LEAN - The case for, and against

 SYNOPSIS

 LEAN method, which is ostensibly being efficient and effective with resource, was designed for manufacturing and created to allow Toyota to produce on-demand. Not produce more and stock-pile or less and miss opportunities. The key thing is that it operates at a simple process level and lends itself to streamlining.

 Service based industries often require complex and parallel thinking; how does one thing affect another, and if we change this, it might adversely affect that. In this scenario knowledge, experience and the human brain is far better than over-simplification and mindless automation. Dealing with complex medical, social, political or economic issues cannot be simplified in the same was a self-assembly furniture!

 THE CASE FOR

 There is no doubt that the elimination of waste, error, waiting time and unnecessary inventory can save time, money, and talent which might be better employed elsewhere. From a suppliers’ perspective a reduction in costs may provide an increase in profit or reduction in losses.

 THE CASE AGAINST

 The current local passion for LEAN, which is quickly falling out of fashion in the UK and Europe appears to be as a quick fix to public-sector down-sizing and cost-cutting. However false economies and silo initiatives are not the way to improve overall public service.

 PRACTICE

 I have seen LEAN initiatives succeed, and I have seen them fail. Inevitably those that succeed have leadership from the top, a joined-up vision of what needs to be achieved and a customer (rather than cost) focus. Success is when there are no errors, omissions or complaints.

 Where I have seen failure it has been because isolated improvements have not yielded an overall benefit to a customer. Imagine a car where the engine, bodywork, and wheels are done without collaboration. Each component may be good, but the overall product or service is likely to be rubbish. A faster or cheaper service which creates errors, omissions or complaints and clogs up call centres and helpdesks is not very LEAN if it now takes up significant time resolving the complex issues that automated and unthinking process cannot resolve.

 KEY STEPS

 Before embarking on LEAN….

 Be clear on your purpose: is it to reduce costs (benefit supplier) or improve service (benefit customer)
 Be clear on your organisational commitment, which will demand consultation, communication, collaboration, co-operation and most important, focus on the customer.

 Be clear on leadership; is this another fad, and we will go back to the old ways of working soon. Or is this a fundamental change which may force new thinking, re-organisation, and different priorities.

 Research. There is an amazing amount of literature and case studies about LEAN. Do you homework and make it industry specific because there are very different constraints in product manufacturing to those in service provision. Both MacDonalds and The Dorchester may provide burger and chips but their people, processes, technology and products will be very different.

 MORE INFORMATION

 I have previously shared many publications on LEAN and if you’d like more information please don’t hesitate to get in contact TimHJRogers@AdaptConsultingGroup.com

 I would however recommend reading one book: The Whitehall Effect, by John Seddon.

 THE AUTHOR

 Tim Rogers is an experienced Project and Change Leader. He is founder of www.ciChange.org and curator for www.TEDxStHelier.Com . He is Programme Manager for the commercialization of Jersey Harbours and Jersey Airport, and previously Operations Change and Sales Support for RBSI/NatWest, and Project Manager for the Incorporation of Jersey Post. He is also Commonwealth Triathlete and World Championships Rower with a passion for teaching and learning and is a Tutor/Mentor on the Chartered Management Institute courses. He is a Chartered Member of the British Computer Society, has an MBA (Management Consultancy) and is both a PRINCE2 and Change Management Practitioner.

 Email: TimHJRogers@AdaptConsultingGroup.com
 Mob: 07797762051 | Twitter @timhjrogers | Skype timhjrogers