Art Smalley: Evaluating Executive Performance By Art Smalley, author of Creating Level Pull. Co-author of A3 Thinking and Kaizen Methods: Six Steps to Improvement - Last updated: Tuesday, January 24, 2012

 Let’s consider answering this question in reverse for some contrast in terms of discussion. In other words what is the wrong way to evaluate executive performance? For starters as has been mentioned I don’t think you can just focus on results especially financial ones although of course they are very important. Many factors outside of direct executive control affect financial performance. Often a rising tide lifts all boats and simply ...

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Dan Jones: Assess along purpose (results), process (means), people (learning) framework of a lean management system By Daniel T Jones, Co-author of 'Lean Thinking' and 'The Machine That Changed the World' - Last updated: Sunday, January 22, 2012

Lean adds new perspectives to the traditional ways of assessing executive performance, namely Results and People skills, and adds a third process or value stream dimension. These mirror the purpose (results), process (means), people (learning) framework of a lean management system. The lean logic behind this is that you need knowledgeable people running tightly integrated end-to-end value streams and projects to deliver results that will be sustained. In other words, ...

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Michael Ballé: Evaluate efforts to improve performance indicators and develop self-competencies By Michael Balle, co-author of The Gold Mine and The Lean Manager - Last updated: Saturday, December 17, 2011

What an interesting question! And difficult to answer, as every organization has its own traditions and practices on the topic. If we’re talking evaluation and not incentive, the one thing I’ve learned the hard way in lean transformations is that you can’t simply focus on results because you’ll tend to give the hardest projects to some of your best guys. If a hospital evaluates its obstetricians on complications at childbirth, ...

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Jeff Liker: What are they trying to achieve, what is the process to get there, what concrete actions are they taking By Jeff Liker, author of The Toyota Way and co-author of Toyota Product Development System and Toyota Under Fire - Last updated: Saturday, December 17, 2011

The obvious answer is that it depends.  Any of us who have had Japanese sensei had heard that a lot.  So what does it depend on.  First, it depends one the strategic business purpose of the organization--external.  Second, it depends on the organization's goals for people and culture development-internal.  Third, it depends on the current maturity of the organization to meet the business objectives.  In other words I would want ...

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Eric Buehrens: What is the right lean way to evaluate executive performance? By Eric Buehrens, Chief Operating Officer, Harvard Medical School, Beth Israel Deaconess Medical Center, Boston, USA - Last updated: Friday, December 16, 2011

Dan Jones: How can lean survive By Daniel T Jones, Co-author of 'Lean Thinking' and 'The Machine That Changed the World' - Last updated: Tuesday, November 29, 2011

The best chance for lean to survive a change in top management is if it is seen to be delivering significant results, not just point improvements in key processes but bottom-line results for the organisation as a whole, which would be reversed if support for lean disappeared. Top management may be instrumental in leading the lean actions that deliver these results, but they are often led by managers lower down the ...

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Michael Ballé: Lean is a CEO practice to improve performance By Michael Balle, co-author of The Gold Mine and The Lean Manager - Last updated: Wednesday, November 23, 2011

The first thing his sensei told my father when they started working together was that the great weakness of TPS was that it rested entirely on the plant managers. Years later, this statement turns out to be confirmed, time and time again. If there’s one thing we’ve learned is that lean is a practice – and well, a practice. I’ve been discussing this issue with other CEOs and one different way ...

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Pascal Dennis: How do we continue to learn after current leaders move on? By Pascal Dennis, Author of Getting The Right Things Done, Lean Production Simplified, and Andy & Me - Last updated: Thursday, November 10, 2011

Good insights from Steve, Mike et al -- thanks. Here are my thoughts, for posting. How Does Lean Survive a Change in Top Management? Succession planning is indeed the key, but perhaps not in the conventional sense. As Mike suggest Lean thinking entails meta-cognition. Meta-cognition entails 'knowing about knowing' and answering questions like: How do I learn? What do I know? What do I know well? What do I not know very well? Great leaders tend to know themselves thereby, and ...

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Preparing for the inevitable change in leadership By Jamie Flinchbaugh, Co-Author of The Hitchhiker's Guide To Lean and co-founder of the Lean Learning Center - Last updated: Sunday, November 6, 2011

Until someone finds the Fountain of Youth, leadership changes in organizations are inevitable. Large corporations and small family-owned businesses all have to deal with it. But sometimes they appear to occur at the wrong time. Just as your lean journey appears to have some momentum, all of a sudden the leadership changes. The leadership change might be at a plant level, an executive level, or the CEO themselves. In any ...

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Jeff Liker: Developing the next generation of leaders By Jeff Liker, author of The Toyota Way and co-author of Toyota Product Development System and Toyota Under Fire - Last updated: Wednesday, November 2, 2011

As Steve pointed out succession planning is the key, except that succession planning means different things in different organizational contexts.  Many large companies pride themselves on succession planning and have elaborate IT systems and human resources has developed formal career paths.  In a lean organization, if Toyota is any guide, these types of systems are only superficial for screening.  One of the problems with trying to transform a traditional organization ...

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Steve Spear: How do you select the next CEO for continuity in excellence? By Steven Spear, Author of 'The High-Velocity Edge' and 'Chasing the Rabbit' - Last updated: Wednesday, November 2, 2011

The inability to maintain continuity with a firm's efforts around continuous improvement, operational excellence, and broad based product and process innovation has to be tied, in part at least, to poor succession planning and process. Be it the CEO or board, there must be some criteria of critical skills and capabilities that leadership candidates must posses to be deemed likely at success.  One couldn't imagine a contender who either lacked some ...

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Pierre Vareille: How can lean survive a change in top management? By Pierre Vareille, Chairman and CEO of FCI - Last updated: Wednesday, November 2, 2011

Art Smalley: Toyota’s True North Concept By Art Smalley, author of Creating Level Pull. Co-author of A3 Thinking and Kaizen Methods: Six Steps to Improvement - Last updated: Tuesday, November 1, 2011

There are several points raised in this month's question about the concept of True North in Lean Thinking. First what is its role, second how can we define the concept, third in what way does it contribute to lean results, and fourth can lean be done without True North? I'll give my perspective on these topics one by one in the paragraphs below. True North is one of the common buzzwords ...

