SlideShare a Scribd company logo
Lean is a way of thinking. It is a journey that is never over. It is a system framed in a collection
of rules and principles. Current conditions and criteria must be examined. Some of the following
10 criteria may be more important than others to consider at the different phases of lean
transformation.
Creative Tension
Typically, tension carries a negative connotation. It is associated with headaches and difficult
circumstances. When a company is pursuing lean, however, tension is a good thing. In fact, the
urgency for lean and its introduction into an organization is always easier when a company is
struggling—when there is sufficient tension—than when it is doing well. The real challenge is to
get organizations to embrace lean in good times.
To develop tension, not stress (stress arises out of hopelessness), a company needs to develop
and articulate a clear vision of the ideal state’s characteristics. Then it must contrast that against
a deep understanding of its current state and define the gap. It does not matter how well a
company is performing because there is always a gap. The gap creates the tension.
For example, to instill some tension and a sense of urgency for introducing lean, a presentation
was given to the senior leadership and management staff of a building materials
manufacturer. After hours of discussion, it was clear the presenter failed. The company was
experiencing healthy profit margins; its market share was growing; and it was practically debt-
free. It was not until the company’s ideal state was defined and its leaders witnessed
choreographed plant tours to reveal the current state that they recognized the gap. The tension
was immediate and the leaders’ response was decisive.
Go for the Pull
If tension helps spur momentum for lean, it is best to capitalize on that momentum by engaging
champions predisposed to recognize the tension. An entire company cannot be taken on all at
once. So, start where there is a “pull” for lean rather than trying to “push” it in another area.
Most organizations start lean in their production areas where the effort is highly visible and
likely to reap the most benefits. However, when determining where to start, it is often best to
evaluate where there is the greatest pull. Look for a champion, sponsor, or compelling business
need.
As an example, a major gas and electric utility company started its lean efforts in the finance
area, because that is where the champion and the pull existed. Lean eventually spread to its
power plants, service centers, and other parts of the company.
Leadership Involvement
There are no better champions and no better advocates for pull then a company’s leaders. It is
ideal to have senior leadership actively engaged in the lean journey, not just sitting in a seat, but
also driving the vehicle. Unfortunately, senior leadership typically delegates the responsibility of
guiding the lean journey to others of lesser authority.
Even though there was a sponsor in the gas and electric utility’s ranks, it was difficult to engage
senior leadership on the journey in the early stage. To implement and institutionalize lean,
activities and structures at the management level were developed. This elevated the value and
results of lean to senior leaders, and today they are active and effective in leading the utility on
its lean journey.
Business Conditions
Business performance will determine what “gear” a company is in as it moves forward in its lean
journey. If a company is in survival mode or is under extreme pressure to immediately improve
performance, then leadership should focus on the immediate application of lean tools such
as Kaizens, waste elimination, or Five S. Development of a lean culture may be put on the back
burner for better times. If the climate is competitive pressure and recognition of the need to
improve, a company should begin with the tools but in parallel, work on changing the culture to
sustain and continue the improvements. If a company is in growing, flourishing industry that is
facing little pressure, then it should work specifically on developing the lean culture and apply
the tools as a manifestation of the culture.
Baggage
“Baggage,” refers to the bad taste left by past unsuccessful organization initiatives. A company
often overlooks this when it begins to design a lean approach. It does not make any difference if
the baggage is real or perceived; it should not be ignored. Baggage may include past corporate
initiative activities that resulted in layoffs or failed to satisfy expectations. It may also encompass
the “flavor-of-the-month” syndrome. The organization’s people may be primed to “wait it out or
wear it out” until the latest initiative—lean transformation—fades as well.
Culture
Consider the cultural makeup of a company. “Culture,” does not refer to the “lean culture” to
which a company may aspire. Rather, it is the unique traits and characteristics of the people
within the organization. Are there particular sensitivities to consider, such as language? For
example, multilingual training and development materials may need to be offered. There also
may be literacy issues. For example, at an aerospace supplier some basic lean tools were
presented in expectation of significant results as the company had many ripe improvement
opportunities. After less-than-stellar results, it was realized that there was some basic reading
and math deficiencies to address.
Resources
Ideally, a company will want the resources available to develop and dedicate certified lean
specialists to business units, plants, or specific areas. “Certified” means they are proven to have
reached some specified level of proficiency as determined by the company. The importance of
this is to establish a common language and a common lens for those who are driving the
organization. The specialists can act as internal consultants to teach, facilitate, and help direct
lean efforts. However, competition for resources or the relative size of the company may result in
the addition of lean to someone’s current responsibilities. Regardless, resource availability or
constraints must be considered when designing the approach.
Integration
More often that not, a company introduces lean either during or after other continuous
improvement initiatives. This can cause confusion between initiatives such as lean and six
sigma. One should not replace the other; they should complement one another.
One lean implementer likes to explain lean as, “…the systems you need to fight the daily fights
and manage the war. Six sigma, on the other hand, is the tool you need to storm the beach.” No
matter how it is looked at, an organization must see lean as a complement to the initiatives in
which it is engaged. Lean must be perceived as the vehicle to take an organization to new
heights. Successful efforts should not be negated. Lean should be used to leverage a company’s
effective efforts—not replace them.
Measurement / Evaluation
Measurement/ evaluation systems dramatically influence organizational
behaviors. Unfortunately, the resulting behaviors often conflict with the desired behaviors of a
lean initiative. A company should carefully look at what it measures and evaluates, and who is
accountable.
At a major automotive parts supplier, direct labor was the Holy Mantra : “drive out direct labor
and you will be rewarded.” The easiest way to drive out direct labor was to automate processes,
so that is what the company did. After closer examination, however, the company’s leaders
realized that costs actually increased because of downtime, scrap, indirect support, inventory,
and other issues. The point is not that automation does not have a place in lean: it absolutely
does. The point is the measurement drove the behavior, which is not the best lean practice.
Vocabulary
Vocabulary may seem like an unimportant consideration, but jargon can be
confusing. Employees of organizations become increasingly confused as leadership introduces
one initiative after another—the flavor of the month. If a company has a “process excellence”
initiative, the title should not be changed. Instead, it should be integrated with the rules,
principles, and practices of lean. If a lean concept is introduced, but there is already an existing
word with the same meaning, keep using the same world.

