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Friday, January 23, 2009

Lean Enterprise



For everything you wanted to know on building leadership and management, refer Shyam Bhatawdekar’s website: http://shyam.bhatawdekar.com

(Refer our High Quality Management Encyclopedia “Management Universe” at: http://management-universe.blogspot.com/)

Scope of Lean Concept, Lean Thinking and Practices
  • Lean concept and practices cover both manufacturing and non-manufacturing organizations (all types of services, health care, government, NGOs, non-profit organizations etc).
  • They apply to large, medium and small organizations.
  • Lean thinking gives broad perspective on effectively providing goods and services.
  • It is a human system.
  • It is customer focused and customer driven. Employees within and outside the workplace are also treated as customers.
  • It is rigorous process thinking and practices.

Various Names

Due to it's wider scope, lean thinking and practices are know by many names as given below:

  • Lean enterprise
  • Lean organization
  • Lean manufacturing
  • Lean production

History

  • First traces of lean manufacturing are available in the flow production system (moving assembly line) devised by Henry Ford in 1913 at Highland Park, MI. In years to come, his system did not respond too well to multi-model production requirements. Other automobile manufacturers suitably modified their system accordingly.
  • Kiichiro Toyoda, Taiichi Ohno, and others at Toyota revisited Ford’s thinking, first in 1930 and more seriously, after the second world war and designed the Toyota Production System (TPS). They invented series of simple innovations to provide both continuity in process flow and a wide variety in product offerings.
  • Now, lean concepts and practices are continuing to spread to every country in the world.
  • Professionals are now using the principles and tools of lean not only in manufacturing but also in logistics/distribution, services of all kinds, retail, health care, construction, education and government.
  • "Lean" is meant for all the functional processes as well as for cross-functional processes.

Essence of Lean

More value with less work and therefore, with minimum expenditure of overall resources and associated costs.

Meaning of Value for Money (VFM)

Value to customer (VFM) = (Total quality "Q" X Total service inclusive of pre, during and post customer service "S" X Relationship with customers "R") divided by (Price "P" X Lead times "L")

Price (P) = Overall costs (C) + profit

Objective of lean systems is to maximize the VFM as compared to the overall incurred costs. Therefore, to meet this objective, the organizations should continuously improve "Q", "S" and "R" and continuously reduce "P", "C" and "L".

Lean systems are designed to achieve these continuous improvements.

Basics of Lean Management

  • Decide upon the value for money (VFM) expected by the customers for each family of products. In highly competitive businesses, it is not good enough to meet the minimum expectations of the customers but to go beyond the minimum and provide "above customer expectations" (ACE) or provide "customer delight" and not just the "customer satisfaction".
  • Identify the supply value chains for each product family and their existing functional and cross-functional processes/sub-processes and related activities. Examine all of them to find out the non-value adding or wasteful processes/sub-processes and activities and gradually weed them out.
  • Make the products flow continuously with the now lean value chains consisting of only value adding processes/sub-processes and activities.
  • Make only that much what the customers want. It is called "pull" method as against the old "push" method. In pull method, customer requirements dictate all the up-stream factors.
  • Carry out continuous improvements in further strengthening and perfecting the supply value chains and their processes/sub-processes and activities.

Muri, Mura and Muda of Lean Management

Muri: Planning and preparation of the processes/sub-processes and related activities by proactively excluding all the non-value adding elements during their design.

Mura: Designed processes/sub-processes and activities are implemented and the fluctuations at the scheduling and operations levels related to quality and volume are identified and eliminated.

Muda: After the processes/sub-processes and activities are designed, balanced and implemented, it is still necessary to examine the wasteful or non-value adding elements during the actual working and eliminate them. It is necessary to find the root level causes for these wastes by considering the connections to the muri and mura of the system. Muda and mura faults/inconsistencies need to be fed back to muri (planning stage) for improvements in next projects.

Seven Notorious Wastes (Muda)

  1. Waste from over production
  2. Waste of waiting time
  3. Transportation waste
  4. Processing waste
  5. Inventory waste
  6. Waste of motion
  7. Waste from production defects

Systems, Tools and Techniques of Lean Management

There are large numbers of known tools and techniques of lean management. A good list of them is given below (not in any particular order):

For More Guidance, Assistance, Training and Consultation

Contact: prodcons@prodcons.com

Training in "Lean Enterprise" or "Lean Management" and "World Class Manufacturing" is provided by Prodcons Group's Mr Shyam Bhatawdekar, high flier business executive, eminent management consultant and trainer- par excellence, with distinction of having trained over 150,000 people from around 250 organization.

