Monthly Archives: June 2010

Lean Thinking in the Office and Service Sector

PhotographNweb.jpgDrew Locher was my guest on the Business901 podcast and our conversation centered on applying Lean to the Office and Services sector.  Drew has been working to implement Business strategies since 1986 and I amazed at his ability to distinguish between novel ideas and ones that just a horse of a different color. His recent workshop, Optimizing Flow in Office and Service Processes  in Indianapolis hosted by the Lean Enterprise was filled to capacity and registrations were closed weeks before the event.

Drew is currently Managing Director for Change Management Associates, Shingo Prize winning author and the first Business901 Podcast returning guest.  CMA is a consortium of individuals who share a similar business management and improvement vision. They are committed to seeing innovative strategies implemented in all business environments. The CMA approach is practical and application oriented - a 'learn as you're doing and succeeding' approach.

Related Books:

The Complete Lean Enterprise: Value Stream Mapping for Administrative and Office Processes

Value Stream Mapping for Lean Development: A How-To Guide for Streamlining Time to Market

Extending Lean Thinking to Office and Services

Related Posts:

Lean Rock Stars assembled for Indy Management Workshop

Future State Map 7 Basic Questions

Using Value Stream Mapping E-book

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TOC Thinking Process Discussion

Theory of Constraints Handbook authors John G. Schleier, Jr. and James F. Cox III were part of my recent podcast Holistic approach to the Theory of Constraints. We covered so much material during the interview that I split the discussion into 2 parts. The one preceding and this one on the Thinking Processes of TOC. I enjoyed the conversation, I hope you do.

TOCHandbook.jpgAn excerpt from the podcast::

Joe:  When we talk about  lean problem solving, we talk about the five why's, but the thinking process that the Theory of Constraints uses is a whole different level of thinking, is it not? I mean it goes much, much further than you can with lets say the five Why concept.

Jim:  Yes, I agree with you, but if you took the five why concept, the early use of the thinking tools and the current reality tree in particular, both would ask why but in TOC you would validate that that cause really existed before you asked the second "why". Then when you ask the second Why, you would validate that that cause existed. So I look at the five "why's" and what we call the Snowflake Effect, or Diving Down to identify a core problem as being very similar, except TOC is like a person that wears a belt and suspenders. TOC wants to ensure that that cause really exists and validate that cause exists before they ask the second or the third or the fourth Why.

John:  We go through categories of what we call legitimate reservation, which are also documented in the book, in reviewing the logic so that we can assure that it's solid.

So the picture we see of the current reality expressed in logical cause and effect construct is really right on the money. It accounts for causes of all of the undesirable effects that we've been able to identify in the environment.

Related Blogs:

Quickest way to deal with a Marketing Constraint, Slice it!

Problem Solving – Think 3, Not 5

Improve throughput, cut your customers in half!

Lean your Marketing thru Segmentation

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Holistic Approach to the Theory of Constraints

The Business901 Podcast featured John G. Schleier, Jr. and James F. Cox III authors of the upcoming book, Theory of Constraints Handbook. In this authoritative volume, the world's top Theory of Constraints (TOC) experts reveal how to implement the ground-breaking management and improvement methodology developed by Dr. Eliyahu M. Goldratt. Theory of Constraints Handbook offers an in-depth examination of this revolutionary concept of bringing about global organization performance improvement by focusing on a few leverage points of the system.

Theory of Constraints concepts and tools are aimed at one overriding objective: bringing about a process of ongoing improvement in enterprises. That said, the purpose of this book is to provide “hands on” guidance from the world’s top experts on how to implement these TOC capabilities. This guidance is buttressed by clear definition on how they work, why they work, what issues are resolved and what benefits accrue. Leading practitioners provide guidance based on their hands-on implementation experience. Academic authors give a review of the wealth of literature on why to move from the traditional discipline to each TOC discipline and a review of the TOC literature in that discipline. Indeed these ideas are of such a scope that this Handbook required 44 authors to explain them.

James F. Cox III

John G. Schleier, Jr.

This podcast was such a great selection of stories, insights and TOC theory that I ended up splitting it in half. This weeks podcast centered on TOC and the holistic principles that drive it. Next week, part 2 will discuss TOC thinking principles and how they apply not only in industry but on the personal level.

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Fulfillment Stream vs the Supply Chain

Robert Martichenko, co-author of the Building a Lean Fulfillment Stream was the guest on the Business901 Podcast.  Robert is CEO and Founder of LeanCor, the only Third Party Logistics provider (3PL) wholly dedicated to the application of lean principles throughout the supply chain's functions. Building on 15+ years of experience, Robert Martichenko created LeanCor to drive the next step in the evolution of lean by addressing the unmet logistics needs of Lean Manufacturers, Distributors, and Retailers.BuildingaLeanFulfillmentStreamWorkbookCover.jpg

LeanCor designs, implements and manages lean supply chain and logistics networks for any size company. Their three service categories are designed to support companies in their effort to eliminate organizational waste, drive down cost, and increase global competitive advantage.focus on developing solutions with our customer base which requires operational flexibility to go where you need us to go. The solution dictates the geography and they go where it is necessary to implement the right solution, at the right time, in the right place and at the right cost.

The latest book, Building a Lean Fulfillment Stream builds on the concepts of waste, flow, and pull. This workbook provides the steps to a comprehensive, real-life implementation process for optimizing your entire fulfillment stream from raw materials to customers. Even though I am not an active participant in the supply chain field, I found great value in the book and the principles that it outlined. during the podcast, Robert did a masterful job of explaining many of these principles.  At the upcoming Lean Logistics Summit, June 22nd and 23rd in Cincinnati, OH, Robert leads off the event as the keynote speaker.

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