Expecting More From 'Lean'

[Stephen]

RE: “Lean Results for Lean Programs: By the Numbers”

So, what is going wrong? Why are so many lean programs not measuring up? Perhaps the executives who responded to this survey simply expected more for their efforts. They see how Toyota continues to stay ahead, thriving even when the economy dives, when crisis strikes, or when gasoline prices spike beyond $4 per gallon. Going lean, it seems, should mean more than simply removing current wastes—excesses that seem to return again once the environment shifts again. For Toyota and other lean benchmarks, excellence continues during challenging times—along with new innovation and growth!

This isn’t simply anecdotal; their sustained excellence can be confirmed using hard data. When faced with some of the most extreme challenges, these firms produce consistent customer and corporate value. But despite the article's data that 73% of U.S. firms are implementing lean or Six Sigma, many companies still seem to find themselves struggling.

On the bright side, perhaps these executives have come to expect more; this might lead them to structure their efforts and measure progress in a way that better promotes this different goal of sustainable excellence. And perhaps this will help make the results of future surveys more optimistic.

[CI Guy]

In my experience with the organizations I have worked with the biggest hurdles I have seen are lack of understanding of what lean is meant to do, lack of patience for an effective implementation and not enough manpower to do it effectively.

Many executives learn what they know about lean through business contacts, while attending workshops or through an article they read. Most I've known have done little to learn anything beyond the surface. Often times this has meant that they do not know anything about lean except what benefits they are supposed to see.

At one point I was asked to be the "Lean Expert" in my company. A few weeks later I was in a meeting with the executives and heard my boss saying that he believed we would have lean implemented across one plant by the end of the year (this was in May and we had not started any yet). When I later told him that implementation went beyond introducing the tools and creating value stream maps he seemed very surprised that iwe would not be lean before December. I think the patience part ties back to the lack of understanding at times. I also think that management in today's world wants results now and that we're not willing to put a lot of effort into something if there's not immediate bottom line impact.

Also, the companies I’ve been with typically put one person in charge of "lean implementation" and have asked that person to direct the initiatives across multiple sites. The way the position is established in the organizational hierarchy they typically fall below, or at best even with, the plant managers they are asked to help push into lean. While position in the company should not impact the ability to get results it does help in getting cooperation, especially in the beginning when no one wants to do it.

My best results have come when I forced the group to go slow in the beginning. We spent quite a bit of time up front developing a Hoshin Plan that we could then use as a reference tool for the decisions we made down the road. The Hoshin served us well. It helps to make certain everyone is aware of what we want to go and how we want to get there.

[Stephen]

You make some very good points. My research shows that going lean doesn't necessarily have to be managed from the top (you seem to agree), but strong support and involvement from above is critical. Fostering a deep understanding at the executive level is therefore an important part of the transformation.

Perhaps when these executives see that lean is not something that is meant primarily for times of stability--and come to understand the advantages this approach gives companies during painful times like many face today--they will become more intent on learning what really makes it work.