More Related Content

What's hot

Forum Column Vision Is The Thing
Forum Column Vision Is The ThingForum Column Vision Is The Thing
Forum Column Vision Is The Thing
jrh20124
 
Post Merger
Post MergerPost Merger
Post Mergerukabuka
 
The High Potential Leader
The High Potential LeaderThe High Potential Leader
The High Potential Leader
GMR Group
 
Foster potential white paper 2
Foster potential white paper 2Foster potential white paper 2
Foster potential white paper 2Lisa Renn
 
Digital@scale Summary
Digital@scale SummaryDigital@scale Summary
Digital@scale Summary
GMR Group
 
Hit refresh Book Take Aways
Hit refresh  Book Take AwaysHit refresh  Book Take Aways
Hit refresh Book Take Aways
GMR Group
 
Morphing continually to achieve Business Agility
Morphing continually to achieve Business AgilityMorphing continually to achieve Business Agility
Morphing continually to achieve Business Agility
Emiliano Soldi
 
Welcome Aboard Case Study Presentation.
Welcome Aboard Case Study Presentation.Welcome Aboard Case Study Presentation.
Welcome Aboard Case Study Presentation.
Mimansha Bahadur
 
10 tips for transformation
10 tips for transformation 10 tips for transformation
10 tips for transformation Gwen Stirling
 
Boards that lead
Boards that leadBoards that lead
Boards that lead
GMR Group
 
Talent Wins
Talent Wins Talent Wins
Talent Wins
GMR Group
 
Enterprations Weekly Strategy, Number 1 April, 2017
Enterprations Weekly Strategy, Number 1 April, 2017Enterprations Weekly Strategy, Number 1 April, 2017
Enterprations Weekly Strategy, Number 1 April, 2017
Mutiu Iyanda, mMBA, ASM
 
The Culture Secret
The Culture SecretThe Culture Secret
The Culture Secret
GMR Group
 
Leadership Development Process - InspireOne - Redefining Learning Journeys
Leadership Development Process - InspireOne - Redefining Learning JourneysLeadership Development Process - InspireOne - Redefining Learning Journeys
Leadership Development Process - InspireOne - Redefining Learning Journeys
Inspireone
 
Empowerment of employees
Empowerment of employeesEmpowerment of employees
Empowerment of employees
Hairul Hafiz Hasbullah
 
Boards that Deliver
Boards that  DeliverBoards that  Deliver
Boards that Deliver
GMR Group
 
An investor's least favorite statement -- Oops Wrong CEO -- and You Need More...
An investor's least favorite statement -- Oops Wrong CEO -- and You Need More...An investor's least favorite statement -- Oops Wrong CEO -- and You Need More...
An investor's least favorite statement -- Oops Wrong CEO -- and You Need More...
Leslie S. Pratch
 
Remote Work & Digital Transformation: 7 Questions to Ask
Remote Work & Digital Transformation: 7 Questions to AskRemote Work & Digital Transformation: 7 Questions to Ask
Remote Work & Digital Transformation: 7 Questions to Ask
Josue Sierra
 
10 Principles of Leading Change Management
10 Principles of Leading Change Management10 Principles of Leading Change Management
10 Principles of Leading Change Management
Strategy&, a member of the PwC network
 

What's hot (20)

Designed for speed
Designed for speedDesigned for speed
Designed for speed
 
Forum Column Vision Is The Thing
Forum Column Vision Is The ThingForum Column Vision Is The Thing
Forum Column Vision Is The Thing
 
Post Merger
Post MergerPost Merger
Post Merger
 
The High Potential Leader
The High Potential LeaderThe High Potential Leader
The High Potential Leader
 
Foster potential white paper 2
Foster potential white paper 2Foster potential white paper 2
Foster potential white paper 2
 
Digital@scale Summary
Digital@scale SummaryDigital@scale Summary
Digital@scale Summary
 
Hit refresh Book Take Aways
Hit refresh  Book Take AwaysHit refresh  Book Take Aways
Hit refresh Book Take Aways
 
Morphing continually to achieve Business Agility
Morphing continually to achieve Business AgilityMorphing continually to achieve Business Agility
Morphing continually to achieve Business Agility
 
Welcome Aboard Case Study Presentation.
Welcome Aboard Case Study Presentation.Welcome Aboard Case Study Presentation.
Welcome Aboard Case Study Presentation.
 
