Mr. Lean Buys and Transforms a Manufacturing Company ─ The True Story of Profitably Growing an Organization With Lean Principles

This is the true story of how, armed with only Lean improvement methodologies, a specially trained Toyota Lean expert purchased a business he knew nothing about, applied Lean techniques, and succeeded in doubling sales and increasing profitability, before he finally sold the thriving business.
With humility and humor, the author recounts his successes and failures, introduces his key employees and their struggles with change, and provides motivation and simple ideas for all readers looking to improve their businesses. He captures key points highlighted in text boxes and includes illustrative photos and examples of Lean tools at work.
This story dispels the fallacy that Lean management does not achieve excellent results in high variation companies and job shops. Toyota’s OSKKK methodology is introduced to understand processes and guide a Lean transformation on the shop floor and in the office.

Greg Lane was trained as a Toyota Production System (TPS) Key Person and has turned his training into a career of consulting supporting companies on in their successful Lean journeys. He is a faculty member of the Lean Enterprise Institute in the US and an advisor to the Instituto Lean Management in Spain.

Prologue: The PurchaseChapter 1 The Beginning: Observation and Documentation1.1 Introduction1.2 Observing1.3 Getting a Detailed Understanding of the Processes I Would Be Responsible For1.4 A Lack of Training Can Be Costly1.5 Training as a Machine Operator1.6 Discovering a Lack of Documentation1.7 Identifying Skill Sets That Needed to Be Replaced1.8 Workplace Organization (5S) Opportunities1.9 Discovering Different Methods Being Utilized for the Same Task (No Standardization)1.10 Discovering Difficult Processes to Standardize1.11 This Much Observation Required Me to "Divide and Conquer"1.12 SummaryChapter 2 Standardizing the Estimating Process2.1 Hiring a New Programmer/Estimator2.2 Writing the First Draft of Standardized Steps for Programming and Estimating2.3 Considering the Complications with Quoting2.4 Minimize Training and Start-Up Time by Utilizing Similar Equipment2.5 Continuing to Determine Where Skill Sets Would Be Lost2.6 Meeting the Customers2.7 Starting Some Measurements2.8 Visualizing the Measurement2.9 Plan, Do, Check, Act (PDCA)2.10 SummaryChapter 3 Learning the Office Processes 3.1 Introduction3.2 Inputting Orders3.3 Problems Working without a PDCA Cycle in the Estimating Process3.4 Re-pricing Discussions Are Easier if Based on Accurate Data3.5 Learning to Purchase3.6 Scheduling the Shop Based on Tribal Knowledge3.7 Job-Shop Planning3.8 Simplified Short-Term Planning3.9 A More Comprehensive Work Order Package3.10 Poor Work Order Packages Can Increase SetupTime3.11 Closing the Books3.12 Collecting the Money3.13 SummaryChapter 4 The First Days Alone4.1 Introduction4.2 My First Pricing Decision Alone4.3 Creating Extra Capacity with 5S4.4 Establishing Normal versus Abnormal4.5 Problem Solving versus Firefighting4.6 Identifying the Need for Shop-Floor Visuals4.7 Converting Small Productivity Improvements into Profit4.8 Challenging the Reported Profit Margins 4.9 SummaryChapter 5 Creating and Selling Capacity 5.1 Only Thinking in Terms of Full Absorption Costing5.2 Overtime as a Positive5.3 Setup-Time Reductions5.4 Continuously Measuring Setup Times5.5 Creating a Team Leader5.6 Increased Productivity through Visual Management5.7 PDCA of the Estimating Process5.8 Becoming the Estimator5.9 SummaryChapter 6 Getting Everyone Motivated for Improving the Machine’s Output6.1 Introduction6.2 Managing Each Job Visually6.3 The Desire for Independence from Day-to-Day Operations6.4 Preparing for Further Setup Reductions6.5 Continuing the Kaizen of Equipment by Improving the Adjustment Phase of Changeovers6.6 Running a Machine while Confirming the Quality of the First Piece6.7 Difficulties in Creating a Profit-Sharing Plan6.8 Staying Hands-On since "the Devil Is in the Details"6.9 Cost Justifying a Team Leader6.10 Closing the Books Becomes Anticlimactical6.11 SummaryChapter 7 Seeing the Administrative Processes from a New Angle7.1 Introduction7.2 Visualization Confronts Obtaining Information Either from Computers or in Meetings7.3 Not Allowing Excuses for a Late Start7.4 Small Businesses Look at the