Tuesday, October 6, 2009

Enterprise Change Model, Lean Thinking and Others

Lean, TPM, Operational Excellence, Agile Manufacturing, Six Sigma, WCOM, TQM, TOC

Lean six sigma probably the most probably change model that being adopted by many businesses. According to Bozdogan in his research on A Comparative Review of Lean Thinking, Six Sigma and related enterprise process improvement initiatives, he had summarized in the table below.

Change Model Lean Thinking Total Quality Management Six Sigma Theory of Constraints Agile Manufacturing Reengineering
Goal Create value for multiple enterprise stakeholders and build dynamic competitive advantage Meet customers expectations, improve profitability and increase share holder value Increase customer satisfaction and create economic wealth (higher profitability and share holders value) Improve netprofit Enhance enterprise competitive Improve enterprise performance
Strategy Eliminate waste with goal of creating value Improve product quality Reduce variation in all enterprise operation Remove constraints to throughput in production operations Anticipate and meet customer needs, provide high quality, low cost, innovative new products, deliver individualized customer solutions Radical change in processes for dramatic improvement
Focus Enterprise value stream (all enterprises process, function, and people) Business unit; production operation (products and process) Enterprise operations (all enterprise processes) Business unit (production operation) Extended enterprise (all enterprise processes, functions, and people) Business unit (business operations)
Implementation Method Value Stream Mapping and analysis Statistic process control (SPC), quality circle, quality engineering DMAIC cycle - define, measure, analysis, Improve, Control Improving throughput ("drum-buffer-rope") Integreate customers, suppliers, and internal processes; from virtual organizations; create adaptive, flexible, efficient manufacturing system; pursue continueous process improvement "Clean sheet" process design - mobilisation, diagnosis, redesign, transition process
Improvement Process Evolutionary systematic change Continuous incremental change Process-specific incremental or radical change Continuous incremental change Continuous incremental, as well as radical, change Radical change
History Since late 1940s Since early 1980s Since mid-1980s Since mid-1980s Since early 1990s Since early 1990s

What he had not discussed about is "TPM" here which also one change model adopted by many businesses such as Uniliver, Nestle, Heineken, Tetra Pak. TPM here refer to Total Productive Management not Total Planned Maintenance which is so much different.

So what is TPM?

TPM is about the contiuous effort to eliminate losses/waste through out organization through the total participation of employees at all level

So, the main concept is "Continous Improvement" or Kaizen, "Elimination of Waste", and "The people participation". Therefore, TPM change model if look further detail cover Lean thinking, TQM, Six Sigma, and if fully apply will extend into Agile Manufacturing. I will try post more on what is TPM