Speaker: Andrew Bargerstock CPA, Associate Professor of Management, Director of the MBA Program B.A. Economics, Muhlenberg College M.B.A., University of Pittsburgh C.P.A., Pennsylvania Ph.D., Maharishi University of Management Andrew Bargerstock worked as an executive with a Fortune 500 company, established two successful businesses, and consulted with many companies including Allstate Insurance, BJC Health System, W.L. Gore & Associates, US Patent and Trademark Office, and Virginia Department of Social Services. He was one of two professors in the USA to be awarded the Lean Enterprise Institute's (LEI) 2009 Excellence in Lean Accounting Professor Award.

1. Lean and
Sustainable
Business
Resonance in Natural Law
Dr. Andrew Bargerstock

3. W. Edwards Deming
System of Profound
Knowledge
14 pts. Deming Method
Plan-Do-Check-Act
(PDCA)

5. Maharishi:
Wholeness on the Move
When a manager’s awareness is
aligned with Natural Law by
contacting pure creative intelligence,
Natural Law emerges through the
Principle of Least Action to produce
decisions that promote flow, natural
recycling, and efficiencies.

6. Sustainable Art of Mgt.
Aligning awareness to Natural Law
brings more of the benefit of Principle
of Least Action. This is the most
sustainable art of management…
simplicity, direct
accomplishment, least effort and
minimal resources needed.

7. Main Point
To realize the full potential of
sustainable business
practices, TBL organizations
adopt Lean Mgt. methods to
perpetually add value and
continuously eliminate waste
in all forms.

8. Overview
 Basics of Lean
 Lean supports SB practices
 When does Lean fail
 Tips for MBA students

9. Toyota’s Philosophy
 Long-term thinking
 Add value by developing
employees
 Process for problem-solving
 Organizational learning emerges
from continuously solving root
causes of problems

10. Taiichi Ohno, Toyota
“All we are doing is looking at the
time-line, from the moment the
customer gives us an order to the
point when we collect the cash. And
we are reducing the time line by
reducing the non-value adding
wastes.”
More value with less work!

11. The impact of lean – 3 years
Parker Hannifin Corp.
Return on Assets +78%
Return on Sales +74%
On-time delivery
(starting at 85%)
95%
Scrap Rate -51%
Inventory on hand -41%

12. What is Lean Management?
 Deming Method – manage business
system instead of financial results
 Lean focuses on customers’
expectations, i.e., the value chain
 Lean kaizen teams streamline
business processes
 Lean expands capacity by reducing
costs and shortening cycle times

13. Basics of Lean
Five Principles
Four Rules
Many Tools

14. The Five Principles
1. Define value
2. Map the value stream
3. Make the stream flow
4. Allow customers to pull from
the flow
5. Pursue perfection perpetually

15. The Four Rules
1. Standardize work processes
2. Minimize movement of people
3. Minimize movement of
resources
4. Train people in CPI
methodologies

16. Tools of Lean
 5-S
(sort, straighten, sweep, standardize, sustain)
 Five whys
 Kanban (visual clues)
 Kaizen (continuous process improvement)
 Pareto charts
 Six Sigma
 Activity-based costing
…. Etc.

17. Katsuaki Watanabe
(Vice Chairman, Toyota Motor)
“There is no genius in our
company. We just do
whatever we believe is
right, trying every day to
improve every little bit and
piece. But, when 70 years of
very small improvements
accumulate, they become a
revolution.”

18. Overview
 Basics of Lean
 Lean supports SB practices
 When does Lean fail
 Tips for MBA students

19. Lean support for SB
practices
 Enables the organization to mimic natural
systems of frictionless flow
 Systematic methodology for optimizing
efficient use of resources in value chain
 Creates a pervasive culture of waste
elimination
 Empowers employees to sustain their
interest and commitment to their work

20. Overview
 Basics of Lean
 Lean supports SB practices
 When does Lean fail
 Tips for MBA students

21. Failures of Lean Mgt.
Inadequate engagement of
customers
Incomplete training in kaizen
Patchwork implementation
Lack of commitment by top
mgt.

22. Overview
 Basics of Lean
 Lean supports SB practices
 When does Lean fail
 Tips for MBA students

23. Implications for MBAs
Sustainable MBAs contribute
most to TBL organizations
when they can train and
lead teams in kaizen
events, i.e., continuous
process improvements.

24. Prof. H. Thomas Johnson: True
Lean context involves
 Increased possibilities
 Simpler pathways
 More-fulfilling relationships
 More-direct connections
 Continuous flow
 Balanced pace
 Real-time problem ID

25. Conclusion
To fulfill stewardship responsibilities
as a Triple Bottom Line business, an
organization inevitably will discover
that commitment to Lean
Management helps sustain passion
for elimination of waste in all forms
while also fulfilling customer
expectations.

26. Will you help lead the
transformation?