The Lean technologies will benefit any company! However, as with any new technology that changes how you operate your business, there is a trade-off to consider. Responsible for the success of your company, the ultimate question you must answer is; does the cost of the transformation justify the benefits received? The answer to the question is not whether Lean will improve your company, but at what point does the degree of improvement exceed the cost of a business transformation.
If a Lean transformation cannot reduce your response time to customers, shrink your working capital requirements with lower inventories, reduce your cost of quality, optimize your factory shop floor square footage (meters), and eliminate an environment of constant expediting, a Lean transformation may not be the best operating strategy for your company. Implementing Lean is not a social experiment, academic exercise or program of the month! A Lean transformation must make financial sense to your company! If the benefits of a Lean operating system cannot return a financial return to your company, do not begin a Lean business transformation!
Conversely, outright ignoring the potential benefits available to your company is also not a solution. To help you decide what’s best for your company, Mfg Matters recommends you perform a Strategic Business Assessment in your facility to determine if the benefits of a Lean Business Transformation (SBA) can improve your organization. An SBA is designed to apply the concepts of a Lean operating system to your current operating environment and project the benefits available to you, in financial terms, should you implement a Lean operating system. As the decision maker for your company, you need this comparison to be certain you are not overlooking an opportunity to dramatically improve your company’s performance. Regardless of your final decision, you need to know if you’ve made the very best decision possible for your company.
Your internal staff can usually perform this assessment. Chapter three of the book, Applied Lean Business Transformation discusses how to perform a Strategic Business Assessment in great detail and provides examples of the performance criteria you should compare during the assessment of your operating system. You may also choose to contact Mfg Matters to assist you with your Strategic Business Assessment. In most cases, an assessment requires only a few days on site in your facility. Not only will you learn how a Lean system operates, but once completed, you will have the facts you need to make the very best decision about transforming your facility. Don’t make this important decision without knowing the cost/benefit ratio of a Lean Business Transformation.
Contact Mfg Matters today to schedule a visit to your company.