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Lean Enterprise Methods Introduction Understanding sustainability allows companies to improve their triple bottom line and allows for a positive impact on society

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Lean Enterprise Methods

Introduction

Understanding sustainability allows companies to improve their triple bottom line and allows for a positive impact on society. Pg 54 In order for companies to be proactive, they implement tools such as process management, project management, and lean enterprise method. (pg. 263).  In these studies, we will be focusing on the lean enterprise method and lean manufacturing. As we describe and explain the history of the lean enterprise method, we will also be looking at how companies incorporate these practices to eliminate waste, increase efficiency and how it can be utilized in today society. (Hayes 2021) The goal of this studies is to understand how lean managements operates and function to minimize cost and maximize the value of the customers, as well as the company. (pg 41 Burita, Hrusekcka, Pivinikea and Rasmaon)

 

Definition of Lean Enterprise Method

Lean enterprise method is a group of individuals, who are able to collaborate with themselves as well as a team to get certain goals and responsibilities done. Analyzing the team as a collective value stream by grouping individuals togethers allow for the corporation to be successful. Many individuals believe that it is focused solely in operation and procedures. But the most successful companies are able to incorporate it in development, operations, supply chains, and maintenance. By involving all of these steps it allows companies to maximize the customers value. Having each department collaborate with one another to, ensure that the whole business is being responsible rather just an individual. To makes these changes within an organization, it is important for them to explain their values, and have a clear goal. The reason it is important to define the values, is that employees need to be able to understand their values, and how it can benefit them in the long run.

Implementation Stage

When implementing lean process throughout the whole facility, is it important to understand that there can be challenges within the organization. One challenge that a company could face is getting an individual to adapt to the new standard, especially when it can be a threat to one job. Companies can solve some of these concerns, by explaining to them that the individuals might be looking at a new role, or functions that involve process management, that is focused on creating value to the customer through certain avenue to learn new processes and understand business better.

Example of Companies

Honda for examples, has engineers experience different aspect of different jobs for a short period of times, through marketing, sales, product planning and having individuals on the production line. This process can last up to 3 years, and even after that process, they rotate them constantly each year to improve their skills and knowledge. The thought process behind having them work in different aspects, is to ensure that individuals do not just compartmentalize and focus on one aspect of their jobs. By having individuals learn different functions, it allows individuals to think of new process and way to improve that might not have been thought of before. It also allows them to learn news skills, and be able to develop new ideas on how they can problem solve together. By understanding each other jobs functions, it helps with collaboration and ensure everybody understand the nuisance between the various departments. A good example of problem solving with different departments  would be when Nissan has issues getting certain parts. Nissan was developing a car, , and their purchasing department decided to team up with the R & D center, and place some of their engineers and team member at their supplier who was having issues producing , by watching they were able to understand the constraints and provide constructive feedback to the supplier. By doing this, the supplier that was struggling to get them parts, is now one of their best suppliers. By thinking outside of the box, the purchasing department was able to come up with a creative solution and work cross functionally with other department to get the job accomplished. The goals isn't to be an expert in everything. but to provide support and collaborate with other to come up with an answer.  (HBR , 2021)

Deep Dive in the History of Lean Manufacturing

Lean manufacturing is described by economist James Womack, and Daniel T, as a process that focuses on five aspects which are value, value stream, flow, pull and perfection. Value is described as understanding the customers needs and wants. Value streams is understanding product life cycle. Flow is understanding any inefficiency on the line that can be deemed as wasteful. Pull is understanding that before things get produced there should already be orders and perfection is implanting the process to where things are done properly. (Hayes 2021)

Ford was the first mass production companies that was able to assemble many cars by creating a system which was able to handles many components. Lean enterprise method is credited to Elji Toyoda, after looking at how Ford produced their cars and products during World War II. Elji Toyota, after watching Ford assembly line, understood that he could not replicate their system, due to the small quantities and diverse vehicle the company produced. In understanding this, he and Taiichi, developed a new system called the Toyota production system. They believed that in understanding their volume, they can adapt to their environment, by having proper tools, and focusing on what they can do best by focusing on quality, having varieties at a low cost.

