The Gold Mine: A Novel of Lean Turnaround

by Freddy Ballé

The Gold a Novel of Lean Turnaround deftly weaves together the technical and human pieces of implementing lean manufacturing in an engaging story that readers will find both compelling and instructive. Authors Freddy and Michael Ballé have produced the first integrated and systematic approach to a set of ideas that have maximized value and minimized waste throughout the world. At the heart of the Gold Mine is Bob Woods, a curmudgeonly sensei coaxed out of retirement by his son Mike to help boyhood friend Phil Jenkinson save his struggling company. Despite terrific products and a backlog of orders, Phil’s company cannot generate enough cash from its operations to pay its bills. And so Mike enlists Bob to help his pal fix this crisis. "You’re trying to deal with your mess as if it was a technical problem," Bob tells Phil. "Move this machine here, change this design there, which it is to some extent, but … it’s all about people. You have a leadership problem not just a production or business problem." As Phil begins to tackle the key challenges necessary to improve his company’s operations, he comes to understand the deeper points of lean. Readers will also draw powerful insights from his journey. The Gold Mine presents all the key lean principles, ranging from well-known ideas such as pull and flow, to lesser-known yet equally important principles such as jidoka and heijunka. The book also reveals lean as a system—using a realistic story to show how the principles are interrelated and how they lead to useful tools such as kanban or 5S.

Genres: Business, Management, Leadership, Nonfiction

360 pages, Paperback

First published May 30, 2005

Reviews

[Kostiantyn · Rating 5 out of 5]

There's a literary genre called the business novel. And then there's the book “The Gold Mine: A Novel of Lean Turnaround” by Freddy and Michael Balle. It stands apart. It's not a business novel, but a novel about business. The difference is that business novels (at least the ones I've come across) are rather mediocre sources of knowledge, diluted by the author's pathetic attempts at literature. They're all very similar. The narrator is a factory director, and from the first chapter, we learn that his factory will be shut down in a certain number of months. In the last chapter, this doesn't happen, and the whole book, by and large, boils down to how the initial situation is turned upside down.

Now, about the novel “The Gold Mine”... The narrator is not the main character. He's a young psychology professor, a bit lost in life. A kind of grown-up version of Holden Caulfield... A contradictory character, confused thoughts, a sabbatical to write a book and six months without a single line written. An empty apartment, unpacked boxes, and a heavy feeling after breaking up with his girlfriend. His department isn't going to be closed, and he's not being fired. And, most likely, the higher education institution where he works, and he himself, have a bright future ahead.

So where's the crisis? And where's the factory and this all this Lean stuff?

The authors didn't overlook all this either. One fine evening, a childhood friend, dead drunk, shows up at the narrator's place and, collapsing on the couch unconscious, stays the night. The next morning, it turns out that the once promising young scientist, who later became an equally successful businessman and a happy family man, isn't doing so well. Neither at his factory nor in his personal life. The narrator can't help with his personal life, but his father – a former big shot in the manufacturing world, and now a happy retiree with a yacht – might have some valuable advice regarding the problems at the factory.

That's where all the Lean happens. In the conversations between the father and the main narrator's best friend on the yacht. The reader observes this through the eyes of a completely uninitiated person, who is constantly distracted by the young and attractive HR manager with Latin roots.

And yet, from the novel we learn about:
• value stream mapping;
• the pull system and the meaning of the supermarket within it;
• kanban, separately from the point above;
• the 5S system;
• Gemba Walks and the role of company management in them;
• the work of a team leader (foreman or shift supervisor);
• and a lot of other interesting things.

But the main thing is that this is narrated not by a Japanese person with their specific flavor. Even if it's a person who worked for a Toyota supplier for many years. Still, he remembers how those Japanese made him angry with their stupid and illogical requests. How they told all sorts of nonsense. And how he himself realized that this nonsense wasn't nonsense at all. How he still wonders how completely illogical things can be so logical.

‘A Frenchman, a Japanese, and an American who are building a production unit in Peru. They get taken hostage by guerrillas who tell them that since they are agents of capitalistic world domination through globalization, they will be shot. But since the guerrillas respect freedom of speech, they're allowed a last word. The Frenchman cries, ‘Vive la France!’ and then is shot dead. The Japanese manager comes next and says, 'I'd like to talk to you about the lake and the rocks,' at which moment the American manager jumps forward and rips open his shirt, facing the guns, yelling, 'If I must hear about the lake and the rocks one more time, shoot me first!'’

Freddy and Michael Balle's novel will probably appeal even to people who haven't experienced the heat of Lean transformations. The authors managed to present Lean so interestingly and originally that this book could very well be a starting point. Those readers who have already made their own mistakes will find it doubly interesting to delve into the drama of transformations that unfolds within the characters. Well, those who have already read this book will be very grateful for reviews and impressions left in the comments.