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Michael Ballé: True North is key because building capability feels like failure on the spot By Michael Balle, co-author of The Gold Mine and The Lean Manager - Last updated: Monday, October 31, 2011

“You’re the problem” told the Toyota coordinator to the shop manager when the latter complained about the level of the operators he had to work with. It took the manager a full year to understand what the sensei meant, and come back with “okay, I’m the problem – not the operators. What should I do?” His sensei then got him to start a training dojo. It took that manager a year ...

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Mike Rother: A Vision is Necessary, but Not Enough By Mike Rother, Author of Toyota Kata and co-author of Learning to See - Last updated: Sunday, October 9, 2011

Question: What would you say is the role of True North in Lean Thinking? For my answer, please click on the compass. (if you cannot see the compass, please paste the following URL into your internet browser: http://www-personal.umich.edu/~mrother/Handbook/1-Direction.pdf )

True North: Find the gap to the ideal state to stretch yourself By Jeff Liker, author of The Toyota Way and co-author of Toyota Product Development System and Toyota Under Fire - Last updated: Sunday, October 9, 2011

"True North" is used quite a bit around Toyota, though the hard-core TPS folks do not like it preferring "ideal state."  Either concept has a similar meaning which is that you should understand the gap between the ideal and the actual so you can see how far you need to go.  Toyota Business Practices, which replaced practical problem solving, has an explicit step to define the ideal state.  Then the ...

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Pascal Dennis: Success is the ennemy of future success By Pascal Dennis, Author of Getting The Right Things Done, Lean Production Simplified, and Andy & Me - Last updated: Friday, September 23, 2011

Building on Steven's thoughts, True North entails developing a clear picture of a) Ideal condition, and b) Target condition. As Steven suggests, at the process level, this means answering questions like: "Is the process behaving as expected?" Corollaries: Do I understand my process?  Is our hypothesis sound?  If not, how do we adjust it? "Is there creative tension in our management process? Corollaries: Are problems visible?  Are we challenging ourselves or simply resting on our oars? True North works much the same ...

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Steve Spear: The True North “Ideal”: A source of tension for continuous improvement By Steven Spear, Author of 'The High-Velocity Edge' and 'Chasing the Rabbit' - Last updated: Wednesday, September 21, 2011

In Toyota thinking, there are at least two indicators that a problem is occurring that needs to be resolved. -- The first is a sign that the process is not in control and that the process is understood imperfectly. -- The second, the 'True North Ideal,' as we called it in "Decoding the DNA of the Toyota Production System," is a source of relentless tension for improvement and innovation--even when the system ...

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The Lean Edge: What is True North? By The Lean Edge, - Last updated: Wednesday, September 21, 2011

Dan Jones: Lean and Operational Excellence By Daniel T Jones, Co-author of 'Lean Thinking' and 'The Machine That Changed the World' - Last updated: Tuesday, September 13, 2011

It is a mistake to think of lean as just one of the many tools in the Operational Excellence portfolio. Operational Excellence is really a catch all label for many different "best practices". Lean on the other hand is a very specific set of interlocking practices, tools and behaviours derived from a very clear reference model. Lean grew out of years of practice and experimentation at Toyota and at companies ...

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Jeff Liker: Lean provides the “hows” to the pursuit of perfection By Jeff Liker, author of The Toyota Way and co-author of Toyota Product Development System and Toyota Under Fire - Last updated: Sunday, September 11, 2011

In our recent book, The Toyota Way to Continuous Improvement, we start the book by talking about the pursuit of excellence.  We came to the realization that talking about "leaning out processes" gives a mistaken image.  It is a mechanistic view of the world that gives the impression that lean is like going through a field with a weed whacker and cutting down the weeds.  Actually that is a good ...

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Michael Ballé: Lean is unique, lean is different By Michael Balle, co-author of The Gold Mine and The Lean Manager - Last updated: Thursday, July 21, 2011

This is the all or nothing question, so I’ll go all in! Lean is unique, lean is different. I have to confess I published four business books before specializing in lean. None of them very good, I fear. In youthful folly I believed in the value of reading the business books literature, cherry picking the best insights and trying to put it all together again, trusting that the assemblage would ...

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Mike Rother: Lean Can Be a Great Integrator By Mike Rother, Author of Toyota Kata and co-author of Learning to See - Last updated: Thursday, July 21, 2011

Question: Did the writers of books about Excellence and what makes great organizations get it right to begin with and does lean add anything new? Recently, as I was watching an improvement team working at a 3-person U-shaped assembly cell at an automotive supplier, I was reminded of the importance of lean-specific knowledge. The improvement team’s task was to distribute the assembly work among the three operators in the cell, i.e., to determine ...

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Pascal Dennis: Excellence books hit the spot but miss the gemba By Pascal Dennis, Author of Getting The Right Things Done, Lean Production Simplified, and Andy & Me - Last updated: Monday, July 11, 2011

In my view, the "Excellence" authors basically got it right.  (I continue to refer to them.) But the "Excellence" books are (necessarily) academic. The Lean movement has brought these ideas into the messy world of practice -- a great and continuing contribution. Imagine a messy changeover kaizen in an Indiana stamping plant.  The team stands glaring at you with their arms crossed. Can we cut changeover time in half?  Can we teach these jokers how to sustain & ...

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Mark Graban:”What has been will be again, what has been done will be done again; there is nothing new under the sun.” Ecclesiastes 1:9 By Mark Graban, Author of the 'Lean Hospitals: Improving Quality, Patient Safety, and Employee Satisfaction,' winner of the Shingo Prize in 2009. Creator of leanblog.org, and Senior Fellow at the Lean Enterprise Institute. On twitter as @leanblog. - Last updated: Friday, July 8, 2011

I sometimes hear people say that lean concepts and philosophies are just a restatement of Dr. Deming's teachings or it's all copied from Henry Ford or it has been lifted from Benjamin Franklin. But it could be argued that each new "restatement" leads to incrementally improved definitions and understandings of core principles from the past. One hospital laboratory director I worked with had been studying Peter Senge's "The Fifth Discipline" ...

