מצגת באנגלית הסוקרת את מאפייני הסביבה הכלכלית החדשה ואת ההשפעות שלהם על הנהלות ארגונים. מאת: פרופ'' יעקב קדם - ראש החוג להנדסת תעשייה וניהול בשנקר. המצגת הוצגה בועידה השנייה ל''ניהול רזה'' בסיאטל, ספטמבר 2002

1. Lean Management Solution ConferenceLean Management Solution Conference 11
Prof. Yacov KedemProf. Yacov Kedem
Head, Dept. of Industrial Engineering and ManagementHead, Dept. of Industrial Engineering and Management
Shenkar School of Engineering and Design, IsraelShenkar School of Engineering and Design, Israel
Presented in:
2nd Lean Management Solution Conference
held by the Institute of Industrial Engineers in Seattle,
Sep. 2002

2. Lean Management Solution ConferenceLean Management Solution Conference 22
Changes caused due to economicChanges caused due to economic
and environmental shiftsand environmental shifts
GlobalizationGlobalization
Technological DevelopmentTechnological Development
Customer OrientationCustomer Orientation
Changing ConditionsChanging Conditions

3. Lean Management Solution ConferenceLean Management Solution Conference 33
 Opening avenues ofOpening avenues of
opportunities for commerce.opportunities for commerce.
 Fierce competition.Fierce competition.
 Local industries threatened by imports.Local industries threatened by imports.
 Formation of alliances and mergers.Formation of alliances and mergers.
 Improving and upgrading less developedImproving and upgrading less developed
countries.countries.

4. Lean Management Solution ConferenceLean Management Solution Conference 44
New directions are emerging in:New directions are emerging in:
Marketing (E-Commerce), E-BusinessMarketing (E-Commerce), E-Business
Tele-communicationsTele-communications
Decision Support SystemsDecision Support Systems
Industrial TechnologyIndustrial Technology
Remote LearningRemote Learning

5. Lean Management Solution ConferenceLean Management Solution Conference 55
Customers Demand!!!Customers Demand!!!
Satisfy needs and requirements ofSatisfy needs and requirements of
customers.customers.
CompetitionCompetition
Constantly improveConstantly improve
product & serviceproduct & service

6. Lean Management Solution ConferenceLean Management Solution Conference 66
Continual change in the economic andContinual change in the economic and
marketing environment.marketing environment.
The need for constant changeThe need for constant change
(management & work force).(management & work force).
Updated and upgraded product lines,Updated and upgraded product lines,
organizational structure, work methodsorganizational structure, work methods
and information systems.and information systems.

7. Technological
Innovation
Deregulation
of Business
Demographics
and
Politics
Globalization
and
Competition
Uncertainty
Turbulence
Rapid Change
Challenges of ManagementChallenges of Management

8. Lean Management Solution ConferenceLean Management Solution Conference 88
Some changes affect organizational structureSome changes affect organizational structure
Downsizing organizations
Working in teams
Outsourcing
Business Process Reengineering
Lean Management

9. Lean Management Solution ConferenceLean Management Solution Conference 99
The organization will need to adapt severalThe organization will need to adapt several
major strategies:major strategies:
Customer – Based Strategy
Higher Quality & Lower Costs
Focus on Core Competencies
Empowerment of the Work-Force
The “Virtual” Organization

10. Lean Management Solution ConferenceLean Management Solution Conference 1010
 Continuously analyzing customer needs andContinuously analyzing customer needs and
expectations.expectations.
 Quick Response to shifts and demands.Quick Response to shifts and demands.
 A wider application of the “pull” concept,A wider application of the “pull” concept,
rather than “push”.rather than “push”.
 Eliminating non-value added activities andEliminating non-value added activities and
reducing waste.reducing waste.
Waste = NVA (Non Value Added(

11. Lean Management Solution ConferenceLean Management Solution Conference 1111
 Companies benchmark their products andCompanies benchmark their products and
“copy” their competitors.“copy” their competitors.
 Industrial Intelligence.Industrial Intelligence.
 Difficulties in copying quality of the work-Difficulties in copying quality of the work-
force (unique qualities of the individual).force (unique qualities of the individual).
 Difficulties in copying quality of the serviceDifficulties in copying quality of the service
and delivery.and delivery.

