Becoming a Lean Business

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Steven Bonacorsi

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Aug 17, 2011, 12:50:21 AM8/17/11
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What is Lean?

A manufacturing philosophy that shortens the timeline between the
customer order and the shipment by eliminating waste, said John Shook,
Toyota's first and still only American "Kacho" (manager) in Japan.

In 1890, Sakichi Toyoda receives a patent for a wooden loom and the
philosophy of "KAIZEN" is born out of the need to compete. Sakichi
Toyoda said, No machine or process ever reaches the point where it
cannot be improved upon."

In 1908, Henry Ford invents the moving assembly line and raises the
daily wage to $5.00; continuous flow as a production method is
created. Henry Ford said in Today and Tomorrow, that the thing is to
keep everything in motion and take the work to the man and not the man
to the work. This is the real principle of our production and
conveyors are only one of many means to an end."

The Roots of Lean Manufacturing

Henry Ford developed and used some very specific management tools as
he built his Model T factory, a tractor factory or two, airplane
factory, component factories and a railroad. The management tools he
used eventually turned into what is now known as Lean manufacturing.
This evolution occurred after crossing the ocean twice and being
interpreted and re-interpreted between languages, cultures, among
engineers, accountants, toolmakers and dozens of other specially
trained people.

Japanese manufacturers, Toyota in particular, adopted Lean in its
manufacturing process and spent several decades refining it while
Americans ignored it. By the time it started to come back to the
United States, much of what Henry Ford had learned, used and published
was forgotten. The methods he had used became somewhat rigid and
institutionalized, and in doing so became less adaptable to different
manufacturing models.

When Lean manufacturing returned to the United States in the 1980s,
many viewed it as a one-size-fits-all tool. That tool happens to have
great value in the right environment but is not readily adaptable to
others - for example, job shops, custom manufacturers and short-run
manufacturers.

The management tools Henry Ford developed can be used to implement
true Lean manufacturing in a high-variety, low-volume plant just as
readily as in a high-volume, low-variety plant. His tools centered on
observation and adaptation. While that might mean setup reduction and
"kanban" stocking in one plant, it did not necessarily mean that for
all plants or all the time.

Responsibility for Health of Business

Ford said that the health of every organization depends on every
member - whatever his place - feeling that everything that happens to
come to his notice relating to the welfare of the business is his own
job. That statement represents a critical management tool regardless
the size of any organization or the complexity of its product or
service.

In most cases, people doing the work are going to know where the
inefficiencies and waste are. If they trust management, they will tell
managers about them and together workers and management can do
something about it. If they do not trust management, then the company
- and more importantly, the customers - will continue to pay for that
waste.

Trust is a big word in this context. If an organization has an
environment where there has been some mistrust for awhile, there are
at least two things that management can do to dramatically and quickly
increase trust.

Everyone Wants to Do a Good Job

First, there is a part of normal human psychology that can be used.
Almost everyone wants to do a good job. It is part of how people are
wired. Individuals gain a large portion of their identity and self-
esteem from their jobs, and other people's perception of their jobs.
Here are three simple ways to help build employee self-esteem:


1.When an employee has an idea of how to make his job more efficient,
listen to them. By just this simple act, a manager can signal to the
employee that their ideas are important.
2.Give quick and honest feedback. The employee will then know that
the manager did hear and understand the idea. Whether or not the idea
is implemented, a manager must make sure the input is recognized.
3.If the idea is implementing, or changes are made because of an
idea, give all the credit to the employee.


Whether a company's management is in a high-trust or low-trust
relationship with its employees, doing these things will increase
their job satisfaction and increase their willingness to share those
things that happens to come to his notice relating to the welfare of
the business is his own job.

Knowing What Is Being Measured

Second, the company must make sure it is measuring the most important
things in its operations, like productivity and quality, and that
employees know exactly what is being measuring. If employees
understand what is important to the company, they will make those same
things important to themselves as well.

Managers should talk to employees about measurements that the
workforce can influence. It is a good idea to focus on the local
results, even if the workplace is part of a large, multi-location
company. Concentrate on productivity and quality reports rather than
income statements and balance sheets. Employees will see this as
evidence that management is focusing on their jobs rather than
management bonuses.

Do the men and women who work for most companies feel that everything
that happens to come to their notice relating to the welfare of the
business is his/her own job? Most likely, they do. The job of managers
is to get the employee to tell them about it and then do something
about these things that come to their notice.

True Lean manufacturing needs the involvement of everyone coming into
contact with the company's product and its customer.


Steven Bonacorsi is a Certified Lean Six Sigma Master Black Belt
instructor and coach. He has trained thousands of Master Black Belts,
Black Belts, Green Belts, Project Sponsors and Executive Leaders in
Lean Six Sigma DMAIC and Design for Lean Six Sigma process improvement
methodologies.

Author for the Process Excellence Network (PEX Network / IQPC)

Process Excellence Network
Steven Bonacorsi, President of International Standard for Lean Six
Sigma (ISLSS)
Certified Lean Six Sigma Master Black Belt
47 Seasons Lane
Londonderry, NH 03053
Phone: +(1) (603) 401-7047
E-mail: sbona...@islss.com
Process Excellence Network: http://bit.ly/n4hBwu

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