When Is A Change In Management Required In Lean Manufacturing?

Posted by everise | six sigma | Saturday 28 November 2009 9:30 pm

The Wikipedia Website defines lean manufacturing as a management issue or philosophy that focuses on the elimination, if not reduction, of the seven wastes.

The so-called seven wastes are identified by labor experts as the factors, both huge and little, that effect or influence the profitability of the given company.

You know that companies spend most of their capital on investments, equipment and work force. The investments are expected to generate revenues, which in turn decide on whether the company will keep afloat.

The seven wastes that companies find as burdens to their production and existence are defeats, motion, inventory, over processing, transportation, waiting time and over production.

The seven wastes

As mentioned, the seven wastes are the usual factors that are blamed for the losses and demise of modern-day companies. The seven wastes, as you might have noticed, are somehow directly linked to the companies’ working culture and environment.

Over production make up for filing of inventories, which is not necessary and negatively related to production because as supplies increase, prices do fall or decrease, as stated in the law of supply and demand.

Over processing and slow motion result in longer wasting time, which makes companies unproductive. Motion of personnel is disturbed and made slower when there lots of equipments not used in the workplace that obviously make free movement hard.

You know that when people can move freely, they can get to do more activities and accomplish more tasks.

Defects and scraps in outputs can be prevented along with all the wastes. The seven wastes also involve and cover behavioral patterns of employees, which can negatively affect the overall being of the company.

Lean manufacturing advantages

There are numerous advantages and benefits enumerated from the implementation of lean manufacturing principles.

For one, savings are consequently generated, and revenues and incomes are rapidly and effectively improved. Savings will mean a lot to a company because capital is so hard to raise nowadays and operation factors and inputs are becoming more and more expensive.

Competition nowadays has also gone so intense that all companies, whether from different industries or not, are practically up against each others’ sleeves. Competitiveness is another aspect of the companies that lean manufacturing aims to cover.

To help cope up with the intense rivalry and competition among companies, lean manufacturing aims to boost production and quality credibility. These two factors are very essential when it comes to improving sales through active and good relations with customers and consumers.

The management and lean manufacturing

So one important question involving the adoption of lean manufacturing techniques is, “ when is management revamped or changed resulting from the implementation of lean manufacturing techniques?

The answer to the question can somehow get hard and complex. To seek answers for the above mentioned interrogative statement would also be equally complicated and will require too thorough probing and searching.

Lean manufacturing principally aims to rationalize and streamline operations of companies. Experts argue that the process does not necessarily require a change in management.

But it can be noted that the distinct features of almost all companies under lean manufacturing initiatives are the change and revamp in management. The subject is the main cause of stress nowadays among executives and directors.

It can be safe and logical to assert, however, that because lean manufacturing entails the elimination of wasteful practices and behaviors in the workplace that some executives are axed. It can be ironic that several board seats and top posts are onlygreat wastes of capital and compensation packages.

Lean manufacturing advisor recommend a change in management to most effectively make the adoption of lean manufacturing principles really work.

When is Organizational Change Required by Lean Manufacturing?

Posted by everise | six sigma | Saturday 28 November 2009 9:29 pm

Lean manufacturing has become a very popular and widely adopted economic and corporate management philosophy. Companies around the world are starting to turn to it amid political and economic crises even in the most progressive all nations.

Yes, the hard times have extended from the third world countries to the fully developed or first world countries. It is because economies are now led and influenced by volatilities involving oil producers and companies.

Because all industries are practically run and powered by energy, companies seem to not get away from the problems hounding the energy sector.

For almost more than a year now, firms around the world have been suffering from crunches brought about by the increasing and soaring prices of oil in the world market.

A lot of companies have fallen and have weakened due to the rising oil prices. There are more and more companies now filing for bankruptcy protection not because their management messed up or some executives defrauded them, but because of the external environment posed by volatile oil prices.

That is why, lean manufacturing is getting more and more attention, and more and more companies are deciding to finally implement the principles of the strategy.

Lean manufacturing

What exactly is lean manufacturing? The popular Web site Wikipedia defines lean manufacturing as a philosophy in management that concentrates and looks closely at the reduction and elimination of the seven wastes.

The seven wastes are the usual tasks, equipment and practices found in the modern day work place. The seven wastes are identified as factors that hinder productivity or significantly weakens it.

