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SCIENCE AND LEAN
TRANSFORMATION

    Daniel T Jones
Scientific Management

   Based on non-existent experiments!
     But the narrative legitimised the
           role of management
 And the role of experts and consultants
  Led to focus on the vertical control of
    resource allocation and utilisation
But ambiguity over incentives, motivation
       and the role of the workforce
      2% productivity growth since
Modern Management

      Peter Drucker articulated the
       role of general management
    Michael Porter and deregulation
     legitimised investor capitalism
Various gurus tried to correlate strategy
   and leadership with performance
   The web giants are not providing
       alternative business models
New insights are now coming from other
           scientific disciplines
Management by Science

     Toyota created a new synthesis: -

    A rigorous way of formulating strategy
               and deploying it
 A rigorous way of defining customer value
 A rigorous way of unblocking the horizontal
            flow of value creation
A rigorous way of establishing standard work
  as the basis for continuous improvement

    Practicing PDCA underlies all of this
A Lean Management System
                                        Direction
 Top                                     Focus                                          Vital Few


                                        Aligning                                            Hoshin




                                                     Function
                                                                                     VS Analysis
End-to-End
                                    Value Stream                                  Lean Projects


                                       Enabling                                             Oobeya

          Stability     Stability        Stability                Stability     Stability
Gemba   Plan/Actual   Plan/Actual      Plan/Actual              Plan/Actual   Plan/Actual    Kaizen
         Problems      Problems         Problems                 Problems      Problems




                                The Value Stream
From What to How?

How do we set direction and develop the
        capacity to change?

How do we define value from the customer
             perspective?

 How do we align different perspectives?

   How do we manage lean projects?

     What is a lean transformation?
Lean Transformation

Solve specific business problems

By developing the capabilities               Solve Business
                                                Problems
                                                “Follow
To improve the flow of work          To
                                                  Me”
                                                                 By
                                  unblock                     develop-
                                  the flow                       ing
Enabled by leaders showing        of value
                                  creation
                                                Go See
                                                              capabil-
                                                                itise
                                               Ask Why &
clear direction and                              Show
                                                Respect
asking questions                 So everyone use the Scientific Approach



Systematic use of PDCA by everyone
                                               After John Shook, LEI
So What?

     While the specific results are fine

The lasting value is the capability to solve
         the next set of problems

Success is judged by the ability of the team
  to sustain and improve after you leave

  It is the responsibility of management
  to focus these actions on the needs of
       the business and its customers
The Scientific Approach

    What problem are we trying to solve?
  What experiments do we need to design?
How do we assess the necessary capabilities,
        mentoring and management?
 How do we capture the reflections and share
      through communities of practice?
The aim is to develop capabilities and stronger
        hypotheses for future actions
       How do we develop our Senseis?
Final Thoughts

  Are we using science or simply a narrative?
Are we developing a body of practice or turning
             lean into a profession?
Are we just using lean to improve performance?
  Or as a way of creating more fulfilling work?
  And meeting growing aspirations with less
     resources and environmental impact?

         Are we driven to uncover the
            next set of questions?
SCIENCE AND LEAN
TRANSFORMATION

    Daniel T Jones

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The Science of Lean Transformation by Daniel T Jones

  • 2. Scientific Management Based on non-existent experiments! But the narrative legitimised the role of management And the role of experts and consultants Led to focus on the vertical control of resource allocation and utilisation But ambiguity over incentives, motivation and the role of the workforce 2% productivity growth since
  • 3. Modern Management Peter Drucker articulated the role of general management Michael Porter and deregulation legitimised investor capitalism Various gurus tried to correlate strategy and leadership with performance The web giants are not providing alternative business models New insights are now coming from other scientific disciplines
  • 4. Management by Science Toyota created a new synthesis: - A rigorous way of formulating strategy and deploying it A rigorous way of defining customer value A rigorous way of unblocking the horizontal flow of value creation A rigorous way of establishing standard work as the basis for continuous improvement Practicing PDCA underlies all of this
  • 5. A Lean Management System Direction Top Focus Vital Few Aligning Hoshin Function VS Analysis End-to-End Value Stream Lean Projects Enabling Oobeya Stability Stability Stability Stability Stability Gemba Plan/Actual Plan/Actual Plan/Actual Plan/Actual Plan/Actual Kaizen Problems Problems Problems Problems Problems The Value Stream
  • 6. From What to How? How do we set direction and develop the capacity to change? How do we define value from the customer perspective? How do we align different perspectives? How do we manage lean projects? What is a lean transformation?
  • 7. Lean Transformation Solve specific business problems By developing the capabilities Solve Business Problems “Follow To improve the flow of work To Me” By unblock develop- the flow ing Enabled by leaders showing of value creation Go See capabil- itise Ask Why & clear direction and Show Respect asking questions So everyone use the Scientific Approach Systematic use of PDCA by everyone After John Shook, LEI
  • 8. So What? While the specific results are fine The lasting value is the capability to solve the next set of problems Success is judged by the ability of the team to sustain and improve after you leave It is the responsibility of management to focus these actions on the needs of the business and its customers
  • 9. The Scientific Approach What problem are we trying to solve? What experiments do we need to design? How do we assess the necessary capabilities, mentoring and management? How do we capture the reflections and share through communities of practice? The aim is to develop capabilities and stronger hypotheses for future actions How do we develop our Senseis?
  • 10. Final Thoughts Are we using science or simply a narrative? Are we developing a body of practice or turning lean into a profession? Are we just using lean to improve performance? Or as a way of creating more fulfilling work? And meeting growing aspirations with less resources and environmental impact? Are we driven to uncover the next set of questions?