LEAN MANAGERS’ AND SUPERVISORS’
EXPERIENCES OF FACTORS IN CONTINUOUS
IMPROVEMENT PROCESSES
A case study at lean production organizations
Master thesis, Msc BA, specialization Change Management University of Groningen, Faculty of Economics and Business
June 17Th, 2009 Robert Klein Student number: 1621505 Brummelkant 21 9502 BB Stadskanaal Telephone number: +31 (0)6-38967822 E-mail: robertklein55@hotmail.com
Supervisors of the university: Dr. B. J. M. Emans (first supervisor) Dr. Ir. I. ten Have MBA (second supervisor)
Internship institutions and contact persons: University of Groningen, department of Operations,
Lean Operations Research Centre, Prof. Dr. Ir. J. Slomp Lean Innovation Network,
PREFACE
In advance, I would like to say that writing this thesis was a really interesting, defying and instructive experience. I have learned and experienced a lot about lean in theory, but at the same time in practice. Still, I have the feeling there is always more to say about the subject lean. Just like my research subject, learning about lean is a ‘continuous improvement process’. In other words, to learn and experience about lean is like an ongoing journey.
This is also the moment to thank everyone involved during my research period. Especially, I would like to mention a few persons and organizations that supported me in my research.
I would like to thank my first supervisor Dr. B. J. M. Emans for the interesting discussion meetings and good feedback during the research. Besides that, I would like to thank him for keeping me on the right track and his enthusiastic support.
Another person that I would like to thank is Dr. I. ten Have for giving me useful information and advice in relation to my research. Also, I would like to thank her for all the company visits we have done together. This helped me to understand how lean works in practice.
Furthermore, I would like to thank Dr. Ir. J. Slomp for the opportunity that I could conduct my research for the Lean Operations Research Centre. By means of the lean workshops and a lean symposium, I discovered the lean philosophy and it gave me a very good insight in the content and meaning of lean.
ABSTRACT
The lean philosophy is an emerging approach to manage organizations in an efficient and effective way. Continuous improvement (CI) is one of the key principles of the lean philosophy and is an ongoing change process to improve lean organizations. What kind of factors are of influence when implementing the CI-principle in the lean philosophy? Which factors are successful in CI-processes according to employees in lean organizations? Therefore, in this study the following question has been investigated:
“In which way do factors promote the effectiveness of CI-processes according to lean managers’ and supervisors’ experiences?”
Especially, the impact of the specific factors decentralization, standardization, outside orientation, attention given and time available have been researched and analyzed.
A case study was performed at eight lean production organizations of the Lean Innovation Network. In-depth interviews were held with a lean manager and supervisor of each organization to gather information from multiple points of views. As a result, many promoting and impacting CI-factors were mentioned by the lean managers and supervisors. In summary it can be concluded that key factors promoting CI-processes are: kaizen projects, operator involvement, top-down support and strategic anchoring. Furthermore, decentralization, standardization, outside orientation, attention given and time available are factors that impact CI-processes in different ways. Human aspects also affect these factors. The research also pointed out that the chain of success can be related to the promoting and impacting CI-factors. Lean organizations should keep in mind the promoting and impacting CI-factors which have been discovered and analyzed.
TABLE OF CONTENTS
PREFACE Page 2
ABSTRACT Page 3
TABLE OF CONTENTS Page 4
1. INTRODUCTION Page 6
1.1 Field of research Page 6
1.2 Reason for research Page 6
1.3 Focus of research Page 7
2. THEORY AND RESEARCH DESIGN Page 8
2.1 Lean Page 8
2.1.1 Lean history Page 8
2.1.2 Lean thinking and principles Page 8
2.1.3 Definitions of lean Page 10
2.1.4 CI in lean Page 11
2.2 Change management and factors in relation to CI Page 11 2.2.1 Change management approach to CI Page 11 2.2.2 Factors promoting and impacting CI Page 13
2.3 Research design Page 17
2.3.1 Research question Page 17
2.3.2 Subquestions Page 17
2.3.3 Conceptual model Page 18
3. METHOD Page 19
3.1 Case study Page 19
3.2 Content and process of the interview Page 20
3.3 Method for analysis Page 21
4. RESULTS Page 23
4.1 Results Company A Page 23
4.1.1 Introduction of company A Page 23
4.1.2 Factors promoting CI at company A Page 23 4.1.3 The five specific factors researched at company A Page 26
4.2 Results Company B Page 29
4.2.1 Introduction of Company B Page 29
4.2.2 Factors promoting CI at Company B Page 29 4.2.3 The five specific factors researched at Company B Page 32
4.3 Results Company C Page 35
4.3.1 Introduction of Company C Page 35
4.4 Results Company D Page 40
4.4.1 Introduction of Company D Page 40
4.4.2 Factors promoting CI at Company D Page 40 4.4.3 The five specific factors researched at Company D Page 42
4.5 Results Company E Page 45
4.5.1 Introduction of Company E Page 45
4.5.2 Factors promoting CI at Company E Page 45 4.5.3 The five specific factors researched at Company E Page 47
4.6 Results Company F Page 50
4.6.1 Introduction of Company F Page 50
4.6.2 Factors promoting CI at Company F Page 50 4.6.3 The five specific factors researched at Company F Page 52
4.7 Results Company G Page 55
4.7.1 Introduction of Company G Page 55
4.7.2 Factors promoting CI at Company G Page 55 4.7.3 The five specific factors researched at Company G Page 57
4.8 Results Company H Page 60
4.8.1 Introduction of Company H Page 60
4.8.2 Factors promoting CI at Company H Page 60 4.8.3 The five specific factors researched at Company H Page 62
5. DISCUSSION Page 64
5.1 Conclusion factors promoting CI Page 64
5.1.1 Overview factors promoting CI at the organizations Page 64 5.1.2 Chain of success and factors promoting CI-processes Page 66
5.2 Conclusion five specific factors impacting CI Page 67 5.2.1 Factor decentralization in the CI-process Page 68 5.2.2 Factor standardization in the CI-process Page 69 5.2.3 Factor outside orientation in the CI-process Page 70 5.2.4 Factor attention given in the CI-process Page 70 5.2.5 Factor time available in the CI-process Page 71
5.3 Overall conclusion factors Page 72
5.4 Recommendations and ideas for further research Page 73
5.5 Research limitations and contribution to science and practice Page 74
6. REFERENCES Page 75
APPENDIX A: The chain of success Page 77
APPENDIX B: Interview Page 78
1. INTRODUCTION
In this chapter the topic of the research will be introduced. The purpose of the first subsection is to give an impression what the field of the research will be. In the second subsection the need for the research is explained. The third and last subsection of this chapter will discuss the focus of the research.
