Can Innovation be Lean
Can Innovation be Lean Assignment
Order Instructions:
Can Innovation be Lean? (Browning and Sanders, 2012)
Source: California Management Review Vol 54, No 4. (Summer 2012) pp5-19: available at http://www.jstor.org/stable/10.1525/cmr.2012.54.4.5)
Your task is to read the case study noted above and provide a report containing the following points;
1. Discuss the development of Lean taking into account the process, principles and philosophy of Lean
2. Using the case as background, critically analyse whether Lean is applicable in
complex and innovative areas
3. Critically reflect on the five caveats to Lean implementation and discuss whether your own organisation;
1. Understands the complexity of their systems
2. Improves processes/activities in isolation
3. Understands the concepts of flow and waste and how these are applied
Accessing the case study:
1. Open Library Search and Type in the name of the Journal ‘California Management Review (online) – open the view it box and then click on the 2nd “Off campus” link – Use your University login (see below) Full text available at: JSTOR Business Current: Available from 2008 volume: 50 issue: 2.
2. Click on JSTOR Business Current and then use Napier login details and then search for :Vol. 54, No. 4, Summer 2012 ‘Can Innovation be lean’
Report Specifications
Your report should be a maximum of 4000 words excluding title page, references, and appendices. Sticking to a strict word limit is difficult and an important skill for you to acquire, so make sure that you write in a concise and focused manner. It should be typed font size 12 and 1.5 line spacing and must be presented in portrait format, not landscape. You should not be able to complete this task in any less than 3000 words minimum. Please provide an Executive Summary and Contents Page. This report is worth 45% of your total grade for this module *
An essential feature of the report is to illustrate how theoretical constructs or models can be critically analysed and applied to organisations in practice. You are therefore advised to read widely. In fact, unless you have read and referenced at least 10 discrete references, it is unlikely that you have done sufficient reading. Beware of sources from the Internet (no Wikipedia): apart from reputable and academic references that can be downloaded through the Internet (commonly via the library catalogue); most Internet references are not considered reliable for an academic piece of work. Academic journals generally offer a better source than textbooks.
You must use the Harvard referencing system. This requires you to state the surname of the author(s) in the text of your report, followed by a comma and year of publication e.g.: “Kraljic (1983) states that….” If you use direct quotes, then the page number should follow e.g.: Kraljic (1983: 112) “The profit impact of a given supply item can be defined in terms of volume purchased, percentage of total purchase cost or impact on product quality or business growth”. Failure to reference properly constitutes a violation
SAMPLE ANSWER
EXECUTIVE SUMMARY
Lean implementation involves a collection of actions and procedures beginning from organizing the reforms, elaborating on the agenda and explaining the reform strategy. It is very important that the progress is assessed in terms of its effectiveness. The changes that are being implemented and the tools being used ought to be very realistic and yielding results. The process begins with reforming the entire system and also defining the activities before carrying out the implementation process. Lean implementation requires a well-established environment which supports all the other elements of production within a particular system.
Table of Contents
Application of lean in complex and innovative areas. 5
Five caveats to Lean implementation. 6
- Implementing lean when disruption is very minimal 6
- Analyzing a system before implementation of the concept 8
- No activity should be improved in Isolation. 8
- Redefining value and waste. 9
- Lean should not be pushed to the Point of Negative Returns. 10
Development of Lean
The concept of implementing a lean process within an institution entails a collection of ideas that guide the whole process. The main aim of incorporating these tools and techniques in the process of manufacturing is to make maximum utilization of time, people, tools and production process. Similarly, the process focuseson quality of the products being produced for the clients (Bhasin & Burcher, 2012,234). Lean philosophy is a very vital concept which assists businesses become more competitive in the field of doing business around the world. In addition, lean production is a practice that incorporates the production process which involves utilization of resources for any other work besides creating value for the final consumer. Lean manufacturing is a multi-faceted management concept that includes time management, processes that enhance quality, working groups, suppliers among others (Carter, 2011,34).Despite the fact that most companies began implementing this concept, a few companies were very successful in its implementation in terms of practices that guide the manufacturing process. In the current world, even the technological aspects that are entailed in the process of lean production are changing. Those companies which have tried to incorporate some of these practices have failed to succeed in their operations.The process of implementing these principles and concepts involves several actions and activities. The process begins with reforming the entire system and also defining the activities before carrying out the implementation process. Lean implementation requires a well-established environment which supports all the other elements of production within a particular system
The concept began by Toyota Company in terms of its production processes in Japan. The main goal of launching this idea was to reduce wastage, reduce amount of work and also enhance quality using little amount of money. This was to involve making of quality management decisions which is a very important part in any business. The idea of lean management of businesses therefore originated from the Toyota Company so as to solve the specific challenges especially in times of economic problems. The concept of lean management considers expenditure as the most vital organ of any business. The concept proposes measures to ensure that resources are maximized without any wastage so as to meet the needs of the client. It can sometimes be looked at as a collection of principles. The idea has currently been embraced by various companies. The main reason for ease of adoption is its ease of replication and transferability (Holweg, 2013,56). Due to the fact that the concept reduces wastage of resources, both manufacturing and processing companies have successfully implemented it. Examples of these companies include the health, automotive and construction industries. The concept drastically reduces the cost of doing business. The Toyota Company has been able to implement the process efficiently through various amendments. Companies always strive to innovate and own any new discovery.Adoption of this concept in such kind of an environment without a thorough understanding can result into problems. Consequently, such an approach may definitely lead to huge losses. Therefore in such form of environment, the leadership has to put in mind several caveats to shield against any losses.
