Lean Management for Small and Medium Sized Enterprises: Adapting Operations to Changing Business Environment

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This book provides a step-by-step guide to implementing lean at SMEs using an approach that has been tested and fine-tuned at over a hundred organizations across India, South East Asia and the Middle East. The book approaches Lean through an implementation project cycle flow and enables the reader to understand the imperative for Lean, how to diagnose current operations, how to plan and deploy Lean and shows a path for long-term sustenance.

Diverse situations such as meeting the demand fluctuations, designing a facility, or improving profit margin etc. are included in the case studies from multiple sectors, to ensure that every reader finds a situation similar to their organizational situation. While the publicly available literature on lean offers a large collection of tools and techniques, given each organization’s unique context, the choice of the right sequence of tools differ. The book offers guidelines in terms of which solutions work in which context, backed by real-cases, which is a big help to the resource constrained SMEs. This book is an equally good resource for the organizations that have already implemented lean, as it provides realistic pointers about sustaining, tackling supply chain uncertainties and going beyond Lean by integrating emerging technologies and management principles. It is an excellent resource for students and researchers studying this area and also for corporates, professionals and industry watchers.

Author(s): Ganesh Mahadevan, Kalyana C. Chejarla
Series: Management for Professionals
Publisher: Springer
Year: 2022

