fbpx
Wikipedia

Lean dynamics

January 01, 1970

Lean dynamics is a business management practice that emphasizes the same primary outcome as lean manufacturing or lean production of eliminating wasteful expenditure of resources. However, it is distinguished by its different focus of creating a structure for accommodating the dynamic business conditions that cause these wastes to accumulate in the first place.

Like lean manufacturing, lean dynamics is a variation on the theme of creating efficiencies and greater value by optimizing flow rather than by maximizing economies of scale.[1][2] As such, it represents an important chapter in the broader discussion of Taylorism,[3] Fordisim,[4] Alfred Sloan's standard volume methodology,[5] Peter Drucker's philosophy on the "theory of the business"[6] and Genichi Taguchi's analysis of loss. Its general philosophy has grown in popularity over recent years, in large part because of the increasingly challenging circumstances faced by the global business world (particularly evident during the 2008–2009 worldwide economic downturn.)[7]

This need to create greater efficiencies while competing in an environment that demands constant change and innovation seems to be responsible for the emergence of lean dynamics as a recognized business improvement approach.[8]

Overview edit

The term "lean" was first coined by a researcher at MIT and later popularized by the best-selling book, The Machine that Changed the World (1990).[9] Those implementing lean principles generally focus on applying lean tools which have been described in a number of references over the past two decades[10][11][12] with the focus of seeking out and directly targeting "waste" (its seven forms described by Taiichi Ohno in his book Toyota Production System[13] are well known.) This emphasis can result in greater efficiencies that do not necessarily respond well when business conditions shift.

Lean dynamics takes a different approach. Introduced by the book, Going Lean,[14] it does not directly target the desired outcome of waste elimination; instead, it focuses on identifying and addressing sources of "lag", or imbedded disconnects in flowing value through operations, decision-making, information, and innovation that lead to workarounds and amplify disruption when business conditions change. It promotes a different way of structuring the business that creates an inherent "dynamic stability" or greater responsiveness for accommodating shifting business conditions. Companies that are structured in this way show dramatically greater customer value[citation needed] as measured by their quality, innovation, and customer satisfaction; they also sustain greater corporate value as measured by profitability, market capitalization, and growth.

Lean dynamics uses the value curve as a data-driven way of directly comparing companies to distinguish lean firms from other industries.

Implementation of lean dynamics focuses on driving down the impact that variation[15] has on loss (based on the loss function from the Taguchi methods often described by the famous business statistician W. Edwards Deming[16]), a concept describing the dramatic reduction of value-creating capabilities that traditional management systems display when subjected to sudden shifts in product demand, energy prices, or other conditions that affect operational stability or predictability.

Lean dynamics is particularly versatile in that it can be applied to a wide range of manufacturing and service industries. Its methods have been studied for Aerospace and Defense (particularly as applied to procuring hard to get spare parts[17]), and medical, and distinguishes the few that stand out during crisis such as airlines, and retail.

Background edit

Lean dynamics has its roots in a global study of lean manufacturing in the aerospace industry aimed at understanding how to break its cycle of cost escalation that was making new products unaffordable. These results were described in the Shingo Prize winning book, Breaking the Cost Barrier.[18] This study showed that directly targeting “waste” reduction as the focal point for lean programs does not lead to significant cost savings. Instead, it provided strong evidence that emphasis should be placed on applying lean principles to mitigate the amplification of variation that causes workarounds. Addressing this variation was critical to overcoming the disruption that often causes waste to accumulate in the first place. Other sources cited this, identifying occurrences across other industries.[19]

Subsequent research of the aerospace industry showed that firms had accepted these findings, describing this approach of Variation Management as "...one of the most prominent approaches to transforming and improving military enterprise performance."[20]

This phenomenon was validated by correlating the disruption caused by variation in flow (measured as cycle time variation) with "loss" as described by the Taguchi Loss Function (see Taguchi Methods). Sudden changes in business conditions, such as spikes or decreases in production demand, cause increases in variation from forecasted conditions, causing disruption, and causing waste to accumulate. A lean dynamics approach restructures the way operations, organizations, information, and innovation are structured to overcome this.[21]

