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Lean Deployment (lean + organizational development)

Lean management (in other words Toyota production system or TPS) by today became the most successful productivity enhancement – waste elimination system of manufacturing companies. Its fundamental theories are the respect for people and the trust that members any organizational level can add value to the company by putting forward improvement proposals.

A precondition for the long term successful deployment is to improve the organization at the same time. This is true in reverse: lean can highly contribute to the value and to the results of an organizational development process either.

So there is a mutual interest and the cooperation between the two areas can be easily created. Lean management’s philosophy is in harmony with the genuine values of Concordia-OD. Our experienced Lean and OD consultants always customize their approach for the actual organization. We utilize our synergies, so Lean can embed and the necessary shift in company culture, in the values, in leadership style helping Lean happens at the same time along with a strong commitment by employees.

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Lean basics – the process and the focus

  • The lean process
  • Focus: Reducing waste

Steps of a Lean transformation process

  • For increasing efficiency, the first step is the assessment of the different types of wastes and improvement opportunities. There may be some obvious wastes but for a thorough understanding of the situation usually there is need for observing and documenting the real work processes, making a value stream map. Thus the value added and the non-value added tasks are identified, these are explained and thus accepted.
  • After assessing the present situation the next step is setting the objectives.
  • This is followed by working out the action plans that lead to these objectives.
  • The fourth step is testing and implementing the actions. This proves to be the most difficult, most touchy task. However, with the deliberate and conscious application of change management methods we can avoid the alienation of employees or an unnecessary rise in their stress level.
  • Follow-up of the actions, measuring the results.
  • After the communication of the results and actions, based on the feedbacks of the people affected, carrying out subsequent actions, in line with the philosophy of continuous improvement.
  • New actions, continuous improvement based ont he feedback of all our engaged colleagues

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The focus is to reduce waste

The 8 Types of Waste According to Lean Management

  1. Overproductionproducing such products or services that the next user (external or internal customer) does not need. Result: a pile of documents, storing and sharing unimportant information (in an office environment), and/or overstaffing of products, excess inventory (at manufacturing companies).
  2. Waiting (time on hand) – workers serving to watch an automated machine or having to stand around waiting for the next processing step, or just plain having to wait because of stockouts, equipment downtime or capacity bottlenecks. This type of waste also includesdelays in the office routine when there is need for a decision, consideration, passing on documents, or waiting for missing information. When these occur, the customer cannot be ideally served.
  3. Unnecessary transport or conveyancecarrying work in process (WIP) or office documents to the next step, or moving materials into or out of storage. This prolongs the work process and requires additional work force.
  4. Overprocessing or incorrect processingtaking unneeded steps due to poor tool and product design. It also creates waste if youprovide higher-quality products or provide a more detailed, different or higher quality analysis than required by the customer.
  5. Excess inventoryexcess raw material, WIP or finished goods causing excess storage, depreciation, obsolescence and damaged goods. It increases lead times, transportation and storage costs, and occasionally having to move the stocks, since – according to Murphy’s law – always the innermost materials are needed. Also, extra inventory hides problems such as late deliveries from suppliers, equipment downtime, long setup times, production imbalances and defects. In office environment: reports used by nobody, finding and providing unnecessary information, parallel work on the same tasks.
  6. Unnecessary movementcomings and goings, searching for things, remote containers, uncomfortable work due to non-ergonomic workstations. In offices: the value-added work has to be stopped because of missing information, dossiers and you need to go to the other ofice or registry.
  7. Defectsproduction of scrap or correction; repair or rework. Excess searching because of missing or incorrect data and information;correcting the consequences of making mistaken decisions based on these – all take time and attention from value-added work.
  8. Unused employee creativity - losing learning and improvement opportunities by not engaging your employees or not listening to their ideas although they would have many.

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BÉRES PHARMACEUTICALS

"While expanding abroad, Béres Gyógyszergyár (Béres Pharmaceuticals) had to discover that cooperating with foreign cultures and management styles can bring up a vast array of unforeseen difficulties which can significantly hinder operation and management, but also the bilateral transfer of knowledge. We have learnt valuable lesson from Concordia’s corporate diagnosis. It unearthed problems which made it clear on both sides just where we needed to change, so that our common efforts yield positive results instead of tensions."

Mr. Ferenc Major

CEO

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