limits of lean manufacturing & service practices
DESCRIPTION
Lean thinking minimized the level of waste and caused positive radical changes in the industrial sector. On the other hand, there are limits that make lean inapplicable and is not worth it.TRANSCRIPT
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??