There are many reasons. Far too often, Lean teachers give the answer ‘because Toyota does it and because it is the best way.’ That may be true, but for the manufacturing executive or business owner who faces pricing pressure, workforce turnover, or quality and technology problems, that isn’t a compelling reason. We must connect lean transformation to both the long-term and immediate needs of managers today.
First, competitive pressures have been increasing for some time. What might have once been a regional business is now even subject to international competition because of easier access to information and decreasing transportation costs. That means there is pricing pressure, along with delivery and quality pressure, which is beyond anything we’ve ever seen. And for these reasons it will only get tougher. Price is not tied to cost, but the ability to continually reduce price while remaining profitable is tied to your ability to continually drive waste out of your processes.
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Second, consolidation is a growing force in many markets, including utilities, automotive suppliers and even hospitals. This is eat or be eaten time. The competitive performance and skill base of your organisation will allow you to control your own destiny - stand alone or buy and improve someone else. If you haven’t grown your organisation’s skill base, you will either sell your business at rock bottom prices or fade into the sunset.
Third, there is good reason to engage in lean transformation efforts not just because of what it does to your performance but what it does for your people. There is a war
for talent, and a knowledgeable workforce is critical in even the oldest industries. More and more evidence suggests that people choose their job and employer primarily
on what their opportunity and experiences will be, not just on wages. That being said, developing a culture that engages the entire workforce and drives continuous improvement, one of the central principles of lean, will help you recruit and retain the best and brightest. So that is the good side. This may all seem obvious, so why don’t
more people head down this path? There are many myths out there that prevent people from exploring their opportunities, so before we go any further, we should explore the validity of those myths.
Much of what we can learn about lean comes from the Toyota Production System. Through over 50 years of learning and experimentation, Toyota has driven deep into
the systematic elimination of waste and has created a system that learns and adapts better than anyone else. Its reputation for management and manufacturing excellence extends well beyond the automotive industry and truly is a benchmark for all operations and manufacturing companies
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Article Provided By Nilesh Pendarkar : Director VCS Consultants, A lean implementation consultancy company In India with vast experiance in Implementation of Lean Manufacturing process in various Industries