING UNMEASURING UN--QUANTIFIABLE PERFORMANCE COMPONENTSQUANTIFIABLE PERFORMANCE COMPONENTS

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COMPANY CLIMATE QUESTIONNAIRE

Year 2007 Year 2008

INDEXING METHODSINDEXING METHODS

Indices Indices -- Indicators Indicators -- RatiosRatios

even possible to create an overall

Enterprise Performance IndexEnterprise Performance Index

possible to create an Index representing the overall behaviour of a number of Indices

useful on their own and even more when put in relationship the one to the other

useful to understand and to monitor Performance Components behaviour and trends

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SOME EXAMPLES OF COMMERCIAL INDICESSOME EXAMPLES OF COMMERCIAL INDICES

ImsIms = Market Share Index = 100 x Sales ($)/Overall Market Value ($)= Market Share Index = 100 x Sales ($)/Overall Market Value ($)

Inc = New Clients Index = 100 x number of new clients/total Inc = New Clients Index = 100 x number of new clients/total number of clientsnumber of clients

IlcIlc = Lost Clients Index = 100 x number of lost clients/total = Lost Clients Index = 100 x number of lost clients/total number of clientsnumber of clients

IciIci = Clients Increment Index = 100 x (number of year end clients = Clients Increment Index = 100 x (number of year end clients ––number of year start clients)/number of year start clientsnumber of year start clients)/number of year start clients

IascIasc = Average Sales per Client Index = sales (quantity or $)/total = Average Sales per Client Index = sales (quantity or $)/total number of clientnumber of client

IcpcIcpc = Commercialisation of Productive Capacity Index = 100 x sales = Commercialisation of Productive Capacity Index = 100 x sales (quantity)/productive capacity (quantity)(quantity)/productive capacity (quantity)

SOME EXAMPLES OF OTHER INDICESSOME EXAMPLES OF OTHER INDICES

IsrIsr = Stock Rotation Index = sales (at cost)/average stock (at cost= Stock Rotation Index = sales (at cost)/average stock (at cost))

IseIse = Sales per Employee Index = total sales (turnover)/total numbe= Sales per Employee Index = total sales (turnover)/total number of r of employeesemployees

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GRAPHIC REPRESENTATION OF PERFORMANCE GRAPHIC REPRESENTATION OF PERFORMANCE

COMPONENTSCOMPONENTSexamples


COMPONENTSCOMPONENTSexamples

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COMPONENTSCOMPONENTSexample: Radar Chart

why enterprises donwhy enterprises don’’t t ““performperform””......…….the root causes of poor performance date .the root causes of poor performance date

back to over 2 centuries agoback to over 2 centuries ago……....

…….we have gone into the .we have gone into the

21st century, with 21st century, with

enterprises designed in the enterprises designed in the

18th and 19th centuries to 18th and 19th centuries to

perform well in the 20thperform well in the 20th……....

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Why do all traditional Management Why do all traditional Management

techniques and disciplines somehow fail?techniques and disciplines somehow fail?

Management by Objectives, Effective Leadership, Diversification,Z Theory, Situational Leadership, Effective Communication, Zero-based-Budgeting, Decentralisation, Team Building, Management by Exception, Dale Carnegie techniques, Interpersonal Skills,

Quality Circles, Excellence, Restructuring, Portfolio Management, Interactive Management, Matrix Organisational Structure, Total

Quality Management, ISO 9000..... and One-Minute Managing......

Why is communication so difficult in Why is communication so difficult in

many many ““traditionaltraditional”” enterprises?enterprises?

Why isWhy is real, nonreal, non--spurious improvement so spurious improvement so

difficult to achievedifficult to achieve in many enterprises?in many enterprises?

Why Why ““functioningfunctioning”” well is so awkward in well is so awkward in

many many ““traditionaltraditional”” enterprises?enterprises?

..we have to look at organisational structures..we have to look at organisational structures……

Why do enterprises struggle both when they Why do enterprises struggle both when they

expand and when they are compelled to expand and when they are compelled to

shrink?shrink?

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……..that support an effective ..that support an effective

Employee Involvement scheme Employee Involvement scheme

and allow higher levels of and allow higher levels of

PerformancePerformance

ORGANISATIONAL ORGANISATIONAL

STRUCTURESSTRUCTURES

ORGANISATIONAL STRATEGIES

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REAL ENTITIESREAL ENTITIES

effective Human Resourceseffective Human Resources

Management StrategiesManagement Strategies

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effective Human Resourceseffective Human Resources

Management StrategiesManagement Strategies

EFFECTIVE HR MANAGEMENT STRATEGIESEFFECTIVE HR MANAGEMENT STRATEGIES

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““...the worst thing that could possibly ...the worst thing that could possibly

happen to an enterprise and its employees happen to an enterprise and its employees

is the adoption of an ineffective H R is the adoption of an ineffective H R

Management strategy......Management strategy......””

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EXAMPLES OF EXAMPLES OF ““MISMIS--MATCHMATCH””

E2 M2

M1

E1

homework?homework?

..oh, yes!!!..oh, yes!!!understand your organisational strategiesunderstand your organisational strategies

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SCANNING AN ORGANISATIONAL STRUCTURESCANNING AN ORGANISATIONAL STRUCTURE

area: cultural valuesarea: cultural values• typical of the "technology" era with a strong "Tayloristic” belief• Credo: "...products and/or technology make business..."• Competitiveness = costs reduction

• typical of the "marketing" era• Motto: Max exploitation of the Market• Logics: Max yearly results (economic - short/medium term strategy)• Credo: Business is made exploiting opportunities

• typical of the "quality challenge" era• Motto: Client's satisfaction ("....client is the king...")• Logics: Long-term strategy based on the Total Quality approach• Credo: Business is made improving continuously and systematically the whole productive

process in a "client-driven" mode

• typical of the "World-Class" era• Motto: Total Satisfaction (client, employees, shareholders, suppliers.....)• Logics: Long-term strategy based on the VAM (Value Adding Management) philosophy (and the

"value-chain" concept of M. E. Porter: "..be in the right chain with valid/competitive partners..")

• Credo: Business is made by increasing continuously and systematically the overall value of the vendor-vendee system and by consistent innovation

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area: relationship with marketarea: relationship with market

• Market: unsaturated (demand > offer) and "stable"• Market's needs: established by "technologists", who decide on validity and "value" of products• Products are literally "thrown" into the market (PRODUCT-OUT)

• Market: saturated (offer > demand) - “consumer” - not "mature" - somewhat unstable -fierce Competition

• Marketing force/abilities indispensable to locate opportunities and generate new needs in the market• Sales force/abilities indispensable to enhance competitiveness• Products developed (functional specs ---> technical specs ---> industrial/manufacturing specs) by locating

market needs (PRODUCT-IN)

• Market: saturated (offer > demand) - somewhat less “consumer” - "mature" (capable of understanding and rewarding quality) - unstable/turbulent

•Market's needs: already established (by western industries) - product lines are well defined (cars, consumer electronics.....)

•Extensive use of QFD (Quality Function Deployment) techniques for effective/fast product development•Market sets productive parameters (quality, delivery, cost) - "...the ocean pulls the river..."

• Market: rich (opulent) - very mature - featuring complexity and economic turbulence - very high competition - rapidly changing

• Market's needs: extremely personalised (mass-production coma ?)• Extrapolation/exasperation of the "market sets productive parameters" concept -----> "market sets

business parameters"


area: relationship with clientsarea: relationship with clients

• Client is an “entity” that buys our products (and sometimes gives us a lot of hassles...)

• We do not know much about our Clients (we are mainly concerned with their “liquidity”...)

• Client can and must be known more/well• Client can be persuaded to buy our products - we have marketing and

sales dept./s that take care of that.....

• Client is “King” and Client’s satisfaction is top priority• Client’s needs and expectations (explicit and implied) must be fulfilled

• Exasperation of the “Client is King” concept --- > “..Client is our Partner in business....”


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area: organisation & managementarea: organisation & management

• "Mechanical" (Scientific) system• Organisation structured in great details, and generally "static"• Decision-making process: top-down• Max attention to efficiency• Professionalism: specialised ("technical" positions are the most essential and rewarded)• Work: fragmented• Management: specialised, "per function", bureaucratic• Budget = basic tool. Great attention to "real/estimated" comparisons/analysis and to "deltas"• Max control (inspection, supervision)• Max cost control (per "cost centre")

• "Mechanical" (Scientific) system• Organisation structured in great details, but somewhat dynamic• Same organisational principles as in model (A), with new, predominant functions

(Sales, Marketing), and a new predominant position: the "Controller"• Decision-making process: top-down• Inter-functional management (featuring meetings, committees, inter-functional project teams....)• MBO - Management by Objectives• Very sophisticated budgeting/control system (with EDP/IT aid)


area: organisation & managementarea: organisation & management

• "Organic" system• From "product" culture (models A and B) to "process" culture and organisation• "Macro" organisation, process-related to main productive parameters: quality - delivery – cost• "Micro" organisation, also process-related to all other parameters• Decentralisation of responsibilities, authorities and management activities• Multi-skilled and multi-function management ("entrepreneurial" management)• Decision-making process: rather bottom-up• Profit-centres rather than cost-centres• Cost control system: from standard-oriented (models A + B) -----> to target-oriented (with performance

indicators) (Model C)• Kaizen (continuous & systematic process improvement). From "Static" standards (models A + B) -----> to

"dynamic" standards (model C). High employees involvement

• Flat Hierarchy (Horizontal Organisation)• Business/entrepreneurial culture and organisation• Total decentralisation of responsibilities in respect of overall results – extensive

Process Re-Engineering

• Organic system featuring high level of internal "supplier/client" relationship - "inter-function" and "matrix“ type organisational structures with high flexibility - value-adding “(re-)engineered” processes

• Profit centres (ABA - Activity Based Accounting)• VENTURE = entrepreneurial management (global management + risk management), highly market-oriented

(in real time), with "intra-preneurial" examples• From MBO (Management by Objectives) -----> to MBP (Management by Policies)• Extensive bottom-up drive• Top management function: co-ordination - homogenisation - internal consultancy/coaching


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area: relationship with employeesarea: relationship with employees

• Man = productive resource executing planned activities• Max control (inspection, supervision)• Employees are generally performing a series of simple and/or well defined tasks

• New parameters at shop-floor level: job rotation, job enlargement, job enrichment• MBO - Management by Objectives• Tasks performed according to well structured “job descriptions”

• Decentralisation of responsibilities and authorities up to shop floor level - some form of “empowerment” (total delegation of responsibilities and max autonomy within own scope of work)

• Considerable/high employee involvement at all levels (in problem solving, decision making, and improvement activities in general)

• Extensive bottom-up drive (both in decision-making and in design/change of organisational parameters)

• Empowerment and beyond: “....employees are partners in business...” -considerable entrepreneurial and “intra-preneurial” phenomena within the Organisation – result-based merit-o-cratic system, with examples of profit-sharing and share-holding type of rewards for employees


area: manufacturing and operational strategyarea: manufacturing and operational strategy

• Max productive volumes (limited only by financial constraints)• Max productive efficiency with high attention to costs• Investments: ----> Improvements of organisation and technology ----> R & D (product and technology)• "Make" rather than "buy"

