# Lean Leadership in Production Ramp-Up

Uwe Dombrowski, Jonas Wullbrandt

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Uwe Dombrowski, Jonas Wullbrandt. Lean Leadership in Production Ramp-Up. IFIP International Conference on Advances in Production Management Systems (APMS), Sep 2019, Austin, TX, United States. pp.54-61, 10.1007/978-3-030-30000-5_7. hal-02419211

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# Lean Leadership in production ramp-up

Uwe Dombrowski¹, Jonas Wullbrandt¹*

¹ Institute for Advanced Industrial Management (IFU)
Technische Universität Braunschweig, Langer Kamp 19, 38106 Braunschweig, Germany

*Corresponding author. Tel: +49 531 391 2704, E-mail: j.wullbrandt@tu-bs.de

**Abstract.** Today's production systems are complex sociotechnical systems. Especially during the production system ramp-up phase, which is of particular importance in terms of ensuring a timely, qualitatively and cost efficient market entry, both technical challenges, as well as the integration of human employees with their diverse abilities, wants, and needs, must be considered. Due to a growing number of product variants, shorter lead times, and global supply chains, planning and launching production systems can be seen as a competitive advantage. Consequently, managing the period of production system ramp-up, which is characterized by high production demand but low production control, becomes increasingly important. To handle the increasing complexity and uncertainty in this special phase, human decision makers must be adequately supported by an appropriate leadership style. In this paper, the Lean Leadership approach will be identified to best meet the special requirements of the socio-technical production system ramp-up phase. The results of a mixed-methods data collection, which has been conducted in commercial vehicle industry, help to better manage complex product launches in the future.

**Keywords:** Production system, Ramp-up, Leadership

## 1 Introduction

In times of rising customer requirements and increasing globalization, products as well as the associated production systems need to be adjusted or redesigned in increasingly shorter time periods. This is necessary in order to ensure the timely market rollout of the new products. Consequently, the cost-efficient, high-quality and timely management of production system ramp-ups becomes a competitive advantage for organizations in the future. A production system can be described as a complex socio-technical system in which human, organizational as well as technical aspects need to be coordinated in order to create value. [1] A production system ramp-up, in turn, can be seen as the phase in which the complex socio-technical system needs to be transferred from an uncertain and instable state into a stable series production state. [2][3]

Taking into consideration that each production ramp-up phase is unique, has a defined beginning as well as a defined end point and is measured by its degree of fulfillment of certain objectives, such as quality, time or costs, it can be regarded as a project. The
following definition in the DIN 69900-5:2009 says that a project is an “initiative that is characterized by the uniqueness of its conditions as a whole”[4]. Given that a production ramp-up can be described as a project, ramp-up management, in turn, can be compared with project management. Regarding DIN norm 69901-5:2009 project management is defined as “all leadership tasks, -organization, -techniques, and -means that are necessary for the initiation, definition, planning, steering and completion of projects.” [5] Consequently, it can be derived that the role of leadership is of special importance for managing unstable and uncertain production system ramp-up phase.

## 2 Production system ramp-up – a socio-technical perspective

In general, production ramp-up can be described as the link between product development phase and the series fabrication process. It represents an important integral function when it comes to the physical implementation of a products’ value-added processes in the overall product development process [6]. As shown in Fig. 1., the ramp-up phase builds upon the development phase, which includes the product development as well as the development of the processes and the production system.

<figure><img src="image_2.png" /><figcaption>Fig. 1. Process organization of production ramp-up, based on [6][7][8][9]</figcaption></figure>

Within the ramp-up phase focus is on the coordination of objects and functions in order to successfully complete the pilot production phase, the zero series production phase, the phase of commissioning and adjustment of the production system as well as the modification management phase. After fitting and setting up all product-, process- and organization-specific requirements, start of production (SOP) follows [10]. In the subsequent production system ramp-up phase, production quantity is raised. Two conflicting factors are characteristic of this period: low production capacity, and high demand. High demand arises because the product is still relatively new and might even be the
first of its type. Thus, customers are ready to pay a premium price. However, output is
low due to low production rates and unforeseen disturbances. The production process
is still instable and socio-technical systems interactions are poorly understood [11].
Machine break downs are unexplainable, humans do not have practical knowledge, spe-
cial operations are needed to correct product and process oversights, and other factors
impede output. Over a certain time, the organization has to learn about the production
processes and equipment so that yields and capacity utilization increase [12]. In case
that the required production quantity is reached the production system ramp-up phase
is finished and series production phase begins (compare “peak production” in Fig. 1).
The aforementioned explanations show that the production system ramp-up phase is of
special importance for the whole product development process since it is the first time
that the complex socio-technical production system needs to perform under pressure
[13]. All possible failures from previous process steps, such as the product and process
development phase, that could not be anticipated or identified in the planning process
will come to light and result in costly delays of the time-to-market span (compare Fig.
1). [9]

