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To what extent should management be involved in Lean implementations?

To what extent should management be involved in Lean implementations?. Sam Tomas. 1. Some Individual Processes Required To Run a Company. Forecasting and SWOT Analysis. Setting Strategy & Goals & Objectives. Budgeting and Asset Allocation. Marketing. Sales. Manufacturing. Order Entry.

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To what extent should management be involved in Lean implementations?

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  1. To what extent should management be involved in Lean implementations? Sam Tomas 1

  2. Some Individual ProcessesRequired To Run a Company Forecasting and SWOT Analysis Setting Strategy & Goals & Objectives Budgeting and Asset Allocation Marketing Sales Manufacturing Order Entry Order Scheduling Procurement Inspection and Quality Control Order Fulfillment Packaging Warehousing Shipping Distribution Supply Chain Activities Product Design and Development Maintenance Service and Warranty Human Relations Finance and Accounting Sam Tomas 2

  3. Examples of Potential Core Processes • Strategic planning • Developing new business • Respond to customer needs • INNOVATING NEW PRODUCTS • Introducing new products • Product design and development • Quality improvement • Cost control • Delivery control • Sales • MANUFACTURING • Purchasing • Order obtainment • Order fulfillment • Marketing • Aftermarket service • supply chain • Customer service • Information control • Personnel Development • Warranty… etc. Sam Tomas 3

  4. Order Fulfillment Departments Sales Generate Sales Submit Orders Accounting Check Credit Approve Credit Release Order Purchasing Purchase Material Cross-functional communications difficult. Receiving Receive Material SILOS Production Produce Assy A Produce Assy B Produce Assy C… ASSY Product Quality Quality Assurance Typical customer complaint: No one person is in charge of the entire group of processes. Packaging Product Packaging Shipping Product Shipping Accounting Invoicing Customers Sam Tomas 4

  5. Improvement Choices Reengineering (BPR): Re-designing processes Organizational Agility: Being quick and well coordinated Organizational Flexibility: Ability to rapidly accommodate different requirements Lean: Improving Efficiencies of Core and Non-core Processes Information Technology: Making operational information available as needed Six Sigma: Reduce Variability & Defects to Improve Product Quality Identifying and Solving General Generic and Systemic Problems Innovation: Ability to rapidly provide new products and services Supply Chain Management: SCORE Model Rapid Product Design and Development Employee Skills Simplify Business Complexity Sam Tomas 5

  6. To Be Competitive: Boldly Go Where No One Has Gone Before! Sam Tomas 6

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