Well the first lesson to be learned is that any Chief Executive appointed to a large company that has the potential for a crisis occurring needs to have excellent presentational skills and the ability to manage bad news effectively. The Chief Executive of BP, Tony Hayward seems to have failed on both scores.

BP always carried the risk of having an oil spill. It goes with the territory. When you are drilling for oil, especially in deep water, where you simply cannot get to the source of the spill, you run the risk of having an environmental catastrophe. In fact, some commentators have stated that it was only a matter of time for BP and they were almost lucky to get away with not having a spill for so long.

So a good Chief Executive and Board would have made sure that it had a really good PR team who could spring into action and try to manage the bad news in a way that was seen as being honest, open and the company itself could be portrayed as being competent. This did not happen when the BP oil spill started. This is a fundamental lesson that should be learned. Any company that carries with it such enormous risks in terms of ‘bad news’ needs to be ever ready to manage bad news and to offer a robust defence and talk clearly about what can and cannot be done to solve the problem.

Indeed the messages that were issued by the Chief Executive led to a senator declaring that BP were either liars or they were incompetent. Either way this is not good PR.

The Chief Executive has also been criticised for his ineptitude when it comes to addressing different audiences. He also appeared oblivious to the criticism that was mounting and he failed to read the warning signals that the public in the US were hostile to BP and they were being hung, drawn and quartered within the media, without any pretence of a trial.

These failings ensured that BP were portrayed as being the ‘bad guys’ on a massive scale and yet had they had good PR and a Chief Executive who was more adept at handling both the media and the US politicians then the news could have been managed in a much more effective manner.

The Chief Executive of BP is a geologist by profession and certainly not a slick presenter. However his approach and his failings led BP to be vilified almost overnight. He was replaced in terms of being directly in charge of dealing with the oil spill, but by the time of the replacement, the damage had already been done.

The other major lesson to learn from BP is that in the immediate period after the spill started, they failed to undertake a massive PR campaign trying to show that they were not indeed the villains that they were portrayed as by President Obama and the US media. Instead they seemed to go underground and simply hope that everything would just ‘go away’ which of course it didn’t. So unfortunately there are many lessons to be learned from BP, but none of them show how to manage bad news; instead it is about what you should not do when managing bad news.

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The lessons learned report needs to be as comprehensive as possible, without being so lengthy that everyone ignores it. It is important to say what went right and what didn’t go so well. It can be tempting just to write a report that tells a story about how everything went swimmingly and there were no problems and never a cross word was uttered. Yet this will not help anyone to learn from previous experience, so you need to describe what happened in very honest terms.

It is important to note any external events that influenced the project. For example, was there any natural disasters, flooding, inclement weather or even issues such as transport strikes. All these things affect the project or can affect it, so it is important to make a note of them.

You should also have a brief assessment of the technology, technical implements and the tools that you used to make the project happen. But you should also note what happened and which of these were useful and which should be used in future and conversely which you felt were not all that useful.

Then you need a section on the management as well as the quality processes and you need to analyse these and indicate which went very well, which were lacking in terms of having little effect and which went badly or very badly.

You need to include a section about which project management methods were used and how effective these were. Did they help or is there another type of project management that should have been used?

Sharing the report

Once you have completed the lessons learned report it is important to disseminate the information to all the members of the project management team so that they can learn from the experience.

It may well be that it is in your own interests to make sure that the information is regarded as confidential, so there is no risk of it being used against you or landing in the hands of your competitors.

It is also very useful to arrange a meeting of the project team, once they have had the chance to read and digest the lessons learned report. The report can then be discussed and you can learn from the experience that you all shared. This meeting will give others the opportunity to feed in to the process, because they may actually have a different interpretation of how the project went. Perhaps they think it went well when in fact it did not, or perhaps they feel it went badly, when you are of the opinion it was very successful.

