Lean is a way of thinking. It is a journey that is never over. It is a system framed in a collection of rules and principles. Current conditions and criteria must be examined. Some of the following 10 criteria may be more important than others to consider at the different phases of lean transformation.
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How lean transformation is evaluated converted
1. How Lean Transformation is evaluated
Business Excellence Consulting Companies
Lean is a way of thinking. It is a journey that is never over. It is a
system framed in a collection of rules and principles. Current
conditions and criteria must be examined. Some of the following 10
criteria may be more important than others to consider at the different
phases of lean transformation.
1. Creative Tension
Typically, tension carries a negative connotation. It is associated with
headaches and difficult circumstances. When a company is pursuing
lean, however, tension is a good thing. In fact, the urgency for lean
and its introduction into an organization is always easier when a
company is struggling—when there is sufficient tension—than when it
2. is doing well. The real challenge is to get organizations to embrace
lean in good times.
To develop tension, not stress (stress arises out of hopelessness), a
company needs to develop and articulate a clear vision of the ideal
state’s characteristics. Then it must contrast that against a deep
understanding of its current state and define the gap. It does not
matter how well a company is performing because there is always a
gap. The gap creates the tension.
For example, to instill some tension and a sense of urgency for
introducing lean, a presentation was given to the senior leadership
and management staff of a building materials manufacturer. After
hours of discussion, it was clear the presenter failed. The company was
experiencing healthy profit margins; its market share was growing; and
it was practically debt-free. It was not until the company’s ideal state
was defined and its leaders witnessed choreographed plant tours to
reveal the current state that they recognized the gap. The tension
was immediate and the leaders’ response was decisive.
2. Go for the Pull
If tension helps spur momentum for lean, it is best to capitalize on that
momentum by engaging champions predisposed to recognize the
tension. An entire company cannot be taken on all at once. So, start
where there is a “pull” for lean rather than trying to “push” it in
another area. Most organizations start lean in their production areas
where the effort is highly visible and likely to reap the most
benefits. However, when determining where to start, it is often best to
evaluate where there is the greatest pull. Look for a champion,
sponsor, or compelling business need.
3. As an example, a major gas and electric utility company started its lean
efforts in the finance area, because that is where the champion and
the pull existed. Lean eventually spread to its power plants, service
centers, and other parts of the company.
3. Leadership Involvement
There are no better champions and no better advocates for pull then a
company’s leaders. It is ideal to have senior leadership actively
engaged in the lean journey, not just sitting in a seat, but also driving
the vehicle. Unfortunately, senior leadership typically delegates the
responsibility of guiding the lean journey to others of lesser authority.
Even though there was a sponsor in the gas and electric utility’s ranks,
it was difficult to engage senior leadership on the journey in the early
stage. To implement and institutionalize lean, activities and structures
at the management level were developed. This elevated the value and
results of lean to senior leaders, and today they are active and
effective in leading the utility on its lean journey.
4. Business Conditions
Business performance will determine what “gear” a company is in as it
moves forward in its lean journey. If a company is in survival mode or
is under extreme pressure to immediately improve performance, then
leadership should focus on the immediate application of lean tools
such as Kaizens, waste elimination, or Five S. Development of a lean
culture may be put on the back burner for better times. If the climate
is competitive pressure and recognition of the need to improve, a
company should begin with the tools but in parallel, work on changing
the culture to sustain and continue the improvements. If a company is
4. in growing, flourishing industry that is facing little pressure, then it
should work specifically on developing the lean culture and apply the
tools as a manifestation of the culture.
5. Baggage
“Baggage,” refers to the bad taste left by past unsuccessful
organization initiatives. A company often overlooks this when it
begins to design a lean approach. It does not make any difference if
the baggage is real or perceived; it should not be ignored. Baggage
may include past corporate initiative activities that resulted in layoffs
or failed to satisfy expectations. It may also encompass the “flavor-of-
the-month” syndrome. The organization’s people may be primed to
“wait it out or wear it out” until the latest initiative—lean
transformation—fades as well.
6. Culture
Consider the cultural makeup of a company. “Culture,” does not refer
to the “lean culture” to which a company may aspire. Rather, it is the
unique traits and characteristics of the people within the
organization. Are there particular sensitivities to consider, such as
language? For example, multilingual training and development
materials may need to be offered. There also may be literacy issues.
For example, at an aerospace supplier some basic lean tools were
presented in expectation of significant results as the company had
many ripe improvement opportunities. After less-than-stellar results,
it was realized that there was some basic reading and math
deficiencies to address.
7. Resources
5. Ideally, a company will want the resources available to develop and
dedicate certified lean specialists to business units, plants, or specific
areas. “Certified” means they are proven to have reached some
specified level of proficiency as determined by the company. The
importance of this is to establish a common language and a common
lens for those who are driving the organization. The specialists can act
as internal consultants to teach, facilitate, and help direct lean efforts.
However, competition for resources or the relative size of the
company may result in the addition of lean to someone’s current
responsibilities. Regardless, resource availability or constraints must
be considered when designing the approach.
8. Integration
More often that not, a company introduces lean either during or after
other continuous improvement initiatives. This can cause confusion
between initiatives such as lean and six sigma. One should not replace
the other; they should complement one another.
One lean implementer likes to explain lean as, “…the systems you need
to fight the daily fights and manage the war. Six sigma, on the other
hand, is the tool you need to storm the beach.” No matter how it is
looked at, an organization must see lean as a complement to the
initiatives in which it is engaged. Lean must be perceived as the
vehicle to take an organization to new heights. Successful efforts
should not be negated. Lean should be used to leverage a company’s
effective efforts—not replace them.
9. Measurement / Evaluation
6. Measurement/ evaluation systems dramatically influence
organizational behaviors. Unfortunately, the resulting behaviors often
conflict with the desired behaviors of a lean initiative. A company
should carefully look at what it measures and evaluates, and who is
accountable.
At a major automotive parts supplier, direct labor was the Holy Mantra
: “drive out direct labor and you will be rewarded.” The easiest way to
drive out direct labor was to automate processes, so that is what the
company did. After closer examination, however, the company’s
leaders realized that costs actually increased because of downtime,
scrap, indirect support, inventory, and other issues. The point is not
that automation does not have a place in lean: it absolutely does. The
point is the measurement drove the behavior, which is not the best
lean practice.
10. Vocabulary
Vocabulary may seem like an unimportant consideration, but jargon
can be confusing. Employees of organizations become increasingly
confused as leadership introduces one initiative after another—the
flavor of the month. If a company has a “process excellence” initiative,
the title should not be changed. Instead, it should be integrated with
the rules, principles, and practices of lean. If a lean concept is
introduced, but there is already an existing word with the same
meaning, keep using the same world.