10 tips for transformation
10 tips for transformation 10 tips for transformation
10 tips for transformation
 
Boards that lead
Boards that leadBoards that lead
Boards that lead
 
Talent Wins
Talent Wins Talent Wins
Talent Wins
 
Enterprations Weekly Strategy, Number 1 April, 2017
Enterprations Weekly Strategy, Number 1 April, 2017Enterprations Weekly Strategy, Number 1 April, 2017
Enterprations Weekly Strategy, Number 1 April, 2017
 
The Culture Secret
The Culture SecretThe Culture Secret
The Culture Secret
 
Leadership Development Process - InspireOne - Redefining Learning Journeys
Leadership Development Process - InspireOne - Redefining Learning JourneysLeadership Development Process - InspireOne - Redefining Learning Journeys
Leadership Development Process - InspireOne - Redefining Learning Journeys
 
Empowerment of employees
Empowerment of employeesEmpowerment of employees
Empowerment of employees
 
Boards that Deliver
Boards that  DeliverBoards that  Deliver
Boards that Deliver
 
An investor's least favorite statement -- Oops Wrong CEO -- and You Need More...
An investor's least favorite statement -- Oops Wrong CEO -- and You Need More...An investor's least favorite statement -- Oops Wrong CEO -- and You Need More...
An investor's least favorite statement -- Oops Wrong CEO -- and You Need More...
 
Remote Work & Digital Transformation: 7 Questions to Ask
Remote Work & Digital Transformation: 7 Questions to AskRemote Work & Digital Transformation: 7 Questions to Ask
Remote Work & Digital Transformation: 7 Questions to Ask
 
10 Principles of Leading Change Management
10 Principles of Leading Change Management10 Principles of Leading Change Management
10 Principles of Leading Change Management
 

Similar to How lean transformation is evaluated converted

Profitable growth
Profitable growthProfitable growth
Profitable growthSpringer
 
The Amazing Ambidextrous Executive: Balancing Tensions at the Top
The Amazing Ambidextrous Executive: Balancing Tensions at the TopThe Amazing Ambidextrous Executive: Balancing Tensions at the Top
The Amazing Ambidextrous Executive: Balancing Tensions at the Top
The Clarion Group, Ltd.
 
Axelbank, Gampel, Associates
Axelbank, Gampel, AssociatesAxelbank, Gampel, Associates
Axelbank, Gampel, Associatesjaxelbank
 
Success and failure in organisation design
Success and failure in organisation designSuccess and failure in organisation design
Success and failure in organisation design
ArunR148
 
Lessons learned when implementing Lean - LMAC UK
Lessons learned when implementing Lean - LMAC UKLessons learned when implementing Lean - LMAC UK
Lessons learned when implementing Lean - LMAC UK
Barry Jeffrey
 
Engaging your business - a demystified approach to employee engagement
Engaging your business  -  a demystified approach to employee engagementEngaging your business  -  a demystified approach to employee engagement
Engaging your business - a demystified approach to employee engagement
Cecil van Niekerk
 
assignment change management assignment.docx
assignment change management assignment.docxassignment change management assignment.docx
assignment change management assignment.docx
KiyaTesfaye2
 
Success and failure in Organisation Design
Success and failure in Organisation DesignSuccess and failure in Organisation Design
Success and failure in Organisation Design
AnshumanSingh295
 
Innovation versus Regulation
Innovation versus RegulationInnovation versus Regulation
Innovation versus Regulation
Malcolm Ryder
 
Prosci's Top 10 Tactics for Managing Resistance.pdf
Prosci's Top 10 Tactics for Managing Resistance.pdfProsci's Top 10 Tactics for Managing Resistance.pdf
Prosci's Top 10 Tactics for Managing Resistance.pdf
MARG Business Transformation
 
Organizational Change Management PaperContentsYour paper.docx
Organizational Change Management PaperContentsYour paper.docxOrganizational Change Management PaperContentsYour paper.docx
Organizational Change Management PaperContentsYour paper.docx
gerardkortney
 
Success and failure in organisation design
Success and failure in organisation designSuccess and failure in organisation design
Success and failure in organisation design
Aravindan Sridhar Sridhar
 
21 steps to develop and reinforce bisnis
21 steps to develop and reinforce bisnis21 steps to develop and reinforce bisnis
21 steps to develop and reinforce bisnisHart Trie
 
