We use the scheme of overlapping circles (the Venn diagram) to emphasize how each initiative depends on another and how each initiative supports the next. Lean Operations are achieved with the involvement and initiatives of the entire workforce; hence the circle entitled Employee Involvement. The result is that fewer people are required to do the job, i.e. productivity has gone up. The quickest way to get the productivity gains to the bottom line is to lay people off. Needless to say, when you do that, your associates’ enthusiasm for lean implementation will take a nosedive.
The real solution is to generate more sales through greater satisfaction of your customers with your products and services, so that you generate more sales with the same number of employees minus normal attrition.
A substantial contribution to improved customer satisfaction comes from the stable prices and better delivery reliability resulting from Lean. The other necessary component is better quality products and services, the theme of the third circle: Quality and Customer Satisfaction.
Vital message: for a sustained Lean strategy, a business must pursue all three initiatives in parallel, and see to it that they reinforce each other. We can help you do that.
Managing such an effort is a very big job and requires special methods and disciplines. We can show you: How to Allocate and Manage Resources
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