Every consultation is different, yet some things remain the same. People are creatures of habit, and some of the issues that are dealt with during the consultations are very similar. Three key obstacles or areas are so common that I have yet to find a company not struggling with each of them.
The first is lack of time. People say they want to make improvements, but they are too caught up in the day-to-day business to make the needed changes. This lack of perceived time seems to be especially true for the home-building industry, where there never seems to be enough skilled workers to satisfy the demand. If your group is always talking about needing more people, equipment, and time, then it would certainly benefit from improving time management. Improving time management allows everyone to accomplish more with the existing resources, which will certainly have a positive effect on net profits.
Stephen Covey, the guru of effective time management, once created a simple matrix that has stood the test of time. By dividing a common task that is urgent and important into four groups (see matrix), one can begin to understand some common-sense truths about time management. Too often, we are spending too much time in the quadrant of necessity (1) because we neglect the quadrant of quality and improvement (2).
Quadrants deception and waste (3 and 4) should be self-explanatory. Neither group is important, and both groups are characteristics of self-discipline that define an individual’s work ethics and drive.
The quadrant of necessity (1) is what too many of us are focused on. The more our time is consumed by crises, pressing problems, firefighting, reworks, and all the “MUST BE DONE NOW” issues, the more things get out of hand. How does one reduce this stress and find more time? The old axiom of “work smarter not harder” is a term that is often stated but seldom implemented. But that old axiom is the key for many of us to become more productive and effective with our time. Essentially, we will have more time by reducing mistakes, producing more with greater skill and speed, and creating system processes that do not need our constant supervision.
More time needs to be spent completing more of the tasks in the quadrant of quality and improvement (2). Taking the time that always seems to be in too short of supply takes a concerted effort and active support by the entire management team. Failure is almost certain if it is delegated to a department head without the active participation of the entire management team. It has to be more than just talked about; everyone must play his or her role. Does your company support training and development, or are such issues not addressed? What kind of returns could a company expect with an active training program?
- Depending on the department and task, most case studies state that there is an average gain of 5% to 25% in productivity directly related to training programs. So, even if your company’s training results are on the lower end of 5%, you can see that it should be well worth the investment of money and time.
A perfect example is training and the implementation of lean manufacturing practices in every area of your company, not just the manufacturing. Common results across numerous case studies for effective lean manufacturing implementation are as follows:
- Increased overall productivity;
- Quality improvement while having lower reworks;
- Shorter lead time for scheduling;
- Lower overall cost while improving net margins; and
- Higher net profits for companies implementing an ongoing lean manufacturing practice compared to those who do not, according to every case study published on this topic.
The next key obstacle is to improve the overall system processes by making them mistake-proof, simplified, and automated. The improvement of the system processes should always be one of the top priorities of any manager. Too often the focus for process improvement is too segmented and only focused on the given area a department manager is responsible for. What might be best for a given group, such as design, may not be best for admin and manufacturing. This system-improving process needs to be a holistic approach. A great example and a further explanation of this are provided in the December issue, “Mistake-Proofing the Communication Quote and Order Process.”
The final and most serious key obstacle to improving your operations is overcoming the pride or ego of individuals. According to psychology studies, “Modern cognitive theory states that people tend to perceive reality in light of pre-existing expectations and will ignore large amounts of contrary data before finally changing their minds.” In other words, we perceive the world the way we want regardless of the evidence that demonstrates an opposing viewpoint. Why is this so often the case? The answer is simple but difficult to overcome. In one word, it is pride. We cannot see that change is needed, or if we do indeed recognize the changes needed, our pride blinds us and prevents us from admitting it. Too often this is driven by a perceived threat to our area of influence and, therefore, fear of lost power. We allow our pride to perceive everything as being right or wrong, as if by admitting that change is wanted or needed, we are saying, “We were wrong, and they were right.” What worked in the past was a good thing, but evolving to meet the challenges of today does, in fact, require us to make changes and see things from a new perspective. To embrace better ideas, we need to set aside pride and listen to others with a different perspective and experience. Thus, we must not allow fear to stop us from challenging our preconceived ideas. I can tell you from experience that I have seen the results time after time and that making positive changes garners significant net-profit gains that many are simply blind to while others can see them so plainly.
As a final word of caution about embracing and trying to implement better processes, like any new idea, there is a normal surge of enthusiasm in the initial stage. However, once the difficult task of actual implementation starts, it can easily falter. There are numerous reasons for this, but understanding better ideas such as lean terminology and applying them are two very different things. I have been refining my understanding, training, and implementation of best practices for the past 15+ years as a full-time lean consultant. I cannot state this enough: save your company a great deal of time and money by getting professional help with the training and effective implementation of lean manufacturing from Todd Drummond Consulting. Most companies average a three- to six-point gain in net profits from implementing my suggestions. Having stated that, even a one-point gain far exceeds the investment of time and money for even the smallest companies.
Todd Drummond Consulting LLC.
www.todd-drummond.com Phone: 603-763-8857
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