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THE LEAN PARADOX
Are only "lean experts" capable of leading an organization through a successful implementation? Our own studies suggest that lean CAN apply to any business - to any manufacturer, service company, educational institution, etc. We find no data to indicate that employing lean principles cannot be a very effective business model for practically any organization. Furthermore, we find the failures alarming - the benefits of lean are too important to allow poorly defined lean strategies or ineffective execution to continue to be the norm.
TRADITIONAL APPROACHES TO LEAN
Upon review of some of the more disappointing experiences with lean, we identified several "generic" complaints, excuses, and issues. Following is the typical list given as pitfalls or reasons for lean failure:
- Lack of management support
- Poor metrics
- Not enough training
- Resistance to change
- Ineffective communications
- Not able to sustain initial efforts
- No buy-in from supervision
- Not expanding improvement from the initial efforts to other departments
- No buy-in from workforce
Our Research indicates that many of these are the result of an inadequate lean strategic plan.
There are two significant observations with the above list. First, it could apply to any strategic initiative - from a business merger, to putting in place a new information system, and anything in between. Second, these aren't very specific - they tend to be symptoms of more deep-seated issues. Our research indicates that many of these are the result of an inadequate lean strategic plan. In order to help put these into context, let's review some of the more traditional approaches to starting a lean implementation.
5S. Many companies begin lean by employing a technique called 5S, or Workplace Organization. The "5" and "S" come from the five Japanese words; seiri, seiton, seiso, seiketsu, and shitsuke. The English equivalents (keeping the "5S" theme in mind) are: sort, set, shine, standardize, and sustain. Essentially, this is a process to organize a work area, focused on improving efficiency, safety, layout, and flow. 5S produces some immediate and obvious results. Workplaces are indeed better organized. Tools and materials are maintained in well-defined locations. Operators notice that their jobs become somewhat easier. Supervisors find that it's simpler to visually identify problems - inefficiencies, excess inventory, misplaced equipment, etc. And, there may even be a marginal increase in productivity. But, the benefits are difficult to sustain, improvements tend to be isolated, and impacts are difficult to quantify.
KANBANS
Kanbans. The word kanban means visible record in Japanese. In lean lexicon, it is essentially a signal to produce or move product. A kanban may be an electronic signal, an empty bin, a card, a pallet, or a defined area to hold inventory. Kanbans are used to manage inventory - quantify and flow. In the ideal lean world, product is "pulled" towards the customer, through the factory, from the supplier in quantities of ONE - hence the term one-piece-flow. However, in many circumstances, it's impractical to produce and move product one piece at a time. So, kanbans become a compromise; allowing the company to move small, controlled batches of material in a pull environment. The use of kanbans can dramatically reduce total inventory. And, since lead-time is almost directly proportional to work-in-process inventory (WIP), well-defined kanbans can provide a significant improvement in lead-time. But, there can be problems. Using kanbans without other coordinated improvements (such as reducing equipment changeover times) can back-fire, resulting in degradation in equipment utilization and even problems with on-time delivery. Also note that since kanbans are a compromise to true one-piece-flow, companies that have effective kanban systems sometimes become complacent and do not address the root causes that created the need to maintain inventory; long changeover times, imbalanced processes, long distances between work centers, quality problems, lack of operator cross-training, etc.
KAIZENS
Kaizens. Also known as kaizen blitz. This may be the most common starting point for a lean initiative in US manufacturing companies. Kaizen is the Japanese word for continuous improvement. This approach involves empowering work teams to rapidly (hence, the word blitz) improve specific problems within their areas of responsibility. On the surface, this seems like a very good idea, and it can generate immediate and measurable benefits.
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