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The Lean Edge: Did the writers of books about excellence and what makes great organizations get it right to begin with and does lean add anything new? By The Lean Edge, - Last updated: Friday, July 8, 2011

Jeff Liker: Dispel the myth of “lean will not work here” By Jeff Liker, author of The Toyota Way and co-author of Toyota Product Development System and Toyota Under Fire - Last updated: Friday, July 8, 2011

In our newest book,  The Toyota Way to Continuous Improvement, the bulk are seven case studies of organizations very different from auto--health care, iron ore mining, heavy machinery, nuclear submarine overhaul and repair,  product development, nuclear fuel, and more.  Each tells the story from the sensei perspective of the process they went through to help the organization understand lean and develop the skills to make significant improvement.  Success ranged from ...

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Dave Brunt: What are the most difficult industries and activities to introduce lean to and why? In your experience, where have you found lean most difficult to introduce? What specific barriers have you come across? How have you overcome them? By Dave Brunt, Co-author of "Creating Lean Dealers" - Last updated: Wednesday, July 6, 2011

There is no doubt that there are many challenges that we face when we introduce lean - in fact we can come up with lots of examples in all the Ms - Man/Woman, Method, Machines, Materials, Measurements etc. However the lean community can cite examples that span economic sectors and different countries - varying from exemplar organisations outperforming their industry through to good isolated examples in business units. Given that ...

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Jamie Flinchbaugh: “Lean won’t work in MY field” By Jamie Flinchbaugh, Co-Author of The Hitchhiker's Guide To Lean and co-founder of the Lean Learning Center - Last updated: Monday, June 27, 2011

What is the hardest field to apply lean? It doesn't seem to matter what field you're in, they all think theirs is the hardest. And they can back it up with evidence. One of the most frequent questions I get is "who else in my industry is doing lean?", because no one wants to be first, and no one wants to be last. There is a wide range of answers to ...

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Dan Jones: Who struggles more with lean By Daniel T Jones, Co-author of 'Lean Thinking' and 'The Machine That Changed the World' - Last updated: Saturday, June 25, 2011

I remember two distinguished CEOs from the auto industry telling me that it was impossible to get their sales and marketing people to go lean. Although my colleague Dave Brunt and I have never given up this quest they have a point. In our experience the hardest people to convince are those whose natural temperament is doing deals, the traders and negotiators who are always looking forward to the next ...

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Pascal Dennis: Engaging the public sector in improvement is vital to the national interest By Pascal Dennis, Author of Getting The Right Things Done, Lean Production Simplified, and Andy & Me - Last updated: Tuesday, June 21, 2011

Like Art, I've found government to be the most challenging environment for Lean thinking. Root cause: the customer usually has no alternative provider & therefore can be ignored -- (sadly, but more or less safely). In my experience, government workers span the gamut of capability & engagement. Some are terrific & would excel in any environment. Others simply don't care.  The attitude of the latter seems to be, "Where you gonna go...?" But engaging the public sector in improvement ...

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Michael Ballé: The boardroom is hard to convince, because it needs learning both lean and finance By Michael Balle, co-author of The Gold Mine and The Lean Manager - Last updated: Tuesday, June 21, 2011

At the latest lean conference in Paris one of the presenters was the producer of French TV’s most successful sitcom. We learned that what makes a sitcom work is the consistency of the characters. Since many authors work on sequential episodes, if there are many episodes between the one you’re currently writing and the last one showing, chances are character affecting events will have happened in the episodes still on ...

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Mike Rother: Whoever Experiments Fastest, Wins By Mike Rother, Author of Toyota Kata and co-author of Learning to See - Last updated: Sunday, June 19, 2011

Question: What are the most difficult industries and activities to introduce lean to and why? Here’s a thought: The more similar a company’s business is to Toyota’s, the more it can try to copy and implement Toyota’s visible tools rather than practicing and developing the PDCA skill that is essential to Lean. PDCA = the scientific method. Scientists know we often advance to new solutions and levels of performance through disproof. ...

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Art Smalley: Lean Government By Art Smalley, author of Creating Level Pull. Co-author of A3 Thinking and Kaizen Methods: Six Steps to Improvement - Last updated: Friday, June 17, 2011

In response to this month's question the phrase “Lean Government” is something I think we will start to hear more of over the next few years and many no doubt will chuckle at the term as oxymoronic in nature. With deficits are large as they are in the United States and other countries budgetary cutbacks are inevitable. When forced into doing the same amount of work (or more) with fewer ...

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Steve Spear: Healthcare is least likely to benefit from lean or any other operational excellence approach because healthcare professionals are not trained to think systematically about systems By Steven Spear, Author of 'The High-Velocity Edge' and 'Chasing the Rabbit' - Last updated: Friday, June 17, 2011

Healthcare is the sector least likely to achieve process excellence with any meaningful breadth or speed because of three key impediments, one internal to healthcare,  one about the environment in which healthcare organizations operate, and one about the way in which ideas about process excellence are presented. Internal Problem: Training in Functions without Systems Thinking The internal problem is that healthcare professionals are trained, promoted, and evaluated in narrowly defined functional specialties--specialties ...

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The Lean Edge: What are the most difficult industries and activities to introduce lean to and why? By The Lean Edge, - Last updated: Friday, June 17, 2011

Dan Jones: How to Judge the Success of Lean? By Daniel T Jones, Co-author of 'Lean Thinking' and 'The Machine That Changed the World' - Last updated: Friday, June 17, 2011

Lean is a journey and to my mind the best way of judging success is by how much people have learnt so far and how ready they are to take the next leg of the journey. I often meet people who tell me that “Lean has changed their lives”. While this certainly makes writing books worthwhile it also presents an opportunity to ask some probing questions. Can they show me how ...

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Art Smalley: Lean Success By Art Smalley, author of Creating Level Pull. Co-author of A3 Thinking and Kaizen Methods: Six Steps to Improvement - Last updated: Tuesday, May 31, 2011

We have discussed the topic of why so few companies really show substantial progress when it comes to lean implementation quite a few times on this web site. I won't rehash all those topics in detail since they are available for those interested in a variety of different posts by different authors. For the last decade or more I have been lamenting about this topic in speeches, articles, interviews, and ...