One method for companies to deal internally with externally driven variation (such as sudden spikes in demand), a core tenet of lean dynamics, was explored by the Defense Department under the Supplier Utilization through Responsive Grouped Enterprises (SURGE) Program. The SURGE program was partially sponsored by the Joint Strike Fighter Program (JSF)(F-35 Lightning II) This program aimed to reduce factory disruption due to demand variation by grouping parts together that shared similar manufacturing processes. It succeeded in reducing lead time on a number of critical aerospace items by as much as 60%. The SURGE program gained notoriety when it was mentioned on the popular TV Show JAG.[22]

See also edit

Terminology edit

References edit

  1. ^ Womack, James P. and Jones, Daniel (1997), Lean Thinking: Banish Waste and Create Wealth in Your Company, Simon & Schuster, ISBN 0-7432-4927-5
  2. ^ Liker, Jeffrey (2003), The Toyota Way, McGraw Hill, ISBN 0-07-139231-9
  3. ^ Taylor, Frederick Winslow (1911), The Principles of Scientific Management, Norton, ISBN 0-393-00398-1
  4. ^ Ford, Henry (1927), Today and Tomorrow, Productivity Press, ISBN 0-915299-36-4
  5. ^ Sloan, Alfred P.(1965), My Years With General Motors, Macfadden
  6. ^ Drucker, Peter (1995), Managing for a Time of Great Change, Truman Talley Books/Dutton, ISBN 0-525-94053-7
  7. ^ [Going Lean as a Solution to Navigating Uncertainty and Crisis, Ivey Business Journal, March, 2009]. Archived from the original on 2009-12-21. Retrieved 2009-04-19.
  8. ^ Going Lean Teaches You How to Live with Change, Six Sigma
  9. ^ Womack, James P.,Jones, Daniel T., and Roos, Daniel (1991), The Machine That Changed The World: The Story of Lean Production, Harper Perennial, ISBN 978-0-06-097417-6
  10. ^ Suzaki, Kiyoshi (1987), The New Manufacturing Challenge: Techniques for Continuous Improvement, Free Press, ISBN 0-02-932040-2
  11. ^ Shingo, Shigeo, A Study of the Toyota Production System: From an Industrial Engineering Viewpoint (1989), Productivity Press, ISBN 0-915299-17-8
  12. ^ Schonberger, Richard (1982), Japanese Manufacturing Techniques, Free Press, ISBN 0-02-929100-3
  13. ^ Taiichi Ohno (1988), Toyota Production System, Productivity Press, ISBN 0-915299-14-3
  14. ^ Ruffa, Stephen A. (2008), Going Lean: How the Best Companies Apply Lean Manufacturing Principles to Shatter Uncertainty, Drive Innovation, and Maximize Profits, AMACOM, ISBN 0-8144-1057-X
  15. ^ Deming, W. Edwards, (1982), Out of the Crisis, MIT, ISBN 0-911379-01-0
  16. ^ Deming, W. Edwards, (1993), The New Economics: For Industry, Government, Education, MIT, ISBN 0-911379-05-3
  17. ^ Part Grouping: Angioplasty for the Supply Chain, (Spring 2003), Air Force Journal of Logistics
  18. ^ Ruffa, Stephen A., and Perozziello, Michael (2000), Breaking the Cost Barrier: A Proven Approach to Managing and Implementing Lean Manufacturing, Wiley, ISBN 0-471-38136-5
  19. ^ Schonberger, Richard J. (2001), Let's Fix It!, Free Press, ISBN 0-7432-1551-6
  20. ^ Mathaisel, Dennis F. X., (2007), Sustaining the Military Enterprise: An Architecture for a Lean Transformation, Auerbach
  21. ^ Ruffa, Stephen A. (2008), Going Lean: How the Best Companies Apply Lean Manufacturing Principles to Shatter Uncertainty, Drive Innovation, and Maximize Profits, AMACOM ISBN 0-8144-1057-X
  22. ^ JAG Episode 9 (Season 6), "Family Secrets"(6:33), first aired December 12, 2000[permanent dead link]