1.1 Field of research
In today’s business environment the lean philosophy is an emerging approach to manage organizations in an efficient and effective way. The lean philosophy is about doing the simple things in an organization well, continually trying to improve them and removing waste in every step of a process (Slack, Chambers and Johnston, 2004; Womack, Jones and Roos, 1990). Applying these lean principles in an organization can lead to desirable outcomes. Several organizations of the Dutch business who already implemented the lean philosophy have been united in the Lean Innovation Network (www.leaninnovationnetwork.com, 2008). These companies have a passion for continually seeking to improve their business activities and speeding up innovation. They are willing to learn from each other in order to gain benefits for their own organization. According to the participating organizations of the Lean Innovation Network lean thinking is another way of thinking, necessary in order to survive as organization in the long term. They recognize that by implementing the lean philosophy the output of an organization can be improved by more than 30% (www.leaninnovationnetwork.com, 2008). Some organizations of the Lean Innovation Network were visited for this research in order to see how part of the lean philosophy is conducted recently in these organizations.
1.2 Reason for research
comes in the picture. Change management is about how to get the organization ready for the change and guide the organization when the change is implemented. A second question arises, how to maintain the lean philosophy in the organization. Lean is not a one-time change, but an ongoing process trying to improve the whole organization (Womack et al., 1990). Discovering which factors are of influence when implementing the lean philosophy will help organizations to guide this ongoing change.
1.3 Focus of research
The lean philosophy is a broad and comprehensive philosophy with several principles. In order to create a focus in the research one principle of the lean philosophy will be studied in detail. The focus of this research will be on the principle of continuous improvement (CI) in lean organizations. This principle is an ongoing activity in these organizations. Furthermore, it is interesting to investigate how lean organizations are implementing the CI-process. How are these organizations handling the CI-process? By means of this research several factors promoting the effectiveness of CI-processes are discovered and analyzed. Organizations of the Lean Innovation Network were visited to understand how they have implemented a CI-process and still are carrying out this CI-process. First, factors that are promoting the effectiveness of CI-processes are identified. In relation to this also the specific factors; decentralization, standardization, outside orientation, attention given and time available have been researched in order to see how these factors impact CI-processes. Furthermore, similarities and differences in and between these lean organizations have been discovered.
In this research the following objective will be pursued:
“To give lean organizations insight in several critical key factors promoting and impacting a CI-process.”
When this research objective has been achieved, it becomes possible for lean organizations to steer the CI-process. The organizations become aware what kind of factors are of importance in the CI-process and in which way they could pay attention to these factors.
2. THEORY AND RESEARCH DESIGN
The aim of this chapter is to formulate a research question with several subquestions regarding the topics of lean and change management. In order to conduct a fruitful research first some theoretical background about lean and change management is desirable.
2.1 Lean
First, the lean concept will be described to make clear where the lean philosophy comes from, which principles are indispensable in the lean philosophy and which definitions of lean are used in literature and in this research. Also, CI in relation to lean will be discussed.
2.1.1 Lean history
The history of the lean philosophy can be found in Japan at Toyota. The founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda and engineer Taichi Ohno developed the Toyota Production System (TPS), nowadays referred to as the term ‘lean manufacturing’. By implementing TPS Toyota managed to reduce their costs considerably and become one of the world’s largest automobile company’s. Toyota had fully worked out the principles of lean production by the early 1960s (Womack et al., 1990).
2.1.2 Lean thinking and principles
As Womack and Jones (2003) note in ‘Lean Thinking’: “The critical starting point for lean thinking is value. Value can only be defined by the ultimate customer. It is only meaningful when expressed in terms of a specific product (a good or a service and often both at once), which meets the customer's needs at a specific price at a specific time.”
Only after specifying value and mapping the stream lean thinkers can implement the third principle of making the remaining, value-creating steps flow. Such step changes often require a fundamental shift in thinking for everyone involved, as functions and departments that once served as the drivers for organizing work must support these changes. A “batch and queue” production mentality must get used to production of small lots in a continuous flow.
As a result of the first three principles, lean enterprises can now make a revolutionary shift: instead of scheduling production to operate by a sales forecast, they can now simply make what the customer tells them to make. As Womack and Jones (2003) state, “You can let the customer pull the product from you as needed rather than pushing products, often unwanted, onto the customer.” In other words, no function or department upstream should produce a good or service until the customer downstream asks for it.
2.1.3 Definitions of lean
In literature many definitions can be found of the lean philosophy. What exactly is lean according to lean experts? A definition can be found in the first book about the lean philosophy “The machine that changed the world” written by Womack et al. (1990). According to Womack et al. (1990) lean production is about eliminating all non value adding activities in an organization. What are truly important organizational features of a lean organization? First, tasks and responsibilities of workers have to add value to the organization. Secondly, a system has to be put in place for detecting defects that quickly traces every problem (Womack et al., 1990).
Another definition of lean supporting the definition of Womack et al. (1990) has been worked out in the book “Lean Thinking” by Womack and Jones (2003). They also approach lean from a value creation perspective having five core principles. In summary, the principles of lean production are: specify value in the eyes of the customer, identify the value stream and eliminate waste, make value flow at the pull of the customer, involve and empower employees and continuously improve in the pursuit of perfection (Womack and Jones, 2003).
