The Principles Of The Lean Business System

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Page1of23 SAPartners19932010ProfessorPeterHines1Chairman,SAPartnersCoFounder&HonoraryProfessor,LeanEnterpriseResearchCentreatCardiffUniversityTheLeanPrinciplesThebookLeanThinkingbyJamesP.WomackandDanielT.Jones(1996)providedtheworldwithavisionofwhatLeanwasabout.Theauthorscommented:LeanThinkingcanbesummarizedinfiveprinciples:precisely specifyvalueby specificproduct, identify thevalue stream foreachproduct,makevalue flowwithout interruptions, let thecustomerpullvalue from theproducer,andpursueperfection(page10).Theydefinedeachoftheseprinciplesinmoredetailasfollows:Value: The critical startingpoint for Lean Thinking is value. Value canonlybedefinedby theultimatecustomer. And itsonlymeaningfulwhenexpressed intermsofaspecificproduct(agoodor a service, and often both at once)whichmeets the customers needs at a specific price at aspecifictime(page16)ValueStream:Thevaluestreamisthesetofallthespecificactionsrequiredtobringaspecificproduct (whether a good, a service, or, increasingly, a combination of the two) throughthe.problemsolving task from concept through detailed design and engineering to productionlaunch,theinformationmanagementtaskrunningfromordertakingthroughdetailedschedulingtodelivery,andthephysicaltransformationtaskproceedingfromrawmaterialstoafinishedproductin2thehandsofthecustomer(page19).Flow:Oncevaluehasbeenpreciselyspecified,thevaluestreamforaspecificproductfamilyfullymappedbytheLeanenterprise,andobviouslywastefulstepseliminated,itstimeforthenextstepinLeanThinking.maketheremaining,valuecreatingstepsflow(page21).Pull:Pullinsimplesttermsmeansthatnooneupstreamshouldproduceagoodorserviceuntilthecustomerdownstreamasksforit(page67).Perfection:Asorganisationsbegintoaccuratelyspecifyvalue, identifytheentirevaluestream,makethevaluecreatingstepsforspecificproducts flowcontinuously,and letcustomerspullvaluefromtheenterprise,somethingveryoddbeginstohappen.suddenlyperfection.doesntseemlikeacrazyidea(page25). 1Iamgratefulforthedebate,inputandassistanceofthefollowingtothiswhitepaper:colleaguesatSAPartnersespeciallyChrisButterworth,KevinEyre,GaryGriffithsandJillWhinfrey;membersoftheLeanBusinessSystemandotherspecificLeanBusinessSystemLinkedIngroupsthatIrunandparticipantsatthe2009LERCannualconference. THEPRINCIPLESOFTHELEANBUSINESSSYSTEM Page2of23 SAPartners19932010RethinkingtheLeanPrinciplesSinceLeanThinkingwaspublishedin1996,ourunderstandingofwhatLeanishasmovedon3.Leanhasalsobeenappliedacrossawiderrangeofmanufacturingandserviceindustries4andtheissueofsustaining change has become more central5. As a result I believe it is now time to revisit theWomack&Jonesfiveprinciples. Inordertodothis, itwillbehelpfultounderstandwhatthemainareasofconcernsmightbe.Theseincludethefacts: Manyorganisationshavefailedtointerprettheoriginalprincipleswell Inhindsight,therearegapsorweaknessesintheoriginalset Theworldhasmovedon,and OurunderstandingofhowLeanworkshasimproved.These areas of concern lead to a number of specific problems (see Table 1). The first problemrevolves aroundhow Leanworks indifferent industries and the fact that classic Lean texts tend,explicitly or implicitly, to assume that we all work in high volume, repetitive manufacturingenvironmentssuchascarcomponentsorelectronicsindustries.There appears to be little allowance for people in low volume or more variable manufacturingindustriesortheservicesector.WhatwehaveobservedisthatthefurtheryoutakeLeanfromitscarmakingorigins,themorestrainedsomeoftheclassicprinciplesbecome.Forinstance,inhighvarietymanufacturingorserviceindustriesmanystrugglewiththeconceptofkanbanstylepullsystems.Asa result, organisations such as FlindersMedical, anAustralian hospital, have redefined their ownprinciples including: Focus on the Patient, Understand our Processes, Social & Technical Flows,ResponsiveTeams&LearnandSpread.Table1:ProblemswiththeOriginalLeanPrinciples 3See:PeterHinesetal,LearningtoEvolve:AReviewofContemporaryLeanThinking,InternationalJournalofOperations&ProductionManagement,24,10,pp.9941011,20044See:PeterHines,MustDoBetter:ApplyingLeaninthePublicSector,PublicSectorExecutive,Sept/Oct,pp.3445,20095See:PeterHines,PaulineFound,GaryGriffiths&RichardHarrison,StayingLean:Thriving,NotJustSurviving,LeanEnterpriseResearchCentre,Cardiff,2008 Page3of23 SAPartners19932010Thenextsetofproblems revolvesaround the fact that theoriginalprincipleshavebeengenerallyinterpretedatanoperational level. Many firmsuseLeanasa focus forpointkaizen improvementactivitieson theshop floor. Indeed,almostall theorganisationswemeet tend to lookatphysicalflowsonlyintheOrderFulfilmentprocess(customerordertodeliveryofproductorservice).AsaresultLean isoftenusedasashorttermcostcuttingorwastereductionmechanism. Indeed,manyrefertoLeanasacostreductiontoolkit,aninitiativeoraprogramme.EvenWomack&Jonesopen theirbookwith: Muda. Its theonewordof Japanese you reallymust knowmudameanswaste.IncontrastifyouseekouttheToyotacorporatewebsiteyouwillfindthatTaiichiOhnohasadifferentperspective:Eliminatemuda,mura,muri.completely6.WhatappearstobemissingintheLeanThinkingbookisthefocusonlevellingandmakinglifeeasyforpeople.Linkedtothiswastereductionfocus, isanothersignificantgap,the lackofanappropriatefocusonqualityandrisk.FundamentaltothecreationofacompleteLeanBusinessSystem7isachievingwhatthecustomerwants,whentheywantit.Thisimpliesthepursuitof100%qualityaswellas100%ontimedelivery.Italsoimpliesthatriskisatanabsoluteminimum.Rarelydowe see Lean appliedwithin the contextof thebusinessneeds,widerenvironmentalorsocialconcerns,strategyformationordeployment.Itisusuallyatacticalactivityrunbyfull,orparttime,improvementagents.Thislackofseniormanagementinvolvementmeansthatthereisrarelyappropriateseniorlevelleadershipand,asaresult,insufficientattentiontoemployeeengagement.Theresultofthisisthatthesustainabilityofchangeispoor.ThereasonforthisisthattheclassicLeanPrinciplesalmosttotallymissedtheimportanceofpeople.Specifically, little attention was drawn to the importance of communication, supportive