limits of lean manufacturing & service practices

LIMITS OF LEAN LIMITS OF LEAN MANUFACTURING & MANUFACTURING & SERVICE PRACTICESSERVICE PRACTICES

Prepared byPrepared byFarhanaFarhana AkterAkter

MohammedMohammed El El BouassamiBouassami

HafezHafez ShurrabShurrab

PRESENTATION OVERVIEWPRESENTATION OVERVIEW

• TerminologyTerminology

• Historical ReviewHistorical Review

• The ObjectiveThe Objective

• Lean & Management ContextLean & Management Context

• Lean Manufacturing & LimitationsLean Manufacturing & Limitations

• Lean Service & BarriersLean Service & Barriers

• ConclusionConclusion

THE OBJECTIVETHE OBJECTIVE

The main objective of the study is to discuss

some limitations and barriers for lean within

manufacturing and service management

contexts.

TERMINOLOGYTERMINOLOGY

• Pull and Push Systems

• Lean Thinking: Simply, lean means creating more

value for customers with fewer resources.

8 Types of Wastes - Muda:

How much is waste?

TERMINOLOGY TERMINOLOGY (cont.)(cont.)

The wastes are reduced radically by lean practices and

techniques (lean principles).

Lean Practices and Techniques to be discussed:

Just-In-Time – JIT

Continuous Improvement – CI

New Product Development

HISTORICAL REVIEWHISTORICAL REVIEW

Lean principles come from the Japanese manufacturing industry

John Krafcik ,1988

Lean principles brought significant results to most of adopters,

where the push systems were the mainstream that time.

The main idea is in cutting the costs radically and maximizing

the flexibility.

LEAN & MANAGEMENT CONTEXTSLEAN & MANAGEMENT CONTEXTS

• The transfer of lean principles and limitations

Different management context (lean manufacturing and lean service)

Different culture

• The article discuss an example for each context (automakers & Health Care).

LEAN MANUFACTURING & LIMITATIONSLEAN MANUFACTURING & LIMITATIONS

• There are several reasons why many Japanese, as well as non

Japanese, firms have been unable or unwilling to follow the strict

lean standards set by Toyota, or Honda to their fullest extreme.

• Many difficulties and challenges rises up when some of

those companies tried to introduce lean in their production systems.

LEAN MANUFACTURING & LIMITATIONSLEAN MANUFACTURING & LIMITATIONS (cont.)(cont.)

• The main major limitations of lean manufacturing

1. Urban Congestion and Geographical Distance

2. Supplier Management

3. The Shortage of Blue- Collar Workers

4. Product Variety and environmental issues

1. Urban Congestion and Geographical Distance

The success of lean manufacturing encouraged other Japanese

Companies. (traffic)

• Traffic congestion wasted time (waiting for components to arrive)

• Traffic congestion also pollutes the environment

• Japanese government and media campaign (1990).

LEAN MANUFACTURING & LIMITATIONSLEAN MANUFACTURING & LIMITATIONS (cont.)(cont.)

2. Supplier Management

Lean manufacturing application requires cooperative and reliable

suppliers. (%75 of manufacturing, %50 of product development costs)

• High pressure on Japanese suppliers

• The Japanese and troubles with foreign. (culture, mentality, costs, rules … etc.)

• Non-Japanese suppliers have not complied exactly with Japanese pricing and

quality requirements, nor Japanese trusted foreign suppliers

LEAN MANUFACTURING & LIMITATIONSLEAN MANUFACTURING & LIMITATIONS (cont.)(cont.)

3. The shortage of blue-collar worker

• Introduction of automated manufacturing systems in large number (1980`s)

• There were more factories than demanded blue-collar

• Intense competition for blue-collar workers

• Reduce the productivity advantage

• Needs for foreign labor

LEAN MANUFACTURING & LIMITATIONSLEAN MANUFACTURING & LIMITATIONS (cont.)(cont.)

