What are the biggest obstacles to an effective and sustained Lean initiative?

At the beginning of November, Bill Artzberger published a new book entitled Powering the Lean Enterprise: How to Streamline Operations, Improve Quality, and Gain Customer Loyalty, which introduces basic Lean rules and principles in a variety of simulated case studies drawn from the author’s professional experiences as a Lean coach, trainer, and manager. 

When I spoke with Bill this month, I asked him: “What are the biggest obstacles to an effective and sustained Lean initiative?” Here is his response:

While there are many things that can constitute an obstacle, here are three big ones to be wary of:

1. Rules before Tools! 

Lean tools are powerful aids to improvement. However, you must first understand Lean thinking and learn the key Lean principles before using the tools. This is the only way you will be able to select the correct tool (of the hundreds available) for your application and know how to correctly use the tool in your environment. Lean is not a tool or collection of tools, it is not a tactic or simple cost-reduction program; it is a way of thinking and acting for an entire organization. 

You must create an enterprise-wide customer-focused learning organization to be successful in creating a long-term, sustainable Lean organization. You don’t get “Lean” or get “Leaned out.” Lean is not a destination – Lean is a journey. The learning process is the key to process improvement and the key to Lean. This is the one thing you must know to be successful in your Lean journey. If you do not figure out how to do your job better, then your competitors will.

2. Intention/Action Disparity

Key systems or people can sometimes provide roadblocks to the success of the Lean program in an organization. Typically, this boils down to interpersonal issues. 

One example of this would be an organization where a handful of departments have adopted Lean methodology, but other areas have not. This can stymie the progress the Lean-oriented departments are striving towards. Another example of this might be an organization with political or leadership issues. If a leader at an organization acts in opposition to the Lean strategies or behaves in a way that builds roadblocks to the progress of those strategies, the Lean program will fail. 

The key to avoiding this obstacle is to ensure that all members of the organization are invested in the success of the Lean methods being implemented. This includes the organization’s leadership.

3. Sustaining Lean Methodologies

Even when organizations overcome the first two obstacles, it is very difficult to implement and sustain a culture change that spans the entirety of the organization. This obstacle might not be immediately evident, especially because many of the systems and processes might be running well. 

This obstacle most often affects organizations that decide to identify and train a few subject matter experts rather than investing in the whole organization to sustain the Lean culture. When a subject matter expert turns over, Lean systems start to break down. When organization leaders do not take the time to invest in developing the organization’s desire to improve, the Lean journey will start to lose momentum. 

This can be a constant battle for companies who make it to this point. It often leads to ebbs and flows in work management and system sustainability.

The only way to avoid this pitfall is for every member of the organization to feel invested in the Lean journey. This means accepting the fact that the Lean journey is a continuous development and learning process and embracing the work that comes with it. 

How long has your organization been involved in a Lean initiative? Is "Lean thinking" part of your workplace culture? Do you agree with Bill Artzberger's overview of the common barriers to success?

The Evolution of Product Development -- Has Lean Adjusted?

In October, Cécile Roche and Luc Delamotte published a book entitled The Lean Engineering Travel Guide: The Best Itineraries for Developing New Products and Satisfying Customers. This book explains many Lean Engineering practices in some detail and the best itineraries to develop better products, discussing the underlying intentions and offering advice for implementation. It includes numerous concrete cases that illustrate this part with case material drawn from the authors’ own experiences. In addition, there is a brief guide to where and how to get started.  

When I spoke with Cécile this month, I asked her: "How has Lean adjusted as product development evolves?" Here is her complete answer:

The power of the Lean approach is that it is based on two strong convictions. 

The first is that a company will succeed if it really takes care of the customers, and therefore offers products that will solve their real problems - Do the right thing!

The second is that the company will make money thanks to the ingenuity of its employees, which must be encouraged by the existence of organized thinking spaces. 

By doing this, you avoid the biggest wastes imaginable: products that don't sell, products that you don't know how to produce, maintain, or recycle at the right cost, and all the rework caused by poor choices - Do the right thing, then do it right!

The practices and tools of Lean are all geared towards answering this question: what are we doing to give our staff the means to understand customers properly, and the means to identify the waste caused by our misconceptions? This constant questioning, which always begins with "Do we know what we don't know?” is the best way of ensuring that we are constantly adapting to change.

To encourage this questioning, we must set up a system that can very quickly identify the gaps, knowledge gaps, and trade-offs that need to give rise to creative discussions and train people to solve problems using appropriate methods. It is the Lean system.