[Julie · Rating 2 out of 5]

I am surprised to say this could have been worse. Had to read it for my EMBA class and there are some very interesting concepts in here. Not sure the book really helped me understand them better; I felt like the authors were showing off their innate understanding of the concept without really explaining it. Also, the genre of "business fiction" is still a generally bad idea and this book fits the mold of being a poorly executed piece of literature. Not fun to read.

[Antoine Bordas · Rating 4 out of 5]

Très bonne lecture sur une transformation lean, génial pour comprendre comment mettre en place une stratégie lean. Je trouve que l’histoire entre les personnages autour apporte de la confusion au cœur du propos et beaucoup de banalité.

La séquence de mise en place :
- gérer les problèmes de qualité et impliquer les ingénieurs dans la résolution de ceux-ci,
- mise en place d’un flux continue avec peu de variation, centre sur le gold - la valeur pour le client
- standardisation des tâches
- start pulling : mettre en place la vitrine du magasin, leveling avec un heinjunka
- kaizen jour et nuit et inspection des sujets de qualité

Les règles du kanban :
- je retire dans le shop stock du process d’avant
- le process precendt ne produit que ce qui est nécessaire (pas de surproduction)
- rien n’est passé en dehors du Kanban
- 0 problème de qualité
- réduire les nombre de kanban au fur et à mesure

[Johan · Rating 5 out of 5]

Really an excellent read in terms of the experience of Lean transformation (even if fictional) and provides an honest reflection of what it entails beyond the tools implementation that is often flaunted.

Change is hard work that only rewards those who are willing to the price. I suspect that this story also touches on the truth that ultimately true Lean transformation starts and ends with the owners / leaders taking ownership.

[R. Jason Barnes · Rating 4 out of 5]

This is one of the better Management books I have read. The recessed economy is moving more and more companies to Lean Management turnaround and the Novel format of this book make Lean easier to understand. Good for any business owner or someone in management for a manufacturing company. Great Read!

[MrsEnginerd · Rating 4 out of 5]

Lean has been a subject ingrained to me in every aspect of engineering and manufacturing design. It was the way one of my employers reshaped and transformed their factory floor to become more profitable and capable. This book makes the story of Lean application interesting and personable which is very hard to do for those not familiar with the subject. The authors manage to go beyond theory and the number crunching to excite the reader about lean turnaround, making for a very unique love story. It's able to capture high quality real life drama for the engineering types in a way that is straightforward and entertaining. The book's lessons are memorable and easy to follow. Definitely lived up to the hype.

[Jeroen · Rating 4 out of 5]

Another novella explaining lean.
I was introduced to lean thinking by reading "The Phoenix Project" which builds on the insights one might get from manufacturing. Then applies them to Software Delivery.
I found it refreshing to focus on manufacturing alone in this book, although I must admit that I was regularly trying to map things I read/learned to IT, often confusing me to no end :).
Amy, one of the characters, is a bit too smart for me. I had trouble keeping up with her. It took me about 70% of the book to make my coin drop on takt time...

I've enjoyed reading this book and would recommend it to anyone who deals with processes and is new to lean.

[Priyanshi · Rating 4 out of 5]

What a book! I’m still confused about a lot of things, but I think this book helped me grasp the overall concepts of lean. Definitely worth reading! Makes me wonder why an entire semester course has not been based just on this book. It would make for a great, in-depth learning experience, especially when supplemented by insights from the instructor and additional readings to understand the theory. Operations seems like such an interesting field.

[Sindre Dyngen · Rating 5 out of 5]

Great book for me because I read many Lean books in the past which did not exemplify the interactions that occur between people. Meaning arguing, insecurities, etc..
But this book does. It gives you a made up example of how Lean can be implemented and all the troubles that can go with it.
It also shows how hard and imperfect it can be sometimes which I also really like, because real life it very rarely goes as a fairytale

[Memphisjay · Rating 4 out of 5]

Dit is natuurlijk geen roman maar vooral ern stappenplan hoe je binnen je bedrijf verbeteringen kunt aanbrengen op de werkvloer en mentaliteit van de mensen volgens de principes van lean. Theorieën worden vaak beschreven en door de verhalende vorm leest het lekker weg. Zeker een aanrader als je in in een productiebedrijf werkt.

[Drew Allen · Rating 4 out of 5]

The concepts of Lean that are taught in the book are excellent and can be applied to any business beyond just manufacturing. Teaching these concepts through a fictional story was also a great way to relate the ideas and methods to my own business, however, the dialogue between characters was very soap opera-ish.

[Douglas M Turnbull · Rating 3 out of 5]

A pull tool...

