1. Lean Thinking Evolution
E&Y Lean Course - Introduction
Lean Thinking Evolution

2. Origins of Lean Thinking...?
WW2 Boeing B17 bomber
Venetian ship builders
Carthaginian navy
My great uncle’s WW1 Waltham watch
18th century RN frigate gun
Colt Armoury
Lean Thinking Evolution

3. FW Taylor & Scientific Management
Development of Lean
FW Taylor & Scientific Management
W Edwards Deming
Henry Ford
Frank Woollard
Schonberger
TWI
Lean Thinking Evolution
Masaaki Imai

4. “The Machine that Changed the World”
Term lean first popularised in 1990 book
Womack, Jones & Roos - MIT study
Illustrated performance gap between Japanese & western automotive industries
superior performance due to “lean production”
‘Lean’ -ie used less of everything
HUMAN EFFORT, CAPITAL, SPACE, STOCK, TIME - in all activities
Lean Thinking Evolution

5. Lean Thinking Development & Latest Thinking
Lean Thinking (Womack & Jones, 1996)
Demonstrated application in other sectors
Described range of tools & techniques
Lean ‘vocabulary’, eg
Kaizen, Kaikaku, Hoshin Kanri
JIT, Muda
“Lean Principles” put forward
“Great packaging job!”
Lean Thinking Evolution

6. Lean Thinking Development & Latest Thinking
Five Lean Principles
Specify what creates value from the customers perspective
Identify all steps across the whole value stream
Make those actions that create value flow
Only make what is pulled by the customer just-in-time
Strive for perfection by continually removing successive layers of waste
How valid are the 5 principles today?
Lean Thinking Evolution

7. Evolution of Lean Thinking into 21st Century
“From Prescription to Contingency”
Four broad stages identified:
Awareness
Shop Floor
Value Stream
Value System
See paper “Learning to Evolve”
Lean exists at 2 levels
Strategic
Operational
Strategic universally applicable; operational tools not universally applicable
Lean production for the shop floor tools (TPS); lean thinking for strategic value chain dimension
Lean Thinking Evolution

8. Development of Lean Thinking Sectors
Auto Manufacturing
OEMs, supply chain, 1st , 2nd tier
1990
Other Manufacturing
aerospace, other manufacturing, process industries
Distribution
Construction
logistics, transportation, retailing
After Sales Services
repair & maintenance, back office
Food Chain
Consumer Services
Public Services
healthcare, defence, local govt ?
financial services, insurance, legal
Lean Thinking Evolution

9. “Lean Solutions” Solve my problem completely Don’t waste the my time
Provide exactly what I want
Deliver value where I want it
Supply value when I want it
Lean Thinking Evolution

10. Lean in Services...Issues
Lean Thinking Development & Latest Thinking
Lean in Services...Issues
Impact of characteristics of services on approach to process improvement
Also wide diversity / types of services
Nature of value in services
Added complexity in public services
Applying tools developed for the world of manufacturing????
Difficulty in classifying services
Development of new avenues of thought, use of concepts, techniques from other disciplines
Lean Thinking Evolution

11. “Systems Thinking”
John Seddon
Lean Thinking Evolution

12. Sustainable System Lean Management
Lean Thinking Development & Latest Thinking
Sustainable System Lean Management
Lean Management
Not going to talk about the above the waterline elements
Lean Thinking Evolution
Source: P. Hines, P. Found, G. Griffiths & R. Harrison, Staying Lean, 2007

13. Top 10 Reasons for Lean Failure
Lean Thinking Development & Latest Thinking
Top 10 Reasons for Lean Failure
Lack of a clear executive vision
Lack of an effective communication strategy
Failure to create and communicate a real sense of urgency
Poor consultation with stakeholders
Lack of structure methodology and project management
Failure to monitor and evaluate the outcome
Failure to mobilise change champions
Failure to engage employees
Absence of a dedicated and fully resourced implementation team
Lack of sympathetic and supportive Human Resources policies
Lucey, Bateman and Hines, 2005
Ask for comments – does this resonate with you?
Lean Thinking Evolution
Development & Latest Thinking
Lean Thinking & Contact Centres

