Lean (TPS) Process
Steps of the Lean/TPS Process
- For increasing efficiency, the first step is the assessment of the different types of wastes and improvement opportunities. There may be some obvious wastes but for a thorough understanding of the situation usually there is need for observing and documenting the real work processes, making a value stream map. Thus the value added and the non-value added tasks are identified, these are explained and thus accepted.
- After assessing the present situation the next step is setting the objectives.
- This is followed by working out the action plans that lead to these objectives.
- The fourth step is testing and implementing the actions. This proves to be the most difficult, most touchy task. However, with the deliberate and conscious application of change management methods we can avoid the alienation of employees or an unnecessary rise in their stress level.
- Follow-up of the actions, measuring the results.
- After the communication of the results and actions, based on the feedbacks of the people affected, carrying out subsequent actions, in line with the philosophy of continuous improvement.
Concordia's Specialty
We combine the implementation of lean management with our 25-year organizational development and change management experiences, which results in:
- involving people,
- gaining their commitment,
- developing their need for continuous improvement,
- developing the skills necessary for the application of lean management philosophy and practices,
- sharing the lean (TPS) principles and practices that have already proved their contribution to success, adjusted to the present culture and circumstances of the organization.
This guarantees that the changes will be permanent and the initial enthusiasm leads to measurable and sensible results.
Does the Organization Really Follow Lean Principles?
One of the most renowned American lean specialist, J. K. Liker - whose best-seller, "The Toyota Way" will be published in Hungarian by Concordia and HVG Publisher in September 2004 - asks the question: "Why do companies often think they are lean - when they aren't?". In the May 2004 issue of Harward Business Review Professor Steven J. Spear states: "Many companies have tried to copy Toyota's tools as opposed to its principles; as a result, many have ended up with rigid, inflexible production systems that worked well in the short term but didn't stand the test of time. Recognizing that TPS is about applying principles rather than tools enables companies (...) to tap into its sources of success." (Steven J. Spear, HBR 2004, "Learning to Lead at Toyota")
In the same study two companies were mentioned as examples to follow:
- The University of Pittsburgh Medical Center, where have been huge improvements in the quality and efficiency of medication administration and delivering better quality care to patients through the application of lean principles, and
- Alcoa, (a corporate enterprise, present in a wide range of activities from bauxite mining through metallurgy to manufacturing airplane components), who claims that its Alcoa Business System (ABS, based on the TPS rules) saved the company $1.1 billion from 1998 to 2000, the first years of the introduction of lean principles, while improving safety, productivity and quality.
In view of the latter, we are especially proud that Székesfehérvár-based Alcoa-Köfém Présmű Kft. has chosen Concordia for providing external OD-support for its lean introduction European pilot program. Between 2000 and 2002 we contributed to the success of the program by organization development programs, change management and skills development programs, and executive coaching. The then Alcoa lean (APS) director joined our consultant team in 2007.