Census of Manufacturers
Along with the profiles of this year's Industry Week's Best Plants Award, the latest issue includes the latest census data on continuous improvement. Of course, a survey question being checked on a website is far from direct observation (or gemba), but the results are interesting anyway. Here's the snapshot of what companies say they are using:
- Lean Manufacturing – 40.5%
- Total Quality Management – 9.9%
- Lean and Six Sigma – 12.4%
- Other – 5.2%
- Agile Manufacturing – 3.8%
- Theory of Constraints – 3.0%
- Six Sigma 3.1%
- Toyota Production System – 3.1%
- None – 19.1%
So what percent are doing lean? Adding to the base 40%, we have to add “lean and six sigma” because they are doing both, and must add Toyota Production System, because they at least aspire to be the same thing. That brings us to 56%. Despite being attached to it at its beginning, most efforts at Agile, despite saying that agile it “beyond lean”, are really an attempt to become lean. Furthermore, I've run into many companies that have renamed lean something else and don't even know that what they are doing is at least based on lean. So let's assume (which is as dangerous as reading these results in the first place) that half of the agile and “other” companies are also doing lean. That adds another 4.5% bringing the total to 60.5%.
What conclusions should we draw? Perhaps none, but it is clear that lean is a big part of manufacturing success. What were last years numbers? Using the same flawed addition I used before, the total is 50.9%. That's a big climb. I would argue it's too big a climb. Why? Because there is a reason that the MAJORITY of companies pursue lean. It's not to save costs. Or become more competitive. Or improve quality. The REAL reason most companies pursue lean is because EVERYONE ELSE IS. This is a horrible reason, and I believe that it will lead to poor execution and ultimately, a bad taste in people's mouth for lean as they experienced it.
Another surprise is that over 19% of manufacturing companies have chosen to do nothing. It's not even that they SAY they are doing something but really aren't. These companies actually check the box that says they are doing nothing. This is amazing. I just can't believe it. Well, considering my travels and what I see in industry, I can believe it but am saddened by it.
Further into the article, there are other things that concern me. The #1 thing that concerns me is that 1.4% of companies believe they have “fully achieved” world-class status. Wow! They must be awesome…or, they are kidding themselves. I believe its the latter. Most companies that are really world-class are that good because they BELIEVE they are so far from being world-class. And they would NEVER say they have fully achieved it.
So, that's some rather rough statistical analysis and conclusion-drawing. What conclusions do you draw? And, what do we do about them?
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? Scroll down to comment or share your thoughts and the post on social media. Don't want to miss a post or podcast? Subscribe to get notified about posts via email daily or weekly.