<figure><img src="image_3.png" /><figcaption>**Fig. 2.** Instability in socio-technical production system ramp-up, based on [14]</figcaption></figure>

According to WIENDAHL [6], the production system ramp-up phase can be defined as
follows: "In production system ramp-up phase, all system elements in the production
system will be brought to full capacity under consideration of nominal, personnel, or-
ganizational and technical conditions. Therefore, optimization and stabilization of op-
erational performance in terms of human oriented, organizational and technical inade-
quacies necessarily need be done in this special phase." It becomes clear that, once
implemented, the technical subsystem is rather rigid and inflexible. Therefore, in terms
of joint optimization and appropriate reaction in case of unforeseen disturbances, the
social subsystem with its human elements plays a vital role in production ramp-up man-
agement [15] All ramp-up involved personnel must be guided appropriately in order to
be resilient towards disturbances by developing abilities that enable to anticipate, mon-
itor, react and learn from failures within the production system.
## 3 Lean Leadership – Principles and its application

Whereas technical elements, such as machines or processes, can be reconfigured and reorganized easily, the reorganization of people and the creation of value-adding mind-sets is nontrivial. Therefore, in context of series production in lean production systems, a people-oriented leadership style has evolved to state of the art. Several authors acknowledge that the Lean Leadership (LL) style is the important aspect in implementing and supporting a culture that focuses on value-adding, customer orientation and continuous self-development. [16] According to VDI guideline 2871, LL is defined as a “company specific, methodically set of rules and methods for goal-oriented leadership in order to sustainably implement and continuously improve a lean production system.” [17] The basic design principles of lean leadership as well as their application are listed in Fig. 3.

<figure><img src="image_4.png" /><figcaption>Fig. 3. Lean Leadership: Principles and its application (acc. to [17])</figcaption></figure>

Similar to the general structure of lean production systems, LL orientates towards goals, processes, design principles, methods and tools [17]. As an example, LL can help to improve the KPI “product quality” by focusing on the principle “coaching”. Special guidelines help Lean leaders encourage people to build competences on the job or empower employees to solve problems independently (compare [17]). As a result, LL helps to set up a culture of continuous improvement and enables people in complex socio-technical systems to become problem solvers and decision makers in order to improve processes decentralized, independently and on a daily basis. Since implementing Lean and LL is time-consuming, the initiatives often only start up subsequently to the ramp-up project when fire-fighting is over and stable state of production has been reached. However, as DOMBROWSKI [7] has shown with the “Lean Ramp-up” approach, the application of certain Lean tools and methods can be also very beneficial in the instable production system ramp-up phase. Regarding the Lean Leadership principles and its application areas in the context of special characteristics of the production
system ramp-up phase, it becomes obvious that a similar leadership approach might
also be beneficial in terms of reducing the time-to-market span by jointly optimizing
social and technical subsystem.

# 4 Lean Leadership in production system ramp-up

## 4.1 Research design

To answer the research question, whether the application of Lean Leadership might
have potential for the production system ramp-up phase, a mixed-method data collec-
tion approach was conducted in a components facility of a big German commercial
vehicle manufacturer [18]. First, a short self-administered questionnaire was designed
including the question whether the five Lean Leadership principles, all 15 associated
sub-elements as well as the ten guidelines presented in VDI guideline 2871 have
5 – much more, 4 – more, 3 – as much as, 2 – less, 1 – much less potential in production
ramp-up phase compared to series production phase (compare 5-point Likert-type scale
in Fig. 4). Since Lean Leadership has shown it applicability in series production in
various industries and is equally important throughout the whole production system
lifecycle, the questionnaire did not aim at investigating whether the principles are more
or less *important* in any of the phases. Instead, the investigations shall rather give notice
that some of the principles have even higher *potential* to cope with special characteris-
tics of the phases, such as higher uncertainty in the instable production ramp-up phase.
To control the bias in the quantitative data collection, the participants were chosen from
a broad range of disciplines and professional background. Thus, the results shown in
section 4.2 represent the opinion of representatives of operational and other ramp-up
involved business segments, such as blue collar workers, managers of operational seg-
ments, higher managers being decision-makers in ramp-up projects, other personnel
involved in ramp-up projects and people that are currently not involved in ramp-up
projects. While selecting the participants it was ensured that he/she is able to draw on
experience in working in production ramp-up phase as well as series production phase,
in order to get an experience-based answer from the participants. The total sample size
that completed the survey is n = 58 whereby all groups of participants were approxi-
mately evenly distributed. Additionally, in order to explain the purpose of the study and
to gain further in-depth understandings, a qualitative semi-structured interview was
conducted with each participant before and after filling out the questionnaire. The pur-
pose was to deepen the participants’ understanding on the different characteristics of
the series production phase and the production ramp-up phase as well as the LL princi-
ples and guidelines in order to ensure that they can objectively assess the potential on
the Likert-type scale. At the end of the mixed-method data collection approach the par-
ticipants were asked to assess the suitability of the existing LL approach for the pro-
duction system ramp-up phase. On another 5-point Likert-type scale they had to esti-
mate whether the LL approach needs to be adapted to the special characteristics of the
production system ramp-up phase (5 – fully agree, 4 – agree, 3 – do not know, 2 –
disagree, 1– fully disagree).
## 4.2 Results

