Thursday, October 25, 2007

The Roadmap To Lean

Lean Manufacturing is being utilized by businesses of all sizes today. Although it took a few years to become mainstream, the success stories from mid-size to large corporations have pushed lean manufacturing down to very small organizations.

Most of the large corporations employ a few lean experts. Many mid-size and most small businesses do not have lean manufacturing expertise in the company. It is common that a few individuals have attended a lean manufacturing seminar or read a few books, but lack the expertise to develop a roadmap.

The reason most courses and seminars do not teach a “roadmap” is because the tools are best applied to problems or bottlenecks, rather than forcing the tool use on the opportunity. For example, a machine that sets up once per week in 30 minutes probably doesn’t warrant a week of SMED activity.

However, a roadmap can be used with common sense. Lean manufacturing has been called “common sense manufacturing”, although not always “common practice”.

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Friday, October 19, 2007

Thousands Lose Jobs To Lean and Six Sigma - Is Yours Next?

Lean manufacturing and Six sigma are the most popular business improvement initiatives today. The word "lean" has the stigma of reducing headcount. Many professionals do not even know what "sigma" means. Unions and the work force in many companies fear the worst when they hear these initiatives are in the pipeline at their companies.

Lean manufacturing is based on eliminating all waste from the system. So, if a job is not necessary, it certainly should be eliminated. This does not mean the person should be eliminated.

Any lean manufacturing system based on reducing headcount and forcing people out of jobs is doomed to fail. First of all, it's not right. Secondly, it doesn't work. People simply will not work themselves out of a job.

Lean manufacturing attempts to eliminate all waste. When it happens correctly, when the waste is enough activity to absorb an entire employee, that person is moved to add value. If all of the value is already absorbed into the system, the person becomes part of the improvement effort until the system creates enough value and growth to absorb them.

For example, a person displaced as a result of lean manufacturing may be placed on a 5S or kaizen team until the company grows enough to place the person in another value spot.

Lean and six sigma initiatives will help a corporation grow. When companies make a commitment not to eliminate positions, people will find a way to enhance and grow the system.

There are many examples of companies properly taking waste out of the system and growing to heights previously untouched. Some of these transformed companies have developed new products and markets, creating a snowball effect. The leaner they get, the more growth possible.

When corporations build fear into the organization, the snowball is rolling up hill. Growth will not happen, and new products and markets are nearly impossible. Creating a sustained growth organization only happens when people are energized and align their minds and hearts with the vision of the company.

The Most Important Business Tool On Earth

The most important business tool isn't lean manufacturing, six sigma, or lean six sigma. It is trust. People cannot be manipulated with gimmicks, false promises, and half truths.

It takes a long time to build trust in people and an organization. It often takes a few minutes to lose it. People will trust someone that cares about them as a person, one that cares what they are doing and how they feel about it.

Before implementing any business initiative, if you are the specialist with the responsibility for the improvement, build trust first. Build it from your heart sincerely, or don't even attempt it.

A few questions should be asked of yourself before you begin a lean six sigma initiative, or any other business improvement process:

Do you believe most people want to do a good job?
Is the hourly worker as good a person as the executive?
Do you talk to the hourly worker like a person of equal status?
Do you ask the hourly worker for his or her thoughts?
Do you involve the hourly work force in your initiatives?

If you answered no to any of these questions, you should consider a different profession. People will work hard for someone they like and trust. They do not have to like every decision, but if you are not liked as a person, a position of influence is the wrong one.

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Sunday, October 7, 2007

Why Lean Manufacturing and Six Sigma Initiatives Fail

6 Reasons Why Lean Manufacturing and Six Sigma Fails

Inside the lean manufacturing community, there is talk of a few high profiles failures recently. There is a lot of discussion with the lean community regarding how this could happen.

Most of the real lean manufacturing experts understand the few reasons for failure. Although there could be more than listed here, the reasons are often very simple.

1. The expert isn’t really an expert

2. Lean manufacturing or Six Sigma tools are used to solve every problem -

3. The company does not devote enough resources

4. The timeline expectation is too short

5. Using the name Lean but not the principles

6. The business is beyond repair

The first four are only short term problems which can be overcome. A company can rid itself of the so-called expert and hire one. They can learn to apply other tools in addition to lean manufacturing tools. They can find, develop, and devote the proper resources eventually. The timeline expectation can also change with the right mind set.

If the business is beyond repair, it is probably not in need of a lean manufacturing implementation. It may need re-organization, financial re-capitalization, or a complete transformation. Whatever the business needs, it should happen before any continuous improvement initiative begins.

When a company needs a transformation, or specifically headcount reduction, this should be done prior to any continuous improvement initiative. Those in the lean community know this, but often are pushed to downsize the organization. It is critical for lean’s success to educate the executives to the problems with headcount reduction. Although it seems like common sense, some simply do not get it. People will not find a way to eliminate their job.

Although some may not agree, there is no silver bullet in business. Lean manufacturing principles, applied correctly in the organization, will do wonders. Six sigma initiatives also provide excellent benefits where applicable. But like all improvement methodologies, they are best applied to well run organizations searching for long term improvements.

One the largest reasons for lean or six sigma failure is forcing the use of tools to solve problems. We finally have the term lean six sigma, which includes both. Now we need a new term to include the other useful tools. Many lean practitioners do not understand six sigma, and therefore have no idea which tools they are missing. Conversely, many six sigma experts are not experienced in the application of lean manufacturing principles.

Lean and six sigma tools do not encompass every tool made to improve a business. Systems such as Manufacturing Excellence at least have a name that would imply any tool can be used.

Any initiative requires some minimum amount of resources. If the proper amount of resources cannot be devoted to the initiative, it is best to wait until the necessary resources are available. Without necessary people and time, any lean, six sigma, or other initiative will fail. Those doing the implementation will become frustrated, and employee morale will suffer. The initiative will become categorized as another fad of the month which wasn’t sustained.

It is also important to devote the time necessary to achieve and sustain improvement. Although some tools such as kaizen events lend themselves well to rapid deployment, the entire lean or six sigma initiative cannot outrun the organization. Both lean and six sigma initiatives are business changing initiatives, often resulting in major organizational changes. Businesses are run by people, and most can only handle so much change per time frame. Although this varies and may be altered as an organization learns to change quicker, forcing it will only cause chaos.

When consultants are utilized, it is best to spread out their time to allow the organization to absorb the change. Consultants can certainly throw more change and improvements on a company quicker than the company can digest it. Unless the organization can afford to have the consultant for a longer period of time, spacing visits is better than a rapid sequence of deployment.

Although there are a few main reasons lean manufacturing and six sigma fails, there are many more pointing to success. Thousands of companies are employing lean and six sigma today. Many of these companies have cut cycle times, reduced waste, increased productivity, improved quality, and enjoyed huge growth. If and when a lean or six sigma initiative fails, look at the reasons and change direction. The failure reason isn’t the tools or the initiative, but the application of them, business environment and circumstances surrounding it.