2020/2/9

Identifying The Key Factors And Proposing A

Roadmap For Successful Lean Transformation In
Vietnamese Manufacturing Firms
5. LEAN - CÁC YẾU TỔ GIÚP
CHUYỂN ĐỔI SANG LEAN THÀNH
CÔNG

Bui Nguyen Hung, Le Phuoc Luong, and Nguyen Thi Duc Nguyen,
Identifying The Key Factors And Proposing A Roadmap For Successful Lean
Transformation In Vietnamese Manufacturing Firms,
1
Journal of Science, Ho Chi Minh city Open University , 4(16), 1-16, 2015

1 2

Thesis’s Conceptual Frameworks Objectives

 through literature review, to draw out conceptual
frameworks for
ENTERPRISE (i) the aspects of a successful lean transformation,
Key ON LEAN
TRANSFORMATION Aspects of a
(ii) key factors of success/failure for Lean implementation, and
factors of
success successful lean (iii) suitable roadmap/ approach to promote a successful lean
or failure Roadmap/approach transformation transformation.
with tools/methods
 through a case of Vietnamese company, to
(i) verify the aspects of a successful lean transformation,
(ii) verify key factors of success/failure for Lean implementation,
and
(iii) propose a suitable roadmap/ approach to promote a
Difficulties/ successful lean transformation.
Obstacles
 to give practical recommendations to Consultants

3 4

Key results and findings Key results and findings

1. Literature review and synthesis 1. Literature review and synthesis
1.1. Conceptual framework for the aspects of a successful 1.2. Conceptual framework for factors of success for lean
lean transformation implementation/ transformation
Organization

5 aspects: 5 Factors
4 Factorsof Continuous
449Factors
Factors
6Factors
Factors
of of
People
of Improvement
ofOrganization
of
Leadership
Execution
Culture
Capability
Reinforcement
Reinforcement and development
and
Improvements development
of of of Vision,
 Role
Available
of Top
values,
Business relevant
Management
Model competences
code(Independent/
of conducts, members
standardsof inthat
Group,
Lean Culture  Application
 Change project of Balanced
to new management Scorecard.
model (like
corporate

 key
Leadership vision,
performance core
style, value
indicators and customer
: productivity,
management are stated resource
directing,
human
lean
clearly and
project,motivating
Single-sectorial 5S,of
comprehensively.
: Chairman,and
/ Multi-sectorial).
(management
TPM,…). CEO,
value added
quality, timeorientation
response, inventory efficiency  Application
Reasonable and Performance
persuasive situation for change.
thinkingresources allocating, Production
workers)
 Proper andfor
Governance Director,
type
effective Functional
transformation
(private/
application Directors.
state-own/
of Project joint-
corporate
 planning,competitive competency leading, Management
Culture
stock/that
(KPI,…).
facilitates the abilities and readiness
 controlling,
Dynamics and creative capability of Lean Production ofmanagement
limited,
Leadership
Envisaging style
and …).: (i) Arbitrary,
developing new autocracy,
corporate strategic objectives/goals
monitoring (market  Adequate
individuals
 Project
(ii) teamand budget
the whole
competency
Non-arbitrary, for and
organization
and
non-decisive
in
best conditions
: for
 Corporate
competences
change Resources
implementation.relevant and lean (laissez-
toCompetency
labor force
share,
 processcost efficiency, customer satisfaction,
and procedures, work instructions project
fair),
Size
team.
deployment
(iii)
of capital of policies
Democratic
and (active
assets, oflistening,
Technological
 transformation
Agreement
Resources on re-allocation
strategies to andfacilitate
plans totherespond to
brand
 Teamawareness,…)
multi-task labor
spirit andforce
team work Performance
standard,
empowerment), Human Appraisal,
resource,
but assertive.employee
Application of
organizational
 effectiveness of structure
programsandorsystem of
initiatives difficulties
Planning
transformation.and
and implementing
obstacles to prevent the training
initiatives and
policies
Continuous improvement mindset  compensation
quality
frommanagement
Involvement
 plans
Communication
programs onand
misleading. .Commitment
methodmethods
management.
new working such as ISO/
to Change.
and
Execution

deployedto gain better

in order effectiveness,
to help the corporate
and culture 
 TQM/…,
Stakeholder
Stakeholder
Sustainment
Decision Life
makingspan
management. and Industry
communication.
of ethics, code
manner: of conductsexperience.
under the
(i) Centralized-
efficiency
change and adaptability.
(such as new technology Lean new management methods
 impacts
 Legal
Role compliance.
ofof(ii)
temporary
Labor Union benefits.
and other
 application,
Internalpartners
corporate communication,
in supply chain
new management rituals, Mindset 


