Manajemen | Fakultas Ekonomi Universitas Maritim Raja Ali Haji joeb.84.4.194-199

Journal of Education for Business

ISSN: 0883-2323 (Print) 1940-3356 (Online) Journal homepage: http://www.tandfonline.com/loi/vjeb20

Learning Lean: A Survey of Industry Lean Needs
Gene Fliedner & Kieran Mathieson
To cite this article: Gene Fliedner & Kieran Mathieson (2009) Learning Lean: A Survey
of Industry Lean Needs, Journal of Education for Business, 84:4, 194-199, DOI: 10.3200/
JOEB.84.4.194-199
To link to this article: http://dx.doi.org/10.3200/JOEB.84.4.194-199

Published online: 07 Aug 2010.

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Learning฀Lean:฀A฀Survey฀of฀Industry฀฀
Lean฀Needs
GENE฀FLIEDNER฀
KIERAN฀MATHIESON฀
OAKLAND฀UNIVERSITY฀
ROCHESTER,฀MICHIGAN

ABSTRACT.
ABSTRACT.฀The฀authors฀examined฀
business฀practitioners’฀preferences฀for฀
higher฀education฀curricula฀design฀in฀general฀and฀for฀what฀graduates฀should฀know฀
about฀Lean,฀or฀waste-reduction฀efforts.฀The฀

authors฀conducted฀a฀Web-based฀survey฀
and฀found฀that฀practitioners฀are฀not฀as฀concerned฀about฀graduates’฀possessing฀specific฀
technical฀skills฀as฀they฀are฀about฀them฀possessing฀a฀systems฀view฀of฀organizations฀and฀
value฀streams.฀The฀survey฀findings฀suggest฀
several฀implications฀for฀undergraduate฀and฀
graduate฀business฀school฀curriculum฀design,฀
Lean฀education,฀and฀a฀broader฀systems฀
approach฀to฀professional฀education.
Keywords:฀business฀school฀curricula฀
design,฀Lean
Copyright฀©฀2009฀Heldref฀Publications

194฀

Journal฀of฀Education฀for฀Business

R
L

ean,฀or฀waste฀reduction฀efforts,฀has฀

been฀ a฀ prominent฀ business฀ strategy฀
in฀ the฀ past฀ two฀ decades฀ (Ohno,฀ 1988;฀
Standard฀ &฀ Davis,฀ 1999;฀ Womack,฀
Jones,฀ &฀ Roos,฀ 1990).฀ Lean฀ practices฀
are฀ found฀ in฀ service฀ and฀ manufacturing฀firms,฀small฀and฀large฀business,฀and฀
for-profit฀ and฀ nonprofit฀ organizations฀
(Ohno).฀ A฀ driving฀ force฀ behind฀ many฀
Lean฀ initiatives฀ is฀ globalization,฀ which฀
has฀reduced฀producers’฀control฀over฀prices.฀Cooper฀(2007)฀stated,฀“Intensification฀
of฀ competitive฀ forces฀ limits฀ the฀ ability฀
of฀ companies฀ to฀ simply฀ mark฀ up฀ prices฀
based฀ on฀ cost฀ increases.฀ It฀ has฀ made฀
cost฀ control,฀ rather฀ than฀ pricing฀ power,฀
the฀driving฀force฀behind฀corporate฀profit฀
margins฀ and฀ earnings฀ growth”฀ (p.฀ 25).฀
Businesses฀ must฀ increasingly฀ rely฀ on฀
cost฀ cutting,฀ waste฀ elimination,฀ productivity฀improvement,฀and฀quality฀enhancement฀ as฀ strategic฀ means฀ to฀ achieving฀
profit฀ objectives.฀ Lean฀ methods฀ address฀
these฀ concerns฀ and฀ do฀ work฀ (Clanton,฀
2004).฀ Furthermore,฀ there฀ is฀ a฀ growing฀

need฀for฀employees฀to฀participate฀in฀and฀
lead฀ the฀ necessary฀ changes฀ to฀ existing฀
business฀cultures,฀operating฀systems,฀and฀
practices฀ to฀ (a)฀ cut฀ costs,฀ (b)฀ eliminate฀
waste,฀and฀(c)฀improve฀productivity฀and฀
quality฀(Drickhamer,฀2004).
Lean฀ is฀ not฀ widespread฀ in฀ higher฀
education฀ curricula.฀ Stand-alone฀ Lean฀
classes฀are฀rare.฀Lean฀is฀normally฀found฀
in฀operations฀management฀or฀engineering฀ courses,฀ which฀ are฀ not฀ multidisci-

