How to implement a 'Lean Strategy': it's more than simply a goal to be achieved.Many companies implement a "Lean Strategy" without full consideration of the bigger picture. A "Lean Strategy" often means conversion to the Toyota Production System The Toyota Production System (TPS) is the philosophy which organizes manufacturing and logistics at Toyota, including the interaction with suppliers and customers. The TPS is a major part of the more generic "Lean manufacturing". (TPS (1) (Transactions Per Second) The number of transactions processed within one second. TPS is a better rating for the performance of hardware and software than the common MHz and GHz rating of the computer. ) or other lean methodologies (such as Synchronous Refers to events that are synchronized, or coordinated, in time. For example, the interval between transmitting A and B is the same as between B and C, and completing the current operation before the next one is started are considered synchronous operations. Contrast with asynchronous. , Six-Sigma, Total Quality, 5S, etc). While these are all worthwhile, effective tools, many companies put themselves at a competitive disadvantage spending their resources to implement programs in the wrong place, at the wrong time and on the wrong thing. This can be disastrous for the small business owner. They can spend themselves out of business trying to get "Lean." Starting with a solid strategic plan is critical to effectively implementing "Lean." Basics of strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. [ILLUSTRATION OMITTED] Strategic planning should be the cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to of any organization that plans to prosper in the future. The strategic plan sets the direction for the organization, identifies assets and obstacles and generates the specific, short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. path to reach the objectives. The strategic plan is the foundation for the business plan, which specifies the marketing and sales plans, budgets, business goals and action plans. We put weeks of planning into our vacations. Many companies do not put that much effort into the plan that they will be following for the next year, let alone plan three to five years into the future. Exploit internal strengths Companies that are embarking on a Lean Strategy need to understand their position in the marketplace. Numerous examples can be made of successful Lean workshops producing five- and six-figure annual savings only to have the product "offshored" or "consolidated" at another supplier. Even more damaging than the fiscal impact of these losses can be the devastating dev·as·tate tr.v. dev·as·tat·ed, dev·as·tat·ing, dev·as·tates 1. To lay waste; destroy. 2. To overwhelm; confound; stun: was devastated by the rude remark. effect on morale. It is important to target your resources on products and processes that provide your competitive advantage. Building on your strengths keeps you ahead of the competitive curve. Target external weaknesses You should focus not on your weaknesses but on your competitors'. Exploit areas where your strengths align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. with their weaknesses. You may also choose to develop strengths that are likely to be long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. issues for the competition. If you are in danger of losing business to "offshoring
Offshoring describes the relocation of business processes from one country to another. " due to labor costs, you cannot compete in this arena. They are exploiting your weakness with their strength. What do you have to offer that they don't? It may be delivery time, service, local support, etc. It is up to you to identify issues and educate your customer. Implementing "Lean" is not a goal to be achieved. Lean must be part of a business strategy to effectively manage the resources of the company. Lean can help a company thrive. Lean can also be the final blow to a struggling organization. Having an effective strategy for Lean is critical to assure success. By Gary M. Butler, PE Gary M. Butler, PE is president of Butler Fitzgerald Associates Inc. in South Lyon, a Silver-level member of the Detroit Regional Chamber. [ILLUSTRATION OMITTED] Elements of a strategic plan Vision -- Where we are going Internal assessment -- Our strengths and weaknesses External assessment -- Competitive analysis Mission/goals -- Short-term direction Business plan -- Marketing and sales plans, budgets, business goals and action plans |
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