The construction industry has been mired in an environment that has been siloed and antiquated for years. The view has been that things have always been done a certain way and there is no reason to change. Meanwhile, numerous industries have embraced lean methodologies and have significantly reduced waste, improved efficiency and delivered higher quality products which meet or exceed customer expectations. Surveys show that at least 50% of processes involved in planning and construction are wasteful. The industry has adopted lean construction methods, which are starting to change an industry that lagged behind others.

Learn more here about lean construction!

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Boeing builds the venerable 737 workhorse at a rate of one every nine days! That is a monumental feat of Lean manufacturing. The Boeing 737 is the workhorse of many airlines across the globe, flying short and medium range flights. It was originally designed in 1964 and took its first flight in 1967. In 1968, Lufthansa airlines put the Boeing 737 into service across their service areas. Since its inception, the aircraft has been through numerous upgrades and modernization changes that continue to make it an in-demand aircraft among airlines. As of 2006, there were an average of 1,250 Boeing 737s airborne at any given time, with two either departing or landing somewhere every five seconds. 

Watch this video and see how they do it!

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Since 2006, Great American Cutlery has built the reputation for making the finest quality traditional pocket knives in the US. Located in historic Titusville, PA, the brand focuses on a hands-on process which yields the most beautiful and high quality pocket knives on the market. Their products exceed expectations from customers by producing a product that first became a mainstay in the late 19th century.

Check out the unique insights to the process that is Great American Cutlery!

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Take a step back in time with a vintage Honda factory tour! Since 1959, Honda has been setting records. They are the largest manufacturers of motorcycles and internal combustion engines in the world. In 2001, they became the second largest Japanese auto manufacturer. Honda also manufactures garden equipment, marine engines, personal watercraft, power generators, and other products. Since its inception, Honda has applied the principles of Lean manufacturing, and this timeless video will take you back and show you how they do it.

Take some time and enjoy a flashback in Lean manufacturing!

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Push and pull models of manufacturing are two major approaches implemented by organizations. The decision on which approach to use is often based on their business strategy. Push and pull-based models in manufacturing starts at the planning phase and continues through the execution stage.

Watch this informative video on Push/Pull Production!

https://youtu.be/a7YvJB0n16I

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In Lean production, it is commonly understood to use pull production instead of push production, which is implemented with a Kanban system. But what makes the pull production system the way to go?  Why not use a push production system? For most, the answers are about as clear as muddy water.

A pull production system simply limits the amount of work in a process which can be in the system. Work methods that use pull systems allow people to manage the flow of resources by limiting work in progress and allowing those doing the work to focus. They are driven from a high level that strictly focuses on capacity and material based on actual customer demand. Pull production design is perfectly balanced due to the demand placed on the organization. They are designed to be agile, with the ability to quickly respond to any changes in customer demand. It is often referred to as a Kanban’ system, which is a method for planning, executing and replenishing inventory that allows for greater control.

Push production revolves around extensive planning and forecasting. It does not have limits on the amount of work that can be in the system. The common assumption in a push production system is that everything remains constant. Everything that is required for capacity is on hand, which includes inventory and support staff. Even though it seems agile and proactive, in reality it is not. Often, pull production becomes obsolete before being executed because of the every changing market environment and customer demand. It is slow to adjust to these variations in a manufacturing environment.

While push production is heavily front loaded with planning and forecasting, pull production is agile and customer demand focused. It remains flexible enough to meet ever changing market adjustments and customer demands.

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In taking a cue from manufacturing, marketing departments are embracing the principles of lean agile practices. Research shows that over the past five years, 77% of marketing departments have embraced lean agile principles, and 67% of those have shown increases in both revenue and profits. Needless to say, lean agile principles are making an impact in the marketing community.

Please take some time and watch this informative video on the topic!

https://youtu.be/j-r5W_Eq4G4

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Marketing professionals are starting to take their cues from the manufacturing industry and adopt lean agile principles to improve performance and value. A common tool in lean agile practices used in manufacturing are sprints. The two practices are complementary, and achieve significant results when applied appropriately.

