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!

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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One of the Least used Tools – Standardised Work

Standardised Work is one of the most powerful but least used tools within business, yet it is one of the foundations to Lean Manufacturing

From my experience “without standards we do not have continuous improvement only chaos”.

The declarations I have heard, “we don’t make cars”, “You see, we are different”, “We’re unique….this isn’t an assembly line!

My response to such statements is “everyone works a process that process can either be destroying or creating value added for the customer, which would you rather it be. Whether you’re building cars or delivering life-saving patient care, it takes a sequence of highly coordinated tasks and processes to deliver the end result. When this sequence of tasks is standardised, you’re on your way to fundamentally improving and eliminating significant sources of waste.

Standardised work is the simple understanding that every task that can be repeated requires a written instruction of the most efficient and effective way to complete it to the highest quality Standard. We then use the selected standard work process each time the task is performed ensuring that the same results are achieved, in the same amount of time, regardless of who completes the task.

Now, we must understand here that the first step is to document what the current best practice is, this may be not be delivering the outcome you require currently, but without first understanding, how will you control any changes and what improvements have had what effect? We can’t, it would be guess work!

Key Elements of Standard Work

  • TAKT
  • Process Capacity Table
  • Work Combination Table
  • Work Layout
  • Standard Operating Procedure

Standard Work Documents

Takt Time – “Takt” is a German word which refers to the pace or beat of a musical composition, the metronome. The calculation of Takt time gives us the rate of production for meeting customer demand

Work sequence – “The time for an employee to do a prescribed task and return to his original stance.” – Taiichi Ohno
Standard inventory – In manufacturing this refers to parts, but in other sectors it can refer to applications, data inputs or other resources necessary to perform the job.

Bear in mind the following

Involve employees in the process – they are the ones who determine the best practice for each task. This also helps ensure engagement and ultimately adherence to the standard work.

Focus on the details – it must be in-depth to be useful in reducing variation. No detail should be omitted. Even the little nuances need to be understood, these are improvements that can be engineered out. (I can remember a process I worked with where the Associate had to lean on one part for the other part to fit, a stack up of tolerances had occurred. This knack had to be written in the standard work until we could engineer it out, imagine the amount of lost time/production if others weren’t aware of this)

Use visuals – Images, photographs, diagrams and examples will help bring your standard work definition to life and increase the likelihood of consistent compliance. A picture is worth a 1000 words.

Make it accessible – The documentation must be accessible at the time and place that the work is to be performed.

Innovate – While you don’t want employees deviating from the standard work process, there must be a method to give consideration to changes when new conditions or new ideas warrant revision. A governance process will increase the likelihood that changes will be analysed and approved rather than being implemented ad-hoc.


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The Process of Improvement for any Business

Standardise

In standardising a process you want to be able to see the Abnormal from Normal conditions. When the process is disrupted by an obstacle or issue, you can see it. The Standardise, Do, Check, Act cycle.

Stabilise

Now you can begin to systematically simplify, Combine, Eliminate the issues to Stabilise the process. Whether it’s achieving TAKT, a cycle time, changeover, order entry, bid-no bid process, etc. The Plan, Do, Check, Act cycle.

Standardise and Stabilise play off of one another. (and you must be applying the rigorous PDCA management process as a business, if you can’t do that or sustain it ultimately you will fail)

Optimise

The drive towards perfection should always be sort within our processes across all functions, departments, businesses. This is optimisation, in driving for continuous improvement. Once we have standardised and stabilised our processes internally we can also start to look externally within our supply chain and support the SDCA and PDCA within those businesses that are struggling, remember we want a way of understanding the Abnormal from Normal conditions, no reason we can’t apply that in measuring our supply chain and why not pass on the learning, we all benefit. (and I don’t mean how some OEM’s have applied this before, internally a mess but let’s concentrate and beat up the supplier, short termism!)

Optimise also goes hand in hand with Grow in my eyes, all of the improvements align to our Strategy, and our Strategy will have new business, innovation in our products, so optimise and utilise all of those resources to ensure future growth.

Grow

Apply the SDCA, PDCA into Sales and Marketing processes. Integrate the tools and techniques of Lean Manufacturing, Operational Excellence with the proven sales methods and drive sustainable increases in sales performance and profitability.

In improving the efficiency of our company’s sales processes, we enable the sales and Customer facing teams to reduce waste and duplication and free up much needed Customer contact time in the sales cycle creating greater customer value.

As the orders come in, we come back to our Standardise and Stabilise cycle and the cycle repeats.

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