plinary฀and฀do฀not฀attract฀many฀students฀
outside฀the฀two฀disciplines.฀Consequently,฀the฀majority฀of฀students฀leave฀higher฀
education฀ with฀ little฀ understanding฀ of฀
Lean.฀ Subsequent฀ to฀ graduation,฀ many฀
organizations฀ invest฀ a฀ large฀ amount฀ of฀
time฀ and฀ money฀ to฀ educate฀ and฀ train฀
employees฀in฀Lean฀(Standard฀&฀Davis,฀
1999).฀ Universities฀ could฀ help฀ companies฀avoid฀some฀of฀this฀expense.฀
In฀August฀of฀2005,฀academicians฀and฀

practitioners฀ met฀ at฀ a฀ seminar฀ at฀ Ohio฀
State฀University฀where฀they฀created฀the฀
Lean฀ Education฀ Academic฀ Network฀
(LEAN),฀ a฀ group฀ of฀ university฀ educators฀ seeking฀ to฀ promote฀ Lean฀ education฀ in฀ U.S.฀ higher฀ academia.฀ LEAN฀
also฀ works฀ to฀ improve฀ Lean฀ education฀
through฀shared฀knowledge฀and฀teaching฀
materials,฀ collaboration,฀ and฀ networking฀among฀colleagues.฀LEAN฀members฀
at฀the฀initial฀meeting฀agreed฀that฀universities฀should฀learn฀what฀industry฀wants฀
graduates฀to฀know฀about฀Lean.฀Industry฀
participants฀ at฀ the฀ seminar฀ highlighted฀ the฀ importance฀ of฀ academic฀ curricula฀ maintaining฀ a฀ constant฀ awareness฀
of฀ current฀ industry฀ needs.฀ The฀ present฀
study฀is฀a฀step฀to฀that฀end.฀
Research฀Methodology
We฀ conducted฀ a฀Web-based฀ survey฀ to฀
better฀provide฀universities฀with฀an฀understanding฀of฀industry฀needs฀regarding฀Lean.฀
In฀the฀beginning,฀we฀circulated฀a฀pilot฀survey฀to฀15฀practitioners฀chosen฀by฀industry฀

Downloaded by [Universitas Maritim Raja Ali Haji] at 22:52 11 January 2016

representatives฀at฀the฀first฀LEAN฀meeting.฀

We฀refined฀the฀survey฀on฀the฀basis฀of฀their฀
feedback.฀We฀then฀created฀the฀Web-based฀
version฀of฀the฀refined฀survey.
We฀ distributed฀ the฀ refined฀Web-based฀
survey฀ with฀ the฀ assistance฀ of฀ the฀ Lean฀
Learning฀Center฀in฀Novi,฀Michigan,฀and฀
the฀Web฀site฀www.Superfactory.com.฀The฀
Lean฀Learning฀Center฀provides฀Lean฀curricula฀ for฀ industry฀ professional฀ development.฀ It฀ placed฀ a฀ participation฀ invitation฀
in฀ its฀ electronic฀ newsletter,฀ which฀ was฀
sent฀to฀approximately฀2,000฀opt-in฀e-mail฀
addresses.฀ The฀ number฀ of฀ people฀ who฀
actually฀read฀the฀newsletter฀is฀unknown.฀
Superfactory.com,฀which฀focuses฀on฀helping฀ readers฀ achieve฀ manufacturing฀ and฀
enterprise฀ excellence,฀ invited฀ industry฀
participants฀with฀a฀posting฀on฀its฀Web฀site฀
and฀a฀note฀in฀its฀monthly฀electronic฀newsletter.฀Superfactory.com฀claims฀more฀than฀
45,000฀ opt-in฀ subscribers.฀ However,฀ the฀
number฀of฀people฀who฀saw฀the฀Web฀posting฀or฀newsletter฀announcement฀was฀also฀
unknown.฀ The฀ fraction฀ of฀ those฀ readers฀
who฀were฀interested฀in฀Lean,฀as฀opposed฀