Lean implementation involves a collection of actions and procedures that ensures that the process of adoption is successfully implemented. In addition, the process ought to entail implementation and evaluation of the whole exercise. So as to experience a successful lean process implementation, one has to plan. Planning entails defining the reason why change is very necessary. It is very important to understand and appreciate why reforms are needed in any form of business in terms of lean reforms. This ensures that every person within an organization is well informed of the intention of the whole process. Similarly, the highest level of management has to support and also get committed to the process of reforming an organization. The moment employees see a very serious commitment from top management, they get involved in the entire process. On the other hand, the most critical areas that are targeted have to be identified. This should therefore involve coming up with a plan which spells out the processes and areas that need change. The whole process has to be sequential (Emiliani & Stec 2014,79).
Another aspect is the factors that enhance success of the implementation process. The process has to be prepared in terms of encouraging people. This should include thorough communication and also clarification of information for the people. In addition, the leadership has to remain very active. People have to be involved and consulted in order to have a smooth implementation process. Furthermore, all the methods which are involved in the process of bringing change have to be incorporated. The environment within which the implementation process is taking place has to be conducive. This has to entail a mutual understanding and creation of trust among all the subjects.
The implementation and evaluation of the lean process is very critical. It is very important that the progress is assessed in terms of its effectiveness. The changes that are being implemented and the tools being used ought to be very realistic and yielding results. For every stage of implementation, various indicators can show the performance. The implementation process of the whole idea should therefore result into reduced expenses, constant enhancement of the whole process and continuous flow of information. The levels to which the objectives are met indicate that the process is being successful. The moment all the tools are incorporated in the whole process of implementation, the indicators act as control parameters upon which improvement process is scored (Duque & Cadavid, 2007,33).
Application of lean in complex and innovative areas.
Complex and innovative areas enhance each other in terms of lean aspects. The effects of implementing lean concepts in a complex and innovative environment complement each other. In cases where one has to adopt a lean process, various aspects have to be put into consideration. Coming up with new processes or ideas in terms of discoveries is enhanced and reduced through gaining knowledge. Similarly, studying helps in solving the most complex issues or processes and their interactions. This is despite the fact that this kind of learning is unique.
Studies differentiate between various aspects of learning. One form of learning is informal where people gain experience on how to do things through constantly working on the same thing. In addition, new ways of conducting business is done through carrying out experiments. Another form of learning is through training. People invest in new technologies or even reform policies in terms of how business is conducted. In addition, the design in which products are produced is redesigned.The informal way of learning how to conduct business only happens in a very peaceful environment which is very stable with processes that are very continuous. On the other hand, the other form of learning requires investment in terms of resources.
Learning through experience has been developed mainly with learning concepts that involve reducing costs so as to increase the outcome. The moment volumes being produced are increased, the learning curve tends to go down. On the other hand, low volumes of production are associated with very sophisticates and new innovations. Both novelty and complexity processes are characterized by low volumes of production. The process of learning assumes that the whole process would be stable hence the production process would benefit from the continuous process of production (Deming,2011,99).