January 01, 1970
lean, dynamics, business, management, practice, that, emphasizes, same, primary, outcome, lean, manufacturing, lean, production, eliminating, wasteful, expenditure, resources, however, distinguished, different, focus, creating, structure, accommodating, dynami. Lean dynamics is a business management practice that emphasizes the same primary outcome as lean manufacturing or lean production of eliminating wasteful expenditure of resources However it is distinguished by its different focus of creating a structure for accommodating the dynamic business conditions that cause these wastes to accumulate in the first place Like lean manufacturing lean dynamics is a variation on the theme of creating efficiencies and greater value by optimizing flow rather than by maximizing economies of scale 1 2 As such it represents an important chapter in the broader discussion of Taylorism 3 Fordisim 4 Alfred Sloan s standard volume methodology 5 Peter Drucker s philosophy on the theory of the business 6 and Genichi Taguchi s analysis of loss Its general philosophy has grown in popularity over recent years in large part because of the increasingly challenging circumstances faced by the global business world particularly evident during the 2008 2009 worldwide economic downturn 7 This need to create greater efficiencies while competing in an environment that demands constant change and innovation seems to be responsible for the emergence of lean dynamics as a recognized business improvement approach 8 Contents 1 Overview 2 Background 3 See also 3 1 Terminology 4 ReferencesOverview editThe term lean was first coined by a researcher at MIT and later popularized by the best selling book The Machine that Changed the World 1990 9 Those implementing lean principles generally focus on applying lean tools which have been described in a number of references over the past two decades 10 11 12 with the focus of seeking out and directly targeting waste its seven forms described by Taiichi Ohno in his book Toyota Production System 13 are well known This emphasis can result in greater efficiencies that do not necessarily respond well when business conditions shift Lean dynamics takes a different approach Introduced by the book Going Lean 14 it does not directly target the desired outcome of waste elimination instead it focuses on identifying and addressing sources of lag or imbedded disconnects in flowing value through operations decision making information and innovation that lead to workarounds and amplify disruption when business conditions change It promotes a different way of structuring the business that creates an inherent dynamic stability or greater responsiveness for accommodating shifting business conditions Companies that are structured in this way show dramatically greater customer value citation needed as measured by their quality innovation and customer satisfaction they also sustain greater corporate value as measured by profitability market capitalization and growth Lean dynamics uses the value curve as a data driven way of directly comparing companies to distinguish lean firms from other industries Implementation of lean dynamics focuses on driving down the impact that variation 15 has on loss based on the loss function from the Taguchi methods often described by the famous business statistician W Edwards Deming 16 a concept describing the dramatic reduction of value creating capabilities that traditional management systems display when subjected to sudden shifts in product demand energy prices or other conditions that affect operational stability or predictability Lean dynamics is particularly versatile in that it can be applied to a wide range of manufacturing and service industries Its methods have been studied for Aerospace and Defense particularly as applied to procuring hard to get spare parts 17 and medical and distinguishes the few that stand out during crisis such as airlines and retail Background editLean dynamics has its roots in a global study of lean manufacturing in the aerospace industry aimed at understanding how to break its cycle of cost escalation that was making new products unaffordable These results were described in the Shingo Prize winning book Breaking the Cost Barrier 18 This study showed that directly targeting waste reduction as the focal point for lean programs does not lead to significant cost savings Instead it provided strong evidence that emphasis should be placed on applying lean principles to mitigate the amplification