Supply
based,
Career
Optional
chain
planning
solutions
style and
Decentralized-based,
andsubordinateability
employee to
(iii)
Policies,
Communities
rituals
Processed/ that and
facilitate
Procedural-Based. continuousplans.
(suppliers,
traditions distribution
model/method,…) channels)
and corporate culture expand lean
developing.
 improvement
Assistance to supply
ofculture.
external expertschain.
or lean consultants

5 6

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 2020/2/9

Key results and findings Key results and findings

1. Literature review and synthesis 1. Literature review and synthesis
1.3. Identifying difficulties to a successful lean 1.4. Roadmap/approach with tools/ methods used for lean
transformation implementation/ transformation
1. Back sliding to the old ways of working
2. Lack of a crisis to create a sense of urgency MAINTENANCE &
3. A traditional cost accounting system does not recognize the financial value of shop-floor improvements PREPERATION IMPLEMENTATION
IMPROVEMENT
4. Regarding lean as “flavor of the month”
5. Resistance by middle management
6. Resistance by supervisors 15 LEAN
8 activities
TOOLS/METHODS
10of
steps
6 steps
MAINTENANCE
ofof
IMPLEMENTATION
PREPERATION
& IMPROVEMENT
: : :
7. Resistance by workers 8. Training multi-skills and career
Selection
Company-wideand leanleanimplementation
implementation of a prototype area among shop floors
8. Failure of previous improvement projects 1. Acknowledge
Human resource leandevelopment
in principle and practice; identify the meaning of lean implementation
14. 5S
7. Select
Reviewan and
initial
learnscope
lessonsof project
from lean(prototype orientation
implementation
area, product, for workers
at prototype
process) area
9. Unexpected occurrence of big problems during the implementation 2. inQuality
current management
circumstancedevelopment
by top management 9.and key positions.
10.Ineffective coordination
15. Visual
8. Define management
Establishcustomer
and get values
approval andoftakt-time
lean expansion Andon
requirements
for remaining production areas
3.
2. Attain
Institutionalization
the agreementofoftools top and
management
methods intended
for
10.the urgency
tochange-over
reinforce
of change
continuous
through lean
11.Economy crisis and strong competition divert the implementation 16. Work
9. Applystandardization
Review lean
the principles
requirements to such
balanced
other functions
between Quick
“make”
as planning,
or “buy”
marketing, supplying,… with
12.Absence of dedicated and fully resourced implementation team 10.implementation
4. improvement
TPM
main(Total
Design culture
as a:current
and Productive
activities
analyze
like way
suchto as
realize
5S,
andKaizen
Maintenance)
Selection Value company
Stream events;
11.
implementation
Map vision,
Policies
Error
(VSM) strategies,
deployment
Proofing
of suitable core
lean values.
tools for supportive
4.
3. Build
5. Leana(Value
implementation
Lean Project and forProject
regularTeam
and headed
irregular
12.by products
a top leaderand
(i.e.Monitoring
CEO)
13.Not enough training (for management and employees) 11. VSM
Draft
units to getStream
andproduction;
approvalMapping)
Selection
for futureof suitable
VSM production Lean Metrics
scheduling in accordance with
5.
4. An
6. Expansion
implementation
of pull system
plan isto established
partners inbysupply
Team chain,
Project such
andas
approved
customers,by top
suppliers
14.Poor control of external negative factors 12. Lean
“pull”layout
Deploy principle;
necessaryInventory
adjustment management;
of shop floor 13.
Lot PDCA
layout
size in(Plan-Do-Check-Act)
optimization;
accordance Production
with lean principles
leveling;
6. management
7. Audit and(Scheduling,
Heijunka evaluation of outcomes in comparison
Leveling) 14. Pull with
systemtargets
and and measures
kanban
15.Failure to understand the scope of lean management system 13. Apply
Supplysuitable
planning lean
in accordance
tools/ methods withto lean
prototype
principle;area,
Reduction
such asof Identification
work-in-process;
of 7 wastes,
16.Failure to monitor and evaluate the outcomes (Poor metrics)
7.
5. In-depth
Long-term
5S
Resources lean
and Visualstrategic
training
adjustment and
for
Management, short-term
key members
to facilitate plans(sensei)
balance
15.
Work standardization, Kaizen
lean implementation team building
TPM, Error Proofing, ect.…
8.
6. Basic
Leanlean
progress
training
evaluation
for all workers
by oneself or by third party

