Table of Contents
1 THE LEAN JOURNEY l
1.1 WHAT IS LEAN 1
1 .2 LEAN EVOLUTION 1
1.3 THE DOUBLE DIAMOND . 2
1.4 LEAN, THE S-CURVE AND INNOVATION 3
1 .5 WHERE TO START? LEAN TRANSFORMATION
FRAMEWORKS .4
1.6 VALUE STREAM MAPPING (VSM) .4
1.7 THE HOUSE OF LEAN .4
1.8 THE LEAN ENTERPRISE HOUSE .S
1.9 SHINGO PRIZE FRAMEWORK 6
1.10 THE HIERARCHICAL TRANSFORMATION FRAMEWORK.8
1.11 OTHER APPROACHES TO LEAN IMPLEMENTATION •.. 11
2 THE LEAN MINDSET 13
2.1 THE 'IDEAL WAY', 'TRUE NORTH', AND PURPOSE •.. 13
2.2 THE FIVE LEAN PRINCIPLES 13
2.3 LEAN IS NOT TOOLS- OR EVEN A SET OF INTEGRATED
TOOLS! 15
2.4 GEMBAAND GENCHI-GENBUTSU 15
2.5 PULL . 15
2.6 MUDA AND THE SEVEN WASTES 17
2.7 THE ORIGINAL SEVEN WASTES 18
2.8 THE NEWWASTES 21
2.9 LEAN IS ALL ABOUT PRODUCTIVITY 24
2.10 LEAN IS SYSTEMS THINKING 25
2.11 LEAN IS CONTINUOUS LEARNING 29
2.12 LEAN IS BOTH REVOLUTION AND EVOLUTION 29
2.13 LEAN IS 'DISTRIBUTED DECISIONS' 30
2.14 LEAN IS GREEN 30
2.15 LEAN IS COMPRESSION 31
2.16 THE 25 PRINCIPLES OF LEAN 32
2.17 THE TOYOTA WAY 35
2.18 THE DNA OF TPS: FoUR RULES AND FOUR
QUESTIONS 35
3 THE SCIENCE OF LEAN 38
3.1 THE KINGMAN EQUATION 38
3.2 LiTTLE'S lAW 42
3.3 CRITICAL WIP .43
3.4 BUFFERS 45
3.5 INVENTORY TRADE-OFF CURVES 46
4 IMPROVEMENT 49
4.1 HOW TO GET STARTED .49
4 .2 GEMBA WALKS, AND THE GEMBA .49
4 .3 IMPROVEMENT CYCLES: PDCA, DMAIC, AND 8D . .51
4.4 ROOT CAUSE PROBLEM SOLVING 54
4 .5 KATA 57
4 .6 KAIZEN 62
4.7 MESS MANAGEMENT 68
4 .8 A3 PROBLEM SOLVING AND REPORTS 69
4 .9 COMMUNICATIONS BOARD 71
4.10 ORGANIZING FOR IMPROVEMENT 73
5 MANAGING CHANGE 76
5.1 PEOPLE AND CHANGE IN LEAN 76
5 .2 SOCIO TECHNICAL SYSTEMS 76
5.3 RESPECT AND HUMILITY 77
5.4 TH'E PEOPLE TRILOGY 79
5.5 MODELS FOR CHANGE MANAGEMENT 82
5.6 CREATING THE LEAN CULTURE 90
5 .7 THE ADOPTION CURVE AND KEY PEOPLE 93
6 SUSTAINABILITY-MAKING CHANGE STICK 97
6 .1 BACKSLIDING 97
6 .2 THE FAILURE MODES OF LEAN IMPLEMENTATIONS. 98
6.3 A WORD OF WARNING ON LEAN IMPROVEMEN 102
6.4 PROCESS (AND SYSTEM) SUSTAINABI LITY 102
6.5 STAFF SUSTAINABILITY 104
7 STRATEGY AND DEPLOYMENT 109
7 .1 WHAT IS AN 'OPERATIONS STRATEGY'? 109
7 .2 FORMULATI NG AN OPERATIONS STRATEGY 109
7 .3 TRADITIONAL PLANNING 111
7.4 HOSHIN KANRI - DEPLOYING AN OPERATIONS
STRATEGY 111