Lean is a dynamic approach. It's not about freezing practices in procedures that are excellent one day but already unsuitable the next, but about regularly questioning all changes (in the context, of technology, resources, skills, etc.) to assess their impact. This is what we call the Kaizen spirit. As Allen Ward said, "Instead of learning to surf, conventional organizations try to control the waves! This almost never works."

What do you think of Cécile Roche's thoughts on Lean methodology? Do you feel that Lean continues to benefit the changing face of product development? 

Managing Process Downtime -- What Are the Biggest Mistakes?

In September, Michael Beauregard published a book entitled Process Downtime Reduction: How to Minimize Waste from Breakdowns, Set-Ups, Supply Chain Issues, and Staffing Constraints. This book provides manufacturers the techniques they crucially need to keep their critical manufacturing equipment running correctly and efficiently – which increases production, decreases labor costs, decreases breakdown costs, and ultimately increases the bottom line. 

When I spoke with Michael this month, I asked him: “What are some of the biggest mistakes manufacturers make while trying to manage process downtime?” Here is his complete answer:

That is an excellent question. 

I think the biggest mistake manufacturers make with managing process downtime is that they don’t manage it – instead, they learn to live with it. They make longer runs so that they can amortize the cost of that long product changeover over more parts. They get the order out by working overtime at the end of the month. They buy more equipment than they actually need. Manufacturers are smart – they learn to adapt to survive, but often those adaptations are the fastest way to solve the problem now and not the most efficient.  

Another big mistake is not measuring downtime and where it occurs. As I wrote in Process Downtime Reduction, “Show me the data!” Many companies cannot. They have anecdotal evidence of their downtime. It takes about two hours to complete a changeover. They remember they ran out of bottles once two years ago so they are focusing tremendous efforts and costs to manage inventory at high levels when the numbers actually show that labor is their biggest downtime cause. They do not make a systematic effort to understand the downtime and where it occurs so they attack where they perceive the downtime problems to be and not the issues that cause the greatest amount of downtime. 

And a third big area is not getting the whole workforce involved. Well, maybe “involved” is the wrong word. They fail to change the culture of the workforce to be looking for wastes in the operation. They load and unload parts without thinking that the machine could have been co-extruding 10 minutes earlier if they hadn’t waited until the core had run out to notify the material handler that another roll of core was needed. 

Do you agree with Michael's thoughts here? How does process downtime affect your organization? What do you do to manage it?

Shop Floor Management -- What Are the Future Trends?

Earlier this year, Philip Gisi published a book entitled Fundamentals of Daily Shop Floor Management: A Guide for Manufacturing Optimization and Excellence, which explores the fundamental elements, management practices, improvement methods, and future direction of shop floor management. 

During a conversation with Philip this past month, I asked him: "What has changed regarding shop floor management? What is the current direction?” Here is his complete response:

The discipline of shop floor management has undergone significant changes in recent years due to advancements in technology and changes in industry practices. With the advent of automation and robotics, the shop floor has become more efficient and productive. Robots can perform repetitive tasks with a high degree of accuracy, speed, and reliability, which can help reduce production costs and improve product quality. Automation has also led to the integration of real-time data collection and analysis, enabling better decision-making. As I stated in my book, companies working toward excellence “can’t lose sight of the fundamental activities necessary to preserve what they have already achieved. This is the role of Daily Shop Floor Management (DSFM); to maintain operational performance while realizing and sustaining productivity improvements on the never-ending journey of operational excellence." 

The current direction of daily shop floor management is towards greater efficiency and productivity through the use of technology and data-driven decision-making. One of the key trends in this area is the use of real-time data analytics to monitor and optimize shop floor performance. By collecting data from various sensors and systems on the shop floor, manufacturers can gain insights into how their processes are performing in real time. This allows them to quickly identify and address any issues that may arise, as well as optimize their processes to improve efficiency and quality.

Another trend in daily shop floor management is the use of mobile devices and cloud-based applications to enable better communication and collaboration between shop floor personnel and management. This allows for more effective and timely decision-making, as well as improved coordination between different departments and teams. In essence, the goal of daily shop floor management is to continuously improve operations and drive greater value for customers, shareholders, and other stakeholders. This requires a commitment to ongoing learning, experimentation, and adaptation, as well as sustaining what has already been achieved while embracing new technologies and approaches.

What do you think of Philip Gisi's perspective on the current state of shop floor management? Does it reflect the changes on the shop floor in your company? What trends in shop floor management have you seen?