humanresourcepolicies,stafftraininganddevelopment.Inaddition,inadequateattentionwaspaidtotheimportanceofresourcingthechangeprocessand individual jobdesign. It is interestingtocontrastthatwithsomekeyreasonswhyLeantransitionsfailasshowninTable2.Table2:ReasonsWhyLeanTransitionsFailSource:Lucey,Bateman&Hines,2005Finally,theclassicLeanprinciplesappear(orhavebeeninterpretedasbeing)toofocusedinsidetheorganisation. Asa result, feworganisationsoutsideof theautomotivesectorappear to take their 6http://www.toyota.co.jp/en/vision/traditions/jul_aug_04.html7 FormoredetailsoftheLeanBusinessSystem,pleaseseethewhitepaperCreatingaLeanBusinessSystemathttp://www.sapartners.com/content/blogsection/6/87/lang,/ Page4of23 SAPartners19932010Leanactivities into their supply chain. The result isagainoftenpointkaizenactivitywhere singlefirmsarethefocusofimprovementratherthanthecompletesupplychain.To summarise: the traditional Leanapproach is toopiecemeal, too short term innatureandwithlittlefocusontheareasrequiredtomakeitsustainableinmostorganisations.Whatiscalledforisamoresystemicapproach.RedefiningtheLeanPrinciplesTakingalltheseconcernsandissuesintoaccountwehaveredefinedtheoriginalprinciplesintoanewholisticframeworkthe8PsoftheLeanBusinessSystem.Thisframeworkhelpscompaniesinanyindustry,andatanystageofLeanmaturity,toreflectonhowtheyaredeployingLeanintheirbusiness.Ithelpstotakethefocusawayfrompointkaizenactivitytowards a more contingent approach, a more aligned approach, a more human approach andultimately,amore sustainableapproach. Indeed it ispartofamove toLeanbecomingaculturaljourney towards everyone in theorganisation activelyworking towards a fully aligned tomorrowbetterthantodaysystem.Figure1:The8PsoftheLeanBusinessSystemWebelievethatthisnew8Psapproachwillalso,atleasttosomedegree,overcometheshortcomingoftheclassicWomack& Jonesapproachasshown inTable 3. In the table the darker the shading, themore impact the particular principle will have ontheexistingproblems.Table3:CounteringProblemswiththe8PsofLeanThinkingPURPOSEPULLPROCESSPEOPLEPLANETPARTNERINGPERFECTIONPREVENTIONThe 8Psof Lean ThinkingPURPOSEPULLPROCESSPEOPLEPLANETPARTNERINGPERFECTIONPREVENTIONThe 8Psof Lean Thinking Page5of23 SAPartners19932010The8PrinciplesoftheLeanBusinessSystemadetailedlook1. Purpose Before starting any activity it is important to understand the purpose and to align theorganisation.Askyourself,howmanypeopleinorganisations: Reallyunderstandwhattheyaresupposedtoachieve? FeeltheyhaveanappropriatesetofKPIs? Areworkingontoomanythingsatonce? Canpointtohowtheyaremakingtomorrowbetterthantoday?Sowhatdoyouneedtotakeintoaccountindevelopingapurpose?TraditionalmanagementhastaughtustofocusontheVoiceoftheOwner.TraditionalLeanThinkinghasextendingthattoincludetheVoiceoftheCustomer(althoughwerarelyfindthatthisisthestartingpointforaLeantransformation).Eventhisdualfocusisnotenough,asweseeinFigure2.Figure2:AchievinganEffectiveandSustainablePurposeFocuson theVoiceof theOwnerandVoiceof theCustomer fails to focuson themuri thefrustrationsandproblemsthatindividualpeoplefaceintheirwork.Itfailsthereforetoaddressthewhatsinitforme?objectiontochange.ItfailstofocusadequatelyontheVoiceoftheEmployee.ThisconcerniskeyandwewillreturntoitinthesectiononPeople. Asourcollectivethinkinghasmovedon,wenowneedtofocusalsoontheVoiceofSociety.Specificallyour roleascorporatecitizensand inparticular theenvironmental impactsofouractivities.WewillagainreturntothisareainthePlanetsectionbelow. Codifyingthepurposeisakeyjoboftheseniormanagementteam.ItisawayofcapturingtheWHAT, the direction, the focus and ideas about the destination. If done well it is also apowerfultoolinestablishingtheWHY.Focusingonthesetwoareasisnotonlyessential,butitwill help senior managers start moving away from simply HOW based thinking. In myexperience,predefinedsolutions fromseniormanagers,oftenwithoutmuch thinkingaboutEffective andsustainable purposeVoice of the CustomerVoice of the OwnerVoice of SocietyVoice of the EmployeeEffective andsustainable purposeVoice of the CustomerVoice of the OwnerVoice of SocietyVoice of the Employee Page6of23 SAPartners19932010WHATandWHY,oftenhaveonlyapoorchanceofbeingacceptedbythebusinessandanevenpoorerchanceofleadingtosustainablechange. Notonlydoorganisationsneedtohaveapurpose,theyalsoneedtocommunicateitinawaythatengagestheworkforce.Thisalmostcertainlyneedstobedoneinavisualwaytranslatingthepurpose intoa languagethat isaccessibletopeopleattheir leveloftheorganisation. Itneeds tobemore thanmerevisualdisplaysused to impressvisitors,buta living,breathingmanagementtoolthat isthefocusofhowtheorganisation isrun. Itneedstobeacompletevisualmanagementapproach.AnexamplefromCogentPowerisdepictedinFigure3.Figure3:SalesteamvisualmanagementatCogentPowerThekeyelementsrequiredinclude: Apurposefortheteam ArelevantsetofKPIs Ateamselected(bottomup)setofproblemsolvingactionplans AsetofteamselectedcelebrationsofsuccessIndeed inherworkonsustainability,NicolaBateman foundthatthis typeofdeployedvisualmanagementwasoneofthemostimportantelementsofachievingsustainablechange8.2. ProcessAfternearly20yearsworkingwithLeanIfindthatthemajorityoffirmsstillonlyapplyLeaninoneprocess:OrderFulfilment.OrderFulfilmentstartswiththecustomersneed,istranslatedintoan informationflow intheorganisationandresults inareverseflowtothecustomeroftheendproductorservice. This istheprocessthatalmostallorganisationsaddress in theirLean journey,either inwholeor inpart 95%nevergetany further. Inaddition these95%tendtobeaddressingcostreductionhavingdonesomeValueStreamMapping.Sowhy is this aproblem? Mainlybecause they areonly scratching the surfaceofwhat ispossiblewith a Lean Business System. Businesses havemany processes that they need tomanage, and manage well including ones that stretch across internal departments. Ingeneraltherearethreetypes(seeFigure4): DirectionalProcesses CoreProcessesand EnablingProcessesThereisusuallyonlyoneDirectionalProcessinabusiness,oftencalledstrategicmanagementand it isoftenonly inthisprocessandatthis levelthatacrossfunctionalapproach istaken.Thereareusually36CoreProcessesthatdeliverthemaintangibleoutputsandoutcomesforthe business. These might include Innovation, Order Creation and Order Fulfilment. Inadditiontothesethereare36EnablingProcessesthatsupporttheCoreProcessestodeliverthekeybusinessresult. 