The
Newsletter of Lean Manufacturing & Factory Science
22
November 2004
When Strategy
Is Derelict
In
most companies, Manufacturing Strategy (or Operations Strategy) is not so
much faulty; it is non-existent. The negative consequences are
wide-ranging, severe and difficult to correct. Here are some examples:
-
Functional
departments become Balkanized.
-
Marketing
promotes unprofitable products.
-
Scheduling
optimizes software at the expense of inventory.
-
Manufacturing
Engineers buy disproportionately large-scale equipment that
increases material handling and inventory.
-
Accounting
focuses on direct labor when the real problem is overhead cost.
-
Short-term
operating decisions produce long-term negative consequences.
-
Manufacturing
outsources inconvenient products while purchasing is unprepared to
cope with the resulting inventory and quality issues.
An excellent manufacturing example
is Wickham Skinner's classic case study, "The
Great Nuclear Fizzle."
Is
Lean Manufacturing not a Manufacturing Strategy? Well, the
original development at Toyota was certainly strategy. As practiced by
many firms today it is more of a prescription: strategy without the
strategic thinking. Our series of articles on Lean
Strategy explains how to forge the collection of lean techniques into an effective
strategy, customized for your markets, products and processes.
I
hope these articles stimulate your thinking. They can lead to a more
effective Lean implementation, improve profitability and help your
organization succeed.
All
the best for the coming holiday season from the Strategos
team.
Quarterman
Lee
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©2004 Strategos, Inc.
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