March 24, 2014

BECOMING LEAN ENTERPRISE: THEORY AND CASE STUDIES - Management Development Programme at NITIE, Mumbai, India


About the Programme

In lean enterprises new product and process innovations are accompanied by product and process efficiency innovations. Lean enterprises are committed to the economic principle that states market decides price of a new product or existing product. Profit is earned by cost reductions due to efficiency improvement. Lean enterprise model was demonstrated to the world by Toyota which excelled in both technology innovation and technology efficiency engineering. The excellence was visible in all functional areas. Toyota system was explained to others by Taiichi Ohno, a production manager and Shigeo Shingo, an industrial engineer. It was explained to the western audience by MIT research team. Today many companies of the world have embraced lean enterprise principles.  It is confrontational global competition now and firms who do not make efforts to implement world class management practices will find it difficult to sustain their market shares. The programme provides an understanding of the theory of lean enterprise supported by various case studies from the literature.

Objectives of the Programme:

The participants will:

appreciate the importance of lean enterprise concept
get conversant with principles of lean enterprise
become aware of implementation in various companies through case studies.


  • Toyota lean enterprise system (Descriptions by Taiichi Ohno, Yasuhuri Monden, and Jim Womack and Dan Jones
  • Lean system design - Principles and Action Plan Proposed by Shigeo Shingo (Celebrated Japanese Industrial Engineer) and  Jim Womack and Dan Jones (Lean Thinking Specialists) 
  • Toyota style industrial engineering (Taiichi Ohno and Shigeo Shingo)
  • Total productivity management (Japan Management Association)
  • Lean manufacturing
  • Lean product design
  • Lean supply chain design
  • Lean marketing and retailing
  • Total industrial engineering ( Prof. Yamashina - World Class Manufacturing Consultant)
Programme Brochure:

For Whom Meant

Operating executives in manufacturing, product design, supply chain, marketing and industrial engineering departments/functions.

Venue: NITIE
Duration: 5 days
Starts on 19.May 2014
Ends on  23 May 2014
Faculty: Dr. K.V.S.S. Narayana Rao, Professor, NITIE
The Programme is listed at number 40 in the NITIE MDP  Brochure:

The programme can be offered as a company based programme or unit based programme in the premises of a company with 25 persons as participants in the batch. If you are interested, please send an email to kvssnrao55  at the rate

Prof K.V.S.S. Narayana Rao is a graduate in mechanical engineering, post graduate in industrial engineering and doctorate in capital markets, with professional experience in manufacturing industry and stock broking industry. His academic involvement includes areas: basics of industrial engineering, strategic aspects of industrial engineering, lean management and thinking, logistics management, inventory control, cost management, management accounting, engineering economics, production planning and control, operations research, financial accounting, cost accounting, security analysis and portfolio management, financial management and mergers acquisitions.  He has addressed recently Tata Steel executives on the topic Lean Management for Productivity Enhancement.

Prof Rao brings a multidisciplinary approach in his training programmes combining engineering, management, economics, accounting and finance. He is also involved in teaching research methodology and review of research in management at the PhD level. He is also a renowned blogger on management and industrial engineering.

The details of fee etc. for unit based programmes are also given in the NITIE MDP Brochure:

Related materials

Lean Thinking - James Womack and Daniel Jones - Book Summary

Lean Enterprise - Management Companies - Case Studies

The Lean Enterprise: From the Mass Economy to the Economy of One (Google eBook)
Alexander Tsigkas
Springer, 04-Aug-2012 -  283 pages

The book is divided into three parts.

Part I. The Rising economy of “one” gives an overview of what is changing in the system of production, it refers to the weakening role of central planning and the rising power of individuation in the value creation chain.

Part II. Lean Enterprise in theory refers to the principles of lean thinking.  It presents a practice proven method for achieving a lean integrated demand and supply chain and analyses in detail the related implementation steps. Criteria for a successful transformation of a company into a lean state are presented.

