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Lean Thinking for Italy

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Industriali Reggio Emilia July 19, 2005 Lean Thinking for Italy James P. Womack, President, LEI What s Lean Thinking? (Step 1) Specify value from the standpoint of ... – PowerPoint PPT presentation

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Title: Lean Thinking for Italy


1
Industriali Reggio Emilia
July 19, 2005
Lean Thinking for Italy
James P. Womack, President, LEI
2
Whats Lean Thinking? (Step 1)
  • Specify value from the standpoint of the
    customer.
  • Hint
  • Many customers today want their problem solved,
    not just to obtain an isolated good or service.
  • Remember
  • If value is incorrectly specified everything done
    will be muda!

3
Whats Lean Thinking? (Step 2)
  • Identify the value stream
  • The set of steps that must be taken properly in
    the proper sequence at the proper time to create
    value for the customer.
  • A value stream is a process by another name.
  • Remove the waste ( steps that add no value.)

4
Whats Lean Thinking? (Step 2 Contd.)
  • Once youve removed the wasted steps
  • Make sure that the rest of the steps are
  • Capable (Six Sigma standard work poka yoke.)
  • Available (Total Productive Maintenance right
    materials at the right time.)
  • Adequate (Theory of Constraints and Toyota.)
  • Flexible (Toyota.)

5
Whats Lean Thinking? (Step 3)
  • Make value flow smoothly from concept to launch
    and from order to delivery. (Toyota.)
  • Hint
  • Draw a map!

6
Current-State Process MapOrder Entry
7
Future-State Process MapOrder Entry
8
Whats Lean Thinking? (Step 4)
  • Only provide value at the pull of the customer.
    (Toyota.)
  • Hint
  • Create a one-to-one relation between information
    and action. Make sure that nothing is done until
    the next step asks for action and that the action
    taken is precisely the action requested.

9
Whats Lean Thinking? (Step 5)
  • Continually pursue perfection ( perfectly
    specified value with zero waste.)
  • Hint
  • Practice policy deployment for your entire
    organization and A3 analysis for each value
    stream.
  • Dont kaizen and kaikaku with overall direction!

10
(No Transcript)
11
Adopting Lean Requires
  • Many tools
  • Standard work
  • Set-up reduction
  • Poka yoke
  • 5S
  • Heijunka
  • 5 whys
  • Value stream maps
  • A3
  • Target costing
  • Policy deployment
  • Concurrent engineering
  • Chief engineer for each product familyEtc.

12
Adopting Lean Also Requires
  • Creation of a complete business system
  • Product development
  • Supplier management
  • Customer management
  • Production and logistics
  • Policy management

13
Lean Today
  • Rapid rate of adoption
  • Toyota marching from victory to victory!
  • Lean now being adopted in manufacturing in
    high-wage countries, like Germany, and low-wage
    countries, like Poland and China.
  • Lean now spreading rapidly beyond manufacturing
    to logistics, distribution, retail, healthcare,
    maintenance, and even government.
  • How can every organization make a lean leap?

14
Some Advice from Toyota
  • We get brilliant results from average people
    managing and improving brilliant processes.
  • Our competitors get mediocre results from
    brilliant people managing around broken
    processes.
  • When they get in trouble, they try to hire even
    more brilliant people.
  • We are going to win.

15
Questions on Path to a Lean Future
  • Have you defined your most important processes?
  • Do you have a plan for every process? (For any
    process?!)
  • Who is responsible for continuously evaluating
    and improving each process?
  • What technical assistance will this person need?
  • Have you developed the technical means needed to
    perfect processes outside of traditional
    manufacturing operations?

16
Barriers to Lean in Italy
  • Lack of practical lean knowledge.
  • Toyota is not present.
  • Most multinationals operating in Italy are far
    behind Toyota.
  • Most local firms have received no practical
    advice on lean from firms or sensei with real
    knowledge.
  • Love of creativity, which is actually
    work-around re-invention. (Substitute kaizen
    and kaikaku to fundamentally improve processes!)

17
A Lean Strategy for Italy
  • Develop better methods of teaching lean knowledge
    to Italian managers.
  • Hint
  • You learn on the gemba, not in classrooms.
  • Demonstrations of lean methods are vital!
  • Foster cooperation between firms in Italy to
    share knowledge (e.g., breakthrough examples) and
    improve supply base (to compress value streams.)
  • Get leaner faster!

18
Lean Strategy Beyond Manufacturing
  • Most of the Italian economy is not involved in
    manufacturing.
  • Lean techniques also apply to retail,
    distribution, services of any type (including
    travel tourism), healthcare, construction, and
    government (except policy making?).
  • Take the lead in applying lean techniques in
    these areas!
  • Some real invention will be required, but
    Italy has always been very inventive!
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