If you do not talk about the report and take away lessons learned from the experience that you have all shared, then you will not be learning from practical experience and in some ways that is fundamental to project management. After all, we don’t want to keep on repeating the same mistakes; instead we should learn from them and that is why the lessons learned report is so important. We should all be striving to get things right next time, not simply ignoring anything that has gone wrong!

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The whole QRM strategy is focused on quickly going through the design process and developing products to meet a customer’s needs. However this is not to say that quality is shelved in response to trying to produce goods quickly.

In fact the second driving force behind QRM is to meet the customer’s needs. Customers will usually expect that their suppliers are able to meet their needs and to do so quickly and this is where QRM can provide companies with a competitive edge, when it comes to securing new business.

QRM almost revolutionises how goods are produced because it cuts through much of the time taken within the design stages and ensures that the time taken to design and then produce something is substantially reduced. Given that the design process is often seen as a ‘creative role’ that cannot be rushed, this is a significant change in approach, especially given that the customer’s needs are given such a high priority throughout all stages of both design and production.

Company Wide Approach

For QRM to be an effective strategy it has to be adopted throughout the whole company; it cannot be isolated to the design process or to the manufacturing process- all different sections of the company need to be committed to QRM.

Companies who are implementing QRM also need to analyse performance, seek to improve it continuously and also have an incremental approach to its implementation, doing it step by step throughout the company rather than simply changing everything overnight.

Primarily this is because QRM requires every section in any company to be aware of the role that it plays within the company and how they feed into the process of production, even functions such as administration or the warehousing section. Each has a part to play and each section needs to look at exactly what it can do to reduce lead times.

Benefits Of QRM

It is estimated that when QRM has been successfully implemented within a company then lead times can be reduced by as much as 95% although this figure is often lower, but nonetheless, lead times are reduced and so waste is eliminated from the process of production which leads to greater efficiency.

It is estimated that this efficiency can result in the finished product costing around 30% less to produce, which gives businesses a real incentive to adopt the QRM strategy.

In addition the fact that the driving forces behind QRM are the reduction in lead times and meeting the customer’s needs, the rate of defects or shoddy goods is also significantly reduced, sometimes by up to 60%.

So there are certainly some good reasons for implementing this strategy but it is a strategy that requires the whole company to be behind it and this can take time to achieve, especially with some functions such as administration or human resources, that do not automatically think that they have any role to play in terms of the lead times or productivity. Thus QRM does require a significant change in terms of the culture of an organization.

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Well actually a manufacturing plant can learn a good deal from the McDonald’s philosophy. Indeed McDonald’s is about efficiency without sacrificing quality, speed, again without sacrificing quality and finally it is about consistency.

McDonalds is really a mini manufacturing plant – different work cells prepare various “components” there is an assembly area, there is a supply chain coupled with “customer support” (i.e. the sales clerk).

McDonalds thrives on some core fundamentals;

• Standardization – a Big Mac is a Big Mac – go into any restaurant across America and you’ll get these same result every time coupled with a fastidious approach to quality
• A production process approach – different work cells combining to make the finished product
• Just in Time production – make what’s needed – small numbers of ready finished product
• Flexible and multi skilled workforce
• Lean production – face it – the backroom kitchen of a McDonalds is not massive – they have gone to town on ensuring they get the most out of their real estate

McDonald’s are keen to empower employees but within certain constraints. They effectively operate a Just In Time production system and the concepts of efficiency, speed and consistency have to be undertaken within the constraints of the Just In Time philosophy.

For example, McDonald’s prides itself on fast food, that is, after all their goal. So it would make sense for them to start in the morning and produce 1,000 cheese burgers, keep them warm and then sell them off. But in fact what happens is almost the reverse.

You go into McDonald’s and there may be 3 or 4 cheese burgers sat on the plate being kept warm. However it is often fewer than this. So you have to ask for a cheese burger and there may be one that is ready prepared, but often it will be made up whilst your drink and fries are being prepared.

So why doesn’t McDonald’s make up 1,000 cheese burgers and then just sell them off? Well for a start it would take up a lot of room to store this number of burgers and because they are meat, they would have to be kept up to a certain temperature. This would take a lot of resources and would have an add on cost in terms of the burgers.

