The Power of Lean: How Leadership Transformation Elevates Company Performance

By now, you’ve probably heard about Lean. It’s a powerful approach to management, which has its roots in manufacturing, but is used by many companies large and small to improve their processes and products.

As its name suggests, Lean is about eliminating waste — anything that doesn’t directly add value to the customer. This includes waste in time (waiting), materials (overproduction), money (overhead) and energy (people working on the wrong things).

Lean is a journey — not just a set of tools or tactics — and it takes time to become effective. But it can transform how you manage your people — giving you more time for important activities like coaching and developing your people so they can do their jobs better.

The Lean Leadership Journey

The journey to a Lean organisation is not an easy one. It requires a holistic approach and a complete mindset change. It takes time, effort and dedication to make the transformation successful. And it’s never over!

The following are some of the steps that you can take to start your journey toward becoming a Lean organisation:

Get everyone involved in the process. The Lean Transformation cannot be achieved through top-down management alone. The leader must work closely with employees at all levels to implement changes that will make the organisation more effective and efficient. Employees need to understand how they fit into this process, so that they can contribute effectively.

Set goals for improvement and measure progress toward those goals regularly. One of the primary reasons for implementing Lean practices is to improve business performance and increase efficiency, but measuring results will tell us if we’re moving in the right direction or not. We need to be measuring against specific goals set out at the beginning of the process (or before it began). This also helps us identify areas which need improvement as well as areas where we’re excelling.

The Lean Leaders Standard Work

Lean leadership Standard Work is a system that encourages continuous improvement and provides a framework for facilitating change. It requires leaders to focus on their actions, behaviours, and tools in order to drive continuous improvement in their organisation. This Lean Leadership Standard Work can be applied to managers, supervisors, directors, and executives alike.

Lean Leadership Standard Work encourages and promotes employees in organisations to reduce variation and improve performance. It also develops team members by demonstrating how to make smart changes and support people by defining what they should do when they take action.

Lean Leadership Standard Work can include:

  • Develop process standards alongside the process operators
  • Observing processes in action (Gemba Walks)
  • Asking 5 Why questions
  • Identifying gaps between standard & actual work (Audit)
  • Supporting process improvement
  • Coach and Mentoring Employees
  • Empowering Accountability and Responsibility
  • Deploying strategy

Lean Thinking as Leader

Lean Thinking as a Leader is about management that encourages you to make the most of your team and organisation. It is about creating an environment where people feel comfortable thinking “outside the box,” and where ideas can be considered, implemented, and monitored so that adjustments can be made quickly.

It requires leaders to be open-minded and encourages them to listen carefully to their team members’ ideas and suggestions. It also encourages leaders to collaborate with their teams in order to come up with better solutions for problems or issues. When everyone feels like they’re part of something bigger than themselves, they’ll be more likely to work hard toward achieving success in whatever it is they’ve been tasked with accomplishing.

The Lean Leader as a Teacher

A key concept in Lean is that people learn best by doing. Leaders must therefore create an environment where learning can happen, by encouraging employees to take on projects and responsibilities that stretch them, while also providing coaching and feedback along the way. The goal, according to Masaaki Imai (the author of Kaizen), is to help each employee become “Kaizen conscious, developing skills and tools for problem solving” — and this requires a great deal of effort on the part of managers in order to ensure that all employees are given opportunities to learn, grow and improve within their roles at work.

Eliminating waste is a key Lean Leadership Principle

Waste can be defined as anything that does not add value to the product or service being created. Waste occurs in all processes and can be categorised into three types of wasteful actions that negatively impact workflow, productivity and ultimately, customer satisfaction.

  1. Muda (or non-value-added work). These are activities that do not add any value to the end product or service, such as, Overproduction, Inventory, Defects, Motion, Over-processing, Waiting, Transportation.
  2. Muri (or overburden). This is when workers are asked to do more than they can handle efficiently, safely, or ethically.
  3. Mura (or unevenness). This occurs when there are unexpected fluctuations in demand for products or services due to things like seasonal change or competitor activity.

Waste takes time and resources to create, so eliminating it saves time and money.

Lean Leaders Put Customers First

Lean leaders are customer focused. They don’t waste time or money on anything that doesn’t directly improve the customer experience, and they know that this is the best way to grow their business.

