LEAN DYNAMICS

Lean dynamics is a system of management based on a set of principles and practices proven to create strong, steady, tangible value for today’s manufacturers, airlines, retailers and others across today’s broad range of uncertain and changing conditions.

The concept is based on lean manufacturing, a term coined in the early 1990s to describe Toyota’s now-famous production system. Whereas lean manufacturing or lean six sigma activities typically focus on seeking out and removing “waste”, lean dynamics focuses on first understanding the dynamic conditions that drove these wastes to accumulate in the first place. By uncovering and correcting the disconnects, or “lag”, that amplify the disruption that change and uncertainty create, corporations across a range of industries can make rapid, tangible gains–-eliminating waste and creating the means to turn out new forms of value.

Lean dynamics is transformational; its principles and techniques let companies adapt to shifts in their environment to sustain effective operations, decision-making, information, and innovation. But unlike many other business improvement approaches, lean dynamics is measurable—offering a clear means for firms of all types to create dynamic strategies, and to track their progress toward achieving sustainable excellence.

The foundation for this concept was described in a research paper, and subsequently a book, titled Breaking the Cost Barrier by Stephen A. Ruffa and Michael J. Perozziello, detailing their findings from an unprecedented study of aerospace manufacturing conducted for the Joint Strike Fighter Program. This study of seventeen major producers showed how cost reduction techniques—from lean manufacturing to Six Sigma—can be structured in a way to break the trend of spiraling costs for developing and producing tactical aircraft. Their results were widely acknowledged, receiving the Shingo Prize for Excellence in Manufacturing Research, and later described as as one of “…the most prominent approaches to transforming and improving military enterprise performance.”*

The concept of lean dynamics was formally introduced by Stephen A. Ruffa in his book, Going Lean: How the Best Companies Apply Lean Manufacturing Principles to Shatter Uncertainty, Drive Innovation, and Maximize Profits (AMACOM, 2008), which describes its application as demonstrated by corporations that continued to thrive during the crises and disasters throughout this decade—from September 11th and hurricane Katrina, to the unprecedented spike in energy prices. It shows how tools like lean manufacturing, Six Sigma, Theory of Constraints, and others can together support an overarching lean dynamics strategy for creating sustained excellence—enabling firms to transform today’s turmoil into opportunities for advancing their competitive edge. His latest book, The Going Lean Fieldbook: A Practical Guide for Lean Transformation and Sustainable Success (AMACOM, 2010), builds on this by providing a logical structure and practical advice for applying lean principles throughout the organization.

* From the book, Sustaining the Military Enterprise: An Architecture for a Lean Transformation, by Dennis F. X. Mathaisel, p. 113 (Auerbach, 2007)