James P. Womack; Daniel T. Jones (Login chapteraday) Forum Owner
Lean Thinking by James P. Womack; Daniel T. Jones Buy book: $17.42
Revised, updated, and more relevant than ever, the bestselling business classic by two internationally renowned management theorists shows how companies of all sizes can become the most efficient organizations possible.
For Monday's read, this book really intrigues me. It harps on old songs like creating the value for customers but it presents from fresh perspectives.
At first, while looking at the title, it almost sounds like yester-years dot-com days' fads - the phrases that we heard ad nauseam - agile methodology, value chain, business process re-engineering etc.
But "muda", as the author puts it, has a simple way to explain the corporates' mis-steps and mind-slips in their strategic thinkings. Let's wait and see for next day's read.
As I mentioned earlier, this book really is intriguing book. And on third day (today) reading:
" But we all need to fight departmentalized, batch thinking because tasks can almost always be accomplished much more efficiently and accurately when the product is worked on continuously from raw material to finished good. In short, things work better when you focus on the product and its needs, rather than the organization or the equipment, so that all the activities needed to design, order, and provide a product occur in continuous flow. "
I like that. I like that a lot. And I like the example provided in the readings of six-and nine-year-olds' method of batch processing. I like the assertion so much so that I began to think more. What author(s) mentioned is the basis of agile methodology and JIT (Just-In-Time) inventory methods. But why do we continue doing the batch way and continue thinking in batch processings mindset.
Yes. From the product's point of view, once it is finished, it went to destination will be more efficient way. But it might not be cost-effective way and thus not a very good way at all to make business sense. What if (and this is very common) the costs to move the product from one point to another is substantial? In the example given by the authors, what if the resources required for one of the authors' daughters to move the finished state of newsletters to the mailbox is substantial (i.e. moving from kitchen table where the newsletters are produced to the mailbox), it wouldn't make much sense to do so.
Case in point will be commercial airlines. Let's say I want to travel from the east coast to the west coast. I am ready and I have packed up all my belongings. Now will the commercial aircraft, pick me up (me and me alone) to my destination? No. The aircraft will wait for other like-minded passengers and move all of us together in batch processing sense. This will bring the cost down.
Even if no moving costs are involved in value chain processing, lean thinking as authors present it is in direct contrast of Henry Ford's command and control style. I don't want to argue which one is more efficient or effective and certainly don't want to drag "dehumanizing" effects into the discussion. My guess is business enterprises at some point still perform command and control managing. Some may do more and some may do less (thus become employee empowerment organizations or flat-structured organization). But they do so with varying degree.
Let's wait and read the next day's excerpt. It is one of those things that make sense in theory but really hard to follow.
