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1 a Closer Look at Lean: the Changes That Occur Within

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1 a Closer Look at Lean: the Changes That Occur Within A CLOSER LOOK AT LEAN: THE CHANGES THAT OCCUR WITHIN AN ORGANISATION STRIVING FOR OPERATIONAL EXCELLENCE Tyron Mansfield (301872) A research report submitted to the Faculty of Engineering and the Built Environment, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Science in Engineering. October 2013 1 Abstract A single case study of a major South African Maintenance, Repair and Overhaul facility was completed over a five week period from November 2012 to January 2013. The primary objective of the research was to track the changes that occur within an organisation which is striving for operational excellence in the context of lean production practices. A systems approach combined with the Baldridge Criteria for Performance Excellence was used to construct a theoretical framework for the study. Three main systems were identified within this theoretical framework, namely; social, technical and structural systems. Each of these systems encompassed individual change elements. Semi-structured interviews and participant observations were used as the principle means of gathering data. Changes were observed within each of the systems, particularly within the department in which lean had been formally implemented. The technical system was found to be the most influenced. This was evidenced by management of resources, particularly of workforce input toward continuous improvement initiatives, and also of equipment and tooling. The quality system was found to be influenced through a continuous assessment of procedures and processes to remove waste within them. The structural system was found to embody many of the lean principles, however low correlation was found between the lean initiative and the respondents’ existing knowledge. The social system was found to be the least influenced, and in some cases its state was found to completely contradict the norms which lean theoretical underpinnings would suggest. A possible reason for this was that that the organisation was in the early stages of lean implementation. The theoretical framework developed for the purpose of the study was considered to be applicable when analysing changes within organisations implementing lean. The framework could also be considered applicable in the analysis of other improvement initiatives. The framework’s structure allows for distinctions to be made between changes brought about by the initiative itself and consequential changes of normal organisational development. i Acknowledgements I would like to acknowledge my supervisor, Bernadette Sunjka for her unwavered support throughout this research. I would also like to thank all the respondents who committed their time to this research, without which it would not have been possible. Lastly, I would like to thank my family and friends who never gave up on me through my relentless journey. ii Declaration I declare that this research is my own unaided work. It is being submitted as due requirement to the University of the Witwatersrand, Johannesburg, in partial fulfilment for the degree of Master of Science in Engineering (Industrial) (50/50). ______________________ Tyron Mansfield This the _______ day of _____________ 2013 iii Contents Abstract ...................................................................................................................................... i Acknowledgements ................................................................................................................... ii Declaration ............................................................................................................................... iii List of Figures ........................................................................................................................ viii List of Tables ......................................................................................................................... viii List of Abbreviations ............................................................................................................... ix 1. Introduction ....................................................................................................................... 1 1.1. Background to the problem ....................................................................................... 2 1.1.1. South African Aerospace Industry Overview ................................................... 2 1.2. Motivation ................................................................................................................. 6 1.3. Problem Statement .................................................................................................... 6 1.4. Research Objectives .................................................................................................. 7 1.5. Research Methodology ............................................................................................. 7 1.6. Delimitations of the research .................................................................................... 8 1.7. Ethical Considerations .............................................................................................. 8 2. Literature Review ............................................................................................................ 11 2.1. Previous work related to the topic ........................................................................... 11 2.1.1. Global Aerospace and Lean ............................................................................ 11 2.1.2. Local Aerospace and Lean .............................................................................. 14 2.2. Summary of Lean Theory ....................................................................................... 15 2.2.1. Specify Value .................................................................................................. 15 2.2.2. Identify the Value Stream ............................................................................... 18 2.2.3. Flow ................................................................................................................ 19 2.2.4. Pull .................................................................................................................. 20 2.2.5. Perfection ........................................................................................................ 21 iv 2.3. Lean Thinking and Systems Thinking .................................................................... 24 2.4. Development of a Theoretical Framework ............................................................. 27 2.4.1. The Baldridge Criteria (NIST 2011) ............................................................... 28 2.4.2. The Shingo Prize for Operational Excellence ................................................. 30 2.4.3. Lean Enterprise Architecture (LEA) (Mathaisel 2005)................................... 33 2.4.4. Framework Selection ...................................................................................... 37 2.5. Structure of the Theoretical Framework ................................................................. 39 3. Informing the Theoretical Framework ............................................................................ 44 3.1. Technical System .................................................................................................... 47 3.1.1. Resource Management System ....................................................................... 47 3.1.2. Quality System ................................................................................................ 48 3.1.3. Measurement System ...................................................................................... 49 3.1.4. Financial System ............................................................................................. 50 3.2. Social System .......................................................................................................... 52 3.2.1. Knowledge management system ..................................................................... 52 3.2.2. Incentives and Appraisals ............................................................................... 53 3.2.3. Cultural System ............................................................................................... 54 3.2.4. Leadership System .......................................................................................... 56 3.3. Structural System .................................................................................................... 57 3.3.1. Internal Customer relations ............................................................................. 57 3.3.2. External customer relations ............................................................................. 59 3.3.3. Supplier relations ............................................................................................ 60 4. Research Methodology ................................................................................................... 62 4.1. Types of Analyses ................................................................................................... 62 4.2. Type selection ......................................................................................................... 63 4.3. Case study Selection ............................................................................................... 63 v 4.4. Types of evidence ..................................................................................................
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