Womack  Modern Vs  Lean  Management
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Womack Modern Vs Lean Management

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“The Challenge of Lean Management” is a detailed comparison of Modern Management versus Lean Management.

“The Challenge of Lean Management” is a detailed comparison of Modern Management versus Lean Management.

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    Womack  Modern Vs  Lean  Management Womack Modern Vs Lean Management Presentation Transcript

    • The Challenge of Lean Management 10 th Lean Manufacturing Conference Wroclaw, Poland James P. Womack, Chairman, Lean Enterprise Institute June 22-23, 2010
    • What Does Lean Need Now?
      • To think about the type of manage-ment system we need in order to make lean deployment sustainable.
      • A good place to start: Comparing modern with lean management.
      • (As we do this, please ask yourself what type of management system your organization has and what type it needs for a lean transformation.)
    • Two Choices for Managers:
      • Modern management
      • (The Alfred Sloan School of Management)
      • versus
      • Lean management
      • (The Eiji Toyoda Gemba School of Management)
      • Let’s perform a side-by-side comparison of the principles of these schools.
    • Modern vs. Lean Management
      • Primary focus on vertical functions and departments, as mechanisms of optimization and control.
      • Primary focus on horizontal flow of value across organizational units to the customer.
    • Modern vs. Lean Management
      • Clear grants of managerial authority by leaders of organizational units (vertical delegation).
      • Clear grants of managerial responsibility to solve problems (especially cross-functional, horizontal problems) over which managers have no authority, within vertical organizations (including Toyota.)
    • Modern vs. Lean Management
      • Line managers judged on end-of-the-period results for their span of control, increasingly financial in recent times.
      • Line managers judged on the state of their process , with rapid feedback loops with next-level management.
      • “ If the process is right the results will be right. Manage by process instead of results.”
    • Modern vs. Lean Management
      • Planning & direction from top down , with bosses giving answers:
      • Leads to compliance focus: “Make your plan or explain the variances.”
      • Planning & direction in circular feed-back loops , with bosses asking questions:
      • “ What do you think the important issue is? Is there a problem?”
      • “ What’s the root cause of the problem?”
      • “ What do you think the potential solutions (countermeasures) are?”
      • “ What countermeasure do you think we should select?”
      • “ Who must do what when where to test this countermeasure?”
    • Modern vs. Lean Management
      • Conviction from the top that a good plan , once properly implemented, produces the desired results . (Justifying the compliance focus.)
      • Conviction that all plans are experiments and can only be evaluated through the scientific method in the form of PDCA, followed by appropriate countermeasures.
      • “ Planning is invaluable; plans rapidly become worthless .”
    • Modern vs. Lean Management
      • Generalist line mangers , rotated frequently with weak process knowledge , supported by deeply knowledgeable technical staffs (including finance.)
      • Line mangers on extended assignments, with deep process knowledge , lacking the need for extensive staff support.
    • Modern vs. Lean Management
      • Managers developed through formal education , often ex-company (e.g., management schools, consulting firms) or sink-or-swim rotations.
      • Managers developed through in-company gemba learning through repetitive A3 analysis embedding PDCA, led by mentors throughout their careers.
    • Modern vs. Lean Management
      • Decisions made far from the point of value creation , by analyzing data. (“Conference room management.”)
      • Decisions made at the point of value creation , by converting data into facts (“Go see, ask why, show respect” gemba management.)
    • Modern vs. Lean Management
      • Problem solving and improvement conducted by staffs , often through programs.
      • Problem solving and improvement conducted by line managers , often responsible for cross-function teams, with staffs reserved for unique technical problems.
    • Modern vs. Lean Management
      • Standardization (if any) of activities conducted by staffs , often with little gemba interaction and little auditing.
      • Standardization of (all) activities conducted by line managers in collaboration with work teams, with frequent auditing by directly observing actual work not just work standards.
    • Modern vs. Lean Management
      • “ Go fast ” as a general mandate:
      • “ Jump to solutions” (with the consequence of going slow through the complete cycle of product & process development, launch & fulfillment.)
      • “ Go slow ” as a general mandate:
      • “ Start with the problem” and consider many potential counter-measures in parallel (with higher costs & more time at the beginning, followed by lower costs, less time & happier customers at the end.)
    • Modern vs. Lean Management
      • Strong emphasis on the vertical flow of authority, looking upward toward the CEO.
      • Performance usually evaluated at single points.
      • Strong emphasis on the horizontal flow of value, looking toward customers.
      • Performance evaluated in terms of optimizing the whole process (all of the points).
      • Control reconciled with flexibility!
    • Conclusion from This Comparison
      • Modern management isn’t conducive to creating sustainable lean enterprises.
      • We need to transition to lean management (or something better!) through PDCA.
      • How can we you do this?
    • What Is the Value-Creating Work of Management?
      • Gaining agreement across the organization on what’s important for customers and the enterprise (purpose), through strategy deployment (a process).
      • Deploying on important strategy deployment initiatives, solving problems (every day), & evaluating proposals from lower levels, with A3 analysis (a process).
    • What Is The Value-Creating Work of Management?
      • Creating basic stability throughout the organization, by means of standardized work with standardized management (a process).
      • Educating the next generation of managers, by enaging direct reports in endless cycles of strategy deployment, A3 analysis, & standardized management (a process!)
    • Methods of Lean Management
      • To employ at different levels:
      • Strategy deployment – to align and engage employees on the few critical issues – the value-creating work of top management in particular.
      • Note: The transition from modern to lean management might be an objective identified by strategy deployment!
    • Strategy Deployment X-Matrix
    • Methods of Lean Management
      • A3 analysis – to deploy top-level mandates, solve daily problems as they arise, and (very important) evaluate proposals from lower levels of the organization – the value- creating work of mid-level management in particular.
      • Never a solo assignment; always done in vertical and horizontal dialogue. (“An excuse to have a constructive conversation about where you are and where you need to go.”)
    •  
    • Methods of Lean Management
      • Standardized management of standardized work with continuous kaizen – to stabilize the organization and permit steady improvement – the value-creating work of front-line management in particular.
    • Methods of Lean Management
      • Educating the next level of management to create lean managers through continuing dialogue – the value-creating work of every level of management every day!
      • Indeed, the most important value-creating work of managers?
    • In the Absence of Lean Methods
      • The predominant “work” of management is re-work – work- arounds for things gone wrong.
      • In other words, most of the “work” of modern managers is actually waste!
    • An A3 Project for Your Management Team
      • Analyze your organization’s management system.
      • Characterize its current condition.
      • Determine the ways it hinders lean deployment. (The Gap.)
    • An A3 Project for Your Management Team
      • Identify the most promising countermeasures. (The Plan.)
      • Test these countermeasures. (The Do.)
      • Assess the results. (The Check/Reflect.)
      • Make changes as necessary. (The Act/Adjust.)