The Modern Lean Enterprise

The book addresses a modern reorientation of Lean, abandoning the classical waste dogma that brings direct efficiency gains and substituting by a way to achieving indirect efficiency in a continuous and sustainable manner. Waste is the output of a process that cannot be of further use, while value is a matter of valuation, a process whose output we conceive to be of further use. Value and waste are not antithetical, they are just not comparable issues. We achieve added value to the modern Lean Enterprise through synergies that bring sustainable economic benefits to the company. Such synergies use the complementarity theory developed by Milgrom and Roberts in 1990 on the principle that we can achieve maximal gains via the joint investment on complement activities and not investing. Complementarity is not something specific to Lean Enterprises; however, Lean Enterprises can benefit the most from such a concept. The reason is that Lean uses the principle of achieving more with less effort. Less effort does not mean the use of fewer resources, but the use of resources in a complementary way in order to achieve more, rather than using them. Complementarity is a feature by design. Complementarity by design will help modern Lean companies have an easier transition in the digital era and the new world of Industry 4.0. In this second edition, we have preserved the method of how to achieve Lean and have enhanced it to show how to move towards modern Lean within Industry 4.0 paradigm. However, if a company has not yet made the Lean step, there is no need to make that step first before yielding the benefits. Technology is the key. Modern Lean Enterprise strengthens out of the old paradigm into the new one of Industry 4.0. Because of evolution, such an enterprise achieves optimal technological complementarity necessary for synergies that sustain increasing profits.

This publication is in collaboration with the University of Buckingham and is the result of a combined research and review process carried out by the three Editors who belongs to the University of Ferrara, Italy, the University of Buckingham, UK and Swansea University, UK. The book deepens the debate about the lean enterprise from both an academic and a professional management perspective. It thus provides the reader with a sound understanding of the modern lean enterprise and its current evolution. A range of innovative topics are covered, with individual chapters addressing the combinations of lean with hoshin kanri, green management, IT, organizational learning, flow accounting, system thinking, problem solving, internationalization aspects, luxury industry, and product innovation. Since the term “lean” first entered contemporary operations management language in 1990 to describe a set of practices proven to deliver superior performance over mass production systems, the lean approach to waste reduction and value generation has moved from vehicle production to other manufacturing sectors. It has reshaped the support functions of manufacturing businesses and has evolved from private industry into the public sector. Lean thinking is now a dominant model of operations management and has brought with it a new language and toolbox.

Updated with new information, illustrations, and leadership tools, Leading the Lean Enterprise Transformation, Second Edition describes how the metrics used by Toyota drive every line item in a financial statement in the right direction. Rather than focus on Lean tools and principles, the new edition of this bestselling reference focuses on what may be the least understood and most critical aspect of a Lean transformation: the building of a Lean culture. In addition to new appendices with background information and insightful stories on Lean leadership and implementation, it includes new information on tactical organization practices, strategy deployment, and Lean culture. An inductee to IndustryWeek's Hall of Fame, George Koenigsaecker illustrates successful strategies and valuable lessons learned with case histories of U.S. leaders who have been instrumental in bringing Lean to the forefront. He explains the use of value stream analysis at the leadership level and describes how to structure kaizen events that can improve the value stream. Organized in the chronological sequence that a leader embarking on a Lean journey would experience, the book discusses the methods used by the author during the Hon Company’s successful Lean conversion, which doubled productivity, tripled revenues, and led IndustryWeek to recognize Hon as one of the "World’s 100 Best Managed Firms." The book not only introduces powerful leadership tools—including strategy deployment, transformation value stream analysis, and transformation plan of care—but also arms potential change agents with the soft skills needed to define, develop, and communicate their vision. Detailing the steps required to sustain improvements, it supplies time-tested guidance for effective leadership throughout a Lean transformation in any organization.

The book is divided into three parts. Part I. The Rising economy of “one” gives an overview of what is changing in the social system of production, it refers to the weakening role of central planning and the rising power of individuation in the value creation chain. Part II. Lean Enterprise in theory refers to the principles of lean thinking, the transfer of lean philosophy from East to West and discusses the necessary adaptation to the Western way of thinking and practice. It presents a practice proven method for achieving a lean integrated demand and supply chain and analyses in detail the related implementation steps. Criteria for a successful displacement of a company to a lean state are presented. Part III. Lean Enterprise in practice provides a number of implementation cases in different types of production companies using the method presented in Part II. The goal is to help the reader comprehend how the method can be applied to real lean implementation situations in resolving various issues, ranging from production to the supply chain. A vision of implementation to lean electricity completes the book.

How well does your organization respond to changing market conditions, customer needs, and emerging technologies when building software-based products? This practical guide presents Lean and Agile principles and patterns to help you move fast at scale—and demonstrates why and how to apply these methodologies throughout your organization, rather than with just one department or team. Through case studies, you’ll learn how successful enterprises have rethought everything from governance and financial management to systems architecture and organizational culture in the pursuit of radically improved performance. Adopting Lean will take time and commitment, but it’s vital for harnessing the cultural and technical forces that are accelerating the rate of innovation. Discover how Lean focuses on people and teamwork at every level, in contrast to traditional management practices Approach problem-solving experimentally, by exploring solutions, testing assumptions, and getting feedback from real users Lead and manage large-scale programs in a way that empowers employees, increases the speed and quality of delivery, and lowers costs Learn how to implement ideas from the DevOps and Lean Startup movements even in complex, regulated environments

Lean Thinking was launched in the fall of 1996, just in time for the recession of 1997. It told the story of how American, European, and Japanese firms applied a simple set of principles called 'lean thinking' to survive the recession of 1991 and grow steadily in sales and profits through 1996. Even though the recession of 1997 never happened, companies were starving for information on how to make themselves leaner and more efficient. Now we are dealing with the recession of 2001 and the financial meltdown of 2002. 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.

#1 Amazon Bestseller in Lean Management Discover the methods of lean startups that can revolutionize large organizations and their products Even in a tough economic climate, the startup business community has found a way to create innovative, game-changing products in shockingly short timeframes. So why should larger, more established companies take notice? Because they have everything to gain when they examine and adopt the strategies, tools, and attitudes of these smaller competitors. The Lean Enterprise presents a groundbreaking design for revolutionizing larger organizations, one that draws on the ingenious tenets and practices espoused by the startup community. The guidelines in this book will help companies shake the lethargy, bureaucracy, and power struggles that plague large organizations and hold them back from true innovation. At the heart of this resource is a comprehensive, practical approach based on methods, timetables, compensation, financial investment, and case studies that reveal the startup mentality. Respected thought leaders in lean startup methodologies, the authors cover successful enterprise development, development innovation labs, corporate venture arms, and acquisition and integration of startups. Essential reading for entrepreneurs, product managers, executives and directors in Forbes 2000 organizations, and board members Presents the tools and methodologies large businesses need to compete with a new generation of highly-empowered entrepreneurs Covers lean startup culture and principles and identifies the behaviors that arestunting growth at large enterprises Offers a comprehensive, practical approach for developing exciting products and services and opening vast new markets Don't be mystified by the success of startups. Master the methods of this new generation of entrepreneurs and compete on a level playing field.