A collection of resources and commentary providing an introduction to supply chain management and related systems for students, practitioners, and anyone else interested in learning more about how to design, manufacture, transport, store, deliver, and manage products.
Tuesday, February 4, 2014
Case Challenge that will set your foot into the Lean Transformation Consulting space
I would have made this blog a
boring one by just writing down an article “Lean Transformation for a
Textile Manufacturer” but I am not going to do that here. Rather I will
take a case based approach to explain you what happened. I will request all of
you to first read the case challenge and try to analyze based on your learning
this week and then look as the analysis of the case.
Client: Leading Textile Manufacturer
Annual Sales: $15 billion++
Rising input costs and shrinking margins
spotlighted the need for heightened efficiency. Long production lead times and
large inventories were just some of the places that needed a complete makeover.
The client tried to implement six sigma capabilities but nothing improved. As a
part of the new initiative launched by the CEO the manufacturer sought a firm
foundation for Lean Transformation and performance improvement.
You are an external consultant
and you have been given the lead role in transforming the business by using
Lean Manufacturing methodology. Do a step by step analysis of how you will
execute this challenge.
After the project kick off the
first thing that needs to be done is involve all the key stakeholders and
conduct their interviews and try to understand what their opinions and ideas,
besides this also try to clear if there is any smoke. After you are clear what
is actually desired out of you meet the functional experts and prepare a
business blue print of their current AS-IS business processes and start conducting
operational assessment across all the business units by using the FIT-GAP
methodology. Where tag a process as FIT that does not need a change and tag a
process as GAP if there is a scope of improvement. After all this prepare a
project metrics, list all the projects and their potential value once executed,
comparing estimated effort and financial impact.
Once the key projects and
problems are identified as per my analysis I would suggest them numerous short duration
kaizen events. Kaizen is a fast paced and effective method that has been
used worldwide to produce rapid results. In order to build enthusiasm and to
showcase to the leadership of the company first let us prototype lean
methodology. Choose key processes in this company and implement you lean
strategy and collect the data at the end of each day for 4 weeks. After 4 weeks
you can compare the metrics (lead time, inventory time etc.) with the previous
non-lean process and showcase the result to everyone. This will definitely help
you gain confidence in the organization. Once the results are positive,
implement your lean strategy across all shortlisted process in the organization
and watch the lean process results closely for the next 2 months. Once you
leave the organization you should have certain KPIs that will help the
organization in running the process.
Besides all this put key focus on
change management as well, Train internal consultants from the organization who
will lead the complete transformation experience and help train their peers.
Below diagram shows the workflow step
needed in case of lean transformation.
I hope this analysis has further
solidified the learnings you made during this week at SCM course and has also
improved you case solving abilities. Remember that there is no wrong or right
methodology for solving case or in fact doing a real world consulting project. It’s
a high probability that you could have thought of something which has never
been done before. So be confident and all the best for EOC and subsequent job