Category Archives: Change management

To Lean or not to Lean

Posted on by

I am always amazed at the passion people have for following/not following the different methods to enhance, improve their business.  Some say following “fads” is detrimental to long term improvement yet other stand by a particular model stating vast improvements and yes there are those that jump on every band wagon. I also often read comments on blogs stating one method came from another, or this one is better than that because the first is a fad when this one is not….etc, etc.

So which is correct, which can stand up on its own merits? – in my belief, it is all of them and none. These are all just tools, which should be used to solve the problems they were designed for and when used with other tools will meet the requirements of the business and help it achieve its goals.

To use an analogy: it is like building a house, builders use hammers, screwdrivers, saws, workbenches, etc.  Although they can use a hammer to punch a screw into wood, a better tool is a screwdriver, so the same with all these tools. So firstly you learn about the tools, their applications, their suitability and their flaws. Then you gain the experience by putting these things into practice.  For example a 2lb hammer may do the job but if the job requires a 12oz hammer, that is what should be used.

BUT, all these business tools will evolve for each industry, business, and company, even down to work station. The ability to improve the business is incumbent on the managers and employees to make things work, to know and feel how it all fits together.  One of the major problems until recently (as I see it) is that Finance ran the company,  this was through the micromanagement of costs – at best this took the focus away from real management of the business and at worst focused on aspects of the business as standalone entities (saving money in each but leaking money between all the gaps).

I am sure we have all seen one function/department make improvements at the detriment of another. Managers and staff need to take accountability for the whole process and the benefits of using bottom line goals, work across the business and use all the tools (as appropriate).

To Lean: Lean has been used to varying extents and capabilities by many, for millennium (usually entrepreneurs); the difference is, we have now named the method and people are writing about it and more are using it. So, it is not a fad but just another tool that has been (re-) identified.

Cheers
Mark

Storage space too small?

Posted on by

Are you a small operator and running out of room in your store/warehouse?  You are also more than likely, at that stage where moving to a larger facility is not quite viable, but you are struggling with what you have, yes?

I found a good alternative to hiring expensive ‘specialists’ or attempting to do it solo is to get the help of racking and goods handling vendors.  It is in their own interest to review your situation and present a viable plan.  Obviously they will have a commercial interest which should not be discounted. Your goal is to either obtain more space within your facility or making your goods handling more effective, preferably both, at the best cost.

The method I use is to solicit the help from 2-3 racking vendors and 2-3 handling equipment vendors. Usually they will come back after 4-7 days with a proposal and costs.  The better racking companies will also provide proposed floor plans.  This is when the benefits become apparent.  Review their proposals and include a walk around the facility with them, asking questions and putting forward your own ideas – it is your business so you will have a good idea of what you can and can’t do.

So after reviewing their proposals, costs and timeliness, it will be up to you to select what is viable and appropriate for your situation.  You should be able to comfortably postpone moving for a quite while, if you get an extra 15-20% storage capacity, yes there will be a cost but a lot better compared to moving or outsourcing.

And having gone through the process as describe above, you will be intimate with all the proposals, the costs and the timelines.  By default you will also have completed your duty of care pertaining to the preferred business practice of obtaining three quotes/proposals and weeded these out appropriately.  You will also have decided on the variety of options that had become available, eg purchase additional or change racking and/or move racking,  you may also upgrade/change your goods handling equipment or a combination of all options.  The point is, you now have cost effective options, provided at no cost.