THE LEAN ENTERPRISE by MBB Michael R. Büchler

THE LEAN ENTERPRISE
by
Master Black Belt Michael R. Büchler

Lean Enterprise I Content
What is Lean?
Case Study „Lean“
Why Lean?
House of Lean
Summary

Lean is a sleek and simple flow of service processes;
• Value Description; customer perspective in terms of product and service.
• Value Stream Mapping; mapping transitions - highlighting hidden bottlenecks.
• Definition of the Flow; product, service, and information from beginning to end.
• Implementation of the Pull; demand based on customer signals.
• Perfection; complete elimination of waste using continuous improvement activities.
Lean management is not only to optimise processes more over a philosophy of
driving a leaner organisation and aim for operational excellence.
What is Lean? I The Goals of a Lean Enterprise

Lean Case Study I Lean Management Institut (LMI)
771

Companies
Around
The World
Small

To Big
Source; Abegglen Reoprt – (Lean Management Studie 2009)

Top 93 %
Worst 70 %
!
Usage of Lean
Top vs. Worst

57%
Companies Lean Usage
23%
None Lean Usage
20%
Planned Lean

EBITDA per employee lies at top performers
by 300% versus the worst-performer

Inventory performance compared to the worst-performers
leads to a 50% less capital tied up in inventory.

Employees of top performers annually generate nearly twice
as many suggestions as those of all other performance.

The implementation rate of improvement proposals lies with
top performers at 70%, with all other performance groups
between 45 and 55%.

80% of the top performers realize organizational
improvements with little or entirely without investment - even
though they have been generally realized "low hanging
fruit" in the area of improvement and optimization tasks are
facing greater lean.

A project is predominantly is viewed as a one-time event, resulting
in a project-oriented and trade-specific approach
Core Problems
Attitude of Project Uniqueness
Project thinking instead of process thinking Insular thinking of global approach

Project thinking prevents the development of a standardized project
approach based on processes
Major effects of project thinking
Project thinking
Insufficient
synchronisation
of participants and
processes
Inadequate
progress
monitoring and
control

Insular thinking of individual trades leads to avoidable frictional losses during
planing and building
Effects of insular thinking
Insular thinking
Inadequate interface
communication
Lack of
transparency
regarding overall
project status

Why Lean?
Learn from the past and adopt best practices,
Study and adopt from diffrent industries,
Adapt Lean to your industry,
Introduce, drive, live Lean to become a,
Lean Enterprise - Your Enterprise.

House of Lean I The Architecture / Elements
!!
P U R S U I TP U R S U I T
R E S U LR E S U L T ST S
P R I N C I P L E SP R I N C I P L E S
M E T H O D O L O G I E SM E T H O D O L O G I E S

House of Lean
Operational
Excellence
CustomerValue
Lean thinking / Management
WASTE
STANDARDISATION
EMPOWERTEAMS
DELIVER -TO - PROMISE
TransparencyPerfectionResults
Persuit
Principles
Methodologies
KAIZEN / CONTINUOUS IMPROVEMENT
BEST OF INDUSTRIES
5S
JUST IN TIME / 5R
FLOW TAKT PULL ZERO DEFECTS

KAIZEN I Continuous Improvement
EXECUTEPLAN REVIEWIDENTIFY
Continuous Improvement
The (self-) reflection of
processes / products
and to identify and
reduce of suboptimal
processes / waste or
identify improvements is
the core principle.
Employee suggestion
system will be used for
incremental
improvements based on
the employees
knowledge and
experience
Analyze, valuate and
prioritize the identified
potentials for
improvements. !
Develop how to optimize
the processes or
products in more
incremental, continual
steps rather than giant
leaps (Evolution)
Implement the
developed concept to
achieve the
improvements.
Ideally measure the
provemeim nts,
communicate the
results and reward the
suggestions.
Evaluate the
effectiveness of the
execution and see if it
created any
unanticipated results or
side effects.
Create a learning
organization/teams
and a continuous
quality assurance
processes through
each employee.
Ensure an adequate
change
management.

House of Lean I Just in Time & 5R Systems
JIT 5R
Align! Harmonize!
!
Pull what
you need
Improve
and
stabilise!
Just In Time =
Right Part
Right Place
Right Quality
!
Right Amount
Right Time
FLOW TAKT PULL
ZERO
DEFECTS

House of Lean I Empowered Teams
Respect Encouragement Challenge Flexibility Leadership
Deﬁne Team
Goals
Setting
Information
Setting
Boundaries
Give Advise
Developing
skills through
coaching
!
Have idea of the
‘bigger picture’
which helps to
understand limits
and constraints.
Channeled efforts
to appropriately
and confidence
work.
Look for advice
and seek for
feedback.
Coach
people to learn
challenging their
assumptions.
Results-orientated
goals give freedom
to define own tasks,
as well as a clearer
understanding.

House of Lean I Best of Industries
In order to solve the core
issues, successful solutions
from other industries
should be adapted.
Automotive
Industry
Service
Industry
IT
Industry

House of Lean I 5S System
• Sorting the useful
from the
unnecessary.
!• Parts, tools, and
instructions
needed to do the
job.
• Everything has a
place; everything
is in its place.
!• Create a Visual
Scoreboard, floor
paint, and other
visual controls.
• Do an initial
“spring” cleaning,
!• washing, rinsing,
scrubbing, and
whatever else is
needed to make
your work place
shine.
• Sorting the useful
from the
unnecessary.
!• Preventative
maintenance is
routinely
performed.
• Root causes are
routinely
identified and
dealt with.
!• Work Audit are
very familiar to
everyone.
Sort Set in Order Shine Standardise Sustain

House of Lean I Deliver to Promise
VisionTargets
Customer
&
Employees
QUALITY
PROFESSIONALISM
PARTNERSHIP
EFFICIENCY
FUTURE-ORIENTED MINDSET
OUR VALUES
PROMISE WHAT YOU CAN DELIVER,
ON-TIME WITHE ZERO DEFECTS .
ASSURE BEST PRACTICES, PRODUCTS
& SERVICES FOR ITS DELIVERABLES
DELIVERCONTROLPROMISEASSURE

House of Lean I Waste Elimination
Value-
Adding
Not Value-Adding
with
Obvious Waste
Not Value-Adding
with
Hidden Waste

The Seven Waste I Different types of waste can be found nearly everywhere
Transportation
Waiting
Defect
Motion
venIn tory
Over Production
Over Processing

House of Lean I Standardise
Standardisation is the Way to Sustain the Kaizen Gains and Increase Efficiency
Without
standardisation,
all made
improvements will
roll back with time….
INVENTORYPRECISIONPROCESS
Continuously
increase the
level of
standardization
of technologies
in our services
and products.
The precise
work
sequence in
which an
operator
performs tasks
within takt
time.
Well
developed
and improved
processes
must become
standard
procedures.
IMPROVEMENT

Lean is the Management System of Objectives & Exemptions and follows;
• Lean Thinking; Awareness & Education and a Common Mindset
• Lean Operations; Methodologies & Principles in place 
• Lean Culture; Lean is embodied by the organizations 
Lean is not only to optimize processes more over the philosophy of driving a leaner
Enterprise, Organization towards Operational Excellence!
Summary

THE LEAN ENTERPRISE by MBB Michael R. Büchler

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