The need for lean optimization of production is always there

The economy of a warring country is always facing challenges that are larger, and more acute than those that have to be overcome in peacetime. Accordingly, the same challenges arise for all industries, and furniture among them is no exception. We have to work and produce products under a number of limitations, difficulties, and problems, in which only competent optimization of production processes, finances, labour resources, management processes, and sales will keep the level of profitability, the profitability of the company at a sufficient level for its production. Realizing this, the management of the Ukrainian Association of Furniture Manufacturers held another webinar for its members and timed the topic of optimizing the production company. Always relevant, and now especially. And she invited lean expert Olga Peretyatko to be the webinar speaker.

 

 

First of all, Olga assured us that lean processes in companies during the war not only did not stop but also intensified. And this is quite logical. Otherwise, it is incredibly difficult to withstand the pressure of adverse wartime circumstances.

In short, optimization is the choice of the most useful, most effective opportunities and solutions in adverse situations with the economical use of resources. In this case, we are talking about lean optimization, which is deeper than, so to speak, the classic optimization. It requires those who want to undertake optimization changes to answer three essential questions: why? why right now what will it give?

So the first thing is that you have to answer to yourself and your team why a company needs to use its potential and resources more efficiently. Here you can not do without such concepts as “value” and “loss”. Value is what a company creates as a result of its activities, which satisfies the needs of customers, consumers and society. Losses are what prevent production from creating a product, creating value. Reduce its cost. So only by understanding the nature and scale of the losses that are in your production, you can think about how to get rid of some, and others to minimize what tools will be needed and effective. Actually, here you will find the answer to the question “why?” And by answering the question “why do you need this?”, You, as a leader, and your team can easily answer two other mandatory questions.

And here it is important to understand the depth of lean optimization, which distinguishes it from traditional: if traditional optimization aims to optimize (reduce) losses, then lean optimization aims to eradicate the root causes of losses.

Practice shows that often those who seek lean improvements and dare to implement them, are captivated by illusions, which must be eliminated in order not to be disappointed with the result, or rather – without effectiveness. One of them is that everyone in the company will take the idea of reform with a bang, and everything will go “like clockwork”. Therefore, before the company enters the optimization process, it is necessary to understand its need to “instil” the whole team – from the volume manager to the cleaner. To do this, it is necessary to convince the heads of all departments – especially directly production (foremen, foremen) to become true leaders of change. They must be imbued with a deep understanding of their need and a desire to lead these processes in their field, in their shop, having mastered the tools of optimization. Otherwise, the grassroots will inevitably resist these processes, as is usually the case with the introduction of any innovations that take workers out of their comfort zone and deprive them of what they are used to. It will be useful not only to verbally persuade the team of the need for change, but also to show the positive results of other companies, and even financially stimulate the employee’s focus on achieving lean results, and even more – his real achievements in this process.

Another illusion or misconception: let’s identify a person or group of people who need to master lean techniques and tools to run lean optimization processes in a company. It does not happen, nothing effective will come of it. Such appointees will find themselves between two lights – between the resistance of the team, unprepared for change, and the dissatisfaction of management with the futility of the venture.

It is also wrong to think that using one tool or the principle of improvement selectively (say, one of the 5S principles) will provide the lean performance you expected.

An important principle of lean optimization: act correctly, not faster. Between these concepts is actually a direct relationship. In the pursuit of something, some mistakes and omissions will inevitably be made, which will later grow into problems that will hinder development. That is, “fast” does not mean “better”. Conversely, doing slower, but more carefully, more correctly, in the long run, will be more beneficial than someone who did something hastily and not always correctly. With regard to production processes, “correct” – this is in compliance with existing rules, standards, norms, methods, and templates.

In order to achieve the effectiveness of the efforts to optimize production and management processes, it is necessary to observe (at least two hours), record and digitize losses and develop strategies and tactics to counter them.

Presentation

Olga Peretyatko can be contacted for individual and more thorough advice on lean optimization. The UAFM’s Directorate will help to contact her.