Pub. Date:
Taylor & Francis
The Lean Management Systems Handbook / Edition 1

The Lean Management Systems Handbook / Edition 1


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Performance management, the primary focus of a Lean organization, occurs through continuous improvement programs that focus on education, belief systems development, and effective change management. Presenting a first-of-its-kind approach, The Lean Management Systems Handbook details the critical components required for sustainable Lean management.

Positioning Lean as a management operational philosophy far beyond the traditional set of improvement tools, the book explains how managers at all levels of the organization can integrate Lean into their daily management activities. It defines the Lean philosophy as well as the beliefs and behaviors required to develop a thriving Lean company culture.

The book captures the essence of Lean learning and Lean doing and illustrates practical applications of Lean management. It begins by covering the basics that encompass Lean management and leadership in two critical areas: maintenance/control and improvement.

After reading this book, you will better understand how to see waste, measure waste, eliminate waste, and develop an active change improvement workplace. You will also gain the practical understanding required to determine which Lean tool is best suited to your particular need for supporting an organization-wide management system.

Expounding on essential Lean concepts, this is an ideal guide to help new managers and leaders make the transition from theory to successful application in the field. Complete with brief summaries and examples of the most important tools in Lean management systems development in each chapter, the book provides a reliable roadmap for deploying a Lean management system across your organization, and subsequently across your entire value stream.

Product Details

ISBN-13: 9781466564350
Publisher: Taylor & Francis
Publication date: 07/22/2014
Series: Management Handbooks for Results Series
Pages: 549
Product dimensions: 9.30(w) x 6.10(h) x 1.20(d)

About the Author

Richard M. Charron is the founder and president of The Lean Manufacturing Group, a South Florida company that provides a number of hands-on Employee Learning & Lean Implementation programs focused on waste elimination, productivity improvement, and profitability enhancement. He is a Certified Master Black Belt in Lean Six Sigma Excellence from the Harrington Institute. He has trained and coached over 100 teams in Lean manufacturing, Lean Six Sigma, and Kaizen events generating savings over $25MM. In conjunction with Strategy Associates, he completed a three-part DVD series on Lean concepts for the University of Central Florida. His expertise is in process performance excellence, Lean Six Sigma, Lean manufacturing, design for manufacturability, problem solving, product and process failure analysis, products development, and performance testing. Mr. Charron earned BS and MS degrees in plastics engineering from the University of Massachusetts. His MS Thesis "Product Liability in the Plastics Industry" is a survey of our legal system that spans the impacts of unsafe products and the ever-changing legal uncertainties. He is the author of a dozen technical publications on product quality, products performance testing, and products failure analysis.

In the book, Tech Trending, H. James Harrington was referred to as "the quintessential tech trender." The New York Times referred to him as having a "… knack for synthesis and an open mind about packaging his knowledge and experience in new ways—characteristics that may matter more as prerequisites for new economy success than technical wizardry…." Tom Peters, the author, stated, "I fervently hope that Harrington’s readers will not only benefit from the thoroughness of his effort but will also ‘smell’ the fundamental nature of the challenge for change that he mounts." William Clinton, past president of the United States, appointed Dr. Harrington to serve as an Ambassador of Good Will. It has been said about him, "He writes the books that other consultants use." Harrington Institute was featured on a half-hour TV program, Heartbeat of America, which focuses on outstanding small businesses that make America strong. The host, William Shatner, stated: "You (Dr. Harrington) manage an entrepreneurial company that moves America forward. You are obviously successful."

Dr. Harrington now serves as the chief executive officer for the Harrington Institute. He also serves as the chairman of the board for a number of businesses. Dr. Harrington is recognized as one of the world leaders in applying performance improvement methodologies to business processes. He has an excellent record of coming into an organization, working as its CEO or COO, resulting in a major improvement in its financial and quality performance.

In February 2002, Dr. Harrington retired as the COO of Systemcorp A.L.G., the leading supplier of knowledge management and project management software solutions when Systemcorp was purchased by IBM. Before this, he served as a principal and one of the leaders in the Process Innovation Group at Ernst & Young; he retired from Ernst & Young when it was purchased by Cap Gemini. Dr. Harrington joined Ernst & Young when Ernst & Young purchased Harrington, Hurd & Rieker, a consulting firm that he started. Before that, he was with IBM for over 40 years as a senior engineer and project manager.

Dr. Harrington is the past chairman and past president of the prestigious International Academy for Quality and of the American Society for Quality Control (ASQC). He is also an active member of the Global Knowledge Economics Council.

