Lean implementation : applications and hidden costs

197 Pages·2017·5.588 MB·English

by  Alston, Frances

Lean Implementation
Applications and Hidden Costs
Sustainable Improvements in
Environment Safety and Health
Series Editor
Frances Alston
ESH Director
Lawrence Livermore National Laboratory, CA
Lean Implementation: Applications and Hidden Costs, Frances Alston [2017]
The Legal Aspects of Industrial Hygiene and Safety, Kurt W. Dreger [2018]
Industrial Hygiene: Improving Worker Health through an Operational Risk
Approach, Willie Piispanen, Emily J. Millikin, and Frances Alston [2018]
Safety Culture and High-Risk Environments: A Leadership Perspective,
Cindy L. Caldwell [2018]
Sustainable Improvements in
Environment Safety and Health
Lean Implementation

Series Editor
Applications and Hidden Costs
Frances Alston
ESH Director
Lawrence Livermore National Laboratory, CA
Lean Implementation: Applications and Hidden Costs, Frances Alston [2017]
The Legal Aspects of Industrial Hygiene and Safety, Kurt W. Dreger [2018]
Industrial Hygiene: Improving Worker Health through an Operational Risk
Approach, Willie Piispanen, Emily J. Millikin, and Frances Alston [2018]
by
Safety Culture and High-Risk Environments: A Leadership Perspective,
Cindy L. Caldwell [2018] Frances Alston
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742
© 2017 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
Printed on acid-free paper
International Standard Book Number-13: 978-1-4987-7337-9 (Hardback)
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. The authors and publishers
have attempted to trace the copyright holders of all material reproduced in this publication and apologize to
copyright holders if permission to publish in this form has not been obtained. If any copyright material has
not been acknowledged please write and let us know so we may rectify in any future reprint.
Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmit-
ted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented,
including photocopying, microfilming, and recording, or in any information storage or retrieval system,
without written permission from the publishers.
For permission to photocopy or use material electronically from this work, please access www.copyright.
com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood
Drive, Danvers, MA 01923, 978-750-8400. 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.
Library of Congress Cataloging-in-Publication Data
Names: Alston, Frances (Industrial engineer), author.
Title: Lean implementation : applications and hidden costs / Frances Alston.
Description: Boca Raton, FL : CRC Press, 2017. | Series: Sustainable
improvements in environment safety and health
Identifiers: LCCN 2016048562 | ISBN 9781498773379 (hardback : alk. paper) |
ISBN 9781498773386 (ebook)
Subjects: LCSH: Organizational change--Management. | Organizational
effectiveness--Management. | Cost control. | Quality control.
Classification: LCC HD58.8 .A6778 2017 | DDC 658.4/06--dc23
LC record available at https://lccn.loc.gov/2016048562
Visit the Taylor & Francis Web site at
http://www.taylorandfrancis.com
and the CRC Press Web site at
http://www.crcpress.com
Contents
Preface ......................................................................................................................xi
CRC Press About the Author ................................................................................................xiii
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742 1. Lean Thinking ................................................................................................1
1.1 Introduction ...........................................................................................1
© 2017 by Taylor & Francis Group, LLC
CRC Press is an imprint of Taylor & Francis Group, an Informa business 1.2 Attributes of a Lean Organization......................................................2
1.2.1 Know Your Customer ............................................................3
No claim to original U.S. Government works
1.2.2 Respect for People ..................................................................4
Printed on acid-free paper 1.2.3 Management Make Decisions Focusing on the
Long-Term Value as Opposed to the Now .........................5
International Standard Book Number-13: 978-1-4987-7337-9 (Hardback)
1.2.4 Create a Culture That Will Allow Workers to Feel
This book contains information obtained from authentic and highly regarded sources. Reasonable efforts Empowered and Free to Bring Problems to
have been made to publish reliable data and information, but the author and publisher cannot assume
Management’s Attention As Soon As They Arise ............5
responsibility for the validity of all materials or the consequences of their use. The authors and publishers
have attempted to trace the copyright holders of all material reproduced in this publication and apologize to 1.2.5 A Continual Focus on Continuous Improvement .............5
copyright holders if permission to publish in this form has not been obtained. If any copyright material has 1.2.6 Maintain a Focus on Quality Continuously ......................6
not been acknowledged please write and let us know so we may rectify in any future reprint.
