Technology Trap—Buying
Manufacturing Excellence and/or Downsizing as the Solution
In
improving business performance, the choices boil down to three
areas:
1. Buying technology
2. Downsizing
3. Changing the way we
run the business
Examples
of technology are world class robots, hardware, software automation,
etc., hard tangible purchases. Historically, the easiest of
these three choices has been to buy technology. You can touch and
feel this choice; it is nonthreatening. People will not have to look
at themselves and their performance. Somehow automation will solve
the management and efficiency issues and, of course, people will
know how to use this new software information generated and make
better decisions and integrate the technology into the business
strategies. The perception is that the source of business problems
is always a technology issue—enough information or getting the
information or reducing costs by eliminating people.
This
"buying manufacturing business excellence" attitude is not
surprising considering management's fear of change and unwillingness
to find fault when looking at themselves. This is why you see
"manual ware" software with thousands of modifications,
and integrated world class software overlaid on disjointed
management processes. It is like the author's using Jack Nicklaus'
personal golf clubs. It isn't the clubs, it's how you use them
that's the issue, but to acknowledge that need for lessons instead
of clubs as the core issue is extremely hard. I know, I own seven
drivers!
It has become very
obvious that companies, to become more competitive and profitable,
have reduced staff and received a short-term benefit from this
reduction or downsized staff. By wholesale cuts we have said to our
employees—in a sledgehammer sort of manner "Become more
productive or else!" But as Milton Friedman so succinctly put
it, "There is no free lunch." Have all of these employees
we have jettisoned done nothing or had little or no impact on
business performance? Have our internal and external customers said,
"We know you have few people so we will demand less?" Have
the tasks gone away? Of course not! What has happened is that we
expect people
to work harder to achieve the same results. But are the
people making better decisions in the 12th hour of being at work
than they made in the 8th hour before our downsizing? Do our
employees have the time to invest in the future growth of
subordinates or plan for improvements? Have they had the time to
learn how to become more efficient at their jobs?
It has
been our observation that if you don't give people the time to
improve there will be little, if any, improvement. Just because it
is a corporate mandate to improve the business doesn't mean it does
get done. Downsizing may have a positive short-term impact but may
be a long-term detriment by slowly bleeding the life out of a
business because of the lack of time to improve the business
operation. What will make downsizing work over the long-term is the
achievement of world class levels of performance. By controlling
and managing the business processes people will free up the time
required to manage and grow. By working to a defined plan day-to-day
demands will be met without the need for micro management of
unique solutions requiring non-value-added activities. By
eliminating variances in the business operations and the
communication process people will be working on the right things at
the right time for the right reason. We will plan what we do and
execute the plans, eliminating much of the non-value-added
activities that are inherent in managing processes on an
hour-to-hour basis.
Simply
put, the only way downsizing works is if we teach people to work
smarter, not harder, and allow management the time to invest in the
continuous improvement of the business and its long-term growth.
In
looking at the three choices outlined, there is no significant
long-term competitive edge in buying technology in a vacuum.
Everyone in your industry can purchase the same technology.
Technology and automation are more and more upgrades versus complete
changes. The only significant competitive edge that can't be bought
is people and their skills in running a business. Changing the way
we run our business is the focus that will produce 75% or more of
the return on investment in a world class manufacturing project.
Consequently, the focus of this presentation is on world class
manufacturing concepts and initiatives—not technology. Downsizing,
robotics, or technology-type initiatives, in my experience, are
appropriate to examine only after significant work on the way we run
the business-type management issues.
Inability to manage
change
The
fundamental issue that causes project failure is that change
creates discomfort. People feel comfortable with the status quo.
There is stability in our lives when we know that things are not
different. We like routine.
Very
bright and well-intentioned individuals, even with a very correct
strategy, fail because they don't understand managing change. They
edict change and ignore the fundamental fact that the success of
improvements is the result of many people embracing and instigating
this
change.
If not the source of change, people's natural reaction is going
along, non-involvement, or in the worst case, verbal sabotage. If
you wait long enough it will go away is the attitude toward
improvement.
The
only way change is accepted is if there is strong leadership and
change becomes an evolution rather than revolution. Leadership is
required to allow the charter without repercussion to challenge the
givens and current practices without repercussions. It also outlines
the consequences of not embracing change disemployment or
non-promotion.
To make change an
evolution rather than revolution there must be a catalyst for
change. This catalyst allows everyone involved to have a stake in
the success of the change process and ownership of the project.
World Class performance is achieved by many people, taking many
small steps together that culminate in large results. This
catalyst to involve people is an applied interactive education
process.
To be Continued
STAY
CONNECTED
To
stay current on lean manufacturing
process and best practices,
you can subscribe to our free
weekly bulletin, "Manufacturing Basics and Best Practices
(MBBP)." Simply fill in the below form and click on the
"Subscribe Now Button."
We'll
also send you our free
Special White Paper Report,
"8-Basics of Lean Manufacturing for Personal and Company
Success."
Your
personal information will never
be disclosed to any third party.
privacy policy
Here's
what one of our subscribers said about MBBP Bulletins:
"Great
articles. Thanks for the insights. I often share portions of your
articles with my staff and they too enjoy them and fine aspects
where they can integrate points into their individual areas of
responsibilities. Thanks again."
Kerry B. Stephenson. President. KALCO Lighting, LLC
Manufacturing
Knowledge you’ll not find at offsite
seminars nor in the books at Amazon.com
Lean Manufacturing - Balanced Scorecard
ISO 9000:2000 - Strategic Planning - Supply Chain
Management - MRP Vs Lean Exercises - Kaizen Blitz
Lean Six Sigma - Value Stream Mapping