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Lean Thinking for Italy


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

Industriali Reggio Emilia
July 19, 2005
Lean Thinking for Italy
James P. Womack, President, LEI
Whats Lean Thinking? (Step 1)
  • Specify value from the standpoint of the
  • 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!

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.)

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.)

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

Current-State Process MapOrder Entry
Future-State Process MapOrder Entry
Whats Lean Thinking? (Step 4)
  • Only provide value at the pull of the customer.
  • 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.

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
  • Dont kaizen and kaikaku with overall direction!

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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.

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

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?

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
  • When they get in trouble, they try to hire even
    more brilliant people.
  • We are going to win.

Questions on Path to a Lean Future
  • Have you defined your most important processes?
  • Do you have a plan for every process? (For any
  • 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?

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
  • Love of creativity, which is actually
    work-around re-invention. (Substitute kaizen
    and kaikaku to fundamentally improve processes!)

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!

Lean Strategy Beyond Manufacturing
  • Most of the Italian economy is not involved in
  • 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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