Lean systems: Soft OR in practice
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Lean systems: Soft OR in practice Satya S. Chakravortya,* and Douglas N. Halesb a Department of Management and Entrepreneurship, Michael J. Coles College of Business, Kennesaw State University, 1000 Chastain Rd., Kennesaw GA, USA. E-mail: [email protected] b College of Business Administration, University of Rhode Island, 321 Ballentine Hall, 7 Lippitt Road, Kingston, RI, USA. E-mail: [email protected]
*Corresponding author.
Abstract
Lean implementation involves eliminating all forms of waste (for example, defects or overproduction) and consists of many improvement strategies or systems such as mistake proofing (PokaYoke) and Single Minute Exchange of Die (a.k.a. quick changeover). The purpose of this study is to discuss a successful lean or waste elimination initiative for a building products company. Specifically, this study describes how mistake proofing and quick changeover systems were implemented using soft OR practices or Soft Systems Methodology (SSM). Essentially, SSM consisted of four sequential stages, namely (1) problem identification, (2) basic approaches to improvement, (3) making plans for improvement, and (4) translating improvement plans into reality. The study contributes in two ways: for practicing managers, it shows that at the core of lean is soft OR practices, and for academicians, it provides directions for future research. OR Insight (2013) 26, 149–166. doi:10.1057/ori.2012.15; published online 9 January 2013
Keywords: soft OR; lean; waste elimination Received 8 June 2012; accepted 9 November 2012 after two revisions
Introduction Lean system’s role in driving operational excellence is well known. Widely recognized as originating from Toyota, lean implementation involves eliminating & 2013 Operational Research Society Ltd 0953-5543 OR Insight www.palgrave-journals.com/ori/
Vol. 26, 3, 149–166
Chakravorty and Hales
all forms of waste (for example, defects or overproduction) and consists of many improvement strategies or systems (Chakravorty, 2009). Two such systems are mistake proofing (Poka-Yoke) and Single Minute Exchange of Die (SMED, a.k.a. quick changeover). Mistake proofing systems prevent errors or human forgetfulness from turning into defects, which eliminates the waste of defects (Shingo, 1986). Similarly, quick changeover systems reduce machine setup time, which in turn reduces the size of production runs, thus eliminating the waste of overproduction (Shingo, 1985). Over the years, these systems have been heavily promoted in practitioners’ books (for example, Womack and Jones, 2003), the Shingo Prize for Operational Excellence,1 American Society of Quality2 and a plethora of consulting companies.3 To date, we have found no study explaining how to systematically implement these systems in real-world companies, or why these systems work to improve performance. This study describes a successful lean implementation in a building products company (BPC). Specifically, this study shows how mistake proofing and quick changeover systems were implemented using soft OR practices throug
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