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Michael Ballé: Lean is an attitude By Michael Balle, co-author of The Gold Mine and The Lean Manager - Last updated: Sunday, May 29, 2011

I’ve now lived through several heartbreaking cases where the chief executive of a lean company or division leaves (retires, company gets purchased, etc.) and all lean gains are lost in six to twelve months, sometimes faster. The company reverts more or less where it was before the lean transformation took off, sometimes worth. If this serves to show something, is that lean is a management method. Compared to that there are ...

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Jamie Flinchbaugh: How would you measure lean success? By Jamie Flinchbaugh, Co-Author of The Hitchhiker's Guide To Lean and co-founder of the Lean Learning Center - Last updated: Sunday, May 29, 2011

The question asked was "what counts as 'lean success'?" Albert Einstein once said: Not everything that counts can be counted, and not everything that can be counted counts. I see most people making mistakes when trying to evaluate success. They try to measure lean success as if it is a program. What's the easiest way to measure a program? Activity! Yet we should not confuse activity with productivity. Lean programs are measured by ...

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Mike Rother: How to Measure Lean Success By Mike Rother, Author of Toyota Kata and co-author of Learning to See - Last updated: Saturday, May 28, 2011

Question: How would you define lean success? Manufacturers have made many improvements in quality and productivity. There’s no question that our factories are better than they were 20 years ago, and that significant progress toward world-class manufacturing status has been made. But the world doesn’t stand still. A question for me is how organizations can keep improving and adapting - systematically - along unpredictable paths, as a part of what ...

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Jean Cunningham: Learn lean and have fun! By Jean Cunningham, Co-author of 'Real Numbers' and 'Easier, Simpler, Faster' - Last updated: Friday, May 27, 2011

Any change takes thought leaders and when others see great results they will follow.   Unfortunately we often do not know what to look for in terms of results, or we are too far from the action to see results other than in a report out or meeting notes. Another risk is having the initial launching efforts so diffused that there is activity all over, but no real point of focus to demonstrate success. The third risk is ...

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Jeff Liker: there is no end point to lean success, only transformation leading to increased performance By Jeff Liker, author of The Toyota Way and co-author of Toyota Product Development System and Toyota Under Fire - Last updated: Friday, May 27, 2011

Great question!  We thought we might sneak in over the fence unnoticed with that one.  The reality is an Industry Week survey like that one, that purportedly measures achievement of results, is purely subjective and depends highly on what the "anticipated results" are as the question suggests.  It tells us little about the actual success of the lean programs.  We were using it as it was one easy to understand ...

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The Lean Edge: what counts as “lean success”? By The Lean Edge, - Last updated: Friday, May 27, 2011

Dan Jones: Lean problem solving and teamwork By Daniel T Jones, Co-author of 'Lean Thinking' and 'The Machine That Changed the World' - Last updated: Friday, May 27, 2011

There is more to problem solving and teamwork in a lean organisation. This was brought home last week during another Gemba walk through a plant making fast moving consumer goods. As we snaked our way past a maze of hoppers, ovens, pipes and packaging lines it became clear than nothing was visible at all, to me or to the managers accompanying me. I kept asking what was today's plan, were ...

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Michael Ballé: Individual responsibility to solve problems with colleagues from other fucntions By Michael Balle, co-author of The Gold Mine and The Lean Manager - Last updated: Friday, May 13, 2011

As I understand it, teamwork has a specific meaning within TPS: it’s about individual development through solving problems with others across functions. So, on the one hand, individual responsibility remains (one problem is owned by one person), but on the other this person cannot solve the problem alone but must collaborate with colleagues, and more specifically, colleagues from other functions. Interestingly, this definition doesn’t refer to “team building” – there is ...

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Jim Huntzinger: Be Like Coach – What underlies the Team By Jim Huntzinger, Author of 'Lean Cost Management: Accounting for Lean by Establishing Flow' - Last updated: Friday, May 13, 2011

I believe Pascal really hits the point well.  I also love his Coach Wooden reference so I will reference Coach as well.  The underlying principle and practice is the focus on developing the individual as a precursor to developing the team.  You cannot have a strong team without strong (well –developed) individuals – or, at least, cannot sustain any reasonable level of teamwork without well-developed members.  This was the objective ...

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Pascal Dennis: Team members have clearly defined & interconnected roles, which in turn, depends on shared purpose By Pascal Dennis, Author of Getting The Right Things Done, Lean Production Simplified, and Andy & Me - Last updated: Tuesday, May 10, 2011

What is teamwork? In my view, a team is an organized group of people with a clearly defined goal. "Organized" means team members have clearly defined & interconnected roles -- which in turn, depends on shared purpose. In the absence of latter, our discourse inevitably devolves into random opinions, factoids and, often, recrimination. "If only those bozos in... would do their jobs!" Shared purpose shifts our thinking to: "Just how are we going to achieve that objective?" (Or "target condition" ...

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Mike Rother: What is Lean Teamwork? By Mike Rother, Author of Toyota Kata and co-author of Learning to See - Last updated: Tuesday, May 10, 2011

Question:  Lean focuses on individual problem solving, yet stresses the importance of teamwork. What would be your definition of teamwork in the lean sense? (Who says Lean focuses on “individual problem solving”?! I’ve never seen an individual solve a problem solely by him- or herself. Think about it.) You can say a team is a group of people working on a shared objective. In regard to teamwork in the lean sense, I ...

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Jeff Liker: Teamwork is not “work teams” By Jeff Liker, author of The Toyota Way and co-author of Toyota Product Development System and Toyota Under Fire - Last updated: Tuesday, May 10, 2011

I had in interesting experience about fifteen years ago when we were doing research for a book about Japanese manufacturing in the U.S. (called Remade in America).  We were studying a Japanese auto supplier with overseas plants in the U.S.   One question we had was how the Japanese would bring teamwork to the American culture.  At the time there was a lot of discussion about the use of work groups ...