But the clincher in terms of not preparing an excess amount of cheese burgers is simply that they may not sell. It is really easy to think that you will sell them, but what happens if you have 1,000 cheese burgers and yet customer after customer comes in and requests a double bacon burger? Your cheese burgers will soon be obsolete and you will still have to make up the double bacon burgers. Again, this will have a cost associated awith having to get rid of 9,999 cheese burgers. So the answer is to produce them Just In Time.

However everything is always ready to spring into action as soon as an order is placed. All the tomatoes have been sliced, all the lettuce has been shredded, all the mayonnaise is ready and waiting to be added as and when. So the whole philosophy is geared towards Just In Time and everything ready to go when the order is placed.

This type of approach could certainly save manufacturing plants a great deal of money. They will not have to worry about holding too much stock, especially stock that could soon become obsolete.

In addition McDonald’s is keen to ensure that its employees are very much orientated towards the goals and aims of the company and it rewards employees who can achieve success and who can show that they are keen to develop initiatives and seek to improve existing practices and procedures, so long as these are in line with the company’s overall themes and goals. So they work with employees to get them thinking the ‘company way’ and this is seen as a way of improving efficiency.

Again this is a lesson that could well be learned by manufacturing plants, because it helps ensure that employees take responsibility whilst they are very much in line with the company philosophy. One of the best ways to appreciate it is to watch any fast food outlet in action and see how manufacturing principles have been adapted and deployed in a food retail environment.

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The first barrier is undoubtedly related to staff and personnel. Without all the workforce behind Lean and without their commitment to Lean, it will be an uphill struggle to successfully implement it within the company. In particular senior management need to be committed to it as a philosophy, management strategy and as the overall framework in which they will do business.

Any organisation that implements Lean without the full commitment of the management team is almost doomed to fail, so management are vital to the process.

The Shopfloor and Lean

But Lean has to be adopted and believed in by all sections of the workforce, if management believes in it, but staff do not, then again, it will be difficult to successfully implement Lean. Staff can effectively put a clog in the wheels of production or manufacturing so they are vital links in the process.

Resistance To Change

Any organisation will have some staff who are resistant to change. No matter how beneficial the changes may be, they will oppose them almost on principle, so these staff have to be targeted specifically because their resistance can act as a significant barrier to Lean.

Roots And Branch Philosophy

Lean has to be a roots and branch philosophy. In a sense, people have to live and breathe Lean and it has to permeate all the activities and roles within the organisation. If it is implemented in a piecemeal fashion or in certain parts of an organisation only, then it will face barriers. All parts of the organisation, including the administrative and supportive sections need to adopt Lean. It is a radical approach and one that should be embraced fully, so that it can be a success.

Lack Of Planning

Lean has to be planned. If Lean is suggested on Monday and implemented on Tuesday, then this is not just a barrier, but it is a recipe for disaster. Planning is essential for it to be a structured process; it simply cannot be rushed in to or done in a way that has not been carefully thought out, or else it will simply falter and no one will actually understand the strategy or what is being done.

Training goes hand in hand with planning and if there is insufficient training then staff will not be behind the process and no one will fully understand it, so training really has to be undertaken; by everyone!

Unwillingness To Learn and See

Central to the philosophy of Lean is the need for those who are involved in the process to learn from things that go wrong, to see where waste exists and to keep looking, learning and improving continuously.

This sounds easy in theory, but in fact relies on those involved being able to learn, see and aim for continuous improvements. Yet it can be tempting to gloss over negative issues and to ‘leave things be’ when in fact, to do so will not lead to improvements and will not reduce any waste. So there has to be a culture created where mistakes can be recognised and rectified leading to improvements, as opposed to a culture where mistakes are simply identified in order to apportion blame!

Thus there are many barriers to Lean, but these need to be viewed in context; the benefits of Lean are immense, with the barriers actually being easily surmounted.

