Lean production and

willingness to change
German industrial survey
Markus P. Rler, Daniel Spiertz and Joachim Metternich

Table of contents
Table of contents

1. ..... Introduction
1.1.
Background
1.2.
Target group and survey details

1
1
1

2. ..... Evaluation and analysis of data collection

2.1.
Company and respondents characteristics
2.2.
Relevance
2.3.
Methods of holistic production systems
2.3.1.
Total productive maintenance
2.3.2.
Changeover improvement
2.3.3.
Process time management
2.3.4.
Poka Yoke
2.3.5.
Production system and systematical improvement
2.3.6.
Material flow
2.3.7.
Manufacturing execution system
2.3.8.
Performance and shop floor management
2.3.9.
Order and cleanliness
2.3.10. Visual management
2.3.11. Standardization and audits
2.4.
Criteria of willingness to change
2.4.1.
Communication and transparency in the corporation
2.4.2.
Decision making and management culture
2.4.3.
Personal assessment of the company and the production system
2.4.4.
Employee suggestion system and continuous improvement
2.5.
Cluster analysis

Version: 2014/04/28

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1. Introduction
1.1. Background
The Massachusetts Institute of Technology led a global benchmark analysis within the automotive industry in
the late 1980s. The results showed significant differences in the organization of production between Western
and Japanese companies. For these differences one of the researchers involved, John Kraftcik, distinguished
between lean and buffered production systems. In addition to the fact that Japanese car builders met higher
quality standards, also productivity and flexibility were significantly higher in these companies. Against a
growing competitive pressure from globalization and short product life cycles due to technical progress a
flexible production organization is increasingly important to still remain competitive. Therefore the first main
question of this article is, how nowadays industry has responded to the results of the mentioned study and set
up structured holistic production systems.
Taiichi Ohno, the designer of the Toyota production system, had to cope with the resistance of employees
during the introduction of lean production at Toyota. It took about ten years until lean production was
implemented at Toyota. This was because existing resistances had to be dismantled and overcome and to
achieve a complete reorganization of production. Ohno emphasized the importance of the involvement and
training of all workers for a successful implementation. Already this example shows, the willingness to change
of the staff involved is very important for success of the implementation of lean concepts. This raises the
second major question of this survey whether and to what extent producing companies are ready and open for
change.
The aim of this article is to provide an overview about both dimensions, the degree of penetration of lean
methods and the willingness to change in the field of production.

1.2. Target group and survey details

The target group of this survey was managers of German companies responsible for production. This target
group was identified out of a large firm database for German producing companies of all relevant branches. In
sum 3,860 companies were contacted and supported with an online questionnaire, so a media break could be
avoided. From this number of contacted managers, 98 answered to the survey, this complies with a response
rate of 2.5 %. Thereby the questionnaire was divided into different subjects, through which the surveyed
person could navigate with the aid of forward and backwards buttons. The division was chosen such that
every section is treated on a separate page, which warrants the clarity and the transparency for the surveyed
person. The majority of the questionnaire consists of assessment tasks. For the evaluation, a scale of one to
five was used. Endpoints were continuously indicated with not agree to fully agree. The part which could
not be covered by assessment tasks contains multiple choice questions.
The survey was divided into four main subjects: company and respondents characteristics, an initial question
regarding the relevance of the topic, methods of holistic production systems and criteria of willingness to
change.

2. Evaluation and analysis of data collection

2.1. Company and respondents characteristics
In the section of company characterization, three different aspects were surveyed. The first aspect was the size
of the production site, which extends over five size ranges of less than ten up to more than 500 employees.
The industry in which the company operates is the second aspect. Nine answering options were leaned against
the branches division in the German company database, plus the category others. Third aspect is the number
of units produced, which are divided into low or high volume production, special machines/ single pieces and
process industry. In the field of respondent characterization, four features are gathered, with which surveyed
persons could be classified into several clusters during the evaluation. Apart from age and sex, such clusters
include also the duration of employment, which is divided into four subcategories. The third characteristic
subdivides interviewees into employees with and without managerial responsibilities. When employees
dispose of managerial responsibilities, a further division is made with help of these three categories: less than
10, 10 to 30 and more than 30 employees; see therefore Figure 1 - Figure 6.
30

