When a business owner feels ready to implement a lean methodology for constant improvement, it’s often for two reasons: 1) they have been in business for a while, and 2) they feel prepared to revamp the way they do things. Others, however, have just entered the planning stages of a startup, and are looking to implement this agile management and business improvement methodology from the start.
Lean management consultant George Gemeinhardt recommends five options for lean methods. The options a business owner chooses typically depends on their business type and situation.
Existing Businesses
If a business already exists, the organizational leader needs to determine its readiness to implement a lean method. To do this, it’s important they follow three steps:
1. Conduct an outlook assessment that maps out the company’s future path
2. Evaluate the business's recent performance
3. Review business systems to determine the company’s capacity for change
Some companies must wait to implement lean because they don’t yet have the mechanism to effect change on a large scale.
Implementing in Startups
George Gemeinhardt notes that where there’s a startup, there lies an opportunity to implement a lean methodology. Lean methodology provides startup businesses an edge that generally results in quick improvement, primarily by removing anything that does not bring value and respect to the startup’s services or products.
Five Potential Methods
Choosing which lean method to follow, though, also requires delving into the company’s future, or consulting the startup’s road map. Business owners have numerous options from which to choose, including:
1. The Toyota Way, which was initially used to create more efficient manufacturing processes and a more productive line at the auto manufacturer
2. Six Sigma, used by Ford Motor Company, Raytheon, The Vanguard Group, and Amazon.com
3. Just in Time. Apple and McDonald’s use this method, and The Toyota Way uses it as its basis
4. The 5S method, used by 5S, Boeing, HP, Nike, Caterpillar, and Harley-Davidson. Kanban and Spotify use this method for project planning, and Jaguar uses it to improve efficiency
5. Value-stream mapping
Although each process uses slightly different methods, each has five tenets in common. These include identifying value, mapping the value stream, creating a continuous workflow, establishing a pull system that makes products after a work request, and continually improving.
In Conclusion
George Gemeinhardt says that choosing the correct methodology comes down to determining which, if any, process a business can quickly implement. If leadership can identify a company or two that successfully used each method similar to their business, they can more quickly create a short list.
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