• Linked to the logics of max turnover and max profit• Short/medium term strategies driven by market researches• Product diversification• Fragmentation into business units (divisions, product lines.....)• Tendency to commercialisation "only"

• Linked to the logics of "turnover consolidation & strengthening" (large volumes- lower costs-larger volumes)• Driving philosophies: CWQC (Company-Wide-Quality-Control) – TQM (Total Quality Management) – TP (Total

Productivity: JIT – Process Improvement & Management) - TPM (Total Productive Maintenance)• Pilot tool: SEW (Systematic Elimination of Waste)• Considerable/high decentralisation of production (and responsibilities associated with design, if applicable, and production)

and high "integration" with suppliers• Internal client = external client

• Linked to the logics of "profit in the medium-long term" maintaining and developing the enterprise's overall value• Protagonist: TBI (Total Business integration) [GWQC (Group-Wide-Quality-Control) - TP (Total Productivity) and

all LEAN approaches/disciplines – Value Stream Management - TPM (Total Productive Maintenance) – 6 Sigma Methodologies - PPD (Product-Process Development), with QFD (Quality Function Deployment) -CIM (Computer Integrated Manufacturing) - SEW (Systematic Elimination of Waste) (Group-wide) -TEI (Total Employee Involvement) (Group-wide) and TEP - COMAKERSHIP]

• Emphasis on total flexibility and extreme attention to all lead-times: time-to-market (development - engineering) - start-up time -P-time - set-up time - distribution time - information time ........ with vendors as co-protagonists


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area: procurement & relationship with suppliersarea: procurement & relationship with suppliers


• Buy at the lowest possible price (utilising high contractual power)• "Paternalistic" style of relationship with ("subordinate") suppliers

• Considerable decentralisation (buy rather than make: to cope with market demand and peaks, differentiated in volumes and mix)

• Alternative, competing suppliers (in order to achieve cost efficiency and to cope with demand peaks) - suppliers "in parallel"

• Generation of high competitiveness among suppliers• Max exploitation of suppliers -----> "disposable" suppliers - turnover of suppliers

• Extensive decentralisation of production (make produce rather than make) and associated (global) responsibilities

• Creation of own, long-term suppliers network [suppliers: limited in number, well selected, "dedicated", "married", highly involved in the improvement of common processes, ideally on the same level of professionalism and maturity] - Motto: "let's improve together"

• Vendor-Vendee relationship are seen as a starting point (rather than as a target)• Driving philosophies: Value-chain - GWQC – Comakership• Permanent logistic networks integrating vendors and vendees• Few, selected, reliable, integrated suppliers - high degree of reciprocal trust - joint improvement programs –

"open" enterprises

WORLDWORLD--CLASS PERFORMANCECLASS PERFORMANCE

the lean enterprise makes no the lean enterprise makes no

distinction between external distinction between external

and internal clientsand internal clients

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WORLD-CLASS PERFORMANCE

the lean enterprise the lean enterprise

operates operates ““per processper process””

WORLDWORLD--CLASS PERFORMANCECLASS PERFORMANCE

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Examples:

Marketing process - Sales process - Orders

receiving process - Customer Relations

process - Product Design process -

Production process - Despatch process -

Billing process - etc.

CRITICAL PROCESSESCRITICAL PROCESSES

(PRIMARY PROCESSES)(PRIMARY PROCESSES)Processes that "touch" the customers and are addressed to satisfy the 1st Supporting Group1st Supporting Group

(Clients…)

Examples:

Procurement process - Production Planning

process - Personnel Recruitment process -

R&D process – etc.

SECONDARY PROCESSESSECONDARY PROCESSES

(SUPPORT PROCESSES)SUPPORT PROCESSES)support the Central (money generation) process OR are

set to “learn” or research in specific fields

Examples:

Administration process - Accounting

process - Health & Safety Management

process - etc.

OTHER PROCESSESOTHER PROCESSESinvisible to customers, but essential for Organisation's functioning and addressed to the satisfaction of other other

Supporting GroupsSupporting Groups (Owners & Shareholders –Employees – Suppliers – Regulating Bodies like Government, Bureau of Standards, Normalisation

Bodies….)

articulated in various Primary ProcessesCENTRAL PROCESSCENTRAL PROCESS

(MONEY GENERATING PROCESS)(MONEY GENERATING PROCESS)

UNDERSTANDING PROCESSESUNDERSTANDING PROCESSES

PROCESS PROCESS

ENGINEERINGENGINEERING

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TODAY'S ULTIMATE SECRET FOR TODAY'S ULTIMATE SECRET FOR

LEAN PERFORMANCE, EXCELLENCE LEAN PERFORMANCE, EXCELLENCE

AND COMPETITIVENESS:AND COMPETITIVENESS:

FLOW PROCESSFLOW PROCESS

� the “overall” process must be

flowing and waste-less not only

“internallyinternally” (operation side) but

also “externallyexternally” (client side)

Example 1Example 1


Examples 2Examples 2

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�Value delivering, dynamic, flexible, Flow Flow

ProcessesProcesses (with natural sequences) built

around clients‘ expectations and needs, and

with diversified routes accordingly

Main featuresMain features


��MultiMulti--functionfunction and multimulti--skillskill personnel

(case worker - case team)

��ResponsibilityResponsibility for the process and its output

�Reduction/elimination of supervision and control

�Decision making autonomy within the process

--- > EmpowermentEmpowerment

�One process ownerprocess owner as reference point

FLOW PROCESSFLOW PROCESSMain featuresMain features

51

�Management: from supervision to coachingcoaching

(training and support)

�Max (intelligent) exploitation of technology

�Flattening of organisational structures

FLOW PROCESSFLOW PROCESSMain featuresMain features

fromfrom toto

internal attentioninternal attention attention to clientattention to client

attention to taskattention to task

simple taskssimple tasks

function unitsfunction units

attention to processattention to process

simple processessimple processes

process unitsprocess units

THE SECOND INDUSTRIAL REVOLUTIONTHE SECOND INDUSTRIAL REVOLUTION


52

LPMLean

Project

Mangmt

53

FPFlow

Process

VAMVAM

VALUE ADDING VALUE ADDING

MANAGEMENTMANAGEMENT

54

the VAM approach to the productive processthe VAM approach to the productive process

process process

time time

analysisanalysis

ΣΣΣΣΣΣΣΣ Time = 319 days Processing = 3 Hrs (0,04%)Time = 319 days Processing = 3 Hrs (0,04%)

Source: Lean Thinking (James Womack + Daniel Jones)

FRIGHTENINGFRIGHTENING…………..

55

SEWSEWSYSTEMATIC SYSTEMATIC

ELIMINATION OF WASTEELIMINATION OF WASTE

VALUE!VALUE!

56

57

SUMMARY OF THE MAIN TYPES OF WASTESUMMARY OF THE MAIN TYPES OF WASTE

��OverproductionOverproduction

��TransportationTransportation

��Waiting/idlingWaiting/idling

��DefectsDefects

��ControlControl

��MotionMotion

��UnUn--needed processing stepsneeded processing steps

��StockStock

58

WASTE WASTE –– THE TABLE OF EXCUSES THE TABLE OF EXCUSES -- OLDOLD1) That's the way we have always done it1) That's the way we have always done it

12) I wasn't hired to do that12) I wasn't hired to do that

11) I thought I told you11) I thought I told you

10) I'm so busy I just can't get around to it10) I'm so busy I just can't get around to it

9) I didn't think it was very important9) I didn't think it was very important

8) I forgot8) I forgot

7) Wait till the boss comes back & ask him7) Wait till the boss comes back & ask him

6) That's his job 6) That's his job -- not minenot mine

5) I am waiting for an OK5) I am waiting for an OK

4) No one told me to go ahead4) No one told me to go ahead

3) That's not in my department3) That's not in my department

2) I didn't know you were in a hurry for it2) I didn't know you were in a hurry for it

WASTE WASTE –– THE TABLE OF EXCUSES THE TABLE OF EXCUSES -- NEWNEW1) That's the way we have always done it1) That's the way we have always done it

12) All machines eventually give problems12) All machines eventually give problems

11) We must control quality or clients will complain11) We must control quality or clients will complain

10) Set10) Set--up time cannot be reduced furtherup time cannot be reduced further……..

9) We need stock: it9) We need stock: it’’s a good investments a good investment

8) Impossible8) Impossible

7) You mean we are stupid the way we do it???7) You mean we are stupid the way we do it???

6) Managers and consultants6) Managers and consultants……. Only able to mess us up. Only able to mess us up

5) We have tried in the past, and it didn5) We have tried in the past, and it didn’’t workt work……

4) Why change? We are already so busy4) Why change? We are already so busy……..

3) This way we know it works3) This way we know it works……..

2) There is no better way, believe me2) There is no better way, believe me……..

59

spot the waste!spot the waste!

LEAN MANUFACTURING LEAN MANUFACTURING

and FLOW PRODUCTIONand FLOW PRODUCTION

the target:the target:

p i p e l i n e f l o wp i p e l i n e f l o w

c o n t i n u o u s f l o wc o n t i n u o u s f l o w

60

Lean Manufacturing uses less of everything Lean Manufacturing uses less of everything

compared with mass production:compared with mass production:

half the human effort in the factory, half the half the human effort in the factory, half the

manufacturing floor space, half the investment manufacturing floor space, half the investment

in tools, half the engineering hours to develop in tools, half the engineering hours to develop

a new product in half the time. a new product in half the time.

Also it requires keeping far less than half the Also it requires keeping far less than half the

needed inventory and results in fewer needed inventory and results in fewer

defectsdefects……....James P Womack – Daniel T Jones – Daniel Roos

(The machine that changed the world)

LOT (BATCH) LOT (BATCH)

PRODUCTIONPRODUCTIONVS.VS.

FLOW FLOW

PRODUCTIONPRODUCTION

61

LOT PRODUCTIONLOT PRODUCTION VS. FLOW PRODUCTIONVS. FLOW PRODUCTION

62



63



64

fake flow productionfake flow production

the the ““conveyorconveyor”” methodmethod


65

““batch productionbatch production”” vs. vs.