In their book ‘Operations Strategy’, Slack and Lewis (2002) describe from their point of view the key principles of lean, which support the principles of Womack and Jones (2003). According to Slack and Lewis (2002) the principles of lean are: improved flow of material and information across business functions, an emphasis on customer pull rather than organizational push shop-floor and a commitment to CI enabled by people development.
According to Slack et al. (2004) lean means moving towards the elimination of all waste in order to develop an operation that is faster, more dependable, produces higher quality products and services and, above all, operates at low cost.
The Lean Management Instituut (2008) in the Netherlands supports these definitions and goes even further with defining the lean principles as a ‘lean journey’. There is a starting point when implementing lean, but there is no defined end point in the lean philosophy. In the article of Vavra (2008) a consultant states the following: “lean is always a journey”. Lean is an ongoing process because of the last principle in the lean philosophy: CI.
In this study lean will be defined as:
According to all these definitions mentioned before the element of CI is indispensable in the lean philosophy. The definition of CI underlying in this research is the following:
“A system for detecting defects and CI enabled by employees in the pursuit of perfection.”
2.1.4 CI in lean
As mentioned before, the focus of this research is on the principle. How can the CI-process be described in relation to lean? In chapter 2.1.2 a first explanation of CI is given. The goal of CI-processes is to enhance quality of organizations, people, processes and products (Womack et al., 1990; Womack and Jones, 2003; Slack and Lewis, 2002). In the lean philosophy the method of Kaizen is frequently used to improve (Womack et al., 1990; Colenso, 2000). Kaizen is an incremental improvement process in order to improve continually. Often lean organizations conducting incremental improvement processes, but they do have an own term for these processes. “Kaizen seeks to embrace improvement in all aspects of the organization’s activities from the processes and relationships it develops for taking in materials and components from its downstream suppliers, through all its internal value adding processes, to the way it interacts with its distribution systems and its final customers”, state Colenso (2000). Colenso (2000) also writes the following: “It is important to recognize that Kaizen is not an initiative. It is an ongoing organizational culture which, as a matter of primary focus, is dedicated to and active in the processes of improvement. It is about building belief systems in the organization which consistently question whether there is not a better way. It is about creating internal systems which support and reward the restless pursuit of incremental improvement.”
2.2 Change management and factors in relation to CI
Now the theory about lean and CI has been discussed, it becomes interesting how change management approaches the CI-principle and what kind of factors actually are promoting and impacting CI-processes in lean organizations.
2.2.1 Change management approach to CI
change. Change management is less concerned about the transfer of knowledge, skills and capacity to manage change in the future than organization development.
Burnes (2004) has developed a framework for change. According to Burnes (2004) in terms of change the lean philosophy can be related to the change approach of Kaizen at the level of groups and/or individuals and a focus on tasks and procedures. He writes that the approach of Kaizen is appropriate in a stable organizational environment where small-scaled transformations are preferred and where transformation and change have to go relatively rapid. As mentioned before, Kaizen is an essential part of the CI-process in the lean philosophy.
In his book “Managing Change”, Burnes (2004) discusses also the Emergent approach to change. In this approach change is a continuous, dynamic and contested process that emerges in an unpredictable and unplanned fashion. CI in the lean philosophy is also an ongoing process. According to Burnes (2004) the Emergent approach stresses five features of organizations that either promote or obstruct success: structures, cultures, organizational learning, managerial behavior, power and politics.
2.2.2 Factors promoting and impacting CI
As mentioned in the previous subsection, Burnes (2004) state that the feature structure either promotes or obstructs success of an organization. This statement is supported by Jones (2007). Jones (2007) writes the following: “Once a group of people has established an organization to accomplish collective goals organizational structure evolves to increase the effectiveness of the organization’s control of the activities necessary to achieve its goals.” The organization design is the basis to create a certain organization structure in order to achieve CI-successes.
Organization design of lean
How does a lean organization design fit into an existing organization design? Implementing the lean philosophy into an organization can affect the organization design. A change in organization design could be necessary. The condition to implement lean into an organization is to achieve a certain fit between the current organization design and the desired lean organization design. Which factors are crucial for a lean organization?
involvement of customers in the product and service development helps the organization to respond flexibly and quickly to the requirements of the customer. In summary, the organization design of a lean organization can be characterized as follow: a high degree of decentralization, a high degree of standardization and a high degree of outside orientation. These characteristics can be seen as factors influencing a lean environment.
Lean middle management paradox
The decision to implement the lean philosophy in an organization will ultimately be made by the top management of the organization. This is a top-down approach (Burnes, 2004; Jones, 2007; Slack and Lewis, 2002; Slack et al., 2004) and middle management and work floor have to conform to this decision. Top management only makes the decision to introduce lean, but delegates the implementation to middle management. It is the task of middle management to implement top management’s decision. Middle management experiences the problems and frictions on the work floor by implementing top management’s decisions. On the other hand, the people on the work floor deal with the day-to-day practices of lean. They know what is important in lean operations. People on the work floor express their problems, suggestions and ideas to middle management. This is the bottom-up approach (Burnes, 2004; Jones, 2007; Slack and Lewis, 2002; Slack et al., 2004). It is the task of middle management to translate the problems, suggestions and ideas of the work floor to top management. Often, top management does not understand the problems, suggestions and ideas on the work floor. There is a big gap between top management and work floor in ‘not understanding each others business activities’ (Mak, 1999).
There is continually conflict of interests in the organization that has to be mediated by middle management. The decisions of top management are not embraced by people on the work floor and the day-to-day experiences of the work floor are not understood by top management. Middle management constantly balancing top-down visions versus bottom-up visions. This can be seen as a kind of middle management paradox. Which factors are important to manage this middle management paradox in a lean organization? Two factors may be important for middle management when managing the lean philosophy in the organization.
become clear. A manager has to give attention to his subordinates in order to avoid misunderstandings, problems and friction. Jones (2007) points out that direct contact between people is an integrating mechanism in the organization. According to Mak (1999) there are different perspectives for management and workers in Western countries in improvement of activities. This causes a mentality of distrust in the organization. Mak (1999) writes that managers and workers in Japan work together to enhance quality, in other words making improvements. Working together creates a relationship of trust. Therefore, attention given by managers towards workers is an essential factor to achieve effectiveness in the organization. This is also supported by Chua, Kog and Loh (1999). They state that ‘devotion by project managers’, so called supervisors, is a critical factor in the effectiveness of projects.
