Lean manufacturing or lean production, often simply “lean“, is a systematic method for the elimination of waste (“Muda“) within a manufacturing system. Lean also takes into account waste created through overburden (“Muri“) and waste created through unevenness in work loads (“Mura“). Working from the perspective of the client who consumes a product or service, “value” is any action or process that a customer would be willing to pay for.
Change is a process of transferring the organizational practices, culture, and system people for the purpose of improving / achieving organizational plans. Most of the time organizational changes are done based on the strategic management decisions. Even those are strategic level decisions the transformation process or the practical aspects of change management is little bit differ from the assumed.
If the top management requires changing the organization it is required to think about below things.
- Scale (the change affects all or most of the organization),
- Magnitude (it involves significant alterations of the status quo),
- Duration (it lasts for months, if not years), and
- Strategic importance.
Apart from the above bellow points will be much important for implement change.
- Start the change from top and transform it to lower level
- Systematic approach should be there for human side of change
- Requires of participating every layer for change
- Change process should formal (there is no any informal ways of change)
- Each and every person should have an ownership in change process
- There should be pre plan for unexpected things
- Communicate the message, goals of change to every one
- Speak to each individual and let them feel what the importance of change
There are main elements like below.
- Entering and contracting
- Diagnosing (Organization, groups and jobs.
- Planning and implementing change.
- Evaluating and institutionalizing
Entering and contracting
Entering & Contracting are the initial steps in the organizational development process. Entering and Contracting set the initial parameters for carrying out the subsequent phases of organizational development. It consists with three elements as follows.
- Clarifying the Organizational Issue
- Determining the relevant Clients
- Selecting the appropriate OD Practitioner
Diagnosis is the process of understanding current functioning of the organization. It will provide the information necessary for designing change interventions. It generally follows from successful entry and contracting.
Diagnosis may be aim uncovering causes for specific problems or it may be directed at assessing the overall functioning of the organization/department to discover the areas for future development.
Planning and implementing change
Here interventions are designed to achieve the organization’s vision or goals and make action plans to implement them. There are several criteria for designing interventions including the organization’s readiness for change, its current change capability, its culture and power distributions and change agent’s skills and abilities.
Evaluating and Institutionalizing
The final stage in planned change involves evaluating the effects of the intervention and managing the institutionalization of successful change programs.
Feed back to organization members about the intervention’s results provide information about whether the changes should be continued, modified or suspended.
When we consider the lean manufacturing concept, it has more than 50 years history. It started at different places in the world and stared more concept in USA at the second wold war time period. However after the war, USA had great responsibility to aid the destroyed countries to build up their nations.
Japan was one of the destroyed country and USA teach to japan some concepts that were used in the war. Japan got all the points and started to build their nation with developing concepts learned from USA.
However Japan is the country which use several lean tools with the lot of developments. They are practicing and believing the concept. TOYOTA is one of the famous company which use Lean manufacturing tool and improved their production. So, most of the people think, Lean started at Japan.
Main objective of Lean is reduction of Lead time. when consider the starting to end there are lot of processes in manufacturing environments. every processes included with waste. through the lean we can identify the waste in each process and can reduce or eliminate those. elimination of waste is the way to reduce the “Lead time”
When consider the world, there are lot of companies succeed through lean. as well as most companies failed to implement lean. when consider the failures there are lot of reasons based for that. in below briefly described few of those.
01. No Strategy – some organizations has not strategy. strategy mean organization’s should have vision for at least for next few years and should have plan to achieve the targets. Strategy should not be changed time by time.
02. No leadership Involvement – Lean is cultural change activity. when consider the cultural change, Leadership is very much important. Usually subordinates follow the leaders. If leaders do some thing, subordinates do that with the 10 times multiple actions.
03. Coping others – Most of the organizations try to implement Lean manufacturing concepts by observing other factories implementations. That is good to benchmark other success factories. However, we we going to implement we should customize the concept to suit for that organizations.
04. Thinking Lean is a tool – Most of the organizations think, Lean is an implementation of set of tools. Lean is a culture. To get better results and sustainability everyone in the organization should believe and practice the concepts.