30

25

25

25

22

Number of answers

Number of answers

25
20
15

11
10
5

20

17

15

10
10

1
0

0
11 - 50

51 - 250

251 - 500

>500

Figure 1: Number of employees of the production site

(n = 59 companies)

Low volume

High volume

Special machines Process industry

/ single pieces

Figure 2: Class of units produced in the production site

(n = 59 companies)
30
25
Number of answers

25

22

20
15

10
5

0
< 30 years

Figure 3: Branch of the production site

(n = 59 companies)
25

> 60 years

39

40

20

Number of answers

Number of answers

50 - 59 years

45

20

14

10

40 - 49 years

Figure 4: Age of the surveyed managers (n = 59

companies)
23

15

30 - 39 years

35
30
25
20
15
10

10

5
0

0
< 1 year

2 - 5 years

6 - 15 years

Figure 5: Seniority of the surveyed managers

(n = 59 companies)

> 15 years

< 10 people

10 - 30 people

> 30 people

Figure 6: Managerial responsibility of the surveyed

managers (n = 57 companies)

2.2. Relevance
The initial question of the survey served primarily to pin the scope of the survey and to arouse interest. In the
initial question subjects were asked to estimate whether lean production is a suitable approach to help
companies gain a competitive advantage over competitors, see therefore Figure 7. 89 percent (84 answers) of
all 95 respondents believe that competitive advantages can be gained by implementing lean methods. Another
five percent (6 answers) do not know whether competitive advantages can be achieved, and about three
percent (5 answers) do not believe in gaining competitive advantage through the implementation of lean
methods.
6%
5%

Yes

No
Not sure

89%

Figure 7: Methods of lean production as suitable tools to help companies to gain a competitive advantage over
competitors (n = 95 companies)

2.3. Methods of holistic production systems

Questions about methods of holistic production systems, especially the concepts of lean production, constitute
the largest segment of the survey. Considered methods were subsumed under eleven categories, which
respectively have thematically similar references. In all, eleven blocks were formed. The first categories were
the ones that are related to the process level (total productive maintenance, optimization of setup time, process
time management and poka yoke). Afterwards, categories that belong to the process chain were considered
(production system and material flow) following the category of manufacturing execution systems, and then
organizational, system-related contents (performance management, organization of workplace, visual
management as well as standardization and audit).
The following paragraphs show the results of the survey regarding different methods of holistic production
systems. Here process-related, process-chain-related and system-related methods were in the focus. In the
following figures the degree of agreement regarding the several questions is measured in a qualitative range
between very low and very strong.

2.3.1. Total productive maintenance

The results for the category total productive maintenance are visualized in Figure 8. It should be noted that
the number of responses varies between 73 and 77. In general it can be stated that the results for this area are
quite heterogeneous. The concept of TPM is used by about 50 percent of the companies regularly.

The concept of TPM (total productive maintenance) is used for service and upkeeping

18

Defined TPM-activities are performed by the workers itself

Preventive maintenance exists in the complete plant with dynamic maintenance intervals

The current maintenance system reduces losses due to changeover effectively

The current maintenance system reduces start-/warm-up difficulties

The current maintenance system helps to reduce scrap and rework effectively

6
0%

23

23

14

21

17

20

20

19
20%

20

21

15

10

18

14

10%

18

25

17

11

17

22

16

12

22

16

The current maintenance system enables relatively high tact/process times

degree of agreement
low
medium
strong

17

20

10

The current maintenance system reduces standstills and performance losses effectively

25

10

12

The current maintenance system reduces machine/plant shutdowns effectively

very low

10

31

30%

40%

very strong

50%
60%
Number of answers

12
70%

80%

90%

100%

Figure 8: Results in the category TPM (total productive maintenance)