H. James Harrington was elected to the honorary level of the International Academy for Quality, which is the highest level of recognition in the quality profession. Dr. Harrington is a government-registered quality engineer, a certified quality and reliability engineer by the ASQC, and a permanent certified professional manager by the Institute of Certified Professional Managers. He is a certified Master Six Sigma Black Belt and received the title of Six Sigma Grand Master. He earned an MBA and PhD. in engineering management and a BS in electrical engineering. In 2013, the Degree of Doctor of philosophy was conferred on him by the Sudan Academy of Sciences for his "immense contributions, remarkable achievements, and distinguished accomplishments in the field of quality management, business excellence, and innovation, covering wider range of geographical locations and countries.

His contributions to performance improvement around the world have brought him many honors. He was appointed the honorary advisor to the China Quality Control Association, and was elected to the Singapore Productivity Hall of Fame in 1990. He has been named lifetime honorary president of the Asia Pacific Quality Control Organization and honorary director of the Association Chilean de Control de Calidad. In 2006, Dr. Harrington accepted the honorary chairman position of Quality Technology Park of Iran.

H. James Harrington has been elected a fellow of the British Quality Control Organization and the ASQC. In 2008, he was elected to be an honorary fellow of the Iran Quality Association and Azerbaijan Quality Association. He was also elected an honorary member of the quality societies in Taiwan, Argentina, Brazil, Colombia, and Singapore. He is also listed in the "Who’s-Who Worldwide" and "Men of Distinction Worldwide." He has presented hundreds of papers on performance improvement and organizational management structure at the local, state, national, and international levels.

Frank Voehl was certified as a Grand Master Black Belt in Lean Six Sigma and Organizational Excellence Senior Counselor in process and innovation performance excellence, Lean Six Sigma, design for Six Sigma, Lean manufacturing, problem solving, accelerated performance improvement, and policy deployment. He has 35 years of practical experience in leadership for process enhancement, change management, and program development and operations leadership at FPL’s QualTec as COO, Strategy Associates CEO/ president, and COO/chancellor of the Harrington Institute. He is an expert in the application of the process enhancement, and innovation tools and methods. He trained and coached over 300 teams in Lean manufacturing, problem solving, rapid process improvement, and process management. These teams generated savings over $120MM annually. He is a noted author and series editor of over 30 books and hundreds of articles and technical papers in the field of business management and improvement. He provided input on the original design of the Malcolm Baldrige National Quality Award and facilitated its crossover to other nations and regions, including the Bahamas, South America, Europe, and the Czech Republic.

Hal Wiggin is a Certified Six Sigma Master Black Belt who has been involved in government and agency organizational development and process improvement activities for over 30 years. He was the director of Planning and Quality Improvement for the Broward Children’s Services Council and regional manager of Performance and Planning for the Florida Department of Children and Families. He was a senior examiner for the Florida Sterling (Baldrige) Council. He started his career as a mental health counselor and school psychologist before completing a doctoral program in educational leadership. He is a planner, trainer, and quality improvement professional. Besides Lean Six Sigma, he has specific expertise in strategic planning, measurement systems, situational leadership, coaching, and group facilitation. He is currently helping Nova Southeastern University develop and implement a new Lean Six Sigma program. He is an adjunct assistant professor in the College of Osteopathic Medicine and he consults in health care, government, and other industries.

Table of Contents

Introduction to Lean Management
In a Nutshell
Dawn of Lean Manufacturing
Porsche and the Lean Transformation
Performance Management
Raw Material, Work-in-Process, and Finished Goods Flow
Operator Flow in Relation to Machines
Information Flow
Engineering Flow
Asset Management
Resource Management
Cellular Manufacturing
Risk Management
Lean Management System Deployment Model
Lean Performance Management
Lean Workers Cross-Training
Change Management for Senior Management Teams
In-House Lean Deployment Projects
Toyota Lean Management System Explained
Lean Management and Green Revolution