A second factor is availability of time. There has to be time available for management as well as for people on the work floor in relation to lean. Time available is also a factor in contributing to the effectiveness of the organization (Vasilash, 2000). From his point of view, organizations’ members should be free to allocate time for making improvements. They need time for the CI-process to gain knowledge, to enhance skills and to extend experiences. For example, by meetings, courses or training. Chua et al. (1999) state that ‘having a meeting frequently’ is a critical factor in the effectiveness of projects. Therefore, time management is an important issue in CI.
If the factors ‘attention given’ and ‘time available’ are present in a lean organization then improvements can be achieved. In this way, the middle management paradox can also be better managed. The challenge for a lean organization is to work as one cohesive team focused on the same goals striving for success. Therefore, a close cooperation between management and work floor is necessary. The factors ‘attention given’ and ‘time available’ can be helpful to achieve improvements in order to enhance success in the organization.
CI-factors in lean organizations
standardization and outside orientation will come forward during the lean journey. Another example, if middle management does not give attention towards the work floor, then a good cooperation and understanding between management and work floor people will fail. First, the bases of organization design and middle management paradox have to be put in the right context of the organization. Following from the fit of organization design and managing the middle management paradox, CI-processes within the organization can be effectively achieved. A clear and stable organization design gives the organization a certain structure and direction. According to Cummings & Worley (2005) the characteristic organization structure can promote organizational learning.
Organizations are operating within a broad environment and there are many factors influencing their effectiveness (Jones, 2007; Self, Armenakis & Schraeder, 2007). According to Pinto (2007) and Self et al. (2007) contextual factors play an important role in an organizational change. These are circumstances or existing external and internal conditions that influence organizational effectiveness. The following five contextual factors can be distinguished; decentralization, standardization, outside orientation, attention given and time available. These five factors are further discussed in order to see whether these factors effectively promote and positively impact the CI-process.
CI-factors and success
2.3 Research design
Following from theory the research question is formulated in this section. In this way, the focus of the research will become clear. Two subquestions are presented in order to guide and restrict the research. Finally, a schematic reproduction of the research design is displayed in a conceptual model.
2.3.1 Research question
From a theoretical point of view it can be concluded that CI is one of the essential principles in the lean philosophy. The research is focused on how factors promote the effectiveness of CI-processes at lean organizations.
Therefore, the next research question is formulated:
“In which way do factors promote the effectiveness of CI-processes according to lean managers’ and supervisors’ experiences?”
2.3.2 Subquestions
Two underlying subquestions are helpful in order to give an answer on this research question. In the research question the relationship between factors and CI is mentioned. The following subquestions are derived from the research question:
1. “Which factors promote the effectiveness of CI-processes according to lean managers and supervisors in lean organizations?”
2. “To what degree do the factors; decentralization, standardization, outside orientation, attention given and time available have an impact on CI-processes according to lean managers and supervisors in lean organizations?”
2.3.3. Conceptual model
The research question and subquestions have been discussed in the previous two subsections. As a result, the following conceptual model is presented in this subsection:
Explanation conceptual model
Many organizations are starting a lean journey. The ultimate goal of implementing a lean journey is to reach certain lean outcomes. One way for the organization to achieve lean outcomes is CI. To what extent are factors promoting and impacting CI in the organization? Factors promoting and impacting CI have been analyzed in this research. Therefore, the focus of the research is on the marked area of the conceptual model. Now the theory and research design have become clear, answers can be defined. Therefore, in the following chapter the research method will be discussed.
3. METHOD
In the previous chapter the theory and research design has been discussed. The aim of this chapter is to explain the way data are collected and interpreted in order to answer the research question. The research has been conducted through a case study, which is based on interviews.
3.1 Case study
A case study is performed to gather information from multiple points of views. During the research eight lean production organizations were visited. These organizations are connected to the Lean Innovation Network and work according the lean principles. In consultation with the Lean Innovation Network a collection of diverse organizations was made in order to achieve a justified distribution. The organizations are chosen based on the following criteria: progression in the lean principles, way of CI in the organization, sector of industry, kind of product, size of the organization, ownership and operating environment. The eight organizations apply the lean principles varying from one to five year. By applying the lean principles each organization has developed a way of making improvements continually. The spreading over several sectors is the following: one organization in the sector of heating systems, two organizations in the personal care sector, two organizations in the electronic sector and three organizations in the metal and steel construction sector. Some sectors of industry are the same, but different products can be distinguished. The eight organizations all produce their own type of product. One organization can be characterized small, two organizations are medium-sized and the other five organizations are large. Two organizations are family-owned companies and six organizations are owned by institutional investors. Five organizations are operating also in foreign countries and three organizations are operating only in the Netherlands.
operators in the production processes. As a remark, it can be said that the term lean manager and supervisor is not commonly used in all the organizations. Many other terms for a lean manager and supervisor are applied. This distinction in terms of functions will also be given in the result chapter.
3.2 Content and process of the interview
The lean managers as well as the supervisors were asked the same interview questions. An interview structure has been set up with the technique of only open questions (Cooper and Schindler, 2006). The interview structure is given in appendix B. The language of the interview structure is Dutch, because the interviews were conducted in Dutch at the organizations. The persons, which were interviewed, received a global interview structure in advance. The interview structure consisted of three parts: questions about the organization in general, questions about factors that promote the CI-process at the organization and questions about factors that can impact the CI-process in the organization. For every interview an hour was available. With the organizations it has been agreed that publication of the interview results to third parties is allowed. Only the names of the organizations will be made public, but names of the persons, that were interviewed, will not be given.