14. Fake Lean & Real Lean: Learning from The Toyota Way
Respect for People
Continuous
Improvement
Emiliani, 2007
Fake Lean
“90% of problems in business are caused by management, 10% by the workman”
F.W Taylor 1912
Real Lean
Lean Thinking Evolution

15. Lean Thinking Development & Latest Thinking
Jim Womack
Lean Thinking Evolution

16. Lean Leadership Dan Jones Lean Summit, November 2011
Lean Thinking Evolution

17. So What is Lean About? (more than just waste..)
Lean Thinking Development & Latest Thinking
So What is Lean About? (more than just waste..)
Muda (Waste)
Mura (Unevenness)
Muri (Burden)
Lean Thinking Evolution
Advanced Lean Service

18. Muda, Muri, and Mura Muda - waste - non value added Muri – overburden
pushing a machine, person, or process beyond natural limits. Leads to long queues.
Mura - unevenness - non steady flow;
slow down but work steadily. Launch work evenly
Mura and Muri lead to Muda
Lean Thinking Evolution

19. The Term ‘Lean’ Much debate about its name Negative connotation
‘lean & mean” etc
Lean’s association with downsizing
W&J ‘regret’ the label
Some confusion
“lean sigma”, “lean manufacturing”
BUT: it really does not matter what you call it!
Continuous Improvement
xxx Production System, The Unipart Way etc
Systems Thinking
Lean Thinking Evolution

20. Lean Thinking Development
Lean Thinking Development & Latest Thinking
Lean Thinking Development
Underlying thinking not suddenly invented /emerged
‘Lean’ ways have always existed
Several academics & industrialists have contributed to its development
W&J framework important
Evolving nature & emerging themes
‘Traditional’ lean ≠ service lean
Sustainability a key issue
lean management >>> lean leadership
Need for a contingent approach
Not prescriptive
Lean Thinking Evolution

21. Lean Thinking Development & Latest Thinking
Lean Thinking is …
…a Growth Strategy…an Improvement Strategy
Understanding & focus on customer value & demand
Improving quality
Creating capacity to do more
By Removing Waste
Improving the flow of productive activities - throughput
Reducing lead time
Continuous improvement
Taking a whole system perspective
Lean Thinking Evolution

22. A Lean ‘Business System’…
“A lean business system aims to create strategic, process and functional excellence for organisations.
An effective lean strategy creates/releases capacity and focuses on activities that are valuable to customers and stakeholders, promotes effective flow and a culture of continuous improvement and engagement.”
Lean Thinking Evolution

23. Lean Thinking…In Short
Delivering appropriate customer value with the minimum of resources.
Lean Thinking Evolution

24. Holistic Perspective on Lean
Holistic, ‘systems’ approach to lean improvement
Lean  more than simply improving processes through the application of tools
Successful lean organisations…
employ lean strategies, apply lean leadership
understand the need for an engaged, empowered workforce
Many different ‘lean’ methodologies
Organisations require their own, bespoke solution for sustained implementation
a contingent approach to lean
Lean Thinking Evolution

25. Bicheno’s 5 Revised Principles
Value
for Customers, Stakeholders, and Environment
Waste (Muda)
Value demand vs Failure Demand
System
end-to-end value streams
holistic, integrated, with feedback
Flow
Add value without interruption
Muri (overburden and capacity overload), Mura (unevenness, variation, amplification.)
Perfection
People
Lean Thinking Evolution

26. Lean Principles Revised
Bob Emiliani
Lean Thinking Evolution

27. Lean Thinking Development & Latest Thinking
New Thinking…?
“There is nothing new under the sun”
Ecclesiastes 1:9
“There is nothing new under the sun…
…but there are lots of old things we don't know”.
Ambrose Bierce, The Devil's Dictionary
Lean Thinking Evolution