Part III. Lean Enterprise in practice provides a number of implementation cases in different types of production companies using the method presented in Part II. The goal is to help the reader comprehend how the method can be applied to real lean implementation situations in resolving various issues, ranging from production to the supply chain.

The Elusive Lean Enterprise
Keith Gilpatrick, Brian Furlong
Trafford Publishing, 2004 -  - 272 pages
The Elusive Lean Enterprise was written by Lean Enterprise Consultants who provide candid discussion regarding the difficulty companies are likely to have implementing the dynamic process improvement program.

Lean Enterprise Resources in ITC Library

Industrial Engineering Knowledge Revision Plan - One Year Plan

January - February - March - April - May - June

March 8, 2014

Lean Leadership Principles

Hoshin Kanri - Policy Deployment or Implementation - Customer Focus, Aligned goals on levels.
Importance of Gemba - Shop Floor or Work Place - Shop floor based management - Decisions based on first hand knowledge
Qualification - Long Term Development of Employees - Continuous learning
Improvement Culture - Striving to perfection, Accepting  failure as a possibility to improve
Self Development of the Leader - Lean leaders are role models - New leadership skills are necessary and they have to acquire them

Lean Leadership – Fundamental Principles and their Application
U. Dombrowski, T. Mielke
Procedia CIRP
Volume 7, 2013, Pages 569–574
Forty Sixth CIRP Conference on Manufacturing Systems 2013

Related Reading
Principles of Management – Koontz and O’Donnell

Six Qualities of Lean Leadership - Lonnie Wilson

The new model of leadership - lean leadership. -  The Japanese have been using it for 65 years -- lean leadership.

It has six basic qualities, which are:

Leaders as superior observers: They go to the place of  action (gemba ) -- to observe not only the machines and the products but also to interact with the employees and observe their activities. They also are in contact with their customers. They have in abundance, the ability to be an empathetic listener. They listen to their employees, customers and suppliers.

Leaders as learners: They do not assume they know it all. They are in “lifelong” learning mode.

Leaders as initiators: They plan, they articulate and sell their plans, and they act on their plans. They are not risk averse. They are not cavalier.

Leaders as teachers: They are “lifelong” teachers. They teach and train their associates. When something goes wrong, their first thought is not “Who fouled up?” but “Why did it fail?” and “How can I use this as a teaching opportunity to support root cause analysis?”

Leaders as role models: They walk the talk. There is no substitute for this. NONE.

Leaders as supporters: They recognize they have get work done through many others, so they have mastered the skills of “servant leadership.”

Lean Leadership Program - University of Michigan

Overview of Lean Leadership
Lean versus traditional management approaches
Elements of Lean management
Five needs of every leader

Introduction to standard work
Organizing and Planning
Leader Standard Work (LSW)


The communication process
Sending mixed messages
Effective communication skills
Barriers to communication
Effective meeting skills
Visual Management Systems
Elements of a comprehensive Visual Management System (VMS)
Introduction to A3


Trust & Motivation
Respect for others
Johari Window
The Personal System (Attitudes, Moods, Beliefs, Competencies, Values, Goals)
Maslow's Hierarchy of Needs
Herzberg's Job Enrichment Principles
Principle of 'Go-See'
Gemba Walks
Review LSW, VMS, and A3


Providing Direction I

Conflict response modes
Levels of direction
Job relations
The Socratic Method
Job instruction
Handling difficult people

Providing Direction II

Job Methods (JM), PDCA
Introduction to Improvement Kata
Introduction to Coaching Kata
A3 presentation and coaching

Eight Critical Steps for Lean Champions
1. Choose where to focus your improvement efforts
2. Define process excellence and set clear goals
3. Actively participate in process improvement events
4. Assign staff and resources
5. Provide visible support for process improvement efforts
6. Monitor progress and hold people accountable
7. Clear obstacles to successful implementation
8. Recognize and celebrate accomplishments

Leadership's role in lean transformations

The 18 Principles of Lean Leadership

March 4, 2014

Becoming Lean Enterprise - Action Plan - James Womack and Dan Jones

In their book, Lean Thinking, in chapter 11, Womack and Jones gave an action plan for becoming lean enterprise. Becoming lean enterprise starts with implementing lean production and proceeds to lean design, lean supply chain and lean sales order taking and delivering.