7 8

Key results and findings Key results and findings

2. A case study - Lean Implementation at Dong 2. A case study - Lean Implementation at Dong
Nam Viet Carton Packaging Co.,Ltd. Nam Viet Carton Packaging Co.,Ltd.
 Pilot Lean Project : April – July, 2009 2.1. Verifying the aspects of a successful lean
implementation with key results of lean project
 Kick-off Lean Project : March – October, 2010
After
Productivity : + 10% …+ 48% ( Manual)
+ 3% …. + 50% (Machinery)

N/C ratio : 7%  3.6% (main machine)

: 0.5%  0.19% (printing machine)

Inventory: - 34% (main material) Change-over time :

: - 17% (Finished goods) - 0.35% …. - 35%

Before
Others : Better 5S, TPM, Multi-skilled
workers, wages and benefits

9 10

Key results and findings Key results and findings

2. A case study - Lean Implementation at Dong Nam Viet
2. A case study - Lean Implementation at Dong Nam Viet Carton Packaging Co.,Ltd.
Carton Packaging Co.,Ltd. 2.3. Verifying the key factors to promote a successful lean
2.2. Verifying the aspects of a successful lean implementation with transformation with questionnaire analysis and in-depth group
questionnaire analysis and in-depth group discussions discussions

GENERAL
FACTORS
GENERAL
FACTORSRESULTS
FACTORS
FACTORS
OF
RESULTS
FURTHER
FACTORS
OFOF
FACTORS OF –RESULTS
CONTINUOUS
PEOPLETOP 1010FACTORS:
–ORGANIZATION:
OF
GENERAL OF
COMMENTS:
BOTTOM
LEADERSHIP:
CULTURE:
CAPABILITY:
IMPROVEMENT:
EXECUTION:: FACTORS:
Organization

4All
aspects “important”
aspects or “remarkable”:
are “confirmed”
Further comments: or 
1.

1. All
 Business
The
Role
All
Role high
ofTop
factors
mentioned
of Model
Top
agreement
are management,
“confirmed”,
Management factors and
inare tight
Involvement
co-operation
except
“confirmed”.
directing, for and
motivating
 Better use of total space, Better use of working time, Better  All

2. Factorsfactors
Factors
Governance ofand are
relating
Type
“confirmed”
Leadership, to Business Peopleand
Model,
 “observed”  among
commitment
2. Optional
Involvement
Important executives,
solutions to
factors: change
Communist
and
Commitment from
subordinate
Vision, top
tovalues,party
Change andof
plans,
code
Change for better
Reinforcement
Improvements and
of leadership
key style,of
development
performance
inventory management , More flexible workforce. 
3.

considered
Capability,
Governance
Important
Optional
Labor
management
3. Important
Application
as
solutions
Union are
factors:
of
“remarkable”
Execution,
factors:
Type, and Size Continuous
of
subordinate
areof“remarkable”
Balanced key capital
determinants
Scorecard plans
orand and
nearly
at DNV,
 Average
corporate
indicatorslevel isthinking
:vision, 6.91
core
productivity,which
valuemeans
 Systematic ways to find out and holistic approach to
management and
quality 4.

