6 Reasons Why Lean Manufacturing and Six Sigma Fails

Inside the lean manufacturing community, there is talk of a few high profiles failures recently. There is a lot of discussion with the lean community regarding how this could happen.

Most of the real lean manufacturing experts understand the few reasons for failure. Although there could be more than listed here, the reasons are often very simple.

1. The expert isn’t really an expert -
2. Lean manufacturing or Six Sigma tools are used to solve every problem -
3. The company does not devote enough resources
4. The timeline expectation is too short
5. Using the name Lean but not the principles
6. The business is beyond repair

The first four are only short term problems which can be overcome. A company can rid itself of the so-called expert and hire one. They can learn to apply other tools in addition to lean manufacturing tools. They can find, develop, and devote the proper resources eventually. The timeline expectation can also change with the right mind set.

If the business is beyond repair, it is probably not in need of a lean manufacturing implementation. It may need re-organization, financial re-capitalization, or a complete transformation. Whatever the business needs, it should happen before any continuous improvement initiative begins.

When a company needs a transformation, or specifically headcount reduction, this should be done prior to any continuous improvement initiative. Those in the lean community know this, but often are pushed to downsize the organization. It is critical for lean’s success to educate the executives to the problems with headcount reduction. Although it seems like common sense, some simply do not get it. People will not find a way to eliminate their job.

Although some may not agree, there is no silver bullet in business. Lean manufacturing principles, applied correctly in the organization, will do wonders. Six sigma initiatives also provide excellent benefits where applicable. But like all improvement methodologies, they are best applied to well run organizations searching for long term improvements.

One the largest reasons for lean or six sigma failure is forcing the use of tools to solve problems. We finally have the term lean six sigma, which includes both. Now we need a new term to include the other useful tools. Many lean practitioners do not understand six sigma, and therefore have no idea which tools they are missing. Conversely, many six sigma experts are not experienced in the application of lean manufacturing principles.

Lean and six sigma tools do not encompass every tool made to improve a business. Systems such as Manufacturing Excellence at least have a name that would imply any tool can be used.

Any initiative requires some minimum amount of resources. If the proper amount of resources cannot be devoted to the initiative, it is best to wait until the necessary resources are available. Without necessary people and time, any lean, six sigma, or other initiative will fail. Those doing the implementation will become frustrated, and employee morale will suffer. The initiative will become categorized as another fad of the month which wasn’t sustained.

It is also important to devote the time necessary to achieve and sustain improvement. Although some tools such as kaizen events lend themselves well to rapid deployment, the entire lean or six sigma initiative cannot outrun the organization. Both lean and six sigma initiatives are business changing initiatives, often resulting in major organizational changes. Businesses are run by people, and most can only handle so much change per time frame. Although this varies and may be altered as an organization learns to change quicker, forcing it will only cause chaos.

When consultants are utilized, it is best to spread out their time to allow the organization to absorb the change. Consultants can certainly throw more change and improvements on a company quicker than the company can digest it. Unless the organization can afford to have the consultant for a longer period of time, spacing visits is better than a rapid sequence of deployment.

Although there are a few main reasons lean manufacturing and six sigma fails, there are many more pointing to success. Thousands of companies are employing lean and six sigma today. Many of these companies have cut cycle times, reduced waste, increased productivity, improved quality, and enjoyed huge growth. If and when a lean or six sigma initiative fails, look at the reasons and change direction. The failure reason isn’t the tools or the initiative, but the application of them, business environment and circumstances surrounding it.

A primer on six sigma black belt certification is located in our six sigma online training overview.