Before an interview question was asked the definition of the concept was explained to the interviewee. By holding an interview with open questions, it became possible to keep on asking questions after each interview question. In this way, the persons that were interviewed, answered the questions according to their feelings, opinions and experiences. A special technique that has been used during the interviews is the Critical Incident Technique (Flanagan, 1954). This research technique helps to make certain situations or incidents concrete and more information about people’s hidden interpretations, understandings and motivations becomes available. First, the interviewee had to describe what caused the incident. Secondly the interviewee had to describe his action and its effectiveness. The third and last aspect that the interviewee had to describe was the result of interviewee’s action. In addition it was asked whether more effective actions could have been implemented.
production processes within the organization was explained by the interviewee. In that context the interviewee’s function became clear. The second part reveals to what extent the organization is involved with CI and how the interviewee perceived this subject. The theoretical explanation of CI has been presented to the interviewee according to the definition in chapter 2.1.4 and in appendix B. During this part factors promoting CI were spontaneously highlighted by the interviewee. The third and last part of the interview was focused on the following five specific factors: decentralization, standardization, outside orientation, attention given and time available. The positive impact of these factors on CI in the organization has been examined. The theoretical explanation of these factors has been presented to the interviewee according to the definitions in chapter 2.2 and appendix B. The persons, that were interviewed, answered these questions by expressing their own feelings, opinions and experiences. They also pointed out the importance of these five specific factors. During the interviews the answers and remarks of the persons that were interviewed, were written down on a respondent card.
3.3 Method for analysis
The answers of the persons that were interviewed, have been processed by organization and are viewed in the ‘Result’ chapter. Each subchapter of the ‘Result’ chapter has been divided in three parts. First, a textual part has been written with a short introduction of the organization and the way CI is used. In the second part, a table is shown with CI-factors that were spontaneously highlighted by the lean manager and supervisor. The third and last part shows a table with the five specific factors and the impact of these factors on CI-processes according to the lean manager and supervisor.
The first table in each subchapter of the ‘Result’ chapter consists of four columns. The first column contains the CI-factors, which are summarized in a number of key factors. A description of these factors is given in the second column. The third column shows which factors have been discussed with the lean manager. In a similar way, the fourth column shows the factors, which have been discussed with the supervisor.
the CI-process according to the lean manager and supervisor. Therefore, a brief explanation of each factor will be given.
The second table in each subchapter consists of three columns. The first column contains the factors decentralization, standardization, outside orientation, attention given and time available. In the second column, the reported impact according to the lean manager is shown. In a similar way, the third column represents the reported impact according to the supervisor. The reported impact has been categorized at four levels; zero, low, moderate or high. The reported impact will be zero when the interviewee indicates that a factor does not impact the CI-process at all. A reported impact is low when a factor does influence the CI-process in a certain manner, but is not of significant importance. When the interviewee indicates that a factor is of importance to the CI-process, the reported impact will be categorized as moderate. The reported impact will be classified high when a factor is of significant importance to the CI-process. The four levels of reported impact in relation to the specific factors are derived from experiences of employees with CI.
About the second table of each subchapter the following remarks are made. The issue is not the presence or absence of the five specific factors at the different organizations. What really matters is the importance of these factors for the CI-process. The specific factors can be characterized at different levels, but the feelings, opinions and experiences of each interviewee can be positive as well as negative towards these factors. Therefore, a brief explanation of the reported mechanism is provided. The reported impact of the lean manager and supervisor can contradict each other.
4. RESULTS
The previous chapter discussed the research method. In the last subsection of that chapter the method of analysis has been outlined. The results of the research will now be given according to this method.
4.1 Results Company A
4.1.1 Introduction of Company A
The Company A organization has been established in XXX. Eight hundred people are employed at this company. Their core business is the production of medical products for the cardiovascular system. For example, Company A produces catheters for heart and blood vessels. Since a number of years Company A is applying the lean principles. The principles are driven from a top-down approach. Ideas about lean also come from top management. The work floor is a little bit skeptic about the lean principles. Therefore, most ideas do not come from a bottom-up approach. A special department within the organization has been set up to develop the lean challenges further.
To what extent is the organization of Company A involved in the CI-process? The entire organization is focused on CI. All the CI-activities in the organization will be directed by the special CI-department. CI has been incorporated in strategic policy and has been made visible in the annual goals and targets for all the departments. The technical method ‘Six Sigma’ is used to improve at Company A. On the other hand, improvements based on own insight are also common, a so called just-do-it policy. In this case, decisions from the persons in charge are not necessary. Extensive improvements take a long time and will be executed by the method of ‘kaikaku’. This means a large improvement in a process in the long term, for example, the adjustment of a production line. Small improvements take a week time and will be done by the method of ‘kaizen’. This means a small improvement in a part of a process in the short term.
4.1.2 Factors promoting CI at Company A
CI-process at Company A. In this way, factors were mentioned spontaneously during the conversations. In table 1 these factors have been summarized. The explanation of this table can be found in chapter 3.3.
TABLE 1
Factors promoting CI according to a lean manager and supervisor at Company A
Factor Description Lean manager Supervisor
Outside involvement
Involvement of external lean experts in
the CI-process
X
Process visualization
Presence of visual CI-tools on the work
floor X Special department Setup of a special department to improve processes X Operator involvement Involvement of operators in improvement actions X X Kaizen projects Set up of improvement projects in the organization X X Goal fixation
Fixed annual goals for making improvements in the organization X X Strategic anchoring Incorporation of CI-activities in strategic policy X Top-down support Support of top management in the
CI-process X Communication clarity Clarity of communication in the CI-process X Operators’ attitude Willingness of operators to make improvements X Outside involvement
Process visualization
Company A use tools that help to maintain and continually improve the production process. For example, lining up production machines in sequence, having screens presenting production numbers and time, make use of signal lights for possible interruptions, utilizing a system for a clean work place and using a wall with information.
Special department
A special department has been set up to improve processes in the entire organization. This department examines which improvement activities are necessary, how to achieve improvements and which employees are involved.
Operator involvement
The operators are the people on the work floor; they make the real product and face the problems in the production process. By involving them in improvement activities, CI can be realized. The operators have to observe the process by registering activities and defects.
