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Leading the lean enterprise transformation, second edition by George Koenigsaecker

By George Koenigsaecker

Updated with new info, illustrations, and management tools, top the tilt firm Transformation, moment Edition describes how the metrics utilized by Toyota force each line merchandise in a financial plan within the correct course. instead of concentrate on Lean instruments and ideas, the recent variation of this bestselling reference specializes in what could be the least understood and most important point of a Lean transformation: the construction of a Lean tradition. as well as new appendices with history info and insightful tales on Lean management and implementation, it contains new info on tactical association practices, procedure deployment, and Lean culture.

An inductee to IndustryWeek's corridor of Fame, George Koenigsaecker illustrates profitable techniques and helpful classes realized with case histories of U.S. leaders who've been instrumental in bringing Lean to the vanguard. He explains using price movement research on the management point and describes the best way to constitution kaizen occasions which may enhance the worth movement. geared up within the chronological series chief embarking on a Lean trip might adventure, the e-book discusses the equipment utilized by the writer through the Hon Company’s profitable Lean conversion, which doubled productiveness, tripled sales, and led IndustryWeek to acknowledge Hon as one of many "World’s a hundred top controlled Firms."

The ebook not just introduces strong management tools―including method deployment, transformation worth flow research, and transformation plan of care―but additionally palms capability switch brokers with the gentle abilities had to outline, boost, and converse their imaginative and prescient. Detailing the stairs required to maintain advancements, it provides time-tested counsel for powerful management all through a Lean transformation in any association.

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5 in its industry to no. 2 (growing sales just under 3× through “organic growth”), with momentum toward the leadership position in the industry. Based on the Rockwell benchmarking and the Danaher experience, we set goals for each HON location and each department to: • Reduce accident rates by 20 percent each year • Reduce errors and customer complaint rates by 20 percent per year • Reduce lead times by 50 percent per year until we get to daily production cycles • Grow enterprise productivity by 15 percent per year This is a pace of improvement that I would probably not recommend to someone just starting on the Lean journey, as it was challenging, to say the least.

First why: Increases or decreases in inventory or receivables are the initial driver of a change in cash flow for Deere. ) • Second why: Sales changes are the primary driver of changes to inventory or receivables. • Third why: Sales changes are primarily driven by changes in farmers’ net incomes. • Fourth why: Farmers’ net incomes are primarily driven by changes in crop production (although this is somewhat counterintuitive— reductions in crop production increase net income the most because a small shortage drives prices way up).

UNDERSTANDING FINANCIAL MEASURES: PERSONAL EXAMPLES It has taken me a long time to understand which financial measures matter, but here’s the evolution of my thinking: When I was at Deere in the 1970s, I was mentored by a number of folks, one of whom, Gene Schotanus, was the treasurer. One of the projects he gave me was to develop a cash-flow forecasting model for Deere, the world’s largest producer of agricultural equipment. As it turns out, Gene handled this in a very Toyota-like mentoring fashion: I was handed a significant problem, without much guidance on a solution, and the learning came from the struggle to understand, 17 18 • Leading the Lean Enterprise Transformation, Second Edition not from direct teaching.

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