History Of Lean
In a Nutshell
Lean Techniques
Venetian Arsenal (1104–1800)
Eli Whitney (1792–1805)
Eli Terry (1772–1852)
Frederick W. Taylor (1856–1915)
Frank Gilbreth (1895–1924)
National Cash Register Company (1896)
Henry Ford Sr. (1863–1947)
Charles Bedaux (1887–1944)
Walter L. Shewhart (1891–1967)
Harold F. Dodge (1893–1976) and Henry Romig (1893–1972)
Henry Ford II (1917–1987)
Kaoru Ishikawa (1915–1989)
Armand V. Feigenbaum (1922–Present)
Taiichi Ohno (1912–1990)
Shigeo Shingo (1909–1990)
Phil Crosby (1926–2001)
Process Benchmarking (1947–Present)
Joe Juran (1904–2008)
Yoji Akao (1928–Present)
Ibm’s 1980S Approach to Quality Improvement
W. Edwards Deming (1900–1993)
Total Quality Management (1984)
Eliyahu Moshe Goldratt (1948–2011)
Fast Action Solution Technique (1980)
Malcolm Baldrige National Quality Award (1987)
Bill Smith (1929–1993)
Lean Manufacturing (1988)
Michael L. George (2002)
Jeffrey K. Liker (2012)
Lean Management Systems (2014)

House of Lean (Foundations of a Lean Management System)
In a Nutshell
House of Lean Management
Transition to the House of Lean Management
Lean Activity Model
A Framework for Lean Management Implementation
Inclusion of Lean Management System Indicators and Metrics
Conditions of a Lean Learning Enterprise
Lean Socio-Technical System
Lean Educational System
Lean Change Management
Four Pillars of the Lean Management Model
Summary of the House of Lean Management
Five Foundation Stones of the Lean Management System
Foundation Stone I: Process Management Excellence
Two Approaches to Process Management
Foundation Stone II: Project Management Excellence
Foundation Stone III: Change Management Excellence
Foundation Stone IV: Knowledge Management Excellence
What is Knowledge?
Foundation Stone V: Resource Management Excellence
Documents Needed for the Lean Management
System Strategic Vision
Strategic Vision Sponsor’s Role
Useful References and Associated Readings

Lean Management Systems
In a Nutshell
Toyota Challenge
Views on Toyota’s Management
Lean Management System
Defining Your Lean Management System
Lean Management System Scorecard
Learning Management Model (Senge)
Strategy Management Model (Jackson)
Nine Keys to Lean Management System
Control Points
How to Score
About the Score
Operations Management Model (Shingo)
Shingo Model Versus Common Practices

Lean Socio-Technical System: on Developing a Lean Culture
In a Nutshell
Lean Culture Defined
Psychological Human Needs
Employee Behavior Drivers
Measures Drive Behavior
Beliefs Drive Behavior
Motivation Defined
Motivation as the Driving Force
Fear Drives Behavior
Hierarchy of Needs
Theory X and Theory Y Management Philosophies
Key Social System Implementaion Challenges

Lean Educational System
In a Nutshell
Lean is for Everyone
Purpose of a Lean Educational System
Lean Education System Starts with Management
Lean Education Strategy
About Learning Management Systems
Lean Management Education Description
Lean Educational System: Lean Learning Cycle™
Lean Learning Activities
Lean University
Employee Road Maps and Cross Training
Education Deployment (Hoshin Kanri)
Lean Educational System Definition
Knowledge Application (Kaizen)
Kaizen and You
Kaizen and Teams
Kaizen and Process Troubleshooting
Knowledge Sharing
Grading Outcomes
Key Education System Implementation Challenges
Time and Resource Commitment
Discarding Old Beliefs
Transitioning to a Learning Organization

Waste Identification
In a Nutshell
What is Variation?
How Do we Chart Variation?
Why is Understanding and Controlling Variation So Important?
What is Waste?
Defining the Value-Added Work Components
How Does Waste Creep Into a Process?
Power of Observation
Seeing with New Eyes
Waste 1: Overproduction
What Causes Overproduction?
How to Identify Overproduction
Waste 2: Excess Inventories
What Causes Excess Inventory?
How to Identify Excess Inventory
Waste 3: Defects
What Causes Defects?
How to Identify Defects
Waste 4: Extra Processing
What Causes Processing Waste?
How to Identify Processing Waste
Waste 5: Waiting
What Causes Waiting Waste?
How to Identify Waiting Waste
Waste 6: Motion
What Causes Motion Waste?
How to Identify Motion Waste
Waste 7: Transportation
What Causes Transportation Waste?
How to Identify Transportation Waste
Waste 8: Underutilized Employees
What Causes Underutilized Employees Waste?
How to Identify Underutilized Employees Waste
Waste 9: Behavior
How to Identify Behavior Waste

