Lean (Lean Management) is an organizational culture based on management philosophy, values, and methods that strives to “contribute to the sustainable development of society and the world through the production of high quality and innovative products and services. “Substantial increases in productivity and product quality yield smooth results.
Continuous improvement
“Satisfied with the current situation means you are not progressing”
- Katsuki Watanabe, CEO of Toyota Motor Corporation
Processes, products and services are never perfect and must be constantly improved. The continuous progress of the organization is based on building and continually improving people’s abilities, so Lean’s two pillars are interconnected.
To achieve their long-term vision, lean organizations take up challenges with courage and creativity. They teach people ways to overcome obstacles and enable them to achieve them in a better way. They accept change as the only way to make progress and challenge the current situation.
Kaizen translates as change for the better or for the better (kai — “change”, sen — “good”). It is a state of mind and training for continuous improvement through innovation and evolution.
Continuous minor improvements initiated by Kaizen employees are required. All employees should look for ways to improve their individual performance and collaborate with others to improve team performance. Kaizen encourages employees to take ownership of their work and improve their motivation. As a system, Kaizen is a grassroots approach to complete growth with top-down approaches of kaikaku (radical change) and kakushin (radical innovation).
But the most important aspect of Kaizen is that it is a way of thinking that helps everyone in the organization to challenge everything and see opportunities for improvement everywhere.
“Kaizen’s spirit is rising and challenging us to find a better way in everything we do every day.”
Genchi Genbutsu (Onsite Hands-On Experience, or “Go and See”) is a principle for making the right decisions based on the facts found at the source — where the work is actually being performed. In addition, this principle requires consensus in decisions to achieve goals at the best possible pace.
A good understanding of the situation on the site where value is added and waste is visible is crucial to solving and improving the problem. In the broadest sense, Genji Genbutsu’s decisions should be based on facts and good understanding, not on assumptions and untested theories. (An example by Genji Zenbetsu in project management is the need to translate critical project assumptions into theories that need to be tested.)
Respect for the people
“Lean is not thin if it does not include everyone”
-John Shuck
It is a thin heart that respects and builds people. Toyota first “makes” people, then people make cars.
Respect for people applies to employees, customers and partners alike. In the broadest sense, it also applies to society. Lean organization respects others and builds and promotes mutual understanding, accountability and trust. The organization promotes personal and professional growth and shares development opportunities.
Respect for the people is widely reflected in Toyota’s philosophy and values.
“Develop a corporate culture that enhances personal creativity and the value of teamwork while respecting mutual trust and respect between employees and management.”
- Toyota Guidelines [4]
The House of Lean
The Lean culture of the Toyota Way can be presented as a House of Lean:
Lean Manufacturing
Lean production is a “philosophy-based system that eliminates all waste completely by following the most effective methods” [5]. The Toyota Production System (TPS) is the source and model of lean manufacturing. Many of the slim concepts currently applied in various fields and disciplines, including project management, originate from TPS.
TPS is a product of many years of innovation and continuous improvement with the goal of achieving:
· Short lead time
· High efficiency
· Ability to build multiple cars
· Good quality and customer satisfaction
TPS is based on the concepts of Jidoka (human touch automation) and Just-in-Time.
Jidoka
Jidoka is a principle that requires that equipment be stopped safely immediately, in order to prevent the production of defective products when a problem is detected.
Traditional automated equipment is complemented by human intelligence operations, which help to check the quality, stop and signal when a problem is detected. Instead of pushing items to the next machine on the output line (push system), the machines are connected to synchronize upstream operation with downstream operation (pull system) [7].It all starts with manual work and people’s skills and crafts.
First, engineers carefully manufacture line components that meet standards. This is done by hand. Second, they apply caisson to simplify the operation of the line in an increasing way. The goal is to ensure that any line operator can consistently achieve the same result (when human operators cannot add value to operations) and incorporate components that have been created and improved into the operating output line.
This process is repeated continuously in order to:
· simplify the equipment and reduce its cost
· reduce equipment maintenance cost and time
· create simple, compact and flexible lines that adapt to fluctuations in production
The core of jidoka is the interdependence and the continuous improvement of both technology and the skills of the people, based on human wisdom and talent. Machines and technologies advance as people transfer their skills and workmanship to them, and this transfer is done through manual work.
How Jidoka is applied to prevent quality issues and facilitate daily improvements:
· When a machine detects a problem, it reports an abnormality (the machine is engaged in autonomy). The operator should self-examine their work and previously constructed work and take action when a defect is found. Activated by a visual and / or audio alert operator or machine itself.
· The operator stops the line.
· The supervisor immediately notices the problem, identifies the root cause and removes it.
· The process was improved to eliminate the possibility of the problem recurring.
Just in Time
The concept, based on the Just-in-Time process, is based on the production of “what is needed, when needed, in quantity”.
The goal is to get a continuous flow and complete a customer’s order in the shortest possible time, doing only what is needed to perform the next process. For vehicle manufacturing, Just-in-Time includes:
· Upon receipt of an order, instructions to begin production will be given on the assembly line as soon as possible.
· The assembly line must have a short list of parts to enable the production of any type of vehicle.
· Once an order has been filled, the assembly line is ordered to refill the parts from the manufacturing process.
· Parts Manufacturing Processes Keep a short list of all types of parts and make only the dimensions needed to replace the drag for the next process.
Just-in-Time aims to ensure efficient production of quality products in the shortest possible time. This is possible by eliminating Muda, Mura and Muri.
Muda (waste) is any activity or activity that does not add consumer value and absorbs resources.
Mura translates as inequality or lack of uniformity. When consumer demand fluctuates, production cannot take place at a constant rate. Uneven production creates waste. Level production is more efficient and allows continuous flow. Production leveling is achieved by mixing small batches of different car models in the assembly line. Each model has a different production time, which results in the same amount of production for different range of models (different but always smaller batch sizes).
Room (irrational needs; beyond one’s power) is another source of pollution. Moore forces people or machinery to operate beyond their natural limits, creating safety and quality issues, and causing malfunctions and disruptions
Lean thinking
James P. Womack and Daniel T. Lean Thinking is a term coined by Jones to represent the essence of the Toyota production system. They summarize lean thinking in five principles [11]: 1) Specify value according to a specific product or service, 2) Identify value stream, 3) Create value flow, 4) Allow customer to draw value, 5) Follow completeness.
These principles can be illustrated by an example. “John Barlickon” is a British folk song in which the main character is a personality of Barley — the main ingredient in the production of beer and whiskey. This is a version of Robert Burns’ poem (we have omitted the last three stanzas and added an accent in bold):
Applying dynamic lean project management to your business
There are several project management approaches available. But you are not limited to choosing one. By combining the best parts of multiple methodologies you can explore the optimal way for your team to implement it in the most meaningful way. The use of a proactive project management approach enables a systematic and pragmatic approach to product development. Before you implement this, talk to a team and discuss what you need to achieve and how the Agile Lean project management approach can help you.
You need to understand the principles behind these ideas, because they are crucial in ensuring a sustainable and disciplined practice. No methodology guarantees success; Not even a dynamic lean approach. It’s up to you.
