Premium Essay

Lean Thinking

In: People

Submitted By uobstudent
Words 1518
Pages 7
LEAN THINKING CHANGES THE FOCUS OF MANAGEMENT New way of Thinking and Acting for an Entire Organization

Boeing "Everett Plant" Case Study

Boeing Everett Plant, Largest Building in the World

LEAN THINKING CHANGES THE FOCUS OF MANAGEMENT
Way of Thinking and Acting for an Entire Organization
"Definition, Purpose, Process, People"

Introduction
The core idea is to maximize customer value while minimizing waste. Simply, lean means creating more value for customers with fewer resources.
A lean organization understands customer value and focuses its key processes to continuously increase it. The ultimate goal is to provide perfect value to the customer through a perfect value creation process that has zero waste.
To accomplish this, lean thinking changes the focus of management from optimizing separate technologies, assets, and vertical departments to optimizing the flow of products and services through entire value streams that flow horizontally across technologies, assets, and departments to customers.
Eliminating waste along entire value streams, instead of at isolated points, creates processes that need less human effort, less space, less capital, and less time to make products and services at far less costs and with much fewer defects, compared with traditional business systems. Companies are able to respond to changing customer desires with high variety, high quality, low cost, and with very fast throughput times. Also, information management becomes much simpler and more accurate.
Definition of Lean Thinking
Lean thinking started originally and developed in Toyota’s post Second World War manufacturing operations - known as the Toyota Production System – under the guidance of its chief engineer, Taiichi Ohno. These spread through its supply base in the 1970’s, and its distribution and sales operations in the 1980’s.on their production line…...

Similar Documents

Premium Essay

Lean Thinking

... is to dissect the nature of lean thinking, by investigating the definition of the term lean production and the methods and goals that associate with this concept. In addition to that, this essay will explain into detail how the lean management style differs from the other popular management concepts. As such, the article aims at giving a clear presentation of lean thinking and production and the manner in which they influence the business operations. This will happen through a review of the contemporary literature on the term lean, and a summary of the principles and practises associated with lean thinking as well as the stated purpose of the management style in event management operation. Based on this an in depth evaluation of the validity of lean thinking will be made in line with effective event management operations. Literature review Lean is often a short-term waste reduction and cost cutting technique. Lean thinking, therefore, is set of cost reduction toolkits that form the basis of a programme or initiative. The fundamental concept of creating a successful lean business system lies in achieving the desires of customers at the time they need it (Womack and Jones, 1996). As such, this implies the pursuit of perfect quality of products as well as effective time delivery of services and products. In addition to that, lean thinking aims at limiting the risk, by ensuring that it is at its absolute minimum. The characteristics of lean practices involve a number......

Words: 2580 - Pages: 11

Premium Essay

Lean Thinking

...Lean Thinking in Health Care Lakeshia R. Dingle Grand Canyon University: HCA-240 May 14, 2016 Lean Thinking in Health Care “Health care is big business that has a major impact on our nation’s economy” (GCU Lecture 1). It is one that is highly regulated by both federal and state level governments as well as that of accrediting agencies. Lean Thinking In the 1950s Toyota came up with the idea of lean thinking which is a set of functioning ideas and techniques that helps generate the greatest importance for individuals by decreasing waste and delays” (Feeney, 2015). The purpose of this systematic approach was to change the establishments thought process and value, which would eventually lead to the conversion of the establishment culture and behavior over a period of time. It put emphasis on the consideration of the client’s needs, staff participation and constant enhancement. It may be used as a means of “identifying and eliminating “non-value add” actions and activities to decrease “waste” and afford enhanced organization performance and volume” (Feeney, 2015). For-Profit versus Non-Profit Organizations Will there be differences between how for-profit organizations (versus nonprofit organizations) are impacted? Lean thinking is all about providing the correct items to the correct location, at the correct time, in the exact numbers, while being flexible and open to change and minimizing waste. The key principle is to generate an increment of value with less......

