THIS IS LEAN Niklas Modig Stockholm School of Economics /0()*1*23&('4 !!!"4)+(5,,6"+,-7*%6')&-,8%9 /*%6')&:-,8%9 /0()*1*23&('4
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What is lean? •
•
Way of working Philosophy
•
Approach to improvement
•
Approach
•
•
•
•
•
Systems thinking Culture Quality system Way of life
•
Production system
•
Strategy
•
Eliminating waste
•
System for understanding
•
Mind-set
•
Values
•
Management system
•
Tool box
Method
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What is lean? •
•
Way of working Philosophy
•
Approach to improvement
•
Approach
•
•
•
•
•
Systems thinking Culture Quality system Way of life
•
Production system
•
Strategy
•
Eliminating waste
•
System for understanding
•
Mind-set
•
Values
•
Management system
•
Tool box
Method
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Apple
Pear
Whole
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Green
Red
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Three central choices
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Alison thinks she has cancer
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Sarah feels a lump in her breast
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Any difference?
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Two different views on efficiency
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RESOURCE EFFICIENCY
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! FOCUS:
Breast clinic
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Waiting
RESOURCE
Breast clinic
Cytology
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Diagnosis
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RESOURCE EFFICIENCY
! FOCUS:
RESOURCE
Filming the “source”
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FLOW EFFICIENCY
! FOCUS:
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Waiting
FLOW UNIT
Breast clinic
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Diagnosis
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FLOW EFFICIENCY
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Filming the “receiver”
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Two different strategies
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What shall we prioritize first? RESOURCE EFFICIENCY
FLOW EFFICIENCY
LONG THROUGH-PUT TIME
SHORT THROUGH-PUT TIME
HIGH CAPACITY UTILIZATION
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LOW CAPACITY UTILIZATION
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Maximize capacity utilization
Maximize capacity utilization
Maximize capacity utilization
Local doctor’s Mammography surgery & ultrasound
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Maximize capacity utilization
Breast clinic
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Waiting
Maximize capacity utilization
Breast clinic
Cytology
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What happens when “a system” is busy? ! ! !
Diagnosis
A diagnose will take long time We have to handle many patients at the same time We have to restart the diagnose many times
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THE OPTIMAL PROCESS Resource Flow efficiency efficiency 100% Free utilization capacity
100% Free utilization capacity
100% Free utilization capacity
100% Free utilization capacity
1
2
3
4
What happens when “a system” is busy? ! ! !
Things will take long time We have to handle many things at the same time We have to restart the value adding process many times
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Resource efficiency drives ”system waste” F,+=& F,+=& M,)' M,)' 1;9)*%O)C,* 1;9)*%O)C,* A,->(#(*+(
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Three sources of inefficiency Secondary need
Secondary need Long throughput time Secondary need
Secondary need
Over-focus on resource efficiency Many restarts
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Secondary need
Secondary need
Secondary need
Secondary need
Secondary need
Secondary need
Many flow units
Secondary need
Secondary need
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The efficiency paradox By NOT focusing on maximizing capacity utilization, MORE capacity will be available
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The efficiency matrix
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The efficiency matrix $ 9 % N
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The efficiency matrix $ 9 % N
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The efficiency matrix $ 9 % N
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This is lean = an operations strategy $ 9 % N
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How to do the “how”? $ 9 % N
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Just-in-time and Jidoka • • •
The process / the system +/Progress
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Welcome to Stockholm School of Economics!
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When is an organisation lean? $ 9 % N
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How?
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PROACTION
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REACTION
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PROACTION
ACTION
REACTION
NORMAL FLOW 1
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1. SET
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PROACTION
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REACTION
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3
4
3
4
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PROACTION
ACTION
REACTION
NORMAL FLOW 1
0
2
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2
1. SET
3
4
3
4
5
5
6
2. TEST
3. EVALUATE
A
B
DEVIATION
DEVIATION
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2
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DEVIATION
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1
2
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4
5
6
2. TEST
3. EVALUATE
X
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X DEVIATION
A
B
DEVIATION
DEVIATION
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PROACTION
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2
3
4
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DEVIATION WHY?
X 0
1
2
1. SET
3
4
5
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2. TEST
3. EVALUATE
X X
DEVIATION
4. ANALYZE
A
B
DEVIATION
DEVIATION
WHY?
WHY?
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WHY?
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PROACTION
ACTION
REACTION
NORMAL FLOW 1
2
3
4
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DEVIATION WHY?
X 0
1
2
1. SET
3
4
5
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2. TEST
3. EVALUATE
X
A
B
DEVIATION
DEVIATION
WHY?
WHY?
AHA!
AHA!
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X DEVIATION
4. ANALYZE 5. LEARN
AHA!
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WHY? AHA!
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PROACTION
ACTION
REACTION
NORMAL FLOW 1
2
3
4
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DEVIATION WHY?
X 0
1
2
1. SET
3
4
5
6
2. TEST
3. EVALUATE
X
6. IMPROVE
A
B
DEVIATION
DEVIATION
WHY?
WHY?
AHA!
AHA!
NORMAL OUTCOME
X DEVIATION
4. ANALYZE 5. LEARN
AHA!
-
WHY? AHA!
CHANGE
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PROACTION
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REACTION
NORMAL FLOW 1
2
3
4
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DEVIATION WHY?
X 0
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1. SET
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X
6. IMPROVE
A
B
DEVIATION
DEVIATION
WHY?
WHY?
AHA!
AHA!
NORMAL OUTCOME
X DEVIATION
4. ANALYZE 5. LEARN
AHA!
-
WHY? AHA!
CHANGE
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THE LEARNING LOOP
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The learning organisation Flödese ff ektivitet 891: &435&637 (%)
= >76)%53 '*)*& Dynamiskt mål ?316$6212' &@192$16A (utvecklas hela tiden)
Utgångspunkt <2++&6* '*)*&
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