Waste Quantification: Learning to Measure
In a Nutshell
Measurement Systems Theory
Lean Performance Measurement
From Lean Production to the Lean Enterprise
Assessing Your Current Measurement System
Technical Attributes of Lean Measures
Technical Attributes of Good Measures
Lean Production Measurement Process
Evaluating Your Lean Measures Technical Characteristics
Policy Deployment Model
Ensuring Success of the Model in a Lean Environment
Technical Aspects of Lean Measures
Behavioral Attributes Associated with Lean Measures
Cultural Attributes Associated with Lean Measures
Performance Measurement and Lean Production Processes
Measurement Visibility
Measurement Relationships
Single Source of Measurement Information
Measurement Systems Practice
Why Measure
Types of Measures
Measures and the Supplier–Customer Relationship
Lean Measures Versus Non-Lean Measures
How Lean is Your Current Measurement System
Critical Components of the Lean Measurement System
Selecting New Lean Measures
Measuring Performance Over Time

Lean Concepts, Tools, and Methods
Traditional Organization Operational Philosophy
Lean Operational Philosophy
Lean Management Concepts
Value-Added Activities
No-Value-Added Activities
Business-Value-Added Activities
Waste Identification
Waste Elimination
Value Stream
Value Stream Management
Continuous Flow
Pull Systems
Point of Use Storage
Quality at the Source
5M’s: Materials, Machines, Manpower, Methods, And Measurements
Key Process Input Variables
Key Process Output Variables
Lean Tools
5S Workplace Organization and Standardization
Just the Facts
5S Means Action
Common Omissions when Implementing 5S
Overall Equipment Effectiveness
Just the Facts
How to Use OEE
Applying OEE in Nonmanufacturing Environments
Mistake Proofing
Just the Facts
How to Use Mistake Proofing
Cellular Manufacturing
Just the Facts
How to Create Manufacturing Cells
Just the Facts
How to Use Kanban
Value Stream Mapping
Just the Facts
Managing With Maps
Visual Controls
Just the Facts
How to Use Visual Controls
The Power of Lean Concepts and Lean Tools
Composite U-Cell Case Study
Lean Six Sigma Concepts and Tools Used Summary

Three Faces of Change: Kaizen, Kaikaku, and Kakushin
In a Nutshell
Resistance to Change
Fear of the Unknown
Measurement Systems
Overcoming Resistance to Change
Leaving Old Beliefs Behind
Considering New Possibilities
Emergence of Lean Six Sigma
Three Faces of Change
Kaizen: Continuous Improvement
Kaizen and you Method
Kaizen for Process Troubleshooting
Step 1: Go to Gemba
Step 2: Conduct Gembutsu
Step 3: Take Temporary Countermeasures on the Spot
Step 4: Find Root Causes
Step 5: Standardize to Prevent Recurrence
Kaizen Teams
Possible Target Areas for Kaizen Teams
Preparing for Kaizen
Team Member’s Roles in Kaizen
Overcoming Obstacles During Kaizen
Kaikaku: Transformation of Mind
How do We Recognize Kaikaku (Transformation of Mind)?
Kaikaku in Cell Design
Kaikaku in Facility Layouts
Kakushin (Innovation)
The 20–20 Innovation Process

Lean Thinking 101
In a Nutshell
Origins of Lean Thinking
Dell Lean Thinking Journey
Ebay Way to Lean Thinking
Microsoft Weighs in
Basic Values and Principles of Lean Thinking
Dreaming About Perfection
Apple and Perfection
Basic Principles of Lean
Add Nothing But Value (Eliminate Waste)
Center on the People Who Add Value
Flow Value from Demand (Delay Commitment)
Optimize Across Organizations

Integrating Lean Management with DMAIC/DMADV
In a Nutshell
Goals of Lean Management
Goals of DMAIC/DMADV Lean Management Systems
DMAIC Process Clarified…
Recap of How DMAIC Works
Dmadv Process Clarified for LMS
Overview of How Dmadv Works in LMS
Comparing DMAIC and DMADV-LMS*
Integrating Lean with DMAIC/DMADV
Lean DMADV-LMS Framework
Need for Tollgate Road Maps
DMADV-LMS Tollgate Road Map
Root Cause Analysis and Lean Management
Groups of Lean Management System–Related Root Cause Analysis Tools

Integrating Lean and Theory of Constraints
In a Nutshell
Definition of Constraint
Comparing Lean and Theory of Constraints
Achieving Lean Effectiveness with Theory of Constraints
Tips for Lean–Theory of Constraints Projects
Theory of Constraints Critical Chain Project Management and Little’s Law
Integrating Lean and Six Sigma Under Theory of Constraints Example

