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September 27, 2007

Biz Tips: Lean: Not just for manufacturers anymore

How lean lessons can work for other industries

By Jack Healy

Quinsigamond Community College's recent report on the "Status of the Manufacturing Industry" indicates that the implementation of lean enterprise practices (also known as The Toyota Production System) is now firmly a part of the operating fabric for the majority of manufacturers.

The adoption of leanness within the manufacturing sector has come about primarily during the past five to seven years when, in the midst of the largest ever manufacturing productivity improvement increase, most manufacturers saw little alternative to adopting lean in their organizations.

More than manufacturing


But lean isn't just being used by manufacturers.

Lean enterprise practices, recognized by Business Week Magazine as one of the most innovative changes to occur during the magazine's 75-year existence, are now being widely accepted in non-manufacturing organizations as well. Google has more than one million links on this subject, a testament to the concept's pervasiveness.

In addition, as reported recently in the Wall Street Journal, "managers with years of factory experience are being recruited in the health care industry" to share their knowledge of lean principles. The same article went on to state that a recruiter specializing in lean manufacturing practitioners has seen his demand "go up 10-fold."

With maturing markets and limited income streams, all types of businesses including local governments and the military are putting aside the usual defensive arguments of "this can't work here," and are embracing lean.

If a business is interested in implementing lean principles, it usually goes through three steps. The first step is just obtaining a basic knowledge of what lean is all about.

The second step is to find a consulting resource with an expertise in lean to assist in the implementation and training.

A real champion


The third and final step is to secure an internal lean champion either from existing personnel or from external recruitment. Most organizations often tailor such implementation and may vary the described steps to suit their own enterprise's needs.

There is an exceptional opportunity for local businesses interested in lean concepts on Oct. 11 at The College of the Holy Cross's Hogan Center. The William J. O'Brien Distinguished Lecture Series will present a discussion called "Leanness - Corporate Culture and Profitability in America," with leaders from Toyota, New Balance, and American Woodmark. Peter Senge, world famous author and lecturer will facilitate the evening's proceedings.

Also, Northern Essex Community College in Haverhill is now offering a comprehensive 80-hour lean training program that will qualify attendees for a lean certificate qualification.

This is a first for such an offering in this state.

There are of course a number of good books on this subject, such as "Lean Thinking" by Womack and Jones, which has been a starter reference for many organizations for close to 10 years.

Some people pursue lean implementation as a cost-cutting initiative, and miss its real purpose of creating value through the elimination of waste.

You need to secure a resource that can help you understand what your customer values and to create a value stream map that identifies where and when value is being added (or not added) in your processes.

Jack Healy serves as the Director of Operations for both the Massachusetts Manufacturing Extension Partnership (MassMEP) and the Manufacturing Advancement Center which is a separate organization dedicated to the promotion and development of the Massachusetts manufacturing community.

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