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Lean -v- Agile

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Lean -v- Agile Gerry Brame Managing Director Powrmatic (& SFL) UK Ltd 7th March 2007 Definitions What is Lean? Lean = Q+C+D Quality Cost & Delivery So what could ... – PowerPoint PPT presentation

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Title: Lean -v- Agile


1
Lean -v- Agile
  • Gerry Brame Managing Director Powrmatic ( SFL)
    UK Ltd
  • 7th March 2007

2
Definitions
  • What is Lean?
  • Lean QCD Quality Cost Delivery
  • So what could Agile possibly be?
  • Agile (QCD)F where F Flexibility

3
Who Promotes Lean?
  • Toyota, Dell, Ford, Porsche, Wiremold, Samsung,
    Honda, P0, Ryan Air, Rolls Royce, Boeing,
    Airbus, GSK, Becton Dickenson, Parker Hannafin,
    Rittal, Bardon, Toshiba, Pfizer, Bespak, Tesco,
    Easy Jet, NHS? Nissan, Hyundai, West
    Pharmaceuticals, Pall Corporation, Augusta
    Westland, etc etc

4
Who Promotes Agile?
  • The Agile Mfg Forum
  • Cranfield School of Management
  • Association of Manufacturing Excellence (AME)
  • Iacocca Institute, PA.
  • APICS
  • Cusumano Nobeoka Thinking Beyond Lean

5
What is Lean
  • Lean is a business philosophy that reduces the
    resources and time required to complete any
    process by eliminating waste and making value
    flow to the customer at the speed that the
    customer requires by applying the 5 Lean
    Principles

6
What Does Lean Promote?
  • Specify value from the point of view of the
    customer
  • Identify the value stream
  • Make the value Flow
  • Pull according to customer demand
  • Aim towards perfection
  • Womack Jones, 1996

7
What is Valued?
  • Reduced Safety Stocks.
  • Reduced Order Sizes.
  • Improved Communication.
  • Flexibility.
  • On Time Delivery.
  • Quality Products, Service, Relationship.
  • New Products and Technology.
  • Cost Reduction.

8
So What is Agile?
  • Agile manufacturing is a term applied to an
    organization that has created the processes,
    tools, and training to enable it to respond
    quickly to customer needs and market changes
    while still controlling costs and quality.
  • An enabling factor in becoming an agile
    manufacturer has been the development of
    manufacturing support technology that allows the
    marketers, the designers and the production
    personnel to share a common database of parts and
    products, to share data on production capacities
    and problems.
  • Wikipediea

9
Key Agility Attributess
  • Goldman et al. suggest that Agility has four
    underlying components -
  • delivering value to the customer
  • being ready for change
  • valuing human knowledge and skills
  • forming virtual partnerships.
  • The first three of these are also attributes of
    lean manufacturing.
  • L. Goldman, R.L. Nagel and K Preiss, Agile
    Competitors and Virtual Organizations -
    Strategies for Enriching the Customer

10
So again, what is agile?
Technology System
Planning Modularity

Lean Enterprise
The Agile Enterprise
Organisation Customer Service
Environment Logistics
11
What Does Agile Promote
  • Postponement - Benetton
  • Virtuality Dell
  • Commonality Software Boeing
  • Compatability equipment- VW
  • Modularity VW Mexico

12
Views on Agile
  • 98 the same as lean with the addition of
    Postponement J Bicheno
  • Big Marketing Trick by Cranfield University
  • Darrell Mann
  • Not a subject, still a concept Professor P
    Hines
  • Lean repackaged but not endorsed by Toyota
    C Morse GSK
  • Conceptually inept without a effective Lean base
    T Hankin Honda

13
Reverse Lean !
  • What is it ?
  • Flow not Tools
  • What does it achieve ?
  • Instant T, I, OE improvements
  • Has anyone ever done it ?
  • Not Documented but Alcan, Otukumpu, Powrmatic !

14
Flaws of a Traditional Lean Implementation
  • Focus misdirected waste (Muda) not Operating
    Expense!!
  • Ignores product Throughput time.
  • Minimal attention paid to total Inventory.
  • Total internal focus, isolation from Customer
    Demand Expectation.
  • Random Muda reductions cannot drop through
    diluting confidence in Lean concepts (loosing
    faith).
  • 5S activities require too much time effort to
    be effective sustainable, plus no tangible
    benefits to the bottom line.
  • Tools such as SMED become miss-understood,
    Capacity not Flexibility and miss applied ie-
    Implementing SMED to non bottleneck processs.
  • Tools are Tools not objectives or Goals.

15
Reverse Lean
  • WHY REVERSE?
  • Massively more effective than the traditional
    Western approach to Lean Implementation.
  • More replicable of original Japanese disciplines
    of Lean Implementation
  • Create Flow 1st, Then use tools to Maintain Flow
    to Organise for Flow
  • WHY IS IT REVERSE?
  • Re-Prioritisation -
  • 1/ Mura (unevenness of operations).
  • 2/ Muri (overburdening of equipment and people).
  • 3/ Muda (waste).

16
Lean, Agile or Reverse Lean
  • No right answer
  • All are very difficult expensive
  • gt80 of all implementations fail
  • Nobody is Lean.
  • Toyota Honda leading (Porsche)
  • Chosen to suit specific need - Competition,
    Crisis, Survival, Cash or Growth.
  • But do one !
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