How can SMEs practice Lean Management with limited resources and skills ?

Pk Lee @Pk-Lee

08 October 2023 8 3K Report

SMEs (Small & Medium Enterprises) have low labor intensity and do not have skilled lean practitioner.

Productivity and competitiveness for SMEs are usually low and experience challenges to survive.

By "Lean" or reduce wastes inside "Process" shall increase productivity and transform SMEs into a profitable business.

Questions

1. Should SME adapt to Lean Management and how SME should approach current bottleneck in skill resources?

2. Should SME engage external Lean consultant to carry out Lean setup and implementation and any success case study?

Ronald Leandro

Based on the Japanese´s teachings, you have to implement first the Productivity basic strategy in order to start the cultural change needed in every organization. This strategy is focused, first, on Kaizen and 5S Program, then 7QC tools and Work Study and after comes the Suggestion Scheme System and Quality Control Circles. This is the basic strategy to start in any organization.

Antonio Batocchio

A typical situation for SMEs: limited resources! Although it is a complicated situation, we envisage two possibilities: a) the support of an external consultant or b) an internal manager with knowledge of lean management, partially dedicating himself to this activity. In both cases, there must be adequate planning and an action plan that directs the company's efforts and resources towards establishing a lean culture in the organization.

Sobur Setiaman

Small and Medium Enterprises (SMEs) can practice Lean Management with limited resources and skills by adopting a pragmatic and focused approach.

Lean Management is all about eliminating waste, optimizing processes, and improving efficiency, and it can be tailored to suit the specific needs and constraints of SMEs.

Here are some steps for SMEs to practice Lean Management effectively:

Understand Lean Principles: Start by gaining a solid understanding of Lean principles. There are five core principles: Identify Value, Map the Value Stream, Create Flow, Establish Pull, and Pursue Perfection. These principles can be applied at a smaller scale.

Leadership Commitment: Top management in SMEs should be committed to Lean practices. They should lead by example and communicate the importance of Lean to the entire organization.

Value Stream Mapping: Identify the key value streams and processes within your organization. Map these processes to understand where waste occurs and where improvements can be made. Focus on the most critical processes first.

Engage Employees: Involve your employees in the Lean journey. They are often the best source of insights on where waste occurs and how to improve processes. Encourage them to identify problems and suggest solutions.

Kaizen Events: Conduct Kaizen events (short, focused improvement activities) to address specific issues. These events often involve cross-functional teams working together to solve a particular problem.

5S Methodology: Implement the 5S methodology, which stands for Sort, Set in order, Shine, Standardize, and Sustain. It's a simple and effective way to organize workspaces for efficiency.

Just-In-Time (JIT) Inventory: Try to reduce excess inventory and implement a JIT system to order materials or produce goods only when needed. This can free up capital and reduce waste.

Standardize Work Processes: Standardizing work processes and creating clear work instructions can reduce errors and improve consistency.

Continuous Improvement: Make continuous improvement a part of your company culture. Encourage regular reviews and updates to processes. Small, incremental changes over time can lead to significant improvements.

Use Lean Tools: Familiarize yourself with Lean tools like Kanban boards, PDCA (Plan-Do-Check-Act) cycles, and Pareto analysis. These tools can help you make data-driven decisions.

Measure and Monitor: Use Key Performance Indicators (KPIs) to measure the impact of your Lean initiatives. This will help you track progress and identify areas for further improvement.

Invest in Training: While resources are limited, investing in Lean training for your employees can pay off in the long run. There are often affordable online courses and workshops available.

Lean Consultants or Coaches: If possible, consider hiring a Lean consultant or coach to provide guidance and expertise. They can help navigate the Lean journey more effectively.

Networking and Learning: Join industry associations and networks for SMEs to learn from others' experiences and gain insights into Lean practices specific to your sector.

Patience and Persistence: Lean Management is a long-term commitment. It may take time to see significant results, so be patient and persistent in your efforts.

Lean Management is adaptable, and its principles can be scaled to fit the unique circumstances of SMEs.

Start with small improvements, involve your team, and gradually build a Lean culture within your organization. Over time, you'll see the benefits of reduced waste and increased efficiency.

Martin McKie

Pk Lee

SME's can pick and choose tools from the Lean Tool Box there's no need to try and implement everything depending upon the culture in the company, they can pick and choose systems and tools which best suites and then integrate others as the original ones become more established.

I think monitoring, communication and recognition are also very important. Please check out my papers published below:

(PDF) Improving Lean Manufacturing Systems and Tools Engagement Through the Utilisation of Industry 4.0, Improved Communication and a People Recognition Methodology in a UK Engine Manufacturing Centre (researchgate.net)

(PDF) Implementing Digitalised Lean Manufacturing Training in a UK Engine Manufacturing Centre During the SARS-CoV2 Pandemic of 2020 (researchgate.net)

Hope these resources are helpful.

Best Regards

Martin

Martin McKie

Hi Pk Lee

Please see below my lastest published research, that you may be interested in:

Improving Lean Engagement Through Utilising Improved Communication, Recognition and Digitalisation During the COVID-19 Pandemic in JLR’s Powertrain Machining Facility

Microsoft Word - 13_M.G.McKie et al.doc (bg.ac.rs)

Best Regards

Martin

Ronald Leandro

Hi, the foundation for any Lean approach remain within 5S Program and Kaizen activities, no matter the size of the enterprise. This is in order to look up to a behavior change within the organization.

Martin McKie

All,

Apologies the link previously posted doesn't work correctly. Please see below a new link to the research for anyone who wants to give it a read?

Improving Lean Engagement Through Utilising Improved Communication, Recognition and Digitalisation During the COVID-19 Pandemic in JLR’s Powertrain Machining Facility

https://www.mas.bg.ac.rs/_media/istrazivanje/fme/vol52/1/13_m.g.mckie_et_al.pdf

Best Regards

Martin

Martin McKie

ResearchGate Link:

(PDF) Improving Lean engagement through utilising improved communication, recognition and digitalisation during the COVID-19 pandemic in JLR's powertrain machining facility (researchgate.net)

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