““oneone--piece flowpiece flow””

batch production vs. onebatch production vs. one--piece flowpiece flow

analysis

ANALYSISANALYSIS

66

The role of Lean Disciplines in The role of Lean Disciplines in

developing Employee Involvementdeveloping Employee Involvement

The role of The role of

Lean Lean

Disciplines in Disciplines in

developing developing

Employee Employee

InvolvementInvolvement

67

the the ““SOCOSOCO”” (5S) approach(5S) approach

nonnon--socosoco examplesexamples

68

a a socosoco story story

a a socosoco factoryfactory

5S in action5S in action

a a socosoco factoryfactory

5S in action5S in action

69

UU--CELL CELL

MANUFACTURINGMANUFACTURING

ONEONE--PIECE FLOWPIECE FLOW

cell manufacturingcell manufacturing

labour/machines situationlabour/machines situation

70

Lean Manufacturing and Lean Manufacturing and

Total Quality ManagementTotal Quality Management

THE POKATHE POKA--YOKE DISCIPLINEYOKE DISCIPLINE

100% TESTING APPROACHES100% TESTING APPROACHES

THE 6 SIGMA METHODOLOGYTHE 6 SIGMA METHODOLOGY

71

APPROACHES TO TQMAPPROACHES TO TQM

TOTAL QUALITY MANAGEMENTTOTAL QUALITY MANAGEMENT

implementing a Quality implementing a Quality

Assurance or Total Assurance or Total

Quality Program without Quality Program without

considering the considering the

Productivity aspect would Productivity aspect would

be "handicapped"be "handicapped"

TOTAL QUALITY MANAGEMENTTOTAL QUALITY MANAGEMENT

72

The 5 QA Achievement Levels

FLOW PRODUCTION FLOW PRODUCTION -- THE QUALITY ISSUETHE QUALITY ISSUE

5) Processes do not create defects to begin with5) Processes do not create defects to begin with

4) Processes do not send defects downstream4) Processes do not send defects downstream

3) Defects are reduced3) Defects are reduced

2) Defective product is not delivered to client2) Defective product is not delivered to client

1) Defective product is delivered to client1) Defective product is delivered to client

Flow Production is Flow Production is

based on QA level 5: based on QA level 5:

ZERO DEFECTSZERO DEFECTS


73

Quality Inspection Quality Inspection builtbuilt--intointo the the

productive process: 100% inspectionproductive process: 100% inspection

PokaPoka--Yoke devices builtYoke devices built--into the into the

productive process for guaranteed qualityproductive process for guaranteed quality

If defects occur, the process is stopped, If defects occur, the process is stopped,

and the cause/s found and eliminatedand the cause/s found and eliminated

No double check/double inspectionNo double check/double inspection

Inspection Department IS Inspection Department IS

the Production Departmentthe Production Department


6 Sigma methodology in extreme or 6 Sigma methodology in extreme or

well suited situationswell suited situations

100% testing100% testing

Flash Images of fully automated and Flash Images of fully automated and

semisemi--automated calibrating and testing automated calibrating and testing

lines for the lines for the ““Common RailCommon Rail”” Diesel Diesel

Injection System.Injection System.

Lines engineered by AEA Lines engineered by AEA SrlSrl of Italy.of Italy.

74

a worlda world--class enterprise dedicated class enterprise dedicated

to 100% quality testingto 100% quality testing

100% testing100% testing100% testing

The 6-SigmaThe 6The 6--SigmaSigma

MethodologyMethodologyMethodologyoverview

75

pokapoka--yokeyoke

76

MISTAKEMISTAKE--PROOFING IN EVERYDAYPROOFING IN EVERYDAY’’S LIFES LIFE


77


POKAPOKA--YOKE APPLICATIONSYOKE APPLICATIONS

78

POKAPOKA--YOKE APPLICATIONSYOKE APPLICATIONS

FLOW PRODUCTION FLOW PRODUCTION -- THE QUALITY ISSUETHE QUALITY ISSUEThe “turn-this-board” strategy

79

FLOW PRODUCTION FLOW PRODUCTION -- THE QUALITY ISSUETHE QUALITY ISSUEThe “turn-this-board” strategy

HEAVY MECHANISATION / HEAVY MECHANISATION /

AUTOMATIONAUTOMATION

LEAN MANUFACTURING LEAN MANUFACTURING

and TPMand TPM

TOTAL PRODUCTIVE MAINTENANCETOTAL PRODUCTIVE MAINTENANCE

80

81

““traditionaltraditional”” TPMTPM

PARTICIPATIVEPARTICIPATIVE PROGRAMS DESIGNED TO INCREASE EQUIPMENT EFFECTIVENESS (PRODUCTIVITY - QUALITY -SAFETY) AIMING AT VARIOUS GOALS:

definitiondefinition

�AUTONOMOUS MAINTENANCE ACTIVITIES TO

MAINTAIN BASIC EQUIPMENT CONDITIONS

�ELIMINATION OF ACCELERATED DETERIORATION

�RESTORATION OF EQUIPMENT TO OPTIMAL

OPERATING CONDITIONS

�ELIMINATION OF THE 6 BIG LOSSES6 BIG LOSSES, IN ORDER TO

MAXIMISE EQUIPMENT EFFECTIVENESS

““traditionaltraditional”” TPMTPMgoalsgoals

�INCREASE IN EFFICIENCY AND COST-EFFECTIVENESS

OF MAINTENANCE FUNCTION

�INCREASE OF OPERATION AND MAINTENANCE SKILLS

�MAINTENANCE PREVENTION

�MAINTAINABILITY IMPROVEMENT AND DEVELOPMENT

OF A MAINTENANCE SYSTEM FOR THE EQUIPMENT

LIFE

82

““traditionaltraditional”” TPMTPM

�TOTAL INVOLVEMENT OF PEOPLE FROM ALL DEPTS.

THAT PLAN, DESIGN, USE OR MAINTAIN EQUIPMENT

�AND OTHERS

�MAX. SAFETY AND ENVIRONMENT CONSERVATION/

/POLLUTION CONTROL

�INVOLVEMENT OF TOP MANAGEMENT

goalsgoals

““todaytoday’’ss”” TPMTPM

today’s TPM focuses on the entire

productive processproductive process to assure that the right equipment is part of a valuevalue--

adding/wasteadding/waste--freefree series of operations

and to assure (by deploying “traditional”TPM approaches) that equipment

contributes “effectively” to the primary objective of valuevalue--generationgeneration

83


people and machinespeople and machines

84

THE 6 BIG LOSSESTHE 6 BIG LOSSES

85



86

PREVENTIVE MAINTENANCEPREVENTIVE MAINTENANCE

AUTONOMOUS MAINTENANCEAUTONOMOUS MAINTENANCE

the hearts of TPMthe hearts of TPM

The new relationship between The new relationship between

Maintenance and ProductionMaintenance and Production

VALUE VALUE

STREAM STREAM

MANAGEMENTMANAGEMENT

87

VALUE STREAM MANAGEMENTVALUE STREAM MANAGEMENT

VSM storyboardVSM storyboard

PROCESS MAPPINGPROCESS MAPPING

88

PROCESS MAPPINGPROCESS MAPPING

PROCESS MAPPINGPROCESS MAPPINGPROCESS ROUTE ANALYSIS PROCESS ROUTE ANALYSIS

GROUPGROUP--TECHNOLOGYTECHNOLOGY

89





90



TACKLING IMPROVEMENT KAIZEN STYLETACKLING IMPROVEMENT KAIZEN STYLE

1. Double-check your “direction”

Create a Kaizen Milestones Create a Kaizen Milestones

Charter and manage it with the Charter and manage it with the

typical Project Management styletypical Project Management style

3. Rank Improvement Projects!

2. Understand improvement!!!

91

A TRADITIONAL A TRADITIONAL

IMPROVEMENTS IMPROVEMENTS

LISTLIST……..

FROM

THE MILESTONE THE MILESTONE

CHARTERCHARTER

..TO

92

LEANLEAN

what is it?what is it?

THINKINGTHINKING

LEAN THINKING: what is it?LEAN THINKING: what is it?

The key to WCP: LEAN THINKINGThe key to WCP: LEAN THINKING

Based on 5 core concepts:Based on 5 core concepts:

1.1. ValueValue: as defined and/or perceivable by : as defined and/or perceivable by

the customer (what the customers buy)the customer (what the customers buy)

3.3. FlowFlow: the required value: the required value--adding steps adding steps

must must ““flowflow”” –– the process must flow both the process must flow both

““internallyinternally”” (Operation Side) and (Operation Side) and

““externallyexternally”” (Customer Side)(Customer Side)

2.2. Value StreamValue Stream: the way value is produced : the way value is produced

and deliveredand delivered

93

4.4. PullPull: or making the value stream : or making the value stream ““flowflow””

““pulledpulled”” by the market (triggering flow by the market (triggering flow

from the customer needs)from the customer needs)

5.5. ExcellenceExcellence: there is no end to the process : there is no end to the process

of minimising time, efforts, space, costs of minimising time, efforts, space, costs

and mistakes while offering a product or and mistakes while offering a product or

service which is closer and closer to what service which is closer and closer to what

customers actually want, need, expect or customers actually want, need, expect or

dream ofdream of……..


LEAN THINKING: what is it?LEAN THINKING: what is it?Based on 5 core concepts:Based on 5 core concepts:

Examples: Examples:

Airline: actual flying Airline: actual flying

Healthcare: receiving diagnosis/treatmentHealthcare: receiving diagnosis/treatment

Examples: Examples:

Airline: liningAirline: lining--up to checkup to check--in in –– security checksecurity check--in in

Healthcare: sitting in the waiting room waiting for an appointmeHealthcare: sitting in the waiting room waiting for an appointment nt

Other examples: checking, asking, fixing, second and third contaOther examples: checking, asking, fixing, second and third contacts, rects, re--doingdoing……..


LEAN THINKING: what is it?LEAN THINKING: what is it?Definitions:Definitions:

�� ValueValue--adding activityadding activity: any activity that : any activity that

contributes directly to satisfy the needs of the contributes directly to satisfy the needs of the

customerscustomers

�� NonNon--valuevalue--addingadding: anything that takes time or : anything that takes time or

resources but does not contribute directly to resources but does not contribute directly to

satisfy the needs of the customerssatisfy the needs of the customers

94


LEAN THINKING: what is it?LEAN THINKING: what is it?

�� Reduce the steps by halfReduce the steps by half

Very preliminary targets:Very preliminary targets:

�� Reduce the errors by halfReduce the errors by half

�� Reduce the time by halfReduce the time by half

Subsequent targets:Subsequent targets:

�� Cut the steps to VA onlyCut the steps to VA only

�� Cut the time to VACut the time to VA--TimeTime

�� Zero defectsZero defects

scrapscrap--yard operations yard operations -- 11

EXERCISE???EXERCISE???

……..oh, yes!!!..oh, yes!!!

Flow Processing in any IndustryFlow Processing in any Industry

95

RESISTANCE TO LEAN TRANSITIONRESISTANCE TO LEAN TRANSITION


LEAN THINKING: resistanceLEAN THINKING: resistance

�� Opposition thinkingOpposition thinking::

�� Batch vs. one piece flow mentalityBatch vs. one piece flow mentality

�� Fight fires vs. Fight fires vs. ““ask why 5 timesask why 5 times””

�� Push vs. pull (anticipate) mindsetPush vs. pull (anticipate) mindset

�� It will feel wrongIt will feel wrong…… taking apart taking apart

something that has taken years something that has taken years

to buildto build……

the the ““conveyorconveyor”” mentalitymentality

LEAN THINKING: resistanceLEAN THINKING: resistance

96

the the ““conveyorconveyor”” mentalitymentality

LEAN THINKING LEAN THINKING –– who cares?who cares?

�� Worker/employeeWorker/employee: : “…“…why should I why should I

care?care?””

�� Supervisors/foremenSupervisors/foremen: : “…“…we have we have

always done this wayalways done this way…”…”

�� ManagerManager: : “…“…with this workwith this work--force, force,

what do you expect?what do you expect?””

�� Top ManagementTop Management: : “…“…if the results if the results

($) are there, why care?($) are there, why care?””

SmithSmith’’s circle is closed!s circle is closed!