8See:NicolaBateman,Sustainability:AGuidetoProcessImprovement,LeanEnterpriseResearchCentre,2001 Page7of23 SAPartners19932010Figure4:GenericProcessFrameworkEachprocesshasitsownparttoplay,butitistheCoreProcessesthatarelikelytodeliveronthemajorityofthetoplevelstrategyandKPIset.However,acrossdifferentorganisations,thismaybeinradicallydifferentways.Improvements in theOrderFulfilmentprocessare likely todeliveran increase incapacity inorder to achieve a cost benefit. Many businesses gowrong here, however, because theyassume that is thegoalofLean. Inmanycases there isadislocationbetween thebusinessstrategyand this Leancostreduction. Worse than this,manyof thecostsavingsareoftenillusory. What for instance isthecostsavingofmerely freeingup20%ofa factoryorofficeblockonitsown?Theremaybesome,butitusuallyfarfrom20%ofthetotalcosts.Ifwe instead thinkof Leanmoreholistically, as an approach todeliver improved customerserviceandwastereduction,thentheoutcomeshouldbeanincreaseinprofitablegrowth9.Inotherwords leanshoulddeliveranoptimalbalancebetween these twoareasaligned to thebusinessgoalsandpurpose.However,howcanorganisationsdothisiftheyareusuallyonlyaddressingonesingleprocesswhoseimprovementislikelytobelargelyaboutreducingcost?Theansweris,ofcourse,thattheycant,notunlesstheyseektoimprovearangeofotherprocessessuchasOrderCreationand Innovation. The improvementoftheseprocesses is less likelytobeaboutreducingcostand more about improving customer value. In other words they are about growing thebusinessorfillingcapacity.IcallthisXand2Xthinkingasthis linkstotheprofitpotentialofLean inanorganisation(seeFigure5).BycreatingcapacitythroughtheimprovementofprocesseslikeOrderFulfilmentabusinessmayachievesomecostreductionandhencedeliveronsomeprofitpotential itmayhavehad.However,itisonlywhenthiscapacityisutilisedwhenprocessessuchasInnovationandOrderCreationareaddressedthatthefullbenefitwillbereapedbythebusiness. Inmy 9Inapublicsectorenvironmentthismightbeseenasimprovedvalueformoneywherevalue(inwhateverterms)tocustomersisimprovedandcostsarereduced.Strategic ManagementDirectional ProcessDirectional ProcessContinuous ImprovementEnabling processEnabling process People ProcessEnabling processEnabling processEnvironmental Systems ManagementEnabling ProcessEnabling ProcessInnovation ProcessOrder CreationOrder FulfilmentCore ProcessesCore ProcessesCore ProcessesCore ProcessesStrategic ManagementDirectional ProcessDirectional ProcessStrategic ManagementDirectional ProcessDirectional ProcessContinuous ImprovementEnabling processEnabling process People ProcessEnabling processEnabling processEnvironmental Systems ManagementEnabling ProcessEnabling ProcessContinuous ImprovementEnabling processEnabling processContinuous ImprovementEnabling processEnabling process People ProcessEnabling processEnabling processPeople ProcessEnabling processEnabling processEnvironmental Systems ManagementEnabling ProcessEnabling ProcessEnvironmental Systems ManagementEnabling ProcessEnabling ProcessInnovation ProcessOrder CreationOrder FulfilmentCore ProcessesCore ProcessesCore ProcessesCore ProcessesInnovation ProcessOrder CreationOrder FulfilmentCore ProcessesCore ProcessesCore ProcessesCore Processes Page8of23 SAPartners19932010experiencetheprofitpotentialbenefitoffillingthiscapacityisneverlessthantwiceaslargeasthebenefitincreatingthecapacity.InsomecasestheratiocanbeasmuchasXto10X.Figure5:Xand2XThinking3. PeopleThe area of people is misunderstood by many organisations applying Lean. One of myreflectionsonrereadingWomack&JonessLeanThinkingisthatthekeyissueinthesuccessofthecasestudyfirmswasnotthetools,shopfloorimprovementsorkaikakuevents.Itwasinthe leadershipoftheseniorexecutives. Thisreflectionhasbeenborneoutmanytimes inthetimesthatIandmycolleagueshavewitnessedeffectiveandsustainablechange.Linkedtoleadershipistheabilitytoengagepeopleinthebusiness.ToyotatalkaboutRespectforPeople.Thismeansallowingthepeoplewhoknowtheworkbestthepeoplewhodothework to work out HOW we are going to improve. Developing a culture of ContinuousImprovementisnotsufficientwithoutthisfundamentalrespectforpeople(figure6)10.Figure6:ContinuousImprovementandRespectforPeopleThePeopleprinciple iswithoutdoubt fundamental to the success and sustainabilityof anyLeantransformation.Iwillhighlight8areasthatneedtobeaddressed.i.UnderstandingthedifferencebetweenmanagementandleadershipIngeneralmuchofourcareerprogression,HRpoliciesandeducationsystemaredesignedtocreatehighqualitymanagers.Thisisessentialtodelivertodaysresultsandkeeporganisations 10See:JeffreyLiker,TheToyotaWay,McGrawHill,NewYork,2004 ProfitPotentialTimeClassic Lean Capacity CreationIn Order Fulfilment= Cost SavingLean EnterpriseFill CapacityIn e.g. Order Creation= Wider Margins= Increased TurnoverX2XProfitPotentialTimeClassic Lean Capacity CreationIn Order Fulfilment= Cost SavingClassic Lean Capacity CreationIn Order Fulfilment= Cost SavingLean EnterpriseFill CapacityIn e.g. Order Creation= Wider Margins= Increased TurnoverLean EnterpriseFill CapacityIn e.g. Order Creation= Wider Margins= Increased TurnoverXX2X2X Page9of23 SAPartners19932010working. However, it is insufficient to createaneffective tomorrow. It isnot sufficient asBennisshows(Table4)toinnovate,develop,inspireorchallengeexistingbusinesses.Weneedtomanageandlead.Table4:TheRolesoftheManager&LeaderSource:Bennis2003ThisdualrolehasmosteffectivelybeentranslatedbyHondawhousetheconceptofFutatsueShigotoortwojobs.BythistheytalkaboutToday'sJob(managingwhatIneedtodonowtobesuccessful)andTomorrow'sJob(leading intermsofwhat Ineedtodotobesuccessful inthefuture).Hondaemphasisesthateachoneofthemisequallyimportant.ii.CreatinganddeployinganinspiringvisionPartoftheleadershiproleistoinspirepeopletowanttochange.Itisaboutcreatingavision,adirection, something foreveryone tobe inspiredby. This caneitherbe theavoidanceofsomethingbad,theburningplatform,orbetterstilladestinationpeoplewanttoachieve.Inthe