EXECUTIVE SUMMARY
Lean implementation involves a collection of actions and procedures beginning from organizing
the reforms, elaborating on the agenda and explaining the reform strategy. It is very important
that the progress is assessed in terms of its effectiveness. The changes that are being
implemented and the tools being used ought to be very realistic and yielding results. The
process begins with reforming the entire system and also defining the activities before carrying
out the implementation process. Lean implementation requires a well-established environment
which supports all the other elements of production within a particular system.
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Table of Contents
EXECUTIVE SUMMARY 1
Development of Lean 3
Application of lean in complex and innovative areas. 5
Five caveats to Lean implementation 6
- Implementing lean when disruption is very minimal 6
- Analyzing a system before implementation of the concept 8
- No activity should be improved in Isolation 8
- Redefining value and waste. 9
- Lean should not be pushed to the Point of Negative Returns 10
Conclusion 10
References 11
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Development of Lean
The concept of implementing a lean process within an institution entails a collection of
ideas that guide the whole process. The main aim of incorporating these tools and techniques in
the process of manufacturing is to make maximum utilization of time, people, tools and
production process. Similarly, the process focuseson quality of the products being produced for
the clients (Bhasin & Burcher, 2012,234). Lean philosophy is a very vital concept which
assists businesses become more competitive in the field of doing business around the world. In
addition, lean production is a practice that incorporates the production process which involves
utilization of resources for any other work besides creating value for the final consumer.
Leanmanufacturingisamulti-facetedmanagementconcept that includes time management,
processes that enhance quality, working groups, suppliers among others (Carter,
2011,34).Despite the fact that most companies began implementing this concept, a few
companies were very successful in its implementation in terms of practices that guide the
manufacturing process. In the current world, even the technological aspects that are entailed in
the process of lean production are changing. Those companies which have tried to incorporate
some of these practices have failed to succeed in their operations.The process of implementing
these principles and concepts involves several actions and activities. The process begins with
reforming the entire system and also defining the activities before carrying out the
implementation process. Lean implementation requires a well-established environment which
supports all the other elements of production within a particular system
The concept began by Toyota Company in terms of its production processes in Japan. The main
goal of launching this idea was to reduce wastage, reduce amount of work and also enhance
quality using little amount of money. This was to involve making of quality management
decisions which is a very important part in any business. The idea of lean management of
businesses therefore originated from the Toyota Company so as to solve the specific challenges
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especially in times of economic problems. The concept of lean management considers
expenditure as the most vital organ of any business. The concept proposes measures to ensure
that resources are maximized without any wastage so as to meet the needs of the client. It can
sometimes be looked at as a collection of principles. The idea has currently been embraced by
various companies. The main reason for ease of adoption is its ease of replication and
transferability (Holweg, 2013,56). Due to the fact that the concept reduces wastage of
resources, both manufacturing and processing companies have successfully implemented it.
Examples of these companies include the health, automotive and construction industries. The
concept drastically reduces the cost of doing business. The Toyota Company has been able to
implement the process efficiently through various amendments. Companies always strive to
innovate and own any new discovery.Adoption of this concept in such kind of an environment
without a thorough understanding can result into problems. Consequently, such an approach
may definitely lead to huge losses. Therefore in such form of environment, the leadership has to
put in mind several caveats to shield against any losses.
Lean implementation involves a collection of actions and procedures that ensures that the
process of adoption is successfully implemented. In addition, the process ought to entail
implementation and evaluation of the whole exercise. So as to experience a successful lean
process implementation, one has to plan. Planning entails defining the reason why change is very
necessary. It is very important to understand and appreciate why reforms are needed in any form
of business in terms of lean reforms. This ensures that every person within an organization is well
informed of the intention of the whole process. Similarly, the highest level of management has to
support and also get committed to the process of reforming an organization. The moment
employees see a very serious commitment from top management, they get involved in the entire
process. On the other hand, the most critical areas that are targeted have to be identified. This
should therefore involve coming up with a plan which spells out the processes and areas that need
change. The whole process has to be sequential (Emiliani & Stec 2014,79).
Another aspect is the factors that enhance success of the implementation process. The
process has to be prepared in terms of encouraging people. This should include thorough
communication and also clarification of information for the people. In addition, the leadership
has to remain very active. People have to be involved and consulted in order to have a smooth
implementation process. Furthermore, all the methods which are involved in the process of
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bringing change have to be incorporated. The environment within which the implementation
process is taking place has to be conducive. This has to entail a mutual understanding and
creation of trust among all the subjects.
The implementation and evaluation of the lean process is very critical. It is very
important that the progress is assessed in terms of its effectiveness. The changes that are being
implemented and the tools being used ought to be very realistic and yielding results. For every
stage of implementation, various indicators can show the performance. The implementation
process of the whole idea should therefore result into reduced expenses, constant enhancement of
the whole process and continuous flow of information. The levels to which the objectives are
met indicate that the process is being successful. The moment all the tools are incorporated in
the whole process of implementation, the indicators act as control parameters upon which
improvement process is scored (Duque & Cadavid, 2007,33).