21 steps to develop and reinforce bisnis
21 steps to develop and reinforce bisnis21 steps to develop and reinforce bisnis
21 steps to develop and reinforce bisnisHart Trie
 
Improving Company Culture Is Not About Providing Free Snacks
Improving Company Culture Is Not About Providing Free SnacksImproving Company Culture Is Not About Providing Free Snacks
Improving Company Culture Is Not About Providing Free Snacks
Strategy&, a member of the PwC network
 
Building an outcome driven high ownership company
Building an outcome driven high ownership companyBuilding an outcome driven high ownership company
Building an outcome driven high ownership company
Browne & Mohan
 
Artk Consulting OCM Change Management
Artk Consulting OCM Change ManagementArtk Consulting OCM Change Management
Artk Consulting OCM Change ManagementArt Krulish
 
Sri ram
Sri ramSri ram
Sri ram
MJANTONJOSHUA
 
Managing Change During Company Buyout or Transition
Managing Change During Company Buyout or TransitionManaging Change During Company Buyout or Transition
Managing Change During Company Buyout or Transition
Daniels Communications CAR
 

Similar to How lean transformation is evaluated converted (20)

Profitable growth
Profitable growthProfitable growth
Profitable growth
 
The Amazing Ambidextrous Executive: Balancing Tensions at the Top
The Amazing Ambidextrous Executive: Balancing Tensions at the TopThe Amazing Ambidextrous Executive: Balancing Tensions at the Top
The Amazing Ambidextrous Executive: Balancing Tensions at the Top
 
Axelbank, Gampel, Associates
Axelbank, Gampel, AssociatesAxelbank, Gampel, Associates
Axelbank, Gampel, Associates
 
Success and failure in organisation design
Success and failure in organisation designSuccess and failure in organisation design
Success and failure in organisation design
 
Lessons learned when implementing Lean - LMAC UK
Lessons learned when implementing Lean - LMAC UKLessons learned when implementing Lean - LMAC UK
Lessons learned when implementing Lean - LMAC UK
 
Engaging your business - a demystified approach to employee engagement
Engaging your business  -  a demystified approach to employee engagementEngaging your business  -  a demystified approach to employee engagement
Engaging your business - a demystified approach to employee engagement
 
assignment change management assignment.docx
assignment change management assignment.docxassignment change management assignment.docx
assignment change management assignment.docx
 
Dit yvol4iss31
Dit yvol4iss31Dit yvol4iss31
Dit yvol4iss31
 
Success and failure in Organisation Design
Success and failure in Organisation DesignSuccess and failure in Organisation Design
Success and failure in Organisation Design
 
Innovation versus Regulation
Innovation versus RegulationInnovation versus Regulation
Innovation versus Regulation
 
Prosci's Top 10 Tactics for Managing Resistance.pdf
Prosci's Top 10 Tactics for Managing Resistance.pdfProsci's Top 10 Tactics for Managing Resistance.pdf
Prosci's Top 10 Tactics for Managing Resistance.pdf
 
Organizational Change Management PaperContentsYour paper.docx
Organizational Change Management PaperContentsYour paper.docxOrganizational Change Management PaperContentsYour paper.docx
Organizational Change Management PaperContentsYour paper.docx
 
Success and failure in organisation design
Success and failure in organisation designSuccess and failure in organisation design
Success and failure in organisation design
 
21 steps to develop and reinforce bisnis
21 steps to develop and reinforce bisnis21 steps to develop and reinforce bisnis
21 steps to develop and reinforce bisnis
 
21 steps to develop and reinforce bisnis
21 steps to develop and reinforce bisnis21 steps to develop and reinforce bisnis
21 steps to develop and reinforce bisnis
 
Improving Company Culture Is Not About Providing Free Snacks
Improving Company Culture Is Not About Providing Free SnacksImproving Company Culture Is Not About Providing Free Snacks
Improving Company Culture Is Not About Providing Free Snacks
 
Building an outcome driven high ownership company
Building an outcome driven high ownership companyBuilding an outcome driven high ownership company
Building an outcome driven high ownership company
 
Artk Consulting OCM Change Management
Artk Consulting OCM Change ManagementArtk Consulting OCM Change Management
Artk Consulting OCM Change Management
 
Sri ram
Sri ramSri ram
Sri ram
 
Managing Change During Company Buyout or Transition
Managing Change During Company Buyout or TransitionManaging Change During Company Buyout or Transition
Managing Change During Company Buyout or Transition
 

More from globalsevensteps

Theory of constraints
Theory of constraintsTheory of constraints
Theory of constraints
globalsevensteps
 
How to create an effective lean daily work management system
How to create an effective lean daily work management systemHow to create an effective lean daily work management system
How to create an effective lean daily work management system
globalsevensteps
 
How to bounce back in business with improved results post covid
How to bounce back in business with improved results post covid How to bounce back in business with improved results post covid
How to bounce back in business with improved results post covid
globalsevensteps
 
