《barriers to lean》.ppt

Why isn’t every plant a lean plant? Peter Ward Ohio State University Center for Operational Excellence Agenda 2003 Industry Week Best Plants Five-Year Improvement Metrics More evidence Lean thinking Why aren’t all operations lean? 2003 Industry Week Best Plants 5-year Quality Improvements 2003 Industry Week Best Plants 5-year Time Improvements 2003 Industry Week Best Plants 5-year Productivity Improvements Other Evidence Results from a study of lean implementation: Context of plant size, plant age, and unionization Bundles of related practices Performance Based on sample of 1700 plants that crosses industrial landscape—industry composition similar to population of No. Amer. mfg. Context Large plants are more likely to implement a broad array of practices. However, smaller plants that do implement tend to perform slightly better than large implementers Unionization and plant age have much narrower influence on implementation. Being old or being unionized does not seem to be an excuse for avoiding implementation. Lean bundles Lean programs tend to be implemented in bundles of related practices: JIT/flow; TQM; TPM; and HRM Bundles are implemented across all industries. However process industry plants are somewhat more likely to implement TPM and discrete plants are somewhat more likely to implement JIT/flow Performance Operational performance, a composite of cost, timeliness, speed, quality, and productivity was significantly higher in lean implementers. Controlling for effects of context, lean implementation explained about 25% of difference in performance. Each of the four practice bundles makes a significant contribution to performance. Lean Thinking How does a plant achieve “Best Plant” improvement metrics? By applying lean principles. The applications tell the story. Why Aren’t All Processes Lean? If the payoff is so BIG and so apparent And If the underlying principles are so intuitive… Why Aren’t All Processes Lean? As many reasons exi