97

�� 5W2H5W2H


LEAN THINKING: the toolsLEAN THINKING: the toolsSome of the tools for seeing waste:Some of the tools for seeing waste:

�� Bar ChartsBar Charts

�� Time ObservationTime Observation

�� TaktTakt TimeTime

�� SOCO (5S)SOCO (5S)

�� Value Stream MappingValue Stream Mapping

�� Production Control BoardProduction Control Board

�� Communication circleCommunication circle�� Flow chartFlow chart

�� Spaghetti diagramSpaghetti diagram

�� TRIZTRIZ

�� 5WHYs5WHYs

and:and:

5W2H5W2H

LEAN THINKING: the toolsLEAN THINKING: the tools

�� WHAT?WHAT?

�� HOW MUCH?HOW MUCH?

�� HOW?HOW?

�� WHO?WHO?

�� WHEN?WHEN?

�� WHERE?WHERE?

�� WHY?WHY? amplifyamplify

98

5WHYs5WHYs

LEAN THINKING: the toolsLEAN THINKING: the tools

��WHY?WHY?

��WHY?WHY?

��WHY?WHY?

��WHY?WHY?

��WHY?WHY?

SPAGHETTI DIAGRAM SPAGHETTI DIAGRAM –– PRESENT STATUSPRESENT STATUS

telephone

motion/persons

motion/goods

motion/paper/fax

LEAN THINKING: the toolsLEAN THINKING: the toolsSpaghetti diagramSpaghetti diagram

99

LEAN THINKING: the toolsLEAN THINKING: the toolsCommunication CirclesCommunication Circles

issueissue John

Bill

George

Mary

Supplier

Bill

John

Example: TAKT TIME in HealthcareExample: TAKT TIME in Healthcare

�� If your customer demand is for 24 xIf your customer demand is for 24 x--rays/day rays/day

and your xand your x--ray tech is available 420 minutes ray tech is available 420 minutes

per day per day

TaktTakt time: 420 time: 420 ÷÷ 24 = 17,5 minutes24 = 17,5 minutes

LEAN THINKING: the toolsLEAN THINKING: the toolsTaktTakt TimeTime

TAKT TIME =TOTAL AVAILABLE WORK TIME

CUSTOMER DEMAND

TaktTakt Time sets the pace of production to Time sets the pace of production to

match the rate of customer demandmatch the rate of customer demand

100

LEAN THINKING: the toolsLEAN THINKING: the toolsTime ObservationTime Observation

�� With Time Observations you determine With Time Observations you determine ““how longhow long”” it takes it takes

to do the taskto do the task

Get close to the work Get close to the work

Video record Video record

See in detail See in detail

See the waste See the waste

Quantify waste Quantify waste

Classify wasteClassify waste

�� Time Observation is a tool to help you Time Observation is a tool to help you ““seesee”” waste, by waste, by

seeing the nonseeing the non--valuevalue--adding steps in detailadding steps in detail

�� Time Observations are NOT Time Observations are NOT ““Time StudiesTime Studies”” (Time & (Time &

MotionMotion……..)..)

LEAN THINKING: the toolsLEAN THINKING: the toolsBar ChartBar Chart

�� Displays Time Observation dataDisplays Time Observation data

1) for activities performed by 1) for activities performed by

an individual personan individual person

TARGET

101

LEAN THINKING: the toolsLEAN THINKING: the toolsBar ChartBar Chart

�� Displays Time Observation dataDisplays Time Observation data

1) for activities performed by 1) for activities performed by

several personsseveral persons

How many How many

people do people do

you need?you need?

??

LEAN THINKING: the toolsLEAN THINKING: the toolsThe main tool:The main tool:

The main The main Lean Lean

ThinkingThinking tool and tool and

the common the common

denominator to all denominator to all

other toolsother tools……

102

YEARS 2000YEARS 2000

FACTORS OF COMPETITIVENESSFACTORS OF COMPETITIVENESS

C r e a t i v i t yC r e a t i v i t y

the 6 thinking hatsthe 6 thinking hats

103

scrapscrap--yard operations 2 yard operations 2 –– scrap cansscrap cans


……..oh, yes!!!..oh, yes!!!

Flow Processing in any IndustryFlow Processing in any Industry

scrapscrap--yard operations 2 yard operations 2 –– scrap cansscrap cans

104

……are are Lean ThinkingLean Thinking

and and Flow ProcessFlow Process

principles and principles and

techniques suited techniques suited

to all industries?to all industries?

yes!!yes!!

The answer is always:The answer is always:

105

Flow ProcessingFlow Processing

Lean Thinking in the Service IndustryLean Thinking in the Service Industry


Service IndustryService Industry

A GLORIOUS WEDDING

A FISHY EVENING

CONVENTIONS

106

look at the pearls!look at the pearls!

(Service Industry)(Service Industry)

The The ““pearlspearls”” in the Service Industryin the Service Industry

drop your commentsdrop your comments……

to the floor!to the floor!

107

Flow Processing in the Service IndustryFlow Processing in the Service Industry

The Service Industry offers numerous examples of good, The Service Industry offers numerous examples of good,

Flowing Processes and bad, nonFlowing Processes and bad, non--Flowing ProcessesFlowing Processes…………....

EXAMPLES

POKAPOKA--YOKE FLOW PROCESSINGYOKE FLOW PROCESSING


……..oh, yes!!!..oh, yes!!!


108

IDEAMATRIXIDEAMATRIX

features, characteristicsfeatures, characteristics……. go here. go here

PP

RR

OO

VV

OO

CC

AA

TT

II

OO

NN

WW

OO

RR

DD

SS

ideaidea

Sometimes itSometimes it’’s difficult to do things right the first time, without mistakes:s difficult to do things right the first time, without mistakes: there can be problemsthere can be problems……..


��Target: transform a dissatisfied client into a (very) satisfied Target: transform a dissatisfied client into a (very) satisfied

one!one!

��The The SRPSRP intervention must care of the customer first and intervention must care of the customer first and

then of his/her problemthen of his/her problem

��the the SR ProcessSR Process must be: top priority must be: top priority -- extremely fast extremely fast -- lean lean --

and simpleand simple……..

��The challenge: what is important is the The challenge: what is important is the ““Service Recovery Service Recovery

ProcessProcess”” (there is only one more chance to get things right!!)(there is only one more chance to get things right!!)

(hotel room not ready…. lost suitcase….)

��Frontline Personnel Frontline Personnel empowermentempowerment: essential!: essential!

109

BRABRA--FITTINGFITTING


……..oh, yes!!!..oh, yes!!!


Deploying VSM and other LT Deploying VSM and other LT

tools in other tools in other

Industries/ProcessesIndustries/Processes

a) healthcarea) healthcare

110

Deploying VSM and other LT Deploying VSM and other LT

tools in other tools in other

Industries/ProcessesIndustries/Processes

b) administrationb) administration

EXERCISE????EXERCISE????

……oh, yes!!!!oh, yes!!!!a hiccup processa hiccup process……

COMPLEX PROCESSES, INVOLVING SEVERAL PERSONS COMPLEX PROCESSES, INVOLVING SEVERAL PERSONS

or DEPARTMENTS, OFTEN ORIGINATE ERRORS or DEPARTMENTS, OFTEN ORIGINATE ERRORS

111

Lean Project Lean Project

ManagementManagement

Lean Thinking in the Project IndustryLean Thinking in the Project Industry

Lean Construction Lean Construction

ManagementManagement

TRADITIONALTRADITIONAL

basicsbasics

PROJECT MANAGEMENTPROJECT MANAGEMENT

112

TRADITIONAL PROJECT MANAGEMENTTRADITIONAL PROJECT MANAGEMENT

PROJECT PARAMETERSPROJECT PARAMETERS


113

key principleskey principles


key principleskey principles


114

the needthe need……

Typical symptoms of Projects with low Typical symptoms of Projects with low

PROJECT MANAGEMENT contentPROJECT MANAGEMENT content

��Costs : too high, and anyhow exceeding budgetCosts : too high, and anyhow exceeding budget

��PenaltiesPenalties

��Project Termination : long, painful, with hiccupsProject Termination : long, painful, with hiccups

��Delays on completionDelays on completion

��Project Start : slow, hesitant, difficultProject Start : slow, hesitant, difficult

��Personnel turnover within Project TeamPersonnel turnover within Project Team

��Efforts : duplicated/doubled upEfforts : duplicated/doubled up

115

Typical symptoms of Projects with low Typical symptoms of Projects with low

PROJECT MANAGEMENT contentPROJECT MANAGEMENT content��Inefficient resources utilisationInefficient resources utilisation

��Waste Waste -- Rejects and DefectsRejects and Defects

��Stress, pressure, anxiety, ineffectiveness, inadequacy, lack of Stress, pressure, anxiety, ineffectiveness, inadequacy, lack of

readiness to take up responsibilities, lack of flexibility, readiness to take up responsibilities, lack of flexibility,

frequent misunderstandings, tendency to "pass the buck", frequent misunderstandings, tendency to "pass the buck",

dede--motivation, rigidity...........motivation, rigidity...........

��High level of contingencies High level of contingencies –– unforeseen and unexpected unforeseen and unexpected

occurrencesoccurrences

��Time factor and Quality standards not complied with by suppliersTime factor and Quality standards not complied with by suppliers

and suband sub--contractorscontractors

��Dissatisfaction : of Client Dissatisfaction : of Client -- of Consultants of Consultants -- within Project Team within Project Team ––

within General Managementwithin General Management

��Wrong person acting as Project ManagerWrong person acting as Project Manager

��General Management and/or Functional Managers lacking General Management and/or Functional Managers lacking

knowledge of Project Manager's roleknowledge of Project Manager's role

��Project Manager lacking knowledge of his role and functionsProject Manager lacking knowledge of his role and functions

��No person responsible for the project as a whole : no Project No person responsible for the project as a whole : no Project

Manager (or too many...)Manager (or too many...)

��Non realistic estimation/budgetingNon realistic estimation/budgeting

��Projects not dealt with as suchProjects not dealt with as such

Likely causes:Likely causes:

��Inadequate CommunicationInadequate Communication

��Project Manager lacking human resources managing abilitiesProject Manager lacking human resources managing abilities

��Project Team not adequately structured by Project ManagerProject Team not adequately structured by Project Manager

��Project's Project's objective(sobjective(s) not sufficiently defined/clarified) not sufficiently defined/clarified

116

��Non realistic Planning and/or SchedulingNon realistic Planning and/or Scheduling

��Non integrated PLANNING and CONTROLNon integrated PLANNING and CONTROL

��Project Manager lacking administrative capacityProject Manager lacking administrative capacity

��Project Manager autonomy too limited/non adequateProject Manager autonomy too limited/non adequate

��Excessive conflicts Excessive conflicts -- PM lacking conflicts management abilitiesPM lacking conflicts management abilities

��Project Manager lacking strategic abilitiesProject Manager lacking strategic abilities

Likely causes:Likely causes:

��Non adequate Project Cost Control SystemNon adequate Project Cost Control System

��Human resources under excessive stressHuman resources under excessive stress

��Too many and too sudden changes of any natureToo many and too sudden changes of any nature

��Project Manager lacking commercial abilitiesProject Manager lacking commercial abilities

��Project Manager lacking negotiation abilitiesProject Manager lacking negotiation abilities

117

118

conventional managementconventional management……

……and matrix managementand matrix management

119

never start a project unless all resources are availablenever start a project unless all resources are available……..

