Lean Management, Kaizen, Kata and Keiretsu: Best-Practice Examples and Industry Insights from Japanese Concepts

Acknowledgements
Contents
About the Authors
List of Acronyms and Abbreviations
List of Figures
List of Tables
1: Lean Management: Introduction
	1.1	 Definition of Kaizen (改善)
	1.2	 Lean Management Introduction
	1.3	 Historical Origins of Lean Management
		1.3.1	 Early Developments of Lean Management
		1.3.2	 Ford and Taylorism
		1.3.3	 Toyota Production System (トヨタ生産方式)
		1.3.4	 Lean Management in Today’s World
	1.4	 Lean Management Origins and Lean Thinking in Japan
		1.4.1	 Lean Thinking as Part of the Japanese Society
		1.4.2	 Impacts of Bushido on Lean Management
		1.4.3	 Ikigai (生き甲) as Part of the Lean Management Philosophy
		1.4.4	 Nemawashi (根回し) as an Essential Part of Decision-Making
	1.5	 Case Study: Lean Management in Porsche
	References
2: Kaizen (改善), Kaikaku (改革) and Innovation Management
	2.1	 Distinction Between Kaizen (改善) and Kaikaku (改革)
	2.2	 Definition of Kaizen (改善)
	2.3	 Kaizen Versus Innovation
	2.4	 Visualization Management
	2.5	 Case Study: Mercedes’ Lean Management System
	References
3: Kata (形) – Behavioural Transformation Towards Lean Management
	3.1	 Definition of Kata (形)
		3.1.1	 Improvement Kata
		3.1.2	 Coaching Kata
	3.2	 Lean Management Transformation as Part of Kata
		3.2.1	 Stories and Myths
		3.2.2	 Rituals and Routines
		3.2.3	 Symbols
		3.2.4	 Control Systems
		3.2.5	 Organizational Structures
		3.2.6	 Power Structures
		3.2.7	 Cultural Web to Change
	3.3	 Need for Cultural Change Towards Kaizen
	3.4	 Transformation and Adaptability of Strategies and Tools
	3.5	 Lean Transformation Strategies
	3.6	 Case Study: Volkswagen Production System (VPS)
	References
4: Keiretsu Networks (系列 ネットワーク)
	4.1	 Definition of Keiretsu Networks
	4.2	 Birth of Keiretsu Networks
	4.3	 Horizontal Keiretsu
	4.4	 Vertical Keiretsu
	4.5	 Roles of Keiretsu Networks
		4.5.1	 Seven Tasks of Keiretsu Networks
		4.5.2	 Organizing the Operational Activities
		4.5.3	 Risk-Distribution Function
		4.5.4	 Information Function
		4.5.5	 Internal Financial Market Functions
		4.5.6	 Strategic Group Coordination Function
	4.6	 Case Study: Toyota Keiretsu Structure
	References
5: Kyouiku (教育) – The Learning Enterprise
	5.1	 Transformation to a Learning Enterprise: Kyouiku (教育)
	5.2	 Learning Enterprise: Gakushyu Kigyiou (学習企業)
	5.3	 Creating a Logical and Open Mind: Chiiku (知育)
	5.4	 Leadership Development and Culture: Tokuiku(徳育)
	5.5	 Emotional and Physical Strength: Taiiku (体育)
	5.6	 Learning from Experience: Senpai (先輩) and Kōhai (後輩)
	5.7	 Case Study: Transformation to a Learning Organization in Google
		5.7.1	 Striving for a Competitive Advantage as Learning Organization
		5.7.2	 Focus on E-Commerce and Business Models
		5.7.3	 Learning and Education as Guaranteed Right in Google
	References
6: Policy Deployment and Hoshin Kanri Strategy (方針管理)
	6.1	 Policy Deployment – Hoshin Kanri (方針管理)
	6.2	 Definition of Strategic Management
		6.2.1	 Strategic Triangle
		6.2.2	 Strategic Analysis
		6.2.3	 Strategic Choice
		6.2.4	 Strategic Implementation
			6.2.4.1	 Assessment of Suitability, Acceptability and Feasibility
			6.2.4.2	 Suitability
			6.2.4.3	 Acceptability
			6.2.4.4	 Feasibility
	6.3	 Need for Change of Organizational Culture
	6.4	 Case Study: Toyota’s Policy Towards Lean Excellence
	References
7: Toyota Production System (トヨタ生産方式)
	7.1	 Toyota Production System (トヨタ生産方式) – Toyota Seisan Hoshiki
		7.1.1	 Introduction to the Toyota Production System (TPS)
		7.1.2	 Pull Principle
		7.1.3	 Zero-Defect Principle
		7.1.4	 Tact Principle
		7.1.5	 Flow Principle
	7.2	 Andon (アンドン)
	7.3	 Poka-yoke (ポカヨケ)
	7.4	 Gemba and Shopfloor (現場)
	7.5	 Shadow Boards
	7.6	 Health, Safety and Environment (HSE)
	7.7	 Overall Equipment Effectiveness (OEE)
	7.8	 Kanban (看板)
	7.9	 Supermarkets
	7.10	 Shisa Kanko (指差喚呼)
	7.11	 Case Study: Porsche Production System
	References
8: 5S Concept: Muda (無駄), Muri (無理) and Mura (斑)
