"When Lean Companies Stay Fat"

Paul Loftus

CEO Magazine

October/November 2006, pp. 44-47

This article uses a dieting analogy to examine why many companies cannot sustain their lean initiatives: "Much like fad dieters, most companies drift back to bad habits."

The author states that in order to succeed, lean manufacturers must:

• Make lean manufacturing a way of life—Everyone in the company, from top to bottom, must be committed and involved in changing the company's culture along lean lines. Elimination of waste and a spirit of continuous improvement (kaizen) are crucial.
• Recognize that long-term success involves far-reaching change—"The starting point for any successful lean organization is defining multiyear objectives across the enterprise and devising a plan to get there." Objectives must be coordinated across departments. Lean must also be applied to the broader supply chain.
• Get on and stay on the scale—Companies must devise and use appropriate measures. Results should be shared with everyone involved in the program's success.
• Avoid the big letdown—Unexpected spikes and slumps in demand can throw a company off course. Successful lean manufacturers manage to keep on in spite of setbacks, mainly because they have made sure that all aspects of the business are committed to the lean effort.

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