Words: 1087 - Pages: 5

Premium Essay

Lean Thinking

...Plug Factory Lean Project HU3 Group Team Members: Abdias de Paiva Alessandra Saito Caio Ferreira Felipe Saraiva Peleteiro Francisco Oliveira Gabriel Schreinert Tatiane Borchers Yuji Fugii November 2015 Summary Introduction 3 Current State Map 4 Spaghetti Diagram 7 7 Cycle Analysis of each process step 9 Standard Work Sequence 11 Current State Work Balance Chart 12 Future State Map 13 Future State Work Balance Chart 13 Demonstration of 5S Implementation 13 Kanban Implementation 14 Results 14 Reference List 16 Introduction According to Womack, lean thinking is a way to do more with less, less human effort, less equipment, less time, and less space, while coming closer to the customer’s expectance. Lean also provides a way to make work more satisfying by providing feedbacks on efforts to convert waste into value. In this work, an initial process of plug assembly was analyzed and a lead time of 11 minutes and 30 seconds was identified, with 80% of defective product. A rectification is required for this organization stay in business. The customers requires plugs without defects, and a Takt time of 10 Secs and lead time of 60 Secs with max WIP level of at each station of 1. In order to achieve this goal, a team was formed to improve the plug assembly process, using tools of lean thinking, such as, Standard Work, 5S and Kanban implementation. This report will pass through all steps to overcome those challenges, explaining the team......

Words: 1589 - Pages: 7

Premium Essay

Lean Thinking

...An NHS Confederation leading edge report Lean thinking for the NHS Daniel Jones and Alan Mitchell, Lean Enterprise Academy UK A report commissioned by the NHS Confederation The voice of NHS leadership The NHS Confederation brings together the organisations that make up the modern NHS across the UK. We help our members deliver better health and healthcare by: • influencing policy and the wider public debate on the full range of health and health service issues • supporting health leaders through information sharing and networking • working for employers to improve the working lives of staff and, through them, to provide better care for patients. For more information on our work, please contact: NHS Confederation 29 Bressenden Place London SW1E 5DD Tel 020 7074 3200 Fax 020 7074 3201 Email enquiries@nhsconfed.org www.nhsconfed.org Disclaimer All views and opinions in this publication are those of the author and are not the authorised views or opinions of the NHS Confederation. The NHS Confederation shall not be liable for any indirect, special, consequential, or incidental damages or defamation arising from any views, opinions or information contained within this publication. Registered Charity no. 1090329 Published by the NHS Confederation © NHS Confederation 2006 ISBN 1 85947 127 7 Ref: BOK 56701 Acknowledgements This report was written by: Daniel Jones and Alan Mitchell, Lean Enterprise Academy UK with David Ben-Tovim, Flinders Medical Centre, Australia......

Words: 10739 - Pages: 43

Premium Essay

Lean Thinking

...ESD Working Paper Series Towards An Integration Of The Lean Enterprise System, Total Quality Management, Six Sigma And Related Enterprise Process Improvement Methods Kirkor Bozdogan Center for Technology, Policy and Industrial Development Massachusetts Institute of Technology Cambridge, MA USA 02139 Tel. 617 253-8540 bozdogan mit.edu ESD-WP-2010-05 August 2010 esd.mit.edu/wps ESD Working Paper Series Towards An Integration Of The Lean Enterprise System, Total Quality Management, Six Sigma And Related Enterprise Process Improvement Methods Kirkor Bozdogan Center for Technology, Policy and Industrial Development Massachusetts Institute of Technology Cambridge, MA USA 02139 Tel. 617 253-8540 bozdogan mit.edu ESD-WP-2010-05 August 2010 esd.mit.edu/wps TOWARDS AN INTEGRATION OF THE LEAN ENTERPRISE SYSTEM, TOTAL QUALITY MANAGEMENT, SIX SIGMA AND RELATED + ENTERPRISE PROCESS IMPROVEMENT METHODS Kirkor Bozdogan # Center for Technology, Policy and Industrial Development, Massachusetts Institute of Technology, Cambridge, MA USA 02139 August 5, 2010 Key Words: Lean manufacturing; just-in-time-production (JIT); Toyota Production System (TPS); lean enterprise system; total quality management (TQM); six sigma; lean six sigma; theory of constraints (TOC); agile manufacturing; business process reengineering (BPR); enterprise change and transformation; evidence-based management practices Abstract: The lean enterprise system, total quality management, six......

