Lean has a longer and more color ful history than most of us think, with
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- Speed and agility
The elements that make Lean a
powerful competitive tool have been used throughout history A Lean fighting machine So how are some companies able to continuously improve and gain com- petitive advantage? Two essential factors are speed and agility. To illustrate how they function, we’ll take a look at some important battles — both military battles and business battles. Speed and agility Speed is essential because when decisions happen quickly, response time goes down and improvements can be continuous. In Lean, Kaizen events are great for focusing on a single area, but Toyota now rarely does traditional Kaizen events because their continu- ous improvement makes long Kaizen events unnecessary. As an example of how speed and continuous improvement translate into increased market share, let’s take a look SEPTEMBER 2012 ▲
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A LEAn fIGhTInG MAchInE at what became known as the H-Y wars in the 1980s. During this particular business battle, Honda gained significant market share over Yamaha by releasing 113 new models of motorcycles within a couple of years, compared to Yamaha’s 30. Honda had discovered how to release a new model, gather customer feedback, improve the motorcycle, and release another model much faster than Yamaha did. As a result, Honda gained competitive advantage through speed. We’ll define agility as the abil- ity to quickly change from one option to another based on current needs. A simple example is putting production equipment on wheels so that if you find a way to improve flow, you can quickly move equipment into a new position. Interestingly, you can read about both of these concepts in Sun Tzu’s book The Art of War, which was written 2,500 years ago. How did the Mongols defeat the Roman army? Speed and agility. Shortly after writing his book In Search of Excellence, Tom Peters wrote Thriving on Chaos, which was based on the theory that if you want to gain com- petitive advantage, you create chaos in the minds of your competitor through speed and agility. Speed and agility altered the course of history during World War II. The Battle of Dunkirk was one of the most significant losses the English army ever experienced. In May of 1940, the Germans launched an attack on the Netherlands and Belgium, and the English and French, who greatly outnumbered the Germans, expected to fight the same kind of war they had fought in World War I. The historical precedent for the kind of trench war- fare used in WWI was set during the American civil war, the Napoleonic wars, and others. Unbeknownst to the English, the Germans had changed strategy and were carrying out a blitzkrieg, or light- ning war. In only 10 days, the Germans had completely surrounded the English and French, in spite of having old tanks and outdated equipment. They used the concepts of speed and agility to defeat armies that outnumbered them and had much better technology. They had a clear strategy, and pushed decision- making down to the front line teams of tank commanders. When you look at your company’s performance, do you see evidence of speed and agility, or have there been missed opportunities because your operations were slow to respond to changing demands?
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