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Lean and The Toyota Production System

The ‘God’ of Lean historically was the Toyota Production System, which first introduced Lean as a way of ensuring that the business became more successful. For years its status was not questioned; Toyota used Lean, they were successful, therefore Lean was a good thing.

Then in 2010 the wheels came off and Toyota suddenly found that they were the subject of worldwide media attention: Toyota cars were experiencing significant levels of defects and people had died as a result.

Opponents of Lean felt that it was a combined birthday and Christmas present: their point was proved, Lean was not good, because Toyota had become so Lean that it had sacrificed quality and instead Lean and efficiency had taken over.

Ostensibly this is a convincing argument. However, it is worth looking more closely at this issue. In a sense Toyota failed because it was actually too successful. It had become the No.1 car manufacturer in just a few decades and Lean had played a huge part in making this happen.

So the blame for Toyota experiencing some difficulties could be blamed at the fact that it had grown too big, too quick. Its growth rate had not been sustainable. Lean was not the reason that it had difficulties, so Lean cannot be used as the scapegoat.

Waste and Sustainability

Increasingly we live in a world where there is a growing awareness of the fact that resources in the world are finite. Indeed if the worst predictions come true, resources may soon become scarce. So companies and businesses are being encouraged to become more sustainable and to make better use of resources so they are not squandered.
Thus there is a trend to ensure that businesses do not overuse resources and this fits in well with Lean, so there are good business reasons to implement Lean, to prove ‘green’ credentials in addition to being a good business.

Lean And The Public Sector

Increasingly Lean is being used by public sector bodies such as the Scottish Parliament or the NHS. Historically they have had a poor record with regard to waste, but after implementing Lean, substantial savings have been made and less public money has been wasted, so there is clear evidence to prove that implementing Lean practices will save companies and the public sector, significant levels of money!
Lean Does Work

To assert that Lean does not work flies in the face of strong evidence that companies can save money, reduce overheads and ensure that they stay buoyant even in difficult economic times.

It is illogical to assert that it doesn’t work because it is fundamental to ensuring that businesses keep a competitive edge over their competitors and its use has spread almost worldwide over the last 2 decades, so it has been well tried and tested.

Given the difficult economic times that have been experienced of late, it is likely that Lean thinking will be implemented throughout all different sectors and will ensure that waste is reduced in various forms!

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So increasingly organisations who are implementing Lean projects are looking for technological solutions to the issue of speeding up the analytical process and increasingly companies such as Minitab Inc are coming up with statistical analysis as well as process improvement tools in the form of software, to ensure that time and labour are saved and that the analytical process in itself is Lean and without waste.

How Does Minitab Work?

Minitab has a range of technological solutions, but the most commonly used software by Lean practitioners is the
Quality Comparison and Statistical Software which integrate with Lean programmes. Theses enable Lean practitioners to organise and then execute and track programmes.

In turn this enables those involved in delivering the project to deliver quality time after time, with seriously low defect rates. It also speeds up the processes involved and ensures that all the Lean processes are carried out with no waste and with greater efficiency, so there is a strong preference for using Minitab, within the field of Lean.
Although historically there have been some problems identified in using Minitab in the sense of the data being overwhelming, simply because of the amount of data provided, that situation has been alleviated.

Six Sigma practitioners have now developed a rigorous investigative methodology that is carried out on a step by step basis, to allow the team to identify the root cause of a problem in a way that is systematic and to a large extent, fool proof.

Thus the Minitab software is the effective tool in terms of statistical analysis, but the methodology acts as a means of ensuring that the analysis is applied in a useful manner that in itself is not wasteful.

Speedier Processes

Some of the components of software such as Quality 3 have actually been designed with Six Sigma and Lean in mind. So this means that the tasks that historically have taken some time, such as Value Stream Mapping are much easier to do, when using software such as Minitab.

Since the software is designed for various aspects of a Lean project, it can accommodate those needs rather easily, as opposed to using other software that was not designed for use within Lean. So the processes involved in all aspects of a Lean project become much more straightforward.