conducts,
Legal
4. Application
asset,
aImprovement,
Corporate
“absolute”
limited
standards;
compliance
Technology
having
company of Balanced
its and
Reasonable
standard,
vision,
owned Culture
values,Scorecard
Human
code
mostly areof
by is
conducts,
state
eliminate all kinds of wastes, More satisfaction for on-site  change
Corporate
persuasive project
situation capability
for in envisaging
change; Agreement
Lean Culture “quite a lot”
inspections from customers  more opportunities for
customer
ratio, time value addedinventory
response, orientation .
5. most
 Available
standards
Resource,
 kick-off relevant
that
important
“confirmed”.
member.
For factor ItofLife
shows
and(management
competences
are stated
span
Leadership
lean
developing the
projectclearly
and
high
new
and of
style human
comprehensively
Industry
commitment
competences from
business. 5. on strategies
resource
Corporate havingand cultureplans and
that to respond
workers)
facilitates to
theforabilities and
top leaders.
Arbitrary/
Experience
project
difficulties are
team
and Autocracy
“not
obstacles andprevent
confirmed” Non-arbitrary

 There
For relevant
isofnot
Total, mostmuch
to lean theto
difference
importanttransformation amongareinof
wholefactors
 efficiency
 Better monitoring system and measures, Better way of transformation
readiness individuals and organization
Reinforcement and development of
training for new comers, Better employees’ attitudes and
 Role
6.

non-decisive
ofimplementation
Resources
Continuous
their
Factor
workers
 assistance
initiatives
change
respondent
Corporate andgroups ofis lean
plans
re-allocation
Application
are
highly
Improvement,
“not
from
in
capability
of to appreciated
confirmed”
consultant
misleading;
evaluating
facilitate
qualityin at
thanks
the each
Leadership,
planning
Lean  to 
6. Resources Democratic
Policies,
Stakeholder change of
re-allocation
rituals is mindset
“observed”
facilitating
communication to and working
facilitate the
continuous theleveland
Production current corporate competitive
behaviors,… transformation
factor,
and
management
behaviors.
that
Culture
implementing
“remarkable”.
is, methods
they havetraining
the the best
such as programs
 Organizational change : goals –oriented planning not only 7. transformation,
Decision
Application
improvement making
of Communication
manner
Performance
culture Management management
(KPI,…)
competency or creation of new  agreement
ISO/TQM/…onisnew
Continuous
For factor on
Decision theexperts
working
and
Improvement importance
Role
making methods
of Labor
oractivities
manners for
and
Union
andthe
new and
for business, but also for political system  are considered “important” or “remarkable”
Execution

8.
 Corporate
Assistance
For
There Top ofcapability
external
Management,
not much in career
difference planning
lean
most among and
consultants
important
Lean
 Sustainable development : better environment protection,
competitive competency factors
9. by Top
other
policies,
employee
Corporate relating
management
Communities
Centralized-based
and
management, Lean
developing
having toCulture
reasonableContinuous
methods
are
but isand“confirmed”
“not
must
they confirmed”,
arebeeach
persuasive with
lesssituation
better use of all kinds of resources, better corporate social factors
respondent
Improvement.
for are of
groupsCulture,in Execution,
evaluating and
factor,
Mindset thechange
established,
9. meaningfulDecentralized-based
Corporate
level toimplemented
Resources
nearly remaining and
and
and Competency
“quite Process/
maintained
respondents.
a lot”.
that is, they have
Continuous a high agreement ontothe
ofisImprovement
responsibility, higher and higher profitability for 10. consistently
Transformation initiated by a change projectunder new
10. Sustainment
Procedural-based
in ethics, code of conducts
of the
the future.
employees, and then better company’s image and are “confirmed”
importance
management
the impacts model most
(like leanbenefits
of temporary factors
project, 5S, TPM,…)
reputation.

