The Lean Enterprise

The Lean Enterprise The Lean Enterprise Removing barriers to human potentialRemoving barriers to human potential

New United Motors in 1986…

• Super cleanSuper clean• Super orderlySuper orderly• High quality productsHigh quality products• High morale workforceHigh morale workforce

New United Motors in 1986…

• How do they keep this plant so clean?• How do they keep it so orderly?• Why does the workforce look

energized and happy?• What’s happening that makes this

plant so different from others?

It’s all about human potential…

• In 1923, Henry Ford wrote a little book called, “My Life and Work.”

• This book is quite possibly one of the most important books written about manufacturing in the 20th Century.

• Why?• Because it describes the basics of a system that

38 years later some folks at MIT would call lean manufacturing.

Lessons learned from Henry Ford…

• “If there is any fixed theory—any fixed rule—it is that no job is being done well enough. The whole factory management is always open to suggestions, and we have an informal suggestion system by which any workman can communicate any idea that comes to him and get action on it.”

• “No manufacturer can say: ‘I built this business’—if he required the help of thousands in building it. It is a joint production. Everyone employed in it has contributed something to it.”

Lessons learned from Henry Ford…

• Henry Ford’s ideas later were used by Toyota, as they developed the Toyota Production System.

• Lean work processes are transforming manufacturers, and a wide variety of businesses and service organizations throughout the world. Chrysler, GM, and Ford are heavily committed to the implementation of lean processes. So are their first and second-tier suppliers.

• Lean processes are being used world-wide to transform work processes in hospitals and other healthcare facilities.

• “Lean” beliefs and practices are transforming organizations in all sectors of our economy.

Ford and lean work processes…

Lean transformations are driven by…

Some basic assumptions about the nature of work and the nature of workers…

and

Some assumptions about the degree to which workers can be trusted.

The basic assumptions undergirding mass production are quite different…

Mass production on work and workers…

– Workers only work for a paycheck and benefits. – The amount of information to which workers

have access needs to be strictly controlled.– The average worker has very limited interest in

improving work processes.– The typical worker doesn’t have the ability to

make significant individual contributions to improved product quality or productivity.

Workers are biological robots…

• Trained• Controlled• Directed

“Lean” on work and workers…

Creative

Concerned

“Lean” on work and workers…

Knowledgeable

A Partner

Basic Beliefs of Lean Organizations

• Any company’s most valuable assets are the knowledge and creativity of its workers.

• Unleashing this knowledge and creativity is the primary responsibility of management; no other responsibility trumps this one.

• Before any company builds a product or delivers a service, it has to build the knowledge of its workers.

This is what it takes to develop a lean workforce.

Developing a lean workforce…

It’s possible

It’s difficult

Managers and Supervisors are the key to success…

They can also be a barrier

Degrees of lean enthusiasm…

Developing a lean workforce…

A basic barrier to lean…

What do you think employees value?

Good Pay

Job SecurityPromotion & Growth

Good Working Conditions

Interesting Work

Tactful Discipline

Loyalty to Employees

Full Appreciation of Work Done

Help with Personal Problems

Feeling of Being in on Things

What do managers believe employees value?

1. Good Pay

2. Job Security

3. Promotion & Growth

4. Good Working Conditions

5. Interesting Work

6. Tactful Discipline

7. Loyalty to Employees

8. Full Appreciation of Work Done

9. Help with Personal Problems

10.Feeling of Being in on Things

What do employees value?

1. Interesting Work


3. Feeling of Being in on Things

4. Job Security

5. Good Pay





10.Tactful Discipline

A significant disparity…

1. Good Pay

2. Job Security



5. Interesting Work

6. Tactful Discipline




10.Feeling of Being in on Things

Managers Employees

1. Interesting Work


3. Feeling of Being in on Things

4. Job Security

5. Good Pay





10.Tactful Discipline

Driving Lean that Sticks….

Means doing first things first

At an Ernst & Young Seminar in 1984….

• Why have you only asked about tools?• Why hasn’t anyone asked about beliefs?• Why hasn’t anyone asked about values?

The Lean Enterprise Drives Lean that Sticks….