The seven wastes lean manufacturing tries to scrap are the following:

Over production—experts believe that over production is a total waste of energy, efforts and capital. That is because overproduction makes up for over supply and piling up of inventories, which in turn will lower or bring down prices for the manufactured goods.

Over production also drains capital from firms, with most of the excess products either put into the trash can or reaching expiration dates.

Over processing— Over processing is basically similar to over production, only that over processing commands additional and unnecessary processes.

Transportation and motion— Lean manufacturing aims to reduce unnecessary costs for transportation. Motion is the pace of action within the work places. If the work stations are too compressed and small, workers will not be able to move freely, affecting their productivity.

Inventory and waiting— As mentioned earlier, lean manufacturing eliminates piled up inventories. Waiting time in all aspects is abolished because of the streamlined structure and because productivity is accelerated.

Scrap and defects—Mostly, lean manufacturing aims to combat the manufacturing of commodities and merchandise with scrap and defects.

Goods and outputs with scraps and defects are undervalued in the market. What is worse is that the credibility and image of the companies producing them are tainted, resulting to poor sales, poor revenue, then eventually to loss, and further, to bankruptcy and business closure.

Organizational change

Not because lean manufacturing is a strategy that initially and principally targets the structure of companies is lean manufacturing always commanding and demanding for organizational change.

Yes, lean manufacturing aims to rationalize, streamline and accelerate corporate operations. But its does not mean organizational changes follow.

The organization is basically not altered or changed upon implementation of lean manufacturing principles. Lean manufacturing never targets organizational change, but instead hits changes in the organizations’ environment design and work practices.

Organizational changes, however, are recommended and implemented along with lean manufacturing only when the desired results and outcome from lean manufacturing practices are not attained.

Failure of lean manufacturing is always found to be related to the effectiveness and adherence to the real principles in the implementation of lean manufacturing principles and strategies.

That is the only time when organizational change along with lean manufacturing is implemented. The effects and gains from the implementation will offset all the troubles and costs incurred, so why hesitate anyway?

Learning the Basics of Lean Manufacturing and Processing

Posted by everise | six sigma | Saturday 28 November 2009 9:28 pm

Lean manufacturing and processing has been an important strategy and basic technique in helping companies improve their profitability and competitiveness.

The fundamental function of lean manufacturing and processing is to reduce wastes and unnecessary work practices and behaviors among workers of a particular manufacturing company.

Because the times have really gone hard, demanding and intense due to political and turbulent concerns affecting all nations, firms are currently facing challenges to be able to keep their profitability and efficiency.

In principle, there are seven identified ‘forms of waste’ within the work environment and systems that lean manufacturing and processing principally aims to alleviate, if not totally eliminate. These are over production, over processing, transportation, motion, inventory, waiting and scrap and defects.

Lean manufacturing and processing principles not only reduce operational costs but also aims to boost, restore and drastically improve the competitiveness of a troubled or struggling, even already good-performing, company.

That is basically why learning about lean manufacturing and processing has somehow become imperative for major and global companies.

The era of complete globalization is at hand. That contributes more pressure for companies to start acting right away to be able to survive the rough and hard operational and company challenges ahead.

Lean manufacturing and processing

Lean manufacturing and processing surely gets companies moving along and enjoying huge benefits of really reducing operational costs. If savings are generated, the saved amounts can be used for further capital requirements and investments that could further help companies expand and grow organically.

Lean manufacturing and processing, however, is not very easy to implement and adopt. The companies involved should really and religiously pay particular attention to details to  be able to ensure the success of the efforts.

The number of companies adopting lean manufacturing and processing principles is surely and is apparently on the rise, no doubt about that.

But the thing is, firms adopting lean manufacturing and processing techniques are most of the time, not achieving target and aimed results because they are not doing the strategies and techniques properly.

Insufficient and ineffective implementation of lean manufacturing and processing principles and techniques will surely make the companies’ efforts and capital infusion for the initiative futile and wasted.

It should be noted, also, that lean manufacturing and processing principles would not stand on its own. Companies adopting and embracing them should also strive harder to attain their goals.

