FINDING HOPE, despite the Doom & Gloom
With everything going on in the Global Economy, the US Economy, and on our own front door steps you don’t have to go far to hear about the doom and gloom of today’s businesses. I visit dozens of companies each year and have never heard so much bad news. People everywhere are losing their jobs, businesses are closing, and top executives are shifting their companies into survival mode. With everything that is happening around us what choice do we have? We have to find a way to survive, but is there another strategy that could give us long term hope, despite the short term problems most companies are facing.
Most companies are working on one of two things; first they are just trying to survive while they wait for the worst to be over. Second they are looking for ways to come out of this recession in a position to dominate the market place and grow. More and more companies are putting freezes on hiring, and spending. However there are a few companies investing in growth and training for the future. If you look at Toyota and the example they set for world class manufacturing they are still running plants, training employees, and getting ready for the next wave of growth opportunities.
Let me ask you one question. When do you feel the pain of investing in your company and its employees? Is it when you are busy working extra hours to get things done or when you are paying straight pay and have time to work on the improvements? How many days do we spend saying if I only had time I would do this or work on that. The truth of the matter is many companies have time right now, the question is do they have the commitment and courage it takes to work on improvements and develop business strategies for the future when times are bad. This is something that every company will have to answer for themselves, but let me give you some input that could possibly help with this ever so tough decision.
Lean Transformation isn’t a new concept; US companies have been implementing Lean and working towards eliminating waste since the 80’s. I think that everyone sees the value and understands why they need to improve. What I don’t think is so clear is why companies fail at implementing Lean? and Why does it takes so long to implement? I will take a look at each one of these questions to try and clarify why now is the right time to implement Lean or even reinvent your Lean efforts.
Why do companies fail at Lean Transformation? It usually ends with, “You just don’t understand my business.” Another common response I hear is, “We can’t afford to shut down the line to work on the Lean improvements.” Does your company have a compelling reason to change? Have you developed a plan, tied it to your business goals, and created long term sustainable results? Companies spend hours of time with non key employees working on surface problems and with basic Lean tools such as 5S, TPM, and waste elimination. They even have the occasional Kaizen event, and team focused improvements. But are we truly training everyone in the organization on the Lean concepts, tools, and creating the culture that it takes to make this part of everyone’s job. Have you taken the time to add Lean to your employee training programs, included it in Job Descriptions, and invested in making Lean part of the way you do business? Or is Lean truly a buzz word that you use to keep upper management or the corporate office from harassing you about improvements in your business. If Lean is truly something that changes the way you do business and is part of everyone’s job, then shouldn’t you invest time in all key employees and work on all parts of your business? Lean is not just a way to increase manufacturing efficiency. It is a way to grow your business and delight your customers. I know right now seems like the wrong time; but right now you have excess capacity, excess manpower, and a huge opportunity to gain market share and come out of this recession leading your industry.
Why do Lean implementations take so long? In the US you can find articles about Lean everywhere, each one with its own twist on the approach or timeline. Typically the full results show up 2-3 years down the road, with moderate gains and pockets of efficiency along the way. Despite most companies’ best efforts they don’t look across the organization and at all value streams to make improvements that affect the company in a positive way. Most of the time a group of people are trained and we send them back to the manufacturing floor to implement what they have learned. First problem with that is it is the implementation completely depends on how well those employees understood the training. By changing the approach to education you can give your company a dramatic advantage. Using a train and do approach gives your employees some hands on experience to solve the problems and eliminate waste in their areas. Just kaizen events alone will not get you true Lean benefits, you have to inspire your employees to submit ideas and become engaged in the companies’ efforts to improve. I have yet to see a company that read a book and found success implementing Lean. The second problem is sometimes we are so excited to work on one area of the company that we don’t see the full potential of the improvements we are making. Improving one process of a manufacturing line may only give you small improvements, and it may not impact the bottom line at all. In some cases you see a dip in profits because you have invested in training and there is a learning curve associated with the improvements. We haven’t implemented Lean; we have created a pocket of efficiency. With out Value Stream and an organizational wide focus we can’t predict the benefits from our efforts. It is very important to have a Lean Transformation plan, Strategic Leadership to execute that plan, a measurement system to monitor results, and a culture that supports company wide improvements. The decisions to improve those areas of your company that are critical are tough. It is painful to stop a machine that makes you money. It is painful to take those key operators away from their daily duties that make you money. I understand and trust me I have had some tough decisions myself. Directing companies and helping them make the best decisions possible for the future takes a proven approach. Companies have found great success using external consultants. They bring a proven systematic approach with proven results. Don’t miss your chance to position your company to dominate the market place. As companies go out of business and the economy recovers customer demand will go up. Who will sell products to those customers? Less competition, more market share and revenue.
If you are interested in a Lean Transformation audit or a Business Assessment, send me an email or give me a call. I would be happy to help you structure a plan and show you how to execute it. This is the time to capitalize on Lean improvements; you have the time and resources to get it done faster than ever and make this part of how you do business not something extra. I challenge each of you to go around your company and look for opportunities for improvements? Look at your competition are you the one waiting around? Go and see for yourself if the time to get Lean is now. If so get started today, tomorrow never comes… I truly believe failure is not an option; Utah will come out of this recession stronger than ever.
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