Learning to love lean

Manufacturing News, Source : The Manufacturer US
Published : 08 Sep 2003 15:01

According to a survey of Fortune 1000-type companies released this month, some performance management systems like Lean and Six Sigma are widely known among manufacturers. And for 87 percent of American managers whose companies use them, they also like them.

According to a survey of Fortune 1000-type companies released this month, some performance management systems like Lean and Six Sigma are widely known among manufacturers. And for 87 percent of American managers whose companies use them, they also like them.

“(They) are important in helping to create a climate of involvement and commitment among employees, which in turn leads to improved morale, quality, speed of innovation, and discipline,” says Dr. Mike Kowal, senior division vice president, operational effectiveness, of RadioShack Corporation. “The outcome of these changes will be seen in tangibly better products and services, and ultimately in improved customer satisfaction and profit.”

“Performance management systems are one contributing factor enabling companies to increase control over their destinies,” says Michael Wootton, vice president of manufacturing industry practice in the Americas for Celerant Consulting, sponsor of the survey. “American managers whose companies have used performance management systems like Six Sigma and Lean Manufacturing strongly endorse their effectiveness in helping to improve product and service quality. They see a clear linkage between improving product and service quality and increasing profitability, and view performance management systems as critical to bridging that gap,” he says.

Respondents were also quick to point out, however, that just adopting one of these systems is not a cure-all. 73 percent of the executives interviewed agree that having a “Black Belt” in performance management is not in itself sufficient for improvement and time efficiencies. To optimally work, the system must be embraced by all levels of an organization.

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