Learn about lean manufacturing and processing

Experts advise companies to really get involved in and further learn more about lean manufacturing and processing. It is a logical and surely beneficial effort because lean manufacturing and processing can surely help companies get on with the current challenges and concerns affecting all firms around the world.

There are many ways on how companies can get to learn more about lean manufacturing and processing principles and techniques.

For one, they can hire lean manufacturing and processing experts and professionals who are credible and knowledgeable on the subject and who can really help the companies attain and maximize the benefits of such strategies.

However, hiring lean manufacturing and processing professionals will entail additional costs and investments from companies. They should not really mind it, because the benefits from lean manufacturing and processing implementation will surely offset the little and minimal costs of learning it.

Another thing, companies can designate key personnel to specifically and intently learn lean manufacturing and processing principles and techniques.

It is a common practice by companies around the world currently. The arrangement sees the key personnel attends seminars and get books to really know or learn the lean manufacturing and processing principles.

After that, the designated and assigned personnel will relay the message and everything he learned to the whole staff. It is up to him whether he will make the learning process for his officemates fast-paced or low-paced.

What is important is that the skills and knowledge are distributed and communicated to the entire organization. That way, lean manufacturing and processing principles are really and seriously imbibed by all personnel, to make the strategies work overall for the company.

Lean manufacturing and processing should be learned by all companies because the benefits it assures them, is nothing compared to the costs of absorbing them, which are not really that significant.

Wise, isn’t it?

Free Training on Lean Manufacturing

Posted by everise | six sigma | Saturday 28 November 2009 9:26 pm

Lean manufacturing is a holistic and effective set of approaches, principles and business strategies that aims to maximize productivity by minimizing unnecessary, unproductive and wasteful practices, tasks, activities and behaviors in the work place.

The modern work place is bugged by many issues, with labor relations and labor concerns affecting both employee and employer relations and of course, the production of companies.

Because the times are ever so trying and challenging with all kinds of crises affecting the society, the political landscape and the working industry as a whole, firms around the world complain and suffer from declining profitability and narrowing margins.

The issue of labor relations are becoming so common worldwide, with all sorts of companies in all sectors and industries launching and introducing job cuts, streamlining efforts and restructuring efforts left and right and every now and then.

Thus, productivity, both in the company and the employees’ ends should be significantly boosted and improved to ensure the survival of businesses and of course, laborers.

Lean manufacturing

All companies from around the world are recognizing the value of implementing and adopting various and effective techniques to improve and help their businesses survive amid all crises.

The Japanese are the pioneers in introducing innovative and practical techniques, strategies and methodologies in business improvement. From the industrialization era in the 1980s to the modern and dotcom era of the 1990s up to the present, they never falter.

Experts could not really pin point the origin of lean manufacturing principles and concept as a whole, but analysts see lean manufacturing as somehow related and interconnected to the Japanese 5S working guide.

Basically 5S eliminates unnecessary and interrupting situations by ensuring that cleanliness, orderliness and systematic processes are in place in the workplace.

Lean manufacturing is somehow similar to that.

Learning more about lean manufacturing

There are various platforms and means on how people, especially managers, employers and work personnel, can significantly and efficiently learn and absorb lean manufacturing techniques.

There are various consultancy and training firms that offer long courses and mostly, short or crash courses about lean manufacturing.

It is important to note, however, that most training offerings for lean manufacturing are also costly, with the justification that savings and cost reductions to be generated from its implementation will surely make up for the training costs.

Lean manufacturing trainings are somehow viewed by modern companies as one of the business aspects and areas where investments should really be poured in.

Online, there are also a number of online sites that offer online trainings, but rarely can you find free training for lean manufacturing. Lean manufacturing training has surely become a profitable and money-generating business itself.

Free trainings

It is not only rare, but to say, impossible, for you to find online sites offering free training on lean manufacturing.

Indeed, some companies and experts on lean manufacturing have realized that their expertise and knowledge about the principles are becoming so in demand. Thus, it opens opportunities for earning and generating additional income.

Because it is important to know lean manufacturing strategies and techniques so companies can improve efficiency and production, free training and courses on lean manufacturing has become a dream that can totally be unachievable.

However, because free training for lean manufacturing will not be available online and in personal consulting and training venues, companies resort to invest on it by sending key personnel to costly and paid lean manufacturing training.