Five phases of lean roadmap
Five phases of lean roadmapFive phases of lean roadmap
Five phases of lean roadmap
globalsevensteps
 
Creating quality culture in an organization
Creating quality culture in an organizationCreating quality culture in an organization
Creating quality culture in an organization
globalsevensteps
 
Standard operations
Standard operationsStandard operations
Standard operations
globalsevensteps
 
Implementing total productive maintenance in manufacturing
Implementing total productive maintenance in manufacturingImplementing total productive maintenance in manufacturing
Implementing total productive maintenance in manufacturing
globalsevensteps
 
How to improve machine performance
How to improve machine performanceHow to improve machine performance
How to improve machine performance
globalsevensteps
 
Creating quality culture in an organization
Creating quality culture in an organization Creating quality culture in an organization
Creating quality culture in an organization
globalsevensteps
 
TQM; TPM; LEAN; SIXSIGMA: What is the right strategy for my organization’s bu...
TQM; TPM; LEAN; SIXSIGMA: What is the right strategy for my organization’s bu...TQM; TPM; LEAN; SIXSIGMA: What is the right strategy for my organization’s bu...
TQM; TPM; LEAN; SIXSIGMA: What is the right strategy for my organization’s bu...
globalsevensteps
 
Five phases of lean roadmap
Five phases of lean roadmap Five phases of lean roadmap
Five phases of lean roadmap
globalsevensteps
 
How lean manufacturing will help to improve productivity
How lean manufacturing will help to improve productivityHow lean manufacturing will help to improve productivity
How lean manufacturing will help to improve productivity
globalsevensteps
 
How to create an effective lean daily work management system
How to create an effective lean daily work management system How to create an effective lean daily work management system
How to create an effective lean daily work management system
globalsevensteps
 
How operational excellence through lean
How operational excellence through lean How operational excellence through lean
How operational excellence through lean
globalsevensteps
 
How to implement operational excellence in organizations
How to implement operational excellence in organizationsHow to implement operational excellence in organizations
How to implement operational excellence in organizations
globalsevensteps
 
Implementing total productive maintenance in manufacturing
Implementing total productive maintenance in manufacturingImplementing total productive maintenance in manufacturing
Implementing total productive maintenance in manufacturing
globalsevensteps
 
Implementing lean maintenance system to improve factory performance
Implementing lean maintenance system to improve factory performanceImplementing lean maintenance system to improve factory performance
Implementing lean maintenance system to improve factory performance
globalsevensteps
 
Delivering high value healthcare through lean hospitals
Delivering high value healthcare through lean hospitalsDelivering high value healthcare through lean hospitals
Delivering high value healthcare through lean hospitals
globalsevensteps
 
Lean daily work management system at the core of its operations
Lean daily work management system at the core of its operationsLean daily work management system at the core of its operations
Lean daily work management system at the core of its operations
globalsevensteps
 

More from globalsevensteps (19)

Theory of constraints
Theory of constraintsTheory of constraints
Theory of constraints
 
How to create an effective lean daily work management system
How to create an effective lean daily work management systemHow to create an effective lean daily work management system
How to create an effective lean daily work management system
 
How to bounce back in business with improved results post covid
How to bounce back in business with improved results post covid How to bounce back in business with improved results post covid
How to bounce back in business with improved results post covid
 
Five phases of lean roadmap
Five phases of lean roadmapFive phases of lean roadmap
Five phases of lean roadmap
 
Creating quality culture in an organization
Creating quality culture in an organizationCreating quality culture in an organization
Creating quality culture in an organization
 
Standard operations
Standard operationsStandard operations
Standard operations
 
Implementing total productive maintenance in manufacturing
Implementing total productive maintenance in manufacturingImplementing total productive maintenance in manufacturing
Implementing total productive maintenance in manufacturing
 
How to improve machine performance
How to improve machine performanceHow to improve machine performance
How to improve machine performance
 
Creating quality culture in an organization
Creating quality culture in an organization Creating quality culture in an organization
Creating quality culture in an organization
 
TQM; TPM; LEAN; SIXSIGMA: What is the right strategy for my organization’s bu...
TQM; TPM; LEAN; SIXSIGMA: What is the right strategy for my organization’s bu...TQM; TPM; LEAN; SIXSIGMA: What is the right strategy for my organization’s bu...
TQM; TPM; LEAN; SIXSIGMA: What is the right strategy for my organization’s bu...
 
