Business processes, no matter how refined, can always be further enhanced. This notion is key to the philosophy of Kaizen and Lean manufacturing. Mary Andringa, CEO of steel producer Vermeer Corporation, has witnessed this firsthand, with her company still improving its manufacturing processes 15 years after first learning about Kaizen.
Speaking with IndustryWeek, Andringa advised manufacturers looking to go Lean to focus on one specific production process at a time. This enables companies to really hunker down and devote all their attention to getting the most out of one specific function, rather than spreading themselves too thin across a number of production lines. This will also help them focus on learning Lean manufacturing and deploying strategies that are actually effective.
With Andringa's first “learning line,” the company was able to significantly reduce the amount of time spent producing raw steel from 52 days to two. Additionally, hours spent per unit declined from the low 80s to the low teens, while customer service, product quality and employee safety shot up. Lean manufacturing led to an improved performance across the board for Vermeer Corporation.
“It was the commitment of both executives and employees that produced results,” IndustryWeek notes. “While executives attend Kaizens on a regular basis, 70 percent of the employees have been on at least one Kaizen event. The company sponsors continuous improvement blitz weeks where plants across the globe conduct Kaizens resulting in best practices that are then shared across the company.”
Lean healthcare
Vermeer also used Lean to improve its healthcare processes. The company has been self-insured since the 1980s, when an on-site medical clinic was established. Vermeer also added a pharmacy run by Walgreens, the news source notes, so even though the pharmacy is used 15 percent more than in other companies, the average cost is 30 percent less.
“Services, which are offered to employees and spouses, are provided with an average wait time of one minute. We did a Kaizen to create that process,” Andringa said.
“We found out that prior to the establishment of the clinic 30 percent of our employees didn't have a primary care physician. As there were no preventative measures employees could face serious illness and trauma and the company was facing some large costs,” she added.
Lean processes can be leveraged to achieve other goals as well. For example, Nike applied Lean to its manufacturing process as a means of hitting sustainability objectives.