Need a Recipe for Sustained Improvement?

Dear Steller Solutions,

I’ve heard you are an expert at Lean Manufacturing, a process improvement system with a lot of great press and results across the globe. I hired a consultant to implement Lean Manufacturing on one of my assembly lines last year. Frankly, I thought it was a lot of good ideas, but my employees on the floor were resistant to the change. After he left, we abandoned the changes and returned to our previous methods.

We must become more efficient and improve our customer service to keep up with our competitors and still make money. I'm not interested in spending time or money on something that doesn't work for my company. How can we make improvements that last?

Thanks,

Pete
Seattle, WA

For those of you who haven't heard of Lean Manufacturing, it is a streamlining methodology started in Japan with the Toyota plant and has been used to reduce errors, increase quality, reduce cycle time in manufacturing plants. Manufacturing companies have experienced 10-40% increase in profit due to savings from implementing lean. Lean is also applied to other industries such as hospitals and offices to improve quality and efficiency. So back to your question, John, you're not the only one that's tried to implement Lean Manufacturing and ran into issues during the implementation stage. I do believe that Lean Manufacturing will accomplish your business goals, but the "devil's in the details" as they say. Sometimes Lean Manufacturing is presented as a stand-alone solution, however it requires a broad leadership and organizational effort. An experienced consultant will help your management team lead your company through the change processs. That;s why it's important to have a consultant that is experienced at coaching your management team and will stick with you through the implementation to insure that you get the results you are counting on. All that being said, I do think you will get the results you want and need to be competitive by laying the groundwork for a successful lean implementation. This is where our expertise is different, and frankly a lot more successful, than most other consultants. I offer the following ideas that should help in the situation you've described.

Whenever you are making a change in your business, especially a big one like this, you must establish a sense of urgency for the changes. Everyone in the organization must understand that being complacent, or continuing to do things the same way, will undoubtedly lead to pain or failure. While you aren't aiming to discourage employees, this urgency must be clearly communicated, even daily, until your whole team can recognize the reason for change.

The next step is to present a clear vision of the direction the organization must take to be successful. This provides your employees a path to achieve your vision. In this case, you hope to provide the best service in your industry at an affordable price. This should be presented in a way that energizes everyone on the floor. They must to feel like this solution is something they need, and something they can be part of creating. As a result, they can share your commitment to change.

Implementing Lean Manufacturing is, in our opinion, the most effective means to achieving the change you describe. When implementing lean, we first present the service metrics and efficiency metrics that you have currently. This helps everyone understand the current system, which they've already agreed needs to change. We then help you explain the new metrics, to underscore a clear vision of the desired results.

The next step for leaders like you is presenting a detailed plan for the vision. This is critical, as it links the process to the desired vision. Some lean consultants and companies start at this point, usually with discouraging results. While we do believe that lean is an effective and powerful tool, we can't underestimate the importance of buy-in from everyone in the company. As a leader, you must believe in your own vision and the path you have outlined, and this plan must be more that just slogans. It must be reinforced clearly and concisely, so that everyone understands and embraces it. Subsequent actions and measurements must closely follow the vision. Without solid communication, people become confused and return to the familiarity of old habits. When everyone in the organization is excited about the vision, they are willing to put forth the effort needed to implement the changes. Together, you can implement a solution that supports your vision.

As changes begin, we encourage teams to celebrate throughout the processs. Recognizing improvements reinforces the commitment of your employees and keeps everyone focused on the vision. It is important not to think of the process as "finished" just because Lean Manufacturing processses have been implemented. The new procedures have to be documented and followed through consistently by everyone. This is hard work because it requires changing habits and stepping out of the "comfort zone" of the past. Your own willingness to listen is incredibly important for success. The employees that are in the trenches, so to speak, can (and will, if given an opportunity) tell you the obstacles and frustrations they face every day. Solutions to these obstacles will ensure that your vision and your LEAN implementation reach their full potential. As the leader, you must personally champion the vision and celebrate success, so the changes become woven into the culture of your company.

As consultants, we partner with owners and managers in each of these critical steps: determining the reasons for change, building a commitment to change, defining a clear vision of desired results, implementing a solution that supports the vision, and changing the culture of your company. You have good ideas for your business, and there are effective solutions to the challenges you describe. Unfortunately, some consultants try to implement lean without taking the necessary steps for your company's success. We have seen its potential effectiveness, and we're experienced in taking companies through lean successfully. We hope you'll consider visiting with us to see how our approach will help you achieve your business goals.

Best wishes,

David
Steller Solutions

Reprinted from the August 2007 "Steller Ezine", an electronic newsletter of Steller Solutions that is full of FREE tips and resources for your business. Subscribe at www.Steller-Solutions.com