Title: How to Lean on Lean? Some thoughts about the Organizational effectiveness.
“Lean” is not about just “diet” in activities, human resources, or equipment. “Lean” is about elimination of waste, to work out processes with “as little waste as possible”. But, from other side, Lean is also about to append new elements, like innovation management, preservation of personal and organizational knowledge, utilization of the ideas generated by those who use the processes themselves, the ones who work with the process daily and those that know how to improve or replace it, etc. These additional elements consequence in great findings and increase the effectiveness and morale.
So, in addition to elimination the “MUDAs”, i.e.. the “overs” (over-production, over-stock, over-transportation, over-processing, over-transfer, over-waiting, over-defect), Lean implies the "elimination of the missing"!
Then the paper is introducing the appropriate organizational models and suggests for discussion the "Restaurant Bill Effect" (RBE), as a typical statistical characteristic of poor waste control and weak management. When RBE takes place the “miscellaneous” issues, although every one of them is of “low value”, become altogether to be more powerful than the “high value” primary goals and main business results. Following the RBE definition and analysis, the criteria of the Organizational Effectiveness, Maturity and Stability are introduced. The Restaurant Bill Effect, at the very first glance, just simply contradicts the Pareto Principle, but the paper shows that these two principles rather complement one another. Essentially the RBE demonstrates the Power of Miscellaneous, the notion extremely important in Management, i.e. day-by-day decision making, prediction, evaluation, and prioritization of alternatives, and being restricted by different limitations and boundaries, including the budget issues.
If the RBE phenomenon is evident, it means that in this case the Pareto Principle is compromised, i.e., “the Miscellaneous” is no more the “Trivial many” as expected. The paper is exploring why the Restaurant Bill Effect is undesirable and should be eliminated. The claim that the waste presence can be detected by the existence of significant RBE is introduced. The RBE elimination as a way of transforming the “Powerful Miscellaneous” into “Trivial many” is offered. Consequently, the Statistical Hypothesis testing, when the Null Hypothesis of the Pareto Principle (PP) is claimed as a “golden ratio” 20/80 (Ho: p1=0.2; H1: p1<0.2; given p2=0.8). If the PP is taking place, this argued to be the indication that the “Lean” organization status is achieved. The advantages for the process/system of being “Pareto-compliant” and therefore achieving maximum Effectiveness, Maturity and Excellence are presented.
Dr. Bluvband, one of the world leading experts in Quality, Reliability and Safety of both hardware and software Systems.
Experience: He has more than 40 years of experience in consulting and teaching in Quality, Reliability and Safety Engineering and Management.
Dr. Bluvband has been the mastermind behind the A.L.D. Reliability and Safety Software and Services as well as conducting CRE, CQE, CQA, CQM, CSQE and Lead Assessors Courses, Tutorials on RAMS, ILS, LCC, QA for thousands of professionals in USA, Europe, Israel and Far East countries. Dr. Bluvband is a known and welcome speaker on the hardware and software quality issues worldwide.
Dr. Bluvband has profound knowledge and large experience providing Safety Cases/Analyses in accordance with Military, Aviation, and Railway Standards, and has focused his professional interest on the development and implementation of novel techniques for Safety assessment and management of failure critical Aviation and Railway systems.
Previous positions: Prior to founding the A.L.D. Ltd., Zigmund Bluvband served as the Reliability and Quality Assurance Director and VP at Tadiran Systems Division, and the Reliability Engineer at the Israel Aircraft Industries.
His company: His multi-talented personality and world-class professionalism are reflected in the wide scope of the ALD Group activities (www.aldservice.com).
Professional Societies Acclaim: He is the founder and the President of the IIQIE - Israeli Institute for Quality, Innovation and Excellence - EOQ Associated Member; He served the Israeli Society for Quality (ISQ) as its' President & Chairman for two cadencies in 1989-1994. Dr. Bluvband was chosen as the ISQ Fellow in 1995 and as American Society for Quality (ASQ) Fellow in 2001 and as an International Academy for Quality (IAQ) Academician in 2006.