12. Lean Management Solution ConferenceLean Management Solution Conference 1212
 Avoid inefficiencies and inflated structures ofAvoid inefficiencies and inflated structures of
the organization.the organization.
 Outsourcing, covering fields of informationOutsourcing, covering fields of information
services, logistics and other areas of productsservices, logistics and other areas of products
& services.& services.
 Enable the organization to focus it’s effortsEnable the organization to focus it’s efforts
and expertise.and expertise.
 Reduce permanent work-force.Reduce permanent work-force.
 Become a “modular” organization.Become a “modular” organization.

13. Lean Management Solution ConferenceLean Management Solution Conference 1313
 Permanent work-force needs to be ofPermanent work-force needs to be of
higher quality.higher quality.
 Increase work-force’s motivation.Increase work-force’s motivation.
 Better education and training.Better education and training.
 Improved structures and methods.Improved structures and methods.
 Wider scope for participation and decisionWider scope for participation and decision
making.making.
SMT – Self-Managed TeamsSMT – Self-Managed Teams

14. Lean Management Solution ConferenceLean Management Solution Conference 1414
 New organizational Structure.New organizational Structure.
 Teamwork.Teamwork.
 Application of technology – Teleworking,Application of technology – Teleworking,
Internet, Marketing, Knowledge ManagementInternet, Marketing, Knowledge Management
 Reduction of conventional practices ofReduction of conventional practices of
logistics, distribution, marketing & delivery.logistics, distribution, marketing & delivery.
 Application of diversified managementApplication of diversified management
techniques.techniques.

15. Lean Management Solution ConferenceLean Management Solution Conference 1515
Many new management techniques &Many new management techniques &
“buzzwords” have been developed.“buzzwords” have been developed.
Concepts such as MBO, JIT, TQM, TOC.Concepts such as MBO, JIT, TQM, TOC.
TQM vs REENGINEERING

16. Lean Management Solution ConferenceLean Management Solution Conference 1616
Concepts and ideas originally based on theConcepts and ideas originally based on the
Japanese industry and applied in the West.Japanese industry and applied in the West.
The main focus of this concept is on:The main focus of this concept is on:
A very systematicA very systematic “bottom-up”“bottom-up” approachapproach..
Customer Orientation
Total Involvement
Measurement
Systematic Infrastructure
Continuous Improvement

17. Lean Management Solution ConferenceLean Management Solution Conference 1717
Dramatic changes.Dramatic changes.
Drastic re-evaluation of all concepts.Drastic re-evaluation of all concepts.
Analysis conducted by an “outsider”Analysis conducted by an “outsider”
(external consultant).(external consultant).
Retrenchment as a result of outsourcing.Retrenchment as a result of outsourcing.
Radical changes in structure andRadical changes in structure and
authority.authority.
Use of Information TechnologyUse of Information Technology

18. • Continuous Change
• Fixing and Improving
• Mostly “As Is”
• From the Bottom up
• Radical Change
• Redesigning
• Mostly “What Can
Be”
• From the Top Down
TQM VersusTQM Versus
ReengineeringReengineering
TQMTQM ReengineeringReengineering

19. Lean Management Solution ConferenceLean Management Solution Conference 1919
Entering a highly challenging era.Entering a highly challenging era.
No time for mistakes or “trial andNo time for mistakes or “trial and
error”.error”.
Success to the quick adaptors.Success to the quick adaptors.
Highly skilled management &Highly skilled management &
work force.work force.
Strong leadership.Strong leadership.
Stakeholders’ involvement andStakeholders’ involvement and
support.support.