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How to Implement Lean—The Pr escription for the Lean Pr oject       141


                       It always happens. It is not only inevitable, it is necessary. This is the second phase
                    of group development: let’s call it chaos (a term coined by M. Scott Peck). This chaos has
                    developed because the realities of life have been imposed on the group, and differences
                    that they initially did not envision are popping up all over the place. These differences
                    are now creating problems. Furthermore, having just left the cocktail party, so to speak,
                    they don’t really know how to handle the problems.
                       This is the earliest time we would want to do the second evaluation. Without this
                    chaos and some understanding of the chaos, there is no real context to have a deep and
                    meaningful evaluation. That chaos is often felt as early as three months after kickoff,
                    but more typically in the 6- to 18-month period afterward. It is at this time that it is
                    appropriate to do the second evaluation of management commitment. This will be a
                    very sensitive evaluation and it will require good planning by both the Lean leader and
                    the sensei. All too often, because it is sensitive and brings up problems most groups
                    work hard to avoid, it is frequently avoided. Doing this evaluation will be a test of the
                    courage, character, and resolve of the Lean leadership and the facility’s management.
                       Just so you are aware, two more phases of group development exist. These are
                    called forming and performing. In forming, the group must confront the differences,
                    and then by using honest open communication and problem solving, they can resolve
                    the differences. This is easier said than done, however. After accomplishing this stage,
                    the group can then move into performing. In the performing phase, the group will be
                    able to effectively and efficiently execute its mission. (There is some very good informa-
                    tion available on group dynamics. I recommend The Different Drum (Simon and Schuster,
                    1987) by M. Scott Peck and The Team Handbook by Peter R. Scholtes (Joiner Associates,
                    1988) . Both are excellent.)
                       Since the second commitment evaluation may be more than a year off, I have
                    attached it as Appendix A at the end of this chapter.

                    The Five Precursors to Lean

                    Background
                    The Five Precursors to Implementing a Lean Initiative have an interesting history. In the
                    late ‘80s and early ‘90s, when the first U.S. firms were implementing JIT (Just In Time)
                    systems, a large number were encountering problems. Many firms were able to reduce
                    inventory volumes significantly but often other problems developed. Frequently, the
                    production rate would drop—this was the worst and also the most common of the
                    problems. Other less serious issues cropped up as well. Once these unexpected prob-
                    lems surfaced, we would then be asked to assist these firms as they tried to work out of
                    the JIT mess they had so carefully managed themselves into. After a few experiences,
                    we found that the reasons these groups had failed could be classified into a few catego-
                    ries. In addition, about this time Ohno’s book and several others became available,
                    which more fully explained the TPS (Toyota Production System) and the JIT portion
                    that so many firms were trying to copy.
                       Upon reading Ohno’s book, and with further study of the TPS, it became obvious
                    that the TPS was vastly superior to the production system in most North American firms,
                    even if these North American firms had already implemented the JIT system. We quickly
                    realized that the majority of the problems were related to this fact—that is, the TPS is a
                    superior manufacturing system, with or without JIT. We also concluded that when Ohno
                    began his quantity (note: that is QUANTITY) control and seriously undertook his JIT
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