Also refer: (Prodcons Group) http://prodcons-group.blogspot.com/, (Training Programs by Prodcons Group) http://training-development-function.blogspot.com/, (Productivity Consultants) http://productivity-consultants.blogspot.com/

Other Topics of Interest

All Management Topics (General Management, Marketing and Sales, Service, Operations/Manufacturing, Quality, Maintenance, Human Resources, Finance and Accounts, Information Technology, Life Management)

The topics are listed in alphabetic order:

(Home Pages for All the Management Topics) http://management-universe.blogspot.com/ and http://management-universe-enotes.blogspot.com/
(Building Leadership and Management) http://shyam.bhatawdekar.com
(Alphabetic List of All Management Topics) http://management-enotes.blogspot.com/
(Home Page for Writings of Shyam Bhatawdekar) http://writings-of-shyam.blogspot.com/
(5S Housekeeping) http://5s-housekeeping.blogspot.com/
(Activity Based Costing- ABC) http://activitybased-costing.blogspot.com/
(Advertising) http://advertising-mass-communication.blogspot.com/
(Anger Management) http://controlling-anger.blogspot.com/
(Assertiveness) http://assertiveness-skill.blogspot.com/
(Assessment Centers) http://assessment-centers.blogspot.com/
(A to Z of Management Systems) http://a-z-management-systems.blogspot.com/
(A to Z of Quality Techniques) http://a-z-quality-techniques.blogspot.com/
(Balanced Scorecard) http://balanced-scorecard-system.blogspot.com/
(Basic Statistics) http://statistics-basic.blogspot.com/
(Behavioral Safety) http://behavioral-safety.blogspot.com/
(Benchmarking) http://benchmarking-system.blogspot.com/
(Body Language or Non-verbal Communication) http://body-language-communication.blogspot.com/
(Books- Best Management Books) http://best-management-books.blogspot.com/
(Boundaryless) http://shyambhatawdekar.blogspot.com/
(Brainstorming) http://brainstorming-technique.blogspot.com/
(Business Ethics and Ethics in Management) http://business-management-ethics.blogspot.com/ (Business Plan) http://business-plan-document.blogspot.com/
(Business Process Reengineering- BPR) http://business-process-reengineering-bpr.blogspot.com/
(Career Planning within Organizations) http://organizational-career-planning.blogspot.com/
(Case Method) http://case-method.blogspot.com/
(Case Studies in Management) http://corporate-case-studies.blogspot.com/
(CEO Roles, Qualities and Competencies) http://ceo-qualities.blogspot.com/
(Change Management) http://manage-change.blogspot.com/
(Coaching) http://coaching-skill.blogspot.com/
(Communication) http://communication-for-business.blogspot.com/
(Competencies- Life Management) http://shyam-bhatawdekar.blogspot.com/
(Competency Matrix) http://competency-matrix.blogspot.com/
(Conflict Management) http://manage-conflict.blogspot.com/
(Corporate Governance) http://corporate-governance-policy.blogspot.com/
(Cost Management) http://cost-management-control.blogspot.com/
(Cost of Quality- COQ) http://cost-of-quality.blogspot.com/
(Counseling at Workplace) http://counseling-skill.blogspot.com/
(Creativity and Innovation) http://creativity-management.blogspot.com/
(Critical Thinking skills) http://critical-thinking-skills.blogspot.com/
(Cross Cultural Etiquette and Manners) http://cross-cultural-etiquette.blogspot.com/
(Customer Orientation) http://customer-orientation.blogspot.com/
(Customer Relationship management- CRM) http://customer-relationship-crm.blogspot.com/
(Daily Management) http://daily-management.blogspot.com/
(Decision Making) http://decision-making-function.blogspot.com/
(Delegation) http://delegation-skill.blogspot.com/
(Design for Manufacture) http://design-for-manufacture.blogspot.com/
(Dining Etiquette and Table Manners) http://dining-manners.blogspot.com/
(Discipline at Work) http://discipline-at-work.blogspot.com/
(Dream Exotic) http://knol.google.com/k/shyam-bhatawdekar/my-exotic-dream/6txz9nck6g3/8#
(Effectiveness and Efficiency) http://effectiveness-efficiency.blogspot.com/
(Effectiveness Management: HSoftware) http://humansoftware.blogspot.com/
(Efficiency Techniques: Work study: Motion and Time Study) http://work-study-measurement.blogspot.com/
(Efficient Work Methods or Practices) http://efficient-work-methods.blogspot.com/
(Email Etiquette) http://email-etiquette-manners.blogspot.com/
(Emotional Intelligence) http://emotional-quotient-intelligence.blogspot.com/
(Empowerment) http://employee-empowerment.blogspot.com/
(Enterprise Resource Planning- ERP) http://erp-management.blogspot.com/
(Entrepreneurship and Entrepreneur) http://entrepreneurship-entrepreneur.blogspot.com/
(Executive Etiquette and Manners) http://executive-manners.blogspot.com/
(Exit Interview) http://exit-interview.blogspot.com/
(Financial Ratios and Financial Ratio Analysis) http://financial-ratios.blogspot.com/
(Financial Services) http://finance-related-services.blogspot.com/
(Functions of Management) http://functions-of-management.blogspot.com/
(Gemba Kaizen) http://gemba-kaizen-improvement.blogspot.com/
(Genuine Professional) http://knol.google.com/k/shyam-bhatawdekar/the-genuine-professional/6txz9nck6g3/10#
(Global Mindset) http://global-mindset.blogspot.com/
(Goal/Target Setting) http://goal-target-setting.blogspot.com/
(Group Discussion) http://group-discussion-gd.blogspot.com/
(Group Dynamics) http://group-dynamics-process.blogspot.com/
(How to Be a Good Boss) http://good-boss.blogspot.com/
(How to Get Promoted) http://get-promoted.blogspot.com/
(How to save Money) http://knol.google.com/k/shyam-bhatawdekar/how-to-save-money/6txz9nck6g3/11#
(HR Dynamics) http://hrm-dynamics.blogspot.com/
(HR Strategies and Functions) http://strategic-functions-hrm.blogspot.com/
(Human Capital Architecture) http://human-capital-architecture.blogspot.com/
(Human Relations) http://human-relations-aspect.blogspot.com/
(Human Resource Planning) http://human-resource-planning.blogspot.com/
(Human Software- HSoftware) http://human-software-hsoftware.blogspot.com/
(Internal Motivation or Self Motivation) http://internal-motivation.blogspot.com/
(Interpersonal Relations) http://interpersonal-relations.blogspot.com/
(Interview Skills) http://interviewing-skill.blogspot.com/
(Interview Preparation for Job Seekers) http://interview-preparation-jobs.blogspot.com/
(Interview Questions) http://interview-question-bank.blogspot.com/
(Just in Time Management- JIT) http://just-in-time-management.blogspot.com/
(Kaizen) http://kaizen-improvement.blogspot.com/