120

PLANNINGPLANNING

PROGRAMMINGPROGRAMMING

SCHEDULINGSCHEDULING

CONTROLLINGCONTROLLING

121

LIFECYCLE OF PROJECT WITH POOR PLANNINGLIFECYCLE OF PROJECT WITH POOR PLANNING

Project initiationProject initiation

Wild enthusiasmWild enthusiasm

DisillusionmentDisillusionment

Wild chaosWild chaos

Search for the guiltySearch for the guilty

Punishment of the innocentPunishment of the innocent

Promotion of nonPromotion of non--participantsparticipants

Definition of the requirements (Planning)Definition of the requirements (Planning)


……oh, yes!!!!oh, yes!!!!the OWP TUBES projectthe OWP TUBES project

122

THE BOTTOM LINETHE BOTTOM LINE……

Calculation Sheet

LEANLEAN

basicsbasics

PROJECT MANAGEMENTPROJECT MANAGEMENT

introducing:introducing:

123


Management Management forewordforeword

WHY DO SOME PROJECTS FAIL?WHY DO SOME PROJECTS FAIL?

LEAN PROJECT MANAGEMENTLEAN PROJECT MANAGEMENT forewordforeword

124

““the project/construction the project/construction

industry is in some ways not industry is in some ways not

completely shifted from craft completely shifted from craft

to mass production to mass production -- much much

less to lean productionless to lean production””

LEAN PROJECT MANAGEMENTLEAN PROJECT MANAGEMENT

on the other hand, the industry has followed the mass on the other hand, the industry has followed the mass

production model in its extensive division of labour production model in its extensive division of labour

LEAN PROJECT MANAGEMENTLEAN PROJECT MANAGEMENTthe main consequences:the main consequences:

WASTEWASTE

DELAYS ON SCHEDULESDELAYS ON SCHEDULES

the 3 phenomena are strictly the 3 phenomena are strictly

interlinked and have a interlinked and have a

common denominator: an common denominator: an

inadequate style of thinkinginadequate style of thinking

COST OVERRUNSCOST OVERRUNS

125

EXAMPLES


Construction Industry 1Construction Industry 1

EXAMPLES


Construction Industry 2Construction Industry 2

126

�� MovingMoving

any correlation between what you have seen and your work of everany correlation between what you have seen and your work of every day?y day?

Any similitude?Any similitude?

�� Giving instructions Giving instructions –– Receiving instructionsReceiving instructions

�� Ordering things Ordering things –– SettingSetting--up things up things –– Making sure..Making sure..

�� ReportingReporting

�� AttendingAttending……

�� Meetings Meetings –– ““spotspot”” meetings in the passagemeetings in the passage……

�� Doing things Doing things ““in casein case”” –– or or ““why not?why not?””

�� PreparingPreparing

�� AnsweringAnswering

�� FilingFiling

Check list:Check list:

�� WaitingWaiting

�� ObservingObserving

�� Checking Checking –– Inspecting Inspecting -- SupervisingSupervising

�� Talking Talking –– Clarifying Clarifying –– Explaining Explaining –– IllustratingIllustrating……

�� Chatting Chatting -- Phoning Phoning –– Taking Taking ““thisthis”” callcall……

�� Putting pressure Putting pressure –– Chasing Chasing -- Expediting Expediting –– DealingDealing……

�� Managing Managing –– Authorising, approving Authorising, approving –– Getting rightGetting right……

Does all this create Does all this create

value for your clients?value for your clients?

LEAN PROJECT MANAGEMENTLEAN PROJECT MANAGEMENT��Traditionally, project/construction works are viewed and Traditionally, project/construction works are viewed and

modelled only as a series of modelled only as a series of conversionconversion (value(value--adding) adding)

activitiesactivities (activity/conversion(activity/conversion--centred or contractcentred or contract--

centred model)centred model)

For example,

waste activitieswaste activities

such as waiting,

offloading,

storing, moving

material, and

inspection are

not generally

modelled by

Critical Path

Models (CPM),

WBS (Works

Breakdown

Structure) or

other planning

or control tools.

127

LEAN PROJECT MANAGEMENTLEAN PROJECT MANAGEMENTanalysis of traditional planning inadequaciesanalysis of traditional planning inadequacies

��In project/construction works, the In project/construction works, the

effective point of intervention has effective point of intervention has

proven to be the proven to be the Weekly Work PlanWeekly Work Plan, ,

because that is where decisions are because that is where decisions are

made, work is selected and scheduled made, work is selected and scheduled

and commitments are made.and commitments are made.

��Generally and traditionally, a Generally and traditionally, a bar chartbar chart is is

produced showing the durations and produced showing the durations and

sequencing of assignments by subsequencing of assignments by sub--crew for crew for

each day of the week. The bareach day of the week. The bar--chart is often chart is often

literally literally ““thrownthrown”” at supervisors/foremen.at supervisors/foremen.


however, having such a bar chart on hand and using

it effectively may be two very different things…

128

��PlanningPlanning (schedules, budgets, etc.) collectively tell project (schedules, budgets, etc.) collectively tell project

personnel what they personnel what they SHOULDSHOULD do.do.

��Project ManagementProject Management thereafter thereafter monitorsmonitors and and enforcesenforces

conformanceconformance of of DIDDID to to SHOULDSHOULD. .

PlanningPlanning takes place before project execution. takes place before project execution.

ControlControl takes place during/after project execution. takes place during/after project execution.

Scheme:Scheme:

planning the work

executing the plan

SHOULDSHOULD

project objectivesproject objectives

datadata

informationinformation

resourcesresources DIDDID

PM ControlPM Control


��Everything works fine until Everything works fine until ““somethingsomething”” goes wronggoes wrong -- then a then a

chain reaction takes place chain reaction takes place -------- > > delays over delaysdelays over delays

��Then, more and more Then, more and more pressurepressure is put on everyone in the is put on everyone in the

chain to produce more, fasterchain to produce more, faster

��This usually This usually makes things worse rather than bettermakes things worse rather than better

��Working under pressure results in ever more nonWorking under pressure results in ever more non--productive productive

time, detime, de--moralises supervision, and directs energy and moralises supervision, and directs energy and

attention toward attention toward ““fire fightingfire fighting”” rather than learning rather than learning

how to work well in the first instancehow to work well in the first instance

If this traditional approach to planning worked perfectly,

DID would always match SHOULD

Statistics reveal that what actually gets done differs from

what is supposed to be done at least 1/3 of the time

LEAN PROJECT MANAGEMENTLEAN PROJECT MANAGEMENTtraditional planningtraditional planning

129


taking the lean waytaking the lean way

wayway

the leanthe lean

takingtaking

views Engineering & views Engineering &

Construction Projects as Construction Projects as

fast, continuous fast, continuous Flow Flow

ProcessesProcesses, in which only , in which only

conversions add valueconversions add value

LEAN PROJECT MANAGEMENTLEAN PROJECT MANAGEMENTthe lean philosophythe lean philosophy

130

Based on the same 5 Core Principles as Lean Thinking:Based on the same 5 Core Principles as Lean Thinking:


1.1.ValueValue

5.5.ExcellenceExcellence

4.4.PullPull

3.3.FlowFlow

2.2.Value StreamValue Stream

specific tools/techniques for:specific tools/techniques for:


the the ““Last PlannerLast Planner”” approachapproach

the PPC and its intelligent usethe PPC and its intelligent use

131

THE LAST PLANNER: ShouldTHE LAST PLANNER: Should--CanCan--WillWill

Last PlannersLast Planners are expected to make commitments are expected to make commitments

((WILLWILL) to doing what ) to doing what SHOULDSHOULD be done, only to the be done, only to the

extent that it extent that it CANCAN be done in a be done in a lean fashionlean fashion

Last Planner

(waste removal)

SHOULDSHOULD

CANCAN WILLWILL

LEAN PROJECT MANAGEMENTLEAN PROJECT MANAGEMENTlean planning and the lean planning and the ““last plannerlast planner””

the the LAST PLANNER LAST PLANNER mechanismmechanism

LEAN PROJECT MANAGEMENTLEAN PROJECT MANAGEMENTlean planning and the lean planning and the ““last plannerlast planner””

WILL BE DONEWILL BE DONE

CAN BE DONECAN BE DONE

constraints & unforeseen/s eliminationconstraints & unforeseen/s elimination

hence: REALISTIC LOADING of PU resourceshence: REALISTIC LOADING of PU resources

waste reduction/elimination from PU work waste reduction/elimination from PU work

package or activitypackage or activity

hence: SOUND ASSIGNMENThence: SOUND ASSIGNMENT

132

project objectivesproject objectives

initial planningdatadata

informationinformationSHOULDSHOULD

adjusted planningADJUSTEDADJUSTED

SHOULDSHOULD

last planner

work execution

WILLWILL

DIDDID

status +status +

forecastsforecasts

resourcesresources

CANCAN

PM ControlPM Control

Match:Match:

SHOULD toSHOULD to

ADJ. SHOULDADJ. SHOULD

Match:Match:

ADJ. SHOULDADJ. SHOULD

to WILLto WILL

Match:Match:

WILL to DIDWILL to DID

(PPC)(PPC)

LEAN PROJECT MANAGEMENTLEAN PROJECT MANAGEMENTlean planning and lean controllean planning and lean control

PPC is the heart of Lean Planning/ControlPPC is the heart of Lean Planning/Control

��the lean method consists in the lean method consists in systematic measuringsystematic measuring

��identifying reasons for nonidentifying reasons for non--completion (completion (5Why5Why))

��and tracing reasons back to root causes that can be and tracing reasons back to root causes that can be

eliminated to prevent repetitionseliminated to prevent repetitions

LEAN PROJECT MANAGEMENTLEAN PROJECT MANAGEMENTlean planning and lean controllean planning and lean control

Measuring PPC allows also to Measuring PPC allows also to distinguish between failures distinguish between failures

rooted in plan quality and failures to execute plansrooted in plan quality and failures to execute plans

Traditionally, we assume that all failures are execution Traditionally, we assume that all failures are execution

failures, whereas the vast majority of failures to complete failures, whereas the vast majority of failures to complete

planned work are rooted in the quality of plans.planned work are rooted in the quality of plans.

133

who is the who is the ““Last PlannerLast Planner””??

ideallyideally……..

everybody!everybody!



Management in Management in

MultiMulti--Project Project

situationssituations

the TOC approachthe TOC approach

134

THE BITHE BI--TUBE TUBE

PROJECTPROJECTANALYSISANALYSIS

can construction can construction

become different?become different?

look at this!!look at this!!

135

LEAN THINKINGLEAN THINKING

ANDAND

TECHNOLOGYTECHNOLOGY

LEAN THINKING AND TECHNOLOGYLEAN THINKING AND TECHNOLOGY

11stst –– PeoplePeople

Remember! In a lean environment:Remember! In a lean environment:

22ndnd –– Methods (lean)Methods (lean)

33rdrd -- TechnologyTechnology

136

LEAN THINKING AND TECHNOLOGYLEAN THINKING AND TECHNOLOGY

technology cul-de-sac

technology cul-de-sac

137


IN OTHERIN OTHER

PRINCIPLESPRINCIPLES

PROJECTPROJECT--DRIVEN INDUSTRIESDRIVEN INDUSTRIES

Spot the Waste!Spot the Waste!

