Looking for Lean New Year

This fall, I learned a concept that I knew immediately would be my 2009 New Year’s resolution. It’s called Lean Manufacturing, and it’s about seeking and employing small but continuous improvements to make production systems more efficient.

Lean manufacturing stems from a Japanese word and philosophy called Kaizan, which means continuous improvement. Japanese companies, led by Toyota, have been employing this philosophy since the 1950s and essentially driven American automakers to bankruptcy. (Perhaps you’ve noticed this in the news.)

This is intriguing testimony about the usefulness of Kaizan. A study comparing the improvement programs of Japanese versus American companies showed that in Japan, about 75 percent of employees participate in continuous improvement programs generating 37 ideas each on average. About 88 percent of these ideas are adopted, saving $126 per idea.

In the U.S., only 9 percent of employees surveyed participated in improvement programs, generating just .12 ideas per employee. Only 32 percent of these ideas were adopted. But each of them generated more than $6,000 in savings.

Impressive -- we are Americans afterall. We generate big, important ideas.

Not really. Even with our significant cost savings per idea, Japan blows us away with overall net savings per 100 employees of $422,000 compared to under $23,000 for every 100 U.S. employees.

Now, you might be wondering how lean manufacturing principles used by Japanese automakers relate to my New Year’s Resolution? I admit, it’s a bit of a stretch since I’ve never really manufactured anything except three meals a day, some unsightly crafts and, with heavy lifting from above, three children.

But one element of Kaizan appeals to me. The mantra states that small changes employed continuously add up to big savings.

The key word for me is small. Small changes -- I can do that. Don’t ask me to keep my kids’ faces clean or Legos and Bionicles separate. But, I can sort mail in the office rather than the kitchen. I can organize my closet according to color, and I can even give each child a specific hook for hanging their coat.

Every house has hundreds of systems in place. Often they develop by default, with little thought about purpose or efficiency, allowing us to function clumsily at best. Why do I keep all my cleaning rags on our top floor and the cleaning products someplace else? Why is mosquito repellent stored inside rather than out where the mosquitoes bite?

With a little effort, I’m certain I can improve the way we operate. As “LeanSpeak – The Productivity Business Improvement Dictionary” states, daily improvement in small amounts carried out in every job and function of the business (or home in this case) eventually accumulates into very large gains.

The end result might not save us a bunch of money, but saving time, frustration or stress even in small amounts will be a very large gain for this family.

Wishing you a happy (and lean) New Year.