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J une 2015 | www. l eanmj . com
ARE WE BETTER OFF ALONE?
$65
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Organisations and interviews featured in this edition include: National Instruments, Umicore Autocat, Tier Link Limited, Metcam, Valeocon Management Consulting, Lincoln Financial Group, Tecla Consulting and University of Buckingham.
IN THIS ISSUE:From lean to operational excellence: studies in success: How lean has transformed over the years and spawned its shoot-offs. Are they greater than their predecessor or do they lend themselves to the improvement of all?
12 common mistakes that minimise project impact and how to protect against them: Those niggling errors all businesses make that can seriously harm the bottom line and lead a successful lean implementation to fail.
Applying LSS to save the planet: Can lean save humanity from the disaster of its own making?
The ideologies and ‘isms’ competing with lean; better with or against them?
2
Dear reader,Welcome to our summer issue of the Lean Management Journal. This month’s we’ve taken a look at how lean co-operates with other methodologies, ideologies and - those things my history lecturers lovingly referred to as - ‘isms’. But we’re not discussing 18th century political discourse, but how lean can interact with everything from other business efficiency methodologies such as operational excellence, to sustainability and green issues; a subject we covered briefly last year, but needs to be discussed in more depth.
Aside from lean being used to save the planet we have an exciting array of other articles for you in this issue. Andrew Hemmings re-joins us for part two of his take on the lean supply chain.
Thomas Bertels and Rizwan Khan comes to LMJ with a 12 point plan to fixing business processes while Balasaheb Albhar, comes in from India to see how lean and sustainability can interact. Should lean be fighting its corner in this area more vociferously? If the world needs to use less resources and care for itself more then surely waste reduction should be at the forefront of the fight against climate change?
In other articles, we are joined by Bruce Hagenau from Georgia, USA, who teaches us about how kaizen techniques helped steel fabricators Metcam to improve their bottom line and progress with new goals.
As well this month we have our next instalment of the lean diary with Joseph Ricciardelli from Tecla Consulting. Joseph goes after how to balance your chakras, engage with a healthy aura and generally look after yourself. You need to be healthy, invigorated, with a positive outlook to take on a cultural change in your organisation and here you can learn how to undertake those things without jeopardising your performance to do so.
This month we also have a review of National Instruments’ facility in Hungary, which I had the pleasure of touring.
The factory is a benchmark in lean ingenuity and in this review we look at where they manage to get lean so right.
We hope you enjoy this issue released just in time for our annual conference in Amsterdam in early July. The conference is a fantastic way of networking and learning best practice through communication and resource sharing. The industries and sectors presenting attending this year is larger than ever before and we hope you’ll be in attendance to continue to learn and contribute to the discussions. It’s all about spreading the word on lean, spreading the knowledge and spreading ideas. Have a great summer (or a cosy winter for our southern hemisphere readers) and we hope to see you there.
Andrew Putwain, Commissioning Editor.
E D I T O R ’ S L E T T E R
E D I T O R I A LCommissioning editor Andrew [email protected]
Managing editor Victoria [email protected]
Editorial directorCallum [email protected]
D E S I G NArt editorMartin [email protected] Cole [email protected]
In order to receive your copy of the Lean Management Journal kindly email [email protected] or telephone 0207 401 6033. Neither the Lean Management Journal nor Hennik Group can accept responsibilty for omissions or errors.
Terms and ConditionsPlease note that points of view expressed in articles by contributing writers and in advertisements included in this journal do not necessarily represent those of the publishers. Whilst every effort is made to ensure the accuracy of the information contained in the journal, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrieval system or transmitted in any form or by any means without prior written consent of the publishers.
CONTENTS
JUNE 2015
CO
NT
EN
TS
04 Introducing the editors
06 Lean News
08 IntroductionJoseph Paris presents this issue.
P R I N C I P L E S & P U R P O S E09 Applying LSS to save the planetBalasaheb Bhau Albhar, is the head of quality and LSS MBB at Umicore Autocat, and tackles the thorny issue of lean sustainability.
13 Overcoming barriers to adoption; the route to lean supply chain, part twoAndrew Hemmings, of Tier Link Limited brings us the second part of his ideas on the most effective way to undertake a lean supply chain.
16 12 common mistakes that minimise project impact and how to protect against themThomas Bertels and Rizwan Khan join us to analyse the mistakes all businesses make that can seriously harm the bottom line and lead a successful lean implementation to fail.