Lean Management System: Organizational Master Plan
In a Nutshell

Phase I: Evaluate the Lean Management System Methodology
Activity 1: Starting the Interest in Lean Management Systems
Activity 2: Search for Knowledge on Lean Management Systems
Activity 3: Conducting the Lean Management System Assessment
Activity 4: Analyze Application of Lean Management System (Conceptual Evaluation)
Activity 5: Prepare Management Report (Deploying A Lean Management System)
Activity 6: Present Findings to Top Management
Phase II: Define Opportunities within the Organization
Activity 1: Define the Key Controllable Factors and Develop an As/Is Statement for Each
Activity 2: Conduct a Study to Define and Quantify the Opportunities
Activity 3: Compare to Present-Approved-Improvement Plan Projects to Be Sure There Is No Overlap
Activity 4: Present the Results to Top Management
Activity 5: Assign a Project Manager and Project Team
Activity 6: Approve Phase III Budget
Phase III: Develop the Implementation Plan
Activity 1: Develop Vision Statements for Each of The KCFS
Activity 2: Define Desired Behaviors
Activity 3: Prepare Individual Improvement Plans
Activity 4: Combine the Individual Improvement Plans
Activity 5: Prepare a Cost–Benefit Analysis (ROI)
Activity 6: Develop a Set of Performance Goals
Activity 7: Prepare the Lean Management System’s Project Plan
Activity 8: Present the Lean Management System’s Project Plan to Management
Activity 9: Include the Lean Management System’s Project Plan Into the Strategic Improvement Plan and the Organization’s Annual Operating Plan
Phase IV: Implement the Lean Management System Plan
Activity 1: Assign Implementation Teams
Activity 2: Define What will Be Done with Surplus People
Activity 3: Assign a Project Manager to All Stand-Alone Projects Starting in the Next 6 Months
Activity 4: Measure and/or Define the As/Is Status
Activity 5: Form and Train the Implementation Project Teams and the Subproject Team Members
Activity 6: Conduct an Organizational Change Management Assessment And Develop Appropriate Mitigation Plans
Activity 7: Train the People Who are Impacted By the Change
Activity 8: Implement the Change
Activity 9: Conduct Phase IV Tollgate
Phase V: Measure the Results
Activity 1: Define What Measurement Should be Affected by Each of the Lean Management System
Activity 2: Define What, Where, and How Improvement will be Measured
Activity 3: Define How Changes in Behavioral Patterns will be Observed
Activity 4: Develop and Implement the Reporting System
Activity 5: Train the Related Personnel in How to Collect Data
Activity 6: Collect and Analyze the Data
Activity 7: Conduct the Phase V Tollgate
Activity 8: Reward the Installation and Lean Management System Teams Based on Their Impact
Phase VI: Continuous Improvement
Activity 1: Sustaining The Gains
Activity 2: Ongoing Improvement

The Need for Facilitation
In a Nutshell
What is Facilitation?
Some Basic Definitions
When Facilitation is Appropriate
Overview of Competencies and Characteristics
Where Do You Stand as a Facilitator?
What Specifically Comprises The Process of Facilitation?
Encouragement and Praise
Giving Feedback
Nonverbal Communication
Group Dynamics and Development
Simplify the Complex
Plan for, Structure, and Control Meetings and Lean Events
Provide a Safe Learning and Working Environment
Help People See and Understand
Help People Gather and Analyze Information to Drive Operational Improvements
Only Collect the Right Important Data
Be Concerned About Reliability and Validity
Get Help
Help People Make Decisions
Collaboration and Consensus
Force Field Analysis as a Powerful Tool
Multivoting as a Simple Technique for Helping A Team Reduce a Large Number of Ideas
Eliminating Non-Value-Added Activities
Focus on Process
Achieving Pull and Flow
Striving for Zero Defects

Facilitating Lean Management Systems (Developing A Lean Culture and Change Management Environment)
In a Nutshell
Lean Culture Development
David Mann’s Lean Culture
Change Management
Managing Transitions Model
Process of Transitions
Helping Others to Change
Managing Complex Change
Facilitating Lean Management
The Facilitators Guide to Lean Management
Organizational Levels and Alignment
The Organization as a System
The Processing System Hierarchy Model
The Organization as Systems Thinking
Approach, Deployment, Learning, and Integration
Dmaic Roadmap
Leader Standard Work
Daily Accountability Process
Visual Controls
Some Tools to Facilitate Lean Management System Annual Improvement Projects
Use of Project Charters
Project Selection Matrix Template
Quality In Daily Work Accountability

Epilogue: The Shadow of the Leader in A Systems Thinking Environment

Customer Reviews