publication Staying Lean: Thriving not just Surviving (2008) we describe how CogentPowersCEO,MarcelSchaboscreatedjustsuchaninspiringvisionbyreignitingaprideinthebusinessrightacrosstheworkforce.iii.Defining,demonstratingandencouragingcorrectbehavioursThethirdareaisaboutcreatingaculturewhereanappropriatebehavioursetisinstilledrightacross the business. The starting point is to establish which behaviours are appropriate,ensuretheyarelivedanddemonstratedbytheseniorteamandthenfindmechanismstodothisacross theworkforce. AtCogent, theHRDirector,PeterRoseusedDougHowardells7LeanSkillstoachievethis11.Theseinvolve: Customerconsciousness Enterprisethinking Adaptation Takinginitiative Innovation Collaboration Influence 11Seehttp://www.theacagroup.com/leanarticle.htm Page10of23 SAPartners19932010iv.AligningsupportpoliciesandprocedureswithpurposeWhen trying to implement a Lean approach it is necessary to ensure that the varioussupportingstructuresarealignedtothepurpose.WehavealreadytalkedabouttherightKPIsandtheirdeployment. Equally important isthealignmentofHRandaccountingpoliciesandprocedures. As shown inFigure7below, this isnecessaryas thesepoliciesandproceduresunderpintherequiredworkforcecharacteristicswhichinthemselvesunderpinthecommercialandculturaloutcomesofaleanprogramme.The most important of these HR policies and procedures is how peoples performance ismanaged, their rewardand recognitiondefined, their traininganddevelopmentundertakenandtheirsuccessionplanningrun.WewillreturntothetraininganddevelopmentareainthenextsectiononPull.Figure7:AligningHRPoliciesToillustratetheotherareas,letsfollowCogentPowersuseofthe7LeanSkills.Thesewereapplied to theannualperformance review. Eachmanagerhadonetoonediscussionswithemployee about how they had exhibited these skills.Decisions on reward, recognition andpromotion were equally weighted. As a result people were promoted who had the rightattitudes,notjustfirefightingskills.v.CreatingadynamiccommunicationsystemInmyexperience thebestperformingorganisationshave thebestcommunicationssystems,using a variety ofmethods tomirror different preferences that people have for absorbinginformation and providing feedback. What is important is that the communications aresimple,wellthoughtthrough,inalanguageandmediumthatarelikelytobeunderstoodandaretwoway.Ihaveoftenfoundthattheuseofvisualcueswithappropriatedataworkswellaswesaw intheyellowboardsinFigure3.AsCogentPowersCEO,MarcelSchabos,oncesaidtomewhenreflecting on the reasons for their success, itwas all about three things: communication,communicationandcommunication.Measuring and Managing Key Workforce CharacteristicsDesigning and Implementing HR Policies ProceduresWorkforce EngagementWorkforce SkillsWorkforce ContinuityPerformance ManagementReward and RecognitionTraining and DevelopmentCareer Managementand SuccessionInterpreting Strategic PurposeCommercial Performance OutcomesContinuous Improvement and change outcomesMeasuring and Managing Key Workforce CharacteristicsDesigning and Implementing HR Policies ProceduresWorkforce EngagementWorkforce SkillsWorkforce ContinuityPerformance ManagementReward and RecognitionTraining and DevelopmentCareer Managementand SuccessionInterpreting Strategic PurposeCommercial Performance OutcomesContinuous Improvement and change outcomes Page11of23 SAPartners19932010vi.DevelopingSituationalLeadershipAnother important areawithin the People principle is adopting the appropriate leadershipstyle at each stage of a Lean transformation. As we describe in detail in Staying Lean abusinessgoesthroughajourneywhenapplyingLean.Thisusuallystartswitharatheradhocorreactivemanagementsystemandprogressesovertimetoanautonomouswayoflifestylewhere there is no longer a need to give the work a title such as Lean or ContinuousImprovement.At each stage of the journey a different leadership style is required (figure 8). Near thebeginningachampioningordrivingapproach isrequired. This involvesseniormanagersandleancoachesgettingthingsgoing,makingprojectsworkandgettingearlyresults.Lateronthejourney amore supportive ormentoring style is required to support the line in their leanjourney.WewillreturntothischangeinstyleinthePullsectionbelow.Figure8:SituationalLeadershipinaLeanJourneyvii.WorkingonJobDesignInordertomovethefocusawayfromjustdoingthedayjobtothinkingaboutcreatingabettertomorrow,itisalsonecessarytoconsiderjobdesignatalllevelsoftheorganisation.Considerthetypicalsplitofworkingtimeforexecutives,middlemanagersandoperativesasshown inFigure9.Figure9:TypicalCurrentStateJobDesignAdhocReactiveEarly StagesAutonomousCI way of lifeMature StagesDRIVERFACILITATORSUPPORTERMENTORStage of MaturityRole of LeadersJOURNEY / TIMECHAMPIONAdhocReactiveEarly StagesAutonomousCI way of lifeMature StagesDRIVERFACILITATORSUPPORTERMENTORStage of MaturityRole of LeadersStage of MaturityRole of LeadersJOURNEY / TIMECHAMPIONExecutives Middle Managers OperativesStrategicImprovementDay JobFire FightingTimeExecutives Middle Managers OperativesStrategicImprovementDay JobFire FightingTime Page12of23 SAPartners19932010What you typically find is that executives spend some timeworking on strategy, althoughfrequentlytoomuchonbigbangtopdownHOWfocusedprogrammesthatarethenhandedtomiddlemanagerstoimplement.Thismeanstheyneedtoengageoperatives.However,theoperativeslinemanagersareoftenreluctanttofreethemupastheydonotwanttoseetimewastedonwhattheyperceivetobenonproductiveactivity.Theresultofthisisthatthedayjobpredominatesattheselevels.However,italsomeansthatany change that is undertaken is likely to be quickhit with only a low chance of beingsustained. As a consequence fundamental problems and weaknesses dont get properlyaddressedandmuchoftheexecutiveandmiddlemanagertimegetstakenup infirefighting.Doesthissoundfamiliar?Incontrast,wecouldenvisageanidealstate(figure10)whereeveryoneinthebusinessspendssome time working on strategy. This is not to say that everyone will work on high levelstrategy,butmoreonstrategyas