to฀ some฀ other฀ aspect฀ of฀ Superfactory.
com’s฀ coverage,฀ was฀ also฀ unknown.฀
A฀ 2-week฀ window฀ was฀ allowed฀ for฀฀
participant฀responses.
The฀actual฀survey฀response฀rate฀to฀the฀
refined฀ survey฀ could฀ not฀ be฀ computed฀
because฀ of฀ the฀ method฀ of฀ distribution.฀
However,฀there฀is฀little฀doubt฀that฀it฀was฀
low.฀ In฀ all,฀ we฀ received฀ 45฀ completed฀
surveys.฀Therefore,฀we฀do฀not฀claim฀that฀
the฀sample฀received฀is฀representative฀of฀
Lean฀ practitioners.฀ It฀ may฀ be฀ that฀ only฀
those฀ who฀ were฀ particularly฀ interested฀
in฀ Lean฀ education฀ responded฀ and฀ that฀
they฀are฀somehow฀different฀from฀others.฀
People฀ were฀ able฀ to฀ respond฀ anonymously฀ or฀ were฀ given฀ the฀ option฀ to฀
provide฀ an฀ e-mail฀ address฀ to฀ receive฀ a฀
complimentary฀copy฀of฀the฀results.฀
For฀ the฀ survey,฀ we฀ used฀ rank฀ order฀
scores฀ and฀ a฀ 7-point฀ Likert-type฀ scale฀

ranging฀from฀1฀(very฀important)฀to฀7฀(very฀
unimportant)฀ to฀ solicit฀ responses฀ from฀
participants฀ about฀ the฀ degree฀ of฀ importance฀ of฀ a฀ variety฀ of฀ Lean฀ skills,฀ knowledge฀areas,฀concepts,฀and฀tools.฀We฀used฀
parametric฀ and฀ nonparametric฀ statistical฀
analyses฀to฀examine฀response฀differences.
Survey฀Design
After฀collecting฀some฀initial฀demographic฀data,฀the฀first฀part฀of฀the฀survey฀


asked฀ participants฀ to฀ rank฀ in฀ order฀ of฀
most฀ important฀ (low฀ score)฀ to฀ least฀
important฀ (high฀ score)฀ 10฀ broadly฀
identified฀areas฀of฀Lean฀skills,฀knowledge,฀ and฀ expertise.฀ On฀ the฀ basis฀ of฀
pilot฀ study฀ results฀ and฀ anecdotal฀ evidence฀ from฀ conversations฀ with฀ practitioners,฀ these฀ 10฀ areas฀ were฀ chosen฀
because฀ of฀ their฀ importance฀ as฀ key฀
building฀ blocks฀ that฀ were฀ desirable฀
for฀ graduating฀ students฀ to฀ possess฀ to฀
make฀ a฀ quick฀ contribution฀ to฀ a฀ Lean฀
program.฀Rank฀orders฀were฀requested฀
because฀ each฀ of฀ these฀ items฀ potentially฀represented฀a฀significant฀amount฀

of฀ course฀ content.฀ It฀ may฀ not฀ be฀ possible฀ to฀ include฀ all฀ 10฀ of฀ these฀ broad฀
areas฀ in฀ a฀ single,฀ semester-long฀ Lean฀
course.฀The฀relative฀nature฀of฀the฀rankings฀should฀better฀enable฀educators฀to฀
prioritize฀course฀content.
In฀ the฀ second฀ part฀ of฀ the฀ survey,฀ we฀
asked฀ participants฀ about฀ a฀ variety฀ of฀
skills฀ in฀ three฀ more฀ specific฀ Lean฀ skill฀
sets฀ relating฀ to฀ particular฀ business฀ disciplines:฀ (a)฀ financial฀ and฀ accounting฀
skills;฀ (b)฀ human฀ relations฀ skills;฀ and฀
(c)฀engineering,฀operations,฀and฀marketing฀ skills.฀ These฀ more฀ specific฀ Lean฀
skill฀ sets฀ may฀ be฀ viewed฀ as฀ traditional฀
programs฀ of฀ study฀ (majors)฀ commonly฀
found฀in฀higher฀education.฀In฀addition฀to฀
rank฀ ordering,฀ participants฀ were฀ asked฀
to฀use฀a฀fine-grained฀Likert-type฀(FGL)฀
scale฀to฀indicate฀the฀absolute฀importance฀
of฀ Lean฀ skills฀ in฀ each฀ of฀ these฀ three฀
sets.฀ Traditional฀ coarse-grained฀ Likerttype฀scales฀force฀respondents฀to฀choose฀
among฀ distinctive฀ anchor฀ points,฀ usually฀five฀or฀seven.฀An฀FGL฀scale฀allows฀
participants฀to฀select฀values฀between฀the฀

