Now is the time for innovation– throughout our organizations, not just the shop floor. Today we’ll provide you with a free “Tool You Can Use” courtesy of Knowledge @ Wharton and Boston Consulting Group.
“When people think about lean, they often associate it with reducing the workforce. But the cost is not in the line labor, its in the overhead. The most important thing is the seamless integration of everything that goes into the production.” -Adam Farber, Boston Consulting Group.
Lean had its genesis in post-WWII Japan- facing a world with no capital and few raw materials, innovation at Toyota became a necessity- a process known as the Toyota Production System, or Lean.
Today, like Japan after the war, our organizations face a similar crisis: no capital, few orders, difficult to obtain raw materials, and difficult to find skilled people. Innovating throughout our organizations– NOT JUST IN OUR SHOP OPERATIONS, but in sales, engineering, administration, in fact all areas- through the use of Lean tools can help us eliminate waste. Less waste means add more value for customers, improving the sustainability of our companies.
In 1957 MIT economist Robert Solow showed capital and labor only accounted for about half of growth. The remaining half he attributed to innovation. For his work on the importance of innovation, Solow received a Nobel Prize in economics. For your work in innovating throughout your organization, you too may earn a grand prize, a more sharply focused, less wasteful, more sustainable enterprise.
And that more competitive enterprise, is a prize worth having.