5 Consequences of Implementing Lean Manufacturing without Commitment

by

When it comes to Lean manufacturing implementations there is one hard truth: Most manufacturers fail at using Lean to reach their operational and financial goals. Despite all evidence of its effectiveness and a myriad of experts who swear by its principles, manufacturing businesses struggle with using this management philosophy to their advantage. Read this blog to learn 10 Reasons Why Lean Manufacturing Implementations Fail.

The success rate of Lean manufacturing implementations sits somewhere between 25-50%. This can be discouraging to many manfacturing leaders. However, just because something is difficult does not mean it cannot be done. Leading a manufacturing organization through a significant amount of change is hard work.

Manufacturers must prepare in advance and learn What to Expect from a Lean Manufacturing Transformation. Every organization is different but there are certain elements to a successful Lean Manufacturing Implementation and leaders should become well acquainted with them.

Many leadership teams take a halfhearted approach to Lean; evidence of this is their level of participation, support, interest, self-education, and understanding of their role as leaders. Unfortunately, this type of approach ends up underdelivering on their goals.

As you consider taking on this challenge, we want you to avoid other’s mistakes by being cognizant of the consequences of a failed implementation:

  1. Wasted resources – Implementing Lean manufacturing takes a significant amount of effort. When leadership teams fail to lead and support the initiative, they are wasting and undermining these efforts. Depending on the size of the organization, investments such as capital equipment, facilities, salaries, supplies, lost productivity, travel, and contracting services, to name a few, can quickly add up. This leads to losing out on the initiative’s return on investment and missing out on other potential initiatives. Few manufacturers have endless resources and thus cannot afford to waste them carelessly.
  2. Deteriorating performance – There is no denying that applied properly, the Lean manufacturing principles will help any business thrive. Those that fail to seize the benefits will face the realities of failing to adapt and embrace continuous improvement. The result is the competition will begin to gain and eventually overtake these organizations as their deteriorating performance leads to: 
  • Customer impact: Late orders, long lead times, and quality problems will affect customer relationships and risk loss of revenue.
  • Reduced quality of work: The cost of poor quality in the form of excessive tests, inspections, rework, and scrap can bring a business to its knees.
  • Supplier impact: Risk of insolvency can impact the supply chain and strain relationships with key suppliers.
  • Financial impact: Longer cash to cash cycles that will impact working capital and put pressure on cash requirements to sustain the business. This is a dangerous road that can lead to higher levels of leverage and ultimately insolvency.
  • Leadership changes: Leaders exist to deliver results. If leaders cannot drive performance improvement, they are at risk of being replaced.

These effects involve mostly the organization’s resources. Next week I’ll be sharing effects that involve your staff more directly.

If you are serious about implementing Lean manufacturing and want to get the results that evade most manufacturers, schedule a time to discuss your situation and how we can help.

Share our Post:

How does your business compare with world-class performance? Take our business self-assessment and find out.

Read more related Blogs…

10 Ways manufacturers ensure improvements sustain

10 Ways manufacturers ensure improvements sustain

Dan Burgos For those of us implementing Lean, we know all too well how hard it is to continuously sustain the improvements we implement throughout an organization. Can I get an amen? Everyone starts with the best of intentions, especially when…

read more
How to Create & Sustain a Lean Manufacturing Culture

How to Create & Sustain a Lean Manufacturing Culture

Of all “Lean manufacturing” topics this is one that eludes most manufacturers. The great thing about “Lean manufacturing” is that grasping the concepts is not that hard. The concepts, though counter to our most ingrained “bad” habits, do not require advanced...

read more
How to start implementing Lean manufacturing

How to start implementing Lean manufacturing

  This is a very common question for manufacturers that are new to “Lean manufacturing”. Many ask: What can it do for my manufacturing business? How should I go about implementing the tools? Where should I start? I wanted to give manufacturers some input to...

read more
What manufacturers can expect from a Lean transformation

What manufacturers can expect from a Lean transformation

Manufacturing organizations embark on a Lean journey often not realizing the road ahead. Studies have shown that many manufacturing organizations start, but relatively few accomplish their objectives when initiating a Lean transformation. Leaders should realize that...

read more

We are committed to going above and beyond our tour of duty. Your service experience with our company should reflect our bias towards adding value at all times.

Contact Us

817-705-1313

info@alphanovaconsulting.com

 

More Info

Fort Worth, TX | © 2018 Alphanova Consulting All Rights Reserved | Powered & Designed by Citryn, LLC

Language »