We’re Not Done with Waste

    2
    0

    WSJ.com – In the Lead “For Now, the FocusIs More on Innovation Than on Budget Cuts”

    Free version here

    This column goes into the category, almost, of the “what's beyond lean?” article that pops up from time to time. The trend is to talk about “innovation” as if you can't have efficiency and innovation. Look at Toyota, they manage to do both.

    Innovation is the latest management mantra for a growing list of CEOs, especially at big, established companies who for years have fixated on reducing budgets. With just-in-time inventory, outsourcing and other cost-squeezing measures now widespread, executives know their companies must become more creative to capture customers in the global market.

    At least you can read between the lines here and say we've “done JIT” (maybe many or most companies have “lean” materials — a potential misuse of the word “lean”). Even if you have a kanban system in place (more likely we've pushed inventory back on the suppliers), you most likely do not have a true lean culture and widespread lean practices. You most certainly haven't cut all of the waste out of your system.

    At General Electric, CEO Jeffrey Immelt is telling managers that no matter how efficient their work processes, they won't achieve his goal of 8% organic growth unless they have great products and services to sell.

    Well, of course. What's with this stupid artificial “either/or” between efficiency and innovation? Lean, done right, brings “efficient work processes” as well as quality or “great” products (“JIT inventory” alone doesn't ensure quality).

    Don't let the innovation talk fool anyone into thinking that lean approaches are passe or “done.” Lean never was about mere “cost cutting” or “budget cutting”. The author seems amazed at the following:

    Cost-cutting and manufacturing efficiency have been main concerns for CEO Robert Lane since he took charge six years ago. But he hasn't cut spending for research. He reminds employees that Deere was founded in 1837 after blacksmith John Deere invented a steel plow that worked well in prairie soil. The company's ability to keep inventing new products that are useful to customers is still the key to Deere's growth, he says.

    He hasn't cut R&D. Of course not. Lean, innovation, whatever buzzwords you want to throw at it, he's running a business and slashing R&D to hit profit goals is never a smart approach.

    Please check out my main blog page at www.leanblog.org

    The RSS feed content you are reading is copyrighted by the author, Mark Graban.

    , , , on the author's copyright.


    What do you think? Please scroll down (or click) to post a comment. Or please share the post with your thoughts on LinkedIn – and follow me or connect with me there.

    Did you like this post? Make sure you don't miss a post or podcast — Subscribe to get notified about posts via email daily or weekly.


    Check out my latest book, The Mistakes That Make Us: Cultivating a Culture of Learning and Innovation:

    Get New Posts Sent To You

    Select list(s):
    Previous articleExploring Lean Manufacturing Principles: A Conversation with Norman Bodek – LeanBlog Podcast #1
    Next articleWrong Visual Controls and a Lack of Problem Solving
    Mark Graban
    Mark Graban is an internationally-recognized consultant, author, and professional speaker, and podcaster with experience in healthcare, manufacturing, and startups. Mark's new book is The Mistakes That Make Us: Cultivating a Culture of Learning and Innovation. He is also the author of Measures of Success: React Less, Lead Better, Improve More, the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, and the anthology Practicing Lean. Mark is also a Senior Advisor to the technology company KaiNexus.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    This site uses Akismet to reduce spam. Learn how your comment data is processed.