2.3.2. Changeover improvement

The next category deals with the systematical improvement of setup times. The results are shown in Figure 9.
The number of responses varies depending on the statement between 72 and 74. In most companies a setup
time is carried out in production. Slightly less than half of the respondents indicated affirmative responses.
About another 30 percent chose the neutral range and the remaining nearly 22 percent spread over the
negative range. The performed setup time improvements occur only in rare cases on the basis of the SMED
(single minute exchange of die) method.
Methods for improving changeover times are used throughout the whole plant

22

SMED (single minute exchange of die) is used for improving changeover times

37

OTED (one-touch exchange of die) is used for improving changeover times

degree of agreement
low
medium
strong

20
0%

10%

20%

30%

11

15

very strong

15

14

45

With the used methods significant improvements could be achieved in the past

very low

20

19
40%

50%
60%
Number of answers

18
70%

80%

6
90%

100%

Figure 9: Results in the category changeover improvement

2.3.3. Process time management

Figure 10 presents the results for the category process time management. The number of responses for the
third statement is 70, for the further statements each 71. Nearly three-quarter of all respondents confirm that
in production target times for the execution of activities are determined. The MTM method for determining
target time is used by very few companies, about 20-30 percent.

In the whole production system target times for execution of activities are determined

Target times are determined jointly by employees and timekeepers

17

14

By the definition of target times fluctuations are taken into account

17

10

15

23

13

11

42

REFA time measures are used for determining target times

21

Determined target times are communicated and visualized on the shop floor
0%

10%

12

20%

30%

11

11

20

33

UAS (universal analysing system) is used for determining target times

degree of agreement
low
medium
strong

14

12

MTM (methods-time measurement) is used for determining target times

very low

36

12

16

14

40%

3 1

19

18

26

50%
60%
Number of answers

very strong

70%

80%

90%

100%

Figure 10: Results in the category process time management

2.3.4. Poka Yoke

The results of the category poka yoke are shown in the illustration of Figure 11. In about 20 percent of the
companies all processes and resources are designed so that faulty operation does not lead to defective products
or hazards. This compares to 16 percent in which poka yoke is not applied at all. The rest of the observed
companies partially uses the concept of poka yoke.
Processes and resources are proactively designed so that faulty operation can not lead to defective
products or hazards

very low

degree of agreement
low
medium
strong

11

0%

10%

20%

20

30%

40%

very strong

20

50%
60%
Number of answers

11

70%

80%

90%

100%

Figure 11: Results in the category poka yoke

2.3.5. Production system and systematical improvement

The distribution of responses to the category production system and systematical improvement is shown in
Figure 12. In this section mainly the method of value stream mapping is discussed. It should be noted that the
number of responses varies between 66 and 68. A framework for methods for structural improvement
(production system) exists in over half of the companies.
There is a framework/set of methods available to improve the effectivity of the entire production system

The seven types of waste are known and systematically reduced

For single product groups value stream analyses are performed

17

Process fluctuations and variability is considered during value stream analyses

19

Variability is considered when deriving value stream designs

19

System variability is taken into account by the implementation of value stream designs

15

Material flow simulations are used for planning and improvement of the production system
10%

13

12

18

40%

50%
60%
Number of answers

10

21

14
30%

13

11

20

14

19

20%

16

15

25
0%

13

15

18

18

23

With the method of value stream mapping significant improvements have been made

very strong

14

16

17

degree of agreement
low
medium
strong

23

13

Out of value stream analyses improved designs are derived

very low

14

10

10

14
70%

11
80%

4
90%

100%

Figure 12: Results in the category production system and systematical improvement
5

2.3.6. Material flow

Figure 13 presents the results of the category material flow. It should be noted that the number of answers
varies between 62 and 64. The distribution of responses in this section is quite heterogeneous. It ranges from
consent to obvious rejection.
The production and delivery of material takes place consumption-based following the pull principle

In production the use of kanban systems is common to represent production orders

20

Warehousing, storage and retrieval in production takes place using mainly supermarket and FIFO (first in
first out) principles

The production is organized in the form of flow production or single/one piece flow

The provision of materials is organized in the form of cyclic running transports (milkrun principle)

