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LEAN THINKING:THE NEXT LEAP A Presentation by James P. Womack President, The Lean Enterprise Institute For The Association for Manufacturing Excellence Boston, MA November 8, 2000 The Fall of 2000:Where Do We Stand? 10th anniversary of The Machine That Changed the World A hymn of praise to Toyota as a business system: product development, supplier management, customer management, operations management total enterprise management Now conventional wisdom But how far have we advanced? Why Is The Lean Leap So Hard? We usually focus on techniques and programs TQM Business Process Reengineering Kaizen Blitzkrieg TPM 6 Sigma ERP Value Stream Mapping?! Programs And Techniques: Initiated by “change agents” or “champions” in response to a crisis Accumulate knowledge in departments: quality (6 Sigma), industrial engineering and production control (TPS), maintenance (TPM), IT (ERP), etc. Implemented by technical experts: sensei, black belt, Jonah, etc. Focus on isolated, glaring problems. But where are the managers who focus on the whole sustain programs beyond the immediate crisis? We Need a Next Lean Leap: Value Stream Management Focus on the entire value stream for product families Make someone responsible for each product family: the Value Stream Manager (VSM) Ask them to create an accurate current state Tell the traditional functions – product engineering, process engineering, production control logistics, quality, purchasing – to support the VSMs! The Product Family Products that: Share the same designs, tools and fabrication processes Follow roughly the same path between processing steps (Note that as you begin to map a mass production product’s value stream it will usually be co-mingled with many other product families as it goes through process villages.) Mapping The Value Stream The only accurate way to create the map is to take a walk and draw what you see! Historical data and what people tell you is “normal” is almost always wrong! We recommend a pe
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