Conventional organizations are created around functional and departmentalized thinking. Similar functions are centralized and that entity is known as a department. Examples for departments are production, accounts and human resources. In a conventional management individual departments operate in their own. Each department has it’s own set of targets to achieve. Performance of that particular department is measured against these key performance indicators or KPIs. For an example production department will work to achieve it’s target in efficiency while human resource department will work on keeping to it’s KPI in achieving low labor turnovers. Let’s say every department achieved their own individual targets. Still will this organization e effective. In the general case it is not.
One of the main problems any conventional organization face is their inability to focus on customer. The reason is simple. It is sub optimization. Your customer won’t mind how efficient your production facility is. Customers will only see your products. They want to get good quality products for lower prices and with shorter lead times. They might also consider about the environmental impacts and other social compliance standards when they buy products. How are you going to produce something valuable for your customer with a system which is fully focused on it’s own operations.
Lean treats sub optimization as an enemy due to it’s incapability to stand up to the customers requirement. Organization is a single entity from the customer point of view. Then the total organization must be focused on delivering value to the customer. Parts of that organization called departments can not deliver this value to the customer.
One of the biggest mistakes many organizations make in their lean efforts is thinking of making their individual departments lean. It is true that any efforts should have a starting point. Lean implementation is not an exception. But if your starting point itself is wrong then your system will be a failure for sure. Before thinking about implementing lean manufacturing in your organization get use to customer focused thinking. Start to think how you as an organization can deliver value to your customer. Lean efforts should start at least within your full organization not in parts of it.
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From my opinion, it is true that many conventional manufacturers stuck on the model of increasing efficiencies to reduce time for production and reduce production cost. But it is to be concerned by the conventional manufacturers to recognize the customer needs most, because the customer itself is crucial things for the manufacturers. It is true that developing the lean implementation for the manufacturers is needed. But as it mentioned in the above articles we must have strong based system to develop the lean implementation. So the first step to became good manufacturing is first we need to know what the customer requirement. Then after we can fulfill the customer requirement, we should proceed to the lean implementation. If this event simultaneously applied in the conventional manufacturers, I’m sure soon enough it’ll become prosperously.
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