29

Fluctuations in material demand are compensated by flexible transport capacity and flexible staff
planning

very low

degree of agreement
low
medium
strong

29

14

0%

10%

20%

30%

40%

very strong

11

18

12

10

18

10

22

10

14

14

13

19

There is a (mainly human) functional separation of production and logistics

16

18

18

17

A smoothing of production orders is performed before production

23

18

10

Production lines are producing within a defined customer tact

15

12

19

11

22

50%
60%
Number of answers

70%

80%

90%

100%

Figure 13: Results in the category material flow

2.3.7. Manufacturing execution system

The distribution of responses in the category manufacturing execution system is plotted in Figure 14. The
number of responses varies between 60 and 63. It can be noted that the majority of the statements were
answered with a broad consensus. In almost 80 percent of the surveyed companies the order management is at
least partially coordinated with the help of a MES (manufacturing execution system), in a little more than 40
percent of the companies this is done in the complete production area.
There is an order management, which is coordinated using a MES (manufacturing execution system)

Produced quantities and productive times are recorded with a MES

Downtime, reasons for downtime and machine-related data are collected with a MES

14

Operating data is regularly evaluated and used for systematical improvement of the machine/plant

Machine data is regularly evaluated and used for systematical improvement of the machine/plant

Operating and machine data as well as recommendations are communicated to the shop floor staff

very low

degree of agreement
low
medium
strong

0%

10%

20%

30%

14

14

19

15

10

19

21

13

17

15

13

25

13

10

25

14

11

40%

very strong

50%
60%
Number of answers

70%

80%

90%

100%

Figure 14: Results in the category MES (manufacturing execution system)

2.3.8. Performance and shop floor management

Figure 15 presents the results for category performance and shop floor management. The answer number
varies depending on the statement between 57 and 61. Based on the figure it can be seen that apart from the
OEE the queried KPIs are used in about 80 percent of the companies. The KPI most frequently raised is the
utilization ratio.

The KPI (key performance indicator) utilization ratio is levied throughout the production

Lead time is tracked in the production system

Internal on-time delivery is tracked in the production system

10

6
0%

25

10

13

7
10%

18

13

12

Based on KPIs the production is controlled and troubleshooting is performed

13

12

15

KPIs are visualized and communicated on a shop floor level

32

13

20

18

14

The KPI OEE (overall equipment effectiveness) is derived at production equipment

degree of agreement
low
medium
strong

16

11

The KPI machine productivity is derived in the production system

29

10

The KPI personal productivity is derived in the production system

15

Stock counts are tracked at shop floor level

very low

30%

16

15

14
20%

15

21
40%

very strong

50%
60%
Number of answers

13
70%

80%

90%

100%

Figure 15: Results in the category performance and shop floor management

2.3.9. Order and cleanliness

The results of the category order and cleanliness in production are shown in Figure 16. It should be noted
that the number of answers is between 59 and 61. In general it can be stated that the establishment of order
and cleanliness at least partially is carried out at workplaces by the vast majority of companies. The statement
that the establishment of order and cleanliness is achieved with methodical support is answered positively by
over 65 percent of respondents.
The creation of order and cleanliness is done methodically supported

At all workstations only necessary tools are available

All work equipment is labels and has a fixed place

Workers have standard procedures and rules for order and cleanliness at the workplace

Workers hold the defined rules and standards

very low

degree of agreement
low
medium
strong

5
0%

10%

very strong

30%

10

25

15
20%

22

17

24

16

12

16

15

16

20

17

17

Work places are always cleaned and tidied

25

13

10

40%

50%
60%
Number of answers

70%

80%

90%

100%

Figure 16: Results in the category order and cleanliness

2.3.10.Visual management
Figure 17 presents the results of the category visual management. The category was answered by 61
respondents. Visual aids and control systems for displaying relevant information and to create transparency
exist in about 80 percent of companies surveyed, at least partially.

