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The Lean Strategy: Using Lean to Create Competitive Advantage, Unleash Innovation, and Deliver Sustainable Growth 1st Edition Daniel Jones full chapter instant download
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The Lean Strategy: Using Lean to Create Competitive Advantage, Unleash Innovation, and Deliver Sustainable Growth 1st Edition Daniel Jones full chapter instant download
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THE
LEAN
STRATEGY
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THE
LEAN
STRATEGY
Using Lean to Create Competitive
Advantage, Unleash Innovation, and
Deliver Sustainable Growth
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To all of our sensei
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CONTENTS
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii
Introduction: The Meaning of Lean . . . . . . . . . . . . . . . . xvii
vii
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PREFACE
ix
x | Preface
them by forming new solutions step by step, involving the teams them-
selves in practical controlled experiments and changes.
• Lean is a learning system that each Lean leader can develop in his or
her own company starting with an understanding of how the template
of the Toyota Production System can be used to establish a North Star
for customer satisfaction and profitability. Lean supports individual
learning through stopping and investigating rather than living with
defects and errors, encourages cross-functional learning by using the
tools of just-in-time to reduce all lead times, and grows employee sat-
isfaction and mutual trust by creating a different work environment in
which problems are seen as the fundamental material for improvement
and problem solving is at the heart of the firm’s culture.
• A Lean understanding of how the various financial elements of the
business really generate the bottom line and how Lean leaders use
greater wisdom in their financial management to support the ingenuity
of their teams and sustain genuine innovations from improving capa-
bilities and developing individual competencies. In the Lean approach
to finance, the success of the company starts with the personal success
of each employee, and management supports a positive relationship
between each person and his or her work and customer satisfaction.
• Lean provides insight into continuous innovation by using the learning
system to discover value analysis and value engineering opportunities
to concurrently develop engineering, production, and supply chain
capabilities to deliver breakthrough (and industry-changing) inno-
vation from team-based kaizen.
We hope that this book will inspire readers to begin their own exper-
iments in searching for a better way of managing as if people matter. Join
us on this journey to make the world a better place.
ACKNOWLEDGMENTS
xiii
xiv | Acknowledgments
From Orry: There are too many people who have helped me to grow in
my thinking about Lean to list them all here. That said, I would like to
acknowledge the influence of Dr. Edwards Deming, Thomas Johnson,
and Robert Kaplan, on my initial foray during the late 1980s into ques-
tioning what I had previously been taught, and I had practiced, about
management and accounting. Listening to Dr. Deming for four days and
reading Johnson and Kaplan’s pioneering 1987 book Relevance Lost: The
Rise and Fall of Management Accounting1 turned my world upside down.
I would also like to express my appreciation to all of my teammates at
The Wiremold Company, especially between the years 1991 and 2002. This
team, led by Art Byrne, our CEO, understood that Lean was the strategy
that would allow us to serve all of our stakeholders better. This did not
come without some initial difficulty, but as soon as people began acting
differently and seeing the enormous benefits of doing so, the team came
together to successfully implement our Lean strategy. I would also like to
pay tribute to all those who read this book and finally abandon traditional
strategy thinking and adopt Lean strategic thinking.
In the spirit of “life-long learning” (or as one of my professors called
it “rust proofing”) I would like to acknowledge how much I have learned
from my coauthors. Lots of things that I thought I knew have become
much clearer because of their collective contributions to this book. Thank
you to each of you.
Acknowledgments | xv
From Jacques: This book is a learning journey that started 10 years ago
when Michael Ballé helped me and my teams transform ourselves and turn
around our company. Thank you, Michael, for this incredible gift.
My gratitude goes to the Socla and Danfoss teams, who shared this
fruitful journey, particularly Frédéric Fiancette, Eric Prévot, Lionel
Repellin, Christian Amblard, and Mathias Fumex. Thank you for having
never given up!
My thanks to the worldwide Society for Organizational Learning
(SOL) community and its organizational learning approach that helped me
enter Lean through the right door: Peter Senge, Arie de Geus, Irène Dupoux-
Couturier, Heidi Guber, Odile Schmutz, Alain Gauthier, and Gilles Gambin.
Many thanks to my friends at APM, a unique management network,
for sharing their own Lean journeys: Frank Flipo, Stéphane André, Alain
Genet, Philippe Counet, and Stéphane Lequin.
My gratitude to these great entrepreneurs, friends, and real Lean strate-
gists: Pierre Bellon, founder of Sodexo, Jean Chagnon at Lallemand, Jorgen
Vig Knudstorp at Lego, and Niels Bjorn Christiensen at Danfoss.
Finally, to Chloé, Quentin, Henri, Clément, and Hugo, our five grand-
children, may this book be, in a few years, a useful read for their future
entreprises!
Brunt, Rene Aernoudts, Wiebe Nijdam, Oriol Cuatrecases, Steve Bell, Alice
Lee, Eric Buhrens, and the leaders of the LGN Institutes—dedicating their
efforts to spreading Lean across the world.
