Summary Overview improvement programs: Lean, Six Sigma, BPR, TQM
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Course
Process Improvement and change
Institution
Rijksuniversiteit Groningen (RuG)
An extensive summary of all the improvement programs for the course Process Improvement & Change (MSc Supply Chain management) at the University of Groningen.
Improvement programs PI&C
Lean
General about lean
Lean is a socio-technical system whit the main objective to eliminate waste by concurrently
reducing or minimizing supplier, customer and internal variability (Shah & Ward, 2007)
- Lean is seen as both a philosophy and as a set of tools and practices (Shah & Ward,
2007)
• Philosophy to understand and enhance value
• Operational tools to reduce waste and minimize variability (e.g. JIT, cellular
manufacturing, preventive maintenance, self-directed work-teams)
History and characterization of lean
- Originates from the Toyota Production system (1950’s)
- Gained popularity in US and Europe in the 1990’s
Lean is characterized as:
- Continuous improvement approach
- Mainly focused at incremental changes in existing processes
- A planned change approach
- Can be implemented in teams, organization and the entire supply chain
- Can be implemented in a large variety of contexts (manufacturing and services, private
and public sectors)
A wider perspective on waste
Muda = any activity that consumes resources (including time) but creates no value for the
customer (see previous slide).
Mura = variation in the operation of a process not caused by the end customer.
Muri = overburden on equipment, facilities & people caused by mura and muda.
, Lean operations
- Ultimately, lean aims to improve business performance in quality, cost, delivery and
people contribution through implementation of simple, practical tools and techniques
- This also requires a certain mind-set of employees and management involved: a mind-
set that focuses on continuous improvement. Rather than just seeking errors in the
system, people involved should look for how lean value systems can be created
Contingency approach
Over the years, research has identified a number of contingencies:
- Lean is specifically relevant to businesses with long lead times and predictable
demand (stable environment)
- The use of lean has been influenced by sector characteristics (e.g. unionization might
hold back implementation of certain tools) and organizational characteristics (e.g.
plant size: larger plants may have more resources)
- In (public) service sectors some prerequisites are needed: adopting a process based
view, understanding capacity and demand, go beyond simple application of a set of
tools
- Some researchers state that not all tools and practices of lean are equally suitable to
remove all forms of waste. Particular types of waste should be matched to particular
tools and practices
Diagnosing change conditions – external environment
What is external to the change depends on the unit of analysis of the change (organization,
supply chain)
- Lean implementation should fit with stability of demand and production environment:
long lead times and predictable demand (short leadtimes and unpredictable demand:
focus on agility)
- Lean implementation has been affected by influence of international competitors,
employee preferences, cultural values and pressure from trade unions
- Some negative consequences have been recognized
• Increased traffic (and pollution) due to more frequent deliveries
• Unfavourable customer reactions due to a large number of new models brought onto
the market
Diagnosing change conditions for lean – internal environment
- Lean focuses on both cultural (lean as philosophy) and operational (lean tools and
practices) problems
- It is an embedded culture of understanding the customer’s needs, continually striving
to reduce waste and optimising the performance of processes, people and
infrastructure.
- From a “bolt on” technique, developing towards a way of life leading to a total change
in culture
- The key is understanding value for the customer and delivering his/her requirements
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