Recently, a marketing director with a Fortune 100 organization observed the lean agile process of sprints in their engineering team. They would use month long bursts (sprints) to create and test the potential value of projects. At the end of each sprint, the engineering team would examine what worked and what didn’t. If it was deemed a success, the process was adopted. If it didn’t, then the process was eliminated from consideration. The marketing director found inspiration in the process and success of the engineers, and imagined the same success in the marketing department. Research shows that 77% of marketing departments had adopted lean agile practices in the past five years. Of those respondents, 67% of those organizations increased revenue and profits. This clearly shows the potential of lean agile practice performance in the marketing profession.

Marketing Lean Agile Sprints Work

In this specific marketing department, the director adopted the lean agile process of their engineers and started on a new journey of excellence. The director prioritized a list of their most important projects and delayed lesser ideas until later months. They went to work and ran sprints on their top priorities. When they made their marketing process more customer centric, they also found they started sharing a common language with others in the organization. The overall team started working together and better understanding individual roles. The marketing department developed the process to where they would run a large project and two smaller ones each month. They were able to focus the efforts of marketing to better fit into what the rest of the organization really need form the team. They developed a year-long plan for their sprints, which significantly improved the overall effectiveness of the marketing team. The marketing department was better able to say no, not right now to requests and really focus on what made a difference for the entire organization. The entire team was able to become more comfortable with both failure and honesty. It was like new life came into the department. A mindset developed within marketing that they could experiment with campaigns to reduce workload and effort when putting a new product into the marketplace.

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Leading in turbulent times requires a deliberate shift from command-and-control towards a collaborative style of leadership. This may be easier for some than others. It requires a shift in mindset! The idea of collaborative leadership requires individuals at all levels take initiative and act in ways that supports the achievement of the vision, purpose and objectives of the enterprise. The freedom to take risk, to fail, to engage in constructive conflict, to participate in decision making and to experiment, learn and innovate. This is collaborative leadership.

Take the time to watch this informative video!

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PDCA is all about innovation! By using a methodical approach to problem solving, PDCA is one of the most valued tools available to Lean Manufacturing. When applied properly, PDCA creates a culture of innovation throughout the manufacturing process. It prevents decision paralysis, and methodically moves improvement forward through measured trial and error.

 Watch this educational video on PDCA!

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What can be said about sales. It is that mysterious department located away from everyone else. You see them come and go, but you don’t really know what goes on behind closed doors. They are never seen at meetings or training because they are out in the field.” So, there is the common misconception that they are not really part of the operational organization and are left alone to their own devices. If that were true, then why the heck are they even here? How possibly could you get the sales staff “back into the fold” for the organization, hold them accountable and apply lean principles to their workflow? If you step back from the misconceptions and emotions of the situation, you will find that accountability and lean principles can apply to a sales force and can be very effective.

One thing you must keep in mind is that sales is about revenue, which is the lifeblood of any organization. Whether you like it or not, without sales, an organization will dry up and wither away. Organic sales from existing customers will only support things for so long. New business or fresh sales must be consistently infused into an organization to keep growth moving up. Most CEOs from Fortune 100 companies will tell you that every young leader in an organization must spend some time in sales. It is crucial for building a successful leader. It provides a unique perspective and understanding of how the entire business holds together from start to finish. With that in mind, it takes certain skills and a mindset to be a successful sales representative. However, those exceptionally successful in sales will also tell you that the core of the sales cycle depends not only on relationships, but using the same processes every time to close deals.

When applying lean principles to sales, we need to be thinking about who are our customers, how do we value them, and how do we create value for them? Then you must understand what experience do we want to create through the entire journey from before they buy, through the buying process, and implementation. You must have a clear idea of this philosophy, or you can’t make the decisions that enable you to implement the philosophy through our organization to the customers. You must align sales with the customer’s buying process, maximizing their ability to win is fundamental. There are any number of ancillary processes in the sales process, which must be aligned.

Lean principles from manufacturing can be directly applied to any sales process, across any industry. It is really just about understanding the customer thoroughly and then applying the processes that are unique to a sales organization to achieve results. It takes a constant focus with a dedication to continuous improvement to achieve results.

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