Approaches for Analysis of Management Activity for Theory Building and Principles Development

Approaches to Management Analysis

(List given by Heinz Weihrich, Mark V. Cannice and Harold Koontz, 13th Edition, McGraw Hill, 2010)

Empirical or Case Approach

Studies management activity through case studies. Identifies successes and failures. Develops principles from it. We can now says it is case study research approach. Ernest Dale was the pioneer of this approach.

Managerial Roles Approach

Mintzberg used this approach to describe management activity. The original study consisted of observations of five chief executives. Ten managerial roles were identified and grouped into interpersonal, informational, and decision roles.

Contingency or Situational Approach

Contingency approach develops principles that include well defined situations, and different managerial actions appropriate to each situation to get the desired result. Hence in this approach to get a desired result, multiple input variables are identified and one of them is appropriate for a specific defined situation.

Kenneth Blanchard popularised this approach.

Mathematical or Management Science Approach

Mathematical approach is more popularly known as operations research or management science.  Theory in this approach is specified through mathematical formulas and functions. Optimization is the special contribution of this approach.

Decision Theory Approach

Focuses on the making of mana decisions and decision-making process. It also focuses on persons and groups making decisions.

Reengineering Approach

Concerned with process analysis and radical design based on new technology developments.

Systems Approach

Systems approach defines systems with boundaries within an environment and also subsystems within the system.

Sociotechnical Systems Approach

Based on the premise that technical system has a great effect on social system (personal attitudes and group behavior)

Cooperative Social Systems Approach

Examines both interpersonal and group behavioral aspects leading to cooperation in systems.

Group Behavior Approach

This approach is based sociology and social psychology. Primarily studies group behavior.  Organizational behavior is a part of this approach.

Interpersonal Behavior Approach

Focuses on interpersonal behavior especially leadership and motivation. It is based more on individual psychology.

McKinsey's 7-S Framework

7-S framework explains management in terms of 1. Strategy 2. Structure 3. Systems 4. Style 5. Staff 6. Shared values and 7. Skills

Total Quality Management Approach

Focuses on providing products or services that are fit for use and thus satisfy customers.
Deming, Juran and Crosby are the leading advocates of this approach.

Management Process or Operational Approach

This approach distinguishes between managerial and non-managerial knowledge. Explains management around the functions of management. These functions are specified differently by different authors. Koontz specified them as planning, organizing, staffing, leading and controlling.

Henri Fayol is the father of this approach


14 April 2014

Scientific Management Approach needs to be added to the above list. It is a significant omission by Koontz et al.

Scientific Management Approach

Scientific management approach is based on experiments either laboratory type or field type and developing principles based on the data collected from experiments to organize work either of equipment or men and man-machine combinations

A New Approach now needs to be added

Lean Management

Scientific management applied in Toyota Motors resulted in the development of lean management approach. It is basically a further development in the tradition of scientific management and its emphasis on efficiency.

What is a Lean Enterprise?

A lean enterprise is a high productivity enterprise.  Lean enterprise gives equal emphasis to effectiveness and efficiency.

Effectiveness is providing goods and services that customers value.

Efficiency is producing goods and services that customers value at a cost that gives profit to the organization.

Profit  = Value to the customer (Price to the producer) - Cost of production.

A lean enterprise simultaneously focuses on  product enhancements that increase value to the customer and product value engineering and production methods efficiency engineering to reduce the cost of production.


Definitions and Explanations by others

What is a Lean Enterprise?
A Lean Enterprise produces more with existing resources by eliminating non-value-added activities. To be competitive in today’s global economy, companies must work to eliminate overproduction caused by traditional scheduling systems and only make what customers want when they want it. Lean establishes a systematic approach to eliminate wastes, create flow, and develop and implement a long-term plan to streamline your operations for success. Begin a Lean Enterprise Transformation by learning to see your business as one integrated set of processes and then systematically eliminating waste across your entire company – from shop floor to front office.

https://www.lift.org/processlean.php







What is a Lean Enterprise?
Taiichi Ohno, the founder of the Toyota Production System, defined it this way: “All we are doing is looking at the time line from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that time by removing the non-value-added wastes” (Ohno 1988). This is a simple and efficient explanation of a complex system and culture.