This means that lean leaders put their customers’ needs first by:

  1. Listening to their customers and understanding their challenges and needs.
  2. Paying attention to what customers think about the product or service, and how they use it.
  3. Identifying areas where they can improve the products or services based on what customers say.

Takeaway: Lean leadership is about learning and improving.

A company benefits from having the right leadership in place, which ultimately helps a business to grow. They’ll learn from your customers, try new things, and challenge you in new ways. They’ll collaborate with others and actively seek outside support. Without good leaders, or without lean principles guiding those leaders, you’re going to get the same results: no learning and therefore no improvement.

Boost your team’s performance and your leadership potential with New Way Growth’s personalised Helping Managers to Succeed and Lead Programme. Let’s shape your leadership success story today!

How To Cut Waste And Increase Productivity By Implementing Lean Manufacturing

Lean Manufacturing is a culture and a strategy. It’s a way of doing things that helps companies improve efficiency, quality, and flexibility. It’s not just about tools and processes—it’s about people, too.

Lean Manufacturing is all about making things more efficient. It focuses on eliminating waste and finding ways to streamline workflows so that the company can produce more with less time and money.

Create a Lean Manufacturing culture

A Lean Manufacturing culture is an environment where people are taking responsibility for their own improvement, the improvement of processes and products, and the overall improvement of the company. It’s a culture built on trust, accountability, and continuous improvement.

In order to create this culture, it’s important to give employees the freedom to make decisions about how they do their job and then hold them accountable for those decisions. This can be tricky if you’re not sure what your employees’ strengths are or how they work best. But one way to develop this understanding is by asking questions like: “What’s been most helpful in improving your efficiency?” or “What practices have helped you achieve your goals?”

Once you’ve identified some of these practices, try them out on other employees! Make sure they’re working before adopting them as official company policy though—you don’t want anyone feeling like they’re being punished just because they weren’t included in testing new ideas before implementation!

Have the Upper Management Lead by Example

Lean is a powerful strategy, but it’s not something that can be implemented overnight. In order to make the most of your Lean efforts and get the most out of your employees, it’s important to have upper management lead by example.

Upper management should be actively engaged in the process of implementing Lean, from the beginning to end. They should also be involved in training new employees on Lean’s principles and ensuring that everyone is working together toward common goals. This will help employees understand how important their role is in helping you achieve those goals, which will increase their sense of ownership over their work.

Upper management should also be willing to let go of their preconceived notions about how things should be done in favour of allowing employees more freedom when it comes time to make decisions about how tasks should be completed.

Train your Team on Lean Basics

One of the best ways to get your team on board with Lean is to train them on the basics.

The Lean principles are not complicated, but they can be difficult to understand if you’re new to the concept. You should prepare your team by giving them a solid understanding of what Lean is and why it’s important before you start putting it into practice.

If your team doesn’t have a clear understanding of the principles, they will have trouble implementing them into their day-to-day work. If, for example, if you try to reduce waste without first explaining what waste is and why it needs to be reduced, then you’ll find that the effort isn’t effective or sustainable.

This is especially true when it comes to engaging your employees in Lean initiatives: if they don’t understand why they should participate in these efforts and how they’ll benefit from doing so, then they won’t be motivated enough to participate fully or consistently.

Value Stream Map – Study the Current Process

The first step in implementing Lean is to study the current process. This will help you identify areas of improvement and determine whether or not you are ready for the changes that will be necessary to make this happen. You can do this by performing a value stream map, which is a visual representation of your workflow.

The process should be broken down into steps. You want to look at each step and ask yourself what can be done to improve it, and how this change might affect other parts of the process as well. It is important to consider how each step impacts other steps, so you can look at all aspects of your operations and make sure that they are working together effectively.

Look for Waste and Remove It (Muda – Waste, Mura – Unevenness, Muri – Overburden)

You can define waste as anything that detracts from the value of a product or service you’re producing from your customers’ point of view. Waste can take many forms, such as overproduction, unnecessary resources, and more. These things need to be eliminated so that organisations aren’t creating products or services that don’t add value.

Muda is any kind of wasted motion, such as unnecessary steps in a process or unnecessary travel between locations. Mura refers to unevenness in the production line—it means one part of the process might be operating at peak efficiency while another part is idle or struggling just to keep up. Muri refers to overburdening people with too much work—this is often seen when you have an employee working alone on a task that should be split between two or more people to match customer demand (TAKT).

