The number one question that I see coming up time and time again is: How to implement lean manufacturing? As many executive management teams and business owners are being forced by the economy to step back and take a look at their operations to see how they can improve their processes, reduce costs andÂ improve value for their customers.
The problem arises whenÂ companiesÂ are coming from the position of not knowingÂ anythingÂ about how toÂ implementÂ lean Â manufacturing principles into their business practices. Many will take a “do it yourself“Â approach, while others will drive organizational changeÂ at aÂ fanaticalÂ pace and at any cost. While both of these management approaches areÂ commendableÂ for their effort to move their organizations forward, it is a typical example of the polar opposites or extremes at both ends of the lean manufacturing implementation spectrum. It seems to suggest that implementing lean manufacturingÂ principlesÂ into your company falls into either of these twoÂ categories, “do it yourself” or “get somebody to do it for you.” Neither of theseÂ approachesÂ are the best forÂ achievingÂ sustainable long term improvement.
So, what is a good example of the typical and best methodology when it comes to implementing lean manufacturing principles? Here is a great article written byÂ Kim Do-wonÂ in the Korea Times News.Â Kim Do-won is a partner and managing director of Boston Consulting Group (BCG).
How to Implement Lean Manufacturing?
Companies typically progress through three maturity levels as they improve performance, build expertise, and enjoy the resulting benefits..
At the first level, companies should learn the basics. Entry-level lean practitioners are primarily seeking to eliminate waste in production. Their objectives typically include efficiency gains, cost reductions, improved quality, shorter lead times, and greater flexibility. Companies at this level understand the key lean tools and apply them at local factories but not consistently across the plant network. Through quick wins, they can typically achieve cost savings of 5 to 10 percent, for an immediate impact on the bottom line. Sustaining improvements over time and applying consistent standards across the network are the key challenges that companies must address in order to progress to the next level..
Implementing a lean production system is second level. Companies at this stage are among the top players in their industry. They are moving toward an integrated lean-production system that involves the whole manufacturing network. As a result, they can reduce value-adding costs (that is, all manufacturing costs except for raw materials and other inputs) by 10 to 15 percent, while cutting waste virtually to zero..
Companies at level three have a complete view of their non-value-adding costs. They have devised and implemented advanced techniques such as product segmentation and production & inventory strategy, as well as disciplined sales and operations planning (S&OP)..
The optimal production processes have been identified and leveraged using advanced tools such as bill of process (BOP). Most plants and overall equipment efficiency (OEE) levels meet global best-in-class standards. Manufacturing is a key contributor to funding growth..
Moving from one level of lean to the next can be difficult. However, organizations at all levels can create significant value by a continued focus on lean. Recently, weâ€™ve observed that many companies trying to get beyond level one or two have begun implementing shorter, more targeted and effective lean programs. And many at level three are deploying a broader range of advanced techniques….
I enjoyed reading this articleÂ becauseÂ it makes sense to me based on my ownÂ experienceÂ working with many client companies, that they do go throughÂ differentÂ levelsÂ ofÂ awarenessÂ and application as they move forward with their continuous processÂ improvementÂ procedures. I have pondered the question for many years and eventually developed my own structured system that defines how to implement lean manufacturingÂ principles into any business.
It is called “10 Steps to become a LeanÂ Enterprise“Â trainingÂ and implementation model. It takes an individual, group or organization through the necessary steps to implement a leanÂ cultureÂ that is capable of supporting sustainableÂ improvementsÂ over the long term. It also allows the management team to focus their resources of the right areas of the organization to get the best results in the shortest time.
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