Lean Thinking : Banish Waste and Create Wealth in Your Corporation, Revised and Updated 
asked by jbritt on November 18, 2006 12:15 PM
In the revised and updated edition of Lean Thinking: Banish Waste and Create Wealth in Your Corporation, authors James P. Womack and Daniel T. Jones provide a thoughtful expansion upon their value-based business system based on the Toyota model. Along the way they update their action plan in light of new research and the increasing globalization of manufacturing, and they revisit some of their key case studies (most of which still derive, however, from the automotive, aerospace, and other manufacturing industries).
The core of the lean model remains the same in the new edition. All businesses must define the "value" that they produce as the product that best suits customer needs. The leaders must then identify and clarify the "value stream," the nexus of actions to bring the product through problems solving, information management, and physical transformation tasks. Next, "lean enterprise" lines up suppliers with this value stream. "Flow" traces the product across departments. "Pull" then activates the flow as the business re-orients towards the pull of the customer's needs. Finally, with the company reengineered towards its core value in a flow process, the business re-orients towards "perfection," rooting out all the remaining muda (Japanese for "waste") in the system.
Despite the authors' claims to "actionable principles for creating lasting value in any business during any business conditions," the lean model is not demonstrated with broad applications in the service or retail industries. But those manager's whose needs resonate with those described in the Lean Thinking case studies will find a host of practical guidelines for streamlining their processes and achieving manufacturing efficiencies. --Patrick O'Kelley
Reviews
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I think it would have been better in print, some of the concepts are hard to follow on tape
reviewed by fusionz on November 20, 2006 12:32 AM
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Lean thinking shift management concern away from assets and finance and focuses them on the perspective of the customer. Value is provided when the supplier gives the customer exactly what they want when they want it and the producer creates value. Lean thinking provides immediate value by converting waste into value. Value is a conscious attempt to precisely define value in terms of a specific product with specific capabilities at a specific price through a dialogue with the customer. Managers need to rethink along product line and not existing assets and technologies.
The value stream has three components: 1. the problem solving task 2. Information management 3. and transformation task. The value stream exposes and finds many steps that create no value and should be immediately avoidable. How does so much waste occur for such a long time? The departments or parties are not accountable nor forced to explain their products, processes, or service to others. Secondly, there exists the matter of confidentiality where non-disclosure creates barriers and artificial dependency. Third, the matter of the obvious circumvents the desire to continual improve and reexamine process and product.
Value stream begins with "one thing at a time" as more efficient than batch processing. Batch processing is the culture of the farmer. The farmer culture has replaced the hunter culture. The hunter culture is more efficient, as it seeks to "build what the customer wants when the customer wants it" or in other words "on-demand production". On-demand production destroys the need for forecasting and lets the customer pull the product from the product when needed. Lean thinking cuts production through times by 90% and reduces inventories by 90%. Batch processing or mass production thinking results in stagnation which leads to cost cutting, an innovation incentive killer.
Lean thinking starts with analysis of flow. The manufacturing process is divided into cells. Each cell represents one or more sequence of assembly and transformation processes. A tub is passed between each cell and triggers a series of events to start in the cell. The parts associated with the tub are built exactly and immediately. Any process or resource that does not contribute value in the flow is removed. Higher demand cells are place at the beginning of the flow. Cells can be run in parallel creating economy of scale load balancing. A critical failure can stop all the production. Quality teams constant analyze the flow for defect and workers in the cell are allowed to respond and communicate problems and suggestions for improvement.
Lean thinking begins with pull. Customers pull products from the producer and remove the need for forecasting and excessive inventories size. Machines are equipped with fast transforming technology allowing for a diverse combination of assembled options for parts and products moving from cell to cell. Lean thinking is better than MRP. Lean thinking removes the slack time in scheduling errors and miscalculations in forecasted quantity amounts and types.
Lean thinking must be applied to all aspects of product creation and delivery. Lean thinking removes any flow issues associated with getting the correct product to the customer, quickly, accurately, and efficiently. Lean thinking replaces mass production process engineering and exposes process weakness and factories have tolerated and managed these failures as a part of the mass production cycles. Lean product exposes these weaknesses and replaces them with more feasible solutions.
Manufacturing Perfection is impossible, however thinking about perfection leads to inspiration and innovative solutions. Lean thinkers bring abundance to the market, transform nonstandard products into standardized products, and increase customer value. The value of lean thinking is continuous improvement in quality, design, and product.
The value stream has three components: 1. the problem solving task 2. Information management 3. and transformation task. The value stream exposes and finds many steps that create no value and should be immediately avoidable. How does so much waste occur for such a long time? The departments or parties are not accountable nor forced to explain their products, processes, or service to others. Secondly, there exists the matter of confidentiality where non-disclosure creates barriers and artificial dependency. Third, the matter of the obvious circumvents the desire to continual improve and reexamine process and product.
Value stream begins with "one thing at a time" as more efficient than batch processing. Batch processing is the culture of the farmer. The farmer culture has replaced the hunter culture. The hunter culture is more efficient, as it seeks to "build what the customer wants when the customer wants it" or in other words "on-demand production". On-demand production destroys the need for forecasting and lets the customer pull the product from the product when needed. Lean thinking cuts production through times by 90% and reduces inventories by 90%. Batch processing or mass production thinking results in stagnation which leads to cost cutting, an innovation incentive killer.
Lean thinking starts with analysis of flow. The manufacturing process is divided into cells. Each cell represents one or more sequence of assembly and transformation processes. A tub is passed between each cell and triggers a series of events to start in the cell. The parts associated with the tub are built exactly and immediately. Any process or resource that does not contribute value in the flow is removed. Higher demand cells are place at the beginning of the flow. Cells can be run in parallel creating economy of scale load balancing. A critical failure can stop all the production. Quality teams constant analyze the flow for defect and workers in the cell are allowed to respond and communicate problems and suggestions for improvement.
Lean thinking begins with pull. Customers pull products from the producer and remove the need for forecasting and excessive inventories size. Machines are equipped with fast transforming technology allowing for a diverse combination of assembled options for parts and products moving from cell to cell. Lean thinking is better than MRP. Lean thinking removes the slack time in scheduling errors and miscalculations in forecasted quantity amounts and types.
Lean thinking must be applied to all aspects of product creation and delivery. Lean thinking removes any flow issues associated with getting the correct product to the customer, quickly, accurately, and efficiently. Lean thinking replaces mass production process engineering and exposes process weakness and factories have tolerated and managed these failures as a part of the mass production cycles. Lean product exposes these weaknesses and replaces them with more feasible solutions.
Manufacturing Perfection is impossible, however thinking about perfection leads to inspiration and innovative solutions. Lean thinkers bring abundance to the market, transform nonstandard products into standardized products, and increase customer value. The value of lean thinking is continuous improvement in quality, design, and product.
reviewed by glenn11 on November 21, 2006 12:38 AM
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I personally do a vast amount of reading with lean enterprise being of special interest. Womack has done some great work, but this is a "tough read" even for serious lean enthusiasts. I typically finish a book of this length within 2-3 days then re-read it and highlight. It literally took me 11 weeks because I was lulled to a point in which reading further would be of no benefit and would have to put it back on the shelf and revisit it days later. I realize that scholarly and business writing is not especially exciting as I am constantly reading and doing research but this one was tough even for me, an avid reader.
reviewed by macfan on November 29, 2006 11:01 AM