1.2.7 Avoid Overproduction (Use a Pull System) .......................6
Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmit- 1.2.8 Develop Leaders Who Are Inquisitive, Leaders
ted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, Who Walk the Talk on a Daily Basis, and
including photocopying, microfilming, and recording, or in any information storage or retrieval system,
Are Worker Friendly ..............................................................6
without written permission from the publishers.
1.2.9 Develop a Process That Can Monitor Performance
For permission to photocopy or use material electronically from this work, please access www.copyright.
As Well As Locate Improvement Areas..............................7
com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood
Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that provides licenses and 1.2.10 Develop a Culture That Embraces a Learning
registration for a variety of users. For organizations that have been granted a photocopy license by the CCC, Organization Philosophy ......................................................7
a separate system of payment has been arranged.
1.3 Why Go Lean? .......................................................................................8
Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used 1.4 Delivering Customer Value .................................................................8
only for identification and explanation without intent to infringe. 1.5 Defining the Waste Stream ..................................................................8
1.6 Actions That Create Flow...................................................................10
Library of Congress Cataloging-in-Publication Data
1.7 Produce What Is Used by the Customer and Avoid
Names: Alston, Frances (Industrial engineer), author. Overproduction ...................................................................................10
Title: Lean implementation : applications and hidden costs / Frances Alston. 1.8 Seek Perfection to Achieve Continuous Improvement ..................11
Description: Boca Raton, FL : CRC Press, 2017. | Series: Sustainable
1.9 Overview of Lean Tools .....................................................................11
improvements in environment safety and health
Identifiers: LCCN 2016048562 | ISBN 9781498773379 (hardback : alk. paper) | 1.9.1 Value Stream Mapping ........................................................12
ISBN 9781498773386 (ebook) 1.9.2 Six Sigma and Lean .............................................................12
Subjects: LCSH: Organizational change--Management. | Organizational
1.10 Staying Lean ........................................................................................16
effectiveness--Management. | Cost control. | Quality control.
Classification: LCC HD58.8 .A6778 2017 | DDC 658.4/06--dc23 1.11 Summary ..............................................................................................17
LC record available at https://lccn.loc.gov/2016048562
2. Lean Thinking Leadership Team ..............................................................19
Visit the Taylor & Francis Web site at
2.1 Introduction .........................................................................................19
http://www.taylorandfrancis.com
2.2 Leadership Responsibilities in Organizations ................................20
and the CRC Press Web site at
2.2.1 Vision Tenet ..........................................................................20
http://www.crcpress.com
v
vi Contents
2.2.2 People Tenet ..........................................................................21
2.2.3 Strategy Tenet .......................................................................21
2.2.4 Decision Tenet .......................................................................21
2.3 Followership and Leadership Roles .................................................22
2.4 Qualities of a Good Leader ................................................................23
2.4.1 A Good Leader Is Confident ...............................................24
2.4.2 A Good Leader Acts with Purpose ...................................24
2.4.3 A Good Leader Demonstrates Exemplary Character .....25
2.4.4 A Good Leader Is Enthusiastic ...........................................25
2.4.5 A Good Leader Is Focused .................................................25
2.4.6 A Good Leader Is Able to Build and Retain Good
Relationships .........................................................................25
2.4.7 A Good Leader Is Committed to Continuous
Improvement and Excellence .............................................26
2.5 Lean Thinking Behaviors ..................................................................26
2.6 Walking the Talk .................................................................................27
2.7 Leadership Styles ................................................................................27
2.8 The Influential Leader ........................................................................31
2.9 The Accountable Leader .....................................................................31
2.10 The Lean Thinking Leadership Team ..............................................32
2.11 Summary ..............................................................................................33
3. Lean Culture ..................................................................................................35
3.1 Introduction .........................................................................................35
3.2 What Is a Lean Culture? .....................................................................36
3.2.1 Practices .................................................................................37
3.2.2 Behavior .................................................................................37
3.2.3 Values .....................................................................................38
