Friday, April 24, 2009

A Roadmap to Lean: Integrate the Supply Chain

Part 9 of a 10 part series
In order for an organization to transform from its current state of operation to one of a Lean Enterprise Organization, a two phase approach – Planning and Implementation - can be utilized. The fourth step in the Implementation phase is to Integrate the Supply Chain into the lean ways of the organization. In this step, we want to:
  • Evaluate Each Supplier and Customer as to Applicability of Lean Concepts
  • Define “Quality at the Source” and “Pull” Demand Concepts
  • Select a Few Key Partners for a Pilot Progra
  • Build Mutually Beneficial Relationships with Supply Chain Partners
  • Share Information and Synchronize Planning
  • Develop and implement an Education Program for your Supply Chain Partners

To be most successful, organizations need to extend the lean thinking concepts from the shop floor to the entire supply chain including, the front office, customers and suppliers. Transferring the benefits of Lean to your suppliers and customers can greatly enhance the benefits of your own Lean efforts. By using your results and facilitator skills to motivate them, these supply chain partners will be able to improve their operations so that they can coordinate their activities with yours and accurately deliver what you need to improve your success. Key deliverables of this phase include:

  • Definition of Mutual Benefits
  • Lean Education Materials Adjusted to Each Supply Chain Partner
  • Lean Education and Training for Facilitators of Partner Organizations
  • A Roll-out Plan for Targeted Supply Chain Partners
  • Key Metrics of Success Related to Quality, Cost and Delivery Performance
  • Implementation of Lean Concepts and Techniques across the Entire Value Chain

To be honest, working with suppliers will be easier than working with customers because with suppliers, you are the customer and they may be more willing to listen. However, don’t let customers slip by the wayside. One of the key concepts of Lean is that of “Pull Demand”, and who better to include in this effort than the customer who pulls from you. Success in having your supply chain partners effectively implement Lean means that your organization can eliminate the wasteful buffers that exist between your organization and theirs. The next and last stop in this roadmap is to Measure Continuous Improvement.

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Friday, April 17, 2009

A Roadmap to Lean: Transform the Information System

In order for an organization to transform from its current state of operation to one of a Lean Enterprise Organization, a two phase approach – Planning and Implementation - can be utilized. The third step in the Implementation phase is to transform the information system within the organization. In this step, we want to:

  • Define What Implications the Lean Objectives Have on the Information Systems
  • Document As/Is – To/Be Information Flows
  • Identify Visual Methods that can be Used in Lieu of the Information System
  • Determine Which Systems Need to Change to Support Non-Visual Requirements
  • Create a Plan for Making the Changes Necessary to the Information System
  • Monitor Cut-over and Provide Support


Sometimes, when an organization is implementing changes to their information system, such as implementing an ERP system, Lean principles can be applied. Sometimes, when implementing Lean, limitations are reached since the information system needs to be changed. Either way, addressing the needs of the information system early in the process will reduce the roadblocks that arise during the effort. With the main premise behind Lean being to eliminate waste and support value added activities, the information system needs to be revised so that it is not causing wasteful activities in and of itself. When evaluating the information that is being collected within the system, it is important to ask “How am I actually going to use this information and what value does it provide?” If good answers do not come of this evaluation, it is likely that there is no need to have it in the system so revisions should be made to eliminate it. In this step of transforming the information system, key deliverables are:

  • Definition of “Must-Have” vs. “Nice-to-Have” Information
  • A Plan of Action to Eliminate/Replace Non-Essential Information
  • Written Procedures and User Training Documentation
  • Training of Users for Visual and Non-visual Techniques
  • Specification, Coding and Testing of Software Changes
  • Tracking of Open Issues for both System and Procedural Issues
  • Updated Performance Measurements

There are some who think that if Lean is implemented, there is no need for an information system to be used, however, most experts who understand the whole business process will agree that the two go together to support the whole business and must be integrated in order for the organization to be successful in its Lean efforts. However, this step of transforming the information system will often times include the need to change how one thinks of the business process requirements altogether, but then that is the whole purpose behind the effort of Going Lean. The next stop in this roadmap is Integrating the Supply Chain.

