January Professional Development Meeting
Topic: Lean Tools Application in a Business Management System
Speaker: Forrest W. Breyfogle III


Abstract
Lean has a very good tool set; however, it is not a business management system.  What organizations need for addressing the challenges of the day is an effective framework that integrates the tools of Lean with predictive scorecards and analytical/innovative strategies so that process improvement efforts are undertaken, which benefit the enterprise, as a whole. Described is a methodology where Lean tools are used to describe an enterprise’s as-is state. This current state value chain (not to be confused with value stream mapping) would include standardized procedures, documentation, and value stream maps in one location that is readily accessible by those who need the information. With this system, the value chain inclusion of Lean metrics such as takt time, lead time, and defective rates provide process stability assessments, which can then be reported as predictive statements, when appropriate.  This form of reporting would lead to effective process improvement efforts that prevent much “problems-of-the-day” firefighting waste, which has minimal, if any, long-term benefits. The described methodology breaks down common-place organizational silos where this business fundamental performance map provides scorecards and procedures that have ownership. Linkage of performance measurements with controls in the value chain provides a framework for preventing unhealthy behaviors, which can lead to very detrimental consequences. The described Lean-tool-business-system alignment methodology provides the structure for organizational movement toward achievement of the 3Rs of business; i.e., everyone doing the Right things, and doing them Right, at the Right time.   Included in this overall business management system is also a roadmap that describes how Lean tools can be efficiently, effectively, and consistently be integrated within an overall Define-Measure-Analyze-Improve-Control (DMAIC) project execution roadmap.