3.2.4 Symbols and Languages .....................................................38
3.2.5 Assumptions and Perceptions ...........................................38
3.2.6 Lean Thinking ......................................................................39
3.3 Subcultures ..........................................................................................39
3.4 Establishing a Culture of Change .....................................................40
3.5 Change Management .........................................................................40
3.6 Supervisor’s Role in Change Management .....................................41
3.7 Assessing Culture ...............................................................................41
3.8 Document Review ...............................................................................43
3.9 Conducting the Survey ......................................................................43
3.10 Focus Group and Individual Interviews .........................................44
3.11 Shaping Culture ..................................................................................46
3.11.1 Communication between Workers and Management .....47
3.11.2 Fostering Trust from Within...............................................48
3.11.3 Consistency in Actions and Reactions ..............................48
3.11.4 Human Resource Policies and Practices ...........................48
3.11.5 Management Time in the Work Area ................................49
Contents vii
3.11.6 Delegate Lower Level Decisions ........................................49
3.11.7 Employee Involvement ........................................................49
3.11.8 Leadership Charting the Way ............................................49
4. Employee Engagement in a Lean Culture ...............................................51
4.1 Introduction .........................................................................................51
4.2 Defining Employee Engagement ......................................................52
4.3 Emotional Connection in the Workplace .........................................53
4.4 Employee Engagement Impacts and Benefits .................................53
4.5 Improved Morale .................................................................................55
4.6 Employee Engagement and Increased Productivity ......................55
4.7 Team Cohesion ....................................................................................56
4.8 Innovation and Engaged Employees ................................................57
4.9 Higher Level of Trust Contributes to Engagement ........................57
4.10 The Actions of an Engaged Leader...................................................58
4.11 Communication Strategy ...................................................................59
4.12 Human Resource Policies and Practices ..........................................59
4.13 Evaluating Employee Engagement ...................................................60
4.13.1 Employee Engagement Surveys .........................................61
4.13.2 Focus Group Discussions: Employee Engagement .........61
4.14 Summary ..............................................................................................63
5. Succession Planning Strategy in a Lean Environment .........................65
5.1 Introduction .........................................................................................65
5.2 What Is Succession Planning? ...........................................................66
5.3 Developing a Succession Planning Strategy ...................................68
5.4 What Does a Good Succession Strategy Look Like? ......................69
5.4.1 Identify Key Positions..........................................................70
5.4.2 Identify Positions That Are Hard to Fill ...........................71
5.4.3 Identify Key Competencies .................................................72
5.4.4 Identify Candidates .............................................................73
5.4.5 Internal Candidate Communication .................................74
5.4.6 Conduct Skill Gap Analysis ................................................74
5.4.7 Define and Implement Training Plan................................75
5.5 Promoting from Within .....................................................................76
5.6 Knowledge Gathering and Retention ..............................................78
5.7 Continuing Education ........................................................................80
5.8 Succession Planning in a Lean Environment .................................80
5.9 Summary ..............................................................................................82
Reference .........................................................................................................82
6. Talent Management and Retention and the Hidden Costs ..................83
6.1 Introduction .........................................................................................83
6.2 What Is Talent Management? ............................................................84
6.3 Balancing Employee Needs with Organizational Demands ........84
viii Contents
6.4 The Value of a Flexible Workforce ....................................................85
6.5 Knowledge Retention and Transfer ..................................................86
6.6 Employee Retention Strategy ............................................................87
6.6.1 Employee Recognition...........................................................89
6.7 Talent Care ...........................................................................................90
6.8 Why Do Employees Leave Their Companies? ................................91
6.8.1 Relationship with the Supervisor ........................................92
6.8.2 Incompetent Leadership .......................................................92