(Knowledge Management) http://knowledge-management-initiative.blogspot.com/
(Lead Time Management) http://lead-time-management.blogspot.com/
(Leadership) http://lead-max.blogspot.com/
(Lean Enterprise) http://lean-organization.blogspot.com/
(Learning Organization) http://learning-organization-profile.blogspot.com/
(Life Management: Competencies) http://knol.google.com/k/shyam-bhatawdekar/competency-matrix/6txz9nck6g3/4#
(Life Management: Effectiveness Management: HSoftware) http://knol.google.com/k/shyam-bhatawdekar/management-in-life-profession-family/6txz9nck6g3/3#
(Life Management: I Am Liberated) http://knol.google.com/k/shyam-bhatawdekar/i-am-liberated/6txz9nck6g3/6#
(Life Positions and OKness) http://life-positions.blogspot.com/
(Life Skills) http://life-skills-competencies.blogspot.com/
(Listening) http://listen-skills.blogspot.com/
(Management Anecdotes) http://management-anecdotes.blogspot.com/
(Management Book- Best Books) http://best-management-books.blogspot.com/
(Management Information System- MIS) http://management-information-system-mis.blogspot.com/
(Managing/conducting Meetings) http://managing-meetings.blogspot.com/
(Management Notes- Free and Authentic) http://authentic-management-notes.blogspot.com/
(Marginal Utility) http://marginal-utility-concept.blogspot.com/
(Marketing Management Overview) http://marketing-management-overview.blogspot.com/
(Marketing Management Tasks) http://marketing-management-tasks.blogspot.com/
(Marketing Orientation) http://marketing-orientation.blogspot.com/
(Market Research) http://market-research-function.blogspot.com/
(Market Segmentation) http://market-segment.blogspot.com/
(Mentoring) http://mentor-mentorship.blogspot.com/
(Motivation) http://motivation-people.blogspot.com/
(Musings of Shyam Bhatawdekar on every topic on the earth) http://shyam-bhatawdekar-musings.blogspot.com/
(Negotiation Skills) http://negotiating-skills.blogspot.com/
(Negotiation Tactics) http://negotiation-tactics.blogspot.com/
(Objection Handling) http://objection-handling.blogspot.com/
(Organization Development- OD) http://organization-development-od.blogspot.com/
(Organizational Culture) http://organizational-culture-values.blogspot.com/
(Out of Box Ideas) http://wow-idea.blogspot.com/
(Ownership on Job) http://job-ownership.blogspot.com/
(Paradigm and Paradigm Shift) http://paradigm-mindset.blogspot.com/
(Performance Management and Appraisal) http://performance-appraisal-management.blogspot.com/
(Personality) http://human-personality.blogspot.com/
(Positive Strokes) http://positive-strokes.blogspot.com/
(Presentation Skills) http://presentation-effectiveness.blogspot.com/
(Problem Solving) http://problem-solving-skill.blogspot.com/
(Profit Improvement) http://profit-improvement.blogspot.com/
(Project Management) http://management-of-project.blogspot.com/
(Public Speaking) http://public-speak-skill.blogspot.com/
(Quality Circles History) http://quality-circles-history.blogspot.com/
(Quality Circles) http://quality-circles.blogspot.com/
(Quality Function Deployment- QFD and House of Quality) http://quality-function-deployment.blogspot.com/
(Quality Gurus) http://quality-gurus.blogspot.com/
(Recession) http://knol.google.com/k/shyam-bhatawdekar/recession/6txz9nck6g3/7#
(Recession Management) http://recession-management.blogspot.com/
(Recession and Opportunities) http://knol.google.com/k/kalpana-bhatawdekar/recession-and-opportunities/1268ytxl8r5dc/1
(Recruitment and Selection) http://recruitment-selection.blogspot.com/
(Research Methodology) http://research-work-methodology.blogspot.com/
(Safety and Health Management) http://safety-health-management.blogspot.com/
(Sales/Selling Process) http://selling-process.blogspot.com/
(Sales Promotion) http://sales-promotion.blogspot.com/
(Self-concept) http://self-concept-image.blogspot.com/
(Self-concept) http://self-image-concept.blogspot.com/
(Self-concept) http://knol.google.com/k/shyam-bhatawdekar/self-concept/6txz9nck6g3/12#
(Self Motivation or Internal Motivation) http://internal-motivation.blogspot.com/
(Self-confidence) http://self-confidence-improvement.blogspot.com/
(Self Development) http://managing-self.blogspot.com/
(Shyam Bhatawdekar’s Articles on Management) http://writings-of-shyam.blogspot.com/
(Six Sigma) http://six-sigma-system.blogspot.com/
(Six Thinking Hats) http://six-thinking-hats.blogspot.com/
(Soft Skills) http://soft-skills-competencies.blogspot.com/
(Spiritual Quotient/Intelligence) http://spiritual-quotient.blogspot.com/
(Statistics- Basic) http://statistics-basic.blogspot.com/
(Strategic Management) http://strategic-managing.blogspot.com/
(Stress Management) http://management-of-stress.blogspot.com/
(Stress Management) http://managing-stress-strain.blogspot.com/
(Success in Life or Success) http://success-achievement.blogspot.com/
(Success in Life or Success) http://knol.google.com/k/shyam-bhatawdekar/success-in-life/6txz9nck6g3/14#view
(Supply Chain Management) http://manage-supply-chain.blogspot.com/
(Supply and Demand) http://supply-demand-laws.blogspot.com/
(Talent Management) http://managing-talent.blogspot.com/
(Team Building) http://team-building-working.blogspot.com/
(Telephone Etiquette) http://telephone-etiquette.blogspot.com/
(Three Sixty Degrees Appraisal System) http://three-sixty-degrees-feedback.blogspot.com/
(Time Management) http://time-life-management.blogspot.com/
(Total Productive Maintenance- TPM) http://total-productive-maintenance.blogspot.com/
(Total Quality Management- TQM) http://total-quality-concept.blogspot.com/
(Training and Development) http://training-function.blogspot.com/
(Trainers’ Qualities) http://trainers-qualities.blogspot.com/
(Transaction Analysis- TA) http://transaction-analysis.blogspot.com/
(TRIZ- Inventive Problem Solving) http://triz-problem-solving.blogspot.com/
(Value Engineering/Analysis) http://value-engineering-analysis.blogspot.com/
(Winners and Losers) http://winners-losers.blogspot.com/
(Work Study: Method Study and Work Measurement) http://work-study-measurement.blogspot.com/
(Work Methods or Practices: Efficient) http://efficient-work-methods.blogspot.com/
(World Class Manufacturing) http://world-class-manufacturing.blogspot.com/
(Writings of Shyam Bhatawdekar on Management) http://writings-of-shyam.blogspot.com/
(Written Communication) http://written-communication.blogspot.com/
(Zero Based Budgeting) http://zero-based-budgeting.blogspot.com/