anchor฀ points.฀ Mathieson฀ and฀ Doane฀
(2005)฀found฀that฀analyses฀of฀data฀gathered฀using฀FGL฀scales฀are฀more฀statistically฀ powerful฀ than฀ analyses฀ of฀ data฀
gathered฀ using฀ coarse-grained฀ scales.฀
Throughout฀the฀present฀study,฀the฀FGL฀
scale฀ranged฀from฀1฀(very฀important)฀to฀
7฀(very฀unimportant).
The฀final฀portion฀of฀the฀survey฀asked฀
participants฀to฀indicate฀the฀importance฀
of฀a฀variety฀of฀specific฀Lean฀concepts฀
and฀ tools฀ commonly฀ examined฀ in฀
existing฀ college฀ curricula.฀ Both฀ rankings฀ and฀ an฀ FGL฀ scale฀ were฀ used฀ to฀
solicit฀participant฀views฀of฀the฀importance฀ of฀ these฀ specific฀ Lean฀ concepts฀
and฀tools.

RESULTS
Because฀ Lean฀ is฀ applicable฀ in฀ small฀
and฀ large฀ service฀ and฀ manufacturing฀
organizations,฀ we฀ collected฀ demographic฀ data฀ concerning฀ job฀ titles฀ and฀
organization฀ sizes.฀ Survey฀ respondents฀
held฀ a฀ broad฀ range฀ of฀ job฀ positions฀ in฀

companies฀ of฀ varying฀ sizes฀ and฀ types.฀
The฀ diversity฀ in฀ job฀ positions฀ included฀ 28฀ different฀ job฀ titles฀ ranging฀ from฀
presidents฀ to฀ various฀ types฀ of฀ managers฀including฀plant,฀general,฀production,฀
inventory฀control,฀systems,฀information฀
technology,฀ sales,฀ and฀ supply฀ chain.฀
Other฀ job฀ titles฀ included฀ public฀ information฀coordinator฀and฀union฀representative.฀The฀range฀of฀company฀sizes฀and฀
types฀is฀shown฀in฀Table฀1.฀We฀received฀
most฀ responses฀ from฀ people฀ in฀ manufacturing฀companies.฀Nearly฀half฀of฀the฀
responses฀ were฀ from฀ people฀ working฀
for฀ companies฀ with฀ more฀ than฀ 1,000฀
employees.
The฀ median฀ rank฀ values฀ for฀ the฀ 10฀
broadly฀ identified฀ areas฀ of฀ Lean฀ skills,฀
knowledge,฀ and฀ expertise฀ are฀ shown฀ in฀
Table฀ 2.฀ No฀ area฀ was฀ more฀ important฀
than฀that฀of฀systems฀planning฀and฀thinking.฀ This฀ result฀ is฀ consistent฀ with฀ conversations฀ with฀ practitioners.฀ Companies฀ that฀ have฀ implemented฀ successful฀
Lean฀ programs฀ have฀ commonly฀ taken฀
into฀account฀the฀entire฀enterprise,฀from฀
supplier฀to฀customer,฀and฀everything฀in฀
between฀(Yamada฀&฀Tracey,฀2005).฀
The฀ respondents฀ also฀ perceived฀ the฀
areas฀ of฀ Human฀ relations฀ skills฀ and฀
Lean฀ culture฀ to฀ be฀ important,฀ with฀
median฀ ranks฀ of฀ 3฀ and฀ 5,฀ respectively.฀
Lean฀ implementations฀ often฀ change฀
TABLE฀1.฀Number฀of฀Responses,฀
by฀Type฀and฀Size฀of฀Organization฀

