Business Management Charron The Harrington Voehl Wiggin LEAN MANAGEMENT THE LEAN MANAGEMENT SYSTEMS HANDBOOK SYSTEMS HANDBOOK Performance management, the primary focus of a Lean organization, occurs through continuous improvement programs that focus on education, belief systems development, and effective change management. Presenting a first-of-its-kind approach, The Lean Management Systems Handbook T details the critical components required for sustainable Lean management. H S Positioning Lean as a management operational philosophy far beyond the E Y traditional set of improvement tools, the book explains how managers at all S levels of an organization can integrate Lean into their daily management L activities. It defines the Lean philosophy as well as the beliefs and behaviors T E Employee required to develop a thriving Lean company culture. E A The book captures the essence of Lean learning and Lean doing and M Involvement N illustrates practical applications of Lean management. It begins by covering S the basics that encompass Lean management and leadership in two critical M areas: maintenance/control and improvement. H A After reading this book, you will better understand how to see waste, A measure waste, eliminate waste, and develop an active change improvement N L E A N E N T E R P R I S E workplace. You will also gain the practical understanding required to deter- N A mine which Lean tool is best suited to your particular need for supporting an D G organization-wide management system. A Quality Waste B E Expounding on essential Lean concepts, this is an ideal guide to help new Belief Elimination O M managers and leaders make the transition from theory to successful applica- tion in the field. Complete with brief summaries and examples of the most O E important tools in Lean management systems development in each chapter, K Structured N the book provides a reliable roadmap for deploying a Lean management Management system across your organization and, subsequently, across your entire T value stream. Rich Charron (cid:127) H. James Harrington (cid:127) Frank Voehl (cid:127) Hal Wiggin 4 K16035 ISBN: 978-1-4665-6435-0 90000 Management Handbooks 9 781466 564350 for Results The LEAN MANAGEMENT SYSTEMS HANDBOOK The LEAN MANAGEMENT SYSTEMS HANDBOOK Rich Charron (cid:127) H. James Harrington (cid:127) Frank Voehl (cid:127) Hal Wiggin Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Group, an informa business A PRODUCTIV ITY PRESS BOOK CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2015 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Version Date: 20140618 International Standard Book Number-13: 978-1-4987-0529-5 (eBook - PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. 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CCC is a not-for-profit organization that provides licenses and registration for a variety of users. For organizations that have been granted a photocopy license by the CCC, a separate system of payment has been arranged. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com This book is dedicated to the two most influential women in my lifetime: my late mom, Helen M. (Sharkey) Charron, and my daugh- ter, Hali Charron. To my mom, who selflessly did for me the thousands of things that make moms … moms. She gave me enough freedom for skinned knees and hockey game hospital trips, but knew exactly when to step in and provide course correction before real trouble could become real trou- ble. I love you and miss you, mom. To my precious daughter, Hali, who as a child opened my eyes to life lessons that irreversibly changed my understanding of what is impor- tant and what is not. As a young woman, she continues to both amaze me and make me proud on a daily basis. Love you, Hali. —Richard Charron This handbook is dedicated to our friends and mentors: Armand “Val” Fiegenbaum, one of the “Four Horsemen” of the Lean Quality Movement, who never met a problem he could not solve; and to Marshall MacDonald, FPL Chairman, who never met a company he couldn’t fix. —Frank Voehl Contents Authors ..............................................................................................xxiii Chapter 1 Introduction to Lean Management ...................................1 In a Nutshell .................................................................................1 Overview .......................................................................................2 Dawn of Lean Manufacturing ..............................................3 Porsche and the Lean Transformation ................................4 Performance Management .........................................................7 Raw Material, Work-in-Process, and Finished Goods Flow ..............................................................................8 Operator Flow in Relation to Machines ..............................8 Information Flow ....................................................................9 Engineering Flow ....................................................................9 Asset Management ....................................................................10 Resource Management..............................................................11 Cellular Manufacturing .......................................................12 Risk Management ......................................................................14 Lean Management System Deployment Model ....................15 Lean Performance Management ........................................15 Lean Workers Cross-Training .............................................16 Change Management for Senior Management Teams ....19 In-House Lean Deployment Projects ................................20 Toyota Lean Management System Explained .............20 Lean Management and Green Revolution ....................24 Summary ....................................................................................25 References ...................................................................................26 Chapter 2 History of Lean .................................................................27 In a Nutshell ...............................................................................27 Overview .....................................................................................27 Lean Techniques .......................................................................28 Venetian Arsenal (1104–1800) .................................................29 Eli Whitney (1792–1805) ..........................................................35 vii viii • Contents Eli Terry (1772–1852) ................................................................36 Frederick W. Taylor (1856–1915) .............................................37 Frank Gilbreth (1895–1924) .....................................................38 National Cash Register Company (1896) ..............................40 Henry Ford, Sr. (1863–1947) ...................................................40 Charles Bedaux (1887–1944) ...................................................44 Walter L. Shewhart (1891–1967) .............................................44 Harold F. Dodge (1893–1976) and Henry Romig (1893–1972) .................................................................................45 Henry Ford II (1917–1987) .......................................................45 Kaoru Ishikawa (1915–1989) ...................................................46 Armand V. Feigenbaum (1922–Present) ................................47 Taiichi Ohno (1912–1990) .......................................................48 Shigeo Shingo (1909–1990) ......................................................49 Phil Crosby (1926–2001) ...........................................................50 Process Benchmarking (1947–Present) ..................................51 Joe Juran (1904–2008) ...............................................................52 Yoji Akao (1928–Present) .........................................................52 IBM’s 1980s Approach to Quality Improvement ..................52 W. Edwards Deming (1900–1993) ..........................................54 Total Quality Management (1984) ..........................................55 Eliyahu Moshe Goldratt (1947–2011) ......................................55 Fast Action Solution Technique (1980) ..................................55 Malcolm Baldrige National Quality Award (1987) ..............56 Bill Smith (1929–1993) ..............................................................57 H. James Harrington (1929–Present) Business Process Improvement (1988) ..................................................................59 Lean Manufacturing (1988) .....................................................59 Michael L. George (2002) .........................................................59 Jeffrey K. Liker (2012) ..............................................................60 Lean Management Systems (2014) .........................................60 Summary ....................................................................................61 References ...................................................................................62 Chapter 3 House of Lean Management ............................................63 In a Nutshell ...............................................................................63 Introduction ..............................................................................64 House of Lean Management ....................................................65
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