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The Lean Edge: What does “teamwork” mean in lean? By The Lean Edge, - Last updated: Tuesday, May 10, 2011

Mike Rother: Ain’t No Such Thing as Sustaining By Mike Rother, Author of Toyota Kata and co-author of Learning to See - Last updated: Friday, April 29, 2011

Question: How can lean results be sustained over time? It's been difficult to maintain lean improvements. Our efforts have generated many successes, but not so many sustainable ones. We tend to involve dedicated lean experts, who become a constraint. When they turn their attention to the next improvement project, the one just completed degrades. Overall improvement progress is slow and the cultural change to continuous improvement is minimal. We should get ...

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Art Smalley: Tools, Rules, Principles, and Lean Wallpaper By Art Smalley, author of Creating Level Pull. Co-author of A3 Thinking and Kaizen Methods: Six Steps to Improvement - Last updated: Tuesday, April 19, 2011

I have had a long and somewhat tortured fascination with regards to this topic and other similar questions. In terms of background when I returned to the United States from Japan in the mid 1990's after working for Toyota Motor Corporation it was difficult for me at least to recognize many of the efforts that were supposedly modeled after the Toyota Production System (TPS).  Some of it was frankly bewildering. ...

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Mike Orzen: 3 signs of sustainability By Mike Orzen, Coauthor of "Lean IT, Enabling and Sustaining Your Lean Enterprise” Educator and Coach, The Lean IT Guy - Last updated: Sunday, April 17, 2011

Absolutely! All the examples of companies who have sustained lean thinking (and operational results) have common elements: 1) Principle -based leadership that acts as a rudder to create a constancy of purpose and alignment throughout the organization (note this is not based on a specific person); 2) Management systems that drive the right behavior; and 3) a culture of continuous problem solving, accountability, and shared responsibility. Who else besides Toyota is ...

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Michael Ballé: Lean is never sustainable, but one person can become better and better at it By Michael Balle, co-author of The Gold Mine and The Lean Manager - Last updated: Friday, April 15, 2011

Where do lean results come from ? increased Sales are supported by a firm understanding of PROTECT THE CUSTOMER within the company. Delivering products without defects on time has a remarkably rapid effect on sales. Sales are further developed by improving the engineering of the product or service in order to better satisfy customers, but the first step is to teach the organization to protect the final customer by protecting each ...

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Jean Cunningham: Sustaining Lean By Jean Cunningham, Co-author of 'Real Numbers' and 'Easier, Simpler, Faster' - Last updated: Monday, April 4, 2011

As CFO, one method I used to sustain lean thinking was to ask "what has improved since our last meeting" during each of our monthly metric meetings.   Each person on the team was empowered to make change within their jobs or with others.  And we had a cadence....for instance we had an arbitrary Takt of 1 per week.  So as well as discussing what had changed, one team member who was our "counter" would share ...

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Steve Spear: Why Lean Fails: Operational Excellence Treated as Tool Based Vocation, Not Principle Based Profession By Steven Spear, Author of 'The High-Velocity Edge' and 'Chasing the Rabbit' - Last updated: Sunday, April 3, 2011

Lean efforts are aplenty.  Rare are successful ones—characterized by sufficient improvement in the ability to create great value by delighting customers with best in class products and services, offered reliably and responsively to change, done affordably and profitably.   Nearly unheard of are sustainable successes—characterized by success over years and waves of market change and leadership succession. Why? The few world-class organizations that compete well on ‘operational excellence,’ reflected in quality, variety, time ...

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Jeff Liker: Resist your machine thinking! By Jeff Liker, author of The Toyota Way and co-author of Toyota Product Development System and Toyota Under Fire - Last updated: Saturday, April 2, 2011

One of the most common questions we are asked is how to sustain the gains once we have improved the process. A lot of work went into getting the process right in that carefully planned kaizen workshop, and it is certainly wasteful to see it slip back to where it was before the change. Unfortunately, the most common outcome of process improvements is slipping backward. Why does this occur? The problem is actually a fundamental misunderstanding ...

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The Lean Edge: Can the performance achieved by applying lean thinking be sustained over years? By The Lean Edge, - Last updated: Saturday, April 2, 2011

Dan Jones: Lean Saves Capital By Daniel T Jones, Co-author of 'Lean Thinking' and 'The Machine That Changed the World' - Last updated: Saturday, April 2, 2011

Lean is undoubtedly about doing more with less, including less capital. Saving capital may be one of the early consequences of lean but a full realisation of the potential for designing capital saving equipment and systems only comes much later along the lean journey. Quite rightly early lean efforts are initially focused on improving customer satisfaction by performing every action right first time on time. This in turn allows many ...

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Art Smalley: Toyota and Capital Investment By Art Smalley, author of Creating Level Pull. Co-author of A3 Thinking and Kaizen Methods: Six Steps to Improvement - Last updated: Sunday, March 20, 2011

In the previous post I responded to a question about capital investment and the Ohira plant of Central Motors (a Toyota affiliated company producing the Yaris) that is gaining some attention in the press. There are few specifics known about the facility.  Only snippets of news are leaking out in the press or from site visits. I made a few observations about the reports on the facility but instead of ...

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Art Smalley: Ohira Plant and Investment By Art Smalley, author of Creating Level Pull. Co-author of A3 Thinking and Kaizen Methods: Six Steps to Improvement - Last updated: Saturday, March 19, 2011

There are several parts to this question and I will probably break up my thoughts into two different posts on the topic of capital investment. The question asked pertains to a new plant in Ohira Japan located north of Sendai that is associated with Toyota Motor Corporation. This plant in actuality is owned by a Toyota affiliated company known as Central Jidosha in Japanese or Central Motors in English. Toyota ...

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Michael Ballé: Cap Ex is the key to understanding the life journey of a site – learning to think differently about investment is a make-or-break aim of lean By Michael Balle, co-author of The Gold Mine and The Lean Manager - Last updated: Saturday, March 19, 2011

In the end, it’s all about Cap Ex. I’ve found that the best way to understand the past and future of a site is to find out what is the investment cycle on its main piece(s) of equipment. Auto industry, for instance, works around programs which last from two to four years, according to whether the car sells or not. In other industries, you can work the same machines until ...

