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LEAN MANAGEMENT
Lean Results

By Karl H. Schultz
 karlschult@aol.com

“What am I going to get in return with all the training, time spent from the job, costs, etc., for starting a ‘lean’ initiative,” ask many executives.  And it is a very important question and not one that can be answered, “Trust me, we will get results.”

So, how does one understand what results might be achieved.  Obviously trying to find competitive information will be difficult and much of it will be hearsay.  Another method is to obtain general information.  “Industry Week” magazine does a Best Plant Survey of Winners every year.  This is an indication of how much the winners improved with “lean” implementation of the “tools”:

 

 

 

 

 

 

 

 

What type of “tools” did these “Industry Week” Best Plant Winners employ?

Text Box:  •  “Industry Week” Best Plant Practices          - cross-functional teams                                           -100%        - employee cross-training                                          -100%        - employee involvement in benchmarking                   -84%        - self-directed work teams                                         -80%        - financial rewards for team based performance          -76%        - pay-for-skills programs                                            -68%        - apprenticeship programs                                          -44%

 

 

 

 

 

 


Another interesting application of the “lean” tools applies to the office.  The following are some results of a top 5 Fortune company:

Financial Group                                      Personnel Accounting

33% Productivity                                       $2M (15%) Cost Reduction

process mapping                                       process mapping  

work teams & teams                                 organized by customer vs. training function

recognition & rewards                               redefined work - cross training

cycle time reduction                                  work teams & teamwork

                           relayed area into “cells

 

Corporate Tax                                       Material Control Group

$490K (18%) Cost Reduction                    $280K Cost Reduction

process mapping                                    process mapping              

developed & displayed business               macro business measurements

measurements & displayed                      work teams

redefined work - cross training                developed computer systems

relayed area into “cells”                          cycle time reduction


Small businesses can also achieve the results show above.  The National Institute of Standards and Technology (NIST) has programs (Manufacturing Enterprise Programs) with many States to assist small manufacturers achieve “lean” results as shown:

 

 

 

 

 

 

 

 

 

However, a word of caution.  The two keys are: what counts is how well any tool/technique is implemented, and it must be implemented in small incremental steps.

Text Box: Percentage of Benefits Achieved

Text Box: Space Utilization

Text Box: Quality Improvements

 

Text Box: WIP Reduction

 

Text Box: Productivity Increase

 

 

Text Box: Lead Time Reduction

 

 

 

Text Box: 20

Text Box: Source: NIST

Text Box: 80

Text Box: 40

Text Box: 60

 

 

Text Box: 100

 

Text Box: 0

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