Map out the Main Bottlenecks

The main bottlenecks in a process are the aspects of the system that are limiting its throughput.

In order to identify these, you’ll need to first look at or build your Value Stream Map or Process Map and identify where there are bottlenecks. Then, you can work on fixing them by identifying what’s causing the bottleneck and finding ways to remove it. This may involve making changes like adjusting how people work together, reducing change-over times, increasing the Overall Equipment Effectiveness or changing how tasks are assigned (e.g., having workers perform different parts of a task).

Once you’ve identified where your bottlenecks are, you can start working on removing them.

Standardise Everything

This means that you need to define what “standard” means, and then make sure all employees are aware of it and trained to it. Standardising your processes gives consistency in how your team members perform their tasks. 

For example, if you’re a software company and you’re trying to improve efficiency by standardising on coding practices, then every employee should know which practices are allowed and which are not allowed.

You should also standardise your equipment and tools. If multiple employees use the same equipment or tool, everyone should use it in the same way every time.

If your company has multiple locations, then standardising everything is even more important because it helps create consistency between locations. If everyone knows what standards they need to meet at each location, then they’ll be able to work together better across locations knowing the desired quality will always be met.

Develop a Continuous Improvement Mentality

Implementing lean means shifting your focus from your business’s outputs to its inputs. But if you’re going to do that, you need to first develop a continuous improvement mentality.

To do this, you have to be willing to adopt an attitude of continuous improvement and continuous learning. You need to be constantly looking for ways that you can improve how things are done in your office or factory and how they contribute to the overall success of your business.

You also need to be willing to consider new ideas, because one of the main tenets of lean is that there are no bad ideas—only challenges in implementation. If someone suggests something new or comes up with a way of doing something differently, try it out! Even if it doesn’t work right away, you may learn something valuable about how something works or doesn’t work within your organisation.

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The 7 Wastes: Unseen Thieves in Your Business

In the world of lean manufacturing, ‘The 7 Wastes’ are infamous for their stealthy operations, silently chipping away at profits and productivity. These wastes fly under the radar, often going unnoticed by even the most astute professionals. Yet, if left unchecked, they can cripple an organisation’s ability to remain competitive and responsive to customer demands.

The Infamous Seven: TIMWOOD

Meet the hidden culprits named TIMWOOD, an acronym that represents the seven wastes in manufacturing:

7 Wastes Infographic

Transport (Unnecessary Movement of Materials)

The unnecessary movement of materials from one place to another is often the result of poor shop layout or a disjointed process flow. This waste can lead to an increase in handling which may cause damage or loss of materials, delays, and added labour costs. Eliminating this waste requires a streamlined approach to layout design and process flow optimisation.

Inventory (Excess Products and Materials)

Excess inventory is a common issue where production outpaces demand, leading to tied-up capital, storage costs, potential obsolescence, and increased risk of damage or loss. Inventory levels should be scrutinised, and techniques such as Just-in-Time (JIT) production and demand-driven planning should be considered for improvement.

Motion (Unnecessary Movement by People)

Similar to Transport, Motion refers to any movement by employees that does not add value to the product. This can range from reaching for tools to walking between workstations. Reducing unnecessary motion is integral to improving ergonomic conditions and efficiency. This reduction can be achieved by redesigning workspaces to minimise reach and travel distance and by standardising work procedures.

Waiting (Idle Time)

When employees or machines are idly waiting for the next step in production, this represents a significant waste of time and resources. This can be due to poor workflow, machine breakdowns, or bottlenecks. Tackling this waste involves a thorough analysis of processes to synchronise work steps and to ensure a continuous flow.

Overproduction (Producing More Than Needed)

Manufacturing items before they are actually required or in quantities exceeding customer demand results in overproduction – the root of many other wastes. This can lead to excessive inventory and increased holding costs. To nip overproduction in the bud, implement pull systems based on real customer demand.

Over-Processing (More Work Than Required)

Over-processing is seen when more work is done on a product than what is valued by the customer. This waste occurs due to unclear customer specifications or internal miscommunication. Reducing over-processing demands a clear understanding of what the customer values and aligning the production process to those standards.

Defects (Production that Requires Rework)

Defects and the need for rework can be the most apparent and costly form of waste. They lead to wasted materials, labour, and time, not to mention the potential to harm a business’s reputation. A culture focused on quality—like adopting Six Sigma or Total Quality Management (TQM)—can significantly curtail the occurrence of defects.