Five phases of lean roadmap
Five phases of lean roadmap Five phases of lean roadmap
Five phases of lean roadmap
 
How lean manufacturing will help to improve productivity
How lean manufacturing will help to improve productivityHow lean manufacturing will help to improve productivity
How lean manufacturing will help to improve productivity
 
How to create an effective lean daily work management system
How to create an effective lean daily work management system How to create an effective lean daily work management system
How to create an effective lean daily work management system
 
How operational excellence through lean
How operational excellence through lean How operational excellence through lean
How operational excellence through lean
 
How to implement operational excellence in organizations
How to implement operational excellence in organizationsHow to implement operational excellence in organizations
How to implement operational excellence in organizations
 
Implementing total productive maintenance in manufacturing
Implementing total productive maintenance in manufacturingImplementing total productive maintenance in manufacturing
Implementing total productive maintenance in manufacturing
 
Implementing lean maintenance system to improve factory performance
Implementing lean maintenance system to improve factory performanceImplementing lean maintenance system to improve factory performance
Implementing lean maintenance system to improve factory performance
 
Delivering high value healthcare through lean hospitals
Delivering high value healthcare through lean hospitalsDelivering high value healthcare through lean hospitals
Delivering high value healthcare through lean hospitals
 
Lean daily work management system at the core of its operations
Lean daily work management system at the core of its operationsLean daily work management system at the core of its operations
Lean daily work management system at the core of its operations
 

Recently uploaded

Elevating Tactical DDD Patterns Through Object Calisthenics
Elevating Tactical DDD Patterns Through Object CalisthenicsElevating Tactical DDD Patterns Through Object Calisthenics
Elevating Tactical DDD Patterns Through Object Calisthenics
Dorra BARTAGUIZ
 
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdfFIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance
 
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
Product School
 
Generating a custom Ruby SDK for your web service or Rails API using Smithy
Generating a custom Ruby SDK for your web service or Rails API using SmithyGenerating a custom Ruby SDK for your web service or Rails API using Smithy
Generating a custom Ruby SDK for your web service or Rails API using Smithy
g2nightmarescribd
 
Knowledge engineering: from people to machines and back
Knowledge engineering: from people to machines and backKnowledge engineering: from people to machines and back
Knowledge engineering: from people to machines and back
Elena Simperl
 
From Daily Decisions to Bottom Line: Connecting Product Work to Revenue by VP...
From Daily Decisions to Bottom Line: Connecting Product Work to Revenue by VP...From Daily Decisions to Bottom Line: Connecting Product Work to Revenue by VP...
From Daily Decisions to Bottom Line: Connecting Product Work to Revenue by VP...
Product School
 
State of ICS and IoT Cyber Threat Landscape Report 2024 preview
State of ICS and IoT Cyber Threat Landscape Report 2024 previewState of ICS and IoT Cyber Threat Landscape Report 2024 preview
State of ICS and IoT Cyber Threat Landscape Report 2024 preview
Prayukth K V
 
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...
Ramesh Iyer
 
Key Trends Shaping the Future of Infrastructure.pdf
Key Trends Shaping the Future of Infrastructure.pdfKey Trends Shaping the Future of Infrastructure.pdf
Key Trends Shaping the Future of Infrastructure.pdf
Cheryl Hung
 
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdfFIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
FIDO Alliance
 
UiPath Test Automation using UiPath Test Suite series, part 3
UiPath Test Automation using UiPath Test Suite series, part 3UiPath Test Automation using UiPath Test Suite series, part 3
UiPath Test Automation using UiPath Test Suite series, part 3
DianaGray10
 
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdfFIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
FIDO Alliance
 
De-mystifying Zero to One: Design Informed Techniques for Greenfield Innovati...
De-mystifying Zero to One: Design Informed Techniques for Greenfield Innovati...De-mystifying Zero to One: Design Informed Techniques for Greenfield Innovati...
De-mystifying Zero to One: Design Informed Techniques for Greenfield Innovati...
Product School
 
Assuring Contact Center Experiences for Your Customers With ThousandEyes
Assuring Contact Center Experiences for Your Customers With ThousandEyesAssuring Contact Center Experiences for Your Customers With ThousandEyes
Assuring Contact Center Experiences for Your Customers With ThousandEyes
ThousandEyes
 
PCI PIN Basics Webinar from the Controlcase Team
PCI PIN Basics Webinar from the Controlcase TeamPCI PIN Basics Webinar from the Controlcase Team
PCI PIN Basics Webinar from the Controlcase Team
ControlCase
 
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdfFIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance
 
DevOps and Testing slides at DASA Connect
DevOps and Testing slides at DASA ConnectDevOps and Testing slides at DASA Connect
DevOps and Testing slides at DASA Connect
Kari Kakkonen
 
Monitoring Java Application Security with JDK Tools and JFR Events
Monitoring Java Application Security with JDK Tools and JFR EventsMonitoring Java Application Security with JDK Tools and JFR Events
Monitoring Java Application Security with JDK Tools and JFR Events
Ana-Maria Mihalceanu
 
Mission to Decommission: Importance of Decommissioning Products to Increase E...
Mission to Decommission: Importance of Decommissioning Products to Increase E...Mission to Decommission: Importance of Decommissioning Products to Increase E...
Mission to Decommission: Importance of Decommissioning Products to Increase E...
Product School
 
Accelerate your Kubernetes clusters with Varnish Caching
Accelerate your Kubernetes clusters with Varnish CachingAccelerate your Kubernetes clusters with Varnish Caching
Accelerate your Kubernetes clusters with Varnish Caching
Thijs Feryn
 

