5 fundamental points that organisations must agree on to succeed with Lean

Common misconceptions of Lean

Lean, however, is widely misunderstood, even amongst companies that have deployed just-in-time, kanban, 5S, and other Lean and Six Sigma methods. Manufacturers typically apply these methods under the false notion that the benefits of Lean can be achieved through a sequence of tool-based projects.

Lean, however, is not just a toolkit, but a comprehensive strategy. Breakthrough gains commonly associated with Lean - doubled capacity with existing resources, lead times reduced by 75%, near-zero defects – are only possible when Lean is practised company-wide with full support from senior management. Failing that, Lean delivers unsustainable gains followed by frustration and disillusionment.

 

The essentials of Lean strategy

The most important challenge for Lean practitioners, therefore, is to ensure that the fundamentals of Lean strategy are understood throughout the organization. Here are five points that companies must grasp before Lean can achieve its full potential:

 

1. Lean is a system, not a set of standalone tools

Most Lean tools – just-in-time, kanban, 5S – are familiar and widely used. They are not, however, designed to work independently. For example, if you implement just-in-time without creating flow in your production lines, you will run short of parts and materials. Establishing flow, in turn, depends on creating an orderly visual environment using 5S.

 

2. Lean requires cross-functional teamwork.

Lean organizations drive improvement through end-to-end customer value streams, with efforts often crossing departmental lines. Reducing lead time, for example, might require enhanced cooperation between different segments of manufacturing, such as stamping, machining, and assembly, and also, collaboration between manufacturing, R&D, and sales.

 

3. Lean KPIs are tracked daily on the shop floor

Lean utilizes measured as opposed to calculated numbers, with emphasis on shop floor metrics that track improvements such as shorter lead times, fewer defects, or the elimination of unnecessary steps and costs. Managers in successful Lean organizations can frequently be seen on the shop floor, consulting with their workers on new ways to drive improvement.

 

4. Lean changes the respective roles of workers and managers 

Lean challenges the notion that managers know all the answers and empowers workers to initiate workplace improvements. Workers must practice discipline around standards, exercise flexibility regarding their job duties, commit to long term learning, and develop a keen eye for waste in their processes. Managers must shift from judging workers and giving orders to listening, coaching, and leading by example.

 

5. Lean is a continuous improvement strategy that is all about people

Lean leads to the occasional big win, but it is mostly kaizen, the process of continuous improvement, that drives the organisation forward. Lean progress, therefore, requires an army of problem solvers – employees empowered to discover and correct thousands of instances of unnecessary work, defects, or wasted expenses. Employees in Lean organizations expect that there will always be problems to solve. As the saying goes, Lean is a journey, not a destination.

 

Here’s a summary of the five issues:

	Traditional Management	Lean Management
Lean tools	Used on their own on a project by project basis	Implemented as components of an interactive system
Organisational silos	Cooperation amongst divisions is negotiated on an exception basis	Customer value takes precedence over departmental divisions
Management focus	Managers lead from their offices based on management reports	Managers lead on the shop floor based on visual evidence and real-time measurements
Management roles	Managers judge workers and tell them what to do	Managers coach, develop, and support their workers
Long-term progress	Achieved through management-initiated projects with defined end points.	Achieved incrementally through employee-initiated continuous improvement activity

Lean for the modern manufacturer

These points challenge traditional approaches to management, and it takes considerable determination and persistence to win people over to this new way of thinking.

The stakes, however, couldn’t be higher. Adopting the Lean way of thinking may be the best opportunity a company has to find stability in today’s uncertain business environment. Furthermore, Lean takes direct aim at many of the issues – efficiency, adaptability, sustainability, employee engagement - that are already under discussion in many board rooms.

Lean is the logical answer for many of the challenges that the sector is facing. As the saying goes, Lean is “common sense, uncommonly applied.”