Lean 101- An introduction to this management philosophy from it's start in production lines to today | David Keenan | Skillshare

Lean 101- An introduction to this management philosophy from it's start in production lines to today

David Keenan, Agile Leadership

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11 Lessons (36m)
    • 1. A Lean Introduction

      1:55
    • 2. The Cynefin Framework and how it helps with problem solving

      3:56
    • 3. A history of problem solving

      2:09
    • 4. A historical timeline of Lean

      5:09
    • 5. The Toyota Production system and waste

      4:27
    • 6. The House of Lean & Jidoka

      4:11
    • 7. Just in Time (JIT)

      5:15
    • 8. Kaizen - Continuous Improvement

      1:34
    • 9. The Toyota Way

      1:40
    • 10. Lean goes global and the beginning of Agile

      4:19
    • 11. Recap

      1:19

About This Class

The word Lean is dropped into conversations regularly in the product world. But many don't have a clue what it means! Over the course of about 30 minutes, Dave Keenan aims to answer the question of What Is Lean. 

He starts around 1950, looking at the emergence of Lean as a philosophy to address a rising question around how groups of people work on complicated problems in a new age of automation. He then spans 75 years of progress as Lean becomes the most successful product management philosophy before being overtaken by philosophies like Agile as the world became more complex.

And who should take this course? Anyone who wants a high level but comprehensive understanding of Lean. 

BTW: I designed this class as a companion to Agile 101. I would recommend you look at both together.

