7 Steps for Successful Lean Implementation

Why is it that a large number of Lean implementations are not successful, when Lean is simple
and common sense? The failures can be attributed to a) lack of commitment from the top
management, b) lack of clear vision and strategy, c) Lean is seen as a cost-cutting tool rather
than cost-saving tool and last but the most important one is, d) Lean tools are implemented to
gain some quick wins but the culture of continuous improvement is not developed.

Lean is 20% about the tools and 80% about the people. Lean is a way of running business and
once you adopt it, then it has to continue for the years to come, no matter what. The average
ROI is to the tune of 600% and it improves productivity, quality, delivery, service, morale,
safety and reduces cost. Are these not enough incentives to carry on?

So, how can we implement Lean successfully?

Step 1: Commitment from the TOP management

The first step should be to ensure that all members of the senior management team are totally
committed to the process. They should be prepared to make a commitment not to reduce the
head count, rather utilise them elsewhere within the business and also support any projects
that the implementation spurs.

Step 2: Getting the strategy right

Balance Scorecard Approach

The balanced scorecard is a strategic planning and
management system that is used worldwide to align Financial
business activities to the vision and strategy of the
organisation, improve internal and external
communications, and monitor organisation
performance against strategic goals. The balanced
scorecard transforms an organization’s strategic plan Customer Vision & Business
from an attractive but passive document into the Strategy Processes
"marching orders" for the organisation on a daily
basis. It provides a framework that not only provides
performance measurements, but helps planners
identify what should be done and measured. It enables Learning
& Growth
executives to truly execute their strategies. It looks at
4 perspectives, Financial, Customer, Business
Processes and Learning & Growth.

Hoshin Kanri (Policy Deployment)

Hoshin Kanri is a systems approach to the management of
change in critical business processes using a step-by-step
planning, implementation, and review process, aimed at
improving the performance of business systems. A
business system is a set of coordinated processes that
accomplish the core objectives of the business. For every
business system there are measures of performance and
desired levels of performance. Hoshin Kanri provides a
planning structure that will bring selected critical business
processes up to the desired level of performance. Hoshin
Kanri means management and control of the
organization's direction needle or focus.

PO Box 24499 Royal Oak Auckland

Ph: 64 21 173 1060 Email: info@solutions4productivity.com
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Step 3: Assessing the current state

A high level Value Stream Map of the current state needs to be drawn. Value stream map helps
to see and understand the flow of material and information as a product or service makes its
way through the value stream. It is important to gather as much information as possible for the
various processes, such as KPI’s (metrics) and identify potential opportunities for improvement.
Once you have identified the opportunities, draw a future state map based on where you would
like your organisation to be in 12 to 24 months period.

Step 4: Communication

Once all managers are familiar with this vision a brainstorming session should be held to select
the project leader who is the most natural choice to move the company towards this vision.

Once the appropriate project leader is found he/she will need to assemble a team of key people
from across the organisation. The best way to recruit people for this leadership team is to fully
explain the process to each department and then ask for volunteers from each department.

Step 5: Training

The implementation team needs to be trained in the concepts and tools of 8 wastes (Defects,
Over Production, Waiting, Non-Utilisation of Staff Talents, Transportation, Inventory, Motion
and Excessive Processing) and 5S (Sort, Set-to-Order, Shine, Standardise and Sustain) as a
minimum. The training needs to continue depending on the projects.

Step 6: Pilot Project

Select a pilot area and implement the concepts learnt. The pilot area selected should be the
most visible part of the organisation, so everyone is aware of the changes taking place, so
getting the buy-in would be easy. The pilot runs for 90 days. Get the feedback, analyse and
continue to improvement.

Step 7: Full Rollover

Once the pilot project is a success, it is time to consider rolling out the programme to other
parts of the organisation and also other tools can be used. Always pick the tool(s) that will
have the greatest impact on business. Implement this next tool in the same way that the first
project was implemented.

The most important step will always be to ensure that company personnel are on board with
the plan, as their support and cooperation is needed throughout the implementation.

PO Box 24499 Royal Oak Auckland

Ph: 64 21 173 1060 Email: info@solutions4productivity.com
Visit our Website: www.solutions4productivity.com