of variation that causes workarounds Addressing this variation was critical to overcoming the disruption that often causes waste to accumulate in the first place Other sources cited this identifying occurrences across other industries 19 Subsequent research of the aerospace industry showed that firms had accepted these findings describing this approach of Variation Management as one of the most prominent approaches to transforming and improving military enterprise performance 20 This phenomenon was validated by correlating the disruption caused by variation in flow measured as cycle time variation with loss as described by the Taguchi Loss Function see Taguchi Methods Sudden changes in business conditions such as spikes or decreases in production demand cause increases in variation from forecasted conditions causing disruption and causing waste to accumulate A lean dynamics approach restructures the way operations organizations information and innovation are structured to overcome this 21 One method for companies to deal internally with externally driven variation such as sudden spikes in demand a core tenet of lean dynamics was explored by the Defense Department under the Supplier Utilization through Responsive Grouped Enterprises SURGE Program The SURGE program was partially sponsored by the Joint Strike Fighter Program JSF F 35 Lightning II This program aimed to reduce factory disruption due to demand variation by grouping parts together that shared similar manufacturing processes It succeeded in reducing lead time on a number of critical aerospace items by as much as 60 The SURGE program gained notoriety when it was mentioned on the popular TV Show JAG 22 See also editTaguchi loss function Six Sigma Statistical process control Terminology edit Production leveling Muda Mura Muri Workcell Cycle time variationReferences edit Womack James P and Jones Daniel 1997 Lean Thinking Banish Waste and Create Wealth in Your Company Simon amp Schuster ISBN 0 7432 4927 5 Liker Jeffrey 2003 The Toyota Way McGraw Hill ISBN 0 07 139231 9 Taylor Frederick Winslow 1911 The Principles of Scientific Management Norton ISBN 0 393 00398 1 Ford Henry 1927 Today and Tomorrow Productivity Press ISBN 0 915299 36 4 Sloan Alfred P 1965 My Years With General Motors Macfadden Drucker Peter 1995 Managing for a Time of Great Change Truman Talley Books Dutton ISBN 0 525 94053 7 Going Lean as a Solution to Navigating Uncertainty and Crisis Ivey Business Journal March 2009 Ivey Business Journal FEATURE ARTICLE Archived from the original on 2009 12 21 Retrieved 2009 04 19 Going Lean Teaches You How to Live with Change Six Sigma Womack James P Jones Daniel T and Roos Daniel 1991 The Machine That Changed The World The Story of Lean Production Harper Perennial ISBN 978 0 06 097417 6 Suzaki Kiyoshi 1987 The New Manufacturing Challenge Techniques for Continuous Improvement Free Press ISBN 0 02 932040 2 Shingo Shigeo A Study of the Toyota Production System From an Industrial Engineering Viewpoint 1989 Productivity Press ISBN 0 915299 17 8 Schonberger Richard 1982 Japanese Manufacturing Techniques Free Press ISBN 0 02 929100 3 Taiichi Ohno 1988 Toyota Production System Productivity Press ISBN 0 915299 14 3 Ruffa Stephen A 2008 Going Lean How the Best Companies Apply Lean Manufacturing Principles to Shatter Uncertainty Drive Innovation and Maximize Profits AMACOM ISBN 0 8144 1057 X Deming W Edwards 1982 Out of the Crisis MIT ISBN 0 911379 01 0 Deming W Edwards 1993 The New Economics For Industry Government Education MIT ISBN 0 911379 05 3 Part Grouping Angioplasty for the Supply Chain Spring 2003 Air Force Journal of Logistics Ruffa Stephen A and Perozziello Michael 2000 Breaking the Cost Barrier A Proven Approach to Managing and Implementing Lean Manufacturing Wiley ISBN 0 471 38136 5 Schonberger Richard J 2001 Let s Fix It Free Press ISBN 0 7432 1551 6 Mathaisel Dennis F X 2007 Sustaining the Military Enterprise An Architecture for a Lean Transformation Auerbach Ruffa Stephen A 2008 Going Lean How the Best Companies Apply Lean Manufacturing Principles to Shatter Uncertainty Drive Innovation and Maximize Profits AMACOM ISBN 0 8144 1057 X JAG Episode 9 Season 6 Family Secrets 6 33 first aired December 12 2000 permanent dead link Retrieved from https en wikipedia org w index php title Lean dynamics amp oldid 1105935151, wikipedia, wiki, book, books, library,

article

, read, download, free, free download, mp3, video, mp4, 3gp, jpg, jpeg, gif, png, picture, music, song, movie, book, game, games.