Saturday, October 13, 2007

WHY LEAN FAILS

Leanovations has successfully worked with many manufacturing companies to implement a Lean transformation, after they have struggled or failed multiple times with their lean journey. Hiring the right coach is an important part of a successful journey.

Companies that fail usually do not understand what Lean really is. Lean focuses on eliminating waste in all the enterprise processes, thereby reducing costs and expanding capacity creating new profitable growth opportunities for the company. It is not about eliminating people, rather it is about involving all employees in improving processes, product quality and customer satisfaction (internally and externally) so you can profitably grow the business.

So why does Lean fail? The current company culture plays the biggest part in the successes or failures with a Lean Transformation. There is no one magic “step by step” cookbook for Lean. Although many consultants may want you to think there is. Each company has a specific culture, organizational structure and performance needs and at Leanovations, we tailor our approach to establish a transformation process that will work for each client, but be aware Leanovations mantra is to apply “Constant Gentle Pressure” for Lean Transformation success.

Leanovations has found 10 major reasons why many companies fail at Lean.

1. There is No Strategic Deployment Plan with Breakthrough objectives for the company to focus on (It is like taking a trip with no map or plan)
2. There is no formal Plan – Do – Check – Act process in place
3. Expectations, Accountability and Results (EAR) are rarely shared/known
4. People are not motivated because they do not understand the urgency for change (no vision of what “great looks like”)
5. Managers do not enforce a structured process to Lean, nor do they see their role as roadblock removers. Managers must start each day of a Lean journey by living “If it is meant to be, it is up to me”
6. Companies truly do not involve and empower their employees
7. A standard process (standard work) for “how to complete a task” is not established, therefore you cannot improve on a process that does not exist
8. There are no “Internal” supplier/customer measurements to see how one department’s actions/performance is affecting another department
9. Visuals are not used. Visuals will expose problems, or opportunities to improve (In the office as well as the factory) Office functions need to use visuals to indicate the health of a process rather than use computer systems.
10. At the first sign of trouble (and there will be some) the tendency is to revert to the old way, and then the blaming process begins. At this point it is most critical for managers to re-read #5 above.

If you are interested in learning more about how Leanovations may help your company with a Lean Transformation please contact us at: info@leanovations.com, or call (860) 479-0293. Please visit our website at http://www.leanovations.com/.

Connecticut's Lean Aerospace and Defense Initiative (ADI)

Leanovations, LLC is a Registered Lean Service Provider for Connecticut’s Aerospace and Defense Initiative (ADI).

If you are a Connecticut company who has obtained $500,000 or more of defense or aerospace manufacturing contracts over the past two years, and are interested in implementing Lean Manufacturing, you may be eligible to participate in Connecticut’s Aerospace and Defense Initiative (ADI), and receive up to 50% reimbursement of the costs for Lean consultant services from Leanovations.

In keeping with the State of Connecticut’s Next Generation Competitiveness Strategy to help Connecticut suppliers achieve world-class productivity, the Connecticut Aerospace and Defense Initiative was created. The State of Connecticut, through the Department of Economic and Community Development (DECD), made available $2,000,000 to assist companies in the introduction or continuation of Lean manufacturing techniques within their organizations. Companies can receive up to 50% reimbursement for the costs for Lean training and services supplied by a Registered Service Provider such as Leanovations.

Connecticut Center for Manufacturing Supply Chain Integration (CMSCI) administers the Aerospace and Defense Initiative (ADI) and qualified Leanovations, a consultant company with extensive international experience, as a Lean Service Provider for Connecticut companies in the aerospace and defense industry.

Leanovations focuses on lean and innovations, assisting businesses in developing solutions to create profitable growth, through lean operational excellence and to re-invent themselves through new products or process innovations.

If you are interested in finding out more about ADI please contact Leanovations at info@leanovations.com, or visit our website at http://www.leanovations.com/ or call the office at (860) 479-0293.