18 Continuous improvement capability: Has the training worked?Rhian Hamer and Owen Jones from University of Buckingham, return to LMJ for the follow up to the article feature in April 2014, presented at the 5th LMJAC.
2 1 L E A N D I A R Ythe leader of the future - in connection with oneself and others Joseph Ricciardelli returns with the new edition of the lean diary, exploring the one, leadership and why you should probably look after yourself a bit better.
Elizabeth House, Block 2, Part 5th Floor, 39 York Road, London, SE1 7NQT +44 (0)207 401 6033 F 0844 854 1010 www.hennikgroup.com.
Lean management journal: ISSN 2040-493X. Copyright © Hennik Group 2015. 3www.leanmj.com | June 2015
2 4 C A S E S T U D Y Finding lean in good changeBruce Hagenau, president of fabricators Metcam, shows how the firm was able to benefit from kaizen techniques.
2 8 S P E C I A L F E A T U R E From lean to operational excellence: studies in successKevin Duggan discusses how lean has transformed over the years and spawned its shoot-offs. Are they greater than their predecessor or do they lend themselves to the improvement of all?
3 1 F A C T O R Y V I S I TMeasuring quality LMJ editor Andrew Putwain visits National Instruments’ site in Hungary to see how they are taking lean to a whole new level of expertise.
3 4 O U T O F T H E B L U E In search of excellenceBill Bellows launches his new column with reviews and discussions of all things lean.
3 6 L E A N O N L I N EWe bring you all the latest lean news and discussion from the world of social media.
3 8 E V E N T SFind out about the latest lean events from all over the world.
Our experienced editorial board members contribute to the journal providing comment against articles and guiding the coverage of subject matter.
EDITORS
More information on our editorial board, their experience, and views on lean is available on the LMJ website: www.leanmj.com
I N T R O D U C I N G Y O U R
PAUL HARDIMAN Industry Forum, United Kingdom
RENÉ AAGAARDNovo Nordisk, Denmark
RENÉ AERNOUDTS Lean Management Instituut, The Netherlands
JACOB AUSTAD LeanTeam, Denmark
BILL BELLOWS President, In2:InThinking Network
DAVID BEN-TOVIM Flinders Medical Centre, Australia
JOHN BICHENO University of Buckingham, United Kingdom
GWENDOLYN GALSWORTHVisual Thinking Inc., USA
BRENTON HARDER Commonwealth Bank of Australia, Australia
ALICE LEEBeth Israel Deaconess Medical Center, USA
SARAH LETHBRIDGECardiff Business School, United Kingdom
JEFFREY K. LIKER University of Michigan, USA
JOSEPH PARISOperational Excellence Society
ZOE RADNOR Loughborough University, United Kingdom
NICK RICH Swansea University, United Kingdom
EBLY SANCHEZVolvo Group, Sweden
PETER WALSHLean Enterprise, Australia
PETER WATKINS Delphi Automotive, United Kingdom
WENDY WILSONWarwick Manufacturing Group, University of Warwick, United Kingdom
TORBJØRN NETLANDNorwegian University of Science and Technology (NTNU), Norway
STEVE YORKSTONEEdinburgh Napier University, United Kingdom
4
I s sue 3 Volume 5 | Apr i l 2014 | www. leanmj .com
RIse of the
mAchInes
Organisations and interviews featured
in this edition include:
Hewlett-Packard, Poppendieck, Edinburgh Napier
University, Lean IT Strategies, Infor, Mark Graban,
Bill Bellows, Jelena Pantic.
IN THIS ISSUE:
Can we transform IT through lean management?
Christian Verstraete, chief technologist for Hewlett-
Packard, explores how the amalgamation of varying
technology is changing business interactions and how
lean can improve the management of IT operations
and development.
The scaling dilemma: Writer, lecturer and
lean software development expert, Mary
Poppendieck,
examines ways of
sustaining efficiency
within a growing organisation.
High tech-lean tech: Edinburgh
Napier University’s Steve Yorkstone analyses the appeal
of technology, its potential to limit improvement and how
good technology has enabled visionary change.
Lean and information technology-finding the right
balance: Lean expert, Steve Bell, weighs in on how to
foster a harmonious relationship between IT and lean.
considering the role of
technology in lean.