The human side of a lean story pulls the reader in, threading the tools into the process rather than just introducing a tool book. Well constructed and engaging.

[Melanie Walker · Rating 4 out of 5]

A fictional story that introduces lean thinking in an easy-to-understand format.

[Colleen · Rating 3 out of 5]

Required reading for an MBA class. As such, it was a pleasant read and I enjoyed the "subplot" mixed in with the examples of lean principles.

[Lisa · Rating 3 out of 5]

Read for work.

[Ignacio Escobedo · Rating 5 out of 5]

Easy to read and good examples

I like the book and has several key concepts that you should us immediately. It helps to clarify several concepts even though is not an in depth treaty

[Pieter · Rating 5 out of 5]

Intresting

[Sander Dijkman · Rating 4 out of 5]

Fijne manier om door lean heen geleid te worden. Heb dit boek moeten lezen voor een cursus en elke dag na werk keek ik ernaar uit om deze weer op te pakken.

[Cyril Danthi · Rating 4 out of 5]

author has used the story telling concept to create awareness on lean. The best part is someone who wants to implement in manufacturing the story telling will be useful. this is basic.

[Bob Wallner · Rating 5 out of 5]

If I had to sum up this book in only one word...."WOW".

I have had The Gold Mine on my reading list for as long as I've had a reading list, but because it wasn't about one particular tool that I wanted to learn about, it kept getting pushed to the back shelf. This was a mistake. The Gold Mine discusses the main reason lean initiatives succeed or fail....people.

Written in novel format the authors' take you from the point of a company barely keeping their head above water step by step through a turnaround to a company that produces money! Through the process the owners of the company are faced with many challenges and hard decisions. The biggest of all is that they do not have all the answers. Their coach, an irritable but seasoned Lean veteran, shows that he cannot "do lean" for them, they must do it for themselves and grow their own leaders. He guides them on how to work with people, but does not outright tell them what to say or do. He introduces them to many of the tools of a lean transformation, but keeps reminding them that it's the people that matter.

I see so many parallels with this book and many places I have worked at. The major difference between those companies and the ones I have worked with is that top leadership in the novel doesn't pretend to know what the right thing is to do. They are willing to learn.

Seems to me in today's world companies want to hire in "experts" with all the answers. Too many of these "experts" are unwilling to continue their learning. Maybe they think it is a sign of weakness. Maybe they had to sell themselves so hard to the company that they convinced themselves that they are experts.

I would strongly recommend this book to anyone in a leadership role. I also feel that any student going for their MBA should be required to read this. This book offers a better picture of what running a business is like than any text I've encountered.

Final word - I compare every business novel to Goldratt's "The Goal" ....The Gold Mine is equal level.

[Sam Motes · Rating 3 out of 5]

In the vein of Goldratt's "The Goal", "The Goldmine" is a business novel that uses an old sage to teach the ideas behind Lean as he helps and unenlightened group learn and evolve. Helped to give some of the ideas in "The Toyota Way" and other lean how to books some real life examples through a storyline pulling the characters through a Lean turn around. Talked extensively about Taiichi Ohno and other fore fathers of Lean, but also touched on many of the ideas from Ford, Taylor and others that helped to lay the ground work for the Lean movement

[Sanjay Gupta · Rating 4 out of 5]

Nice view of lean tools in a manufacturing environment. Written in the form of a novel it tells a story of lean transformation with tools discussed in the storyline. You may want to pick up the instructors guide as well since it structures the concepts explicitly instead of embedding them in a story. The idea of Senpai/Kohai in a traditional Japanese way is discussed.

[Bruce Thomas · Rating 4 out of 5]

I had to read this book for work and it was a great blend of fiction and LEAN principals. At times I got bored with it but overall the concepts of LEAN that they were trying to get across stuck with me.

[Mike Thelen · Rating 5 out of 5]

The Balle books are absolutely some of my favorites. They are written as novels and do an exceptional job at sharing that process of learning by doing, making mistakes, and understanding how a lean transformation takes place.

[Daniel · Rating 5 out of 5]

Listened to this as audiobook after I ran out of some others for no reason. I did not read a word on it before getting into it. Now I believe I could get a struggling company back on track with lean production :).

[Aj Kakade · Rating 5 out of 5]

Great way to put. Lean Info is close to TPS.

[Michael Fruergaard · Rating 4 out of 5]

340p- 17-07-2005

[Ziad Khashram · Rating 5 out of 5]

A first novel about lean transformation that I came across, with a twist of fiction just enough to keep a balance between pleasure and business.

[John · Rating 5 out of 5]

Lean concepts in novel form

[Elizabeth · Rating 3 out of 5]

I'm developing an appetite for business novels. Not fabulous writing, but better than "The Goal."