|
|
|
Lean Leadership: A Tale of Two CompaniesAugust 1, 2007 Why do some organizations seem to find success on their lean journeys more quickly than others? Why does it appear that employees are eager to participate in lean at some organizations and are not so excited about lean at others? Based on my observations, I believe the single biggest factor in lean successes is leadership. Let's consider two companies, ABC Corporation and it's biggest competitor XYZ, Inc. Both of these organizations began their lean journey about 1 year ago, but one has found much more success than the other. Both companies put together "lean" core teams that were thoroughly trained in the Toyota Production System methodologies, and both had the same lean (outside) teacher, who performed the training and facilitated the first value stream mapping and kaizen activities at each. ABC Corporation, within the first few months, made substantial gains in productivity on the factory floor and reduced WIP by more than 80%; within the first six months, they had begun reducing finished goods and have a plan in place to reduce their FGI by 60% before the end of 2007. Employees at all levels were beginning to make suggestions for improvements and were asking when they would be able to participate in a kaizen event. The VP of Operations and factory floor employees are on a first name basis, and the VP of Operations has made a concerted effort to talk to employees about lean, it's importance to the company, and it's value to them as individuals. Not only did he do this in a formal setting, but he does this regularly on the factory floor. XYZ, on the other hand, has completed some kaizen events that have identified improvements, but the improvements have not "stuck." XYZ's VP of Operations, after 3 months, had considered halting the program because he believed that the employees were not ready for lean. In contrast to his ABC Corporation counterpart, this VP almost never visits the factory floor, and many of the operators are not even sure who he is. After studying both organizations, I've compiled a list of some examples of actions ABC's management has taken that have contributed to their success in contrast to those things that XYZ has done.
While both organizations had identical training and very similar business models, the results they achieved are markedly different. Leadership style and approach to lean are key to creating a lean culture. Without a lean culture, some success is possible; however, it is impossible to achieve the kind of breakthrough improvements you might read about in case studies. Click here to subscribe to our free e-newsletter Learning to Lean and receive three articles like this one each month. About the Author Darren Dolcemascolo is an internationally recognized lecturer, author, and consultant. As Sr. Partner and co-founder of EMS Consulting Group, he specializes in productivity and quality improvement through lean manufacturing. Mr. Dolcemascolo has written the book Improving the Extended Value Stream: Lean for the Entire Supply Chain, published by Productivity Press in 2006. He has also been published in several manufacturing publications and has spoken at such venues as the Lean Management Solutions Conference, Outsourcing World Summit, Biophex, APICS, and ASQ. He has a BS in Industrial Engineering from Columbia University and an MBA with Graduate Honors from San Diego State University. | |||||||||||||||||||||||||||||||||||
Send mail to
webmaster@emsstrategies.com with
questions or comments about this web site.
|
