Lean Transformation: How to Change Your Business into a Lean Enterprise [Paperback]

Bruce A. Henderson (Author), Jorge L. Larco (Author), James P. Womack (Foreword)

Book Description

Publication Date: January 1, 2010

Known in manufacturing among those striving to maximize productivity and create pull-scheduling of production as "the yellow book," Lean Transformation: How to Change Your Business into a Lean Enterprise is used across the globe by companies as they switch to lean production and management by empowered teams. Touted by lean production experts everywhere as practical, down-to-earth, and easy to read, it warns of cultural issues that are almost certain to arise, and gives management step by step instructions as it explains clearly in terms anyone can understand such concepts as continuous flow, value stream mapping, kanban, kaizen, six sigma, just-in-time (JIT), techniques for converting to quick set-ups, and other pillars of the Toyota Production System. Indeed, Toyota may have been the first, but Toyota is not the only company that excels at lean manufacturing. Dell Computers provides another model of a successful lean enterprise as do Harley-Davidson and Pella Windows. Learn why initial improvements of 40 percent in direct labor productivity and a 50 percent reduction in the space required for manufacturing are routine when production and assembly are converted to continuous flow. Lean Transformation is chock full of real life examples of value stream mapping, how kanban can resolve material supply issues, how kaizen brainstorming can result in startling improvements overnight, how just-in-time (JIT) frees mountains of money tied up in work-in-progress, why six sigma quality needs to be built in and not inspected in, how bottlenecks can be eliminated, kanban snafus spotted before they happen, and how instilling a championship mentality in cross-functional teams can lead to increased productivity and continuous improvement that doesn't stop after the initial kaizen event.

It doesn't take a genius to know that the low cost producer that meets customers "want" dates 99% of the time yet carries only two days inventory has a tremendous competitive advantage. So put value stream mapping, just-in-time (JIT), six sigma, kanban, kaizen, continuous flow, empowered teams, and all the other techniques you'll learn about in Lean Transformation to work. Order a copy for everyone involved in your transformation into a lean enterprise.

Editorial Reviews

About the Author

Jorge Larco holds an MBA from Dartmouth, speaks five languages and has led dozens of conversions to lean in more than half a dozen countries. Bruce Henderson, a Wharton MBA, learned lean directly from Toyota. As CEO of $3.2 billion company, he led a transformation that involved some 30,000 people in more than a 100 manufacturing plants in 16 countries.

Excerpt. © Reprinted by permission. All rights reserved.

Foreword Lean Transformation is a leading indicator of a profound change in ourA business culture. Bruce Henderson started his career as a strategy consultant seeking to position businesses so they faced the minimum of competition. Jorge Larco began his business life as an operations manager running plants in a traditional manner. In a previous era they would have had no cause to talk to each other because strategists advising CEOs did not consider operations important and because operating managers lacked a strategic vision for the business extending beyond the walls of their plant. Today (after what they describe as a trip to Toyota boot camp) they are not only talking. They have jointly written a book on how to make lean operations the key strategy for businesses large and small. What's going on here?

The answer, I think, is that in a globalized economy with many mature industries it's impossible to avoid competition and critically important to answer a simple question: How can managers create value for customers by eliminating waste in routine operations in plants, engineering, purchasing, distribution, and retail. This is not to say that positional strategies are irrelevantHenderson's company has just consummated a gigantic merger to strengthen its position in several industries. It is to say that mere position is no longer sufficient. The list of mergers that have failed to produce their promised "synergies" due to lack of a lean operating plan is now very long. And down-stream customers, including you and me as ultimate consumers, are placing steadily higher demands on businesses to cut out the waste and perform. The strategists and business raiders of the 1980s have therefore given way to the new business hero of the late 1990sMichael Dellwho has created one of the world's most successful companies by eliminating wasted steps (like the retailer) and installing build-to-order pull systems to give people just what they want just when they want it.

In the pages of Lean Transformation the authors describe a simple method for making a Dell out of your business, beginning with high-level leadership initiatives to refocus the business, then quickly getting to the down-and-dirty steps needed to transform operations. After a careful reading of this fast-paced text, I hope CEOs will finally get it: Waste can only be eliminated and value created if you pay close attention to every action currently consuming your resources. Ask what's waste and what's value for the end customer, then eliminate the waste. And I hope operations managers will also get it: Brilliant operations employing lean principles is your company's smartest strategy almost without respect to the business you are in. Read Lean Transformation, take notes, screw up your courage, and then explain the new reality to your CEO!

