Why does Lean fail?

Despite the enormous popularity of Lean, the track record for successful implementation of the methodology is spotty at best. Some recent studies say that failure rates for Lean programs range between 50 percent and 95 percent. To analyze this level of performance from a Lean, problem-solving perspective, continuous improvement experts should be asking: Why do so many companies fail to achieve Lean success?

While the causes are numerous and extensive, I will focus on one of the most significant reasons: failure to understand the theories and concepts of Lean and their relationship to the entire business.

 Lean is a business methodology, not simply a manufacturing tool. It requires complete and total commitment from the highest executive levels and must cascade down to all departments and throughout all levels of business.

What's in a name, right?

First of all, there is the name itself. The commonly used term, Lean manufacturing, perhaps could be the worst-coined phrase for this type of continuous improvement methodology. It automatically emphasizes two things that conjure limited expectations of the functionality of this business methodology: Lean and manufacturing.

When mentioned in business circles, Lean is often associated with trimming down. So, when the word Lean is spoken, most people immediately think of doing more work with fewer people. Because no one prefers unemployment to a stable job, figurative walls are automatically erected to defend against the inevitable layoff.

Failure to understand how improvements (or lack thereof) made in one area will affect another can result in transformation failure. If your manufacturing team improves processing time from five days to one day, but your “pre-production” team still requires 25 days to get the order to manufacturing, well, you get the idea. Think Global Optima vs Local Optima.

Given that so many companies have misused the Lean approach, resistance is to be expected. This push-back also creates barriers to the change that needs to take place for an effective Lean transformation. Meanwhile, the understandably skeptical staff considers the methodology to be just another flavor-of-the- month that will eventually be abandoned.

However, far too many believe that by simply applying the tools (5S, Kaizen, value stream mapping and so on) will get them on the road to quick and easy success. They do not take the time to learn of the theories and concepts needed to sustain the transformation. Its a cultural shift that needs to be pervaded from the top down...not with a hammer but with a Roman Senatorial approach.

The single most significant key to a Lean implementation is that all parts of the business must make the transformation through total commitment to Lean theories, concepts and tools.

When Lean is implemented to reduce staff sizes or add work without eliminating waste, or is focused too heavily on manufacturing, the transformation is bound to fail. Some improvements will be made, but they will be neither sustainable nor, more importantly, continuously improved upon.