	8.1	 Value-Adding Activities and Waste
	8.2	 Muda (無駄), Muri (無理) and Mura (斑)
	8.3	 Ishikawa Diagrams to Identify Waste
	8.4	 5S Concept
	8.5	 7 Types of Waste (TIMWOOD)
		8.5.1	 Inventory
		8.5.2	 Motion
		8.5.3	 Waiting
		8.5.4	 Overproduction
		8.5.5	 Overprocessing
		8.5.6	 Defects
	8.6	 Case Study: Tesla’s Transformation to Lean Management
		8.6.1	 Transformation Starts with Management and Employees
		8.6.2	 Using Smart Robots as Part of a Lean Layout
		8.6.3	 Hybrids of Robots and Human Labour in Final Assembly
		8.6.4	 Enabling Flow Through Conveyors
		8.6.5	 Concentration on Valued-Added Processes
		8.6.6	 Establishing U-Shaped Layout
	References
9: Change (Henkou Kanri 変更管理) as an Integral Part of Lean Management
	9.1	 Change Management (変更管理) in Japan
	9.2	 Definition of Change Management
	9.3	 External and Internal Reasons for Change
	9.4	 Nemawashi (根回し) as Feedback Trigger for Change
	9.5	 Change Management Phase Model of Kotter
	9.6	 Case Study: Change Management at Nissan
	References
10: Industry 4.0 and Artificial Intelligence (AI) in Lean Management
	10.1	 Industry 4.0 in Lean Management
	10.2	 Artificial Intelligence (AI) in Lean Management
		10.2.1	 Autonomous Robots
		10.2.2	 Smart Factory and Supply Chains
		10.2.3	 Lean Simulation
		10.2.4	 Systems Integration
		10.2.5	 Internet of Things (IoT)
		10.2.6	 Cyber Technology and Security
		10.2.7	 Cloud Computing
		10.2.8	 Additive Manufacturing and 3D-Printing
		10.2.9	 Augmented Reality
		10.2.10	 Big Data
	10.3	 Case Study: Google’s Self-Driving Cars
	References
11: Analytical and Operations Research Methods and Techniques in Lean Management
	11.1	 Digital Transformation Is Shaping Business Transformation
	11.2	 The Four Pillars of Analytics
	11.3	 Analytical Methods and Techniques in Lean Management
		11.3.1	 Data Mining
		11.3.2	 Logistic Regression
		11.3.3	 Conjoint Analysis
	11.4	 Operations Research Methods and Techniques in Lean Management
		11.4.1	 Simulation
		11.4.2	 Linear Optimization
		11.4.3	 Data Envelopment Analysis (DEA)
		11.4.4	 Analytic Hierarchy Process (AHP)
	11.5	 Case Study: Disney
	11.6	 Case Study: General Motors
	References
12: Lean Management in Aviation
	12.1	 The “Lean Thinking” Concept
	12.2	 Lean Approach to Enterprise Risk Management in Aviation Industry
		12.2.1	 Integration of LM with ERM
		12.2.2	 Risk Management-Based Lean Concept
		12.2.3	 Everyone Has Responsibility to Leanness as Risk Manager
		12.2.4	 Lean Thinking in Risk Management
	12.3	 Lean-Based Risk Management Philosophy Is Vital in VUCA Conditions
	12.4	 Lean Learning, Training and Education: Twenty-First-Century Skills-Based Approach in Aviation
	12.5	 Lean Operations in Airline and Airport Practices and Implementation
	12.6	 Lean Maintenance, Repair, Overhaul (MRO)
	12.7	 Lean Supply Chain in Aviation
		12.7.1	 Introduction to Lean Supply Chain in Aviation
		12.7.2	 Lean Services with On-Time Performance in Aviation
	12.8	 Lean Management at Airports and Ground Handling
		12.8.1	 Lean Airports
		12.8.2	 Lean Aircraft Ground Handling Process
		12.8.3	 Lean Airlines
		12.8.4	 Waste Areas in the Aviation Industry and Services
		12.8.5	 Manufacturing Process in Aviation Industry: Lean Practices in Aircraft Flight Tests
		12.8.6	 Lean Manufacturing in Aviation: Aircraft Manufacturing and Spare Parts Manufacturing
		12.8.7	 Lean Management in Cabin and Catering Services in Air Freight
		12.8.8	 Lean Management at Airports and Ground Handling
	12.9	 Case Studies: Lean Management in Aviation
		12.9.1	 Lean Airbus
		12.9.2	 Lean Lufthansa Group
		12.9.3	 Lean British Airways
		12.9.4	 Lean Lufthansa Technik Group Philippines
		12.9.5	 Lean Southwest Airlines
		12.9.6	 Lean Iceland Air
		12.9.7	 Lean FedEx
	References
13: Lean Management in the Automotive Industry
	13.1	 Introduction to the Automotive Industry
	13.2	 Toyota as the Leader for Lean Management in the Automotive Industry
	13.3	 COVID-19 Harming the Automotive Industry
	13.4	 Application of Lean Tools in the Automotive Industry