itaffectsthem. Inotherwords,withintheirenvironment,howcantheymaketomorrowbetterthantodaytoachievetheirpartofthepurpose?Tomaketheseimprovementstheywillalsoneedaformaltimebudgettoachievethesegains.Evenatoperativelevelsthesetwoelementsmaybeasmuchas15%oftheirworkingtime.However,onlybymakingthis investmentwilltheday jobbe improvedandacontinuous improvementmentalityestablished.Figure10:IdealStateJobDesignClearlyhereweare lookingatan idealstate thatmight takemanyyears toachieve. HenceeachbusinesswillneedtodefineitsownfuturestatesoversuccessiveLeanroadmapstowardsthisidealstate.viii.LeadingbynotleadingThe last area is leadingbynot leading, aparadox for the senior team. This relates to theactivities of the executives in figure 10within the improvement segment. Lets say that abusinessinvests10%oftheformaltimeofallitsemployeesonimprovement.Withinthis,thesenior team shouldminimise the amountof time they spend onbigbang topdown (oftendisengaging)initiativesandmaximisetheamountoftimetheyinvestinsmall,localbottomupprojects.Executives Middle Managers OperativesStrategicImprovementDay JobTimeExecutives Middle Managers OperativesStrategicImprovementDay JobTime Page13of23 SAPartners19932010Anexamplemaybeaplantorofficemanagerspending23daysamonthtakingpart in localprojects. Thetrick isnotto leadtheprojects,norfacilitatethem,normanagethem. It istojustbeateammemberaskingpermissionoftheteamtojusttakepartandofferoutsidethebox suggestions, as they are the least likelyperson in the team tounderstand thework indetail. This not leadingapproachhowevershowsagreatdealof leadershipand is likelytoinspiremanyacross thebusiness towant to improveas they see justhow seriously Lean isbeing taken by the executive team. Thismay sound strange, but if appliedwell, certainlyworks.4. PullThere are three main areas of pull that are necessary to consider within a Lean BusinessSystem.Thesewillbediscussedinturn:i.PullBasedDeliveryWithinthetraditionalLeanapproachairtimeisrightlygiventothecreationofflowandpull12.Oneof theproblemshere is thatmuchof theLean literature tends tobewrittenby,or for,peopleworkinginahighvolumemanufacturingenvironmentwheredemandvariabilityislow.Exampleofthismightincludethecarorelectronicsindustry.Peoplewhodonotworkintheseenvironments can find the conceptofpulldifficult to interpretandapply,aprimeexamplebeingtheofficeenvironment.Hence,itismybeliefthatalthoughpullbaseddeliveryisdesirable,inmanycasesitishard,ifnotimpossibletoachieve.Inaddition,inatransitiontoafullLeanapproach,itmaynotbethefirst and most important focus for activity. I have seen too many manufacturing firmsattemptingtocreateapullsysteminanunstableprocessenvironmentleadingtodisaster.WewillreturntothisareainthePreventionsectionbelow.Sowhymightpullbehardorimpossibletoachieve?Considerfigure11.Insomeindustriesthequantityofproductorservice isveryhighandthevariabilityofdemandvery low. Typicalofthismightbe industriesproducingcomponentsorproducts formassmarketssuchasbread,toothpasteormilk.WecallsuchcasesRunnerproducts.Inotherextremecaseswemight find thatvolumesarevery lowandordershighlyvariable.Industries such parts for classic cars or the space industrymay be regarding as producingStrangerproducts.Figure11:Runner,Repeater&StrangerProducts 12Seeforinstance:JamesWomack&DanielJones,LeanThinking,Simon&Schuster,NewYork,1996 Page14of23 SAPartners19932010InbetweentheseextremesarangeofproductsorserviceswithintermediarylevelsofdemandandvariabilitymayberegardedasRepeaterproducts.ThemajorityofLeanliteratureassumesweallliveandworkinarunnerworldwherewellconstructedkanbanbasedpullsystemscanoperate.Clearlythisisnottrue.IdeallythefirstjobinaLeanenvironmentistounderstandthecustomerandtheirpullbaseddemands.Beforeevendoingthisitmightbeusefultodifferentiatebetweenrealdemandandcreateddemand13.Consider,forinstancebuyingacar.Onenteringthedealeryouseethecaryouwantbuttheshowroommodel isred insteadofblue. Youenquireaboutgettingablueoneandarequoteda6weekleadtime.Asanalternativeyouareofferedtheredcarwitha10%discount.Youdecidetobuytheredcar.Isthisrealdemandorcreateddemand?Inmostcompaniesthiswouldbetreatedasrealdemandandhenceunderakanbansystem,particularly if replicatedmany times, could lead tomajordistortionsof supply. In fact,wewouldbedealingwithadistorteddemandratherthanthetrueVoiceoftheCustomer.Sothefirst stepmight be differentiating between real demand and the created demand resultingfromafailureofthesystem.The second taskmight thenbe to try to findways to reduce thevariabilityofdemand (forinstancebyreducingtheleadtime)orincreasingtheeffectivevolumeofdemand(forinstancebystandardisingormodularisingdifferentofferings).Thisisillustratedbythearrowsinfigure11. The thirdtaskwouldthenbe toestablishtheappropriatetypeofsupplysystem fortheresultingproductorservice.Hereakanbanbasedpullsystemmightbemostappropriateforarunnerandamaketoorderflowsystemforarepeater.However,intherareoccasionswhereit is not possible to move the product or service out of the stranger zone it may still benecessarytooperateunderpushbasedconditions.ii.PullBasedImprovementInfartoomanyorganisationsthatIvisitIcannotfindalinkbetweentheimprovementactivitythatisgoingonandtheneedsofthebusiness,thecustomers,theemployeesorwidersociety.Inmanycaseswhatisimprovedseemtobemoreawhimofaparticular,usuallyseniorlevel,person.Indeed,whenIlookindetailattheprogrammeofimprovementsetoutbymanyfirmsIcanseelittleornolinktotheirprofessedstrategy.Thequestionis,arewesolvingtherightproblems? If not, it seems almost inevitable that even a well delivered improvementprogrammewillbeultimatelyconsideredtobeafailure.I also observe inmany organisations that projects or programmes are conceived by seniormanagement and, as we saw within the People principle area, are then imposed on localpeopleby full time changeagents. If this situation isparticularly severeor continues foraprotractedtimeIhearcomplaintsfrompeoplelowerdownintheorganisationalstructurethattheyhavebeen Leaned. Thispushbasedmentalityrarelyhas littletodowiththeneedsofthebusiness,customer,(local)employeesorsociety.Itismoreoftendrivenbyflawedmetricssuch theneed forsomanykaizeneventsorblackbeltprojects inagiven timeperiod. Thispiecemeal approach is likely to lead to disengagement, frustration and poor sustainability.UnfortunatelyIfindthesesymptomsfartoooftenwithinorganisationsemployingpushbasedimprovement. 