Transcripts

1. A Lean Introduction: welcome to lean one a one, a brief introduction to lean. My name is Dave Keenan, and in this class I'll be going to about 10 different lessons, and I made me to give a high level but reasonably thoroughly walk through of lean. So after the introductions, I'll start what is known as a sense making framework called a connection framework, which gives a good understanding of the types of problems that people address. And then I'll talk about how problems have evolved of last 100 150 years. From there, I'll move on to a historical time. I'm gonna bleed before focusing on the origins of Lean with the Toyota production system and its focus on waste. I'll explain the House of Lean, which really just describes the pillars that lean is built on before moving on to the three central practices of lean Judoka. Just in time, I, G, I t and kaizen our continuous improvement, a touch briefly aren't a toy. The values and principles behind Lean and then how lean, expanded and went global. I'll end up with a hint on how agile began. I hope you enjoy. Let me introduce myself. I am Dave Keenan. I am a product owner. Scrum master, agile coach, project manager, delivery lead. My expertise is in large scale digital delivery, actually on large scale agile delivery. I've worked with the likes of Amazon on Bond that West Direct Line. My last consultancy role was with Accenture, and with them I was with companies like BP and GDF, um, Pearson on door Bs, to name but a few. Um, Andi. I'm the co founder of Hit PT Agile, which stands for high performance, agile teams. 2. The Cynefin Framework and how it helps with problem solving: so to start off, let me just ask a question. What's the best way to solve a problem? And the guy called Dave Snowden came up with a very good frame or called Can Nevin framework, and in it he describes for he actually describes five, but I'm gonna hold it. The four different states on each one of them dictates a different method is different framework. A different practice to solve that problem he starts with very simple are, as he called it, obvious, then complicated problems, then complex problems on finally chaotic chaos problems. Andi, if we look at the 1st 2 of those, the obvious and complicated one of the things that is a parent with them is that the results are predictable. So let me start with simple obvious. This could be something like following a recipe. Are boiling an egg. When you look at boiling an egg, you don't use a different method. Each time you want to boil an egg, you have a best practice, and that's what you use. So you would put it into a pot of boiling water and boy for 12 minutes. I don't know Andi. Each time you do that the results would be predictable. If you follow the recipe exactly the same, you will get the same results each time, so it's predictable. It's the same with complicated in complicated. It could be something like putting together an older watch with COGSA. Etcetera are one that we're going to talk about in the second is the calm production line, and when you look at that in the calm production line, there are quite a lot of pieces that could be many thousands of pieces that are put together under all very specific pieces by standardized pieces that are put in place and put together to make a car. But if you do it the right way with the right pieces, each time you put petrol in, the car will drive away every single time, so it's predictable. We then move into the third stage, which is complex. On the difference between complicated, complicated and complex is that I think someone once said it's a different green frog in the bike. If you take a frog, if you take a bite to get and put it back. Sorry, take a bike apart and put it back together. You could a cycle away. If you take a frog apart and then put it back together her back together again, then it in the same thing won't happen, and complex is it starts off complicated. There's lots of moving parts, probably, but a couple of examples would be the self driving car. Are a manned flight to Mars? Could be two good examples on a lot of time, and it involved people. Andi. The important thing to know about complexes that the results won't be the same each time you do it so you can dictate what the outcome is going to be. Um, so it's moving on and they're different states, and it takes a different practice to solve a complex problem over a complicated problem on the last one is chaos are chaotic on, and an example would be if fire alarm went off today in this room, I would run out through the front door on. Then, as I run out, I would notice that there is fire coming up the stairs so I would come back into the room, close the door and go for the window. So it's it's and then on the frameworks have a different ways that you address them. So with that one, I would I would act first and then I would sense like it. So I act by going on front door and they know it sense what's going on. I would see fire see here for a smelly fire coming up the stairs, and I would respond to that by taking a next action So you can see there that each one of the different four. That's a different way that you're going to address that, and that's a very central part of what we're going to talk about here. 3. A history of problem solving: If you look through history and you start maybe at the agricultural age, you can see that a lot of that. A lot of the rules, a lot of the work that we didn't don't stages were very simple. So if you work in agriculture, simple weight would have been to put a hole in the ground for the seat in the whole, cover it with Earth, give it some water, leave it for some time, and then you would. So that grain our are on, then cook it and eat it on you. See there that you would do the same thing each time. You wouldn't do it. You wouldn't collect the green and Mondo, um, and earlier, two months earlier, you wouldn't change it. You would use the same recipe each time. Andi, you might modify in overtime on Do you would have a new best practice for doing that. So that's the agricultural year, and that was the obvious Syria era. And then we moved from there into the Industrial Revolution. On with that, we saw the birth off automation, and because