Minitab’s Position

Currently there is a strong relationship between Minitab and the philosophy of Lean. However, there is a strong possibility that other companies may wish to take over the role of Minitab within Lean and Six Sigma, so it no longer retains its position of supremacy.

On the other hand, the tools it can provide, tailor made for Lean and Six Sigma do make it a very powerful tool when it comes to implementing Lean projects.

It has also learned from experiences to date and has updated its software and products to take account of what clients and customers felt about the efficacy of their products. In turn this has consolidated its position as a market leader within this field.

It also means that there are a number of Six Sigma and Lean practitioners who are keen to train other people in how to use Minitab to their best advantage, so there is definitely a positive relationship between the two and this is likely to simply grow in the future.

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The 10 Cs:

1. Competency – this is fundamental to being a good supplier and competency needs to have evidence to back it up, there is no point in simply making assumptions; hard evidence is to be provided.

2. Capacity – the supplier needs to have sufficient capacity to enable it to operate flexibly. The more flexible the supplier is, the more it can meet fluctuations in demand.

3. Commitment – the supplier needs to demonstrate what level their commitment is to quality. They also need to provide hard evidence of the quality systems that they use; what is their framework to ensure quality?

4. Control – control is important because it is control of the processes and internal procedures that needs to be looked at, so that a full profile can be established of the supplier and how much control the supplier has. Control can take various forms, for example, how much control does the supplier have in terms of its suppliers warning it when goods become scarce or even stop being produced. So there are lots of different aspects to control.

5. Cash – this is the financial standing of the supplier. Are they in a robust position or are they teetering on the edge of financial meltdown? Obviously the more robust that a supplier is, the better they will be place to withstand any economic storms.

6. Cost – obviously this is the cost of the supplies but it is looked at in terms of the full cost of the products on offer. It is interesting to note that cost is not listed as the No. 1 issue to be considered, because it is very much just one factor to be considered, the other factors are of significant importance too!

7. Consistency – can the supplier ensure that it delivers you the same product, up to the same standard in every order? Realistically it is highly unlikely that this can be achieved, since perfection is practically unheard of within the supply chain! However, it is included because the supplier should have a consistent approach and be able to demonstrate this.

The items above were the first & Cs as proposed by Carter, but these were later expanded to incorporate a further 3 issues:

8. Culture – this is an interesting point. Carter felt that the supplier should be one that has the same values and ways of operating as the customer. In a sense this is almost about compatibility, but it makes sense for the supplier and the customer to have some shared values and practices, otherwise the relationship could be strained in the future, simply doe to the clash in different cultures.

9. Clean – clean is a reflection of increased environmental awareness. Clean is about ensuring that the company complies with all statutory requirements and in particular environmental issues. So in a sense, suppliers are asked to demonstrate their ‘green credentials’.

10. Communication – although it may seem obvious, suppliers need to be asked how they will communicate with you. Will it be by fax, email or telephone? Communication also covers the ICT software and applications that the supplier has. If they only have very basic ICT facilities, they will be unable to communicate effectively.
These 10 Cs offer e very comprehensive means of ensuring that a rigorous approach is adopted with regard to supplier evaluation and that it is fair to all potential suppliers!

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Well to a large extent, it depends on the qualification involved. Any qualification that is offered with only a minimal amount of training and less than rigorous testing will not mean a great deal in practice. But if the training is in depth and the assessment criteria for the qualification is stringent, then the end result is a qualification that shows its recipient is aware of all different principles of Lean manufacturing.

Range Of Qualifications

There are different types of training available with regard to Lean manufacturing. Many of these are one day courses that act as an introduction to the principles of Lean manufacturing. These are ‘worth’ the effort, because they offer an awareness of the principles involved. However, any certificate offered after a one day training event cannot be viewed as an in-depth understanding of what is in effect a complex issue.

