Going Lean: How the Best Companies Apply Lean Manufacturing Principles to Shatter Uncertainty, Drive Innovation, and Maximize Profits PDF
Preview Going Lean: How the Best Companies Apply Lean Manufacturing Principles to Shatter Uncertainty, Drive Innovation, and Maximize Profits
Going Lean This page intentionally left blank Going Lean How the Best Companies Apply Lean Manufacturing Principles to Shatter Uncertainty, Drive Innovation, and Maximize Profi ts Stephen A. Ruffa American Management Association New York ■ Atlanta ■ Brussels ■ Chicago ■ Mexico City San Francisco ■ Shanghai w■ Tokyo ■ Toronto ■ Washington, D.C. Special discounts on bulk quantities of AMACOM books are available to corporations, professional associations, and other organizations. For details, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Tel: 212-9 03-8 316. Fax: 212-9 03-8 083. E-m ail: Tab l e o f Con ten t s Permissions vii Acknowledgments ix Introduction: Solving the Mystery of Success 1 PART I FROM CRISIS TO EXCELLENCE 9 1 Awash in Chaos! 11 2 Shat ering the Illusion of Stability 29 3 Creating a Roadmap for Change 46 4 A New System of Management 64 PART II THE FOUNDATIONAL ELEMENTS 79 5 Leading through Measurement 81 6 From Supply Chains to Value Streams 102 7 Leveling Process Variation 123 8 To Push or to Pull? 145 PART III IMPLEMENTING LEAN DYNAMICS 163 9 A Plan for Action 165 10 Structuring the Transformation 182 11 Making Lean Dynamics Succeed 196 12 Conquering the Crisis 205 Appendix: Constructing the Value Curve 213 Glossary 219 Notes 227 Index 257 About the Author 265 This page intentionally left blank Perm i s s ions GRATEFUL ACKNOWLEDGMENTS are made to the following for their permission to print quotations, data, or excerpts: Garrity Tool Company Southwest Airlines Hibbet Sports T e Washington Post John Wiley & Sons Ward’s Automotive Group Retailing Today vii This page intentionally left blank Acknow ledgments HE PREMISE OF THIS BOOK—that corporations everywhere can Tinnovate and sustain excellence in the midst of severe, dynamic cir- cumstances—might seem hard for some to accept. I, too, was startled when I f rst stumbled across this phenomenon—a measurable reality within a small but growing number of corporations. Great credit, there- fore, must go to the ingenuity and perseverance of those at the Toyota Motor Company, Wal-M art, and Southwest Airlines—f rms whose powerful examples made this book possible. Recognition must also go to Hibbet Sports, and the Garrity Tool Company—two f rms whose examples show the principles of lean dynamics in small, growing busi- nesses. Special thanks to Marilee McInnis at Southwest Airlines; Joy McCord, at Hibbet Sports; and Don Garrity, John Entwistle, and Ryan De Anda at Garrity Tool Company for the information and insights they provided into the workings of their companies. I must recognize those whose research, demonstrations, and writ- ings opened the doors to new ways of thinking about business manage- ment and set the stage for this project—from W. Edwards Deming, Peter Drucker, and Genichi Taguchi, to Michael Hammer, Peter Senge, Jack Welch, and many others. Particular credit goes to Alfred Sloan, the bril- liant business leader whose writings provided the background and data that supported my method for analyzing corporations’ dynamic value creation. I am thankful for the ef orts of those who introduced and dem- onstrated the concepts of lean manufacturing, Six Sigma, Reengineer- ing, system dynamics, and other management disciplines, along with the insights gained from those who applied these methods—both the ix
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