Lean change cycle

Caveat:   Blitzes are all too often un-targeted, .  done with little concern as to the overall impact on the total company.   The results of such un-focused blitzes typically have a significant local impact, microcosms of excellence , but little or no impact on overall company well being.   See “Solutions Looking for a Problem” below.

  • Blow-Through BOM’s (Bills of Material):   Many “assembled product” manufacturers need to maintain subassembly identity, and/or control configuration, for replacement parts.   In these circumstances, rather than have a flat bill of material, it is much more practical to continue to show all subassembly levels on the bill of material. A “Blow Through” level, allows the subassembly’s parts to be called out, for kitting or backflush purposes, on the next higher level assembly.   The MRP algorithm “blows through” .  treats the subassembly’s parts as if they were called out on the next higher-level assembly.
  • Boom-Bust Cycle:   Some Causes:   I just got off the phone with a steel finishing plant / distributor.   He said that their on-time delivery performance was terrible, and that their lead times had extended considerably.   When I mentioned some ways to fix this issue, his response was classic:   “The customers have learned to expect it”   “We can’t turn down orders.   We just promise what they want to hear, then beg forgiveness.” And what do the customers do in these situations?   You’ve go it!   They double order.   They order high “just in case”.   They ask for it early, knowing full well that it will be late.

    The lean start-up method is now being taught at more than 25 universities and through a popular online course at . In addition, in almost every city around world, you’ll find organizations like Startup Weekend introducing the lean method to hundreds of prospective entrepreneurs at a time. At such gatherings a roomful of start-up teams can cycle through half a dozen potential product ideas in a matter of hours. Although it sounds incredible to people who haven’t been to one, at these events some businesses are formed on a Friday evening and are generating actual revenue by Sunday afternoon.

    Identifying what creates value and eliminate all other activities, as they are by definition ‘waste’, will become your normal approach to evaluating procedures and processes across every aspect of your enterprise. When you recognise that within your organisation only a fraction of the time consumed, and a small portion of all efforts undertaken, genuinely add value for your end customer, you will have a basis to clearly define true value from your end customer’s perspective. Only then can all your non value activities (or waste) be targeted for systematic reduction and eventual removal.

    Lean change cycle

    lean change cycle

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