Application of lean in complex and innovative areas.
Complex and innovative areas enhance each other in terms of lean aspects. The effects of
implementing lean concepts in a complex and innovative environment complement each other.
In cases where one has to adopt a lean process, various aspects have to be put into consideration.
Coming up with new processes or ideas in terms of discoveries is enhanced and reduced through
gaining knowledge. Similarly, studying helps in solving the most complex issues or processes
and their interactions. This is despite the fact that this kind of learning is unique.
Studies differentiate between various aspects of learning. One form of learning is informal where
people gain experience on how to do things through constantly working on the same thing. In
addition, new ways of conducting business is done through carrying out experiments. Another
form of learning is through training. People invest in new technologies or even reform policies in
terms of how business is conducted. In addition, the design in which products are produced is
redesigned.The informal way of learning how to conduct business only happens in a very
peaceful environment which is very stable with processes that are very continuous. On the other
hand, the other form of learning requires investment in terms of resources.
Learning through experience has been developed mainly with learning concepts that
involve reducing costs so as to increase the outcome. The moment volumes being produced are
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increased, the learning curve tends to go down. On the other hand, low volumes of production
are associated with very sophisticates and new innovations. Both novelty and complexity
processes are characterized by low volumes of production. The process of learning assumes that
the whole process would be stable hence the production process would benefit from the
continuous process of production (Deming,2011,99).
The process of implementing a lean aspect in terms of complexity and new innovative
environment is well associated with the concept of investment. The concept of investment
involves investing in technology, enhanced process and changing the way production is done so
as to reduce on costs while at the same time maximizing of quality. Whereas experience intents
to do away with novelty, investment in the way one does business embraces innovations and
complexity. Investment in the way one does business is very disruptive. Sometimes, the process
of reforming the way one does business ends up bringing negative effects in terms of
performance to the organization. This is simply because, at some point, the employees can
become unaware of the technologies, processes or even the tools being introduced within the
organization. Thus adopting a technology that is common to employees can have direct effects
to the performance of a given organization. The reforms resulting from a lean process are
expected to cover up the losses incurred. However, this is sometimes not the case. This is mostly
often especially when the disruptions caused by the changes and discoveries are so huge.
In cases where there is low complexity, learning through experience can discourage new
discoveries. This mostly occurs after realization of the previously unknown tasks. The simplest
processes gives chance for learning through experience hence creates some level of stability.
The moment complexity is so high whereas novelty is so low, investment in the way business is
done ensures that lean implementation is very successful. This is due to the fact that disruptions
in this case are very minimal hence creates some level of stability. However, the moment both
novelty and complexity are too high, learning cannot be enhanced through experience.
Investment creates too much interference in this case due novelty and complexity. The moment
stability is not consistent, implementation of lean concept is not possible (Anchanga,2011,32).
Five caveats to Lean implementation
- Implementing lean when disruption is very minimal
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The rate at which cost is reduced when lean is implemented will vary based on the time at which
implementation process is carried out. This is even sometimes extended to the point where this
the benefits sometimes become expenses. The main reason is that the process of realizing and
implementing lean in itself is a cost. Lean is an expense due to the disruption that is cause. The
process enhances and promotes innovations but at the same time enhances and introduces other
disruptive aspects to the organization. Perhaps, the time at which the process of implementation
of the whole concept of lean is very critical in whatever environment. However, when the
process of implementing the lean concept occurs in an environment that is new and very
complex, the time of implementation is very essential. This is due to the fact that recovery from
such a state is very challenging in such an environment. As such, implementation concept has to
be planned very carefully so as to address all factors that can hinder its success.
The most appropriate time of implementation has to be at the product design. This should be
immediately after a product has stabilized in terms of its processes. The process of
implementation should not occur the moment the product design process is still happening. The
interaction between the new process and the existing process result into disruption. The
implementation activity becomes more dynamic and complex hence increases production costs.
The moment the process of production in terms of interaction become unstable, any attempt to
make them lean is very costly hence very expensive.
Despite the fact lean main objective is stability, the time upon which the whole process is
implemented is very critical. The process does not enhance an existing process. Sometimes a
new concept does not automatically lead to efficiency and cost reduction. However, the
improved and new process sometimes prevents the realization of the expected cost reduction in
the organization. The lean process therefore directly contributes to the instability in an
organization due to wrong timing of its implementation process. It is therefore very important to
optimize any concept before its implementation to avoid any backlash in the process of
implementation. The right activity for the whole concept has to be determined before
implementation so as to offer the appropriate solution. The moment lean concepts are
implemented at the wrong stage; the whole activity becomes too expensive (Fujimoto, 2012,
456).
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- Analyzing a system before implementation of the concept
In a complex scenario, a very small change in one sector could result into a very large change
in the whole system. Sometimes changes might result into instability of the entire system. The
number of products being produced and the people involved, interaction between various tools
and techniques are very critical to any institution. Due to this fact, even slight changes might
result to poor functioning of the entire system.