13SeePeterHines,RiccardoSilvi&MonicaBartolini,LeanProfitPotential,LeanEnterpriseResearchCentre,Cardiff,2002 Page15of23 SAPartners19932010TocreateaneffectiveLeanBusinessSystem,itisnecessarytomoveasquicklyaspossibletoapullbased improvement system.Thisdoesnotnecessarilymean immediately,as the speedandpriorityofmovingquickly toapullbasedapproachwillvarydependingon thebusinesssituation,theLeanmaturityofthebusinessandthecompetingneedsforrapiddevelopmentofotherareasoftheLeanBusinessSystem(seethesectiononPerfectionbelow). However, ingeneral, I would say the transition should at least start within the first two years of anytransformation.Sowhatarethekeyingredientsofapullbasedimprovementsystem?First,thereneedstobeabsoluteclarityonwhatthebusiness istryingtoachieve(includingafocusonthecustomer,employeesandsociety).Second,thisWHATneedstobecommunicatedin a highly effective way so that everyone in the organisation can understand what thebusiness is trying to achieve, what this means to them and their team (including theircontributiontoit)andaneffective,alignedandengagingsetofKPIs.Third,andperhapsmostcrucial,isthattheproblemsbeingsolvedandprojectstobeworkedonhavebeenselectedbytheteamatthat level. Inotherwordsthattheownershipresides locallypulledbythe localneeds for improvement rather than pushed by a seniormanagement groupwhomight bequiteremotefromtheworkplace.AnexampleofsuchanapproachcanbeseeninFigure3.iii.PullBasedTrainingCloselylinkedtopullbasedimprovementistheconceptofpullbasedtraining.Thiscontrastswith theclassicpushbased training seen far too frequently inbusiness. Withinpushbasedtraining the topics,durationand timingofcoursesarepushedby theneedsof some seniormanagementgroup,typicallythetrainingmanager.Incontrast,withinapullbasedapproach,trainingisundertakenaccordingtotheneedsofthelocal team and is decided by consultation of the team leader (atwhichever) level and theindividual.Itisbasedonaskillsandcompetencyneedsthattheteamhaveinordertomaketheircontributiontothesuccessofthebusiness.Itishenceimpossibletohavepulledbasedtrainingunlesspullbasedimprovementisinplace.ThefirsttimeIobservedthiselementoftheLeanBusinessSystemwaswhenworkingwiththeToyota supply chain in Japan14. When I benchmarked their performance against a similarsupplychain inEurope Ifoundthatthegapswereenormous.Onesurprisewasthefactthattheemployees in the Japanese firms spentonaverageonlyhalf theamountofhoursdoingtrainingbutclearlyhugelyoutperformedtheirwesterncounterpartsintermsofresults.Thereason forthiswastwofold. First,theToyotasuppliers in Japanwereoperatingapullbasedtrainingapproachandsecond90%oftheirtrainingwasOnTheJob(orastheycalleditOJT)ratherthanlessthanthe10%moretypicalinthewest. 14PeterHines,BenchmarkingToyotasSupplyChain:JapanvsU.K.,LongRangePlanning,February,Volume31,Number6,pp.911918,1998,ISSN00246301 Page16of23 SAPartners199320105. PreventionOneof themost serious errors I see in theuseof Lean is an excessive focuson tools andtechniques. Notonlythis,but inmanycasesthisfocus ishighlyskewedtowardsafewtools.AmongtheonesImostfrequentlyencounterare: BigPictureMapping(aspopularisedbyRother&Shook15underthetermValueStreamMapping) 5S Kanban& QuickChangeovers(SMED)Theseareallgood tools. However, theyareoftenapplied inaslavish,AbeforeBbeforeC,approach. Worse still, littleallowance ismade towhether theyare the right toolsorothermoreappropriatetoolsarerequired.The most serious omission is usually tools within what in Figure 12 are described as theStandardised and Stable Process & Quality boxes. These tools are focused on preventingvariation,problemsandsubsequentreworkorqualityfailuresforthecustomer.Figure12:WorkingonPreventionwithintheToolHouseofLeanTheresult isthatorganisationsaretryingto improvetheflowofanunstablesystem. This isveryunlikelytowork. ThisfailurewithinthetraditionalLeanapproach(asappliedbymany)has ledmoreenlightenedorganisationstotrytofillthegapbycollectingaseriesoftoolstoaddress theproblem. Themostprominentof theseare theSixSigma tools firstcollatedbyMotorola inthe1980s. Althoughthiswasagoodreactiontotheproblemtheysaw inmanylimited leanorganisations, theirmistakewas to thennotemploy theother tools thatwerebeingused.Hence,therebecameanimbalancewithanoverfocusontheQualitypillarsideofthetrueLeanBusinessSystem. 15MikeRother&JohnShook,LearningtoSee,TheLeanEnterpriseInstitute,Brookline,1998 Page17of23 SAPartners19932010What is required isabalanceof tools from theToolHouseofLean. Thisbalanceshouldbepulled by the needs for local improvement where there is a daily habit of continuousimprovement that uses simple, visual technologies, tools and techniques that have beenchosen and adapted for effective use. Hence, the specific tools to be used should becontingentlyselectedaccordingtospecificneeds.6. PartneringNo company or organisation is an island and to create a world class organisation usuallyrequires thecreationofaworldclasssupplychain. Indeed, the leadingpractitionersofLeanworldwidesuchasToyotaandTescohavealsoheavilyfocusedoncreatingahighperformingsupplychain.Indeed,when IcomparedtherelativeperformanceofToyotasJapanesesupplychainwithacomparativeoneintheUKIfoundthatthemanagementofthesupplychainwasToyotaskeycompetitiveadvantage16.AscanbeseeninTable5,basedoncomparativeproductivityfiguresfor thewholesupplychain, themajorcompetitiveadvantagedidnot lieat thecarproducerbutmoreatthe1stand2ndtiersuppliers.Table5:TheCompetitiveGapWhenPartneringThequestion is,why?Afterthreemonthsofextensiveresearch Idiscovered that thereasonwasthatToyotainvestedahugeamountofeffortintopartneringwiththeirsuppliers.Indoingso theymadedramatic improvements to theirperformance. Notonly that,butToyotahadalso taught their suppliershow todo the sameusinganapproach theycallKyoryokuKaiorSupplierAssociation17.Unfortunately,althoughthisintercompanydevelopmentandcoordinationisattheheartofatrue LeanBusinessSystem thereare few companies in theWestoutsideof theautomotiveindustry that have got anywhere near achieving the type of resultswe see from Toyota inJapan. Oneof themain reasons is that insufficient focushasbeen given to thePartneringPrincipleintraditionalLeanbusinesses. 