Toyota Production System has two concepts, one is called Just in Time, while the other is called Jidoka. Just in Time, focuses on continuous improvement, the pull system and the text time. While Jidoka is focuses on using what is "needed when it is needed, and in the amount need, which eliminates wastes due to it focusing on the quality of the car rather than numbers. (Shkmot, 2017)

Lean Enterprising Method is a good concept and has many benefits come out of it, but one thing to understand is that a responsible manager has to be able to implement a plan and strategy or it will not work. One of the case studies that we studied talk about how important it is to be able to plan and implement the process. There processes and procedure is to first develop a small mini map, that incorporates information into a system that can be generated for evaluation to the right individuals. Lean methods and processes can be lengthy and is important. Although, some of it can be done with certain software, it is ultimately up to the individuals to be responsible.

Application to Lean

Lean management can be easily seen in manufacturing, but can also be applied to many other sectors, such as finance, health industries, restaurant management. Lean management focuses process improvements, product development and retaining customers, through an orderly process that eliminates wastes, errors and ensure consistency. Lean manufacturing methods, and improvement is an ideology and practice that I have used before. I used to work at a meat manufacturing company that made lunch meats for Trader Joes, Whole Foods, and Costco. In understanding the methods and processes we were able to keep consistent product as well as understand our variables. The way we were able to do this, was by constantly improving our process, procedures and understanding our constraints and minimizing movements by understanding process flow. One of the ways we were able to identify constraints were by doing times studies, and in doing so, be able adjusts for the constraints and improve our productivity by 20% and reduce our packaging material by 10%. Saving the company, a lot of time and money. By improving our film yield, and labels we were able to order less supply and have it last just as long.

Employees will not typically look at effective ways, and understand the importance of lean production, because it reduces the head counts of individuals for certain projects. In understanding this, managers need to be able to explain their reasoning, and understand that employee's position is tied to the product life cycle.

Real Life Example of Enterprise Method and Cross Functionality

If we were to look at companies such as Mercedes Benz, and compare it to Toyota, we would see that Mercedes, tends to find their value in having proprietary knowledge rather than streamlining their products like Toyota. Mercedes, take three times as long to create a new luxury car, because they do not want to share their information. In a marketplace that is constantly changing, many consumers are focuses on prices rather than the luxury features.  If Mercedes was adapting to the Toyota method, they could focus on improving their manufacturing capacity and lower their costs and adjusts to the customers needs and wants.

JB was a health insurance company that was able to increase his insurance application by 60% through lean manufacturing method. The way he was able to change his productivity was by understanding that lean management is not just about control, and power, but learning thatprocesses will change over time. JB understood that startup companies are easier to obtain than maintaining. In order to maintains startups, there should be processes and procedure created, especially when turnover are highs. But in doing so, there should also be a focus on changing the processes and not being comfortable with the status quo. One of the things he started to do, was listening to customer feedback, complaints, or problems, with his team manager so that they could help resolve the issues together. In doing so, it did not just help the customers but also allowed the managers to be able to adapt to new surrounding and provide a better experience to the customers. As business constantly evolves, so will consumers need and wants and by adapting to new situations, it ensures that customers' needs are relevant. (Women, 2022)

One great example of company not evolving their needs and improving their processes, would be a cell phone company called blackberry. Blackberry at one point had about 43% market share but by not paying attention their competitor, it affected their sell and ultimately ended theirreputations as a good smartphone. How lean enterprise method could have been applied to this situation, is by comparing themselves to companies such as apple, and understanding what the consumers needed or wanted and seeing what they could do to evolve as well.  Lean enterprise method is ultimately about improving and trying to reduce waste and provide a good quality product that customers want at an affordable price. (Maiorca, 2021)  

Conclusion

Lean when utilized properly, allows leaders to be more sustainable by ensuring that everybody participates in continuous improvement, creating new value, and investing in new ideas. The lean methodology goes deeper than manufacturing, and in understanding certain nuisance it can be applied to everyday business. By implementing lean, individuals can see how people play in important role in businesses, by observing process flow, isolating issues, and understanding certain barriers. (Women, 2022) The goal of lean enterprise is to ensure that there is continuous improvements, through ideals, concepts, careers function, and shared enterprise. It is everybody responsibility within the organization to produce more, with less wastes. By working as a collectively group, and working with cross functional team, it allows for a better process flow.

 

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