The Major Steps

Getting Started to Implement Lean Production

 Creating an Organization based on Product Families Flow Systems (Value Streams)

Installing Systems to Encourage Lean Thinking Among All in the Organization

Completing the Transformation

Results Expected from a Five Year Journey

The Next Leap - Next Five Year Plan

Getting Started to Implement Lean Production

   Finding a Lean System Manager - Change Agent
   Acquiring Knowledge of Lean Production and Lean Enterprise
   Finding the right location to start the lean activity
   Chart the Process Flow - Value Stream Map, Flow Process Chart
   Identify Improvement Areas
   Deliver Measurable and Visible Results
   Expand scope to more activities

 Creating an Organization based on Product Families Flow Systems (Value Streams)

Installing Systems to Encourage Lean Thinking Among All in the Organization

Completing the Transformation

Results Expected from a Five Year Journey

The Next Leap - Next Five Year Plan

March 1, 2014

Core Beliefs of Lean System - Enterprise - Proved in Many Implementations

Belief in SMED

Workers can be trained to do all activities in a work cell and also some more activities in other cells.

The entire material flow system (value stream) can function with near zero level safety stock.

Flow systems can be created with right sizing equipment and tooling and the equipment can be easily moved and reconfigured.

The cost of creating a flow system can be recovered by elimination of extra resources used in batch and queue systems.

Equipment can be made to be reliable. Its availability can be increased.

Defects can be eliminated. Poka Yoke is effective in eliminating defects. Self inspection and successive inspection are effective.

Operations personnel are capable of performing such additional functions as inspection, equipment changeover, maintenance, methods improvement etc; effectively and efficiently.

The demand can be reasonably leveled and satisfied through just in time production.

Transitioning to a lean enterprise: Guide to Leaders, Volume I

Lean System Implementation - Facilitating and Impeding Factors


 Success Rates

Liker (1998) observed only three in seven firms attempting a transition to lean methods experienced any degree of success. According to Rubrich (2004), recent studies have shown, of the firms that claim to be lean, only five percent are truly lean. It shows that many firms have to know more and implement more changes in their systems.
It is important to note that Womack and Jones said, lean system implementation could be two steps forward and one step backward situation. So company must be prepared for temporary failures in many areas, but they have to persist to understand the system, come out with alternative and work toward success.

Training for Lean Systems

Blanchard & Thacker (2004) stated language is an important element of training. Unfamiliar terminology must be defined prior to beginning any intensive training program. Based on a study by Ragan & Smith (2005) the use of an agreed-upon and familiar language is critical and should be addressed at the onset of a training program. This issue has to be addressed as an important part of lean training programs and in the early part of the training program, the terminology is to be defined and explained adequately to participants.

Change Management
Bridges (1991) identified four key elements of change management which he calls the ‘four p’ method. These elements are as follows:
• Plan the change
• Explain the Purpose
• Paint a picture
• Give everyone a Part to play

Planning the change and explaining the purpose are critical in the process of  becoming a lean enterprise. Explaining the purpose of a lean transformation may decrease fear and resistance. Planning the change also includes clarification of terms and concepts. Neither Bridges nor Standard and Davis address the issue of clarifying terms and concepts. However, this critical element of training should not be omitted from the
planning phase of a lean transformation.

The results of the study reported in this post has used  14 interviewee with varied levels of experience and expertise in lean implementation.

Important Results of the Study useful in planning lean training programs and implementations.

Timeline Required for Implementing Lean Methods
Time Required:            Less than 1 year 1 > 3 years 3 > 5 years 5 > 7 years > 7 years Undecided
Number of responses:        1                       1              4                1                2                    5

The modal value is 3 to 5 years. Womack and Jones also talk of 5 years.