Kaizen projects
The set up of short term improvements projects help to improve continually. Involvement of several employees from different departments in the project is helpful to rethink business processes and to learn from each other.
Goal fixation
By having fixed goals on an annual basis it is possible to improve continually. These fixed goals stimulate employees in the CI-process. Every year, the goals will be set higher in order to improve incrementally.
Strategic anchoring
Company A has integrated CI in the organization’s management. Strategic policy from a top-down approach is necessary to drive the CI-process in the entire organization. Strategic policy formulated on paper by top management has to be clarified to middle management and work floor.
Top-down support
Communication clarity
Inform employees sufficient, regular and on time in the CI-process. This helps to gain commitment of employees in making improvements.
Operators’ attitude
The operators at Company A are driven by the fact that they help people to stay alive. They feel responsible that a quality product will be produced in an hygienical way. They are focused to improve the product where possible.
4.1.3 The five specific factors researched at Company A
During the interviews the five factors have been presented to the lean manager and the supervisor. How do they perceive decentralization, standardization, outside orientation, attention given and time available in the CI-process at Company A? The outcomes are presented in table 2. The explanation of this table can be found in chapter 3.3.
TABLE 2
Vision about specific CI-factors by a lean manager and supervisor at Company A Factor Reported impact
lean manager
Reported impact supervisor
Decentralization Moderate High
Standardization High High
Outside orientation Low Moderate
Attention given Moderate High
Time available Moderate High
Decentralization
According to the lean manager the impact of decentralization towards CI should be characterized moderate (table 2). Decentralization within the CI-process has to be at the level of supervisors, but not at the level of operators. Supervisors are responsible for the activities on the work floor. A supervisor has to be in control of the production process because of the high quality requirements of the product. Therefore, only the supervisor should have the authority to make decisions regarding the production process. The lean manager also pointed out that self regulating work teams on the work floor were not successful.
the work floor. Operators should have the authority to make decisions on the work floor, because they are directly involved in the production process. The supervisor also indicated that there are still informal autonomous groups on the work floor.
Standardization
According to the lean manager the impact of standardization towards CI should be categorized high (table 2). The product of Company A requires a production process that is completely standardized. Strict work procedures, rules and prescriptions are necessary to produce a faultless product. The product will be applied to the human body. Therefore, no mistakes can be allowed in the production process of the product. This can only be avoided by using a high degree of standardization in the process.
According to the supervisor the impact of standardization in relation to CI should be classified high (table 2). Standardization is needed in order to create boundary conditions and to make improvements in the process. Improvements cannot be made without standardization, because the existing standards in the process need to be upgraded on a regular basis.
Outside orientation
According to the lean manager the impact of outside orientation should be classified low (table 2). Outside orientation within the CI-process is of indirect influence. The inside-out approach is used to look at the supply chain in order to achieve improvements. First, take a look at the inside relationships in the own organization, the internal supplier and internal customer. From this point of view, take a look at the external supplier. Finally, take a look at the external customer. In first instance, inside orientation is of more importance then outside orientation. The focus regarding outside orientation is more on the supplier and less on the customer.
According to the supervisor the impact of outside orientation should be categorized moderate (table 2). Outside orientation within the CI-process is important regarding suppliers. Only in good cooperation with suppliers adequate modifications of the product can be made. Cooperation with the customers is not of relevance in the production process of the product.
Attention given
According to the supervisor the impact of attention given should be categorized high (table 2). The attention given on the work floor is an ongoing process. It is the task of the supervisor to pay attention to the operators, not only at formal level but also at informal level. Operators want to know what is expected of them in terms of work and they need sufficient attention from the supervisor in order to remain motivated. Ongoing communication and transparency in communication is also required in guiding operators.
Time available
According to the lean manager the impact of time available should be classified moderate (table 2). In the CI-process at Company A time and resources will be set free to achieve improvements. For example, time and resources will be dedicated to an improvement activity for a whole week. Management and supervisors will get time to follow courses and training. On the other hand, operators get limited time in the CI-process.
4.2 Results Company B
4.2.1 Introduction of Company B
The Company B organization has been established in XXX. More than fifteen hundred people are employed at this company. Their core business is the production of consumer lifestyle products. The main focus of the Company B is on developing and manufacturing shavers. Since 2008 the shaver’s production division of Company B is applying the lean principles. The shaver’s division is a lean pilot plant. This year lean will be driven from a top-down approach. Ideas for improving the organization also come from a bottom-up approach. Company B has a culture of participation and involvement. A special department within the shaver’s production division has been set up to develop the lean challenges further.
To what extent is the organization of Company B involved in the CI-process? The shaver’s production division is focused on CI. The CI-activities in this division will be directed by a special CI-department. Many improvements at the shaver’s production division are made from a bottom-up approach. Further, the cooperation between production employees at this division has become more intensively. The employees within the organization need to have a just-do-it mentality. Improvements can be distinguished in long term improvements and short term improvements. Extensive improvements take much time and for this reason long term projects are started up. The process of relatively small improvements is called Rapid Continuous Process at Company B. These improvements take approximately seven weeks time and will be done by the ‘kaizen’ method. This means a small improvement in a part of a process.
4.2.2 Factors promoting CI at Company B
TABLE 3
Factors promoting CI according to a lean manager and supervisor at Company B
Factor Description Lean manager Supervisor
Outside involvement
Involvement of external lean experts in
the CI-process
X
Process visualization
Presence of visual CI-tools on the work
floor X Special department Setup of a special department to improve processes X Departmental cooperation Cooperation of several departments in the CI-process X Operator involvement Involvement of operators in improvement actions X Operators’ attitude Willingness of operators to make improvements X X Kaizen projects Set up of improvement projects in the organization X Strategic anchoring Incorporation of CI-activities in strategic policy X Top-down support Support of top management in the
CI-process X Communication clarity Clarity of communication in the CI-process X X Goal fixation
Fixed annual goals for making improvements in the organization
X
Outside involvement
Dutch lean experts from outside the organization were invited by Company B to develop and support CI-processes in the organization, because of their knowledge and experience about this subject.
