Lean Change

Lean change management is a different approach to organisational change that has its roots from lean manufacturing. The driving principle is to optimise value, while eliminating or reducing waste. Organisations that implement lean change strategies expect to do more with less. One can think of it as the ultimate in organisational efficiency.

Lean change management is a different approach to organisational change that has its roots from lean manufacturing. The driving principle is to optimise value, while eliminating or reducing waste. Organisations that implement lean change strategies expect to do more with less. One can think of it as the ultimate in organisational efficiency.

Lean Change: Philosophy or Technique?

There are two schools of thought when it comes to lean change. On one hand are those who believe the system as a set of techniques and tools that serve to reduce operational costs and maximise production. Proponents of this view look at certain aspects of the organisation that are more suitable to change.

On the other end of the spectrum are those who consider lean change as a philosophy. They emphasise the importance of guiding principles that serve as the foundation of the organisation. Their approach is one of holism, believing that organisations cannot alienate one part without affecting the other parts. The belief is that lean change is best accomplished when the different organisational elements work in a synergistic manner.

Development of Lean Thinking

It was John Krafcik who first coined the term ‘lean’ way back in 1988. However, it was Daniel Jones and James Womack who developed the idea in 1996 into a conceptual model used by many organisations today. What organisations should know is that the concept of ‘lean thinking’ has its roots in 15^th century Venice, Italy. The American inventor, Eli Whitney, also forwarded the idea of interchangeable parts in 1799.

Frederick Taylor also had a hand in the development of lean thinking, forwarding his idea of scientific management in the early 1900s. Henry Ford also added the importance of work standardisation in 1913. He emphasised the need for eliminating redundant parts and standardising individual components.

Shigeo Shingo adopted Taylor’s views on scientific management in 1910. Taiichi Ohno, for his part, espoused Ford’s views in the 1920s. Ohno and Shingo would later combine their ideas in the development of the Toyota Production System in the 1930s. The system eliminated wasted resources, while improving the automobile manufacturing processes.

In 1988, John Krafcik translated the TPS into the kind of lean thinking we know today. He described lean thinking as an approach to achieving high levels of quality and productivity. He posited that organisations need to have a flexible and well-trained workforce and easy to build, high-quality product designs.

Womack and Jones’s 5 Principles

Womack and Jones forwarded 5 important principles that can help guide organisations in improving the value of their product offering, while minimising waste.

• Value

Organisations should have a very clear idea of what is valuable to their customers. Womack and Jones proposed the creation of teams for each product that will manage the production cycle of the product.

• Value Stream

It is important for organisations to analyse the existing workflow to design a more efficient system. Each step in the process flow should provide value to the customer in the form of a highly-valued finished product.

• Flow

Process flows should proceed without any form of interruption. Any interruption can lead to waste and undermine the main objective of a lean process.

• Pull

Womack and Jones used Ohno’s concept of “pull” as a necessary principle in lean management. The organisation should be able to maximise its value if it can recognise the ‘pull’ coming from its customers. In other words, organisations should focus more on a build-to-order scheme than on a target-driven mechanism.

• Perfection

No organisation can achieve 100% perfection. Doing so suggests the complete absence of the need for further improvement. Womack and Jones posited that organisations should continue to reduce their operational wastes over time, while improving the value they provide to customers.

The Perfect Model of Lean Change: The Toyota Production System

One of the most successful systems ever to be introduced by the Japanese automotive manufacturer is the Toyota Production System. It is the result of combining different production system and scientific management schools of thought. The main objectives of the TPS are threefold.

1. Avoid overburdening people and processes.
2. Eliminate work inconsistency.
3. Eliminate waste.

Lean Tools and Techniques

Organisations that have a toolkit orientation can use different techniques and tools to make very efficient methods, while eliminating wastes. These can include Toyota’s 7 Wastes, the Japanese 5S Methodology, and control charts. We will examine the first two here.

• 7 Wastes

Toyota believes that the key to an efficient operation is to minimise or eliminate waste. The company defined ‘waste’ as anything that does not offer value to customers. Toyota identified 7 ‘waste’ or ‘muda’ that organisations need to eliminate.

1. Faulty products
2. Waste of employee skills
3. Not utilising the full capabilities of company resources
4. Delegation without appropriate training
5. Using the wrong metrics or using no metrics at all
6. Not using participative management whereby employees can contribute their ideas
7. Computer-related wastes, including inappropriate software, inappropriate use of computer, and lack of training

• 5S Methodology

This is another technique that organisations can use to minimise waste and improve overall work efficiency. The 5S includes the following.

• Seri – Sort items to make it easier to look for them, while also improving space efficiency and safety.

• Seiton – Setting items in order can facilitate smoother and easier workflows.

• Seiso – Cleaning the workplace, machinery, and tools can improve process efficiency, reduce waste, promote safety, and prevent defects and errors.

• Seiketsu – Standardising sorting, ordering, and cleaning can provide a clear structure for the organisation to follow.

• Shitsuke – Everyone in the organisation should have self-discipline to ensure that the goals of each of the 5S are met.

Lean Change in the Modern World

Many of the successful organisations today use lean principles. These include Toyota, FedEx, Nike, Kimberly-Clark, Caterpillar, Inc., Intel, Textron, Ford, and John Deere.

Lean thinking is not only effective in the manufacturing world. It can also be beneficial in the non-manufacturing sector. Virginia Mason Medical Centre and ThedaCare are two of the organisations outside the manufacturing sector that use lean principles. Universities, public schools, financial services firms, law firms, and even government offices use many of the principles of lean. Non-profit organisations also benefit from lean principles.

Organisations should look at lean change management as an approach that can help improve their overall value to their customers. It allows organisations to eliminate waste and make their processes a lot more efficient.