Tag: Sustainability

Sustainability or Meltdown?

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For as many years as I have been blogging here on Lean Execution, I have been increasingly concerned with the sustainability of our economy, business, and government at all levels – locally, nationally, and globally. To this day, these same interests are all struggling to define and establish models that will allow them to recover, sustain, and flourish in the foreseeable future.

The word “meltdown” entered my mind as the summer heat continued to beat down on us over this past week. As we have witnessed over the past few months and years, many governments and businesses alike have collapsed and there are many questions that have yet to be answered.  How did it happen? Was prevention even possible? As I listen to the radio and read the newspapers, I find it interesting that “cuts” are the resounding theme to reduce costs.

I would argue that the real opportunity to reduce costs is to review and identify what is truly essential and then examine whether these products and services are being delivered in the most efficient and effective manner.  I have always contended that there is always a better way and more than one solution with the premise that anything’s possible.

Sustainability requires us to continually and rapidly adapt to an ever-changing environment.  In this context I again find myself turning to the wisdom of Toyota.  “The Toyota Way to Continuous Improvement – Linking Strategy and Operational Excellence To Achieve Superior Performance” by Jeffrey K. Liker and James K. Franz is one such resource that is the most recent addition to my library of recommended lean reading and learning.

The economy is extremely dynamic and infinitely variable.  Our ability to sustain and succeed depends on our ability to stay ahead of the curve and set market trends rather than follow them. Apple is one such company that continually raises the bar by defining new market niches and creating the products required to fulfill them.

We also have a social responsibility to ensure that people are gainfully employed to afford the very products and services we provide.  As we consider current employment levels here in Ontario, Canada, and other countries around the world, it is becoming increasingly clear that cutting “jobs” is not a solution that will propel our economy forward.  We must be accountable to create affordable products and services that can be provided and sustained by our own “home based” resources.

Accountability for a sustainable business model requires us to forego future growth projections and deal with our present reality.  Expanding markets are not to be ignored, however, we can no longer use the “lack of growth” as an excuse for failing to meet our current obligations and stakeholder expectations.

Until Next Time – STAY lean!

Vergence Analytics
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Achieve Sustainability Through Integration

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It’s no secret that lean is much more than a set of tools and best practices designed to eliminate waste and reduce variance in our operations.  I contend that lean is defined by a culture that embraces the principles on which lean is founded.  An engaged lean culture is evidenced by the continuing development and integration of improved systems, methods, technologies, best practices, and better practices.  When the principles of lean are clearly understood, the strategy and creative solutions that are deployed become a signature trait of the company itself.

Unfortunately, to offset the effects of the recession, many lean initiatives have either diminished or disappeared as companies downsized and restructured to reduce costs.  People who once entered data, prepared reports, or updated charts could no longer be supported and their positions were eliminated.  Eventually, other initiatives also lost momentum as further staffing cuts were made.  In my opinion, companies that adopted this approach simply attempted to implement lean by surrounding existing systems with lean tools.

Some companies have simply returned to a “back to basics” strategy that embraces the most fundamental principles of lean.  Is it enough to be driven by a mission, a few metrics, and simple policy statements or slogans such as “Zero Downtime”, “Zero Defects”, and “Eliminate Waste?”  How do we measure our ability to safely produce a quality part at rate, delivered on time and in full, at the lowest possible cost?  Regardless of what we measure internally, our stakeholders are only concerned with two simple metrics – Profit and Return on Investment.  The cold hard fact is that banks and investors really don’t care what tools you use to get the job done.  From their perspective the best thing you can do is make them money!  I agree that we are in business to make money.

What does it mean to be lean?  I ask this question on the premise that, in many cases, sustainability appears to be dependent on the resources that are available to support lean versus those who are actually running the process itself.  As such, “sustainability” is becoming a much greater concern today than perhaps most of us are likely willing to admit.  I have always encouraged companies to implement systems where events, data, and key metrics are managed in real-time at the source such that the data, events, and metrics form an integral part of the whole process.

Processing data for weekly or monthly reports may be necessary, however, they are only meaningful if they are an extension of ongoing efforts at shop floor / process level itself.  To do otherwise is simply pretending to be lean.  It is imperative that data being recorded, the metrics being measured, and the corrective actions are meaningful, effective, and influence our actions and behaviors.

To illustrate the difference between Culture and Tools consider this final thought:  A carpenter is still a carpenter with or without hammer and nails.

Until Next Time – STAY lean!

Vergence Analytics

Twitter:  @Versalytics