I hope the readers of Lean Transformation (both CEOs and operations managers) will be at the forefront of the worldwide effort to transform lean thinking from a leading-edge concept into the standard operating practice in every industry. I'm certain the lean thinkers will win before we get very far into the new millennium and I advise the reader to heed Henderson and Larco's warning: If your firm starts down the lean path first you can always stay ahead but if you start later you may find it impossible to catch up! (By James P. Womack, President, Lean Enterprise Institute)

Product Details

• Paperback: 288 pages
• Publisher: Oaklea Press (January 1, 2010)
• Language: English
• ISBN-10: 0964660121
• ISBN-13: 978-0964660120
• Product Dimensions: 6.1 x 1 x 9.1 inches
• Shipping Weight: 1.3 pounds (View shipping rates and policies)
• Average Customer Review: 4.6 out of 5 stars  See all reviews (10 customer reviews)
• Amazon Best Sellers Rank: #217,434 in Books (See Top 100 in Books)
  • #93 in Books > Business & Investing > Management & Leadership > Industrial

Most Helpful Customer Reviews

27 of 29 people found the following review helpful

5.0 out of 5 stars For any company wanting to win--a must-read July 26, 1999

By Joe Jancsurak, Editor, Appliance Manufacturer magazine ([e-mail])

Format:Paperback

Lean Transformation is an informative yet easy-to-read guide for companies wishing to transform themselves into lean manufacturers. Authored by Bruce Henderson, CEO Invensys Controls and Jorge Larco, a leading manufacturing consultant, the book addresses topics ranging from cultural issues to mapping for continuous flow, to right-sizing machinery and quick set-up, to kanban and material handling to spreading the transformation from final assembly throughout the entire organization. Readers will learn from the experiences of Toyota, Dell Computers and others, while benefiting from the charts, diagrams and step-by-step instructions provided in the book. A must-read for any and all companies wanting to lead in the next millennium.

23 of 25 people found the following review helpful

5.0 out of 5 stars A Very Complete Look at the Lean Journey November 17, 2000

By Brian Stewart

Format:Paperback

This book will be an excellent read for both the experienced lean warrior and those new to the subject. Henderson has clearly been through many lean implementations, for his words of caution in Part I of this book could not be more accurate. Also of specific interest is a section near the end of the book on financial measurements for lean - very interesting. This would be a great book for a lean champion in any company to put on the required reading list.

7 of 7 people found the following review helpful

3.0 out of 5 stars Pushing instead of pulling Lean July 17, 2007

By F. H. Van Saarloos

Format:Paperback

I think that everyone interested in Lean is already convinced that Lean adds value. Therefore I found it annoying that the book is pushing on or selling Lean. This book is good for managers needing good coverage of the arguments and issues in lean. Although the subtitle of the book is "How to Change Your Business Into a Lean Enterprise", this is not really a how-to manual - there is no explanation of how to map value streams, implement 5S, TPM, or implement any other of the Lean techniques. Rather the book is giving an overview perspective of the issues.

2 of 2 people found the following review helpful

5.0 out of 5 stars Classic, relevant for Executives November 17, 2008

By William C. Zeeb

Format:Paperback

Lead author Bruce Henderson, Wharton MBA, former McKinsey consultant and former CEO for 30,000 addresses better than anyone the "What's In It For Me" aspect of Lean for board members and C level executives. This book brings valuable insights for a wide range of audiences. Novices and those who have already led numerous lean transformations will find valuable lessons inside. The straightforward style is refreshing and real at the same time; the term concrete heads is richly detailed with practical details which any reader will instantly understand.

The Dell example is dated, though the principles still relevant. The treatment of Six Sigma is light, and does not represent the integration which Michael George shares in his book Lean Six Sigma. On the other hand, the strategic alignment in Lean Transformation feels better addressed than in Lean Six Sigma. My hypothesis is that this strategic alignment is a key factor in long term sustainability of continuous improvement, whatever the flavor.

Heavily focused on discrete manufacturing as opposed to continuous process manufacturing, this classic remains close to the top of my list of 300+ books on Lean, Six Sigma and Process Improvement for executives who seek to better understand lean.

2 of 2 people found the following review helpful

5.0 out of 5 stars Setting the Scene for Lean December 14, 2006

By Mr. Ross Maynard

Format:Paperback

Extremely well written and easy to read, "Lean Transformation" does a great job of setting the scene for lean. It covers the issues and challenges you will face in moving to lean. As such it is a good primer or starter text for managers about the make the leap to lean. Although the subtitle of the book is "How to Change Your Business Into a Lean Enterprise", this is not really a how-to manual - there is no explanation of how to map value streams, run 5S events, or implement any of the techniques. Rather the book is giving an overview perspective of the issues. For more detail you will need to move to other books such as "The New Lean Pocket Guide", "The New Lean Toolbox", "Lean Production Simplified" etc. I recommend this for senior managers needing good coverage of the arguments and issues in lean. Senior managers should also read "The Toyota Way", and "Creating a Lean Culture".

4 of 5 people found the following review helpful

5.0 out of 5 stars After 2 years, I refer to this most often April 2, 2006

By robert johnston

Format:Paperback|Amazon Verified Purchase

I've noticed that I reach for this book in my Lean practice, more than any other. Coincidence or a great book? I think it's not coincidence. This is lean classic for the TOTAL ENTERPRISE.

1 of 1 people found the following review helpful

4.0 out of 5 stars Good Ideas January 11, 2009

By Stephen Parry

Format:Paperback

A good book written by people who have obviously implemented lean across the enterprise, a little short on method but full of practical advice and insights into transformation. Aimed at organisational change experts rather than the business operations manager. Heavily biased on manufacturing, the book is useful for services none the less.

3 of 4 people found the following review helpful

5.0 out of 5 stars Excellent Book February 20, 2006

By Joseph E. Sniezek

Format:Paperback

Solid book. Filled with quality info, no fluff. I wish every book was of this quality.