By October 19, 2005 3 Comments Read More →

A Different Take on Lean and Delphi

Kaizen and Lean Manufacturing thoughts | Gemba Panta Rei

Wow, on Womack and Delphi, this blogger didn’t pull any punches. Jon Miller says, basically, “Who cares how nice the factories look, how “lean” they look, if the business is failing?” He criticizes Womack for having “kid gloves” with Delphi management and their role in the bankruptcy and failed business strategy.

I agree, though, with Womack’s point that lean may have helped Delphi delay bankruptcy. If Delphi had a fundamentally bad business model, I don’t know what “lean manufacturing” OR “lean enterprise” could have fixed.

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Mark Graban's passion is creating a better, safer, more cost effective healthcare system for patients and better workplaces for all. Mark is a consultant, author, and speaker in the "Lean healthcare" methodology. He is author of the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, as well as The Executive Guide to Healthcare Kaizen. His most recent project is an eBook titled Practicing Lean that benefits the Louise H. Batz Patient Safety Foundation, where Mark is a board member. Mark is also the VP of Improvement & Innovation Services for the technology company KaiNexus.

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3 Comments on "A Different Take on Lean and Delphi"

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  1. Anonymous says:

    Unfortunately Delphi had great “fake lean.” All the tools and trappings, but none of the meat including development of people. I worked in several plants as a sensei for them. At first I thought they were like Toyota (I worked there), but on closer look they did not understand the philosophy. It was all show.
    The plants that won Shingo prizes SHIP quality at 3 ppm or so, but when I asked them if their operations produced at that level I was told “no, it is around 20,000.” I actually saw one at 120,000! They used containment and multiple inspections (not very lean) to get to six sigma level. They did it off line in the back of the building so maybe Womack’s tour group was not taken there!

    There are underlying issues here that lean would not help. One is that they do not manage for the long-term. That is a hard thing to change. They are lean tools focused, but have not learned the soul of the process.

  2. Anonymous says:

    There are a variety of bloggers that are taking on Womack’s latest missive on Delphi. See also Bill Waddell and Kevin Meyer at the Superfactory Blog:
    http://superfactory.typepad.com/blog/2005/10/why_delphi_is_i.html

  3. Anonymous says:

    It’s incestuous. For years former CEO JT Battenburg and Womack pursued a strategy that never attacked the problem of selling over sixty percent of Delphi product to GM at less than breakeven prices. Nobody wanted to take on the GM contract and raise prices, and Delphi couldn’t pick up new customers fast enough to fix the Income Statement. Outrageous. But Womack took heavy consulting fees and JT retired rich. Go figure.

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