Variable฀

Number฀of
responses

Organization฀type
฀฀฀Service฀
฀฀฀Manufacturing฀
฀฀฀Government฀
Number฀of฀employees
฀฀฀1–50฀
฀฀฀51–100฀
฀฀฀101–150฀
฀฀฀151–500฀
฀฀฀501–1,000฀
฀฀฀>฀1,000฀

11
30
4
5
5
0
9
4
22

March/April฀2009฀

195

TABLE฀2.฀Median฀Rank฀Values฀of฀Ten฀Broadly฀Identified฀Areas฀of฀Lean฀
Skills,฀Knowledge,฀and฀Expertise

Downloaded by [Universitas Maritim Raja Ali Haji] at 22:52 11 January 2016

Broadly฀identified฀area฀

Mdn฀rank฀value

฀ 1.฀ Systems฀planning฀and฀thinking฀฀
฀ ฀ ฀฀฀(e.g.,฀seeing฀the฀business฀as฀a฀value฀stream)
฀ 2.฀ Human฀relations฀skills฀฀
฀ ฀ ฀฀฀(e.g.,฀leadership,฀change฀management,฀team฀problem฀solving)
฀ 3.฀ Real-world฀business฀knowledge฀and฀experience฀฀
฀ ฀ ฀฀฀(e.g.,฀internships,฀job฀experience)
฀ 4.฀ Lean฀culture฀฀
฀ ฀ ฀฀฀(e.g.,฀kaizen,฀plan-do-check-act,฀5S฀or฀visual฀management)
฀ 5.฀ Lean฀principles,฀terminology,฀and฀tools฀฀
฀ ฀ ฀฀฀(e.g.,฀pull,฀takt,฀single฀minute฀exchange฀of฀die,฀one-piece฀flow)
฀ 6.฀ Stability฀and฀variance฀reduction฀฀
฀ ฀ ฀฀฀(e.g.,฀six฀Sigma,฀standardized฀work,฀talking฀points฀memo)
฀ 7.฀ Financial฀and฀accounting฀knowledge฀฀
฀ ฀ ฀฀฀(e.g.,฀cash฀flow,฀working฀capital,฀return฀on฀net฀assets)
฀ 8.฀ Delivery฀฀
฀ ฀ ฀฀฀(e.g.,฀time-to-market฀and฀lead-time฀reduction,฀closed฀loop฀design)฀
฀ 9.฀ Safety฀
฀10.฀ Quality฀and฀other฀systems฀improvement฀methodologies฀฀
฀ ฀ ฀฀฀(e.g.,฀Malcolm฀Baldrige)

companies,฀ threatening฀ (or฀ appearing฀
to฀ threaten)฀ both฀ corporate฀ culture฀ and฀
customary฀ ways฀ of฀ conducting฀ work.฀
Leadership฀ and฀ change-management฀
skills,฀ therefore,฀ command฀ a฀ premium.฀
The฀ Society฀ of฀ Automotive฀ Engineers฀
International฀ (1999)฀ noted฀ that฀ Lean฀ is฀
primarily฀ about฀ management,฀ workers,฀
and฀the฀trust฀that฀binds฀the฀two,฀and฀that฀
these฀are฀the฀most฀important฀elements฀of฀
a฀ Lean฀ system.฀ This฀ point฀ underscores฀
the฀importance฀of฀human฀relations฀skills฀
for฀any฀Lean฀program.฀
The฀ respondents฀ also฀ viewed฀ the฀
areas฀of฀real-world฀business฀knowledge฀
and฀ experience฀ to฀ be฀ important.฀ Practitioners฀ seek฀ potential฀ employees฀ who฀
can฀ make฀ a฀ quick฀ contribution.฀ It฀ is฀
commonly฀ argued฀ that฀ learning฀ is฀ best฀
derived฀from฀personal฀experience.฀This฀
sentiment฀is฀echoed฀by฀the฀median฀rank฀
value฀of฀3.5฀for฀the฀areas฀of฀real-world฀
business฀ knowledge฀ and฀ experience,฀ as฀
shown฀in฀Table฀2.
One฀common฀form฀of฀waste฀that฀Lean฀
program฀administrators฀try฀to฀eliminate฀
is฀the฀production฀of฀defects.฀In฀light฀of฀
this฀ observation,฀ it฀ is฀ interesting฀ that฀
the฀ areas฀ of฀ quality฀ and฀ other฀ systemsimprovement฀ methodologies฀ had฀ the฀
least฀important฀ranking.
We฀ performed฀ a฀ Friedman฀ rank฀ test฀
of฀the฀participants’฀rank฀orders฀for฀these฀
10฀ broadly฀ identified฀ areas฀ of฀ Lean฀ to฀
196฀