The process of implementing a lean aspect in terms of complexity and new innovative environment is well associated with the concept of investment. The concept of investment involves investing in technology, enhanced process and changing the way production is done so as to reduce on costs while at the same time maximizing of quality. Whereas experience intents to do away with novelty, investment in the way one does business embraces innovations and complexity. Investment in the way one does business is very disruptive. Sometimes, the process of reforming the way one does business ends up bringing negative effects in terms of performance to the organization. This is simply because, at some point, the employees can become unaware of the technologies, processes or even the tools being introduced within the organization. Thus adopting a technology that is common to employees can have direct effects to the performance of a given organization. The reforms resulting from a lean process are expected to cover up the losses incurred. However, this is sometimes not the case. This is mostly often especially when the disruptions caused by the changes and discoveries are so huge.
In cases where there is low complexity, learning through experience can discourage new discoveries. This mostly occurs after realization of the previously unknown tasks. The simplest processes gives chance for learning through experience hence creates some level of stability. The moment complexity is so high whereas novelty is so low, investment in the way business is done ensures that lean implementation is very successful. This is due to the fact that disruptions in this case are very minimal hence creates some level of stability. However, the moment both novelty and complexity are too high, learning cannot be enhanced through experience. Investment creates too much interference in this case due novelty and complexity. The moment stability is not consistent, implementation of lean concept is not possible (Anchanga,2011,32).
Five caveats to Lean implementation
The rate at which cost is reduced when lean is implemented will vary based on the time at which implementation process is carried out. This is even sometimes extended to the point where this the benefits sometimes become expenses. The main reason is that the process of realizing and implementing lean in itself is a cost. Lean is an expense due to the disruption that is cause. The process enhances and promotes innovations but at the same time enhances and introduces other disruptive aspects to the organization. Perhaps, the time at which the process of implementation of the whole concept of lean is very critical in whatever environment. However, when the process of implementing the lean concept occurs in an environment that is new and very complex, the time of implementation is very essential. This is due to the fact that recovery from such a state is very challenging in such an environment. As such, implementation concept has to be planned very carefully so as to address all factors that can hinder its success.
The most appropriate time of implementation has to be at the product design. This should be immediately after a product has stabilized in terms of its processes. The process of implementation should not occur the moment the product design process is still happening. The interaction between the new process and the existing process result into disruption. The implementation activity becomes more dynamic and complex hence increases production costs. The moment the process of production in terms of interaction become unstable, any attempt to make them lean is very costly hence very expensive.
Despite the fact lean main objective is stability, the time upon which the whole process is implemented is very critical. The process does not enhance an existing process. Sometimes a new concept does not automatically lead to efficiency and cost reduction. However, the improved and new process sometimes prevents the realization of the expected cost reduction in the organization. The lean process therefore directly contributes to the instability in an organization due to wrong timing of its implementation process. It is therefore very important to optimize any concept before its implementation to avoid any backlash in the process of implementation. The right activity for the whole concept has to be determined before implementation so as to offer the appropriate solution. The moment lean concepts are implemented at the wrong stage; the whole activity becomes too expensive (Fujimoto, 2012, 456).
In a complex scenario, a very small change in one sector could result into a very large change in the whole system. Sometimes changes might result into instability of the entire system. The number of products being produced and the people involved, interaction between various tools and techniques are very critical to any institution. Due to this fact, even slight changes might result to poor functioning of the entire system.
A sophisticates and complex idea might enhance the complexity of the whole process within an organization. Complexity has a lot of consequences to the operations of an institution. First, complexity leads to high cost of doing business. These are costs incurred to carry out a complicated exercise unlike the well-defined process. The complexity can also increase uncertainty and unpredictability of doing business. The moment activities appreciate in terms of complexity and operations, and also as they increase complexity in terms of interaction, employees are not sure about the outcome from the whole process. Moreover, the moment processes are very difficult to be predicted due to their complications, it becomes obvious that some process will be neglected (Deming, 2011, 89).
Most managers assume the fact that implementation process can be performed in isolation. Inputs involved in the process of implementation are sometimes assumed. However, it is important to note that what works at the activity level does not necessarily work at the process stage. The level of measurement is very important at every stage during implementation. Sometimes, lean is not very essential throughout the whole process. The process of investment in the entire process is very essential. It is important to invest in areas like technologyand production processes. Every stage in the process of implementation is of great importance. This is simply because each stage depends on the other in terms of functioning. Through enhanced procedures and interaction of the same processes, an institution is assured of reduced costs and efficiency (Duque & Cadavid, 2014, 45). Thus the benefits of the whole process of implementing lean depend on the level of interaction of each and every aspect within the entire system. Furthermore, working and changing the low level process within an institution does not automatically bring change within an institution. Unless the low level processes are almost collapsing or rather are affecting the entire production process. Improving such processes in terms of their efficiency may result to an improved process (Cua,McKone,& Schroeder,2011,66).
