Kaizen

8-BASICS OF KAIZEN BASED LEAN MANUFACTURING

In their efforts to draw closer to customers, many
manufacturers have lost focus on what should be a
company's primary success factor - profitable growth.
In today's competitive manufacturing environment, it
takes more than quick fixes, outsourcing and
downsizing for companies to consistently achieve their
growth and profit objectives. Whilethese options may
yield temporary financial relief, they will not lead
the way to long-term growth and profitability. For
companies to grow and consistently exceed bottom line
expectations, they need to get lean. And, to get lean
they must master the basics of lean manufacturing.

Over the past 30 years, we were led to believe that
computerized systems would provide the solution to all
ofour growth and profit challenges. Material
Requirements Planning (MRP) and Enterprise Resource
Planning (ERP) System gurus assured us that if we
implemented their software programs the bottom-line
would take care of itself. Well it hasn't happened!
Like most perceived panaceas, each of these programs
received a lot of hype, produced a few success stories
but in general, contributed littletowards helping
companies identify and achieve their full growth and
profit potential.

For a measure of their shortcomings, one needs only to
spend some time in an MRP scheduled manufacturing
facility - especially during the last weeks of the
final financial quarter. In a typical company, you'll
find that converting the quarterly financial forecast
into reality still requires overtime,internal/external
expediting, last minute "on-the-run" product changes and
even a little "smoke and mirrors". Results are scrap,
rework and warrantee costs that negatively impact
profitability. Then there are quality and shipment
problems that deliver less than acceptable customer
satisfaction. Companies have spent many thousands of
dollars in pursuing MRP and ERP only to see their growth
andprofits decline due to uncontrolled operating costs
that produced non-competitive pricing.

So, after introducing MRP/ERP computer systems and more,
why is it that most businesses are still struggling to
sustain profitable growth and are no where close to
achieving their full growth and profit potential? The
first reason is simple - the results achieved by any
computer system are only asgood as the people at the
controls and the integrity of the data they provide.
The second is complex - most manufacturing managers
facing major day-to-day problems and constraints adopt
a totally reactive management style. Consequently,
their time is consumed with "band-aiding" and/or
finding ways to work around system and process problems
- leaving them little or no time to analyze andeliminate the root causes of ineffective systems and
processes. How does one turn around such a classic
"cart before the horse" syndrome? What's required is
first a company-wide, in-depth understanding of the
fundamental basics of lean manufacturing and then a
total commitment to the consistent and tenacious
execution of the 8-basics of lean manufacturing.

Like Vince Lombardi, who achievedsuccess by having
his team focus on the mastery of football basics - we
need to have our manufacturing teams focus on the
mastery of lean manufacturing basics. These basics
require proactive planning and tenacious execution that
demands leadership above and beyond just satisfying
"day-to-day" accountabilities. Some managers can't
envision the benefits of mastering business basics,
othersimply can't find the time. Like practicing
blocking and tackling in football, it's not exciting,
and like most football heroes, managers prefer to run
with the ball. But without the tenacious and flawless
execution of lean manufacturing basics, companies will
seldom achieve their full growth and profit potentials.
Delineated below are the 8-basics of lean manufacturing:

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