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Capital is a resource of last resort By Jamie Flinchbaugh, Co-Author of The Hitchhiker's Guide To Lean and co-founder of the Lean Learning Center - Last updated: Tuesday, March 15, 2011

The question asked was “what is the lean approach to capital?” In some ways, this is the wrong question. The reason is that the lean organization and the lean thinker is not looking to put capital to work. Capital is just a solution to a problem. Capital is not just another budget line item that must be consumed and deployed. It starts with the ideal state. When a team has a ...

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Jeff Liker: The lean philosophy for new technologies is simple, thin and flexible By Jeff Liker, author of The Toyota Way and co-author of Toyota Product Development System and Toyota Under Fire - Last updated: Saturday, March 12, 2011

Toyota thinks long-term about capital expenditures.  Not every expenditure has to have a specific payback and some may be pilots that are expected to have a long-term payoff.  For example, there were a lot of expenditures in the case of the first Prius for battery technology in a joint venture and for integrated circuits that did not have an immediate payback, but were investments in a core competence for the ...

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Mark Graban: The lean approach to capital expenditure, inspired by Toyota’s philosophy and practices, is also thankfully being applied in healthcare By Mark Graban, Author of the 'Lean Hospitals: Improving Quality, Patient Safety, and Employee Satisfaction,' winner of the Shingo Prize in 2009. Creator of leanblog.org, and Senior Fellow at the Lean Enterprise Institute. On twitter as @leanblog. - Last updated: Friday, March 11, 2011

The traditional approach to increasing capacity (beds and equipment) in healthcare is "more, more, more." More space, more money, more people. This is one reason for our rapidly increasing healthcare costs. Hospitals don't always do a good job of maximizing the use of existing resources - they often just build more space instead of improving flow, reducing variation, and reducing hospital length of stay. I remember meeting a Chief Medical Officer ...

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The Lean Edge: What is the lean approach to capital expenditure? By The Lean Edge, - Last updated: Friday, March 11, 2011

Dan Jones: Toyota’s Challenge for the Lean Movement By Daniel T Jones, Co-author of 'Lean Thinking' and 'The Machine That Changed the World' - Last updated: Monday, March 7, 2011

The main lesson from the Toyota affair is that the lean movement will now have to live on it's wits and not on the coat tails of Toyota. It will grow and prosper if it deconstructs the many lessons learnt from Toyota and turns them into actionable practices, frames of reference, learning pathways etc to enable other organisations to build their own functional equivalents and achieve demonstrably superior performance. Simply ...

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Michael Ballé: the Toyota Way has worked as it’s supposed to, helping the company to face its challenges By Michael Balle, co-author of The Gold Mine and The Lean Manager - Last updated: Sunday, February 27, 2011

I had the great fortune and privilege of knowing and corresponding with Robert King Merton before he passed away, one of the great thinkers of American sociology, and he often steered me to look at how people defined any given situation. His general point was that the way people frame reality has real effects. Although no Toyota car has ever been found accelerating on its own, when the US transportation ...

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Art Smalley: Always Room for Improvement By Art Smalley, author of Creating Level Pull. Co-author of A3 Thinking and Kaizen Methods: Six Steps to Improvement - Last updated: Monday, February 21, 2011

The Department of Transportation's National Highway Traffic Safety Administration (NHTSA) issued their release of the study performed in conjunction with NASA engineers with regards to the safety of Toyota vehicles with regards to the potential causes of sudden unintended acceleration. The finding was a positive one for Toyota. The results of a ten-month study by 30 NASA engineers of possible electronic causes of unintended acceleration in Toyota vehicles was ...

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Pascal Dennis: Hubris is a dangerous enemy By Pascal Dennis, Author of Getting The Right Things Done, Lean Production Simplified, and Andy & Me - Last updated: Wednesday, February 16, 2011

Here's another posting that builds on those by Jeff and Steve: "As Jeff Liker writes, an iconic company, synonymous with safety and quality, has been brought low by plaintiff lawyers and an opportunistic government. My sense is Toyota's reputation will recover quicker than expected, whereas the government's has suffered yet another heavy blow. Harpers February 2011 issue has an interesting piece entitled "A Super Bowl Spot for Uncle Sam -- Can Madison Avenue Make Us Love Our ...

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Steve Spear: Relentless pursuit of perfection means just that – self-critique and facing one’s problems By Steven Spear, Author of 'The High-Velocity Edge' and 'Chasing the Rabbit' - Last updated: Wednesday, February 16, 2011

Toyota has long committed itself to the "relentless pursuit of perfection" by cultivating and sustaining relentless, internally generated improvement and innovation.  The results were legendary: movement from terribly unproductive in the late 1950s to on par by the early 1960s, a productivity leader by the late 1960s and a quality leader too by the early 1970s.  Subsequently, it set an unmatchable pace of introducing affordable, reliable new models, brands like ...

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Jeff Liker: Toyota’s response demonstrated the Toyota Way at its best By Jeff Liker, author of The Toyota Way and co-author of Toyota Product Development System and Toyota Under Fire - Last updated: Sunday, February 13, 2011

The events that led up to the Toyota recall crisis and all the false accusations about Toyota's ethics, concern for safety, and specific defects that cause sudden unintended acceleration were nothing short of bizarre.  As we look back at this ten years from now it will be interpreted as an Audi-like witch hunt that seems to happen mostly in the United States.  It had many of the same elements:  no ...

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The Lean Edge: Are Toyota’s troubles really over? What lessons should we learn from this? By The Lean Edge, - Last updated: Sunday, February 13, 2011

Mike Rother: A Little Lean Doesn’t Go a Long Way By Mike Rother, Author of Toyota Kata and co-author of Learning to See - Last updated: Friday, February 11, 2011

Question: Why is it so difficult to see the financial benefits from lean? I wonder if in many cases the answer is as simple as this:  We haven’t yet progressed with lean to the point where you can see the results financially. One can argue that lean means working on improving every process every day, even if only in small increments. Each process and product would always have a target condition, on ...

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Dan Jones: The Financial Consequences of Lean By Daniel T Jones, Co-author of 'Lean Thinking' and 'The Machine That Changed the World' - Last updated: Thursday, February 3, 2011

Why is it so hard to see the financial consequences of lean? Failure to answer this dilemma has derailed many lean initiatives. This is not such a problem if top management really understands the significance of focusing on getting everything to flow right-first-time-on-time to customers. Like top management at Toyota and Tesco, they know that good processes lead to good results. Alternatively if you have an experienced Sensei who knows ...