Steel FabricationSteel Fabrication

EXAMPLES

138


ANDAND

SAFETYSAFETY

nonnon--lean safety exampleslean safety examples

139


ANDAND

THE CONTINUOUSTHE CONTINUOUS

PROCESS INDUSTRYPROCESS INDUSTRY

LEAN THINKING AND THE LEAN THINKING AND THE

CONTINUOUS PROCESS INDUSTRYCONTINUOUS PROCESS INDUSTRY

Targets:Targets:

c) c) assure the Flowassure the Flow: through TPM & other technical : through TPM & other technical

Maintenance disciplinesMaintenance disciplines

b) b) pull the Flowpull the Flow: relate Operations to the Market: relate Operations to the Market

a) a) balance the Flow:balance the Flow: through Continuous Flow techniquesthrough Continuous Flow techniques

140

LEAN THINKING AND THE LEAN THINKING AND THE

CONTINUOUS PROCESS INDUSTRYCONTINUOUS PROCESS INDUSTRY

��eliminate the residual waste around the Floweliminate the residual waste around the Flow

Additional Target:Additional Target:

EXAMPLES

The Control Room syndromeThe Control Room syndrome

141

Lean ThinkingLean Thinking

the Value Chainthe Value Chain

andand

Lean Thinking and the Value ChainLean Thinking and the Value Chain

How can things be How can things be

structured so that the structured so that the

enterprise does nothing enterprise does nothing

but add value, and does but add value, and does

that as rapidly as possible?that as rapidly as possible?

all thatall that’’s left are the time, the people and the s left are the time, the people and the

activities that add value for the customeractivities that add value for the customer

all the intermediate steps, all the intermediate time all the intermediate steps, all the intermediate time

and all the intermediate people are eliminatedand all the intermediate people are eliminated

key issueskey issues

supply s

ide

supply s

ide

dema

nd sid

e

dema

nd sid

e

142

RELATIONSHIP WITH RELATIONSHIP WITH

SUPPLIERS IN A SUPPLIERS IN A

WORLDWORLD--CLASS CLASS

ENVIRONMENTENVIRONMENTsupply s

ide

supply s

ide

143

VENDORS CLASSIFICATIONIV CLASS - "NORMAL"

SUPPLIER

III CLASS - "PERFORMING" SUPPLIER II CLASS - "INTEGRATED"

SUPPLIER (Operational Comakership)

I CLASS - "PARTNER"

SUPPLIER

(Business Comakership)

RELATIONSHIP

DEVELOPMENT

CONVENTIONAL APPROACH° Negotiation focused on price° Minimal infos & quality specs° Conflictual interests° Little reciprocal trust° Governed by contractual power° Single-order purchases with little exception° Short-term purchases horizon° Many suppliers

"IMPROVEMENT" APPROACH° Primary attention to quality/price ratio° Large infos° More reciprocal trust° Many open orders & extensive purchases planning° Start-up of long-term relationship° Reduction of suppliers number (= selection)° Some experimental comakership° Target: vendor's improvement° Decentralization of production and responsibilities

OPERATIONAL INTEGRATION° Great attention to "total" process° Long-term relationship regularly (+- yearly) reviewed° Open infos (including market's feed-back)° High level of trust° Mutually agreed vendor's "recovery" procedures° Price fluctuations allowed with mutually agreed criteria° Systematic (and jointly defined) vendor's Kaizen programs (price-quality-process)° Open orders as a rule° Consulting/training services to Vendor

STRATEGIC INTEGRATION° Great attention to common business° Open doors, open "value-chain" and open info system° Benchmarking together° Full trust: vendor thrives on vendee's business and vendee thrives on vendor's support to business° Top level agreement on policies and strategies° Proper business partnership with some suppliers

QUALITY

ISSUE

° Vendor responsible only for conformity to specs° Systematic acceptance Inspections/Tests° Max guarantee only on a 100% test basis (sampling/AQL techniques and free-pass carry high risk)° Some inspections at source° Some "formal" certification (2nd and 3rd party) of vendor's QA system

° Extensive certification of vendor's QA system° Vendor's rating on "absolute" quality° Start-up of "auto-certification" programs° Vendor responsible for conformity to use° Quality improvement programs imposed to vendor° Mix tests on acceptance/free-pass

° Extensive auto-certification° Focus on vendor's CWQC system° Quality guaranteed and auto-certified with jointly agreed criteria)° Vendor's global responsibility on consequences of non-conformities (product liability)° Free-pass with/without bonus° Integrated improvement programs (QA – TQM)

° Maintenance of auto- certification° Focus on GWQC° Co-design of quality specs and QFD° Free-pass as a rule° Vendor's globally responsible for end-user's satisfaction

LOGISTICS

° Buffer stocks: safe/necessary ° Start-up of JIT supplies (mainly Kanban)° Some buffer stocks

° JIT supplies (frequent/small-lots) directly to productive areas° No buffer stocks° Some synchro-supplies

° Global vendor's integration in vendee's productive flow – synchro supplies only° Common informatics and planning

PRODUCT-

PROCESS

DEVELOPMENT

° None/minimal vendor's involvement ° Some vendor's involvement° Vendee's imposition of vendor's process improvement programs

° Co-engineering & Co-design° Some common use of QFD° Some joint R & D investments

° Extensive, joint PPD and QFD° Extensive, joint R & D investments° Global involvement

EVALUATION

& RATING

° Price° Quality: compliance to specs° Reliability & Performance° Evaluation of QA system (2nd party certification)

° QA system evaluation/audit° Rating based on "absolute" quality° Evaluation/Rating based on Total Costs of (non-) quality

° Global Process capability audit° Evaluation and rating at Total Costs

° Global Vendor's Organization audit

MOTTO "Shop around for the best price" "Let's improve together" "The productive process starts at

vendor's premises"

"Let's make business together"

144

comakershipcomakership

the present and the futurethe present and the future

International Lean Supply Chain International Lean Supply Chain -- exampleexample

145

THE CLIENT IS THE THE CLIENT IS THE

KEY:KEY:

THE NEW DIMENSIONTHE NEW DIMENSION

dema

nd sid

e

dema

nd sid

e

146

the customerthe customer-- and marketand market--driven enterprisedriven enterprise

Enterprise committed to provide excellent quality Enterprise committed to provide excellent quality

and competitive products and services to satisfy the and competitive products and services to satisfy the

needs and wants of a wellneeds and wants of a well--defined market segmentdefined market segment

• Customers’ voice is of primary

importance

• Professional treatment/attention to

clients

• Courteous and responsive attitude

• Empathy and respectful attitude

• Clients are irrational: a pain in the

neck

• Customers: an obstacle to

Profitability

• Hostile and careless attitude

• “Take it or leave it” attitude

Attitudes toward

Customers

• Customers-driven

• Management by facts and data

• Product-driven

• Management by opinion

Basis for

Decision-making

• Buyer’s Market

• Targets at achieving increased Market

Share and long-term financial growth

• Seller’s Market

• Careless about lost customers (due

to poor customers’ satisfaction)

Marketing focus

• Customers’ satisfaction

• Market share

• Long-term Profitability

• Level of Quality & Productivity (Value)

• Bottom-line Financial Results

• Quick return on Investments

Measure of

Performance

• Long-term focus

• Projective Management

• Planning Process: strategically driven by

customers

• Short-term focus

• Reactionary Management

• Planning Process: through

Management by Objectives

Product and

Service Planning

CustomerCustomer--driven enterprisedriven enterpriseTraditional enterpriseTraditional enterprise


147

• Provided according to customers’

requirements and needs

• Provided according to Enterprise’s

requirements/policy

Quality of

Product/Services

• Targeting at errors and defects

prevention

• Targeting at errors and defects

detection

Productive

Process Mangmt.

• Extensive teamwork practice between

Process Owners, Suppliers and

Customers

• Customers, Suppliers and

Operations people have nothing in

common

Style of

Operations

• Fastest time-to-market products and

services

• Customers can wait for products and

services

Product and

Service Delivery

• People are the enterprise’s greatest

resource

• People are an infinite source of

problems and a burden on the

enterprise

Orientation to

Personnel

• Continuous Process Improvement

• Conscious Performance Management

• Crisis Management

• Management by fear and intimidation

Improvement

Strategy

CustomerCustomer--driven enterprisedriven enterpriseTraditional enterpriseTraditional enterprise


148

149

Lean Thinking is not only concerned with Lean Thinking is not only concerned with

waste eliminationwaste elimination from processesfrom processes……

……to the contrary, Lean Thinking is very much to the contrary, Lean Thinking is very much

concerned with concerned with conservation of valueconservation of value and and

enhancement/increase of valueenhancement/increase of value to the customersto the customers……

……for that, we must focus onfor that, we must focus on……..

ECONOMYECONOMY

OF THE NEWOF THE NEW

AND THREATSAND THREATS

OPPORTUNITIESOPPORTUNITIES

the market is, as always, full of opportunitiesthe market is, as always, full of opportunities…………..

150

OPPORTUNITIES: 1)OPPORTUNITIES: 1)

OPPORTUNITIES: 2)OPPORTUNITIES: 2)

151

OPPORTUNITIES: 3) the longest chainOPPORTUNITIES: 3) the longest chain


……oh, yes!!!!oh, yes!!!!spot an opportunityspot an opportunity

152


think like a customer!think like a customer!

andand

the Marketing/Sales Processthe Marketing/Sales Process

Lean Thinking applied to the Marketing/Sales ProcessLean Thinking applied to the Marketing/Sales Process

Marketing/Sales = process to Marketing/Sales = process to ““manufacturemanufacture”” customerscustomers

the process must include only those activities which are the process must include only those activities which are

necessary to add value from a customernecessary to add value from a customer’’s perspectives perspective

Process output: loyal, profitable, repeat customersProcess output: loyal, profitable, repeat customers

drilldrill

PUSH vs. PULLPUSH vs. PULL

example: leads generation (trade shows..)example: leads generation (trade shows..)

ONEONE--PIECE FLOWPIECE FLOW

market research market research ““in batchin batch”” ------ > >

continual research on a continual basiscontinual research on a continual basis

CELLULAR MANUFACTURINGCELLULAR MANUFACTURING

permanent, Xpermanent, X--functional work teams, dedicated to process functional work teams, dedicated to process

leads, QFD outputs, etc. in oneleads, QFD outputs, etc. in one--piece flow mode piece flow mode

153


Office WorkOffice Work

andand

open debateopen debate

the deployment of TPM the deployment of TPM

principles in other principles in other

industrial sectorsindustrial sectors


154

Lean Thinking Lean Thinking

6 Sigma6 Sigma

vs.vs.