Counseling: General and Psychological
(Anger Management) http://controlling-anger.blogspot.com/
(Children’s Behavior Problems) http://child-behavior-problems.blogspot.com/
(Cholesterol Control) http://controlling-cholesterol.blogspot.com/
(Counseling: Psychological) http://counselingfamily.blogspot.com/
(Counseling: Psychological) http://counseling-family.blogspot.com/
(Cross Cultural Etiquette) http://cross-cultural-etiquette.blogspot.com/
(Emotions) http://emotion-feeling.blogspot.com/
(Executive Etiquette and Manners) http://executive-manners.blogspot.com/
(Exercises) http://exercises-plan.blogspot.com/
(Family Counseling) http://family-harmony.blogspot.com/
(Health: Homeopathy) http://homeopathy-medicines.blogspot.com/
(LifeManagement: Competencies) http://knol.google.com/k/shyam-bhatawdekar/competency-matrix/6txz9nck6g3/4#
(Life Management: Effectiveness Management: HSoftware) http://knol.google.com/k/shyam-bhatawdekar/management-in-life-profession-family/6txz9nck6g3/3#
(Life management: I Am Liberated) http://knol.google.com/k/shyam-bhatawdekar/i-am-liberated/6txz9nck6g3/6#view
(Marriage Counseling) http://marriage-counsel.blogspot.com/
(Ownership on Job) http://job-ownership.blogspot.com/
(Parental Responsibilities) http://parental-responsibilities.blogspot.com/
(Personality) http://human-personality.blogspot.com/
(Qualities of Spouse) http://spouse-qualities.blogspot.com/
(Quit Smoking) http://quit-smoking-plan.blogspot.com/
(Self Development) http://managing-self.blogspot.com/
(Self-confidence) http://self-confidence-improvement.blogspot.com/
(Stress Management) http://managing-stress-strain.blogspot.com/
(Stress Management) http://management-of-stress.blogspot.com/
(Swine Flu and Its Prevention) http://swine-flu-precaution.blogspot.com/
(Telephone Etiquette) http://telephone-etiquette.blogspot.com/
(Walking) http://walking-plan.blogspot.com/
(Winners and Losers) http://winners-losers.blogspot.com/