Recruiting ProcessDifferently7.5 Focusing to Improve the Office Processes7.6 Purchasing Is a Critical Administrative Function to Look toward Improving7.7 Unsuccessful at Significantly Reducing the Time Necessary for Quotations7.8 5S for Shared Computer Drives and Files7.9 Outside Quality Accreditation7.10 SummaryChapter 8 Moving the Business8.1 Industrywide Downturn8.2 Background for Moving the Business at This Point in Time8.3 Creating a New Layout from a Blank Canvas8.4 A Nondisruptive Move8.5 Simulating the New Layout8.6 Introducing Procedural Changes during the Move8.7 Using a Major Event to Introduce Change in the Office 8.8 SummaryChapter 9 Accurate Pricing through Better Cost Allocations9.1 Introduction9.2 Determining More Accurate Allocations duringTough Times9.3 Using My "Modified Activity-Based Costing"9.4 Starting Simplified Activity-Based Costing in the Shop Using a Matrix9.5 How to Relate the Matrix to Cost9.6 A Simple Activity-Based Costing Matrix for the Office9.7 Relating the Matrices to Hourly Costs9.8 How Others Often Allocate Costs9.9 Keeping the Team Leader Focused during the Slow Times9.10 Increasing Process Capabilities to Reduce Outsourcing9.11 Standardizing the Business Processes Allows Time for Pursuing Other Opportunities9.12 SummaryChapter 10 Up-Front Delays10.1 The Measurements Confirm Success10.2 Continuously Developing Protocols Allows More Autonomy from Day-to-Day Operations10.3 Planning Only Based on Available Materials Is Costly10.4 Capacity Planning Based on Lead Times10.5 Identifying Areas Where We Were Only Being Reactive10.6 Available Time Utilized to Document Processes10.7 Lead Time Reduced through "Strategic" Inventory10.8 Prioritizing Problems during Busy Periods10.9 The Lack of Hands-On Experience Is Very Costly10.10 My Personal Experience of Generating Costly Designs10.11 SummaryChapter 11 Making Money during the Good Times 11.1 Introduction11.2 Improving Processes during Slow Periods Pays Off11.3 Problem-Solving Skills Developed during the Slow Periods Begin to Pay Off11.4 The Leader Keeps in Practice11.5 Diversification Would Have Been Helpful11.6 The Need for a Second Shift11.7 The Entrepreneurial Spirit Pays Further Dividends during the Busy Times11.8 Structured Problem Solving Minimizes Opinions11.9 Problem Solving Requires Looking into the Process Details Using a Structure11.10 Equality in Enforcing Your Own Policies Is Critical11.11 SummaryChapter 12 Expanding into New Products 12.1 Introduction12.2 The Logic behind Expanding into Sheet Metal Fabrications12.3 Previous Expansion Considerations Resulted in Little Impact to the Current Layout12.4 Filling the First Order12.5 Investing Step by Step12.6 OSKKK Takes to Life within Our New Processes12.7 Once Again, a PDCA Cycle in the Quoting Process Proves Critical12.8 Again, Engineers’ Lack of Hands-on Experience Is Costly12.9 SummaryChapter 13 Business for Sale13.1 Introduction13.2 Determining the Process Steps for Selling a Business13.3 Determining an Asking Price13.4 A Marketing Package13.5 Advertising13.6 The First Nibbles13.7 Considerations of Owner Financing13.8 Lowering the Price13.9 Three Serious Buyers13.10 Evaluating Offers13.11 Offer Accepted13.12 Drawing to an End13.13 SummaryChapter 14 Reflections14.1 Introduction 14.2 Lessons Learned 14.3 Using the Correct Measurements Is Critical to Achieving Results14.4 Cross-Training Is a Critical Part of Success in High-Variation Companies14.5 Team Leaders Increase Profit through Higher OEE 14.6 Managing Parts Differently14.7 Activity-Based Costing Proves Helpful in Securing More Orders14.8 A Process to Examine Your BusinessAppendix A OSKKK Methodology Appendix B Documentation Techniques Appendix C My First Attempt at Standardizing the Quoting Process Appendix D Example of the First Day-by-Hour Board for the Bottleneck Machine Appendix E Real-time Pareto ChartAppendix F Overall Equipment Effectiveness (OEE) for Bottlenecks Appendix G Typical Team Leader ResponsibilitiesAppendix H Cross-training or Skills MatrixAppendix I New Layout with Some CNCs Set Up as an "L" CellAppendix J Initial ABC Costing Matrix for Shop and Office Appendix K Initial Equipment and Area Layout for Expansion into Sheet Metal Appendix L Sequence Utilized for Learning the Business and for Implementing LeanAppendix M Different Applications of Value Stream Mapping and Process Mapping IndexAbout the Author