Lean thinkers always take the time to reflect on what works and what
does not. This yields very powerful insights. Some things really work as
you expect and the results are evident for all to see. But other things you
think ought to work just don't. In my experience this is often because we
are reading what we want to see into our perception of what Toyota
actually does. Once we realize that what they actually do is quite different
from our initial expectations then we can begin to see the right way
forward.
On the other hand I also see common misunderstandings distracting us
from doing the right things over and over again. I am reminded of this by
questions I am asked at Lean Summits around the world. This prompted
me to summarize my answers and my conclusions on what makes a
successful lean transformation.
The first conclusion is that the only lean things that stick are those done
by the organization themselves, not those done to it by outsiders.
Consultants can help you learn but it is an illusion to think they can do it
for you. Moreover lean progress only lasts if it is led by managers who
have clearly defined the business problem that needs to be solved, have
understood enough about lean to know how lean can help to solve that
problem and who have then developed a plan of action that they will lead
and follow up on.
The skill of the lean thinker is to help to solve this specific business
problem by using the right tools in the right places in the right sequence
to achieve the desired improvements in value stream performance.
Whether the specific business problem has been achieved should be
clearly visible to everyone.
This contrasts with applying lean tools everywhere to eliminate waste or
traditional cost cutting by removing heads from departmental budgets.
Neither of these fundamentally changes the processes that create value
for customers. Toyota knows from long experience that performance
improvement that lasts is the result of improving processes.
The second conclusion is that lean can only really be learnt by doing, not
by training in a classroom. Lean knowledge is learnt through successive
learning cycles solving ever more difficult problems. It requires a common
visual language for planning and problem solving and it needs mentoring
and reflection.
For the organization this means being able to capture the learning from
every lean initiative, probably on an intranet available to every employee,
so that this knowledge can be accessed quickly in bight sized chunks just
when it is needed. At Unipart they talk about learning at 10 and doing by
11. This common knowledge base is essential to spread best lean practice
across a dispersed organization.
The third conclusion is that there are many layers of lean. There is always
much more to learn and do. Once you improve the quality, delivery and
free up capacity in your existing process you will see new opportunities for
redesigning it next time. Ultimately you will be able to use the capabilities
created by lean processes to offer additional value for customers at a price
your competitors will not be able to match.
But there is a real danger in this iterative learning process. Once you have
done the first successful project you think you know lean! A classic
example of this "instant expert" problem is in healthcare. Two years ago
there were almost no experts in lean healthcare in the UK. Yet there were
86 expert bidders for a recent tender to help a big hospital!
Listen to any lean pioneer and they will tell you that what they learnt in
year one was tiny compared to what they learnt by year four. By this time
they realize how much more there is still to learn - and they are still
learning in year twelve!
Fourth it is important to find the appropriate trigger points to overcome
the mental models blocking lean in different situations. A non machine-paced environment or a complex product mix in process manufacturing is
very different to discrete fabrication, machining and assembly. Likewise an
office, a call centre or a service and repair environment needs different
starting points.
Fifth lean changes the whole organization, not just operations. The
opportunities are even greater in the office, in planning processes, in new
product introduction and engineering change processes. And it changes
top management behavior as much as it does the shop floor. This is why it
really is a new business model. The true significance of what Toyota has
done is that it is a market disrupter in a mature market. Would you not
want to be the one to shake up your industry?
I wish you a happy Christmas and a successful New Year.
Yours sincerely
Professor Daniel T Jones
Professor Daniel T Jones