Leadership meeting

RPA Assessment

Services Overview

Build Vision

Develop strategy and Plan

Manager/Supervisor Preparation

Focused Training and Consulting Provided JIT

Coaching for SuccessDelegating for Results

Developing OthersInfluential Leadership

Leading ChangeMaking Meetings Work

Launching a Successful TeamLeading High Performance Teams

Motivating OthersBuilding Winning Partnerships

Setting Performance ExpectationsReviewing Performance Progress

Rapid Decision Making

Leadership meeting

RPA Assessment

Services Overview

Build Vision

Develop strategy and Plan

Manager/Supervisor Preparation

Lean Team Formation/Training/Workplace Transformation

Workspace and Workflow Optimization: 5S and Value Stream Mapping

Work Process Optimization: Six Sigma









The 5S System is...

Value Stream Mapping is...

The impact of 5S and VSM…

Lean teams transformed this…

To this…

Making Order and Cleanliness Unbreakable

Lean is more than orderly and clean

• Lean is about developing a work environment in which everybody is continually looking for ways to improve work processes

• Lean is about developing a work environment in which everybody is continually generating ideas about how to eliminate waste from work processes

• Lean is about fully engaging the creativity, imagination, and energy of everybody

“We build people before we build cars.”

A fully engaged workforce…

0

10

20

30

40

50

60

70

Japan 61.1 North America 0.4

Toyota Camry Plant in Georgetown, KY

10 years after 5S implementation

6,500 process improvement suggestions per year

Number of process improvement suggestions per employee/year


• Western Pennsylvania HospitalWestern Pennsylvania Hospital– Time spent between signing in and registration: 2 hours to zero.Time spent between signing in and registration: 2 hours to zero.

– Time spent registering patients: Between 12 to sixty minutes to Time spent registering patients: Between 12 to sixty minutes to three minutesthree minutes

– Number of unnecessary blood bank reports issued: Between 10 Number of unnecessary blood bank reports issued: Between 10 and 11 to zeroand 11 to zero

• Shadyside HospitalShadyside Hospital– Nurse time spent on patient-controlled anesthesia pumps: Reduced Nurse time spent on patient-controlled anesthesia pumps: Reduced

by 2,900 nurse-hours per year.by 2,900 nurse-hours per year.

– Patient fall rate: Dramatic decline. At one point, the unit went 95 Patient fall rate: Dramatic decline. At one point, the unit went 95 days without one.days without one.


• Allegheny General HospitalAllegheny General Hospital– Number of patients suffering from intravenous infections: 37 in Number of patients suffering from intravenous infections: 37 in

one year to 6 the next.one year to 6 the next.

– Deaths from intravenous infections: 19 in one year to 1 the Deaths from intravenous infections: 19 in one year to 1 the following year.following year.

• Flinders Medical Center (Australia)Flinders Medical Center (Australia)– Emergency Department waiting time down 25 percent.Emergency Department waiting time down 25 percent.

– 70 percent of patients in ER discharged within 4 hours.70 percent of patients in ER discharged within 4 hours.

– Number of patients leaving ER without seeing a physician fell by Number of patients leaving ER without seeing a physician fell by 41 percent.41 percent.


• Bolton Hospital (UK)Bolton Hospital (UK)– 70 percent reduction in the number of steps needed to complete 70 percent reduction in the number of steps needed to complete

most tasks.most tasks.

– 40 percent reduction in floor space needed.40 percent reduction in floor space needed.

– Up to 90 percent reduction in the time taken for a department to do Up to 90 percent reduction in the time taken for a department to do its job, achieved with less staff and limited technological investment.its job, achieved with less staff and limited technological investment.

– Non value added tasks reduced by 49%.Non value added tasks reduced by 49%.

– Flow time for blood samples reduced from 300 to 35 minutes.Flow time for blood samples reduced from 300 to 35 minutes.

– Reduced staff “journey” distances by 80%.Reduced staff “journey” distances by 80%.

– Identified ₤300,000 improved income in laundry through lean Identified ₤300,000 improved income in laundry through lean redesign.redesign.


It can happen…

Transformed Work Spaces

It can happen…

Transformed Work Processes

It can happen…

Transformed Workers

Lean could transform your facilities…

We’d like to partner with you in making this happenWe’d like to partner with you in making this happen

The Lean Enterprise

Business

Transcript of The Lean Enterprise