11 12

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Key results and findings Recommendations for Lean Consultants

2. A case study - Lean Implementation at Dong Nam Viet
Carton Packaging Co.,Ltd. Recommendationson
Recommendations onoperational
strategic perspectives
perspectives
2.3. Verifying a suitable roadmap/approach to promote a successful lean  Lean consulting market in Vietnam is promising but challenging because of high
 Lean transformation
consulting service is should
not merely a technical-based
be offered by consultants
demand for lean learning, experimenting and practicing but lean training and
model,
in termsbutof a
transformation
contractual
mostly
consulting project
a human-being
services arewith key measurable
stillbehavior-oriented
low. Consulting firms goals
way.approved
shouldLean atlabor-
the project
focusconsultants
on
DIFFICULTIES/OBSTACLES
GOOD THE INFLUENCE
PRACTICES OF LEAN
TO LEAN
TO FACILITATE TOOLS/METHODS
TRANSFORMATION
LEAN TRANSFORMATION beginning
should
intensive and validated
trymanufacturing
their best tofieldsat
playthe project
well
like termination
the role
garment andof by client.
elitefoot
textile, trainer
wares,orfishery,
coach ect.
in
 All
 proposed
a dedicated leanlean
teamtools/methods
with clear roles and areresponsibilities,
“confirmed/ observed”
and
MAINTENANCE planned& in training
 Methodology activities,
Lean manufacturing iscreative
and best an supporter
practice
really of project
endless for management
practical problem solving
way to totally andand
change whole-
a business
 4the PREPERATION
difficulties IMPLEMENTATION
case. namely Back sliding to the old ways of working,
activities Lack of a crisis to
IMPROVEMENT from non-lean
hearted
management guideto leanplanning
for one with
consultancy diverse bebenefits.
activities.
should It in
means
In addition,
applied that
they
careful lean
and consultants
should
creative
 create a sense of urgency,
more investment A traditional
in training cost accounting
(lean re-training for each 3system
monthsdoes notan
for old need not only
function
manners. as
Such having
toolsdeep
objective knowledge
critical
and methodsarguers about
are as lean
for principles
strange
project newbut
scope alsoabout
ideas practicing
management,
 recognize
Most lean tools/methods, except TPM, Andon, Kaizen Team
the financial value of shop-floor improvements, and Not enough
new workers) lean tools and methods intelligently, creatively and continuously depending on
Building, are considered as “remarkable”. time management,
changing the way stakeholders
of thinking, management,
working and communication
treating each other.
training
PROPOSED (for management
more investment and employees)
in initiatives
ROADMAP/APPROACH and innovationare LEAN
FOR “confirmed”
relating in practice
to lean the case, in
TRANSFORMATION real context of each enterprise.
 management, Gantt chart, work break-down structure, and“sensei”
so on.
 which
 5S, Back sliding
reinforcement
Visual to the old ways
of monitoring
Management system
and of
Workworking in and
considered
withStandardization
clear adequate “quite a lot”.
measures
are of most  For
Leanmaintaining
transformation activities,
is the game a group of pioneers
for insiders, so-called
not for outsiders. Lean consultants
 popular
human resource
and policy deployment
preferable to motivate employees, such as awarding
leanimplementation
tools/methods.  Lean
should
shouldproject
be only
not should
builtgive be initiated
up their
and received
best inmore
efforts atoprototype
gaininvestmentareafigures
short term selected
for through
training, lean a
in production
 All
 steps
At DNV, proposed
they have for
not much lean
difficulties are
regarding Resistance
policy, appraisal system accompanied with lean KPIs, and so on
“confirmed”
by middle
careful
but alsogeneral
transferdiagnosis.
tools/methods and practiceJust
transferring after
alland
tools reviewing
and methods
coaching from what have
relating achieved
to the
consultants. change atof
 management,
 No meaningful
integration
by supervisors,
between difference orin
byevaluation
lean management
workers, Regarding
and otheramong lean
management
as “flavor
groups of of the
systems, such working thinking,
prototype workinglessons,
and learning ways andcompany-wide
working attitudes for all levels
activities of be
should
month”, Failure of previous improvement projects, Ineffective coordination,
respondents.
as ISO 9001, ISO It means there is a high agreement on influences of
14001
Absence of dedicated and fully resourced implementation team, Failure to management and
implemented. employees.
Such tools as 5S, Visual management, 7 wastes
 lean
reinforcement of
tools/methods measurement-based, fact-based management style for
understand the scope of to leanlean implementation
management system. at DNV.  identification
In order to implement lean successfully,
are of most preferableconsultants need strong
and easiest-to- use. commitment
managers at all levels. and support from top leaders of the organization.

13 14