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Art Smalley: Financial Benefits By Art Smalley, author of Creating Level Pull. Co-author of A3 Thinking and Kaizen Methods: Six Steps to Improvement - Last updated: Tuesday, January 25, 2011

Historically Toyota Motor Corporation has been a very profitable company over the past 60 years in what is generally a very cyclical business. Before its recent problems Toyota was racking up annual profits for several years in the $15 Billion + range and had not reported an annual loss since the early 1950's. Various problems and the global economic slowdown brought those numbers to a grinding halt in 2010 but ...

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Michael Ballé: Real lean results will show up in bottom-line and cash By Michael Balle, co-author of The Gold Mine and The Lean Manager - Last updated: Wednesday, January 19, 2011

If I'm honest, I have to admit this is not an issue I've encountered firsthand. I hear many people complain about the fact that their lean program does not deliver budget-level efforts, but I have to wonder what kind of lean we're talking about. Withe the CEOs and Operations VPs I work with, lean delivers in terms of bottom-line and cash in the one to two year horizon. or put it ...

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Jeff Liker: Lean opens new avenues for business results, but it sometimes hard to know in advance what those benefits will be By Jeff Liker, author of The Toyota Way and co-author of Toyota Product Development System and Toyota Under Fire - Last updated: Wednesday, January 19, 2011

First, I want to reinforce Orry's points that there are short-term gains and long-term gains.  The most obvious short-term gains that many companies will accept are labor reductions and then only if you send these people out the door on layoff.  That is self defeating and will kill the incredible potential for operational excellence to change the business strategy.  In reality, even in companies that reduce labor significantly in percent ...

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Orry Fiume: Rather than cost accounting, look out for cash improvement By Orry Fiume, Co-author of Real Numbers: Management Accounting in a Lean Organization - Last updated: Tuesday, January 18, 2011

This is a question that has been asked in every Lean Accounting workshop that I have conducted over the past 10 years. Probably the single biggest reason why we can’t see the gains in the Profit Statement is because most companies still use full absorption standard cost accounting.  In this system any deviation from standard is treated as a variance. As we implement Lean we satisfy some of our current demand ...

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The Lean Edge: Why is it so difficult to see the financial benefits from lean? By The Lean Edge, - Last updated: Tuesday, January 18, 2011

Steve Spear: Perfection is achieved by discovery By Steven Spear, Author of 'The High-Velocity Edge' and 'Chasing the Rabbit' - Last updated: Tuesday, January 18, 2011

The challenge common to all organizations is achieving exceptional performance to gain and sustain competitive advantage.  Achieving superlative results in terms of quality, productivity, reliability and responsiveness demands that improvement and innovation--both small scale and large--be as regular a part of work and delivering product and service to market. A capacity for relentless betterment is a prerequisite for success because nothing designed by people--product, service, or the processes behind them--is designed ...

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Jeff Liker: The essence of the Toyota Way is respect for people and continuous improvement By Jeff Liker, author of The Toyota Way and co-author of Toyota Product Development System and Toyota Under Fire - Last updated: Wednesday, January 12, 2011

I read Mike Rother's response and he gives an excellent  detailed explanation beyond which I will undertake.  I think there are two problems suggested by the question  First, the definition of lean as "eliminating waste" is inherently limiting.  Second, there is an implicit assumption that everything one should do should eliminate waste, and no activities should be undertaken that actually are not considered "value-added activities." These are both limiting assumptions.  Here ...

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Mike Rother: The Lean Movement is Changing By Mike Rother, Author of Toyota Kata and co-author of Learning to See - Last updated: Monday, January 10, 2011

How does a lean organization ensure it provides value?  By continuously improving. How does a lean organization do that? By having its members practice every day how to continuously improve, so it becomes habit and culture. A Shift in the Lean Movement There seems to be a new thoughtfulness in some quarters of the Lean community, and I’m impressed. More and more people are asking why so much education, training and consulting and ...

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Michael Ballé: Waste Elimination Is The Ultimate Development Practice By Michael Balle, co-author of The Gold Mine and The Lean Manager - Last updated: Monday, January 10, 2011

Most companies would argue that they’re intent on developing their people, and to do so they invest a substantial part of the budgets in training of all sorts, from technical skills to managerial practices. Mostly, this training is conceived on the university model: an expert specifies the best known way to do something, trainees learn it as well they can and then are tasked to apply it. Because of obvious ...

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Dan Jones: Lean Training and Waste By Daniel T Jones, Co-author of 'Lean Thinking' and 'The Machine That Changed the World' - Last updated: Monday, January 10, 2011

The power of the very tight lean definition of waste as only those actions that directly create value for customers is to throw a spotlight on all those actions that clearly do not create any value at all and should be stopped, and to raise questions about those actions that might be necessary to enable the value creating work to be done, such as planning and procurement. This is also ...

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Jamie Flinchbaugh: Understanding the impact of developing your people By Jamie Flinchbaugh, Co-Author of The Hitchhiker's Guide To Lean and co-founder of the Lean Learning Center - Last updated: Wednesday, January 5, 2011

The latest Lean Edge question is How do Lean organizations develop their employees if Lean considers expenditure of resources other than for creation of value to be wasteful? First, a true lean organization isn’t obsessed with waste. If anything, they are obsessed with value.  Waste is anything more than the absolutely minimum required to add value to a product or service; waste is not just anything that doesn’t create value. I ...

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Jean Cunningham: Training is even MORE important in the lean organization! By Jean Cunningham, Co-author of 'Real Numbers' and 'Easier, Simpler, Faster' - Last updated: Tuesday, January 4, 2011

Training is even MORE important in the lean organization!  As we move work away from a function and toward a process, the lines currently drawn between employees begin to shift.  For an example, in one company (as in many) the credit check for new employees was done within the accounting department.  However, to reduce the time to meet customer needs who were ordering spare parts, the credit check process had ...

