ABOUT LEAN DYNAMICS

 

WHAT IS LEAN DYNAMICS?

Lean dynamics is a different way of thinking and operating that lets companies navigate today’s uncertain conditions.                                                                                         

The good news is that all of the knowledge and skills you gained with lean and lean six sigma still apply — lean dynamics uses     

the same techniques, but with a fundamentally different focus.  

Here’s the difference:                                                                  

  • Lean and Lean Six Sigma seek to “lean” out operations, “cutting the fat” by removing waste wherever it's found.                         

  • Lean dynamics instead takes deliberate actions that dampen the impact of disruptive conditions to keep this waste and its costs from accumulating in the first place.     

       

Whereas lean is about doing more with less, lean dynamics is about sustaining greater value in good times and in bad

THE ROOTS OF LEAN DYNAMICS

An Evolution from Ford to Toyota

It is important to understand that the concept of lean dynamics did not spring fully-developed from a void. It is the  

result of more than a century of management theory and practice, beginning all the way back with Henry Ford's        

 first demonstration of mass production.                                                                                                                                          

Lean practitioners go to great pains to point out what's wrong with mass production, but history shows that is a         

powerful management approach with tremendous examples of success. For instance, it is widely heralded as             

having a central role in the victory over Germany and Japan in World War II. With it, GM rose to dominance in the     

global automotive industry. It continues today to be used by companies around the world.                                                                                                                                                                       

What makes the "lean" system of management more powerful is not necessarily the direct cost savings from              

eliminating wastes, as is so often reasoned. Instead, these gains are critical to overcoming mass production's.            

distinct advantage from economies of scale -- making the lean system cost competitive. The real advantage comes   

from its ability to dampen the effects of disruptive forces on operations, permitting them to maintain their.                 

efficiencies and effectiveness in good times and in bad.                                                                                                                                   

Other approaches, such as Six Sigma and Lean Six Sigma, helped evolve management thinking on implementing      

business improvement. These contributed to the understanding that the real culprit is variation in operations,            

causing waste to accumulate. Lean dynamics focuses on addressing this underlying cause of waste, dampening the    buildup of operational variation, particularly those caused by the forces of uncertainty and change.                              

 

ARTICLES 

 
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IS "GOING LEAN" DIFFERENT FROM BEING FLEXIBLE?

Is the only reason for going lean to cut costs?  This is an                   

important question raised by the Industry Week article, Small          

Manufacturers Need to be Agile, Not Lean. Small businesses (like  

many other organizations) are often told that lean is about cutting  

out the waste. Yet, as this article points out, driving out excesses is 

hardly something new for small companies, particularly today,        

since many must already keep costs low in order to compete.         

So why bother?  Because going lean is about much more than         

cutting costs.  It’s about shifting from a way of doing business that  

does well when conditions remain fairly stable and predictable (the

environment for which traditional management methods were.       

developed), to one that is better suited to the kind of constant.      

change and uncertainty that today has become the norm.  But this.

takes reaching beyond the tools-centric mentality that has become

far too prominent and gaining a deeper understanding of its.          

history and intent.                                                                                   

So this article has it right… partly.  Cost cutting alone is probably   

not enough to motivate many to embark on what they probably     

see as a painful journey. Lean is about becoming more agile, as      

this article states, but not just for small businesses. Small and large 

organizations have demonstrated the dramatic benefits of what.     

lean is really intended to achieve (what I call lean dynamics). Their   

results show that lean can enable organizations across different.      

industries to advance across a range of conditions.  With it they       

continue to operate smoothly, roll out new innovations, create new 

opportunities–and profit during some of the most challenging.        

times.                                                                                                        


And who would argue that this is important for businesses of all      

 types, especially in the environment they face today?