Lean and Sustainable Business

Resonance in Natural Law

Dr. Andrew Bargerstock

W. Edwards DemingSystem of Profound Knowledge

14 pts. Deming Method

Plan-Do-Check-Act (PDCA)

Maharishi: Wholeness on the

MoveWhen a manager’s awareness is aligned with Natural Law by contacting pure creative intelligence, Natural Law emerges through the Principle of Least Action to produce decisions that promote flow, natural recycling, and efficiencies.

Sustainable Art of Mgt.

Aligning awareness to Natural Law brings more of the benefit of Principle of Least Action. This is the most sustainable art of management… simplicity, direct accomplishment, least effort and minimal resources needed.

Main PointTo realize the full potential of sustainable business practices, TBL organizations adopt Lean Mgt. methods to perpetually add value and continuously eliminate waste in all forms.

Overview Basics of Lean Lean supports SB practices

When does Lean fail Tips for MBA students

Toyota’s Philosophy

Long-term thinking Add value by developing

employees Process for problem-solving Organizational learning emerges

from continuously solving root causes of problems

Taiichi Ohno, Toyota“All we are doing is looking at the time-line, from the moment the customer gives us an order to the point when we collect the cash. And we are reducing the time line by reducing the non-value adding wastes.”

More value with less work!

The impact of lean – 3 yearsParker Hannifin Corp.

Return on Assets +78%

Return on Sales +74%

On-time delivery (starting at 85%)

95%

Scrap Rate -51%Inventory on hand -41%

What is Lean Management?

Deming Method – manage business system instead of financial results

Lean focuses on customers’ expectations, i.e., the value chain

Lean kaizen teams streamline business processes

Lean expands capacity by reducing costs and shortening cycle times

Basics of Lean

Five PrinciplesFour RulesMany Tools

The Five Principles1. Define value

2. Map the value stream

3. Make the stream flow

4. Allow customers to pull from the flow

5. Pursue perfection perpetually

The Four Rules1. Standardize work processes

2. Minimize movement of people

3. Minimize movement of resources

4. Train people in CPI methodologies

Tools of Lean 5-S (sort, straighten, sweep, standardize,

sustain) Five whys Kanban (visual clues) Kaizen (continuous process improvement) Pareto charts Six Sigma Activity-based costing

…. Etc.

Katsuaki Watanabe (Vice Chairman, Toyota Motor)

“There is no genius in our company. We just do whatever we believe is right, trying every day to improve every little bit and piece. But, when 70 years of very small improvements accumulate, they become a revolution.”

Overview Basics of Lean Lean supports SB practices

When does Lean fail Tips for MBA students

Lean support for SB practices

Enables the organization to mimic natural systems of frictionless flow

Systematic methodology for optimizing efficient use of resources in value chain

Creates a pervasive culture of waste elimination

Empowers employees to sustain their interest and commitment to their work

Overview Basics of Lean Lean supports SB practices

When does Lean fail Tips for MBA students

Failures of Lean Mgt.Inadequate engagement of customers

Incomplete training in kaizen

Patchwork implementationLack of commitment by top mgt.

Overview Basics of Lean Lean supports SB practices

When does Lean fail Tips for MBA students

Implications for MBAs

Sustainable MBAs contribute most to TBL organizations when they can train and lead teams in kaizen events, i.e., continuous process improvements.

Prof. H. Thomas Johnson: True Lean context involves Increased possibilities Simpler pathways More-fulfilling relationships

More-direct connections Continuous flow Balanced pace Real-time problem ID

ConclusionTo fulfill stewardship responsibilities as a Triple Bottom Line business, an organization inevitably will discover that commitment to Lean Management helps sustain passion for elimination of waste in all forms while also fulfilling customer expectations.

Will you help lead the transformation?