Getting Started We are asked frequently by companies how to get started on the path to receive the types of benefits as those described above. There appear to be so many things to consider: staffing, training, suppliers, cell design, technology, etc… Common questions are:
• Which area should be addressed first?
• How do we make certain that whatever is done is sustainable and repeatable?
• How much should we budget?
• How soon can I tell management we can expect to see results?
• Do we hire an in-house expert right away?
These are all good questions but one size does not fit all when discussing continuous improvement. Sure every company could benefit from reducing costs, delivery time and improving quality and should do so at every opportunity. The qualifier though is that to receive the maximum benefit these efforts need to be in line with the company’s business strategy. Although quality is always important, efforts to improve quality alone when you’re losing customer’s because of competitive pressures to shorten delivery times will miss the target. We’ve seen many companies with impressive colorful graphs on their bulletin boards that are still laying employees off and losing customers. They’re caught up measuring things that the customer isn’t paying for (i.e. utilization, etc…).
Take The Elevator Ride to The Top Floor
The strategic plan and operational plan need to make the same footprint. Your customers are buying from you today for specific reasons and the steps you adopt for implementing continuous improvement should take their priority from your customer’s needs. Everyone in the company should be able to draw a straight line between the specific steps in your continuous improvement plan to the customer’s needs.
What Should You Do First?
Management on both the business and operational side should become educated on continuous improvement and the tools available. Don’t delegate this task as we’re talking about an area that will likely determine the future competitiveness of your company. Creating an org chart opening for an expert is fine but if done correctly this will change the entire culture of the company. Management needs to be right in the middle of it calling signals. Delegating this won’t get it done.
Headlines & Hype
Don’t believe the headlines of everything you read. Be skeptical. Continuous improvement is unlike any other project than your company has undertaken before but it still needs a project plan. Get out of the office and visit other companies who have already launched their lean program and ask questions.
Kaizen is a method of implementing continuous improvement quickly but it alone can’t change your company overnight. The term kaizen receives a lot of headlines but to maintain the benefits after the event you need a plan. It should be part of an overall plan that is matched to the company’s strategy.
Getting this moving in the right direction will be difficult and it will undoubtedly become frustrating along the way. Your resources will be stretched to create a project plan that re-invents the way your company views its core operations while your customer’s needs remain the first priority. Although your customers may applaud your efforts to serve them better in the future they still need their delivery today.
It’s a process that does get easier as you gain your own experiences and build momentum for positive change within the ranks. It’s still hard work and will test your resolve more than once.
Results
If you are not realizing a minimal thirty percent (30%) improvement (most of our clients realize much higher than this) in the area(s) you’re focusing on you’re doing something wrong. The improvement should be measured in hard numbers such as increased output, reduced cycle time, reduced WIP or inventory, less re-work, increase in the number of batches, floor space, etc…. The fact that thirty percent should be the minimum return for your efforts makes this journey worthwhile. Adopted as your corporate standard, continuous improvement is a viable strategy to deliver these types of results throughout the company year after year. Enjoy the journey.
The Everest Consulting Group has two books and many articles that may help with your efforts to implement lean at your company. Click on www.everestcg.com to learn more about The Kaizen Revolution and The Journey To Teams.
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