In production areas there are visual control systems to show relevant information and create
transparency

Status of production facilities and processes are presented transparent and are visualized

10

Risk areas are marked visually

Shelves for material, manufacturing equipment and tools are explicitly defined and separated from
walkways

degree of agreement
low
medium
strong

16

25

25

15

15

15

0%

16

12

Material flow through all production areas is clearly defined and made visible

very low

17

18

6
10%

22

22
20%

30%

18

40%

50%
60%
Number of answers

very strong

70%

80%

90%

100%

Figure 17: Results in the category visual management

2.3.11.Standardization and audits

The results of the category standardization and audits are shown in Figure 18. The number of responses is
between 59 and 61. It is striking that this category received the least support. Uniform standards are at least
partially used in three-quarters of companies.
There are uniform standards for workplace design in the entire production site

For each workplace a standard operating procedure exists

19

Standard operating procedures are developed jointly by workers and job preparation department

19

Compliance of standards defined in standard operating procedures is ensured using audits

In the case of deviation concrete measures and deadlines are defined

13

0%

10%

20%

10

17

18

15

8
30%

14

12

very strong

14

16

14

degree of agreement
low
medium
strong

14

Results of audits are communicated to the workers

very low

13

10

15

14

13

22

Questions of audits are constantly developed further

15

19

12

40%

50%
60%
Number of answers

70%

80%

90%

100%

Figure 18: Results in the category standardization and audits

2.4. Criteria of willingness to change

Questions about the willingness to change were divided in six different categories. It should be noted that a
large part of questions required subjective assessment of persons surveyed, with which the willingness to
change among the company was deduced.
The following paragraphs show the results of the survey regarding criteria of willingness to change. The
surveyed managers answered questions about their perception regarding their division as well as their
personal mindset. In some of the following figures the degree of agreement regarding the several questions is
also measured in the same qualitative range between very low to very strong.

2.4.1. Communication and transparency in the corporation

The results of this category are plotted in Figure 19. The response number for this category was between 59
and 61. It can be stated that the entire category is characterized by a broad consensus.

There are information tools that inform the staff about the latest developments within the company

I'm actively involved in change processes

2 1

I have regular staff meetings with my boss

I regularly run meetings with my staff

degree of agreement
low
medium
strong

16

30

23

10

0%

28

19

26

29

There is a regular exchange in the company to discuss necessary / possible changes / improvements

19

25

I have all the information that I need to perform my duties excellently

very low

10

10%

22

28
20%

30%

40%

very strong

18

50%
60%
Number of answers

70%

80%

90%

100%

Figure 19: Results in the category communication and transparency in the corporation

2.4.2. Decision making and management culture

The results of the category decision making and management culture are shown in Figure 20. The response
number for statement one is 59, for statement two 61 and for statement three 60.
I feel appreciated in my abilities, skills and talents

In our meetings we talk about the key performance indicators

degree of agreement
low
medium
strong

24

In our meetings we make fact-based decisions to benefit our work area

very low

11

5
0%

27

22

10
10%

22

25
20%

30%

40%

very strong

20

50%
60%
Number of answers

70%

80%

90%

100%

Figure 20: Results in the category decision making and management culture

2.4.3. Personal assessment of the company and the production system

In this category of the survey the personal opinion of the participants was collected on various issues. The
results are plotted in Figure 21 and were answered by 60 managers. The first statement of this category, my
company is not open to change, in contrast to the previous statements was counter-designed to ensure the
validity of the questionnaire. Almost half of the participants estimated their company as open to change.
My company is not open to change

29

I know the corporate strategy

I can identify with the corporate strategy

I know how the corporate strategy is related to my personal goals

I have individual target agreements which are aligned to the departmental and corporate goals

There are potentials for positive change in the production

very low

degree of agreement
low
medium
strong

12

1
0%

very strong

31

15

29

16

36

14

38

17

4
10%

20%

25

10

13

30%

40%

50%
60%
Number of answers

70%

80%

90%

100%

Figure 21: Results in the category personal assessment of the company and the production system