	13.5	 Transformation and Disruption in the Automotive Industry
	13.6	 Trends in the Automotive Industry
		13.6.1	 Digitization
		13.6.2	 Change of Customer Behaviour: Multiple Usage of Vehicles
		13.6.3	 Revenue Expansion
		13.6.4	 Rise of Electric Vehicles (EV)
	13.7	 Case Study: Japanese Car Makers Form New United Front for Change
	References
14: Lean Management in the Construction Industry
	14.1	 Introduction to Lean Construction
	14.2	 Lean Management to Improve Planning and Execution
	14.3	 Prerequisites of Lean Management in Construction
	14.4	 Lean Management Examples from Japan or the USA
	14.5	 Case Study: Building Information Modelling (BIM)
	References
15: Lean Management in the Railway Industry
	15.1	 Overview of the Global Railway Industry
	15.2	 Synchromodality of Global Supply and Value Chain Networks
	15.3	 Lean Management Techniques in Railway Industry for SME
	15.4	 Lean Production (LP) Principles in Railway Industry Flow
	15.5	 Digitization of Railway Companies
	15.6	 Case Study: Bombardier Transportation (Alstom) in China
	References
16: Lean Management in Healthcare and Hospitals
	16.1	 Lean Management in Healthcare Sector
	16.2	 Waste in the Healthcare Sector
		16.2.1	 Applying the TIMWOOD Model in Healthcare
		16.2.2	 Transport in Healthcare
		16.2.3	 Inventory in Healthcare
		16.2.4	 Motion in Healthcare
		16.2.5	 Waiting in Healthcare
		16.2.6	 Overutilization in Healthcare
		16.2.7	 Overmedication in Healthcare
		16.2.8	 Defects in Healthcare
	16.3	 Lean Hospitals: Outlook in Lean Management in Healthcare
	16.4	 Case Study: Virtual Hospital
		16.4.1	 Combination of Digital and Lean Tools
		16.4.2	 Electronic Health Record
		16.4.3	 Real-Time Medical Data Gathering
	References
17: Lean Management in Higher Education (LHE)
	17.1	 Lean Management in Universities and Schools
	17.2	 Lean Higher Education (LHE)
	17.3	 Continuous Improvements and Respect for People
	17.4	 Introducing Lean Management in Laboratories
	17.5	 Case Study: University of Oklahoma Becoming a Lean University
	References
18: Lean Management in Project Management
	18.1	 Project Management Strategies
	18.2	 Project Management Criteria
		18.2.1	 Success Criteria in Lean Project Management
		18.2.2	 Integration Management
		18.2.3	 Performance Management
		18.2.4	 Time Management
		18.2.5	 Cost and Finance Management
		18.2.6	 Quality Management
		18.2.7	 People Management
		18.2.8	 Communication Management
		18.2.9	 Risk Prevention Management
		18.2.10	 Procurement Management
	18.3	 Recommendations for Executing Successful Lean Projects
	18.4	 Case Study: CRRC Project Management in the USA
	References
19: Lean Management Tools
	19.1	 Creativity Lean Management Tools
		19.1.1	 Pecha Kucha (ぺちゃくちゃ)
		19.1.2	 Action Learning Sets (ALS)
		19.1.3	 Design Thinking
		19.1.4	 RPR Method
		19.1.5	 Brain Storming
		19.1.6	 Mind Mapping
	19.2	 Problem-Solving Tools
		19.2.1	 A3: Problem-Solving Tool
		19.2.2	 8D Process
		19.2.3	 Kepner Tregoe
		19.2.4	 TRIZ
		19.2.5	 PDCA Cycle
		19.2.6	 Six Sigma
		19.2.7	 Value Stream Mapping (VSM)
	19.3	 Seven Quality Management Tools (Q7)
		19.3.1	 Error Correction List
		19.3.2	 Histogram
		19.3.3	 Pareto Analysis
		19.3.4	 Correlation Diagram
		19.3.5	 Quality Control Cards (QCC)
		19.3.6	 Fishbone Diagram
		19.3.7	 5-Why Method
	References
20: Lean Management Outlook 2030
	20.1	 Continuation of Lean Management
	20.2	 VUCA as Driver for Change
	20.3	 Trends in Lean Management
	20.4	 Algorithms and Virtual Maintenance
	20.5	 Collaborative Robots (Cobots) as Supplementary Partners in Production
	20.6	 Creation of Industry-Wide Standards for Networked Machines
	20.7	 Digital Quality Systems and Poka Yoke
	20.8	 Transparency, Flexibility and Agility
	20.9	 Digitalized Human Resources Management and Automatized Training
	20.10	 Flexible Sensors and Self-Learning Software
	20.11	 Synchronization of Value Chain Networks Through Smart ERP Systems
	References
Glossary of Lean Management Terms