16PeterHines,BenchmarkingToyotasSupplyChain:JapanvsU.K.,LongRangePlanning,February,Volume31,Number6,pp.911918,1998,ISSN0024630117SeePeterHines,CreatingWorldClassSuppliers,Pitman,London,1994 Page18of23 SAPartners199320107. PlanetItwasjustaftertheturnofthemillenniumthatJimWomackwrote:Lean thinking must be green because it reduces the amount of energy and wasted byproducts required toproduceagivenproductIndeed, examplesareoften citedof reducinghumaneffort,space,andscrapby50percentormore,perproductproduced,throughapplyingleanprinciplesinanorganisation.thismeansthatleansroleistobegreenscriticalenablerasthemassivewasteinourcurrentpracticesisreduce.However, apart from a strongmovement in thewest coast of theUnited States, progressseemstohavebeenslowonadoptingthePlanetaspartofawidersetofLeanBusinessSystemPrinciples. This is in spite of the relentless march of Lean across industry sectors and theheightenedawarenessoftheenvironment.Figure13:ABalancedApproachOneofthefirsttoputthegreenagendaonthemapwasthethenNorwegianPrimeMinister,DrGroHarlemBruntlandwhensheintroducedtheconceptofsustainabledevelopment,describingitasbeingmadeupofthreeareas:economic,socialandenvironmentalsustainability.Foracompanywemighttranslatethisasafocusonarespectforprofit(economic),respectforpeople(social)andrespectforenvironment(environmental).Tothinkinverysimpleterms: AtraditionalLeanapproachmightbedescribedasunderstandingcustomersneedsandvalues and then reviewing the system andprocesses thatproduces them so that thetraditionaleightwastescanbeminimised Green might be described as understanding societys needs and values and thenreviewingthesystemandprocessesthatdeliversthemsothattheeightenvironmentalwastescanbeminimisedFigure14:LeanandGreenRespect for ProfitRespect for People Respect for EnvironmentBalanceZoneRespect for ProfitRespect for People Respect for EnvironmentBalanceZoneBalanceZoneWaste(Muda)Non value adding to the product or service in the eyes of the customerOver ProductionLost People PotentialWaitingTransportingInappropriate ProcessingUnnecessary InventoryUnnecessary MotionDefectsWaste(Muda)Non value adding to the product or service in the eyes of the customerOver ProductionLost People PotentialWaitingTransportingInappropriate ProcessingUnnecessary InventoryUnnecessary MotionDefectsLeanGreen Waste(Muda)Destruction of our environment in the eyes of societyGreenhouseGasesPoor Health & SafetyRubbishPollutionExcessive Power UsageExcessive Water UsageExcessiveResource UsageEutrophicationWaste(Muda)Destruction of our environment in the eyes of societyGreenhouseGasesPoor Health & SafetyRubbishPollutionExcessive Power UsageExcessive Water UsageExcessiveResource UsageEutrophicationWaste(Muda)Non value adding to the product or service in the eyes of the customerOver ProductionLost People PotentialWaitingTransportingInappropriate ProcessingUnnecessary InventoryUnnecessary MotionDefectsWaste(Muda)Non value adding to the product or service in the eyes of the customerOver ProductionLost People PotentialWaitingTransportingInappropriate ProcessingUnnecessary InventoryUnnecessary MotionDefectsLeanGreenGreen Waste(Muda)Destruction of our environment in the eyes of societyGreenhouseGasesPoor Health & SafetyRubbishPollutionExcessive Power UsageExcessive Water UsageExcessiveResource UsageEutrophicationWaste(Muda)Destruction of our environment in the eyes of societyGreenhouseGasesPoor Health & SafetyRubbishPollutionExcessive Power UsageExcessive Water UsageExcessiveResource UsageEutrophication Page19of23 SAPartners19932010Sowhatisthedifference?Wellapartfromthefactthatindividualcustomersaremultipliedtobecome society and the environmentalwastes have a slightly different character than thetraditionalleanwastes,notalot.What isnecessary is to includea setofdiagnosticmapping toolsand implementation toolsthataddresses thewiderPlanet issuesand theVoiceof Society. Inotherwords,as seen inFigure15anextraEnvironmentalpillarhasbeenaddedtothetraditionalLeanHouse.Figure15:PlanetfocusintheLeanToolHouse8. PerfectionPerfectionhasbeentheholygrailforLeanbusinessessinceWomackandJonesencapsulatedthisprincipleinthemid1990s.Thisfocuswastheresultofarevisioninthinkingafteragreatdealofbenchmarkingwork.The1990sautomotiveresearchworkshowedusthattherewerehugegapsbetweenthebestandothercompanies.Thegap,aswehaveseenabove,wasoftenbetweenToyota(oritssupplychain)andwesternequivalents.Thisbenchmarkinggavemanywesterncompaniesawakeupcall.However,ithadtwomajorproblems in terms of energising organisations. First, partly because the gapswere so big,manyorganisations,particularlyoutsideoftheautomotivesector,foundithardtoacceptthedata.This ledtoreasons for inactionsuchastheyhaveadifferentculture,it isadifferentindustryandwearedifferent.Second, even thosewhowere compelled by the data, lacked a roadmap of how tomoveforward.Asaresultmanyorganisations,oftenguidedbyexternalconsultants,simplyfollowedthequick fixkaizenblitz route leading inmany cases toapoorly sustained shortterm Leaninitiative.To counter thispiecemeal approach,webelieve thatorganisations should create theirownLeanBusinessSystem. Thisrequiresthemtodevelopavisionoftheirspecificperfectionandtheirownbespokeroadmaponhowtomovetowardsit.Buthow?Simplyput,theprocess issimilartobestpracticeValueStreamMapping,excepthereweareworkingatthebusiness,ratherthantheValueStreamorprocess level. Asseen inFigure16youstartwithestablishingtheCurrentStateforthebusiness.YouthenenvisionPerfection,ortheIdealState(orwhatyouthinkisthebestpossiblepositionyoucouldpossiblyreach).You Page20of23 SAPartners19932010thenbackoff from this toapoint thatyour teambelieve is feasible in the long term. ThisFeasibleFutureStatemightbe3to5yearsaway.Figure16:MovingTowardsPerfectionThenextstepisthentocreatearealisticpointthatcanbereachedwithinasensibleengagingtimescale(usuallyaround18months). This istheTargetedFutureStatethatthenrequiresaRoadmap. OncethisTargetedFutureStateposition