Journal฀of฀Education฀for฀Business

3.0
3.0
3.5
5.0
5.0
6.0
7.0
7.0
8.0
8.0

ascertain฀ whether฀ the฀ rank฀ values฀ represent฀a฀statistical฀difference.฀The฀critical฀ test฀ value฀ was฀ 16.919,฀ using฀ a฀ .05฀
level฀ of฀ significance฀ with฀ 9฀ degrees฀ of฀
freedom.฀The฀calculated฀test฀statistic฀of฀
85.475฀indicated฀a฀significant฀degree฀of฀
differences฀ in฀ the฀ relative฀ importance฀
among฀these฀skills.
After฀ being฀ asked฀ about฀ the฀ 10฀ general฀skill฀areas,฀respondents฀were฀asked฀
about฀ three฀ more฀ specific,฀ disciplinerelated฀skill฀sets.฀The฀FGL฀means,฀standard฀deviations,฀and฀median฀rank฀values฀
for฀ the฀ first฀ of฀ these฀ discipline-specific฀
sets,฀ Lean฀ financial฀ and฀ accounting฀
skills,฀are฀shown฀in฀Table฀3.฀Both฀metrics,฀FGL฀score฀means฀and฀median฀rank฀

values,฀demonstrated฀a฀reasonable฀level฀
of฀consistency.฀Score฀standard฀deviation฀
values฀ are฀ reported฀ to฀ allow฀ the฀ reader฀
to฀infer฀the฀extent฀of฀consistency฀among฀
the฀participants’฀FGL฀score฀values.฀
From฀ the฀ survey฀ results,฀ we฀ ascertained฀that฀the฀most฀important฀item฀was฀
enterprise฀ view฀ of฀ money,฀ which฀ had฀
the฀ lowest฀ mean฀ FGL฀ score฀ and฀ lowest฀ median฀ rank.฀ (Lower฀ values฀ mean฀
higher฀ importance.)฀ This฀ echoes฀ the฀
systems฀planning฀and฀thinking฀concept.฀
The฀skill฀rated฀as฀second฀most฀important฀
was฀the฀understanding฀of฀the฀time฀value฀฀
of฀money.
We฀ conducted฀ a฀ one-way฀ analysis฀ of฀
variance฀ (ANOVA)฀ with฀ the฀ relatively฀
small฀level฀of฀differences฀among฀the฀FGL฀
scores฀of฀these฀particular฀skills.฀The฀critical฀ value฀ of฀ the฀ test฀ was฀ 2.13,฀ with฀ the฀
seven฀ skill฀ items฀ and฀ 6฀ degrees฀ of฀ freedom.฀We฀calculated฀F฀to฀be฀2.70฀and฀p฀to฀
be฀.01,฀indicating฀a฀high฀degree฀of฀significant฀differences฀among฀these฀skills.฀
Similarly,฀a฀nonparametric฀Friedman฀
rank฀test฀of฀the฀rank฀orders฀for฀the฀seven฀
financial฀and฀accounting฀skills฀was฀conducted฀using฀a฀.05฀level฀of฀significance฀
to฀ better฀ understand฀ whether฀ the฀ rank฀
values฀ represented฀ a฀ statistical฀ difference.฀The฀critical฀value฀of฀this฀test฀was฀
12.59.฀We฀calculated฀the฀test฀statistic฀to฀
be฀13.96,฀indicating฀a฀significant฀degree฀
of฀ difference฀ among฀ the฀ participants’฀
rankings฀for฀this฀skill฀set.฀These฀results฀
suggest฀that฀survey฀participants฀regarded฀the฀enterprise฀view฀of฀money฀as฀the฀
most฀ important฀ skill฀ and฀ activity-based฀
costing฀as฀the฀least฀important.
The฀ results฀ for฀ the฀ second฀ of฀ the฀
three฀ discipline-related฀ skill฀ sets,฀