After that, these key personnel are expected to relay the message and the whole lean manufacturing training, of course, to the whole staff.

That is basically a practice adopted by companies trying to save on costs and operational investments.

Through that, lean manufacturing training is somehow being made free.

Lean manufacturing free training, an impossible dream?

Because most companies around the planet are struggling and striving to survive in these trying times, free training on lean manufacturing has hope.

Because most experts and lean manufacturing proponents are capitalizing on their knowledge, making free training on lean manufacturing an impossible dream, governments are expected to get in.

Because governments around the world aim to protect their constituents by ensuring people have jobs, they would strive to help local companies especially nowadays when businesses are on the brink of collapsing.

That is why some governments are expected to subsidize training on lean manufacturing and make them free for all companies to learn and implement.

For sure, that would not be far from happening.

Sustaining the Gains from Lean Manufacturing

Posted by everise | six sigma | Saturday 28 November 2009 9:25 pm

Lean manufacturing is becoming a popular and widely used set of techniques and approaches aimed at boosting profitability and increasing competitiveness among major companies worldwide.

Because the world economy has somehow been subjected to various crises and turmoil from political and other economic hurdles, companies around the world are currently on the receding trend.

That is why companies do acknowledge the importance of integrating within them and adopting the helpful and effective strategies and principles of lean manufacturing.

Since lean manufacturing is basically involved in obtaining the right things, putting them to their proper and right places, during the right time, at the same time in ample and sufficient quantities, companies adopting them should really be careful in implementing them.

Lean manufacturing fundamentally aims to reduce waste and make companies more competitive by helping them turn into flexible firms which are open and subject to positive developments, innovations and changes.

Hence, the real challenges faced by all firms adopting the lean manufacturing principles are those that revolve around how to sustain gains from lean manufacturing.

Gains from lean manufacturing

There are several identified benefits that can surely arise from successful and effective implementation of lean manufacturing principles.

It is apparent and logical to state that lean manufacturing can have positive, direct and immediate influence and impact on companies. Implementation of lean manufacturing measures and techniques will surely and undoubtedly bring about numerous and significant gains and benefits to companies.

Lean manufacturing is sure to get companies reduce or slash manufacturing time without sacrificing output number and quantities. Experts believe that by implementing lean manufacturing principles within operations, companies can have a 50% to 90% reduction in overall manufacturing time.

That gain from lean manufacturing can be sustained only by continuing to implement effectively the helpful and effective principles of lean manufacturing.

Space gains

Another gain sure to be brought about by effective implementation of lean manufacturing is the reduction or lessening of floor space requirements.

Because lean manufacturing also involves the effective and strategic elimination of wastes and unproductive equipment in the work place, companies are expected to maximize space, making worker freer and faster to move around the work stations.

That could be sustained by preventing to buy unnecessary equipment. Redundancies and duplication of machines’ purposes and intent should also be avoided.

Increased benefits

If lean manufacturing reduces manufacturing time and floor space requirements, it can, on the other hand, increase a number of gainful aspects.

For one, productivity of companies increase by using and adopting the lean manufacturing principles and techniques. As mentioned earlier, because disruptions and unnecessary wasteful machines are taken out of the work place, personnel are more free to move around.

The comfort given to employees make them more efficient and thus make them more produce more outputs. In turn, that could be to the advantage of the company.

That lean manufacturing gain can be sustained by maintaining the smooth and effective implementation of lean manufacturing strategies and techniques.

Other gains of lean manufacturing

Companies adopting and integrating lean manufacturing techniques in their operations are also expected to improve their overall customer and client focus, boost the leadership potentials of their key personnel and make up for a leaner structure of the business.

What benefits would it be if companies achieve these gains? Of course, the overall profitability, competency and image of the company will be significantly boosted.

That would really count amid an intense competition, hard economic environment and overall rising of operational costs among companies.

To sustain such gains, it would be really imperative for companies to really maintain their focus on their goals and priorities upon implementing lean manufacturing techniques and principles.

Companies should remember that reaping benefits from such strategies upon initial successful implementation should not be a guarantee that the gains would keep on pouring.

Strong will power and determination would really keep companies afloat and surviving. Sustaining gains would be as hard an activity as seeking profit improvements and boosting competitiveness, but it is one concept and aspect, companies should really strive to get into.

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