CME - Survey 2006
CME Management Survey 2006. 986 manufacturers responded, pinpointing the top issues affecting their businesses.
Constraints on Performance Improvement
By: Jayson Myers (Plant)
Limited resources
Cost
Lack of qualified personnel
Lack of time
Organizational culture
Organizational structure
Market uncertainty
Lack of expertise
Communication
Supplier quality
Lack of customer demand
Availability of financing
Process flexibility
Lack of performance measures
Technological constraints
Lack of tools to support strategic decisions
Lack of information
Overcoming Constraints on Performance Improvement
Upgrading Employee Skills
Improving operating efficiency
Strengthening teamwork
Changing organizational culture
Investing in new technology
Developing new products/services
Changing management structures
Improving customer relations
Re-engineering processes
New management techniques
Outsourcing
Entering new markets
Redeploying resources
Improving supply chain management
Increasing automation
Better management information systems
Collaborating with others
Bringing in external expertise
New tools to support decision-making
Stage of Lean Implementation
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Nearly half of the companies report they are implementing improvements based on lean principles; however, only 3% report they are at the advanced implementation stage where lean has become the standard way of operating. Another 14% say extensive implementation is underway, many areas of the business are applying lean concepts and tools, and solid progress is being made. Other companies are planning or just starting to implement lean improvements.
Lean Improvement Techniques
Companies implementing lean take advantage of a number of techniques. The most popular are Kanban, 5S, Value Stream Mapping, and the kaizen blitz.
Kanban
5S
Value Stream Mapping
Kaizen Blitz
JIT
Visual Monitors
Quick Changeover
Six Sigma
Customer pull systems
Error proofing
Other
Benefits of Going Lean (Part 1/2)
Top benefits of implementing lean improvements include: waste reduction; improved operating efficiencies; speedier product lead and delivery times; reduction in plant space; speedier inventory turnover; and improved product quality. 30% report lean has improved profit performance - an important factor in any sustained effort at continuous improvement.
Waste reduction
Improved process efficiency
Faster production lead times
Reduction in plant space
Inventory turnover
On-time delivery
Improved product quality
Increase in operating profits
Reduction in warehouse space
Improved customer service
Top benefits of implementing lean improvements include: waste reduction; improved operating efficiencies; speedier product lead and delivery times; reduction in plant space; speedier inventory turnover; and improved product quality. 30% report lean has improved profit performance - an important factor in any sustained effort at continuous improvement.
Better materials management
Employee satisfaction
Benefits to suppliers & distributors
Improved purchasing management
Lower cost of materials
Fewer defects
Increase in cash flow
Supply chain efficiency
Better order fulfillment
Incease in market share
Obstacles to Effective Lean Implementation
The most significant obstacles to overcome in implementing lean are backsliding to old ways, lack of implementation know-how and resistance to change. Leadership at all management levels and on the shop floor is crucial to success.
Backsliding to old ways of doing things
Lack of implementation know-how
Failure to remove ankledraggers who resist change
Employee resistance
Lean viewed as flavour of the month
Improvements not recognized by accounting
Supervisor resistance
Lack of support from senior management
Middle management resistance
Failure of past lean projects