Language: English
Pages: 363
City: Singapore

Foreword
Preface
Perspective of the book
Organization of this book
Guide to the Case Studies Section
Audience and Pathways
Acknowledgements
Contents
About the Authors
List of Figures
List of Tables
1 The Imperative of Lean Management
1.1 History of Lean Management
1.1.1 Mass Production (1908–44)
1.1.2 Toyota Production System (1945–75)
1.1.3 Foray of Lean into USA (1975–2000)
1.1.4 Diffusion of Lean into Rest of the World (2000–2020)
1.2 The Imperative
1.3 Summary
References
2 Lean Management Principles
2.1 Introduction
2.2 Lean Management Philosophy
2.3 Lean Management Maturity Phases
2.3.1 Flow
2.3.2 Pull
2.3.3 One-Piece Flow
2.3.4 Stabilization
2.4 Performance of Lean Enterprises
2.5 Summary
References
3 Lean Management in Small and Medium Enterprises
3.1 Introduction
3.2 Overview of SMEs
3.2.1 Economic Role
3.2.2 Unique Constraints of SMEs
3.2.3 Growth Orientation
3.2.4 Barriers and Enablers to Lean in SMEs
3.3 Resistances to Initiating Lean
3.3.1 Financial Resistance
3.3.2 Non-financial Resistance
3.4 Summary
References
4 Lean Implementation Methodology for SMEs
4.1 Introduction
4.2 Lean Implementation Methodology
4.3 Breaking Down the Barriers—Approaches to Initiating Lean
4.3.1 Rapid Process Improvement Approach
4.3.2 Problem-Solving Approach
4.4 Summary
5 Commencing the Lean Journey
5.1 Introduction
5.2 Time-to-Serve
5.2.1 Measuring Time-to-Serve
5.2.2 Assessing Output Capability
5.3 Cost-to-Serve
5.3.1 Measuring Cost-to-Serve
5.4 Assessment Criteria
5.5 Target Setting
5.5.1 Growth-Oriented Targets
5.5.2 Profitability-Oriented Targets
5.5.3 Employee Well-Being
5.6 Summary
6 Designing the Lean Intervention
6.1 Introduction
6.2 Building a Roadmap
6.2.1 Sequencing the Improvement Projects
6.2.2 Motivating the Team
6.3 Developing the Roadmap
6.3.1 Theme-Based Roadmaps
6.4 Preparing for Implementation
6.4.1 Focused Improvement Workshops
6.4.2 Post-workshop Reviews and Handholding
6.5 Organization Structure for Lean
6.6 Summary
7 Implementing Lean
7.1 Introduction
7.2 Begin with Flow
7.3 Understanding Basic Flow
7.4 Key Consideration for Flow
7.5 Creating Flow
7.5.1 Stage 1—Refining Process Flow Design
7.5.2 Stage 2—Redesigning the Layout
7.5.3 Stage 3—Implement Redesigned Layout
7.5.4 Stage 4—Run and Validate Flow
7.6 Pull Systems
7.6.1 Space
7.6.2 Storage or Material Handling Containers
7.6.3 Electronic Signals
7.6.4 FIFO Lanes
7.7 Value Addition Must Flow
7.7.1 Product is Fixed
7.7.2 Person is Fixed
7.8 Flow in Services
7.9 Enabling Flow
7.10 Summary
Reference
8 Stabilization
8.1 Introduction
8.2 Standards
8.3 Standard Operating Procedures (SOP) and Work Instructions (WI)
8.4 Autonomous Maintenance (AM)
8.5 Planned Maintenance
8.6 5S
8.7 Summary
9 Sustaining Lean
9.1 Introduction
9.2 Sustenance Stages of Lean Adoption
9.2.1 Stage I: Tried and Failed
9.2.2 Stage II: Successful Pilot
9.2.3 Stage III: Standalone Intervention
9.2.4 Stage IV: Enhanced Lean
9.2.5 Lean Thinking
9.3 Factors Affecting Lean Sustenance
9.3.1 People Related
9.3.2 Scaling Across
9.3.3 Creating Headroom
9.3.4 Making Own Lean Operating Model
9.3.5 Periodic Lean Assessment
9.3.6 Top Management Commitment
9.4 Empirical Study of Lean Sustenance
9.5 Summary
Reference
10 Beyond Lean
10.1 Introduction
10.2 Sustainability
10.2.1 Description
10.2.2 Integration with Lean
10.3 Six Sigma
10.3.1 Description
10.3.2 Integration with Lean
10.4 Theory of Constraints
10.4.1 Description
10.4.2 Integration with Lean
10.5 Industry 4.0
10.5.1 Description
10.5.2 Integration with Lean
10.6 Time-Driven Activity-Based Costing (TdABC)
10.6.1 Description
10.6.2 Integration with Lean
10.7 Summary
References
11 Leveraging Lean to Tackle Uncertainty
11.1 Introduction
11.2 Definition of Terms
11.2.1 Sources of Disturbance
11.2.2 Strategies
11.3 Recent Supply Chain Disruptions
11.3.1 COVID-19
11.3.2 Semiconductor Manufacturing Factory Fire
11.3.3 Brexit
11.3.4 Suez Canal Blockade
11.3.5 Drought in Taiwan
11.3.6 The Texas Freeze
11.4 Lean: Counter to Uncertainty
11.4.1 Fire at Aisin Seiki Plant (1997)
11.4.2 Strike at the US West Coast Ports (2002)
11.4.3 Manufacturing Problems at Freescale (2005)
11.5 Summary
References
Case Study 1: Seeds of Growth
Background
The Seed Industry
Approach to Lean Initiative
Stage 1: Initiating Lean Thinking
Stage 2: Making Equipment Reliable
Stages 3 and 4 Process Improvement and Validation
Sustaining and Moving Ahead
Case Study 2: Business Transformation Through Lean
Background
Diagnostic
Roadmap
Improve Flow
Implement Pull
Stabilize Processes
Implementation
Focus Area#1—Establishing Flow at Final Processes
Focus Area#2—Enhancing Subcontractor Capacity and Linking with the Final Processes
Focus Area#3—Improving Capability of Upstream Processes
Focus Area#4—Linking Up the Entire Value Stream
Standardize and Sustain
Conclusion
Case Study 3: The Lean Restaurant—Serving Customers Effectively
Background
Management Goals
The Approach
Obstacles to Flow
Flow of Guest
Flow of Service
Flow of Food
Implementation
Increasing Service Staff Availability at the Guest Tables
Reducing Guest Wait Time for Table
Speed and Efficiency of Food Preparation
Standardization of Operations
Overall Outcomes
Conclusion
Case Study 4: Lean Design for New Product Manufacturing
Background
The Challenge
Step I—Process Flow Design
Step 2—Freezing the Layout
Step 3: Physical Implementation of the Designed Process Flow and Layout
Outcomes of the Project
Case Study 5: Lean at Gubba Cold Storage
Background
Operations
The Lean Journey
Initiating Lean Through Focused Improvement Workshops
Improve Space Utilization
Reduce Truck Turnaround Time
Standardization
Stabilization Phase
Leveraging Technology to Sustain Lean
Lean in the Latter Years
Conclusion
Case Study 6: Applying Lean to Problem Solving in the Pharmaceutical Sector
Background
Applicability of Lean in Bulk Drugs
Setting Up the Cluster
Current State Assessment
Implementation
Phase 1—Enable Flow
Phase II—Stabilization
Sustaining Lean
Conclusions
Case Study 7: GSV Industries—A Case study on Lean Implementation
Background and Context
Projects Identification and Selection
Stamping
Stamping Projects
Motor Guard Section Observations
Motor Guard Section Projects
Roadmap Creation
Project Team
Project Schedule
Implementation
Increasing the Stamping Press OEE
Improvement in Throughput of Motor Guard Line
Standardization and Sustenance Plan
Conclusion