Process visualization
production numbers and time, make use of signal lights for possible interruptions, utilizing a system for a clean work place, using a wall with information and marked lining on the work floor to use space efficiently.
Special department
A special department, within the Company B organization, has been set up to initiate and direct improvements in the shaver’s division. This department examines which improvement activities are necessary, how to achieve improvements and which employees are involved.
Departmental cooperation
A better adjustment of expectations and goals between departments in the organization could help to improve at production level as well as at the entire organizational level. Therefore, departments should cooperate more intensively.
Operator involvement
The operators are the people on the work floor; they make the real product and face the problems in the production process. By involving them in improvement activities CI can be realized. The operators have to observe the process by registering activities and defects.
Operators’ attitude
At Company B there is a culture of continuous change. Operators are used to ongoing changes in the organization. Operators at Company B have a positive attitude regarding the CI-process.
Kaizen projects
The set up of short term improvement projects promotes CI. Involvement of several employees from different departments in the project is helpful to rethink the process and to learn from each other.
Strategic anchoring
Company B is changing the organization’s vision. Nowadays, the emphasis lies more on the CI-process. From a strategic point of view the organization will try to distinguish from its competitors by continuously improving processes in the organization.
Top-down support
Communication clarity
Inform employees sufficiently, regular and on time in the CI-process. Sticking to appointments and agreements is also a major issue, because improvements will otherwise not be realized.
Goal fixation
By having fixed goals on an annual basis it is possible to improve continually. These fixed goals stimulate employees in the CI-process. Every year, the goals will be set higher in order to improve incrementally.
4.2.3 The five specific factors researched at Company B
During the interviews the five factors have been presented to the lean manager and the supervisor. How do they perceive decentralization, standardization, outside orientation, attention given and time available in the CI-process at Company B? The outcomes are presented in table 4. The explanation of this table can be found in chapter 3.3.
TABLE 4
Vision about specific CI-factors by a lean manager and supervisor at Company B Factor Reported impact
lean manager
Reported impact supervisor
Decentralization High High
Standardization High High
Outside orientation High Moderate
Attention given High High
Time available High High
Decentralization
According to the lean manager the impact of decentralization towards CI should be characterized high (table 4). Decentralization within the CI-process has to be at the level of supervisors and operators. The authority and responsibility has to be on the work floor. Supervisors and operators will continue to make improvements, because they have the feeling they are in control on the work floor. Therefore, it is certainly important that ownership can be found on the work floor.
the work floor. Operators should also have the authority to make decisions on the work floor. The operators know their role in the production process. They feel responsible for making a good product by their contribution in the production process. CI is stimulated by giving operators responsibility.
Standardization
According to the lean manager the impact of standardization towards CI should be categorized high (table 4). Standardization in the CI-process has to be at all levels in the organization. Show the work floor that management also has to work according standards. Standardization is not only required at work floor level, but also at management level. A standard is the starting point for CI. After each improvement activity a modified standard will be put in place. Therefore, standardization enhances the CI-process.
According to the supervisor the impact of standardization in relation to CI should be classified high (table 4). In the production process standardization has been created by the automated production machines. It is the task of operators to observe and facilitate the production process. They have to detect problems in the production process. The operators have to find solutions to prevent problems occurring again. In this way, standardization will help to make improvements.
Outside orientation
According to the lean manager the impact of outside orientation should be classified high (table 4). There should be more cooperation between the shavers’ production division and the other departments in the organization. Also many improvements could be made at the customer and supplier side. A better alignment of goals and expectations between the departments, a better completion of customer complaints and better agreements with suppliers will help to achieve improvements at a large scale.
According to the supervisor the impact of outside orientation should be categorized moderate (table 4). Outside orientation within the CI-process is important regarding the supplier’s side. A better cooperation with the supplier is necessary. Problems occur in the delivery of materials and packaging by the suppliers. These problems cause irregularities in the existing production process, which make improvements difficult.
Attention given
the first place, they can collect information and ideas about CI from the employees. Secondly, they can see for themselves where improvements can be made. Attention given towards the work floor should be put at a high level.
According to the supervisor the impact of attention given should be categorized high (table 4). The attention given to the work floor is an ongoing process. It is the task of the supervisor to give attention to operators during the production process. By own initiative the supervisor provides information about CI to the work floor. The operator should be informed about the CI-process on a regular basis. Operators want to know what is expected of them in terms of work and they need sufficient attention from the supervisor in order to remain motivated.
Time available
4.3 Results Company C
4.3.1 Introduction of Company C
The Company C organization has been established in XXX. Approximately hundred people are employed at this company. Their core business is the production of metal plates and tubes for the industry of mechanical engineering and construction. The shaping of metal plates and tubes is done by laser cutting. Most of the products are for the Dutch market. Since two years Company C is applying the lean principles. The principles are supported by middle management. Often, ideas do not come from a bottom-up approach. There is not an intensive participation concerning lean on the work floor. An internal employee has been appointed to develop the lean challenges further, but there is no special department concerned with lean activities.
To what extent is the organization of Company C involved in the CI-process? Middle management would like to improve certain activities and processes, but need support of top management to start improving continually. At the moment, improvements are made sporadically and on a very small scale. CI as a process has not yet been institutionalized at Company C. The organization does not use a method or system to improve continually. However, there are demands to product quality by the customer. Attention is paid to requirements of products and once in a while a product will be improved. Since a couple of months a steering committee has been started up to look at possible improvements in the organization. The steering committee directs these improvements to a work group. The work group has to execute the improvements.
4.3.2 Factors promoting CI at Company C
TABLE 5
Factors promoting CI according to a lean manager and supervisor at Company C
Factor Description Lean manager Supervisor
Outside involvement
Involvement of external lean expert in
the CI-process
X
Special teams
Set up of special teams for the
CI-process X Departmental cooperation Cooperation of several departments in the CI-process X Employees’ knowledge and skills
Presence of knowledge and skills of CI at employees X Educational opportunities Opportunity of following courses and
training of CI X X Kaizen projects Set up of improvement projects in the organization X Resource availability Presence of resources needed in the CI-process X Strategic anchoring Incorporation of CI-activities in strategic policy X Outside involvement
The lean manager is supported by a Dutch lean expert from outside the organization. The external lean expert is needed to guide and advice in the CI-process. Knowledge and experience about how to design and maintain a CI-process are not present in the organization.