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Friday, April 10, 2009

A Roadmap to Lean: Manage the Culture Change

Part 7 of a 10 part series

In order for an organization to transform from its current state of operation to one of a Lean Enterprise Organization, a two phase approach – Planning and Implementation - can be utilized. The second step in the Implementation phase is to manage the culture change that comes with going Lean. In this step, we want to:

  • Identify the cultural impediments that must be overcome
  • Impart the vision of Lean to the entire organization
  • Make sure that “Continuous Improvement” and Quality are part of the culture
  • Get middle management on board
  • Identify and win over the “Grumblers”

Attaining the paradigm shift that is required throughout the entire organization is the biggest challenge to succeeding at Going Lean. Along with developing the idea of Continuous Improvement, Employee Empowerment is one of the most critical issues for success. It has been stated “…. the major inhibitor to get a lean environment is the inability to trust the workforce and really give up a certain level of control in order to give people the power to implement their own ideas and be respected as experts in their area….”. Although this is a statement regarding the managerial side of the issue, it must be noted that it is as difficult of a change for the regular workers as it is for the managers. You can’t just give empowerment to people, they have to take it, and many do not know how to be empowered.

Management needs to monitor the impact of Lean on the organization and make Continuous Improvement, Quality and Empowerment part of the culture. Points to remember in this process are:

  • Resistance to change IS THE NORM, not the exception
  • People must be informed, empowered, willing and able in order for changes to be made effectively
  • Personal and organizational values affect how people react to change
  • People go through the change process in stages and go through these stages as individuals

Managing the culture change is vital to success in Being Lean. The consequences of not doing so include having managers who don’t supply resources or those who filter important information, employees become distracted and loose interest, valued employees leave the organization, or unforeseen obstacles arise. By succeeding in this aspect alone will mean that all of the unknowns and obstacles can be overcome as they arise. Transforming the information system is the next stop on our roadmap.

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Friday, April 3, 2009

A Roadmap to Lean: Implement Rapid Change

Part 6 of a 10 part series
In order for an organization to transform from its current state of operation to one of a Lean Enterprise Organization, a two phase approach – Planning and Implementation - can be utilized. The first step in the Implementation phase is to implement a process of rapid change by following the overall plan developed so far. In this step, we want to:
  • Form the Kaizen event for a specific improvement
  • Train work teams on new methods
  • Observe the process being addressed
  • Develop the Takt Time
  • Develop improvement ideas and a detailed action plan
  • Cut-over and monitor results

A Kaizen event is a team activity aimed at rapid use of lean methods and tools to eliminate waste in particular areas of business processes. The purpose of the Kaizen team is to investigate, analyze, and evaluate each process and every operation in order to add value and eliminate waste. This is usually done by a small group of people directly involved with the process being analyzed, however, it is also a good idea to include someone unrelated to the process in order to provide an un-biased opinion. Deliverables from this task can include:

  • Value stream mapping of the specific process
  • Work flow re-design and re-positioning of equipment
  • 5s - organizing the work place and standardizing processes
  • Standardized work for tasks being performed
  • Setup Reduction and shortened change over times
  • Visual “pull” for materials
  • Error proofing techniques for tasks
  • One piece flow (or at least significantly reduced batch sizes)
  • Cellular manufacturing / processing

The Kaizen event itself typically takes three to four days where the team develops solution ideas and a plan of action which is typically implemented within a month or two after the event is complete. In this way, results are quick and noticeable throughout the organization and the benefits from the Lean process are realized quickly so that the improvements directly affect the bottom line of the organization. Because of this quick return aspect of Lean Implementation, this process is a great way to make improvements during tough economic times and when the times improve, the results are that much more magnified. In addition to addressing the mechanics of going Lean, Managing the Culture Change is the next step in our roadmap.

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