The Remedy: Bringing Lean Thinking Out of the Factory to Transform the Entire Organization

271 Pages·2010·4.36 MB·English

by  Pascal Dennis

$24.95 USA | $29.95 CAN
[ C O N T I N U E D F R O M F R O N T F L A P ]
D
Do you want to improve your business, but haven’t consid-
E RE YOU WONDERING HOW to do more with
ered Lean processes as a possible approach? The Remedy praise for The Remedy
N less by pushing “Lean thinking” beyond manu-
offers a vibrant, entertaining look at how today’s Lean
N facturing into every area of your company? Meet
techniques can be applied far beyond the factory fl oor.
“Lean manufacturing has become a common focus, but its application in other I Tom Papas, the hero of Pascal Dennis’s enlightening Lean
S
functions like marketing, R&D, and fi nance has been problematic. The Remedy is teaching business novel The Remedy. As plant manager for New
us how to cure Big Company Disease by applying Lean across our entire company.” Jersey Motors Manufacturing (NJMM), Tom has used
—Dave Faddis, Senior Executive, Kimberly-Clark Corporation TTTTTTTTTTTT
Lean methodologies and processes to make his manu-
hhhhhhhhhhhhh
facturing operation a bright spot for otherwise limping
“This is a great addition to the literature and is a quick and engaging read. Pascal uses
eeeeeeeeeeeee automaker Taylor Motors. Now Tom has been called to
his deep experience implementing Lean concepts in the workplace, his natural writing
company headquarters near Detroit to meet with Senior
skills, and great visuals to bring the story to life and educate us along the way.”
RR
—Jeffrey K. Liker, Professor, University of Michigan, Vice President Rachel Armstrong. Will she offer Tom a
and author of The Toyota Way promotion? Or will the shortsighted CFO J. Ed Morgan
ee
cut NJMM to the bone and negate all Tom’s hard work?
“The Remedy utilizes storytelling to connect Lean theory with
mm
practical application not only at the functional level, but across the barriers of
A powerful story for today’s challenging economy, The
a complex organization. A must-have reference book for all leaders.”
Remedy doubles as a highly readable playbook for taking
—Tom Melsen, Vice President, Personal Care Product Supply, ee
your Lean practices into marketing, service, and other
Kimberly-Clark Corporation
dd parts of the organization where Lean hasn’t typically
“Pascal’s ability to translate the challenges of real-world Lean transformations into been applied. Bringing back characters from Dennis’s
yy
the written word is uncanny. Building off his previous Lean stories, Getting the Right Shingo Prize–winning Lean novel Andy & Me, including
Pascal Dennis is the President of Lean Pathways
Things Done and Andy & Me, Pascal gives us all a story we can relate to: how do we the reclusive quality sensei Andy Saito, this new tale
Inc., a successful international consultancy, and the
‘Lean out’ enterprise business systems? This work is much more diffi cult than Leaning demonstrates how you can bring Lean processes to your
author of three previous books on Lean management, all out factory-type activity, but the rewards are commensurate with the level of diffi culty.”
entire enterprise.