Special teams
Two special teams have been set up to make improvements. First, the steering committee is directing the improvements. A second team, the work group, is executing the improvements. Improvements are realized by the institutionalization of these teams in the organization.
Departmental cooperation
Employees’ knowledge and skills
The knowledge and skills of CI in the organization is currently at a low level. Enhancement of knowledge and skills of employees is needed to have a certain CI-level in the organization. Otherwise, the organization is not capable to achieve improvements.
Educational opportunities
Employees need more courses and training concerning CI. They have to know how CI works and what is necessary in the CI-process. The organization should provide opportunities to follow courses and training in CI. The organization should stimulate the ability to learn about CI.
Kaizen projects
The set up of short term improvements projects helps to improve continually. Involvement of several employees from different departments in the project is helpful to rethink the process and to learn from each other.
Resource availability
Time and tools to make improvements are frequently not available in the CI-process. Therefore, it is sensible to make an inventory of the needed resources in advance.
Strategic anchoring
4.3.3 The five specific factors researched at Company C
During the interviews the five factors have been presented to the lean manager and the supervisor. How do they perceive decentralization, standardization, outside orientation, attention given and time available in the CI-process at Company C? The outcomes are presented in table 6. The explanation of this table can be found in chapter 3.3.
TABLE 6
Vision about specific CI-factors by a lean manager and supervisor at Company C Factor Reported impact
lean manager
Reported impact supervisor
Decentralization High Moderate
Standardization High Moderate
Outside orientation Moderate Low
Attention given Moderate High
Time available Moderate High
Decentralization
According to the lean manager the impact of decentralization towards CI should be characterized high (table 6). Decentralization within the CI-process has to be at the lowest level in the organization. Decentralization is not that formally institutionalized at Company C. In an informal way there is decentralization visible. Employees are set free in what they do on the work floor and they have many responsibilities regarding their work. Decentralization on the work floor stimulates cooperation and ideas concerning CI.
According to the supervisor the impact of decentralization towards CI should be classified moderate (table 6). Decentralization within the CI-process has to be at a low level in the organization. Appoint employees with sufficiently capabilities for an improvement project and make them as a team the owners in the CI-process. Team based decentralization instead of individual based decentralization in the CI-process.
Standardization
According to the supervisor the impact of standardization in relation to CI should be classified moderate (table 6). Standardization is very difficult to achieve, because of the high diversity in products. The emphasis should be more on realization of adequate production procedures instead of standardization procedures.
Outside orientation
According to the lean manager the impact of outside orientation should be classified moderate (table 6). The customers as well as the suppliers are important in the CI-process. Internal audits by customers at Company C will help to stay focused on CI. The internal audits are the incentive to become lean and to make improvements. At the supplier’s side, a right and fast delivery of materials help to improve the production process.
According to the supervisor the impact of outside orientation should be categorized low (table 6). Outside orientation within the CI-process is not of direct influence. First, Company C needs to focus on their own organization in making improvements. Most of the improvement initiatives are initiated by the customers of Company C. In general suppliers do not provide improvement initiatives.
Attention given
According to the lean manager the impact of attention given should be classified moderate (table 6). Formally, attention is given by the steering committee in the organization. In an informal way, the lean manager gives attention by asking the employees about CI on the work floor. Giving attention is mostly based on initiatives by the persons in charge.
According to the supervisor the impact of attention given should be categorized high (table 6). More attention need be given to CI by the organization. In the first place, employees have to receive courses and training to learn more about CI. Secondly, there should be fixed contact moments to give attention concerning CI.
Time available
According to the lean manager the impact of time available should be classified moderate (table 6). The lean manager has the opportunity to follow courses and training. Currently, there are not many opportunities for other employees to receive courses and training regarding CI.
4.4 Results Company D
4.4.1 Introduction of Company D
The Company D organization has been established in XXX. Around thirty-five people are employed at this company. Their core business is the production of forklift truck attachments. These products are mainly standardized. Most of the products are for export, the international markets. Since two years Company D is applying the lean principles. The principles are driven from a top-down approach. Ideas in relation to lean also come from a bottom-up approach. There is an intensive participation concerning lean on the work floor. The managing director develops the lean challenges further and there are special teams concerned with lean activities.
To what extent is the organization of Company D involved in the CI-process? The entire organization is focused on CI. All the CI-activities in the organization will be directed by the managing director and conducted by special teams. The CI-process has been integrated within the organization by the SLIM CV system. The purpose of this system is to continuous improving processes by special appointed teams. There are five special appointed teams in the organization of Company D: a steer committee to discuss improvements and to make decisions, a flow team for analyzing the flow of production processes, a standardization team for standardizing procedures in production processes, a paper team for collecting relevant information and a 5S-team to improve the workplace. 5S is a method for organizing the workplace. The meaning of 5S is as follow: sorting, straighten, sweeping, standardizing and sustaining the work place. Looking at the CI-process the motto in this organization is ‘less is more’.
4.4.2 Factors promoting CI at Company D
TABLE 7
Factors promoting CI according to a lean manager at Company D
Factor Description Lean manager
Special teams
Set up of special teams for the
CI-process
X
Process visualization
Presence of visual CI-tools on the work
floor
X
Educational opportunities
Opportunity of following courses and
training of CI X Initiative rewarding CI-initiatives of employees are rewarded X Goal fixation
Fixed annual goals for making improvements in the organization X Strategic anchoring Incorporation of CI-activities in strategic policy X Top-down support Support of top management in the
CI-process X Communication clarity Clarity of communication in the CI-process X Special teams
The establishment of a steer committee, a flow team, a standardization team, a paper team and a 5S-team institutionalizes CI as a process in the organization. In this way, a certain improvement structure is created. Furthermore, such a structure gives stability in the organization.
Process visualization