Indicators of Success of the Lean Implementation

Response Categories Number of Responses
Increased Profit                 4
Cost of Operations            3
Improved Quality              2
Improved Delivery Times  1
Employee Satisfaction       3
Reduced Cycle Time        1
Inventory Reduction         3
Increased Productivity      3
Sales Growth                   1
Employees Adopt New Philosophy 2
Reduction of waste          1
Improved Space Utilization 1

Add increase in customer satisfaction also.

All indicators fit with theory perfectly. Reduction in waste, increase in productivity and decrease in cost are similar measurements. But they are measured in different ways. Increase in profit also takes into consideration increase in sales and customer satisifaction.

What factors impede the implementation of lean?

The Question or Item  is designed to identify factors that impede the implementation of lean
Impeding Factors
Impeding Factors                       Number of Responses
Lack of Management Support             5
Lack of Understanding                        5
Resistance to Change                         4
Lack of Employee Buy-In                  3
Lack of Reason to Change                3
Lack of Employee Empowerment      3
Poor Communication                         3
Organizational Culture                        3
Lack of Training                                  3
Ineffective Leadership                          2
Traditional Thinking                             2
Bottom Line Thinking                          1
Poorly Planned Implementation            1
Poor Reasoning in Management Deadlines 1
Lack of Effort                                      1

The impediments are lack of understanding in senior management, middle management, first level management and operators. Training is very important for developing understanding.

Based on the understanding a plan has to be drawn.

Organization has to be established.

Leadership and Communication come into play when the plan is to be communicated and implements.

Lack of effort becomes visible during implementation phase and control actions become necessary. Changes always result in minor problems. Management must be ready to identify problems impeding the success and finding solutions.

What factors facilitate the implementation of lean?

Facilitating Factors
Facilitating Factors                                             Number of Responses
Support of Knowledgeable and Effective Leaders    7
Driven by Crisis                                                      4
Dedicated Change Agent                                         4
Employee Ownership and Empowerment                 4
Communication                                                        2
Understanding Theory and Application                     1
5S                                                                           1
Teamwork                                                               1
PDCA                                                                      1
Focus on Quality                                                     1
Visual Controls and Management                            1
Terminating Resistant Personnel                               1
Training in Change Management                              1
Strategic Congruence                                              1
Supplier Involvement                                              1
Customer Involvement                                            1

Important factors are  Support of Knowledgeable and Effective Leaders, Dedicated Change Agent, Communication,  Understanding Theory and Application.                    

Which training topics are most effective in preparing the workforce
for lean methods?

Effective Training Topics

Effective Training Topics            Number of Responses
Change Management                                   1
Kaizen/Continuous Improvement                  3
Problem Solving                                           3
Kanban                                                        2
Lean Principles                                             1
Value Stream Mapping                                 2
5S                                                                4
Visual Controls                                             4
Standardized Work                                       3
Pull Systems/One-Piece Flow                       4
SMED/Quick Changeover                             2
Total Productive Maintenance                       1
Statistical Methods                                        1
Types of Waste                                             2

There are no surprises in the list.

We need to provide training in improvement need, improvement tools and improvement management

Kaizen/Continuous Improvement  - The Need and Benefits

Tools: Problem Solving, Kanban,                    
Lean Principles,                                      
Value Stream Mapping                                
Visual Controls                                            
Standardized Work                                      
Pull Systems/One-Piece Flow                      
SMED/Quick Changeover                            
Total Productive Maintenance                    
Statistical Methods                                      
Types of Waste

Tools: Productivity Problem Solving, Standardized Work, SMED/Quick Changeover,  Lean Principles, Types of Waste

Value Stream Mapping, 5S, Visual Controls,  Pull Systems/One-Piece Flow, Kanban, Total Productive Maintenance,  Statistical Methods

Change Management


A Thesis Submitted to the Faculty of  Purdue University
by  Brian S. Leonard
In Partial Fulfillment of the Requirements for the Degree of  Master of Science
December 2007
Purdue University , West Lafayette, Indiana

All the above research results will be considered and implemented in delivering the training programme
BECOMING LEAN ENTERPRISE: THEORY AND CASE STUDIES - Management Development Programme at NITIE, Mumbai, India