Companies by going ‘lean’ can shift productivity and profitability into high gear |
Manufacturing excellence is on every manufacturer’s wish list. It’s that tight rope walk that ensures companies survive in this highly competitive market environment. Manufacturers are required to cut costs without jeopardizing the quality of their products. In such a scenario implementation of lean manufacturing would take the company miles ahead. The practice begins with a clear understanding of the core disciplines of lean and the term ‘value’.
Customers want value both in terms of quality and quantity of the products. Once the value is understood, all the work elements in the flow should be critically evaluated. Following are the five major lean principles: Specify what creates value from the customers’ perspective; identify all steps across the value stream; implement those actions that create value flow; make what is ‘pulled’ by the customer; strive for perfection by continuous improvement An ideal progress in being a lean organisation begins with streamlining existing processes. Organisations must understand that it is essential to engage both the workmen and managers in the streamlining exercise. While elements like 5S, visual controls, and mistake-proofing at the shop floor are rolling among the worker levels, managers need to align the entire value chain on lean principles like Value Stream Map (VSM), Just-In-Time (JIT), and Flow Manufacturing. Once activities are streamlined, the next step is to identify the right process that only adds value to the product.
An activity is classified as a Value Added, Non–Value Added (NVA) or Necessary Non–Value Added based on whether the activity adds any value to the product or not. While NVAs should be absolutely eliminated, activities recognised as necessary NVAs should be targeted for improvement. Necessary NVAs are activities that add no value to the product but are necessary because of the current state of the operations in the organisation. VSM gives a clear understanding of the activities in the process and the current VSM serves as a foundation for the future state map.
All management systems use specific tools and techniques to accomplish their objectives. Lean manufacturing comprises a large number of tools and techniques. Each and every lean tool and technique is associated with a specific objective and is expected to benefit the organisation only when used with the basic understanding of the lean principles, the organisation structure, and of course, the tools and techniques. Some of the important tools associated with lean are VSM, future reality diagram, process flow chart/ analysis, A3 reports, flow manufacturing, pull system, standardised work, automation, quick change-over tooling, and error proofing.
Implementation of lean manufacturing is a tricky task. There is no specific rule for implementing it. A customised approach needs to be adopted before implementing lean in any organisation. A revealing fact, however, is that companies that have embarked on improvement initiatives by hurriedly adopting a popular tool (such as Six Sigma, Total Quality Management (TQM), Total Productive Maintenance (TPM), etc) have almost always failed or have not realised the estimated benefits fully. Based on intensive research conducted across over 200 companies in Asia, this insight attempts to identify and put forth ‘what it is that successful lean implementers had done that other less successful ones did not’. In all, we have identified six factors that have had a significant bearing on the success of lean implementation.
These are critical factors that have a definite role in the success (or otherwise) of lean.
- Companies must establish strategic linkage of lean initiatives to business competitiveness, besides organisational capability
Before embarking on a lean journey, companies need to view it as a strategic tool, rather than merely a way of keeping the workforce engaged or as a “feel good” factor (a few companies kick off initiatives purely because key customers expect them to be doing it. On their part, these customers err in specifying that they need to see a particular tool deployed, rather than state the fulfillment of objective that is aimed to be achieved by deployment of that particular tool).
Companies need to identify customer value definition (understanding customer buying influencers and competitive positioning of own products as perceived by customer). Subsequently, the criticality of cost, quality, availability and/or innovation as competitive differentiators needs to be ratified by the management, and this then becomes the input to evolve a strategic objective to become lean.
- Be sure to have a well thought out implementable roadmap
Work well begun is half done! But what is the long term road map? And have you identified the implementation constraints? Successful implementers spend value time in the “war room”. A detailed roadmap is evolved; nature of cultural constraints
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identified and the option with the best chance of successful implementation is evolved.
- Lean champion is a mere facilitator of lean; not the owner. In addition, he/she has to have the qualities that aid implementation
A lean champion is a mere facilitator and a change agent. His/ her success is the result of collective cooperation across all levels of those involved. Most important is the commitment of top management. The above possibly constitutes the single largest reason as to why lean implementation fails. The management cannot delegate responsibility to a junior and the top man has to be the ultimate owner of the process.
- Minimise parallel initiatives and classify most of them under the lean umbrella (if logical).
In the zeal to launch and demonstrate its modernism, a management may be too keen to take on more than one initiative. However, this not only creates confusion among ranks, it also leads to a dilution of focus. Consequently, the organizational importance that is attached to such new initiatives takes a beating and then not many take these new initiatives seriously. Lean cannot be one of the many initiatives. It has to be a wellthought out mother initiative, under whose aegis other tools are deployed appropriately.
- Institution of rewards and recognition
Acknowledgement of good efforts of employees by the management goes a long way in motivating and sustaining toward a more involved participation. Lean projects usually do start well and enjoy reasonable success. However, when the efforts are not noticed and recognised, the spirit of implementation is dampened and gradually fades away over a period.
- Having forums for periodic appropriate communication
Possibly the most understated point, its effectiveness in keeping up the visibility of lean throughout the organisation is most important in accelerating deployment in the right direction. Communication forums ensure that all concerned personnel are kept excited at similar levels on the lean progress. In fact, lack of effective communication forums can be considered a significant reason for impending failure.
With many organisations looking forward to lean manufacturing as a solution to their current woes, it is very important to understand the concepts of lean and implement them in the correct way. The key factors to successful lean implementation are workforce empowerment and involvement of the personnel in the organization of lean manufacturing.