Sunday, November 15, 2009

Why Lean, Why Now?

Lean eliminates waste and as a result increases efficiency. As we move along the bottom of this economic cycle, being efficient is of great importance to any enterprise. With sales and profits constrained, every dollar saved is an important contribution to the bottom line. At some point the recovery will begin and that is when the efficiency improvements will enable an enterprise to capture market share from less prepared competitors. When an organization embarks on the path to Lean, there is often resistance from team members who fear that their position may be eliminated. Likewise removing waste and improving flow means lower inventory levels. Inventory reduction can make people nervous that they will not have the material to work on or sell to the customer.


Due to the recession many firms have already reduced inventory and staff. During the recovery phase, being responsive to customer demand increases is essential. The best way to do this is to increase productivity and capacity while reducing cycle time. Applying Lean thinking enables all three of these process improvements. Before the recovery, invest not in inventory that may become a liability but in the team. The people on staff are likely the best remaining. Give them knowledge of Lean and team tools to help the firm grow more efficiently in the future recovery. The team should view Lean as a means of improving job security and motivation. Management may even need to guarantee that no staff reductions will be the result of implementing Lean.

If the recovery is delayed, an enterprise can use Lean training to fill some of the staff time. Rather than furloughs and temporary layoffs, start a series of Lean classes. Getting a Lean organization in place will allow the business to cope best with the changes in demand. Meeting these will preserve or improve your service level target with customers. Highly constrained businesses of today need the flexibility of a Lean system to cope with demand adjustments. Coping with demand adjustments enables capturing of market share.

Lean will provide the enterprise with beneficial savings at the bottom of the economic cycle and be an advantage in the recovery period.  These are the reasons Lean should be implemented and implemented now.

Saturday, October 17, 2009

Top Ten Books for Lean ++

In order to understand the concepts underlying Lean ++, the following top ten list provides the reader with the best underlying texts in each area. Items 1, 2, and 3 focus on Lean and the specialties of value stream mapping (VSM) and voice of the customer. Item 4 integrates Lean and Six Sigma and a bit of Theory of Constraints (TOC). This book really demonstrates how elements of each discipline are being included into one another. Items 5 and 6 are the heart of TOC written in a story format. Items 7 and 8 are more academic texts on TOC. Item 9 is the foundation of all requirement and resource planning systems. Item 10 opens the door on the world of sustainability.




To get a quick introduction read books 1 and 5.  Keep 4 for an optional reading and 9 and 10 for deeper insight.



1. Womack, James P. and Daniel T. Jones. Lean Thinking. New York, New York: Free Press, 2003

2. Rother, Mike and John Shook. Learning to See. Cambridge , Mass.: Lean Enterprise Institute, 2003

3. Barnard, William and Thomas F. Wallace. The Innovation Edge - Creating Strategic Breakthroughs Using the Voice of the Customer. New London, N. H.: Oliver Wight Ltd. Publications, 1995

4. George, Michael L.. Lean Six Sigma: Combining Six Sigma Quality with Lean Speed. New York, New York: McGraw-Hill, 2002

5. Goldratt, Eliyahu and Jeff Cox. The Goal. Great Barrington, Mass.: The North River Press, 1992

6. Goldratt, Eliyahu. It’s Not Luck. Great Barrington, Mass.: The North River Press, 1994

7. Schragenheim, Eli and H. William Dettmer. Manufacturing at Warp Speed: Optimizing Supply Chain Financial Performance. New York, New York: St. Lucie Press, 2001

8. Dettmer, H. William. The Logical Thinking Process: A Systems Approach to Complex Problem Solving. Milwaukee, Wisconsin: ASQ Quality Press, 2007

9. Orlicky, Joseph. Material Requirements Planning. New York, New York: McGraw-Hill, 1975

10. Dunphy, Dexter and Andrew Griffiths and Suzanne Benn. Organizational Change for Corporate Sustainability. Second Edition, New York, New York: Routledge, 2007

Thursday, October 1, 2009

Lean today

In today’s litany of tools for business process improvement, Lean is not enough. It has augmented previous disciplines like ERP and been added to by TOC and six sigma. There is also an emerging understanding that Lean is a fundamental step on the path to becoming a green enterprise.




“Lean ++” is the concept that all these elements fit together in an integrated whole that can be adjusted to fit the needs of each enterprise. As one reads the literature one finds elements form the other disciplines appearing. Each tool has a unique area where it is strongest:



– Theory of Constraints (TOC)

• What, why, how

– Lean

• Order, JIT, continuous improvement

– Six Sigma

• Process control, variation reduction

– ERP (Enterprise Resource Planning)

• Long term integrated planning

– Green

• Minimization of resource utilization



For a business to truly compete in the modern world it must combine them. Lean is the easiest starting point thus the name “Lean ++.”