2.4.4. Employee suggestion system and continuous improvement

An employee suggestion system or a similar institution exists in 44 surveyed companies (n = 61 companies),
representing about 73 percent. 16 companies (27 percent) do not have such an institution. The annual number
of implemented improvements is plotted in Figure 22 differentiated between SME (small and medium-sized
enterprises) with less than 250 employees and large enterprises with more than 250 employees. This question
was answered only by the participants, who affirmed the existence of an employee suggestion system. The
number of responses for this question is 43 because one respondent, who had previously answered with yes,
did not answer this question.
The next question of the survey was how large the sum saved by the implemented suggestions is per year.
The number of responses for this question was 42, see Figure 23. Slightly more than half of the surveyed
companies save between 1,000 and 10,000 Euros per year. In 44 percent of the companies the saved sum is
greater than 10,000 Euros per year. One participant stated that his company saves less than 1,000 Euros per
year by proposals.
18

14

16

12
Number of answers

Number of answers

14
10
8
<= 250 employees
6

> 250 employees

12
10

<= 250 employees

> 250 employees

6
4

2
0

0
< 10

11 - 50

51 - 250

< 1,000

> 250

Figure 22: Number of annually implemented improvement

suggestions from workers (n = 43 companies)

1 k - 10 k

> 10,000

Figure 23: Savings through implemented improvement

suggestions per year (n = 42 companies)

A further question, whether employees receive a bonus if their proposal is implemented, was answered by
43 managers. 34 managers (79 percent) confirmed that their employees receive a bonus, 9 managers
(21 percent), however, denied the payment of a bonus in the event of a successful implementation of a proposal.
In 83 percent (49 responses) of surveyed companies a regular (e.g. annual) training of staff exists. 17 percent
(10 responses) of the participants denied a regular training of employees.
46 managers, representing a share of 77 percent, responded positively to the question of whether their
company has taken advice from consultancies for change or improvement of processes in the past three years.
15 participants (23 percent) said no to this question. How often such a service was taken into advantage
during the same period is plotted in Figure 24.
14

Number of answers

12
10
8
<= 250 employees
6

> 250 employees

4
2
0
Once

Twice

Three times More often

Figure 24: Quantity of in-house projects supported by consulting firms in the years 2011-2013 (n = 46 companies)

10

2.5. Cluster analysis

For the cluster analysis based on the company size and the type of production, the sample data was divided
into six groups. The group SME includes all participating businesses with less than 250 employees.
Interesting differences could be detected in the block production system and systematical improvement, see
Figure 25. Hereby the value 0 corresponds to a very low degree of agreement, the value 4 to a very strong
agreement. It can be clearly stated that in enterprises, who have no employee suggestion system (ESS), the
penetration of holistic production methods like systematical waste analyses or value steam optimization
methods and so the strive for operational excellence is less distinct than in organizations with an ESS or
similar institution.
2,42

There is a framework/set of methods available to improve the effectivity of

the entire production system

2,71
2,82
2,13

2,06
2,27
2,17
2,06

For single product groups value stream analyses are performed

1,44
1,77
1,91

Out of value stream analyses improved designs are derived

1,38
1,42

With the method of value stream mapping significant improvements

have been made

1,69
1,19

2,42

2,21
2,12
2,26

2,12
1,94
2,05
1,84
1,84
1,85
1,88

Process fluctuations and variability is considered during value stream analyses

2,98

2,54
2,55
2,51
2,59
2,72

The seven types of waste are known and systematically reduced

1,25

2,05

1,65

1,9
1,79
1,88

Variability is considered when deriving value stream desings

1,19

2,05

1,69

1,84
1,71
1,94
2

System variability is taken into account by the implementation of

value stream designs
1,19
1,27

Material flow simulations are used for planning and improvement

of the production system

1,24

1,52
1,49
1,58

0,94
0

SME

Large enterprises

Low volume / single piece production

0,5

High volume production

With ESS

1,5

Without ESS

2,5

3,5

Average degree of agreement

Figure 25: Clustered results in the section production system and systematical improvement (SME: n = 26; Large
enterprises: n = 33; Low volume / single piece production: n = 35; High volume production: n = 17; With ESS: n = 45;
Without ESS: n = 16 companies)

11