The survey results are illustrated in **Fig. 4**. The bar chart on the left hand side shows the potential of Lean Leadership principles and guidelines in production system ramp-up phase relatively to series production phase. For each of the five principles the arithmetic means have been calculated from the estimates of n = 58 participants. In general, from the data analysis it can be derived that there is clear evidence that the application of the principles has high potential for production system ramp-up phase (all mean values $\bar{x}_{1-5} > 3,8$). In particular, *Coaching Qualification* and *Participation* with a mean value $\bar{x} > 4.0$ were identified to be very beneficial for the production system ramp-up phase. Especially the sub-elements “Employees' competence development on the job” ($\bar{x} = 4.50$), “Striving for perfection” ($\bar{x} = 4.28$) as well as “Involvement of employees in problem-solving processes” ($\bar{x} = 4.22$) were considered to have very high potential in production system ramp-up phase. The results of the other 13 sub-elements of the principles are not part of this publication.

<figure><img src="image_5.png" /><figcaption>**Fig. 4.** Potential of Lean Leadership principles & guidelines in production ramp-up phase</figcaption></figure>

In order to identify applicable recommendations that can be helpful for better managing sociotechnical system ramp-up, the survey participants were also asked to assess the potential of applying the Lean Leadership guidelines in production system ramp-up relatively to series production on the 5-point Likert-type scale. The results can be seen on the right hand side in **Fig. 4**. Especially the leadership tasks “Inform yourself and others” ($\bar{x} = 4.17$) and “Develop yourself and your employees” ($\bar{x} = 4.14$) were identified to have high potential in the production ramp-up phase. With an average mean value of $\bar{x}_{1-10} = 3,83$ all recommendations should be especially focused in ramp-up projects in order to optimize the instable sociotechnical system. Therefore, in their descending order the presented guidelines should serve as a basis for the development of a ramp-up specific LL orientation that focuses on transparency, employee development, problem-solving and participative value creation. The need for adapting the existing LL approach by prioritizing certain principles and guidelines was also emphasized by the survey participants. With a mean value $\bar{x} = 4.07$ the 58 respondents agree that the LL
approach needs to be adapted to the special requirements of the production system
ramp-up phase.

**5 Conclusion**

Since it is the first-time interaction of the planned technical subsystem and the social
subsystem, the production system ramp-up phase can be characterized by its high com-
plexity and uncertainty. In order to ensure a timely, qualitatively and cost efficient mar-
ket entry, both technical challenges, as well as the integration of human employees with
their diverse abilities, wants, and needs, must be considered in a ramp-up project. Con-
sequently, decision makers in production ramp-up phase must be adequately supported
by an appropriate leadership style. In this paper the results of mixed-method data col-
lection approach at a components facility of a German commercial vehicle manufac-
turer indicate that the Lean Leadership approach, which has proven to be very support-
ive in series production, can be also beneficial to meet the special requirements of the
socio-technical production system ramp-up phase. Strong focus on *Coaching/Qualifi-
cation* and/or *Participation* as well as the consideration of leadership guidelines, such
as *"Inform yourself and others"*, have been identified to be very helpful. Based on the
findings in this paper, future research work in the field of production system ramp-up
should not only concentrate on technical aspects, but on the joint optimization of socio-
technical production ramp-up systems. Therefore, the application of human-oriented
concepts, tools and methods, such as an appropriate leadership style, is just as important
as the application of organizational aspects or technologies in order to increase resilient
behavior of production system ramp-up phase. The development of an approach that
allows to purposively adopt existing LL principles and guidelines (that focus on series
production so far) as well as the prioritization of principles that are of special im-
portance in different phases of the production system lifecycle (e.g. in the production
ramp-up phase) can be a valuable contribution to better manage production ramp-up
projects in the future.

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