Lean Transformation

What is the payback?

Many companies think that the implementation of lean systems is the "magic bullet" that will solve all of their woes. It won't! However, the combination of lean as your business operating system, sound business practices (ie: strategy, market analysis, governance, etc.) and effective leadership will assure success and prosperity. It's like a three legged stool; the stool will not stand on one leg alone, nor will it stand without one leg.

One part of the productivity improvement equation is reducing costs. In the last 16 years helping companies, we have documented many, many performance improvements. The following is a sampling of some of their successes:

• Major public electric gas utility - $150,000,000 in documented savings in 2.5 years, warehouse inventory accuracy from 80% to 96% (very important in the Sarbane/Oxley era), transformer repair from 31 day turnaround to 2 days and more…
• International lead recycler - Paperless PO process saving an estimated $850,000
• Construction products manufacturer - Reclaimed 85,000 sq ft of manufacturing space
• Major snack food companies - One company was ranked 18 out of 18 in customer satisfaction with big box retailers and 2 years later named Wal-Mart's "supplier of the year". Another survived the impact of the low carbohydrate diet while others went into Chapter 11.
• Integrated chicken processor - Reengineered entire quality system, increased from 20th in industry ranking for productivity to 5th in 2 years
• Tier 1 auto parts supplier - Reduced forklifts from 83 to less than 60 in one location alone, virtually eliminated all pulls and most gaps in sequenced shipments to customers
• Flavors and fragrance company - Orders increased by 30% yet lead time reduced by 50% in less than 6 months
• Major healthcare system - GYN operating room turnaround reduced by 35%, emergency room waiting time reduced by over 60%
• Major hotel chain - One hotel went from bottom half of customer satisfaction to the top 10 in their peer group
• Automotive components remanufacture - Record profits each quarter for last 3 years
• and much more…

However, lean isn't just about cost reductions and improved customer satisfaction. Lean also affects the other part of the productivity equation-sales. Eliminating waste in the organization frees up resources and capacity for invention and innovation.