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Hoshin Kanri – Shared mission and Vision

Lean thinking – Lean system thinking

Voice of the network – Stakeholder analyse

Lean innovation – Digitize value flows

Business process optimization

Procedures (SOP) automated

Start with why?

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Lean management

Community

Lean Kaizen, Kaikaku en Kakushin

Failure Mode Effect Analysis

House of Value

Do need a Blockchain?

Reduce the Bullwhip Effect

5 Times Why? The lean consultant

Just-in-Time

Evolution of accounting

Blockchain: lean principles and tools

Theory of constraints

Theory of constraints

Lean system thinking

Quality management

Quality management

Ishikawa – a lean conversation starter

Medium of exchange

Built in quality

Built in quality is more often part of a product, process and system design.

Product design
An example of a product design is your phones’ SIM card. By cutting a corner of the card it becomes clear how to plug in the card in the mobile phone.

Process design
The google search function is a form of error prevented process design. Based on smart data analysis applications, Google knows what you will be looking for.

System design
Blockchain processes are designed as a single source of truth. There is consensus, alignment and incentives for all stakeholders in the network. With smart contracts and the use of real-time information it is possible to automatically control and improve a desired result. In traditional processes verification and control takes place afterwards, as part of the settlement.

Founders of value flow

Taiichi Ohno lived in the industrial era and is considered to be the founder of the Toyota Production System. He devised the seven wastes (muda) as part of his system thinking. These wastes are:

  1. Delay, waiting
  2. Over production
  3. Over processing
  4. Unnecessary transport (of goods, products)
  5. Unnecessary motion (employees)
  6. Inventory
  7. Defects

Satoshi Nakamoto is the pseudonym of an unknown person or group who designed the cryptocurrency bitcoin and founded the first blockchain database. With this invention Nakamoto was the first to solve the double-spending problem on the internet.

Now, anything of value can be digitized and exchanged on the internet without the need for a trusted third party. Peer-to-peer transactions make processes not only leaner (disintermediair), but also let us rethink what constitutes value for people and planet. The CEO of IBM expressed the possibilities of blockchain as follows: “what the internet did for information will enable blockchain for value streams”.

Lean is a management philosophy aimed at structuring the organization and processes in such a way that optimal value is created for the customer. Thanks to Taiichi, we have learned a method for extracting waste from processes. Satoshi gave us a powerful toolbox for a digital age.

Lean principles digitized

Blockchain goes beyond the elimination of waste. Let’s talk about the lean principles from a Blockchain approach.

  1. Define network value

In traditional supply chains companies pursue their own values ​​and goals. Blockchain is a coordination, cooperation and communication toolkit that aligns value created by the network. It brings clarity to the purpose of the whole chain and brings standardization of value adding activities of the end-to-end processes.

  1. Value stream and flow

Oracles or digital twins are used to determine the input data quality. They play the most important role, because if you can’t trust the input quality, the whole setup is worthless.

The value becomes digitized (digital twin) and stored in a immutable token. Thereby a token is a representation of network value.

  1. Pull system

The token can be transferred peer-to-peer (from wallet to wallet). There is no need for a third party as everyone has access to a copy of the current status.

  1. Perfection

Lean stands for understanding what is important to the customer. With Blockchain there is no one customer. Every stakeholder benefits from bringing improvements to the input quality, the throughput and the end result. It’s a system of lean collaboration with shared interest and goals.

lean house

What are the 5 key elements that blockchain adds to the lean house?

1. Alignment of Purpose
Processes are a derivative of an organizational strategy and determine the common goals and shared values. It gives “purpose” to the organization and enables alignment with people and processes. BC enables this for business collaborations.

2. Build in trust
BC has solved the double spending problem on the internet. Processes can be redesigned without the need of a (non value adding) trusted third party in the middle.

3. Value Stream
How do you get flow in processes if the value flow is continuously interrupted by an intermediary? BC allows value to pass from hand to hand. Transparency and visual management provides insight and control by design for all participants.

4. Quality and time
Blockchain shares information from the source/expert/oracle. This method not only saves a lot of time (just-in-time) and costs (first-time-right), but also ensures that the input quality comes from the expert.

5. Culture
What if we could design an infrastructure that contributes to the 17 Sustainable Development Goals? We now have the tools (BC, IoT, AI) and knowledge (lean thinking).