6.8.3 Lack of Challenging and Meaningful Work ......................92
6.8.4 Lack of Career Growth and Advancement
Opportunities .........................................................................93
6.8.5 Comparable Pay Does Matter...............................................93
6.9 Why Do Employees Stay with Their Organization? ......................93
6.9.1 The Impact of Meaningful and Satisfying Work ..............94
6.9.2 Trust in the Leadership Team and Its Impact ....................95
6.9.3 Career Growth in a Learning Environment ......................95
6.9.4 Fair Pay and Benefits .............................................................96
6.9.5 Feeling of Value ......................................................................96
6.9.6 Supportive Management ......................................................96
6.10 Summary ..............................................................................................97
7. Employee Development and the Hidden Cost ........................................99
7.1 Introduction .........................................................................................99
7.2 Why Train? .........................................................................................100
7.3 The Role of the Leadership Team ...................................................102
7.4 Training Needs Analysis .................................................................102
7.5 Training Delivery Methods .............................................................105
7.5.1 Classroom Training .............................................................106
7.5.2 On-the-Job Training .............................................................106
7.5.3 Mentoring..............................................................................107
7.5.4 Job Rotation ...........................................................................108
7.5.5 Coaching ...............................................................................109
7.5.6 Shadowing ............................................................................110
7.6 Training Constraints in Lean Environments ................................110
7.7 Continuing Education ......................................................................111
7.8 Knowledge Management .................................................................112
7.9 Learning Culture...............................................................................113
7.10 Assessing the Effectiveness and Quality of a
Training Program ..............................................................................114
7.11 Summary ............................................................................................115
Contents ix
8. Environment Health and Safety in a Lean Environment ...................117
8.1 Introduction .......................................................................................117
8.2 Components of Corporate Environment Health and
Safety Program ..................................................................................117
8.2.1 Environmental Protection ..................................................118
8.2.2 Worker Safety and Health ..................................................118
8.2.3 Environmental Health and Safety Training ....................119
8.2.4 Health and Medical Services ..............................................119
8.2.5 Radiation Safety Program ..................................................119
8.3 Eliminating Waste through Compliance .......................................120
8.4 The Role of an Effective Environment Health and
Safety Program ..................................................................................120
8.5 Environment Health and Safety Programs Value Proposition ....122
8.6 The Reality of Workforce Perception .............................................122
8.7 The Real Cost of Accidents ..............................................................123
8.8 Applying Lean Principles and Application to
an EH&S Program .............................................................................124
8.9 The Synergy between Lean and Health and Safety Programs ....125
8.10 Lean Tools Usage ...............................................................................127
8.11 Summary ............................................................................................128
9. Implementation Pitfalls and Hidden Costs...........................................129
9.1 Introduction .......................................................................................129
9.2 What Are Pitfalls and Hidden Costs? ............................................130
9.3 A Project Management Approach to Lean ....................................130
9.4 Organizational Alignment ..............................................................131
9.5 Why Lean Fails? ................................................................................133
9.5.1 Performance Metrics ...........................................................134
9.5.2 Retention of Staff in a Lean Environment ........................135
9.6 Minimizing Risk through Lean ......................................................136
9.7 The Impact of Trust on Costs and the Pitfalls of Lean
Implementation .................................................................................138
9.8 The Impact of Culture ......................................................................139
9.8.1 The Role of Subcultures ......................................................140
9.9 Lean Procurement .............................................................................140
9.10 Hidden Costs Are Multifaceted ......................................................141
9.11 Capturing the Actual Cost of Lean ................................................142
9.12 Summary ............................................................................................143