The Lean Book of Lean The Lean Book of Lean A Concise Guide to Lean Management for Life and Business John A. A. Earley This edition frst published 2016 © 2016 John Earley Registered offce John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom For details of our global editorial offces, for customer services and for information about how to apply for permission to reuse the copyright material in this book please visit our website at www.wiley.com. The right of the author to be identifed as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher. 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ISBN 978-1-119-09619-1 (pbk) ISBN 978-1-119-09620-7 (ebk) ISBN 978-1-119-09621-4 (ebk) ISBN 978-1-119-27170-3 (ebk) Cover Design: Kathy Davis/Wiley Cover Image: © singpentinkhappy/Shutterstock Set in 10/13.5pt SabonLTStd by Aptara Inc., New Delhi, India Printed in Great Britain by TJ International Ltd, Padstow, Cornwall, UK CONTENTS Acknowledgements xi Preface xiii 1 Introduction to Lean 1 The defnition of Lean 1 Lean – the natural order of living 3 The shopping trip 3 2 The Core Lean Principles 7 Be customer demand-driven 8 Maximise fow 11 Identify and eliminate waste 13 Declare war on variation 16 Organise your people around outcomes you want 19 Equip your people with the right skills 21 Clear and simple measures and controls 22 Defning your “Ideal State” 24 In conclusion 25 3 More About Flow 27 Know your limitations (aka constraints) 28 Take good care of your constraint 31 Feed meeeeeee!!! 31 Keeping going 33 v Contents The Whack-a-Mole game of constraints 34 The dish of the day is . . . 35 And our latest offering is . . . 35 Entropy 36 Continuous improvement 36 And the moral of all this . . . 38 Some everyday examples of fow – or the lack of it! 38 Traffc lights vs. roundabouts 39 The DIY enthusiast 41 The airport check-in 44 In conclusion 46 4 Lean Enterprise vs. Lean Manufacturing 47 Planning vs. execution 48 Priorities and decisions 54 Supplier relationships 56 What can we now provide? 57 Getting the best deal 58 Support functions 59 Finance 60 Engineering 61 HR 62 In conclusion 62 5 Organising for Lean 65 Turning tradition upside down 65 Getting ahead in a PCO 70 The football team 73 Theory vs. reality 74 The unfortunate but inevitable consequences 75 In conclusion 76 6 Measuring the Right Stuff and Metrics 79 What’s important? 81 Individual performance vs. team outcomes 85 vi Contents The balanced scorecard 88 Controls 89 Decision trees 92 In conclusion 98 7 Lean vs. Six Sigma 99 Basis for change 100 Incremental vs. transformational 101 What comes frst, Lean or Six Sigma? 103 In conclusion 104 8 The Lean Mindset 107 It’s not just about what you know 107 Lean critical mass 108 Lean leadership 111 Discipline 113 Leadership vs. management 113 Knowing the difference between accountability and responsibility 114 Consistency 114 Engagement 114 Asking the right questions 115 Process thinking 115 Transparency and visibility 116 Certifcation? 117 5S as a foundation for Lean 119 In conclusion 120 9 The Dreaded Business Case! 121 Business case, benefts case, case for action, best guess, what? 121 The fnancial justifcation 122 The kick in the backside 124 The motivational speech 125 Is it worth talking about? 125 Getting management bought in 125 vii Contents Some business case bear traps 126 The devil’s in the detail 127 Fit for purpose 128 Where are the big fsh hiding? 130 The cherry picker 130 In conclusion 131 10 Keys to Success and Sustainability 133 Top reasons for failure 133 How to avoid them 136 Buy-in at all levels 136 Get the fundamentals in place 140 Working on the right stuff 141 Life doesn’t stand still 144 In conclusion 145 11 A Few Key Tools 147 Diagnostic tools 147 5 Whys 148 Value stream mapping 148 Root cause analysis 154 Voice of the Customer 158 Implementation tools 160 Standardisation 160 “IS–IS NOT” thinking 166 Good day vs. bad day 168 Kaizen Events 170 If you don’t have rhythm, you can’t dance! 175 How it works 176 In conclusion 181 12 A Few Words On Technology 183 What’s good, what’s not 184 Closing the gaps 185 In conclusion 190 viii