Lean Management Beyond Manufacturing (eBook)

Dr Sanjay Bhasin has worked within the field of continuous improvement and Lean for over twenty years within the industrial and public sectors. He was initially the Lean champion for Royal Doulton Plc for seven years. He subsequently moved into higher education, working as a consultant within organisations assisting them to implement CI. For the last eight years, he has worked within the public sector implementing Lean and QA systems. He has also been invited to speak at three international conferences and have published ten articles in highly reputable international journals.

Preface 5
Acknowledgments 8
Contents 9
1 Introduction 15
Abstract 15
A Reliable Definition of Lean 15
Brief History of Lean 16
Principles of Lean 20
Scope Covered by the Book 20
Summary 23
References 23
2 Clarification of the Lean Concept 25
Abstract 25
Understanding the Concept of Lean 25
Lean Development 27
Procedural Requirements for Lean 28
Predicted Benefits of Lean 29
Empirical Evidence on the Benefits of Lean 29
Rationale for the Low Numbers of Successful Lean Initiatives 30
HRM Implications for Lean 31
Relevance of an Organisation's Culture 31
Considerations for an Appropriate Change Strategy 32
Potential Issues Associated with Lean 33
Lean and Performance Measurement 34
Summary 37
References 38
3 Lean Cultures 41
Abstract 41
Culture Investigation 42
The General Perception of Organisational Culture 43
The Magnitude of Culture for Lean 45
Culture Should Reflect the Lean Journey 47
Favourable Cultural Features for Lean 48
The Significant Cultural Considerations 50
The ``Halo'' Effect 52
Fit an Appropriate Change Strategy to Lean 54
Conclusions 61
References 62
4 Lean Process Requirements 65
Abstract 65
The Technical Components for Lean to Flourish 65
Lean and Supply Chain Management 66
Lean Extended to Outsourcing 73
Potential Pitfalls of Outsourcing 75
Lean and IT 79
Lean and Six Sigma 82
The History of Six Sigma 82
Lean Sigma---Bringing Them Together 86
The Lean Sigma-Based DMAIC Approach 87
Business Benefits from Lean Six Sigma 89
Lean Sigma and Agile Manufacturing 90
Leagile Implementation Factors for Consider 94
Sustainability of a Leagile System 95
Lean and Strategy Formulation 99
Lean Tools 106
Summary 115
References 116
5 Impediments to Lean 117
Abstract 117
Lean Witnessed as a Never-Ending Process 117
Lean is Required to Transcend Beyond Manufacturing 118
Communication of Lean Internally 118
Impact of Subcultures 119
Influence of Organisational Structures 120
Relevance of IT on Lean 121
Individuality of an Organisation's Lean Journey 122
Promoting the Lean Benefits 123
The Alliance Between Lean and Accounting Procedures 123
Need to Maintain the Lean Initiative 125
Misunderstanding of Lean 126
A Lack of Broad Organisational Development 126
Mediocre Consultants 127
Conclusions 128
References 129
6 Lean and Performance Management 130
Abstract 130
Role of Performance Measurement in Lean 130
Measures Beyond Traditional Financial Analysis 132
Qualities of Good Metrics 133
Qualitative Versus Quantitative Metrics 134
Vanity Versus Actionable Metrics 135
Exploratory Versus Reporting Metrics 135
Leading Versus Lagging Metrics 136
Correlated Versus Causal Metrics 136
Requirements of a Performance Measurement System 137
Metrics to Use 140
Time Metrics 141
Cost Metrics 141
Quality Metrics 142
Output Metrics 142
Process Complexity 143
Organisational Metrics 143
Evaluation of Indices 143
Indices to Consider All Dimensions 146
A ``Balanced Scorecard'' Approach to Assess Lean 147
Generic Scorecard Precautions and Considerations 147
Summary 149
References 150
7 Appropriate Measurement Tools 151
Abstract 151
Methodology Choice 151
The Survey Questionnaire 153
Case Study 155
Case Study Benefits 156
Interviews 157
Ethical Considerations 158
Chapter Summary 159
References 160
8 Impact of Lean 161
Abstract 161
Impact of Lean 161
Lean Review 162