4. Product Variety and environmental issues

Toyota and other companies had high flexible production system that let them produce

too many models and features of products and maximize their competitive

customizations.

• The parts maker and assembly plants (responsive with small and rare orders frequently

• The variety requires constant equipment setups, Kanban exchanges, and small lots

LEAN MANUFACTURING & LIMITATIONSLEAN MANUFACTURING & LIMITATIONS (cont.)(cont.)

• The most pressing concern – the high cost of new model development

• Interest rates in Japan reached international levels (Expensive Money)

• Banks could no longer offer cheap loans – their portfolios of stocks and

real estate and their customers’ portfolios had declined

• Cuts on products development

LEAN MANUFACTURING & LIMITATIONSLEAN MANUFACTURING & LIMITATIONS (cont.)(cont.)

• They reduced products variety to %20 of the products that

achieve %80 of overall profits

• The total sales may decline as the options and variety the

customer used to enjoy is no longer available as before.

• Exporting used-automobiles to other parts of world

• recycle automobile materials more effectively.

LEAN MANUFACTURING & LIMITATIONSLEAN MANUFACTURING & LIMITATIONS (cont.)(cont.)

LEAN MANUFACTURING & LIMITATIONSLEAN MANUFACTURING & LIMITATIONS (cont.)(cont.)

Lean Service & BarriersLean Service & Barriers

According to Brandão L. and Pidd M. (2011), implementation barriers in health care are:

1. Perception barriers

2. Terminology barriers

3. Personal/ professional skills of health care professional difference barrier

4. Organizational momentum

5. Hierarchy and management roles barrier

6. Data collection and performance measurement barrier

7. Professional and functional silos barrier

8. Resistance change/ skepticisms barrier

Perception barriers

A common misbelieve:

• treated as a ‘piece of metal’

• humanity would disappear from health care

• every patient is different, unlike every manufactured

product in a factory

Terminology barriers

• A common vocabulary

• Inconsistencies in terminology

• Work-in progress can be called as waiting time or

waiting lists

Seven types of wastes in healthcare

• Transport- movement of patients and equipment

• Inventory- unneeded stocks and supplies

• Motion- movement of staff and supplies

• Waiting- delays in diagnosis and treatment

• Over production- unnecessary tests

• Over burden- stressed, overworked staff

• Defects – e. g. medications errors, infections

Terminology barriers (cont.)

Personal/ professional skills of health care professional difference barrier

• health care managers - ‘firefighting’

• lean is not finding quick, temporary solution to problems

A continuous improvement

• training,

• piloting and

• overcoming some of the barriers described here.

The rate of change in a typical lean program may be

initially slow until organizational momentum is

acquired.

Organizational momentum

Hierarchy & management roles barrier

Cultural issues based on

• the hierarchy of health care staff

• the way management roles are allocated

Hierarchy & management roles barrier (cont.) : Ben-Tovim et al(2007b)

Figure: Top-down versus bottom-up flow of ideas.

Smith (1995) consider the effects of

publishing performance data, which can lead

to many different types of dysfunctional

behavior if not carefully planned

Data collection and performance measurement barrier

Professional and functional silos barrier

Structure of fragmented care and professional practice.

• Care providers (doctors, nurses & physiotherapists).

• Non-care providers (managers, secretaries & cleaners).

Resistance change/ skepticisms barrier

• Resistance to change

• Skepticism about change programs in general

ConclusionConclusion

• Scalability is insufficient

• Stressful for the suppliers and employees in the assembly line.

• The hierarchal structures and management practices in different

countries

• It’s highly recommended for those who is willing to import lean for

their industries to study the limitations of lean under which context

it’s intended to operate on.

Findings:

• Four limitations for lean manufacturing (automobile) and

eight barriers for lean service (health care) have been

discussed.

Future Study

• It’s highly recommended to consider change management when

lean practices and techniques are transformed to other culture and

context.

• Much of researching effort required to design appropriate lean style

suits different cases.

Thank You!!!Thank You!!!

Questions??Questions??