TABLE฀3.฀Lean฀Financial฀and฀Accounting฀Skills

Skill฀
Enterprise฀(total฀company)฀view฀of฀money฀
Time฀value฀of฀money฀
First฀in,฀first฀out฀
Cash฀flow฀
Working฀capital฀
Return฀on฀net฀assets฀
Activity-based฀costing฀

Scale฀point
M฀

SD฀

Mdn฀rank฀value

2.51฀
2.63฀
2.70฀
2.98฀
3.08฀
3.11฀
3.25฀

0.81฀
1.00฀
1.21฀
1.09฀
0.78฀
1.25฀
1.49฀

3
3
4
4
5
4
6

Note.฀Responses฀are฀from฀a฀7-point,฀fine-grained฀Likert-type฀scale฀ranging฀from฀1฀(most฀important)฀to฀7฀(least฀important).฀

Downloaded by [Universitas Maritim Raja Ali Haji] at 22:52 11 January 2016

human฀ relations฀ skills,฀ are฀ shown฀ in฀
Table฀ 4.฀ Again,฀ there฀ was฀ much฀ consistency฀ between฀ the฀ participants’฀
rank฀ order฀ and฀ FGL฀ scores.฀ Leadership฀ skills฀ was฀ ranked฀ as฀ the฀ most฀
important฀item฀by฀both฀the฀FGL฀mean฀
score฀ and฀ median฀ rank฀ value.฀ Teamwork฀ skills฀ was฀ next฀ on฀ both฀ metrics.฀ The฀ items฀ basic฀ problem฀ solving฀
skills,฀team฀problem฀solving฀skills,฀and฀
change฀ management฀ followed฀ closely.฀
Negotiation฀and฀conflict฀resolution฀was฀
seen฀as฀the฀least฀important฀item฀in฀this฀
skill฀ set฀ when฀ measured฀ by฀ the฀ FGL฀
and฀median฀rankings.
We฀ calculated฀ a฀ one-way฀ ANOVA฀
among฀ the฀ FGL฀ scores฀ of฀ these฀ eight฀
particular฀ skills.฀ The฀ critical฀ value฀ of฀
the฀ test฀ was฀ 2.04฀ for฀ the฀ 7฀ degrees฀ of฀
freedom,฀ F฀ was฀ calculated฀ to฀ be฀ 1.98฀฀
(p฀ >฀ .05,฀ ns).฀ Range฀ truncation฀ may฀
explain฀ this฀ because฀ two฀ of฀ the฀ FGL฀
score฀ means฀ were฀ within฀ 1฀ standard฀
deviation,฀and฀several฀others฀were฀close฀
to฀ 1฀ standard฀ deviation฀ of฀ the฀ end฀ of฀฀
the฀scale.
We฀ conducted฀ a฀ Friedman฀ rank฀ test฀
of฀the฀median฀rank฀orders฀for฀the฀eight฀
skills฀ using฀ a฀ .05฀ level฀ of฀ significance.฀
The฀critical฀value฀of฀this฀test฀was฀14.07.฀
We฀ calculated฀ the฀ test฀ statistic฀ to฀ be฀
38.11,฀indicating฀a฀significant฀degree฀of฀
difference฀among฀the฀participants’฀rankings฀for฀this฀skill฀set.฀
Overall,฀ the฀ evidence฀ suggests฀ that฀
there฀ are฀ significant฀ differences฀ in฀ the฀
ratings,฀ so฀ that฀ leadership฀ skills฀ were฀
perceived฀ to฀ be฀ more฀ important฀ than฀
negotiation฀ and฀ conflict฀ resolution.฀ It฀
is฀ interesting฀ that฀ the฀ skill฀ viewed฀ as฀
least฀ important฀ in฀ this฀ set฀ (negotiation฀
and฀ conflict฀ resolution,฀ with฀ a฀ mean฀
FGL฀ score฀ of฀ 2.17฀ [SD฀ =฀ 0.87])฀ was฀
perceived฀to฀be฀more฀important฀than฀the฀
most฀important฀skill฀in฀the฀financial฀and฀
accounting฀skills฀set฀(enterprise฀view฀of฀
money,฀with฀a฀mean฀FGL฀score฀of฀2.51฀
[SD฀=฀0.81]).฀
The฀FGL฀means,฀standard฀deviations,฀
and฀median฀rank฀values฀for฀the฀third฀discipline-related฀ skill฀ set—engineering,฀
operations,฀ and฀ marketing฀ skills—are฀
shown฀in฀Table฀5.฀There฀were฀differences฀ in฀ the฀ FGL฀ scores฀ and฀ rank฀ results.฀
However,฀if฀the฀skills฀are฀split฀into฀two฀
roughly฀ equal-sized฀ sets฀ (high฀ importance฀ and฀ low฀ importance),฀ then฀ skills฀
rated฀ as฀ high฀ importance฀ by฀ the฀ FGL฀