05. Lack of customer focus – When consider the all processes in the organizations there should be some suppliers and customers. It may be internal as well as external. If we implement any system without focusing the customers requirements, It can be failed.
06. Not Engaging all employees – As mentioned earlier lean is cultural change so every ones involvement is must to sustain. in the organizations there are some levels, however every one has some responsibility to do. This is like some kind of chain. If anyone break the responsibility total chain can be clasped.
07. Not Educating Employees – According to the lean first we should teach all employees regarding the change which we have planned. It is not same the culture and education of each one. The other thing is there can be different attitudes and different belief. So, teaching is very important.
08. Lack of Understanding – In every organizations there are some employees work more than 20 years. They are very comfortable with the current situation. When the management try to implement new things, first they think new systems as threats. That is total based on lack of understanding. This is little bit link with previous point. Because organization’s can eliminate this condition with the proper education systems.
09. Thinking System as a coat – There are some organizations go for the lean without understanding what is lean and what are the benefits. They are implementing lean because of customer request or fashion. So, they think Lean is a coat. They wear this coat only to take others attraction
10. Conflicting Metrics – In the same organization there can be some different ideas among top management. They have different focus. So, each one drives their own strategies. Not every one align to same objectives.
If any organizations want to success the implementation of lean manufacturing, definitely we want to address above issues.
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When we consider the lean manufacturing concept, organizations want to focus 08 points to sustain in operational floor. In below there are brief description about those 08 points.
01. At least two processes should interconnected.
If the organization want to get more benefits through the lean, processes connecting is very important thing. as we all know, ultimate goal of lean is reduce the lead time. to reduce the lead time, elimination of waste is must. through the process connecting, organization can reduce their waste at some level. The other thing is, core process should included in the processes connecting. That mean it is meaningless to connect other all processes without including core processes. There are lot of benefits can achieve through the processes connecting as mentioned in below.
- Promotes a change from departmental thinking to value stream thinking and operations.
- Inventory between processes is controlled and reduced.
- Communication is improved
- Quality issue resolution is improved
02. Inventory should be controlled
When consider the inventories, we have to address mainly 03 things. Such as Raw materials, Work In Progress (WIP) and Finished good. Huge inventory creates the clutter environment and it leads to cover the problems. The other thing is organization can reduce their cycle times through the inventory reduction. Below included some of the benefits which can achieve through the Inventory control system.
- Eliminates inventory storage between processes
- Highlights out of standard inventory conditions
- Sets up an operational method where customer process initiates movement of material.
03. Andon System
A Visual and audible method for line workers to call for help. Generally used for material delivery, equipment breakdown or problem resolution.
Andon system should be placed and routinely utilized by team members as needed. There are lot of advantages can achieved through this system.
- Speedup the communication
- Problem surfacing
- Eliminate problem deviations
- Quick response to problems from line leadership.
04. Appropriate Metrics
When consider any kind of organization, they are following and monitoring some KPIs. However most of the organizations do not visualize those things. All most all data hidden in the organization and very few relevant peoples only know about that data. However If any organization can visualize Safety, Quality, Delivery and Cost Data to all employees all they are drive to minimize the gap between actual and target. Below are some benefits.
- Provide means of tracking line level operational performance against targets in order to drive improvement.
- Metrics up to date and relevant to the production line
05. In Station Quality (ISQ)
In-station quality should be implemented for the core value stream. Inspection at the source, not just at the end of the line.
Building quality at every station in the process. Operators perform quality checks. there are few benefits can achieve through ISQ like below.
- Defects are not passed to the next operation
- Quality reviews in-process, not just at end of line.
06. Standardized Work (SWS)
If organization want to minimize the variations of their processes, SWS take vital role. Usually Organization can implement SWS for any kind of operation. There are two main benefits from this concept.
- Reduces process variables.
- Assures stable outcome of the process.
07. 5S & Visual Management
Evidence of 5s and Visual management tools and practices should be visible.Provides a systematic method for good workplace cleanliness and organization Visual management tools easily highlight standard from non-standard operating conditions. Some benefits are below.
- Visual management tools easily highlight standard from non-standard operating conditions.
- A Simple signal that provide understanding of the condition
- Visual control to see the abnormalities
08. Core value stream managed as a single entity
If any organization expect the positive growth, that organization should have vision and focus that vision without trying to achieve just only departmental goals. There are some benefits.
