Lean People

for a Lean Enterprise

The Impact of Becoming Lean

Toyota has overtaken Ford as number

two in the global motor industry
It intends to overtake General Motors
to become number one by 2010

“Brilliant process management is our

strategy.” Senior Toyota executive
Defining Lean

 Continually reducing waste in all

areas and in all forms
 English phrase coined to summarize
Japanese manufacturing techniques
(specifically, the Toyota Production
System)
Genesis of Lean

LEAN 1996

FORD DFT
1920s 1990s
TPS JIT
1970s 1980s
Basic Tenets of Lean

Specify Value Map the Value

Stream
Make Products
Flow Pursue
Perfection
Implement Pull
Defined by Womack
& Jones in their book,
Lean Thinking
Lean Aerospace Initiative Objectives
 Promote a lean leadership at all levels
 Continuously focus on the customer
 Development relationships based on mutual trust/commitment
 Optimize capability and utilization of people
 Make decisions at lowest possible level
 Nurture a learning environment
 Implement Integrated Product/Process Development (IPPD)
 Identify and optimize enterprise flow
 Ensure process capability and maturation
 Maintain the challenge of existing processes
 Assure seamless information flow
 Maximize stability in a changing environment
Lean People Make a Lean Enterprise
 An Enterprise is a collection of people
voluntarily banding together to produce a
product or service
 To have a Lean Enterprise, you have to
have Lean people
 People have to get Lean before the
enterprise can get Lean
Lean People Have Something
Knowledge Value Stream Mapping, Six
Sigma Quality, The 5 S’s ,
Visual Management, Kaizen
Events, Process
 Lean Tenets Reengineering, Cellular
Manufacturing, Line
Balancing
 Lean Tools
Experience
 In the industry
 In the function
Skills
Prerequisites to applying the knowledge
and experience
1. Understanding Value
2. Identifying and working in the Value Stream
3. Being able to adapt rapidly
4. Leading from below
5. Taking the initiative
6. Innovating: changing things for the better
7. Having a Collaborative Outlook
Understanding Value
Lean Thinking starts with specifying value
from the customer’s perspective
 Identifying your customers

internal or external
 Identifying customer’s needs
 Meeting customer’s needs
 Measuring performance from
the customer’s perspective
Working the Value Stream
Understand how potential improvements
affect the enterprise as a whole
 Definition of a process
Input, Add Value, Output
 ValueStream Mapping
 Process redesign
 Process Measurement
Time, Value Added Ratio, Quality
Adapting Quickly
Customer demands are constantly shifting,
so products and processes must change
 Overcoming resistance to change
 Re-channeling anxiety into
productive creativity
 Taking advantage of the new
environment
Leading From Below
Leaders are people who influence others
 Leaders Envision
– Analyze the current situation
– Imagine a new future
 Leaders Align
– Set priorities
– Define intermediate goals
 Leaders Empower
– Empowering yourself & others
Taking the Initiative
A Lean Enterprise can’t afford to
have people waiting to be told
what to do and how to do it
 Setting goals
 Developing plans to achieve goals
 Measuring progress against the plan
 Maximizing personal productivity
 Managing time and being organized
 Innovating
A Lean Enterprise will rely on the creativity
of its people as never before
 Analyzing problems
 Applying critical thinking processes
 Developing creative responses to new
demands
Collaborative
Collaborative Groups know their processes and
how they relate to the overall operation
 Inter-company teams
Customers, Suppliers, Competitors
 Project Teams
Address a specific issue
 Self Directed Work Teams
Manage the day to day operations
How To Create Lean People
 The Lean Enterprise must assure its
people possess knowledge, experience,
skill
 Experience is something that happens
over time but must be supported
 Knowledge and skills come from
education and training
 Management must put a plan in place
– Starts with identifying the needs, continues
with education and follows up with training