Recently uploaded (20)

Elevating Tactical DDD Patterns Through Object Calisthenics
Elevating Tactical DDD Patterns Through Object CalisthenicsElevating Tactical DDD Patterns Through Object Calisthenics
Elevating Tactical DDD Patterns Through Object Calisthenics
 
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdfFIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
 
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
 
Generating a custom Ruby SDK for your web service or Rails API using Smithy
Generating a custom Ruby SDK for your web service or Rails API using SmithyGenerating a custom Ruby SDK for your web service or Rails API using Smithy
Generating a custom Ruby SDK for your web service or Rails API using Smithy
 
Knowledge engineering: from people to machines and back
Knowledge engineering: from people to machines and backKnowledge engineering: from people to machines and back
Knowledge engineering: from people to machines and back
 
From Daily Decisions to Bottom Line: Connecting Product Work to Revenue by VP...
From Daily Decisions to Bottom Line: Connecting Product Work to Revenue by VP...From Daily Decisions to Bottom Line: Connecting Product Work to Revenue by VP...
From Daily Decisions to Bottom Line: Connecting Product Work to Revenue by VP...
 
State of ICS and IoT Cyber Threat Landscape Report 2024 preview
State of ICS and IoT Cyber Threat Landscape Report 2024 previewState of ICS and IoT Cyber Threat Landscape Report 2024 preview
State of ICS and IoT Cyber Threat Landscape Report 2024 preview
 
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...
 
Key Trends Shaping the Future of Infrastructure.pdf
Key Trends Shaping the Future of Infrastructure.pdfKey Trends Shaping the Future of Infrastructure.pdf
Key Trends Shaping the Future of Infrastructure.pdf
 
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdfFIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
 
UiPath Test Automation using UiPath Test Suite series, part 3
UiPath Test Automation using UiPath Test Suite series, part 3UiPath Test Automation using UiPath Test Suite series, part 3
UiPath Test Automation using UiPath Test Suite series, part 3
 
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdfFIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
 
De-mystifying Zero to One: Design Informed Techniques for Greenfield Innovati...
De-mystifying Zero to One: Design Informed Techniques for Greenfield Innovati...De-mystifying Zero to One: Design Informed Techniques for Greenfield Innovati...
De-mystifying Zero to One: Design Informed Techniques for Greenfield Innovati...
 
Assuring Contact Center Experiences for Your Customers With ThousandEyes
Assuring Contact Center Experiences for Your Customers With ThousandEyesAssuring Contact Center Experiences for Your Customers With ThousandEyes
Assuring Contact Center Experiences for Your Customers With ThousandEyes
 
PCI PIN Basics Webinar from the Controlcase Team
PCI PIN Basics Webinar from the Controlcase TeamPCI PIN Basics Webinar from the Controlcase Team
PCI PIN Basics Webinar from the Controlcase Team
 
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdfFIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
 
DevOps and Testing slides at DASA Connect
DevOps and Testing slides at DASA ConnectDevOps and Testing slides at DASA Connect
DevOps and Testing slides at DASA Connect
 
Monitoring Java Application Security with JDK Tools and JFR Events
Monitoring Java Application Security with JDK Tools and JFR EventsMonitoring Java Application Security with JDK Tools and JFR Events
Monitoring Java Application Security with JDK Tools and JFR Events
 
Mission to Decommission: Importance of Decommissioning Products to Increase E...
Mission to Decommission: Importance of Decommissioning Products to Increase E...Mission to Decommission: Importance of Decommissioning Products to Increase E...
Mission to Decommission: Importance of Decommissioning Products to Increase E...
 
Accelerate your Kubernetes clusters with Varnish Caching
Accelerate your Kubernetes clusters with Varnish CachingAccelerate your Kubernetes clusters with Varnish Caching
Accelerate your Kubernetes clusters with Varnish Caching
 