of that, we moved from obvious into complicated Andi on. That's very much if you had. If you had something that was predictable that you could do 100 times we've learned a long time ago, we learned during the Industrial Revolution that how you would address that you would automated. So with automation came things like production lines on weight that we moved into the complex world. And then maybe over the last 50 years, we started moving more and more into the complex world. The birth of PCs on the Internet decision making changed. If you put a product out there, the moment you put it out there, you are evolving that product. You want to evolve it straight away, as opposed to complicated with car. You would put a car in the market on def. People didn't like it. They would stock with that car. Just wouldn't sell them. Where is now we're seeing? We're putting our products in front of people in getting Iraq reaction straight away. So when now moving into that complex world on, we need to use different methods. Different practices for each one of those frameworks has the different methods. They suit the different frameworks 4. A historical timeline of Lean: look at a timeline of lean here and before I begin, I am going to say that this isn't the time line of lean. It's very much the timeline that I want to tell. That's very specific to the journey that I want to go through, which is from Lean Into Agile and scrum eso Please take this with a pinch of salt on. Realize that there's no fluff mawr to lean than I've written down here. But it starts as I mentioned with the Industrial Revolution with automation. And to be honest with you, one of the companies and the central company of Lean Toyota, they started off in the room business. And then there a good place to start for me that they would. They were very inventive in terms of how they develop their looms over from the late 18 hundreds into the 19 hundreds. Andi, Um and they were the first to kind of come up with automation, but it was 1913 and it was him, me forward who who came up with the first production line in Highland Park, Michigan. Andi for the Model T. And again, this was even though I won't go into anything more knuckles. That's not where Lene started. These two steps were the precursors to on development of Lean on, especially that idea, often automated production line. So Lane really started from 1948 till 1975 and Toyota had branched out from Loom Manufacturer into a calm production on bond. It was one of the Toy Order and Dynasty who went to American realized. And so how many cars were there in 19 twenties 19 thirties? I wanted to bring that back and start manufacture cars in Japan. Andi. So they set up an engine making facility in one of their Loom factories. Andi. It wasn't really until 1948 when it started to really kick off 1948 and then continued on in terms of how they try to improve their manufacturing until 1975 which was when they had kind of fully developed what they call the Toyota production system, which was their way on their framework, their philosophy on practices and methods for for improving how they build cars, what we then saw. So if they were, the father's off lean and this is the potato production system, actually, just was renamed the Rebranded Out Lean, and it was rebranded when it came around the world. So after 1975 it started, Teoh move around to place like America and Europe on other companies and other individuals started to see what a brilliant way it was. The work on DSO. It morphed into lean manufacturing and then into lean. And in 1984 we saw the first collaboration between Toyota and General Motors in a factory that used lean principles. Then, from there in 1988 we saw the first mention of the word lean. So, as I said, until Danny was the Toyota production system and in 1988 there was an M. I. T. Article, which talked about the triumph of the lean production system. Andi, it was M I t. Again in 1991 the there was a five year study in M I t on. Lean on. Do the authors of the studies put together a book on they call it The machine that changed the world on again. This brought lean to the full view of the world, and it was after this time, 1991 that around the world. All the companies started to using practices from there in 2001. There was an interesting one in that Toyota way was produced, and basically the Toyota Way was the philosophy behind Toyota production system. So they had put together all the practices, but they didn't write down there values and their principles until he tells them one which many years later. But it's an interesting when a lot of companies who do to get away around they have values , principles. And then from there, they build their practices around that Toyota, I'm sure that had their practice, their belief systems before 2001. But this was when they put down the 14 principles into one paper. The last thing I'm going to talk about is that we started seeing the intersection between lean and agile. Around 2003. There was a book by the popping Deeks, which WAAS lean software development, which came up with 22 tools, lean tools for using on developing software within the natural world. So when we look at this journey here, there's only seven or eight bullet points. But it's very interesting to see how Toyota started the Toyota production system up until 75 from 75 for next 10 years. He moved around the world in the next 10 15 years, became known as lean manufacturing and then lean. And then it became adopted around the world from that time from the early 19 nineties, um, until now. 5. The Toyota Production system and waste: this Toyota production system, as I said for car manufacturing, and the focus was on improving the flow of production line to optimize the production line on the goal for them. Waas that they want to improve quality reduced cost reduced time by focusing on waste on this word, waste is a central word in the world in in lean, entire production systems. Andi. They had three different words that they would use that collectively described wasteful practices and these air wasteful practices that they wanted to reduce and to eliminate. And so they had more a movie on Buddha Japanese words. And there's quite a lot of Japanese