About All the Products
(Home Page for All Products) http://products-all.blogspot.com/
(Cars) http://cars-products.blogspot.com/
(Chocolates) http://chocolates-products.blogspot.com/
(Flowers) http://flowers-products.blogspot.com/
(Greeting Cards) http://greeting-cards-products.blogspot.com/
(Mobile Phones) http://mobilephones-products.blogspot.com/

Home Tips
(Home Page for All Home Tips) http://home-tips-tricks.blogspot.com/
(Entertainment: Movies) http://popular-movies.blogspot.com/
(Oscar Award Movies) http://oscar-award-movies.blogspot.com/
(Entertainment: Recommended Hindi Movies) http://unforgettable-hindi-movies.blogspot.com/
(Entertainment- Hindi Movies of Your Choice) http://hindi-movies-choice.blogspot.com/
(Plagiarized, Copied or Inspired Hindi Movies) http://copied-hindi-movies.blogspot.com/
(Health: Homeopathy) http://homeopathy-medicines.blogspot.com/
(Housekeeping at Home) http://5s-housekeeping-home.blogspot.com/
(How to Save Money) http://save-money-ideas.blogspot.com/ or http://knol.google.com/k/shyam-bhatawdekar/how-to-save-money/6txz9nck6g3/11#
(Jewelry Design) http://thejewellerydesigner.blogspot.com/
(Recipes: Easy to Cook) http://easytocook-recipes.blogspot.com/
(Recipes: Exotic) http://tastetherecipes.blogspot.com/
(Stories for Children) http://stories-children.blogspot.com/
(Travel and Sightseeing- India) http://india-tours-sightseeing.blogspot.com/
(Travel and Sightseeing- World) http://sightseeing-guide.blogspot.com/
(World Heritage Sites) http://world-heritage-spots.blogspot.com/

General Knowledge and Out of Box Ideas
(General Knowledge- GK) http://general-knowledge-gk.blogspot.com/
(General Knowledge- Top 5 of Everything) http://top-five-everything.blogspot.com/
(General Knowledge- Top 10 of Everything) http://top-ten-anything.blogspot.com/
(Out of Box Ideas) http://wow-idea.blogspot.com/
(Shyam Bhatawdekar’s Knols) http://knol.google.com/k/shyam-bhatawdekar/shyam-bhatawdekar/6txz9nck6g3/1#
(Running Commentary on the Run) http://running-comments.blogspot.com/