of which have won the coveted Shingo Prize for outstand- —Allen Vyce, Director, F-35 Change Integration, Lockheed Martin Aeronautics
ing research in the fi eld of operational excellence. His
Follow Tom, Rachel, and Andy as they embark on a
clients include Fortune 500 companies like Kimberly- “Pascal has done a masterful job of highlighting one of the most pressing problems
mission to revitalize Taylor Motors in the face of the
facing businesses today–effective application of Lean principles to the ‘offi ce fl oor.’ ”
Clark, Lockheed Martin, and Magna International, as
—Dave Brule, Sr., President and CEO, Northern Star Industries, Inc. B U.S. auto industry’s devastating meltdown. Along the
well as leading health care, construction, and fi nancial R
TTHIN way, you’ll discover illuminating new ways to:
services fi rms. Dennis learned the Toyota Business HEG
System in leadership positions at Toyota Cambridge, one “In The Remedy, once again Pascal has managed to incorporate great E E FAING
principles into an interesting story. The Implementation Checklist and NTCT L ++ Apply Lean concepts and methods beyond
Tofo yTootyao stae’ns sbeeiss ti np lNanotrst,h a Andm ehraisc aw aonrkde Jda wpaitnh. leading —StevSetu dPyo Qnutebstrioiansn adt ,t hEex eencudt iovfe e VacPh acnhda pCtOerO a,r Ne ogrrtehaet rlne aSrtnairn Ign tdouosltsr.i”es, Inc. IRE ORORY TOEAN TH mmaanrkueftaicntgu,r sinugp ptoly c cohrpaionr,a aten dfu dnecstiigonns such as
JACKET DESIGN: CHRIS WALLACE “Pascal has a rare ability to boil down complex subjects to their simplest form. GANIZ TRANINKIN ++ Oyovue rccroematee tchhea pnogleitics of large organizations as
Here, he really puts perspective on leadership’s role in a Lean organization, ASG
ACRUOATVNHEDORYR IP MPLAHEGTOTET;SO C GCHROAAUIPRNHT L:E ISBNYRK ESIST ©T NO RECWUKSSPSOHEMOLETLO OT AAFT NNEDE; WTBHUSOEIL MADERI NTPGIHS OT©:T  MBOOGATRRTACLP BEHR ©YOWN; and —theJ ‘awmatieer rSinpge maokdeerl’ ,i sC ao -gPrreeasti dimenatg,e J f.Wor .g Supideainkge rl eCaodreprosr’ abteiohnavior.” TIONFORM OUT OFFFFF ++ Dpheifil onseo ypohuicra Tl roubej eNctoirvteh—your strategic and
OLD PAPER © PAUL HART; SILVER SPOON © OLENA DRUZHYNINA ++ Apply Lean to knowledge-based workfl ows
++ U nderstand and strengthen the Four Rules and
the Four Capabilities in your organization
+ Reduce waste and build value in different kinds of
eeeeeeennnnnnnnttttttteeeeerrrrrrrppppppppppppprrrrrrrrrises such as health care and retail
[[[[[[[[[[[[ CCCCCCCCCCCC OOOOOOOOO N T I N U E D O N B A C K F L A P ]
COVER TO PRINT ON MATTE STOCK
E1BREF 05/11/2010 Page256
E1FFIRS 05/11/2010 Page1
E1FFIRS 05/11/2010 Page2
E1FFIRS 05/11/2010 Page3
BRINGING
LEAN THINKING
out of THE FACTORY to
TRANSFORM THE
ENTIRE ORGANIZATION
PASCAL
D E N N I S
JohnWiley&Sons,Inc.
E1FFIRS 05/11/2010 Page4
Copyright#2010byLeanProductivityNetwork.Allrightsreserved.
ArtworkbyDianneCatonbasedonscribblesbyPascalDennis.Allrightsreserved.
PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey.
PublishedsimultaneouslyinCanada.
Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmitted
inanyformorbyanymeans,electronic,mechanical,photocopying,recording,scanning,or
otherwise,exceptaspermittedunderSection107or108ofthe1976UnitedStates
CopyrightAct,withouteitherthepriorwrittenpermissionofthePublisher,or
authorizationthroughpaymentoftheappropriateper-copyfeetotheCopyrightClearance
Center,Inc.,222RosewoodDrive,Danvers,MA01923,[phone],fax(978)646-
8600,oronthewebatwww.copyright.com.RequeststothePublisherforpermission
shouldbeaddressedtothePermissionsDepartment,JohnWiley&Sons,Inc.,111River
Street,Hoboken,NJ07030,[phone],fax[phone],oronlineat
www.wiley.com/go/permissions.