Words: 10496 - Pages: 42

Premium Essay

Organizational Effectiveness Via Lean Thinking

...Operational Effectiveness and Efficiency via Lean Thinking Robert Moyler California Miramar University December 18, 2013 Abstract The purpose of this study is to explore the lean thinking system across operational processes of organizations. This paper hopes to examine lean thinking methods and some alternative approaches to discovering the most effective process and best practices for efficiency across multiple layers of any organization as it transforms raw materials into a finished product. In addition, this paper will explore how senior level executives can deploy lean thinking systems across its operations and internal processes to drive end profits and increase margins for an organization. Through articles, research, and evaluating previous studies to define and determine the best lean thinking to produce a strong value oriented product or service that produces positive financial results. This in turn, will create an effective yet efficient atmosphere that is all encompassing benefiting the organization, consumers, and the environment in which the organization is apart of. Operational Effectiveness and Efficiency via Lean Thinking Introduction Due to turbulent economic times and stronger competitive forces in the market place, it has become increasingly harder for firms or organizations to operate effectively and efficiently in the era we live in today. For this reason, this paper weighs heavily on lean thinking systems to arrive at effective and......

Words: 3050 - Pages: 13

Premium Essay

Interview

...Going Lean in Health Care By Julie Truax Harrison College—Online HCM 4400 January 27, 2012 Going Lean in Health Care The article provides key concepts in lean thinking, applying lean thinking to health care, and terminology. It also talks about how Japan is already using lean management principles in their manufacturing companies. IHI thinks that lean principles are already being successfully applied to the delivery of health care. It begins with driving out waste so that all work adds value and serves to the customer’s needs. They also are identifying value-added and non-value-added steps in every process by beginning a journey towards lean operations. Leaders need to create an organizational culture that is receptive to lean thinking. They need to have a commitment to lean has to be at the top of their organization list and the staff also has to be on board with it in order for it to be successful. So they all need to work together to create a redesign process to improve the flow and reduce the waste. As we know health care is different from manufacturing they also have surprises in similarities like providing health care to a patient and building a care work must rely on several workers and complex processes to accomplish the tasks and to provide value to the customer. So you can look at waste of money, time, supplies, and good will can decrease value. Lean thinking means to use less to do more. Lean thinking is not a manufacturing cost reduction program, but...

Words: 552 - Pages: 3

Premium Essay

Learning to Evolve

...current issue and full text archive of this journal is available at www.emeraldinsight.com/0144-3577.htm IJOPM 24,10 Learning to evolve A review of contemporary lean thinking Peter Hines, Matthias Holweg and Nick Rich Lean Enterprise Research Centre, Cardiff Business School, Cardiff, UK Keywords Lean production, Learning organizations Abstract The application of lean thinking has made a significant impact both in academic and industrial circles over the last decade. Fostered by a rapid spread into many other industry sectors beyond the automotive industry, there has been a significant development and “localisation” of the lean concept. Despite successful “lean” applications in a range of settings however, the lean approach has been criticised on many accounts, such as the lack of human integration or its limited applicability outside high-volume repetitive manufacturing environments. The resulting lack of definition has led to confusion and fuzzy boundaries with other management concepts. Summarising the lean evolution, this paper comments on approaches that have sought to address some of the earlier gaps in lean thinking. Linking the evolution of lean thinking to the contingency and learning organisation schools of thought, the objective of this paper is to provide a framework for understanding the evolution of lean not only as a concept, but also its implementation within an organisation, and point out areas for future research. 994 International Journal of......

Words: 7575 - Pages: 31

Premium Essay

Lean

...SCHOOL OF BUSINESS University of Aarhus MASTER THESIS Challenges in Lean implementation Successful transformation towards Lean enterprise Ana Valentinova Kovacheva Supervisor: Ana Luiza Lara De Araújo MSc in Strategy, Organization and Leadership January 2010, Aarhus 2 Abstract The paper is based on a systematic literature review that examines how the implementation of Lean could bring value to the organization processes and contribute for achieving an operational excellence. Different organizational factors which have importance in the implementation process, are thoroughly examined. Key success factors that enhance the implementation process are identified - human resource practices, management style, organizational strategic vision, organizational culture, external partnerships. The research outlines the challenges that companies experience when they change their business model towards implementing a new to the company management system – Lean concept. For better understanding of the term the paper suggests definitions from the authors acknowledged in the field. Part of the research considers some critical points that impede the implementation of Lean. The conclusions are drawn upon considering lean as a complete business system, which change the way organization thinks in striving for a competitive advantage. Keywords: lean implementation, lean enterprise, Lean, challenges, process improvement 3 Table of......

