If you don't know anything about "lean," Six Sigma or TPS (Toyota Production System), you'd better pay attention – because virtually every industry, from every corner of this earth – is embracing these new principles to lower cost and improve efficiency and quality.
In fact, these "process improvement" philosophies or tools are spreading like wild fires and are now influencing everything from the way McDonald's flips burger patties to the way Boeing builds aircrafts.
First introduced by the automakers, these proven company-wide methodologies are making it possible for car companies to develop new vehicles 20% to 50% faster, reduce defects by another 40% or more and market feature-rich cars without increasing price to the consumers.
Haven't you noticed that in recent years, car manufacturers are bringing out technologies and features faster than you can blink?
So what do these terms mean? What is lean ? No, it doesn't mean that Jenny Craig is suddenly involved in car design or manufacturing, but there is a definite parallel between the weight-loss clinic and lean methodology: both focus on reducing unwanted waste from your system. In Jenny's case, that "waste" refers to "fat." In a business situation, the "waste" refers to anything that is viewed as "waste of time" by the final buying customers (that is, non-value-added time).
The principle of lean philosophy or thinking says that companies must shed everything that does not add true value to end customers. That means they have to consciously work toward removing wasted time, space, or materials from the whole cycle of designing and manufacturing cars so that we – as end customers who buy them – get more bang for the buck. Lean is applied through teams who work together to generate ideas for reducing waste.
The original lean concept was first developed by Henry Ford, who applied this thinking to produce Model Ts at astonishing rates – at least by early 1900s standard.
Toyota then took the basic concept and worked on it for more than 40 years, creating the flawless Toyota Production System, or TPS for short. The TPS philosophy is so widely used around the world that even emerging countries like Vietnam, which likely produced your newest Nike shoes or Old Navy T-shirt, now embrace lean and TPS as key business drivers.
Here in Vancouver, hundreds of organizations are already involved in lean transformation – from manufacturing, warehousing, banking, insurance and hospitals to schools. Companies and organizations are applying the concept of lean and TPS to dramatically improve their speed, quality and service while improving their company's culture and even their corporate strategy.
And we are excited to hear that Jeffrey Liker and Mike Hoseus (the authors of the bestselling TPS books called the Toyota Way books) are coming to Vancouver to speak about the latest trends in lean, Toyota Way and TPS. They are part of the Lean Summit, which is scheduled to place at Vancouver's Terminal City Club from June 18 to 20.
Highly acclaimed authors Liker and Hoseus will share the methodologies and practices that lean organizations embrace to rise above the level of mediocrity in their quest to create exceptional organizations.
In addition, local and international industry leaders in the financial, health care, medical and manufacturing sectors will share their triumphs, challenges and stories about their lean journey.
Local executives scheduled to speak at the conference include Launi Skinner, CEO at First West Credit Union; Stu McIntosh, Cascade Aerospace vice-president; John Kalbfeisch, COO at Alpha Technologies; and Scott McCarten of Vancouver Coastal Health. More information can be found at www.leansummit2013.com.
I'll make one bet with you: within the next few years, your employer will ask you to take some training on lean, TPS or Toyota Way. It's only a matter of time before every corporation is going to be endorsing these ideas. Be ready. •