How lean transformation is evaluated converted

  • 1. Lean is a way of thinking. It is a journey that is never over. It is a system framed in a collection of rules and principles. Current conditions and criteria must be examined. Some of the following 10 criteria may be more important than others to consider at the different phases of lean transformation. Creative Tension Typically, tension carries a negative connotation. It is associated with headaches and difficult circumstances. When a company is pursuing lean, however, tension is a good thing. In fact, the urgency for lean and its introduction into an organization is always easier when a company is struggling—when there is sufficient tension—than when it is doing well. The real challenge is to get organizations to embrace lean in good times. To develop tension, not stress (stress arises out of hopelessness), a company needs to develop and articulate a clear vision of the ideal state’s characteristics. Then it must contrast that against a deep understanding of its current state and define the gap. It does not matter how well a company is performing because there is always a gap. The gap creates the tension. For example, to instill some tension and a sense of urgency for introducing lean, a presentation was given to the senior leadership and management staff of a building materials manufacturer. After hours of discussion, it was clear the presenter failed. The company was experiencing healthy profit margins; its market share was growing; and it was practically debt- free. It was not until the company’s ideal state was defined and its leaders witnessed choreographed plant tours to reveal the current state that they recognized the gap. The tension was immediate and the leaders’ response was decisive. Go for the Pull If tension helps spur momentum for lean, it is best to capitalize on that momentum by engaging champions predisposed to recognize the tension. An entire company cannot be taken on all at
  • 2. once. So, start where there is a “pull” for lean rather than trying to “push” it in another area. Most organizations start lean in their production areas where the effort is highly visible and likely to reap the most benefits. However, when determining where to start, it is often best to evaluate where there is the greatest pull. Look for a champion, sponsor, or compelling business need. As an example, a major gas and electric utility company started its lean efforts in the finance area, because that is where the champion and the pull existed. Lean eventually spread to its power plants, service centers, and other parts of the company. Leadership Involvement There are no better champions and no better advocates for pull then a company’s leaders. It is ideal to have senior leadership actively engaged in the lean journey, not just sitting in a seat, but also driving the vehicle. Unfortunately, senior leadership typically delegates the responsibility of guiding the lean journey to others of lesser authority. Even though there was a sponsor in the gas and electric utility’s ranks, it was difficult to engage senior leadership on the journey in the early stage. To implement and institutionalize lean, activities and structures at the management level were developed. This elevated the value and results of lean to senior leaders, and today they are active and effective in leading the utility on its lean journey. Business Conditions Business performance will determine what “gear” a company is in as it moves forward in its lean journey. If a company is in survival mode or is under extreme pressure to immediately improve performance, then leadership should focus on the immediate application of lean tools such as Kaizens, waste elimination, or Five S. Development of a lean culture may be put on the back burner for better times. If the climate is competitive pressure and recognition of the need to improve, a company should begin with the tools but in parallel, work on changing the culture to sustain and continue the improvements. If a company is in growing, flourishing industry that is facing little pressure, then it should work specifically on developing the lean culture and apply the tools as a manifestation of the culture. Baggage “Baggage,” refers to the bad taste left by past unsuccessful organization initiatives. A company often overlooks this when it begins to design a lean approach. It does not make any difference if the baggage is real or perceived; it should not be ignored. Baggage may include past corporate initiative activities that resulted in layoffs or failed to satisfy expectations. It may also encompass the “flavor-of-the-month” syndrome. The organization’s people may be primed to “wait it out or wear it out” until the latest initiative—lean transformation—fades as well. Culture Consider the cultural makeup of a company. “Culture,” does not refer to the “lean culture” to which a company may aspire. Rather, it is the unique traits and characteristics of the people
  • 3. within the organization. Are there particular sensitivities to consider, such as language? For example, multilingual training and development materials may need to be offered. There also may be literacy issues. For example, at an aerospace supplier some basic lean tools were presented in expectation of significant results as the company had many ripe improvement opportunities. After less-than-stellar results, it was realized that there was some basic reading and math deficiencies to address. Resources Ideally, a company will want the resources available to develop and dedicate certified lean specialists to business units, plants, or specific areas. “Certified” means they are proven to have reached some specified level of proficiency as determined by the company. The importance of this is to establish a common language and a common lens for those who are driving the organization. The specialists can act as internal consultants to teach, facilitate, and help direct lean efforts. However, competition for resources or the relative size of the company may result in the addition of lean to someone’s current responsibilities. Regardless, resource availability or constraints must be considered when designing the approach. Integration More often that not, a company introduces lean either during or after other continuous improvement initiatives. This can cause confusion between initiatives such as lean and six sigma. One should not replace the other; they should complement one another. One lean implementer likes to explain lean as, “…the systems you need to fight the daily fights and manage the war. Six sigma, on the other hand, is the tool you need to storm the beach.” No matter how it is looked at, an organization must see lean as a complement to the initiatives in which it is engaged. Lean must be perceived as the vehicle to take an organization to new heights. Successful efforts should not be negated. Lean should be used to leverage a company’s effective efforts—not replace them. Measurement / Evaluation Measurement/ evaluation systems dramatically influence organizational behaviors. Unfortunately, the resulting behaviors often conflict with the desired behaviors of a lean initiative. A company should carefully look at what it measures and evaluates, and who is accountable. At a major automotive parts supplier, direct labor was the Holy Mantra : “drive out direct labor and you will be rewarded.” The easiest way to drive out direct labor was to automate processes, so that is what the company did. After closer examination, however, the company’s leaders realized that costs actually increased because of downtime, scrap, indirect support, inventory, and other issues. The point is not that automation does not have a place in lean: it absolutely does. The point is the measurement drove the behavior, which is not the best lean practice. Vocabulary
  • 4. Vocabulary may seem like an unimportant consideration, but jargon can be confusing. Employees of organizations become increasingly confused as leadership introduces one initiative after another—the flavor of the month. If a company has a “process excellence” initiative, the title should not be changed. Instead, it should be integrated with the rules, principles, and practices of lean. If a lean concept is introduced, but there is already an existing word with the same meaning, keep using the same world.