isachieved,afurtherRoadmaptowardstheIdealStatemaythenbecreatedanddeployed.Tohelp,wehavedevelopedtheLeanBusinessModel(Figure17)whichnotonlyprovidesaframework for an organisations particular Lean Business System but also an associateddiagnostic tool that helps the organisation to see where they are in a journey and whichinterventionsshouldbedoneearlyandwhichdonelater.Figure17:TheLeanBusinessModelThinkofthe5elementsofthemodelas5piecesofajigsaw.Thebenefitofgettingallofthepiecesintherightplaceat the right time is thatyouareable toseethewholepicture.Thesame istrueoftheLeanBusinessModel.Overthecourseofatransition todevelopaLeanBusinessSystem,organisationsmustsystematically complete thewholeof the jigsaw togetallofthebenefitfromtheirinvestment.To start creating the Lean Business System18 it isnecessary to follow the steps described above(Figure 16) for each element of the Lean BusinessModel. It isnot just about takingeachelement abit further ineachRoadmap,but aboutmakingdiscriminatingchoicesofwhattodoatwhatpoint intime. Indeed,themoredifficultchoice iswhatnottodo inthefirstRoadmap,astryingtodoeverythingatoncewill leadtodelays,frustrationandpoorsustainability. 18 FormoredetailsoftheLeanBusinessSystem,pleaseseethewhitepaperCreatingaLeanBusinessSystemathttp://www.sapartners.com/content/blogsection/6/87/lang,/ Page21of23 SAPartners19932010TheMeasurementSystem(Figure18)associatedwiththisisbasedontheacademicallyprovenFiveKeyMilestonesofContinuous ImprovementMaturity fromadhocthroughtowayoflife. Each of the core elements of the Lean BusinessModel is assessed not only from aquantitativeviewpointofsystemsandproceduresbutalsofromaqualitativeviewpointofvaluesandbehaviours.Figure18:StagesofLeanMaturityInotherwordsweneedtomeasurenotjustwhatyoudobutalso(andmoreimportantly)thewaythatyoudoit.Thishelpstobuildalearningorganisationthatnotonlyhasthecapabilitytomaintainthegainsoftheimprovementbutisalsoselfpropelledcontinuouslytoimprovethecontinuousimprovementprocessuntilitbecomesadailyhabitforeveryone.Figure19:TheRoadtoPerfectionStage 1Reactive1 Reactive Approach2 Little/No involvement3 Adhoc LearningStage 2FormalStage 4AutonomousStage 3Deployed1 Formal Structure2 Only Specialists3 Team LearningThe Milestones ofLEAN MATURITYStage 5Way 0f LifeKey Characteristics1. Ways of Working2. Associate Autonomy3. Best Practice1 Autonomous Habit2 Full Empowerment3 External Learning1 Driven Deployment 2 Majority Involvement3 X-Process learning1 Goal Orientated2 Selected Teams3 Value Stream LearningStage 1Reactive1 Reactive Approach2 Little/No involvement3 Adhoc LearningStage 2FormalStage 4AutonomousStage 3Deployed1 Formal Structure2 Only Specialists3 Team LearningThe Milestones ofLEAN MATURITYStage 5Way 0f LifeKey Characteristics1. Ways of Working2. Associate Autonomy3. Best Practice1 Autonomous Habit2 Full Empowerment3 External Learning1 Driven Deployment 2 Majority Involvement3 X-Process learning1 Goal Orientated2 Selected Teams3 Value Stream Learning Page22of23 SAPartners19932010Summary&ConclusionsInthiswhitepaperIhavesoughttoreflectonthestateofLeanasitistoday,throughthelensofthetraditional Lean Principles. These reflections have led me to conclude that some updating isnecessaryiforganisationsaretogetfurtherthantheoftentoolbasedapproachthatIsee.Ibelieve that the journeyand thenewlymodifiedsetofPrinciples IdescribehereareanessentialpartincreatingforeachorganisationtheirownuniqueLeanBusinessSystem.Suchasystemcanbeused tocreateanholistic, integratedandengaging journey thatwill lead to sustainable longtermsuccess.Iwishyougoodfortuneonyourownparticularjourney.ReferencesNicolaBateman,Sustainability:AGuidetoProcessImprovement,http://www.leanenterprise.org.uk/component/option,com_docman/task,cat_view/gid,31/Itemid,68WarrenBennis,OnBecomingaLeader,PerseusPublishing,Cambridge,2003PeterHines,CreatingWorldClassSuppliers,Pitman,London,1994PeterHines,BenchmarkingToyotasSupplyChain:JapanvsU.K.,LongRangePlanning,February,Volume31,Number6,pp.911918,1998,ISSN00246301PeterHines,MustDoBetter:ApplyingLeaninthePublicSector,PublicSectorExecutive,Sept/Oct,pp.3445,2009PeterHines,PaulineFound,GaryGriffiths&RichardHarrison,StayingLean:Thriving,NotJustSurviving,LeanEnterpriseResearchCentre,Cardiff,2008,http://www.sapartners.com/[registeronthesitetodownload]PeterHines,MatthiasHolweg&NickRich,LearningtoEvolve:AReviewofContemporaryLeanThinking,InternationalJournalofOperations&ProductionManagement,24,10,pp.9941011,2004SeePeterHines,RiccardoSilvi&MonicaBartolini,LeanProfitPotential,LeanEnterpriseResearchCentre,Cardiff,2002DougHowardell,SevenLeanSkills,http://www.theacagroup.com/leanarticle.htmJeffreyLiker,TheToyotaWay,McGrawHill,NewYork,2004JohnLucey,NicolaBateman&PeterHines,WhyMajorLeanTransformationsHaveNotBeenSustained,ManagementServices:JournaloftheInstituteofManagementServices,49,2,pp.913,2005TaiichiOhno,AsquotedontheToyotaCorporateWebsite,http://www.toyota.co.jp/en/vision/traditions/jul_aug_04.htmlMikeRother&JohnShook,LearningtoSee,TheLeanEnterpriseInstitute,Brookline,1998JamesWomack&DanielJones,LeanThinking,Simon&Schuster,NewYork,1996 Page23of23 SAPartners19932010FurtherInformationRelevantLinkedInGroupsledbyProfessorPeterHines:LeanBusinessSystemhttp://www.linkedin.com/groups?gid=1801885LeanBusinessSystemAsiaPacifichttp://www.linkedin.com/groups?gid=1819060LeanBusinessSystemBeneluxhttp://www.linkedin.com/groups?gid=1842070LeanBusinessSystemCanadahttp://www.linkedin.com/groups?gid=2715139LeanBusinessSystemCentral&EasternEuropehttp://www.linkedin.com/groups?gid=1890400LeanBusinessSystemFood&Drinkhttp://www.linkedin.com/groups?gid=1836371LeanBusinessSystemIrelandhttp://www.linkedin.com/groups?gid=1826782LeanBusinessSystemMediterraneanhttp://www.linkedin.com/groups?gid=1890317LeanBusinessSystemNordichttp://www.linkedin.com/groups?gid=1816278LeanBusinessSystemRetailhttp://www.linkedin.com/groups?gid=1836660Lean&Greenhttp://www.linkedin.com/groups?gid=1826144ContactInformationforProfessorPeterHinesEmail:peter.hines@sapartners.co.ukMobile:+44(0)7778840979Web:http://uk.linkedin.com/in/professorpeterhinesSAPartners:www.sapartners.com

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