words within Lee Andi within the Toyota production system because that's where they began so more on the 1st 1 was about unevenness. And when you look at a production line, if you had in stage one that they were able Teoh deliver three objects at the end of an hour, and in states true, they were able to work on five objects every hour. You can see that it is an imbalance there already. There's an unevenness on one of the great things. The reductions that they wanted to do in waste with unsmiling out the unevenness in that, and there was a huge focus on that. 2nd 1 is Mori, which is basically overburdening, and it's overburdening of two things over burning off the system and overburdening of people on the 3rd 1 is moda, which is kind of grew to be the most important of the wastes. On this mood, adjust means waste on Detroit, a production system and tired. It came up with seven different types of wastes that they wanted to eliminate. And to be honest with you, there was another one added in the 19 eighties but for a toy odor when it became lean. But for Toyota, that was seven wastes one waas inventory. So if you have lots of Indian infantry, this was a waste. There is no need to have lots of inventory, and one of the things we lean manufacturing was about reducing down to bare minimum. The amount of inventory that you held onto another one was transportation. So if you were developing cars, Andi, your wheels were coming from 100 miles away in another factory that transportation was not a type of waste waiting time. As I mentioned if you're waiting for next step of the process for items to be delivered into you from the last step, that's waiting time motion. I think McDonald's with the perfect example of this. When they put the burger buns, the burger meets the cheese and the sources right next to each other instead of having the burgers over 10 feet away on. Whenever you wanted to get the bonds, he went over here and to get the burgers, you came from over there and you had to walk over to get them all in McDonald's. They put everything right in front you so that you could make a burger without any motion at all. The next one is over. Processing Andi Mawr work are higher quality than required by the customer. And so basically what they say is that we've got quality standards. We just need to hold those quality standards not higher than that. That's not what the customer needs. We have them specifically because we know our customer, and so over processing means that we only deliver to the quality that we've stipulated at the beginning. Overproduction is a huge one. If you have overproduction, then you have stock that you haven't sold on. Do you have to store that stock you might sell Dan Stark, etcetera, Andi. Then the last one I'm gonna mention from the seventies defects. Andi, I think it speaks for itself. The reduction of defects is a core part off any system. And to be honest with you, there's another. Another philosophy called lean 676 Sigma and six Sigma focused specifically on defects. And then the 81 that came in afterwards. Waas on talent the under utilisation off your people skills and talents. And so what we see here is seven different types of wastes on Buddha and then the 81 that was added when it became known as lean. 6. The House of Lean & Jidoka: I've shown that I put this light together myself. That's why it's so terrible just to give a very simple representation of lean. We can see in the slide that at the very bottom what we have is we have standardized work and stability, a stable system, standardized pieces, standardised items. And then I'm gonna explain a couple of the different terminology here in the second kaizen . But kaizen basically means continuous improvement. So standardized and stability and continuous improvement on the bedrock and then two pills are hugely important because they are the items that make names stand out from any other philosophy and framework for delivering in that complicated space on the just in time production philosophy. Andi. Then DeCota Andi. I'll explain the tweet them in a second and those the pillows to deliver lean. And it could be called the House of Lien on the House, a Toyota production system, though both those terms are used. But basically this is a very simple view on how to deliver lean principles. Now many people spend their whole life learning how to deliver lean, so I've broken it down to 45 bullet points here, but it's really not enough. Basically, what it means is that you've got to live your life by these principles. So let me start and talk about which judoka, which is the 1st 1 I'm going to go into Andi. It simply means automation with a human touch, our human intelligence. And it's a quality control process. Onda principle is very, very simple. It has four parts discovering abnormality. Stop the system Fixed the immediate problem can investigate and correct The root cause sounds very simple, but when a normal other companies try to, um mimic our duplicate would. But Toyota had don't by not getting this right was one of the key areas for the failure. The principle of stopping the system, fixing the problem and then discovering route calls and investigating and resolving route calls is a key part of any continuous improvement that we need to do So. As I said, it's quality controlled protests. Andi give a bit of history about the Toyota Dynasty, the whole family. They started Lou Manifest in bloom manufacturing textile looms, and they were highly innovative in that and improving how the looms work and they developed their textile looms that stopped automatically when the thread broke because if the thread broke, then all the material that was produced after that point was defective, and this was the first time that that was done. This was sent the late 18 hundreds since the start of 19 hundreds. Andi, they use the principles. This is the principle of judoka and what? What it meant is that by automating it on by putting a visual signal when defective, Rose meant that instead of having one person in charge of each loom, one person could be in charge of 30 looms Andi. When the signal was given that there was a problem, that person then could intervene. So, as I said, automation with a human