Issue 4 Volume 4 | may/june 2014 | www.leanmj.com
leAn goes PuBlIc organisations and interviews featured in this edition include: eaton hydraulics, the uk ministry of justice, solihull
council, uk Police force, the British library, torbjørn h.
netland, john Bicheno, debbie simpson and joseph Paris.In thIs Issue:from capability to practice: head of Business change
at the uk ministry of justice, Rhian hamer, examines
continuous improvement in the public sector and how a
balanced contribution of capability, meaningful practice
and evidence is the key to transforming it.going lean the solihull way: As the public sector tries to
pay off a budget deficit, many councils are taking matters
in their own hands by cutting waste and making sensible
savings using lean practices. kim silcock, head of lean
transformation at solihull metropolitan discusses.lean enforcement: harry Barton, professor at nottingham Business school shares his findings from
his 2013 study of implementing lean in five police
forces across the uk, highlighting lean as a mechanism
to reinstate trust and confidence in policing, while
enhancing police employee engagement.the leaning library: Budget cuts and increased customer
expectations are compelling the public sector to deploy
lean nationwide. head of document delivery and customer
services at the British library, Andy Appleyard, documents
part of the 42-year-old institution’s lean journey.
Reflecting on the application of lean in the public sector.
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Issue 6 Volume 4 | August 2014 | www.leanmj.com
$65
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Organisations and interviews featured in this edition include: Synlait Farms, PO Construction, Bill Bellows, Michael Ballé, Jon Miller, Jeffery Liker, Mike Rother.
IN THIS ISSUE:Science of lean: Jeffery Liker, professor at the University of Michigan, and leadership speaker, Mike Rother, explore whether treating lean as a practical science could improve results.
Lean as folk medicine: Jon Miller, partner at the Kaizen Institute and founder of the Gemba Academy, analyses the parallels between traditional medicine
and lean theories.
Leannovation: Chairman of the Lean Academy, Dan Jones, discusses plan-do-check-act and the importance of blending action and theory.
What makes lean a science: Author Michael Ballé shares his ideas on how lean’s emphasis on individual learning makes lean theory a unique scientific process.
exploring a scientific approach to lean management
| w w w . L e a n m j . c o m
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I N T R O D U C T I O NW R I T T E N B Y J O S E P H P A R I S
8
As young children, we had an instinctive need to be close to our parents – feeling anxiety or
even a sense of abandonment if they were not within our sight. As we grew older – and whether it was geographically, intellectually, or psychologically – we would become comfortable with greater distances from what we felt were our basic truths, but almost always as stepping stones and rarely great leaps.
Think of early commanders of sailing ships always keeping sight of land until travelling ever greater distances was more predictable because of maps, navigation techniques and tools.
From the time humans learned to sharpen stones, before gaining the wisdom to attach them to sticks to improve their hunting effectiveness, to harnessing the wind and eventually the atom to leverage the energies contained therein, we have always been seeking ways of improving our lives. The one common discipline running through all these stepping-stones of advancement is the notion of continuous improvement – the increase of velocity and predictability with less human effort.
As it is with the notion of lean which, it can be argued, started with Henry Ford and the assembly line and was leveraged on a mass industrial scale during World War II.
But after World War II, there was a divergence in the way companies were run in the West as compared to the East which was largely based on the cultural differences in the structure of the social fabric. In the West, the relationship between employer and employee was largely one of command and control – about the self. Whereas in the East, this relationship was inclined to be more collaborative and about the community. This difference meant the ideas of how a modern business might operate – in an increasingly global marketplace – progressed faster in the East than in the West.
Just as the central planning of communist nations proved inferior to the distributed planning of nations that practiced capitalism; the practice of command and control in business proved inferior to those who were collaborative.
So it is with the stepping-stones of the journey that is lean. The real question, and challenge, is whether lean is an inclusive discipline or an exclusive discipline?
For instance, do those that embrace six sigma as a means to continuous improvement run contraire to the aspirations of lean? How about those who are disciples of the theory of constraints? Are PDCA, DMAIC, and OODA incompatible with one another? How about you, personally? Do you ever find yourself arguing the merits of one approach or set of tools versus the other? Is it because you are correct or is it because you like to stay close to your parents as you did when you were a child – because it’s comfortable? What if nobody was right or wrong – yet everyone was right and wrong?
We talk about creating a pull in the operations of our business. What if we tried to create a pull when it came to opportunities for improvement – with the nature of the opportunity creating the pull on the various tools, approaches, and “isms” necessary to realise the opportunity without prejudice?
After all, if lean is about improvement, then as it exists today must change for tomorrow as we move forward onto the next stepping-stone.
Love Joseph’s columns? Hear him speak at the LMJAC, July 8-9 in Amsterdam. Go to lmjannualconference.com for more details!
