Article published in "EUROPE Info" of april 2006
An official publication of Asme. Moving from Silos to Horizontal
Management Practices Lean Manufacturing shakes up traditional management styles to the benefit of the European economy and workforce Global competition on all levels of the business community means that businesses - large and small - are increasingly obliged to think in innovative ways to stay ahead in the marketplace. There is a trend to take best management practices from one particular industry which can be applicable cross-sectorally. One such management theory is the concept of Lean Manufacturing. ASME Info Europe caught up with Claus Weidinger, a German-born Lean Manufacturing Consultant and ASME member,who has been working in this fast developing management sector since 1995 on projects which have taken him across the globe. The rules of customer demands and supply
Weidinger explained :“Lean Manufacturing has become an extremely useful cross-sectoral concept because companies produce in a very customer focused environment. The strategy is successful because the issues to which it can offer a solution are relevant to almost any manufacturing as well as service or administrative sector.”
At its core, the concept can be defined as a systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement of the production process. The key aim is the elimination of waste in every area of production including customer relations, product design, supplier networks and factory management.
“The most important thing about Lean Manufacturing is to satisfy the client's demands by improving a company's business performance”, commented Claus Weidinger.“Its goal is to incorporate speed and flexibility, less inventory,a broader variety of products and less space to become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible.” As Weidinger explained,the bottom line is that companies - regardless of their sector - need to streamline their production and management processes in order to compete effectively. Consequential impact on the workforce ?
In lean production, the value of a product or a service is defined solely by the customer. The product/service must meet the customer's demands at both a specific time and price. In order to deliver high quality products, customer satisfaction and consequently a better position on the very competitive global market, most companies need to undergo comprehensive analysis of all their business processes.
“The Lean Manufacturing concept is not a 100% working remedy for companies facing problems”, says Weidinger. “But it is definitely a powerful tool to visualise and overcome difficulties. The final success of a project always depends on the commitment of the people from the top level management to the shop floor. In general,more than 95% of our projects show a positive result. The transition to a lean environment does not occur overnight. A continuous improvement of products, processes or services with the goal of reducing waste is necessary. Surprisingly, not only companies with difficulties participate in Lean Manufacturing training courses, but market leaders too in order to be better prepared for the future.” Putting beliefs into practice
Weidinger is currently a Partner in the French-based global consulting firm REOSS. As part of a growing dynamic team he shared some of his day-to-day challenges in conveying knowledge and solutions to his clients.
Two factors in particular might negatively influence the implementation of the Lean Manufacturing process. The fear of change and the risk factor on the part of the Management. Claus'experience has shown that people try to understand the issues if they receive an explanation on what he and his colleagues are doing and why. “Regarding the risk factor, we make clear that we use a proven,mathematically-based methodology in order to minimise it. The only way to overcome the fears of the employees is to prepare and motivate them. Continued education and involvement of employees is necessary.”
“It is also a challenge to change from a vertical silo organisation towards a horizontal process-orientated organisation”, expands Weidinger who got in this line of business, because he was fascinated by the “potential of changing the way, the organisation and the methodology of a production.” In a very traditional company with its departments and its vertical hierarchy, everybody is orientated towards achieving the department's optimum, but is not necessarily interested in the customer's needs. Applying the Lean Manufacturing process means to overcome this old logic. In this procedure, two things are extremely important : the management's commitment of seeing the need of the “new way of life” as well as the support of the employees. For a successful lean implementation a common understanding of need to change to lean must be communicated. The outcomes of positive change
Once the transition is done, Lean Manufacturing provides a lot of benefits : lead time reduction, increased production capacity, space reduction, inventory reduction, lower overall costs, fast market response and improved flexibility in reacting to changes, among other things, but most of all an improved service level for customers. “Lean Manufacturing was often misinterpreted as cutting down personnel”,clarifies the Production and Automation Engineer.
“Especially in Europe, it is the right way to save jobs if a company is able to satisfy the customer in responding quickly to its demands. Developing the ability to be highly responsive and flexible with extremely short delivery times to the ever changing customer needs is the single-biggest advantage against low labour-cost countries and will be crucial for survival in the European market.” • You can contact Claus Weidinger at cweidinger@Reoss.com | 