touch. It's also called a socio technical system, which recognized the interaction between people and technology. But what we saw is that the that it was automated and the on the automation went along happily until there was a problem. And that's when the humans intervened inside there, um, and the decision to stop and fix the problems right then and there, rather than pushing it along line. This, as I said, with a key part of why toilet was so successful with improving how they delivered value. So that's judoka Andi. There are books written about that on its own 7. Just in Time (JIT): the second pillar is just in time. Production are just in time manufacturing Andi again. It is one of the hugely important part of Lean Off the entire production system. It was developed mostly in the fifties and 16th and it became known further than toilet and further than Japan in the 19 seventies. I think the first English language papers on Unjust in Time came out in the 19 seventies on a very simple example would be on, but it came from America, came from supermarkets. It's seemingly Tichy. Oh no. Who was the main thing? Key person who put together just in time production. He spent time in America. Andi Heese Aw, how Let's say with a supermarket and stacking shells if we had a shelf that out of space for four cans of beans, two in the bottom, in two in the top, and then maybe a space behind that to allow us to put another roller being So we now have eight tins of beans inside there, having an ad hoc way that we stacked those shells and that replenish those shells was quite common, so sometimes there might be none left, and someone would notice it and go and we stopped the shells. Are we Could we stop them? Instead of putting age, we might put 10 to next door to them etcetera many different ways. But on just in time production, what they would do is that maybe they would have an explicit policy Onda a specific rule. And this is the route that we followed every single time. So what they would say is that when the four in the front were were sold and taken from the shells, we would then at that point either true visual signal are by someone observing it. We would go into the back on, bring out four more times of bringing beans, bring the ones from the back up to the front and slot the fourth back into the back off the shelf. Andi, what we see there that could be taken to the next step inside in the warehouse are in the in the back room. We might have two tins of beans outside. Two boxes of beings re through with 20 tins in each box on. What we could do from there is that when it's down to one box, there's a visual signal odder in some way on someone would identify that, and only when one box of depleted would be going called to the wholesaler on a manufacturer to send us a new box of beans. So what we've done there is using this just in time. Manufacturing are just just in time production. You can see how the system would go every step back from the end when the customer purchased right back to the beginning of when we purchased. What we see is that there's an explicit rule Onda how we kept our stock to the minimum by making sure that we only went back and purchase new stock from our supplier. When we depleted our stock on, we only stacked in the front when we depleted the shelf, which meant that we had a clockwork here. And if you extend that idea out past that into how we do it on in manufacturing on a production line, with each step on a just in time, in each step that we didn't make when we said earlier that we had the first group of people would be able to deliver three items and the second group were able to manufacture five items. How the disparity between that And by using a just in time philosophy, we would have this second group of people only delivering three items per hour on we would try to in the background. We would try to improve that. But the bottom line is that there's no need for them to be able to do five to manufacture five in an hour if they're only able to deliver into their workload three items per hour. So Jay I t became a central premise and it grew from there, and it grew as well in terms of when they became lean and remove wider than this idea off just just in time philosophy. And it became. It also encompass things like the elimination of defects, streamlining the movement, leveling, etcetera. They all became part of this. Just in time production, we can see the benefits as well. Inventory reduces infantry and reuses flow time. It reduces overproduction on. It also increases production on one of the central pillars off this'll. Just in time production was a scheduling system called Cambon. This is one that was taken very happily into agile and is being used today within our job very strongly. Um and so we also saw just in time philosophies being going further than manufacturing as well, on going past it into all the all the areas where Lien has now encompassed. 8. Kaizen - Continuous Improvement: the 3rd 1 Not going to talk about these chitin improve collaboratively. That's what it's what it means. But it's a culture off continuous process improvement, and it's the bedrock off lean. It's a daily process. It's from top to bottom. Everyone in the organization, from the managing director and CEO down the line to the people sweeping the floors. The whole key kaizen is that everyone is bought into this philosophy of trying to continually improve how they do their work and had two approaches and had flow. Kaiser and Process Kaiser now flow kaizen was the bigger picture. It could have been the reorganization of the whole production area of the whole organization, and this was flow kaizen on this needed everyone to get involved and then process kaizen waas at an individual level at an individual work stand level small improvements that individuals are small groups of people could do in their little area on. So it was very much about humanizing the workplace, about building continuous improvement into how people think every single day and again, just like just in time. This was one of those items that grew and grew, and if you look at Anton. Now it's one of the central pillars are premises of agile. Is this whole idea off formal and informal? Continuous