- Core value stream managed as a single entity, not by individual processes.
- Promotes horizontal integration around product processes.
- Clarifies new behaviors and responsibilities for Team Members and Leaders
- Starts to set up value stream management contrasted to separately operating departments.
If any organization can maintain above 08 points in their orations, It is crystal clear that organization move to development path.
According to the Mr. Taiichi Ohno’s saying, “Data is of course important in manufacturing. However I place the greatest emphasis on facts”
If anyone want to understand some issue or deviation against standard, facts is very much important when compare with the data. because everyone can change the data according to the requirements.
As all know everyone work if they have some kind of system measurement system for their work. That is called as performance measuring system. Special thing is performance measurement system should directly tie to the organizations goals and also those should add value to the customer.A change in the value of a performance measure should be felt by the customer of the process If metrics show a change and the customer doesn’t perceive a difference, then we’re not measuring the right things or we’ve defined our customer incorrectly.
Performance measures act as both identifiers and quantifiers of improvement opportunities.
According to the above pyramid, Measurement promote understanding, Understanding support to generate the good solutions and solutions to issues enable improved performance.
Good performance measures should include following things;
1.Simple – Use metrics that are easy to capture, compile, and update. Complex calculations or excessive work may lead people to avoid them
2.Directly impacted – Process changes should have a clear and measurable affect on the chosen measures
3.Informative – Suitable metrics may not always reveal the source of an issue, but they need to alert us when problems exist
4.Limited in number – Each area should have only 2-3 key measures
5.Visually displayed – Results should be posted for all to see
When consider the purpose of measuring, we can highlight following things….
Alignment: Everyone can understand if they are supporting the goals.
Feedback and Control: – Share information in real time to catch problems before they affect customer.
Performance improvements: – Metric records are basis for PDCA improvement activities.
Motivation means the processes that account for an individual’s intensity, direction, and persistence of effort toward attaining goal.
- Intensity – how hard a person tries
- Direction – toward beneficial goal
- Persistence – how long a person tries
The Basic Process of Motivation
Theories of motivation
|Content Theories||Process Theories||Reinforcement Theories|
|Hierarchy of Needs Theory||Equity Theory||Reinforcement Theory|
|ERG Theory||Expectancy Theory|
|Two- Factors Theory||Goal – setting Theory|
|McClellond’s Theory of Needs|
Organization is a social system.
Development is the act, process, result or state of being developed which in turn, means to advance, to promote the growth of, to evolve the possibilities of, to improve, or to enhance something.
Organizational Development is “An effort, planned, organization-wide, and managed from the top, to increase organization effectiveness and health through planned interventions in the organization’s processes, uses behavioural-science knowledge.”
(Richard Beckhard, 1969)
- Managed from the top: To be effective, Organizational Development must have the support of top-management. They have to model it, not just espouse it. The OD process also needs the buy-in and ownership of workers throughout the organization.
- Increase organization effectiveness: OD is tied to the bottom-line. Its goal is to improve the organization, to make it more efficient and more competitive by aligning the organization’s systems with its people.
- Planned interventions: After proper preparation, OD uses activities called interventions to make system wide, permanent changes in the organization.
- Using behavioural-science knowledge: OD is a discipline that combines research and experience to understanding people, business systems, and their interactions.
What is an E – Business ‘The conduct of automated business transactions by means of electronic communication networks (via the internet and /or possibly private networks) end-to-end’
What are the benefits of E-Business
• Global reach
• Reduced cost
• Higher productivity and efficiency
Types of E- Business (You may have opportunities in this areas)
Business that sells products or provides services to other businesses
Business that sells products or provides services to end-user consumers
Consumers sell directly to other consumers
Government buys or provides goods, services or information to/from businesses or individual citizens
Information and services made available to employees online
Mobile commerce (m-commerce)
e-commerce transactions and activities conducted in a wireless environment
Collaborative commerce (c-commerce)
Individuals or groups communicate or collaborate online
Challenges for E-business
1. Building customer loyalty
2. Creating new products/services
3. Achieving market leadership
4. Reformation of business processes
5. Establishing compliance
6. Reaching new markets