subject: Lean Strategies Adopted Across Industries [print this page] Lean Strategies Adopted Across Industries
Consumers Interstate Corporation has revolutionized the lean procurement process, leading to a number of success stories from manufacturing companies all listed in the "Case Studies" portion of the website. However, lean strategies aren't just applicable to manufacturing plants; recently, lean strategies have been utilized across industries, from major companies like Johnson & Johnson, to smaller hospitals like Akron Children's Hospital in Ohio. These companies join a growing number of businesses in a myriad of industries that have revamped their operations to be leaner and more efficient, all to a variety of benefits.
Toyota, the original developer of the lean manufacturing method with their Toyota Production System (TPS) was able to not only become a model for other companies looking to cut out waste and become their most efficient, but in the process was able to become among the ten most powerful companies in the world. Through TPS's key goals of eliminating overburden, inconsistency, and waste, Toyota was able to decrease the amount of time necessary for the entire completion of a vehicle as well as overall cost.
Indicating that lean methods can be applied to all aspects of a company is the shift from Toyota's makeover of their assembly line manufacturing to that of Nike's human resources department. Nike implemented lean procurement techniques with a total overhaul of their method of employee management. The company found itself leaner after a shift from a predominantly supervisory management style to one of self-management. Nike president and CEO Mark Parker hopes to implement lean management techniques into further portions of the company, quoted as saying such on the blog leanblog.org: "We will continue to be very aggressive in pursuing lean manufacturing practices, materials consolidation, focusing on style and SKU productivity, and gaining supply chain efficiencies."
GE's lean manufacturing refurbish was one of the green variety. In an attempt to reduce greenhouse gas emissions, the company implemented the lean method of engine balancing to their process of jet engine tests at their testing compound facility in Peebles, Ohio. When testing airline jets, the engines were originally started three times over, however, under the new lean process, the engines are now only started once. The fuel-saving measure indeed proved to be both green environmentally and monetarily, reducing fuel intake from 20,000 gallons to 10,000 gallons and saving over a million dollars annually.
Another company that has utilized the lean procurement methodology successfully is Johnson and Johnson, which used the Six Sigma approach, a specific lean approach. The process proved so beneficial to the corporation, they now not only have six Six Sigma experts (referred to as "belts") on staff, but have also developed a prototype called "Sally Sigma" to instruct employees on lean procurement methods, policies, and procedures. Sigma Sally is able to further impact leanness by communicating such tools, principles, and practices to employees in all sectors of the business. Johnson and Johnson reports that other companies have since adopted similar "Sigma Sally" initiatives.
The healthcare world is a final arena where lean manufacturing techniques have been effectively implemented, specifically, at Akron Children's Hospital in Akron, Ohio. Here a team consisting of six members, similar to that of Johnson and Johnson's, operate the hospital's Center for Operations Excellence, which has instituted such changes as refining the way surgical instruments are cleaned and reducing the number of patient relocations. These seemingly small modifications have resulted in an increase in the number of surgeries performed annually and decreased the amount of time each patient spends at the hospital per visit.
Lean procurement and manufacturing systems have come a long way since Toyota's initial creation of TPS, evolving into concepts such Six Sigma methodologies and allowing companies worldwide to maximize profits and productivity while minimizing waste. Through the implementation of lean methods companies have increased employee productivity and satisfaction, cut costs and saved money, and helped make the world a greener, more pleasant place to live. Imagine the benefits lean procurement could have for your company! Please don't hesitate to contact us for your free consultation.