A sophisticates and complex idea might enhance the complexity of the whole process within an
organization. Complexity has a lot of consequences to the operations of an institution. First,
complexity leads to high cost of doing business. These are costs incurred to carry out a
complicated exercise unlike the well-defined process. The complexity can also increase
uncertainty and unpredictability of doing business. The moment activities appreciate in terms of
complexity and operations, and also as they increase complexity in terms of interaction,
employees are not sure about the outcome from the whole process. Moreover, the moment
processes are very difficult to be predicted due to their complications, it becomes obvious that
some process will be neglected (Deming, 2011, 89). - No activity should be improved in Isolation
Most managers assume the fact that implementation process can be performed in isolation.
Inputs involved in the process of implementation are sometimes assumed. However, it is
important to note that what works at the activity level does not necessarily work at the process
stage. The level of measurement is very important at every stage during implementation.
Sometimes, lean is not very essential throughout the whole process. The process of investment in
the entire process is very essential. It is important to invest in areas like technologyand
production processes. Every stage in the process of implementation is of great importance. This
is simply because each stage depends on the other in terms of functioning. Through enhanced
procedures and interaction of the same processes, an institution is assured of reduced costs and
efficiency (Duque & Cadavid, 2014, 45). Thus the benefits of the whole process of
implementing lean depend on the level of interaction of each and every aspect within the entire
system. Furthermore, working and changing the low level process within an institution does not
automatically bring change within an institution. Unless the low level processes are almost
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collapsing or rather are affecting the entire production process. Improving such processes in
terms of their efficiency may result to an improved process (Cua,McKone,&
Schroeder,2011,66).
- Redefining value and waste.
In the concept of novelty and complexity, value and waste have to be redefined differently.
In such circumstances of novelty, it is challenging and very difficult to define waste. In many
instances, waste is related to the interaction of various processes and not only the activities. Both
novelty and complexity enhance waste and value. It is very dangerous to label some activities as
wastes while others are labeled as of great value. Doing so would result to a total mess in an
organization.
The essence of lean is to reduce on the wastes. However, sometimes it is difficult to establish
what is not needed within an institution. Continued interaction in terms of the complex processes
brings change in a certain area which in turn affects a larger process. To assume that some
processes are wasteful in a complex and novel system it would mean a disaster. This is simply
because complex and novel processes contain various stages with a lot of backups. Doing away
with some of these processes would mean enhancing the ability of that process to interfere with
other processes due to their interdependence (Hino,2010,102).
Interaction on its own does not clearly explain value or waste in the entire process of
production. Doing away with some process does not guarantee reduced costs within an
institution. The moment lean implementation incorporates the concept of agile production the
value of production could be enhanced. The system of production ought to be designed so as to
enhance accountability in terms of markets and clients. These two activities accompany each
other when it comes to lean implementation. The most outstanding aspect of agile is that it
entails inclusion rather than removal and also provides the capacity to enable accountability. In
the case of complexity and novelty, there are high chances of confusion hence agility is very
necessary. Any activity added within a system that is able to sort out problems before they cause
any damage is very important. This process enhances production process despite their definition
as valueless by the implementation process. It is therefore very important to measure the value of
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any activity as an individual rather than as a sum total of the entire process. This is simply
because individual performance matters most to the whole process in any given system (Hopp &
Spearman, 2014,345).
- Lean should not be pushed to the Point of Negative Returns
The process of Lean implementation is an investment. The implementation process is
therefore expected to yield good results in terms of reducing the cost of doing business.
However, the moment one relies more on lean practices might end up incurring more costs than
benefits. Some of the processes that appear to be of great impact might end up being wasteful.
One should never believe that implementing a lean concept is a simple process. This is simply
because it took Toyota several years to implement the entire program. Implementing lean
without good reasons might lead to chaos within an organization. Top management should
therefore always ask questions as to why the process of implementation is being performed
(Anchanga,2011,321).
Conclusion
The five caveats discussed in the article are relevant to any form of organization. Lean
implementation can therefore be looked at differently. It is a philosophy comprised of principles
that dictate how an institution conducts itself so as to reduce on costs. The process of
implementing these principles and concepts involves several actions and activities. The process
begins with reforming the entire system and also defining the activities before carrying out the
implementation process. Lean implementation requires a well-established environment which
supports all the other elements of production within a particular system. A favorable
environment ensures that the employee feels part of the whole reform process rather than feeling
threatened. Successful lean implementation is therefore measured in terms of reduced costs and
constant improvement of the whole system.
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Reference list
Anchanga,P.(2011).CriticalsuccessfactorforleanimplementationwithinSMEs.JournalofManufactu
ring Technology Management.
Bhasin, S. & Burcher, P. (2012). LeanViewed as a Philosophy. Journal ofManufacturing
Technology Management.
