Examples of real-life usage of Lean Management
 Download FREE Lean Management Guide Download now! |
The best five examples of real-life usage of lean management system and achieving success are Toyota Motor Company, eflexgroup.com, CIGNA Group, Bechtel Corporation, and Starwood Hotels & Resorts.
Toyota Motor Company
Pushed to the brink of bankruptcy due to wrong management decisions and the resignation of several senior members forced Toyota to bring in novel changes to replace the old and inefficient processes and methods. The new system became famous as Toyota Production System or TPS. TPS freely borrowed the principles of Taylor, Henry Ford, and Dr. Deming, and improved, refined, and honed them to apply the new principles to all areas of the organization. TPS was termed as lean management by Dr. Womack of MIT. Toyota made mass production as a starting point and added key strategies to build it as a total production system.
Eflexgroup.com (eflex)
Eflex, a Wisconsin-based health flexible accounts administration company, was processing claims within 7 to 10 days, against the 24-hour claim process target. Customers started deserting eflex, frustrated with the delays. Joyner, CEO, formed a core team of 4 people to implement lean Six Sigma. When changes were introduced, workers were assured of no job cuts. They were induced to express difficulties and offer solutions. They were retrained in the new system. This interactive approach brought a turnaround for eflex.
CIGNA Group
In the beginning of this decade, CIGNA did not have any corporate-level quality management system worth mentioning. The introduction of computer changeover system brought the deep lacunae existing in quality management and the company started losing clients. Share prices fell. Cordani, present President and CEO, realized that lean management and Six Sigma were the best solutions. Volunteers from different departments were trained as Black Belts and Green Belts. DMAIC projects were completed one after another with lean management techniques. Outside Kaizen professional were hired to implement lean management in critical areas of service operations. Kaizen events led to enhanced metrics by employees and hundreds of millions of dollars were saved by CIGNA and its clients.
Bechtel Corporation
In 2000, when the business of Bechtel grew at unprecedented levels, problems also cropped up on large scales. Focus on economic, environmental, and social aspects of big projects in remote areas became a matter of concern, particularly because of employment of local workers who had no knowledge abut lean Six Sigma principles. The company approached the work process of each project as separate entities and lean techniques were implemented in measured, slow steps in offices, business units, and work spots across the world. The investment on lean Six Sigma program broke even in 3 years.
Starwood Hotels and Resorts
The beginning of this decade brought fresh momentum in the hospitality sector growth. Even though the world leader in this field, Starwood realized that building upon and sustaining the growth, as well strengthening the global brand name in the face of stiffer, tougher, and bigger competition required lean principles implementation. Meyer, VP of Six Sigma led the lean Six Sigma program execution to improve check-in, room standards, and cleanliness, provide immediate responses to complaints and requests, and reduction wastes. The increase in net margins and profits in the next 5-6 years was astonishing.
