Description of Lean Management

1. Next frontiers for lean
&
Lean at Amazon
Group B - 4
• Mario Allen
• Jovita D’costa
• Manisha Kumari
• Mary Monisha
• Ken Sunny
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2.  Lean Management.
 Service sectors and lean management.
 Advantages and disadvantages of lean management.
 Lean at Amazon.
 Kaizen.
 The andon cord.
 What’s next?
 Conclusion
Contents
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3.  A Japanese approach to management.
 Focuses on cutting out waste, whilst ensuring quality.
 It is also known as the :
 Toyota Production System
 just-in-time production.
 4 Basic principle:
 Continuous improvement
 Just-in-time production
 Time based management
 Total quality management (TQM)
Lean Management
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4.  Deutsche Bank.
 The time saved can be utilized.
 Improving quality of existing business.
 Around 10% of the efficiency gain.
 Avoiding duplication and sending work back and forth.
 Simplifying processes resulted in 25% increase.
Retail banking
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5.  Cleveland Clinic Cleveland Ohio
 Reduce "never events.“
 Supply chain improvements.
 Delay or cancel construction and expansion.
 Reduce overtime.
 Reduce length of stay.
 Reduce unnecessary testing and diagnostics.
 Reduce delays and errors in billing.
Hospitals
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6.  Southwest Airlines
 Turnaround times between flights.
 Achieved strong customer loyalty.
 “Bags Fly Free” concept.
 Operates small planes and short-distance flights.
 Creates value for customers.
 Revolutionized airfare ticketing.
Airlines
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7.  Sugimoto Restaurant in Nagoya City, Japan.
 How to improve order accuracy.
 How to improve quality.
 Reduce errors as a team.
 Standardizing procedures.
 Use of technology.
Restaurants
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8. E.g of lean being followed in the
airline industry
E.g of lean being followed in
the hotel industry
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9. Good or bad?
Advantages
 Worker Satisfaction.
 Just in Time.
 Competitive Advantage.
 Reduced cost.
 Best utilization of resources.
 Minimal error.
Disadvantages
 Techniques can be overused.
 Problems With JIT.
 Worker Frustration.
 Supply Problems.
 High Cost of Implementation.
 Customer Dissatisfaction.
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10.  Lean management was followed at Amazon from the start
 Customer-centric.
 Lower-cost options
 E.g. transportation method for a given package.
 Composition of amazon as an organization
 Failure of automation
 Methods followed :
 kaizen workshops
 The andon cord
Lean at Amazon
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11.  Practice of continuous improvement.
 Originally introduced to the West by Masaaki Imai
 Management work in customer service at least one day a year.
 Fulfillment by Amazon business.
 “three strikes” packing process
 New productivity objectives for stowing products.
 Three types of carts.
 Combination of
 Frontline workers
 Engineers
 A few executives
Kaizen
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12.  Address quality or other problems by stopping production.
 repetitive defect complaints - “stop the line”
 Taking the product off the website.
 Eliminates tens of thousands of defects.
 Proof of trust for customer-service agents.
 Customer satisfaction.
The Andon Cord
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13.  Lean-management principles to software creation.
 Highly complex.
 Stop the line and detect defects in real time.
 The customer as a beta tester.
 3-D printing.
 Making three dimensional solid objects.
 Prints and ship a book within four hours.
 It’s the ultimate just in time.
What’s next?
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14.  Provides a trust to the customers and employees.
 Effective as well as efficient.
 May not be the best solution for all industries.
 Costly for the organization.
 Difficult to master and risky.
 Needs deep understanding and planning.
 Amazon at the right path.
Conclusion
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15. Thank
you
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