Banish waste and create wealth in your corporation pdf
Womack and Daniel T. References 1. Womack, J. James P. Womack , J. Author : James P. Even though the recession of never happened, companies were starving for information on how to make themselves leaner and more efficient. Now we are dealing with the recession of and the financial meltdown of So what happened to the exemplar firms profiled in Lean Thinking?
In the new fully revised edition of this bestselling book those pioneering lean thinkers are brought up to date. Authors James Womack and Daniel Jones offer new guidelines for lean thinking firms and bring their groundbreaking practices to a brand new generation of companies that are looking to stay one step ahead of the competition.
W Author : James P. It is based on the Toyota lean model, which combines operational excellence with value-based strategies to produce steady growth through a wide range of economic conditions.
Meanwhile, the leader in lean thinking -- Toyota -- has set its sights on leadership of the global motor vehicle industry in this decade. Instead of constantly reinventing business models, lean thinkers go back to basics by asking what the customer really perceives as value. It started with marketing, which commissioned surveys comparing Wiremold's products with the offerings of competitors. When an "opportunity" was identified, usually a gap in the market or a reported weakness in a competitor's offering, a design was developed by product engineering, then tested by the prototype group.
If it worked according to specification, the design proceeded to the engineers designing the machines to make the products and eventually went into production. This system produced designs which lacked imagination and which customers often ignored. The designs also took too much time and effort to develop and cost too much to make, but these are a different type of problem we'll discuss in Chapter 3.
Simply speeding up this process through simultaneous engineering and then broadening product variety would just have brought more bad designs to market faster.
Pure muda. Steve Maynard's solution was to form a team for each product to stick with that product during its entire production life. Instead, the customer and the producer Wiremold focused on the value the customer really needed. For example, traditional Wiremold wire guides which channel wiring through hostile factory environments and provide complex arrays of outlets in high-use areas like laboratories and hospitals had been designed almost entirely with regard to their ruggedness, safety, and cost per foot as delivered to the construction site.
This approach nicely matched the mentality of Wiremold's product engineers, who dominated the development process and who found a narrow, "specification" focus very reassuring.
As the new dialogue began, it quickly developed that what customers also wanted was a product that "looked nice" and could be installed at the construction site very quickly. Wiremold had never employed a stylist and knew relatively little about trends in the construction process.
Customers were willing to make substantial trades on cost per foot to get better appearance which increased the bid price of construction jobs and quicker installation which reduced total cost. Within two years, as all of Wiremold's product families were given the team treatment, sales for these very conventional products increased by more than 40 percent and gross margins soared. Starting over with a joint customer-producer dialogue on value paid a major dividend for Wiremold quite aside from savings in product development and production costs.
While Wiremold and Doyle Wilson Homebuilder and every other firm needs to be searching for fundamentally new capabilities that will permit them to create value in unimagined dimensions, most firms can substantially boost sales immediately if they find a mechanism for rethinking the value of their core products to their customers. Define Value in Terms of the Whole Product Another reason firms find it hard to get value right is that while value creation often fiows through many firms, each one tends to define value in a different way to suit its own needs.
When these differing definitions are added up, they often don't add up. Let's take another nightmarish but completely typical travel example.
One of us Jones recently took his family on an Easter holiday in Crete from his home in Herefordshire in the United Kingdom. What was wanted was a total, hassle-free package of transport to the airport, a fiight to Crete, transport to the villa in Crete, and the villa itself. The trip was reasonably routine but look at what the Jones family did to "process" itself through the system: 1.
Call the travel company to make the booking. Receive the tickets by mail. Call the taxi company to make the booking. Wait for the taxi. Load the luggage A. Drive to the airport three and a quarter hours , arriving two hours before the scheduled fiight time as required by the airline.
Unload the luggage. Wait in the currency exchange queue to change English pounds into Greek drachma. Wait in the check-in line. Wait in the security line. Wait in the customs line. Wait in the departure lounge. Wait in the boarding line. Wait in the airplane two-hour air-traffic delay. Reply 1 Like Follow 1 hour ago. Markus Jensen I did not think that this would work, my best friend showed me this website, and it does!
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Reply 2 Like Follow 3 hour ago. Much of the Agile literature talks about lean and what Toyota achieved, so reading this is going to fill out my understanding of the origins of the ideas.
It's hard to believe how exactly the description of 'pre-lean' manufacturing in the 60s describes the current state of the IT industry. The waste involved in functional silos, queueing and batching, lack of visibility of the value stream.
Music to my ears! Yet another 5 star rating, but I really enjoyed it, so there you go! Steven Peterson. Author 21 books followers. Lean is a specific management technique to make an organization more efficient and a private sector company more profitable.
This book is a well written introduction to the subject. The authors, James Womack and Daniel Jones, provide lots of examples to illustrate their basic points.
Thus, this is a very useful introduction to the subject, for those of us who are not experts on this matter.
To start at the beginning. The enemy is "Muda," a Japanese word that means "waste," in all of its manifestations. Lean is an approach to reducing Muda. Pie in the sky? Toyota is one of the pioneers in this movement, and it is now the 1 automaker in the world--so, maybe, we ought to pay some attention to the concept.
As the authors note Page 15 : ". Muda is everywhere. The Introduction itself does a nice job of laying out the key concepts of Lean. Then, each part of the book builds on that foundation. Key points: 1 Value. Value is defined by the ultimate customer.
The problem? Corporations and other organizations often think that they know best and do not really understand what the end user wishes as value.
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