Other courses build on the principles that are covered in the one day courses. For example, there are other specific courses that may last for 3-5 days, which cover the topic in greater detail. These are obviously more desirable than one day courses. But the downside of both of these types of training is that they are difficult to apply within the specific workplace. So trainees may know the theory, but it can be hard to translate the theory into practice on the shopfloor.

Perhaps the most useful qualifications with regard to Lean manufacturing are those that are either practical such as the NVQ in the UK or a diploma or degree level. Some universities also offer post-graduate diplomas, equivalent to an M.Sc. These obviously offer a greater understanding of the topic and since they are studied over a long period, there is more room to learn about the different nuances of Lean manufacturing and to fuse the practical with the theory.

Online Courses

Numerous online courses are also offered. Some are undoubtedly of good quality, but for the qualification to have any integral value or worth, the course needs to have a full and in depth assessment of participants. Without this, any qualification becomes of less worth, because it can be obtained without a solid foundation of knowledge.

Benefits Of Lean Manufacturing Qualifications

However, although there is such a wide range of qualifications and some are of greater worth than others, any Lean manufacturing qualification is better than having no qualification because there is at least some level of knowledge, even though it may not be comprehensive.

Undoubtedly the whole concept of Lean manufacturing will become even more popular. The elimination of waste within the manufacturing process means that companies can become more efficient, but it fits in with concepts about using resources sustainably and ensuring that all resources are used effectively. As the whole world starts to become more aware of saving resources and not wasting them, the breeding ground is set for Lean manufacturing to grow and grow.

So in a sense, it is definitely worth investing the time and energy required to obtain a Lean manufacturing qualification, but in common with so many other things in life, it is worth taking the time and trouble to research qualifications and courses on offer. Those which should be selected are the ones that offer a good practical and theoretical mix and which are awarded on the basis of the knowledge that has been gained, rather than being awarded simply for participating.

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It is therefore a very complex process, which can usually be separated into two separate areas.

The first strand involves the product itself, the second involves the commercialisation of the product. However, it is important to note that the two strands intertwine and can happen simultaneously at times. There is a cross over at times because the design and technical issues will often be happening when the market analysis is being conducted.

Ideas and Light bulb Moments: Initial Stages

The idea for a new product is the very first stage of introducing any product. Someone has to think about it, which can either be a result of analysis and research, or it can be a ‘light bulb’ idea, where the designer suddenly realises that a product is required.

Once the idea is generated, then there is usually some kind of market analysis to ascertain if there is indeed a market for the product and if so, is it worth developing it?
It is also necessary to look at whether or not there are any similar products on the market that could threaten the development of this new item.

Design and Development

The design of the product needs to be carefully undertaken to ensure that it costs the absolute minimum but is fit for purpose and of sufficient quality. The production costs of the item also need to be broken down; how much will each item cost, can it be produced more cost effectively etc?

This process will also involve the financial feasibility of the product and whether or not it is worth bringing to market. If the decision is taken that it is, then production will proceed; if not, then the product will go no further!
The viability of the product needs to be examined by a process known as the business analysis, to ascertain how much the product should sell for and how must it will cost.

Market Testing

Once prototypes have been worked up, then market testing can begin as focus groups, customer discussions or even testing the product at a trade show. This is an important part of the process because it involves listening to the customers and whether or not they would actually buy the item and think that it is of any worth!

Planning Issues

If the prototype is to go ahead, then production needs to be planned. This will involve procurement, logistics, quality management tools, costing, pricing and so on. This should even involve a contingency plan to ensure that when something goes wrong (as it will) there will be some kind of Plan B to rely on.

Meanwhile those in marketing and advertising will be planning the launch of the product and raising its profile as soon as it is on the market.

Launching The Product

The product is then launched on the market. But this is not the end of the matter- after the launch of the product a review has to be undertaken to ensure that the product is still viable and that it has met sales targets.
In fact the review will also look at all the costs involved in bringing the product to market and whether budgets were met, if the price of the product is right and so on.

Introducing a new product to the market sounds really easy; in reality it is anything but!

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