Friday, February 28, 2014

Ryanair - Cost Leadership


Cost leadership is a strategy in which a company lays more emphasis on process innovations leading to cost reduction. The company will not spend resources to come out with new products with new features but wait and watch in the market to evaluate the features which are demanded by a large section of the market based on the new product introductions by various innovative companies and then acquire the rights to incorporate those in features in its products. Its process capabilities allow it to produce the market accepted features at lower costs than competitors and thereby allow it to sell at lower prices and acquire good market share.

In the airline industry Ryanair is a successful cost leader.

Case: Successful Cost Leadership of Ryanair
http://www.sbaer.uca.edu/research/allied/2005vegas/case/05.pdf

Ryanair
http://www.leadershipreview.org/2011spring/article5_spring_2011.asp


Tuesday, February 25, 2014

Principles of Material Organization



To organize a business is to provide it with everything useful to its functioning: raw materials, tools, capital, personnel. All this may be categorized into two main groups: the material organization and the human organization. The body corporate would be capable of fulfilling the six essential functions only when these resources are provided to it.  Fayol mentioned that only human organization is dealt with in his paper. It is because he presented only a discussion paper highlighting what can be taught in management course or subject.

The latter day management scholars must have developed on the material organization development in their voluminous books. But they also neglected the essential portion of the organization.


Proposed Principles


Technology selection must take into consideration the financial resources the firm can raise and the skilled manpower availability and training ability of the management. apart from the technical feasibility and profitability of the technology.


Science is to be developed for each element of a man-machine work (Principle of Scientific Management - F.W. Taylor).

The location must have technical feasibility, public and regulatory acceptance and profitable.

Adequate land must be available for current use and future expansion.


The buildings for production facilities as well as residential facilities must be designed according existing codes to house all the production and support facilities required by the technology selected.

Equipment selection has to consider effectiveness and efficiency.

Layout of the facilities must ensure effectiveness and efficiency of the enterprise.



A new idea in management "enterprise architecting" is pursuing this area of material organization and people organization


Updated 25 Feb 2014
Last updated 19 October 2013

Related Reading

Technology Selection


A METHODOLOGY FOR THE SELECTION OF NEW TECHNOLOGIES IN THE AVIATION INDUSTRY
By Oliver Houseman, Ashutosh Tiwari and Rajkumar Roy
November 2004
https://dspace.lib.cranfield.ac.uk/bitstream/1826/772/1/a%20methodology%20for%20the%20selection%20of%20new%20technologies%20in%20the%20aviation%20industry.pdf

Monday, February 24, 2014

24 February Knowledge History - Science, Engineering and Management


Management Knowledge Revision

Globalization and Technology - Impact on OB

Diversity and Ethics Issues


Birth



Born 24 Feb 1663;  Thomas Newcomen died 5 Aug 1729
English engineer and inventor of the the world's first successful atmospheric steam engine.

24 Feb 1709; Jacques de Vaucanson died 21 Nov 1782 at age 73.
French inventor of automata - robot devices of later significance for modern industry.
He also invented many machine tools.

24 Feb 1804;  Heinrich Friedrich Emil Lenz died 10 Feb 1865
Heinrich Friedrich Emil Lenz was a Russian physicist who devised Lenz's Law to describe the direction of flow of electric current generated by a wire moving through a magnetic field.

24 Feb 1955;  Steve Paul Jobs died 5 Oct 2011 at age 56.

Science, Engineering and Management Knowledge History of the Day - Index for the Year

Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

Sunday, February 23, 2014

Leading the Lean Enterprise Transformation, Second Edition - George Koenigsaecker - Book Information


Leading the Lean Enterprise Transformation, Second Edition
George Koenigsaecker
CRC Press, 26-Sep-2012 - Business & Economics - 264 pages


George Koenigsaecker is President of Jacobs Vehicle Equipment Company. He led the lean conversion there. From 1992 to 1999, he led the lean conversion of the Hon Company, a $1.5 billion office furniture company.

His book explains his experience and suggestion for leading lean tranformations.

Updated with new information, illustrations, and leadership tools, Leading the Lean Enterprise Transformation, Second Edition describes how the metrics used by Toyota drive every line item in a financial statement in the right direction. Rather than focus on Lean tools and principles, the new edition of this bestselling reference focuses on what may be the least understood and most critical aspect of a Lean transformation: the building of a Lean culture. In addition to new appendices with background information and insightful stories on Lean leadership and implementation, it includes new information on tactical organization practices, strategy deployment, and Lean culture.

An inductee to IndustryWeek's Hall of Fame, George Koenigsaecker illustrates successful strategies and valuable lessons learned with case histories of U.S. leaders who have been instrumental in bringing Lean to the forefront. He explains the use of value stream analysis at the leadership level and describes how to structure kaizen events that can improve the value stream. Organized in the chronological sequence that a leader embarking on a Lean journey would experience, the book discusses the methods used by the author during the Hon Company’s successful Lean conversion, which doubled productivity, tripled revenues, and led IndustryWeek to recognize Hon as one of the "World’s 100 Best Managed Firms."

The book not only introduces powerful leadership tools—including strategy deployment, transformation value stream analysis, and transformation plan of care—but also arms potential change agents with the soft skills needed to define, develop, and communicate their vision. Detailing the steps required to sustain improvements, it supplies time-tested guidance for effective leadership throughout a Lean transformation in any organization.
http://books.google.co.in/books?id=aG-Rcjaeh88C



Table of Contents

Preface to Second Edition
Acknowledgments
Introduction
The Author

Chapter 1 : My Journey of Lean Learning : Eleven Corporate Transformations
Chapter 2 : What Is Lean?
Chapter 3 : Measurement Can Be Easy
Chapter 4 : Value Stream Analysis Provides the Improvement Plan - And Kaizen Events Make It Happen
Chapter 5 : Tactical Organizational Practices
Chapter 6 : Strategic Organizational Practices
Chapter 7 : Building a Lean Culture

Appendix A : A Lean Tutorial
Appendix B : Building a Sustainable Lean Culture : The Watlow Way
Appendix C : Watlow’s Enterprise Visual Management System : Mission Control
Appendix D : The Origin of Simpler’s Transformation ContinuumSM
Appendix E : Red River Army Depot : Accelerating Lean through Leadership Immersion
Appendix F : A New Product Design System That Uses Lean Principles
Appendix G : Autoliv : Empowered to Solve Problems
Index

The American Innovator - Interesting Website, Blog Posts and Interviews by Paul Akers

I came across the site as I am developing my materials on lean transformation cases based on Lean Thinking by Womack and Jones. I have to conduct a training program on Lean with the title Becoming Lean Enterprise: Theory and Case Studies. Also I made presentation on the topic Lean Management recently. I need to develop further on the presentation.

http://theamericaninnovator.com/


Blog Posts
http://theamericaninnovator.com/blog


Videos on Lean
http://theamericaninnovator.com/lean-videos


I shall select and post some important videos in this post later. I posted one video in Lantech Case Study - 2004 Onwards. Lantech lean transformation was covered by Jim Womack and Dan Jones in the book Lean Thinking.