Deploying Lean as Strategy Can Transform Organisations Towards Success
Very few companies and their promoters see the full potential of implementing lean to transform their organisation towards world class. Most of the traditional managers even see this as manufacturing thing and delegate to some one down the line to lead.
They also believe that implementation of lean as expense and not as investment and expect immediate returns in terms of ROI and payback. This results in focussing on cost cutting rather than cost optimisation. One of the common victims from this is removal of people who are mainly shop-floor associates and value adders. Eventually, organised resistance for Lean implementation starts which is not warranted.
Key focus on Lean implementation is to work on creating value and not on cutting costs. Also leading the way forward and not managing the day to day fire-fighting, minimal time in meetings in conference rooms and more shop-floor observations – gemba is preferred.
For the success of Lean transformation, focus should be on creating right process to give right results through aligned work force. Looking only from results point of view and not process approach will not be effective. Having clear ownership of people from order receipt to execution is important.
Related Article– How Lean Transformation is evaluated
Most companies work on silo system of departments which will be barrier for flow. Batch production should be gradually converted into continuous flow if not single piece flow with minimal waiting – wip between stations. The reason for presumed need for high batch sizes such as change-over time also needs focus. Minimizing spaghetti in material flow will also help in improving material flow and cost of operations through minimizing handling.
Key results from Lean implementation are as follows:
Improved customer delight and loyalty
Increased business revenue
Improved bottom line – EBITDA
Reduced need for investment
Better utilisation of talent
Reduced need for inspection
Faster product development
In order for success through Lean, the leadership team has to commit themselves to key principles that will serve as foundation and base for the transformation. Lean should be strategic thing to transform the organisation and not as one of such events. Most of the people consider strategy as a big thing or big picture or big idea and not considering Value adding as part of strategy. By using Lean thinking to improve process, reduce lead time, improve quality, lower costs, better customer service, freeing up working capital through reduced inventory all comes under strategic initiatives.
Moving to lean helps in execute that that are important to organisation and customers faster and more economical than competitors. Lean cannot be one of the things in organisations. It must be foundational core of every thing organisation is trying to achieve.
Seven Steps Business Transformation Systems is in the field of helping organisation in their journey of excellence. We have lead many turnaround projects as Lean consultants, TPM Consultants, TQM consultants across India and abroad. Our Head office is in Bangalore. However, we operate from Pune, Mysore, Hosur, Ahmedabad. We have worked with our customer locations far and wide such as Gurugram, Delhi, Neemrana, Pant Nagar, Calcutta, Chennai, Shimoga, Hosur, Sri Lanka, Dubai, Saudi Arabia, Visakhakapatnam, Hyderabad, Erode etc.,
We have consultants who are specialized in deploying best in class practices and have in depth knowledge on application of various lean methodologies such as Value Stream Mapping, Kaizen, Total Productive Maintenance, Total Quality Management, Theory of constraints etc.,
We also conduct various training programmes related to Operational Excellence and Business Excellence such as Policy deployment, Balanced Score card, Kaizen, Lean Experiential Learning, Lean Six Sigma Green Belt, Lean Six sigma black belt
We work with multiple industry sectors such as Automotives, Equipment manufacturing, defence products, pharmaceuticals, Aerospace components, high precision manufacturing, apparel to name a few.
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