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TPS v LEAN

Knowledge Management V TPS, LEAN, Six Sigma Common, Conflict or Complementary? Jon Hayward-Wright KMLF 30 April 2014. TPS v LEAN. TPS – Toyota Production System, a collection of tools, methods, brought together into a single framework / system.

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TPS v LEAN

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  1. Knowledge ManagementVTPS, LEAN, Six SigmaCommon, Conflict or Complementary?Jon Hayward-WrightKMLF30 April 2014

  2. TPS v LEAN • TPS – Toyota Production System, a collection of tools, methods, brought together into a single framework / system. • TPS did NOT invent many of these items, the “magic” was bring them together and integrating them into one system. With 5 key objectives:- • Specify what creates value from the customers perspective • Identify all the steps along the process chain • Make those processes flow • Make only what is pulled by the customer • Strive for perfection by continually removing wastes • LEAN – a term that was “invented” by Womack, Jones & Roos in their book “The Machine That Changed the World” that explained in general terms the TPS philosophy's .

  3. LEAN v Six Sigma LEAN --- (TPS) Six Sigma --- (SPC) Reduces variations (lifts repeatability) Improves Quality Reduces “compounding” errors. Seeks to optimise process steps. Focuses on the customer. • Removes Waste • Reduces Cycle Time (increased speed) • Promotes Process re-design to remove non-value adding steps. • Fixes connections between process steps. • Focuses on the customer. SPEED + ACCURACY = (BETTER Delivery & Quality)+(SATISFIED Employees & Customers)

  4. How long have they been around? Use of LEAN (TPS) Six Sigma (SPC)

  5. Activity Part 1 • Write on separate POST-ITS any similarities OR differences you believe exist between :- • LEAN/Six Sigma AND Knowledge Management (KM) Part 2 • Read the following question and write your answer on ONE POST-IT. • “What action/change is impossible today, which if by some magical means you could achieve, would totally change the world of KM forever!”

  6. “The basic economic resource is no longer capital, nor natural resources, nor labor. It is and will be knowledge.” Peter Drucker “What Drucker failed to say was…..it has to be the RIGHT knowledge!

  7. So what does the “?” really represent? Non Value Adding Value Adding ? Value Creating ?

  8. Exponential Growth in “Knowledge”? • By the year 2020 “knowledge” will double every 73 days or less…………….. • but what is the RIGHT knowledge? • World Wide Web is doubling every 90 days……………. • With who…….customers?......partners? Or noise? • Moore s Law - The power of silicon technology doubles every 18 months. • Faster……..more “speed” but what about the quality? • Metcalfe s Law - The value to those connected to a network increases by n square. • Does it?...........only if the information is “processed” into “knowledge” which supports / promotes a “change” in something?

  9. What is Knowledge Management? • The systematic process of creating, maintaining and nurturing an organization to make the best use of the available knowledge to create business value and generate competitive advantage.

  10. The belief is Knowledge Workerswill :- • Dominant group of workers in the 21st century. • Will we need that many?......what do the rest do? • Specialists with job-specific skills. • Require multiple, continuous learning opportunities to maintain their specialized knowledge?......from where? • Have significant formal education or formal training. • From where? Who will pay…? In what? • Are self-directed learners & workers • Focused on what?........more “knowledge” or noise?

  11. What does it take to get these working? KM LEAN / Six Sigma 20% “Technology” 80% Cultural Support from “leaders” Accepting “process improvement” as the right focus. Organisational barriers to change. Mistakes as a learning. Commitment of the many to support the few. • 20% Technology • 80% Cultural • Behaviour of leaders • What type of “learnings” are valued • Organisational structure • How are mistakes handled • Reward & Punishment • What “value” on info. sharing

  12. KM and Lean are Symbiotic KM helping LEAN LEAN helping KM An enterprise committed to LEAN enables/seeks Data -> Info. -> Knowledge processes. Helps identify and champion “knowledge” gaps. LEAN events provide opportunities for knowledge transfer. Focus is on “valuable” information & how this creates customer centric value. • Drawing out the knowledge of “productivity”. • KM focus on the “flow” of knowledge. • Enables continuous learning. • Enables transfer of process/systems knowledge, common understanding.

  13. Barriers to Success

  14. Preserving “Invisible Equity” Typical Balance Sheet when “Invisible Equity” included Assets Finance Current Liabilities Non Current Liabilities Visible Shareholder Equity Invisible Equity 1.99 1.98 Current Assets Non- Current Assets 3.58 8.95 LEAN 10.93 5.38 KM 3.12 Market Value $14.05 Billion • The “Invisible Balance Sheet” • Management Value-Add

  15. So what's the future for…… • LEAN (TPS) • Used outside of manufacturing. • YES but caution is needed, • Dis-assembly of the basic’s will alter the “value”. • “Sustainable LEAN” now stands for:- • L = Leadership • E = Engagement • A = Accountability • N = Nurturing. • KM • Time has yet to come, needs to define and sell its “value” from the customers viewpoint?

  16. What do you think?

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