Then all the Lean authors who have contributed to our discussions
on the Lean Edge (www.theLeanedge.org), Planet Lean (www.planet-Lean
.com), and the Lean Post (www.Lean.org/LeanPost/).
Also the following for taking the time to review this manuscript and
giving us valuable feedback: Art Byrne, John Shook, Jeff Liker, Torbjorn
Netland, Arnaldo Camuffo, Pierre Masai, Cliff Ransom, Ed Miller, Gary
Brooks, and Jyrki Perttunen.
My warmest thanks to my wife Pat for surviving “another book.”
Also Michael’s father, Freddy Ballé, one of the earliest true Lean pio-
neers in Europe, without whom this book would not have happened.
Thanks as well to our McGraw-Hill editors Knox Huston and Donya
Dickerson.
And finally, thanks to my fellow authors who have made this book
writing process such a rich experience—I am really proud to have been
part of such a unique team.
INTRODUCTION
xvii
xviii | Introduction
large. The Lean strategy is about using your company to change the story
of your industry.
Consider Toyota, the primary source of what today is known as Lean.
For many years Toyota has been changing the story of mobility. Planned
obsolescence was a mainstay feature of the automotive business until
Toyota changed the game by offering top quality cars in the low range of
the market at affordable prices. Quality became free. Today the slightest
doubt about a new car model’s quality dramatically damages its reputation.
Gas guzzling and high emissions were once accepted as prices to pay for
power (at a time when electric cars were seen as an unrealistic pipe dream
for future generations to figure out) until Toyota learned how to succeed
with hybrid fuel-electric models that started with the Prius and now extend
across a wide range of models (8 million sold and counting). What were
once seen as necessary trade-offs are now viewed as complementary parts
of the total equation. And Toyota has in fact made its next impossible goal
public—to produce a hydrogen-powered car whose exhaust is . . . water.
Toyota changed the story of the auto industry by learning to design
and build high quality cars more effectively than its competitors well before
it went on to pioneer alternative power train technologies. This fact belies
the common assumption that technology is the only way that the story of
an industry can be fundamentally changed. Many studies of technology
show that user acceptance and legacy organizations and mindsets are the
biggest constraints on realizing the opportunities opened up by new tech-
nology.1 Toyota created the learning culture able to develop these break-
through technologies and the ability to scale them quickly through several
product generations as the market for them grew. In so doing, it created
what the deep thinker Takahiro Fujimoto has described as an “evolu-
tionary learning capability.”2
Toyota is far from a perfect organization, and any of its leaders would
agree that it has just as many problems and flaws as any other automaker.
The difference lies in the fact that its executives have learned to embrace
these problems and face them with their frontline team. That doesn’t make
Toyota perfect, but it makes it visibly better than its competitors (as the
world’s sixth most valued brand in Forbes’s ranking, Toyota is the top indus-
trial one, and it is way ahead of its competitors). Actually, Toyota does not
seek to be perfect. It strives to be better today than it was yesterday and to
be better tomorrow than today. Its leaders have discovered that sustainable
Introduction | xix
By Neal Dow
Be cautious with whom you associate, and never give your company or your
confidence to persons of whose good principles you are not certain.—Bishop
Coleridge.
NO company is far preferable to bad, because we are more apt to catch the vices
of others than virtues, as disease is far more contagious than health.—Colton.
By Henry H. Hadley
The youth who bathes in pleasure’s limpid stream
At well-judged intervals, feels all his soul
Nerved with recruited strength; but, if too oft
It chills his languid virtue.
—Mason.
My boy and my son, I advise you not to touch a card. Don’t learn the
game or watch one. One of my companions fell dead in a gambling
house by a pistol shot from his own gun. His name was “Ben” Miller.
His partner “Froom” Featherly, said to me, “I wish I lay there with
poor Ben. When I learned to play cards at mother’s dining room
table she never thought it would come to this. Gambling is so fixed in
my mind that I cannot stop.” Drunkenness is insanity of the
stomach, gambling is insanity of the morals.
CHAPTER XVII
Be Cautious of Baneful Amusements
It is related that during the reign of the bluff King Hal, there lived a
knight named Sir John Giffard, of Chillington, who possessed a
beautiful leopard. One day the animal escaped from its cage, and Sir
John and his son at once gave chase, for they knew that the leopard
would spare no human being it might meet. At the top of a hill, a
mile from his house, the worthy knight saw the animal about to
attack a woman and child. Sir John was armed with a bow and
arrow, and rather breathless through running; his son, fearing his
shot might be too weak, shouted, “Take aim, draw strong!” Never
was surer aim taken, for Sir John pierced the leopard’s heart, and
saved the woman and her babe. In consideration of this brave and
skilful deed, the Giffards of Chillington adopted as their crest a
leopard’s head and an archer with a bent bow, with the motto, “Take
aim, draw strong.”
This is what many good and great men have done in regard to
some amusements, the influences of which have proved destructive
to character. To enjoy oneself is a divine right, provided such
enjoyment does not injure health, weaken morals or lead others to
place a false estimate on living.
CARD PLAYING.
Don’t play cards. “Is it possible there is harm in cards?” you ask.