Words: 19306 - Pages: 78

Premium Essay

Theorists Who Impact Revolutionary Change in the Workplace Tiara Garrett

...Leading Change by John P. Kotter, 1996 , Harvard Business Press The Lean Enterprise Model Lean thinking is a concept originated by the Japanese initially used in their manufacturing industry. This approach came to life by the Toyota company after World War II. It describes the concept do more with less, with its primary principle being "eliminate unnecessary waste, maximize value to the customer". (Holden, 2011) Lean thinking was brought to surface by James Womack and Daniel Jones. They wrote a book in the 90's called "The Machine That Changed the World : The Story of Lean Production” This book highlighted the Japanese production method as opposed to the traditional Western mass production process; showing that the Japanese had the superior performance. (Melton, 2005) This organization method can be described as a revolutionary, or transformational, change because it "requires the immediate attention of all organizational members". (Burke, 2013) In Womack's and Jones' book to follow, Lean Thinking: Banish Waste and Create Wealth in your Organisation, you're able to grasp the principles of lean. These principles are: The identification of value. The elimination of waste. The generation of flow (of value to the customer). These values and techniques are proven to not only be applicable to the manufacturing industry. The health care industry, for example, also incorporate the lean enterprise model in its revolutionary change. These theorists......

Words: 917 - Pages: 4

Premium Essay

Lean Management in Automobile Industry

...Lean Management In Automobile Industry Lean Management In Automobile Industry Arvinder Singh, Bargavi Poloju, Inderpreet Kaur, Inderjeet Kaur, Jaskaran Singh Gill Eastern Institute of Technology September 10, 2015 Abstract Lean and six sigma are widely known business improvement processes for industries /organisations these days for achieving drastic results, which are majorly cost cutting, quality maintenance and time management by specializing in processes to boost performance. Nowadays, There are some industries that are even integrating lean and six sigma into a more cohesive strategy i.e., lean sigma in order to establish even more powerful and effective process which focuses at eliminating wasteful activities and retaining most of the strengths of each activity. Lean Sigma aims to combine waste eliminating strategies of Lean Thinking with variability reducing techniques of six sigma to promote growth and increase revenue from the bottom line of organisations(M. Kumara). Lean management is outlined as a consistent and a methodical approach to determining and eliminating waste through continuous improvement, flowing the merchandise at the pull of the client in pursuit of perfection. The idea of lean management was developed for maximizing the resource utilization through reduction of waste, and eventually lean was developed in response to the unsteady and ever-competitive business organisations. For organisations to face major challenges and competition can......

Words: 4468 - Pages: 18

Premium Essay

Lean and Personal Development

...Lean For Personal Development By Salim Khan - 10/11/2012 MGT5090 Prof. R. Thompson Contents Page 1. Introduction 2 2. Lean Principals 3 3. Applying Lean in other Areas of my Life 6 4. Conclusion 7 5. References 7 1. Introduction Lean Management Defined: Lean management is a set of principles and business processes which are aimed at identifying and eliminating wasteful expenditure of resources through continuous improvement, thereby increasing value as defined by the ultimate customer. The aim of this paper is choose 3 Lean principles and then illustrate how these principals impact my personal life. Firstly I will briefly explain the fundamentals of the chosen principals and then contextualise the impact it has on my personal life via specific examples. 2. Lean Principals An article by Timothy G. Olson, President of Quality Improvement Consultants Inc. et al, 2003, says that, twenty to forty percent of company’s efforts are spent on redoing things that went wrong. Generally, time in manufacturing efforts is considered to be 90% waste and 10% value. More and more companies are realizing that applying lean practices really pays and through the guidance of their managers they are working towards profitability by improving quality, cost, and delivery. According to Don Tapping and Tom Shuker (2002:50) Lean principles focus on eliminating waste...

