Implementing Lean in a Down Economy. Yeah, Right!

Discover the advantages of implementing Lean when the economy is not so good!

Every day, I am finding it harder to listen to the news stations because things appear to be getting worst. When I do turn on the news, I listen in the hope that something positive I happening. People can only take so much bad news at one time. It is not a great place to be when someone has lost his or her job. For many people their pride and dignity are associated with having a job. Without a job, a person can find himself or herself in a hopeless place, with no future. I don’t usually get political in my blogs or articles but I find this one to be a really important issue. What was the real cause of the economy taking a dive?

Based on all the conflicting viewpoints I cannot prove the real reason for the economy taking a dive! I can hallucinate that it was gross mismanagement at all levels of the government and business sectors. Companies operate and grow by borrowing money but the financial sector controls access to this money. Over the last decade, the banks gave too many businesses a golden shovel and watched them dig holes. The problem was that when the holes got too deep the banks did not take the away the shovel. They allowed them to continue to dig and dig and dig, knowing that the day would eventually arrive when everyone was going to have to pay the piper.   Any business without cash flow is limited to what it can do.

So now, I can get to my Lean part of the discussion. What every business can start to do is convert non-value added activities into value added activities. There is not one business on the planet that can stand up and shout, “We are muda or waste free.” They would be telling a lie. Every company must take stock in a down economy and assess their current situation. Once they understand where they are, they can plan for tomorrow. Forward thinking companies are not sitting by waiting for the economy to turn, they are being proactive and taking steps to prepare themselves for when the economy rebounds. Implementing some simple lean tools to identify and eliminate waste would be a good start.

A small 5S project will start the ball rolling. It might even spark some enthusiasm and improve the morale of the people who still have jobs. Survival has become a daily event for some organizations. Many believe they can improve the situation by working harder, this is not true in today’s global economy. The truth is, when any organization starts to think and work smarter, they energize their employees to unleash their creativity and they will soon begin to see positive changes. Change must be managed, it cannot be left to chance.

Change starts by changing minds. “If you can’t change your mind, you can’t change anything” – George Bernard Shaw.