TABLE฀4.฀Human฀Relations฀Skills

Skill฀
Leadership฀฀
Teamwork฀
Basic฀problem฀solving฀฀
Team฀problem฀solving฀฀
Change฀management฀
Interpersonal฀฀
Logical฀thinking฀
Negotiation฀and฀conflict฀
฀฀฀resolution฀

Scale฀point
M฀

SD฀

Mdn฀rank฀value

1.67฀
1.69฀
1.77฀
1.79฀
1.79฀
1.88฀
1.89฀
2.17฀

0.62฀
0.82฀
0.71฀
0.90฀
0.69฀
0.66฀
0.67฀
0.87฀

2.00
3.00
4.50
4.75
5.50
4.00
5.00
6.00

Note.฀Responses฀are฀from฀a฀7-point,฀fine-grained฀Likert-type฀scale฀ranging฀from฀1฀(most฀important)฀to฀7฀(least฀important).฀

TABLE฀5.฀Engineering,฀Operations,฀and฀Marketing฀Skills

Skill฀
Standardization฀
Variance฀or฀variance฀reduction฀
Ability฀to฀assess฀delivered฀value฀to฀customer฀
Process฀thinking฀
Translating฀customer฀requirements฀into฀
฀฀฀specifications
Process฀design฀
Lean฀product฀design฀and฀development฀time฀
Cellular฀layouts฀
General฀statistical฀analysis฀
Lean฀product฀design฀and฀development฀costs฀
Debugging฀
Automation฀
Statistical฀process฀control฀
Pilot฀testing฀
Prototyping฀

Scale฀point
M฀

SD฀

Mdn฀rank฀value

1.76฀
1.94฀
2.10฀
2.19฀
2.20฀

0.65฀
0.59฀
0.78฀
0.83฀
0.96฀

4.50
7.50
5.00
2.50
3.75

2.49฀
2.50฀
2.52฀
2.62฀
2.66฀
2.73฀
2.77฀
2.81฀
2.88฀
3.13฀

0.99฀
1.00฀
0.96฀
0.86฀
0.87฀
0.95฀
1.19฀
1.05฀
0.93฀
0.98฀

5.50
6.50
13.00
11.00
7.50
10.00
10.00
12.00
10.00
11.00

Note.฀Responses฀are฀from฀a฀7-point,฀fine-grained฀Likert-type฀scale฀ranging฀from฀1฀(most฀important)฀to฀7฀(least฀important).฀

scales฀ were฀ also฀ rated฀ as฀ high฀ importance฀by฀the฀rank฀values,฀and฀skills฀rated฀
as฀low฀importance฀by฀the฀FGL฀were฀also฀
rated฀as฀low฀importance฀by฀the฀rank฀values.฀Standardization฀received฀the฀lowest฀
mean฀ FGL฀ rating,฀ followed฀ by฀ variance฀ reduction.฀ The฀ item฀ most฀ similar฀
to฀ a฀ systems฀ view,฀ process฀ thinking,฀
received฀the฀lowest฀median฀ranking,฀followed฀ by฀ translating฀ customer฀ requirements฀into฀specifications.฀We฀conducted฀
an฀ ANOVA฀ among฀ the฀ FGL฀ scores฀ of฀
these฀skills.฀The฀critical฀value฀of฀the฀test฀
was฀ 1.71,฀ with฀ the฀ 15฀ skill฀ items฀ comprising฀ the฀ comparative฀ analysis฀ and฀
14฀ degrees฀ of฀ freedom.฀ We฀ calculated฀

F฀ to฀ be฀ 6.79฀ (p฀