Waste Technological innovations. Automation Work groups. Team work in industry. Economics Industries. Land use. Labor Management. Industrial management Costs Costs 33 titles from eBooks. Filter Results. Last 30 days. Last 90 days. All time. English Only. Applied Cost-Benefit Analysis 2nd ed. Edward Elgar Publishing Add to Cart Add to Cart.
Add to Wishlist Add to Wishlist. View More. It also: Guides readers with readily reproducible advice and an easy-to-follow model for sustaining Lean improvements Presents a case study of a successful multinational Lean implementation Covers a six-year Lean transformation from start to finish, illustrating the application of three distinct roadmaps Focusing on how to sustain change, the new edition of this bestselling reference, illustrates the experience of a multi-national company that successfully implemented Lean in its manufacturing and commercial operations.
Based on a model of sustainable change, the text defines by example the elements of successful Lean management that are often difficult to emulate as well as the more visible features of process management. Staying Lean The first edition of this highly acclaimed publication received a Shingo Research and Professional Publication Prize in However, acrossdifferent organisations, this may be in radically different ways. Improvements in the Order Fulfilment process are likely to deliver an increase incapacity in order to achieve a cost benefit.
Many businesses go wrong here,however, because they assume that is the goal of Lean. Worsethan this, many of the cost savings are often illusory.
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What for instance is the11 If we instead think of Lean more holistically, as an approach to deliver improved customer service and waste reduction, then the outcome should be an increase in profitable growth. In other words lean should deliver an optimal balance between these two areas aligned to the business goals and purpose. However, how can organisations do this if they are usually only addressing one single process whose improvement is likely to be largely about reducing cost?
The improvement of these processes is less likely to be about reducing cost and more about improving customer value. In other words they are about growing the business or filling capacity. I call this X and 2X thinking as this links to the profit potential of Lean in an organisation see Figure 5. By creating capacity through the improvement of processes like Order Fulfilment a business may achieve some cost reduction and hence deliver on some profit potential it may have had.
However, it is only when this capacity is utilised when processes such as Innovation and Order Creation are addressed that the full benefit will be reaped by the business. In my experience the profit potential benefit of filling this capacity is never less than twice as large as the benefit in creating the capacity. In some cases the ratio can be as much as X to 10X.
People 12 The principles of the lean business system Peter HinesThe area of people is misunderstood by many organisations applying Lean.
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It was in the leadership of the seniorexecutives. This reflection has been borne out many times in the times that Iand my colleagues have witnessed effective and sustainable change. Linked to leadership is the ability to engage people in the business. Toyota talksabout Respect for People. This means allowing the people who know the workbest — the people who do the work — to work out HOW we are going to improve.
Developing a culture of Continuous Improvement is not sufficient without thisfundamental respect for people figure 6. I will highlight 8 areas that need to beaddressed. Understanding the difference between management and leadershipIn general much of our career progression, HR policies and education system aredesigned to create high quality managers.
However, it is insufficient to create aneffective tomorrow. It is not sufficient as Bennis shows Table 4 to innovate,develop, inspire or challenge existing businesses. We need to manage and lead. By this they talk about Todays Job managing what I need to do now to be successful and Tomorrows Job leadingin terms of what I need to do to be successful in the future. Honda emphasisesthat each one of them is equally important.
Creating and deploying an inspiring visionPart of the leadership role is to inspire people to want to change. It is aboutcreating a vision, a direction, something for everyone to be inspired by.
Staying Lean, Second Edition
Defining, demonstrating and encouraging correct behavioursThe third area is about creating a culture where an appropriate behaviour set isinstilled right across the business. Aligning support policies and procedures with purposeWhen trying to implement a Lean approach it is necessary to ensure that thevarious supporting structures are aligned to the purpose.
We have already talkedabout the right KPIs and their deployment. Equally important is the alignment ofHR and accounting policies and procedures. As shown in Figure 7 below, this isnecessary as these policies and procedures underpin the required workforcecharacteristics which in themselves underpin the commercial and culturaloutcomes of a lean programme.
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We will return to thetraining and development area in the next section on Pull. These were applied to the annual performance review. Each manager had one-to-one discussions with employee about how they had exhibited these skills. Decisions on reward, recognition and promotion were equally weighted.
As aresult people were promoted who had the right attitudes, not just firefightingskills. Creating a dynamic communication systemIn my experience the best performing organisations have the bestcommunications systems, using a variety of methods to mirror differentpreferences that people have for absorbing information and providing feedback.
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What is important is that the communications are simple, well thought through, ina language and medium that are likely to be understood and are two-way. I have often found that the use of visual cues with appropriate data works well aswe saw in the yellow boards in Figure 3. Developing Situational LeadershipAnother important area within the People principle is adopting the appropriateleadership style at each stage of a Lean transformation. As we describe in detailin Staying Lean a business goes through a journey when applying Lean.
At each stage of the journey a different leadership style is required figure 8. Near the beginning a championing or driving approach is required. This involves16 The principles of the lean business system Peter Hinessenior managers and lean coaches getting things going, making projects workand getting early results. Later on the journey a more supportive or mentoringstyle is required to support the line in their lean journey. We will return to thischange in style in the Pull section below.
Working on Job DesignIn order to move the focus away from just doing the day job to thinking aboutcreating a better tomorrow, it is also necessary to consider job design at all levelsof the organisation. Consider the typical split of working time for executives,middle managers and operatives as shown in Figure 9.