7.5 'NEMAWASHI', 'HANSEl' AND 'CATCHBALL' 113
7 .6 CONCLUDING REMARKS ON POLICY DEPLOYMENT . 115
7 .7 BUSINESS MODEL GENERATION 116
7 .8 VALUE STREAM ECONOMICS : W HAT TO M AKE WHERE 117
7 .9 THE ESSENTIAL PARETOS 119
7.10 DISRUPTIVETECHNOLOGIES 122
8 PREPARING FOR FLOW 124
8 .1 DEMAND MANAGEMENT 124
8.2 DEMAND ANALYSIS 125
8 .3 VALUE STREAM ORGANIZATION 128
8.4 TOTAL PRODUCTIVE MAINTENANCE (TPM) 129
8.5 TAKT T IME, PITCH TiME, PLANNED CYCLE T IME, AND CADENCE 134
8 .6 ACTIVITY TiMING, ACTIVITY SAMPLING AND WORK ELEMENTS 135
A NOTE ON ACTIVITY SAMPLING 136
8 .7 5S 136
8 .8 VISUAL MANAGEMENT 140
8 .9 STANDARD WORK, STANDARDIZED WORK AND
STANDARD OPERATING PROCEDURES 142
8.10 TRAIN ING WITHIN INDUSTRY (TWI) 146
8 .11 CHANGEOVER REDUCTION (SMED) 148
8 .12 SMALL MACHINES, AVOIDING MONUMENTS AND THINKING SMALL 151
9 MAPPING AND ANALYSIS , 153
9 .1 WHAT IS THE AIM OF MAPPING? 153
9 .2 BEFORE YOU BEGIN MAPPING 153
9.3 INTRODUCTION AND WARNINGS 153
9.4 THE FIVE STAGES OF MAPPING 154
9.5 TYPES OF MAPS 160
9 .6 A NOTE ON INTERVENTION THEORY AND CHANGE.. 95
10 LAYOUT, CELLS AND LINE BALANCE 175
10.1 LAYOUT, CELL AND LINE DESIGN, LEAN PLANT LAYOUT 175
10.2 MAJOR TYPES OF LAYOUT: THE PRODUCT PROCESS MATRIX 175
10.3 GENERAL LAYOUT: GOOD AND NOT SO GOOD AT THE FACTORY LEVEL 175
10.4 MATERIAL HANDING: GOOD AND NoT SO GOOD AT
THE FACTORY LEVEL 180
10.5 CELLS 181
10.6 CHAKU-CHAKU CELL OR LINE 187
10.7 VIRTUAL CELLS 187
10.8 MOVING LINES AND PULSE LINES 188
10.9 ERGONOMICS 190
10.10 3P: PRODUCTION PREPARATION PROCESS 191
11 SCHEDULING LINE PROCESSES 193
11.1 DIFFERENT PROCESSES REQUIRE DIFFERENT APPROACHES TO SCHEDULING 193
11.2 GENERAL COMMENTS ABOUT SCHEDULING 194
11.3 THE LEVEL SCHEDULE 195
11.4 MASTER SCHEDULING AND FINAL ASSEMBLY SCHEDULING 196
11.5 THE TEN VALUE STREAM SCHEDULING CONCEPTS .. 196 SALES AND OPERATIONS PLANNING(&) 206
11.6 KANBAN, PULLANO CONWIP 206
11.7 (ELL OR LINE BALANCING 182
11.8 APPLYING REPETITIVE SCHEDULING 213
12 SCHEDULING BATCH PROCESSES 215
12.1 KANBAN, DRUM BUFFER ROPE, AND CONWIP 215
12.2 BUFFERS: TYPES, SIZING, LOCATION 216
12.3 THE BUILDING BLOCKS 217
12.4 SHARED RESOURCES 219
12.5 BATCH SIZING . 222
12.6 THEORY OF CONSTRAINTS AND LEAN 228