Words: 1558 - Pages: 7

Premium Essay

Lean Manufacturing

...LEAN MANUFACTURING Lean manufacturing is a management philosophy focusing on reduction of the seven wastes to improve overall customer value: • Over-production • Transportation • Inventory • Motion • Waiting time • Processing Itself • Defective Product (Scrap in manufactured products or any type of business.) By eliminating waste (muda), quality is improved, production time and costs are reduced. To solve the problem of waste, Lean Manufacturing has several "tools" at its disposal. These include constant process analysis (kaizen), "pull" production (by means of kanban) and mistake- proofing (poka-yoke). Key lean manufacturing principles include: • Pull processing: products are pulled from the consumer end (demand), not pushed from the production end (Supply) • Perfect first-time quality - quest for zero defects, revealing & solving problems at the source • Waste minimization – eliminating all activities that do not add value & safety nets, maximize use of scarce resources (capital, people and land) • Continuous improvement – reducing costs, improving quality, increasing productivity and information sharing • Flexibility – producing different mixes or greater diversity of products quickly, without sacrificing efficiency at lower volumes of production • Building and maintaining a long term relationship with suppliers through collaborative risk sharing, cost sharing and information sharing arrangements. Lean is...

Words: 420 - Pages: 2

Premium Essay

Top 5 Benefits of Lean Manufacturing

...Top 5 Benefits of Lean Manufacturing Jingchen Cao Oct, 4th 2014 Lean manufacturing is a management philosophy whose goal is to remove wastes and achieve perfection through kaizen with a set of lean principles and tools. The birth of lean was in Japan in Toyota around 1940s. It has many tools or techniques including Kanban, 5S, Value Stream Mapping, JIT and so on. This article will introduce you to the top 5 benefits that you should know your company is considering implementing lean manufacturing. 1. Eliminate wastes Generally, lean thinking considers 7 major forms of waste including overproduction waste, waiting time waste, transportation waste, processing waste, inventory waste, motion waste and defects waste. Lean manufacturing is an effective way for companies to investigate wastes and remove them. Then companies will abolish time spend on non value-added activities. Source: Lean Operations Handouts 2. Save Time It is true that less inventory leads shorter lead-time. Lean manufacturing generates fewer inventories and less non value-added tasks, so the lead-time will be reduced correspondingly. Furthermore, employees will work more efficiently and save more time due to implementing lean manufacturing. Standard operation process in lean manufacturing guarantees employee fewer mistakes and higher efficiency. 3. Control Quality One lean manufacturing tool is single-piece flow, which suggests working on one product at a time instead of batching and lot......

Words: 463 - Pages: 2

Premium Essay

Rubric

...BRIEF RUBRIC – LEAN SYSTEMS AT AUTOLIV Total 75 points Criteria | Unacceptable | Acceptable | Proficient | Student Score and Comments | Develops an opening paragraph that introduces the case and identifies the problem from Step 1 of the 5-Step Critical Thinking Decision Making Model. | Vaguely develops an opening paragraph that introduces the case and identifies the problem or does not have an opening paragraph.(0-3 points) | Develops an opening paragraph that introduces the case and identifies the problem and, for the most part, fulfills assignment requirements.(4 points) | Develops an opening paragraph that introduces the case and identifies the problem and demonstrates solid ability to accomplish the assignment.(5 points) | | Identifies which method of workflow is embodied in Autoliv’s system.Step 2 of the 5-Step Critical Thinking Decision Making Model. | Vaguely identifies which method of workflow is embodied in Autoliv’s system or is completely off topic.(0-7 points) | Identifies which method of workflow is embodied in Autoliv’s system and, for the most part, fulfills assignment requirements.(8 points) | Identifies which method of workflow is embodied in Autoliv’s system and demonstrates solid ability to accomplish the assignment.(9-10 points) | | Analyzes if this approach is the most suitable to its lean environment.Step 2 of the 5-Step Critical Thinking Decision Making Model. | Vaguely analyzes if this approach is the most suitable to Autoliv’s lean......

Words: 696 - Pages: 3