LT vs. 6 SigmaLT vs. 6 Sigma

155

LT vs. 6 Sigma: one possible LT solutionLT vs. 6 Sigma: one possible LT solution

LT vs. 6 Sigma: one possible LT solutionLT vs. 6 Sigma: one possible LT solution

156

Lean Thinking Lean Thinking

principles in principles in

developing new developing new

products/servicesproducts/services

a slight design mistakea slight design mistake

157

WORLD CLASS PRODUCT DEVELOPMENTWORLD CLASS PRODUCT DEVELOPMENT

The main The main ““StateState--ofof--thethe--ArtArt”” Disciplines are:Disciplines are:

�� QFD (Quality Function Deployment)QFD (Quality Function Deployment)

�� FMEA (Failure Mode and Effect Analysis)FMEA (Failure Mode and Effect Analysis)

�� FTA (Fault Tree Analysis)FTA (Fault Tree Analysis)

�� DE (Design of Experiments)DE (Design of Experiments)

�� MU (Multivariate Analysis)MU (Multivariate Analysis)

�� VA (Value Analysis) VA (Value Analysis)

�� VE (Value Engineering)VE (Value Engineering)

�� CE (Concurrent/Simultaneous Engineering)CE (Concurrent/Simultaneous Engineering)

essential: INTEGRATED APPROACHessential: INTEGRATED APPROACH

158

...another ...another ““TerminatorTerminator”” of of

Adam Smith theoriesAdam Smith theories……......

CONCURRENT ENGINEERINGCONCURRENT ENGINEERING

159

Lean Thinking and Software DevelopmentLean Thinking and Software Development

Manufacturing wastes translated to software development

Overproduction = Extra FeaturesOverproduction = Extra Features

Inventory = RequirementsInventory = Requirements

Extra Processing Steps = Extra StepsExtra Processing Steps = Extra Steps

Motion = Finding InformationMotion = Finding Information

Defects = Defects = DefectsDefects Not Caught by TestsNot Caught by Tests

Waiting = Waiting = WaitingWaiting, Including Customers, Including Customers

HOMEWORK???HOMEWORK???

..oh, yes!!!..oh, yes!!!

160

““LEANLEAN”” STATUS STATUS

SELFSELF--ASSESSMENTASSESSMENT

a worlda world--class class

projectproject--driven driven

enterpriseenterprise

161


THE EXCELLENCE TARGETTHE EXCELLENCE TARGET

IMPROVING PERFORMANCE: IMPROVING PERFORMANCE:

THE LEAN KAIZEN APPROACHTHE LEAN KAIZEN APPROACH

the bottomthe bottom--up approach to Performance Improvement has a name:up approach to Performance Improvement has a name:

162

systematic and methodical approach, topsystematic and methodical approach, top--

driven, codriven, co--ordinated and supported, ordinated and supported,

to continuous improvement towards an to continuous improvement towards an

"excellent, lean status" target in various "excellent, lean status" target in various

organisational and operational areas;organisational and operational areas;

in a "stepin a "step--byby--step" fashion;step" fashion;

and with deep, active involvement of those and with deep, active involvement of those

concerned in each improvement areaconcerned in each improvement area

today's KAIZENtoday's KAIZEN

increase in effectiveness increase in effectiveness

and/or efficiency of processesand/or efficiency of processes

(all the rest might be spurious, fictitious (all the rest might be spurious, fictitious

improvement)improvement)

IMPROVEMENTIMPROVEMENT

��PREVENTIVE ACTIONSPREVENTIVE ACTIONS

��CORRECTIVE ACTIONSCORRECTIVE ACTIONS

throughthrough

163

the piers the piers

of Kaizenof Kaizen

164

KAIZEN & TEIKAIZEN & TEI

.....if he only knew how.....!.....if he only knew how.....!

.....the person doing the job .....the person doing the job

knows far more than anyone knows far more than anyone

else as to the best way of else as to the best way of

doing that job, and therefore is doing that job, and therefore is

the one person best fitted to the one person best fitted to

improve it....improve it....

165

KAIZEN IS TEAMWORK!!!KAIZEN IS TEAMWORK!!!

verticallyvertically

horizontallyhorizontally

internallyinternally

externallyexternally

KAIZEN IS PROBLEMKAIZEN IS PROBLEM--SOLVINGSOLVING

THEORY AND PRACTICE THEORY AND PRACTICE

methodologies to approach methodologies to approach

problems and complexity:problems and complexity:��KK--T methodT method

��Brainstorming, Lateral Thinking & other Creative P/S Brainstorming, Lateral Thinking & other Creative P/S

techniquestechniques

��Critical Examination & other "global" ProblemCritical Examination & other "global" Problem--SolversSolvers

166

KAIZEN IS DECISIONKAIZEN IS DECISION--MAKING MAKING

ABILITY AND PRACTICE ABILITY AND PRACTICE

methodologies to approach the methodologies to approach the

decisiondecision--making process:making process:

��Archer methodArcher method

��optimisation methodsoptimisation methods

��elimination and evaluation chartselimination and evaluation charts

��decision trialdecision trial--balance methodbalance method

��matrix techniquesmatrix techniques

a marketing problema marketing problem


……..oh, yes!!!..oh, yes!!!

167

KAIZEN IS INTELLIGENT USE KAIZEN IS INTELLIGENT USE

OF THE OLD & NEW TOOLS FOR OF THE OLD & NEW TOOLS FOR

LEAN IMPROVEMENTLEAN IMPROVEMENT

��Data Collection Chart, Scatter Diagram, Control ChartsData Collection Chart, Scatter Diagram, Control Charts

��Graphs, Histograms, Pareto Diagram, ABC analysisGraphs, Histograms, Pareto Diagram, ABC analysis

��Cause and Effect (Ishikawa) Diagram, Relations Diagram Cause and Effect (Ishikawa) Diagram, Relations Diagram

Affinity Diagram, CEDAC, Arrow Diagram, FlowAffinity Diagram, CEDAC, Arrow Diagram, Flow--ChartsCharts

��Tree (Systematic) Diagram, Matrix Diagrams, PTree (Systematic) Diagram, Matrix Diagrams, P--M M

AnalysisAnalysis

��FMEA/FMECA MethodsFMEA/FMECA Methods

��Radar (Spider) ChartsRadar (Spider) Charts

��and all LEAN THINKING tools and techniquesand all LEAN THINKING tools and techniques

KAIZEN IS KAIZEN IS

CULTURAL CULTURAL

CHANGECHANGE

168

teamteam--workwork

does it work?does it work?

teamteam--workworkteamteam--workwork

teamteam--workwork

TeamTeam--work work –– the solution?the solution?

The principle of working in team to tackle The principle of working in team to tackle

all sorts of organisational and technical all sorts of organisational and technical

issues has been discovered several issues has been discovered several

decades agodecades ago……..

Project TeamsProject Teams

……and and MeetingsMeetings: Board Meetings : Board Meetings -- Management Management

Meetings Meetings –– Department Meetings Department Meetings –– InterInter--functional functional

Meetings Meetings –– Production Planning Meetings Production Planning Meetings –– etc. etc.etc. etc.

BUT:BUT:

InterInter--functional Teamsfunctional TeamsImprovement TeamsImprovement Teams

ReRe--engineering Teamsengineering Teams

Quality CirclesQuality Circles

Kaizen TeamsKaizen Teams

6 Sigma Teams6 Sigma Teams……

169

…….do you recall at least one .do you recall at least one

meeting from which you (or meeting from which you (or

someone else) came out someone else) came out unun--

satisfiedsatisfied? or a bit ? or a bit frustratedfrustrated? or ? or

possibly possibly stressedstressed??


……not to mentionnot to mention

confusedconfusedirritatedirritated

annoyedannoyed

intimidatedintimidated

perturbedperturbed bored to deathbored to death

humiliatedhumiliated

angryangry

horrifiedhorrified

exhaustedexhausted terrorisedterrorised……..???..???

BUT:BUT:

Meetings and teamMeetings and team--work are work are

not necessarily associated not necessarily associated

with high involvement and with high involvement and

effective improvement nor do effective improvement nor do

represent the sole/best answer represent the sole/best answer

to kaizen improvementto kaizen improvement…………


170

……oh, yes !!!!oh, yes !!!!

team exercising team exercising

TeamTeam--work work –– does it work?does it work?


the nerdthe nerd

Lean Thinking and PEOPLELean Thinking and PEOPLE

and: the importance of Top Management commitment and: the importance of Top Management commitment

in implementing a LT programin implementing a LT program

171

PEOPLE IN INDUSTRYPEOPLE IN INDUSTRY

Fishermen (Hunters)

Engine (train) Drivers

Doctors

Farmers

172


……if a person at the top is the most important, see what if a person at the top is the most important, see what

happens if a person at the bottom walks awayhappens if a person at the bottom walks away……..

173

As people's best motivations come from their As people's best motivations come from their own own

ideasideas, TEI stimulates people to release, in a , TEI stimulates people to release, in a

channelled mode, their channelled mode, their own creative energyown creative energy

for the benefit of the Customers, the Organisation's for the benefit of the Customers, the Organisation's

and their ownand their own

TEI is TEI is everyoneeveryone in the Organisation deeply involved, in the Organisation deeply involved,

using own using own brain powerbrain power, in , in problemproblem--solvingsolving, , learning, ,

continuous improvementcontinuous improvement activities, and systematic activities, and systematic

search for opportunitiessearch for opportunities

in a nutshell

HIGH (TOTAL) INVOLVEMENTHIGH (TOTAL) INVOLVEMENT

TEI is a system for organisational and people's TEI is a system for organisational and people's

changechange. .

It is a system that improves people's working It is a system that improves people's working

conditions by their own actions.conditions by their own actions.

TEI is a system for direct participation of people to TEI is a system for direct participation of people to

Organisation's success, by letting them take Organisation's success, by letting them take

responsibilitiesresponsibilities. .

TEI wants people to be responsible for their own TEI wants people to be responsible for their own

motivation and their own improvement: simply by motivation and their own improvement: simply by

letting them know the letting them know the scorescore........


in a nutshell

174

TEI is a system that TEI is a system that

stimulates people to stimulates people to

become become responsibleresponsible agentagent

for their own for their own securitysecurity..


in a nutshell

…….responsible.responsible agentagent for for

their own their own securitysecurity……..

the worm

175

TEI represents a continuous TEI represents a continuous

challengechallenge to people, by letting them to people, by letting them

set the path to their set the path to their fulfilmentfulfilment at at

work, work, enjoyingenjoying the very process......the very process......


in a nutshell

high involvement in manufacturinghigh involvement in manufacturing……..

176

multimulti--skill, multiskill, multi--functionfunction……..

high involvementhigh involvement……..

177

high involvementhigh involvement……..

getting highly involvedgetting highly involved……..