12.7 CONSTRAINTS, BOTTLENECKS AND NON-BOTTLENECK RESOURCES: THE SYNCHRONOUS RULES 228
12.8 THEORY OF CONSTRAINTS IMPROVEMENT CYCLE. 229
CONFLICTS BETWEEN LEAN THINKING, TOC AND FACTORY PHYSICS? 230
13 QUALITY 233
13.1 UNDERSTANDING CUSTOMER NEEDS: THE KANO MODEL 233
13.2 A FRAMEWORK FOR LEAN QUALITY 235
13.3 MISTAKES AND ERRORS . 235
13.4 VARIATION AND SIX SIGMA 240
13.5 COMPLEXITY 245
14 LEAN PRODUCT DEVELOPMENT 247
14.1 FOUR OBJECTIVES AND SIXTRADE-OFFS 247
14.2 LEAN IS DIFFERENT IN PRODUCT DEVELOPMENT 249
14.3 WASTES IN NEW PRODUCT DEVELOPMENT 249
14.4 SYSTEMS FOR NPD 251
14.5 DESIGN THINKING 254
14.6 MAIN LEAN DESIGN TOOLS 256
14.7ADDITIONAL TOOLS FOR LEAN PRODUCT DEVELOPMENT 262
15 CREATING THE LEAN SUPPLY CHAIN 272
15.1 WHAT IS SUPPLY CHAIN MANAGEMENT? 272
15.2 THE THREE SUPPLY CHAIN 'ENEMIES' 274
15.3 SO WHAT MAKES A SUPPLY CHAIN LEAN? .... ..... .. .. 275
15.4 DY,NAMIC DISTORTIONS-THE BULLWHIP EFFECT 275
15.5 MANAGING SUPPLIER RELATIONS 278
15.6 SUPPLY CHAIN COLLABORATION 284
15.7 LEAN LOGISTICS 285
15.8 MANAGING SUPPLY CHAIN RISK 286
15.9 ORDER FULFILMENT AND PRODUCT CUSTOMISATION 288
15.10 THE SCOR MODEL 292
15.11 MEASURING SUPPLY CHAIN PERFORMANCE 292
15.12 CREATING H IGH-PERFORMANCE SUPPLY CHAINS 292
16 ACCOUNTING AND MEASUREMENT 295
16.1 LEAN ACCOUNTING 295
16.2 PERFORMANCE MEASURES 300
16.3 THE BASIC LEAN MEASURES 302
16.4 TARGET (OSTING, KAIZEN (OSTING AND COST DOWN 303
17 LEAN BEYOND THE FACTORY FLOOR 307
17.1 THE ROLE OF CONTEXT 307
17.2 PRODUCT OR SERVICE? 307
17.3 TYPES OF SERVICES 308
17.4 A MANUFACTURING LOGIC FOR SERVICES? 308
17.5 THE SEVEN SERVICE WASTES 309
17.6 PERFORMANCE AND WORKLOAD: PARKINSON'S LAW AND SCARCITY 310
17.7 LEAN HEALTHCARE 313
17.8 LEAN FINANCIAL SERVICES 313
17.9 LEAN IT 314
17.10 LEAN CONSTRUCTION 315
17.11 LEAN PROFESSIONAL SERVICES . 315
17.12 LEAN IN THE PUBLIC SECTOR 315
17.13 LEAN IN THE OFFICE 316
17.14 LEAN START-UP 317
18 LEAN- HOW IT ALL CAME ABOUT 318
18.1LEAN BEFORE TOYOTA 318
18.2 TOYOTA: THE BIRTHPLACE OF LEAN 318
18.3 WHY DO WE CALL IT 'LEAN'? . 320
18.4 A LEAN CHRONOLOGY 322
19 FURTHER RESOURCES- WHERE TO GET HELP 326
19.1 COMPANION VOLUMES 326
19.2 (ERTIFICATION 326
19.3 RESEARCH CENTRES, RESEARCH PROGRAMMES AND
WEB RESOURCES 326
ABBREVIATIONS, 327
INDEX 329