In the concept of novelty and complexity, value and waste have to be redefined differently. In such circumstances of novelty, it is challenging and very difficult to define waste. In many instances, waste is related to the interaction of various processes and not only the activities. Both novelty and complexity enhance waste and value. It is very dangerous to label some activities as wastes while others are labeled as of great value. Doing so would result to a total mess in an organization.
The essence of lean is to reduce on the wastes. However, sometimes it is difficult to establish what is not needed within an institution. Continued interaction in terms of the complex processes brings change in a certain area which in turn affects a larger process. To assume that some processes are wasteful in a complex and novel system it would mean a disaster. This is simply because complex and novel processes contain various stages with a lot of backups. Doing away with some of these processes would mean enhancing the ability of that process to interfere with other processes due to their interdependence (Hino,2010,102).
Interaction on its own does not clearly explain value or waste in the entire process of production. Doing away with some process does not guarantee reduced costs within an institution. The moment lean implementation incorporates the concept of agile production the value of production could be enhanced. The system of production ought to be designed so as to enhance accountability in terms of markets and clients. These two activities accompany each other when it comes to lean implementation. The most outstanding aspect of agile is that it entails inclusion rather than removal and also provides the capacity to enable accountability. In the case of complexity and novelty, there are high chances of confusion hence agility is very necessary. Any activity added within a system that is able to sort out problems before they cause any damage is very important. This process enhances production process despite their definition as valueless by the implementation process. It is therefore very important to measure the value of any activity as an individual rather than as a sum total of the entire process. This is simply because individual performance matters most to the whole process in any given system (Hopp & Spearman, 2014,345).
The process of Lean implementation is an investment. The implementation process is therefore expected to yield good results in terms of reducing the cost of doing business. However, the moment one relies more on lean practices might end up incurring more costs than benefits. Some of the processes that appear to be of great impact might end up being wasteful. One should never believe that implementing a lean concept is a simple process. This is simply because it took Toyota several years to implement the entire program. Implementing lean without good reasons might lead to chaos within an organization. Top management should therefore always ask questions as to why the process of implementation is being performed (Anchanga,2011,321).
Conclusion
The five caveats discussed in the article are relevant to any form of organization. Lean implementation can therefore be looked at differently. It is a philosophy comprised of principles that dictate how an institution conducts itself so as to reduce on costs. The process of implementing these principles and concepts involves several actions and activities. The process begins with reforming the entire system and also defining the activities before carrying out the implementation process. Lean implementation requires a well-established environment which supports all the other elements of production within a particular system. A favorable environment ensures that the employee feels part of the whole reform process rather than feeling threatened. Successful lean implementation is therefore measured in terms of reduced costs and constant improvement of the whole system.
Reference list
Anchanga,P.(2011).CriticalsuccessfactorforleanimplementationwithinSMEs.JournalofManufacturing Technology Management.
Bhasin, S. & Burcher, P. (2012). Lean Viewed as a Philosophy. Journal of Manufacturing Technology Management.
Carter,P.(2011).7 wastes. Retrieved March2,2012,from http://cisystemltd.blogspot.com/2011/03/7-wastes- transportation.html
Cua,K.O.,McKone,K.E.,&Schroeder,R.G.(2011).Relationships between Implementation of TQM,JIT,and TPM and Manufacturing Performance .Journal of Operation and Management.
Deming,W.E.(2011).Out of the Crisis. MIT Press: Cambridge.
Duque, D.F.M. &Cadavid, L.R.(2014). Lean Manufacturing Measurement: The Relationship between Lean Activities and Lean Metrics. E studios gerenciales.
Emiliani,M.L.&Stec,D.J.(2014).Leaders Lost in Transformation. Leadership and Organization Development Journal.
Fujimoto,T.(2012).The Evolution of a Manufacturing System at Toyota. Oxford University Press: New York.
Hino,S.(2010).Inside the Mind of Toyota. Productivity Press:New York.
Holweg,M.(2013).The Genealogy of Lean Production. Journal of Operation and Management,25(2),420-437.
Hopp, W.J. & Spearman,M.L.(2014).To Pull or not to Pull:What is the Question?Manufacturing & Service Operations Management.
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