178

involvement: special cases involvement: special cases

involvement: special cases involvement: special cases

Necessary rolesNecessary roles……. . with simple job descriptions (1 with simple job descriptions (1 –– 2 items)2 items)

Retailing personnelRetailing personnel

Service establishments personnelService establishments personnel

Public officialsPublic officials

BottomBottom--ofof--thethe--ladder personnelladder personnel

179

The IWT triumph!The IWT triumph!

a worlda world--class exampleclass example

180

a practical model for TEIa practical model for TEI

181


andand

the LEARNING the LEARNING

ORGANISATIONORGANISATION

Public Public enemyenemy n. 1:n. 1:

brain lazinessbrain laziness

……and thinkingand thinking

THE SECOND INDUSTRIAL REVOLUTIONTHE SECOND INDUSTRIAL REVOLUTION

182

thinking and other featuresthinking and other featuresbefore midnightbefore midnight

Business:

specialisationspecialisation-formatted

after midnightafter midnight

Business:

integrationintegration-formatted

Automatic ThinkingAutomatic Thinking

(associated to specialised

jobs)

and/or

ExternallyExternally--guided Thinkingguided Thinking

(from Management above)

Hard, creative thinking

Value-generating thinking

SelfSelf--integratedintegrated Thinking

Both lead to:

Reactive ThinkingReactive Thinking (reaction to

the ambient/work before the

person)

Leads to:

Projective/ProProjective/Pro--active Thinkingactive Thinking

(controls and manages the

ambient/work before the

person)

Based on brainbrain--lazinesslaziness :

needs external authorityexternal authority

to be governed

Based on own brainbrain--

powerpower : has the authority

internally

Suitable for fragmented

bits of work (work

formatted Adam Smith

style)

Suitable for

integrated flow of

work (a process)

before midnightbefore midnight after midnightafter midnight

thinking and other featuresthinking and other features

183

MaintainsMaintains only (it may even

destroy...)BuildsBuilds, achieves, generates

wealth

Keeps people busy at making

things going (deceiving

oneself to be working hard)

Makes people stick to value

generation (working hard for

production of Value)

Self-integrated Thinking

discouraged (dangerous !!)

Self-integrated Thinking

promoted (essential !!!)


PushPush functioning, top-

driven/imposedPullPull functioning, market/client-

driven


COMPLEXITY: COMPLEXITY:

many people using specialised

thinking to control many

others using automatic and/or

externally-guided thinking.

Absurdity.

SIMPLICITYSIMPLICITY:

fewer people using hard,

integrated thinking,

empowered to manage value

generating processes - simply

controlled (in-process and in

real-time control through basic

indicators).


Based on “DELEGATIONDELEGATION"

which, in the majority of

cases, is not transmission of

responsibilities, but

evaporation of responsibilities

(fresh-air effect).

Based on EMPOWERMENTEMPOWERMENT

which is integral/total transfer

of responsibilities.

Empowering = transferring a

business mind to all bodies

concerned with value

generation


184

Leads to stagnationstagnation (un-

integrated, cul-de-sac

responsibilities): people

stagnating into day-to-day

problems that get trapped with

Leads to wealthwealth (integrated

responsibilities & areas of

purpose): people

concentrating only onto value

generation


88--5 attitude5 attitude/mentality because

of little purpose or none at all Entrepreneurial attitudeEntrepreneurial attitude

because of areas of purpose

Personnel have little/no

purpose, therefore little/no

MOTIVATIONMOTIVATION. The typical

employee does not know,

does not feel, only has cul-de-

sac responsibilities....

Entrepreneur's attitude,

approach, MOTIVATIONMOTIVATION,

knowledge and sensations

because of areas of purpose


Generally leads (in a

conscious or un-conscious

mode) to employees'

DISSATISFACTIONDISSATISFACTION - cul-de-

sac responsibilities are the

best guarantee of frustration,

stress and dissatisfaction

Generally leads to employees'

JOBJOB--SATISFACTIONSATISFACTION -

integrated responsibilities are

the essence of real values,

happiness and excitement

Motto: "...work is a necessary

evil..."

Motto: "...work is a gymnasium

in which people can practise,

test themselves, evolve,

develop, learn, grow, and be

happy and proud of the value

they produce..."



185

Knowledge, associated to

specialised work, is the most

valuable asset: it must be

maintained, preserved and

protected

Knowledge is not as

important. The ability to

"learn" and the opening to

"learning" and perfecting

knowledge are most

important.

Traditional, static

Organisation

Dynamic, Learning

Organisation



ENTERPRISE MANAGEMENT ENTERPRISE MANAGEMENT

in a lean environmentin a lean environment

““simple is beautiful!simple is beautiful!””

““small is beautiful!small is beautiful!””

186

small is beautiful!small is beautiful! -- 11

PaulanerPaulaner BrBrääuhausuhaus

Clock TowerClock Tower

Cape Town WaterfrontCape Town Waterfront

187

188

189

small is beautiful!small is beautiful! -- 22

Bakeries todayBakeries today

190

191

small is beautiful! small is beautiful! -- 33

2 small SA enterprises2 small SA enterprises

192


williamwilliam

williamwilliam

193


edithedith

edithedith

194

TOTAL EMPLOYEE TOTAL EMPLOYEE


Beyond TEI

Why do all traditional HR management and Why do all traditional HR management and

motivational techniques somehow fail?motivational techniques somehow fail?

Management by Objectives, Effective Leadership, Diversification,Z Theory, Situational Leadership, Effective Communication, Zero-based-Budgeting, Decentralisation, Team Building, Management by Exception, Dale Carnegie techniques, Interpersonal Skills,

Quality Circles, Excellence, Restructuring, Portfolio Management, Interactive Management, Matrix Organisational Structure, Total

Quality Management, ISO 9000..... and One-Minute Managing......

TEI and beyond - TEP: TOTAL EMPLOYEE PERFORMANCE

195

“It is not a matter of applying

fine psychology, or of following

pipe-smoking top notch

consultants’ refined theories….

the philosophythe philosophy


…..it is just a matter of

understanding that time is due to

go back to basics: few, but clear,

core concepts - few, but well

identified, values – and, most of

all, simple, basic methods......



196

Give a chance to people to perform, to be job-

satisfied, and to re-gain professional dignity,

by empowering them to be totally responsible

and accountable for a complete process, of

which they can understand the entity, the

parameters, the importance, the inputs, the

outputs, the client, the associated value, and

the performance measuring criteria.



….give people a chance to be

craftsmen in their workshop,

or traders in their shop, in

strict contact with their

customers....



197

…give people a chance to be

proud of the value they

generate, of the wealth they

create for themselves, and for

others......”



Value ProducersValue Producers

…let people be responsible..



198

Value ProducersValue Producers

…let people be responsible..

why worldwhy world--class enterprises class enterprises

do not suffer from the do not suffer from the

absenteeism plague? absenteeism plague?


199

….shift

from: TGIF

to: TGIM!!to: TGIM!!


a practical model for TEP

200

are there any examples of are there any examples of

TEP actually operational?TEP actually operational?

is the TEP scenario only suited to small businesses?is the TEP scenario only suited to small businesses?

201

The growth of an Enterprise does not The growth of an Enterprise does not

increase the number of valueincrease the number of value--

generating processes nor the generating processes nor the

number of basic responsibilities. number of basic responsibilities.

It is the way we have changed and It is the way we have changed and

manipulated industry that has manipulated industry that has

created an enormous number of created an enormous number of

““dummydummy””, fictitious responsibilities , fictitious responsibilities

(and functions).......(and functions).......

If the business volume grows, there are If the business volume grows, there are

various ways of dealing with it rather various ways of dealing with it rather

than building pyramids. For instance:than building pyramids. For instance:

��a manufacturing enterprise a manufacturing enterprise ““without a factorywithout a factory””

��““parallelparallel””, horizontal processes, horizontal processes

��one or more one or more ““replicareplica”” of the original businessof the original business

��a a ““company without a companycompany without a company””

202

a a ““company without a factorycompany without a factory””

““ReplicasReplicas””, , ““Parallel ProcessesParallel Processes””, ,

““Companies without a CompanyCompanies without a Company””, and , and

other similar, new business styles have other similar, new business styles have

one very important feature in common: one very important feature in common:

they are they are

untouchable by untouchable by

SmithSmith’’s viruss virus

203

…….so, you would like your people to be:.so, you would like your people to be:

ResponsibleResponsible

EfficientEfficient

Serious and reliableSerious and reliable

Dedicated to their workDedicated to their work

Committed to improvementCommitted to improvement…………

CostCost--consciousconsciousAccountableAccountable

????????

????????????

…….so, you would like your people to be:.so, you would like your people to be:

Efficient Efficient –– Responsible Responsible -- CostCost--

conscious conscious -- Dedicated to their work Dedicated to their work --

Serious and reliable Serious and reliable –– Accountable Accountable ––

Committed to improvementCommitted to improvement………… --

???? ???? -- ????? ????? -- ??????????????????????????

204

..in a nutshell: you would like your people to..in a nutshell: you would like your people to

performperform

This is possible: it can be achievedThis is possible: it can be achieved……

…….it depends on you, .it depends on you,

entrepreneurs and managersentrepreneurs and managers……....

..it..it’’s just your choice..s just your choice..

But:But: there are 3 necessary stepsthere are 3 necessary steps……

205

…….you would like your people to be: responsible .you would like your people to be: responsible –– accountable accountable ––

efficient efficient -- dedicated to their work dedicated to their work –– committed to improvementcommitted to improvement…………

THE 3 NECESSARY STEPSTHE 3 NECESSARY STEPS

1) Understand the environmental 1) Understand the environmental


2) Be prepared to abandon the 2) Be prepared to abandon the


3) Have a clear direction and tell 3) Have a clear direction and tell

people about itpeople about it……..

4) 4) …….and something more.and something more……....

the Pygmalion effectthe Pygmalion effect

BELIEVE IN BELIEVE IN

PEOPLE!PEOPLE!

Mc Mc GregorGregor and the Xand the X--Y theoryY theory

206

LegaLega del del filofilo dd’’orooro

http://www.legadelfilodoro.itNon-profit Organisation – Osimo – Italy

Assisting the blind, deaf and dumb.

Communication: MALOSSI

207

…….so you would like your people to be: responsible .so you would like your people to be: responsible –– accountable accountable ––


THE CHOICE IS YOURSTHE CHOICE IS YOURS……

methods

traditional

responsibilities

limited

waste

involvement

high

little/none

Job Satisfaction??Job Satisfaction??

…….so you would like your people to be: responsible .so you would like your people to be: responsible –– accountable accountable ––


THE CHOICE IS YOURSTHE CHOICE IS YOURS……

methods

lean

value added

high

responsibilities

high

involvement

Job Satisfaction!!Job Satisfaction!!

high

208

Lean ThinkingLean ThinkingA course presented by Carlo A course presented by Carlo ScodanibbioScodanibbio

Organised by:Organised by:

CREDITSCREDITS

The documentary material of this course is based on papers and wThe documentary material of this course is based on papers and works of:orks of:

and on personal experience and development by Carlo and on personal experience and development by Carlo ScodanibbioScodanibbio

MUSIC BYMUSIC BY

Bach Bach –– Barry Barry -- Beethoven Beethoven –– Grieg Grieg –– HaydinHaydin -- Mozart Mozart –– MuffatMuffat –– Paganini Paganini -- Ponchielli Ponchielli ––

RimskyRimsky--Korsakov Korsakov -- Rossini Rossini –– R. Strauss R. Strauss -- Verdi Verdi -- Vivaldi Vivaldi –– Wagner & othersWagner & others

Copyright Copyright ©© Carlo Carlo ScodanibbioScodanibbio 20092009

Lean ThinkingLean Thinking““““““““a cultural revolutiona cultural revolutiona cultural revolutiona cultural revolutiona cultural revolutiona cultural revolutiona cultural revolutiona cultural revolution””””””””

209

THE LEAN ENTERPRISE (Lean Thinking)

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