LimitofLiability/DisclaimerofWarranty:Whilethepublisherandauthorhaveusedtheir
besteffortsinpreparingthisbook,theymakenorepresentationsorwarrantieswithrespect
totheaccuracyorcompletenessofthecontentsofthisbookandspecificallydisclaimany
impliedwarrantiesofmerchantabilityorfitnessforaparticularpurpose.Nowarrantymay
becreatedorextendedbysalesrepresentativesorwrittensalesmaterials.Theadviceand
strategiescontainedhereinmaynotbesuitableforyoursituation.Youshouldconsultwith
aprofessionalwhereappropriate.Neitherthepublishernorauthorshallbeliableforany
lossofprofitoranyothercommercialdamages,includingbutnotlimitedtospecial,
incidental,consequential,orotherdamages.
Forgeneralinformationonourotherproductsandservicesorfortechnicalsupport,please
contactourCustomerCareDepartmentwithintheUnitedStatesat(800)762-2974,outside
theUnitedStatesat(317)572-3993orfax(317)572-4002.
Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappears
inprintmaynotbeavailableinelectronicbooks.FormoreinformationaboutWiley
products,visitourwebsiteatwww.wiley.com.
LibraryofCongressCataloging-in-PublicationData:
Dennis,Pascal,1957–
Theremedy:bringingleanthinkingoutofthefactorytotransformtheentire
organization/PascalDennis.
p.cm.
Includesindex.
ISBN978-0-470-55685-6(cloth)
1. Organizationaleffectiveness. 2. Totalqualitymanagement. I. Title.
HD58.9.D462010
0
658.4013—dc22
2010003435
PrintedintheUnitedStatesofAmerica
10 9 8 7 6 5 4 3 2 1
E1FFIRS 05/11/2010 Page5
InmemoryofKatherineGuselle(1935–2008),
artist,activist,mother,andgrandmother.
Wemissyou,Kathy.Hopeyou’reup
theregivingBobahardtime.
E1FFIRS 05/11/2010 Page6
E1FTOC 05/11/2010 Page7
Contents
Acknowledgments xi
AbouttheAuthor xiii
Preface xv
1 MotorCitySadness 1
OverviewofLeanfundamentals
HowLeanlooksdifferentinwhite-collarenvironments
vs.thefactory
Wasteinhealthcareandtherestaurantbusiness
2 LotusLand 19
Thenatureofbigcompanies
BigCompanyDisease
Obstaclestotransformingbigcompanies
RoleoftheShusa
vii
E1FTOC 05/11/2010 Page8
viii Contents
3 WhatHaveILearned? 37
Leanfundamentals
Leanthinking—corementalmodels
Wasteinbusinessprocesses
Introductiontoproblemsolving
Natureoftransformation
4 HowWillWeChangeTheirThinking? 67
Reflectionsonhowtodeepenandextendmentalmodels
Thenatureofvalueandwasteinknowledgework
Graspingthesituationbygoingtoseeforyourself
Basicsofsystemthinking
5 FocusandAlignment—WhenYou’reaJet,
You’reaJet 85
Fundamentalsofstrategydeployment
DefiningTrueNorth,ourstrategicandphilosophicalobjective
Howstrategymakingactuallyworksinorganizations
HowtheNewYorkJetsmightapplystrategydeployment
6 CluingintoChloe 103
Politicsinlargeorganizations
Creatingasharedvision
Strategydeploymentinaction
DeployingtargetsandtacticsthroughCatchball
7 ATriptoBostontoDispeltheFog 121
Roleoftheleader
TheWaterRingmodel
Howcomplexsystemsfail—andsucceed
TheFourRules—Standards,Connections,Pathways,Improvement
TheRemedytoBigCompanyDisease
8 Marketing—LeaningOuttheMadMen 137
Marketingbasics
Mentalmodelsinmarketing
Wasteandvalueinmarketing
Yamazume
Takt,flow,andpullinMarketing
Expected,Specified,andDelightfulValue
9 DesignandEngineering—MakingKnowledgeFlow 157
MentalmodelsinDesign
ValueandwasteinDesignandEngineering