The Seventh "S"

[swearman]

The Seventh “S”
Sort, Set in Order, Shine, Standardize, Sustain, Safety, and SURVIVE
The Importance of Lean Manufacturing during Times of Economic Downturn

It is difficult to see the real benefits of Lean Manufacturing when times are good. Sure, the floors are clean and tools are all in the right place, but how is this helping the company and the customer? Lean Manufacturing is so much more than what can be seen from the surface. Lean Manufacturing is the next step in the evolutionary process of manufacturing methods. Henry Ford pioneered mass production over one hundred years ago and it was revolutionary during its time. However, the world is a much different place today than it was then. The world moves at a faster pace than ever, and manufacturing companies need to stay ahead of the curve in all aspects of their business.

Many companies in the United States and around the world have been through one economic downturn after another, and in some way managed to survive. It has not been easy however. As the number of customers goes down, so do profits, the workforce and morale. What if there was another way? What if there was a way to reduce the impact of falling sales that would allow the company to prosper even during the bad times?

Employees:
You may have seen “Lean” or “5-S” in the past, but it really did not make sense. It was just another one of the corporate directives that was shoved down your throat for six months or a year and then forgotten about. It brought not real value neither to you as an employee, or to the company from what you have seen. When times got tough, it went out the door like your friends who were laid off for weeks or months on end.

Remember all the talk about pulling product from one process to the next instead of pushing it? Using the tools of Lean Manufacturing should be the same way. As times get tough and customers stop buying product, everyone needs to pull together and use these tools in order to reduce waste throughout the company. At home, when money is getting tight, you find ways to reduce the amount you spend. Lean Manufacturing is the way that companies can save millions of dollars, which in turn, protects the customers and the employees.

Lean Manufacturing brings so many things together. It allows the employees of the company to provide their customers to the highest quality product every time. You, the employees are the ones that make it happen, who work every day to provide the customer what they want, when they want it, how they want it. Lean Manufacturing enables the company to make the product faster and more cost effectively, which is crucial to the survival of the company through the toughest of times.

Managers:
You really have a difficult job ahead of you. Top line sales keep decreasing, budgets are slashed, headcount is reduced, and yet you still are tasked with making Lean Manufacturing a reality. All these things seem terrible. They mean that you will be forced to become more efficient, because you will be expected to do more with less. Wait a minute. Have you heard of some method of doing more with less? That is right; following the principles of Lean is the answer for making Lean Manufacturing a reality.

It will not be easy however. Building a Lean organization means that you will need to empower all of your employees to make decisions everyday. Building problem solving teams that are self-guiding will be a struggle, since you will not have full control of them. Organizational silos will need demolished, and power diffused. An entire culture needs developed and nurtured, one that promotes teamwork, cooperation, and trust.

Everyday, make a commitment to work on the company, not just in it. When processes do not work, fix them. When a business model does not make sense, speak up. It is all to easy to keep the status quo, but true growth will come by questioning the internal workings of the organization and changing them if needed. If you always do what you have always done, you will always get what you have always gotten.

It is in times of economic slowdown that Lean Manufacturing can make its largest gains. The dramatic savings that can be brought about by eliminating waste and streamlining processes will make a huge difference throughout the organization. It is crucial for the survival of manufacturing companies to be able to offset the loss of sales volume by becoming more efficient, or Lean. Everyday, be a part of building a lean, efficient, engine of growth that will not only survive the hard times, but will be a powerhouse of the industry on the other side.

Michael Swearman
Carlisle, PA