“Is it wrong to shuffle a few pieces of pictured and spotted papers in
the parlor?” No, my boy. But it is the harm which comes from them,
with no known excuse to palliate its pernicious consequences. Card
playing has a fascination connected with it. It seems as innocent a
game as swinging the mallet on a croquet lawn, but it is as dangerous
as a revolver in the hands of a child. It has dealt out death and
destruction by the wholesale. “It has made,” as Dr. Withrow said, “so
many noble lives base, upright people dishonest, rich people poor,
poor people painfully impoverished, and altogether it has a dark
indictment against it in the court of heaven.”
THE THEATRE.
THE DANCE.
BE CAREFUL.
ENJOY YOURSELF.
Enjoy yourself, my boy. “To dry up the fountains of mirth that are
within, to crush out the spontaneous impulses of merriment which
are a part of our complete life, is a crime against nature. Life will
have sorrows enough without making ourselves chronically
cheerless. The right of enjoyment is a divine right, and should be
lawfully used and enjoyed. Not only that, but it is invigorating.” “All
work and no play makes Jack a dull boy.” Running is good exercise,
the bat and ball strengthen the arm and gauge the eye, the oar and
boat broaden the chest and make the liberated lungs beat with life,
and not a few others, if not too greatly indulged, prove helpful rather
than detrimental.
Counsel yourself when invited to join in some pleasure: “What will
this amusement do for my physical development? Is there any
gymnastic exercise connected with it? What will it do for my
intellectual enlightenment? What will it do for the improvement of
my morals? Will it make me purer, nobler, better? Will it increase
piety, make me more useful to society, increase my happiness and
benefit my associates?” If it will, then indulge in it, if not, discard it.
A story is told of two men who were mowing in company. The one
in advance thought he saw a hornet’s nest just ahead, and he
cautiously paused. The other pooh-poohed his fears and mowed right
on exclaiming, “The wicked flee when no man pursueth, but the
righteous are bold as a lion.” But pretty soon he struck the nest and
was fighting the hornets that assailed him, whereupon the first, who
also had a knack of quoting proverbs, exclaimed, “The prudent man
foreseeth the evil and hideth himself, but the simple pass on and are
punished.” The prudent man had the best of it as he always does.
Other gifts and attainments, however ample and varied, are
negatived and neutralized without it, therefore in all pleasures be
discreet.
“It is sad
To think how few our pleasures really are;
And for the which we risk eternal good.”
By Anthony Comstock
In the heart of every boy is a “Chamber of Imagery.” Practically
speaking, this is Memory’s storehouse, the “Commissary Department
of thought,” “the Hall of Entertainment.” Bad books, foul pictures
and criminal stories are used by the spirit of evil to decorate the walls
of this Chamber of Imagery. When once there comes through the
doors of this chamber (eye and ear) either one of these influences for
evil, the looms of Imagination and Fancy (the reimaging and
reproductive faculties of the mind) are started in motion and then
the Chamber of Imagery becomes the Hall of Entertainment.
Charmed by pictures created by Imagination and Fancy a boy soon
becomes a day-dreamer and castle-builder. Led on by these debasing
allurements he soon develops into a full-fledged criminal. Thoughts
are the aliment upon which the mind feeds. If pure and holy, they are
like fertilizing currents flowing through the soul, enriching,
ennobling and beautifying character and life. If impure, sensational
and sensual, they are equally degrading, demoralizing and deadly in
their influence. It is as important that Imagination and Fancy have
pure material to work with, as that a stream shall originate in a
fountain free from deadly poison. “Blessed are the pure in heart, for
they shall see God.” The heart cannot be pure if the thoughts are
defiled.
CHAPTER XVIII
Be Chary of Bad Books
It is only about four hundred years since the first book was issued
from the press. Between 1450 and 1455 Gutenberg, the inventor of
the printing press, succeeded in publishing the first copy of the Bible,
but he was compelled to make the initial letters of the chapters with
the pen. As the years passed, many improvements were made, until
now, more than twenty-five thousand books are published annually.
Books are wonderful things. They are companions and teachers.
For their authors they cost much thought, time and expense; for the
reader they are cheap and helpful. They carry the mind fast and safe
the world over. “In the twinkling of an eye one can be exploring with
Livingstone in Africa, or campaigning with Napoleon or Grant. One
can meditate with Socrates, conspire with Cataline, steal the
Stratford deer with Will Shakespeare, swim the Hellespont with
Byron, weigh the earth with Newton, and climb the heavens with
Herschel.”
There being such an abundance of literary works, the question
often arises, “What should a boy read? Would it be wise to read
everything that comes into his hands?” By no means. To eat all kinds
of food, suitable or otherwise, would be sure to create disease. There
are the “scavengers” among animals, but there should not be such
among readers. To read everything would be most injurious. Good
judgment should be exercised in selecting the quality of books read
and no less in the quantity perused. There are books, which, if read,
would poison thought, corrupt morals and perchance blast the
prospects of the future. On the other hand, there are books which
stimulate the mind, strengthen the morals, comfort the heart and
prepare the life for usefulness and success.
GOOD BOOKS.
BAD BOOKS.