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Risk management process
AS/NZS ISO 31000 | Lean implementation
Application |
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| Set context | Lean systems reduce waste activities and increase value to customers, thereby increasing productivity and profitability. Internal context of resources and staff culture and sustaining the change. External context of market conditions. |
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| Perform risk assessment by: (see (1)–(3)) | |
| (1) identification of sources, areas, impacts, and events, | Lean methods have risk associated with their use, benefits, and detriments impacting various areas. |
| (2a) analysis to understand the risk its causes, sources, (see (2b)) and other pertinent factors, | Qualitative discussion of detriments or risks of sustainability of lean method (source) or entire lean implementation in context of the tools and consequences of tool use. |
| (2b) consequences and likelihoods, confidence sensitivity, and other pertinent factors, | Expert opinion (qualitative) is incorporated as charts. The chart shows our qualitative assessment of likelihood and consequence for various tools; refer to Figure 5. |
| (3) evaluation for assisting the decision making process including risk tolerance of parties. | In the context of organisational change we look for methods that will support sustainability. There is a decision from management (a mandate) to support lean to meet business goals but wisdom is required in the lean implementation for building a culture for sustainability. This involves selecting the right methods at the right time. It is necessary to get “wins” in the view of the staff up front. This is not necessarily the biggest wins but small wins to gain momentum and staff confidence. We cannot tolerate high risk even when high return is possible at the start of an implementation that is, where staff are not yet engaged to support a difficult method (like JIT). Failure could ruin future chances of success and engagement.
Communication at the start of an implementation, is key to impart the vision and break down goals to give critical steps for change. |
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Prescribe treatment of risk
To maximise benefits and minimise detriments, increase the positive and decrease the negative likelihood and consequences. | Treatments we prescribe in general cover the following:
adequate communication with development of new identity for staff; prioritisation of time for business running and improvement activity; and prior conditions met adequately (including previous methods, training of and engagement of staff) for any methods implemented. |
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