A lean enterprise applies TPS principles to all aspects of its business.

Customer Focus – Only the customer can define the value of our product or service. All else is waste.
Eliminate Waste – Waste is anything that the customer does not need and will not pay for. All employees must be empowered to eliminate waste.
Improve Flow – Small amounts of product or service moving quickly according to customer demand. Customers will pay for time.
Quality “Built-in” to Processes – Make it right, instead of inspecting later
Respect for People – Develop your people and your partners.
Continuous Improvement – No amount of improvement is ever enough.

http://www.cavse.msstate.edu/outreach/lean/


BECOMING LEAN ENTERPRISE: THEORY AND CASE STUDIES

Industrial Engineering Knowledge Revision Plan - One Year Plan

January - February - March - April - May - June

July - August - September - October - November - December

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.”

http://www.industryweek.com/lean-six-sigma/six-qualities-lean-leadership?page=2

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)

Tuesday

Communication
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

Wednesday

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
Observation
Principle of 'Go-See'
Gemba Walks
Review LSW, VMS, and A3

Thursday

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
http://isd.engin.umich.edu/professional-programs/lean-leadership/index.htm



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
http://www.epa.gov/lean/government/pdf/lean-leadership-guide-final.pdf

Leadership's role in lean transformations
http://dmannlean.com/pdfs/The%20Missing%20Link_Lean%20Leadership_DWMann.pdf

The 18 Principles of Lean Leadership
http://www.velaction.com/the-18-principles-of-lean-leadership/

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

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.


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

Lean System Implementation - Facilitating and Impeding Factors

2007

 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
methods.
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                                
5S,                                                            
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

Source:
IMPEDING AND FACILITATING FACTORS IN THE IMPLEMENTATION OF
LEAN ENTERPRISE METHODOLOGY

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

BECOMING LEAN ENTERPRISE: THEORY AND CASE STUDIES  - Course Study Materials

                                  
           

Lean Management by CEOs

Lean is strategic issue. Efficiency is strategic issue. Lean Management is creating value for the customer efficiently. That is the definition of management given by Koontz and O'Donnell. But it is Toyota's manager who really proved by becoming world class company giving great quality at a lower price and beating the great American companies.

If lean is strategic, the CEO must understand it. He has to embrace it. He has to put it into his organization. He has to organize lean production facilities which are mainly cells that can produce multiple products in a continuous flow. He has to organize a lean supply chain. He has to direct his organization to follow lean practices. Of course, he has to ensure the directions and plans are being followed. Control system to ensure lean, value creation and efficiency are there.

There are some CEOs explaining their involvement in successful lean transformations.


TRU-TEST CEO DESCRIBES LEAN TRANSFORMATION
Tuesday 18 February 2014
http://www.intentgroup.co.nz/tru-test-ceo-describes-lean-transformation/

Lean is the Strategy
Art Byrne | 1 January 2013
http://www.leanceo.com/lean-is-the-strategy/

Interview with Ary Byrne - CEO Lean Implementer
Author of the book - The Lean Turnaround
2012
_____________

_____________


Value Adding Lean CEO - Presentation by Art Byrne
http://www.lean.org/downloads/Byrne_slides_cm3.pdf


The Lean CEO Must ‘Lead by Example'
In the book,  The Lean Turnaround, Art Byrne stresses the importance of the Chief  Executive
involvement for lean transformations to be successful.
http://www.tbmcg.in/misc_assets/newsletter/OpEx_0213_Book_Review_The_Lean_CEO.pdf


The Lean CEO Effect
There's a big difference between CEOs who engage in lean and those who simply encourage it.
Oct. 17, 2012
Jonathan Katz | IndustryWeek
http://www.industryweek.com/companies-amp-executives/lean-ceo-effect