Lean Thinking Six sigma Balanced scorecard Total Quality Management
Lean thinking is a highly evolved method of managing an organization to improve the productivity, efficiency and quality of its products or services. American and Japanese management specialists developed ideas and methods over the latter half of the last century. These management techniques have been employed both in the aerospace industry (Boeing) and in the auto sector (Toyota).
The core idea is to maximize customer value while minimizing waste. Simply, lean means creating more value for customers with fewer resources.
[...] Such that you produce only what the customer wants when the customer wants it. Pursue Perfection - Creating flow and pull starts with radically reorganising individual process steps, but the gains become truly significant as all the steps link together. As this happens more and more layers of waste become visible and the process continues towards the theoretical end point of perfection, where every asset and every action adds value for the end customer. The tools of Lean Thinking Balanced Scorecard The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. [...]
[...] Jones, Harvard Business Review The Next Revolution in Production by Ric Merrifield, Jack Calhoun, and Dennis Stevens, Harvard Business Review, June 2008 The process audit by Michael Hammer, Harvard Business Review, April 2007 TRIZ as a Lean Thinking Tool by Sergei Ikovenko, ExpertBase.org, Improving Production With Lean Thinking by Javier Santos, Richard A. Wysk and Jose M. Torres, March 2006 The Remedy: Bringing Lean Thinking Out of the Factory to Transform the Entire Organization by Pascal Dennis, July 2010 Product Lifecycle Management: Driving the Next Generation of Lean Thinking by Michael Grieves, April 2008 Lean Thinking: Banish Waste and Create Wealth in Your Corporation by James P. Womack and Daniel T. [...]
[...] As you can see on the above graph, the 4 strategy perspectives needed to appear: Financial: how do we look to shareholders? Translate the purpose of the organization into action through clarifying precisely what is wanted and gaining commitment to it. Customer perspectives: How customers see us? Purpose needs to be seen in the context of customer oriented strategy. It should include normally market share data but also areas such as customer retention, customer profitability, customer satisfaction, etc. Internal perspective: What must we excel at? [...]
[...] It provides feedback and learning through strategy reviews and sharing comments on the outcome of events. The effects of highlighting, the importance of communication and linking people with the purpose through education, goal setting and rewards for achieving the required performance. Total quality management (TQM) The philosophy of W. Edwards Deming has been summarized as follows: "Dr. W. Edwards Deming taught that by adopting appropriate principles of management, organizations can increase quality and simultaneously reduce costs (by reducing waste, rework, staff attrition and litigation while increasing customer loyalty). [...]
[...] PRINCIPLE Life and business is stable and unstable processes are different. If a process is stable, understanding this principle will allow you to realize that all of the crises that you face on a daily basis are nothing more than the random noise (common causes of variation) in your life. Reacting to a crisis like it is a special cause of variation (when this is in fact a common cause) will double or explode the variability of the process that generated it. [...]
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