Lean Enterprise: A Comparison
It amazes me, but I still get lots of questions about how “lean”
compares with Six Sigma, Total Productive Maintenance,
Business Process Re-engineering, Demand-Flow, the Theory of
Constraints, and other approaches to improvement. And I
always give the same answer: At the end of the day we are all
trying to achieve the same thing: The perfect value stream. Here’
s how I think about it:
compares with Six Sigma, Total Productive Maintenance,
Business Process Re-engineering, Demand-Flow, the Theory of
Constraints, and other approaches to improvement. And I
always give the same answer: At the end of the day we are all
trying to achieve the same thing: The perfect value stream. Here’
s how I think about it:
To create value for the customer – which I hope we agree is
how we should be earning our living – a series of steps must
be conducted properly in the proper sequence. These steps
collectively are what we call the value stream for each
product. As I walk through any value stream – and I walk a lot
every year as I visit many companies in many countries -- I
ask the following very simple questions about each step:
how we should be earning our living – a series of steps must
be conducted properly in the proper sequence. These steps
collectively are what we call the value stream for each
product. As I walk through any value stream – and I walk a lot
every year as I visit many companies in many countries -- I
ask the following very simple questions about each step:
Is the step valuable? Or would the customer be equally happy
with the product if the step could be left out? If the latter is the
case, the step is at best what Toyota would call “incidental
work” and what I often call Type One muda. Get rid of it as soon
as you can!
with the product if the step could be left out? If the latter is the
case, the step is at best what Toyota would call “incidental
work” and what I often call Type One muda. Get rid of it as soon
as you can!
Is the step capable? Can it be conducted with the exact same
result every time? This is the starting point, but never the end
point, for Six Sigma.
result every time? This is the starting point, but never the end
point, for Six Sigma.
Is the step available? That is, can it be performed whenever it is
needed? Or is the step subject to breakdowns and varying
cycle times so you are never sure what will happen? This is the
starting point, but again not the end point, of Total Productive
Maintenance.
needed? Or is the step subject to breakdowns and varying
cycle times so you are never sure what will happen? This is the
starting point, but again not the end point, of Total Productive
Maintenance.
Is the step adequate? That is, is there capacity to perform it
exactly when the value stream requires it? Or is there a
bottleneck? Bottleneck analysis is, of course, the starting point
of the Theory of Constraints. Or, and more likely in the current
era, is there too much capacity? Toyota tries to avoid this by
adding production capacity in small increments rather than in
big hunks, increments that can be flexed by adding or
subtracting employees.
exactly when the value stream requires it? Or is there a
bottleneck? Bottleneck analysis is, of course, the starting point
of the Theory of Constraints. Or, and more likely in the current
era, is there too much capacity? Toyota tries to avoid this by
adding production capacity in small increments rather than in
big hunks, increments that can be flexed by adding or
subtracting employees.
Is the step flexible? Can it shift over quickly from making
green ones to making red ones quickly? And can it
changeover without compromising capability, availability, and
adequacy? Flexibility is the key to rapid response to changing
customer desires while avoiding the inefficient production of
big batches.
green ones to making red ones quickly? And can it
changeover without compromising capability, availability, and
adequacy? Flexibility is the key to rapid response to changing
customer desires while avoiding the inefficient production of
big batches.
If all the steps in your value streams are valuable, capable,
available, adequate, and flexible, you are well on your way.
What remains is to perfect the linkage between the steps.
available, adequate, and flexible, you are well on your way.
What remains is to perfect the linkage between the steps.
Does the product flow from one step to the next with no delay?
Henry Ford pioneered with “flow production” in 1914 by
moving the process to the product rather than the reverse.
This is how he created nearly continuous flow not just on the
assembly line but also in component fabrication at Highland
Park. Unfortunately, he found flow hard to sustain in a world
with changeable demand and wide product variety. That’s
where Toyota came in.
Henry Ford pioneered with “flow production” in 1914 by
moving the process to the product rather than the reverse.
This is how he created nearly continuous flow not just on the
assembly line but also in component fabrication at Highland
Park. Unfortunately, he found flow hard to sustain in a world
with changeable demand and wide product variety. That’s
where Toyota came in.
Does the product only flow at the pull of the next downstream
step? This is the central point of JIT, one of the pillars of TPS:
Products should only flow at the command of the next step
downstream.
step? This is the central point of JIT, one of the pillars of TPS:
Products should only flow at the command of the next step
downstream.
Is the flow leveled back from the customer to the extent
possible, with a standard inventory of finished goods if
necessary? Leveling permits every step in the whole value
stream to operate smoothly while still satisfying the customer
with exactly what is needed exactly when it is needed.
possible, with a standard inventory of finished goods if
necessary? Leveling permits every step in the whole value
stream to operate smoothly while still satisfying the customer
with exactly what is needed exactly when it is needed.
None of us, of course, have created any perfect value streams.
Probably we never will. But energy expended on comparing
and criticizing improvement methods rather than pursuing the
perfect value stream, is surely Type Two muda. That’s the type
of waste we can get rid of immediately!
Probably we never will. But energy expended on comparing
and criticizing improvement methods rather than pursuing the
perfect value stream, is surely Type Two muda. That’s the type
of waste we can get rid of immediately!
Jim
P.S. For a value stream to advance toward perfection it needs a steady supply of
nutrients (materials) and a steady removal of waste (in the form of packaging,
empty containers, etc.) That’s where a lean material-handling system comes into
play to respond to the stream’s needs, providing the exact amounts needed
exactly when needed. We’re just finishing our latest LEI workbook, Making
Materials Flow, to help you implement lean material handling. We will be
launching it August 26-27 in Kokomo, Indiana. It combines instruction with
seeing a lean material-delivery system in action and the opportunity to talk to the
people who use it. For details on our “Lean in Motion” launch event please go to
www.lean.org
nutrients (materials) and a steady removal of waste (in the form of packaging,
empty containers, etc.) That’s where a lean material-handling system comes into
play to respond to the stream’s needs, providing the exact amounts needed
exactly when needed. We’re just finishing our latest LEI workbook, Making
Materials Flow, to help you implement lean material handling. We will be
launching it August 26-27 in Kokomo, Indiana. It combines instruction with
seeing a lean material-delivery system in action and the opportunity to talk to the
people who use it. For details on our “Lean in Motion” launch event please go to
www.lean.org
by James Womack
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Jim
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