Lean Aiding Competitiveness 163
Lean Conditions Needed for Performance Improvements 165
Performance of Lean in Various Organisations 165
Larger Organisations and Lean 166
Crucial Success Factors 167
Differences and Variations in Lean Between the Sectors 168
Summary 169
References 170
9 Gauge the Adoption of Lean Within the: Automobile's Parts, Electronic, and Small Components Sectors and Understand the Reasons for Any Differences 173
Abstract 173
Lean Applied Within Components Sector 173
Triggers for Lean in Components Sector 174
Barriers to Lean Experienced Within the Components Sector 174
Strategic Aims of the Components Organisations 175
Lean Adoption Within the Components Sector 175
Performance Improvements Within the Components Sector Through Lean 175
Strategies to Improve Component Sector Performance Through Lean 176
Recent Trends Within the Components Sector 177
Lean Applied Within Automotive Parts Sector 177
Triggers for Lean Within the Automotive Parts Sector 178
Barriers to Lean Within the Automotive Parts Sector 178
Strategic Aims of the Automotive Parts Organisations 178
Lean Adoption Within the Automotive Parts Sector 179
Performance Improvements Within Automotive Parts Through Lean 179
Strategies to Improve Automotive Parts Performance Through Lean 180
Trends Within the Automotive Parts Sector 181
Lean Applied Within the Electronic Sector 181
Triggers for Lean Within the Electronic Sector 182
Barriers to Lean Within the Electronic Sector 182
Strategic Aims of the Electronic Organisations 183
Lean Adoption Within the Electronic Sector 183
Performance Improvements Within the Electronic Through Lean 183
Strategies to Improve Electronic Sector Performance via Lean 184
Summary of Trends Within the Electronic Sector 185
Summary 185
References 186
10 Initial Empirical Findings 189
Abstract 189
The Research Objectives 189
Preliminary Analysis 190
Performance Review 194
Summary 198
References 198
11 Empirical Evidence 199
Abstract 199
Descriptives 200
Correlational Analysis 200
Chi-Square Analysis 205
Nonparametric Analysis 208
Summary 209
12 Lean Sustainability Audit 210
Abstract 210
Concept of the Lean Audit 211
Review of the Prevalent Lean Assessment Tools 212
The Role of Lean Audits 221
A Comprehensive Lean Assessment 222
The Position of Lean Audits 222
Application of the Lean Audit 223
CI/Lean Assessment 225
Proposed Seven Stages of Lean 233
Summary 237
References 237
13 Lean Promoted as an Ideology 239
Abstract 239
Lean Forwarded as Synonymous to a Religion 240
The Longevity of Lean 241
The Lean Traditions 242
Lean as an Economic Reality 243
The Technical Application 244
The Proposed Rules to Follow 245
Misconceptions About the TPS 248
Summary 249
References 250
14 Lean Is Green 251
Abstract 251
Lean Is Green 251
Leaning the Business 252
The Tools of Lean 253
Earth Impacts 254
From Lean to Green Manufacturing 255
Efficiency Savings from Being Green 256
Business Rationale for Being ``Green'' 258
``Leanovations'' 259
Social Returns of Being Green 261
A Step Guide for Going Lean and Green 263
Considerations to Take into Account 266
Conclusions 268
References 268
15 Potential Issues with Lean 269
Abstract 269
Lean Perceived as a Panacea to Every Problem 269
Importance of Market Conditions 270
Public Reaction Towards Lean 271
Supplier Management 272
The Shortage of Blue-Collar Workers 273
Micro-strategy 274
Product Variety 274
Universal Production System 276
Impact of Lean on the HRM Issues 277
Stress 278
Overfocus on Waste 279
Perception Held Regards Lean 279
Certain Situations Are Regarded as More Conducive Towards Lean 280
No Margins for Error 283
Overfocus on Present 283
Lack of Standard Methodology 283
Financial Systems 284
Possible Solutions to Augment Lean Benefits 284
Summary 286
References 286
16 Lessons Learnt 288
Abstract 288
Lessons Learnt 288
Empirical Evidence of Lessons Learnt 293
Limitations of the Research 298
Future Research 299
Summary 299
References 300