Identification and Elimination Strategy

Recognising ‘The 7 Wastes’ is the first step to effective lean management. It’s essential to develop a keen eye for these wastes and instil this perspective across all levels of the organisation. This is not a “once in a blue moon” activity but a regular practice that should be embedded into the daily routine. Regular audits, employee training, and a culture that promotes continuous improvement are key factors for success.

To embed this practice, create a system of visible metrics and feedback loops. This promotes responsibility and awareness amongst teams. Engage employees in problem-solving and encourage them to take ownership of their workspaces, suggest changes, and implement improvements.

7 Wastes within a process

Continuous Improvement: The Lean Way

To enter into a sustainable cycle of continuous improvement, adopt the PDCA (Plan-Do-Check-Act) methodology. Regularly plan improvements, do them in controlled conditions, check the outcomes, and act to standardise and stabilise the improvements.

Key Takeaways

Employing strategies to eliminate the wastes identified by TIMWOOD ensures a company’s ability to thrive in today’s competitive marketplace. By fostering a culture of continuous improvement, providing employee education, and implementing systems that promote efficiency, companies can not only identify waste but turn it into opportunity – for growth, for innovation, and for delivering value to customers that rivals cannot match.

If you need help applying these principles and taking practical steps towards eliminating waste, our team at TCMUK Limited is equipped to guide you through the process. The impact of addressing ‘The 7 Wastes’ can be profound. Call us at 0330 311 2820 or email info@tcmuklimited.co.uk to unlock the full potential of lean in your operation.

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How Good is Your Factory? Are there Opportunities?

It’s easy to feel like a factory tour is something that happens once every couple years, but in reality it’s something that should happen every day.

When you walk your factory floors there are nine items to get an accurate first impression of how lean you are.

1. Work Stations?
Are they clean, organised, free from unnecessary material and equipment?
Are tools organized, identified and easy to find?
(Are 5S’s in place? Visual labeling? Is the factory well lit? Is equipment clean? Supervision and support personnel on shop floor? Metal on metal contact? Safety hazards? Debris on the floors? Check out the bathroom cleanliness.)

2. How many Monuments do you see?
Monuments are massive machines anchored to the deck, not easily moved to which material has to be delivered to, can cause issues with the flow of product (lack of flexibility)
Are they still in use? Not to be confused with age, often older machines are purpose built and give us flexibility in cellular manufacturing. Can machinery, material locations, drop offs be easily rearranged?

3.Work in Process?
Are there piles and piles of Work in Process (WIP)? Has some of it grown roots, celebrated its 1st, 2nd even 3rd birthdays? Does it have any paperwork? Do you have HOT items?
In the ideal factory you should only have the WIP you are working on and its classed as Standard in Process Stock (SIPS) in my eyes as it is controlled.

4. Can everyone see if they are on Target or Behind Schedule?
Hour by hour monitoring, or close to real time as you can get. Can you see the Abnormal from Normal? Use Red and Green to distinguish. Is abnormal recorded for root cause corrective action?

5. What other Metrics do your teams have?
What charts, graphs, objectives, are posted in the area? Are they a Standard Document? (revision controlled, time and date stamped)
Are the Metrics up to date, reviewed, actioned? Again are they on Target? Can you see the Abnormal from Normal easily?

6. Are Materials delivered to or stacked at the Point of Use?
If a worker loses a component (screw, nut, rivet) do they have to go to the stockroom? Ask yourself how are items replenished? Does the replenishment depend on a crane or forklift?

7. Does the Product Flow?
Through a cell, moving line or in large batches or lots? Are associates close together, can they talk to one another, see one another’s WIP, do they help each other out if something goes wrong?

8. Look at the Testing and Inspection?
Where is the Product inspected and tested? Do the associates do most of the inspections or does the product move to another area? Do you have large numbers of inspectors? What is your inspection backlog? Are your defects recorded, reviewed actioned? Are they reducing?

9. Ask! Talk! Communicate! Question!
The biggest and most important. Show dignity and respect at all times, question and challenge, talk to the people on the front line and ask why? Understand? Use your senses.
This list is not definitive and its definitely not just for manufacturing, you apply to all functions, businesses, sectors, industries. Now Go Look See!

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