Lean organization management techniques are an important consideration when implementing lean in an organization. Lean provides a very good tool set; however, lean is not a business management system. The PDF below titled “Lean Implementation with Business System Integration” by Forrest Breyfogle addresses this shortcoming.
An organization may want to implement a lean philosophy in their organization. However, without a business system, kaizen events and other lean efforts may have only localized functional benefits and questionable big picture value. Because of the lack in whole enterprise demonstrated advantage, a lean deployment program may not be long lasting.
In a deployment, much lean work can be undertaken; however, with a traditional lean deployment, there is typically no overall quantification of the work’s financial benefit and no linkage of lean kaizen event’s waste reduction efforts to the improvement of organizational Key Performance Indicators (KPIs).
To better address the challenges of the day, organizations need an effective business management system that integrates lean tools with predictive scorecards and analytical/innovative strategies so that undertaken process improvement efforts can demonstrate whole-enterprise benefits.
An Integrated Enterprise Excellence (IEE) business management system is a methodology where one can utilize lean organization management techniques so that the organization as a whole benefits. With this system, an IEE value chain (upper right corner of graphic below) links processes (square boxes) and their predictive performance metrics (oblong boxes).
From this graphic, one can see how an organizational value chain can be used to drill down what an organization does and how it measures its performance from a high level to a lower operations perspective; e.g., IEE organizational value chain to a business value stream map.
An organization’s IEE value chain can be automatically updated and clickable, where important lean metrics such as cycle time and work in process (WIP) can be reported in a timely fashion from a process-output point of view.
A one-minute video describes the benefit of IEE 2.0.
Lean Organization Management Techniques: Achievement with IEE
In IEE, 30,000-foot-level predictive performance metrics are to be the reporting of functional metrics, which are aligned to the processes that created them. Using the described lean organization management techniques, functional metric improvement needs can pull for lean activities that enhance an organization’s KPIs.
What is needed to improve an organizational KPI, may be determined through a lean kaizen event. If an executed lean event is successful, the associated 30,000-foot-level metric response will transition to an enhanced level of performance in the 30,000 report-out.
For more information about lean organization management techniques and the characteristics of an effective performance management system, download the PDF article, which is titled “Lean Implementation with Business System Integration” written by Forrest Breyfogle.