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Art Smalley: A Continuing Definition Problem By Art Smalley, author of Creating Level Pull. Co-author of A3 Thinking and Kaizen Methods: Six Steps to Improvement - Last updated: Monday, January 3, 2011

This somewhat loaded question follows the previous one involving a commonly used but narrow and inaccurate depiction of lean manufacturing as simply “waste reduction”.  A similar problem occurs if you simply claim that Lean considers expenditure of resources other than for creation of value to be wasteful. As I attempted to explain previously somewhat tongue in cheek most depictions fall short of describing the Toyota Production System due to the ...

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Pascal Dennis: Aim For Delightful Value By Pascal Dennis, Author of Getting The Right Things Done, Lean Production Simplified, and Andy & Me - Last updated: Monday, January 3, 2011

We need to reflect on Value, at least as much as we do on Waste. The latter is comparatively easy to see on a manufacturing floor. "Look, there's a week's worth of WIP in Final Assembly.  There are 25 scratched units at the Primer line.  Line 6 is down for 20 minutes because of a part out..." Waste is somewhat harder to see in, say, a design studio, but with good visual management we can make ...

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The Lean Edge: How do we develop people? By The Lean Edge, - Last updated: Monday, January 3, 2011

Is lean about waste? By Jamie Flinchbaugh, Co-Author of The Hitchhiker's Guide To Lean and co-founder of the Lean Learning Center - Last updated: Thursday, December 16, 2010

First, I disagree that lean is a "production practice." But that's not really the question, so I'll move on. I agree with Art's description - many people see different things in it. It wouldn't be fair to say that lean is NOT about waste elimination, but it's equally unfair to say it's all about that. As Anais Nin said, "we don't see things as they are. We see them as we ...

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Dan Jones: Lean Beyond Waste By Daniel T Jones, Co-author of 'Lean Thinking' and 'The Machine That Changed the World' - Last updated: Thursday, December 9, 2010

The premise behind this question and the Wikipedia definition reveals three common misconceptions about lean. First lean is not limited to production activities. Although the original insight to streamline the flow of work as well as improve the way each step is performed was developed on the shop floor, it has long since been shown to have widespread application to other processes. Indeed over time the principles of lean process ...

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Michael Ballé: the Way of Waste Elimination (ie: waste elimination as a heuristic) By Michael Balle, co-author of The Gold Mine and The Lean Manager - Last updated: Tuesday, November 30, 2010

Clearly, there is more to lean than waste elimination. And then again, maybe waste elimination IS the whole point. Let me go out on a limb here. Why would a french sociologist consider Toyota to be a role model? I was all set to follow the traditional path of critical analysis and join the club of naysayers. So: what changed my mind? It's not like it's an ideal company. it's not ...

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Art Smalley: The Lean Elephant By Art Smalley, author of Creating Level Pull. Co-author of A3 Thinking and Kaizen Methods: Six Steps to Improvement - Last updated: Monday, November 29, 2010

I think it is best to be honest and admit that most characterizations of lean (or the Toyota Production System) are all lacking in general. In one sense the question posed is simple enough but the answer is not really all that easy. Depending upon what angle or approach you take you can come up with some different points of view on the topic. I'll summarize a couple and then ...

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Mike Rother: Our Evolving Understanding of Lean By Mike Rother, Author of Toyota Kata and co-author of Learning to See - Last updated: Wednesday, November 24, 2010

Question:  Do you agree with the characterization of Lean as eliminating waste?  Why or why not?” I think the characterization of Lean as "eliminating waste" is too narrow. The question above, from Jerry Weinberg in the software development community, is an opportunity to expand our thinking. Agile software development is about providing customer value through iteration and, you know what, that's not too different from what Toyota is doing. If you want ...

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Steve Spear: Excellence is the common goal. Discovery, be it called improvement, innovation, or invention, is the means By Steven Spear, Author of 'The High-Velocity Edge' and 'Chasing the Rabbit' - Last updated: Monday, November 22, 2010

Arguing the merits of lean versus six sigma versus agile versus any other quality method creates a distraction of debating labels and the artifacts associated with each rather than understanding the fundamentals that allow some organizations to achieve levels of performance unmatchable by others. The truth is there are very few organizations that have achieved exceptional levels of performance based on a capacity to continuously improve and internally generate innovations broadly, ...

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Mark Graban: Lean is about continuous improvement and respect for people By Mark Graban, Author of the 'Lean Hospitals: Improving Quality, Patient Safety, and Employee Satisfaction,' winner of the Shingo Prize in 2009. Creator of leanblog.org, and Senior Fellow at the Lean Enterprise Institute. On twitter as @leanblog. - Last updated: Monday, November 22, 2010

As helpful as Wikipedia can be, it's also not the definitive source on many topics. In this case, the description of "Lean" is sorely lacking the people element. Lean and the Toyota Way are about both "continuous improvement" and "respect for people." Taiichi Ohno wrote that these were "equally important pillars." Equally important - let's emphasize that. Too many organizations focus on just the "continuous improvement" piece, even if "continuous" means ...

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Jeff Liker:continually assessing what customers want, striving for perfection in satisfying customers and in every aspect of our production and service process, developing in people the ability and motivation to detect and solve deviations from perfect one-piece flow, leaders who are developing in people the ability to continuous improve, and a long-term value of the enterprise on satisfying customers and contributing to society. By Jeff Liker, author of The Toyota Way and co-author of Toyota Product Development System and Toyota Under Fire - Last updated: Monday, November 22, 2010

As you know Wikipedia is a kind of public free-for-all in how different topics get defined and analyzed and this person got there and took the time to write something so I give them credit. In a book I and coauthors just completed that will be out in the winter, entitled:  The Toyota Way to Continuous Improvement, we argue that we may have misled the public through definitions of lean ...

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Jean Cunningham: Are Lean IT and Agile Compatible? By Jean Cunningham, Co-author of 'Real Numbers' and 'Easier, Simpler, Faster' - Last updated: Monday, November 22, 2010

Lean IT results from the application of lean principles to information systems and the IT function. Changes made to IT are directly related to changes made and learnings discovered while converting manufacturing to the Toyota Production System or “lean”. Via an evolutionary spiral that began in earnest in the early 90’s, the elimination of waste in all processes at the shop floor yielded huge improvements in lead time and quality. ...

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