Business

3 Questions to Help Confirm a Company is Practicing Lean Product Development:

1. What is your new product introduction cadence?

What is the % on time, and percentage on budget? If not consistently on time & on budget, what is the gap you have to close?

 

Photo: conventional chaos vs lean

credit: Dantar P. Oosterwall,

The Lean Machine: How Harley-Davidson Drove Top-Line Growth and Profitability with Revolutionary Lean Product Development, p.106

2. Where are you applying set based concurrent engineering?


Photo: Denso trade off curves

Credit: Allen C. Ward, Durward K. Sobek,

Lead Product and Process Development, 2nd ed. p.172

3. Where are you using trade off curves in development?

Where is design/engineering creating trade off curves to supply reusable knowledge to accelerate product development?

 

Some questions I provided an institutional board member to help them validate whether their investment is applying lean business strategy.

If not, it is worth more than traditional financial analysis is capable of revealing.

GE 2020 Earnings Call - Digital Grid

7:50

“In digital grid for example our team used problem solving and daily management to reduce quality defects by 25%.

This helped drive savings that enabled the business to grow operating profit by 60% in 2020.

As this team shows, you can apply lean in any part of the business, NOT just in manufacturing.”

 

“all leaders have action plans to run their businesses leaner with lower inventory levels. In aggregate, our focus and actions to improve working capital are starting to pay off.”

10 Important Shifts in Thinking People Don't Talk About with Lean

Another great write up by Karl Ohaus, link here:

https://www.linkedin.com/pulse/10-important-shifts-thinking-people-dont-talk-lean-karl-ohaus



key points:

‘teams try to “implement Lean” without making critical shifts in leadership thinking’

‘it requires leadership to shift their thinking to be able to benefit organizations at all.’

‘Every defect is an opportunity to learn.’

‘If you are too busy to acknowledge that something is a problem, then your organization will be right there with you’

Launching Lean at Danaher

Jake Brake Danaher Results.jpg


my notes/key points from it:

 

“We even put potted plants in the first cell just to show how different the new look was.”

 

“50 percent. Everything can be cut by 50 percent.” Later they told us they said 50 percent because they didn’t think we would want to hear the real number.  We liked that as we were only thinking about 30 percent

 

“listen and learn. Don’t push back. We found right away that lean (Just-inTime back then) was “learn-by-doing” and we wanted to learn.”

 

“Mark helped us initially in finance by moving us away from standard cost accounting and toward something similar to what is now called lean accounting, and later became instrumental in creating/running the Danaher Business System (DBS). Switching to lean accounting was another big lesson as it allowed us to finally see what was going on and didn’t fight lean as standard cost accounting does. It also created great productivity in finance as Mark was able to go from 25 to 9 people and close the books in a day and a half.”

 

“all leaders need to emerge themselves in the details of lean and become lean experts themselves if they want to have a successful lean turnaround.”

 

“learning was the greatest strategic weapon we had ever seen.”

 

“cut your lead times from weeks to days, increase your productivity, drastically improve your quality and free up over half your floor space by removing the waste from your operations then you would have a huge strategic advantage.”

 

“A lot of times things didn’t work well at first (in fact most of the time) but we never let it go back to what it was. We just kept pushing till we solved the problems and made it work.”

 

“we involved the union in everything we did. We were always honest and up front with them. We treated them as equal partners.

we kept proving that every move we made was better for our work force we eventually formed a great relationship. We knew that the best ideas for removing the waste would come from the people doing the work, and that always proved to be true.”

“the Presidents of all 13 Danaher companies to be the lean drivers in their own companies. To do this we had to teach them lean… create the Presidents Kaizen.”

“all the Presidents to participate in a three-day kaizen every six weeks.  They weren’t too happy about this at first but the gains we got every time were so big that this quickly changed.”

“Mark DeLuzio created the M&A integration process as well as the due diligence process as it related to DBS. And along with Larry Culp, Danaher CEO (and now the CEO of GE), developed the strategic planning process for all of Danaher”

Read the full article. In a few days, re-read it.

Applying Operational Excellence to Mining


"Balancing the workload among different production lines led to a 19.3% increase in productivity
(we did invest some money in modernizing our equipment and improving processes)."

The management team of a Lithuanian mining company explains how they are transforming themselves to overcome resistance to business change.

- machine efficiency rate went up 20%.
Main mobile equipment used to shut down for planned maintenance every 150 hours, whereas today it does only every 250.

article here: https://planet-lean.com/fighting-resistance-lean-mining

Learning fast in the crisis


- Buying a company is never an easy step just 1 month ahead of a pandemic and lockdown. Results from a CEO spending time in the business instead of the office.
.
to learn about problems, find and face.

Organizational changes can be tempting when a new owner steps in, but they seldom help.
.


Lean thinking rather teaches us to focus on the flow of products and services to customers and observe what hinders the work of those operating along that flow.
.
They managed to reduce the lead-time for stainless steel trolleys 66% from 6 weeks to 2 weeks.

With overall volume of sales decreasing, the lockdown seems to be the perfect opportunity to revamp the workshop and learn how to better organize it.

read full article:

https://planet-lean.com/lean-learning-covid19

The Lean Trilogy - Mark Deluzio - Danaher

“they already have the person in place that should lead the transformation, the CEO.”

 

“The CEO must not only verbalize his commitment to the Lean Transformation, he must show it in his actions."

 

“If the CEO delegates away his responsibilities to a staff position within the company, the Lean transformation will stall and eventually fail. The CEO must be as committed to the process of the transformation as he is to the results.”

 

“a Lean transformation is all about people.”

 

“one must think about Lean as a growth strategy.”

 

“You may need to decide NOT to do business with a group of customers if employee and/or shareholder requirements are not met.”

https://markdeluzio.com/lean-trilogy