improvement at every single levels may be one of the team. 9. The Toyota Way: So that was 1948 to 75. We started seeing lean um, Detroit, a production system, Andi. And then that morphing into a clean but unusual thing happened in 2001. That tired Away was which was basically the principles and behaviors on depending the time production system was produced. A document was produced with 14 principles inside there, and they were. They were grouped into other four. There were four areas. Number one was a longtime philosophy broader than this. Focus on short term goals. The right process producing the right results is number two. Adding value to the organization by developing the people was number three on continuously solving root problems to drive organizational learning was number four on day were 14 principles produced from that on to the two focal points of those principles were continues improvement and respect for people on. If you look at some of those, it incorporates some of the things that I've talked about before using a pull system to avoid overproduction, leveling out the workload growing leaders who thoroughly understand the work, lived the philosophy and teach it to others. So we can see here that all right, in a lot of ways. What we have is that we have our values. We have our principles and practices grow from them. But in this case, what we had is a lot of practices were evolved. Andi Later on, they went on to formally define their values and principles from that. 10. Lean goes global and the beginning of Agile: So if I take a step back for a second, Um, we've talked an awful lot about twice a production system, but the tightest production system is lean. It's just that as it moved around the world that changed names, now it has more. There have things with things have changed. But the core ideals, the core practices, the core values within the Toyota production system on the same items that are now core to lean as we know it today. And so this happened in 19 seventies and eighties. It morphed into nineties when Gu and earned full world attention and I could go on and talk about where it went next. But what's unusual about Lean is that it then started. Not only did it start to evolve into corn production sites, um, involved in lean, it started to evolve past manufacturing past production, we saw lean government with all in hospitals, saw lean I T. And it's this journey into lean I T. And in tow 18 general that I'm going to talk about. That's what I'm gonna talk about into agile 101 But at that time in the seventies 18 nineties, we saw this technology explosion, which was running in parallel to this. We saw the personal computer starting in the seventies. I believe on I believe I had what are some of the first ones on then the Internet in the 19 nineties and software became different that the beginning it wasn't. But over the years, software development has moved into that complex area, and an example could be that a group of people that could have for a small company could have produced a new graphics program, which was aimed at engineers or architects on the day after they put it out. And they found that their audience waas school age Children and how the minute they put it out there. The minute they got reaction from customers, they had to change and evolve what they were doing, and so they couldn't wait another two years. They had tubes within nowadays have to wait, and they they have to the following day after start involving their product on each individual customer uses that product differently. The minute you put it in front of the customers, now it is you learn and you want to evolve, and so what we saw because of this is that software as it moved into complex, a lot of the practices that were built for complicated just stopped working very well for them, for them, for off. But at the same time, a lot of software PM still using practices. Um, but way did see that book. In 2003 the pop index produced lean software development. Andi, When you look at the principles that they came up with, I think I have to slide there. We start seeing that it's a mixture. It's emerging of agina lean. So really, what we started to see in lean software development eliminate waste, which is a specific the lean. But number three is decide as late as possible, which is purely from the agile book. And so what? We started seeing Waas. If we take a Venn diagram, Andi lean being one of the circles on agile being one of the circles, then lean Software development was basically the intersection between the two, so this leaders on now to start talking about John and how agile began in that in that time started to evolve in starting from the late eighties into the nineties in self development on started moving into that complex world where the goal has changed. So from reducing waste and saving costs, reducing inputs, improving quality, which is perfect for a production line. It starts moving into complex, which had different goals, different values, different principles and so this leads us into the next weather now, which is going to be on a job. 11. Recap: So just a quick recap on this lean one or one class I started with the Canavan framework on looked at that idea of a simple, complicated, complex and chaotic problem and how we address each one in a different way. From there, I moved on to a historical timeline of Lean, starting with Toyota Toyota production system in 1948 and ending around 2003 with lean software development. I moved on to the Toyota production system and its focus on more armoury and Muta and I expanded on the seven waste. I explained the House of Lean before homing in under three central practices of lean Judoka just in time, R. J I. T. And kaizen our continuous improvement. I touched on the Toyota Way with its values and principles and then explained how lean, expanded and went global, and I ended up by hinting at the birth of our job. Now, at the point of information, I started with a plan of designing and agile a one a one class, but realized that it would not be complete without including lean and then moving on to Angela. So please try to find Angela wanna one as they are meant to go together, Many thanks and I hope was worthwhile for you